Robin Hood is Ba(ra)ck!

Is Barack Obama the Robin Hood of our times? Look at this man, stuck in a world of capitalists, but doing his best to get the wealth distributed.

Sustainability is his mantra! Not because he is pitching for clean energy via wind turbines, solar panels only but for also asking the corporate to be more responsible towards the society and environment as well. Making them spend the moolah* they have raked in over the last 100 years!

His speech at the Jt. Session of Congress evoked a flurry of responses in all the news channels and business newspapers. All the capitalists of new India cloaked in the disguise of “entrepreneurs” crying foul! US capitalists dwarfed us Indian’s by getting their own Bobby in Washington DC to lead the clarion call within minutes of the president’s speech!

Capitalists fear him and I too am fearful. There is a difference though. I am afraid that the one sensible guy whom we have found after almost a century to champion the cause of common man might be “silenced”! I wish and pray for the well being of Obama and his family.

This article is an unconventional didactic exegesis! So, it’s going to be a long one. And also, let me warn you, if you are not an Obama fan, you might just want to drop off here or dig in and comment your rebuttal!

“The fact is, our economy did not fall into decline overnight. Nor did all of our problems begin when the housing market collapsed or the stock market sank…we import more oil today than ever before…The cost of health care eats up more and more of our savings each year,…And though all of these challenges went unsolved, we still managed to spend more money and pile up more debt... we have lived through an era where too often short-term gains were prized over long-term prosperity, where we failed to look beyond the next payment, the next quarter, or the next election.”

How true? Didn’t we all know that Americans lived their life by the day? Is he wrong in coming out in public and admitting it? He just ripped off the band-aid buddy, nothing more!

“A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future… Regulations - were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn't afford from banks and lenders who pushed those bad loans anyway.”

Have you heard this from any of the banks who lent irresponsibly or the people who took them? No! Instead we were immersed in a usual US media blitz on “Subprime Mortgage crisis” – After all what can we expect from a country that calls its jails as “correction facilities” and killing innocent civilians as “collateral damage”. The common American was all along kept away from harsh realities by flooding him with such jargons which anyway the high school drop out wouldn’t understand. Their life was watched the world over as the biggest “True man show” ever! The Americans also were so gullible and at times I should say were high on grass!

“…they will be held accountable by me and the American people for every dollar they spend… I've appointed a proven and aggressive inspector general to ferret out any and all cases of waste and fraud…” which means nobody and nothing was ever held responsible in US. Some one said, “Nothing is guaranteed in the US but everybody gets a chance, but, not all get a chance in the UK, but once they do, it is guaranteed!” – So typical of the American lifestyle, which by the way they take pride in calling it “Our way of life” – what the heck! Here is a man who has never used this phrase! A man who criticizes with an open heart, the same “way of life” which has brought them to where they are today!

Read on, do you now wonder if Robin Hood is back?

“…It's a plan that won't help speculators or that neighbor down the street who bought a house he could never hope to afford, this time, CEOs won't be able to use taxpayer money to pad their paychecks, or buy fancy drapes, or disappear on a private jet. Those days are over…”

“…It is time to put in place tough, new common-sense rules of the road so that our financial market rewards drive and innovation and punishes shortcuts and abuse…”

“…In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2 percent of Americans…”

And here comes the clincher!

“…I do not accept a future where the jobs and industries of tomorrow take root beyond our borders…”

I say, Robin Hood is Barack!

There are two things which I want to talk about, especially on the clincher. Obama is not against outsourcing. He suggests that any new technology / innovation done BY an American company, needs to happen in the US. This is fairly simple. He is willing to provide tax benefits for such firms and encourage them to utilize the resources of his country. In fact he is pitching to the big businesses to do work in the US and get rewarded as well for that.

Secondly, did you know that US business conglomerates are so big that their value is more than that of GDP of some of the nations put together and in certain cases equal to the GDP of some of the biggest developing nations? These businesses have moved from the US to cheaper cost of production locations and are charging a bomb from the other US businesses located in US. On top of that every year, these big companies, gross 300$ Billion from their “offshore” locations and take that money back into the US by paying a paltry 5% tax to the US Gov. In such scenarios, all he is suggesting is that he will not provide a tax heaven anymore and just pay the 35% corporate you are supposed to pay!

OK, incase you are the ‘Joe the plumber’, let me simplify it for you.

1. US companies (IBM, Accenture, Mc D, Pepsi, PWC, Mc Kinsey etc.,) had reached a saturation point in the US market.
2. The US Gov told the businesses, “You go out and start off your business in offshore locations, get more revenues and when you bring the money back into US, instead of paying 35% corporate tax, pay me just 5% tax. I will allow you to do this for a long, long time and you bring back wealth into America.”
3. These companies utilized the opportunities and ventured out.
4. When they realized the potential of countries like India (Services) and China (Manufacturing), they started shipping jobs to India and got a cost arbitrage and also utilize the tax haven in their country.
5. Double whammy** as they call it in US, Joe!

Now, for Indian “Ramu the IT guy”… I am sure you would have been immersed in the principle that offshore / onsite model, travels, free trade, global market, share market stories by now. Also, am pretty confident that you would have wanted to multiply your money and invested heavily in share markets! Suppose you had the shares of HLL (Hindustan Lever Ltd.,) which is a subsidiary of Unilever (UK). You would be glad that you invested in a multi-national company and since you are receiving dividends you would have become an advocate of free trade. If you carefully examine what the Unilever’s of the world are doing, you will realize that they are swindling money from your country (read India) mate!

Again, let me simplify it for you. It is day time robbery my friend! When HLL announces dividends, being the largest shareholder, Unilever (UK) gets money. It goes back to UK or if it were a US company it goes back to US. Poor Gov of the UK/US, in a move to encourage their so called entrepreneurs in a free trade practice, had announced that they can bring back the capital at 5% interest rate. Finally, the money lands in the company coffers and the CEO’s and top brass burp it away over champagne in a private jet somewhere in the south of Europe in a Mediterranean island with their girl friends! The point to note is that they are not investing enough money back into the country where they are consuming their resources from and also not paying appropriate taxes to their motherland as well! Double Whammy buddy!!

This guy Barack Obama, the US President, a sensible guy, finally, is not sticking up to his capitalist friends. He is talking about common sense and common people.

Look at the people whom he got inspiration from. Leonard Abess, a bank president from Miami who reportedly cashed out of his company, took a $60 million bonus, and gave it out to all 399 people who worked for him, plus another 72 who used to work for him, Greensburg, Kansas, a town that was completely destroyed by a tornado and its story of reconstruction, Ty'Sheoma Bethea, the young girl from that school he visited in Dillon, South Carolina who wrote a letter to his administration that she wants her school restored back!

He is trying hard to bring in the “Change” he promised. Unlike our Indian government he is not throwing “spare change” to the common man like farm loan waiver, fuel price cuts, some petty tax cuts, in the garb of stimulus plans. Our CEO’s and financial analysts need to wake up to the fact that he is the President of United States of America and not this planet!

I have confidence after listening to his speech that he will bring back the American economy to track! In his own words, in this very same speech says, he will restore faith in G 20 nations regarding American economy, “…for the world depends on us having a strong economy, just as our economy depends on the strength of the world's…”!

Let’s say “We want Change!” – Hail Barack - Robin Hood of our times and the true sustainability champion!

- Ciao

* Moolah – In Hindi translates to pile of cash/capital

** a twofold blow or setback (en.wiktionary.org/wiki/double_whammy)

Linked in!

Dear fellow evangelists!

I have started a new group called Sustainability Evangelists in Linked in! Tried my hand at creating a logo for us!... Here it is and hope you like it!

Look forward to your membership in the group!

I would like to take this opportunity to invite you all to contribute your thoughts, opinions, ideas on Sustainability and if possible specifically on Corporate Sustainability!

Thanks,
- Sundar

Corporate Sustainability!

From Wikipedia:

Corporate sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.

Corporate sustainability is an evolution on more traditional phrases describing ethical corporate practice. Phrases such as corporate social responsibility (CSR) or corporate citizenship continue to be used but are increasingly superseded by the broader term, corporate sustainability. Unlike the other phrases that focus on “added-on” policies, corporate sustainability describes business practices built around social and environmental considerations.

The phrase is derived from two keys sources. The Brundtland Commission’s Report – Our Common Future which described sustainable development as, “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. This desire to grow without damaging future generations’ prospects is becoming more and more central to business philosophies.

Within more academic management circles Elkington (1999) developed the concept of the Triple Bottom Line which proposed that business goals were inseparable from the societies and environments within which they operate. Whilst short-term economic gain could be chased, a failure to account for social and environmental impacts would make those business practices unsustainable.

It is the inclusively of the term that makes it so attractive to business looking to fundamentally change the way they deal with social and environmental issues.

More frequently, companies focused on sustainability are appointing a Chief Sustainability Officer leading a department with a mandate to proactively develop and implement a corporate sustainability strategy. Corporate sustainability is an area where companies collaborate with competitors sharing ideas and tips using professional networking communities like Viridus.

Definition:

From Wikipedia:

Sustainability, in a broad sense, is the ability to maintain a certain process or state. It is now most frequently used in connection with biological and human systems. In an ecological context, sustainability can be defined as the ability of an ecosystem to maintain ecological processes, functions, biodiversity and productivity into the future.

Sustainability has become a complex term that can be applied to almost every facet of life on Earth, particularly the many different levels of biological organization, such as; wetlands, prairies and forests and is expressed in human organization concepts, such as; ecovillages, eco-municipalities, sustainable cities, and human activities and disciplines, such as; sustainable agriculture, sustainable architecture and renewable energy.

For humans to live sustainably, the Earth's resources must be used at a rate at which they can be replenished. However, there is now clear scientific evidence that humanity is living unsustainably, and that an unprecedented collective effort is needed to return human use of natural resources to within sustainable limits.

Since the 1980s, the idea of human sustainability has become increasingly associated with the integration of economic, social and environmental spheres. In 1989, the World Commission on Environment and Development (Brundtland Commission) articulated what has now become a widely accepted definition of sustainability: "[to meet] the needs of the present without compromising the ability of future generations to meet their own needs.”

The term "sustainability" is defined in many ways according to the context in which it is applied. As all human activity entails sustainability the word may be used to refer to any aspect of human behaviour. The fundamental integrated dimensions of sustainability are often taken to be: ecological, social and economic, known as the "three pillars". These are depicted as three overlapping circles, to show that these are not mutually exclusive and can be mutually reinforcing.

While this model was intended to increase the standing of ecological concerns, it has since been criticized for not adequately showing that societies and economies are fundamentally reliant on the natural world.

The economy is, in the first instance, a subsystem of human society ... which is itself, in the second instance, a subsystem of the totality of life on Earth (the biosphere). And no subsystem can expand beyond the capacity of the total system of which it is a part

As Herman Daly famously asked "what use is a sawmill without a forest?" this reason a fourth and outer "environment" circle is sometimes added that encloses the other three - or economy, society and environment are represented as three concentric circles with the economy in the centre (see diagrams).

The Earth Charter sets out to establish values and direction in this way:

We must join together to bring forth a sustainable global society founded on respect for nature, universal human rights, economic justice, and a culture of peace. Towards this end, it is imperative that we, the peoples of Earth, declare our responsibility to one another, to the greater community of life, and to future generations.

A simpler definition is given by the IUCN, UNEP and WWF:

Sustainabilty is: improving the quality of human life while living within the carrying capacity of supporting eco-systems.

Sustainability can also be presented as a call to action, as:

... a means of configuring civilization and human activity so that society, its members and its economies are able to meet their needs and express their greatest potential in the present, while preserving biodiversity and natural ecosystems, planning and acting for the ability to maintain these ideals in the very long term.

The evolution of thinking about sustainability has paralleled historical events that have had a direct impact on human global sustainability.

Setting the Context!

From Wikipedia:

Sustainability, in a broad sense, is the ability to maintain a certain process or state. It is now most frequently used in connection with biological and human systems. In an ecological context, sustainability can be defined as the ability of an ecosystem to maintain ecological processes, functions, biodiversity and productivity into the future.

Sustainability has become a complex term that can be applied to almost every facet of life on Earth, particularly the many different levels of biological organization, such as; wetlands, prairies and forests and is expressed in human organization concepts, such as; ecovillages, eco-municipalities, sustainable cities, and human activities and disciplines, such as; sustainable agriculture, sustainable architecture and renewable energy.

For humans to live sustainably, the Earth's resources must be used at a rate at which they can be replenished. However, there is now clear scientific evidence that humanity is living unsustainably, and that an unprecedented collective effort is needed to return human use of natural resources to within sustainable limits.

Since the 1980s, the idea of human sustainability has become increasingly associated with the integration of economic, social and environmental spheres. In 1989, the World Commission on Environment and Development (Brundtland Commission) articulated what has now become a widely accepted definition of sustainability: "[to meet] the needs of the present without compromising the ability of future generations to meet their own needs.”

Sustainability!

This blog is primarily to focus on Corporate Sustainability, by

• Facilitating information on the concept of Sustainability.
• Educating readers specifically on Corporate Sustainability
• Sharing some of the best sustainability practices followed across industries.
• Creating corporate sustainability evangelists!

I intend to open this blog to authors who are keen to contribute towards the success of corporate sustainability movement in India Inc.

- Ciao