I earned my MBA last year and while I really enjoyed and gained from my studies, I really wish that the aurora surrounding the degree was one a bit further removed from the reputation of corporate greed and inhumane capitalism.
Capitalism and business may seem to be kissing cousins (especially if your concept of "business" is intrinsically tied into profit production). However, looking at business in its pure form: the production of goods and/or services for consumption; it does not preclude a socialist economic structure. The more important question is what are the goals and what makes for a successful business venture or management strategy according to socialist principles?
If you happen to be an entrepreneur or manager with socialist inclinations, yet operate in a capitalist society, there can be some debate as far as how effective or how completely you can carry out your ideals. I personally feel that one benefit that we do have in the United States in the private sector is the freedom to build and manage business to our own preferences (as long as we stay in financial compliance and make the IRS and law enforcement happy). So let's look at a few key issues, and examine how they can be influenced by a socialist mindset.
Production - The term "lean manufacturing" has been thrown around...ever since Toyota's success in the 1990s caused business leaders to take note. However, the term has now become somewhat of a gimmick, and used synonymously with the term "efficient". However this is not quite the case. Lean production focuses on reducing or eliminating waste. It also focuses on continual process improvement and ongoing quality control. Stocking just enough materials for production and only producing what is needed keeps pricing under control and reduces the need for unnecessary price changes due to overproduction or underproduction.
Marketing - A key goal of marketing is to create or show the consumer the value in a product or service. It goes without saying that issues with ethics and accountability come up all the time in regards to marketing. I resist the urge to say that there should be government controls and censorship of the marketing initiatives of small business. However, the socialist approach to marketing as initiated from within, would focus more on creating an maintaining customer relationships. It would embrace, not shy away from transparency and customer feedback. The dialogue in regards to problems and concerns between the business and the customer would be public and more candid. Marketing initiatives would be more closely in tune with what customers prefer instead of trying to force-feed a particular viewpoint or attitude upon them.
Financials - One saying that you are almost guaranteed to hear in business school is that "...you are in business to create money". I don't disagree with this. What I believe should be questioned is how your business chooses to raise money and how they distribute profits. Taking on debt aggressively and then claiming bankruptcy when it does not work out is not a path that should be taken lightly. It is much more responsible to grow organically and gradually; taking on debt for business necessities only (and I have a strict definition of "necessity"). On the other side profits should not be squandered.
Management Style - management styles (also known as leadership styles) are largely dependent upon the individual. But if I had to pick an ideal, it would be the "Coaching" style. This approach puts the manager more on par with the employee; without undercutting your unique role. It encourages growth and improvement and cooperation. Much preferred other the other styles which create clear divisions among the corporate hierarchy.
Sustainability - The direct negative impact that a business has on its environment, host society, local economy and even competitors should be minimal. Profits should not be more important than any these entities. To expand a bit upon the issue of negatively impacting competitors, there is an unhealthy tolerance among capitalists to spy on, sabotage, and directly undercut competitors.
Community Involvement - Employees have a life outside of their jobs. Businesses benefits from numerous allotments from their host community, but how often do they give back? Direct gifts to the local school, nonprofit organizations and local citizens is more meaningful than large-scale corporate driven "charities" such as breast cancer and MS walks; and symbolic donations written out to any old 501(3)(c) which can qualify the company for a tax write-off.
Compensation - There should be a transparency in regards to salaries (this discourages gross salary inequities and nepotism). Owners and managers who are the top earners should be exempt from incentive pay...especially incentives that come from the efforts of subordinate employees. Keeping salaries up with the cost of living should be paramount. A company should be willing to lose frills such as prime office real estate, company cars, holiday parties, etc. if it comes down to either them or facing pay cuts. Inefficient workers should not be retained (although it should be encouraged to use an employee to their full potential if possible).
I'm sure there are many other points for analysis and issues facing business owners and managers who happen to have socialist ideals. What is encouraging to see is that there is a new trend starting among MBA programs today where several are focusing on training managers and entrepreneurs specifically for leadership roles in nonprofits organizations and in sustainable business practices. More often than not these programs offer business instruction whose focuses is more towards a more holistic approach as opposed to the profit-driven approach. It will be very interesting to see the long term impact of graduates from such programs.