Foundations of Business
Thought
First Edition With contributions by Calvin M. Boardman Professor of FinanceBill Daniels Chair in Business Ethics David Eccles School of Business
University of Utah Alan N. Sandomir
Associate Professor (Lecturer) of Marketing David Eccles School of Business
University of Utah Harris Sondak
Professor of Management David Eccles Faculty Scholar David Eccles School of Business
University of Utah
PEARSON
Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
FOREWORD 1 I—INTRODUCTION 3 A Written Word Is the Choicest of Relics 3 Of Studies from The Essays 6
Francis Bacon
Reading from Walden 7 Henry David Thoreau
From The Souls of Black Folk 12 W. E. B. DuBois
How to Do Business from Safe Methods in Business 14 J. L. Nichols,
Practical Rules for Success from Safe Methods in Business 15 J. L. Nichols
II—MOTIVATION FOR THE DEVELOPMENT OF COMMERCE. , 1 7 Introduction: All That Is Solid Melts into Air 17 From The Journal of Christopher Columbus 22
Christopher Columbus, Clements Robert Markham, and Paolo del Pozzo Tonscanelli
A History of the Ancient World 31
Fray Bernardino De Sahagun
From The True History of the Conquest of New Spain 34 Bernal Diaz Del Castillo
Of Property from The Second Treatise of Civil Government 42 John Locke
1879 Speech to Congress. 51
In-mut-too-yah-lat-lat, also known as Chief Joseph
From Faust Part Two 63 Johann Wolfgang von Goethe
Economy from Walden 83 Henry David Thoreau
The World Is Too Much With Us 99
William Wordsworth
III—FOUNDATIONS OF A COMMERCIAL SOCIETY 1 0 1 Introduction: Don't Know Much About History. 101 From The Republic 110
From The Politics 115 Aristotle
Laissez-Faire Policy from The Economic Principles
of Confucius and His School 120
Chen Huan-Chang
From An Inquiry into the Nature and Causes
of the Wealth of Nations 124
Adam Smith
I, Pencil 129
Leonard E. Read
From The Fable of the Bees 133 Bernard Mandeville
Wealth from Essays and Journals 141 Ralph Waldo Emerson
The Veins of Wealth from Unto This Last and Other Essays
on Art and Political Economy 155
John Ruskin
From Acres of Diamonds •. 163 Russell H. Conwell
From Atlas Shrugged 167 Ayn Rand
Teaching Business to Ladies from
Safe Methods in Business 172
J.L.Nichols
Capitalist Production from Das Kapital 174 Karl Marx
The Social Organism from Religion
and the Rise of Capitalism 178
R. H. Tawney
From The Protestant Ethic and the Spirit of Capitalism 189 Max Weber
From The Acquisitive Society 198 R. H. Tawney — From The Gospel of Wealth 204
Andrew Carnegie
Teaching Business to Children from Safe Methods in Business 212 J. L. Nichols
From The Personal Relation in Industry 214 John D. Rockefeller, Jr.
The Social Responsibility of Business Is to Increase Its Profits 221
Milton Friedman
The Shuchu Kiyaku 227
IV—MARKETING 2 2 9
Introduction: You Are Who You Think You Are;
So Be Careful About Who You Think You Are 229 From The Art of War 234
SunTzu
From De Officiis 245 Cicero
Of Cheating, Which Is Committed in Buying and Selling
from The Summa Theologica 251 Thomas Aquinas
Honesty from Safe Methods in Business 259 J. L. Nichols
Rapid Methods for Marking Goods from Safe Methods in Business 261 J.L.Nichols "
Natural Selection from The Origin of Species 262 Charles Darwin
From The Financier 266 Theodore Dreiser
Pecuniary Emulation and Conspicuous Consumption
from Theory of the Leisure Class 269 Thorstein Veblen
From The Middleman 283 Albert W. Atwood
Control of Prices and People from The New Industrial State 292 John Kenneth Galbraith
V—ACCOUNTING 2 9 9 Introduction: When You Add, You Subtract 299 The Antecedents of Double-Entry 302
A. C. Littleton
Particulars of Reckonings and Their Recording
from Ancient Double Entry Bookkeeping: Luca Pacioli's Treatise 309 Luca Pacioli
How to Keep Accounts from Safe Methods in Business 323 J. L. Nichols
The Eternal Storehouse of Japan [Nippon Eitaigura] 324
Ihara Saikaku
From The Compleat English Tradesman 328 Daniel Defoe
How to Detect Errors In a Trial Balance
from Safe Methods in Business 335 J. L. Nichols
VI—FINANCE 3 3 7 Introduction: Putting It All Together, Bit by Bit 337
A Discourse ofCoyned Money 342
Sir Dudley North
From The Travels of Marco Polo 350 Marco Polo
Lender and Borrower from The Code ofMaimonides 352 Moses ben Maimonides
Of the Sin of Usury from The Summa Theologica 355 Thomas Aquinas
From The Works of Benjamin Franklin 362 Benjamin Franklin
Of Riches and Of Usury from The Essays 368 Francis Bacon
Of Profits from The Principle of Political Economy 373 John Stuart Mill
How Money Grows at Interest from Safe Methods in Business 383 J. L. Nichols
The Credit System from Safe Methods in Business .* 384 J. L. Nichols
How to Do Business with a Bank from Safe Methods in Business 385 J. L. Nichols
The Tulipomania from Extraordinary Popular
Delusions and the Madness of Crowds 386
Charles Mackay
Confusion de Confusiones 392
Joseph De La Vega
From The General Theory of Employment, Interest, and Money 394 John Maynard Keynes
Boards of Trade and Stock Exchanges from Safe Methods in Business 396 J. L. Nichols
VII—MANAGEMENT 3 9 9 Introduction: The Art of Getting Things Done Through People 399 Letter to Horace Greeley 404
Abraham Lincoln
From The Prince 406 Niccolo Machiavelli
From The Republic 409 Plato
From The Analects 412 K'ung Fu-tzu, also known as Confucius
An Employer's View of the Labor Question from The Gospel of Wealth 416 Andrew Carnegie
From Letters from a Self-Made Merchant to His Son 424 George Lorimer
Business Energy from Safe Methods of Business 428 J. L. Nichols
The Condition of Efficiency from The Acquisitive Society 429 R. H. Tawney
From Lady Chatterley's Lover 439 D. H. Lawrence
The Human Side of Enterprise 443
Douglas M. McGregor
How to Do Business from Safe Methods of Business 450 J. L. Nichols
The Nature of Executive Responsibility from
The Functions of the Executive 451
Chester I. Barnard
How To Apply for a Situation from Safe Methods in Business 454 J. L. Nichols
VIII—PRODUCTION . . 4 5 5 Introduction: Take This Job and Love It 455 From The Travels of Marco Polo 460
Marco Polo
Manufactures from The Works of Alexander Hamilton 469 Alexander Hamilton
Manufactures from The Notes on the State of Virginia 476
Thomas Jefferson
That Aristocracy May Be Engendered by Manufactures
from Democracy in America 479 Alexis de Tocqueville
Alienated Labor 483
Karl Marx
From The Principles of Scientific Management 492 Frederick Taylor
From My Life and Work 500 Henry Ford
How to Estimate the Contents of a Pile of Grain,
Potatoes, Hay or Wood from Safe Methods of Business 508 J. L. Nichols
From The House of Mirth 509 Edith Wharton
Economic Foothold from Women and the Trades 514 Elizabeth Beardsley Butler
Man and Machine from All Men Are Brothers 520 Mohandas Gandhi
Business Maxims from Safe Methods of Business 524 J. L. Nichols
Index 527
