Business
doesn’t run in isolation and it can’t be run in isolation. Social
institutions play a crucial role in shaping the business. Social
institution can make the business liberating or suffocating. I look at
role of social institutions all around and I find their actions very
depressing. Social institutions are designed to create and manage value
in the society. Social institutions should be focused to create free and
fair capitalism all around the world. By free and fair capitalism, I
mean that people should have choice to exchange of goods & services
and everybody should move towards perfect competition.
Creating
perfect competition based markets should be goal of mankind as without
freedom to utilize special talents of an individual or organization,
higher goals in the society can’t be achieved. Again creating perfect
competition doesn’t mean helping the inefficient to beat the efficient
one by providing shield of legal cover or giving subsidies. By perfect
competition, I mean that people should have a choice to enter in market
at lowest possible cost put by social institutions such as government.
Present
day governments are most bizarre kind of institutions. These
governments are supposed to create an environment of value creation to
reach higher levels of efficiency so that we can fight against hunger,
illiteracy, poverty etc. Its my worst nightmare that I find that the
governments are willingly breaking all the principles of efficient
organizations as we learn in schools. First of all government is not
supposed to govern at all and should be facilitator. Facilitation and
not the raw force creates an environment of trust. Governments are
focused on revenues and not on cost. So their focus is on extracting
value from people instead of creating more value for people. Also
governments all around the word tied the costs with revenue and that's
why these holy cows failed to provide what we expect.
Overall,
I feel all social organizations are facilitators of business. NGOs play
a greater role of working for poor and not so fortunate. Businesses
may not reach to the bottom of the pyramid to cater the needs of the
people. NGOs are tools which help businesses to contribute to uplift
people. NGOs creates an environment of trust and focus. Businesses can
and should work with full efficiency to create resources for society.
All this created value must reach to the people who may not be able to
participate in the business due to any unfortunate reason.
Governments
should create efficiency in itself. Governments should take care of
larger good of society by disallowing businesses to do negative things
such as environmental destruction. At the same time, governments should
create an environment of entrepreneurship to allow people to come up
with innovative solutions for the problems of the day.
