The Fine Line Between Efficiency and Greed

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Efficiency vs. Greed

Every business has a profit motive, which is a good thing. For publicly traded businesses, it’s a duty to their shareholders. Private business owners have a duty to provide for their families and must be profitable in order to survive. The surest ways to profit are to minimize costs while maximizing income. Strategies for both are lauded as sound business and are the subject of many books. 

Yet sometimes businesses both big and small look at their bottom line while neglecting the interests of their customers or the needs of their employees. A truly free market will eventually correct these behaviors because customers and employees vote with their feet. But in the short-term, people are inevitably damaged by greed, which is why it is considered one of the seven deadly sins. 

As a business owner, how can you recognize the fine line between efficiency and greed? If you are profitable, your introspection should include, “how much is enough?” Or ask, “will this efficiency measure hurt others, including clients, customers, or employees?”

The cure for greed is a charitable heart. A charitable heart comes by applying the Golden Rule: “Do to others what you would have them do to you.” This is how you make your corner of the world a better place.