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Posts Tagged ‘Profits’

Here are some key ideas which emerged at a National Seminar on Industrial Safety, Health and Environment organized by the Regional Labour Institute, Chennai and the Madras Management Association recently at Pondicherry in India.  

  • Businesses today face three kinds of challenges:
  1. Increasing digitization and the spread of internet which is fundamentally changing the way a    business interacts with its customers and suppliers.
  2.  As the world’s economic power and consumption of goods and services gradually shifts from the developed world to Asia, a host of new business opportunities present themselves.
  3. A value-based culture which takes into account socio-economic realities is becoming increasingly necessary to succeed in business. Businesses have the choice of being proactive while shaping future policies and goals. In the long run, this would avoid their facing pressure from either the community, or the government or the society at large. DSC_4999
  • Growth in business has to be consistent, competitive and profitable. A business also has to be socially relevant. A renewed emphasis on S-H-E alone can achieve this.
  • Following the tenets of S-H-E is not only about companies creating a separate Department to drive these goals. It is also about better regulatory compliance. It is also about calculating the carbon foot print. It is also about a change of attitude. It is about putting people and planet alongside the drive for profits. DSC_5025
  • Unless companies imbibe a culture which encourages all managers and executives to work together to achieve their goals by adopting sustainable methods, continuous growth may be difficult to achieve. Ensuring safety of all concerned is an important responsibility of the business. Many business leaders realize that a healthy employee contributes better. Work-life balance needs to be taken care in such a way that the employees are always happy as well as healthy. Businesses also need to ensure that they give back to Mother Earth more than what they draw from it. taking care of environment is an important issue which facilitates sustained growth.DSC_5109
  • All over the world, businesses are gearing up to ensure that their operations take place on a sustainable basis. There are already companies which have started reporting Environmental P&L Accounts.
  • In India, the government is now talking of shifting subsidies from chemical fertilizers to organic fertilizers. MNCs like BASF are talking about Product Stewardship, meaning compliance right through the entire supply chain to its end-use customers. DSC_5124
  • According to a recent study done by KPMG, India has emerged as a leader in the field of sustainability reporting. In the Asia-Pacific region, India has recorded the highest growth in sustainability reporting since 2011 – 53%. Chile is the next, with 46% increase, followed by Singapore (+37%), Australia (+25%), Taiwan (+19%) and China (+16%).
  • The safety of an employee should also cover the duration he or she is not on duty. The concept needs to be extended to the life outside, at home, on the road – practically in all spheres of life. DSC_5158
  • When companies think of a SHE culture, they should not ignore the safety and health of their women employees in a much wider context. They need to feel empowered to report misbehavior of any kind. At the work place, the need is to treat them with dignity and respect. As part of a progressive society, males need to examine their attitudes towards women at home and in public spaces.

The day-long seminar was attended by over 200 participants who benefited from the expertise of several subject experts and thought leaders from the field. It was inaugurated by the Lt Governor of Pondicherry.  

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Businesses all over the world chase profits, and rightly so. However, when they do so at the cost of the planet we depend upon or by usurping the legitimate rights of communities they operate in, there is a cause for concern.

All professionals who care for probity in corporate lives, stand for sustainable living and detest relentless pursuit of profits would heartily welcome the recent initiative taken by some of our far-sighted business and community leaders. These leaders have pledged themselves to work on an alternate paradigm for business which puts people and planet alongside profits.

Planet, People and Profits

Known as The B Team, the initiative is a global nonprofit venture co-founded by Sir Richard Branson, and Jochen Zeitz in October 2012. It brings together international activists and business leaders to “make business work better”. The “B” in The B Team represents the need for a “Plan B” for Business. By implication, “Plan A” is the current framework in which corporates are driven by commercial greed alone.

Branson has stated that business has had many positive impacts on the world but needs to move away from a focus on immediate profit to one where it invests and operates for the long-term good of people and the planet. The B Team intends to achieve this vision by dividing an Agenda into Challenges, which will be acted upon and implemented by B Leaders in their own organizations.

Upon its formation, the group assembled a collection of young influencers and gathered feedback on where and how The B Team could have the most impact and pinpoint the roadblocks that prevent businesses from contributing to the greater good.

The B Leaders

On June 13th, 2013, at an event in London, the full list of sixteen B Leaders was announced:

  • Sir Richard Branson, Founder and Chairman of Virgin Group comprising around 400 of its business entities, and Co Chair of The B Team.
  • Jochen Zeitz, Director of Kering and Chairman of its board’s Sustainable Development Committee; Co-Chair, The B Team. He has worked on the first-ever environmental profit and loss (EP&L) for Puma.
  • Dr. Gro Harlem Brundtland is an international leader in sustainable development and public health. Under her leadership, the Brundtland Commission had defined the word ‘sustainable development’ in the 1980s. She served three terms as Prime Minister of Norway (1981, 1986–89, 1990–96), and has served as the Director General of WHO. She now serves as a Special Envoy on Climate Change for the UN Secretary General Ban Ki-moon.
  • Shari Arison, the owner of the Arison Group, is an America-born Israeli businesswoman and philanthropist and is one of Israel’s wealthiest women. She is the owner of several business companies, the largest among them being Bank Hapoalim. She also manages several philanthropic organizations which are subsidiaries of The Ted Arison Family Foundation.
  • Kathy Bushkin Calvin is President and CEO, United Nations Foundation. She joined the Foundation in 2003, following a diverse career in politics, journalism, public relations and business.
  • Arianna Huffington, Chair, President & Editor In Chief, The Huffington Post Media Group, is a Greek-American author and syndicated columnist. She is best known for her news website The Huffington Post.
  • Dr. Mohamed “Mo” Ibrahim is a Sudanese-British mobile communications entrepreneur and billionaire. He worked for several other telecommunications companies before founding Celtel. After selling Celtel in 2005 for $3.4 billion, he set up the Mo Ibrahim Foundation to encourage better governance in Africa. He also created the Mo Ibrahim Index, to evaluate nations’ performance.
  • Guilherme Peirão Leal is a Brazilian billionaire entrepreneur. He is the co-chairman of the Board of Directors of, and owns a 25% stake in, Natura, Brazil’s leading manufacturer and marketer of skin care, solar filters, cosmetics, perfumes and hair care products.
  • Strive Masiyiwa is the founder and chairman, of global telecommunications group, Econet Wireless. He currently serves on a number of international boards including the Rockefeller Foundation, the Advisory Board of the Counsel on Foreign Relations, the Africa Progress Panel, AGRA, the UN Sec General’s Advisory Boards for Sustainable Energy, and for Education.
  • Dr.  Ngozi Okonjo-Iweala is a globally renowned Nigerian economist best known for her two terms as Finance Minister of Nigeria and for her work at the World Bank, including several years as one of its Managing Directors (October 2007–July 2011).
  • François-Henri Pinault, is a French business person and the CEO of Kering. He is the son of the company’s founder, businessman Francois Pinault. Often nicknamed ‘FHP’, he is also Director of Financière Pinault, as well as the President of Artémis’ executive board.
  • Paulus Gerardus Josephus Maria Polman is the CEO of the multinational Anglo-Dutch food and detergent company Unilever. He is committed to transforming Unilever, its customers as well as supply chain partners, into strict followers of sustainability.
  • Mary Therese Winifred Robinson served as the seventh and the first female President of Ireland from 1990 to 1997 and as the UN Commissioner for Human Rights from 1997 to 2002. Robinson returned to live in Ireland at the end of 2010, and has set up The Mary Robinson Foundation – Climate Justice, which aims to be ‘a centre for thought leadership, education and advocacy on the struggle to secure global justice for those many victims of climate change who are usually forgotten – the poor, the disempowered and the marginalized across the world.’
  • Ratan Tata, KBE, an Indian business person of the Tata Group, a Mumbai-based salt to software conglomerate. He was the Chairman of the group from 1991-2012. Since 2012 he holds the position of Chairman Emeritus of the group which is an honorary and advisory position. The Tata Group and its companies & enterprises are perceived to represent India’s best-known global brand within and outside the country as per an ASSOCHAM survey.
  • Zhang Yue, Chairman and Founder, Broad Group of China, which is one of the few Chinese manufacturing companies that has been widely recognized for its green policies and commitment to countering climate change.
  • Professor Muhammad Yunus is a Bangladeshi banker, economist and Nobel Peace Prize recipient. As a professor of economics, he developed the concepts of micro-credit and micro-finance. These loans are given to entrepreneurs too poor to qualify for traditional bank loans.

Team B therefore draws upon a wide array of skills, whether from business or from social activism side. There is a geographical diversification in the choices made, thereby bringing on board a broad spectrum of regional perspectives.

Challenges Aplenty

All the members want to first start practicing before they start preaching. In other words, they intend to start making changes at their own organizations first and then start motivating others to follow suit.

In an interview on the website of B Team, Ratan Tata touches upon the need to curb corruption in the corporate world. He also points out that 66% of the stake in Tata Sons, the holding company of the group, is held by Tata trusts which eventually plough the earnings back into charity. There is increasing realization within the group that the trusts’ activities should now spread globally, no longer restricted to India alone.

In the days to come, one would watch with considerable interest the way things shape up for the Team B. One hopes that fostering of values at the work place would be taken up as a serious challenge, as would be the task of developing future leaders driven by a strong moral compass.

Green Shoots of Cleaner Businesses

In a dismal scenario where not a week passes without us hearing of some corporate scam or other and where the memory of Lehman Brothers is still fresh in our minds, some recent initiatives sound like green shoots which have the potential of changing the business scenario by modifying the ways in which profits are pursued, as also by utilizing the returns from business for the common good.

Formation of The Team B is one such laudable initiative. In 2006, the World Economic Forum launched its Partnering Against Corruption Initiative. It continues to make progress by roping in more and more corporates from across the world. Earlier, in 2003, UN members had signed its Convention against Corruption. As of June 2013, there are 167 countries, including the EU, which are a party to the same.

If these initiatives bear fruit, most responsible corporates the world over would perhaps be e-publishing their EP&Ls in not too distant a future. More significantly, we shall have the collective satisfaction of handing over a healthier planet to the coming generations!

(Related blogs that you might find of interest on this site:

  1. Getting a Moral Compass would be a Sound Business Strategy for India Inc.’ published on December 9, 2012.
  2. Bidding an adieu to Mr. Ratan Tata’ published on December 27, 2012
  3. What would our Business Leaders be like in 2025?’ published on January 27, 2013.
  4. Combating the Cancer of Corruption’ published on April 4, 2013.)

 

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