Profit, poverty and equity

Let me start this short presentation with two (2) human-interest stories.

On that memorable day, I left everything I was doing to attend an event at the corporate headquarters of our group of companies. Several thousand okada (motorcycle) riders had gathered to kick-start a three-in-one empowerment programme.

The programme was a well thought-through strategy to drastically check, and even stop, the growing number of accidents (broken limbs and deaths) on Nigerian roads caused by reckless okada riders. Nigeria at that time was witnessing an upsurge in the number of okada as a cheap means of public transportation. This risk management initiative was named Third-Party Plus. It covered medical expenses for riders and victims, and riders who were careful and were not involved in accidents would receive new motorcycles at the end of each year on very flexible and highly discounted payment terms. A comprehensive life cover for riders was the third value addition. The huge success of this scheme is better imagined.

The second story is that of a very successful late colleague, an exemplary leader and captain in the corporate world. He lived in an expansive mansion in an exclusive area in Nigeria but suddenly decided he needed more space. He acquired several acres of land on the “outskirts” and built wonderful bungalows inside this supposedly secured “enclave”. The “watertight” security measures could not absolutely secure the inhabitants, and he had to move back to his former house. The “enclave” was literally abandoned and had to be reconfigured, at a huge loss, into a secondary school.

What is the lesson of these two stories. Leaders should regularly conduct a referendum on themselves and never “get in your own way”. We should be wary of lack in the midst of abundance.

Let me now briefly examine capitalism, a popular economic system and the fundamental values of leadership.

Capitalism’s ultimate goal is profit maximisation. To the capitalist, humanity is a means to an end. People call it the kernel of the “free” market economy. Its logic is that there are no limits to growth because there are no limits to human capacity for intelligence and imagination. But a reflection on its antecedents has revealed that it can be inherently antithetical to living an ethical life because its complex interactions and variety of systems to keep generating wealth have existential consequences.

Innovation, which capitalists often attribute to dynamics of doing business has made life more competitive. Massive value-adding innovations and practices have unleashed productive activities that have resulted in life-enhancing growth and better customer satisfaction. These according to them, are rewards for smart investments and hard work. After all, surplus cash can be donated to charity, used to help friends and loved ones, as well as promote some very interesting relationships. Today, big businessmen are referred to as philanthropists and human-rights advocates.

But let us examine these narratives, can the ways businesspeople are practising capitalism be fundamentally upended to promote economic and social equity? Can greed be modified to accommodate the golden rule: “Do unto others as you want them to do unto you”? Can a wonderful society be established if the world lives by this golden rule? Can those who do business using the zero-sum model be comfortable with the dangers of the dichotomy between the super-rich and the phenomenal increase in the number of poor citizens?

Is there a mismatch between “awesome” wealth and leadership values? Should value-adding innovations and creative breakthroughs not equitably empower citizens?

Today’s smart leader enhances value and courageously leads crucial initiatives. He navigates economic and social contexts with smart strategies and initiatives. The environment (or society) therefore, shapes his moves in order to achieve beneficial impact. He is regularly upgrading people’s needs with insight and dynamism. For sustainable business growth, comprehensive and deep knowledge of the environment enable him to push out advantages from potentials.

The evidence of his success is impact on lives.

The leader regularly leverages problem-solving loops to course-correct his strategies. He employs root cause analysis, lateral thinking and mind mapping.

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He works with diversified patterns of personal, professional and stakeholder networks and even win over social “adversaries”.

The reality of today therefore, requires the leader’s courage to take new steps—steps that will shape the environment. The leader must painstakingly build his stamina to be fully responsible and achieve impactful development as well as progress.

My experience in insurance as driver of sustainable development and growth has taught me that my success models must be built around enhancing human lives and livelihoods, as well as growing responsible nations that genuinely accord humanity the priority it deserves.

As responsible leaders, our legacy should never be “The Leader with a Growth Paradox.”