Why Corporations Exist LO10304

Gayatri Krishnamurthy (gayatrik@giasbg01.vsnl.net.in)
Wed, 02 Oct 1996 22:40:43 +0530

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I don't have much experience of why corporations exist. But I do have some
insights on why some entrepreneurs have chosen to be entrepreneurs. It is
a very complex isssue. Profits are like breathing . Yes.. I agree. But
with practice one can hold one's breath for a long time.

Organisations are started to plug a perceived gap in need fulfilment of
society. The way things stand this may be an acquired need far removed
from anything the society needs.

Take the example of the Indian company TISCO(Tata Iron and Steel Company).
It was started in order to produce Steel which is a crucial need. But now
the company is into so much of social development that their corporate
pitch is 'We also make steel'. Where does the profit come from?Making
Steel .. of course. A short term dip will not shake this company from all
the social development efforts. They have touched so many lives positively
that the combined well wishes itself gives tremendous energy to the
company.

Organisations have to put in their efforts to make the best product or
service as the case maybe. But when organisations look beyond and become
an important part of society by helping in social development, they need
never fear for their existence. Existing only to make profit is at best a
short term goal of a fly by night operator.

I am only giving my deeply held conviction. This is not a research based
statement. In today's context it is as important to know why corporations
exist as it is to know why we are born on this earth.

Gayatri Krishnamurthy
email : gayatrik@giasbg01.vsnl.net.in

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Gayatri Krishnamurthy <gayatrik@giasbg01.vsnl.net.in>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>