Home » Posts tagged 'integrity'
Tag Archives: integrity
Most business policies focus on welfare and growth communities because that is where the money goes around. Hardly any of the business plans involve the markets of the poor. The companies that do actually included those markets structurally in their policies tend to score better on the Multidimensional Index of the 5K Group. Why is that?
There is nothing noble about combating poverty. It is good business practice. During the credit crisis we have seen the down fall of big, so called “solid”, institutions s.a. banks due to a moral crisis rather than financial. Typically this moral crisis was caused over the backs of the financially unstable and unwealthy. Does this indicate a contradiction in my argument? Not at all.
The risktaking of the banks by entering bad credit zones was caused by greed and self interests of high level executives who covered their backs by insuring bad credits with others misplacing the trust relationship in the chain. As the entire chain was based on the same material principles of greed the business was a pure speculation that unnoticed inflated the ballon of risk until it exploded into the face of the world. One can hardly argument that all this was a policy to help the poor.
When we design a policy to develop markets with poor people we do that from the moral multidimensional principle of the ideal market development through healthy and motivated people. To achieve this poverty needs to be eradicated from the entire world. We do not talk only about poverty in complex, unstable, tribe oriented third world countries. We talk also about the growing poverty in the rich welfare countries. When a company decided to address this market too, not just by making products available to it but by truely developing a strategy to address the issue effectively, it shows moral integrity. Nobody will ask the company to finance such development our of their own pocket because such strategies of sensitivity to the reality of the world finds many partners in government, institutions and foundation to join forces for a common goal.
The willingness to address such markets by connecting with other organizations and creating serious policy shows and develops an authentic and responsible company culture that is filled with sense and that subsequently will radiate also into the wealthier markets where competition is strong and one does not distinguish anymore through price or quality but with company integrity and authenticity. And this is the basis of any sustainable success and therefore the reason for a company to score high in our Index.