7160329_CH00_FM_pi-x.pdf 7/5/07 10:31 AM Page v FOREWORD......................................... 1 INTRODUCTION....................................... 2 Of Studies from The Essays.................................................... 5 Francis Bacon Reading from Walden......................................................... 6 Henry David Thoreau From The Souls of Black Folk................................................... 11 W.E.B. DuBois Vignette: How to Do Business from Safe Methods in Business...................... 13 Vignette: Practical Rules for Success from Safe Methods in Business................ 14 I THE MOTIVATION FOR BUSINESS DEVELOPMENT.............. 15 Introduction: All That Is Solid Melts into Air................................... 15 From The Diary of Christopher Columbus........................................ 18 Christopher Columbus Vignette: A History of Ancient World........................................... 28 Fray Bernardino De Sahagun From The True History of the Conquest of New Spain............................... 30 Bernal Díaz Del Castillo From Faust................................................................. 38 Johann Wolfgang von Goethe Economy from Walden....................................................... 59 Henry David Thoreau Vignette: Letter to Horace Greeley.............................................. 74 Abraham Lincoln II BUSINESS FUNDAMENTALS........................... 75 Introduction: Don t Know Much About History................................ 75 From The Republic........................................................... 84 Plato From The Politics............................................................ 90 Aristotle From Atlas Shrugged......................................................... 95 Ayn Rand Laissez-Faire Policy from The Economic Principles of Confucius and His School........................................................... 100 Chen Huan-Chang v
7160329_CH00_FM_pi-x.pdf 7/5/07 10:31 AM Page vi vi From An Inquiry into the Nature and Causes of the Wealth of Nations................ 104 Adam Smith From The Fable of the Bees.................................................... 109 Bernard Mandeville Wealth from Essays and Journals.............................................. 117 Ralph Waldo Emerson The Veins of Wealth from Unto This Last and Other Essays on Art and Political Economy..................................................... 132 John Ruskin Vignette: From Acres of Diamonds............................................ 140 Russell H. Conwell Vignette: Teaching Business to Ladies from Safe Methods in Business.............. 143 Capitalist Production from Das Kapital........................................ 145 Karl Marx The Social Organism from Religion and the Rise of Capitalism..................... 149 R. H. Tawney From The Economic Revolution............................................... 160 Robert L. Heilbroner From The Protestant Ethic and the Spirit of Capitalism............................. 172 Max Weber From The Acquisitive Society................................................. 181 R. H. Tawney From What Kind of an Animal Is This Here Capitalism?............................ 187 David M. Potter From The Gospel of Wealth................................................... 196 Andrew Carnegie Vignette: Teaching Business to Children from Safe Methods in Business............ 204 From The Personal Relation in Industry......................................... 206 John D. Rockefeller, Jr. The Social Responsibility of Business Is to Increase Its Profits.................... 213 Milton Friedman Controlling the Corporation................................................. 219 Robert L. Heilbroner Vignette: The Shuchu Kiyaku................................................. 223 Seika Fugiwara III MARKETING.................................... 225 Introduction: You Are Who You Think You Are; So Be Careful Who You Think You Are..............................................225 From The Art of War........................................................ 230 Sun Tzu
7160329_CH00_FM_pi-x.pdf 7/5/07 10:31 AM Page vii vii From De Officiis........................................................... 242 Cicero Of Cheating, Which Is Committed in Buying and Selling from The Summa Theologica.................................................... 248 Thomas Aquinas Vignette: Honesty from Safe Methods in Business............................... 256 Vignette: Rapid Methods for Marking Goods from Safe Methods in Business........ 258 Natural Selection from The Origin of Species.................................... 259 Charles Darwin Pecuniary Emulation and Conspicuous Consumption from Theory of the Leisure Class........................................................ 263 Thorstein Veblen Vignette: The World Is Too Much With Us...................................... 277 William Wordsworth Business and the Public from Propaganda...................................... 278 Edward Bernays From The Middleman....................................................... 289 Albert W. Atwood Modern Developments from Elements of Retail Salesmanship...................... 298 Paul W. Ivey The Dependence Effect from The Affluent Society............................... 303 John Kenneth Galbraith IV ACCOUNTING................................... 309 Introduction: When You Add You Subtract................................... 309 The Antecedents of Double-Entry Bookkeeping from Accounting Evolution to 1900......................................................... 312 A.C. Littleton Particulars of Reckonings and Their Recording from Ancient Double Entry Bookkeeping: Luca Pacioli s Treatise................................... 319 Luca Pacioli Vignette: How to Keep Accounts from Safe Methods in Business.................. 334 From The Eternal Storehouse of Japan [Nippon Eitaigura]......................... 335 Ihara Saikaku From The Compleat English Tradesman......................................... 339 Daniel Defoe Vignette: How to Detect Errors In a Trial Balance from Safe Methods in Business.... 346
7160329_CH00_FM_pi-x.pdf 7/6/07 3:42 PM Page viii viii V FINANCE...................................... 347 Introduction: Putting It All Together, Bit by Bit................................ 347 From A Discourse of Coyned Money............................................ 352 Sir Dudley North From The Travels of Marco Polo............................................... 360 Marco Polo Book VIII: The Book of Civil Laws from The Code of Maimonides.................. 362 Moses ben Maimonides Of the Sin of Usury from The Summa Theologica................................ 368 Thomas Aquinas Of Riches and Of Usury from The Essays...................................... 375 Francis Bacon Of Profits from The Principle of Political Economy................................ 380 John Stuart Mill Vignette: How Money Grows at Interest from Safe Methods in Business............ 391 From The Works of Benjamin Franklin..........................................392 Benjamin Franklin Vignette: The Credit System from Safe Methods in Business.......................398 J.L. Nichols Vignette: How to Do Business with a Bank from Safe Methods in Business...........399 J.L. Nichols The Tulipomania from Extraordinary Popular Delusions and the Madness of Crowds....................................................... 400 Charles Mackay Vignette: From Confusión de Confusiones...................................... 406 Joseph De La Vega Vignette: From The General Theory of Employment, Interest, and Money............. 407 John Maynard Keynes Prologue to the Investor s Problem from A Scientific Approach to Investment Management.................................................408 Dwight C. Rose Vignette: Boards of Trade and Stock Exchanges from Safe Methods in Business...... 419 VI MANAGEMENT.................................. 421 Introduction: The Art of Getting Things Done Through People.................. 421 The Analects............................................................... 425 Confucius An Employer s View of the Labor Question from The Gospel of Wealth............. 430 Andrew Carnegie From Letters from a Self-Made Merchant to His Son............................... 437 George Lorimer
7160329_CH00_FM_pi-x.pdf 7/5/07 10:31 AM Page ix ix Vignette: Business Energy from Safe Methods in Business........................ 441 The Condition of Efficiency from The Acquisitive Society......................... 442 R. H. Tawney Vignette: How to Do Business from Safe Methods in Business..................... 451 From Lady Chatterley s Lover................................................. 452 D. H. Lawrence The Human Side of Enterprise............................................... 456 Douglas M. McGregor The Principles of Scientific Management...................................... 463 Frederick Taylor Vignette: How To Apply for a Situation from Safe Methods in Business............ 471 VII PRODUCTION.................................. 473 Introduction: Take This Job and Love It...................................... 473 From The Travels of Marco Polo................................................477 Marco Polo Manufactures from The Works of Alexander Hamilton............................ 486 Alexander Hamilton Vignette: From Manufactures............................................... 493 Thomas Jefferson That Aristocracy May Be Engendered by Manufactures from Democracy in America.............................................................. 495 Alexis de Tocqueville The Book of the Machines from Erewhon...................................... 498 Samuel Butler From Alienated Labor....................................................... 506 Karl Marx From My Life and Work..................................................... 514 Henry Ford Economic Foothold from Women and the Trades................................. 521 Elizabeth Beardsley Butler Vignette: How to Estimate the of a Pile of Grain, Potatoes, Hay or Wood from Safe Methods in Business.............................................. 527 Vignette: Shirt............................................................ 528 Robert Pinsky Man and Machine from All Men Are Brothers.................................. 530 Mohandas Gandhi (1869 1948) Vignette: Business Maxims from Safe Methods in Business....................... 534
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