Handout 6 Flashcards
(28 cards)
believes that value creation is the purpose of business. He criticizes the shareholder model
Philippe Naert
a theory that focuses on maximizing financial returns on investments with zero regards for customers and employees
shareholder model
proposes that economic and societal values can be pursued at the same time
Naert’s model
shares some commonalities with Naert in his criticism of the shareholder model.
Jeff Van Duzer
Van Duzer proposes that the purpose of business is two (2)-fold:
- To serve customers by providing goods and services that promote human flourishing.
- To serve employees by providing opportunities for meaningful and creative work.
The focus is primarily on customers and the broader community. It highlights the role that business plays in bringing products to markets.
To serve customers by providing goods and services that promote human flourishing.
argues that the ancient wisdom of Hindu scriptures can be appropriated to business practices.
Indira Parikh
It asserts that people should focus on their thoughts and actions rather than the outcomes of those actions.
Bhagavad Gita
Entrepreneurs should never engage in action only for the desire of rewards. Acting on worldly desires leads to failures. Do well, and good things will come
Greed is bad
Enlightened leaders are compassionate and selfless. “They treat everyone as equals.”
Followers will rally around them and follow their example
Be fair
A leader’s actions today can become the “karma” that influences their status tomorrow. Leaders accomplish “excellence by taking action.”
Act rather than react
Leaders should view problems within their larger contexts. Show sensitivity to multiple stakeholders, including shareholders, employees, partners, and neighbors.
Seek higher consciousness
highlighted some of the core concepts of Dharma (natural law), as enshrined in the Indian Shastras (timeless principles)
Dr. Athreya
a righteous duty or the right path to uphold the family and the organizational and social fabric.
Dharma
main principles of Dharma that apply to business
- Loka Sangraha
- Kausalam
- Vividhta
- Jigyasa
the practice of seeking one’s gains and catering to the welfare
of others. It primarily reflects all the stakeholders.
Loka Sangraha (Public Good)
sensible use of resources for future generations. It reflects concern for ecology as well as for stakeholders.
Kausalam (Efficacy)
beyond survival, the business must be the engine of innovation, constantly seeking more effective solutions to meet its economic and social expectations.
Vividhta (Innovation)
change and continuity coexist. Corporate governance must keep learning from the feedback loop from society and through internal processes of questioning, challenging, debating, and training.
Jigyasa (Learning)
embedded in a firm’s business plan, income statements, and cash flow projections. It is a conceptual, rather than a financial, framework
business model
makes implicit assumptions about customers, the behavior of revenues and costs, the changing nature of user needs, and competitor responses. It outlines the business logic required to earn a profit (if one is available to be earned) and, once adopted, defines the way the enterprise “goes to market”
business model
The Six (6) Considerations
- A more personalized product or service
- A closed-loop process
- Asset sharing.
- Usage-based pricing.
- A more collaborative ecosystem.
- An agile and adaptive organization.
Many new models offer products or services tailored to customers’ individual and immediate needs.
A more personalized product or service
Many models replace a linear consumption process (in which products are made, used, and then disposed of) with a closed loop, in which used products are recycled.
A closed-loop process.
