Changing the World
On Friday, the charismatic CEO and founder of Capital One gave a moving speech here about leadership. He touched on several themes, including: 'Don't give up in the face of others' skepticism.' He told the story of his father, who was a physics professor, trying to determine the accuracy of Einstein's Theory of Relativity. The very quest and the test he ultimately devised to find out the truth engendered doubt from many scientists. When asked if he was discouraged, the professor remarked that he didn't know whether the experiment would work, just as other scientists did not know. Only nature knew, and he was determined to hear nature's take. Although he has since passed away, the professor's experiment is being conducted today, 45 years after he thought up the experiment.
Another theme of the speech was that leaders inspire others by communicating a vision straight from the heart about changing the world. He mentioned the example of the owner of a KoolAid stand who proclaims confidently that his stand will change the practice of retailing in his community.
This speech and an MBA ethics class I'm taking now have me thinking about how I want to change the world. Here are a couple of ideas/propositions:
1. Most businesses do provide societal benefits and improve peoples' lives by productively investing resources, providing returns to shareholders, providing livelihoods for employees, supporting supplier businesses and by providing value to customers.
2. While providing such value, many businesses' core operations do not impact global society's most pressing issues, those problems which cause the greatest amount of suffering (poverty, lack of education, lack of healthcare, war, environmental degradation, etc.).
3. Companies can profitably invest capital to contribute towards solutions for such problems, albeit possibly at a lower return than if invested in other areas. A career devoted to such companies might not maximize lifetime income, but could still provide a high level of income, and more utility/satisfaction for me or you, than other potential options.
4. The institution of business is in a better position than other entities to solve these problems due to discipline that leads to sustainability and scalability of operations.
One might argue that businesspeople who aim to maximize positive impact should earn as much money as possible and give much of it to NGOs. However, due to proposition #4 above, businesses are better equipped to create such impact than NGOs. The goal is to create businesses that have profit motives aligned with impacting the world's most serious concerns. Any ideas???
In other news, I've discovered that wineries are fun, and that I am evolving into a real Californian: I eat turkey sandwiches simultaneously smothered in mustard and mayonnaise!
Another theme of the speech was that leaders inspire others by communicating a vision straight from the heart about changing the world. He mentioned the example of the owner of a KoolAid stand who proclaims confidently that his stand will change the practice of retailing in his community.
This speech and an MBA ethics class I'm taking now have me thinking about how I want to change the world. Here are a couple of ideas/propositions:
1. Most businesses do provide societal benefits and improve peoples' lives by productively investing resources, providing returns to shareholders, providing livelihoods for employees, supporting supplier businesses and by providing value to customers.
2. While providing such value, many businesses' core operations do not impact global society's most pressing issues, those problems which cause the greatest amount of suffering (poverty, lack of education, lack of healthcare, war, environmental degradation, etc.).
3. Companies can profitably invest capital to contribute towards solutions for such problems, albeit possibly at a lower return than if invested in other areas. A career devoted to such companies might not maximize lifetime income, but could still provide a high level of income, and more utility/satisfaction for me or you, than other potential options.
4. The institution of business is in a better position than other entities to solve these problems due to discipline that leads to sustainability and scalability of operations.
One might argue that businesspeople who aim to maximize positive impact should earn as much money as possible and give much of it to NGOs. However, due to proposition #4 above, businesses are better equipped to create such impact than NGOs. The goal is to create businesses that have profit motives aligned with impacting the world's most serious concerns. Any ideas???
In other news, I've discovered that wineries are fun, and that I am evolving into a real Californian: I eat turkey sandwiches simultaneously smothered in mustard and mayonnaise!
posted by cali mba | 9:42 PM
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