CHAPTER XXI THE ETHICS OF BUSINESS "The law of unfair competition is based upon three social necessities: First, to protect the plaintiff in the good-will of his business; second, to restrain and otherwise punish the trader who is competing by unfair means; third, to protect the consuming public from deception, imposition, and fraud.” -J. L. Hopkins, in Modern American Law. Since the days of Benjamin Franklin men have built up business empires greater than he ever dreamed of, but no one of these eminent captains of industry has succeeded in expressing more clearly than he did the great principles that are fundamental in business success. For example, he earnestly advocated temperance. "Eat not to dullness," he admonished; "drink not to elevation." And order with him was a cardinal principle. Said he, "Let all things have their places; let each part of your business have its time.” In a small business, as in a small box, things may perhaps be mixed and jumbled without so much inconvenience the man in the small shop may be able to find this, that, or the other article even if it is out of place; but in the big business, order and system are essential. In the large shop or the large office without order a man will not only lose things, he will also lose time-he will lose business. Not only so, but he will sooner or later lose himself. He will become involved in confusion of thought, confusion of principles, and confusion of accounts. His business will fall into bankruptcy and he himself will be in imminent danger of relapsing into unfair and dishonorable practices in his efforts to disentangle himself from the general mix-up. Order is a principle of nature. It must be a first law in business. Franklin also advocated resolution. "Resolve," he urged, "to perform what you ought. Perform without fail what you resolve." Herein we have suggested two values: a commercial value and a personal value. The business man in performing what he ought secures the confidence of other men. Thus he builds up the most valuable asset of all for success in trade. In performing what he resolves he builds up continually his own resources of moral strength. His personal stock of good habits is safely replenished from day to day. Frugality and industry were also cardinal principals with Franklin in his catalogue of business maxims. "Make no expense but to do good to others or yourself; that is, waste nothing. Lose no time. Be always employed at something useful. Cut off all unnecessary actions." Recreation is doubtless necessary to the hardworking business man; but he must always clearly distinguish needed and helpful recreation from mere waste of time and resources. Next door to recreation dwells dissipation. The one is upbuilding to health and capacity; the other is only prodigal of time, energy, and money. The one charges the human battery, the other runs it down. Hence, the one is exhilarating, the other is enervating. Therefore, if for no other reason, the one is ethical, the other is wrong. Sincerity is another great principle that the canny Franklin recognized as fundamental. "Use no hurtful deceit. Think innocently and justly." Thus he urged an open face and an uncovered hand. Courtesy is, of course, entirely consistent with sincerity and frankness. And the public soon learns to distinguish the real courtesy that expresses generous kindness and the sham smile that is employed only to hide a stealthy crookedness. Moderation and tranquility were also laid down by Franklin in his fundamental maxims. And no young American should overlook the fact that Franklin is, by common consent, regarded as our greatest diplomat. No man in our glorious history has shown more ability than he in dealing with other Good business is largely good diplomacyskilful and upright dealing with men. "Avoid extremes," he urged; "forbear resenting injuries as much as you think they deserve. Be not disturbed at trifles, or at accidents, common or unavoidable." men. Here, then, in summary, are some of the maxims of the illustrious Franklin: Order, resolution, frugality, industry, sincerity, moderation, and tranquility. Are they not good foundations for business? And are they not thoroughly ethical? For character and for good citizenship they can hardly be excelled. If none of the great business men of later generations have surpassed Franklin in stating good business maxims, it is very significant that they, when they have attempted to catalogue their rules of success, have almost invariably mentioned many of the same principles that he emphasized. His Take, for example, John McDonough. story is not so familiar to our people as that of Franklin, but it is none the less interesting and inspiring, for all that. Every year the school children of two great cities, Baltimore and New Orleans, do him honor. McDonough, like Franklin, was a poor boy. His early life was darkened with many bitter experiences, but he held fast to his purposes with fixed resolution and finally won both wealth and honor. Baltimore was his boyhood home, but New Orleans was the place where he built up his fortunes. In that city today one may see numerous monuments that commemorate him; and every spring the pupils of the schools decorate his statue with flowers. At his death in 1850 most of his large fortune was given to education in the two cities that he loved-New Orleans and Baltimore. Here are some of John McDonough's business maxims: Time is gold; throw not one minute away, but place each one to account. Do unto all men as you would be done by. Never put off till tomorrow what you can do today. self. Never bid another to do what you can do for your Never covet what is not your own. Never think any matter so trifling as not to deserve notice. Never give out that which does not first come in. Let the greatest order regulate the transactions of your life. Study in your course of life to do the greatest amount of good. If one should undertake to set out each of these nine maxims in a single word, what words might best be chosen? Would not the following be a fair selection? Thrift Promptness Self-reliance Generosity Carefulness Preparation Beneficence Most of these closely parallel Franklin's principles; and some of them remind us of the cardinal virtues-prudence, justice, temperance, and forti tude. Forethought is nearly always an essential to business success in any large measure. Forethought |