ClicksandWrites

Positive action for dealing with change

Posted on September 12, 2007

Positive action for dealing with change
10 Sep, 2007, 0019 hrs IST,Nandan M Nilekani,

As Global business leaders, we operate at a time when the need to address larger issues such as climate change and poverty is becoming more urgent. Questions are being asked about the role that large companies play in addressing these challenges. This is why the inquiry into Tomorrow’s Global Company, initiated by the Tomorrow’s Company think-tank, has proved so timely and relevant.

This writer co-chaired the inquiry that brought together representatives from businesses based in Asia, North America and Europe as well as people from non-governmental organisations (NGOs) and not-for-profit groups. They came from ABB, Alcan, Amnesty International Business Group, BP, Dr Reddy’s, Ford, The International Institute for Sustainable Development, KPMG, Leaders’ Quest, McKinsey, Standard Chartered etc.

Given this diversity of backgrounds, it was interesting to find a remarkable degree of consensus in our views. We agreed that the market economy has proved a powerful force for innovation, growth, employment and development. Today, the market’s power is most dramatically seen in the process of globalisation, which is driving up productivity and creating prosperity.

However, we also agreed that the world is undergoing unprecedented change, characterised not only by economic growth but by increasing pressure on the environment and continuing social, political and cultural divisions. The positive power of globalisation is not touching many lives.

Global companies — with their scale, power, capabilities and experience — are uniquely placed to deliver practical solutions to resolve these issues. They can develop new technologies, create jobs, raise skill levels, set benchmarks in working conditions and provide goods and services to improve living standards for the world’s poor. In other words, companies can make a positive difference.

Going beyond our current efforts, we need to envision a world in which companies make profits and create shareholder value while tackling large global problems. There is no simple answer. But we have agreed on specific priorities — actions we believe companies should take to realise our shared vision.

Our three priorities were: redefining success, living by strong values, and deeper engagement with governments, etc., to create stronger market frameworks. We saw these as critical factors for changing businesses from wealth creators to agents of social change.

First, we agreed that global companies must redefine ‘success’. It isn’t only about delivering short-term returns to investors but about creating lasting positive impact for society and the environment. If companies can make such contributions, the profits will follow.

Investors are increasingly judging companies on their prospects for sustainable success — looking hard at performance against environmental, social and governance indicators. They want companies to be clear about their goals for building value and prove that they are achieving them. The onus is on us to define specific measures of long-term success and demonstrate that we are on track to meet them.

Our second priority was for companies to articulate and live by strong values. Global businesses are diverse in many respects — geographically, culturally and linguistically — but they cannot afford to be so in regard to ethics and behaviour.

Strong values — put in practice through codes of conduct or charters — bind a multinational together, providing motivation internally and building trust externally. For example, if a company says it believes in education and backs that belief with investment, people will make the connection that wherever that company operates it will support education. This association becomes integral to the company’s brand. While helping people develop skills, the company also attracts customers who value its reputation for encouraging learning.

Our third priority related specifically to directing the power of the market for social and environmental ends. In many areas there are no international rules laid down by governments, which means that there are serious failures in the frameworks that should constrain the market. Over the past two decades, NGOs have highlighted these areas — from the environmental damage caused by construction projects to corruption that prevents the proceeds of global companies’ work from benefiting citizens of developing countries.

Progressive businesses have evinced interest in tackling such problems both to avoid negative outcomes and being undercut by less scrupulous competitors. Such issues can only be resolved by strong national regulation and international agreements. However, one cannot simply shift the responsibility onto governments.

That is why companies must continue to implement voluntary agreements. Examples include the Kimberley Process, which seeks to prevent the sale of ‘conflict diamonds’; the Equator Principles, which make banks’ funding for major projects contingent on social and environmental responsibility; and the Extractive Industries Transparency Initiative, which combats corruption by encouraging greater openness about the use of revenues from oil, gas and mining operations.

While they are a good start, these initiatives must be followed up by stronger frameworks of agreements, laws and regulations to ensure that the power of the market is unlocked to address the problems of our time. And companies must work with governments to create such frameworks.

In the last decade there has been emphasis on doing business in a ‘responsible’ way, i.e., avoiding negative impact on society and the environment. We must now focus on doing business in a ‘sustainable’ way — delivering positive impact to society and the environment. This also means doing so in a way that assures our own sustainability, without which we can do nothing.

Global businesses have huge resources, deep capabilities and extensive reach. They also have front-line experience of key problems such as poverty, environmental issues and human rights dilemmas. We have shown that we understand the problems. We must now be part of the solution.

(The author is co-chairman, Infosys Technologies)

Creativity from being oneself

Posted on September 12, 2007

Creativity from being oneself
10 Sep, 2007, 0548 hrs IST,K VIJAYARAGHAVAN, TNN

In a song sung by Mohammed Rafi for the film Izzat, released in 1968 (Lyrics: Sahir Ludhianvi), the message of authenticity is brought out in the lines, Kya miliye aise logon se, jinki fithrath chupi rahe; nakli chehera samne aaye, asli surath chupi rahe (what can be obtained from such people whose nature lies hidden, where only the false face is in view and the real face stays hidden?). This song further expatiates powerfully on the ways of such pretentious persons in this world of make believe and sham.
Many indeed are far removed from their normal selves, influenced as they are by feelings of insecurity and anxieties or in consequence of their greed for money, power and fame. While some openly and brazenly cast off all scruples and goodness in their feverish pursuits, some continue to talk of and preach honesty and integrity, though unable to bring themselves to lead a life of clarity and real substance.

They thus display a dichotomy in character, which also finally manifests, to an intelligent observer, in their conflicting words and acts. While many are helpless tools of situations, some also can cause serious harm through their glib talk and convincing exterior. Such wolves in sheep’s clothing are verily walking examples of split personalities, whose cliché laden and sugar-coated words would extend to swearing and making promises, adroitly stage managed to bowl many over.

In an incisive article, “The Awesome Power to be Ourselves”, (Reader’s Digest, July 1983) Ardis Whitman rightly terms the power to be oneself as the greatest power — the power which could touch the destiny and trends of situations and peoples. Citing specific examples of great personalities, who possessed this power of integrity and authenticity, Whitman also points out how, on the contrary, the “loss of power” on the part of the soul, could also result in unexplained fatigue and various psychosomatic diseases.

While specific mental and spiritual exercises could help one to obtain authenticity and clarity within, being in solitude once in a while, reflecting on things within and without is also a powerful tool in this journey. This verily is the application of the exhortation, ‘Know Thyself’, the concept of Sage Patanjali (Yoga Sutra: 1,3) of being established in one’s true self (swarupa) and the injunctions in the Bhagawad Gita (2,45; 5,3 and 5,25) to become freed of conflicts and dualities within.

Time for Chak De, India – Narayana Murthy

Posted on September 12, 2007

Time for Chak De, India
11 Sep, 2007, 0000 hrs IST,Narayana Murthy, for ECONOMICS TIMES
NEW DELHI: The other day, my wife and I were perhaps among the very few post-fifty people in the mostly-twentyish crowd watching the film Chak De in Bangalore. You had to be there to believe the shouts of joy that accompanied every goal India scored in the imaginary tournament in the movie.

The mood at the end was as if India had actually won the women’s world cup in hockey. I can appreciate this mood since I too felt similar joy and pride when hundreds of cameras clicked at me holding our national flag, on India and my being declared the winners of the E and Y world entrepreneur award among the forty-odd competing nations at Monaco in 2003. As I exited the theatre after watching Chak De that day, several youngsters asked me for my reaction to the movie. My answer was simple. I said I wanted to see the movie become a reality not just in hockey but in every sphere.
The recipe for such a success was most wonderfully conveyed by Shah Rukh Khan and those wonderful women hockey players in the movie. Let me recount them here. We have to identify as Indians first and rise above our affiliations with our states, religions and castes.

We must accept meritocracy and enthusiastically play the role we are best suited to. We must embrace discipline to strictly follow every step required for success. We have to put the interest of our nation ahead of our personal interests, subordinating our egos and biases. Finally, we have to put in tremendous hard work and make short term sacrifices for long term glory.

I have immense faith and optimism in the youth of this country. But, will we get our leaders to set examples for hundreds of millions of Indian youth? I wish more and more of our leaders see Chak De and learn these precious lessons. (The author is Chief Mentor and Chairman of the Board, Infosys)