Values in Organization - An African Perspective
In his treatise, The Economic's of Innocent Fraud: Truth of our Time, John Kenneth Galbraith one of the world's most eminent economists, describes an important idea of our time. He explains how our most commonly held beliefs, can lead to us acting fraudulently with innocence, because these ideas are not questioned.
He argues that the real power in an organization lies with management. Over time, corporations and public sector organizations have given a great deal of power to those best fit to run them - management. This has resulted in these few individuals having considerable power, a power which if abused can lead to self-enrichment and negatively influence society.
He also argues that the division between the public and private sector is mythical as much of what government is meant to do, is being outsourced to private sector organizations.
Bertrand Russell's famous quote "Power corrupts and absolute power corrupts absolutely" has inspired many organizations to implement good corporate governance systems. These measures don't curb the use of power, instead they merely make it accountable. If an organization is going to hold an executive accountable then the executive must also be given freedom to act. In the freedom to act, tension is created which allows for a trade-off between principle and expedience.
In applying these ideas to the corporate world, Galbraith explains how the shift of power from shareholders to managers in the last century created an opportunity for innocent fraud. In most organizations it is deemed effective and necessary for a few individuals to have most of the power. This factor make's it possible for them to act without reference to anyone, creating the opportunity for innocent fraud.
It is the allowance for expediency that makes it possible for innocent fraud to become perhaps not so innocent...
To quote Nelson Mandela: "One of the tragedies that we are facing is that of a (form of) globalisation, which has not addressed questions of poverty, of disease, of hunger and of ignorance."
The best possible guard against the abuse or misuse of power is self-regulation of the leader, and through that, the organization. Organizations, which have the capacity to take a strong values stance, are respected, and do as well, if not better than their counterparts. They are respected because, by adhering to their values they have given up a short-term benefit which can often be considerable.
The ability of a leader or an organization to sustain this level of integrity is a product of their value system. Bill Gates, the billionaire philanthropist, is quoted as crediting his mother for his philanthropic drive. She apparently said to him" Remember, with great wealth comes great power and an even greater responsibility. What are you going to do to make a difference? ".
So, it is possible for individuals to use their power and influence wisely and with great benefit to society, thereby avoiding the pitfalls of committing "innocent fraud"
Whilst many organizations have invested energy in defining their core values, few have the capacity to implement it effectively. In this process there is often a strong reliance on external skills, which can be a barrier to effective implementation. At the same time there are competitive boundaries, which inhibit organizations learning from each other.
The creation of value-based organizations is more than just good business, it is a global imperative. It is only with a deep sincere commitment that those organizations and individuals who have the capacity to make the world a better place, can find the courage to exercise the will to do so.
It is in this context that a few individuals around the world have collaborated together to create the Values in Business Institute. The Institute is structured as a not for profit organization. Those who have tools and methodologies that can assist the implementation of values at an individual or organizational level, will offer these to the institute altruistically. The Institute would then offer training to organizations and independent facilitators to enhance their ability to implement values, at cost and not for commercial gain. They are then encouraged to use these tools to assist others. If a facilitator or member organization obtains commercial benefit from the use of the tools, they would be encouraged to offer a % of their income, at their discretion, to the Institute. Funds received in this way would be used by the Institute to sustain the initiative globally. The initial focus of the Institute's activities would be the African continent.
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