The approach for Financial Organisations to shift towards a view of Capitalism that fits for the long term
With the Global Financial Crisis in mind the aim is to provide a review of challenges and approaches relating to how organisations should create new blue prints, ranging from long term planning and stake holder management in building trust and consumer confidence and how organisations can address issues in a socially responsible way to help them become profoundly principled, fundamentally patient and socially accountable to help the shift towards a view of capitalism that is truly fit for the long term.
It is initially appropriate to understand that Capitalism is in danger, therefore to return to the comfort of business as usual, governments and organisations around the world started to look into the root cause of the global financial crisis and put long term measures in place to help build sustainable enduring success. The importance of the role of The United Nations and governments, in the regulatory side, to reduce volatility in the system and to make sure there is no future crisis; therefore sustain capitalism for the long term.
Creating a Global framework that could shift the view of capitalism for the long term can be implemented. Organisations with strong social mission will be long term more successful. Change is a bottom up process, therefore organisations should look into creating change through a rational choice decision making process. Employee involvement in the decision making toward creating the shift is necessary for organisations to show strong social responsibility.
Corporate governance failure has been argued to be one of the main contributors to the global financial crisis, however very little attention was paid to the large institutional investors who have dominated corporate governance activities globally over the past two decades and more. Since the global financial crisis organisations have been trying to come up with solutions to overcome the ciris and not fall into this again.
Financial regulators policymakers and institutions failed to appreciate the full measure of risks in the financial system or address the extent of the growing economic vulnerabilities and their cross border linkages. Governments and the United Nations should have control of what regulations are imposed on the financial system to prevent a future crisis.
Leaders should also be able to prioritise what stakeholder group be given priority of interests, stakeholder groups can vary from internal groups such as employees and shareholders to external groups that can even include environmental and social groups alongside suppliers and government.
Changing the way organisations think and creating a blue sky thinking to sustain long term success, they will need to shift towards a way of looking into the future and not focusing on the quarter ahead. Being innovative and creating a mission that fits with the organisations social responsiblity.
- Creating a mission that is socially fit.
- Financial organisations should be proud of being a "bank"
- Being innovative and creating a blue sky thinking rather than running in the red ocean trying to compete against other organisations.
- Being socially accountable by giving back to their communities by ways of creating zero carbon foot print, helping sustain the environment and sponsoring good causes.
Investing in people, investing in systems that aid the process of being environmentally friendly and reducing their carbon foot print.
Focusing on creating a social culture by way of allowing employees some flexibility to volunteer in the community by giving them paid time off to achieve that sense of community involvement.
Change is a bottom up process that requires employee involvement and good leaders who are positioned to cope with what challenges come their way; they need to have a Can Do attitude enabling them to run their organisation effectively. Therefore a focus on Leadership to create a better decision making process in the future will help capitalism for the long term.
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