few exceptional CEOs do care, in deed, about the impact of their actions and
their company's on employees, partners, business eco-system and future
generations. They are extra-ordinary not (only) because they have the best
brains in the business, but because they do things they will never be rewarded
everyone does, as evidenced by the scores of scams and frauds, the accidents
and mishaps caused by inadequate safety spends, the impact of health on
environment, not to mention the worst ever recession in mankind's history.
Currently, CEO's are primarily meaured by business metrics alone with no
incentive or major reason for them to perform on other fronts.
CEO is sure to be making money and termed successful today, as long as he
satiates the share holders and a very few other constituents, without any major
mishap occurring that is. And smaller accidents, "unintentional"
accounting deviations, inexplicable buying spree and misappropriation could be
swept under the carpet, what with the D&O insurance coming in handy.
Expecation from society and measurement of other facets in a Executive's job description are the key changes really. This apart, we'd provide the role with some serious reason and incentive to measure up to the new benchmark. This could not just transform the organization inside out, but could bode well for all people connected directly and indirectly to the company and their future generations.
Given some companies today, are larger than several nations, the PEO would also be made to explicitly understand the impact of his actions, and thereby has more motivation to take the right decisions.
If most CEO's could take this notion of PEO forward and embrace it completely, the decisions and actions would be guided by better value systems and all of us stand to benefit.
A PEO taking into consideration the impact of drilling an oil well, would not just invest in cleaner fuels but also in environment upkeep. A mining company would look beyond the health cover of the miners and their families and would extend the cover to community living around it, thereby earning the good will (and then perhaps converting the good will to cash, for business). A PEO would insist on right borrowing and spend patterns by the company, put systems in place to live by the laws of the land always, reduce accident rates and personally focus on employee and society welfare. Ofcourse, he'd run the business and make it profitable, only this time, there will be a lot more people rejoicing in his company's success.
The company would be a good employer without much strategic HR, and attract the best global talent with relative ease. Other business results could then follow the new success the company would see, ably led by the PEO.
Industry bodies, CEO clubs, academic circles and other related need to refine this further and make it actionable by agreeing on a common minimum agenda for a PEO.
'Embrace the PEO' sessions should be conducted by consulting firms and each chamber of commerce.
'Early adopters' should be given adequate visibility to motivate the rest.
Would also invite other learned friends to join in to refine the concept and define next steps.
A little radical thinking by me. Would invite other learned friends to contribute and debate.