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Bernard Miche,Treasurer of the Union of International Associations, UIA
Our economic system based on liberalism and competition is showing its limitations. Consumers search for the lowest prices and investors seek the highest profit margins: financial indicators have become the sole performance objectives.
The role of associations will be critical, as they are a source of knowledge.
The present economic system has overemphasised short-term profit in a context of overconsumption. Corporations relocate the production of goods and services to countries where low wages may be paid and the cost of doing business is not influenced by social or environmental concerns.
The impact of this type of management is devastating for human resources and social organisation. We are reaching a limit and the planetary financial system is wavering; with bankruptcy of major financial institutions, rising unemployment, reduced credit, company failures and personal bankruptcies...
The short-term vision generated made us lose sight of the long-term logic of sustainable development. This logic depends on a management balance based on four axes: economic development, respect for the environment, creativity and social development. Business leaders must be taught this mode of governance, integrating the new parameters to manage of social, environmental and innovative performance. The balance of management exists where the four axes intersect, and to achieve it the system of competition must evolve into a system of collaboration based on ethics and a paradigm which empowers the actors of the company.
With this in mind, it is necessary to bring in participatory management within an ethical framework, founded on respect, co-operation and support of the individuals taking part. Communication and compromise lead to an ethical decision-making process which respects all parties involved. The 'knowledge of being' must be built in order to influence or instigate the knowledge of production. Managers must integrate into their decisions concepts of intergenerational equity and spatial equity. Economic development must take into account the impact of decisions on future generations in terms of social justice, as well as environmental resources and their renewal, and co-operation must replace competition as the functional process.
The only way to achieve this is to build an organisation where the talents and expertise of each individual serve a collectively determined goal and a shared common interest.
The results of socially responsible economic development are considerable. The leadership of managers is reinforced, and the individuals of the company are empowered; two-way participative management evolves. Collective intelligence and co-creation are stimulated. Motivation, commitment, engagement and creativity are optimised, taking advantage of the diversity of the members. Innovative practices of meeting facilitation, co-operation and dialogue can be introduced.
Nevertheless there are obstacles to be addressed, such as fear of change, emotional reactions to the changes in relations of power, and discomfort for those unaccustomed to admitting to their responsibilities.
The importance of associations results from their ongoing work as a source of knowledge. So far they have been a warning signal of problems in social and environmental justice. Now they will become a stakeholder in the economic world, offering their expertise in search of the right decision, with a key role in checking consistency, verifying the truth of corporate statements on management ethics or sustainable development strategy, checking the reality of information.
In this way civil society will combine with the economic world by offering its knowledge and collaborating in global well-being.
Humanity is at a crossroads. The current economic model is in danger, with growing instability, but we can choose to direct it towards sustainable economic development grounded in ethics and values. We are all responsible for the future.