Thursday, April 16, 2015

Are you 'Anti-business'?

I am 'anti-business', you might be too

A hundred and fifty years ago, when people finally began organizing to eliminate child labor in American factories, they were called anti-business. There was no way, the owners complained, that they could make a living if they couldn’t employ ultra-cheap labor. In retrospect, I think businesses are glad that kids go to school--educated workers make better consumers (and citizens).

Fifty years ago, when people realized how much damage was being done by factories poisoning our rivers, those supporting the regulations to clean up the water supply were called anti-business. Companies argued that they’d never be able to efficiently produce while reducing their effluent. Today, I think most capitalists would agree that the benefits of having clean air and water more than make up for what it costs to create a place people want to live—the places that haven't cleaned up are rushing to catch up, because what destroys health also destroys productivity and markets. (And it's a good idea).

When the bars and restaurants went non-smoking in New York a decade ago, angry trade organizations predicted the death knell of their industry. It turns out the opposite happened.

The term anti-business actually seems to mean, “against short-term waste, harmful side effects and selfish shortcuts.” Direct marketers were aghast when people started speaking out against spam, but of course, in the long run, ethical direct marketers came out ahead. 

If anti-business means supporting a structure that builds a foundation where more people can flourish over time, then sign me up.

A more interesting conversation, given how thoroughly intertwined business and social issues are, is whether someone is short-term or long-term. Not all long-term ideas are good ones, not all of them work, but it makes no sense to confuse them with the label of anti-business.

Successful businesses tend to be in favor of the status quo (they are, after all, successful and change is a threat) perhaps with a few fewer regulations just for kicks. But almost no serious businessperson is suggesting that we roll back the 'anti-business' improvements to the status quo of 1890.

It often seems like standing up for dignity, humanity and respect for those without as much power is called anti-business. And yet it turns out that the long-term benefit for businesses is that they are able to operate in a more stable, civilized, sophisticated marketplace.

It’s pretty easy to go back to a completely self-regulated, selfishly focused, Ayn-Randian cut-throat short-term world. But I don’t think you’d want to live there.

-Seth Godin