Volume 15, Number 4 Article by K Sankaran December, 2003
Learnings in the New Economy - Imperatives of a Civil Corporation :
The imperatives of the new economy demand that the `civil corporation` reinvent itself with a redefined purpose, identity and matching new processes. Organisations will have to take the lead in identifying opportunities wherein their business interests and the larger socio-ecological interest coincide. Zadek`s model of corporate citizenship offers organisations four options. These are: defence (or pain alleviation) or the earmarking of funds for corporate philanthropy, such as the multi-crore trusts of houses like the Tatas and the Birlas; the traditional business case, where corporates can help society as well as themselves financially; the strategic business case through which corporates change existing business models so as to redefine the market; and the new economy business case where businesses coevolve with the communities they operate in.
Corporates will have to forge new learning partnerships with institutions such as NGOs, and participate actively in government- and corporate-led initiatives. Partnerships with NGOs might provide unusual cost-cutting opportunities and enhance social legitimacy, while NGOs in their turn will be called upon to move from ideological rhetoric to strategic roles. In their attempt to incorporate diversity, organisations must learn to create appropriate local-global leadership blends, acknowledge the importance of local knowledge coded in traditional cultural and community practices, and partner with local community initiatives to prevent ecological and environmental disasters.
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