First Principles: This episode opens with the statement, "Business is not about greed."

Topic for discussion: Of course, business is about making money. If you don't make money, you're offering goods and services to people who may pay you, but what you collect doesn't generate profits after all the bills are paid. In fact, if you don't make money, you're not running a business; you're running a charity.

What is the difference between earning profits and greed?

Possible answer: We have seen incredible greed exposed in the ENRON, WorldCom, Tyco and HealthSouth cases which are all publicly-traded companies. Over-the-top excess flaunted by CEOs has made those of us who love capitalism quite sad. How could these bright, creative, energetic leaders abuse their investors and employees? We have always said here that people have a, "Sliver of Genius." This means that someone who is brilliant at hiding losses can be completely stupid at dealing with people.

Big company CEOs must spend all of their time with spreadsheets and isolate themselves from the people on their payroll. They couldn't possibly know people who come in everyday and work hard and treat them with such disdain.

Greed is rooted in fear and solipsism. The thinking that proceeds action has to be about, "I may not have enough for myself so I better take it while it is here." Or, "I am the beginning and the end of this company. Every other person is simply doing what flows from my direction. Therefore, I get all the goodies."

The difference between earning profits and greed is a sense of fairness. All businesses have a life cycle. If you invent something it is possible you will earn huge profits until others copy you and drive the price down. You are not greedy in this situation, you are enjoying your fair, first-to-market advantage.

Michael Novak has written at least 25 books about capitalism and if you read him you will learn that his theory is, leaders must have a moral compass. There are too many day-to-day decisions being made in running a business to have a rule for every situation.

Topic for discussion: Can greed work over the long haul?

Possible answer: We don't think so. If you are greedy you may have more cash and toys than another person, but so what? You can't build a strong business that will out live you and be greedy at the same time. Excess cash must be invested in people, real estate, technology and the best equipment available.

Capitalism is the only proven system that can lift people out of poverty. The new Americans prove it to us everyday. Capitalism, and therefore business, is not about greed, it's about creating value. We see greedy people running businesses and they spoil the game for those of us who love helping everyone around us to be prosperous.