Corporations, Organisations and Social Obligations


Spreading the risk…..A very common concept in life.

This common concept is often forgotten in the most man-made catastrophes…Malcom Gladwell’s ‘The New Yorker’ magazine article from August 2006, has a very interesting view of the troubles that General Motors faces here

Protection from social risks associated with life , death , health and disasters are better covered when offset against the largest population available. Commercial entities and organizations can never claim to represent such breadth of population. They can very rarely spread their risks in complementary areas. Except a few multinational conglomerates like GE, most organizations have exposure to a certain type of business, or certain set of horizontally or vertically integrated opportunities. Hence, the notion that a business organization should support social liabilities related to life, death, health or disasters is unfair and unbalanced. I use the word ‘support’ in deference to the word ‘ contribute’. Yes, Business and in fact any social entity should contribute a proportionate share to social liabilities. But they should never be allowed or be asked to support complete structures of social liability.

Having said that..social responsibilities like education, environment and research are best supported through combined efforts of business and local governance. These are best managed in goal centered organisations and are forward looking opportunities for both businesses and communities.

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~ by exploreamaze on September 8, 2007.

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