ROI, ROCE, EPS, PE, EBIDTA all these words have assumed so much importance in business world that what it takes to achieve is completely ignored. Cost of achieving better and better these figures is so huge that it consumes humanity , environment , ethics and every other things.
Capitalist society we are in has attached extreme importance to the figures/ratios stated above. All our business actions are only measured on these parameters. There is no measurement of corrupt practices indulged , environment polluted , stress generated among people working for the organisation , customers fooled , under-served and even cheated to achieve these ratios.
Single minded focus on financial ratios is killing the ethical and human factors in business. Growth at all cost is doing harm to the society and benefits handful of shareholders. We are talking about sustainable business practices keeping environment in focus however what about sustainability of ethical norms human sustainability ?
We have seen in the movie Guru , one company takes on the Govt rules by breaking and indulging in unethical practices. Who has authorised them? What if every company start doing that? Just for personal gain ethical standards have been broken and justified for business & share holders wealth creation. We live by quoting that as an illustrious example. It is nothing but collapse of value system and unethical conduct for personal gain of a few.
Just focus on financial success is the cause of all these nonsense prevailing in business world these days. There are a few companies like Zappos.com which make DELIVERING HAPPINESS as their business mission and not only financial ratios. We need more and more of such companies and rest assured in times to come these are the kind of companies which will be valued more than just financial ratio focused companies. Non manipulative and socially sustainable measures will be in demand,
Any one of the Indian companies dare to do things differently ?