What is the Business of Humanity®?
Arvind and the Business of Humanity®
Arvind Ltd., the flagship company of the Lalbhai Group, is an iconic example of the Business of Humanity® proposition that economic value added and societal benefits are synergistic. Mr. Sanjay Lalbhai, Chairman & Managing Director, Arvind Ltd., shares his perspective on sustainability; addressing issues such as the growing incidence of farmer suicide by creating new business models; "de-risking" the new business models; and the evolving nature of Arvind's historic commitment to social responsibility – from giving to good causes, through philanthropy that is carefully managed by Arvind's foundations, to incorporation of social concerns into Arvind's business model.
A Perspective on the Business of Humanity®
The Business of Humanity® project seeks to improve strategic decision making in organizations.
Using case studies and actual business examples drawn from firms studied in Brazil, China, Czech Republic, India, Russia and the U.S. the project explores the proposition that:
Strategic decision making that employs criteria falling under the rubric of "humanity" - in its two dimensions of "humaneness" and "humankind" - leads to superior economic performance.
The project documents the management processes and strategic perspectives of companies that practice the Business of Humanity® to promote awareness among managers and academics, to motivate discussion, to examine the economic consequences, and to demonstrate how to practice the Business of Humanity®.
There are three bases and motivations for the project:
- The short- and long-term economic and strategic advantages of "humaneness" in managerial decision making. Humaneness in business decision making focuses on criteria and programs related to safety, quality, diversity, environmental sustainability, gender equality, social sustainability, integrity, ergonomics and good design.
- The imperative of recognizing "humankind" in innovating strategy. Humankind in business decision making recognizes the global context of decision making and draws attention to the needs and potential of markets - at the "bottom of the pyramid" - with low per capita incomes.
- The inadequacy and potential dysfunctionality of accounting profits as a guide for managerial decision making, especially when:
- facing crises,
- innovating strategy, and
- confronting wicked problems.