Review of assigned readings and synthesis of arguments

¶ … double check word count after revising and fill in missing reference information such as year published for McMurtry, thanks

In Charles Handy's 2002 article, What's a Business For?, he essentially argues, like McMurtry, for a social economy built from businesses that see themselves as communities with a higher purpose (Handy, 2002; McMurtry). McMurtry defines a social economy as one in which "economic activity is neither controlled directly by the state nor by the profit logic of the market, activity that prioritizes the social well-being of communities and marginalized individuals over partisan political directives or individual gain" (McMurtry).

Handy has come to his conclusion -- favoring a social economy -- based on the recent decline of the American economy and demise of the capitalist corporate image (Handy, 2002). As Handy notes, there are rules and laws in a market economy, but even those rules and laws depend upon some basic trust and truth-telling; otherwise, people will take their money and run (Handy, 2002). He blames the demise of the market on it's "new laws" -- laws that make the share price "king" -- and the resulting temptations to grossly overstate profits, bid up market capitalizations of companies, engage in risky mergers and acquisitions, and disregard future concerns in favor of present expenditures (Handy, 2002). This in turn, combined with ridiculously high top executive salaries, has led to the market collapse and outright distrust of business leaders (Handy, 2002).

Handy believes the solution is to take advantage of the existing zest and dynamism within the American business world, and use that energy to stay afloat while revising the way companies are structured (Handy, 2002). As in McMurtry's social economy, he envisions companies that: see profit-making as a means to a socially responsible end, that treat employees like assets rather than costs, that function like democratic communities rather than money-hoarding dictatorships, and that therefore can focus on genuine loyalty and long-term success (Handy, 2002; McMurtry). Within the community-paradigm business world, trust and truth-telling become more natural, dividends are paid for skills as well as money, and members who take part in decision-making develop a spirit of understanding, commitment, and contribution (Handy, 2002). In turn, the socially-responsible business is able to provide human, environmental, and social sustainability (Handy, 2002).

And on top of all that, according to Noya and Clarence (2007), it's possible for socially responsible companies to drive economic development. For example, they note that recent attention has been given to phenomena such as: the protection of concentrated market failures by socially responsible businesses, the "systematic presence" of unselfish behavior in economic enterprises, and the ability of businesses to coordinate efforts and successfully solve problems that are not purely profit-based (Noya & Clarence, 2007).