The concept of Karma basically builds on the notion that if you do good, good things will happen to you. But, in what way does this conflict with a share holder perspective of business? Can you really do good at the same time you do well?
The answer is to move to “social business”. The model promotes both economic and social value with core business solutions; a core business with social responsibilities which are built in rather than added in as an afterthought.
Likewise the concept of Karma, "social business" generates profits, but the main objective is not to maximize financial returns to shareholders. Instead, benefit financially disadvantaged groups in society and grow the social risk through reinvestment, allowing the venture reach more disadvantaged people. Various entrepreneurs, such as Muhammad Yunus, with the Grameen Phone venture, and Grameen Danone Food can provide potential lessons for business and social development in addressing the lack of market participation of the world’s poorest.
4. Karma
Karma is the law of moral causation whereby an action
causes an entire cycle of cause and effect.
In buddhism the effects of all actions are viewed as
actively shaping one’s past present and future
experiences.
In other words you reap what you sow.
5. Karma
Karma usually apply to individuals. But, what about
groups of individuals, corporations, even countries.
Imagine the implications for an individual who belongs
to a group with a “heavy” karma, due to the actions of
other members, and who will suffer the consequences as
a result.
Alternatively, imagine a group that will be unduly
karmically burdened by the actions of some of its
members.
And finally, imagine how group karma can take a life of
its own after years of actions and reactions from its
individual members.
are you startIng to see the pIcture?
6. Good Karma is not business strategi
“People should not be thinking about "make money"
but to "make meaning", or make sense, make a
difference, change the world, helping people ... and with
that they will make money too.“, American entrepreneur and investor
Guy Kawazaki
the case: skype
7. Good Karma is not philantropy
Several foundations have seen the value of its equity
portfolio to be drastically reduced which enabled them
to become dependent on the parent company's annual
donation. But when even the DEFICIENT are several
foundations that have no other choice than to stop
handing out grants.
“ The reason that many U.S. companies starting independent
foundations is to make them less vulnerable to economic trends.
In addition to the initial donation, which may be either shares
or cash, provide companies running some of their profits to the
Foundation. One known example is the Google Foundation,
which was founded in connection with the IPO business and
received a percentage of the shares in Google...“, CSR i Praktiken, 090512
8. the case: VIctorIa haLe. Drug companies have the know-how
to cure malaria, black fever, and other diseases that kill millions a year
in the developing world. But it wasn’t until Victoria Hale created the
world’s first nonprofit drug company, that medicin for these ailments
began to be developed in earnest.
9. Good Karma is not CSR
“Corporate activities have broad impacts
on society, but the findings from the
analysis indicate that managers still have a
relatively narrow perception of societal re-
sponsibilities“, Pedersen, ER 2008, 'Modeling CSR: How Mana-
gers Understand the Responsibilities of Business Towards Society’
“The conclution is that the managerial per-
ceptions of societal responsibilities differ
in some respects from the mainstream
models found in the corporate social
responsibility (CSR) and business ethics
literature“, ibid, based on the survey responses of more than 1.000
managers in eight large international firms.
10. Good Karma is not business ethics
Business ethics aims at determining the fundamental
purpose of a company.
These purposes may range from:
- maximizing shareholder returns
- maximizing shareholders returns while balancing
stakeholders interests
- behaving like a good corporate citizen
- treating employees and customers decently
11. Corporate Karma maybe is ...
the case: good electricity
GodEl has no private profit, 100% of the yield goes to
charity.
GoodCause Foundation owns GodEl. The Foundation's
sole purpose is to operate the company donates its
surplus, via GoodCause, to charity. GodEl is the first
company started and owned by GoodCause.
The more efficient we operates the business, the more
we will be able to donate to charity.
12. Corporate Karma is ...
the case: nils Fredriksson utbildning, svedala county
13. Corporate Karma indeed is ...
“I learned also that things are never as complicated as
we think. It is our arrogance seeking complex solutions
to simple problems.“, Muhammad Yunus, Nobel Prize 2006, Founder and leader
of Grameen bank
the cases:
- grameen phone Ltd.
- grameen telecom
- grameen check
- grameen danone Foods Ltd.
15. Good Karma promote �social business�
• Talk in terms of a social vision and mission instead of
only business idea because "business method" does not exist
until it is reality.
• Adopt a mission to create and sustain social and economic
value.
• In the current field of capitalism theology don't exist room
for an idea about doing business with a purpose other than
financial gain. Although, the free market might well not be
damaged by the factor, which there were some activities
that not only have the propose of profit maximizing.
16. Good Karma promote �social business�
• “...sets up the venture as a business with the specific mission
to drive transformational social change.“
• “...profits are generated, but the main aim is not to maximize
financial returns for shareholders but instead to financially
benefit low-income groups and to grow the social venture by
reinvestment, enabling it to reach and serve more people."
• “...seeks out investors interested in combining financial and
social returns.“
“ “ (Muhammad Yunus toughts and Elkington, �� �� Hartigan, P 2008, The Power of Unreasonable People)
Muhammad
17. Good Karma
Behind almost all societal changes,
there is a special driver
or philosophy.
What should Be your corporate
motivation and philosophy?
