You are listening to a Bill Bennett podcast special feature. It's a conversation with Charles

Koch. He is the chairman and CEO of Koch Industries.

This is part two of an eight-part series where we dive deep into the virtuous cycle, that's what Charles calls it,

and the virtuous cycle's potential to impact society positively in four different areas,

education, community, business, and government.

Last week we spoke about Charles Koch's intellectual journey from good profit to the virtuous cycle.

Let's pick up with Charles now, explaining how three facets of education as he sees it applied

to his early efforts in business.

So I learned by integrating theory and practice, but it was, a lot of it was prompted by principles I was learning

principles of science of economics philosophy psychology

wow we are how do we apply that?

So set up experiments.

So, and then understanding how markets work,

that is voluntary markets that transactions come about because both people

believe that the transaction will benefit them.

So that to me, okay, and I know that every company that's successful that doesn't

does it because of government mandates, regulations or subsidies, that's what they have to do.

But some of it do it inadvertently.

And so I said, no, we're going to do it intentionally.

We are going to understand what our customers value and in depth.

The people we're dealing with the company overall, and if we think it isn't in their long-term interest we'll try to solve them they need to do it a different way.

And so that's the starting point.

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