The Shrewd Manager

We should be doing more to develop sustainable business paradigms for our own lifetimes and for the future. We already have co-operatives, social entrepreneurship, corporate social responsibility and business ethics. Stakeholders are being taken into account more now. Businesses generally are trying to be environmentally friendly. It can be difficult to determine the expectations of external stakeholders and is on the boundaries of management. It can be difficult to decide what is discretionary and what is mandatory. Paradigms are difficult to attain or even to define and operationalise but people keep longing, striving and researching ways to achieve their higher ideals.

Environmentalism has grown in importance in recent years. The focus is on the physical, ecological and psychological environments. It has raised public awareness of the impact of industry and consumerism on the environment. Nature and its flora and fauna are affected by industry and urban sprawl. The loss of endangered animal and plant species is a great concern to many scientists and ordinary people. Pollution of the air and water in our rivers, streams, lakes and seas resulting from dumping, intensive farming methods, inefficient use of fertilisers and sprays, phosphates and detergents from household use are problems we are still trying to control. The carbon footprint is something we are all invited to measure. Web sites are available to enter a set of data and have the footprint measured for a household or firm. Climate change is a major problem at a international level. Commercial forestry and deforestation degrade the land, lose top soil and cause desertification and are thought to be one of the main causes of climate change. The development and spread of conurbations and intensive farming methods have brought serious changes to the countryside. We have lost most of our original deciduous broadleaved woodland, lowland grassland and heath and most of the hedges to allow monocultural farming methods. The generation and disposal of large quantities of waste is an environmental issue. It is also an inefficient use of scarce resources. Recycling and industrial symbiosis are a start but not widespread enough and not part of normal functioning. There is waste and extravagance in the private sector and poverty in so many places in the world and in this country as well.

Business paradigms must also include the general application of principles to business behaviour. Ethical problems arise because of self interest and personal gain. It is said that 'Greed is good' and altruism is sentimental and even irrational despite the fact that greed can cause serious harm to individuals, firms and the economy. Competitive pressure can cause some people to engage in unethical practices to protect profits. Goals and values conflict when the ends are said to justify the means. Doing business across cultures where ethical standards differ may result in unethical practices and ethical problems.

Transformational leadership and management can introduce business ethical and moral principles into places where they do not yet exist. The leader should be inspirational, a role model for others in the workplace to resemble. A transformational leader will usually have a strong sense of vision and mission. The members can both rejoice and suffer with him/her, but the guiding principle of their actions should always be 'primum non nocere' which translates as 'at least do no harm' a quote from Hippocrates regarded as the basic principle of business ethics. Terms like continuous improvement help visualise and describe the new paradigm. There should also be commitment at the highest level.