Essentially, the presentation addresses the question: what should be the next step in global civilization? It does so by examining what has brought us thus far, and what is stopping us advancing further
Leading Questions for the Thought Leadership Club at Ireland’s leading B-School
1. Leading Questions for the
Thought Leadership Club at
Ireland’s leading B-School
UCD Michael Smurfit Graduate Business School
Prabhu Guptara
Executive Director
Relational Analytics Ltd
Cambridge, U.K.
p.guptara@relational-analytics.com
2. Please note
NOT the official position of The Relational Thinking Movement,
or of any of the other organisations, universities, etc.
with which I am or have been connected
• The intention is to provoke us to think!!!
3. 5 Simultaneous and Unforeseen Crises?
“Europe is juggling five simultaneous crises, all unforeseen shocks in
different stages of development:
- refugees from Syria,
- eurozone periphery debt,
- a global economic downturn,
- Russia’s annexation of Crimea and its aftermath, and
- Volkswagen’s crimes and misdemeanours”
Wolfgang Münchau, FT, 27 September 2015
4. My Leading Question: What is wrong?
Democracy and capitalism have brought us such a long way!
Why then do they produce so much unfairness and inequality?
Why so much moral failure?
Why so many crises?
And why do we seem to be retreating from our social & environmental goals?
5. My Leading Question: What is wrong?
Democracy and capitalism have brought us such a long way!
Why then do they produce so much unfairness and inequality?
Why so much moral failure?
Why so many crises?
And why do we seem to be retreating from our social & environmental goals?
7. My Leading Question: What is wrong?
Democracy and capitalism have brought us such a long way!
Why then do they produce so much unfairness and inequality?
Why so much moral failure?
Why so many crises?
And why do we seem to be retreating from our social & environmental goals?
8. DOES capitalism produce unfairness & inequality?
• Please note: this is NOT an argument for Marxism or Socialism!
• Depends on your definition of “capitalism”
• But we certainly need to reform capitalism as it is currently practiced
around the world, where the results are precisely these as
documented e.g. in:
• David Graeber’s 5000 Years of Debt
• Irving Fisher’s Debt-Deflation Theory of Great Depressions (1933 - Internet)
• Yves Smith’s Econned
• John Lanchester’s Whoops!
• Gillian Tett, Fool’s Gold
9. My Leading Question: What is wrong?
Democracy and capitalism have brought us such a long way!
Why then do they produce so much unfairness and inequality?
Why so much moral failure?
Why so many crises?
And why do we seem to be retreating from our social & environmental goals?
10. Warren Buffet
“Look for three things in a
person: intelligence, energy,
and integrity. If they don’t
have the last one, don’t even
bother”
11. Malfeasance, Fraud, Buck-passing…
• Enron, WorldCom, 3Com, Arthur Andersen, Tyco, WasteManagement,
HealthSouth, FreddieMac, AIG, Lehmann Brothers…
• Deepwater Horizon oil spill
• Merck’s Vioxx
• Exxon-Valdez oil disaster
• Ford Explorers with Firestone tires prone to fatal rollovers
• Aventis (now Sanofi-Aventis) Starlink genetically modified corn “only
approved for use as animal feed” but in human food!!! Recalls &
factory shutdowns for companies like ConAgra & Kraft…
12. Malfeasance, Fraud, Buck-passing…
• Bernie Madoff
• Satyam
• American Home Products (now Wyeth) popular diet combo Fen-Phen
actually caused fatal heart problems - $21 billion
• Union Carbide’s 1984 gas leak in an Indian pesticide factory: for many years
the worst chemical accident on record. Roughly 4,000 died within days, and
authorities estimate the long-term death toll at 15,000, with hundreds of
thousands more stricken with health problems. The catastrophe cost Union
Carbide (bought by Dow Chemical nine years ago) $470 million in
restitution payments to the Indian government, but the cost to its
reputation was much higher. The anniversary of the leak is still marked by
vigils and protests
13. Major corporate collapses and scandals
• https://en.wikipedia.org/wiki/List_of_corporate_collapses_and_scan
dals
• 15th c: Medici Bank
• 18th c: The Mississippi Company, & The South Sea Bubble
• 19th c: Gurney, & Krupp
• 20th c: DanatBank 1931, Allied Crude 1963, Herstatt Bank 1974,
Carrian 1983, Texaco 1987, Qintex 1989, Lincoln S&L 1989, LTCM
1998, Polly Peck 1990, BCCI 1991, Nordbanken 1991, Barings Bank
1995, Bre-X 1997
14. Major corporate collapses and scandals
• 21st c: Equitable 2000, HIH 2001, Pacific G&E 2001, OneTel 2001,
WorldCom2001, Enron 2001, Chiquitas 2001, Kmart 2002, Adelphia
2002, Arthur Andersen 2002, Parmalat 2003, MG Rover 2005, Bayou
Hedge Fund 2005, Refco 2005, Bear Stearns 2008, Northern Rock 2008,
Lehmann Brothers 2008, AIG 2008, Washington Mutual 2008, RBS 2008,
ABN-Amro 2008, Nortel 2009, AIB 2009, Arcandor 2009, Schlecker 2012,
Dynergy 2012, Banco Espirito Santo 2014
• Joel Bakan: The Corporation: The Pathological Pursuit of Profit and Power
15. What is the *value* of a leader’s integrity?
Can it be quantified?
• Dr. Fred Kiel did just that in his book, Return On Character (published
by Harvard Business Review Press in April 2015)
• Over a seven-year period, Kiel collected data on 84 CEOs and
compared employee ratings of their behaviour to company
performance
• Employee engagement was 26% higher in organizations led by high-
integrity CEOs
• High-integrity CEOs had a multi-year return of 9.4%, while low
integrity CEOs had a yield of just 1.9%.
16. The Moral State of the Financial Services Industry
•26% have seen wrongdoing themselves
•24% think unethical conduct necessary
to get on in the industry(!)
•16 % ready to commit fraud
• Financial Services Survey July2012 http://www.labaton.com/en/about/press/Labaton-
Sucharow-announces-results-of-financial-services-professional-survey.cfm
17. Bernanke: More execs should have faced
prosecution for 2008 crisis
• Reporting a story in USA Today, Sun Oct 4, 2015:
http://www.reuters.com/article/2015/10/04/us-bernanke-
financialcrisis-idUSKCN0RY0X420151004
18. One Clue
• “Buddhist morality in general, whether early or late, is based
upon a distinction between the wholesome and the
unwholesome rather than between good and evil” -Karl H Potter
(1996), Encyclopedia of Indian Philosophies, vol 7, “Abidharma Buddhism to 150
AD, Motilal Banarsidas, New Delhi, page 48
• Any distinction based on “wholesome” begs the question:
According to whom?
• As that can only be some individual or group of human
beings, it is (and has been) open to manipulation by the
more intelligent and/or more powerful.
19. My Leading Question: What is wrong?
Democracy and capitalism have brought us such a long way!
Why then do they produce so much unfairness and inequality?
Why so much moral failure?
Why so many crises?
And why do we seem to be retreating from our social & environmental goals?
Notes de l'éditeur
Not only ideas and concepts but specific and practical things you can do to take Relationships forward in your personal and family life, in your neighbourhood, in the schools and businesses with you are connected.