tag:blogger.com,1999:blog-29549483362247386062024-03-13T07:23:09.715+01:00People for People EnglishPeople for People - unleashing the potential of value creation of people for peoplePeople for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.comBlogger118125tag:blogger.com,1999:blog-2954948336224738606.post-31509400758752074672014-11-28T17:47:00.001+01:002014-11-28T17:47:31.443+01:00Dear People for People Blog Readers<!--[if gte mso 9]><xml>
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<div class="MsoNormal">
<span lang="EN-US" style="mso-ansi-language: EN-US;">Although we
would love to be able to keep engaging a broad, international public with our
blog, we have come to the decision to discontinue our English “People for
People” blog. We
would like to henceforth primarily and more directly engage the local
Swiss audience with our German blog (http://stakeholderblog.blogspot.ch/). </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="mso-ansi-language: EN-US;">Thank you
for your interest.</span></div>
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<br /></div>
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<span lang="EN-US" style="mso-ansi-language: EN-US;">Sincerely,</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-US" style="mso-ansi-language: EN-US;">The People
for People Blog team</span></div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com4tag:blogger.com,1999:blog-2954948336224738606.post-12359847216617505162014-10-31T12:56:00.000+01:002014-10-31T13:03:09.673+01:00Guest blog: Mini-summit health care system<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYaHTS2i45yNLLB2oyt0NRmsLe2gqmoIs9vSmidtbFemz1URilWisufOR4iUR50XYJwUVEgCaCeoyVuAVEnuwflzI1JEA2K35BBfdjtfM5RDsddrGz86CSnpaEJwRInvzfGpt3q6aerCc/s1600/Gabriella+Signer+040_hoch.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYaHTS2i45yNLLB2oyt0NRmsLe2gqmoIs9vSmidtbFemz1URilWisufOR4iUR50XYJwUVEgCaCeoyVuAVEnuwflzI1JEA2K35BBfdjtfM5RDsddrGz86CSnpaEJwRInvzfGpt3q6aerCc/s1600/Gabriella+Signer+040_hoch.jpg" height="200" width="150" /></a></div>
The “Mini-summits” entered the second round on September 11 on the topic of the “health care system”. Among the major challenges for health care professionals are the tension between an increasing cost pressure and the lack of public will to reduce health care services.<br />
<br />
Organized by Prof. Sybille Sachs and Matthias Mölleney, these issues were discussed by: Dr. Leo Boos, partner at H Focus AG, Jeanette Bürki, former head of various hospitals, Andrea Dörig, head of the department of care of the hospitals Schaffhausen, Monika Eichelberger, director of long-term care of Schlössli Biel, Hans Groth, president WDA Forum St. Gall, Franz Schneller, consultant for health projects, Markus Stauffer, Co-Head of the Center for Health Care Management at HWZ and CEO of Wittlin Stauffer AG, Beat Stierlin, CEO of the hospital of Barmelweid AG, Dr. Tania Weng, head of the project “QualiCCare”, Dr. Peter Wittlin, Co-head of the Center for Health Care Management at HWZ and CEO of Wittlin Stauffer AG.<br />
<br />
What new strategic challenges are arising for the health care system?<br />
<a name='more'></a><br />
<br />
One new dimension for the health care system is economization. In the past, the efficacy of health care services has not been evaluated. People believed the treatment and care given by medical practitioners to be right and important. Today, the services of both doctors and the nursing staff are measured. Their actions have to be transparent and they have to take responsibility for the resulting costs. On the one hand, the health care system thereby gains public attention, which increases the responsibility of the authorities and politicians, e.g. in hiring leaders for public hospitals. On the other hand, the administrative workload of service providers has increased significantly. Filling out questionnaires and documenting individual care takes up 20 or 30 % of the time. It is unclear whether this has lead to an actual improvement of care services or to a reduction of costs. This system measures in tax points or in francs. Today, finances are an increasingly dominant part of health care systems. Besides medical practitioners and nurses they now form the third column in hospitals, thereby increasing the pressure on efficiency improvements for hospitals. As a consequence, in addition to technical efficiency improvements, hospitals face a continuing professionalization and more and more specialized work areas – thereby contrasting the traditional, sometimes still valid image of the profession as a calling.<br />
<br />
A second topic is the demographic development of the society. People are getting increasingly old. In internal medicine, a majority of patients is now over 70. Chronically ill people are increasingly a challenge for the health sector. Rationalizing and limiting health care services is a social issue, which leads to the question of whom decides on these services and what value society is willing to attribute to health. The Swiss citizens have rejected any restrictions in the health sector so far. They are willing to pay a higher price for a specialized health care system. Patients themselves are unable to assess care services in detail: Polls show that 75% of respondents prefer specialists to decide on their procedures.<br />
<br />
What does this imply for leadership?<br />
With increasing job specialization, new links start to appear. The continuity of the 24-hour work shifts common in nursing is now also introduced in other areas, e.g. the physicians. Leadership issues play a larger role here. These particular, new connections have to be managed, and the individual actors in this multi-professional environment have to cooperate and be managed accordingly, which requires high social skills from a leader. He or she has to define the values and “non”-values, position him or herself as well as set boundaries. Crucial skills in this process are appreciation and attention, since the annual staff turnover in the health sector is over 20%. This turnover rate is especially problematic when it comes to leadership. Commitment implies continuity, and commitment is crucial for building trust and cultivating relationships. Leaders lead through their personality and reliability. They have to set a framework for people in order to give them an orientation. The aim of this, in the end, is to build a learning organization.<br />
<br />
Thus it is important to put more energy into the question of how to keep good staff, rather than just acquire new people. Employees should identify with an institution, and therefore the work on relationships should be at center stage. Employees should also have the opportunity to contribute. Here, not everyone has to do the same thing; new models can be created as well. It is especially important in the health sector, with its high proportion of women that talented female leaders don’t have to leave an organization when they have children and want to work part-time. Promising models to solve this problem include job-sharing. <br />
<br />
What do we gain from this for our leadership project? <br />
The leaders of tomorrow have to learn how to keep the goal in mind and how to respond flexibly. They should lead with their whole personality and create an environment of learning. Complexities should be reduced, while the human being is at center stage and is fully appreciated. It is crucial in this process to cultivate relationships among the various specialized actors. Here, the aim should be to achieve even better things together with the various stakeholder groups. <br />
<br />
Everyone agrees: Cultivating relationships can be learned, but the first step is to actually want it! <br />
<br />
Gabriella Signer People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com1tag:blogger.com,1999:blog-2954948336224738606.post-105328738130870742014-10-15T07:00:00.000+02:002014-10-24T18:13:11.311+02:00A stakeholder view on secession movements<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUzoxXPBS2MIdIJEqq-mSP2flWo-uYaGrZqXUroyxfLqR0FBwosYHtQG-68X06g8oAhLDOAUx10ENXgOLPGakMeY5TlJHoB7dKEdU95NlTAeCnyJ-9lKbPmhfo0DY8ShwhM6iKheFsUDY/s1600/Manuel_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUzoxXPBS2MIdIJEqq-mSP2flWo-uYaGrZqXUroyxfLqR0FBwosYHtQG-68X06g8oAhLDOAUx10ENXgOLPGakMeY5TlJHoB7dKEdU95NlTAeCnyJ-9lKbPmhfo0DY8ShwhM6iKheFsUDY/s1600/Manuel_portrait_original.jpg" height="200" width="138" /></a></div>
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">One of the
key assumptions of a stakeholder approach to the world – be it individual,
social, economic or political – is that power should be both decentralized and
inclusive. Implicit in this is that all stakeholders have a right to – also unilaterally
- withdraw from participation in such a common enterprise. Often, such a
withdrawal is however difficult, be it divorce from a marriage or a firm laying
people off. At times, as for example with a small mom-and-pop store being
subject to its country’s taxation policies, it is virtually impossible.</span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US;"></span><br />
<a name='more'></a><br />
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">One area
where a stakeholder withdrawal is in principle always possible, however, is the
secession from of a specific region of a country from that nation. Land can, in
principle, be subdivided into however many pieces one desires. Given that
everybody tends to lose something in the short-term, however, most such
breakups tend to be messy affairs, many bloody. The most remarkable wave of secessions
of the past decades was the breakup of the Soviet Empire and its European
satellite states. Despite some skirmishes in the Caucasus, this secession
sequence is remarkable for its relative lack of violence. Other breakups were
far less fortunate affairs – Yugoslavia comes to mind here.<o:p></o:p></span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">An
interesting question comes up when considering the legitimacy of such
secessions. Opinions obviously frequently diverge considerably; also well
beyond the involved parties. While the West largely supported the separation of
Kosovo from Serbia, even though this area constitutes the historic heartland of
Serbia before the Ottoman invasions, the splitting away of the Crimea from the
Ukraine was largely frowned upon by Western nations, even though the area has a
clear majority of ethnic Russians. Crimea’s history is a very complex interplay
between various ethnic groups, prominently featuring both Russians and Tartars,
of which Ukrainians however played only a relatively recent and a minor role.
Of course, the active meddling of Russia gave the entire enterprise a rather
dubious after-taste.<o:p></o:p></span></span><br />
<br />
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<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Kosovo’s primary
argument for its independence stemmed to a good part on the persecutions that
ethnic Albanians suffered during the Yugoslav wars. Their independence would
thus meet the criteria of “Just Cause Theory”, which maintains that secessions
are only justified for the rectification of grave injustices. The same could hardly
be said about the ethnic Russians of Crimea, and thus the secession and
subsequent annexation by Russia of the Crimea would have to be morally
buttressed by another ethical theory, namely “Choice Theory”, which in essence maintains
that majorities always rule. “Choice Theory” thus would also have been
applicable in legitimizing the Scottish independence movement, as the case
cannot be readily made that the Scotts suffered grave injustices by being part
of the UK.<o:p></o:p></span></span></div>
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">No matter
from what ethical vantage point one views the above examples, all national
secession projects highlight a fundamental challenge in stakeholder
relationships: the equitable assessment of what rights stakeholders have to unilaterally
terminate their relationships with the other party. The salient question thus
becomes: under what circumstances is it “ok” to act in such a way so as to improve
upon one’s own well-being, if by doing so one knowingly jeopardizes the
well-being of another stakeholder? For at first glance the unilateral
withdrawal of any stakeholder who assesses themselves to be detrimentally
affected by its participation in the larger enterprise seems entirely
legitimate. At a second glance, however, we recognize that most unilateralism
has affects – beneficial or detrimental – on the other parties. Would the
Scotts have voted in favor of secession from the UK, the consequences would
have been significant – beneficial or detrimental – for both parties.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Manuel
Dawson<o:p></o:p></span></span></div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-73441849602869160682014-10-08T15:00:00.000+02:002014-10-08T15:00:08.692+02:00A critique of traditional economy<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihbfnXB0zbXivQ1JGro3Ldg-4A6hyQUdyTl8z_Z6NNw4mVIXbjB0Kd1zk6nwVPH6iiBp16cqwGoJR8rL9ocRdStlEnMXqOz6N_e1fmFU2HmM4TbfZhxKC-rqeAUANlNT5ailTO9-6uRdY/s1600/R%C3%BChli_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihbfnXB0zbXivQ1JGro3Ldg-4A6hyQUdyTl8z_Z6NNw4mVIXbjB0Kd1zk6nwVPH6iiBp16cqwGoJR8rL9ocRdStlEnMXqOz6N_e1fmFU2HmM4TbfZhxKC-rqeAUANlNT5ailTO9-6uRdY/s1600/R%C3%BChli_portrait_original.jpg" height="200" width="138" /></a></div>
In an article in the NZZ of April 26, 2014, the editor Andreas Uhlig reported that Andrew Haldane, executive director of the Bank of England, has criticized the foundations of contemporary economy fundamentally. Haldane stated that “the unrestrained self-interest of individuals and companies, greed and unrestricted competition… have harmed society and made it poorer”. He made a case for “rethinking some of the central components of contemporary economy”. This would lead to a redefinition of the basic assumptions and insights of economic theory, and it would also have far-reaching consequences on the level of individual companies and for the Theory of the Firm. <br />
<br />
This critique, formulated by such a renowned figure, is of great interest for our institute, since we have aligned our own research of over ten years towards such a critique of the basic assumptions of the Theory of the Firm and of corporate strategy. <br />
<a name='more'></a>In a series of publications, particularly in our book Stakeholders Matter - A New Paradigm for Strategy in Society (1), we have presented our insights, which have also been discussed widely at international congresses. <br />
<br />
In the spirit of Haldane’s criticism, we put forward the following basic assumptions: <br />
<ul>
<li>The company shouldn’t be considered as a purely economic unity of action. It also forms an integral part of society. In addition to economically efficient behavior it must therefore also take its social responsibility seriously. A company’s strategy should incorporate the social aspects as well. </li>
</ul>
<ul>
<li>Companies create value only thanks to the commitment of people with all their peculiarities, employees as well as stakeholders. To understand the behavior of companies, the concept of the “homo economicus” who only pursues his own interests is shortsighted and can lead to managerial misconduct. </li>
</ul>
<ul>
<li>The performance and value creation of a company increasingly rely on the well-developed knowledge and skills of people. Today, knowledge is often a more crucial factor for innovation and sustainable success than capital. More than the equity investors it is therefore the employees and stakeholders who own crucial resources. </li>
</ul>
<ul>
<li>In order to understand the successful strategic behavior of companies, they cannot be seen as autonomous, competing decision-making units. They are increasingly part of manifold stakeholder networks. In such networks, value creation implies more than unconditional rivalry as the primary principle of action for managers. The model of the sovereign all-rounder has lost its value for contemporary management.</li>
</ul>
We believe that these revised basic assumptions for strategic management on the level of the company can contribute to a renewal of economic thinking postulated by Haldane. <br />
<br />
(1) Sybille Sachs, Edwin Rühli (2011)"Stakeholders Matter - A New Paradigm for Strategy in Society", Cambridge University Press.<br />
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<br />People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-87525515243278487622014-09-26T18:40:00.000+02:002014-09-26T18:40:57.677+02:00Guest blog: Match.Me.Up! brings together young entrepreneurs and experienced professionals in Switzerland<div class="separator" style="clear: both; text-align: center;">
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With <a href="http://zurich.impacthub.net/2013/10/14/match-me-up/" target="_blank">Match.Me.Up!</a> <a href="http://zurich.impacthub.net/" target="_blank">Impact Hub Zurich</a> designed an unusual program to bring together people looking for a meaningful job with fast growing and impact driven start-ups. One thing is for sure: a fulfilling job will become more important than money and status in the long<br />run.<br />
<br />According to a study by Ashoka and McKinsey over a third of people are looking for purpose-driven work activities in which they can experience the social effects directly. Not a majority. Not a movement yet. But an important trend. For more than every other over 50 yearold a meaningful job is more important than the wage (54%) (Source: Xing). But careers in the social sector are considered unattractive, especially because they are often equated with volunteer work. This is exactly where the program <a href="http://zurich.impacthub.net/program/match-me-up_candidates/" target="_blank">Match.Me.Up!</a> is different: it brings together experienced professionals - not with well-known charity organizations - but with fast-growing start-ups in the area of sustainability. Carsten Rübsaamen, who himself undertook a change of career and moved from being a banker to a social entrepreneurs, was part of the Match.Me.Up! program in 2013 with his start-up "Book Bridge” in search of an Executive Committee member. "Many people want more - more in the sense of that they realize that every decision that you make not only affects yourself but also others. And a job with a start-up gives you more!”, says Carsten. Because in addition to the monetary variables such as salary, status and power there is always also a social and environmental dimension of a job. A large number of people have already realized this today and donate money to various charity organizations. "But Match.Me.Up! shows that one can combine his job with doing good: simply by having a job, "says Niels Rot, co-founder of Impact Hub Zurich and responsible for the Match.Me.Up! program. The whole program is designed as a personal learning journey and includes a "try-out" phase in which the start-up and the candidates can get to know each other during a project-based cooperation, before making the game changing decision. There are over 15 job openings ranking from COO to Head of Business Development and Marketing Manager and Java Software Engineer at various start-ups. The application deadline is October 3, 2014.<br />
<br />
Céline Müller<br />
PR and Communication Manager <br />
<br />
<br />
<strong><a href="http://zurich.impacthub.net/" target="_blank">Impact Hub Zürich</a></strong><br />
We at Impact Hub Zürich foster innovation through collaboration. Located in buzzing Zürich-West, we provide a space where entrepreneurs and all kinds of innovators come together to prototype new models for a world that works for all - connecting all sectors, industries and cultural backgrounds. We offer access to inspiring work spaces, a vibrant learning community, startup incubation programs, corporate innovation workshops and entrepreneurial leadership trainings. With 7’000+ members in 50+ Impact Hubs across the world, the Impact Hub Network has become the center of gravity for people innovating a new kind of economy. Locally rooted and globally connected.People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com1tag:blogger.com,1999:blog-2954948336224738606.post-15616274734223356752014-07-23T16:09:00.000+02:002014-07-23T16:09:16.717+02:00E pluribus unum<div class="separator" style="clear: both; text-align: center;">
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In our interconnected society, the behavior of public, private and non-profit organizations affects an increasing number of actors. Especially when it comes to complex socio-economic issues, organizational decision-makers face a large number of stakeholders with different norms, values and interests. The vision of consumer goods manufacturer Unilever is a good example for the efforts organizations make to reconcile these stakeholder interests: “[...] to double the size of the business while reducing our environmental footprint and increasing our positive social impact“ (<a href="http://www.unilever.com/investorrelations/annual_reports/AnnualReportandAccounts2013/" target="_blank">Unilever, Annual Report 2013</a>), which takes into account the impact of business on different actors.<a name='more'></a><br />
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<br />For several years organizations have tried to take into account the perspectives of their stakeholders through thematic dialogues in collaborative settings. Here, a socio-economic issue usually forms the center of the dialogue, not the initiating company. Nestlé, for example, has organized dialogues on the security of food and water supply and is participating as a member of the 4C association in discussions on sustainable international coffee cultivation. On the one hand, by participating in and initiating stakeholder dialogues organizations want to build public trust and demonstrate their proactive responsibility with socio-economic issues. On the other hand, stakeholder dialogues also function as an early warning system for identifying future stakeholder claims that might emerge from the strategic behavior of organizations. Last but not least stakeholder dialogues can also promote innovations at the intersection of the different stakeholder perspectives (<a href="http://schweizerdialog.ch/2010/09/02/chancen-gelungener-stakeholderdialoge-ii/" target="_blank">c.f. Kimakowitz, 2010</a>). </div>
<div style="text-align: justify;">
<br />In research and practice it became clear though that decision-makers consider stakeholder dialogues to be quite resource-intensive and the actors involved are often disappointed with the results. In addition to organizational, political and strategic reasons, social psychology offers another explanation for this phenomenon: In a dialogue, individuals represent the norms, values and interests of their stakeholder collective. In the beginning of a dialogue, these group affiliations are at center stage, which often leads to a positioning and distancing among the different stakeholder representatives. Moderators of stakeholder dialogues therefore aim at showing and emphasizing the similarities in norms, values and interests among the participating stakeholder representatives. This process can be very challenging and may even end the dialogue entirely.</div>
<div style="text-align: justify;">
<br />Recent research in social psychology has led to the paradoxical insight that the differences in norms, values and interests of stakeholders can also be considered as a common ground. The consensus on the diversity of the stakeholders participating in the dialogue therefore is the shared basis on which a fruitful interactive process can build. Not a forced focus on shared views but the mutual recognition of differences in norms, values and interests enables discussion and exploration in a stakeholder dialogue. This eventually leads to a deeper understanding of the different stakeholder perspectives and to innovative approaches related to socio-economic issues.</div>
<div style="text-align: justify;">
<br />Organizations from the public, private and non-profit sector should therefore see the differences in the various perspectives in a stakeholder dialogue not as a risk but as an opportunity for a mutually inclusive process. You can find this motto, by the way, on every one-dollar bill: E pluribus unum.</div>
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<div style="text-align: justify;">
Tom Schneider</div>
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People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-41090930944531742272014-07-23T11:59:00.005+02:002014-07-23T11:59:56.755+02:00<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: DE-CH; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The Soccer world cup is behind us, the aftertaste remains. Take a look at the article in the Economist, </span><span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">„Beautiful game,
ugly business”: http://www.economist.com/node/18744271</span>People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-79318632408115736242014-07-16T11:50:00.000+02:002014-09-09T17:31:53.654+02:00The human as a high performance product<div class="separator" style="clear: both; text-align: center;">
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<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;"><o:p></o:p></span></span></b><br />
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<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Just in
time (or precisely not, depending on your perspective) for the soccer world
cup, the Franco-German television channel ARTE broadcasted a documentary with
the title “Pressure, doping, depressions – top athletes come clean” about
top-class sport. Although I thought I already knew quite a bit, this
nevertheless opened my eyes for the absolute shocking reality of professional
sport today. Athletes are deliberately and strategically trimmed and
manipulated since childhood. In order to advance the profitability of the
clubs, sponsors and multinationals , tricks such as dubious engagement
contracts, performance enhancing drugs, doctors who purposely tell only half
the truth and lawyers adept at eschewing lawsuits are commonly made use of.
This has increasingly little to do with honest performance and sportsmanship.
One wins – and earns in real – only if one is number one, and this necessitates
that one is ready to cheat as also ruin one’s body in the long-run. When mere
milliseconds decide between the first and second place and only the first place
counts for the sponsors, than one can readily comprehend that athletes are willing
to turn to any means so as to become and remain number one. The tragic part of
all this is that athletes often don’t even have a choice but to serve this
relentless pursuit of profit, lest they quit, which for a number of reasons is
decidedly difficult.</span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;"></span></span><br />
<a name='more'></a><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;"><o:p></o:p></span></span><br /></div>
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">But this
relentless, hyper-commercialized ethos of competition pervades not just the
very last corners of sport, but also countless other realms of our life and our
entire civilization. Be it in the corporate world, where CEOs are led to
continuously peer at the current share price instead of being able to focus on
generating tangible valuables; in agriculture, where all of nature is
systematically exploited or with the search of a partner, where dating services
proffer people as styled products: humans and nature are increasingly dealt
with as mere high performance products.<o:p></o:p></span></span><br />
<br />
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<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">While the
continental “old Europe” strives – with visibly increasing desperation – to
still offer a viable alternative vision to such a commercialized human and
civilization, the United States and many parts of Asia long since capitulated,
or have so internalized this ethos, that they perceive it as normal and
inevitable, yes, even the to be desired ne plus ultra.<o:p></o:p></span></span></div>
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Now, I have
nothing against achievement and excellence, especially if they are truly
creative. But when people are systematically manipulated and already children
internalize this ethos directly or indirectly, then numerous question marks
come up for me.<o:p></o:p></span></span><br />
<br />
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<span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US;">I just had
a prolonged conversation with my 14-year old daughter, who is already thinking
about what all she needs to do in order to get a scholarship to a top
university. And this “do” includes not only getting excellent grades, but also
extracurricular activities. Thus she elucidated for me that she will not only
be athletically active, but also act in the drama club, star in a musical,
contribute to the school newspaper, glean leadership experience in the student
council, serve the common good in the UNICEF club, as well as, yes, exercise
her entrepreneurial spirit by launching a new club with a few classmates of
hers. All this in her first year of high school. <i style="mso-bidi-font-style: normal;">Lean in - </i>indeed, as Sheryl Sandberg put it in her book “</span><i><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-weight: bold;">Lean In: Women,
Work, and the Will to Lead”</span></i><span lang="EN-US" style="mso-ansi-language: EN-US;">.<o:p></o:p></span></span></div>
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Hearing
this elicited in me ambivalent feelings. On the one hand delight at her
thoroughly precocious engagement and her noble motives (she is passionate about
ethical, social and legal questions and dreams of becoming a Supreme Court
justice). On the other, however, also the concern that these ambitions end up
having her lose the creative core of all her endeavors, and that she – with the
innocence of youth – slides into the above elucidated mills of achievement, to
some day find herself as yet another “high performance product” in the service
of profitability.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">For as sport
is in itself a beautiful thing, so is also the avid engagement of youth. That
is, would there not once more be the nefarious dynamic of the
hyper-commercialization of the last corners of our civilization which we are
all subject to. Unless, of course, we quit all of civilization. Which is,
again, for a number of reasons decidedly difficult…<o:p></o:p></span></span></div>
<span style="font-family: Calibri;">Manuel Dawson</span>People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-7475278971213384992014-06-19T10:12:00.000+02:002014-06-19T10:21:21.616+02:00The multi-generational company<div class="separator" style="clear: both; text-align: center;">
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;">The impending demographic changes in society and economy have raised our
awareness of the importance of intergenerational structural changes. In 2000,
only 15,1% of the population of Switzerland were over 64 years old, in 2012 it
was already 17,4%, and in the year 2030 it will be 24,2%, according to the
Federal Statistical Office.<o:p></o:p></span></div>
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;"> These demographic developments presumably also exacerbate the current
shortage of skilled workforce. The Federal Council has approved financial
support measures to mitigate this development for 2013-2016, which primarily
focus on education, research and the promotion of Switzerland’s innovative
power. In addition to the financial measures, the Federal Council has also
addressed crosscutting issues such as equal opportunities and sustainable
development as important aspects. </span><br />
<a name='more'></a><span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;">Particular attention is given to promoting
the reconciliation of work and family life, the integration of older employees,
the voluntarily prolonged working life and to occupational retraining. For
the future of working life, the different technical skills and socialization of
the various age groups among employees are particularly relevant.<o:p></o:p></span></div>
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;"> The generation of digital natives is now entering working life, and
they not only have better technical skills but also largely new type of
communication and networking capabilities.Companies are challenged by the
aforementioned demographic changes on several levels. In terms of strategy, the
attractiveness of companies is becoming an increasingly important factor. In
the future, companies have to work towards being attractive for different
generations of employees simultaneously. For this, they have to know,
understand and consider the skills and values of all generations of employees
during recruitment, in leadership, development and retention alike. By this
companies can enable the different generations to complement each other’s
skills and values and enhance diversity, resulting in more efficient working
processes.<o:p></o:p></span><br />
<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;"><br /></span></div>
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;"> At present, the main question is how the generation Y (born between
1981 and 1995) is changing the requirements for companies. Generation Y has a
high level of education in both women and men in Switzerland. Many already have
international experience and are socially well connected due to their
communication skills as digital natives. <o:p></o:p></span></div>
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;"> A recent quantitative opinion poll of almost 12’000 Swiss students by
universum, a consulting and marketing company working in employer branding, has
asked what aspects matter the most to this generation: an interesting job, the
working atmosphere in the company, the promotion by superiors and career development
opportunities. It is worth noting that about 40% of high school graduates plan
to spend five years on their first employment. Thus generation Y is more
focused on sustainability and loyalty towards their employers than previous
generations of graduates who planned to leave their jobs after two years. <o:p></o:p></span></div>
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;"> The future leaders of generation Y place great value on an inspiring
leadership style. For many, the company culture is more crucial for the
selection of an employer than a high wage or social recognition, in contrast to
the leaders of generation X. In particular, generation Y expects more
individualized possibilities in terms of training, flexibility at the work
place and work-life-balance than generation X. Despite the differences between
these two generations, both usually coexist today in companies and should be
able to work together smoothly. <o:p></o:p></span></div>
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;"> The intergenerational company that wants to stay an attractive employer
in the future should therefore think about the following topics:</span><br />
<span style="text-indent: -36pt;"><br /></span>
<br />
<ul>
<li><span style="text-indent: -36pt;">Management Development: Generation Y obviously puts a
lot of importance on individual development and company culture. In practice,
this requires not only continuous and individualized possibilities for
generation Y, but at the same time also adapted offers for other generations.
Only then the different expectations of the respective leadership generation
can be met. Furthermore, new formats should be developed that consciously
combine the different skills and experiences of the leadership generations.
Along with the continuous development of professional skills, social and
personal skills will become increasingly important. </span></li>
</ul>
<ul>
<li><span style="text-indent: -36pt;">Individual career patterns: Careers with linear
promotion patterns that still predominate today will loose importance due to
the specific requirements of generation Y, but also due to the generation of
baby boomers who are intended to remain in professional life longer. Combined
training and coaching have to become essential measures to keep connecting and
adapting the professional and leadership careers of the different
generations. </span></li>
</ul>
<ul>
<li><span style="text-indent: -36pt;">Flexibilisation of work: Due to the increasing demands
of multiple roles in professional and personal life (child care and care of the
elderly), flexible working models will gain importance in the future and
replace the still predominant presenteeism of generation X. Companies are
challenged to not only offer flexible working models, but to actively support
their implementation with role models and consulting. </span></li>
</ul>
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<span style="mso-ansi-language: EN-US; mso-bidi-font-family: Times;">See all global results of the study here: <a href="http://universumglobal.com/ideal-employer-rankings/"><span style="color: #0000e3; text-decoration: none; text-underline: none;">http://universumglobal.com/ideal-employer-rankings/</span></a><o:p></o:p></span></div>
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People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-32175215117834179992014-06-13T11:48:00.000+02:002014-06-13T17:12:14.800+02:00Applied Shared Value Creation: What Nestlé’s Botox-Strategy tells us<!--[if gte mso 9]><xml>
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<![endif]--><span lang="EN-US" style="color: #4d4d4d; font-family: "Calibri","sans-serif"; font-size: 14.0pt; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri;"></span><span lang="EN-US" style="color: #4d4d4d; font-family: "Calibri","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri;">“Nestlé
rejuvenates itself with Botox”. The Sunday papers were downright euphoric about
the strategic reorientation of Nestlé. With the Nespresso model in mind, Nestlé
is moving away from mass-produced consumer goods such as Maggi soup cubes and
going towards more exclusive products. With targeted acquisitions, the gigantic
enterprise, which many regard as cumbersome, is establishing a lucrative new
foothold with its newly founded division Nestlé Skin Health. The journal also took
away my suspicion that the nerve poison Botox might just get a euphemistic
covering by calling the division Skin Health – at least half of the Botox
applications are reportedly being used for medical reasons. The strategic move
is thus convincing at first glance: Together with Skin Health, Nestlé is
strengthening its Health Science sector, which produces food for lifestyle disease
prevention. </span>
<br />
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<span lang="EN-US" style="color: #4d4d4d; font-family: "Calibri","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri;">The
strategy follows the credo of “Shared Value Creation” that Nestlé has developed
and internalized in collaboration with the strategy guru Michael Porter. The
concept aims at no less than reorienting capitalism: Companies should search
and find solutions to pressing social issues. The panacea Botox might indeed
relief some of our everyday problems and thus create social value. It is
supposed to not only flatten wrinkles temporarily, but also to be effective in the
treatment of e.g. urinary incontinence, arthritis or premature ejaculation. </span></div>
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<span lang="EN-US" style="color: #4d4d4d; font-family: "Calibri","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Calibri;">Nevertheless,
Nestlé’s reorientation also reveals the pronounced symptoms of the strategic concept of
“Shared Value Creation”: It is cherry picking the problems. On the strategic
level, attention is only paid to the problems whose solution can be transformed
into high-margin products. In addition, as one commentator in the same paper argued,
Nestlé is fostering its connection to a specific stakeholder group: the baby
boomers. When they were born, Nestlé was fighting for supremacy in the baby
food market. As they now got wrinkles and lines, Nestlé is again caring about
the worries of the strongest financial force in society. Nestlé is not rejuvenating
but aging together with its preferred stakeholder group. </span></div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0Vevey, Schweiz46.4627306 6.842431300000043846.4408571 6.8020908000000437 46.4846041 6.882771800000044tag:blogger.com,1999:blog-2954948336224738606.post-12087984214952589422014-05-29T15:50:00.001+02:002014-05-29T15:53:14.008+02:00We, the customers<!--[if gte mso 9]><xml>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibEY2qxso09G-z4AjTf7zWjr27FzkiEFy9GYnejld83MsbhtRhkeibQEbp7yNiIqieFtYxSaOHdJVDMrkIXGskHnzWPs5y-mVLT1rDRPOpYE_AUGI1i5BNgMp2QTFoxKLIk_xnSfNeVfA/s1600/Vanessa_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibEY2qxso09G-z4AjTf7zWjr27FzkiEFy9GYnejld83MsbhtRhkeibQEbp7yNiIqieFtYxSaOHdJVDMrkIXGskHnzWPs5y-mVLT1rDRPOpYE_AUGI1i5BNgMp2QTFoxKLIk_xnSfNeVfA/s1600/Vanessa_portrait_original.jpg" height="132" width="200" /></a></div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgygpHO3Wl_OeyQSsVDulrWTG0_UiSrrpuCuxOK5jF3IqPIXX-yWpkwU77etOKLPW21c4p9mysSzbAHU1uQmSbRQWfN1T0dFXgArzURxApDiV_BkLGEKy5HMgoEKXd2d5vwFs_3SMpQYlU/s1600/Vanessa_portrait_online.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><br /></a>
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<span lang="EN-US" style="mso-ansi-language: EN-US;">We, the
customers, are giving us as employees a hard time. This thought crossed my mind
during the closing event of our Business & Society seminar at the
University of Zurich. This year, the students conducted qualitative
research projects on corporate health management. Besides discussing the
benefits a company can attain by keeping employees </span><span lang="EN-US" style="mso-ansi-language: EN-US;"><span lang="EN-US" style="mso-ansi-language: EN-US;">healthy</span> (achieving a return on investment), the discussion also addressed the limits of
such measures. On the one hand, employees have to take responsibility for their
own health, thus the influence of the organization on their health is
limited. On the other hand, another issue was raised: The closer a department
is to the customers, the more pressure there is and the smaller the possibility
of reducing the workload (an often mentioned stressor). The customers, in a
competitive environment, determine their expectations towards a company. These
expectations can be quite high and are only rarely met with a normal volume of
work. As a consequence, corporate health management faces resistance as well. </span></div>
<a name='more'></a><br />
<div class="MsoNormal">
<span lang="EN-US" style="mso-ansi-language: EN-US;">What are
the implications for society? We can hardly ever meet our own expectations. In
the end, we are all customers (and at the same time employees) and thus part of
the economic system. Even though the influence of the individual end customer
is limited, especially on a global market, this bottom-up reasoning may have an
impact on the overall system. If we approach an issue from various sides, the chances
for it to improve increase. So I’ve asked myself what I could do in my role as
a customer. Sometimes I catch myself waiting impatiently when there’s a delay at
the shopping checkout or getting upset when my health insurance company doesn’t
answer my emails immediately. Maybe slowing down a little, interacting in a more humane instead
of mechanistic way with employees as well as a fostering a genuine interest for the other person, understood not
as a replaceable workforce, but as an individual with his or her own
interesting and maybe flawed properties, could lead to more realistic expectations.
And even if this approach doesn’t have the intended effect, you can at least
benefit from a more relaxed mood. </span></div>
<div class="MsoNormal">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><br /></span></div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-20040183682856357182014-04-29T13:52:00.000+02:002014-04-29T14:09:14.772+02:00Social standards for companies: an effective medicine or just a placebo?<!--[if gte mso 9]><xml>
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<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijw9S0lYcKcJVwBkxHQrKMBMVsP0BTqLwrLyMTVmfv9pNWAJOLmf__ZFQKSeEGXHnolssTN759_teUtck7yFLWO10hKYa0SpzbPLh8PbtKovtMt2cBZob7T2rORqCmsjl8GsCfKBjmKpY/s1600/Claude_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijw9S0lYcKcJVwBkxHQrKMBMVsP0BTqLwrLyMTVmfv9pNWAJOLmf__ZFQKSeEGXHnolssTN759_teUtck7yFLWO10hKYa0SpzbPLh8PbtKovtMt2cBZob7T2rORqCmsjl8GsCfKBjmKpY/s1600/Claude_portrait_original.jpg" height="200" width="138" /></a><span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">In the last decade, many social standards have been created in order to
help companies to act in a socially responsible way. These standards often
differ quite a lot in terms of specificity, ranging from a minimal point of
orientation up to a detailed, process-oriented support for the implementation.
Examples for rather general standards are the OECD guidelines, for the more
specific standards e.g. the Social Accountability 8000 but also the more
detailed Global Reporting Initiative (GRI). </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The big question after more than ten years is, what are the benefits?
What is the impact and effectiveness of social standards with regard to their
own goals? I have examined these questions by conducting a study in the
clothing industry regarding labor rights. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">More specifically, I have examined two social standards with a lot of
members also in Switzerland: The Fair Wear Foundation (FWF) and the Business
Social Compliance Initiative (BSCI). My data consisted of confidential audit
reports and interviews with representatives of companies and NGOs in
Switzerland and in the producing country China. I have developed a system
(including a comparison over time), which is able to analyze the data and
provide answers to the question of effectiveness. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">My analysis shows that FWF and BSCI have indeed contributed to the
improved labor rights situation in China, at least in certain areas. Especially
in areas that are easily measurable (e.g. minimum wage, health and safety) as
well as in areas supplementary to the actual labor rights (e.g. awareness of
the existence of labor rights). The results are worse in areas that are not
that easily accessible by the means of factory audits (the main tool for evaluating
the success of implementation), e.g. the freedom of assembly, the right to
collective bargaining or the living wage, which should enable social and
cultural participation. There were some improvements in those areas as well,
but in absolute terms, the level has remained low. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The main problem with the living wage, which the FWF (but not BSCI) requires
is the lack of a clear definition. In principle, the legal equation should
probably be minimum wage = living wage. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">With regard to the freedom of assembly and the right to collective
bargaining, the consequent call for these rights by the FWF had at least a
partially positive impact. An additional positive factor is probably the strong
involvement of the member companies during the implementation, as required by
the FWF. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">This stronger involvement has led to more frequent interactions between factories
and members, which helped reducing the problem of the snapshot nature of
audits. In addition, it made the implementation seem less imposed from the
outside as purely external audits would. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">In general, my study suggests that different forms of cooperation and
exchange between stakeholders are beneficial to an effective implementation. Thus,
member companies can exchange their views among each other and with NGOs at
arranged meetings. This not only increases the relevant skills for the
implementation, but also their mutual acceptance (especially companies – NGOs).
FWF and BSCI already have been active in this area but there still is a lot of potential. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Overall, the study has demonstrated that it is possible to create an
evaluation system for the effectiveness of social standards. However, its
significance strongly depends on the quality of the data, which usually wasn’t created
for the purpose of such an analysis. </span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">These insights lead us to the following conclusion: The standards FWF
and BSCI are not a placebo but a medicine – an effective medicine, but still (and
by far) not for all ills.</span></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-outline-level: 1; text-align: justify;">
<span lang="EN-US" style="font-family: "Calibri","sans-serif"; font-size: 13.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Claude Meier</span></div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-26638406875649312662014-04-24T14:46:00.002+02:002014-04-24T14:47:40.614+02:00Giving Voice to Values<span lang="EN-US" style="mso-ansi-language: EN-US;">It’s one thing to
intellectually comprehend various ethical models or to be conscious oft he diverse
ethical dilemmas that await one in one’s chosen profession, and quite another
to act in accordance with one’s personal values in specific situations. It is
here where Mary Gentile’s book “Giving Voice to Values” makes a very innovative
contribution: <a href="http://www.givingvoicetovaluesthebook.com/"><span style="color: blue;">http://www.givingvoicetovaluesthebook.com/</span></a><o:p></o:p></span>People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-11271874250255033082014-04-24T14:21:00.000+02:002014-04-24T14:21:17.389+02:00The misleading premise of Porter's "Shared Value" concept
<span style="font-family: Calibri;"><a href="http://www.ft.com/cms/s/2/7b19586c-add7-11e3-9ddc-00144feab7de.html#axzz2zXyb1zv2" target="_blank">Andrew Crane (Professor of business ethics and director of the Centre of Excellence in Responsible Business, Schulich School of Business, YorkUniversity, Toronto) on the misleading premise of Porter’s “shared value premise”.</a></span><br />
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-89154759187343993542014-04-16T18:29:00.000+02:002014-04-17T16:20:02.684+02:00Vegan and Dangerous!<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGCVSvfIf9PAv_U8TNxHhYZONkf2lU34IAZklvGwnOWRsjF8OInIOquvcONwZiWLK8vwcVv35ElmeAiwv5nS6fWhqTB8ETUIj5yWOYHqUlbIOralCpNkDSYpv59klEB5j5oh9f1K8KngA/s1600/Manuel_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGCVSvfIf9PAv_U8TNxHhYZONkf2lU34IAZklvGwnOWRsjF8OInIOquvcONwZiWLK8vwcVv35ElmeAiwv5nS6fWhqTB8ETUIj5yWOYHqUlbIOralCpNkDSYpv59klEB5j5oh9f1K8KngA/s1600/Manuel_portrait_original.jpg" height="200" width="138" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">While I
have made a good number of choices in my life which were not in line with the
predilections and views of the majority and consequently did not always reap
enthusiastic accord, so I was nevertheless unprepared for the in part fierce
reactions that my decision to forthwith abstain from animal products (including
milk and eggs) prompted. I have since been subjected to everything from “this
is too radical” and “you vegans are all so judgmental” to “Vegan – that’s a
cult!”. At times I was also just derided as if I was some airy fool or I was
again attacked in the sense of “oh, so you are one of those ‘holier than thou’
do-gooders who then also wants to impose his personal morality on us.” (An
excellent example of <i style="mso-bidi-font-style: normal;">argumentum ad
hominem</i>: instead of engaging in a factual discussion, one <i style="mso-bidi-font-style: normal;">a priori</i> attacks the person and
discredits him or her).<o:p></o:p></span></span></div>
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Wow!<o:p></o:p></span></span><br />
<a name='more'></a><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;"><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<o:p><span style="font-family: Times New Roman;">
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;">That the
abstention from milk products and eggs can result in such widespread and
vehement reactions most likely indicates that there is a whole series of
conscious and unconscious – suppressed – self-conceptions, habits, social
taboos and economic interests that are being questioned.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;">Such
reactions as I experienced remain on a purely personal level and in their
effect temporally limited as long as the proportion of people in our society
who abstain from consuming animal products is negligibly small. Should,
however, this proportion in the population grow and result in making societal
demands (for example offering vegan menu options in cafeterias or simply
launching a social discourse about our till the last detail yield optimized,
industrialized method of food production and their consequences for the
involved animals, the environment and the stakeholders in poorer parts of the
world), economic - and thus also political - interests will be affected,
unleashing a whole string of measures aimed at silencing and curtailing their
impact. Apart from the fact that farmers make up a disproportional number of
the Swiss parliament, the farmer’s syndicate and the food industry are
financially lavishly endowed and exceptionally well connected to the levers of
power – be this the media with its concomitant advertising sector, the
political establishment itself or the various governmental administrative departments,
in Switzerland for example the federal office for health or for the
environment. A massive economic and political campaign would thus be unleashed,
where also a growing and formally organized group of citizens (in the US </span><a href="http://www.americanvegan.org/"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="color: blue;">http://www.americanvegan.org/</span></span></a><span lang="EN-US" style="mso-ansi-language: EN-US;">) who consciously distances itself from the
contemporary food production methods, will hardly be able to counter.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;">In spite of
this, such a social discourse will become indispensible, at the end of the day
not so much because of the compelling empathetic or health arguments, but
because our current food consumption behavior is simply non-sustainable in the
long-run. In this context one need to also ask oneself to what extent we wish
to also include stakeholders that do not have a voice – as for example people
in poor parts of the world, the not yet born generations of humans and of
course also the animals – all of whom also bear the burden of the consequences
of our consumption habits.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;">In this
context it is however important that such a discourse ensues as much as
possible without the according of blame and the passing of judgment. The point
here is not to condemn, for example, the milk and egg farmers who, despite
billions of subsidies in Switzerland, still have to increasingly operate in a
market where, despite the ‘organic food’ movement, only the price per quantity
counts, or to denote a tradition celebrating fondue eater as some kind of a
monster. At the same time, however, it behooves us also to have consideration
for “vegans” and to not <i style="mso-bidi-font-style: normal;">a priori</i>
judge and marginalize them as radical do-gooders. Every person is at the end of
the day embedded in his or her social and cultural milieu and incapable of
always taking into consideration all the ramification of his or her behavior
and habits - many of which he or she is often sentimentally entwined with - much
less to readily change them accordingly. Thus we are all preoccupied with our daily
problems – big or small, or are otherwise distracted by life, so that we are unable
to open ourselves up for all “inconvenient truths” and their consequences for
our behavior.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;">I myself am
here a prime example: although I grew up on a cattle ranch in the US and have
also worked for several weeks on a dairy farm in Switzerland, I still required
my own good time until I was ready to investigate the matter more profoundly,
and then to marshal the required energy so as to bring my behavior in
concordance with my values and my sense of empathy. Nevertheless, a
civilization is only capable of evolution and thereby fit for survival, if it
periodically questions itself critically – also if one thereby challenges the
economic interests, social taboos and historically deeply rooted traditions.
Amos Oz, an Israeli author, wrote once that curiosity and the willingness to
also investigate the uncomfortable are to be understood as part of human
ethics.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;">Apropos: in
this context it was fascinating for me to discover just how easy and fast you
can change your eating habits without perceiving it as a sacrifice. It is
indeed worthwhile as a personal experiment to abstain for a month from animal
products, even if you do not always succeed outside of the home. The experience
to be so readily able to change your habits in order to discover and create
something new, empowers, liberates and enlivens in a wonderful manner!</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;">Manuel
Dawson<o:p></o:p></span></div>
<span style="font-family: Times New Roman;">
</span></o:p> </div>
</span><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
</div>
</span><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
</div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-40934263298602661662014-04-11T09:36:00.003+02:002014-04-11T09:40:57.260+02:00Good theory<!--[if gte mso 9]><xml>
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<![endif]-->In academic circles you frequently encounter the opinion that a good theory is mainly able to demonstrate model cause-effect-relations (causalities) and quantifiable results. This view is based on the so-called exact sciences where it may well have its validity. But what is the situation in the humanities and social sciences?<br />
<br />
When reviewing the leading economic journals for example, one gets the impression that this view applies here without any restrictions as well. Contributions predominate which draw quantitative conclusions and demonstrate model periodic causalities in any form.When addressing a problem, only the quantifiable aspects are shown and taken into account, while everything else is eliminated by abstractions or marginalized as externalities. <br />
<a name='more'></a>So you might still find contributions that reduce man to homo economicus and exclude the social impact. The reviewers of such journal articles are often established scholars not very interested in young researchers fundamentally challenging their held views by bringing forward unconventional assumptions and arguments. Established scholars determine what a “good” theory is. However, hasn’t the financial crisis demonstrated that the theories and models considered as good even by leading economists have failed miserably?<br />
<br />
Therefore the claim must be to only approve of theories that take into account the complexities of real life and also consider social and ecological impacts in addition to economic aspects. In this regard verbal clarifications and arguments are generally better than purely quantitative models. They might be less formally elegant, but they provide incomparably better insight. This is why journals should consider qualitative research more extensively than just the usual abstract simplifications. The advice for practitioners in companies and in administrations would therefore be to always insist on asking about the fundamental assumptions of models and about the abstractions of the underlying theories when the model makers appear before accepting their proposals and solutions. Only then you can see whether the applied theories are good not only because they are elegant, but because they adequately capture the often-annoying complexities of real life. People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-51742405711960266532014-03-27T09:43:00.005+01:002014-03-28T16:09:41.830+01:00Can the law promote doing the right thing? <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhge67Ylcgp2FgA8fFEtzVOLAcRKM_35EKznHi_r6oWyU-XdqOxkHprJY0Eb_kClR-KRVAWGhF1frYp39cxzNPONCndTQU042cBuo60JyOEsl7s6hFI9soGyH6ITxoG1NQait3ATvYHoLE/s1600/Christian_portrait_original.jpg" imageanchor="1" style="clear: left; display: inline !important; float: left; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhge67Ylcgp2FgA8fFEtzVOLAcRKM_35EKznHi_r6oWyU-XdqOxkHprJY0Eb_kClR-KRVAWGhF1frYp39cxzNPONCndTQU042cBuo60JyOEsl7s6hFI9soGyH6ITxoG1NQait3ATvYHoLE/s1600/Christian_portrait_original.jpg" height="200" width="149" /></a><span style="font-family: inherit;">Yesterday,
the Swiss federal government published a report addressing the responsibilities
of companies. The crux of the report is the question of whether the legislator
should declare the non-binding global ethics standards as binding for Swiss
companies. Here, opinions differ along the well-known lines: On the one hand the
voices of business-critical NGOs, which are using every means to gain attention
for what they consider right; on the other hand business-friendly
representatives for whom any regulation is one too many. I don’t plan to join
in their mantra of voluntariness, business’ ability to restrain itself.
However, I ask myself to what extent more regulations actually enhance a sense
of responsibility in companies. Can the law promote doing the right thing? The so-called
fat-cat-initiative that passed last year and going to be a paragraph in the
federal constitution provides illustrative material for this – as far as the
consequences can already be estimated. </span><br />
<a name='more'></a><span style="font-family: inherit;"></span><span style="font-family: inherit;"><span lang="EN-US">The fat-cat-initiative
has promised to limit the compensation of top management. It stated that the
bonuses have gotten out of hand; some commentators even saw the social glue at
risk. The initiative sought to remedy the problem by a juridification of what’s
“right”. New procedural rules should leverage the right thing, i.e. a socially
acceptable compensation practice. </span></span><span style="font-family: inherit;"></span><br />
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<br /></div>
<span style="font-family: inherit;">
</span><br />
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<span style="font-family: inherit;"><span lang="EN-US">However, at
the present time there has been another breakthrough: As a direct result of the
initiative the demand for the so-called directors and officers liability
(D&O) insurance went through the roof. It protects personal assets of board
members against vulnerabilities from derivative suits. This can be seen as an
indicator showing that the actions of those responsible are indeed more
oriented towards legality. However, it can also be seen as safeguarding of
those in charge mainly driven by fear of responsibility. </span></span></div>
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<br /></div>
<span style="font-family: inherit;">
</span><br />
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<span style="font-family: inherit;"><span lang="EN-US">The newest
compensation reports now circulating in the media to be presented to the
shareholders imply that the right thing probably won’t be implemented through
these new regulations. To some extent, taking on responsibility has become more
of an exercise in compliance. Thus, purely economic arguments support the
invariably inflated management compensations. “We need to pay competitive
salaries to compete in the war for talents!”, is stated by the people
responsible for it, thereby willfully ignoring the fact that the sovereign has
called for socially fair salaries. </span></span></div>
<span style="font-family: inherit;">
</span><br />
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<span style="font-family: inherit;"><span lang="EN-US">In my
opinion, the juridification of doing the right thing only reinforces what
stakeholder theory has called the “separation fallacy”: The detachment of
economic activity from our everyday lives. “Morality” still applies to everyday
life; in business, however, only its apparent laws of merciless competition
count.</span></span></div>
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<br /></div>
<span style="font-family: inherit;">
<span lang="EN-US" style="line-height: 115%;">To sum up, the law cannot enforce doing the
right thing. The law exempts from personal commitment. The law only forwards a
pressure to legitimize, which in turn even reinforces a purely economic logic
in the business world. In contrast, the right thing has its roots in internalized
values, not in imposed rules of behavior. So instead of more directives that
fail in prescribing what’s right, we need more stories that tell the right
thing. Particularly at these venues where the leaders of tomorrow are
listening.</span></span>People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-30704510388501212402014-03-17T14:18:00.000+01:002014-03-17T14:19:58.158+01:00Good stress management<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgygpHO3Wl_OeyQSsVDulrWTG0_UiSrrpuCuxOK5jF3IqPIXX-yWpkwU77etOKLPW21c4p9mysSzbAHU1uQmSbRQWfN1T0dFXgArzURxApDiV_BkLGEKy5HMgoEKXd2d5vwFs_3SMpQYlU/s1600/Vanessa_portrait_online.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgygpHO3Wl_OeyQSsVDulrWTG0_UiSrrpuCuxOK5jF3IqPIXX-yWpkwU77etOKLPW21c4p9mysSzbAHU1uQmSbRQWfN1T0dFXgArzURxApDiV_BkLGEKy5HMgoEKXd2d5vwFs_3SMpQYlU/s1600/Vanessa_portrait_online.jpg" height="200" width="157" /></a></div>
Currently, we are holding a seminar at the University about stress at the workplace and health promotion in companies. The relevance of this issue is evident not only because of the keen interest of our students, but also due to its presence in daily press. Articles on the subject appear almost weekly on all possible aspects of stress: <br />
<br />
- how stressed we are („<a href="http://www.huffingtonpost.com/2013/07/30/worker-burnout-worldwide-governments_n_3678460.html" target="_blank">Burnout Is Everywhere</a>“),<br />
<br />
- who is affected by it ("<a href="http://www.thetimes.co.uk/tto/arts/stage/dance/article3986947.ece" target="_blank">Exhausted dancers make their point</a>"),<br />
<br />
- what personal and economic consequences can be observed („<a href="http://well.blogs.nytimes.com/2013/07/01/feeling-stressed-its-probably-harming-your-health/?action=click&module=Search&region=searchResults%231&version=&url=http%3A%2F%2Fquery.nytimes.com%2Fsearch%2Fsitesearch%2F%3Faction%3Dclick%26region%3DMasthead%26pgtype%3DHomepage%26module%3DSearchSubmit%26contentCollection%3DHomepage%26t%3Dqry264%23%2Fstress%2Fsince1851%2Fallresults%2F2%2F&gwh=924B19173028B5A670B86A92D2A90F64&gwt=regi#1&version=&url=http://query.nytimes.com/search/sitesearch/?action=click&region=Masthead&pgtype=Homepage&module=SearchSubmit&contentCollection=Homepage&t=qry264" target="_blank">Feeling stressed? It's probably harming your health</a>", "<a href="http://www.economist.com/blogs/freeexchange/2013/09/working-hours?page=2&spc=scode&spv=xm&ah=9d7f7ab945510a56fa6d37c30b6f1709" target="_blank">Get a life</a>", "<a href="http://articles.chicagotribune.com/2012-10-29/business/ct-biz-1029-employee-burnout-20121029_1_employee-burnout-herbert-freudenberger-employee-stress" target="_blank">Burnout on the rise: Workplace woes adding up</a>"), <br />
<br />
- what can be done against it („<a href="http://www.thetimes.co.uk/tto/law/article4003869.ece" target="_blank">Stress in the city: how employers can help</a>"<br />
<br />
<a name='more'></a><br />
<br />
- what should be considered („<a href="http://opinionator.blogs.nytimes.com/2013/07/27/status-and-stress/?_php=true&_type=blogs&action=click&module=Search&region=searchResults%230&version=&url=http%3A%2F%2Fquery.nytimes.com%2Fsearch%2Fsitesearch%2F%3Faction%3Dclick%26region%3DMasthead%26pgtype%3DHomepage%26module%3DSearchSubmit%26contentCollection%3DHomepage%26t%3Dqry264%23%2Fstress&_r=0" target="_blank">Status and Stress</a>“).<br />
<br />
I welcome that the issue of stress is being discussed. Especially for companies this really is a pressing issue, in my oppinion. It is crucial to look for solutions and take measures so that the material prosperity we have in our latitudes also leads to a high level of well-being. However, I am rather critical of the trend of coupling the issue of stress with categories of performance: Stress is often considered as a condition that needs to be “managed”. The attributes of “good” or “bad” stress management follow quickly and quite automatically. This tendency can also be observed in an article in the “Handelszeitung” with the translated subtitle “Work-Life-Balance: Successful leaders plan and measure their sleep. Intelligent regeneration becomes a career advantage”. Only those who deal with stress efficiently and optimize their regeneration are able to keep up. The credo is an hour of jogging and an hour meditating, functional food and the “right” kind of sleep, only to be ready and resilient. It is of course great if this lifestyle brings joy and relaxation. But if this behavior comes out of a perceived pressure to perform, it probably doesn’t bring the desired results in the long term and for many with a family and a social life, it is simply not doable. Companies should actively address this issue. I think it is important to take the issue of mental health of the employees of a company seriously and to develop effective measures – not primarily as a tool for enhancing performance, but out of compassion and care for the employees and colleagues. This is the only way to actually increase a sense of personal well-being. Well-being shouldn’t be just a means to an end, but should in itself be considered valuable. A nice quote from the stakeholder literature captures this in a nutshell: „Strategically applying ethical principles – that is, acting according to moral principles only when doing so is to your advantage – is by definition, not following ethical principles at all.“ (Berman, Wicks, Kotha und Jones (1999: p. 493)<br />
<br />
Vanessa McSorley People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com1tag:blogger.com,1999:blog-2954948336224738606.post-27579774553084792142014-03-13T17:12:00.003+01:002014-03-17T09:12:20.431+01:00Interesting <a href="http://blogs.hbr.org/2014/03/five-questions-to-identify-key-stakeholders/" target="_blank">blog post</a> by Graham Kenny on the Harvard Business Review Blog on identifying stakeholders in practice!<br />
<br />People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-19155647782810280042014-02-27T16:43:00.000+01:002014-02-28T17:01:42.284+01:00<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGCVSvfIf9PAv_U8TNxHhYZONkf2lU34IAZklvGwnOWRsjF8OInIOquvcONwZiWLK8vwcVv35ElmeAiwv5nS6fWhqTB8ETUIj5yWOYHqUlbIOralCpNkDSYpv59klEB5j5oh9f1K8KngA/s1600/Manuel_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGCVSvfIf9PAv_U8TNxHhYZONkf2lU34IAZklvGwnOWRsjF8OInIOquvcONwZiWLK8vwcVv35ElmeAiwv5nS6fWhqTB8ETUIj5yWOYHqUlbIOralCpNkDSYpv59klEB5j5oh9f1K8KngA/s1600/Manuel_portrait_original.jpg" height="200" width="138" /></a></div>
<b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Zara – a reputation made, a reputation
squandered?<o:p></o:p></span></span></b><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">In some of
my past blog posts I discussed the significant value a good reputation has by
example of Switzerland’s repute as a high-quality producer of products and
services. I showed that there is concrete evidence that a good reputation and
the trust that it engenders in potential customers is not only an exercise for
“doing good for goodness sake”, but also translates into hard cash and profits
(see my recent blog entry on "Dismantling of a Swiss Holy Cow"</span><span style="font-family: Calibri;">
). Many corporations, due either to considerable competitive pressure or simply
due to the myopic imperative of maximizing profitability, take short-cuts or systematically exploit the vulnerable.
So it seems to be the case with Zara, the fashion house of the Inditex Group.</span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;"></span></span><br />
<a name='more'></a><span style="font-family: Calibri;"><o:p></o:p></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">When I
first read about the story of Inditex’ success, I was struck by its ingenious
business model of just-in-time fashion delivery and a no-advertisement
strategy. I also was touched by how the business was started from nothing by
Amancio Ortega, a shop hand at a small shirt maker, and Rosalia Mera, a
seamstress, in a remote part of Spain called A Coruña. Hard work and a shrewd
business sense built one of the biggest clothing conglomerates in the world and
Ortega was ranked as the third richest person in the world in 2013 by Forbes
Magazine. Now, a wealth created out of nothing demands respect – provided it
was created by virtue of ingenuity and hard work. If, however, this wealth was
created on the backs of the vulnerable, it justifiably vaporizes and a foul
after-taste takes its place.</span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;"><o:p></o:p></span></span><br />
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Is the
latter the case with Zara? I do not know, the jury is still out. Nevertheless,
walking a few days ago along the pricey “Bahnhofstrasse” in Zurich, a verdant
avenue filled with high-end retailers, I was struck by the construction site for
a new Zara department store, surrounded by a number of UNIA (a Swiss labor
union) members handing out flyers. Engaged into a conversation, I was explained
that workers were working up to 15 hours per day, but paid for only 8, and that at
significantly less than industry standard – and in Switzerland legal – wages (between
900 and 2000 Euro vs. 4,500 Euros). These then are, for Swiss standards,
dumping salaries, practically (but not legally) possible due to the (still)
open borders of Switzerland (see the last blog post on the vote on mass
immigration) for workers from the EU. But even if one were to argue that these
workers from Spain ought not to have to be paid the high Swiss salaries, it sheds a
dubious light on Inditex’ business practices when Spanish workers explained
that they were instructed in Spain to say that they get paid regular Swiss
wages upon arrival in Switzerland, when in fact they were not. Such
instructions to obfuscate the truth are not exactly conducive for trust that
Zara is a company that strives for transparency, integrity and a favorable
image.<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">I have
since written to Inditex asking them to explain their behavior, lest I (or I
should say, my teenage daughter) will boycott any further purchases from their
stores. Moreover, I asked them to send me a list of action items so as to
remedy these dubious business practices (provided they are indeed true). I will
keep you posted pertaining their reply, so check back here. Better yet,
however, write to them yourself and demand a response. It is a very easy
gesture of citizen-activism in view of greater transparency and a more humane
world. You can do so directly here: </span><a href="http://www.zara.com/ch/en/contact-us-c11113.html"><span style="color: blue; font-family: Calibri;">http://www.zara.com/ch/en/contact-us-c11113.html</span></a><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Manuel
Dawson<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="mso-ansi-language: EN-US;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
</div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com1tag:blogger.com,1999:blog-2954948336224738606.post-82844600613208169082014-02-19T11:35:00.000+01:002014-02-21T14:36:14.185+01:00<!--[if gte mso 9]><xml>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGCVSvfIf9PAv_U8TNxHhYZONkf2lU34IAZklvGwnOWRsjF8OInIOquvcONwZiWLK8vwcVv35ElmeAiwv5nS6fWhqTB8ETUIj5yWOYHqUlbIOralCpNkDSYpv59klEB5j5oh9f1K8KngA/s1600/Manuel_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGCVSvfIf9PAv_U8TNxHhYZONkf2lU34IAZklvGwnOWRsjF8OInIOquvcONwZiWLK8vwcVv35ElmeAiwv5nS6fWhqTB8ETUIj5yWOYHqUlbIOralCpNkDSYpv59klEB5j5oh9f1K8KngA/s1600/Manuel_portrait_original.jpg" height="200" width="138" /></a></div>
<div class="MsoNormal">
<b><span style="mso-ansi-language: EN-US;">Mass Immigration, the
Growth Imperative and the Creative Metropolis</span></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">In Switzerland, votes can quickly turn into a political thriller accessible
to the public. Here, the people as the ultimate sovereign has the right (which
is rather exceptional compared to other countries) to say “stop, not like
this!” in a vote, notwithstanding the recommendations of its government, of
wealthy interest groups or expert warnings. This was the case with the recent initiative
against mass immigration launched by the SVP that has won with a narrow
majority of votes. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">The reactions to this result produced quite predictable waves of
indignation, hyperbole and panic (while the winners’ joy was a bit muffled):
Switzerland at the economic abyss, an isolated island of happy xenophobes, a
nation of spoiled farmers who tore open the “Röstigraben” and slapped the EU.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">Is this outcry justified? </span></div>
<div class="MsoNormal">
<a name='more'></a><br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">At the very least it is open to discussion. The Swiss economy has been buzzing
for decades also without the free movement of persons. Furthermore one cannot
simply label a country as xenophobic with four out of ten people having a migration
background while at the same time enjoying considerable social peace. A spoiled
nation of farmers probably also wouldn’t repeatedly and decidedly vote “no” to
more holidays, much to the incomprehension of its European neighbors. We also
cannot speak of a real “Röstigraben” when four out of ten Romands (French
speaking Swiss) still voted for the initiative while several districts (all
urban cantons) of the German speaking part of Switzerland rejected it. Finally
the slap in the face of the EU should rather be interpreted as a slap in the
face of the European political establishment than of the European citizens, who
probably would have voted similarly in most cases, would they have a comparable
right of the Swiss initiative. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US; mso-bidi-font-weight: bold;">The reasons why so many Swiss supported the initiative are manifold.
Besides the fear of foreign infiltration and the congestion of infrastructure,
it is mainly a growing general unease with the current economic and consumer
ideology, which is based on the idea that “more” automatically means “better”.
A higher GDP – even if it’s per capita – doesn’t automatically translate into a
higher standard of living. But even if one were to accept this claim as a
truism, as many representatives of the economy propagated implicitly or
explicitly, a comparison with Germany provides some interesting insights. Even
though Germany has a shrinking population, its GDP has increased by 10% over
the past 10 years, compared with 19.2% in Switzerland. However GDP per capita has
increased by 10.55% in Germany whereas in Switzerland it has increased only by
7.29% (1). So 80,000 new immigrants per year aren’t necessarily needed to
increase economic productivity. <span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US;">However, recent research
findings point to the fact that at least in industrialized metropolitan areas
with good transportation systems there is a considerable and statistically
relevant correlation between the population and its economic productivity and
innovation. When the population of a city doubles, its economic productivity
increases by 130%, which means that productivity per capita increases
significantly. Bigger cities, better connections and more flexibility, a better
use of talent as well as more innovation – this could sum up the recipe for
success for such cities. But there are a few down-sides to such population
growth, among which is that the larger a city, the higher the crime rate. In
this context it is interesting that Zurich is explicitly mentioned in a study
as an example where population growth hasn’t been accompanied by an increase in
the crime rate. The authors of the study attribute this to the huge investments
in public transport, particularly relevant in as much as Zurich is a
metropolitan region composed of numerous smaller towns whose inhabitants can
easily travel to the city center in a very short time (2). The investments in
public transport – even when they are subsidized by the state – not only
contribute to keeping the standard of living on a high level, but are also
worth it economically. It actually makes sense, because the bigger the
available talent pool, the better the fit for a job opening. This is especially
relevant for recruiting talent today, when both partners in a relationship work
professionally. While one of them might find a new job in St. Gallen, the other
might still want to keep his job in Zurich. This is quite doable thanks to a
good, affordable public transport system without one of them having to give up
his or her job or taking a lesser position at the new location. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US;">While in purely
economic terms the public transport subsidies might well be worth it, the
ecological balance might however not be quite as shiny. Further urbanization of
little Switzerland is certainly a big issue that might be directly addressed by
the EcoPop-initiative that is scheduled for vote in few years. In this context
there have been many discussions about how many persons actually fit in
Switzerland – with the specter being a 10 million country as a horror scenario.
But if you consider that ten New York Cities would actually fit in the Swiss
midlands, you realize that there’s still enough space in our country for more
people, roads and houses. Like the New Yorkers, the Swiss mostly cannot imagine
to emigrate, so we shouldn’t automatically speak of an unhappy nation of 10
million inhabitants. Rather, we must take into consideration that our quality
of life might suffer if the population keeps growing in the same uncoordinated
and non-compact way. NYC is known to be a dynamic and livable city because it
has grown vertically as opposed to an urban sprawl like, for example, Los
Angeles has. So why not build a mini Manhattan in Zurich North or West?
Couldn’t this lead to an urban dynamic that would also entail an improvement in
the quality of live? </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US;">Therefore the
consequences of and factors involved in the initiative against mass immigration
are complex and there probably will be neither inevitable disasters nor simple
solutions for it.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US;">Manuel Heer Dawson</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US;">(1) <u><a href="http://www.schweizamsonntag.ch/ressort/meinung/die_verklaerte_zuwanderung_die_bip-pro-kopf-luege/">http://www.schweizamsonntag.ch/ressort/meinung/die_verklaerte_zuwanderung_die_bip-pro-kopf-luege/</a></u></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-ansi-language: EN-US;"> (2) </span><span lang="DE" style="mso-ansi-language: DE;"><a href="http://web.mit.edu/newsoffice/2013/why-innovation-thrives-in-cities-0604.html"><span lang="EN-US" style="mso-ansi-language: EN-US;">http://web.mit.edu/newsoffice/2013/why-innovation-thrives-in-cities-0604.html</span></a></span><span style="mso-ansi-language: EN-US;"></span></div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-79761937342881032372014-02-12T18:32:00.001+01:002014-02-12T18:35:30.540+01:00The Swiss vote on immigrationSwitzerland did it again: Swiss vote on immigration as a challenge to European integration. <span lang="DE-CH" style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: DE-CH; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><a href="http://nyti.ms/1h4S2B2">http://nyti.ms/1h4S2B2</a></span>People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com1tag:blogger.com,1999:blog-2954948336224738606.post-83210978662755712492014-02-06T17:20:00.001+01:002014-02-06T17:21:57.329+01:00Jungle Camp Stakeholder Management<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjI5R2tx06nmB0pFT3Hm0srHuOP_X0gb-rLbh8CR5iIelr77F4FYqIVvDC0UNqKmYOvhwaMeWjkDhIHRgL-eCgQvXSL-7fRKBOQoUqtbj-RNLNujmmnnacLqy9lAOtMgN22euc8XfkXOhY/s1600/Tom_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjI5R2tx06nmB0pFT3Hm0srHuOP_X0gb-rLbh8CR5iIelr77F4FYqIVvDC0UNqKmYOvhwaMeWjkDhIHRgL-eCgQvXSL-7fRKBOQoUqtbj-RNLNujmmnnacLqy9lAOtMgN22euc8XfkXOhY/s1600/Tom_portrait_original.jpg" height="200" width="138" /></a></div>
<div style="text-align: justify;">
I have watched the German jungle camp (“I am a celebrity…Get me out of here”; and the confessions end here). Much has been written and discussed on this broadcasting format in which more or less famous participants face nauseating tests in the jungle with the world watching. Let’s look at the jungle camp for a moment from the perspective of corporate stakeholder management. Stakeholder management aims at generating as much value as possible by including the stakeholders of an organization, in order to achieve what is called integrative or “win-win” results. In our thought experiment, let’s assume that RTL is the company we look at, which sells and broadcasts the product “jungle camp”.<br />
<a name='more'></a><br />
<div style="text-align: justify;">
<br />
What are the benefits for the different stakeholders of RTL? Judging from the viewing rates, the jungle camp seems to satisfy a huge customer demand by generating a specific benefit for the viewers. The more or less famous participants in the jungle receive a bonus of tens of thousands euro for their participation on the one hand. On the other hand they also get a platform to present themselves in front of over eight million viewers. The local suppliers in eastern Australia get additional business due to the presence of the production team of around 300 persons – companies breeding cockroaches and water spiders might benefit the most though. In addition, the production of the jungle camp also generates jobs for the local population and helps increase the turnover of tourism. Finally, the owners of RTL, i.e. the shareholders of the RTL group, are certainly pleased with the success of the jungle camp, which generates advertising revenue related to the target audience. In this regard, the jungle camp represents a successful broadcasting format that increases benefits for all its primary stakeholders.</div>
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However, it also raises the question of whether corporate stakeholder management, which is exclusively oriented towards creating mutual benefits, also constitutes “good” stakeholder management. Are we willing to accept the nasty jungle tests, the selling of human dignity for a participation bonus, the exploitation of financial difficulties and the stereotypical roles constructed with smart cutting techniques for participants in the jungle in exchange for the economic success of a broadcasting format? This is something everyone has to decide for him or herself. In my view, the jungle camp is a good example for how economic considerations can be in conflict with social norms and values. Thereby, a company may certainly generate benefits for its stakeholders without considering what constitutes “good” stakeholder management. Obvious examples for this can also be found in the raw materials industry.</div>
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One approach for a company to address this tension between economic and ethical aspects is a stakeholder survey. Here, the stakeholders articulate what in fact matters to them in their relationship with a company. By including its stakeholders, a company can legitimize its business activities on the one hand and, on the other hand, it also hands over some responsibility to its stakeholders to reflect their own ethical standards. In this view, the jungle camp would be an expression of the values and norms of the stakeholders of RTL and, thus, of society. Did you know that in 2013, the jungle camp has been nominated for the most important German TV award, the Grimme Award?</div>
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People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-12050210085720810382014-01-23T17:19:00.001+01:002014-01-23T17:24:41.650+01:00The initiative against mass immigration: Is it really just about immigration policy and economic success models? <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijw9S0lYcKcJVwBkxHQrKMBMVsP0BTqLwrLyMTVmfv9pNWAJOLmf__ZFQKSeEGXHnolssTN759_teUtck7yFLWO10hKYa0SpzbPLh8PbtKovtMt2cBZob7T2rORqCmsjl8GsCfKBjmKpY/s1600/Claude_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijw9S0lYcKcJVwBkxHQrKMBMVsP0BTqLwrLyMTVmfv9pNWAJOLmf__ZFQKSeEGXHnolssTN759_teUtck7yFLWO10hKYa0SpzbPLh8PbtKovtMt2cBZob7T2rORqCmsjl8GsCfKBjmKpY/s1600/Claude_portrait_original.jpg" height="200" width="138" /></a></div>
A lot is at stake with the upcoming initiative against mass immigration. With the termination of the agreement on the free movement of persons with the EU (one of four fundamental freedoms), all the bilateral agreements between Switzerland and the EU might begin to totter. Economic circles are fighting the initiative at the forefront by stressing the importance of the free movement of persons in order to meet the demand for qualified labor. In this view, a change of course could only happen at the expense of the economic success model Switzerland. <br />
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Economic circles tend to argue similarly with all initiatives that could have negative effects on them. In their perspective, this is understandable in principle. <br />
<a name='more'></a>However, their sometimes-exaggerated scenarios of economic gloominess in case of an adoption of the initiative presumably rather aim at scaring non-business circles, so that they vote in line with the highly particularistic interests of the economy. Economic arguments clearly predominate the opposition to this initiative. <br />
For the opponents it is primarily about economic liberalism, but for the proponents the core of the initiative is about introducing a more restrictive immigration policy. Both arguments ignore that (high or low-skilled) migration to successful metropolitan areas is a fundamental reality of today’s world, which cannot be prevented by politics. Migration to metropolitan areas is a global phenomenon: Zurich, Hamburg, Paris, Mumbai or Moscow – all successful metropolitan areas attract people form the respective home country as well as from abroad. In addition to clear positive effects there are also negative ones: Not only the settlement structure changes but the entire infrastructural and social geography of a region (e.g. density problems such as housing shortages; rapidly changing social structure). <br />
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The mass immigration initiative does not solve these problems. Nevertheless, conservative isolationist forces have gained a lot of votes in many European countries lately. However, their solution – the return of the autarkic and intact national state – must fail under the given circumstances. On the other hand, the demands for boundless economic opportunities do not tackle these problems either. On the contrary, they promote the trend of migrating to metropolitan regions (e.g. the keyword “competition for talents”) without acknowledging or reflecting the problems. <br />
One reason that the initiative against mass immigration has such a good prognosis for success might be found exactly in this set of problems arising around mass migration in metropolitan areas. This is where the shoe pinches for many citizens. Therefore the core of the discussion should not revolve around whether Switzerland wants total (economic) isolation or total (economic) opening. It should be about how this reality of influx in successful metropolitan areas, which has started long before the agreement on the free movement of persons, can be more positive or at least bearable for all stakeholders. This is a matter that should be addressed by politicians. There is still a long way to go, especially in Europe, which remains only partially intertwined, despite the EU. A truly problem-oriented approach would also hand over a big part of the responsibility to the economy, which would necessarily have to stop following particularistic interests detached from the concerns of the “general public”. But chances for this are low, since a dismissal of the initiative would take off the pressure on the economy almost entirely. In contrast, an adoption of the initiative would lead us into non-problem oriented isolation. <br />
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To conclude: When it comes to voting yes or no to this initiative, I agree with the Federal Councillor Simonetta Sommaruga who stated in the political broadcast “Arena” that a ‘yes’ out of pure protest would be misplaced in this vote. <br />
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Claude MeierPeople for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0tag:blogger.com,1999:blog-2954948336224738606.post-10017665416412252652014-01-06T12:00:00.000+01:002014-01-06T15:20:33.131+01:00Dismantling of a Swiss Holy Cow<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUzoxXPBS2MIdIJEqq-mSP2flWo-uYaGrZqXUroyxfLqR0FBwosYHtQG-68X06g8oAhLDOAUx10ENXgOLPGakMeY5TlJHoB7dKEdU95NlTAeCnyJ-9lKbPmhfo0DY8ShwhM6iKheFsUDY/s1600/Manuel_portrait_original.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUzoxXPBS2MIdIJEqq-mSP2flWo-uYaGrZqXUroyxfLqR0FBwosYHtQG-68X06g8oAhLDOAUx10ENXgOLPGakMeY5TlJHoB7dKEdU95NlTAeCnyJ-9lKbPmhfo0DY8ShwhM6iKheFsUDY/s200/Manuel_portrait_original.jpg" height="200" width="138" /></a><br />
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<span lang="EN-US" style="font-size: 13pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Calibri;">In my last blog article, I took a look at the
deterioration of the brand “Swiss” and noted that this was in part due to the
negative publicity that Switzerland has been getting abroad concerning its
banking secrecy and opportunistic taxation schemes. While Swiss banking secrecy
may now soon be something for the history books, it is still interesting to
note that the Swiss banks and taxation regimes originally had their roots in
virtues, and not vices. Whereas most of Europe featured unstable governments
and legal frameworks, engaged in endless wars and built their “social contract”
on the premise of mistrusting its citizens, Switzerland provided stability in
both governance and law, was largely peaceful and had a basic “social contract”
that espoused trust before mistrust (this being in part a consequence of its
direct democratic tradition and a source of the extensive privacy rights as
pertaining to financial matters). This resulted in the flourishing of the Swiss
banking sector as it attracted wave after wave of foreign depositors, fleeing
instability, insecurity, and states more interested in the gleaning of the
wealth of its citizens than in the provision of needed services. While
Switzerland – again, beginning with a virtue - for centuries already practiced
a strongly decentralized (federalized) “good governance” regime which paired up
freedom with accountability by allowing every commune and canton to freely levy
their own taxes and invest these resources as best they saw fit, thus also
creating a healthy competition to keep a sound budget and make wise
investments, much of Europe experienced just the opposite: top-down directives
with little to no citizen participation and consequently freedom and
accountability. <o:p></o:p></span></span></div>
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<span lang="EN-US" style="font-size: 13pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Calibri;">With time, however, bit by tiny bit, these virtues
became corrupted. Banking secrecy became no longer so much a reflection of
privacy and trust between citizens and their state, but rather was a convenient
pretense for the easy garnering of money from abroad. On the haughty altar of
“discretion”, Swiss bankers would willingly bunker the millions and billions of
dictators, tyrants or simply the clever evaders of taxation in their home
countries. Much the same happened with the taxation regimes in Switzerland. Cantons
and communes realized that much money could be made by adroitly positioning
themselves in a zero-sum race to the bottom and attracting wealthy individuals
– for whom special taxation schemes would be negotiated – and global companies
in search for a more profitable tax haven from which to conduct their business.
This led to the proliferation of countless “mail-box” companies which had
little or no real connection to Switzerland.<o:p></o:p></span></span></div>
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<span lang="EN-US" style="font-size: 13pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Since the recent financial crisis and its accompanying
scandals, however, the EU and the USA have increasingly started to put pressure
on Switzerland (as also on other similar finance and tax havens, although often
conveniently omitting some of their own) to change its “bad habits”. While a
minority of Swiss citizens has always openly criticized its banking and
taxation practices, and probably a healthy majority in private moments admitted
to the status quo being ethically questionable, the matter was nevertheless
nothing less than a “holy cow” amongst the Swiss economic and political
establishment. So strongly was this self-righteousness engrained, that when a
professor at the renowned Swiss Business School of St. Gallen was openly
critical of this situation in an interview with a German magazine a couple of
years ago, some voices (granted isolated, but nevertheless remarkable for a
country with a rightfully proud democratic tradition with guaranteed
free-speech) branded him as a national traitor and demanded his immediate
demission!<o:p></o:p></span></span></div>
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<span lang="EN-US" style="font-size: 13pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Calibri;">It is a well known and studied phenomenon that countries
that are blessed with ample natural resources such as oil, are often cursed
with having their economies develop asymmetrically with an over-dependence on
just these natural resources. As with abundant natural resources, the
incentives that the Swiss legal system and historic precedents provided also
resulted in relatively “easy money” to be made in the finance sector. Some of
the nefarious side-effects of this in turn resulted in what may well be deemed
an internal resource and brain-drain, as investors invested in the areas of
greatest returns for the least risk (and for a long time, the Swiss private
banking sector was a very low-risk investment, as success was not so much based
on any unique, rapidly changing know-how but a legal framework which virtually
ensured its competitive advantage) and many of the brightest labor market
entrants turned their back to work in other sectors such as for example the
risky high-tech area or lower-margin machine industry, in favor of the far more
stable and lucrative financial industry.<o:p></o:p></span></span></div>
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<span lang="EN-US" style="font-size: 13pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Calibri;">While Switzerland still has a highly sophisticated,
diversified and competitive economy, always jousting for the top spot in global
assessments, there is a real risk and an increasingly high price that
Switzerland has to pay for its extensive financial center. Apart from public
bailouts (such as the UBS in 2008) and the internal resource and brain drain,
the very fact that salaries paid in the financial sector are so high drives up
concomitant costs such real-estate, making it increasingly difficult for, say,
high-tech companies to get started in the country. Starting an export oriented
business from scratch in Switzerland is simply prohibitively expensive,
especially if the returns, as in many high-tech sectors, take years to
materialize. Add to that the finance sector’s negative impact on the overall
reputation on Switzerland, and you can well comprehend that the Swiss financial
industry is increasingly unpopular also in Switzerland.<o:p></o:p></span></span></div>
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<span lang="EN-US" style="font-size: 13pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Calibri;">The tragedy of this entire matter is however that the
age old Swiss social contract of trust between the state and its citizens may
now have to be sacrificed in view of the financial center and taxation policies
of decades past. The United States, long also a bastion of individual freedom
and with a delicate awareness of privacy rights, has already sacrificed much of
this on the altar of national security. The question thus remains one of just
how much freedom are we willing to sacrifice for security, and how much privacy
for fairness.<o:p></o:p></span></span></div>
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<span lang="EN-US" style="font-size: 13pt; line-height: 115%; mso-ansi-language: EN-US;"><span style="font-family: Calibri;">Manuel Dawson<o:p></o:p></span></span></div>
People for Peoplehttp://www.blogger.com/profile/01909197779731164492noreply@blogger.com0