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Overcoming the crisis, a question of responsible hands

Published by under Articles,Politics / Management categories on October 10, 2008

Manager using binoculars to capture a "photo" of futureCrisis is in the air; old economical corporations are trembling upon lack of confidence within the epicentre of the financial tsunami, which might be originated by the management of many corporations influencing economy, using to look just to short term economic revenue as almost unique guidance of corporate government practices.

What are the implications within the society and organisations? This “style”  of management became speculative in the way of share holders, the property of companies, were more and more just looking to the share value in the short term, and therefore executive decisions are driven by this “speculative” politics, which seems now quite clear may often mean the lack of long term profitability for the own company/organisations and for our society.

Furthermore, our governments are driven in this way specially in some countries, which is much more harming the society progress than company decisions because of the politician culture which is not driven by long term general interest but by the politic term of 4 years after elections. Why to dedicate to general interest considering longer view than this term, if the evaluation which counts for next election is what is done -and much of demagogic said- within the term? But main/strategic progress of course requires to start now efforts which last much more than a political term.

Behind this status quo, there is a vicious circle sustained by what is evaluated by voters (the political term and demagogy). Education of voters and a change of political drivers are the key to address our progress in the right way beyond the demagogy and short political terms. In addition truly independent auditing of corporate/ government practices is necessary.

Coming back to corporate responsibility in this crisis, banks and other institutions, which were actors of the global crisis because of short term speculative management, have to take their responsibility: their responsibles should be extracted away from corporative management and charged by law because of their responsibility within the corporate management and its consequences in the global crisis, specially if rescued by government funds. Finally our governments are also indirectly responsible for insufficient control over corporations influencing the global economy.

Fundamental changes looking to long term view management and responsibility may be necessary to recover the financial confidence and to avoid repeating such global crisis as much as possible.

Copyright Innova Pulse.


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