The value and values of corporations
23 februari 2009
Van Londen explores the purpose of corporations and the way they are managed. He makes some interesting observations. Some quotes: “Their environment may ascribe to the corporations more power than they actually possess, but the mere perception of power plays an important role in the relationship between the corporation and its environment. Whether they want it or not, the large corporations have acquired a role which goes far beyond “internationally-oriented entrepreneurship”. They are seen as the symbol of how to handle employment, discrimination and the environment. Although the corporate managements may not be leading the way in the processes of social change, they are certainly eye-catchers (…).”
Van Londen describes the “raison d’être of the corporation as the thinking in two elements: thinking in terms of value and thinking in terms of company values. With respect to the latter he notes: “Common company values are a source of inspiration, which can generate an enormous binding force. In defensive terms, company values can protect a corporation against the centrifugal forces to which a corporation is always exposed as a result of the financial pressure in the outside world. In offensive terms the presence of company values means that the corporation disposes of people who will make more of an effort than normal, without needing to be explicitly prompted, and it is precisely that unprompted little bit of extra effort that determines the competitive advantage. And that completes the circle, because that is again value creation.”
I think this books emphasises some important lessons for corporations in today’s difficult economic context. Many corporations are focusing on economic recovery: people are being laid-off, tremendous cost reductions are forced upon business units, and there is an increased focus on core business. In sum: one is seeking shelter in bitter times. Although the necessity of all this is clear, I am worried that many of them are guided by a too one-dimensional focus on the economics. There seems to be an odd paradox: never before has the need for holding on to values been more urgent. Never before has a need to find more sustainable business models been more important, as many executives and opinion leaders acknowledge in interviews and articles. Unfortunately, I have the impression that these expressions are often not more than lip service. Economics count, values –also vis a vis the organisational external context- are not truly counted in. I’m afraid that this kind of short-sightedness will imply that today the seeds for the next crisis are already being planted in many organisations. Let’s use the crisis to do things differently and better in the near future. Two immediate steps may help executives to recalibrate sensibly. 1) Read Van Londen’s book, and 2) call us.
The book is in Dutch, but it contains a summary in English.
Deel dit artikel via :
Reacties op deze blog
Er zijn geen reacties op deze blog