Handout 6

Question 1

believes that value creation is the purpose of business. He criticizes the shareholder model

Answer 1

Philippe Naert

Question 2

a theory that focuses on maximizing financial returns on investments with zero regards for customers and employees

Answer 2

shareholder model

Question 3

proposes that economic and societal values can be pursued at the same time

Answer 3

Naert’s model

Question 4

shares some commonalities with Naert in his criticism of the shareholder model.

Answer 4

Jeff Van Duzer

Question 5

Van Duzer proposes that the purpose of business is two (2)-fold:

Answer 5

• To serve customers by providing goods and services that promote human flourishing.
• To serve employees by providing opportunities for meaningful and creative work.

Question 6

The focus is primarily on customers and the broader community. It highlights the role that business plays in bringing products to markets.

Answer 6

To serve customers by providing goods and services that promote human flourishing.

Question 7

argues that the ancient wisdom of Hindu scriptures can be appropriated to business practices.

Answer 7

Indira Parikh

Question 8

It asserts that people should focus on their thoughts and actions rather than the outcomes of those actions.

Answer 8

Bhagavad Gita

Question 9

Entrepreneurs should never engage in action only for the desire of rewards. Acting on worldly desires leads to failures. Do well, and good things will come

Answer 9

Greed is bad

Question 10

Enlightened leaders are compassionate and selfless. “They treat everyone as equals.”
Followers will rally around them and follow their example

Answer 10

Be fair

Question 11

A leader’s actions today can become the “karma” that influences their status tomorrow. Leaders accomplish “excellence by taking action.”

Answer 11

Act rather than react

Question 12

Leaders should view problems within their larger contexts. Show sensitivity to multiple stakeholders, including shareholders, employees, partners, and neighbors.

Answer 12

Seek higher consciousness

Question 13

highlighted some of the core concepts of Dharma (natural law), as enshrined in the Indian Shastras (timeless principles)

Answer 13

Dr. Athreya

Question 14

a righteous duty or the right path to uphold the family and the organizational and social fabric.

Answer 14

Dharma

Question 15

main principles of Dharma that apply to business

Answer 15

• Loka Sangraha
• Kausalam
• Vividhta
• Jigyasa

Question 16

the practice of seeking one’s gains and catering to the welfare
of others. It primarily reflects all the stakeholders.

Answer 16

Loka Sangraha (Public Good)

Question 17

sensible use of resources for future generations. It reflects concern for ecology as well as for stakeholders.

Answer 17

Kausalam (Efficacy)

Question 18

beyond survival, the business must be the engine of innovation, constantly seeking more effective solutions to meet its economic and social expectations.

Answer 18

Vividhta (Innovation)

Question 19

change and continuity coexist. Corporate governance must keep learning from the feedback loop from society and through internal processes of questioning, challenging, debating, and training.

Answer 19

Jigyasa (Learning)

Question 20

embedded in a firm’s business plan, income statements, and cash flow projections. It is a conceptual, rather than a financial, framework

Answer 20

business model

Question 21

makes implicit assumptions about customers, the behavior of revenues and costs, the changing nature of user needs, and competitor responses. It outlines the business logic required to earn a profit (if one is available to be earned) and, once adopted, defines the way the enterprise “goes to market”

Answer 21

business model

Question 22

The Six (6) Considerations

Answer 22

1. A more personalized product or service
2. A closed-loop process
3. Asset sharing.
4. Usage-based pricing.
5. A more collaborative ecosystem.
6. An agile and adaptive organization.

Question 23

Many new models offer products or services tailored to customers’ individual and immediate needs.

Answer 23

A more personalized product or service

Question 24

Many models replace a linear consumption process (in which products are made, used, and then disposed of) with a closed loop, in which used products are recycled.

Answer 24

A closed-loop process.

Question 25

Some innovations succeed because they enable sharing of costly assets.

Answer 25

Asset sharing

Question 26

Some models charge customers when they use the product or service rather than requiring them to buy something outright.

Answer 26

Usage-based pricing.

Question 27

Some innovations are successful because a new technology improves the relationship with supply chain partners and helps allocate business risks more appropriately, making cost reductions possible.

Answer 27

A more collaborative ecosystem.

Question 28

Innovators sometimes use technology to move away from
traditional hierarchical decision-making models to make decisions that better reflect market needs
and allow real-time adaptation to those needs.

Answer 28

An agile and adaptive organization.