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social
responsibility & business valuation by david mager
consenual
democratic governance system by terry mollner
Journal Business
Doing Well By Doing Good - Social Responsibility
and Business Valuation
By David Mager
One can feel good about being a socially
responsible entrepreneur - all the way to the bank. The biggest
secret about socially responsible business is that being Green makes
Green. For example, New Hampshire based Stonyfield Farms Yogurt
is one of the most socially responsible companies under the sun.
They recently sold a minority stake in their company to Group Danone
- the European food conglomerate which is the parent company of
Dannon Yogurt and Perrier. At a time when other stocks were taking
a nose dive, the valuation for their shares provided Stonyfield
shareholders with an annualized return on investment of 22% going
all the way back to the 18 years since its inception. In addition,
this deal provided for fully embracing Stonyfield's socially responsible
practices. Wow!
When working with Ben & Jerry's Homemade
Ice Cream in their sale, Meadowbrook Lane was able to help Ben &
Jerry's get $127 million on top of the original $200 million offer
(a 64% increase) because of Ben &Jerry's socially responsible
practices.
Looking for a good investment? Look at
socially responsible companies.
Stock values are not a numerical calculation
of the profits of a company times the value of money divided by
the number of outstanding shares (Price/Earnings Ratio). They are
set at the market by supply and demand. Companies for which people
believe have a great future have high Price/Earnings ratios. And
companies for which there is little faith in their long term viability
have low Price/Earnings ratios.
Companies with bad environmental performance
records (as indicated by the Toxic Release Inventory reports) and
other indicators, have low price earnings ratios and poor stock
values, regardless of their profitability. Stock analysts carefully
review public companies' environmental performance as part of the
basis for making their recommendations. A commitment to making Green
products, processes and services can sometimes make much more money
in increased stock values than it can in increased sales and profit.
There are a large and growing number of mutual funds, such as Domini,
Calvert, Pax World, Green Century, Parnassus, Trillium, Aquinas,
and Citizens which invest exclusively in environmentally and socially
responsible companies. Most of these funds have outperformed the
S&P 500. This author recently worked with the Center for Fiduciary
Studies in developing a standard for determining the fiduciary responsibility
of the thousands of fund managers and mutual funds (www.ffstudies.org).
Based on this standard, which measures based solely upon a company's
performance and responsible management practices, Domini, a socially
responsible investment fund, outperformed almost all of the other
funds.
And there are other compelling reasons for being socially responsible.
It is estimated that over $2 trillion of investment capital is now
screened for socially responsible factors. This means that if you
are a socially responsible company looking for capital, you have
access to $2 trillion more in investment capital than companies
which are not socially responsible. According to the IRS, the next
few years will see a huge transfer of wealth (estimated at $11 trillion)
as the parents who lived during the depression and World War II
transfer their wealth, through inheritance, to their baby boomers,
most of whom embrace many of the principles of social responsibility.
Guess where that $11 trillion will end up being invested? In Socially
Responsible Businesses.
To summarize, social responsibility makes dollars and sense.
The Consensual Democratic Governance
System
Begun by Mahatma Gandhi
During the Last Two Years of His Life
By
Terry Mollner
President
Trusteeship Institute
USA
The purpose of this presentation is to tell the story of the new,
consensual governance system Mahatma Gandhi began to create the
last two years of his life - at the end of the 1940s. It is also
the story of Jayaprakash Narayan's efforts in the 1960s and 1970s
to pick up where Gandhi left off. He later converted it into a political
party and successfully use it to overthrow Indira Gandhi in the
1970s. Finally, we will present a modern design of such a governance
system that can begin with Tibet but end up being available to people
around the globe.
In Gandhi's judgment it was to be a more
mature governance system then the majoritarian democracy systems
prevalent in the developed nations today. My hope is that the Tibetan
Government might reflect on some of the wisdom Mahatma Gandhi had
uncovered to create their new governance system.
Gandhi Starts Over
To Create a More Mature
Democratic Government
The last two years of Mahatma Gandhi's
life he basically renounced all that he had done before and returned
to the villages to create a new governance system. People thought
that maybe Gandhi was losing his mind. He was the most powerful
man in India; yet he left the halls of power and returned to the
villages to start something brand new. However, Gandhi's judgment
on himself was that he had made a large mistake in creating the
Congress I Party as a political party in a competing political party
system.
Gandhi understood the universe to be one
thing where all the parts had the purest of conscious and unconscious
primary intentions by nature. Nature was fundamentally cooperative,
not competitive. He believed that all things were cooperating with
one another for the good of the one whole - the way we think of
the parts within our bodies cooperating for the good of the whole
body. Therefore, to build a political system based on competition
rather than cooperation was to consistently polarize people into
competing camps. That was the opposite of the kind of community
and society Gandhi wanted to create. He believed this was going
in the opposite direction of nature and it would, therefore, consistently
bring misery.
Further, he believed that he had perpetuated
this immature approach by creating the Congress I Party as a competing
political party in such a system. He judged that this mistake made
him personally responsible for the separation of India into India
and Pakistan. He decided that with what energy he had left in him
he needed to show the way to the world of how to create a more mature
governance system before he died.
A majoritarian democracy was not really
as much a democracy as it was the last form of dictatorship before
real democracy - the dictatorship of the majority over the minority.
Rather than the leadership of the opposing groups sitting down and
talking to one another, they organized their armies of followers
and fought each other through ballots and the media
and seldom
spoke to each other. It perpetuated war games rather than love games.
The People's Committees
So he returned to the villages and began
to create what he called "Peoples Committees (PC)." It
was based on the ancient panchayat tribal systems of India. The
way it functioned was as follows.
The main affinity groups in the village
were identified. In today's small towns it might be the Downtown
Business Association, the Ministerial Association, each church or
religion, the Manufacturer's Association, the Rotary, the Women's
Association, the major non-governmental organizations, the Farmers
Association, etc. Each group would be invited to elect their senior,
most mature person, to serve on the PC. The only people who could
not serve on the PC were those directly involved with electoral
politics.
The reason was that they were going in
the opposite direction. They were organizing against an opposition.
The PC was based on consensus. The PC was looking to find common
ground and to co-create greater understanding. It was building a
wider context of agreements among all the people within which the
difference would begin to appear smaller and smaller rather than
larger and larger.
PC would be open for anyone to attend.
In fact, the entire village was encourage to sit in a circle around
the PC. The purpose, as stated above, was to work toward a wider
and thicker donut of agreement around whatever disagreements may
be present. The agreements were always by consensus, unanimous vote.
Gandhi's belief was that since this was
a more mature way for people to relate, the result would be that
the elected officials would never be able to go against the consensus
decisions of the village. The result would be that people would
slowly shift their priorities and give greater priority to the PC
than to the competing political governance system. In this innocent
and non-violent way, the PC would become primary and the competitive
process would become secondary and, hopefully, eventually be dropped.
Jayprakash Narayan Picks Up
Where Gandhi Left Off
Gandhi had only begun to create these People's
Committees when he was assassinated. There was a man named Jayprakash
Narayan (JP) who was head of the Socialist Party in India during
the time in the late 1940s that Gandhi began to work on this. Especially
after hearing Gandhi's conversations with Mao Tse-Tung, he became
disillusioned with the perspective of the socialists and resigned.
He went to the ashram of Vinoba, one of Gandhi's followers, where
he meditated on these things from the late 1940s until the mid-1960s.
At that point he came across an account of what Gandhi was trying
to do the last couple years of his life and realized that Gandhi
had discovered how to create a more mature governance system.
JP left the ashram and began traveling
around India telling this story to students. He then organized them
to go into the villages to set up People's Committees. They did
this all over India.
People's Committees
Get Converted Into the Janata Party
In 1975, Indira Gandhi decided to let her
opposition out of jail and call a national election for about 6
weeks away. Her belief was that none of her opposition would be
able to unite and organize against her in that short period of time
and she would end up with such an overwhelming victory that she
would have a mandate to govern.
Some of her opposition were Gandhians.
They went immediately from the jail to JP's bedside. He was on a
dialysis machine and thought to be dying. They argued that the only
way to defeat Indira Gandhi was to turn the People's Committees
network into the Janata Political Party. This would give them a
national organization. They could then identify candidates and get
enough of them elected to overthrow Indira Gandhi.
JP said no. He explained that the entire
purpose of creating the People's Committees was to create a more
mature governance system then the current competitive political
party system. He had to be true to Mahatma Gandhi's dream. It was
his sacred responsibility. The reason so many People's Committees
had been created so rapidly was because people liked them and preferred
them to the other political system. To abandon it now would be a
travesty.
But the opposition argued that it was the
only way to defeat Indira Gandhi and it was necessary to defeat
her to save India. Finally, after much arguing, JP agreed to convert
the PC into the Janata Party to defeat Indira Gandhi.
In six weeks, they found enough candidates
and had enough credibility that they defeated Indira Gandhi in the
parliamentary system. JP became known as the second father of India.
He hand picked Moraji Daisai to be the Prime Minister.
JP Reveals His Error
In 1979 I was in India. I was a consultant
to a man who was the grandson of one of the ruling families of India,
the Poddars. He had a successful business in the USA and wanted
to re-organize it into a trusteeship business.
"Trusteeship" was Mahatma Gandhi's
word for his theory of economics. He believed that we were all "trustees"
of our wealth and skills and were to manage them for the good of
all and only take what we needed and no more. We were not "owners"
who were to use all we could get our hands on for our own self-interests.
The Indian American business man hired
me to assist him to convert his business into a trusteeship business.
He, fourteen of his top employees, and I journeyed to India to study
trusteeship. We were able to have a meeting with JP because the
wealthy Indian-American business owner was the man who had provided
JP with the dialysis machine.
At this time JP was the spiritual ruler
of India. A few days before we met with him, there had actually
been fist fights in the Lok Sabat (the Parliament) over the issue
of allowing the slaughter of cows so people could eat the meat.
The Hindu religion, as you may know, is against the slaughter of
cows for food. The next day the front page of the India Times reported
that JP believed it was too early in the changes that were occurring
to take on this issue and that it should be tabled for a later time.
The following day the Lok Sabat voted unanimously to not slaughter
cows. This was the kind of power JP had in India at the time. He
was the spiritual leader, the second Father of India.
When we met with him we had a half an hour.
Then he would have to return to his dialysis machine. I asked him
questions about trusteeship for the entire half an hour. I knew
what he would give as answers to all the questions. I was focusing
on using the time to establish a very deep, quality relationship
with him. I really only had one question I wanted to ask him.
At the end of the time I said that I had
one last question for him and it would be OK if he chose to not
answer it. I would understand.
"Go right ahead," he said.
I said, "If you had to do it over
again, would you have turned the People's Committees into the Janata
Party." The public officials and news media in the back of
the room, who had been jabbering away, suddenly shushed each other
into silence. I was fully aware that I was asking the question that
was not to be asked.
JP gave me the politically correct answer.
"It was a difficult time in the history of India. We had to
take a decision. We looked at all sides of the issue and concluded
that it was best to create the Janata Party because we believed
it would be best for India." Then he looked me straight in
the eyes steadily without blinking and said, "Does my intelligent
American friend have any other questions for me?" He gave a
certain kind of emphasis on the word "intelligent" as
he starred deep into my eyes such that I knew clearly what he was
saying to me. Without blinking either, I looked straight back into
his eyes and said, "Thank you so very, very much."
With his eyes he had clearly communicated
to me that it had been a mistake to convert the PC into the Janata
Party. He was now stuck making the best of the situation. But I
could feel his sadness. He believed he had let Mahatma Gandhi down.
He had come to see the importance of creating a consensual governance
system based on oneness instead of separateness as Gandhi had and
then he gave into the pressure of a moment and let it slide back
into the less mature system. There was a quality in his eyes of
an older man speaking in code to a younger man who saw the truth
of his situation. With his eyes he was saying, "If you see
the mistake that both Gandhi and I made, you have a responsibility
to step forward and correct it and not fail like we did." It
was the eyes of an elder speaking to those of a younger. I was in
my mid-thirties at the time.
Six months later, JP died. On his death
bed he told his secretary to report that it had been a mistake to
have turned the PCs into the Janata Party.
The Janata Party ended up being attacked
by its enemies to the point, as with all parties in competing political
systems, people did not know what was true or false. So it became
seen as just another corrupt political party. It lost the next election
and soon disappeared from existence.
Tibet Could Pick Up
Where Gandhi and JP Left Off
What I believe is possible is for Tibet
to pick up where both Gandhi and JP left off.
It could create a cooperative, co-creative,
consensual governance system. Each village or group of 50-100 adults
could create their own PC or representatives from the different
affinity groups in the village or group. This group would make decisions
by consensus. Since it is by consensus, everyone would be working
to find the common ground that all could agree upon. The focus would
be on the context, the donut, of agreement getting thicker and thicker
and the differences inside the donut of agreement getting smaller
and smaller. People would be talking with each other for the purpose
of finding greater and greater common ground.
As mentioned earlier, in the competing
political climate the right wing religious leader, the left wing
progressive, the feminist leader, the minority leader, etc. never
talk to one another. They organize armies and fight each other through
the media and ballot boxes. This is a very unhealthy, immature,
polarizing, and slow change way for evolution to occur.
In the PC system, these leaders are sitting
around a table and talking to one another with the entire village
watching. They are seeking to find where they can agree on things
and how they can accept and adjust to the places where they disagree.
They also are committed to continuing the conversation for the purpose
of sorting through the disagreements to as much agreement as they
can find. The focus is on finding truth together, not on winning.
And the entire village is free to watch
this process, and participate at times as well. This applies pressure
to be truthful and to focus on nothing other than finding deeper,
wiser, and self-evident truth together. This is a growing process
rather than a fighting process. By staying in the conversation with
one another, and the community insisting on openness and honesty
in the search for truth, and more and more truth is uncovered and
agreed upon as people stay in the conversation. Once a truth is
seen by all, sooner or later there is no ability to act like it
has not been seen.
There are people on the planet who still
think the Earth is round. Given what we now know, who does not believe
that in a caring conversation these people would not come around
within a reasonable period of time to agreeing the Earth is round.
It is the conversation seeking agreement which brings truth to the
place where it can become known. If people are left alone to fight
in ignorance, they do not find truth.
A Design of People's Committees For Our
Time
The way I see some of the particular structures
unfolding is as follows.
Each person who so chooses becomes a member
of the government system. A person can join or leave at any time.
Each person has one vote.
Each person then chooses to be part of
a group or village. Each person can choose to be part of whatever
group he or she chooses to be in.
It could be the immediate village. It could
be a close group of families and friends. It could be with a group
at work, or at church or temple, or a professional association,
etc. The person can only exercise his or her vote through membership
in a group of 50-100 people, a People's Committee. This is to encourage
the re-villaging of people's lives in a modern context. Many people
in the modern world have forgotten what they are missing by not
being in a closely knit community of friends.
Then each PC can elect a representative
to a federation. Once this first federation has more than 50 people
in it, but less than 100, it elects a representative to the next
level of federation, a second level federation. Stages of federations
continue until the highest level federation has more than 50 but
less than 2500 people. Once it reaches 2500, each group of 50 elects
a representative to create the next highest stage with 50 members.
This last stage of federation is the Congress.
It, like a board of directors, chooses the chief executive officer,
the President. The President chooses a cabinet and manages the country.
The Congress establishes policies and the President executes them.
Once again, the cooperative model argues for having a system of
priorities given priority over a system of checks and balances.
The members have the most power. The Congress, like a board of Directors,
has the second most power. The President has the third most power.
What is key, however, is that priority
is given to the freedom of the individual. Second priority is given
to a system of governance that is attractive to all so all will
freely choose to re-village their lives and give priority to the
common good. Third priority is given to discussions of stages of
maturity and eldering people up those stages to the higher stages
of maturity. This has been discovered throughout the ages as the
most important area for any society to priority because it is the
best thing to do for the happiness of the individual as well as
the community as a whole. This conversation is virtually absent
in our modern, industrialized societies.
Of course, for laws to be passed it would
be necessary to have this Congress and the President be in agreement.
Then there would also be a judiciary, and many other governance
structures.
But the important thing to note is that
this is a system of government people can freely join or leave at
any time. In addition, it governs by attraction rather than by force.
Hopefully, people are eldered through stages of maturity to where
they choose to be a responsible member of the community. Laws such
as those created by any other governing body in the world can be
enacted. But the main purpose is to teach a code of behavior that
people choose to commit to such that there is less and less a need
for force to deal with unhealthy behavior.
Also, every effort is made to leave as
much power as possible to the lowest level of power, the individual
and the PC. Power flows from the bottom up and then only when absolutely
necessary. It is governance by attraction, not by force.
A Parallel Elder System
There could also be a parallel elder system
of government that would be created in the same way. It, however,
would have no actual legal power. Its only power would be the power
of persuasion.
This system of elders - men and women over
50 years of age, or, perhaps a system for the monks, would give
priority to watching to be sure all was being done openly and in
a mature way. If it was not, it would bring attention to it until
it was cleaned up. The people would greatly value this elder group
which nurtures and elders the people and the system and keeps everything
above board and wise.
The Dalai Lama could sit at the top of
this system. This would be the spiritual leader of the nation. His
power would not be by force but by loyalty and respect. This is
the greatest power.
It is the power enjoyed today around the
world by Nelson Mandella and the Dalai Lama. It is the kind of power
JP and Mahatma Gandhi had.
A Nation Based On Agreement
Not On Geography
Is A More Mature System of Government
Notice that no one chooses some one for
an office accept in a group of 50-100 people who know each other.
There would not be an election of someone by 250 million people
in a competitive process. Any group would be free to remove a person
at anytime, but it would be assumed that they would be chosen for
a certain period of time, such as two to six years.
The most striking aspect of this governance
system is that it can be set up without regard to defining the nation
by land. It is a nation by agreement, not land. It can also be a
nation by land. But this system of government can be set up with
Tibetans in China, among those in India, and among those anywhere
in the world.
In fact, it can also be allowed to go beyond
the Tibetan culture to allow for anyone on the planet to set up
a PC. In other words, what is done for Tibet could be extended to
people anywhere with the goal of creating a parallel, complementary
governing system for the entire planet based on consensus - Gandhi's
dream. The Tibetan section could be one section of such a system.
This would be a way to extend democracy - consensual democracy -
around the planet without confronting existing governments. Then,
just as Mahatma Gandhi believed, it would eventually be the governing
system most highly valued by the people. The dictatorships or majoritarian
democracy system would become secondary. And Tibet will have created
not only a more mature governing system for Tibet but for the planet
by allowing others to participate as well.
If the government that one is primarily
a part of is defined by the geography of one's birth or where one
is currently living, there is not free choice. However, if it is
defined by agreement, anyone anywhere on the planet can join it.
This, therefore, is a more mature governance system also because
one can choose to join it or leave it at any time. Also many different
ones can emerge based on different believes, but by their very nature
they will federate together for the purpose of building as much
common ground as possible. It is the nature of the consensual system.
Conclusion
As you can imagine, there is much more
that could be discussed. But this is the beginning of the idea of
a consensual democratic governance system based on the idea originally
put forth by Mahatma Gandhi.
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