The Business World

The Moral Case for Profit Maximisation (published 2020) is the odd one out of these books. It is unnecessarily polemical, particular in its second half. However, this polemic is in defence of a rational and well-founded set of ideas and the book establishes a sound basic framework and asks some central questions. It is an important book.

All of the other books listed above that focus on the purpose of business consider the view that the basic purpose of public companies is to maximize shareholder value. All consider it to be wrong and suggest that it needs to be abandoned. However, the reasoning that leads their authors to this conclusion varies, as do their positive suggestions. The specific business issues focussed on in the various books also differ, although there is a considerable amount of overlap between them.

Firm Commitment and The Shareholder Value Myth (published 2013 and 2012, respectively), come from a secular perspective which those interested in business purpose may find it helpful to consider before moving on to consider specifically Christian contributions to the subject. The former focuses on the UK (the only one of the six reviewed books to do so) and the latter on the USA. However, neither book is as good at formulating ideas as it is at undermining other people’s ideas.

Prosperity: better business makes the greater good (published 2018) is a more recent book by Colin Mayer. It covers some of the same ground as his earlier works and is a vigorous attack on Milton Friedman’s claim that the sole social responsibility of business is to increase its profits. However, it also seeks to develop Mayer’s idea for changes to UK company law in order to implement his ideas. Many readers will have serious reservations about these proposals but the book is well written, interesting to read and draws on a lifetime of research into the business organisation.

Putting Purpose into Practice (published 2021) is the product of an extensive research programme undertaken between Mars Catalyst, which is the internal think-tank of the Mars company, and the Saïd Business School. It seeks to achieve far too much and would have been more coherent if it had contained and been shaped by a clear definition of what it calls the “economics of mutuality”. However, it contains some significant insights, offering areas for further research and useful debates on important topics.”

Reimagining Capitalism: How business can save the world (published 2020) covers some of the same group as Mayer’s work. Rebecca Henderson is a staunch believer in the positive power of Capitalism but she argues that its defects are such that it is necessary to “reimagine” it. She then sets out a five foundation blocks for this reimagination, including abandoning the concept of shareholder value in favour of the creation of shared value and the adoption by enterprises of an authentic purpose. Whilst these ideas are not new, Henderson has provided a readable and passionate discussion of them.

The Social Licence for Financial Markets (published 2020) is, as its name suggests, focussed on banks and other financial institutions. David Rouch seeks to develop the concept of the “social licence” that was coined by the former Governor of the Bank of England, Mark Carney. The book is not an easy read and there are some serious issues with its basic thesis. Those who persevere will, however, find much food for thought and, probably, plenty to applaud in what Rouch says.

Business for the Common Good and Why Business Matters to God (published 2011 and 2010, respectively) come from an Evangelical Protestant starting point. In contrast with the secular books, they provide a clearly argued opinion as to the true purpose of business. Both are very readable and Christians of all persuasions should find them a good starting point. Those who are not Christian might also find them illuminating. The many Biblical quotations in Why Business Matters to God may put some readers off but Prabhu Guptara’s comment in his endorsement of Business for the Common Good is applicable to both books: “Nothing in this book prevents it enriching the lives of Hindus such as myself – or, as far as I can see, Buddhists, Muslims, agnostics or atheists!”.

Managing as if Faith Mattered is an older book (published 2001). It addresses some of the same issues from the perspective of Catholic Social Thought and, as its title implies, ranges widely into management issues generally. Non-Catholics (and even Catholics who are not familiar with Catholic Social Thought) may prefer to start elsewhere, since the book is heavy going in places. However, it adds a useful additional perspective to the other books and, as would be expected, is carefully argued and builds on previous thinking. Further analysis is provided by “Rethinking the Purpose of Business” (Cortright and Naughton Ed.), which we have not reviewed but which comprises a series of essays on the purpose of business from a Catholic perspective.

Management as a Calling (published 2021) is not written overtly from a religious perspective although the author speaks with evangelistic fervour, challenging business students and those involved in business to embrace fundamental values and thus address the challenges of modern business, including especially climate change. The book is brief and at times superficial and utopian but it contains much that is thought provoking.

The Gospel at Work addresses questions such as: What role does a person’s faith have at work? How should work be understood by Christians? How can we develop a biblical understanding of work? It is an excellent resource for anyone interested in the topic of faith within the workplace, combining practice and theory well and using clear examples and principles that are backed up by Scripture.

Tides of Life (published 2014) is very different from the other books. It comprises the reflections of a Christian who has spent his life in business (including managing a Fortune 500 company). It is perhaps best to read this either immediately before or immediately after Why Business Matters to God (which Bill Pollard, the author of Tides of Life, describes as a “must read for those who are seeking to glorify God as they do business”). Readers who prefer to start considering a subject by sharing personal stories and experiences should start with Tides of Life; readers who want to have a theoretical framework before plunging into the practicalities should start with Why Business Matters to God.

It is impossible to say that one of these books is “the best”. Readers who only have time to read one of them should probably plump for Business for the Common Good, since it presents a clear and coherent vision of business purpose in a manner that should be accessible to all serious readers. However, those who want to think seriously about business purpose should read several of the books – and then move on to others that we have not (yet) reviewed.

Entrepreneurship and Business Values:

We have reviewed a number of books that consider business motivations and values and which, therefore, consider business purpose, albeit less directly than the books described above. Most of these focus primarily on entrepreneurialism.

Historic Entrepreneurialism

Quaker Capitalism by Richard Turnbull, the director of the Centre for Enterprise, Markets and Ethics (published 2014), considers the Quaker businesses that played a significant role in 19^th Century British business (including businesses such as Lloyds Bank, Barclays Bank, Cadbury, Rowntree, Fry, Friends Life, Clarks and others). Their world was very different from that which exists today but their approach to business should provide a challenge to some of today’s unexamined assumptions and, potentially, ideas and inspiration for modern Christian entrepreneurs.

Quakers, Business and Corporate Responsibility edited by Nicholas Burton and Richard Turnbull (published 2019) comprises a collection of essays relating to Quaker business practices and their economic and social views. Although the essays are of uneven quality, there is plenty in the book to engage any intelligent reader who is interested in business and social issues. It focusses on the historical model of the Quakers in order to draw conclusions and raise questions that are relevant today.

Enlightened Entrepreneurs: business ethics in Victorian Britain by Ian Bradley is an older book (originally published in 1987 with additional material added in 2007). It describes ten great Victorian Entrepreneurs, some of whom are also considered in Quaker Capitalism. Although there is little interpretation provided, the history itself is challenging and inspiring.

Christian Perspectives on Entrepreneurialism and other Business

Business Ethics and Catholic Social Thought (published 2021) contains a disparate collection of essays by 12 authors, which explore the moral assessment of business in a deeper way than the more usual debates around personal integrity or assessments of capitalism and socialism. The writers are theologically informed and are able and willing to engage with economics and business. The result is an interesting book that can be recommended not merely to Catholics but to a wide range of readers.

Entrepreneurial Leadership by Richard J Goossen and R Paul Stevens (published 2013) comes from a US perspective. The authors argue that entrepreneurialism is a process more than a genetic or societal disposition and suggest there are five tenets that make up the essence of entrepreneurship. On occasions, they are perhaps over negative in their assessment of secular entrepreneurs but the book is inspiring and well worth reading.

A Voice to be Heard: Christian Entrepreneurs Living out Their Faith by Richard Higginson and Kina Robertshaw (published 2017) is an easy and enjoyable read. It comprises ordered reflections on Christian entrepreneurship based around the stories and thoughts of 50 contemporary UK based Christian entrepreneurs. It examines a series of issues that are of particular relevance to entrepreneurs and contains challenges for both entrepreneurs and local churches.

The Biblical Entrepreneur’s Experience by S Leigh Davis (published 2021) has a number of defects. Its use of scripture in support of the North American free market system is simplistic and selective and it almost espouses a prosperity gospel, implying that correctly following biblical methods will necessarily bring success. However, it contains some informative material and thought provoking comments and the discussion of the distinctiveness of Christian-led and Christian-inspired businesses is inspiring.

Faith Driven Investing is not another “how to” guide to investing. Its seventeen contributors explore who faith driven investors are and what they are called to do. They stress the intrinsic worth of work and explore what faith driven investors are for rather than merely what they are against. The main audience is Christian investors and entrepreneurs but those with a wider general interest in business as a force for good will find it worthwhile.”

Other Perspectives on Entrepreneurialism

Servant Leadership, Social Entrepreneurship and the Will to Serve (published 2019) is a collection of eighteen separate but thematically connected papers which were given at an international academic conference in Belgium in May 2018. The organising principle is an enquiry as to whether the “will to serve” must always be “crowded out in the real economic arena of hard competition” but the essays are diverse and raise a range of important issues from a variety of perspectives.

Secular Perspectives on Business Issues

The Power Law: Venture Capital and the Art of Disruption (published 2022) is examines the fascinating history of the venture capital from its early days in the 1950s to today. It contains much that will challenge popular perceptions of the industry. It is very readable and does not assume prior knowledge. It examines that mindset and business practices of venture capitalists as well as the range of approaches that they have adopted. Those who wish to be better informed about the industry that has incubated many of today’s biggest companies should read it.

Spiderweb Capitalism describes and draws conclusions from the Kimberly Kay Huang’s research into business in Myanmar and Vietnam. It has serious failings, not least the fact that Huang over generalises and draws unsupported conclusions. Nonetheless, it should be read by anyone who wishes to be aware of the problems associated with business in emerging markets.

Although it is not an easy read, Business Ethics: An Economically Informed Perspective provides a comprehensive overview of the essential concepts of business ethics and a wide-ranging analysis of the issues and tools that corporations need to be aware of as they consider the ethical and moral dimensions of their activities.

Business Ethics: what everyone needs to know interweaves the field of business ethics with components of law and legal practice and branches out into subjects such as philosophy, psychology and organisational management. It is a worthwhile read and, although it is predominantly aimed at business and legal practitioners, those outside the field will find it thought provoking and worthwhile.

The subject of Complicit: How We Enable the Unethical and How to Stop is important and relevant to many areas of life as well as the business world. Unfortunately, however, the book is not well organised and is ultimately disappointing. Readers should not seek it out.

The Power of Regret is not a business book but it has clear application in a business context. Pink aims to challenge the US obsession with positivity and reclaim regret not just as an unavoidable part of mature human living but also as a means of improving decision making and performance. A wide range of people will benefit from reading it.”

In Humans as a Service, Prassl re-evaluates the merits and pitfalls of the “gig economy” and seeks to discover ways that society might benefit from it without falling into extreme forms of labour force commodification. The book focusses on regulatory solutions and lacks a discussion of broader considerations but it is nonetheless a good and informative read.

The holding of corporations to account for their actions has become a major issue in recent years but there remains confusion as to the appropriate basis for this and, hence, the extent to which corporations (rather than individuals associated with them) should be held responsible for wrongdoing. As its name suggests, The Moral Responsibility of Firms edited by Eric Orts and Craig Smith (published 2017) addresses an important aspect of this issue. It comprises 12 high quality essays from leading academics who have a variety of different views. It deserves to be widely read.

Who Cares Wins by David Jones, the former CEO of Havas, the global advertising agency (published 2011) is not about entrepreneurs. It considers the link between social media and socially responsible business. Its basic thesis is revealed in the title and, although some may doubt whether this is always true, no-one can doubt the basic practicability of the points made in the book. It is also helpful to consider ethical issues in the harsh light of modern communications and mass markets.

As its name suggests, Social Entrepreneurship: New Models of Sustainable Social Change edited by Alex Nicholls (published 2006) relates specifically to social entrepreneurship. It is not an easy read. In particular, some of the academic chapters are somewhat turgid and repetitive. However, it is a first class reference book that brings together in one place, and for the first time, the exciting stories of social entrepreneurship, analysis of issues and the academic research agenda.

The Ethical Algorithm addresses the ethical issues arising out of the ever increasing use of algorithms in decision making, from issues of privacy and fairness to the social outcomes of algorithm design. The authors are, on occasions, overly zealous in viewing the world exclusively through the lens of computer science and many questions are left unanswered but anyone with an interest in these ethical implications should read this book.

Ethical Machines (published 2022) considers the moral questions associated with the use of artificial intelligence and machine learning. It is aimed at the business community and seeks to dispel myths and scepticism relating to ethics in the context of AI, encouraging businesses integrate ethical questions into their consideration of AI issues and suggesting how they might do so. It offers plenty of food for thought.”

The Social Dilemma is not a book: it is a Netflix documentary directed by Jeff Orlowski (released September 2020). It is structured around interviews with pioneers at leading social media platforms who believe that things have gone wrong and its thesis is that the tech industry has lost its ethical bearings and, specifically that the social media platforms have sacrificed ethics in the pursuit of profit. The documentary provides a succinct introduction to this issue.