J.R.’s Zaphne Blog News for 01-30-2018

Introduction to Compassionate Capitalism


THE TWENTIETH CENTURY was dominated by two opposing ideologies: communism and capitalism. Mrs.Thatcher, one of the great apostles of capitalism, claimed, “There is no alternative.” He shows that not only is capitalism incapable of solving the problems of humanity, but in fact hunger, pollution, the breakdown of social fabric, human unhappiness and many other problems are caused by capitalism. In his view there is no such thing as good capitalism or compassionate capitalism or capitalism with a human face. Without beating about the bush he states that capitalism is bad, bad, bad! Sir John comes from a capitalist background, and is a coach for many business leaders. All past efforts towards a free-market economy, world trade, globalisation, industrialisation, the pursuit of high living standards, unlimited economic growth and every other form of capitalist endeavour have benefited only a small minority; the big players. As far as the vast majority of people around the world are concerned, capitalism has brought loss of livelihood and destruction of their environment. Even more drastically capitalism has failed in terms of the natural environment. Capitalism is rapidly destroying soil fertility, biodiversity and the atmosphere. So capitalism founded on the ideology of unlimited economic growth and industrialised mass production is not only unsustainable – it is blatantly harmful. Now, if neither socialism nor communism nor capitalism, then what? We need a new system for the age of ecology, a system which is embedded in the care of all people and also in the care of the Earth and all life upon it. We need a system which replaces our capitalist worldview with a naturalist worldview, and which shifts our society from capitalism to ‘naturalism’.

Keywords: [“capitalism”,”capitalist”,”system”]
Source: https://www.resurgence.org/magazine/article512-critique-of-capitalism.html

Why “Compassionate Capitalism” is kind of a scam. What if a new brand spoke to the consumer’s unique personal style, home decor, and ethos? Henry sets out to start this brand, “Flush,” and opens a store next to the old one, offering rolls in hundreds of different stylish prints. In order to make the switch a no-brainer for the consumer, Flush sells its rolls for a dollar, too. Of course, Flush will heavily promote its charitable business model to consumers. The new store is an unqualified hit! You and every other customer of the old store switch to Flush. After five years of this, a major paper company buys Flush for $20 Million, all of which goes to Hygiene since he owns the entire business. The philosopher Slavoj Zizek and others have persuasively critiqued these partially-charitable business models for falsely exonerating consumers from their participation in global inequality. What’s less acceptable to me is that models of “Compassionate capitalism” very likely produce more value by selling the suffering of their ostensible beneficiaries than the value they pass on to them. Returning to our Flush example, it’s clear that Henry Hygiene is offering consumers at least two good reasons to buy his product: 1) it’s stylish and 2) five cents of each sale go to poor kids. A hundred percent of all incremental value created for a business by charitable business models should be donated. There is a simple solution for compassionate capitalists: don’t advertise a charitable model. Do you agree that “Compassionate capitalism” is bogus? Or are you happy that poor kids benefit every time you buy shoes from Tom’s or specs from Warby Parker? And should Mother Teresa buy any car she damn well pleases? Weigh in below, and let’s settle the matter once and for all.

Keywords: [“Compassionate”,”business”,”Flush”]
Source: https://www.wired.com/2015/06/when-mother-teresa-drives-a-ferrari/

Practical Christian Finances

How best can we protect the well being of the disadvantaged under free market capitalism, without supporting some social policies? Harmony and prosperity sounds lovely but it’s not easy to adequately opportune all participants. The major problems with free market capitalism are greed and lack of integrity, as well as governmental intrusion, not the Biblically based principles of capitalism. We have already spoken extensively in these blogs about greed so let’s talk about the government’s role. Can governments be trusted to take care of the poor? Their track record is not good. Consider the Roman government into which the Christian church was born and prospered. Plato’s statement, “a poor man should be left to die if he could no longer work,” was symptomatic of the societal and governmental thought of the day. Those in government feel they are the best at taking care of the poor; better than the churches, private individuals and private organizations. The problem with government programs that help the poor is that they tend to keep the poor “Poor”, if I can say it like that; and sadly, dependent on the government. Wealth is such a powerful factor in public health that study authors reported that in a single year, more than “Half a million child deaths in the developing world” were attributable to the poor economic performance of the previous decade. So yesgovernments have a role to care for the poor, but they will never lift the poor out of poverty. They now give close to $3 billion annually to help the poor with public health around the world. So one private foundation is giving a third of what the entire US government is giving and with a “Business savvy” attention to results that cannot be matched in the government sector.

Keywords: [“poor”,”government”,”poverty”]
Source: https://futurenhope.com/

J.R.’s Zaphne Blog News for 01-30-2018

Richard DeVos’s Top 10 Rules For Success

LSE Business Review – Compassionate capitalism: Lessons from medieval Cambridge

Using recently discovered documents on medieval Cambridge we have investigated how money was made through property speculation and how the profits of successful speculation were spent. Property markets developed in medieval England when burgage plots were laid out in new or expanding towns by local landowners, with the king’s permission. Property was a desirable asset in medieval Cambridge, much as it is today! Medieval speculators invested in a variety of properties. Property hot-spots with high-rents can be identified in three parts of medieval Cambridge: at the road junction by the Hospital; west of the market; and near the river just south of the Hospital. Map of medieval Cambridge showing property hotspots. Cambridge was home to several families who had acquired property through the military service of their Norman ancestors, including the Dunning family who owned 12 plots in 1279. Profits from the property market were recycled back into the community through donations to religious houses, hospitals and churches. Compassionate capitalism involved high levels of charitable giving to hospitals, monasteries, churches and colleges which helped disseminate the economic benefits of the ‘winners’ of the commercial revolution. The post gives the views of its authors, not the position of LSE Business Review or the London School of Economics. She is a medieval historian by training and her publications include a co-authored book with Mark Casson on The Entrepreneur in History: From Medieval Merchant to Modern Business Leader – Basingstoke: Palgrave Macmillan – and articles in Urban History, Business History and the Economic History Review. John Lee is a Research Associate at the Centre for Medieval Studies at the University of York. Katie Phillips is an Arts and Humanities Research Council-funded PhD student in Medieval Studies at the University of Reading.

Keywords: [“property”,”medieval”,”Hospital”]
Source: http://blogs.lse.ac.uk/businessreview/2017/06/05/compassionate-capitalism-lessons-from-medieval-cambridge/

Microcredit: Solution to Poverty or False “Compassionate Capitalism?”

AMY GOODMAN: As we continue with the issue of microcredit, poverty and globalization, we’re talking to Susan Davis, and also Dr. Vandana Shiva, world-renowned environmental leader, physicist and ecologist, joins us, founded Navdanya, “Nine seeds,” a movement promoting diversity and use of native seeds. I would only say, let us not think this is a solution to every situation that creates poverty. It needs a solution in terms of respecting the land rights of the peasants and not treating land of the poor as something that can be grabbed by the rich. The second thing, I think, that’s very critical is, at least in India, we have witnessed how microcredit is being used to turn autonomous producers, sovereign producers into consumers. That’s why credit should be a basic human right, because through that they can access many other of their other rights. In Earth Democracy, that’s what I’ve talked about-the instruments necessary to defend the rights to water as a common resource. Privatization of water leading to a high cost of water could be financed by flows of credit, but the solution to access to water is rights to water. Rights need to be recognized as rights and collective rights to the common wealth of this planet – the atmosphere, the water, the seeds, the biodiversity. Credit can come after that rights solution has been offered. I think rights are only real when people can exercise their rights. I think you would agree that organizing people so that they can promote their own collective interest is the way to actually realize the rights that may be on the books, de jure, but are never going to be enforced, de facto, unless people have some means of power. It’s like capital is oil to the engine, right? So that’s why we’re saying if poverty is a disease, then microfinance is a good vaccine.

Keywords: [“right”,”think”,”seeds”]
Source: https://www.democracynow.org/2006/12/13/microcredit_solution_to_poverty_or_false

Plugged in: Compassionate capitalism at Timberland

A new ‘nutritional’ label on shoe boxes makes a point – but will it make the company money? Timberland, a $1.5 billion a year New Hampshire-based maker of boots, apparel and accessories, has practiced its unique brand of compassionate capitalism for years. The company monitors its suppliers to try to make sure they treat their workers fairly. Timberland’s bottom line looks healthy, too: Sales have been growing by an average of about 10 percent a year and, in the last three years, the company’s stock price has doubled, easily outperforming the S&P 500 Index. Last fall, for example, the company tackled the problem of genocide in Sudan in partnership with the actor Don Cheadle, who starred in the movie Hotel Rwanda and has become an anti-genocide activist. The company designed a limited-edition Timberland boot with the message “Not on My Watch,” and it sells boot tags and T-shirts with a map of Africa and the words “Save Darfur” imprinted on the back. The label, which looks like the government-mandated ingredients labels on food, provides information on where the shoes or boots were made, how much energy was consumed to produce them and how much renewable energy the company uses. Inside the box, the company calls upon its customers to take actions to help protect the environment or volunteer in their community. One of Swartz’s goals is to get other companies, including his competitors, to become more transparent about how and where their stuff is made. Timberland’s employees care a lot about what the company stands for, and a big part of Swartz’s job is engaging and motivating his people. I’ve talked to many of them, and they like being part of a company that stands for something. Now a message about the company’s values will be plastered on about 30 million shoeboxes a year.

Keywords: [“company”,”Timberland”,”label”]
Source: http://money.cnn.com/2006/02/07/news/international/pluggedin_fortune/index.htm

J.R.’s Zaphne Blog News for 01-30-2018

Compassionate Capitalism

From socialist student to capitalist entrepreneur

N. R. Murthy, longtime leader of the software-development company Infosys Technologies, became one of India’s, and the world’s, most highly esteemed managers. FROM SOCIALIST STUDENT TO CAPITALIST ENTREPRENEUR. Born in 1946, N. R. Murthy grew up one of eight children in a middle-class family of high caste but meager means. Murthy grew up a socialist, which was typical at the time in India. In 1974 Murthy decided to return to India, first touring the socialist countries of Eastern Europe. The harsh conditions there made Murthy realize that capitalism was not a sin. Back in India, Murthy began working in the software industry. In 1981 Murthy and six other software engineers pooled their savings of about $1,000, and started Infosys in a Mumbai apartment. COMPASSIONATE CAPITALIST. Even though Murthy became one of India’s most successful entrepreneurs, he remained committed to what he called “Compassionate capitalism,” spreading wealth to employees and Indian society in general, not just senior executives. Murthy served on several academic and government boards and established the Infosys Foundation in 1996. Murthy won numerous national and international honors, including the Padma Shri in 2000, one of India’s highest civilian awards for distinguished service to the nation, and Ernst & Young’s World Entrepreneur of the Year in 2003. Although the original stock he owned in Infosys made him India’s second-wealthiest person, Murthy continued to live modestly in a Spartan three-bedroom house. “If we want to sell capitalism to the people,” Murthy explained to the New York Times , “We have to practice a lifestyle that does not seem unattainable. We want more and more people to become entrepreneurs. If the tea stall owner in a small village can say, ‘Hey, these guys can do it; so can I,’ and get his business into the next orbit, then our job is done”.

Keywords: [“Murthy”,”India”,”Infosys”]
Source: http://www.referenceforbusiness.com/biography/M-R/Murthy-N-R-1946.html

Is Capitalism to Blame for Society’s Lack of Compassion?

Compassion – Is it learned?Are we born with compassion as a human trait or is it simply a learned act of kindness? The reality is, most people lack the ability to feel compassion for others, especially living in a world that is so full of hate, violence and death. At what cost? The more we create easier ways to live and quicker means of getting things done, the more we create harmful, lasting damage to the environment and those around us. The world seems to be making more and more heartless decisions. Compassion forms such an integral part in living a vegan lifestyle that I found this book to be very helpful in exploring and building on our ability to live more kindly. How do we become more compassionate towards others? The author, Paul Gilbert, has written in such a way that you feel connected and have an understanding of the dire need to create a more compassionate world. There is nothing preachy about this book though, just creating an awareness of how our minds work and providing a means to train the mind to become more compassionate and to create a better future and way of living. How we choose to live inevitably affects someone or something in order for us to live more comfortably and selfishly. We base our happiness on wants, and always wanting more. A new car, new TV, new phone, more clothes, more travels, more food, more luxury! How can we train ourselves to be more compassionate, when we are living in a world that feeds off the need to impress and be impressed by the materials of others. So whether you’re vegan and questioning your own compassion, or considering veganism and want to live a more compassionate life then this book is for you. Paul Gilbert is a British Clinical Psychologist and the founder of Compassion focused therapy who has written many excellent books surrounding the mind and its ability to improve our quality of life simply by being more mindful and practicing compassion.

Keywords: [“more”,”Compassion”,”live”]
Source: https://www.livekindly.co/compassionate-mind-by-paul-gilbert-book-review/

Infosys’ Murthy: A Wise, Loving Leader

Wise leaders know when to lead and when to let others do so-and they never get caught up in any role they choose to assume. N. R. Narayana Murthy, cofounder of the Indian software service provider Infosys, a widely admired business leader in India, provides a great model of wise leadership. Over the years, Murthy diligently groomed and mentored future leaders at Infosys. Murthy believes that leaders must put the priorities of their team members, customers, and employees ahead of their own and serve them with humility as servant leaders. Capitalist in mind, socialist at heartWhile working in France in the early 1970s, Murthy was strongly influenced by principles of socialism. In 1999, when Infosys became the first software company in India to receive the highest level of capability maturity model certification from Carnegie Mellon University, Murthy shared the company’s experience of the certification process with its Indian competitors. It was clear to Murthy that letting other Indian companies excel would lead Western companies to pay attention to India-a country that in the 1990s hadn’t yet made its mark in the global IT outsourcing sector-and by so doing would help increase the overall Indian market share, including Infosys. Compassionate capitalismDespite being a billionaire, Murthy maintains a frugal lifestyle: he has lived in the same two-bedroom house in Bangalore for decades. After a number of kidnappings of prominent businessmen in India, the police top brass offered Murthy protection. Wise leaders like Murthy are willing to cede their power voluntarily. Seeing himself as a trustee, Murthy had no qualms about letting go of his position and in fact saw it as part of his duty to ensure a smooth and well-considered transition. Growing as a wise leader takes practice, self-discipline, and a willingness to act consistently with your own purpose, values, and the context.

Keywords: [“Murthy”,”lead”,”Infosys”]
Source: http://fetzer.org/blog/infosys-murthy-wise-loving-leader

J.R.’s Zaphne Blog News for 01-30-2018

Re: What is the most exciting development in the business world?

Compassionate Capitalism: Serving the Poor Profitably with David Green

An Ypsilanti native who now lives in Berkeley with his family, David Green’s warm and approachable style made it easier to picture him as your friendly, lawn-mowing neighbor than a legendary social entrepreneur who has impacted the lives of millions. Green is best known for making healthcare affordable for the poor by significantly reducing the manufacturing costs of medical technologies. Green is an Ashoka Fellow and VP, a MacArthur Fellow, and a globally recognized leading social entrepreneur. Among those inspired by Green were several Erb students in attendance. Green’s work was key to the success of Aravind Eye Hospital in India. The hospital serves the poor by performing hundreds of thousands of cataract surgeries a year, the majority of which for free or at a very low cost, all the while maintaining financial sustainability. By targeting the problem areas along the supply chain, Green was able to reduce the prohibitive cost of the surgery technologies dramatically. An example: Green found a way to produce state-of-the-art surgery replacement lenses for under $10.00 a pair, instead of the previous $150.00. My in-a-nutshell attempt at defining Compassionate Capitalism based on Green’s enlightening talk: for-profit social enterprises with a low margin, high volume business model that seek to reduce manufacturing costs by maximizing production capacity, combined with a tier-pricing strategy to ensure affordability to the poor, while using surplus revenue to maintain financial sustainability and forming a lasting impact by “Tilting the industry competitive landscape”. Green has continued to use Compassionate Capitalism to change lives. Those are just a few examples; Green’s current project list was so incredulously long that jaws were dropping over the breakfast table. Green expressed that his competitive nature kept him going, and running and meditation also helped relieve some of the stress from juggling seven to eight startups simultaneously.

Keywords: [“Green”,”social”,”student”]
Source: https://erbsustainability.wordpress.com/2009/10/30/compassionate-capitalism-serving-the-poor-profitably-with-david-green/

Learning to Give

The Giving Pledge is a moral pledge signed by billionaires, who commit to giving away more than half of their entire wealth to help address our most serious problems in society. Billionaires signing the Giving Pledge may donate to charities, private foundations, and philanthropic organizations of their choice. They pledge to give throughout their lifetimes and through their wills when they die. In 2010, Gates and Buffet established the Giving Pledge for billionaires as a platform for donating, learning, and inspiring generosity in others. The Giving Pledge hosted learning sessions for signers of the pledge to meet each other and learn from each other’s experiences with philanthropy. The Giving Pledge expanded internationally with billionaires from India and China joining the pledge as well as younger billionaires, including Sara Blankley, the founder of Spanx, Mark Zuckerberg, the founder and CEO of Facebook and his wife, Priscilla Chan, and Joe Gebbia and Brian Chesky, the co-founders of AirBnB. Today, the estimated net worth of more 150 signers is $780 billion. Pledge: There many types of pledges, including moral pledges and legal pledges. The Giving Pledge uses moral pledges, like a promise made between friends. If a philanthropist agrees to give money to a non-profit school to build a playground, he or she signs a legal pledge to ensure that the school can pay the bank and builders the money that is required for construction. Compassionate Capitalism: Giving Pledge signer, Kiran Mazumdar-Shaw, champions compassionate capitalism over philanthropy as a way of empowering poor people, which she believes is more effective than traditional forms of direct charitable aid. The Giving Pledge: The official website outlining the pledge and listing signers of the pledge. Global Philanthropy Forum: Organization promoting ideas associated with impact investment, compassionate capitalism and philanthropy among the signers of the Giving Pledge.

Keywords: [“Pledge”,”give”,”signs”]
Source: https://www.learningtogive.org/resources/giving-pledge

Capitalism With a Heart

They justify corporate philanthropy, like donating to the United Way, not because it’s virtuous but because it buys public good will and thus contributes to the company’s bottom line. To hard-core free-marketeers, the corporation’s only mission is to generate profits for shareholders. Mackey defines his company’s mission as improving the health and well-being of everyone on the planet. Before taking the company public, he told investors that he was going to devote 5 percent of the profits to philanthropy, so they can’t complain now that he’s robbing them. Nor can Google’s shareholders, because its founders also warned investors of their philanthropic plans. As Katie Hafner reported in The Times, they’ve given $1 billion in seed money to Google.org, and set up the philanthropy as a for-profit organization so it can work with venture capitalists, start companies and use any profits to finance further endeavors. It’s smart of Google’s founders to try using capitalist tools to save the planet; the market’s discipline should keep their philanthropy from backing too many lost causes. Still, whatever Google.org accomplishes, I’d bet that it will pale next to the social good accomplished by Google.com. The company’s founders may not have set out to help humanity with their search engine, but they have enriched countless lives by spreading ideas and connecting people. If you read Adam Smith’s famous passage about the invisible hand causing capitalists to unwittingly serve the public interest, you might conclude that Google’s founders are better off investing their time and money in improving their core business. As Smith wrote, “I have never known much good done by those who affected to trade for the public good.” If compassionate capitalism is a more appealing brand, if Google and Whole Foods are using philanthropy to strengthen the invisible hand, even Smith would say they’re doing good.

Keywords: [“company”,”founders”,”good”]
Source: http://www.nytimes.com/2006/09/16/opinion/16tierney.html

J.R.’s Zaphne Blog News for 01-30-2018

Compassionate Capitalism is the New World Order – Be The Light episode 4

Compassionate capitalism: Why Murthy is right in opposing Infy CEO Vishal Sikka’s pay hike

New Delhi: N R Narayana Murthy and his wife Sudha are known to be frugal, despite being a billionaire couple. A news report mentions today that amid the raging controversy over the company Murthy co-founded – Infosys – he treated Infosys’ Chairman R Seshsayee to simple breakfast of idli and dosa at his modest Bengaluru residence yesterday morning. When last week Murthy raised the issue of the Infosys CEO’s obscene salary, triggering the present crisis, one was forced to sit up and take notice. For the last few days, newspaper reports have spoken of Murthy’s displeasure with the proposal to further increase Infosys CEO Vishal Sikka’s remuneration. Founders together own about 13 percent in Infosys and have been a collective weighty voice on important matters. Murthy has also voiced concerns over a large severance package devised for the ex-CFO. On the former, Chairman R Seshasayee said last evening everything was in order. There are no major corporate governance issues at Infosys but the company and its management should look at perception issues which have cropped up after Murthy pointed out the obvious. No one is saying that Sikka’s pay packet violates any law, neither has it been kept a secret. The remuneration Sikka received in FY16 was duly approved by Infosys’ board of directors and has been duly disclosed in the company’s annual report. The issue is really this: the obscene amount of money Sikka earns to run Infosys may perhaps be justified by the salary math the world’s top corporate honchos apply to their own packages but makes little sense when put in perspective. This piece shows Sikka took home a salary which was 935 times the median pay at Infosys last fiscal. While all this is within the law, above board – what Murthy is alluding to perhaps is some sort of sanity in pay packets of the top honchos of India Inc. His long-stated philosophy on “Compassionate capitalism” suggests the ratio between highest compensation in the firm and the median salary should ideally be 50 to 60.

Keywords: [“Infosys”,”Murthy”,”Sikka”]
Source: http://www.firstpost.com/business/compassionate-capitalism-why-murthy-is-right-in-opposing-infy-ceo-vishal-sikkas-pay-hike-3282544.html

Education Investor Update Alert: It Is a New Day!

A radically new government is about to change everything about Education K thru 20 in America on January 20, 2017time to move forward. This President-Elect has spent 50-years overcoming obstacles: unions, environmentalists, IRS, SEC, regulators, international governments, tort lawyers, media bias, financial ups & downs, strikesbut always winning for that which he was passionateand he is passionate about Education. We are now entering a new EPOCH of OPPORTUNITY for education, institutions, entrepreneurs, corporate training, human resource leaders, teachers, techies, marketers, administrative leadersAND INVESTORS WHO LOVE TO DO WELL FINANCIALLY WHILE DOING GOOD FOR PEOPLE. Secretary-Elect Mrs. Betsy DeVos is a breath of fresh air for any leader who really wants to help people live better lives. Her family is the best example in American history of “Compassionate Capitalism.” The future for education in American now is clearer than ever before: Public/Private Partnerships. Non-Profit Institutions can now fully leverage the BILLION$ of investment capital that has been sitting on the sidelines for the past 8 years out of fear of being punished for desiring to make an honest return-on-investment. For-Profit Schools can now enter into unique strategic consortiums with savvy investors and smart, innovative Non-Profit schools’ leadership. Investors can take advantage of this rare window whereby competition has been obliterated for schools that can jump-start their operations powered-by-marketingthe demand is higher than ever before. Investors can take advantage of the lowest evaluations in 10-yearsand a highly-skilled expert workforce in reality about compensation. Our group is deep into some unique, creative revenue-increasing Public/Private Partnerships for Investors & Schools nowwe see a clear runway for a new time of prosperity for mission-centric, innovative education leadershipplus a time for investors to make more money from the education sector than ever before.

Keywords: [“Education”,”INVESTORS”,”Schools”]
Source: http://www.mclifford.com/education-investor-update-alert-it-is-a-new-day/

Michael Gerson: Pope Francis and the argument for compassionate capitalism

This prolonged exposure served to demonstrate how different the holiday shopping season is from the season of Advent. In his recent, rambling, rambunctious apostolic exhortation, “The Joy of the Gospel,” he criticizes “a deified market” and “a crude and naive trust in the goodness of those wielding economic power.” He is particularly tough on ideologies that assume economic growth is a sufficient social goal and that would deny to governments an active role in humanizing free markets. Issuing a different sort of papal bull, have accused the pope of “Pure Marxism” and being “The Catholic Church’s Obama.” In the process, they are demonstrating how ideology can become a consuming substitute for faith. Defenders of market economics – and I count myself one – should recognize that global capitalism is the most powerful force of modernity, with a mixed influence on traditional ideals and institutions. In the absence of certain social conditions – the rule of law, equal opportunity, effective public administration – capitalism can result in caste-like inequality. This is the dark side of markets – the sale of life and dignity. Francis vividly warns against the “Globalization of indifference.” He talks of business as “a noble vocation.” He rejects a “Welfare mentality.” But he argues that market outcomes are not always identical to social justice and calls for public “Investment in efforts to help the slow, the weak or the less talented to find opportunities in life.” All warned of the danger when a mode of economic exchange becomes a mind-set. Absent a moral commitment to human dignity, justice and compassion, capitalism is conducive to materialism, individualism and selfishness. They can’t be reduced to economic objects or to the sum of their desires. In making this case, Francis is demonstrating that Christian faith is not an ideology; it stands in judgment of all ideologies, including the ones we justify in the name of freedom.

Keywords: [“economic”,”market”,”ideology”]
Source: https://www.washingtonpost.com/opinions/michael-gerson-pope-francis-and-the-argument-for-compassionate-capitalism/2013/12/09/0779698c-60fd-11e3-8beb-3f9a9942850f_story.html

J.R.’s Zaphne Blog News for 01-30-2018

Compassionate capitalism – Blaine Bartlett

A Call for Stakeholder Activists

At the World Economic Forum in Davos last month, I joined 2,500 global leaders in business, government, academia and the arts to discuss the state of the world. Every day the world is becoming more connected and open. According to Oxfam, the richest 1 percent in the world are expected to hold more than 50 percent of the world’s wealth by 2016. We now have an imperative to address expanding economic disparity and environmental hazards, which are adding fuel to geopolitical tensions around the world, and to reassess the role of business can play in improving the world for future generations. The renowned economist Milton Friedman preached that the business of business is to engage in activities designed to increase profits. The business of business isn’t just about creating profits for shareholders – it’s also about improving the state of the world and driving stakeholder value. His “Stakeholder theory” asserts that corporate management isn’t just accountable to shareholders, and that businesses must focus on serving the interests all stakeholders – customers, employees, partners, suppliers, citizens, governments, the environment and any other entity impacted by its operations. To be successful in business, we have to be ready to buy into the stakeholder theory. It is integral to our company and employee values, and adheres to the notion that no business should remain at odds with its community – whether it’s a small town or the entire world. We need legions of “Stakeholder activists” who seek to hold companies accountable for all constituents, going beyond the role of investor activists, who focus on holding CEOs and boards of directors accountable in terms of share price. Ultimately, the most effective way to create shareholder value is to serve the interests of all stakeholders. “It matters to the kind of investors that we want to have, because we are really a mission-focused company. We wake up every day and make decisions because we want to help connect the world. That’s what we’re doing here.” Zuckerberg said.

Keywords: [“World”,”business”,”stakeholder”]
Source: https://www.huffingtonpost.com/marc-benioff/a-call-for-stakeholder-activists_b_6599000.html

Profile Restoring sight to the millions – the Aravind way In India, an eye hospital has become a legend for its surgery and ”compassionate capitalism”. Govindappa Venkataswamy, founder of Aravind, the largest and most productive eye care institution in the world. ” For an ”ordinary hospital” Aravind has some pretty extraordinary facets. Perhaps one of the most extraordinary aspects of Aravind is the volume of patients it handles – 1.3 million last year, which in the international blindness prevention community is held to be a world record. Aravind ophthalmologists examine about a million out-patients at the institution’s four hospitals plus half a million villagers who turn up for an eye examination in the 1500 or so mobile eye camps Aravind organizes every year. The most mind-boggling Aravind statistic and one that would put to shame many an eye hospital in any part of the world, is its surgical productivity. Where an Indian eye surgeon performs on average 350 operations a year and most European or American Bulletin of the World Health Organization, 2001, 79 Profile ophthalmologists even fewer, Aravind’s 70 surgeons collectively average 2000. ” So Aravind must hire only top-drawer, world-quality ophthalmologists? ”No, we hire local practitioners, train them to become high-calibre surgeons, and pay them a monthly salary a little above the average paid in government hospitals. Aravind hospitals have two sections, one for paying patients, the other for ”free” patients. ” Aravind is helping about 100 eye hospitals throughout India apply many of the ingredients of its system, and a good number of these hospitals have seen their productivity double or even triple in the space of a year or two. Aravind consultants are also working with seven hospitals in other countries, notably in Bangladesh, Cambodia and Nepal in Asia, and Kenya and Malawi in Africa, helping them adapt the principles of Aravind to their local needs and cultures. ” n Aravind surgical patients listening to a hospital counsellor advising them on postoperative care.

Keywords: [“Aravind”,”hospital”,”eye”]
Source: http://apps.who.int/iris/bitstream/10665/74720/1/profile.pdf

Claire Chiang: First Principles and Compassionate Capitalism

NEW YORK, October 22, 2012 – In a rousing affirmation of the role business can and should play in social progress, Claire Chiang, co-Founder of Banyan Tree Hotels & Resorts and Senior Vice President of Banyan Tree Holdings, spoke here on the need to moderate capitalism, and to employ instead “Compassionate capitalism” – a free-market structure that prioritizes a long-term increase in people’s standard of living. Citing the Ten Commandments, Chiang stated that businesses must adopt “First principles,” ethical systems that have never been questioned. She repeated that one “Can do well by doing good” several times, indicating that a sense of reciprocity is embedded in the idea of social responsibility – an old concept that has been practiced in Asia throughout history. The key to running a business that is both lucrative and socially responsible is the creation of a holistic and sustainable brand that people can believe in. Chiang acknowledged that differences in markets around the world indicate that no single model fits all. In the case of Banyan Tree, Chiang studied market tourism and found that world demographics want privacy and intimacy. She thus structured Banyan Tree Hotels & Resorts to incorporate high-quality spacious villas, rather than high-quantity small apartments. She predicted that lower resource costs, combined with the consumer’s willingness to pay more, would generate a higher profit. Chiang concluded by answering audience questions, several of which raised the differences in entrepreneurial social responsibility between America and Asia. Among Chiang’s insightful answers was her declaration that the world is entering what she called a “Rainbow civilization” characterized by diversity and open communication. The United States and Asia don’t need to adopt each other’s models; they just need to create mutual understanding. She said, would ultimately generate an accurate interpretation of the global market and its demands, resulting in both lucrative business and an emphasis on the social well being of the global community.

Keywords: [“Chiang”,”Banyan”,”Tree”]
Source: https://asiasociety.org/new-york/claire-chiang-first-principles-and-compassionate-capitalism

J.R.’s Zaphne Blog News for 01-30-2018

Compassionate Capitalism and Credit Unions – Courtney Campbell on TJBS

The compassionate capitalist

In 2002, David Bonderman, founder of Texas Pacific, one of America’s leading private-equity firms, marked his 60th birthday with the “Most expensive bash in Las Vegas history”, treating 300 guests to performances by Robin Williams and the Rolling Stones. Last month, Apax Partners, a leading European private-equity firm, hired the National Gallery in London for a classier do to mark the 60th birthday on August 1st of Sir Ronald Cohen, and the “Moving on” of a man who co-founded the firm in 1972. Some 200 guests were wined, dined and entertained among the Old Masters by the great pianist Alfred Brendel, long a friend of Sir Ronald’s. Sir Ronald is altogether more sophisticated and urbane. On both sides of the Atlantic, private-equity firms manage funds that buy big controlling stakes in firms, sometimes taking public firms private. Private-equity firms have mostly struggled with succession, says Josh Lerner of Harvard Business School. In the late 1990s, he and Apax’s other partners started to discuss how the baton could be handed on to the next generation of leaders in a timely, efficient way that let the departing partners take money out without seriously weakening the firm. A new strategy requiring generalists in Apax’s leveraged transactions group to specialise in a particular industry has not been greeted with universal enthusiasm within the firm. Sir Ronald is now expected to devote his energy to two causes long close to his heart. Sir Ronald believes that economic growth for the Palestinians is crucial if there is to be lasting peace with Israel. In 2000 Mr Brown put Sir Ronald in charge of a “Social Investment Taskforce” that made various proposals to foster private investment in economically-deprived parts of Britain. In April, Sir Ronald hosted a brainstorming session for financial experts at Oxford’s Said Business School to discuss his dream of creating a “Diverse and productive social investment marketplace”-put simply, to ensure that capital is far more efficiently generated and allocated to non-profit businesses and “Social entrepreneurs” with innovative ideas.

Keywords: [“Ronald”,”firm”,”Sir”]
Source: http://www.economist.com/node/4246751

Facing job cuts, IT needs capitalism in mind, socialism in heart: Narayana Murthy

The future could be very different and NR Narayana Murthy, the father of Indian IT industry and founder of Infosys, has a prescription for the industry in these tough times. “I don”t want to go into what is happening in specific companies, but if your philosophy of compassionate capitalism is clear and if you operate on that philosophy, then it becomes simple to lessen the pain of middle and lower-level employees. At the same time, I also realised that capitalism will only succeed if the leaders of capitalism demonstrate self-restraint in allocating a disproportionate part of wealth generated to themselves. I also realized that in a poor country like India if capitalism has to become acceptable and has to be embraced by a large section of our society, then the leaders of capitalism have to eschew vulgar display of wealth. In the interest of enhancing confidence in capitalism, we, the leaders of capitalism, must embrace compassionate capitalism. That is capitalism in the mind and socialism at heart – or, capitalism based on fairness, transparency and accountability. In every decision we, the leaders of capitalism, take, we have to ask whether our decision will enhance the respect for us in the eyes of our younger employees and whether respect for our corporations will be enhanced in the eyes of the society. If we follow these principles, I believe, we will be in a position to save capitalism from premature death in India and bring the benefit of capitalism to the vast majority of Indians. A lot of observers and industry observers claim that the industry has collected a lot of “Flab” over the years as companies benefitted by simply adding people in time and material projects, where clients paid on the number of hours clocked by the employee. The challenge for our industry leaders is to create new markets and create new opportunities and jobs in the scenario of changing technologies. It is very important for leaders of capitalism to be fair to their younger colleagues when the issue of retrenchment comes. All of us have to practice capitalism in mind and socialism in heart.

Keywords: [“capitalism”,”industry”,”employee”]
Source: http://www.moneycontrol.com/news/business/companies/facing-job-cuts-it-needs-capitalism-in-mind-socialism-in-heart-narayana-murthy-2294675.html

Indians are price sensitive and so are some of its founders, like Narayana Murthy, Chairman Emeritus of Infosys, who is calling for a value-based compensation system for senior management. In keeping with his stand, Murthy absented himself from a board meeting where a resolution was passed to increase the salary of Chief Operating Officer UB Pravin Rao. The dust from the battle between Infosys founders and the board – over the compensation paid to Rajiv Bansal, former Infosys CFO, on his exit from the company – had barely settled when Murthy spoke up against Rao’s 35 percent pay hike of Rs 12.5 crore. This is going to have far-reaching consequences on the company’s brand capital. Either way, Infosys and its employees are sure to be looking at this drama very closely. He has praised Pravin Rao for being an Infosys loyalist but questioned his acceptance of such a high salary. He says as a founder, in Infosys’ early days, he let the juniors take more to add credibility. “I have always felt that every senior management person of an Indian corporation has to show self-restraint in his or her compensation and perquisites. He or she has to fight for maintaining a reasonable ratio between the lowest salary and the highest salary in a corporation in a poor country like India. The board has to create a climate of opinion for such a fairness by their actions.” The chairman emeritus also called for compassionate capitalism. “The board has to create a climate of opinion for such a fairness by their actions. This is necessary if we have to make compassionate capitalism acceptable to a majority of Indians who are poor. Without compassionate capitalism, this country cannot create jobs and solve the problem of poverty.” With damage at every level, Infosys has had an inauspicious start to the year, and maybe there are yet more skeletons to come out of the closet. That said, the stock markets would want the company to sort out its governance issues and focus on what’s truly important – growing the business.

Keywords: [“Infosys”,”salary”,”board”]
Source: https://yourstory.com/2017/04/infosys-compassionate-capitalism/

J.R.’s Zaphne Blog News for 01-30-2018

Aloe Blacc — Is Compassionate Capitalism Possible?

Berkshire’s Warren Buffett Shows His Teddy Bear Image Has Tough Side

Mr. Buffett’s avuncular ways often disguise another truth: He isn’t always a cuddly teddy bear. At another point, Mr. Buffett said: “Efficiency is required over time in capitalism.” Mr. Buffett’s longtime friend and Berkshire’s vice chairman, Charlie Munger, went even further, suggesting that if businesses did not seek to be as efficient as possible, they would end up like those in the Soviet Union, declaring, “They pretend to pay us and we pretend to work.” The whole economy “Didn’t work,” he said. Investors have long viewed Berkshire’s culture as a special form of compassionate capitalism. Part of Berkshire’s business strategy has been to be a friendly “Home of choice for the owners and managers of many outstanding businesses.” As a result, Berkshire has been able to acquire family-run businesses at lower prices than they might command from other companies. Mr. Buffett once said, “We delegate almost to the point of abdication.” Some Berkshire investors appear to be forgetting that Mr. Buffett, when pressed, has made some very difficult business decisions that involve large layoffs. Just consider NetJets, the fractional private jet company that Berkshire acquired in 1998. While Berkshire is known for owning many family businesses, in truth, the biggest parts of Berkshire are now dominated by large businesses like the insurance giant Geico and the railroad company BNSF. Berkshire’s home office, as Mr. Buffett pointed out, is a model of efficiency: It has only 25 employees. Some shareholders might be surprised that Mr. Buffett can be hard-nosed, but he makes it pretty clear in his annual report when discussing what makes Berkshire such an attractive home: “The company’s people and culture will be retained.” Berkshire’s newfound partnership with 3G gives Mr. Buffett an opportunity to invest in companies that he has historically tried to avoid: troubled businesses in need of turnarounds. Happily for Mr. Buffett, it will be 3G, not him, getting its hands dirty.

Keywords: [“Berkshire”,”Buffett”,”businesses”]
Source: https://www.nytimes.com/2015/05/05/business/dealbook/berkshires-warren-buffett-shows-his-teddy-bear-image-has-tough-side.html

Compassionate Capitalism

Just as our culture falsely draws a sharp line between ethics and business, it also draws a sharp line between life and business. The people in Robinson’s imagined community are all harmoniously interwoven, so that all political and business decisions are made communally. Our culture, with its strange dual reverence and hatred for business, seems to regard it as a superior plane of existence, bound by its own rules which are not that of the democratic world. Why? “Because if they want to come here, they should play by our rules.” But then, on the same theory, why can’t a community tell a business not to enter unless it plans to keep its promises? Why is it acceptable in the spirit of free enterprise to make a community dependent on a single enterprise, then abandon it when “Shareholder value” dictates? I am not arguing here that we must always substitute legal for moral rules, but why don’t we at least see a mass layoff typically as a shockingly immoral act? The most important is the one I keep harping on: we uncritically regard business as functioning by rules of its own that precede our everyday morality in importance. We have gotten out of lines of business before, but we have always managed to redeploy people rather than fire them. Because a business is a community, loyalty to one another is more important than perfection. A succcessful business, like any other community, is a alchemical concoction. More often than we see, the morally correct decision in business often happens to be the strategic one as well. There are four constituencies which must be considered in the management of any business: the owners, the employees, the customers, and the public. Another way of looking at business is that many businesses are only profitable if we ignore the costs which are paid by other people. The strange lens through which we regard business, the principle that it is an “Older brother” of democracy free from any rules, usually dictates that third party costs of business activities are either officially ignored, left to rest on the affected individuals themselves, or are paid by the taxpayers.

Keywords: [“business”,”work”,”own”]
Source: http://www.spectacle.org/497/dem.html

On Murthy’s compassionate capitalism, global thinkers say exec greed must be controlled

BENGALURU: NR Narayana Murthy’s compassionate capitalism philosophy has received support from several US based management experts and thinkers. Vijay Govindarajan, Coxe distinguished professor at Tuck at Dartmouth, US, said he firmly believes in capitalism, but not in greed. A company’s purpose, he said, cannot be to maximise financial returns; the purpose has to be to do good. Its CEO compensation is not 500 times that of the steel worker, as is typical in other Fortune 500 companies. Govindarajan said other companies following compassionate capitalism – Narayana Health in India and Whole Foods in the US – are all very successful. This is necessary , he said, to make compassionate capitalism acceptable to a majority of In dians who are poor. “Without compassionate capitalism, this country cannot create jobs and solve the problem of poverty. Experts tell me that capitalism may come to an end in the not-sodistant future if the current corporate leaders do not heed this advice in India,” he said. Seth Godin, American author, entrepreneur and marketer, said it’s a myth that there’s a talent shortage among CEOs for the largest companies. Asked if one company can afford not to go with the flow, Godin also said it was. “I do not know what compassionate capitalism is, but unless it is being used in a self-serving manner, one could argue that beyond wage ratios, it should include the wealth creators following the footsteps of Bill Gates and Warren Buffet and giving away their entire wealth to charity in their lifetimes,” Kumar said. Kumar said the bigger issue today is that there is a board of Infosys who should be allowed to run the company. “As shareholders, you can vote out the board if you do not like their decisions. The problem with people like Ratan Tata and Narayana Murthy is that they step down but still want to remote control the company. Well, in that case, do not step down. Instead, continue to shoulder the responsibility and work that comes with being in charge. It is against all good corporate governance norms,” he said.

Keywords: [“company”,”capitalism”,”compassionate”]
Source: http://timesofindia.indiatimes.com/business/india-business/on-murthys-compassionate-capitalism-global-thinkers-say-exec-greed-must-be-controlled/articleshow/58002099.cms

J.R.’s Zaphne Blog News for 01-30-2018

Inside Secrets to Angel Investing and Compassionate Capitalism

Conscious Capitalism Definition

A way of thinking about capitalism and business that better reflects the current state of the world and the potential of business to make a positive impact on it. The concept of Conscious Capitalism was popularized by John Mackey, Whole Foods cofounder and co-CEO; and Raj Sisodia, professor of marketing at Bentley University, through their book Conscious Capitalism: Liberating the Heroic Spirit of Business. Mackey and Sisodia are also the cofounders of the nonprofit organization Conscious Capitalism, Inc., which has local chapters in 18 U.S. cities nationwide, as well as eight other countries. The principles of Conscious Capitalism have been adopted by a growing number of companies including Whole Foods Market, Starbucks, Container Store and Trader Joe’s. The Conscious Capitalism credo acknowledges that while free market capitalism is the most powerful system for social cooperation and human progress ever conceived, people can aspire to even more. It builds on the core foundations of capitalism such as voluntary exchange, entrepreneurship, competition, freedom to trade and the rule of law, by adding elements like trust, compassion, collaboration and value creation. Conscious Capitalism does not abjure the pursuit of profit, but emphasizes doing so in a manner that integrates the interests of all major stakeholders in a company. Towards this objective, Conscious Capitalism is based on the following four guiding principles -. Higher Purpose: A conscious business focuses on a purpose beyond pure profits, and in doing so, inspires and engages its stakeholders. A conscious business will focus on the whole business ecosystem in order to create and optimize value for all of its stakeholders. Conscious Leadership: Conscious leaders emphasize “We” rather than “Me” to drive the business, and strive to cultivate a culture of Conscious Capitalism in the enterprise. Conscious Culture: Corporate culture is the sum of the values and principles that constitute the social and moral fabric of a business; a conscious culture is one where the principles of Conscious Capitalism permeate the enterprise, fostering a spirit of trust and cooperation between all stakeholders.

Keywords: [“Conscious”,”capitalism”,”business”]
Source: https://www.investopedia.com/terms/c/conscious-capitalism.asp

compassionate capitalism?

These consequences are at the heart of Daniel Golemans timely new book, Social Intelligence. Innocently beginning as an expos of social neuroscience the new science of human ecology Golemans book. Similar to sociobiology, a framework introduced by E. O. Wilson in 1975, social neuroscience examines the interplay between universal, adapted physiology and social organization, emphasizing but not restricted to human ecology. In the past, this was the domain of social psychology, but with the advent of neuroimaging technology, we can now explore the inner workings of the mind while it processes social information, such as ideas about what others are thinking and doing. The high/low metaphor is also useful for framing social intelligence, which Goleman characterizes as a combination of social awareness and social facility. Although social intelligence is governed by adapted physiology, Goleman is careful to avoid the pitfall of genetic determinism. At the individual level, we can apply the principles of social neuroscience to everyday life, cultivating social awareness and facility at home and work. If we know, for example, that population density decreases educational opportunity, or that excessive work-hours increases anxiety and in turn long-term health consequences, we can obviate these problems by developing social neuroscientifically informed public policiesin other words, social neuroscience is a vehicle for euthenics. To be sure, one of the most important themes of Golemans book is how to restructure social institutions, such as hospitals and businesses, so they do not clash with human nature. Assuming, along with Goleman and Weinberg, that there is a link between economic models and everyday life, between the mantra of perpetual growth and ever-increasing social stratification and iniquity, then clearly we have a major problem on our hands. So whats to be done? Now that neuroscience can put numbers to that raw buzz of fellow feeling, quantifying its benefits, writes Goleman, we must pay attention to the biological impact of social life. Despite its many shortcomings and oversimplifications, Social Intelligence contains the seeds for social reform.

Keywords: [“social”,”Goleman”,”emotion”]
Source: http://www.entelechyjournal.com/zachnorwoodgoleman.htm

The New Capitalism: The Greater the Compassion, the Greater the Profit Bob Murray* and Alicia Fortinberry* An organization not showing compassion, that does not look to what its workers really need in terms of their basic psychological drivers, will never get the support needed for cost containment or any major strategic initiative. On top of that is a massive disengagement and alienation that prevents people from working at their best or even, particularly in the case of clever Gen Y people, from wanting to work for these organizations at all. 43 not believe that these businesses care about them, they do not trust the leadership and they want more out of life than just working to make other people, especially Fortune 500 CEOs and shareholders, rich. XVI, No. 2, 2013 general definition is to look at the four main reasons why people come to work in the first place. To Relate: People work for the same reason they join clubs or associations(Maslow, 1998), in order to form a social grouping with other human beings and avoid isolation. So people come to work to learn, to prevent mental decay. As relationships at work become more solid, the desire to defend widens to include the team at work and, by extension, the organization. According to new research, the move towards working from home, though generally supported by many workers, may in the end lead to more social isolation and more stress. Many in fact confess to us that not only do they fail to give adequate recognition at work more often than not, they withhold it from their families. These are the very people whose hands are on the tiller and whose brains need to be working most strategically and innovatively! Compassionate capitalism would do well to begin with establishing a multidirectional culture of praise. People will work hard for a while under threat, but overall they do their best when they feel safe and supported. 7 An organization not showing compassion, that does not look to what its workers really need in terms of their basic psychological drivers, will never get the support needed for cost containment or any major strategic initiative.

Keywords: [“work”,”people”,”organization”]
Source: http://fortinberrymurray.com/wordpress/wp-content/uploads/2012/02/The-New-Capitalism-The-Greater-the-Compassion-the-Greater-the-Profit-Jun2013-Effective-Executive.pdf

J.R.’s Zaphne Blog News for 01-30-2018

Compassionate Capitalism – Value Creation

Access to Capital for Entrepreneurs, Compassionate Capitalism and Local Community Publications

Access to Capital for Entrepreneurs Inc. Maria Peck, previously the director of the ACE Women’s Center, will lead one of ACE’s biggest projects slated to begin this year. “After three years of serving in the community as director of the ACE Women’s Business Center, I’m eager to have an impact on the local Hispanic community’s business growth by helping provide better access to capital,” says Peck. Peck’s focus will be on providing access to commercial loans of $50,000 and greater and being visible in the Hispanic community by giving presentations and collaborating with other organizations. Peck started working at ACE as a microlender after working with ACCION USA, owning her own business, and gaining more than 15 years of sales and marketing experience in Atlanta and New York. About Access to Capital for Entrepreneurs Inc.ACE is a 501(c)(3) nonprofit and CDFI loan fund that provides loans and business consulting services to help borrowers throughout Metro Atlanta and North Georgia create and grow stable, sustainable businesses that generate jobs. What communities/cities/counties will you be working with?Tell us more about what types of loans ACE provides to entrepreneurs? Karen has been described by some as a dominant force in the entrepreneur and investor markets with her blog, published articles, frequent speaking engagements, and her Compassionate Capitalist radio show. She has been a frequent speaker and mentor within numerous Small Business and Economic Development initiatives and was the recipient of the Advocate of the Year award in 2016 at the Flight to Freedom Summit in San Ramon, California, for her work to promote Compassionate Capitalism. Karen left the corporate world over a decade ago, having been involved with many product launches, to pursue her passion for seeing innovation funded and to help the entrepreneur and investor community she served create thriving businesses. Karen immersed herself in the world of angel investing, first as the protégé to the founder of the Network of Business Angels. The power of microtargeting to a businesses exact demographic by supporting their local community publication. The power of content branding and the opportunity to be the only business in their industry to be allowed to submit content for the duration of their sponsorship.

Keywords: [“Business”,”entrepreneur”,”ACE”]
Source: http://probusinesschannelusa.com/buckhead-business-show-access-to-capital-for-entrepreneurs-compassionate-capitalism-and-local-community-publications/

Understanding the debate around ‘compassionate capitalism’

NR Narayana Murthy has flagged the issue of distributive justice in corporate India – the widening gap between the top earners and the bulk of those lower down, especially at a time when the economy is slowing. Since Sikka made his announcement on August 18, a wider debate has raged over whether a founder who has stepped down and is not a dominant shareholder, ought to indulge in the kind of public campaign that NRN mounted – rather than making an unambiguous choice between total detachment and committing himself to addressing Infy’s challenges as part of the board. The debate has also touched on issues of conformity to a company’s core cultural values and ethos. Murthy has flagged the issue of distributive justice in corporate India – the widening gap between the top earners and the bulk of those lower down, especially at a time when the economy is slowing. Beginning 1994, Murthy’s ideal of the “Democratisation of wealth” saw practical manifestation in the granting of stock to company staff down to the level of drivers, and went on to contribute to a culture of donations from personal wealth by all the founders of the company. Compensation for the top deck has continued to soar higher above the company median in some of India’s celebrated private banks – at least one of which, interestingly, had an Infy-like culture of granting stock until some years ago. The National Stock Exchange of India Ltd was in a controversy regarding payouts to top executives. The counter-argument, of course, is that these practices are not illegal, and have the sanction of the board of directors and shareholders. In his annual letter to shareholders in 2006, Buffett made the point that compensation reform will only occur if the largest institutional shareholders demand a fresh look at the system. In India, the largest shareholder is LIC, which is owned by the government. Regulators in India have been careful not to intervene – even though the central bank has, in the past, shot down proposals from private and foreign banks to offer sign-on bonuses and parachutes designed to protect bosses who are fired. That’s the question shareholders – especially institutional shareholders – must put to those on the boards and the compensation and audit committees of many Indian firms.

Keywords: [“India”,”company”,”shareholder”]
Source: http://indianexpress.com/article/explained/understanding-the-debate-around-compassionate-capitalism-n-r-narayana-murthy-infosys-vishal-sikka-n-r-narayana-murthy-4805857/

Tea and Empathy with Daniel Goleman

If anyone deserves credit for bringing about this change in corporate culture, it’s Daniel Goleman. A former Harvard psychologist turned science reporter for the New York Times and then best-selling author, Goleman popularized the concept of “Emotional intelligence” in the mid-1990s. “Dan Goleman gave social intelligence a name, he codified it, and he broke out the elements in a usable way,” says Suzy Welch, former editor of the Harvard Business Review and coauthor, with her husband, Jack Welch, of Winning. Though some people think of his work as promoting artifice, by teaching people to suppress their genuine feelings, Goleman argues that emotional and social intelligence cannot be counterfeited. In the 1980s, several psychology researchers began using the term emotional intelligence in published work; Goleman encountered it in a 1990 article by Yale psychologists Peter Salovey and John D. Mayer. At the mention of “Emotional intelligence,” a scholarly conference can erupt into booing, and entire Web sites are devoted to criticizing Goleman as a self-promoter. “One thing Goleman doesn’t talk about is that being put in a position of power drains the emotional intelligence from most people,” says Robert I. Sutton, professor of organizational behavior at Stanford University’s Graduate School of Business and the author of The No Asshole Rule: Building a Civilized Workplace and Surviving One That Isn’t. The counterargument, put forth by Goleman and his colleagues, is that the practice of building emotional intelligence in individuals ripples out to change the larger corporate culture. Odyssey of a Participant-ObserverThe value of social intelligence was apparent to Dan Goleman early in his life. The runaway success of Emotional Intelligence changed the lives of everyone involved, even the people whose work Goleman briefly described within. Goleman quit writing for the New York Times to focus on books and cofounding a new research organization: the Consortium for Research on Emo­tional Intelligence in Organizations. In addition to CREIO, Goleman cofounded the Collaborative for Academic, Social, and Emotional Learning, or CASEL, which is focused on programs for preschool through high school.

Keywords: [“Goleman”,”emotional”,”intelligence”]
Source: https://www.strategy-business.com/article/08308?gko=b3d2e