Ana

Paola Nunez Cerda A01151373

System Dynamics

Comment on the 2nd chapter of the book

Creating the Corporate Future by R.L. Ackoff

On the second chapter of the book the author writes about the changes
corporations have suffered along time. Corporation changes occurred
simultaneously as society changes, leading to the conception of a corporation as a
necessary organism in societies, so they can participate, alongside government, in
the distribution of wealth among its stakeholders.
In order to have a fair distribution of wealth, corporations need to have a holistic
understanding of the needs and functions of the stakeholders. The relations within
stakeholders can be described as the exchange of money for a certain action.
Moreover, a human being performs the action, and understanding its needs and
functions is key for defining the distribution of wealth policy of the corporation. In
the previously mentioned distribution, men need to feel appreciated and challenged
in order to have a better quality of life. In the chapter, Ackoff refers to the ancient
Greek philosophers as they recognized individual and collective development of men
in terms of the pursuit of truth, plenty, good and beauty. The pursuit of the four
ideals drives to an increase in the quality of life as well, since a reached goal gives a
sense of pleasure and, moreover, drives to the set of a higher goal, as a cycle in
which, individually or collectively, must be constantly getting closer to the ideal.

The combination of work goals, personal goals and society goals result in an
innovative structure in public and private organizations, which is the evolution of
corporation to an organizational structure in which the interests and needs of
stakeholders are met completely.