Philosophy of business

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The philosophy of business considers the fundamental principles that underlie the formation and operation of a business enterprise; the nature and purpose of a business, and the moral obligations that pertain to it.

Business Organization undertaking commercial, industrial, or professional activity

Business is the activity of making one's living or making money by producing or buying and selling products. Simply put, it is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors."

Contents

Influence

Philipp Blom summarises the development and impact of business-centric ideas in society prior to the global financial crisis of 2008:

Philipp Blom historian, novelist, journalist and translator

Philipp Blom is a historian, novelist, journalist and translator. He was born in Hamburg, Germany, grew up in Detmold, and studied in Vienna and Oxford. He holds a DPhil in Modern History from Oxford University. After living and working in London, Paris and Vienna he now lives in Los Angeles with his wife Veronica Buckley.

Financial crisis of 2007–2008 Global financial crisis

The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the most serious financial crisis since the Great Depression of the 1930s.

[...] Friedrich von Hayek and Ludwig von Mises [...] were Europeans who had passed their formative years in the chaotic interwar years and whose conclusion was that state intervention and planned economies were hallmarks of dictatorship [...]. They believed that it was healthier to take ideology out of politics and base the workings of society on the objective, nonideological laws of the free market. [...] The Enlightenment cult of reason and of the common good was replaced by the concepts of rationalization and the maximization of profits, which were applied to a reevaluation of social institutions - infrastructure, schools, universities, prisons, health care, and so on - according to business-driven criteria of profitability and cost-effectiveness. Especially in the United States but also increasingly in Europe, we began to run our societies as businesses. Beginning in the late 1970s and gaining speed in the 1980s, this gospel changed and polarized our societies - but it also provided an umbrella of meaning and necessity under which we could hide from challenges from without as well as doubts from within. For many in the West, the idea of the market became their ideological home. Living in accordance with its guiding providence and iron laws created a sense of stability, of virtue even. But 2008 shattered this collective piety and made millions understand that they had been lied to [...]. [1]

Friedrich Hayek Austrian and British economist

Friedrich August von Hayek, often referred to by his initials F. A. Hayek, was an Anglo-Austrian economist and philosopher best known for his defence of classical liberalism. Hayek shared the 1974 Nobel Memorial Prize in Economic Sciences with Gunnar Myrdal for his "pioneering work in the theory of money and economic fluctuations and [...] penetrating analysis of the interdependence of economic, social and institutional phenomena". Hayek was also a major social theorist and political philosopher of the 20th century and his account of how changing prices communicate information that helps individuals co-ordinate their plans is widely regarded as an important achievement in economics, leading to his Nobel Prize.

Ludwig von Mises

Ludwig Heinrich Edler von Mises was an Austrian School economist, historian, and sociologist. Mises wrote and lectured extensively on behalf of classical liberalism. He is best known for his work on praxeology, a study of human choice and action.

In economics, a free market is a system in which the prices for goods and services are determined by the open market and by consumers. In a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority and from all forms of economic privilege, monopolies and artificial scarcities. Proponents of the concept of free market contrast it with a regulated market in which a government intervenes in supply and demand through various methods such as tariffs used to restrict trade and to protect the local economy. In an idealized free-market economy, prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy.

See also

Sources

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References

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Footnotes

  1. Blom, Philipp (2015). Fracture: Life & Culture in the West, 1918-1938. London: Atlantic Books. p. 408. ISBN   9780857892201 . Retrieved 2017-01-01. [...] Friedrich von Hayek and Ludwig von Mises [...] were Europeans who had passed their formative years in the chaotic interwar years and whose conclusion was that state intervention and planned economies were hallmarks of dictatorship [...]. They believed that it was healthier to take ideology out of politics and base the workings of society on the objective, nonideological laws of the free market. [...] The Enlightenment cult of reason and of the common good was replaced by the concepts of rationalization and the maximization of profits, which were applied to a reevaluation of social institutions - infrastructure, schools, universities, prisons, health care, and so on - according to business-driven criteria of profitability and cost-effectiveness. Especially in the United States but also increasingly in Europe, we began to run our societies as businesses. Beginning in the late 1970s and gaining speed in the 1980s, this gospel changed and polarized our societies - but it also provided an unmbrella of meaning and necessity under which we could hide from challenges from without as well as doubts from within. For many in the West, the idea of the market became their ideological home. Living in accordance with its guiding providence and iron laws created a sense of stability, of virtue even. But 2008 shattered this collective piety and made millions understand that they had been lied to [...].