Skip to main content

Reversing the Tide of CSR- From Followers (Employees) to the Preacher(Owner)!

“We reveal ourselves in metaphors we choose. A superior would think of what is right, whereas an inferior thinks only of what is profitable"

In the most famous passages in Wealth of Nation, Adam Smith declares,

“It is not the benevolence of the butcher, brewer or the baker that we expect our dinner, but from regard to their own self-interest. We address ourselves not to their humanity but to their self-love and never talk to them of our own necessities but of their advantages”

This is often quoted in defense of self-interest. But what is missed is obvious. The self-interest of the butcher, the brewer and the baker is served only because they do indeed pay attention to our necessities, as well as to their own reputations of quality and fairness which is essential for the business they do so. It is precisely because they rise above their interest of others that make success. What they ultimately “sell” is their own Integrity.
The old quasi argument still persists-

o   Whether multinational organizations in general best serve humanity
o   Whether responsibility can be expected from these organizations
o   Whether multinational organizations have conscience

But in 20th Century all of this is merely academic. The question prevalent today is

“How the virtues and integrity of people who make up organizations can be implemented in those organizations to develop a culture of CSR?"

Thinking of the term “profit” and “making money” devoid a larger sense of obligation, responsibility and ethics. Indeed such crude self-interested thinking has never and will never make any organisation culture “great”. Even a casual observation of goodwill and genuine amiability of most business people tell us something important about business world. When business is cut- off from the rest of human enterprise it is said; 

“Business is business” but the reality is “Business is not just Business”. It is an essential part of human life and community.There are many ways in which the organisation can be virtuous and many ways in which it can be ethical. But the virtuous style is the “correct” view of ethics itself is a misunderstanding of ethics of virtue.

 Corporate Social Responsibility is concerned with treating the stakeholders of the organisation in an ethical way. If the top management is ethical the values percolate within the organisation and flow in the culture of the organization (as blood in body). It 's not about preaching to practice CSR , being ethical but to actually start believing and following meticulously. After all as, Tom Peters write,

“In the end it’s up to each of us and each of us alone to figure out who we are and who we are not and to act more or less consistently on conclusions”




Comments

Popular posts from this blog

Principles of CSR

Because of the uncertainty surrounding the nature of CSR activity, it is difficult to define CSR and to be certain about any such activity. There are three basic principles which together comprise all CSR activity. 1.Sustainability: If the resources are utilized in the present, then they are no longer available for use in the future. This is particularly pertaining to those resources which are finite in nature. Measures of sustainability would consider the rate at which resources are consumed by the organization in relation to the rate at which the resources could be generated. 2.Accountability: Accountability is concerned with the organizations realization that its action affects the external environment therefore assuming responsibility for the effects of its actions. It implies that the organization is a part of wider societal network and has responsibilities to the entire network rather than just to the owners of the organization. 3. Transparency It means that the external impact o

HR: A Strategic Asset

Strategic assets are “the set of difficult to trade and imitate, scarce, appropriable, and specialized resources and capabilities that bestow the firm’s competitive advantage”. It is easy to understand why organizations talk about people as an asset, but tend to manage them largely as a cost to be minimized. Aside from accounting principles that encourage this perspective, HR costs are easy to observe, while HR value creation is not. Largely because of the traditional perspective on HR, organizations have no way to measure HR’s strategic performance. Nevertheless, we know that intangibles in the aggregate are an increasingly important source of firm value, and that human capital ought to be a part of that asset value. HR is a strategic asset as it can play a critical role in both strategy implementation and management systems. Namely, the ability to execute strategy well is a source of competitive advantage, and “people” are the lynchpin of effective strategy execution. We think i

Followership

“It is often said Today’s effective followers are tomorrow’s potential leaders” There are effective followers and ineffective followers Sheep There are people who are passive and like to work from 9-6. They think they work for living and lack initiative. They expect their leader to think for them. Most probably they may say, “Sir, whatever you think good for me”. They are also “Yes Sir”, “No Sir” type. Survivors There are some people whose motto is “better to be safe than sorry”. They do not take risk, tend to be political. They do not lead change but want to survive across it all costs. They are not someone who would rock the boat. You will find plenty of such people in Govt. offices.  Followership Model Alienated Followers They are capable yet cynical people. They come across as negative people. They generate and emit lot of negative thoughts and energy. They are seen gossiping in the corridor and criticizing their organisation and management. You will hear comment such a