Corporate Sri Lanka: Going beyond profit?

Corporate greed, fraud and mismanagement bring a number of names to our minds, from Enron and Tyco to Galleon to Sakvithi and so on. A former New York Governor claims self regulation for companies doesn’t work. I am inclined to agree. Let us ponder.

The recent British Petroleum (BP) oil spill in the Mexican Gulf is still fresh in our minds. After arguments and counter-arguments and allegations after allegations, the White House report released recently implied cleansing BP of any blame and wrongdoing and/or irresponsible behaviour thereof.

Comical as it may sound, this was despite an estimated staggering loss of US$ 40 b, which has caused environmental destruction having a direct bearing to the climate. The destruction would last for decades to come and the paradox that it is not reversible.

Did you know that the wars fought in the name of ‘anti-terror’ by the USA during the past decade has cost an estimated US$ 4 trillion plus an irreplaceable 225,000 lives of both men and women lost (as per the Eisenhower Research Project of the Western Institute for International Studies of the Brown University, USA), apart from everything else material that has since been lost? Isn’t this pointing towards non-peace?

War is more profitable in the eyes of war-makers whose core business is nothing but making war in places that are susceptible and exploitable. Wars make for interesting conversation. For warring parties it is an important business strategy that sugar-coats and front-ends a global and social need of sorts, sweeping the real agenda under the carpet.

And back home, as some corporates make it to the ‘engine of growth’ bracket or even perhaps ‘exponential growth’ during this post war optimism, some remain, among them, happily, as cogs in the wheel. Do we call it business as usual?

Golden Key, Sakvithi and Hotel Developers Lanka PLC are some classic business cases which reflect not only on regulation related issues but erosion of societal responsibility by one time respected and sought after players. How could one expect such ill managed organisations to serve and protect their customers and employees and more importantly, treat them decently?

There are also businesses like the legendary MAS Holdings (consider their latest initiative ‘Trail’ to put up a paediatric cancer ward for the Jaffna Hospital) which make their prerogative so very clear to society. Without depending on the State, such corporates initiate action in those dark corners of the society where pressing needs persist. And they do so with a great deal of conviction. They know that everything else would follow. Profits, people, recognition, growth, sustainability and so on.

Responsibility

Whatever your position may be, taking responsibility for actions, at personal, corporate, national and international levels would surely stand you in very good stead. As citizenry, we bear a huge responsibility by the nation, no doubt. This responsibility is greater due to our benefiting through free education and a number of other things we enjoy that we call ‘free’.  Now is the time for reciprocity. Further, it is our ‘birth duty’ to return to society and the environment, and leave this planet ‘liveable’ for generations more to come.

Whatever engagement you are in, responsibility could be and must be fulfilled; for which the foundations of course must be laid in our homes the real training ground and critical formative years of a future corporate citizen.

Immortal leadership

Have you ever given thought to one distinct difference between Sri Lankan and Indian business leadership? India is known for its nationalistic obsessions. In relative terms, we can’t match it. Nationalist leaders of the likes of Mahatma Gandhi and Jawaharlal Nehru saw India ‘Indianised’ on many fronts. Their leadership thought and inspiration carries to date, several decades since their departure, and they continue to live in corporate India, as immortal and iconic leaders.

It’s clear to one and all, the run-up of events which made the world go through an economic rollercoaster during the past three years were caused primarily due to greed and double standards in corporate governance, transparency and compliance in America and other Western countries, whose disproportionate profit making, shareholder dividends and executive pay issues gave rise to market upheaval and much debate during recent turbulent times.

Take contemporary Indian business leaders like Ratan Tata (Tata Group), Lakshmi Mittal (Mittal Steel), Anil Ambani and Mukesh Ambani (Reliance Industries), Narayana Murthy (Infosys), Harindra Singh (Indian Concept Holdings), etc., who have revolutionised the world of business and shaped the social fabric, not only in India but globally. Enjoying living legend statuses, they provide giant iconic inspiration, not only in India but the world over.

Balance

A good majority of the recently researched Indian corporate leaders’ priority is not profit maximisation, but social upliftment – a noble social purpose. Profit is important, well and true. We agree; there is the social upliftment that goes even much beyond profit.

As per recent Wharton University, Pennsylvania, USA research, improving healthcare in India, providing cell phones to Indians to improve communication and providing to the international community in terms of IT are among some social priorities highlighted by a good 98% of India’s top 150 businesses researched.

Indicators of today’s corporate performance are multi-fold. Well, Dr. Robert Kaplan and Dr. David Norton shared this concept when they introduced the widely spoken and applied balanced scorecard model, in which customer, processes, people and financial, all which play a balanced role towards making the corporate vision a reality, are measured.

That said, does corporate Sri Lanka actually balance its corporate behaviour today? Can it possibly see beyond bottom-lines and profit and loss statements? I mean, beyond a balanced scorecard? A balanced perspective?

Sustainability is responsibility

So, why go beyond balanced scorecard, when we can stick to the minimum requirements only? Well, putting it matter-of-factly, minimum requirements are not good enough anymore. Not good enough for our tomorrows. They may only sustain us temporarily, not even in the short term. Long term sustainability now lies in a great deal of ‘responsibility’; responsibility that surpasses myopic business boundaries.

In stark contrast, an Indian court in Delhi recently fining and holding ICICI Bank, India’s largest private sector bank, guilty for seeking litigation on false pretext, delivered the following ruling: “The larger the size of an organisation or institution, the greater the sense of responsibility expected from it.”

A responsible corporate citizen would deliver not only on corporate governance and transparency, but societal responsibility, with the former two falling in to the category of ‘minimum requirements’ in business.

With responsibility manifesting itself in to an entirely different paradigm today, it’s time we pay serious attention to how our actions must now be put through change.

The primary corporate social environment being made up of employees, followed by the populations, both local and global; responsibility by and large means, considering ‘humanity’.

Human beings are vulnerable. So is business. Whilst we are supposed to keep things stable, everything changes, everything, both in the micro and macro environments, including climate, best practices, demographics, competencies and so on. Businesses that consider the change at least at the point of occurrence of change are better placed and more successful. Don’t we have enough contemporary business results to validate this claim?

Purpose

The social purpose, a sheer commitment to mankind alone, enables business to sustain. When such responsibility is the core, it pervades everything you do, both on-the-job and off-the-job behaviours. Simply watching profit won’t be necessary, as profit will surely follow good business.

Take for instance the extreme climate changes from El Nino to La Nina that is ravaging nations. Who is responsible for such adversity? Aren’t we convinced enough to think it’s us ‘inhabitants’ who make earth our home who are to be blamed? Did we make headway in the climate summits? No. And why do you think things turned out to be the way they did? Why did global leaders fail to arrive at a compromise? The answer points towards ‘business,’ commercial interests and irresponsible behaviours.

It was chiefly due to vested interests that a majority of world powers had in protecting so called ‘big brands,’ putting it differently, their engines of growth. Action in the form of directives and standards would have meant direct impact on these businesses. But at what cost to protect the earth we all share? Most of these guys are the biggest culprits of climate change. Brazil and America are the worst environment polluters on earth!

Realising your purpose, the ‘why’ of your corporate existence would individually and collectively make our world a much better place for all living beings. Imagine the benefits. There is no better time for us Sri Lankans than development times like now, for such reality.

Eminent corporate and social leadership in the likes of the late Prof. Anton Jayasuriya (free alternative medical treatment to patients), late Sir Cyril de Zoysa (industrialist who gave for spiritual and social upliftment), Dr. A.T. Ariyaratne (Sarvodaya movement for social upliftment and community leadership), Dr. P.N. Kiriwandeniya (SANASA movement – micro finance for social upliftment) and M.D. Gunasena (making the nation learn) are some legendary Sri Lankan entrepreneurial giants who redefined our business landscape. These selfless human beings with compelling convictions had social purpose as a business philosophy. They have created a cult-like following today.

Our actions, whatever they are, impact society, the macro and micro environments, in other words. Therefore it is needless to state the importance they demand from the corporate world in particular towards balancing the act. Our actions and their impact must have a balance. Profit would happen, if we make the social upliftment responsibility a reality.

Dr. A.T. Ariyaratne once said: “The spiritual foundation of the Sarvodaya, its closeness to the day-to-day life of the people, its highly decentralised and village-based nature, its non-partisanship in party political struggles and its active involvement in bringing relief and rehabilitation to victims of natural or manmade calamities; these are some of the other factors that have contributed to its survival and progress.”

Genuine giving has no agendas. Nothing expected in return. It is the playing of our role, as stated earlier on; it’s our responsibility – our calling.

Choice

Can you imagine the potential increase in business as a result? Why? Simply, customers would favour products and services which have a larger purpose than a mere peripheral organisational boundary that is amassing wealth through mere profit maximisation.

Same goes with other stakeholders. Make pressing global issues your noble social purpose. Pick your choice/s out of issues like poverty, hunger, corruption, child mortality, ageing workforce, child labour, unemployment, deteriorating health care, cultural erosion, terrorism, climate change, pollution and population issues.

Don’t forget they impact your business and the way you do business. They impact you. Do your bit and give your best. Define and deliver on your social purpose. Society needs you today, more than ever before.

Be a ‘corporate cockroach’ that has evolved and survived through millions of years, than a dinosaur that has embraced extinction. This is summed up in Mahatma Gandhi’s quote: “When I despair, I remember that all through history the way of truth and love has always won. There have been tyrants and murderers and for a time they seem invincible, but in the end, they always fall, think of it, always”.

(The writer is a Business Consultant, HR Specialist, Corporate Trainer/Lecturer and Director/Chief Executive Officer of Target Resource. She can be reached at [email protected] or [email protected].)