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Even though Ayn Rand thought of herself professionally as both a philosopher and a novelist, she and her writings are often most closely associated with business issues. More specifically, the ideas she elucidated are used to support (or condemn) the actions of entrepreneurs and how they function in society. Even in the absence of State-controls and the regulation of free enterprise, Objectivist principles would be of vital importance in guiding business owners in conducting their work.
Whether the issue is innovation and production of goods and services, interactions between sellers and buyers, or relationships between employers and employees, the Objectivist perspective on production and trade draws on fundamental ethical principles for its practical suggestions. Such standards are universally applicable as individuals conduct themselves in earning a living.
Given the thicket of State-imposed laws, restrictions, and mandates impeding peaceful behavior in all areas of life -- but more so in business -- and a culture largely hostile to capitalism, Rand's insights are of greater importance and necessity now than ever for those seeking to fulfill their personal visions in the realm of business opportunities.
In their book, Ayn Rand and Business, Donna Greiner and Theodore Kinni seek to distill the essence of Objectivist ideas and relate them to managing a business. As a general introduction to core Objectivist principles, the authors are largely successful. Even for veteran Objectivists, this book serves to remind us of why we adopted this philosophy in the first place.
Setting the background for their theme, Greiner and Kinni summarize Ayn Rand's early years. From her encounters with the Russian Revolution in 1917 through her escape to America in 1926 to her first meeting with the legendary filmmaker, Cecil B. DeMille, later that same year, Rand experienced history at a level and intensity that set the stage for much of what she accomplished over the course of her life. Meeting and marrying her ideal man, Frank O'Connor, helped Rand stay in this country and set the stage for the distant confrontation between her and her someday-to-be lover, Nathaniel Branden.
Before that explosive ending, however, Rand honed her skills as a writer in English by working on screen treatments, a play, and her first full-length novel, We the Living. Exploring themes from her childhood, she portrayed the many ways in which statism and collectivism are deadly and destructive, not only for individuals, but for the economic health of a society, as well. Anthem told the brief tale of a future world in which the very concept of "I" has been expunged from the language -- but not the soul -- of the citizens.
Publication of The Fountainhead and its defense of egoism in the person of architect Howard Roark ensured both Rand's reputation and her financial well-being. After a fourteen year gestation, Rand would next birth the quintessential expression of both her spirit and her love of freedom and achievement. Atlas Shrugged hit the bookstores in 1957 and signaled Rand's ultimate triumph and -- sadly and ironically -- her darkest days.
The "post partum" depression of delivering her literary pinnacle was not improved by the unrelenting critical savagery her work received. The affair with Branden that had developed a few years earlier only added to the stresses of that historic publication. Regardless of the tensions pulling at her, Rand approved of Branden's lectures and writings as a means to spread the ideas of Objectivism. The messy end of that business and personal relationship in 1968 disrupted -- but did not end -- the expansion of Objectivism.
Rand's death in 1982 hardly ended the squabbling among defenders of freedom. As Greiner and Kinni point out (pp. 174 - 177), Objectivists would do better focusing their energies on countering the moves of the true enemies of liberty than battling over who "owns" the philosophy of Objectivism.
In their book, the authors attempt to shift the center of attention from such technical disagreements to the broader ideas that those unversed in philosophical discussion find of greater interest and more immediate application. This orientation reflects the title of chapter three, "A Philosophy for Living." Rand never intended for her ideas to molder in the buried volumes of arcane journals. Imminently practical, proper philosophical principles provide a means for average individuals to make choices in all areas of life. If an idea does not correspond reality, there is something wrong with that idea, not with reality.
Part of Rand's genius lay in cutting through the self-constructed Gordian knots of "normal" philosophical discourse to concentrate on what is truly important. She frequently eschewed formality in favor of readability. Those kinds of insights form the body of Ayn Rand and Business.
After summaries of Objectivism's views on metaphysics (objective reality), epistemology (reason), ethics (self-interest), politics (capitalism), and esthetics (romantic realism), Greiner and Kinni illustrate "Randian Work" via the major values of reason, purpose, and self-esteem and the virtues that enable us to achieve those values. Rationality, independence, integrity, honesty, justice, productiveness, and pride each merit their own chapters.
What helps enliven these presentations are the concrete examples the authors use to illustrate these virtues. Many -- if not most -- of the entrepreneurs Greiner and Kinni utilize for this purpose would never proclaim an affinity for Objectivism. Indeed, more than a few might vehemently deny any connection to Rand's ideas, no matter how tenuous.
Such protestations, however, prove only what Rand pointed out many times: that "mixed premises" are the rule today rather than the exception. Regardless of how comfortable successful entrepreneurs might be in acknowledging the correctness of Objectivist ideas, the truth of those principles is becoming more accepted by those seeking to rise to the top of their fields.
This is as it should be. After all, Rand did not "invent" Objectivism in the sense that Henry Ford (one of the authors' examples) invented the assembly line. Rand discovered and formulated or described the basic concepts and principles of a proper philosophy in much the same way that Newton discovered and formulated many scientific and mathematical principles. Whatever refinements or expansions may occur in our understanding Objectivism no more diminishes the truths Rand identified than did Einstein's forays into relativity "disprove" the law of gravity that Newton popularized.
When entrepreneurs adhere to Objectivist principles, they increase the likelihood of achieving their goals. When they stray into subjectivism, evasion, or appeals to force, they will -- in the long run -- fail in such endeavors. Greiner and Kinni make this case throughout their book, e.g., the loss of focus at Intel leading to a shrinking market share or Motorola/Iridium failing to objectively evaluate the market for worldwide cell phone service.
Ted Turner, the management of Bridgestone Tire, the CEO of Singapore Air, Walt Disney, Benjamin Franklin, Warren Buffett, Johnson & Johnson, Conrad Hilton, NASA, T. J. Rodgers of Cypress Semiconductor, Edwin Land of Polaroid, Bill Gates, Jack Welch of GE, and others form an eclectic group of men who Greiner and Kinni show practiced Objectivist virtues -- or failed to do so -- and thus help to demonstrate that such virtues are applicable regardless of one's product line.
The third section of Ayn Rand and Business -- "Randian Management" -- details principles for successfully promoting innovation and good employer-employee relationships. The authors point out that the most essential "capital" in any business are the people involved and their minds; that failure to utilize these "prime movers" in their fullest capacities is self-defeating. Ideas properly implemented help propel a business forward. "Resting on one's laurels" guarantees one will be by-passed by competitors in short order. Like life itself, stagnation -- non-movement -- in business equals death.
To help sustain creativity, managers must recognize that employers are neither chattel to be bought, sold, or traded like so many dry goods nor helpless children who must be cared for throughout their lives. The Trader Principle should, as Rand pointed out, determine the course of all human interactions, whether in personal or business arenas. As individuals, we each have ultimate control -- and responsibility -- for what we do or do not do with our lives. Greiner and Kinni make the point that in a very real sense, we work for ourselves, even if we do not own or operate a business in the classical sense of the word. We offer our talents, our labor, our effort to an entrepreneur who, in return, gives us money to obtain the values that we bring to the table. The recent trend towards free agents, consultants, and temporary employment recognizes this basic fact.
Regardless of the specific nature of the employer-employee relationship, it must be based on mutual respect and cooperation to produce effective results over the life of the business. Owners and managers who "rule" by fear and intimidation will eventually find such strategies self-defeating. As Rand repeatedly stated, no one can force another person to think, and it is precisely those free minds that are the source of entrepreneurial created wealth. Value-for-value, voluntary relationships adhere to this reality and are consonant with human nature.
Harnessing this brain power to a clearly defined purpose, i.e., a well-focused business goal, will increase long-term business viability. When various components of an organization work at cross-purposes to each other or drift along wasting time and energy, concentrating exclusively on immediate, short-term targets, a business is laying the seeds of its own destruction.
Greiner and Kinni end their book with the observation that Rand's ideas on business are becoming "mainstream." Those tiny underground springs are welling up in innumerable spots in our economy, adopted and practiced by many who might have no real awareness of either Rand or Objectivism. That's a legacy Rand would, no doubt, appreciate. But as she was wont to say, it is still earlier than we think. The battle for freedom and capitalism is barely begun.
Overall, Ayn Rand and Business is a fair presentation of Rand, her writings, and the Objectivist philosophy. The authors do, I think, strike a sour note in their final chapter, "Conclusion: Ayn Rand Reprised." After extolling the virtues of individuality, Greiner and Kinni say that, "Rand was not, however, a literary genius in the critical sense." (p. 179) and that "She was a hugely successful writer, but not a great one." (pp. 179-180)
First, literary critics -- especially modern-day ones -- are hardly the determiners of "literary genius." Rand, I think, would reject any such stance as a fallacious appeal to authority. What critics thought of her work is irrelevant to the value of either her ideas or her storytelling. The Fountainhead and Atlas Shrugged will, I believe, be read for as long as people believe in freedom and enjoy reading about compelling characters and situations that inspire and move us.
To me, Ayn Rand was a "literary genius." As an individual, I will stack my judgment against those of the "critics"...or of Greiner and Kinni.
I will, however, gladly and unreservedly echo their final statement:
"...Ayn Rand matters."
