3rd Ingredient® Part 1: The 3rd Ingredient
Fear and greed have long served as the twin prime motivators of marketplace behavior. And on balance, both have served the marketplace and society well. But to the degree that these two active forces could produce negative effects, such possibilities have historically been held in check – or at least somewhat offset – by passive forces. There are at least three levels of passive forces at work, and perhaps Adam Smith described them best: the Impartial Spectator, Moral Sentiment and the Invisible Hand.
Allow me to paraphrase Smith in describing these three passive counterbalances. The Impartial Spectator is simply the self-awareness of our own conduct. Moral Sentiment is enjoying the prosperity of other for no other purpose than the pleasure of seeing it. And Smith’s Invisible Hand is the benefit that passively accrues to society when parties conduct commerce purely in their own self-interests.
Happily, all of these passive forces are still alive and well today. But we’re in the 21st century and, as can be seen by unprecedented events, the causes and reactions that have taken place thus far in the new millennium, things here are different.
Consequently, in this book series we will observe the various entities and sectors that practice in the 21st century global marketplace. As they find their way in this era where leverage can be measured at the speed of light and where the concept of “in their own self interests” is being redefined, we will note where and why passive forces, while as valuable and important as ever, may not be enough anymore.
But the product of our observations won’t result in judgments, but rather questions. Indeed, it is not for me to presume how any individual, company or other entity should behave. But it will be our practice to identify the significant ways that the dynamics of capitalism have changed in the 21st century and to pose questions that we should be asking ourselves and the parties with whom we do business in this new era.
These questions are what I call 3rd Ingredient Questions and they are based on a single presumption, serve a single purpose, and give rise to a single declaration:
The 3rd Ingredient Question:
In the 21st century, are passive counterbalances to fear and greed enough?
The 3rd Ingredient Purpose:
Identify and state the active behavior to which individuals and organizations are willing to commit as their contribution to a marketplace capable of self-regulation and transparency and where trust can flourish.
The 3rd Ingredient Declaration:
Beyond the individual benefits we both intend to receive as a result of our association, let’s also strive to actively create one thing more – a greater value – which we hope will produce a positive direct and indirect impact on the marketplace and society.
Jim Blasingame is creator and host of the Small Business Advocate Show. Copyright 2012, author retains ownership. All Rights Reserved.
