The social doctrine of the Church tells us “economic initiative is an expression of human intelligence and of the necessity of responding to human needs in a creative and cooperative fashion.

Creativity and cooperation are signs of the authentic concept of business competition” a ‘cum-peter’, that is, a seeking together of the most appropriate solutions for responding in the best way to needs as they emerge.

The sense of responsibility that arises from free economic initiative takes not only the form of an individual virtue required for individual human growth, but also of a social virtue that is necessary for the development of a community in solidarity.”

“Important virtues are involved in the process, such as diligence, industriousness, prudence in undertaking reasonable risks, reliability and fidelity in interpersonal relationships, as well as courage in carrying out decisions which are difficult and painful but necessary, both for the overall working of a business and in meeting possible set-backs.”

A number of persons have pursued educational opportunities with the desire or hope of becoming business owners and managers. Their rationale for doing so is usually based on self-interest, securing a better or more comfortable life and achieving self-actualisation.

Students learn the technical skills of accounting, human resource management, production and market analysis. There is often little discussion during the training of the responsibility that goes with such positions; or at least the responsibility discussed relates only to the particular business the persons are involved in.

While discussions may focus on, for example, proper labour laws that are fair and environmental impacts of decision, many times the focus is on ensuring that there are minimal negative impacts to the profitability and viability of businesses in the long run.

However, the starting point of the decision to pursue a career as a business owner or manager, and discussions during training should be viewed from the standpoint that “business owners and management have a central importance from the viewpoint of society, because they are the heart of that network of technical, commercial, financial and cultural bonds that characterises the modern business reality.

Due to the increasing complexity of business activities, decisions made by companies produce a number of very significant interrelated effects, both in the economic and social spheres.

For this reason the exercise of responsibility by business owners and management requires – in addition to specific updating that is the object of continuous efforts – constant reflection on the moral motivations that should guide the personal choices of those to whom these tasks fall.”

“Business owners and management must not limit themselves to taking into account only the economic objectives of the company, the criteria for economic efficiency and the proper care of ‘capital’ as the sum of the means of production.

It is also their precise duty to respect concretely the human dignity of those who work within the company. These workers constitute ‘the firm’s most valuable asset’ and the decisive factor of production.

In important decisions concerning strategy and finances, in decisions to buy or sell, to resize, close or to merge a site, financial and commercial criteria must not be the only considerations made.”

“The Church’s social doctrine insists on the need for business owners and management to strive to structure work in such a way so as to promote the family, especially mothers, in the fulfillment of their duties; to accede, in light of an integral vision of man and development, to the demand for the quality of the services to be enjoyed, the quality of the environment and of life in general; to invest, when the necessary economic conditions and conditions of political stability are present, in those places and sectors of production that offer individuals and peoples an opportunity to make good use of their own labour”.

This presents a challenge to various persons in the society. For business owners, there is now a need to reassess motives for decisions made, and to always bear in mind the common good. For customers, there is a need to keep key business decision-makers accountable to the society.

This requires an informed and conscious citizen who is aware of what is happening in his/her community and the likely impacts of business decisions. It is essential that persons designing the curricula for training programmes focus on the need to promote human dignity.

Next week we look at “Economic Institutions at the Service of Man”