Sarlo Distinguished Professor of Sustainable
Economic Development,
Dominican
University of California
July
22, 2010
The
new business environment of the 21st Century has triggered new
thinking. Strategic management has assumed a dominant role in managerial
discourse, and has become a paradigm for decision processes about the nature of
strategy, the responsibilities of the corporation, and managerial practices. To
be effective, the biggest challenge for a business organization is to develop a
strategic planning process that includes formulating its vision, mission,
goals, and strategic objectives, as well as monitoring and evaluating progress (Drucker, 2001; David, 1999 and Byrson,
1988). Particularly, the vision statements emphasize what the organization
could be in the future, and present a challenge for the organization to meet.
In short, in its vision statement, an organization addresses what it wants to
be in the future without regard to potential barriers.
Based
on the strategic management process, the Office of the Chief Executive Office (CEO) of MIDROC has displayed MIDROC-ETHIOPIA’S vision
and mission statements in front of its website. In its vision statement, MIDROC
aspires to render “quality products and sustained services to every customer
and user” (May, 2010). In its declaration of vision outlook, MIDROC challenges
itself to offer sustainable products and services to its customers in the
future. Cannon states that MIDROC’s
vision statement is dynamic and is clearly spelled out (2009). However, if we
evaluate MIDROC’S vision statement using Zollo and
Winter’s (2002) assessment techniques which argues that a dynamic enterprise
needs to adapt to external pressure and modify its operating routines in pursuit
of improved effectiveness, MIDROC’s vision statement seems to be weak and fails
to highlight the specific strategies likely to be effective in implementing its
Code of Business Conduct. Also, as will be discussed in detail later, MIDROC
does not seem to increase environmental consciousness among its workers. Its
activities are mainly tailored for short-term benefits rather than fostering a
development that is environmentally-sustainable for Ethiopia.
The
mission statement is long-lasting and distinguishes one enterprise from other
similar enterprises. Based on the major philosophical premises under which it
will operate to achieve its vision, the mission statement expresses the reasons
for being a business enterprise and pinpoints how it wants to serve. Given a
clearly articulated mission statement, an organization can formulate,
implement, monitor and evaluate its activities. “Without a clear statement of
mission, a firm’s short-term actions can be counterproductive to long-term
interests,” (David, 1999, p. 95).
In its mission statement, MIDROC claims that
it is “a multi-sector organization with second-to-none leadership positions for
each of its products and services thereby exceeding the expectations of
customers, employees, shareholders and the community” (May, 2010). Furthermore,
in line with the tenets of a competitive organization, MIDRO –Ethiopia in its
operating philosophy attempts to reflect the expectations of customers by
identifying the utility of a firm’s product to the customers, rather than
developing a product and then trying to find a marke.
(See for example, David, 1999, p. 88.)
Alvesson and Willmott hold
the conviction that senior managers, as strategic elites enjoy the upper hand
over processes of decision-making either directly or indirectly and control the
decision-making of others within the organization (1996). However, the senior managers of MIDROC seem
to be occupied with a larger picture. They run their businesses from a
distance, and are not involved in day-to-day responsibilities of operational
activities. In formulating their mission statement they hardly considered
including a) the market where the firm competes and its distinctive
leapfrogging competitive advantages, b) technological positioning, and c)
proactive environmental concerns for the firm’s products.
MIDROC
has earned respect and loyalty of its customers and the community at large. In
line with the values of its owner, H.E. Sheik Mohammed Hussein Ali Al-Amoudi, in its mission statements, it conducts its business
in a socially responsible way. For instance, MIDROC makes philanthropic
contributions of cash, products, and services to a variety of local, national,
non-governmental, and international organizations. As stated by Cannon, “MIDROC
Ethiopia Group and Affiliate Companies continue to provide support to civil
societies for initiatives undertaken by specific communities, non – governmental
organization, welfare associations, gender groups, child welfare, HIV/AIDS, etc. ( December 2000). Nonetheless, it worth underlining that
the various value statements regarding a) Employment Empowerment, b) Integrity and
Ethics, c) Balanced Life and Performance, d) Strength and stability, and e)
Teamwork and Cooperation, depicted in its website to augment MIDROC’s mission statements (MIDROC-Ethiopia, May,
2010), seem to be half-baked promises
for public relations purposes and are not backed up with actions.
There
is no indication that MIDROC is dynamic enough to give priority to building the
right team or creating the right strategy to implement team-working conditions
to empower its workers. As embodied and outlined in the United Nations
fundamental Labor Standards ( UN Global Compact) for all global business
enterprises, MIDROC should have attempted to uphold the freedom of association
and the effective recognition of the right to collective bargaining positions
of its workers (the United Nations Global Compact, July 26, 2000). Moreover, if
MIDROC is to be considered a socially responsible global company, then in its mission statement, it should have
stated in its underlying philosophy how it could, a) take a precautionary
approach to environmental challenges, b) create initiatives to promoting
greater environmental responsibility, and c) develop and diffuse
environmentally friendly technologies (United Nations Global Compact, July 26,
2000). Before analyzing the environmental footprints and strategies of MIDROC
in Ethiopia, consideration of the environmental policy and regulations of
Ethiopia are in order. To be continued
References:
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Bryson,
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Drucker, P. (November
3, 2001). “ The New Society,” Economist:
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Manteaw, B. (2007).
“From Tokenism to Social Justice: Rethinking the Bottom Line for Sustainable
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