There are lots of answers with a variety of arguments. My answer is “yes and no.” As others have noted, businesses and governments operate with different foundations and contexts. And governments do compete against other governments like private sector companies. For me the core issue has to do with integrity and efficiency.
There are honest people in both sectors and there are efficient people in both sectors AND there are crooks and spendthrifts in both sectors. For me it comes down to VABEs. I had a client once whose top management was discussing whether or not “truth telling” was a viable strategy. The debate got so heated that one VP stood up on his chair and was shouting at his colleagues across the room. The argument was on one side “if you tell the truth, people will take advantage of you” and the counter-argument was “if you don’t tell the truth, people won’t trust you.” I favor the transparency, truth-telling side of the argument. (Thank you Rich Teerlink former CEO of Harley-Davidson).
Then there’s the issue of compartmentalized integrity. During the Clinton-Lewinsky scandal, I was having dinner with a CEO in another country. I noted that Steve Covey my instructor in business school had taught that if a man would cheat on his wife, he’d cheat in business. My host declared, “Well, that’s not true. I know all the CEOs in (city name) and they all have mistresses and I’d trust them in a business deal any day.” Wow. VABE abrasion! Again, I personally favor the integrity in all facets of life. If you want a mistress, and your wife approves, then okay. Again, VABEs.
Another issue for me stems from my concept of a “charter.” A charter has six components: clarity of purpose, clarity of vision, clarity of VABEs, clarity of strategies to reach the visions, short-term measures to track progress, and SOMEONE who will make those decisions. If no one does, the people in the organization work in confusion and often at cross-purposes. See examples on my website at Level Three Leadership . For one, British Aerospace US had a mission statement that was concise, powerful and inspiring: “We protect those who protect us.” ANYONE in that organization could relate to and be inspired by that very clear mission statement.
What is the purpose of a nation? I think if the president/premiers of a nation as much as the CEO of any company who cannot declare a simple one sentence mission statement is negligent. IMO the purpose for example of the USA is “to model a vibrant democracy.” The Founding Fathers knew this was a new system. What is the purpose of France? Russia? North Korea?
Which brings to me my last point here: there are net extractors and net contributors in the world. Many people in both sectors are net extractors—they are out to take as much from the system/society as they can. They have little care for the Commons (air, water, soil, flora, fauna, and the underprivileged) and make decisions to take as much as they can from the world around them. Some call this capitalism. I say that VABEs, “to make as much money as I/we can” is a perversion of capitalism and democracy. Sustainable profits would be those that protected not abused the Commons. Many politicians are net extractors. They suck their countries dry.
Some politicians and business people are net contributors. They give more than they take. One businessman in the Midwest sold his freeway construction company for $200mm. Then he gave each of his 100 employees $1 million EACH! When asked why in the world he would do that, he noted that a) they did all the work and b) he still had $100 million, what did he need with more? He’s a net contributor and very successful and an enlightened capitalist.
SO, I believe (my VABE) that managers/executives/authoritors in both sectors should a) have clear Charters, b) behave a personal and professional models of complete honesty and resource efficiency (no waste), and c) be net contributors to the world around them and not net extractors. Leave you campsite cleaner than you found it—something I learned in the Boy Scouts.
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