Written by:
Thomas Loeffler

Nearsighted Approach

Today, in the world of business, we have fallen short in many regards. The irony is in our shortsighted approach. One would think it would be difficult to fall when they are looking at what is in front of them. I can see where we missed a step after attending Princeton’s Business Today conference in Austin, Texas. In Austin, I discovered a fundamental function of business that needs to be reevaluated in our nation: people. The “human capital” of a company is known as just that, and we have essentially lost our most valuable asset because we do not treat them as such. Our drive to make the statements meet our expectations for the quarter has left a disregard for the people doing the work to make those numbers happen – the employees. All we have to show is an economic recession, higher than quoted rates of unemployment, and a bleak outlook for sustainable growth in the future.

The problem here does not just start and end with the businesses of corporate America. The trickle-down effect has left universities and lower levels of education with little to show for their teachings besides theories and memorization. What we are lacking here are the social values meant to be instilled in us from a young age in our homes. The understanding of accountability, fair-dealing, trust, and dependability are examples of such social values that need a revisit.

Recently, I have seen an emphasis on the teachings of ethics in the classrooms here at Virginia Tech. The stress on this subject is a direct result of Enron and other scandals alike from the early 2000s. While the Sarbanes-Oxley Act provides us a physical reminder of the direction we need not resume, the recent economic recession and negative effects have yet to spur a solution that will stop the bleeding at the source. If we made a conscious daily effort in the classroom to teach the fundamentals of societal values, it is fair to assume that we may move in the direction America needs to be heading – towards a sustainable, long-term solution.

The Fed’s inflated balance sheet and our trillion dollars worth of debt are seen as numbers in the papers that are thrown away every day. At a brief glance, these numbers serve as nothing more than a reminder that we are in poor economic condition. Yes, many are feeling the effects of a poor economy but many believe this is not our demise, just yet. The debt will be paid off by our grandchildren and their children (and their children’s grandchildren). Unemployment will level. People will feel comfortable again one day; but, for how long? In order to make a change in the business world of tomorrow, America and her young business leaders need to focus on a change in our outlook today. Our shortsighted approach will no longer be effective in a global society. In the long run, the numbers will take care of themselves if we make a pact to move forward with an emphasis on valuing each other first and foremost. We must plan for the future with a start from our fundamentals. When we realize that the people in the company come first, we will reach a long-term, sustainable, and successful future outlook.

Photo courtesy of Flickr.