Howdy MBA

I’m attempting to develop my “MBA Vision” so this is an article about a current event and its impact in the areas of business and the economy.

A great deal of recent news coverage has revolved around Pope Benedict XVI’s historic visit to the United States. Many news articles focus on how he will address the Catholic Church’s problem of pedophile priests, but I wonder what impact, if any, does the Pope have on the business world?

The Pope is one of the most visible and powerful religious figures in the world. Pope Benedict XVI’s theological knowledge is without question, but his thoughts about economics and finance are less defined. However, I have found a couple of articles that communicate his point of view in these areas. For example, he has spoken out against consumerism by stating (in this article):

“adolescents, youths and even children are easy victims of the corruption of love, deceived by unscrupulous adults who, lying to themselves and to them, draw them into the dead-end streets of consumerism.”

Of course, companies across multiple industries directly target young people since they usually have a high degree of disposable income. If the Pope’s view about consumerism was taken to heart by businesses, then they would have to stop spending billions of dollars on targeted advertising to convince young people to buy products ranging from toys to tennis shoes. Billions more would be lost if parents worked to wean their children off the lure of retail therapy and instill in them moral values in line with the Pope. So, the Pope could have a huge impact on the economy except for two simple facts: companies exist to make money and many parents are intense consumers themselves as evidenced by the extremely low level of personal saving across the world. In fact, many Americans have negative rates of savings because they are spending more than the make.

In another article, the Pope’s thoughts about how companies should treat their employees is summarized as:

At the same time the social teaching of the Church insists that businesses must also safeguard the dignity of the human person, and that even in moments of economic difficulties, business decisions must not be guided exclusively by considerations of profit.

While HR departments and public statements made by most companies fall in line with this notion of “we care about our people” it is clear that many companies place providing value to shareholders over the needs of their employees. This is clearly shown by their willingess to quickly lay off employees in times of difficult corporate or economic stress.

As we learn more about Pope Benedict XVI we will no doubt learn more about his thoughts regarding the business world. As shown by these two examples of his thoughts on consumerism and corporate responsibility for employees, his views could directly impact real business decisions. However, his true impact is constrained by the willingness of decision makers in both corporate offices and households around the world to practice what he preaches.