Competition today has forced organisations to overlook the importance of values, ethics, credible leadership and corporate governance. they simply hinge their hopes on luck. wrong. Dr. Jamshed Jiji Irani, Director of Tata Sons and Chairman of the Board of Governors, IIM-Lucknow, writes about those elements, which if considered first, would result in fair profits.
Profit is about “Corporate Governance”
Nowadays, “Good Corporate Governance” is very much in the news, and is being demanded from various quarters. There is a drive towards the “Triple-Bottom-Line”. The practice of “Triple-Bottom-Line” – financial, social and environmental – is being taken up by the more enlightened business houses in India and abroad.
The opposite of “Good Corporate Governance” is apathy. Unfortunately, too many of us take the easy alternative under the pretext that, I on my own, cannot make a difference. The truth is exactly the opposite. Even a drop in the ocean can make a difference. Very often, this attitude of apathy is an excuse for not taking a correct stand or for avoiding an initiative to fight corruption.
Another reason which is given for not taking appropriate action, is that we are restricted by the prevailing laws of the land. Once again, nothing can be further from the truth. It can be demonstrated that even under the prevailing laws, which in some cases are definitely restrictive and archaic. It is possible with vision and determination to take actions which can have far reaching impacts.
Profit is about “Leadership with Trust”
The right leader can make a difference. We do not have to go back to the very obvious examples in the political history of great men such as Mahatma Gandhi and Nelson Mandela. Even in a much more restrictive sphere of industry and civic administration, there have been very significant examples in the recent past where one person at the helm, has made a tremendous difference on the performance of an entire organisation. These people gave back to the organisations which gave them respect and made them feel proud to be what they were.
It is well accepted that those organisations and corporations which create ownership and a feeling of belonging in the rank and file, are the best able to stand up to the competitive environments in which businesses find themselves today. The crucial feature is how does one build this culture in a world which is today awash with cynicism and skepticism. Such attitudes do not help any one or any organisation to get ahead and succeed. Therefore, this ‘trust-deficit’ has to be taken head on. The Tata organisation is built on trust, and its motto is “Leadership with Trust”.
Nowadays, “Good Corporate Governance” is very much in the news, and is being demanded from various quarters. There is a drive towards the “Triple-Bottom-Line”. The practice of “Triple-Bottom-Line” – financial, social and environmental – is being taken up by the more enlightened business houses in India and abroad.
The opposite of “Good Corporate Governance” is apathy. Unfortunately, too many of us take the easy alternative under the pretext that, I on my own, cannot make a difference. The truth is exactly the opposite. Even a drop in the ocean can make a difference. Very often, this attitude of apathy is an excuse for not taking a correct stand or for avoiding an initiative to fight corruption.
Another reason which is given for not taking appropriate action, is that we are restricted by the prevailing laws of the land. Once again, nothing can be further from the truth. It can be demonstrated that even under the prevailing laws, which in some cases are definitely restrictive and archaic. It is possible with vision and determination to take actions which can have far reaching impacts.
Profit is about “Leadership with Trust”
The right leader can make a difference. We do not have to go back to the very obvious examples in the political history of great men such as Mahatma Gandhi and Nelson Mandela. Even in a much more restrictive sphere of industry and civic administration, there have been very significant examples in the recent past where one person at the helm, has made a tremendous difference on the performance of an entire organisation. These people gave back to the organisations which gave them respect and made them feel proud to be what they were.
It is well accepted that those organisations and corporations which create ownership and a feeling of belonging in the rank and file, are the best able to stand up to the competitive environments in which businesses find themselves today. The crucial feature is how does one build this culture in a world which is today awash with cynicism and skepticism. Such attitudes do not help any one or any organisation to get ahead and succeed. Therefore, this ‘trust-deficit’ has to be taken head on. The Tata organisation is built on trust, and its motto is “Leadership with Trust”.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
