A Challenge to Conventional Wisdom on Small Business and Jobs

Robb Mandelbaum’s article: “He argues that small businesses really don’t employ the majority of Americans, and that they don’t create the majority of new jobs”. It could be true, because small businesses don’t employee the majority of US citizens. For instance, a company like Apple or Wal-Mart or a fast-food restaurant has tons of employed people. However, the major fact that Bernstein neglects is that a vital economy, and the jobs that inevitably result, is driven by productivity. It is productivity (more output value for less money and time) that raises the living standards for everyone in a society. Productivity improvement leads to progress. And when you compare small business productivity to mega corporation productivity, it doesn’t look very good. Lots of people in those big corporations spend all day long, doing non-productive things. That is not good for productivity rates, GDP growth, or “societal progress”. It’s amazing how many political economists believe that our goal should be to fill as many cubicles as possible with warm bodies and start giving these bodies money regardless of the value they produce for society! Our goal should be to have as many people as possible doing useful things that other people in society value.

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http://boss.blogs.nytimes.com/2011/10/24/a-challenge-to-conventional-wisdom-on-small-business-and-jobs/?ref=smallbusiness

Julie Tappero’s article, “In business, ethics really DO matter”, takes a look at the basics of business ethics. She delves into the significance of business ethics, explaining why its crucial to develop ethical behavior in the workplace.

Without integrity, transparency, and a proper code of conduct, companies will find themselves facing discontented employees. If managers or other individuals in positions of leadership adopt shady conduct, it trickles down to the employees, who then feel no motivation to respect business ethics.

One particular passage that pointed this out was: “Ethical behavior needs to be modeled by the company’s leadership. As children look to their parents to see how they are to behave, so do our employees look to us.”

Tappero’s article reflects the importance of how a C.E.O. or managers’ actions and sense of conduct affects the “moral compass” of the company. In order to promote transparency, honest communication, and fairness, one must begin at the top.

(156 Words)

http://kpbj.com/headlines/human_resources/2011-09-03/in_business_ethics_really_do_matter