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Who Is Responsible for the C-N-T Equation?. Shyam Sunder, Yale School of Management Conference on Managing Responsibly with Confidence Great Lakes Institute of Management Chennai, Dec. 20, 2009. An Overview. - PowerPoint PPT Presentation
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Who Is
Responsible for
the C-N-T
Equation?Shyam Sunder, Yale School of ManagementConference on Managing Responsibly with ConfidenceGreat Lakes Institute of ManagementChennai, Dec. 20, 2009
An Overview
C-N-T equation is the mathematical relationship among how much resources each person consumes (C), how many persons consume (N), and the length of time for which they can continue to do so (T) before running out
If all consumed resources were infinite in supply, or completely renewed or substituted indefinitely, T would be infinite, and we would have sustainability
Anything short of that is unsustainable
Should sustainability be our goal? For how many generations? For how large a part of the world?
If so, how do we get to sustainability? Balance CNT eq.
What are the lessons of Copenhagen?
What is responsible management? At what level?
Two Fundamental Human Values
Two fundamental values appear to have been shared by most if not all societies through history: consumption and reproduction
These two are built into our moral codes: we seek and look up to higher consumption (standard of living)
We seek to perpetuate ourselves, and prolong life, supported by both biology as well society and religion
This values worked well over the millions of years of human evolution where they helped hominids survive hostile environment
In the recent centuries, technologies have changed that
We need to look at the aggregate level consequences of values defined for individual behavior
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Back to the C-N-T Equation
Let us settle for (an optimistic) estimate that if we do nothing new, the world population will stabilize at about 8 billion
Let us also assume that this population will not increase its per capital consumption beyond current levels (unlikely given China and India’s current levels and growth)
How many years (generations) to go before we run out of resources? What is T?
But there are objections.
Objections
New technologies will save us May be, but how confident are we that enough new technologies
will come along in good time? What are we doing to make that happen? For how long will these technologies extend T?
Nuclear energy did come along in mid-20th century, held promise of unlimited cheap energy, but only for a while. What do you think about it today?
We shall discover more resources We almost surely will. How much, when, and how much will they
extend T?
As resources grow scarcer, prices rise, increase incentives to develop and discover more True (Economics 101), but remember higher prices is a pre-
requisite; will it force reduction in consumption, population, create conflict?
So, How Much Time Do We Have?
Let us think about T, the time we have to increase, or even maintain, our C and N
Count in generations
What is our responsibility?
Think, devise ways of dealing with it, and implement and manage them
If we don’t, who will?
Some Things to Think About
Should sustainability be our goal?
For how many generations?
For how large a part of the world?
For how many people?
At what level of consumption per capita? Don’t forget those 16 billion plastic water bottles
discarded into trash each year
How do we get to sustainability?
Does it requires balancing the C-N-T equation
Who will do the balancing?
Isn’t Copenhagen Conference Going to Take Care of That?
What are the lessons of Copenhagen? Politicians cannot lead the way on this They will follow the values of their
populations We hold dear the values of consumption
and reproduction (increasing C and N) No politician or even dictators have the
power to go beyond that? Does it require a change in our moral
code? Who will lead the way?
Responsible Management
What is responsible management?
At what level do we think about responsibility? Individual, family, company, country, or global level
What does responsible management cover? Employment, products, profits, environment,
governance, society, future of human race?
How much of your talents are going to devote at each of these levels of management?
That is the ultimate determinant of T. Its in your hands.