Corporate Karma


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The concept of Karma basically builds on the notion that if you do good, good things will happen to you. But, in what way does this conflict with a share holder perspective of business? Can you really do good at the same time you do well?
The answer is to move to “social business”. The model promotes both economic and social value with core business solutions; a core business with social responsibilities which are built in rather than added in as an afterthought.
Likewise the concept of Karma, "social business" generates profits, but the main objective is not to maximize financial returns to shareholders. Instead, benefit financially disadvantaged groups in society and grow the social risk through reinvestment, allowing the venture reach more disadvantaged people. Various entrepreneurs, such as Muhammad Yunus, with the Grameen Phone venture, and Grameen Danone Food can provide potential lessons for business and social development in addressing the lack of market participation of the world’s poorest.

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Corporate Karma

  1. 1. José Luiz Barbosa mobile: +46 708 95 61 00 e-mail:
  2. 2. Good Karma The Good
  3. 3. Corporate... Corporate means to me ”a body of persons united for a specific purpose”, English dictionary about organization
  4. 4. Karma Karma is the law of moral causation whereby an action causes an entire cycle of cause and effect. In buddhism the effects of all actions are viewed as actively shaping one’s past present and future experiences. In other words you reap what you sow.
  5. 5. Karma Karma usually apply to individuals. But, what about groups of individuals, corporations, even countries. Imagine the implications for an individual who belongs to a group with a “heavy” karma, due to the actions of other members, and who will suffer the consequences as a result. Alternatively, imagine a group that will be unduly karmically burdened by the actions of some of its members. And finally, imagine how group karma can take a life of its own after years of actions and reactions from its individual members. are you startIng to see the pIcture?
  6. 6. Good Karma is not business strategi “People should not be thinking about "make money" but to "make meaning", or make sense, make a difference, change the world, helping people ... and with that they will make money too.“, American entrepreneur and investor Guy Kawazaki the case: skype
  7. 7. Good Karma is not philantropy Several foundations have seen the value of its equity portfolio to be drastically reduced which enabled them to become dependent on the parent company's annual donation. But when even the DEFICIENT are several foundations that have no other choice than to stop handing out grants. “ The reason that many U.S. companies starting independent foundations is to make them less vulnerable to economic trends. In addition to the initial donation, which may be either shares or cash, provide companies running some of their profits to the Foundation. One known example is the Google Foundation, which was founded in connection with the IPO business and received a percentage of the shares in Google...“, CSR i Praktiken, 090512
  8. 8. the case: VIctorIa haLe. Drug companies have the know-how to cure malaria, black fever, and other diseases that kill millions a year in the developing world. But it wasn’t until Victoria Hale created the world’s first nonprofit drug company, that medicin for these ailments began to be developed in earnest.
  9. 9. Good Karma is not CSR “Corporate activities have broad impacts on society, but the findings from the analysis indicate that managers still have a relatively narrow perception of societal re- sponsibilities“, Pedersen, ER 2008, 'Modeling CSR: How Mana- gers Understand the Responsibilities of Business Towards Society’ “The conclution is that the managerial per- ceptions of societal responsibilities differ in some respects from the mainstream models found in the corporate social responsibility (CSR) and business ethics literature“, ibid, based on the survey responses of more than 1.000 managers in eight large international firms.
  10. 10. Good Karma is not business ethics Business ethics aims at determining the fundamental purpose of a company. These purposes may range from: - maximizing shareholder returns - maximizing shareholders returns while balancing stakeholders interests - behaving like a good corporate citizen - treating employees and customers decently
  11. 11. Corporate Karma maybe is ... the case: good electricity GodEl has no private profit, 100% of the yield goes to charity. GoodCause Foundation owns GodEl. The Foundation's sole purpose is to operate the company donates its surplus, via GoodCause, to charity. GodEl is the first company started and owned by GoodCause. The more efficient we operates the business, the more we will be able to donate to charity.
  12. 12. Corporate Karma is ... the case: nils Fredriksson utbildning, svedala county
  13. 13. Corporate Karma indeed is ... “I learned also that things are never as complicated as we think. It is our arrogance seeking complex solutions to simple problems.“, Muhammad Yunus, Nobel Prize 2006, Founder and leader of Grameen bank the cases: - grameen phone Ltd. - grameen telecom - grameen check - grameen danone Foods Ltd.
  14. 14. Corporate Karma – create new social and business values
  15. 15. Good Karma promote �social business� • Talk in terms of a social vision and mission instead of only business idea because "business method" does not exist until it is reality. • Adopt a mission to create and sustain social and economic value. • In the current field of capitalism theology don't exist room for an idea about doing business with a purpose other than financial gain. Although, the free market might well not be damaged by the factor, which there were some activities that not only have the propose of profit maximizing.
  16. 16. Good Karma promote �social business� • “...sets up the venture as a business with the specific mission to drive transformational social change.“ • “...profits are generated, but the main aim is not to maximize financial returns for shareholders but instead to financially benefit low-income groups and to grow the social venture by reinvestment, enabling it to reach and serve more people." • “...seeks out investors interested in combining financial and social returns.“ “ “ (Muhammad Yunus toughts and Elkington, �� �� Hartigan, P 2008, The Power of Unreasonable People) Muhammad
  17. 17. Good Karma Behind almost all societal changes, there is a special driver or philosophy. What should Be your corporate motivation and philosophy?
  18. 18. Good Karma The assignment_Pay It
  19. 19. Your Good Karma assignment Think of an idea to change our world – and put it into Action.
  20. 20. José Luiz Barbosa mobile: +46 708 95 61 00 e-mail: