Global Responsibility

Archives

  • October 2024
  • September 2024
  • August 2024
  • March 2024
  • December 2023
  • July 2023
  • December 2022
  • October 2022
  • June 2022
  • April 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • July 2021
  • May 2021
  • March 2021
  • February 2021
  • December 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • May 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • May 2018
  • March 2018
  • November 2017
  • August 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • October 2016
  • August 2016
  • July 2016
  • May 2016
  • April 2016
  • January 2016
  • October 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • November 2014
  • September 2014
  • August 2014
  • June 2014
  • April 2014
  • September 2013
  • July 2013
  • June 2013
  • May 2013
  • March 2013
  • January 2013
  • November 2012
  • October 2012
  • September 2012
  • July 2012
  • June 2012
  • May 2012
  • March 2012
  • February 2012
  • January 2012
  • August 2011

Categories

  • Blog
  • Tipping Point
Subscribe
Global Responsibility
Global Responsibility
  • Visit GRLI Website
  • Blog

A monster of our own design

  • 24 May 2012
  • 4 minute read
Total
0
Shares
0
0
0

The Economy is very much the de facto bogeyman of the twenty first century: the Pulveriser of Watertight Portfolios, the Marauder of Mortgages, the Bane of Banking. However, as a monster of our own design we really only have ourselves to blame for our present misfortunes. No doubt Mary Shelly would have thought it hilarious.

The trouble lies in the fact that modern-day capitalism is largely based on nineteenth century models that are entirely reliant on a simpler, seemingly larger world where physical capital was scarce and natural capital abundant. Things are no different today: our society traditionally gathers resources through systematic depletion of fragile or otherwise limited resources. In the distant past such an approach made sense; the world was effectively an expansive, fertile wilderness — particularly in the time of our hunter-gatherer ancestors. For the longest period slash and burn was a genuinely viable economic model.

Our current economic approach no longer makes much sense, given how it consistently fails to offer meaningful solutions to the growing crises of today’s world. Sustainability issues aside, one may venture that the present model does not take into account the things that really matter to people — such as being part of a community, building meaningful relationships, or enjoying a fulfilling career.

Economists suggest that global society should prepare itself for persistent economic turmoil, a future where instability is the norm rather than the exception, along with the twin heads of rising unemployment and unresolved accumulations of bad debts — and no credible safeguards to prevent future debacles.

As we continue to wring our hands over exactly what we’re supposed to do, our population and consumption levels are still increasing. After all, the monster is designed to grow at any cost, even to the detriment of its creators.

How did it come to this? How do we stop it? How do we stop ourselves?

Our species is naturally expansive. We are programmed to survive, to grow, expand and evolve. One trait that makes homo sapiens different from other species is how fast we have achieved our dominance over the globe, using our complex brains and tool-using limbs to barge aside any competitors in less than a blink of geological time.

Another important trait that developed alongside our physiological advantages was our ability to transfer information, first vocally (through language and song) and later by keeping records on durable materials that are preserved for later reuse — be they carved into bone or stone, painted in caves, or written on parchment. Homo sapiens owes much of its success to the production, preservation and evolution of external information mechanisms. Such skills give us a distinct advantage over other species. In the game of species, we hold the aces.

And yet the monster took us by surprise. As we encountered the boundaries of sustainability in the second half of the twentieth century we increasingly began asking ourselves questions concerning the state of our world:

What are the consequences of uninhibited expansion?
How resilient is our environment?
What are the effects of a consumption-driven economy?
What are the limits to growth?

Common responses to such questions often involved denial, or shifting of responsibility:

The effects are limited or temporary.
We don’t have enough data.
Earth’s climate is naturally unstable.
Politicians and businesses will fix our problems.
Let’s place our trust in our leaders, our technology, our economy, our gods.

The Friedmanian doctrine — coupled with the shareholder value concept and stock option plans — has proven to be a powerful argument in favor of legitimizing ever-increasing returns and private income for shareholders and managers. The 1970s and 80s witnessed the rise of investor capitalism in Western industrialized countries that fundamentally changed business — for the worse. In those heady times institutional investors became the default business owners, managing their holdings largely for short-term profits, proudly listed in quarterly reports. The business of business is profit.

No wonder then that many of us consider business as being disconnected from overall society, unwilling or unable to direct its productive capacities to more constructive uses.

A good starting point for rebuilding business is to reassign economics to its appropriate status as a subset of society, not its center. For example, businesses should transform themselves into stewards — an ethic that embodies responsible and sustainable management of available resources that are common property or belong to an external party. Many business leaders already understand that transforming the present economic system and creating a sustainable business model will serve their long-term interests. Ultimately, business organizations need to embrace the role of stewardship with the implicit knowledge that they are not the real owners of the natural resources they use and occupy. The world is too small for such delusion.

Of course, rebuilding our economic models will not be easy. It will be a messy and painful process that will undoubtedly change the way we view and inhabit the world.

Either way, the monster must be tamed.

Part of the text was derived from the 50+20 Agenda, which will be launched at the UN PRME 3rd Global Forum during the RIO+20 summit.

Total
0
Shares
Tweet 0
Share 0
Share 0
Previous Article
  • Blog

The inverted Adam Smith

  • 23 May 2012
View Post
Next Article
  • Blog

Emerging benchmarks at RIO+20

  • 29 May 2012
View Post
You May Also Like
View Post
  • Blog

Leadership in Uncertain Times : Exploring the Interplay Between Crisis, Power and Systemic Transformation

  • Darija Miletic
  • 2 October 2024
View Post
  • Blog
  • Tipping Point

Advancing Globally Responsible Management Education: A travelling collaborative inquiry

  • Darija Miletic
  • 21 August 2024
View Post
  • Blog

Exploring the Essence of Global Responsibility: Join GRLI Crucial Conversations

  • John North
  • 2 August 2024
View Post
  • Blog

12 ways to start decolonizing business schools

  • The GRLI
  • 12 March 2024
View Post
  • Blog

Reflecting on our Crucial Conversations

  • The GRLI
  • 10 March 2024
View Post
  • Blog

Transpersonal Leadership Deep Dive

  • The GRLI
  • 15 December 2023
View Post
  • Blog

Our 2023 wrapped up

  • The GRLI
  • 15 December 2023
View Post
  • Blog

 Peter Møllgaard appointed chair of the GRLI

  • The GRLI
  • 15 July 2023
Featured Posts
  • Leadership in Uncertain Times : Exploring the Interplay Between Crisis, Power and Systemic Transformation
    • 2 October 2024
  • Transforming Marketing Courses – Lessons Learned
    • 17 September 2024
  • Advancing Globally Responsible Management Education: A travelling collaborative inquiry
    • 21 August 2024
  • Exploring the Essence of Global Responsibility: Join GRLI Crucial Conversations
    • 2 August 2024
  • 12 ways to start decolonizing business schools
    • 12 March 2024

Subscribe

Subscribe now to our newsletter

The Global Responsibility blog hosted by the GRLI provides a record of the ongoing collaborative inquiry into the development of global responsibility in how we learn, live and lead.

The Globally Responsible Leadership Initiative is the leading incubator for innovation and new practice in business schools and for collaboration with business in the space of ethics, responsibility, and sustainability.

https://grli.org

  • About GRLI
  • Events
  • What’s important now
Global Responsibility
https://responsibility.global

Input your search keywords and press Enter.