The leader’s abnegation: A value conveyed also by the Caisse de Dépôt et de placement!
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The Sound Management Institute’s mission is to convey the Sound Management model and principles. When a Canadian or foreign organization implements or uses as model some of the values on which our concept is based, it is a real pleasure for us to emphasize the example in question and present it to our members and readers. This time, it is noteworthy that the Caisse de Dépôt et de placement ofQuebecassociated the concept of abnegation to that of the sacrosanct image of leadership.
In a study published recently at the request of the Caisse de Dépot et de placement of Quebec, the Abnegation, one of OAAQ’s six fundamental principles of Sound Management, was associated with the acts taken by the governance. Entitled L’Entreprise transnationale, Développez l’ADN de la réussite à l’étranger, (The transnational organization: Let’s develop the success DNA abroad), this study praises, among other things, the qualities and basic abilities of the leaders wanting to work abroad. (1)
Generally speaking, abnegation is defined as a value promoting the subordination of personal interests to the organization’s interests in order to avoid the conflicts of interests. Some fragments of the book present a remarkable example of contradiction between the absence of abnegation and the personal values of a leader dedicated to the development of the organization on the world stage.
” (…) Imagine a manager (and shareholder) who decides to delocalize the company’s production, without any regrets, only to gain maximum profits in a short period of time. Such behaviour is in no way a sign of giving up!” (2)
Implicitly, this example expresses the unhealthy incoherence established between the personal devotion and the risk implied by the acts taken while creating a conflict of interests.
Although there isn’t much reference to the concept of abnegation, I think it’s important to emphasize the courage and innovation proven by the Caisse de dépôt in leadership and governance.
On the contrary, this isn’t the tendency of the management or financial services on the international stage. Lately, we often hear about companies accused of corruption, embezzlement, or bribery of the public servants in the development countries. It’s useless to keep making reference to the Abnegation principle. The managers of these companies will always hide their acts behind the business demands. They consider that the end justifies the means. Nevertheless, the risk is huge. The 80 construction companies inQuebecknow better: They’ll lose their right to bid with the public proceedings.
The Abnegation principle
In Sound Management, this principle is defined as,
“The quality of a person who gives up all benefits or personal interests that could come in conflict of interest with the manager function held within an organization.” (…) While exercising their function, the managers’ duty is to subordinate their own interests to save the organization’s assets. (…) The real or potential conflict of interest occurs when the manager’s personal interests collide with the organization’s interests. (28-04-1998) (3)
There are several norms that sustain this principle, such as the following one:
(…) By accepting all the tasks entrusted to them, managers have to analyse all their interests, activities and relationships to make sure there is no risk of potential or real conflict of interest. (28-04-1998) (4)
What if Abnegation had nothing to do with the Sound Management?
Let’s think straight there for a few minutes and use our critical eye in our analysis of this unpopular principle. It makes people uncomfortable. Misunderstood and especially against the current of neo-liberalism, Abnegation hurts, most of all, the egocentrism of some governors with feudal privileges. Evidently, no governors, no company administrators, and not even most of the academic thinkers accept constraints and limits to their leadership power. Let’s be realistic, compared to the charismatic leader who makes unrealistic promises to be elected, managers are just silly “doers” who have to protect the image of their masters, being rewarded for keeping their mouths shut. To protect themselves, managers practice the “management in isolation.” Everybody minds their own business. “See nothing, hear nothing and say nothing!”
The impressive rising of the right wing, more and more popular, reminds us that we have to rely only on ourselves, thus becoming craftsmen of our own success. You can get rich only the hard way. There’s no place for compassion; the weak ones lose in front of the strong ones. Wealth is not a right; it’s an award, a privilege. We’d rather keep the status of feudal lords!
Do we really want to live and raise our children in such a world?
Other Sound Management principles
The Sound Management Institute would like to remind you that Abnegation is only one of the six Sound Management principles. Abnegation isn’t less important than Transparency, Continuity, Efficiency, Fairness, or Balance, and each of the six principles cannot be used to the detriment of the others. This is the concept of trustee and mandatary homeostasis. The real challenge for the leader, Canadian or international, will always be to accommodate this paradox. Who said management is an easy job?
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(1) Deneault Dominic, L’ENTREPRISE TRANSNATIONALE : Développez l’ADN de la réussite à l’étranger. Une étude commandée par La Caisse de dépôt et de placement du Québec. 2011
(2) Idem page 14 et 15
(3) PSGGR, OAAQ : Chapitre 2, art 2.7(1) et (3)
(4) PSGGR, OAAQ : Chapitre 2, art 2.7(6)
(1) PSGGR, OAAQ : Chapitre 2, art 2.7(1) et (3)
(2) PSGGR, OAAQ : Chapitre 2, art 2.7(6)
(3) Deneault Dominic, L’ENTREPRISE TRANSNATIONALE : Développez l’ADN de la réussite à l’étranger. Une étude commandée par La Caisse de dépôt et de placement du Québec. 2011
