Rolling out the Red Carpet

I welcome you to my blog and hope that you will like the tour. Please leave your footmarks with comments and feedback. This will through and through enhance my knowledge and profundity of thought. Enjoy! Asif J. Mir

Thursday, January 8, 2009

Dealing with Conflict

With the turn of economic wheel conflict has entered into our daily life as an indispensable impedimenta. Whether in domestic, professional or political living and breathing world we are dominated by lacking conflict management skills and hence dragging on with antipathy, bitter feelings and state of war. For creating a fraternal, congenial and harmonious environment we ought to master skills essential for dealing with conflict.

Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values or needs. It can also originate from past rivalries and personality differences.

The first step in managing conflict is to analyze the nature and type of conflict. To do this, you'll find it helpful to ask questions.

Collaboration results from a high concern for your group's own interests, matched with a high concern for the interests of other partners. The outcome is win/win. This strategy is generally used when concerns for others are important. This approach helps build commitment and reduce bad feelings. Some partners may take advantage of the others' trust and openness. Generally regarded as the best approach for managing conflict, the objective of collaboration is to reach consensus.

Compromise strategy results from a high concern for your group's own interests along with a moderate concern for the interests of other partners. The outcome is win some/lose some. This strategy is generally used to achieve temporary solutions, to avoid destructive power struggles or when time pressures exist.

Competition strategy results from a high concern for your group's own interests with less concern for others. The outcome is win/lose. This strategy includes most attempts at bargaining. It is generally used when basic rights are at stake or to set a precedent. It can cause the conflict to escalate and losers may try to retaliate.

Accommodation results from a low concern for your group's own interests combined with a high concern for the interests of other partners. The outcome is lose/win. This strategy is generally used when the issue is more important to others than to you. It is a goodwill gesture. It is also appropriate when you recognize that you are wrong. The drawbacks are that your own ideas and concerns don't get attention. You may also lose credibility and future influence.

Avoidance results from a low concern for your group's own interests coupled with a low concern for the interests of others. The outcome is lose/lose. This strategy is generally used when the issue is trivial or other issues are more pressing. It is also used when confrontation has a high potential for damage or more information is needed.

Several enemies often combine to create contention. The first enemy is the natural need to want to explain the side first. After all, we reason, if they understood our perspective, they would come to the same conclusions we did. The second enemy is ineffectiveness as listeners. Listening is much more than being quiet so we can have our turn. The third enemy is fear. Fear that we will not get our way. Fear of losing something we cherish. Fear we will be made to look foolish. The fourth enemy is the assumption that one of us has to lose if the other is going to win. Differences can only be solved competitively.

Two principles have contributed so much to the productive handling of disagreements that it is difficult to read about the subject in scholarly works without their mention. The first principle: Seek first to understand, then to be understood, was introduced by Steven Covey, in Seven Habits of Highly Effective People. If we encourage others to explain their side first, they will be more apt to listen to ours.

Roger Fisher and William Ury introduced the second communication principle in their seminal work, Getting to Yes. Simply stated, it is that people in disagreement focus on their positions when instead they should be focusing on their needs. By focusing on positions we tend to underscore our disagreements. When we concentrate on needs, we find we have more in common than what we had assumed. Ury and Fisher then went on to say that when we focus on needs we can attempt to satisfy the sum of both our needs and their needs.

The parties to Kashmir conflict can also explore a problem-solving approach inspired by an ancient Tibetan Buddhist teaching known as the four karmas. These four karmas follow a developmental sequence that begins with pacifying or calming the situation, enriching positive aspects by bringing in multiple perspectives, magnetizing larger perspectives or additional resources, and finally, if necessary, destroying old patterns and behaviors that no longer serve.

Traditionally the four karmas is a personal practice that allows one to become attuned to the natural energies in a situation, and to transform confusion and aggression into creativity, compassion, and intelligent action.

How can we solve our tough problems without resorting to force? How can we overcome the apartheid syndrome in our homes, workplaces, communities, countries, and even globally? How can we heal our world's gaping wounds? To answer these questions is simple, but it is not easy. We have to bring together the people who are co-creating the current reality to co-create new realities. We have to shift from downloading and debating to reflective and generative dialogue. We have to choose an open way over a closed way.

It is good to talk about the past. A discussion of past behaviors is essential to analyze patterns of conflict and help conflicting parties to find constructive ways of handling future disagreements. Without understanding the past, it is hard to prepare for the future. At some point, however, the focus of discussion turns to that of future behaviors, rather than past injuries. The sooner the participants can focus on the future, the greater the chances of successful resolution. (www.asifjmir.com)

Friday, January 2, 2009

21st Century Companies

growth, Organizational leaders agree that versatility and the ability to envision possibilities set a plan of action in the midst of chaos are qualities, which produce success. Organizations need more than members who adapt to changes. More importantly, they need members who can produce changes within the organization. Organizations of 21st century need leaders.

Successful companies have figured out the secret to success in the 21st century - that of process excellence. Future success seems will come to those companies that figure out functional management innovations in the 20th century augmented with process excellence, which places more emphasis on end-customer satisfaction than optimal utilization of company resources.

The 20th century saw organizations embrace functional management concepts that divide the company into functional silos such as product design and management, order management, manufacturing, finance, sales/marketing, warehousing/logistics and customer service/support. This approach saw the growth of many large companies. Functional management concepts help streamline an otherwise chaotic set of activities into logical groups and helped large organizations function effectively. They helped organizations make the transition from an agricultural age to an industrial age.

Since the last decades of the 20th century, computer technology and communications have become cheaper and more powerful by orders of magnitude, in the rendering many of these 20th century functional management approaches obsolete. The 21st century demands a transition from an industrial age to an information age, and a process-excellence approach is the alternative that will augment a functional management approach for optimal organizational performance.

Organizations have started talking about order to cash cycles, viewing the end-to-end demand chain and supply chain from customers’ point of view rather than functional silos such as finance, sales and marketing and manufacturing.

This process excellence view has evolved from companies’ realization that it is an unfair burden on the end customer to have to deal with the companies’ functional silos when doing so adds no additional value to the products or services they buy from the organization. Functional silos are for internal efficiencies of a company. A number of trends dictate that only process excellence combined with functional management will work in the future.

The 21st century has starting out with computers and communications enabling order of magnitude and faster, cheaper execution of business processes, often spanning multiple organizations and even multiple continents. Dell, UPS and FedEx have computer systems that any organization can seamlessly integrate with and provide visibility of processes to end-customers. Here, the emphasis seems to have shifted considerably to one of process excellence rather than functional excellence. In fact, UPS formerly picked up Toshiba laptops that customers want to send back to the company for Warranty repairs. Now UPS finds it can deliver a more efficient and effective process by also doing the repairs in their delivery center.

If I am an end customer of a company that sells me goods or services, I am more impressed by efficient and effective processes that benefit me, rather than how well the functional silos if they perform internally. Process excellence is one of whether the end customer’s expectations are met faster, cheaper and more effectively. Many organizations have started asking the question regarding any activity within a company: why should the customer care? This brings up a process orientation to most activities even if different functional silos within a company perform parts of processes. If an activity does not directly add value to the end customer, process excellence demands that you try to eliminate it or at least make it faster.

Many organizations are starting to make available single points of contact for customers, especially their valued ones. These single points of contact or account managers navigate the internal processes with the functional silos of the company on behalf of the customer within the organization and get things done. After all, why should the customer care about billing and provisioning departments of a telecommunications company? They have placed an order for a new landline and it is the telecom company's responsibility to take the order and deliver the landline. Process excellence is the key here.

Those that have slower process cycles do not stand a chance of competing very effectively in the longer run with nimbler online alternatives. A very heavy process orientation and excellence is the only way the older ways of doing business can right themselves and prepare for the 21st century.

With digitization and automated workflow, people within the company or an outsourcing vendor can perform the same business process without concern about physical location! Digitization and automated workflow have enabled process excellence to be realized at levels not possible before.

Companies such as UPS and FedEx already make it possible for any company's computers integrate with their internal systems effortlessly, eliminating unnecessary and inefficient manual steps between companies. For example, once an order is picked and packed at a company warehouse, the company computers can talk to UPS or FedEx computers and create a delivery order and a tracking number. UPS or FedEx employees will not have to key in all these details again.

General Electric and Motorola have popularized Six Sigma approaches to quality management. Six Sigma and Lean Six Sigma impose a process discipline when applied. These are increasingly being applied outside of manufacturing, where they originated, and being applied to all kinds of business processes like product service and support, healthcare and so on.

The last century contributed functional management as a way to do things more efficiently and effectively within organizations. However advances in technology and innovative new companies have brought process-oriented approaches to doing things that make it easy for an end customer to do business with them. A process orientation and process excellence that augments functional management seems to be the secret to success in the 21st century. Organizations that leverage the latest technological advances and trends in a relentless quest to make business processes more efficient and effective will be the only ones that survive. (www.asifjmir.com)

Wednesday, December 31, 2008

Nothing for it but . . .

Ever since independence technology has sneaked in tardily. Paradoxically, these years have produced equally strident laments concerning the state to which Pakistan’s education has sunk. The educational foundations of our society are presently being eroded by a rising tide of mediocrity that threatens our very future as a nation and a people.

When information technology was approaching in the sixties the US changed the school curricula for preparing students for the future. Contrarily we continue to turn our eye from the need to adopt new technologies and consequently our students are not being prepared (IT students included) to live in a competitive world.

We have managed to survive without adoption of IT for forty years. It will be impossible to continue to exist even for a day if we failed to adopt the approaching technologies. For instance Nanotechnology—examining the world at a millionth of meter and utilizing the ability to manipulate our universe at a molecular or atomic perspective—has united scientists across developed world in the belief that the worlds of medicine, computers, biotechnologies and eventually all manufacturing will never be approached in the same way again. We can’t afford to respond as laggards and follow the same doom which ancient civilizations faced. They perished for resistance to new technologies.

In ancient Greece then, all of the energy sources in use today, with the exception of nuclear power and hydroelectric power (both used exclusively to produce electricity) were known, available, and in limited use. Why then did it take so many centuries for energy sources and technology to come together to produce the Industrial Revolution?

From ancient Greece into the early Renaissance technological development was not only frowned upon, it was downright discouraged. People with money did not invest in it. It was socially unacceptable for the elite to involve themselves in what they considered a degrading activity.

The Greek philosophers, for all of their delving into how the world was made up and how things worked, had a strong aversion to the development of technology. They called it banausikon, meaning, fit for mechanics. It was considered a filthy business beneath the dignity of any intelligent, thinking person. Aristotle held that industries that earned wages degraded the mind and were unworthy of the free man. He would not stoop so low as to attempt to verify by measured observation his reasoning concerning physics or dynamics. As a result, some bad science went unchallenged for almost 2,000 years.

The Museum and Library at Alexandria, established in 290 BC by the rulers of Egypt, was a research facility that attracted scientists from around the known world. Researchers would use valves, expanding gases, solar thermal power, cams, screws, pulleys, levers, springs, siphons, and cogs—the basics for an industrial revolution. They developed double-action pumps and a compressed air cannon. It was there that Hero demonstrated a steam reaction turbine in 60 AD. The Library at Alexandria could have been an ancient model for Silicon Valley, but the research did not lead to improved manufacturing processes, better machines for industry or agriculture, or even for increasing wealth. Rather it was used to amuse royalty or to amaze worshipers in temples.

A valid argument can be made that metallurgy, manufacturing processes, and transportation facilities were too primitive to allow for exploitation of energy and technology at that time. But, absent the social barrier to technological development that existed, it is likely that the great minds, the available wealth, and the power concentrated in the likes of Alexander the Great, and the Roman Emperors could have laid the groundwork for a much earlier development and diffusion of technology.

We are accustomed to resist technological change with full force. We not only refuse to recognize it; we close our eyes to evade it. The attitude that we demonstrate confirms our nasty characterization as a nation of laggards.

Embracing technology is a laudable objective for which our society must aspire. It should provide a classic demonstration of the principles of the Technology Adoption Lifecycle and attempt to explain the pros and cons of investing in new technology. It must transform itself as innovators, early adopters, and not as laggards on a technology adoption timeline.

We should inculcate education of technology at every level of learning. If we claim to know more about how people learn, if we have better tools for facilitating learning, why do so many studies of technology in education show no significant difference from traditional methods? Why are we producing graduates less able to cope with the issues facing them?

Making matters worse, the criteria for success have changed. Our institutions were designed not for an industrial society. Now we've entered the Information Age. Increasingly, even blue-collar jobs require critical thinking, rather than monotonous task performance. To meet these demands, our graduates need different competencies than we typically provide. Intuitively, one would expect technology to be a powerful tool for meeting these new requirements.

We are entering a world in which jobs are requiring technological competency--a world in which they must continue to update their occupational and technological skills in order to be successful. We must enable them to become technologically competent. We must take advantage of the capacity of technology to enhance our traditional classroom presentations and to engage our students in active learning.

Pakistan’s decision-makers must focus on new challenges and issues instead of waiting for emergencies to react. They need to focus more on policy than management issues. They need to be knowledgeable about what rest of the world is doing to achieve change. They should know that change and implementing technology often go hand in hand. The key to success in both is a thorough, inclusive planning process. The disregard of new technologies by ancient civilizations offers us a choice: to embrace new technologies or perish.(www.asifjmir.com)

Saturday, December 27, 2008

Child Labor

We often hear about goals of education relate to ‘meeting our children’s needs,’ ‘responsible citizenship’ and ‘equipping students for the future.’ Yet, what do such goals mean when millions of our children are forced to work? How much actual attention is given to the circumstances of this segment of our future? How much consideration is given to the needs not only of this generation but future generations? How seriously do we care about human values when we see around innocent child laborers selling newspapers at traffic lights, serving tea at kiosks, or weaving a carpet? Is this the future we are talking about? How might we enhance the quality of our responses to unmet poor children’s needs? How might we begin to contribute more effectively to building cultures of peace and sustainable futures? No easy answers.

That the shameful practice of child labor should have played an important role in the Industrial Revolution from its outset is not to be wondered at. The displaced working classes, from the seventeenth century on, took it for granted that a family would not be able to support itself if the children were not employed. The children of the poor were forced by economic conditions to work, as Charles Dickens, with his family in debtor's prison, worked at age 12 in the Blacking Factory. In 1840 perhaps only twenty percent of the children of London had any schooling, a number which had risen by 1860, when perhaps half of the children between 5 and 15 were in some sort of school, if only a day school (of the sort in which Dickens's Pip finds himself in Great Expectations) or a Sunday school; the others were working.

Child labor is a pervasive problem. Children work for a variety of reasons, the most important being poverty and the induced pressure upon them to escape from this plight. Though children are not well paid, they still serve as major contributors to family income in Pakistan. Schooling problems also contribute to child labor, whether it is the inaccessibility of schools or the lack of quality education which spurs parents to enter their children in more profitable pursuits. Traditional factors such as rigid cultural and social roles in Pakistan further limit educational attainment and increase child labor.

There are 19 million working children in Pakistan, 7 million below the age of 10 and 12 million between the ages of 10-14. Everyday sun sets by shoving over 100 children into the labor market. The number of child workers under 15 years is estimated to be not less than 8 million. Punjab accounts for 60% of the total child labor. More than two-thirds of child laborers are working in the agricultural sector. Of 20 million bonded laborers 7.5 million are children and 1.2 million children are bonded in the carpet factories. Nearly 250,000 children working in brick kilns are bonded laborers, driven into a miserable state by the fact that their entire families have been 'pawned' to the owners by virtue of their having pledged their labor in return for some money taken. Children are sometimes kidnapped to be used as forced labor.

The newly emerged affluent class in urban cities employs some 6.7% of female child workers in domestic help. These domestic workers generally have to work for 15 hours a day, seven days a week.

Bonded labor, a contemporary form of slavery according to the UN definition, unfortunately holds strong in certain sectors in Pakistan, such as brick manufacture, construction, sports goods manufacture and carpet-weaving.

Demand for child labor is so high that children are often sold by desperate parents. They are then forced to work long hours, day and night, unable to attend school, and often subject to abuse and malnourishment. This perpetuates a cycle of poverty since most of these children never get the education and training needed to obtain a livable wage.

As a peace educator, human rights activist and a father of seven year old son, I am the first to admit that we have done nothing to halt child labor and just about 19 million child laborers continue to work in Pakistan. What inconsequential the government has done is measly cosmetics. This is just to show to the West that child labor is not involved in the production of export oriented goods. We have done nothing to remove the horrific and reckless conditions that push children to child labor. Rather than working together to help build a better world, in which poor children have the possibility to live, to laugh, to play, to share, to care and to transform into responsible citizens, we may fatalistically accept a foreclosed future. Rather than building intergenerational partnerships, the well being of children today and of successive generations may be stolen or colonized through our lack of quality responses.

We can, we must, and we should stop the exploitation of children. In 1999, when the member states of the ILO unanimously voted to adopt Convention 182 on the Worst Forms of Child Labor, the world community made a commitment to stop the suffering of millions of children. It was recognized that ending the commercial exploitation of children must be one of humankind's top priorities. It was accepted as a cause that demands immediate attention and a high priority action. Caught in a nightmare that never seems to end, a significant part of Pakistan’s future endures the worst forms of child labor. More than just words and passing resolutions, child labor is a part of the reality of our world today. No one will say that children should suffer. No one will support that children should work 14 hours a day. But who will step forward to stop this? (www.asifjmir.com)

Thursday, December 25, 2008

Change, change

Why can't things just stay the same? I shouted angrily at the TV news anchor and threw a pillow at the screen and clicked it off with a snort. Suddenly a hissing noise arose from the corner of the room and a white, shimmering mist filled the air. I stood in shock as a tall, wrinkled old man emerged. He was my distant uncle, a grizzled fellow with a long flowing white beard and was saintly dressed from head to toe in white. His eyes twinkled with mischief as he flashed a gap-toothed grin. “Hi, I can take you to a place where people don't have to deal with change and things stay the same all the time.”

Before I could say a word, uncle asked me to simulate a graveyard and look at the polished gravestones stretched far out to the horizon. He said, “Here’s a place where things stay the same and people don't have to deal with change. Life is change,” the aged butch said with a chuckle as he leapt to the top of a headstone. “It's one of nature's mighty laws.” Eons ago, I had this conversation with this old chum.

After I started thinking about change I thought the single biggest change management failure of the 20th century was the old Soviet Union. With highly centralized planning, the politburo tried to tightly control the lives of an entire block of nations. There were to be few surprises and activities that weren't in the official plan. Bureaucratic organizations often try to do the same thing. So do many static, low growth individuals. We need to be on guard against our own rigid thinking and hardening of the attitudes.

The faster the world changes around us, the further behind we fall by just standing still. If the rate of external change exceeds our rate of internal growth, just as the day follows night, we will surely be changed. To the change-blind with stunted growth, it will happen suddenly and seemingly out of the blue.

Change forces choices. If we’re on the grow, we’re embracing many changes and finding the positive in them. It's all in where we chose to put our focus. Even change that hits us in the side of the head as a major crisis can be full of growth opportunities — if we choose to look for them.

We don't always get to choose the changes that come into our lives. But we do get to choose how to respond. Crisis can be a danger that weakens or destroys us. Or crisis can be a growth opportunity. The choice is ours. Which ever we chose — we're right about that crisis. We make it our reality.

Change is life. Successfully dealing with change means choosing to continuously grow and develop. Failing to grow is failing to live. Life is the sum result of all the choices we make, both consciously and unconsciously. If we can control the process of choosing, we can take control of all aspects of our life. We can find the freedom that comes from being in charge of ourselves.

Accepting responsibility for choices starts with understanding where our choices lie. There is a long list of things we can't control, but may have a major impact on us as individuals or as clusters. These include economic and political trends, technological changes, shifts in consumer preferences and market trends, as well as catastrophes wrought by human beings (war, terrorism and etc) and so-called Acts of God, such as earthquakes.

The best approach to dealing with things that cannot be changed is to accept them. When the doo-doo starts to pile deep, we ought not just sit there and complain; we ought to grab a shovel. We may not choose what happens to us, but we do choose how to respond – or not.

Choosing to make changes is hard. It's so much easier to blame everyone else for our problems and to use this as an excuse for doing nothing. We must not give away our power to choose. In his bestseller, The Road Less Traveled, Scott Peck writes, “Whenever we seek to avoid the responsibility for our own behavior, we do so by attempting to give that responsibility to some other individual or organization or entity. But this means we then give away our power to that entity, be it fate or society or the government or the corporation or our spouse. It is for this reason that Erich Fromm so aptly titled his study of Nazism and authoritarianism, Escape from Freedom. In attempting to avoid the pain of responsibility, millions and even billions daily attempt to escape from freedom.”

It takes real courage to accept full responsibility for our choices – especially for our attitude and outlook. This is the beginning and ultimately most difficult act of leadership.

We must engage ourselves into lively debates about those things over which we have the power to act. We can easily classify them as belonging to three categories: No Control; Direct Control; and Influence. It's rarely black and white. For example, we often underestimate the influence we might have in our functions – or in the world at large. Each time a man stands up for an idea, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and crossing each other from a million different centers of energy and daring, those ripples build a current that can sweep down the mightiest walls of oppression and resistance.

We're either part of the problem or part of the solution. There is no neutral ground. Strong folks make the choice to be part of the solution and get on with it – no matter how small their ripples of change may be. (www.asifjmir.com)

Saturday, December 20, 2008

Consumption

Compulsive worship at the altar of consumption has brought humanity to the edge of an environmental abyss—depleting resources, spreading dangerous pollutants, undermining ecosystems, and threatening to unhinge the planet’s climate balance.

Endless economic growth driven by unbridled consumption has been elevated to the status of a modern philosophy. Contemporary economies are capable of producing huge quantities of goods at very low cost. This leads both producers and consumers to regard more and more products as little more than commodities that can be discarded relatively quickly rather than items that embody valuable energy and materials and that should be well maintained and designed for long life spans.

From the standpoint of global justice and equality, the solution cannot be a system of consumer apartheid that upholds western binge habits but denies the poor a decent standard of living. Instead, the rich need to curb their outsized material appetites.

To support the move toward a less consumptive economy, consumers and producers need to pay close attention to the full lifecycle of products. This means they need to concern themselves not just with the characteristics of the product itself, such as how much energy its use may require, but also with the materials and production methods used to manufacture the product and the kinds and types of wastes generated in the process. In addition, both consumers and producers need to consider how effectively goods actually deliver wanted services and comforts, how long products last, and what happens to them once they reach the end of their useful life.

A range of tools is at the disposal of governments, companies, and individual consumers to make progress toward the overall goal of a less consumptive economy. To make a difference, however, these efforts need to be scaled up considerably, and political and structural barriers to change must be struck down.

Most material flows in industrial economies—including waste materials from industry, carbon dioxide and other emissions, and soil loss from farmlands—serve no useful purpose whatsoever and never actually pass through the hands of any consumer. Dealing with these hidden flows will require downsimaterial, zing some of the most destructive activities, such as mining, smelting, and logging. Improving energy and materials efficiency, boosting recycling and reuse, and lengthening the lifetime of products can accomplish this, so that there is far less needs to extract virgin raw materials. But there is also ample space for reducing the environmental impact of the goods and services delivered to consumers—including through dematerialization, clean production, and zero-waste closed-loop systems.

It is much more likely that resource consumption will be minimized and the generation of wastes and emissions avoided if manufacturers factor environmental considerations in from the very beginning when they design products, develop production technologies, and select materials.

Around the world, a growing number of governments are adopting extended producer responsibility (EPR) laws that require companies to take back products at the end of their useful life. These typically ban the landfilling and incineration of most products, establish minimum reuse and recycling requirements, specify whether producers are to be individually or collectively responsible for returned products, and stipulate whether producers may charge a fee when they take back products.

The goal of EPR is to induce manufacturers to assess the full lifecycle impacts of their products. Ideally, they will then eliminate unnecessary parts, forgo unneeded packaging, and design products that can easily be disassembled, recycled, remanufactured, or reused. The EPR approach has spread beyond packaging to encompass a growing range of products and industries, including consumer electronics and electric appliances, office machinery, cars, tires, furniture, paper goods, batteries, and construction materials.

Durability, repairability, and upgradability are essential to lessen the environmental impact of consumption. For easy refurbishing and upgrading, a “modular” approach permits access to individual parts and components, which allows them to be replaced easily. By working to extend and deepen useful product life, companies can squeeze vastly better performance out of the resources embodied in products rather than selling the largest possible quantity. Although fewer goods will be produced, there will be greater opportunity and incentive for companies to maintain, repair, upgrade, recycle, reuse, and remanufacture products, and thus greater business and job potential throughout the life of a product.

Governments and communities can strike a better balance between private and public forms of consumption by expanding organized sharing of facilities and amenities. Government action is also indispensable in overcoming the immense structural impediments to lower consumption levels and to more public forms of consumption. Nowhere is this more pronounced than in transportation: low-density, sprawling settlement patterns translate into large distances separating homes, workplaces, schools, and stores—rendering public transit, biking, and walking difficult or impossible. Improved land use planning, environment-oriented norms and standards, and the creation of a reinvigorated public infrastructure that allows for greater social provision of certain goods and services will help ensure that consumers are not overly compelled to make consumption-intensive “choices.”

Another key area where government action is needed is consumer credit. The savings rate in most countries is falling, while household debt is on the rise. Credit card spending is also expanding rapidly among emerging middle-class consumers. Governments could help consumers by offering advantageous credit terms for certain efficient, high-quality, durable, and environment-friendly purchases. Governments can also design policies that offer tax rebates for the best-performing products, while taxing those that fall short of standards.

An important tool that governments can wield is procurement. By buying environmentally preferable products, government authorities can exert a powerful influence on how products are designed, how efficiently they function, how long they last, and whether they are handled responsibly at the end of their useful lives. Well-designed purchasing rules can drive technological innovation and help establish green markets.

Prominent among the measures governments can take are recalibrating tax and subsidy policies that encourage greater consumption, pursuing pro-environment procurement rules, and establishing appropriate product standards and labeling programs. (www.asifjmir.com)

Thursday, December 18, 2008

Business Principles

The development of the business principles is a first stage for developing and raising the standards of practice in countering bribery. The fair business principles provide a practical tool to which companies can look for a comprehensive reference to good practice to counter bribery. Business principles are becoming an essential tool in the future for businesses and the companies of today should encourage using them as a starting point for developing their own anti-bribery systems or as a benchmark.

I had heard and even observed how the Indian businesses add the extras to win export orders. For toting up luster to the evenings of the visiting business partners particularly from Gulf States, they fix up their visits to discotheques and nightspots. They also maintain luxury flats outfitted with floozy beauties for making the stay of the business guests a unique affair.

Unfortunately, such unethical practices have sneaked into our system via some (not all) Pakistani businesses. That’s what I personally experienced when once as member of a foreign business team visiting Pakistan and staying at a hotel in Karachi, a Pakistani knowing that a Pakistani was member of the importers group, tried unethical tricks to win business contracts. He called from the lobby and told about the undeserved and undesired gift he brought for me.

Years ago in a Lahore-Islamabad flight a passenger seated next to me told that he was visiting Islamabad about a tender business. He was confident that he would win the contract. When I asked about the source of his confidence he pointed to two girls seated in the rear and said, “Those butterflies (exquisite women) will make it happen.”

Most of Pakistan’s private sector contributes to election campaigns of this candidate or that. Interestingly sometimes some companies sponsor candidates of two opposing political parties. The idea is to get unjustifiable favors after the horse wins.

There can be endless list of such companies, which are ready to do anything to get business favors.

It is no mystery that a lapse in business ethics or even the appearance of one can significantly harm the reputation and business of a company. Once a company is suspected, accused, or found guilty of corporate wrongdoing, it often becomes subject to the scrutiny of governmental agencies, the corporate community and the general public.

Private sector organizations must now take account of increasingly stringent domestic and international regulatory frameworks. There is growing corporate awareness of the risks posed by bribery, particularly in the light of scandals, and the public is expecting greater accountability and probity from the corporate sector.

Emphasis needs to be laid on business principles for enterprises to prohibit bribery in any form whether direct or indirect. They should also commit to implementation of programs for countering bribery. These principles are based on a commitment to fundamental values of integrity, transparency and accountability. Firms should aim to create and maintain a trust-based and inclusive internal culture in which bribery is not tolerated.

Thus an enterprise’s anti-bribery efforts including values, policies, processes, training and guidance will become tools of future corporate governance and risk management strategies for countering bribery and unethical practices.

As part of civil society, at macro level, Federation of the Chambers of Commerce and Industry of Pakistan, should work out a framework reflecting size of the companies, business sectors, potential risks and locations of operations. This should, clearly and in reasonable detail, articulate values, policies and procedures for preventing bribery from occurring in all activities under their effective control.

Such programs should be consistent with all laws relevant to countering bribery in all the jurisdictions in which an enterprise operates, particularly laws that are directly relevant to specific business practices.

At micro level each enterprise should develop programs in consultation with its employees, trade unions or other employee representative bodies. It should ensure that it is informed of all matters material to the effective development of the program by communicating with relevant interested parties.

While developing its program for countering bribery, the companies should analyze which specific areas pose the greatest risks from bribery. The programs should address the most prevalent forms of bribery relevant to each firm but at a minimum should cover areas such as bribes, political contributions, facilitation payments, gifts, hospitality and expenses.

A company should prohibit the offer, gift, or acceptance of a bribe in any form, including kickbacks, on any portion of a contract payment, or the use of other routes or channels to provide improper benefits to customers, agents, contractors, suppliers or employees of any such party or government officials.

It should also prohibit an employee from arranging or accepting a bribe or kickback from customers, agents, contractors, suppliers, or employees of any such party or from government officials, for the employee’s benefit or that of the employee’s family, friends, associates or acquaintances.

The enterprise, its employees or agents should not make direct or indirect contributions to political parties, organizations or individuals engaged in politics, as a way of obtaining advantage in business transactions.

Each company should publicly disclose all its political contributions, charitable contributions and sponsorships. It should ensure that charitable contributions and sponsorships are not being used as a subterfuge for bribery.

The enterprise should prohibit the offer or receipt of gifts, hospitality or expenses whenever such arrangements could affect the outcome of business transactions and are not reasonable and bona fide expenditures.

The board of directors, CEOs and senior management should demonstrate visible and active commitment to the implementation of the business principles.

The business organizations should assert elimination of bribery; demonstrate their commitment to countering bribery; and make a positive contribution to improving business standards of integrity, transparency and accountability wherever they operate. Business principles are going to evolve reflection of changes in anti-bribery practice as well as the lessons learned from their use and application by business.