The lecture of “What’s a Business for?” of Charles Handy it’s a very interesting text

where the author discuss the role of companies in the society. His point of view is

different from the Milton Friedman’s one. It is possible to say that Charles Handy

defends a “more European” approach. Companies have in the society a more important

role than just producers of goods and services. According to Friedman, the social role of

a company is just to pay wages, pay taxes…But according to Charles handy they are

something more, they have more responsibilities. In fact, Friedman did not talk about

very important issues like the environmental impact of future generations. If one

analyses its text now can feel that he is defending bad practices in the companies, but it

is completely false. He argues that any company must act under the umbrella of the law.

He developed all his work in a world context very different to the one that we have

today. At that time there was a confrontation between the capitalist model and the

communist model. He also lived in the times of the cheap oil and the globalization was

not yet a reality. However, after several crises we can see how companies may lack a

long-term vision. According to Handy, the role of executives has changed quite a bit

over the years. The people in these positions are put in place to make decisions that are

best for the company as a whole with all its stakeholders in mind. Lately, Handy states,

it seems that executives no longer run their companies for the benefit of consumers,

stockholders, and employees, but for their own ambition and financial gain.