Wednesday, September 15, 2010

IMHO II – What is the goal of a Corporation anyway?

Should we really be surprised when we hear that yet another greedy bunch of executives have lied and cheated their way into making a fortune while leaving investors, clients and suppliers high and dry? After all, greed is the character trait corporations look for in their executives as they well know that if they succeed in harnessing it, they will ensure the financial success of their organization. Problem is that organizations now seem to have a much harder time controlling the greed of their executives than they did years ago. Execs know that with only one little crooked deal, they can make enough money to last a lifetime and, if they don’t get caught, they can start again the next day at another company.

In my hair-raising opinion, a corporation’s success should not be measured only by the bottom line. It should take into account social responsibility aspects such as fairness to employees, respect for the environment, etc. Using such an approach, execs would have no choice but to take these factors into account since their compensation would be linked to them. I think it’s about time we revisit the savage capitalistic model that has driven western society to the brink of self-destruction and take a more holistic approach.

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