Volume 7, No. 2, February 2025
Editor: Rashed Rahman
Socrates’ views regarding the business world
Professor Maqsudul Hasan Nuri
1. Introduction
Socrates’ teachings as a philosopher are often cited in the fields of law, education, ethics and philosophy. Quite controversial in his lifetime, Socrates did not claim himself as a teacher or anything to do with matters of business. Yet his reflections through oral discourses have become universally known and cover all aspects of human existence. Perhaps if he was asked to write a business training manual or guideline today he would be agreeing with some of the points given below. Socrates was probably the first global citizen long before Reddit, Facebook or Twitter helped create our international tribe online. He had already gained the insight that before any creed or nationality, we are part of a global community. He famously said that I am not a citizen of Athens or Greece but of the world. In this article, an attempt is made to present an overview of the role of ancient Greece as a Mediterranean seafaring trading nation with emphasis on economy and culture. This is followed by a ‘Socratic approach’ and, finally, highlighting some ethical considerations required in business dealings.
2. Ancient Greece: Economy and Culture
Economy
Like a modern metropolis, the city-state (polis) of Athens in the 5th century BCE attracted people who wanted a better life. For some, that life meant engaging in trade and commerce, thanks to the openness of the new democracy established under the lawgiver Cleisthenes in 508 BCE. In ancient times Greek civilisation flourished when they built small colonies and engaged in trade with others. The economy was an essential element of day-to-day life. The civilisation lasted from approximately 1200 BCE to 323 BCE, beginning with the ancient Mycenaean civilisation and ending with the death of Alexander the Great, a formidable military leader. During that time, Greece was not a country but rather a collection of city-states. City-states were independent cities with their own governments and laws. Sometimes, they would be at war with each other. Athens and Sparta were two city-states with a famously contentious relationship.
Each government controlled its own territory and made decisions about how to run the local economy. The ancient Greeks’ most important economic activities included agriculture, trade, craftsmanship and mining. They cultivated crops like wheat, barley, olives and grapes, engaged in trade of goods such as pottery, wine and olive oil, produced valuable crafts, and extracted resources like silver, marble and clay. All Greek city-states took part in trade, either with other parts of ancient Greece or with outside territories. This international trade was part of what made ancient Greece an influential part of the ancient Mediterranean world. For the most part, trade was carried out by private merchants who had the ability to travel to other areas. This economic system, known as mercantilism, served the ancient world.
All businesses operate in a particular socio-political environment. The culture that results from adopting Socratic principles creates an engaging, driven and intense environment where the focus is always on the best possible outcome. Socrates thought that experts even from the field often don’t know as much as they think they do. He approached every topic from a starting point of complete ignorance and scrutinised it to build a better understanding. He thought that if one realises that there is no end to knowledge, the potential to solve problems and create new opportunities are never exhausted.
Art and culture
Athens in the 5th century BCE attracted people from far afield who wanted a better life. For some, that life meant engaging in trade and commerce. Others were drawn to Athens’ incredibly rich architecture, poetry, drama, religious practices, politics and schools of philosophy. Youth travelled there hoping to study with such brilliant teachers as mathematicians Archimedes and Pythagoras; dramatists like Sophocles and Euripides; historians like Herodotus and Thucydides; Hippocrates, the father of medicine; and, of course, the renowned but enigmatic philosopher Socrates.
This was the Golden Age of ancient Greece, whose achievements were so profound and enduring that they have formed the pillars of western civilisation for nearly two and a half millennia. During this period various schools of thought flourished that attempted to make sense of the natural and human worlds. The human world was thought to be grounded in the natural world but to transcend it in striking ways, the most obvious being humans’ use of reason and deliberation. Philosophers like Socrates, Plato and Aristotle tackled fundamental questions of human existence with such insight that their ideas have remained relevant and universal even at the dawn of artificial intelligence. As British mathematician and philosopher Alfred North Whitehead (1861-1947) observed: “The safest general characterisation of the European philosophical tradition is that it consists of a series of footnotes to Plato.”
Why are the insights of these Greek philosophers still relevant today? One reason is their development of the ancient concept of virtue. The person most closely associated with virtue in the west, and the development of what is now known as virtue ethics – that is, an ethical system based upon the exercise of certain virtues (loyalty, honour, courage) – Socrates was way ahead of the curve. Today, his wise dictums have become universal and cover all aspects of human existence, especially in philosophy, law, ethics and education. That many business schools and institutes in the world carry his sayings and wise quotes reflect his enduring relevance in modern times. The common belief in ancient Greece was that business and money were somehow tainted. It reflected Socrates and later Plato’s concept that the physical world was an imperfect expression or shadow of the ideal. Everything in the physical world was somehow less than the ideal, and this included the products of human thought and labour. Despite urgings by many philosophers, the business communities were not always fair and square in their dealings and neither are many businesses today. So, Socrates and others took pains to emphasise this aspect. This imperfection accounted for the many variations found in earthly creatures.
Yet business had an interesting effect that helped invigorate Athenian life and encouraged those engaged in it to be virtuous (or else risk their reputation). This effect was association. Business was based on the free and fair exchange of goods, which brought not only items of merchandise into association with each other but also buyers, sellers and public officials. The way to ensure ethically sound association was through the exercise of prudence, especially in its demand that people act not rashly but deliberately. This deliberative aspect of prudence provided a way for buyers, sellers and everyone engaged in a transaction to act honourably, which was of the utmost importance. Honour was not only a foundational virtue but the cultural environment in which the ancient world existed. One of the worst offences anyone could commit, whether man, woman, free or slave, was to act in a dishonourable way. Of course, acting deliberately does not guarantee that one is acting honourably, but for Athenians, acting in a calculated way was not an indication of dishonour. Dishonourable acts included any that disturbed the basic order (dikē) of life in which everyone craves the accumulation of riches. What concerned Aristotle for its harmful effects on the individual and the city-state was the vice of greed. Aristotle considered greed an excess that tipped the scales of justice and ethics.
3. Socratic guidelines in business
The guidelines given below seem to overlap but are somewhat worth considering.
Honesty/Integrity
Business ethics refer to moral principles and standards that guide behaviour in the business world. It encompasses values such as honesty, integrity, fairness and accountability in all aspects of business operations. Honesty is the cardinal principle advocated by Socrates in all kind of human dealings, including business. Most of the related ethical considerations below fall under this rubric. For Socrates, adherence to ethics means a good life and a good society. According to him, everyone must be dedicated to speaking the truth in all human interactions and acts. This includes not intentionally making false assertions, exaggerations, misrepresentations or selective omissions. Regardless of the news, positive or negative, an ethical employee will treat them with equal sincerity. Here Socrates’ triple filter test is relevant, a method of evaluating the truthfulness and importance of information before accepting it: the filter of truth, the filter of goodness, and the filter of usefulness.
Lifetime learning
Socrates was also called the “prophet of lifelong learning”. He argued that human beings are the only imperfect beings in the universe and yet they have the ability to mature into perfection. He respected knowledge and hated ignorance. His famous quote: “The only true wisdom is in knowing you know nothing” and an “un-examined life is not worth living.” It is the message to grab every opportunity to learn new things and develop oneself through introspection by linking wisdom with knowledge and moral values. In addition, according to him, it is important to view life like an expedition: learning, reading, conversing with superiors, colleagues, peers, hearing direct reports, friends, family and other knowledgeable persons.
Personal ethics
While personal ethics must guide individual behaviour in daily life, for business leaders they are also applicable from ‘bedroom to boardroom’. “Strong minds discuss ideas, average minds discuss events, weak minds discuss people.” This strong quote by Socrates suggests that it is better to focus on ideas how to change and develop better options. If one wants to be successful and happy in business (and personal life) one should mind one’s thoughts and be careful what to say. These are specifically required for the unique challenges and responsibilities of the corporate environment.
Fairplay versus favouritism
As opposed to honesty and integrity, favouritism is an ethical violation. Every person has some biases of his own. However, preferences and personal convictions shouldn’t be allowed to influence decisions in the workplace. The business venture or company must guarantee that everybody has an equal opportunity for advancement. Understanding and practicing business ethics is essential for creating a sustainable and responsible business environment. By adhering to ethical principles, companies can build trust with their stakeholders, enhance their reputation and contribute to the overall well-being of society. The best course of action for running a successful business is to implement these ethics as soon as possible.
Fostering critical thinking
Socrates adopted what is called the ‘Socratic approach’ by asking questions. First, critical thinking shows that one is fully interested in understanding the other person by summarising and paraphrasing if one keeps on asking till it is clear. Secondly, as described briefly above, it helps to discuss different opinions. Questioning everything includes questions about the obvious and own assumptions. This entails clear and concise definitions of key terms and concepts. How can one solve problems if confused with a particular concept that is hazy, ambiguous or murky? A leader, manager or executive cannot work with vague concepts or ostentatious words that are basically meaningless. Clear language must be used to make a good decision.
Setting a definition starts with the simple question: “What is this?” The answer to this question is the first part of the definition. In Socrates’ view, a definition goes beyond words; it is the nature of the definition that counts. Principles such as objectivity and the fundamentals of knowledge and morality are the key. Socrates’ vision was in fostering critical thinking in improving society in all walks of life, including the business world. Plato in his Apology reminds us of a metaphor used by Socrates: a “gadfly” to sting the “steed of the state” into acknowledging its proper duties and obligations. As the ‘gadfly’ of the Athenian people, he was ordained to the state as “a great and noble steed” to be reminded of its proper duties. Moreover, he believed he could do so by constantly ‘buzzing around’ and “stinging the steed of state all day long and in all places.” His explanation of critical thinking is as follows:
All businesses need to encourage critical thinking.
It is better to ask if everything is wrong with this idea.
Encourage people in the team to do the same.
Identify and call out biases.
Encourage team members to explore all alternatives.
Ask people to elaborate on contrarian views rather than relying only on personal experience or views.
Explore alternative or simplified versions of the problem: e.g., when tackling complex issues it is useful to analyse them by removing constraints, or proposing alternative issues that would be easier to solve. For example, faced with the question of improving customer retention, an alternative issue could be improving their retention in a specific market segment or demographic. The generated ideas that could apply to that segment may not be applicable in general, but in generating an idea.
An example of slightly changing the problem could be the case where one wants to improve resource allocation for marketing. How would one change strategy if there was more budget.
Dialogue/Brainstorming
“I cannot teach anybody anything. I can only make them think,” said Socrates. His Elenchus or Socratic debate is a form of argumentative dialogue between individuals, based on asking and answering questions. Most of his works are in the form of dialogue, including the well-known The Apology of Socrates, written by Plato. Socrates opted for this method over writing as he claimed it more reliable for its spontaneity, wider reach, and human contact. This method is based on the process of questioning that can help to uncover that knowledge. He believed that the best way to arrive at the truth is through a process of asking questions, exploring different perspectives and examining one’s own beliefs. This approach can help uncover facts as well as own assumptions and biases and make the brainstorming exercise much more fruitful. For example:
Can you explain your point in more detail?
Is that a fact or an assumption?
Why is this a reasonable assumption?
What is wrong with this idea?
If option A was not feasible what would be a good alternative? What would we need to make option A implementable?
How to get started? Make brainstorming part of team culture. Take any problem and ask your team to generate alternative courses of action. There are online collaboration tools that can be used in these remote work times. Don’t worry if you stumble at first; the only way to get better at it is to practice.
Invite non-experts: non-experts are not biased by the experience of what can work and what can’t. Ideas considered impossible by experts can then be explored in a new light and potentially lead to innovation.
Leadership
Organisational leadership of any organisation or any higher station in life is the commitment to excellence through visionary stewardship and ethical decision-making. Another of the Socratic principles is similar to the saying: “You can lead a horse to water but you can’t make it drink.” The role of a true leader is to empower those below him, but there is no way to force anyone to onboard knowledge. The best way to achieve this is to engage them to think. This is where the best business practices are finding a new addition and reaping rewards.
Loyalty
Sense of loyalty to the Athenian state was invoked by Socrates when he refused to leave Athens knowing full well that he was unjustly convicted and shall face death. Although admired for this virtue, yet the concept has become debatable with time. Actually, the Socratic case was of civil disobedience and hardly of state disloyalty or rejection. Loyalty as a state norm is still invoked by all states. The Socratic view about the loyalty factor in businesses and communities holds true. Company loyalty is evident in Japan and some strong business communities. Most companies still prefer their employees’ retention throughout the world. Presence of company brands attests to this phenomenon.
Short-term or long-term gain
In a world that is constantly in a state of flow and flux, change is an inevitable aspect of business and even life. Especially today, one faces angst caused by unexpected eruption of pandemics, economic downturns and geopolitical shifts. Socrates was not against business per se but argued against ill-gotten, ill-spent amassing of wealth. He remarked that “Wealth does not bring goodness, goodness brings wealth.” As such, he believed he was serving the city of Athens and its citizens by highlighting their incorrect thinking. Most businesses aim at profit maximisation in the shortest possible time. Long-term gains entail consistency, persistence and ethical conduct. All businesses follow a cyclical pattern of boom or bust. Honestly earned profit is a boon. After all, what is the purpose of making money, asked Socrates, if not having more money? In other words, money exists to replicate itself and is fuelled by avarice (the love of money) or greed (the love of material goods). Aristotle observed: “As for the life of the businessman, it does not give him much freedom of action.” Besides, “Wealth is obviously not the good that we are seeking, because it serves only as a means, i.e., for getting something else.” Socrates lamented that his fellow citizens cared more for wealth, reputation and their bodies while neglecting their souls (Apology 29d-30b).
Compliance with rules and regulations
All businesses operate under some rules and regulations. Companies can create specialised policies and rules by starting at the macro level and using these industry rules as a framework. Companies must establish methods to carry out and enforce these principles in addition to writing a code of ethics. Additionally, by adding scenarios whereby team members can fulfil many other functions.
Corporate social responsibility
While personal ethics guide individual behaviour in daily life, business ethics are specifically tailored to unique challenges and responsibilities of the corporate environment. They often involve navigating complex situations where competing interests may arise. Businesses pose ethical dilemmas that include issues such as bribery, conflict of interest, environmental responsibility, employee treatment, product safety, and honesty in advertising and financial reporting. Businesses can promote ethical behaviour through clear communication of values and standards, comprehensive ethical training for employees, implementing robust compliance programmes, establishing ethical decision-making frameworks, and fostering a culture of transparency and accountability.
Conclusion
Today, the business world has become more complex and diverse. Developing economies are increasingly burdened by debts, foreign loans, regional conflicts and political instability. But through regional connectivity, skillful use of technology and ethical principles, things could hopefully improve. Socrates’ insightful precepts on cognition and ethical values in business practices, though quite basic, are still valid today despite the long hiatus of two and a half millennia. As a moral philosopher, Socrates was sentenced to death on charges of blasphemy and corruption of the Athenian youth, which he accepted with serenity and resignation. That he is still revered and often cited for his wisdom and unwavering moral principles include, among many notables, Reverend Martin Luther King Jr., Nelson Mandela and Benjamin Franklin.