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¶ … 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...
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…
References
Friedman, M. (1970). The Social Responsibility of Business is to Increase Profits. The New York Times Magazine .
Handy, C. (2002). What's a Business For? The Big Picture, 49-57.
McMurtry, J. Introducing the Social Economy in Theory and Practice.
Noya, A., & Clarence, E. (2007). The Social Economy: Building Inclusive Economies. OECD.
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