A brief about the dilemma of Corporate Leadership
The first and the greatest economic downturn of this century continue to haunt the world like an unbeatable demon. It is over half a decade and the great economic battle of this century continues to take strides both sides. The best of Economist and our Business leaders have been trying to curtail the impact of the Great recession which started in December 2007 and took the world economy sharply down in 2008. As the peaked U.S. Housing bubble of 2006 rip open, the U.S. real estate pricing crashed, resulting in devaluation of securities tied and turning it into global financial turbulence.
The financial crisis of US acted like the first blow to start a chain reaction affecting the entire world economy with greater damage to some countries than others. The cyclonic effect of the recession has been creating the turbulence in the world economy by its own side effects which further deepens the damage and acts as biggest obstacle in complete recovery from the Great Dip.
Major evil forces which are creating the turbulence such as U.S. sub-prime mortgage crisis, European Sovereign debt crisis, trade imbalance & high unemployment which have born out of the recession are completing a chain process to become the biggest obstacle to full recovery from recession.
Global Business leaders & Economist have been fighting a heroic battle, by first curtailing the chain propagation of the Evils and rebuilding the confidence of Economy. For this the Global leaders activated G-20 nations to unite and help each other recover, it was pledged in the Washington summit in 2009 to stop protectionism & have a proper trade balance. Many countries took a resort to increase interest rates, and cut down on expenses to protect themselves from getting in the grip of the devil.
But while the Global leaders try hitting the devil right at its heart; it has shown lesser mood to loosen its grip. The situation appears melancholy blue with the recession standing tall like the Demon Raktbij who multiplied from its own blood droplets, The only way to kill this devil is to burn the devil with its every drop of blood together. And this calls for Global business leaders at every front to come together and understand that even as the situation has created pressure of cutting down expenses, the only way to curtail the recession and bring the global economy on track is to create employment and invest in new projects. This may sound illogical in present context but keeping long term eyes and continuing to boost trade and investment is a promising way which can hold back the chain initiators and bring back confidence in the economy.
It is important for the business influential’s to hold their nerves during this phase, and help build confidence of their employees by offering them stability. Avoiding rough decisions of work force trimming, and continuing investment is what would bring back confidence that would pull the market forces upwards.
The present day situations have put a challenging task at the hands of business leaders, who need to channelize young energy of youth in organizational values and ethics. Organizational cultures have strong adhesive force which binds its people and make the organization efficient. Using high standards of ethics and bringing ownership in its workman may save an organization more than what it would ever imagine with any cost cutting. It is well known fact that no organization is free from wastes.
True business leader in today’s scenario would be one who would be able to win the trust of its employee and clients and keep a long term eye. Who would make the ethics and trust the glue of organization. Holding on trustworthy clients and making the business efficient needs to be the focus, to get expense cutting. By eying more operational efficiency organization can continue to invest without loosening its work-force and without any compromises
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