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Tuesday, 2 June 2015

Greed & Value Erosion!

Corporations are there to make money and grow profitably. There is no doubt on that count. I grew up in a time, when large corporations prided about their value system. Stood up and assumed responsibility for social good. Somewhere in the 90's corporations started attacking two primary factors of business management "Costs" and "productivity"! CEO's and senior management across businesses urged, encouraged and even compensated employees to mercilessly eliminate processes and activities that cost them money. More often than not the victim of such merciless cost "reduction" or "elimination" was the customer. Customers definitely had no god father in the corporate systems, except the regulatory hurdles. Every now and then a conscious customer would make noise and the company will "handle" them. In countries like US & the UK where the consumer movement was a lot more prevalent and powerful, corporations were kept under check through an aware and vigilant consumer movement. When globalisation brought these corporations to countries like India, where the consumer was not very aware and the regulatory systems were not well governed, the large multinational corporations often took the easy road and diluted quality standards and took the easy road to higher profitability. They had well paid "handlers" "liaison agents" and "consultants" to manage the shortchanged quality standards. The Maggi debate raging in the television is one of those things. Nestlé will not dare to have such lose standards in America. Its simply greed and lack of respect for the rights of the customers and strong belief that they can buy the regulators and other government systems. They do believe that they will not be held accountable. The question is don't they have good value systems? Aren't they supposed to be responsible for the well being of their consumers and the society they operate in?
It's high time, we stand-up, ask them questions and force them to mend their ways and fall-in line!

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