Philosophy is Back in Business

Forget economics. Philosophy offers a deeper, broader way of thinking to help guide companies through times made tougher by overspecialized experts

By Dov Seidman

The financial and climate crises, global consumption habits, and other 21st-century challenges call for a "killer app." I think I've found it: philosophy.

Philosophy can help us address the (literally) existential challenges the world currently confronts, but only if we take it off the back burner and apply it as a burning platform in business.

Philosophy explores the deepest, broadest questions of life—why we exist, how society should organize itself, how institutions should relate to society, and the purpose of human endeavor, to name just a few. The Wealth of Nations, a book that serves as the intellectual platform for capitalism, lays out how markets should be organized and how people should behave in such markets. The book's author, Adam Smith, was not an economist, as many believe, but a philosopher. Smith was chairman of the Moral Philosophy Dept. at Glasgow University when he wrote the book.

Like other philosophers, Smith attempted to create a new framework for understanding the world, addressing how we as humans seek alignment in our relationships and among competing interests.

The philosophical approach Smith pursued has faded from use, yet it's more relevant than ever in light of the crises our organizations and countries face. Credit, climate, and consumption crises cannot be solved through specialized expertise alone. These problems, like most issues businesses confront in the global marketplace, feature complex interdependencies that require an understanding of how political, financial, environmental, ethical, and social interests influence each other. A philosophical approach connects the dots among competing interests in an effort to create synergy. Linking competing interests requires philosophers to examine areas that modern-day domain experts too often ignore: core beliefs, ethics, and character.

When I say we need to return to a philosophical approach in relation to problem-solving, I mean that we need to broaden our understanding of problems by looking deeper at our own beliefs, values, ethics, and character, and then understand how they relate to those of others who share a stake in our problem-solving efforts.

Needed: broader questions and goals

This has grown difficult to do at the organizational level because so many our businesses are packed with specialized domain experts. We are having trouble connecting the dots among these knowledge silos to conceive enduring solutions.

Like philosophers, we as individuals and organizations need to keep values, ethics, and the overall human condition in mind as we make decisions and take actions. Among other behaviors, this means hiring for character (in addition to specialized skills), considering the long-term implications (in addition to the short-term rewards) of our decisions, and figuring out how we can create value (in addition to extracting value).

By taking these steps and embracing a more philosophical approach to problem-solving, we will establish our character as the 21st century's defining competitive differentiator. As the Greek philosopher Heraclitus so elegantly put it almost 2,500 years ago: "Character is fate." This holds true for individuals and organizations.

I see growing evidence of businesses asserting their desire to address the human condition, which certainly marks a step in the right direction.

My bias stems from my experience as an undergraduate at UCLA, where philosophy lit a fire inside me. By rewarding me for the careful consideration of one idea instead of compelling me to read hundreds of pages of text, philosophy helped me understand why I was struggling in all other academic areas. I studied philosophy for seven years before I went to law school, where I took eight classes in jurisprudence, which is essentially the philosophy of law.

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