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March 24, 2009

Comments

Nezam

Thanks David Cameron, for responding to my points.

You said, Profit is Important. I agree, totally.

But I was thinking about the evolution of business yesterday. What I found interesting that,far at human history, Business was started with a need to dispose the excess production-when people was much more self sufficient. At that time, they found that, the transaction gave them some money beside disposing the excess goods. Profit was the secondary part at that time.

In second stage, The secondary motive of business, profit, became the focal point of business-which is now. What is the secondary motive of business today? I think doing good to society, that is CSR.

So, what is the third phase? I think, CSR will take over the profit motive. The connected world presents consumers instant access to information. So they can judge the company whether they are good citizen or bad. SO, some business will find it important to be socially motivated, which will ensure their survival, growth and sustainability.

This is just my hypothesis. Don't pay heed to these. Thanks.

asdf

fabulous post.

David Cameron

With all due respect to your view, Nezam, profit IS important.

Why? Two reasons come to mind.

One, while we can agree that socially responsible actions must be about more than profits, today's business world is all about making the business case for everything. We are ruled by profit and loss. Most corporations need to demonstrate a return to justify the reward of much needed capital from the financial community. Accountability is everywhere. We need to demonstrate value from every activity.

And two, sustainability. By demonstrating the return and reward from social initiatives, one can justify reinvestment.

Money is the HOW of business; but it's not the only WHY! So, yes, I can appreciate your point. But money is still the HOW and we must respect and work within that framework even as we build this notion of "conscious capitalism."

Nezam

First things first, Nice Write up!

Second thing is, Your view is very much profit motivated, highly mechanistic-my opinion. why?

in all of your first nine points, you talked about profitable growth, reducing cost, preemptive measure to be the first or improved in race,lagging behind competitors, boosting employee morale, new differentiation horizon, and finally customer loyalty. All of those points of motivation are only for one goal-Profit.

Why doesn't CEO think from some different view point?

you see, Business is the most viable organization after family in human history. sometimes it is proved more viable and stronger than family. Now a days, corporates are considered as "Legal Citizen". So, why they will not act as a human, or think as a human? Human acts both rationally and emotionally. Sometimes, corporate houses need to be irrational. Its for the sake of sustainability of earth, of mankind.

Its time for business to hold more responsibility than mankind. Because they did more loss to environment and affected the whole world more than any other entity.

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