KUALA LUMPUR – The Covid-19 pandemic, which has led to a worldwide economic crisis, has proven that corporations can no longer say they are in the business of being in business without a care for society’s development.
Speaking before today’s launch of the Horasis Global Meeting, PETRA Group chairman and chief executive Datuk Dr Vinod Sekhar said true capitalism is not like what is taught in some business schools – that profit is king – and instead, it must create a win-win situation for all involved, especially society.
True capitalism is about sustainable wealth creation. The two important words are ‘sustainable’ and ‘creation’. You need wealth, but it must be both sustainable and created. Socialism is nonsense, it doesn’t work. It’s a nice idea. We know communism is a waste – a total failure.
“Unencumbered capitalism is a serious problem; it’s not capitalism. True capitalism, and I refer to it as social capitalism, it’s when you say – yes, we all make money. I want my private jet, I want my fast cars, yes, I like living in my beautiful house, or when I travel, I want to stay in a luxury hotel.
“That is all fine, but that cannot be all there is. If you are smart enough to make that kind of money and successfully build businesses, surely you are smart enough to play a role in fixing societal problems.
“And when you fix societal problems, the society that you are working in is enhanced, is stronger, better. If it is stronger and better, then it is my market that becomes stronger and better – and I get to make more money,” said Vinod, who is co-chairman of the meeting that brings together policymakers, economic leaders, businessmen, academics and civil society representatives from over 20 countries in search of solutions to global issues such as poverty, and unequal access to education, job opportunities and basic necessities.
Vinod will speak in one of the plenary sessions titled “Taking Action for the Sustainable Development Goals”.
Now is the time of economic leaders instead of just politicians
Furthermore, Vinod argued that this time of global crisis is the perfect time for financial leaders to shoulder the burden, and uplift the various communities and societies that they work, play and live in.
He stressed that the world’s top businessmen must understand that society’s problems are their problems, and that companies must no longer disengage from society, or risk losing out in the future, when the market shrinks as a result of economic disruption.
Asked if his call for corporations to stand up and step up signifies a failure of governments worldwide, he said it merely signals the changing times.
“The days of business leaders, economic leaders saying, ‘we are not involved in politics and societal development, that’s what we pay taxes for’, are gone. That’s history,” said Vinod.
“It’s not the failure of the government. It’s that up to date, we have taken the old-fashioned thought of government does government (work), politics is the government, and that business is business. And, business always said that our job is to build industry, make money and pay taxes.
“The rest is yours (your job). What we’ve now begun to understand is that if society fails, if society’s development is not achieved, business cannot operate. There cannot be growth. There cannot be sustainable wealth, there cannot be prosperity.”
He said the pandemic has made it clear that without solutions to help society move forward and bring up its poorer section to the middle class and more, no economic solution can work, as there will be a smaller market.
Society as a whole must ensure each individual has basic needs met
Under his social capitalism ideals, Vinod proposed that at the very least, society at large must ensure that each member of the community has their basic needs met.
This entails the bare minimum of three square meals a day, a roof over their heads, access to medical facilities, and free education up to the university or tertiary level.
Such assistance can create better opportunities for wealth and job creation – leading to a stronger and better market as a whole.
“This world is wealthy enough to make sure that every single human being has three meals a day, a safe place to sleep in, education to upscale yourself – that’s it. If you want to be a tycoon and be a billionaire, that’s up to you. If you are happy where you are, then stay where you are,” said Vinod.
“Society will pay for it. But if you want to be a doctor, a lawyer, then go ahead. If you look at the wealth in the world, it’s more than enough to do this. It’s just that we haven’t put our brains to make it work. It’s a pittance to what wealth the world has.”
The rich don’t sacrifice their lifestyle when they help; they’re useless when they don’t
Vinod argued that the wealthy, the mega-rich who can afford to mobilise large-scale assistance for the impoverished in their community, will not forgo any of their creature comforts or the lifestyle they are used to.
Using himself as an example, he said helping others is not a big deal, and has hardly left a dent in his wallet.
“It’s not about sacrifice. Here’s the thing. We (PETRA Group) give a lot. Philanthropy is part of our business. But let me tell you, it has not affected my lifestyle. I have sacrificed nothing.
“So, what’s the big deal? It hasn’t changed what car I drive or buy, it doesn’t change where I go for holidays, it hasn’t changed what I’m willing to buy for my wife, kids or friends. It hasn’t changed my life even one iota. So, I haven’t sacrificed anything, have I?”
He expressed joy that more of the “one-percenters” – the world’s super-rich – have decided to render aid to their communities.
Using the term “useless” for billionaires who hoard their wealth, Vinod questioned the purpose and use of accumulating such riches for one’s own self-interest and benefit.
What use are we if we hoard money and do nothing else? How useless are we, if we are smart enough to build all these businesses and make money, but we are not getting involved in fixing societal problems?
“What do you call someone like that? Selfish? Probably worse than that, if you are smart enough to do all these things and you have so much. It is not about giving all your wealth away.
“Sometimes, it’s not even wealth, but using your acumen and ingenuity to impact something more than yourself. You only have to do something. Not necessarily a lot, just something to help your community.”
The invitation-only meeting is usually held in the seaside resort town of Cascais, Portugal, but this year, it will be conducted virtually due to the coronavirus pandemic.
PETRA Group is a strategic partner.
For more on the meeting, visit the website here. – The Vibes June 8, 2021
