Tag Archives: ethics

Rethinking business

12 Nov

It’s absolutely unbelievable that the previous post is dated October 6th! If I didn’t know better I’d say some blog-bug hacked in and changed the date.  But it’s probably fair to say things have been a little bit hectic!  As I hinted in my last post, the beginning of term has been a storm, characterised by a whirlwind of assignments, group projects, careers events, guest lectures, MBA class elections and more! And that’s just the weekdays!

Despite the controlled insanity, it’s been very interesting to reflect in some quieter moments with a few classmates on how the things we are being taught really could play out in the real world.  One emerging theme is the concept of “rethinking business”.  What is a business for? This question came up in our first week of classes in just about every course.  Some of the concepts hinted at the traditional – to make money, to create and capture value, to innovate – but others also acknowledged a broader sense of purpose – to do all those things with an eye on the big picture of society.

I’ve been very fortunate in the past several weeks to attend events with an incredible list of speakers, two of whom resonated deeply with me personally by capturing different facets of this concept of greater responsibility.  The first was Stephen Green, the chairman of HSBC Holdings plc, speaking at the first Pears Business School Partnership lecture.  You can read more about the event here, but the key takeaway for me was his assertion that companies must transition from treating corporate social responsibility as a solely philanthropic or “do good PR” issue to using it as a core business strategy tool that selects investments in social and environment issues as a component of a successful business model.

The second speaker was Bob Dudley, the newly appointed CEO of BP.  The Confederation of British Industry’s Annual Conference was the location for Mr. Dudley’s first public appearance since taking office on October 1, 2010.  While much of his discussion centred around the in-depth internal analysis and stock-taking within the organization following the Gulf oil spill, he also clearly acknowledged that BP has had to completely rethink its role as a business, and is working on forging a very different relationship with areas like the Gulf where it does business.  Regular readers will know that I’ve written more than once about BP, and I still believe those opinions were founded and appropriate for the time.  Time will tell whether BP actually is able to achieve their objectives under Mr. Dudley’s leadership, but I will say that his personal commitment through his speech is not in doubt.  We can only hope that the new BP that emerges from this disaster will continue to be fully engaged in its broader responsibility as a global company.

So what is a business for? No doubt this will be a central theme revisted in posts to come, but I can say that we are working on defining this for ourselves in a way that centrally integrates the idea that perhaps a better question may turn out to be “Who is a business for?”

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