New ideas of corporate purpose are beginning to grow within business practice and education. For example, you may have heard of what are called ‘benefit corporations’ which are one type of innovation that seek to integrate a broader array of objectives than simply profits into its forms of organizing, governance, and statement of purpose. This trend is catching up among MBA students and professionals who challenge conventional thinking around capitalism and corporate purpose. Business leaders are starting to reexamine Capitalism and explore “the limitations of our current capitalist systems” and “how the ‘rules of the game’ by which capitalism is structured should change” to address the social and environmental issues of our day and of your future as a millennial or a GenZ.
The two thoughts that need to be explored further are:
1. Transforming Markets
Market transformation requires a compelling new business model to replace traditional ones that dominate business thinking. For example, all business has been driven primarily by selfishness, and the owner gets the profits. So you know why today less than 1 percent of the world’s population owns 90 percent of the world’s wealth. And why 90 percent of the world’s people own less than 5 percent of the world’s wealth. The 90 percent economy has led to the mess we have in this country today. You are the hope for the future. How do you or can you change this? Why is the millennial or the GenZ largely more motivated to work toward improving the world around us than the older generation which has shown itself to be more self seeking? How do you learn to create the organizational conditions that will foster the kind of activity you aspire to create? How do you create a more committed and effective organization?
2. Shared Values
Part of market transformation we will see into the future is about ‘shared value‘ which aims at redefining business with the competitiveness of a product you offer or a service that is closely tied to the health of the communities in which it is embedded. For eg., water treatment, or local generation of power, or generation of new opportunity in the hinterland for our villages. We have 6 lacs of them in India, while we have only 7000 towns and cities which occupy a mere 3 per cent of the entire land mass of India. A city like Bengaluru is about 500 sq km or a Mumbai at about 1000 sq km or a Delhi at about the same spread. All our towns and cities put together don’t account for more than 150,000 sq km — or about 3 percent of the country’s lands. If business is directed to work on these opportunities of our cities or villages in a way that it’s profitable and defines benefit to people that would be transforming.