Everyone
comes to the table with some amount of "altruistic capital," a stock
of intrinsic desire to serve, says Professor Nava Ashraf
"Altruistic
capital is the idea that every individual has within them an intrinsic desire
to serve," explains Nava Ashraf, an associate professor in the
Negotiation, Organizations & Markets Unit at Harvard Business School.
"In an organization, all the employees already have some of this, in
varying degrees
Altruism has been
defined as “benefiting another as an end in itself”
At all levels of
analysis, altruism results in an improved affect of the helper, higher levels
of trust and moral awareness, increased collaboration, and a deeper sense of
“we-ness” or collectivism all outcomes that organizations are seeking today.
The mission
is not always “margins” for the individuals. People always carry a high sense
of pride when they create an impact through their act, be it in the society or
in the work place.
Managements
are yet to tap the potential of this capital. It can create immense value to
the organization if used effectively like other resources. While the need for
compensations and rewards are not to be undermined, but financial incentives
are not the only guiding factor and people look for recognition beyond monetary
values.
Moreover, a
growing body of research indicates that corporate workers are highly motivated
by nonmonetary incentives, such as positive recognition from their peers. The
pride factor plays a vital role in bringing self satisfaction to the individuals
and that lead to sustained happiness.
Much of the
management in their quest for earning faster and higher returns induces
individuals to deliver higher performance for higher monetary gains. While this
model has been predominantly successful when the firm is doing well and is in
growth trajectory but when there is turbulence, it is the altruistic capital
which an organization can depend upon to come out faster from the crisis.
What is missing from
organizational analysis is the notion that other factors can positively impact
shareholder Wealth, namely stewardship, collaboration, and critical thinking
skills
The time has come to
consider ways to shift the focus from individualism and short-term goals to
deeper Organizational values such as cooperation and sustainability. Instead of
rewarding individual performance, organizations must begin to promote behaviors
that lead to higher levels of trust, ethical awareness, and collaboration.
It is urgent that we
cast aside old business models and embrace those that value and reward doing
the right thing.
Few examples of
Capitalist companies practicing Altruism
A Sight For Sore Eyes: Aravind Eye Care System – India:
The
hospital has trained
individuals in eye care and created a franchise system that makes care more
accessible. It handles more than 2.6 million outpatient visits and performs
more than 300,000 surgeries. The revenue from paying clients fuels growth and
expansion and covers subsidies to treat the poor. Aravind says they are able to
treat almost half their patients at low to no cost.
Where The Owners Do All The Work: John Lewis
Partnership - The British department store chain:
They put their people
first, making them partners who have a say in how the company is run and
receive a share of the profits. In consequence, according to their partnership
constitution, everyone involved works toward "the happiness of our
members, through their worthwhile and satisfying employment in a successful
business." John Lewis even owns and runs five holiday resorts for the
benefit of its employees.
John Lewis employees
stay with the company twice as long as is average in the retail industry.
Upping The Ante: Dutch
Postcode Lottery
When Boudewijn
Poelmann started the Dutch Postcode Lottery in 1989, he wanted the business to be all
about communities raising funds and supporting organizations that advocate for
a fairer, freer and greener world.
The postcode lottery
model is a unique one. Individuals don't win -- communities do. If your
postcode comes up as a winner, everyone in your community who has bought a
ticket shares in the winnings. There have been great block parties bringing
everyone together to celebrate.
To conclude, existing
business models often reinforce “the end justifying the means” mentality when
creating corporate objectives. While shareholder wealth and/or achieving
organizational goals are always top of mind, building altruistic management
philosophies into the workplace might lead to surprisingly significant business
growth.
Measurement of
altruistic behaviors is a cutting-edge idea. Aligning pro-social behaviors to
business performance in order to manage and reinforce them is the “flip side”
of business, but likely, the side that will deliver the highest, most enduring competitive
advantage
Valuable feedback's
are welcome…
T Margabandhu
M/s Marggo India
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