The New Responsibility of Companies in a Time of Climate Change and Increasing Inequality
There was a time when companies were primarily there to create wealth for shareholders. Many people believe that the company's obligations should be more than just profit in today's complex world. Enrico Sassoon is the editor-in-chief for the Harvard Business Review Italy. He documents the passage and landfall of the winds that have changed the business landscape.
The Business Roundtable manifesto and similar manifestos over the past two to three years have, inevitably, opened the floodgates to a debate that has raged for 100 years over what the purpose (or "purpose" as it is commonly called nowadays) of corporations. Many believe that the manifesto's change, while it may only appear to be revolutionary, signals the end of the mantra about maximising shareholder value and guiding businesses toward a new era of protecting stakeholder interests. First and foremost has emerged the global environmental, which seems to be higher ranked than any other element. Stakeholders no longer consider the social groups that are represented by the company (e.g., employees, suppliers, customers), but also the environment around them. This includes the most limited and localized, as well as the largest, which includes the global community. Nothing less than the future for the planet in the current climate change context.
This new normal is clearly turning the long-running discussion over "classic" positions upside down. This is not a comparison between the Marxist vision for the goals of entrepreneurs and business. The former defines the objective as the surplus from the exploitation and payment of labour at a lower level than the "value" produced. While the latter considers profit to be a premium on entrepreneurial spirit linked to capital investment and taking on risk, profit in the former is defined as the sum of the two. It is useful to compare visions that emerged from research on modern managerial capitalism, the aims and responsibilities for businesses, and their representatives, in the current debate.
Roger Martin emphasized in 2014 that modern capitalism has experienced two major epochs in which two seminal academic researches are rooted. The first was managerial capitalism. This was a form of managerial capitalism that began in 1932. It was marked by the radical idea at the time that businesses should be professionally managed. In 1976, the second type of shareholder value capitalism was born. Its core premise was that any business should aim to maximize the wealth of its shareholders. This objective is what companies should follow, and both shareholders as well as the company will benefit.
It is not necessary to be afraid of change, as it will bring about a new era of courageous economic expansion (postponed by the Great Depression, but still possible).
These two epochs did not pay much attention to stakeholders or the environment surrounding the company. The only thing that was certain is the assumption that businesses and their representatives are fulfilling their obligation to create wealth through the creation of profit and employment on the market. They also include ensuring the satisfaction and well being of citizens-customers through the sale of the right products or services at the right prices.
The first two epochs were marked by significant academic research, as previously stated. Adolf A. Berle and Gardiner C. Means published The Modern Corporation and Private Property in 1932. In it, they stated that management should not be tied to ownership. Owner-managing directors like the Morgans, Mellons, Carnegies, and the Rockefellers should not be the governing force in the business world. Companies should instead be led by outside figures, or a new breed of professional CEOs. It is not necessary to fear change, as it will bring about a new era of courageous economic expansion, postponed by the Great Depression for a few years.
Although the "vision" appeared convincing, professional managers were now running the "control center". Although entrepreneurs were allowed to start new businesses, once the company had reached a substantial size, it was considered wise to delegate these tasks to more stable and reliable management professionals. The idea worked and for nearly half a century, the management professional was created and developed. However, there was never any clarity about the responsibilities of the board, shareholders, or management. There was also no clear distinction between professional managers and entrepreneurs, in a hidden but constant competition for leadership that has never been completely remediated.
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If you want to avoid problems such as strokes and heart disease, there is an easy way.
Get more fruits and vegetables.
Whole grains are better than refined ones. Brown rice is better than white. Switch to whole-wheat pasta
Consider lean proteins such as poultry, fish and beans.
Reduce your intake of processed foods, sugar, salt, saturated fat, and other unhealthy food.
Flexibility is key to eating well, according to Joyce Meng, MD assistant professor at UConn Health's Pat and Jim Calhoun Cardiology Center. You can follow a strict diet plan if you prefer. It's okay if you don't like following a strict diet plan.
Tricia Montgomery (52), founder of K9 Fit Club knows firsthand the benefits of a healthy diet and lifestyle. Her favorite things are eating healthy food and making small, frequent meals. She says, "I don’t deny myself anything." "I still enjoy dessert, key lime pie, yum!" -- I love frozen gummy bears and moderation is the key.
Get regular checkups. Your doctor will keep track of your medical history so that you can stay healthy. If you are at high risk of osteoporosis (a condition that weakens bones), your doctor may recommend more vitamin D and calcium.
You may be recommended by your doctor to have screening tests done to monitor your health and detect conditions before they become serious.
Be open to communication. Meng said, "If you have any questions, ask your doctor." "Ensure you are satisfied with the information." Talk to your doctor if you have concerns about any medication or procedure.
Reduce Stress
It can be very detrimental to your health. It is impossible to avoid it all, but there are ways you can reduce the effects. Do not take on too many responsibilities. Set limits for yourself and others. It is okay to say no.
To relieve stress, try:
Deep breathing
Meditation
Yoga
Massage
Exercise
Healthy eating
Talking to a friend or family member.
Develop healthy habits
You can prevent problems from coming your way tomorrow if you make the right decisions today.
Brush your teeth twice daily and floss each day.
Don't smoke.
Limit your alcohol. Limit your alcohol intake to 1 drink per day.
Take your medication exactly as prescribed by your doctor.
Get better sleep. Try to sleep for at least 8 hours. Talk to your doctor if you are having trouble sleeping.
Keep out of direct sunlight between 10 a.m. and 3 p.m.
Wear your seatbelt.
Meng suggests that you take time each day to invest in your own health.
Montgomery was able to see the benefits. Montgomery says that she has overcome health issues, is happy, and has a positive outlook. She says that her life has been forever transformed.
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