HUMAN GOVERNANCE REALIZATION OF ONENESS Aziuddin Ahmad PhD Professor of Risk Management Graduate School of Management University Putra Malaysia Responsible Leadership Summit 2009 Shaping Our Future IMD Lausanne 1st – 3rd February 2009 1 DISCUSSION CONTENTS Evolution of business, governance & role of leaders ONENESS in life which is in line with new sciences & ancient traditions Bringing back human to the centre What does it mean to be a HUMAN? HUMAN GOVERNANCE • What is HG? • HG vs CG? 2 THE MESSAGE Transform mindset from centuries-old secular mechanistic ‘command-control’, outside-in, quantitative & positivistic to the quantum mould Return to fitrah (innate nature), inside-out, sacred human-centric, principle- & values-based, tawhidic (unbroken wholeness epitome) meaningful leadership with sense of purpose Actualize a qualitative, subjective, spiritually devolutionary sacred view, morally & divinely ordained world bounded by SPIRITUAL standards & in line with quantum physics 3 THE APPROACH Turn into the past in order to prepare for the future Regain the original meanings attached to the words Revisit the etymology of words Must be looked upon in its ontological context Not in its secularized meaning devoid of spirituality 4 EVOLUTION OF BUSINESS • Corporate leaders make decisions • Business is the leading segment of society to achieve societal well-being • Overtaken government’s role. Government facilitates • Business NOW Rules • HUMANS in life make decision • Getting through dilemmas (permanent texture of life) require decisions 5 • No longer the same as before - then process was THE king • Knowledge-based vs conveyer-belt, machine (mechanistic) economy • If you manage business/corporations TODAY using YESTERDAYS model, you have no business/corporation TOMORROW! • But today’s models ARE yesterdays! 6 HOW SACREDNESS LOST ITS CENTRALITY IN HUMAN BEING Profane & Sacred Secular & Spiritual fictively separated Secular Being Natural Person Artificial Person 7 LIMITATIONS OF CORPORATE GOVERNANCE HOW MANY MORE? SUB-PRIME, BANKS MADOFF, SATYAM AND MORE SOXs!!! 8 CORPORATE GOVERNANCE The Unfolding Played Out & Still Playing Out • Corporate Governance mechanistic structure is already broken • Cannot be repaired by patching/gluing, more regulations or legislation or policy • Need to reinvent/redesign – Get out of conveyer-belt mentality • We can't solve problems by using the same kind of thinking we used when we created them – Einstein 9 • Limitation of valuing only what can be measured • A CLASH! There is tension between human values & performance oriented value • But ONENESS & INTERCONNECTEDNESS is a given • NEED new measures to measure what is meaningful NOT the measurable only – Einstein • Need to balance continuum of paradox (yin yang) • Need a NEW GOVERNANCE STRUCTURE 10 NEED TO RETURN TO THE REAL MEANING OF BUSINESS (AN ENTERPRISE/PRINCIPAL ACTIVITY) Is the purpose of business just business? Leadership shapes & plays a critical role Must it transcend business? Financial bottom-line only? Is it not an enterprise to reach felicity? MUST be profit WITH BARAKAH 11 TOWARDS A NEW ARRAY OF DESCRIPTIVES Corporate Governance Legal/Artificial Person? • • • • • • • • • • • • • • • Discovery Translucent Conformance Caveat emptor Dead Symbol Label Form Rule-based Legal enactments Rules & compliance Newtonian classical Fragmented Outer-in Letter of law • • • • • • • • • • • • • • • Disclosure Transparent Integrity Edico venditor Emergent Meaning Essence Substance Principle- & values-based Innate nature (fitrah) Adab & ihsan Quantum science Wholeness Inner-out Spirit of law 12 WORDS EMANATE MEANING • Turn to history to dissect the real ontological meaning of words, otherwise we will only apprehend a shadow • REGAIN the spiritual & sacred (vertical) dimension they are supposed to encapsulate RETURN FROM • cosmos BACK TO • kosmos • Mercator projection • globe • canvas • inner vision • map • terrain • logic • logos 13 TAWHIDIC ONENESS – CONVERGENCE IN SCIENCE & ANCIENT TRADITIONS • Wholly integral, interrelated & non-local cosmos – integrating material & nonmaterial • We must actualize this Tawhidic journey • Ancient traditions & sacred texts all convey spirituality & interconnectedness • Unbroken wholeness & indivisibility 14 HUMAN & PERCEPTION DEVICES • Born with three devices of sense perception, intellection & contemplation • Islamic teachings: – They have hearts, yet they do not comprehend; they have eyes, yet they do not see; they have ears, yet they do not hear – There are signs on the horizon & within themselves • Are we limited to sense perception only? • Sufism – The Spiritual HEART of Islam 15 FACULTY/DEVICE WOMB H E A R T BABIES TO TODDLERS H E A R T ADULTHOOD PHYSICAL SENSES & THE MIND HEART OLD AGE H E A R T The Heart has its Reasons which Reasons knows not – Pascal 16 MODES OF KNOWING Three Modes of Knowing Born with coherence ability, we repressed Cultural conditioning emphasizes bodily senses over nonsense perception Scientists demonstrate children of 4 to 5 years old experience nonsense perception 17 LEADERSHIP IS ABOUT BEING HUMAN Connotes stewardship & vicegerency – at once trustee/custodian to self, community & universe Senge et al – Awareness of wholeness of nature stolen from us, replaced by assemblage of parts Chittick & Murata – Human actualized by Adab, governed by Ihsan Hernandez – Leader makes decision while factoring in the implications on future generation, the way leaders behave shapes decision makers of future generations 18 • Is about the heart • Is about BEING what you are, BEING HUMAN & doing is the effect of being i.e. a consequential to being • Is about balancing the oneness – balancing along the continuum of obligation to corporation, obligation to people & obligation to universe • Is about living the spirituality, the interconnectedness • Is about accepting participatory universe 19 ORGANIZATION MEASURES • Einstein: Everything that can be counted does not necessarily count; everything that counts cannot necessarily be measured • What measures to act as reference in arriving at decisions – the metrics & matrix • Natural person measures good enough? • Redefinition of success to encompass well-being of society not just maximization of shareholder value 20 NEED Governance that: • Goes beyond sense perception / experience, to intellection (mind/brain) & contemplation (heart/consciousness) • Regain Human Centrality • Bring back the ‘Vertical’ Dimension • Human Integrity – Ihsan & Adab/Akhlaq • Corporations/Legal persons CANNOT mimic Human Beings 21 WAY FORWARD TRANSFORMATION If there is no transformation inside each of us, all of the structural change in the world will have no impact on our institutions! Peter Block • Transformation – akin to metamorphosis from caterpillar to chrysalis to butterfly (via the IMAGINAL CELLS) 22 HUMAN GOVERNANCE Redefine Human as Soul of Being REGAIN our sacredness: • innate nature (fitrah), • subjectivity & experiential, • emotions/feelings, • empathy • compassion • INNER KNOWING ability • SPIRITUALITY 23 WHAT DOES IT MEAN TO BE HUMAN? • Natural vs. Artificial/Legal person • The spiritual is what makes human, human (Salleh & Ahmad, 2008 & Stapp, 2008) • Physical is for locomotion • Human’s drive is towards inspiration, meaning & purpose • Purpose – Ad Dhariyat Quran (51:56) 24 ISLAM, IMAN & IHSAN • IHSAN – Virtue, Perfection, Excellence, Authentic • Third dimension of Islam • Life is series of dilemmas • Ihsan is Governance • Story of Muadh ibn Jabal 25 • Human Governance is about INTEGRITY • Latin integritas: integer, whole number, being whole being one – AL TAWHID • Integrity is a state/condition • The actuator/actualizer to felicity & tranquility • Originally only be applied to human beings 26 Integrity – ala Bobby Jones when he still assessed himself a one stroke penalty even though no one else saw him touch the ball. Not the tournament official, not his playing partner, neither of them believed he actually touched the ball. He did the right thing even when no one was looking! 27 BENCHMARKING INTEGRITY • What is legal MAY NOT be moral • What is moral is legal • INTEGRITY – IS IT LAW OR BEYOND LAW? • Conformance or Beyond Conformance? • Rising beyond the self: Rectification of character – getting rid of bad attributes (Murata & Chittick, 1994) • The HEART is the source of one’s integrity 28 COMPLIANCE- & VALUES-BASED • Compliance-based approach is divorced from values and ethics i.e. THE SPIRIT • Compliance-based system: what is not prohibited is allowed. Attention is NOT on doing what is right but on NOT DOING what is wrong, NOT on doing one’s best but on NOT DOING one’s worst • Values-based encourages NOT to do ethical minimum but to DO ethical maximum • Rules DO NOT inspire. Values DO 29 • an internal mechanism to guide human in emanating internal behaviour •Human Governance is rooted in religiosity whose core criteria/measures or ‘standards’ is Spirituality • Human Governance brings back due regard to the profoundness of governing the individual rather than the corporation which is the artificial legal person 30 HG • inside-out values-based conviction to guide human • human is viewed as a nonmaterial soul & embodied in the physical being CG • external, outside-in rules & regulations to legislate the corporations • parameter-driven & rulebased • human is NOT machine • human is machine • emphasizes the spirit of the law • emphasizes the letter of the law 31 ONENESS REALIZED? Oneness: - a coherent portrait of reality & a holistic way of knowing - brought about by personal experience, intuition and conscience balanced with reason and modern science Oneness transcends the individual - our choice affects others, to act against another is to act against oneself The Fictive Belief: - ourselves, our thoughts and feelings perceived as separate from the rest Moving on: Remove the filters & change band-width of sensors - Sensory Filter (rejection of use of intuition & sentient sensation) - Awareness Filter (rejection of anything unaware) - Belief System Filter (rejection of information that doesn’t conform to belief system) 32