Today’ world is very complex. It is hard to find who are and who aren’t stakeholders and also complex to identify their roles and responsibilities. Balance of the society depends on the activities of the private, the public, and the plural sectors. Different Business organizations are working for globalized world. Managers and leaders are the people running our organisations. Successful corporations must have a strong sense of community.
Let’s Begin from a thought provoking quotation of Henry Mintzberg ‘‘the triumph of capitalism was the triumph of balance over imbalance. In turn capitalism now seems to be getting out of balance’’. Financial crisis and income inequality are unsolved issue in the Globalised world. Globalisation threatens to localization. More than half of the world’s economy is still needs to be organised. To be well organised, trust is one of the most valuable aspects of economy even all aspects of life. Once trust is lost it is almost impossible to earn back. Mistrust is going on between modern organization like bankers, multinationals, national and international forces, people and their government that mean there is clear conflict between stakeholders. Leadership is not working properly for the balance of interests between all stakeholders in line with equal opportunity.
In Nepal, there is huge potentiality of hydro power as the country has immense water resource. Government is seeking help from banking sector to invest in such productive and export oriented sectors. But bankers are asking government for stable and investment friendly environment. Now they are investing on housing and hire purchase as these sectors are less risky and quick yielding. According to the news published in The Guardian (2014) UK’s leading banks had decided to pay its chief executive additional allowances, bonuses and increased salary. Bankers, today, are mediator in the money market. They do offer negligible interest for deposit but collect huge sum. Ultimately profit and bonus are priority in the market. As discussed earlier, there is lack of institutional strategic network to create community between organizations as expected by expert. Hoarding and competition for bonus and profit are the motto.
Miserable Consumers are seeking help to get out from decreasing real income due to inflationary situation of recession, unemployment and lack of opportunity. Government are forced to implement the austerity measures by eliminating the value of welfare state. Size and role of state have been getting smaller but the sense of profit has been becoming stronger. People think leaders of the government are doing politics for nothing and bankers are selfish only seeking profit from their deposit instead of doing best to get out from recession. Since Lehman Brother was declared bankrupt, world economy have been experiencing acute recession. Professor Joseph Stiglitz says in his book ‘Making Globalization Work’- that large international banks prefer to deal multinational like Coca-cola, IBM, and Microsoft, the real losers are small businesses’. And Professor Deirdre McCloskey says in her new book, The Bourgeois Virtues: Ethics for an Age of Commerce that markets grow in “ethical soil.” David K Williams writes for the Forbes online magazine ‘‘we own our failures’’.
There are some achievements. Most successful things of 21st century are information technology that helps in somehow to reduce cost of production and raise living standard. Facebook, Google and similar kind of social media has become major tools of quick communication. Email, Viber and Skype services are available for free. Massive Open Online Course (MOOC) is the big opportunity to learn. But Gini-coefficient has increased meaning income inequality is intolerably high, human trafficking; zero hour work, refugee and extreme poverty are the biggest problem of exploitation from men to mankind. Recently, in an article Jim Yong Kim,World Bank President, highlighted that ‘‘we live in an unequal world. But while the rich world may be blind to the suffering of the poor, the poor throughout the world are very much aware of how the rich live.’’ Professor Joseph Stiglitz has come forward in favour of low income countries and their potentials. He says in his book Globalization and Its Discontents‘‘ All developing countries desperately seeking funds, must accept the terms and conditions imposed by IMF to get ‘Structural Adjustment Loan’ from the WB especially they have to liberalise their financial market, But there were not effective policy measures whether the country is able to do so.’’ According to Professor Joseph Stiglitz- ‘‘Western countries pushed poor countries to eliminate trade barriers by keeping their own barriers as it is.’’ And also developing countries were prevented from exporting their agricultural products. The problems are not with globalization, but with how it has been managed. Further Stiglitz says that ‘‘the capital account liberalization was the single most important factor leading to the crisis…globalization has been made dysfunctional due to irrelevant discontents.’’ Professor Robert Reich says in his book Supercapitalism that ‘supercapitalism began with technologies… so-called corporate statesman lost however capacity they had to weigh the interest of their communities and employees… supercapitalism replaced democratic capitalism’ (P86-87) According to Professor Henrey Mintzberg, the management expert, it is all about management failure.
Trust and ethics are lubricant for running businesses smoothly. There is mistrust between the stakeholders. To abandon globalization is neither feasible nor desirable. It has been made dysfunctional due to irrelevant discontents. Massive organizational reform is needed. Because globalization was rub by those international organizations that they have many responsibilities and traditional mentality with red tapism. A specialised institution with global aspiration is needed for the success of globalization.
J Wagle @