BUSINESS BEYOND TRANSACTIONS: EMBRACING RELATIONSHIPS
This article is part of the Being Human at Work series
Businesses are increasingly encouraged to shift from viewing their operations as mere transactions to embracing a relational understanding of their organization.
This perspective challenges the conventional view of using people solely as a means to achieve business objectives. Instead, it promotes the idea of businesses as social entities, where the quality of relationships, both internal and external, is paramount and influences decision-making.
Economist John Kay emphasizes that businesses suffer when they adopt a narrow view of being just a collection of contracts among self-interested individuals. In contrast, recognizing a business as a social organization, a network of relationships characterized by mutual respect and co-creation, opens up new possibilities. This approach acknowledges each individual's dignity and their commitment to shared, meaningful endeavors.
The realization of a business's purpose and its ability to inspire and motivate hinges on seeing itself as a series of meaningful relationships where every individual's contribution is valued. This perspective not only enhances business performance and engagement but also fosters stronger connections with customers, suppliers, and the community.
The structure of work and the nature of relationships with various stakeholders – including investors, suppliers, customers, governments, and civil society – play a crucial role in supporting the growth and development of individuals and communities. The products and services offered by a business can also contribute to this developmental process.
How a business perceives human motivation significantly shapes its actions. Adopting a realistic view of people – recognizing their need for meaning, mastery, autonomy, and relational fulfillment – is crucial for creating a purpose-driven business. This goes beyond just aiming for higher profits; it's about understanding that people's dignity and the quality of their relationships have intrinsic value. This perspective brings vitality and creativity to the business and has the potential to benefit society as a whole.
In essence, a purpose-led business operates not just for instrumental gains but from a place of genuine respect for the dignity of individuals, recognizing that people truly matter, both in the pursuit of business success and in contributing to the greater good of society.