Business charged with having too much influenceBusiness charged with having too much influence

 
 

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Business charged with having too much influence

Professor Mintzberg: Business exerts excessive political influence

Québec City, 16 September 2003 - The state of modern business was the subject of heated debate here today at the 3rd World Chambers Congress when management expert, Henry Mintzberg went head to head with former ICC Chairman Richard McCormick.

Professor Mintzberg, Professor of Management Studies at McGill University, used his address to the congress to table a list of grievances about the evolution of the modern business.

He said business exerted too much influence over political process around the world, and that there needed to be an overall re-balancing of the forces that influence politics.

"The three strongest agencies in the world today are the IMF, the WTO and the World Bank," he said. "It speaks volumes that they are all economic agencies, and that they all want countries to open their borders to trade."

He said business the world over was sufferi ng from a lack of trust within the broader community. He attributed the malaise to such phenomena as "heroic leadership" - where CEOs are expected to run companies on the strength of their personalities alone - and "the lean and mean organization" - where, despite living in an age of unprecedented wealth, companies were constantly looking to make their organizations more streamlined, or "bulimic".

Former ICC Chairman Richard McCormick responded to Professor Mintzberg's comments, saying he had confused business with "big-ness".

"There is certainly skepticism in the community about the idea of big-ness, whether it is big business, big government or even big universities" he said. "But it would be wrong to lump every business into the categories the professor has described.

"A lot of people in this room represent small businesses who are too busy surviving to be concerned with this apparent perceived arrogance of business. They are much more concerned about payrolls and taxes and staying afloat."

Mr McCormick added that he was a great believer in the WTO and its trade liberalization agenda.

"It is the best tool we have to ensure that the benefits of globalization are spread as far and as wide as possible," he said. "I have great faith that, despite the failure of talks in Cancun at the weekend, this trade round will eventually be concluded.

"Agricultural subsidies will come down, gradually, eventually. It is not something which is going to happen overnight. But it will happen and it is important for us to stay the course."

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