In his book The General Theory of Employment, Interest and Money, economist John Maynard Keynes wrote that “practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist”. It could equally be argued that executives are often the unknowing slaves of some defunct philosopher. 

Take the lead story of a recent issue of The Economist, which is devoted to “the century’s biggest idea”: effective altruism, a rational, evidence-based approach to philanthropy, aimed at maximising its long-term impact. While touted as a relatively new concept, it derives from the 18th century philosophical doctrine of utilitarianism, which argues that the right ethical action is the one that produces the greatest happinessor well-being for the greatest number of people. Outcomes, not the content of our intentions, are the criteria for judging ethical decisions.

How is it that the “biggest idea” of the 21st century is born from a philosophical principle coined over 250 years ago? In times of profound change, revolutions – whether technological, economic, political, social or organisational – are ultimately driven by ideas. And upstream of those ideas lies philosophy. Does that mean executives need to be familiar with philosophy’s main arguments? Yes – but within reason. 

The pros and cons of overthinking 

In Plato’s Gorgias, one of philosophy’s founding texts, Callicles tells Socrates not to take philosophy too far or linger too long in the world of ideas, which he sees as dangerous in real life (of course, Socrates paid no heed and was executed for alleged impiety). The German philosopher Friedrich Nietzsche made a similar point about the dangers of fixating on wisdom: “Knowledge kills action; action requires a state in which we are veiled by illusion.” American psychologists Barry M. Staw and Sigal G. Barsade similarly argued that executives are better off being “happy and smart” than “wiser and sadder”. Those who think too much risk becoming paralysed by analysis – or what the French call, beautifully, piétinement sur place.

There are, however, good reasons for executives to acquire some philosophical knowledge. Philosophy addresses questions they may well confront in their working lives, such as: What is just? What is ethical? What is the relationship between means and ends? Who deserves to govern? What is the purpose of corporations, and should they be involved in politics? Should companies appoint AI agents as hierarchically superior to humans? 

What’s unique about philosophy isn’t its academic traditions but its practice: disciplined critical inquiry into questions for which there may be better or worse answers, but no definitive solution. Questions that neither science, evidence, myth nor religion can ever solve.

A reason for philosophy today 

Recently, a number of powerful tech entrepreneurs have become provocative disseminators of ideas with philosophical echoes. Peter Thiel (co-founder of PayPal and Palantir) lectures on the purpose of technology for the future of humankind and even, alas, on the perenially popular theme of the impending apocalypse. Marc Andreessen (co-founder of Netscape) has published a call to action with his essay The Techno-Optimist Manifesto, where the reactionaries are not the capitalists but those afraid of technologies. Elon Musk and Sam Altman – both co-founders of OpenAI – and Dario Amodei of Anthropic have also not been shy about disseminating their views on everything from technology to immigration. They do so because economic assets don’t guarantee sustainable power; only hegemonic ideas do.

Some of their political ideas can be traced back to Plato, who looked to answer the question “Who should govern?” by proposing a system led by “philosopher kings”. Some of today’s tech entrepreneurs align with Plato’s elitism, though with a twist: the best leaders are no longer idealistic and wise, but managers of algorithms. Effective altruism is their philanthropic philosophy.

Understanding the philosophical origins of ideas helps you stay independent of those looking to claim authority over you. It helps you decide what is fair, democratic and humane. Science has academics; religions have priests. Philosophy doesn’t respect any such authority. In an increasing polarised world, where forces try to capture your heart and mind on issues such as AI or democracy, the need to rationally question ideas is arguably a moral obligation.

There’s one further reason to engage in some philosophising – precisely because it isn’t easy. It is the disciplined practice of the most distinctive human trait: rationality at its most abstract level. Revealingly, research suggests that the powerful tend to think abstractly and strategically; the powerless get mired in detail. Philosophising can help you integrate your particular experiences into a set of broader principles that you can use when facing uncertain or ambiguous decisions.

Readings on some of the big questions

As Aristotle argued in the Nicomachean Ethics, we develop virtues through practice. To elevate your philosophising, here are a few accessible books addressing five recurrent questions faced by senior managers. Following Callicles’ and Nietzsche’s advice above about not spending too much time in philosophy, no recommendation is overly academic or long.

1. When do the ends justify the means?

Extreme situations bring differences in values into sharp contrast. In Adam Cohen’s Captain’s Dinner, four sailors in a small boat are lost at sea after a shipwreck. As their food and water run out, should one be sacrificed so the other three can live? Based on a true story, the tale illustrates the ongoing debate between the two major schools of ethics: utilitarianism vs. deontology. The latter holds that actions are judged right or wrong according to rules and duties, regardless of consequences.

2. How can leaders be both politically smart and ethical?

Baltasar Gracián’s The Art of Worldly Wisdom offers a checklist of short recommendations for doing well in an uncertain world – how to keep your reputation, retain freedom of action and judge others beyond appearances. It previously made the The New York Times’ best-seller list, not bad for a book which navigates between Aristotle and Machiavelli and is 380 years old. A good read to help avoid the dangers of cynicism and naivete.

3. How much should states be involved in social justice?

Any contemporary debate about equality must engage with the ideas of the late philosophy professor John Rawls. He wrote long and dense works, but Daniel Chandler’s Free and Equal offers a very good introduction to his ideas applied to contemporary social challenges. In particular, the book explores the role of the state in securing equality, freedom and justice, and how that must be balanced against the tax burden. 

4. Where do our values and ideologies come from?

“Management is philosophy in action”, states philosopher and management professor Santiago Iñiguez. In other words, managers’ behaviour is always guided by their philosophical assumptions – the question is whether they understand where those assumptions came from. Nietzsche’s On the Genealogy of Morality is a great provocation for reflecting on where your values, beliefs and behaviour come from, and who really profits from them.

5. How relevant is speaking the truth for building corporate cultures?

The title of this book – On Bullshit – might not suggest a particularly serious narrative or a relevant topic, but it is. Philosopher Harry Frankfurt encapsulates the importance of not letting shallow and pretentious talk dominate corporate cultures, and all in just over 70 pages.

Philosophers like to say they are useless, but they say this out of coquetry and to appear morally superior. The truth is that philosophising has value because it encourages us to think independently and rationally. It gives us the tools to think for ourselves. But it should not be excessive: philosophy can become counterproductive for those who need to get things done.