A Measure of Truth

    In last week's blog I proposed establishing metrics for truth, beauty and goodness. They are qualities that philosophers throughout the ages have identified as ends to which lesser goals should conform. This week I will examine truth.
Every business exists because an entrepreneur identifies a desire for a product or service and gathers people, capital, and resources to satisfy it. The true goal of any company is to provide its product or service. Directors determine a company’s goals and values; investors provide equipment, inventory, land, and buildings; management oversees processes and procedures; and workers provide labour. Companies track and report their progress by recording changes over time in their assets, liabilities, revenues and expenses. These are easily measured by dollar value. In accordance with this brief analysis, I propose they add, as a start, the following metrics for truth:

1. Satisfaction of the customers’ desires. Does the product do what the customer wants it to do for the period the customer wants it to be done?
2. Solidarity. Are directors, investors, managers, and workers all committed to the company’s stated goals and values? Are directors acting for the company or for themselves? Are shareholders invested in the product or the stock market? Are workers there to contribute or to get a paycheck?
3. Subsidiarity. Does anyone overstep their bounds – up or down? Is there sufficient communication and co-operation? Do superiors ensure that authority, resources, and abilities match appointed tasks? Are workers respected? Do they have support and opportunity for personal development?
4. Marketing. Do products meet advertised claims? Is the price fair? Is it honest to produce products of lower quality for specific vendors such that they are only distinguishable from higher quality ones by their product number? Is it right to sell one product at different prices by re-branding?
5. Social impact. Does the company benefit the local community? Does it participate in community events? Does its capital come from ethical sources? Does it generate an acceptable type and amount of waste and dispose of it responsibly? (Many social costs, though real, are not borne by the ones who benefit and are not well reflected in financial statements.)

    Tracking revenues and expenses is an effective method of measuring performance, but money must be kept in its place as a means and not promoted to an end. Profit has been the measure of success for so long that it has become the true product of business. It is very easy to claim truth can’t be measured, but it can.

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