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Jean Adams (90)

#4 - CSR and Social Entrepreneurship.docx

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MGMT 1000
Jean Adams

Balancing Financial Expectations CSR and Social EntrepreneurshipLinear ThinkingPeople break situations into separate parts and search for stepbystep explanations where one thing leads to anotherIf rules of daily life are clear and simple then linear thinking works all the timeLinear thinking works when everything is perfectly defined and predictableoSystemic approaches needed to consider potential interactionsconsequencesReducing overheadsOrganizations cut overhead costs to get bottom line back in shapeNarrow linear thinking leads to many increased costs and make negative consequencesHydroelectric Aswan Dam ConstructionDam because powerful driver of economic change created new industryoAbsence of rich silt form floods farmers needed to buy more fertilizeroRaised cost of agriculture led to water quality problemsoRunoff time major impact on marine lifeoFishing industry devastatedInappropriate Linear ThinkingReflect poor understanding of situationsinappropriate trainingResult from political and other pressures forcing people to produce rapid results through inappropriate meansoOversimplifying people try to reduce the complexity look for easiest solution or get blindfolded by what we dont knowPeople see what they learned what they can handle what they deem important and what they feel pressured to see and dooIgnored Sideeffects people fail to think about wider implicationsUnderstanding becomes partial actions misdirect or are incomplete factors that have been ignored set basis for new difficultiesoProblem solutions produce other problems solutions produced through linear thinking work targeted to specific aims though have much wider consequencesDangers of OversimplifyingBe aware of the problem and act with sense of broader system with its multiple loops in mindVicious LoopsResultsoutcomes usually opposite to those that most people would like to seePeople caught in destructive patters of interaction producing destructive resultsoVicious loops underpin personal tragedyoUnderpin potential for global disaster oUnderpin deteriorating organizational performanceOccurrence of Vicious Loops
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