Olympus Saga

Olympus agrees to acquisitions probe

The more I learn about business, the more one thing becomes clear: ability is a small part of running a business. There are many ways to excellence and profits in business, and ability is definitely one of them. Business however, I have learned, is more complicated than that. As the Olympus saga illustrates, many times businesses are able to survive misspending millions. As long as the business model remains intact and there is somebody who thinks that the business can generate cash at an acceptable rate of return, the business will survive. I also see compliance and not ethics as the defining force for the code of conduct, which I attribute to the fact that self-interest is the defining force of capitalism. Unsurprisingly, unbridled self-interest can be fairly self-destructive as well. Regulations keep that in check to some extent, but there are always people looking for a loophole. So goes the game of cat and mouse.

In terms of M&A, it brings out some critical questions like value of an acquisition to the buyer and the fees paid to advisors. Already enough research papers have indicated that, at least in the short-run, the value of the acquisition goes to the seller. Deals like the infamous sale of ABN Amro raise a pertinent question on the effectiveness of advisors. The last thing the M&A world needs is the use of advisory as a cover for siphoning away millions from a company. All in all, an ignominious event in the corporate world that should be dealt with firmly.

The Difficulty of Being Good

Just finished reading another awesome book by Gurcharan Das, "The Difficulty of Being Good : On the Subtle Art of Dharma". A gripping book about ethics, politics and goodness. The writer draws examples from both West and East, referring to philosophies from ancient Greece, Renaissance, Buddhism, ancient Hinduism and Modern philosophers to wrestle with the idea of goodness in day-to-day life. The book draws the base examples from Mahabharata, the ancient Indian epic narrating the story of the great feud between cousins that marked the end of the third age of man. The story is complex, rich and meaningful in equal measures, but I doubt it if anyone without an interest or roots in India will be able to enjoy it fully. For any intellectual Indian with a strong interest in Hindu mythology and philosophy, this book is a treat.

The book advocates reciprocal altruism instead of either pacifism or real-politic solutions. In this it addresses some fundamental questions surrounding sticking to the merits and demerits of available choices and problems: way of righteousness, way of deceit, way of duty, the need to be recognized, the power of the feeling of vengeance, importance of mentors, role of a ruler and role of merit, among other things. It is rich, intellectual gymnastics that will help you to gain a fresh perspective about life and living without compromising integrity.