Sunday, November 9, 2008

Business school suggests businesses must become more ethical to survive

Why Traditional Recession Tactics Are Doomed To Fail This Time

How should boardrooms respond to the macro crisis? Is it just a case of recession-as-usual: budget-paring, personnel-slashing, and portfolio-trimming? Not a chance. The tactics of recession-as-usual are neither necessary nor sufficient for firms to weather the global economic superstorm - because it's no ordinary squall, but a once-in-a-lifetime gale ripping up the very foundations of the global economic order. eg. if Starbucks wants to grow in developing countries, it cannot just rely on a handful of new stores serving fatter-margined deluxe water to a new global bourgeoisie -- rather, to make growth sustainable, Starbucks must reinforce and support fair trade, responsible relationships, and account not just to count profits

Posted by doom&gloom @ 10:31 AM (952 views)
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4 thoughts on “Business school suggests businesses must become more ethical to survive

  • I think governments also need to be more ethical.

    Gordon Brown is using the Bank of England, MPC and current turmoil to forward his own agenda of making himself electable. So measures to prop up the housing market such as rescuing builders, slashing rates to chase house prices and inisisting that banks pass on rate cuts at the expense of their savers don’t actually tackle the problem head-on, but serve another less obvious purpose of placating the middle classes and bunging the city (read baking community that the government has curried favour with for the last ten years) taxpayer’s hard earned.

    Paulson has done the same in the US, with $700bn being used ostensibly to rescue banks’ balance sheets but also to protect bank shareholders’ value.

    George Soros has already indicated that as long as this continues, the crisis will get worse until all of the guns have been fired and the policy makers have no more choice.

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  • Curried baking! Yuk! Lol

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  • planning4acrash says:

    No, central banks must become more ethical, they must disappear! Entrepreneurs take advantage of the depravity of third world countries, but what is the reason for the depravity, and, notwithstanding the greed, would not the country be worse off without any investment?

    No, trade barriers stop 3rd world countries from manufacturing with their resources. Ghanaian cocoa producers are not allowed to produce chocolate, so only a few benefit from commodity prices, whilst we pay through the nose for expensive chocolate produced in Europe, by force. A 1% growth in trade would be enough I heard, to make up for all the foreign aid, and would get them close to paying of debts, so, again, government is causing problems.

    Then, with price fixing in places like Europe, farmers overproduce staples like wheat and chicken. We literally dump these on the third world, undercutting their domestic producers, destroying their markets, making them dependent on imports, so then they need foreign currency, so they get into debt, and on, and on. Again, government is to blame.

    If government stopped meddling, the free market would sort out these problems. It would create growth and eventually better conditions.

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  • With all due respect to the poster, I think this article is nonsense. The Starbucks examples are deeply flawed.

    “training baristas to teach classes in coffee-making”
    Right, so the customers can go home and make their own coffee. Great way to lose customers. This type of thinking works in some limited cases (e.g. bicycle shops teaching customers to do low-value repairs at home) but it doesn’t work for coffee.

    “letting communities use Starbucks as a venue for local government”
    Local government already has offices. Why not use McDonalds as a venue for school classes too? How about using the local pub for workmen to paint road signs?

    “Starbucks as a platform for communities to build and invest in local resources”
    There are no local coffee farmers on Kensington High Street, so how can they “invest in local resources”? Maybe they want to get all hippie and have poetry readings in every Starbucks. No thanks!

    No, all that Starbucks needs to do is negotiate lower rents from commercial landlords and cut drinks prices. Get with the deflation programme.

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