SUTANU GURU ANALYSES HOW ACTIVISM IS EMERGING AS ONE OF THE BIGGEST CHALLENGES FOR CEOS IN THE 21ST CENTURY. HE ALSO ARGUES HOW ACTIVISM HAS OFTEN ENDED UP SAVING CAPITALISM
Power corrupts and aboslute power often corrodes common sense. No matter what your ideology, you will agree that this is one of the fundamental lessons – or maxims if you please — that has literally brought Capitalism to its knees since the autumn of 2008. Look at it another way: everyone seems to agree that the real reason for the existential crisis that has thundered across capitalist societies is the apparent absence or utter failure of regulation. Put it even more simply, Capitalism faces its gravest crisis since the Great Depression of 1929-33 because the system of checks and balances that is supposed to function in a free market system and a democracy virtually collapsed. Hubris, arrogance, myopia and even megalomania seem to have replaced common sense vision as glorified CEOs and bean counters strutted across Wall Street like Lords of the Rings. If they had listened to the common sense voices of what we can now portray as “activists”, Wall Street today would not look like an ageing harlot who lives under the delusion that she is Marylin Monroe re-incarnated.
Yes, we come to the most cliched and arguably most abused terms in contemporary times of angst and anguish — activism and activists. In this 21st century, as globalization gathers pace relentlessly and as technology enables citizens to access what was once the privilege of the high and mighty, the CEO is realising that he can ignore activism at his own peril and he might even end up destroying his company if he underestimates the power of activism. Name a theme or a a cause and you will find a hyper ventilating and often angry swarm of ‘activists’ who appear determined to make governments and companies “do the right thing”. They can force General Motors to make safe cars; they can force Nike to use more humane labour practices in China and also force Ratan Tata to relocate his Nano plant out of West Bengal. Yes, it is time the 21st century CEO realised this simple fact: growing corporate power will now frequently confront the growing power of activism. The activists have possibly nothing to lose except their ideology; the CEO and his company can lose tens of billions of dollars in market capitalization!
Many seem to think that activism is a recent phenomenon. But I would disagree. Personally, I think the now discredited ideology of Marxism was the single greatest feat of activism in modern economic history of the world. It is trade unions inspired by the vision of Karl Marx that finally convinced the wealthy and the powerful that not sharing wealth with workers would inevitably lead to revolution. Henry Ford might have brutally treated his workers; but he knew that they could also be his customers.
Power corrupts and aboslute power often corrodes common sense. No matter what your ideology, you will agree that this is one of the fundamental lessons – or maxims if you please — that has literally brought Capitalism to its knees since the autumn of 2008. Look at it another way: everyone seems to agree that the real reason for the existential crisis that has thundered across capitalist societies is the apparent absence or utter failure of regulation. Put it even more simply, Capitalism faces its gravest crisis since the Great Depression of 1929-33 because the system of checks and balances that is supposed to function in a free market system and a democracy virtually collapsed. Hubris, arrogance, myopia and even megalomania seem to have replaced common sense vision as glorified CEOs and bean counters strutted across Wall Street like Lords of the Rings. If they had listened to the common sense voices of what we can now portray as “activists”, Wall Street today would not look like an ageing harlot who lives under the delusion that she is Marylin Monroe re-incarnated.
Yes, we come to the most cliched and arguably most abused terms in contemporary times of angst and anguish — activism and activists. In this 21st century, as globalization gathers pace relentlessly and as technology enables citizens to access what was once the privilege of the high and mighty, the CEO is realising that he can ignore activism at his own peril and he might even end up destroying his company if he underestimates the power of activism. Name a theme or a a cause and you will find a hyper ventilating and often angry swarm of ‘activists’ who appear determined to make governments and companies “do the right thing”. They can force General Motors to make safe cars; they can force Nike to use more humane labour practices in China and also force Ratan Tata to relocate his Nano plant out of West Bengal. Yes, it is time the 21st century CEO realised this simple fact: growing corporate power will now frequently confront the growing power of activism. The activists have possibly nothing to lose except their ideology; the CEO and his company can lose tens of billions of dollars in market capitalization!
Many seem to think that activism is a recent phenomenon. But I would disagree. Personally, I think the now discredited ideology of Marxism was the single greatest feat of activism in modern economic history of the world. It is trade unions inspired by the vision of Karl Marx that finally convinced the wealthy and the powerful that not sharing wealth with workers would inevitably lead to revolution. Henry Ford might have brutally treated his workers; but he knew that they could also be his customers.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
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
IIPM B-School Detail
