Why Are You Studying Business?

When I was in the process of applying to business schools, I went to a Marriott School information session for the program. I can't remember who spoke, but he posed the question, "Why does BYU even have a business school?" The implication being why The Church of Jesus Christ of Latter-day Saints subsidizes a program designed to advance the careers of those involved in business. Many people see business as evil - a selfish profession only designed to increase the coffers of people who already have plenty of money.

I thought about that a lot. It's true that the primary goal of most businesses (at least from a financial standpoint) is to maximize shareholder value. My initial thoughts came from the Book of Mormon. Jacob 2:17-19 reads:
“Think of your brethren like unto yourselves, and be familiar with all and free with your substance, that they may be rich like unto you. But before ye seek for riches, seek ye for the kingdom of God. And after ye have obtained a hope in Christ ye shall obtain riches, if ye seek them; and ye will seek them for the intent to do good – to clothe the naked, and to feed the hungry, and to liberate the captive, and administer relief to the sick and the afflicted.”

A week or so ago in my Managerial Accounting class, we were discussing cost centers vs. profit centers, and really understanding our costs. In business, if we don't really know where our costs come from, we will have a skewed view of our profits and losses - in that situation, we might end up cutting a product that is actually turning a profit, because (based on our accounting system) it appears to be losing money. The bookstore here at the school relatively recently experienced a big layoff. They had been losing money for a while (I don't know the reason why, but probably in part because they didn't understand their costs), and in the end, they had to lay off about 30% of their workforce. These were our brothers and sisters, who as a result were now struggling for their marriages, their children's futures, to pay mortgages, etc. I'm not necessarily saying they should have kept those employees, but the point is that what is done in business matters, and it matters to a lot of people.

It is my professor's assertion (and now mine) that more lives are destroyed by the malpractice of business than of medicine. In his book, Clayton Christensen says, "I genuinely believe that management is among the most noble of professions if it's practiced well. No other occupation offers more ways to help others learn and grow, take responsibility and be recognized for achievement, and contribute to the success of a team."

I have a good friend who told me something a long time ago about working with others. He told me (paraphrasing), "I spend more of my waking hours with you guys than I do with my wife. If we can't be friends/get along, my whole life will be miserable." So why am I studying business administration? Because we need good, ethical leaders in business who will create and reinforce positive company cultures. Leaders who don't motivate with fear, who don't create negative work environments for their employees, who don't make stupid decisions that end up costing people their livelihoods.

I want to be one of those good leaders. That's why I'm going into business.