Thursday, 2 March 2017

BUSINESSES AND JOBS - Adverse impact of speculation and rumours


IT is easy to paint a picture of businesses as mere capitalistic entities with the sole aim of maximising profit for shareholders.
We are often exposed to the happy endings of business stories; the ones that end up with the glamorous and luxurious lifestyle of the owner. However, we must realise that more often than not this is usually at the final chapters. In truth, behind every major success is a huge amount of struggle, blood and sweat.
Most entrepreneurs start as small entities. Moving foward requires massive amounts of risk, and each day is a struggle to ensure that business operations, client and most importantly, the employees, are given due attention.
They may not tell their side of the story, but rest assured that most entrepreneurs can relate to the fact, in growing a business, the owner is usually the last person to reap any profit. They may not say it openly, but they know deep inside that the growth of any organisation depends on the strength and sustainability of their employees.
As business grow, they start the rely on strong relationships with other business entities. This relationship creates the large supply chains we see in the numerous industries that exist within our economy.
As these relationship expand, they create massive supply networks that are dependent on each other. The failure of any entity within this network may affect business operations and the jobs within the supply chain.
The above clearly exemplifies the realities of the business ecosystem. Which is why it is important that while competition is encouraged, it is good to rid the system of elements that can affect the daily operations of the supply chain.
Among these unnecessary elements are the ones that can destroy productivity. Most toxic of all is the element of speculation, in particular the form that predicts the future of any business based on "clues", half-baked information or unreliable sources.
Previous articles in this column have focused extensively on the need for maturity among the society to distinguish real and fake news, while this articles focuses on the intent to create them.
It is one thing to create rumours, and it is another to further spread them.
Whether or not speculation and rumours derive from malicious intent, or the innocent process of sensationalism, the businesses and the individuals working within them end up with devastating effect.
Imagine the uncertainty felt by an employee, with a family under his or her care, when an outside source tells of the impending retrenchment due to a possible ownership transfer.
While behind closed doors the management is ensuring the job security of its employees, current productivity is affectedby unnecessary speculation. The same speculation then leads to trust degradation of existing business relationships with both supplier and customer.
Capitalism is not just about profit, but rather the freedom to perform business. Businesses depend on people to survive and the last thing it needs is unnecessary elements that may jeopardise the talent and relationships it holds with such high value.
Let the news come directly from the source.
The writer is chief executive officer of the Malaysia Automotive Institute

No comments:

Post a Comment