Corporate Governance is, to me, the art of running and managing an organization in a human and environmentally-friendly way while effectively pursuing a sole purpose: maximizing society's benefit. For that to happen, we have to understand organizations in the big picture, as a group of individuals gathering together to provide a good and necessary service to humanity and the world for that matter.
During the last century and a half or so, in the reign of our current (but soon-to-be-replaced) socio-economic model -the so-called capitalism-, a few privileged individuals have amassed fortunes and wasted mountains of resources via a simple but greedy mechanism: running corporations and businesses with one and only one goal in mind: their own, self-benefit (“selfish good-governance” we could call it) above anything else; completely forgetting about their fellows (without which they couldn't survive) and the finiteness and fragility of the world they happen to live in. As a result, the gap between the rich and the poor is today as large as it has ever been with 80 % of the world's resources lying in the hands of 20% of its people, among which I am to be found, to my own shame (although I've got big plans to change that). Moreover, this unfair system has led us to, on the one hand, increasing scarcity of non-renewable resources and, on the other, vasts amounts of inhabitable lands for our successors to inherit. This is reality. A reality that screams for change.
However, as somebody once said, it's too late to be a pessimist. It's time for change, big time. We've got to put people back at the center of our world. We've got to do things for and by the people. We've got to remember that companies, organizations, countries, governments and the likes are just virtual concepts in the minds of men, that the only thing that really exists and matters is human beings. All those other entities they can only be understood as what they actually are: a bunch of individuals joining forces for a common cause, a cause bigger than all of them and each one of them, a cause that sees everybody on the surface of this planet as equal and puts our own generation in the perspective of the future ones -our kids- to whom the world really belongs to. In this sense, those organizations have to be managed in a way that promotes and gives maximum priority to: freedom (of expression, of thought, etc.), equality, the treatment of people as people, respect for everybody and for future generations, etc.
In my own personal view, the concept of a company encompasses not only its social purpose (social business), but also the lack of imposed hierarchies strangling worker's freedoms, the lack of superiors and inferiors, the lack of bosses and secretaries, the lack of stringent schedules (I don't believe in staying eight or more hours straight in the office just because), etc. On the contrary, I do believe in natural leaders, teamwork, giving everybody a chance, leading from behind (stepping up when you feel like you've got something to say or do and stepping back when you don't and others claim their turn on stage) and by example (if you want others to do something, do it yourself in the first place as the only means to gain the legitimacy and credibility that characterizes real leaders, the inspirational ones). I do believe in the blurring of the frontier between personal and professional life, in the need to integrate both sides of the same coin and align our organization's values with our owns, cause how could it be otherwise? What are we here for if not for the others? Yes, I do believe in flexible schedules, in letting people organize themselves with their colleagues and collaborators. Yes, I do believe in fair salaries (both internally and regarding the outside world), determined through consensus and common sense, and subject to variability when needed. Because we cannot treat people as machines as we will be underestimating them, not giving them the required space to reach their full potential. Because the future lies in the minds and hearts of men (and especially women, the so-long forgotten actor of development) and not in the hands of machines.
It's too late to be a pessimist. It's too late to wait for the so-called leaders of our world to provide and impose solutions from the top down. It's time for people-born, bottom-up, grassroots movements to organize and gather our rainbow warriors together once again to heal our mother Earth and find peace and harmony among us and with her. Businesses are part of the equation, an integral one, no question about that. But the only thing that has and will ever change our world are individuals, one by one, all together, together as one. And in this, the largest revolution our species has ever witnessed, our individual, humble contributions are the only real tool in our hands. Cause there lie the principles of good governance: in our shared responsibility. Cause there lie our very own principles: in our common destiny, in our social nature. And it is just through the understanding and internalization of these concepts that the essence of humanity will prevail, that the flame of our hope will carry on. But hope there is, my friend, and hope there will be as long love fills our spirits ;-)
“The world is not what we see but what we imagine”
“Reality is not what it is but what we make of it”
j.
Why corporations cannot achieve both objectives? maximizing society's benefit and maximizing their own benefit, as you say corporations are a group of individuals gathering together to provide a good and necessary service to humanity, so the best the service they provide the most benefit they will get in the long-term. Capitalism is here to stay, sorry Jesus, the solution is the: HUMAN CAPITALISM
ReplyDeleteHey there, my anonymous friend! First of all, I'd like to thank you for your well thought comment. I'm sure it comes from a knowledgeable person. Then, with respect to our "disagreement”, if any, I truly think it's more a question of language use than anything. Let me explain myself, starting up by what we differ on. Apparently, as you see it, society's benefit and the company's benefit are two separate matters when, in reality, they should not be so. If we understand a company in the context it operates in -this planet's society-, these two entities' goals can only be aligned as one -the company- is an inseparable part of the whole -society-. The problem arises, as we have witnessed, when this global perspective is compromised for the benefit of a few (whom we used to call the “company's owners”) and in the short term. If we are to be sustainable as a species, the two fundamental principles required are the following:
ReplyDelete-First, equality of ALL human beings (intragenerational sustainability): if we consider ourselves as equal in essence (human rights) then, by no means, can a reduced amount of individuals take advantage of the rest for their own and only benefit. It indeed has to happen the other way around: society has to benefit from the hard work and brilliance of its members, because, quite simply, we depend on each another (The Earth ecosystem) to survive.
-And second, if we are to perpetuate ourselves in time (at least for a little while in the universe's scale of times), then we are obliged to think further than our lifetimes (intergenerational sustainability): and here comes the concept of the “long run”, as you very well mention, or our duty to search for ours as well as future's generations common good.
In brief, capitalism without a last name, is doomed to disappear soon (and we are already on its winter) as it cannot sustain itself due to a very simple flaw among its assumptions: the physical environment we have at our disposal is limited (finite planet) and it doesn't renew itself at the pace we are currently demanding of it. And, on the other hand, I'll give you a “yes” to human capitalism, both words intrinsically bond emphasizing the one and only capital we have in our hands: the human one. Because the financial capital is just virtual (and the more we separate it from the real, physical world the deeper the hole -”financial crisis”- we are digging ourselves into) and the nature capital can only be properly taken care of with the right knowledge, knowledge being a defined as the accumulated pile of models, experiences and relations that characterize the human nature. In this sense, the real owners of a company are nothing but interpreters, a set of smart individuals eager to listen to their peers' and planet's needs and through their managerial and relational skills find the best solution (the most adequate service) to all and for the long run. For so doing, there must be a shift in focus: moving ownership rights from the few (founders) to the all (society) and target's scope from the quick (short term) to the slow (long term).
What we are is what we have, my friend, humans.
Jesus, I totally agree with our anonymous friend. As in the XIV century the society evolved, the humanism appeared shifting its focus to the human being, now the capitalism has to evolve. Capitalism is the less worst system we know, remember that thanks to the capitalism a few lucky people in this world have achieved a quality of live never imagined before. It is time for the capitalism to mature and evolve to a capitalism focused in the human being: HUMAN CAPITALISM
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