Tejas SuraManaging Director| Cubic Turnkey Private LimitedMumbai, Maharashtra, India
The purpose is extremely important for an organisation and a purpose that seeks to do good for the world is extremely powerful. Many organisations are aiming at doing social good and embracing sustainability while carrying out business. Can the positive actions of these companies bring about an effect at a large scale apart from their supply chain, customers and stakeholders? Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Tejas,
regarding the 'individual limiting his options' I think it is permanent. Once you use a capability for a bad purpose, you lost your identity. Agree, you do it consciously in the beginning, and build habits over time, thus become authentic. Still you will get into situations where you face a dilemma and you have to be aware of your ethical values to make the right decision. So the limitation imposed by your ethical values never ends.
Was not aware about David Ehrenfeld, thanks for sharing. Reading about him now, I actually share two of his views: - learn swimming (you know my motto is Panta Rhei) - become a good ancestor (I heard this from a Maori Board director last year and it touched me). Similar, to become an ethical person, you need to set your goals as eulogy virtues, not CV virtues. (HBR article Jan 2020, Kouchaki/Smith).
Ehrenfeld certainly has an ethical mindset.
Yes, there are companies doing good, but also some just as a lip service. Structurally, as long as IoD and others promote the role of a Board as being accountable to shareholders, and these are spread over the stock market, sustainability will not prevail. If you bankrupt, the first ones getting assets are the banks, not nature or society. We are lucky to have companies owned by individuals or families as long as those have a common ethical purpose in mind. But they can change their mind anytime. This model is not sustainable in itself. We need a reform of governance and economy. David Graeber has a book on that, Debt.
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1 reply by Tejas Sura
May 15, 2020 11:56 AM
Tejas Sura
...
Thomas,
Thanks for your response. I agree with you regarding the role of associations like IoD.
I want to share a quote with you:
John Coates, Harvard Law School (topic: is it legal to adopt a purpose?): While directors have a duty to avoid actions that will certainly harm the corporation, they do not have a legal duty to maximize shareholder value, except in a few tightly-defined circumstances.
I will refer to the book "Debt".
Saving Changes...
Tejas SuraManaging Director| Cubic Turnkey Private LimitedMumbai, Maharashtra, India
May 10, 2020 1:45 PM
Replying to Thomas Walenta
...
Tejas,
regarding the 'individual limiting his options' I think it is permanent. Once you use a capability for a bad purpose, you lost your identity. Agree, you do it consciously in the beginning, and build habits over time, thus become authentic. Still you will get into situations where you face a dilemma and you have to be aware of your ethical values to make the right decision. So the limitation imposed by your ethical values never ends.
Was not aware about David Ehrenfeld, thanks for sharing. Reading about him now, I actually share two of his views: - learn swimming (you know my motto is Panta Rhei) - become a good ancestor (I heard this from a Maori Board director last year and it touched me). Similar, to become an ethical person, you need to set your goals as eulogy virtues, not CV virtues. (HBR article Jan 2020, Kouchaki/Smith).
Ehrenfeld certainly has an ethical mindset.
Yes, there are companies doing good, but also some just as a lip service. Structurally, as long as IoD and others promote the role of a Board as being accountable to shareholders, and these are spread over the stock market, sustainability will not prevail. If you bankrupt, the first ones getting assets are the banks, not nature or society. We are lucky to have companies owned by individuals or families as long as those have a common ethical purpose in mind. But they can change their mind anytime. This model is not sustainable in itself. We need a reform of governance and economy. David Graeber has a book on that, Debt.
Thomas,
Thanks for your response. I agree with you regarding the role of associations like IoD.
I want to share a quote with you:
John Coates, Harvard Law School (topic: is it legal to adopt a purpose?): While directors have a duty to avoid actions that will certainly harm the corporation, they do not have a legal duty to maximize shareholder value, except in a few tightly-defined circumstances.
I will refer to the book "Debt". Saving Changes...
