I had four accounting and finance classes with the head of the MBA program here at Cambridge. I found it truly interesting. Accounting is such a limited yet powerful tool. After the classes had finished, I sent an email to the lecturer, pouring forth all the questions I had wanted to ask in class.

Why does a company exist to increase value for shareholders? What is the function of a high share price? (To ‘do better’ than the cost of capital, to prevent takeovers…) Does it matter to a company’s day-to-day operation if the share price falls? (I suppose the share price should reflect operation rather than the other way around.) What would happen if a company’s first allegience was to its employees? When wages are an operating cost, is there shareholder pressure to reduce them? Is there some way to modify the accounting system to reflect social costs? (But these are difficult to price and are not levelled against the company.) Perhaps it would be more workable/sustainable for the government to internalise such costs so that they show up in the balance sheet as part of a company’s normal operations. To what extent is a company’s behaviour shaped by its balance sheet and accounting practices?

I felt like I just had to get the questions out but at the end of the email, I backed away and said the equivalent of, ‘You don’t need to answer these questions. This is just me thinking.’

Against all reasonable expectations, the lecturer replied. ‘Joan. These are all very good questions. I would be happy to discuss at some point if you would like.’

Do you know how excited I was? I was very excited — in an absolute flap, really. Why? I would have access to someone who knew the world’s financial systems, someone who I believed didn’t have a left or right wing agenda, someone who would listen to me and answer my questions. I’ve been looking for an opportunity like this since reading The Divine Right of Capital.

I met the lecturer yesterday and we chatted for half an hour or so. He answered all the questions I had in my email, and more. I’m still processing some of what we talked about.

He must be a very busy person. He didn’t have to speak to me: I’m not in his course, the discussion was essentially recreational, I gave him an easy way out in my email. Yet, he did and in no way made me feel like he was doing me a favour. I’ve met people less important than him and far less generous with their time.

Such graciousness is something to aim for.