In a free enterprise, the community is not just another stakeholder, but is in fact the very purpose of its existence.
Interpretation
Community is central to the purpose of business in a free enterprise system.
This quote emphasizes that, in a free enterprise system, the ultimate aim of businesses should not merely be profit but rather serving the community. It underscores the interdependence between business success and the well-being of the community, suggesting that businesses thrive when they contribute positively to society.
In practice
In a corporate social responsibility presentation.
When we launched a new company, I reviewed the ads and marketing materials and asked those presenting the campaign to read everything aloud to test the phrasing and concept. If I could grasp it quickly, then it passed with muster. We would get our message across only if it was understandable at first glance.
No one knows the cost of a defective product - don't tell me you do. You know the cost of replacing it, but not the cost of a dissatisfied customer.
If all you needed to do is to figure out what company is better than others, everyone would make a lot of money. But that is not the case. They keep raising the prices to the point when the odds change.
I don't think a true company - one that builds sustainable value - can ever only exist online or remotely.
Every business is a monarchy with, not a man, but an idea as king.
It doesn't matter much where your company sits in its industry ecosystem, nor how vertically or horizontally integrated it is - what matters is its relative 'share of customer value' in the final product or solution, and its cost of producing that value.
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