corporate social responsibility

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The Corporation: The Pathological Pursuit of Profit and Power by Joel Bakan

Berlin Wall, Cass Sunstein, corporate governance, corporate personhood, corporate social responsibility, creative destruction, energy security, Exxon Valdez, IBM and the Holocaust, joint-stock company, laissez-faire capitalism, market fundamentalism, Naomi Klein, new economy, race to the bottom, Ralph Nader, Ronald Reagan, shareholder value, South Sea Bubble, The Wealth of Nations by Adam Smith, Triangle Shirtwaist Factory, urban sprawl

"We believe," said the report, "that corporate leadership should set the example for community service."58 Unfortunately, this paragon of corporate social responsibility, Enron, was unable to continue its good works after it collapsed under the weight of its executives' greed, hubris, and criminality. Enron's story shows just how wide a gap can exist between a company's cleverly crafted do-gooder image and its actual operations and suggests, at a minimum, that skepticism about corporate social responsibility is well warranted. There is, however, a larger lesson to be drawn from Enron's demise than the importance of being skeptical about corporate social responsibility. Though the company is now notorious for its arrogance and ethically challenged executives, the underlying reasons for its collapse can be traced to characteristics common to all corporations : obsession with profits and share prices, greed, lack of concern for others, and a penchant for breaking legal rules.

"Goodyear has all about her the human quality," he said, "and it has been to this human quality fully as much as to her business methods, that Goodyear owes her meteoric rise in the ranks of American Industry."" Corporate social responsibility blossomed again during the 1930s as corporations suffered from adverse public opinion. Many people believed at the time that corporate greed and mismanagement had caused the Great Depression. They shared Justice Louis Brandeis's view, stated in a 1933 Supreme Court judgment, that corporations were "Frankenstein monsters" capable of doing evil." In response, business leaders embraced corporate social responsibility. It was the best strategy, they believed, to restore people's faith in corporations and reverse their growing fascination with big government. Gerard Swope, then president of General Electric, voiced a popular sentiment among big-business leaders when, in 1934, he said that "organized industry should take the lead, recognizing its responsibility to its employees, to the public, and to its shareholders rather than that democratic society should act through its government" (italics added)."

Their concerns were different from those of post-Enron worriers, for whom shareholders' vulnerability to corrupt managers was paramount. But the two groups had something in common: they both believed the corporation had become a dangerous mix of power and unaccountability. Corporate social responsibility is offered today as an answer to such concerns. Now more than just a marketing strategy, though it is certainly that, it presents corporations as responsible and accountable to society and thus purports to lend legitimacy to their new role as society's rulers." Page 28 ~> w Business as Usual Business leaders today say their companies care about more than profit and loss, that they feel responsible to society as a whole, not just to their shareholders. Corporate social responsibility is their new creed, a self-conscious corrective to earlier greed-inspired visions of the corporation. Despite this shift, the corporation itself has not changed.


Small Change: Why Business Won't Save the World by Michael Edwards

Bernie Madoff, clean water, corporate governance, corporate social responsibility, different worldview, high net worth, invisible hand, knowledge economy, light touch regulation, Mahatma Gandhi, Mark Shuttleworth, market bubble, microcredit, Nelson Mandela, New Journalism, Ponzi scheme, profit motive, Robert Shiller, Robert Shiller, shareholder value, Silicon Valley, Silicon Valley startup, Social Responsibility of Business Is to Increase Its Profits, The Fortune at the Bottom of the Pyramid, The Spirit Level, The Wealth of Nations by Adam Smith, transaction costs

From this quick tour of terms and definitions, it’s obvious that each school of thought approaches the issue of social impact in a slightly different way. Pure commercial activity and corporate social responsibility of the window-dressing variety have little interest in deep social transformation. Pure civil society activity and most community organizers have little interest in becoming corporations. But in the middle, there are lots of ways of leveraging some social impact by working with the market in some shape or form. In terms of their potential impact on social transformation, total corporate social responsibility, commons-based production, and radical interpretations of what it means to be a social entrepreneur are the most interesting approaches. They deliberately set out to use the power of the market to get goods and 34 small change services to large numbers of people, while simultaneously trying to alter patterns of ownership, consumption, production, and accountability — they don’t simply enable more people to participate in the systems we already have.

And they stimulate technological innovation, ideally in areas that benefit the public good. The ways in which businesses approach these tasks have enormous implications for society at large, but in the past, the social and environmental impacts of core business decisions were seen as byproducts — not conscious goals — of companies, which aimed to make a decent profit and build shareholder value. During the 1990s, this assumption began to be questioned by the pioneers of corporate social responsibility, 16 the good, the bad, and the ugly 17 and their thinking laid the groundwork for the appearance of philanthrocapitalism ten years later. By making their social and environmental objectives more explicit, so the theory goes, businesses can increase their positive impact and scale it up through market forces, far beyond the usual nonprofit project or government-funded program. And, arguing from the other side of the equation, by operating in the market and adopting business thinking, nonprofits can raise the revenue they need to expand and sustain their work and make it more effective.

And, arguing from the other side of the equation, by operating in the market and adopting business thinking, nonprofits can raise the revenue they need to expand and sustain their work and make it more effective. These ideas have given rise to a whole new vocabulary that tries to capture what is different about these interactions, including terms like social entrepreneur, social enterprise, blended value, venture philanthropy, corporate social responsibility, the triple bottom line, social investment, and social innovation. There are no universally accepted definitions of any of these new terms. In fact, Pace University’s Jeff Trexler, one of the most interesting commentators in this debate, thinks social entrepreneurship is “as open to interpretation as a Rorschach blot,” taking whatever shape and meaning are in the eye of the beholder.1 However, on one point the philanthrocapitalists are agreed: Business and nonprofit are crude labels that no longer describe the huge variety of activities that organizations undertake in circumstances where social and economic activities are increasingly intertwined, so it is not possible to criticize them en bloc for doing one thing or another.


pages: 154 words: 47,880

The System: Who Rigged It, How We Fix It by Robert B. Reich

affirmative action, Affordable Care Act / Obamacare, Bernie Madoff, Bernie Sanders, business cycle, clean water, collective bargaining, corporate governance, corporate raider, corporate social responsibility, Credit Default Swap, crony capitalism, cryptocurrency, Donald Trump, ending welfare as we know it, financial deregulation, Gordon Gekko, immigration reform, income inequality, Jeff Bezos, job automation, London Whale, Long Term Capital Management, market fundamentalism, mass incarceration, mortgage debt, Occupy movement, Ponzi scheme, race to the bottom, Robert Bork, Ronald Reagan, shareholder value, too big to fail, trickle-down economics, union organizing, women in the workforce, working poor, zero-sum game

Great Britain has a minister for it. Most of this is in earnest, much is sincere, and some of it has had a positive impact. But all of it has occurred outside of the democratic process. None of it has reallocated power in the system or changed the rules of the game. To view corporate social responsibility as a new form of capitalism diverts attention from the far more difficult and important task of strengthening democracy and thwarting oligarchy. In fact, the upsurge of interest in corporate social responsibility is directly related to decreasing confidence in democracy, precisely because big money has overwhelmed it. “Government is failing to provide leadership on environmental concerns, and industry has grown more willing to address them,” says Jonathan Lash, president of the World Resources Institute.

Forget what you may have learned about the choice between the “free market” and government. A market cannot exist without a government to organize and enforce it. The important question is whom the market has been organized to serve. Forget the standard economic goals of higher growth and greater efficiency. The issue is who benefits from more growth and efficiency. Don’t be dazzled by “corporate social responsibility.” Most of it is public relations. Corporations won’t voluntarily sacrifice shareholder returns unless laws require them to do so. Even then, be skeptical of laws unless they’re enforced and backed by big penalties. Large corporations and the super-rich ignore laws when the penalties for violating them are small relative to the gains for breaking them. Fines are then simply a very manageable cost of doing business.

The word “oligarchy” comes from the Greek word oligarkhes, meaning “few to rule or command.” It refers to a government of and by a few exceedingly rich people or families who control the major institutions of society and therefore have power over other people’s lives. Oligarchs may try to hide their power behind those institutions, or justify their power with platitudes about the public good, or excuse their power through philanthropy and “corporate social responsibility.” But no one should be fooled. Oligarchs wield power for their own benefit. Even a system that calls itself a democracy can become an oligarchy if power becomes concentrated in the hands of a corporate and financial elite. Their power and wealth increase over time as they make laws that favor themselves, manipulate financial markets to their advantage, and create or exploit economic monopolies that put even more wealth into their own pockets.


pages: 460 words: 131,579

Masters of Management: How the Business Gurus and Their Ideas Have Changed the World—for Better and for Worse by Adrian Wooldridge

affirmative action, barriers to entry, Black Swan, blood diamonds, borderless world, business climate, business cycle, business intelligence, business process, carbon footprint, Cass Sunstein, Clayton Christensen, cloud computing, collaborative consumption, collapse of Lehman Brothers, collateralized debt obligation, commoditize, corporate governance, corporate social responsibility, creative destruction, credit crunch, crowdsourcing, David Brooks, David Ricardo: comparative advantage, disintermediation, disruptive innovation, don't be evil, Donald Trump, Edward Glaeser, Exxon Valdez, financial deregulation, Frederick Winslow Taylor, future of work, George Gilder, global supply chain, industrial cluster, intangible asset, job satisfaction, job-hopping, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kickstarter, knowledge economy, knowledge worker, lake wobegon effect, Long Term Capital Management, low skilled workers, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, Naomi Klein, Netflix Prize, Network effects, new economy, Nick Leeson, Norman Macrae, patent troll, Ponzi scheme, popular capitalism, post-industrial society, profit motive, purchasing power parity, Ralph Nader, recommendation engine, Richard Florida, Richard Thaler, risk tolerance, Ronald Reagan, science of happiness, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Steven Levy, supply-chain management, technoutopianism, The Wealth of Nations by Adam Smith, Thomas Davenport, Tony Hsieh, too big to fail, wealth creators, women in the workforce, young professional, Zipcar

Adrian has a merry time skewering the industry that has grown up to sell “corporate social responsibility” in the same way that we once looked at reengineering. Even the best gurus have a weakness for overselling themselves. The worst are often little better than hucksters. Management theory remains a porous industry in which serious thinkers rub shoulder to shoulder with products of the university of life. Why has this continued? I still think the answer is the same one we put forward fifteen years ago. Business people are desperate for competitive insight (and so, increasingly, are bureaucrats). They need answers, help, anything. And they also know two things: that some of this stuff works, and that ignoring it completely can be fatal. Much as we might want to mock the fad for corporate social responsibility and recoil at a lot of the worthy tripe produced under that banner, companies that turned their back on issues like the environment and the employment habits of their suppliers have often been trounced by events.

With the age of austerity upon us, consumers are watching their pennies and companies are scything back on the fluff. Be Responsible, My Son Corporate social responsibility has a short history but a long prehistory. Corporate philanthropists such as Cadbury and Rowntree in Britain and Hershey and Kaiser in the United States built model communities to house their workers (at one point the U.S. had more than 2,500 company towns, housing 3 percent of the population).4 In Germany and Japan, industrialists embraced a stakeholder model of capitalism in which workers were involved in decision-making. But by the 1970s company towns were withering across the Anglo-Saxon world, and shareholder capitalism had become bureaucratized. For many business people, corporate social responsibility meant nothing more than throwing some money at the local opera (and getting a few seats in return for the senior managers).

Brown), 144 Competitive Advantage (Porter), 256 The Competitive Advantage of Nations (Porter), 278, 317 Competitive Strategy (Porter), 256 Comverse, 180 Conchie, Barry, 64 Confederation of British Industry (CBI), 293 Connolly, J. W., 41 Core competencies, 158–160, 259–260 “Corporate anorexia,” xiii, 31 Corporate Executive Board, 359 Corporate Leadership Council, 349, 350 Corporate social responsibility (CSR), 23, 31–48 Corporations corporate-bashing films, 35 culture of, 161–164 multicultural, 165–166 Corus, 286 CouchSurfing, 156 Covey, Stephen, 111–112, 391–393, 410 Craigslist, 184 Crazy Times (Peters), 102 Creating Minds (Gardner), 132 Creative Class Struggle, 131 Creative Technology, 182 Cristal, 272 CRM. See Customer relationship management Crook, Clive, 33 Crowdsourcing, 240, 242 CSC index, 29 CSR. See Corporate social responsibility Culture corporate, 161–164 entrepreneurial, 176 Customer relationship management (CRM), 17 CVS, 264 Dachangjiang, 213 Dan Brown and Co., 5 Dangdang, 184 Dangerous Company: The Consulting Powerhouses and the Businesses They Save and Ruin (O’Shea and Madigan), xiii Das, Gurcharan, 182–183 Das Kapital (Marx), 91 Davenport, Thomas, 112 Davies, Howard, Sir, 316 “Davos men,” 386 Dean Light and Co., 1–2 De Borchgrave, Isabelle, 376 De Jager, Jan Kees, 53 Del Blanco, Roberto Alvarez, 395 Dell, Michael, 195, 197 Dell Computers, 224 Deloitte, 54, 64, 323, 354, 380 De Mestral, George, 247 Deming, W.


pages: 325 words: 90,659

Narconomics: How to Run a Drug Cartel by Tom Wainwright

Airbnb, barriers to entry, bitcoin, business process, call centre, collateralized debt obligation, corporate social responsibility, Credit Default Swap, credit default swaps / collateralized debt obligations, failed state, financial innovation, illegal immigration, Mark Zuckerberg, microcredit, price mechanism, RAND corporation, Ronald Reagan, Sam Peltzman, Skype

—“HOW TO LIE WITH STATISTICS,” DARRELL HUFF Contents INTRODUCTION Cartel Incorporated CHAPTER 1 Cocaine’s Supply Chain: The Cockroach Effect and the 30,000 Percent Markup CHAPTER 2 Competition vs. Collusion: Why Merger Is Sometimes Better Than Murder CHAPTER 3 The People Problems of a Drug Cartel: When James Bond Meets Mr. Bean CHAPTER 4 PR and the Mad Men of Sinaloa: Why Cartels Care About Corporate Social Responsibility CHAPTER 5 Offshoring: The Perks of Doing Business on the Mosquito Coast CHAPTER 6 The Promise and Perils of Franchising: How the Mob Has Borrowed from McDonald’s CHAPTER 7 Innovating Ahead of the Law: Research and Development in the “Legal Highs” Industry CHAPTER 8 Ordering a Line Online: How Internet Shopping Has Improved Drug Dealers’ Customer Service CHAPTER 9 Diversifying into New Markets: From Drug Smuggling to People Smuggling CHAPTER 10 Coming Full Circle: How Legalization Threatens the Drug Lords CONCLUSION Why Economists Make the Best Police Officers Acknowledgments Notes Index Photographs appear following p. 124.

Time and again, the most ruthless outlaws described to me the same mundane problems that blight the lives of other entrepreneurs: managing personnel, navigating government regulations, finding reliable suppliers, and dealing with competitors. Their clients have the same demands as other consumers, too. Like customers of any other industry, they seek out reviews of new products, increasingly prefer to shop online, and even demand a certain level of “corporate social responsibility” from their suppliers. When I found my way into the hidden “Dark Web” of the Internet, where drugs and weapons are anonymously bought with Bitcoins, I dealt with a trader of crystal-meth pipes who was as attentive as any Amazon representative. (Actually, I take it back. He was far more helpful.) The more I looked at the worldwide drug industry, the more I wondered what would happen if I covered it as if it were a business like any other.

In the past, Dominican gangsters have had few qualms about bumping off uncooperative associates or sending them to war against other gangs, as they have always had new employees on tap. If prisons in the Dominican Republic—and other places—can tighten that tap, gangs will have to behave more like Pete the patient Dutch dealer, anxious to hang on to what contacts they have, and more likely to resolve their problems peacefully. Chapter 4 PR AND THE MAD MEN OF SINALOA Why Cartels Care About Corporate Social Responsibility There is a carnival atmosphere in Culiacán, the capital city of Sinaloa, a drug-war-plagued Mexican state. Men, women, and children fill the streets, marching and chanting as trumpets and trombones play in the background. It is February 2014, and Mexico has just seen the news that many thought would never happen: Joaquín Guzmán, the leader of the Sinaloa cartel and one of the most wanted men in the world, is finally behind bars.


pages: 401 words: 115,959

Philanthrocapitalism by Matthew Bishop, Michael Green, Bill Clinton

Albert Einstein, anti-communist, barriers to entry, battle of ideas, Bernie Madoff, Bob Geldof, Bonfire of the Vanities, business process, business process outsourcing, Charles Lindbergh, clean water, cleantech, corporate governance, corporate social responsibility, Dava Sobel, David Ricardo: comparative advantage, don't be evil, family office, financial innovation, full employment, global pandemic, global village, God and Mammon, Hernando de Soto, high net worth, Intergovernmental Panel on Climate Change (IPCC), invisible hand, James Dyson, John Harrison: Longitude, joint-stock company, knowledge economy, knowledge worker, Live Aid, lone genius, Marc Andreessen, market bubble, mass affluent, microcredit, Mikhail Gorbachev, Nelson Mandela, new economy, offshore financial centre, old-boy network, peer-to-peer lending, performance metric, Peter Singer: altruism, plutocrats, Plutocrats, profit maximization, profit motive, Richard Feynman, risk tolerance, risk-adjusted returns, Ronald Coase, Ronald Reagan, shareholder value, Silicon Valley, Slavoj Žižek, South Sea Bubble, sovereign wealth fund, stem cell, Steve Jobs, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade liberalization, transaction costs, trickle-down economics, wealth creators, winner-take-all economy, working poor, World Values Survey, X Prize

Announced at the World Economic Forum in 1999, and officially launched in 2000, it has since been adopted by over four thousand companies in 120 countries (see “Corporate Social Responsibility Goes Global” box). Critics object to the U.N. providing what they call “bluewash” to big business, but most observers view the compact’s popularity as evidence that firms are taking these issues more seriously. However, the U.N. is considering introducing clearer guidelines on what behavior is acceptable by firms, especially in countries with questionable records on human rights. In 2007, a split opened up over these guidelines between NGOs that wanted to continue a constructive engagement with big business and those that preferred to “name and shame.” CORPORATE SOCIAL RESPONSIBILITY GOES GLOBAL It is tempting to see the global boom in corporate social responsibility (CSR) as yet another sign of multinationals exporting business practices from the rich world to the poor one.

However, the need to make a profit will constrain the ways in which they can do so in ways that their nonprofit-driven partners in any cause need to understand, or risk disappointment. To antibusiness activists, corporate philanthropy and corporate social responsibility are superficial at best, an attempt to disguise the ugly underlying reality of big business today. In his 2007 book, Supercapitalism, Robert B. Reich, a professor at the University of California, Berkeley (and labor secretary in Bill Clinton’s cabinet), writes that corporate social responsibility is “as meaningful as cotton candy. The more you try to bite into it the faster it dissolves.” It is not that company bosses are evil, or even less ethical than everyone else, says Reich, but in today’s supercompetitive globalized capitalism few firms can afford to be socially responsible, at least not to any significant extent: “Corporations were never set up to be charitable institutions and are less able to operate in that sphere now,” he says, pointing out that the sums spent by business on “doing good” are dwarfed by what firms spend lobbying politicians to promote their narrow interests, often against the public interest.

At the same time as individual philanthropists are embracing the profit motive, a growing number of big for-profit businesses are catching the philanthrocapitalism bug and getting into giving—or at least trying to do good. Gates sees this as potentially the start of a “system innovation” in how business operates, which he calls “creative capitalism.” This is very different from traditional corporate philanthropy, which has often been ineffective: giving away small sums of money typically to generate positive publicity rather than change the world. Nor is it like old-fashioned corporate social responsibility, which is too often nothing more than a cynical exercise in public relations. Indeed, the ineffectiveness of both these traditional approaches is one reason why many people view with skepticism the notion that large companies can be a force for good. To prove the skeptics wrong, some of the world’s biggest firms are now making advancing the good of society an integral part of their business strategy.


pages: 385 words: 133,839

The Coke Machine: The Dirty Truth Behind the World's Favorite Soft Drink by Michael Blanding

carbon footprint, clean water, collective bargaining, corporate social responsibility, Exxon Valdez, Gordon Gekko, Internet Archive, laissez-faire capitalism, market design, MITM: man-in-the-middle, Naomi Klein, Nelson Mandela, New Journalism, Ponzi scheme, profit motive, Ralph Nader, rolodex, Ronald Reagan, shareholder value, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Upton Sinclair

See also Coca-Cola Colombia Corporate Accountability International (CAI), 124, 127, 131, 132 corporate campaigns, 214–17. See also Campaign to Stop Killer Coke corporations accountability under Alien Tort Claims Act, 208 backlash against, 26, 48, 75 downsizing and overseas relocation, 204 as form of business, 21–22 obligation to shareholders, 134 power of, 22–23 See also CSR (corporate social responsibility) Correa, Javier, 179–80, 247, 272, 273–74, 276 Creative Artists Agency, 71, 96 CSE (Centre for Science and Environment), 241–42, 250 CSPI (Center for Science in the Public Interest), 84–85, 102, 109, 140, 141 CSR (corporate social responsibility) Coca-Cola Foundation, 134–35, 168–69, 259, 266, 272 code of conduct, 205–6 concept of, 133–34 environmental initiatives, 58, 132–33, 136, 137–39 exercise program, 99–100 “halo effect,” 58, 134, 151 philanthropic causes, 28, 134–35, 150–51, 287 plastic bottle recycling, 137–39 rainwater harvest and farmer support, 252–54, 256–59, 278 school construction, 168–69 social branding, 135–37 3 72 INDEX Daft, Douglas, 88, 103, 106, 223, 224–25 D’Arcy, William, 41, 46 D’Arcy Agency, 41, 45, 46, 94 Dasani bottled water advertising and marketing, 120–21, 125 backlash against, 119, 130–31, 139 brand image, 119 displacement of tap water, 129–30 environmental impact of plastic bottles, 128–29 market stagnation, 142 municipal water source, 120, 122, 125, 132 overseas marketing, 121–23 price of, 126–27, 130 production process, 119, 122–23 purity claims, 122, 125 safety and quality standards, 125–26 sales and profits, 119–20, 121, 125, 132 secret formula, 120 Tap Water Challenge taste test, 124, 127 Daynard, Dick, 108–9, 110, 112 DeRose, Dan, 92–93 diabetes, 80, 81, 158, 159–60 Diet Coke, 60–61, 82–83, 116 Dobbs, Sam, 24, 26–27, 29, 30, 31, 42 Domac, Jackie, 89–90, 97–98, 104, 108 Domínguez, Juan Ignacio, 159–60, 169 Dorfman, Lori, 101 Doss, Joe, 128–29 Downs, John, 96, 101–2, 105 Duggan, Keith, 35 Eisenhower, Dwight D., 50 The Energy and Resources Institute (TERI), 269, 277–78 Enrico, Roger, 59, 61 Enviga, 140 environmental issues Coca-Cola Company initiatives, 132–33, 136, 137–39 contaminated sludge as fertilizer, 230–31, 232–33, 240–41, 245–47 pesticide residue in beverage products, 241–43, 250 plastic bottles, 128–29 See also water Ever Veloza, José, 174, 186 Flores, Domingo, 193–96, 198, 272 Food and Drug Administration (FDA) approval of stevia, 142 on benzene in soft drinks, 83 bottled water labeling requirements, 132 on bromate in bottled water, 122–23 dismissal of aspartame concerns, 82 lax regulation of bottled water plants, 125 on perchlorate in spring water, 126 regulation of nutritional claims, 141 foreign markets Brazil, 148, 155 Coca-Cola Export Corporation, 147–48, 156, 164 in developing world, 142 forceful entry into, 148, 149 France, 105, 121, 149 franchise system, 147–48 growth and sales in, 66, 116 Guatemala, 148, 151–54, 283–85 political flexibility, 51–52, 57, 150–51, 154–55, 185 postwar expansion, 49–51, 147–48 soda consumption and profits, 150, 154, 155, 235 United Kingdom, 105, 121–23 See also Coca-Cola Colombia; Coca-Cola FEMSA; Coca-Cola India Fox, Vicente, 164–65, 166 France, 105, 121, 149 Gallegos, Carlos, 146–47 Galvis, Juan Carlos, 187–88, 189–90, 191, 199, 272 García, Laura Milena, 196, 198–99 García, Luis Eduardo, 194–97, 221, 272 Gardner, Stephen, 109, 141–42 Gay, Faith, 273, 281 Getman, Ross, 93 Gil, Isidro, 2–3, 176–77, 182, 187, 212 Giraldo, Luis Enrique, 174–75 Giraldo, Oscar, 175, 176, 180–81 Goizueta, Roberto, 60, 64–66, 69, 72, 135, 154 Gómez Carpio, María de la Asunción, 163 González, Álvaro, 192–97, 272 Great Depression, 47, 48 Guatemala, 148, 151–54, 283–85 Harry Potter movie sponsorship, 96 Hasbún, Raúl, 186–87 Hays, Constance, 72 health issues aspartame consumption, 82 benzene in diet sodas, 83 INDEX diabetes, 80, 81, 158, 159–60 nutritional claims, 140–42 pesticide residue in beverages, 241–43, 250 purity of bottled water, 122, 125–26 water as soda alternative, 121, 125 See also obesity Hennrich, Mary Lou, 113 high-fructose corn syrup (HFCS), 66–67, 80, 161 Hindustan Coca-Cola Beverages Pvt.

On cue, employees circulate through the crowd, handing out pins in the shape of a green Coke bottle reading “Corporate Responsibility & Sustainability.” “CRS is all about making a difference wherever our business touches the world,” Cahillane continues. “We not only work here, we also live here, so we are doing everything we can to create sustainable communities.” The concept of socially responsible business practices isn’t new—though usually it’s called CSR, for “corporate social responsibility” (perhaps invert­ ing the letters is a way for Coke to claim ownership of the concept). In fact, Coke’s environmental initiatives follow a script that dates back to the 1950s. It’s then that corporations, having survived the Progressive Era and FDR’s New Deal, began to proactively affirm the power of businesses to benefit society. “Business managers can more effectively contribute to the solution of many of the complex social problems of our time,” wrote Frank Abrams, chairman of Standard Oil of New Jersey—which would become Exxon—in 1951.

It’s that prin­ ciple that has caused Joel Bakan to argue that corporations are essentially “pathological” entities—maximizing profit at the expense of any other good—whether workers’ rights, environmental improvements, or even its own customers’ pocketbooks. “The corporation’s legally defined mandate is to pursue, relentlessly and without exception, its own self-interest re­ gardless of the often harmful consequences it might cause to others,” he writes. That’s not to say that corporations can’t do good, however, so long as their efforts align with their profit motive. The second wave of corporate social responsibility began in the 1970s, when, faced with challenges from consumer advocates like Ralph Nader (and CSPI’s Michael Jacobson), corporations realized that investing in social causes could serve as a kind of insurance against criticism. It was in this era that Coke’s Paul Austin pursued his “halo effect” with hydroponic shrimp farms, desalinization plants, and soybean beverages that he argued could help earn goodwill in the developing world at the same time they helped make Coke’s vision of global harmony a reality.


pages: 872 words: 135,196

The Market for Force: The Consequences of Privatizing Security by Deborah D. Avant

barriers to entry, continuation of politics by other means, corporate social responsibility, failed state, hiring and firing, information asymmetry, interchangeable parts, Mikhail Gorbachev, Nelson Mandela, Peace of Westphalia, principal–agent problem, private military company, profit motive, RAND corporation, rent-seeking, rolodex, The Nature of the Firm, trade route, transaction costs

The idea that a corporation has responsibilities other than maximizing profits for its shareholders, according to Milton Friedman, undermines the fundamental tenets of a free economy.58 David Henderson made a similar argument in his liberal critique of corporate social responsibility, arguing that it is premised on intellectual misconceptions and is detrimental to the functioning of a market economy. “Welfare may be reduced, not only because businesses are compelled to operate less efficiently, but also because new forms of intervention arising out of the adoption of corporate social responsibility, including closer regulation, narrow the domain of competition and economic freedom.”59 More recently Marina Ottoway argues that oil companies are designed to find, extract, and distribute oil – not to guarantee democracy and respect for human rights – “taking on the role of imposing change on entire countries does not fit the nature of these organizations.”60 Despite some general support for the notion of corporate social responsibility, this debate has yet to be resolved.

It would be surprising if [Shell] is able to continue onshore resource extraction in the Niger Delta beyond 2008, whilst complying with Shell Business Principles.”52 If there has been improvement in the control of force in Nigeria, then, it has been modest and Shell’s efforts should be seen as only part of this result. Tough choices for TNCs The corporate social responsibility movement – with Shell in Nigeria as an epitome – has led to a debate about what role TNCs should play in governance. This movement was designed to improve the behavior of TNCs, asserting that TNCs must be part of the solution to avoid being part of the problem.53 The logic behind corporate social responsibility is that corporations have many resources at their disposal that can be harnessed for the social good. It is true that Shell in Nigeria has much freedom of action – more than will be the case in either of the following INGO cases, where the reliance on donors or other fundraising limits their range of choices.

Private security and the control of force 51 presenting conceptions of the self and the situation.43 This can be conservative, reminding actors of their proper role in the social system – professional militaries abide by the law of war44 – or it can aim at better behavior by presenting alternate conceptions of the self – for instance, the recent efforts to get businesses to abide by the principles of “corporate social responsibility.” Janowitz’s argument about military professionalism anticipates just this kind of logic. “He [the military officer] is subject to civilian control, not only because of rule or law and tradition, but also because of self-imposed professional standards and meaningful integration with civilian values.”45 Janowitz claimed that social, political, and technological changes so altered the use of force in international relations that it provided the basis for a radical alteration of the military profession – the constabulatory concept.


pages: 716 words: 192,143

The Enlightened Capitalists by James O'Toole

activist fund / activist shareholder / activist investor, anti-communist, Ayatollah Khomeini, Bernie Madoff, British Empire, business cycle, business process, California gold rush, carbon footprint, City Beautiful movement, collective bargaining, corporate governance, corporate social responsibility, Credit Default Swap, crowdsourcing, cryptocurrency, desegregation, Donald Trump, double entry bookkeeping, end world poverty, equal pay for equal work, Frederick Winslow Taylor, full employment, garden city movement, germ theory of disease, glass ceiling, God and Mammon, greed is good, hiring and firing, income inequality, indoor plumbing, inventory management, invisible hand, James Hargreaves, job satisfaction, joint-stock company, Kickstarter, knowledge worker, Lao Tzu, longitudinal study, Louis Pasteur, Lyft, means of production, Menlo Park, North Sea oil, passive investing, Ponzi scheme, profit maximization, profit motive, Ralph Waldo Emerson, rolodex, Ronald Reagan, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, Socratic dialogue, sovereign wealth fund, spinning jenny, Steve Jobs, Steve Wozniak, stocks for the long run, stocks for the long term, The Fortune at the Bottom of the Pyramid, The Wealth of Nations by Adam Smith, Tim Cook: Apple, traveling salesman, Uber and Lyft, uber lyft, union organizing, Vanguard fund, white flight, women in the workforce, young professional

Harvard Business School historian Geoffrey Jones concludes that integrity has been one of the hallmarks of Unilever’s culture throughout its history, and that “the concept of integrity was wider than honesty. ‘Making money’ per se was not seen as the exclusive goal within Unilever, either for individuals or for the company.”27 In the late 1940s and early ’50s, Unilever’s Dutch chairman Paul Rykens “was a prominent exponent of the philosophy” that the company had responsibilities to its various constituencies—employees, consumers, and local communities. In this he adopted the idea of corporate social responsibility that had recently been introduced by the American executive Robert Wood Johnson (see chapter 7). However, Unilever’s commitment to that philosophy was muted considerably during the 1980s and ’90s, when the company was led by executives whose focus was squarely on profit. Today, Unilever’s global workforce of over three hundred thousand is the world’s largest producer of ice cream, tea, and margarine.

Soon thereafter, owner Harman walked away from the experiment to accept a presidential appointment in the Carter administration; subsequently, he sold the Bolivar factory. In the eyes of the union and others who had been following the progress of the experiment, Harman appeared to have parlayed the positive press he received as “an enlightened business leader” into a subcabinet position. Again, it is impossible to know the motives of others, but Harman thereafter seemed to have lost interest in workplace reform and the corporate social responsibility he previously had championed. Thanks to the behavior of leaders like Harman, unions have interpreted managerial efforts to close the historically deep divide between labor and management as subtle forms of paternalism, the hidden purpose of which is to increase productivity and profitability and burnish the public image of managers and owners. That is why James Lincoln was never able to persuade them that his motivations were noble, and why they still oppose the company’s piecework system.

Echoing Robert Owen, he offered this reply: “Senator, I have been unable to find a sympathetic group of colleagues in organized business and I’ve tried very hard.”10 Johnson then established himself as the nation’s leading business advocate of improved labor-management relations, shocking the business establishment by criticizing the National Association of Manufacturers for its rigid antilabor philosophy. During the Depression, Johnson developed his philosophy of “corporate social responsibility.” Indeed, he may have coined that phrase; if not, he was the first major American industrialist to use it. At the height of the Great Depression, he penned an essay provocatively entitled “Try Reality,” addressed to his fellow capitalists: Out of the suffering of the past few years has been born a public knowledge and conviction that industry has the right to succeed where it performs a real economic service and is a true social asset.


pages: 335 words: 96,002

WEconomy: You Can Find Meaning, Make a Living, and Change the World by Craig Kielburger, Holly Branson, Marc Kielburger, Sir Richard Branson, Sheryl Sandberg

Airbnb, Albert Einstein, barriers to entry, blood diamonds, business intelligence, business process, carbon footprint, clean water, cleantech, Colonization of Mars, corporate social responsibility, Downton Abbey, Elon Musk, energy transition, family office, future of work, global village, inventory management, James Dyson, job satisfaction, Kickstarter, market design, meta analysis, meta-analysis, microcredit, Nelson Mandela, Occupy movement, pre–internet, shareholder value, sharing economy, Silicon Valley, Snapchat, Steve Jobs, telemarketer, The Fortune at the Bottom of the Pyramid, working poor, Y Combinator

He has established dozens of not-for-profit organizations that seek to tackle a range of social and environmental issues: The Elders (independent global leaders working for peace and human rights) Ocean Unite and the Ocean Elders (ocean conservation) the B Team (to rally business leaders to change business for good) and the Carbon War Room (to combat climate change) the Help Advisory Centre (counseling for troubled youth, started when he was a student himself) Richard anticipated viral marketing before the advent of social media. He dressed in drag, drove an army tank through New York's Times Square, and raced in hot air balloons to steal attention away from corporate goliaths. All to build a global brand without forking out for traditional advertising. His mantra was, and remains, “screw business as usual.” This also extends to corporate social responsibility (CSR). Rather than tack on a CSR plan with no real resources or support, Virgin uses its core business for social good, in some cases starting companies purely to solve a social problem, and not worrying about the profit potential until much later on. Richard's brilliant feat of launching and growing companies, with purpose at their heart, is transforming business and changing the world.

It changed and evolved, but ultimately became: Inspiring People to be Fit, Active, and Healthy. It defined our business model and strategy. I know that Virgin Sport will be successful financially, because putting purpose at its core has made it a valuable business proposition and investment opportunity. Don't you just hate it when your father-in-law is right?” What is Purpose? When you think just two decades ago, corporate social responsibility meant writing a check for the local little league team—a nice gesture, but hardly enough. Now the acronym CSR is banned at Virgin Management Ltd., because it hearkens back to the days of a single office or unlucky person tasked with reversing the negative effects of big business on the planet—sort of an apology for turning all of Earth's resources into products. For the longest time, business has used resources as if they were limitless, with no consideration for the environment or for what it might mean for future generations.

Simply put, she hoped to tie salaries and advancement at one of the largest accounting firms in the world to an employee's volunteer efforts outside the company. KPMG is certainly a progressive company—the international accounting firm is committed to environmental sustainability and was among the first professional service organizations in Canada to sponsor a volunteer day. But Tania's plan envisioned an even more engaged form of corporate social responsibility. Bill Thomas, the firm's incoming Canadian CEO at the time and now KPMG's Global Chairman, asked many tough questions, but Tania had accounted for that (because she's an accountant . . . get it?). She told him it would not require more money. An investment of strategy and leadership alone would produce more engaged employees with deeper connections to their communities. And Tania agreed to run the program.


pages: 320 words: 86,372

Mythology of Work: How Capitalism Persists Despite Itself by Peter Fleming

1960s counterculture, anti-work, call centre, clockwatching, commoditize, corporate social responsibility, creative destruction, David Graeber, Etonian, future of work, G4S, Goldman Sachs: Vampire Squid, illegal immigration, Kitchen Debate, late capitalism, Mark Zuckerberg, market bubble, market fundamentalism, means of production, neoliberal agenda, Parkinson's law, post-industrial society, post-work, profit maximization, profit motive, quantitative easing, Results Only Work Environment, shareholder value, social intelligence, The Chicago School, transaction costs, wealth creators, working poor

According to the Abbott government’s chief business adviser, Maurice Newman, the lies spread about global warming have resulted in Australia being totally unprepared for global cooling. So, within this bizarre context, the ‘Australians for Coal’ satire functions in a conventionally critical manner by revealing how ridiculous corporate lie telling can become in face of the facts. Indeed, a whole public relations industry has developed around the concept of ‘corporate social responsibility’ (CSR) to create a false image of multinational capitalism and its intimations towards a greener ‘conscious capitalism’, an ideal that is clearly at significant odds with everyday business activities. But the ‘Australians for Coal’ video sketch gets somewhat more interesting and complex midway through. The suited talking heads stop telling lies and begin to disclose some realistic truth-statements that reveal their authentic opinions: Tim Buckley: I am proud to announce the company’s new policy of ‘Fuck you.’

Roberts captures the tenor of these criticisms, especially those pertaining to claims about ‘ethics’ and the ‘triple bottom line’ in industries that can never realistically walk the talk, including those that make money from tobacco products, petroleum and the overpriced medicines in the Global South: My fear is that this talk of ethics is just that – talk; new forms of corporate self-presentation that have no reference to or influence on what is practiced in the name of the corporation, beyond those associated with good public relations. In this form, corporate social responsibility is cheap and easy; a sort of prosthesis, readily attached to the corporate body, that repairs its appearance but in no way changes its actual conduct. (Roberts, 2003: 88) And Roberts’s fears are shared by a growing number of analysts, including myself. The ideology of responsibility is wonderful in itself, but is so far removed from the structural principles of the multinational firm that it is difficult to view such calls without scepticism.

Outlining the limits of our relentless co-optation (or a threshold that corporate ideology cannot easily integrate into its own parlance without making its own existence untenable) is therefore central for the anti-work project today. Of course, when domination channels refusal through its own prism, it too changes to a certain degree, something we have learnt from studying colonialism. The key difference between this and cynical neoliberal truth telling, however, is that the latter’s apparent totality is only propagated rather than modified as a consequence. While, for example, ‘corporate social responsibility’ programs may imbue the firm with a facet of humanity, they add only a shallow genuflection to an otherwise unaltered universality that catapults us deeper into capitalist realism. How might we speak in power’s presence without simply withdrawing, as Adorno sadly recommends, and without supplying it with the attentional energies that it so craves from us? I Want This Too Much! Managerialism in the contemporary neoliberal enterprise necessitates clamorous public speech with denied or barred admission.


pages: 335 words: 104,850

Conscious Capitalism, With a New Preface by the Authors: Liberating the Heroic Spirit of Business by John Mackey, Rajendra Sisodia, Bill George

Berlin Wall, Buckminster Fuller, business process, carbon footprint, collective bargaining, corporate governance, corporate social responsibility, creative destruction, crony capitalism, cross-subsidies, en.wikipedia.org, Everything should be made as simple as possible, Fall of the Berlin Wall, fear of failure, Flynn Effect, income per capita, invisible hand, Jeff Bezos, job satisfaction, lone genius, Mahatma Gandhi, microcredit, Nelson Mandela, Occupy movement, profit maximization, Ralph Waldo Emerson, shareholder value, six sigma, social intelligence, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Steven Pinker, The Fortune at the Bottom of the Pyramid, The Wealth of Nations by Adam Smith, too big to fail, union organizing, wealth creators, women in the workforce, zero-sum game

The positive outcomes may not be exactly what we had in mind. Depending on the quality of our actions and external factors, they could be different but far better. Conscious Capitalism Is Not Corporate Social Responsibility A good business doesn’t need to do anything special to be socially responsible. When it creates value for its major stakeholders, it is acting in a socially responsible way. Collectively, ordinary business exchanges are the greatest creator of value in the entire world. This value creation is the most important aspect of business social responsibility. The whole idea of corporate social responsibility (CSR) is based on the fallacy that the underlying structure of business is either tainted or at best ethically neutral. This is simply not the case. As we showed in chapter 1, free-enterprise capitalism has helped improve our world in numerous ways.

What is needed is a holistic view that includes responsible behavior toward all stakeholders as a core element of the business philosophy and strategy. Rather than being bolted on with a CSR mind-set, an orientation toward citizenship and society needs to be built in to the core of the business.15 Table 2-1 summarizes the key differences between Conscious Capitalism and CSR. TABLE 2-1 How Conscious Capitalism differs from Corporate Social Responsibility Corporate Social Responsibility Conscious Capitalism Shareholders must sacrifice for society Integrates the interests of all stakeholders Independent of corporate purpose or culture Incorporates higher purpose and a caring culture Adds an ethical burden to business goals Reconciles caring and profitability through higher synergies Reflects a mechanistic view of business Views business as a complex, adaptive system Often grafted onto traditional business model, usually as a separate department or part of public relations Social responsibility is at the core of the business through the higher purpose and viewing the community and environment as key stakeholders Sees limited overlap between business and society, and between business and the planet Recognizes that business is a subset of society and that society is a subset of the planet Easy to meet as a charitable gesture; often seen as “green-washing” Requires genuine transformation through commitment to the four tenets Assumes all good deeds are desirable Requires that good deeds also advance the company’s core purpose and create value for the whole system Implications for business performance unclear Significantly outperforms traditional business model on financial and other criteria Compatible with traditional leadership Requires conscious leadership A Way Forward Every human being is born relatively undeveloped, but holds the potential for virtually unlimited personal growth.

Andrew Savitz wrote an excellent book on this approach: The Triple Bottom Line: How Today’s Best-Run Companies Are Achieving Economic, Social, and Environmental Success—and How You Can Too.3 The idea caught on, and many companies now produce reports that provide detailed information on their triple bottom lines. It is certainly consistent with some of the most important principles of Conscious Capitalism, particularly in its emphasis on managing businesses on behalf of multiple stakeholders. We see the TBL movement as a fellow traveler in helping to evolve business and capitalism to a higher consciousness. Whereas the corporate social responsibility (CSR) mind-set attempts to graft social responsibility and environmental sustainability onto the profit maximization model as add-ons, the TBL movement wants to make them equal partners in the business with the investors. While TBL is definitely an improvement over the CSR model, the TBL movement tends to focus heavily on social responsibility and environmental sustainability as the major areas for business to concentrate on besides achieving economic success.


pages: 827 words: 239,762

The Golden Passport: Harvard Business School, the Limits of Capitalism, and the Moral Failure of the MBA Elite by Duff McDonald

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Albert Einstein, barriers to entry, Bayesian statistics, Bernie Madoff, Bob Noyce, Bonfire of the Vanities, business cycle, business process, butterfly effect, capital asset pricing model, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, corporate raider, corporate social responsibility, creative destruction, deskilling, discounted cash flows, disintermediation, disruptive innovation, Donald Trump, family office, financial innovation, Frederick Winslow Taylor, full employment, George Gilder, glass ceiling, global pandemic, Gordon Gekko, hiring and firing, income inequality, invisible hand, Jeff Bezos, job-hopping, John von Neumann, Joseph Schumpeter, Kenneth Arrow, Kickstarter, London Whale, Long Term Capital Management, market fundamentalism, Menlo Park, new economy, obamacare, oil shock, pattern recognition, performance metric, Peter Thiel, plutocrats, Plutocrats, profit maximization, profit motive, pushing on a string, Ralph Nader, Ralph Waldo Emerson, RAND corporation, random walk, rent-seeking, Ronald Coase, Ronald Reagan, Sam Altman, Sand Hill Road, Saturday Night Live, shareholder value, Silicon Valley, Skype, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, survivorship bias, The Nature of the Firm, the scientific method, Thorstein Veblen, union organizing, urban renewal, Vilfredo Pareto, War on Poverty, William Shockley: the traitorous eight, women in the workforce, Y Combinator

The School churned out competent mediocrities exercising heavy-handed managerial control until the very moment that the economy had finally been strangled of forward thinking. It celebrated the conglomeration movement until the movement buckled under its own weight. At that point it turned on a dime and started sending its graduates to Wall Street in droves, one job of which was to dismantle the very companies the School’s previous graduates had built. On the subject of corporate social responsibility, it endorsed it when it was convenient to do so in the 1950s and 1960s, and pulled back from doing so as it embraced Wall Street’s single-minded focus on shareholder returns. It has lately come back around again, but that’s only because that’s what its students are demanding. Where is the leadership in any of that? “What people usually mean by a leader now,” says University of Virginia professor Mark Edmundson, “is someone who, in a very energetic, upbeat way, shares all the values of the people in charge.

That makes it all the more ironic that the older, supposedly more business-savvy dean was dispatched by Harvard’s president in what amounts to nothing less than a classic case study of modern organizational jujitsu. Bok’s 1978 annual report was mostly given over to a finely grained analysis of the Business School. While largely complimentary, it also included a catalog of what Bok considered serious weaknesses. He touched all the nerves: the school’s ongoing challenge at teaching ethics, its reticence on corporate social responsibility issues, as well as its lack of focus on the management of government and not-for-profit organizations. That, and the never-resolved question of the proper division of power between the government and the corporation. Bok also took aim at the school’s unstinting devotion to the case method—not suggesting that they dump their signature pedagogical approach but that they consider expanding their portfolio of teaching tools because of the method’s shortcomings.

Executives who try to act in ways that most of us would consider moral—with an eye to the environment or some other social goal—are, in Friedman’s way of thinking, acting immorally. When Joel Bakan interviewed Friedman for his 2005 book, The Corporation: The Pathological Pursuit of Profit and Power, the economist repeated the same point he’d made nearly forty years before, but with a twist. With corporate social responsibility again on the rise, Friedman conceded that it could be beneficial, but only when it is insincere, when executives espouse social and environmental values as “hypocritical window dressing” that’s really meant to boost corporate image and therefore boost the bottom line. In Friedman’s view, “hypocrisy is virtuous when it serves the bottom line,” Bakan observed, “[whereas] moral virtue is immoral when it does not.”3 Bakan then found a professor at HBS who was willing to channel Friedman’s “brand of cynicism [that is] old-fashioned, mean-spirited, and out of touch with reality.”


Future Files: A Brief History of the Next 50 Years by Richard Watson

Albert Einstein, bank run, banking crisis, battle of ideas, Black Swan, call centre, carbon footprint, cashless society, citizen journalism, commoditize, computer age, computer vision, congestion charging, corporate governance, corporate social responsibility, deglobalization, digital Maoism, disintermediation, epigenetics, failed state, financial innovation, Firefox, food miles, future of work, global pandemic, global supply chain, global village, hive mind, industrial robot, invention of the telegraph, Jaron Lanier, Jeff Bezos, knowledge economy, lateral thinking, linked data, low cost airline, low skilled workers, M-Pesa, mass immigration, Northern Rock, peak oil, pensions crisis, precision agriculture, prediction markets, Ralph Nader, Ray Kurzweil, rent control, RFID, Richard Florida, self-driving car, speech recognition, telepresence, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Turing test, Victor Gruen, white flight, women in the workforce, Zipcar

Having said this, wireless technology and high-speed connectivity will mean that the office will be anywhere, so we will increasingly work on holiday and in remote locations around the world. Previously work-neutral spaces such as planes, trains and cars will also resemble offices and nowhere will we be entirely free from work. Corporate social responsibility and governance Companies will have to work harder to attract and retain workers and issues such as ethical behavior and corporate social responsibility will be uppermost in the minds of potential recruits and customers alike. Indeed, marketing will be turned inwards as organizations fight to create company brands that appeal to potential and existing recruits. Trust and transparency will become more important and customers will also be driven more by values then by prices.

The Gen Xer was obviously expecting a debate about salary or holiday entitlements, but what transpired was a discussion about the ethical principles behind the firm and what it was doing in various areas ranging from poverty relief to recycling. 282 FUTURE FILES Whether or not companies engage with these issues remains to be seen, although there is anecdotal evidence to suggest that corporate social responsibility (CSR) is moving to center stage. The international standard for CSR (ISO 2600) will undoubtedly turn the heat up on firms when it comes to transparency and ethics. However, if past quality standards are anything to go by, this will be more a case of bureaucratic box ticking than a paradigm shift in the capitalist economy. The search by employees for more meaningful work lives and spirituality in their private lives does not necessarily equate with the moral transformation of work.

However, these shifts could also put a strain on the provision of everything from healthcare and housing to education and employment. Then again, perhaps it’s the other way around. Maybe you can see it as ageing creating vast opportunities in everything from healthcare and wellbeing to transport, leisure, retail and even education. Finally there’s the area of sustainability. I have read various predictions and forecasts claiming that ethics, corporate social responsibility, corporate governance and even spirituality will be key business trends in the future. While I accept that these ideas are becoming more important, I cannot see them competing with sustainability in the broadest sense in terms of being a global driver of change across all industries, sectors and countries. Taking a very long-term view, it is the beginning of the end for non-renewable Conclusions 299 resources; while climate change grabs the headlines, we should also be thinking in terms of everything from topsoil erosion and groundwater to packaging use and transport.


pages: 346 words: 97,330

Ghost Work: How to Stop Silicon Valley From Building a New Global Underclass by Mary L. Gray, Siddharth Suri

Affordable Care Act / Obamacare, Amazon Mechanical Turk, augmented reality, autonomous vehicles, barriers to entry, basic income, big-box store, bitcoin, blue-collar work, business process, business process outsourcing, call centre, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, collaborative consumption, collective bargaining, computer vision, corporate social responsibility, crowdsourcing, data is the new oil, deindustrialization, deskilling, don't be evil, Donald Trump, Elon Musk, employer provided health coverage, en.wikipedia.org, equal pay for equal work, Erik Brynjolfsson, financial independence, Frank Levy and Richard Murnane: The New Division of Labor, future of work, gig economy, glass ceiling, global supply chain, hiring and firing, ImageNet competition, industrial robot, informal economy, information asymmetry, Jeff Bezos, job automation, knowledge economy, low skilled workers, low-wage service sector, market friction, Mars Rover, natural language processing, new economy, passive income, pattern recognition, post-materialism, post-work, race to the bottom, Rana Plaza, recommendation engine, ride hailing / ride sharing, Ronald Coase, Second Machine Age, sentiment analysis, sharing economy, Shoshana Zuboff, side project, Silicon Valley, Silicon Valley startup, Skype, software as a service, speech recognition, spinning jenny, Stephen Hawking, The Future of Employment, The Nature of the Firm, transaction costs, two-sided market, union organizing, universal basic income, Vilfredo Pareto, women in the workforce, Works Progress Administration, Y Combinator

See Mike Isaac and Noam Scheiber, “Uber Settles Cases with Concessions, but Drivers Stay Freelancers,” New York Times, April 21, 2016, http://www.nytimes.com/2016/04/22/technology/uber-settles-cases-with-concessions-but-drivers-stay-freelancers.html; Alex Rosenblat and Luke Stark, “Algorithmic Labor and Information Asymmetries: A Case Study of Uber’s Drivers,” International Journal of Communication 10 (July 27, 2016): 27. [back] 6. Alex Rosenblat, Uberland: How Algorithms Are Rewriting the Rules of Work (Oakland: University of California Press, 2018). [back] 7. Wikipedia, s.v. “Corporate Social Responsibility,” accessed June 20, 2018, https://en.wikipedia.org/wiki/Corporate_social_responsibility. [back] 8. Gray et al., “The Crowd,” 134–47. [back] 9. Parikh’s approach to corporate social responsibility took things one step further. He asked company founders to design products and services that made a market for themselves, filling a societal need rather than using profits from a popular product to fund philanthropy. Parikh had some powerful fans, like the venture capitalists behind the Bay Area incubator Y Combinator.

West, Joel, and Karim R. Lakhani. “Getting Clear about Communities in Open Innovation.” Industry and Innovation 15, no. 2 (2008): 223–31. “What Is Jon Brelig and Oscar Smith?” Dirtbag Requesters on Amazon Mechanical Turk (blog), August 29, 2013. http://scumbagrequester.blogspot.com/2013/08/what-is-jon-brelig-and-oscar-smith.html. Wikipedia. S.v. “Corporate Social Responsibility.” Accessed June 20, 2018. https://en.wikipedia.org/wiki/Corporate_social_responsibility. Wikipedia. S.v. “Pareto Principle.” Accessed June 15, 2018. https://en.wikipedia.org/wiki/Pareto_principle. Williams, Joan C., Susan J. Lambert, Saravanan Kesavan; Peter J. Fugiel, Lori Ann Ospina, Erin Devorah Rapoport, Meghan Jarpe, Dylan Bellisle, Pradeep Pendem, Lisa McCorkell, and Sarah Adler-Milstein. “Stable Scheduling Increases Productivity and Sales: The Stable Scheduling Study.”


pages: 493 words: 139,845

Women Leaders at Work: Untold Tales of Women Achieving Their Ambitions by Elizabeth Ghaffari

Albert Einstein, AltaVista, business cycle, business process, cloud computing, Columbine, corporate governance, corporate social responsibility, dark matter, family office, Fellow of the Royal Society, financial independence, follow your passion, glass ceiling, Grace Hopper, high net worth, knowledge worker, Long Term Capital Management, longitudinal study, performance metric, pink-collar, profit maximization, profit motive, recommendation engine, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley startup, Steve Ballmer, Steve Jobs, thinkpad, trickle-down economics, urban planning, women in the workforce, young professional

In 2003, she strategically developed, launched, and directed the Center, which now encompasses research, instruction, and experiential learning and outreach programs, including the first-ever student-managed Socially Respons-ible Investment Fund and the Sustainable Products & Solutions Program. Dr. McElhaney teaches multiple courses on strategic corporate social responsibility in MBA and executive education programs at Berkeley. She has been a visiting professor specializing in strategic corporate social responsibility (CSR) at the University of North Carolina Kenan-Flagler School of Business, as well as Institut d’administration des enterprises, Université de Poitiers in France and Escuela de Alta Dirección y Administración (EADA) in Barcelona, Spain. On the faculty of the Haas School of Business since 2002, Dr. McElhaney’s consulting and research are focused on corporate social responsibility strategies and aligning CSR with business objectives, core competencies, and business value; linkages between diversity and CSR, specifically using CSR as a hook to re-engage women with business as employees, consumers, and investors; and using social technology for good by advancing companies’ CSR strategies and impact.

What will be the value of this course?” Anyway, they let me teach the course. The first time the course was offered, I was put into the smallest classroom in the Business School, but I had forty sign-ups and a waitlist of fifty-eight students. It was clear that something big was happening—students were much farther ahead of the faculty or the university. The course was something like Corporate Social Responsibility and Projects. The students would work on a real-life challenge inside of a company. I was lucky to have some great companies surrounding me in Michigan. Dow Chemical Company was an early sponsor, as were Ford Motor Company and Herman Miller. Paul Murray was a fantastic pioneer inside of Herman Miller around the concept of sustainable development. They opted to not use virgin wood or virgin materials, and they recycled chairs once the customer finished with it.

McElhaney: I had this situation with high student demand, high company demand, and the Business School couldn’t really say no. I’d built a joint-degree program at Michigan and developed a new course around the theory of sustainable development and how to apply it—live—in company projects. The dean of the Haas School of Business at the University of California at Berkeley at the time was a woman named Laura Tyson. She recruited me to do something similar in corporate social responsibility [CSR] at Haas because there were no formal programs there, but there was a lot of student demand. I was very drawn to Berkeley. I’m always drawn to people that I like, even more than to opportunities. I was fascinated by a female dean. Up to that point, I had been in business and academia roles and never had worked for a female. A big factor in my coming out here was Laura herself.


Green Economics: An Introduction to Theory, Policy and Practice by Molly Scott Cato

Albert Einstein, back-to-the-land, banking crisis, banks create money, basic income, Bretton Woods, Buy land – they’re not making it any more, carbon footprint, central bank independence, clean water, Community Supported Agriculture, congestion charging, corporate social responsibility, David Ricardo: comparative advantage, deskilling, energy security, food miles, Food sovereignty, Fractional reserve banking, full employment, gender pay gap, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), job satisfaction, land reform, land value tax, Mahatma Gandhi, market fundamentalism, mortgage debt, passive income, peak oil, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, reserve currency, the built environment, The Spirit Level, Tobin tax, University of East Anglia, wikimedia commons

S. 80 capital 96 see also Five Capitals Framework capitalism 11, 59, 90–92 carbon cycle 98–99 carbon dioxide emissions 98, 110–113, 130, 164, 165 carbon permits 111–112 carbon tax 164 carbon trading 110 Chiemgauer 82 China 128, 141 Chipko movement 189 Christianity 21 Citizens’ Income 181–182 climate change 1, 12, 98, 109–113, 129–130 closed system 48 CLT (Community Land Trust) 195, 196 Club of Rome 39 CO2 emissions 98, 110–113, 130, 164, 165 co-housing 196–197 commodity prices 126 commons, taxation 162–164 community business 68 Community Land Trust (CLT) 195, 196 community-supported agriculture (CSA) 95, 200–202 comparative advantage 124–126 competition 127–128 complementary currencies see local currencies Conable, B. 123 Conaty, P. 195 congestion charge 163 construction sector 107–109 220 GREEN ECONOMICS consumers 63 consumption 10, 96, 174 Contraction and Convergence 111 convivial economy 42, 44, 101 cooperatives 63, 64–65, 94, 95 co-production 80 core economy 80 corporate social responsibility (CSR) 92–93 cowboy perspective 11, 25 CSA (community-supported agriculture) 95, 200–202 CSR (corporate social responsibility) 92–93 Cuba 153, 201 Curtis, F. 145 Daly, H. 9, 25, 40, 115 Dawson, J. 194 debt-based money system 72, 73, 78 democratization, money system 74 demurrage 82 Denmark 167, 197 deskilling 61–64 Diggers 189 direct action 133 disembedding 183, 187 domestic work 114 Douthwaite, R. 27–29, 206 cooperatives 64–65 economic growth 9 economics 43 green growth 40 local self-reliance 145, 153–154 money 77 drug manufacturers 184 dumping, economic 135 early human societies 176 ecofeminism 35, 46 ecological economics 7, 40 ecological footprint 8 ecological modernization 106–109 ecological rucksack 96 ecological virtue 18 ecology 4, 190 economic growth 9–10, 38–39, 83, 174 economic indicators 116–120 see also GDP economics 11, 30–31, 41–45 economic security 120 ecotaxes 164–168 ecovillages 194 ecowelfarism 180 Emissions Trading Scheme (ETS) 110 see also carbon trading employment 58 empowerment 63 enduring terrors 178–179 energy 26, 92, 95–96 energy return on energy invested (EROI) 100 energy tax credits 166 entropy law 26 environmental catastrophes 114–115 environmental crisis 105, 178 environmental economics 6, 7 environmental justice movement 178 environmental movement 39 environmental taxes see ecotaxes equity 159, 160, 172 EROI (energy return on energy invested) 100 ETS (Emissions Trading Scheme) 110 European Union (EU) 109, 110, 143, 166 externalities 6 fair trade products 95, 128–129 farmers’ markets 95 farming 197–202 financial system, international 74–77 Five Capitals Framework 96 Fleming, D. 44, 112 food 62, 95, 140, 147 food miles 62 food security 143 formal economy 5 France 143 free trade 123, 126–129 Freire, P. 29 Funtowicz, S.

Despite that, the world’s top 200 corporations (accounting for 38 per cent of global economic activity) employ less than 0.25 per cent of the global workforce. Estimates vary; but the whole lot of them employ less than 1 per cent of the global workforce – a figure which has not increased for more than two decades.7 Most green economists share with Porritt a highly sceptical approach to corporate social responsibility or CSR, which he referred to as a ‘seductive illusion’. As discussed in Box 6.1, for many corporations claims to be green are a hollow GREEN BUSINESS 93 BOX 6.1 SHELL AND CSR: A CYNICAL VIEW Shell is one of the largest global corporations, a key player in the global oil industry and its third largest company behind Exxon-Mobil and BP. In 2001 its revenues were almost US$135 billion and it had 90,000 employees in 140 countries.

Velcro Contraction and Convergence: a proposed system of reducing global greenhouse gas emissions on the basis of an equal share for every global citizen a scheme for allocating the right to produce CO2 between citizens of a nation state a system allowing countries or organizations to exchange the right to produce CO2 so that those who can more efficiently reduce emissions reduce more and are paid money in compensation 216 GREEN ECONOMICS carrying capacity CI CLT community currencies CSA CSR Defra ecological footprint ecological rucksack ecological modernization ecotaxes embodied energy ETS Gaia hypothesis GAST GDP Green Industrial Revolution greenwash IMF intermediate technology ISEW Kyoto Protocol LDCs LVT NEF Passivhaus peak oil the size of population of species that an ecosystem can support within its natural resource limits and without degrading natural capital for future generations Citizens’ Income: a payment made to every citizen of a state as a right and without reciprocal demands or duties Community Land Trust: a system of mutual land ownership by the community alternative forms of money issued by local communities to help strengthen their local economies community-supported agriculture corporate social responsibility Department for Environment, Food and Rural Affairs (UK) a way of measuring human demand on the planet in terms of productive land the total weight of material flow carried by an item of consumption in the course of its life cycle academic and policy discourse which suggests that sustainability is possible without systemic social and environmental changes taxes designed to achieve environmental benefits the amount of fossil-fuel energy required to make a product that is directly related to the climate change impact of that product Emissions Trading System: EU system of carbon trading the perception of planet Earth as a single, self-regulating living organism General Agreement on Sustainable Trade: a proposed sustainable alternative to the present world trading system Gross Domestic Product: a key measure of a country’s economic activity within the conventional economic paradigm the idea that moving to a sustainable economy will require an upsurge of ingenuity and activity analogous that which occurred at the dawn of industrialism attempt by a company, generally a large corporation with a significant PR budget, to paint its activities as greener than they are International Monetary Fund a means of transferring sophisticated technologies to poorer countries using resources available there Index of Sustainable Economic Welfare: a proposed alternative to GDP as a measure of economic activity an international agreement adopted in 1997 with the aim of reducing the signatories’ greenhouse gas emissions less-developed countries Land Value Taxation New Economics Foundation home designed so that it can be naturally warmed and ventilated without the need for energy inputs the idea that oil production will reach a peak and then decline, with a severe impact on global economic activity FURTHER RESOURCES permaculture 217 a system for designing human settlements so that they mimic the interrelated structure of natural systems reskilling the idea that to make possible the sustainable self-reliant communities of the future we will need to learn more practical skills Right Livelihood Award the alternative green version of the Nobel Prize, awarded annually by the Swedish Parliament self-provisioning providing for more individual or community needs oneself and without resorting to the market social economy the part of the economy that is outside the market and the state and responds to human needs rather than the profit motive – a new way of describing ‘mutual aid’ solidarity economy an approach to the global economy that foregrounds social justice in economic relationships TEQs a system for rationing the right to produce CO2 on an individual basis TNCs transnational corporations triple-bottom-line a way of measuring a company or organization that includes accounting consideration of social and environmental consequences rather than focusing exclusively on the economic UNCTAD United Nations Conference on Trade and Development UNFPA United Nations Population Fund UNSNA United Nations System of National Accounts: the international standard for measuring economic activity within the conventional economic paradigm WTO World Trade Organization zero-carbon house a home that is neutral in terms of its CO2 emissions because its fossil-fuel use is offset by the energy it generates via renewable technologies Index absolute poverty 173 advertising 174 agriculture 197–202 alienation 59, 183–184 alternative currencies see local currencies alternative food economy 95 anarchism 179 Anderson, V. 117 Aquinas, St Thomas 65 Argentina 65, 84–85 Aristotle 18 Association of Heterodox Economists 31 Australia 192 balanced economy see steady-state economy Barnier, M. 143 Barry, J. 174, 179 BAU (business-as-usual) 90, 91, 107 Bhumibol Adulyadej 149 Bhutan 119 biofuels 48 bioregionalism 5, 20, 150–153 borrowing 182–183 Boulding, K.


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The fortune at the bottom of the pyramid by C. K. Prahalad

barriers to entry, business cycle, business process, call centre, cashless society, clean water, collective bargaining, corporate social responsibility, deskilling, disintermediation, farmers can use mobile phones to check market prices, financial intermediation, Hernando de Soto, hiring and firing, income inequality, information asymmetry, late fees, Mahatma Gandhi, market fragmentation, microcredit, new economy, profit motive, purchasing power parity, rent-seeking, shareholder value, The Fortune at the Bottom of the Pyramid, time value of money, transaction costs, wealth creators, working poor

That was the beginning of my journey to understand and motivate large firms to imagine and act on their role in creating a more just and humane society by collaborating effectively with other institutions. It was obvious that managers can sustain their enthusiasm and commitment to activities only if they are grounded in good business practices. The four to five billion people at the BOP can help redefine what “good business practice” is. This was not about philanthropy and notions of corporate social responsibility. These initiatives can take the process of engagement between the poor and the large firm only so far. Great contributions can result from these initiatives, but these activities are unlikely to be fully integrated with the core activities of the firm. For sustaining energy, resources, and innovation, the BOP must become a key element of the central mission for large private-sector firms.

Poverty alleviation will become a business development task shared among the large private sector firms and local BOP entrepreneurs. 6 The Fortune at the Bottom of the Pyramid ❥ Second, the BOP, as a market, provides a new growth opportunity for the private sector and a forum for innovations. Old and tired solutions cannot create markets at the BOP. Third, BOP markets must become an integral part of the work of the private sector. They must become part of the firms’ core businesses; they cannot merely be relegated to the realm of corporate social responsibility (CSR) initiatives. Successfully creating BOP markets involves change in the functioning of MNCs as much as it changes the functioning of developing countries. BOP markets must become integral to the success of the firm in order to command senior management attention and sustained resource allocation. ❥ There is significant untapped opportunity for value creation (for BOP consumers, shareholders, and employees) that is latent in the BOP market.

Pandav, India’s Regional Coordinator for the International Council for the Control of Iodine Deficiency (ICCIDD), NGOs have critical strengths: NGOs serve as an interface between people, especially those who are poor and needy, and the private sector/governments. In other words, they form a link between those who have and those who do not have. The strength of an NGO such as ours is competence, commitment, credibility, collaboration and advocacy. 4 Conversely, multinational corporations (MNCs) typically limit their involvement with the poor to corporate social responsibility. Although many MNCs have tapped into India’s wealthy, urban populations, few have attempted to reach the poor. MNCs have key capabilities, such as technological know-how, distribution networks, marketing experience, and financial backing, that enable them to combat public health problems such as IDD at a profit. Although nonprofit organizations are competent in dealing with such issues, it is rare for any one to have the same breadth as an MNC.


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Frugal Innovation: How to Do Better With Less by Jaideep Prabhu Navi Radjou

3D printing, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Albert Einstein, barriers to entry, Baxter: Rethink Robotics, Bretton Woods, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, cloud computing, collaborative consumption, collaborative economy, Computer Numeric Control, connected car, corporate social responsibility, creative destruction, crowdsourcing, disruptive innovation, Elon Musk, financial exclusion, financial innovation, global supply chain, IKEA effect, income inequality, industrial robot, intangible asset, Internet of things, job satisfaction, Khan Academy, Kickstarter, late fees, Lean Startup, low cost airline, low cost carrier, M-Pesa, Mahatma Gandhi, megacity, minimum viable product, more computing power than Apollo, new economy, payday loans, peer-to-peer lending, Peter H. Diamandis: Planetary Resources, precision agriculture, race to the bottom, reshoring, risk tolerance, Ronald Coase, self-driving car, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, six sigma, smart grid, smart meter, software as a service, standardized shipping container, Steve Jobs, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, transaction costs, Travis Kalanick, unbanked and underbanked, underbanked, women in the workforce, X Prize, yield management, Zipcar

And it explains how some pioneering firms are using techniques such as upcycling to combine and integrate the principles of the sharing and circular economies, thus paving the way for the “spiral economy”: a virtuous system that generates ever more value while reducing waste and the use of natural resources. Essential – not optional – sustainability For many years, companies only paid lip service to sustainability as part of their corporate social responsibility (CSR) and philanthropic activities. Recently, however, several factors have forced developed-world companies to take a more strategic approach to sustainability. Resource scarcity threatens the viability of businesses Paul Polman of Unilever notes that the world consumes 1.3 times more than the planet can replenish.2 Given current rates, by 2030 we would require two planets to supply the resources we need and to absorb our waste.

In fact many of them do care, but they lack the knowledge, skills, resources, or the right business model to tackle social challenges systematically and profitably. They may even be too proud to admit their ignorance or inexperience. Fortunately, many other companies seek help from non-profit organisations to forge hybrid value chains (HVCs). HVC is a business model that aims to create affordable products and services for the poor. It is more than corporate social responsibility (CSR) or philanthropy, as it works in win-win partnership with all stakeholders. Businesses gain access to profitable new markets, while non-profit organisations achieve their desired social impact. In this way, multinationals such as Citigroup, Essilor, GE and Unilever have served bottom-of-pyramid (BOP) customers in Africa, Asia and Latin America. They are now looking to do the same in Europe and the US, where millions of citizens can no longer afford basic health care and financial services.

Index 3D printers 18, 47–9, 50, 128, 132, 134, 152, 166 3D printing 9, 47–9, 50, 51, 52, 132, 151–2, 206 4D revolution 53–4 A Accor 172–6 Accountable Care Solutions 211 Active Health Management 211 adaptability 90, 154 additive manufacturing 47–9 ADEO Group 127, 128 advertising 24, 61–3, 71–2 aerosols 95, 96 Aetna 32, 208–13, 213, 215 Affinnova 31, 141 affordability 3, 82, 136, 153, 161, 172, 194, 216 in emerging markets 4, 56, 120, 198, 206 health-care innovations 202–3 and quality 1, 3, 9, 12, 75, 120–1, 198, 206 affordances 120–1 Africa 40, 56, 146, 161, 164, 197 financial services 198, 201 IBM in 200–2 innovation potential 200–2 as market 12, 169, 197–8, 199 ageing populations 109, 194 ageing workforce 13, 29, 49, 153 agility 26, 41, 69, 75, 143, 169–70 in innovation 21, 27, 33–4, 42–3, 72, 154, 167, 173, 176, 206 in manufacturing 44–5, 49, 52 Akerman, Dave 136 Air Liquide 205–7 air pollution 74, 78, 187, 200 Airbnb 10, 17, 85, 136, 140, 163, 173, 175 aircraft 68, 149 parts 48–9, 49, 121, 151–2 airlines 60, 121 Alteryx 32 Amazon 46, 60–1, 150 Amelio, Gil 68–9 AmEx (American Express) 161–2, 167, 215 Amgen 45 Anderson, Chris 18 Android operating system 130, 172 AOL 42 Apple 17, 24, 68–9, 71, 99, 150, 155, 172 Apple TV 62 apps 99, 106, 107, 108, 111–12, 124–5, 148 Arduino 135 Ariely, Dan 132 Arla Foods 37 artists 88, 93 ASDA 158–9, 159 Asia 161, 164, 200 aspirations 88–9, 119–20, 198 assets digitising 65–6 flexing see flexing assets reusing 92–3 sharing 159–61, 167 AT&T 21 ATMI 88 Auchan 13, 126, 128, 215 austerity 5, 6–7, 23 Australia 5, 62, 146, 200 Autodesk 48, 92, 132, 196–7 Automatic 131 automation 49–50 Avon 146 AXA 116 Ayed, Anne-Christine 75, 76 B B Corps (Benefit Corporations) 82 B2B (business-to-business) sectors 25–6, 34, 57, 142, 161, 175, 212 B2C (business-to-consumer) companies 25, 34, 212 Badrinath, Vivek 174 BAE Systems 48–9 Ban, Shigeru 93 Bangladesh 66 Bank of America 155 banking services 13, 17, 57, 161–2, 198 see also financial services Banner Health Network 210 Banzi, Massimo 135 Barber, Michael 181 Barclays 100, 115, 117, 215 Barry, Mike 183–4, 187 Bayer 66–7 Bazin, Sébastien 173 BBVA 125 Béhar, Yves 110 Belgium 103 Benefit Corporations (B Corps) 82 Benelux countries 7, 103 Benetton 67 Benoît, Paul 89 Berg 89 Bergh, Chip 122–3 Bertolini, Mark 208–9, 212, 213, 217 BHAGs (“big, hairy audacious” goals) 90–1, 158–9, 179, 191–2 Biasiotta, Bruno 123 big data 32–3, 117, 150 big-box retailers 9, 18, 137 “bigger is better” 2, 8, 14–15, 104 biomimetics (or biomimicry) 84 Birol, Jacques 163–4 BlaBlaCar 10, 85, 163 Blanchard, David 94, 96 Bloomberg, Michael 18, 79, 133 BMI (business model innovation) 192 BMW 47, 62–3, 86 BNP Paribas 168–9 Boeing 92, 144 Bolland, Marc 180–1, 186 Bontha, Ven 59 Booz & Company (now Strategy&) 6, 22, 23, 28, 171 Bosch 156 Boston Consulting Group 55, 64, 116, 145, 217 Botsman, Rachel 10 bottom-of-pyramid (BOP) customers 161, 203, 207 Bouygues Immobilier 90 BP 169 BPS (by-product synergy) 159 Brabeck-Letmathe, Peter 44, 78 brand ambassadors 143, 145 brand loyalty 46, 100, 204, 215 branding 15, 108, 119–20, 156 brands 1, 71, 139, 141, 143, 154, 165–6, 215 “conversations” with 129, 131–2 working together 154, 156–7 Braungart, Michael 82 Brazil 40, 74, 102, 146, 188, 199 emerging market 4, 12, 38, 146, 197, 199 Bretton Woods Conference (1944) 104 Brin, Sergey 63 BringBee 85 Bross, Matt 37–8, 171 Brown, Tim 121 Brusson, Nicolas 163 BT 37–8, 171 BTG (British Technology Group) 171 budgeting, personal 124–5 budgets 6–7, 36, 42 Buffett, Warren 138 buildings 196–7 bureaucracy 36, 63–4, 65, 70, 165, 169, 173, 182 business, primary purpose of 14 business model innovation (BMI) 192 business models 2, 34, 38, 80, 118, 205, 216, 217 changing 190–3, 213 business opportunities 36, 188–9, 190 business process re-engineering 192 business strategy 34 business-to-business see B2B business-to-consumer see B2C by-product synergy (BPS) 159 C C2C (cradle-to-cradle) design 75, 77, 82, 84, 97 Cacciotti, Jerry 22, 23 CAD (computer-aided design) 47, 65, 132, 165 California 79, 99 Calmes, Stéphane 127, 128 Camp, Garrett 163 Canada 5, 102 cannibalisation conundrum 15, 117–18 capital costs 45 car insurance 116 car sharing 10, 17, 85, 86, 108, 123, 163 car-related services 62–3, 116 Caravan Shop 89 carbon emissions 102, 103, 196 reducing 78–9, 106–7, 159, 160, 174 stabilising 184, 186 carbon footprint 94, 100, 102, 156, 184, 186 Carrefour 121–2, 157, 174 cars 89, 92, 116, 119–20, 144, 155, 156 electric 47, 86, 172 emissions 47, 106–7 fuel consumption 47, 106–7 fuel efficiency 8, 12, 24, 47, 78, 131, 197 low-cost 2–4 personalisation 129–30 related services 62–3 standards for 78–9 see also BMW; Ford; Nissan; Renault; Tesla; Toyota Caterpillar 31, 55 CellScope 110 Cemex 59 centralisation 9, 44, 51 CEOs 34, 40, 168, 203–5, 204 certification, sustainability 84 Chaparral Steel 159 chemical industry 33, 58, 66–7 chemical usage, reducing 79 Cheshire, Ian 185–6 Chesky, Brian 163 Chevron 170 China 44, 83, 102, 144, 213, 216 air pollution 187, 200 emerging market 4, 38, 169, 197, 205 innovation in 169, 200 mobile phones 198 R&D 40, 188, 206 selling into 187–8 shifting production from 55, 56 Christchurch (New Zealand) 93 Chrysler 166 circular economy 9, 76–7, 80–4, 159–60, 195–6 “Circular Economy 100” 76–7, 86 circular supply chains 193 Cisco 17, 29, 65, 110 CISL (University of Cambridge Institute for Sustainability Leadership) 158–9 cities 107, 153 Citigroup 161 climate change 8, 100 closed-loop products 86, 91, 185, 192–3 cloud computing 60, 61, 157, 169 CMF-A car platform 4–5, 198–9 CNC (computer numerical control) cutters 128, 134, 152 co-branding 143 co-creation 126–9, 202–3, 206–7 see also collaboration; horizontal economy; prosumers co-distribution 143 co-marketing 143 co-operation 64–5, 69, 70–1 co-opetition 158–9 Coase, Ronald 133 Coca-Cola 57, 62, 142, 154 “cold chains” 57 CoLearnr 114 Collaborating Centre on Sustainable Consumption and Production (CSCP) 193–4 collaboration 76, 114, 138–9, 176, 211, 217–18 cross-functional 36–8, 39, 71–2 see also hyper-collaboration; TechShop collaborative consumption see sharing economy collaborative manufacturing 50–1 collective buying platforms 137 Commonwealth Fund 110 communities of customers 129, 131, 132–3 local 52, 57, 146, 206–7 commuting 131 competition 22, 27, 102, 189 competitive advantage 15–16, 80, 195 competitors 19, 26, 148, 149–50, 172, 215 emerging markets 16, 205–6, 216 engaging 158–9, 167 frugal 16–18, 26, 216 complexity 24, 64 components 3, 67 computer numerical control see CNC computer-aided design (CAD) 47, 65, 132, 165 Comstock, Beth 40–1, 149, 150, 151, 170 concentration 96 Concept Lab 211 concept testing 25, 31, 72, 191 Cone, Carol 7 congestion 108, 201 constraints 4–5, 22, 34, 36, 42, 207, 217 consumer behaviour 3, 6, 97, 98–101 shaping xix, 99–101, 105–9, 125 Consumer Empowerment Index 103 consumer spending 103 consumers 8, 27, 37, 97, 105 developed-world 2, 7, 9, 102 dissatisfaction 130–1 empowerment 22, 105, 106 environmental awareness 101–2, 105 frugal 197–200 of the future 193–4 innovative ideas from 50–1 with particular needs 194–5 power 102–4, 139 social experience 139 and sustainability 95, 97, 101–4 trust of 143 young 16, 85, 86, 122, 124, 131 see also customers; prosumers consumption 85, 101–6, 115, 124, 193 continuous processing 44–5, 47, 50 Cook, Scott 19 core, focusing on 68–9 Cornillon, Paul 37 Corporate Home Exchange 175 corporate leaders 122–4, 180–1, 203–5 corporate social responsibility see CSR Cortese, Amy 138 cost effectiveness 12, 34, 149, 164, 172, 188, 190, 191 consumer energy use 53 customisation 67 health care 202 innovation 21, 173 micro-factories 52 Costco 18 costs 3D printers 48 capital costs 45 development costs 22, 36 distribution costs 54, 55, 96 electricity generation 104 energy costs 161, 190 environmental costs 11 fuel costs 121 of good-enough approach 27 health-care costs 13, 109 innovation costs 168, 171 inventory costs 54 life-cycle costs 12, 24, 196 maintenance costs 48–9, 66 manufacturing costs 47, 48, 52 operating costs 45, 215 production costs 9, 83 raw materials 153, 161, 190 reducing 11, 46, 47, 60, 84, 89, 160, 167, 200 resource costs 78, 203 shipping costs 55, 59 supply chain 58, 84 transaction costs 133 wage costs 48 Coughlin, Bill 167 Coursera 61, 112 Coye, Molly 202 cradle-to-cradle see C2C design creativity 88, 94, 128, 130, 135, 163–4, 199 in organisations 63–4, 70, 71 credit culture 115–16 CRM (customer relationship management) systems 59, 157 cross-functional collaboration 36–8, 39, 71–2 crowdfunding 17, 48, 132, 137–9, 152 crowdsourcing 28–9, 50–1, 126, 140, 143, 152, 202 platforms 142, 150–1, 151, 152 CSCP (Collaborating Centre on Sustainable Consumption and Production) 193–4 CSR (corporate social responsibility) 77, 82, 94, 161 culture, organisational see organisational culture “culture of simplification” 170 curiosity 153–4 customer behaviour see consumer behaviour customer experience, enhancing 75 customer feedback 31–2, 33, 72, 152, 170, 192 customer immersion labs 31–2 customer loyalty 28, 68, 77, 80, 124, 129, 131–2, 215 customer needs 37, 58, 90, 139–40, 170, 192, 206 changing 28, 38, 51, 127, 150, 168, 205 diversity 38, 46, 51 R&D disconnect from 26, 38 customer preferences 58, 67, 75 customer relationship management see CRM customer satisfaction 65, 128, 130–1 customer service 25–6, 127–8, 147 customer visits 18, 20, 128 customers 19, 27, 46, 76, 148, 205 alienating 24–6 behaviour see consumer behaviour bottom-of-pyramid 12–13, 161, 203, 207 communities of 129, 131, 132–3 cost-conscious 3, 6, 7, 22, 26, 156, 189, 215 dreams 140–1 eco-awareness 22, 26, 54, 75, 78, 93, 156, 195–6, 215 in emerging markets 200 engaging with 20–1, 24–6, 27–33, 34, 35, 38–9, 42–3, 115, 128, 170 as experts 146 focus on 19–21, 43, 62, 157–8, 204 goodwill of 84 motivation for change 117 multiple roles 143–6 needs see customer needs outsourcing to 143 participation 128–9 profligate 115–16 R&D and 27–8, 31–2, 38, 43 rewards for 147–8 shared 156–8 used to motivate employees 205–7 young 16, 85, 86, 122, 124, 131 see also consumers; prosumers customisation 9, 46, 47, 48, 51–2, 57–8, 67, 72 CVS Health 7 D D2D Fund 162 Dacia 2–4, 156, 179 Dannon 141 Danone 66, 141, 184, 186 Darchis, François 205–6, 207 DARPA (Defence Advanced Research Projects Agency) 49 Darukhanavala, P.P.


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Common Wealth: Economics for a Crowded Planet by Jeffrey Sachs

agricultural Revolution, air freight, back-to-the-land, British Empire, business process, carbon footprint, clean water, colonial rule, corporate social responsibility, correlation does not imply causation, creative destruction, demographic transition, Diane Coyle, Edward Glaeser, energy security, failed state, Gini coefficient, global pandemic, Haber-Bosch Process, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), intermodal, invention of agriculture, invention of the steam engine, invisible hand, Joseph Schumpeter, knowledge worker, labor-force participation, low skilled workers, mass immigration, microcredit, oil shale / tar sands, old age dependency ratio, peak oil, profit maximization, profit motive, purchasing power parity, road to serfdom, Ronald Reagan, Simon Kuznets, Skype, statistical model, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, unemployed young men, War on Poverty, women in the workforce, working-age population

Politicians should be pursued during election campaigns, through letter writing, visits to their offices, and at public rallies. Seventh, engage your workplace. Every company can add to global sustainable development. First and foremost, each company should abide by standards of corporate social responsibility, for example, by adhering to the norms and standards of the United Nations Global Compact. But more than that, each company has special technologies, organizational systems, employee skills, and corporate reputations that can contribute to meeting the Millennium Promises. We’ve emphasized that corporate social responsibility is not philanthropy but good business practice. Customers, suppliers, and, most important, employees themselves rally to the cause of companies that take these responsibilities seriously. Eighth, live personally according to the standards of the Millennium Promises.

The actual institutions delivering AIDS medicines include a bewildering array of market-based, public-sector, and not-for-profit nongovernmental actors, including the drug companies, NGOs such as Partners in Health and Doctors Without Borders, the Global Fund, national African governments, local communities, and volunteer village health workers. The common thread is not market returns but rather commitment to a common goal: AIDS treatment for all who need it, even the poorest of the poor. CORPORATE SOCIAL RESPONSIBILITY The overriding job of business is to make money for the owners, but that in no way precludes an active role for business in solving nonmarket problems such as access to HIV medicines. Indeed, CEOs understand that if they neglect the nonmarket side of their activities, they can risk the very success of the company. The reputational costs to business of blocking solutions to vital challenges can be devastating to shared values, customer loyalties, worker morale, the ability to recruit new employees, and even the social acceptability of their continued operations.

This is the general message that I give to all CEOs regarding the Millennium Promises. Each company needs to be part of the solution and needs to stretch its activities beyond normal market activities. This does not mean to turn the company upside down or into a charitable institution, but rather to identify the unique contribution the company may make as part of a broader effort to solve a major social challenge. This is the real meaning of corporate social responsibility: to operate in a manner that promotes broad social objectives, including nonmarket goals, in a way consistent with core business principles, values, and practices. It means much more than simple corporate philanthropy. It demands creativity. In most cases, a company’s main assets are its proprietary technologies, its supplier and customer networks, its good name, and its workforce.


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The Globalization Paradox: Democracy and the Future of the World Economy by Dani Rodrik

affirmative action, Asian financial crisis, bank run, banking crisis, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, central bank independence, collective bargaining, colonial rule, Corn Laws, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, Doha Development Round, en.wikipedia.org, endogenous growth, eurozone crisis, financial deregulation, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, George Akerlof, guest worker program, Hernando de Soto, immigration reform, income inequality, income per capita, industrial cluster, information asymmetry, joint-stock company, Kenneth Rogoff, land reform, liberal capitalism, light touch regulation, Long Term Capital Management, low skilled workers, margin call, market bubble, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, microcredit, Monroe Doctrine, moral hazard, night-watchman state, non-tariff barriers, offshore financial centre, oil shock, open borders, open economy, Paul Samuelson, price stability, profit maximization, race to the bottom, regulatory arbitrage, savings glut, Silicon Valley, special drawing rights, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tobin tax, too big to fail, trade liberalization, trade route, transaction costs, tulip mania, Washington Consensus, World Values Survey

Can these networks go beyond narrowly technical areas and encompass broader social purposes? Yes, says John Ruggie, the Harvard scholar who coined the term “embedded liberalism” to describe the Bretton Woods regime. Ruggie agrees that transnational networks have undermined the traditional model of governance based on nation states. To right this imbalance, he argues, we need greater emphasis on corporate social responsibility at the global level. An updated version of embedded liberalism would move beyond a state-centered multilateralism to “a multilateralism that actively embraces the potential contributions to global social organization by civil society and corporate actors.” These actors can advance new global norms—on human rights, labor practices, health, anti-corruption, and environmental stewardship—and then enshrine them in the operations of large international corporations and policies of national governments.

It would alleviate the widespread concern that international competition creates a race to the bottom in labor and environmental standards at the expense of social inclusion at home. And it would allow the private sector to shoulder some of the functions that states are finding increasingly difficult to finance and carry out, as in public health and environmental protection, narrowing the governance gap between international markets and national governments.7 Arguments on behalf of new forms of global governance—whether of the delegation, network, or corporate social responsibility type—raise troubling questions. To whom are these mechanisms supposed to be accountable? From where do these global clubs of regulators, international non-governmental organizations, or large firms get their mandates? Who empowers and polices them? What ensures that the voice and interests of those who are less globally networked are also heard? The Achilles’ heel of global governance is lack of clear accountability relationships.

Moreover, the benefits did not necessarily flow to the poorest farmers, who are the landless indigenous growers.19 Other reports suggest that only a tiny share of the price premium for fair trade coffee finds its way to the growers.20 Fair trade or other labeling programs like RugMark may be doing some good on the whole, but we should be skeptical about how informative these labels are and the likely magnitude of their effects. And what is true of NGO-led efforts is all the more true of corporate social responsibility. Corporations, after all, are motivated by the bottom line. They may be willing to invest in social and environmental projects if doing so buys them customers’ goodwill. Yet we shouldn’t assume their motives align closely with those of society at large, nor exaggerate their willingness to advance societal agendas. The most fundamental objection to labeling and other market-based approaches is that they overlook the social dimension of standard-setting.


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How to Run the World: Charting a Course to the Next Renaissance by Parag Khanna

Albert Einstein, Asian financial crisis, back-to-the-land, bank run, blood diamonds, Bob Geldof, borderless world, BRICs, British Empire, call centre, carbon footprint, charter city, clean water, cleantech, cloud computing, commoditize, continuation of politics by other means, corporate governance, corporate social responsibility, Deng Xiaoping, Doha Development Round, don't be evil, double entry bookkeeping, energy security, European colonialism, facts on the ground, failed state, friendly fire, global village, Google Earth, high net worth, index fund, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Kickstarter, laissez-faire capitalism, Live Aid, Masdar, mass immigration, megacity, microcredit, mutually assured destruction, Naomi Klein, Nelson Mandela, New Urbanism, off grid, offshore financial centre, oil shock, open economy, out of africa, Parag Khanna, private military company, Productivity paradox, race to the bottom, RAND corporation, reserve currency, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, sustainable-tourism, The Fortune at the Bottom of the Pyramid, The Wisdom of Crowds, too big to fail, trade liberalization, trickle-down economics, UNCLOS, uranium enrichment, Washington Consensus, X Prize

Broadman, “China and India Go to Africa,” Foreign Affairs, March/April 2008. 5. Michael Ross, “Blood Barrels,” Foreign Affairs, May/June 2008, 7. Chapter Nine: The Case Against Poverty 1. Tom Mitchell, “An Army Marching to Escape Medieval China,” Financial Times, April 16, 2009. 2. Sixty-five percent of BRAC’s revenue is generated from its own programs and 30 percent from direct private support. 3. “Just Good Business: Survey of Corporate Social Responsibility,” The Economist, January 19, 2008, 4. 4. Josh Ruxin, “Doctors Without Orders,” Democracy, Summer 2008. 5. Tahir Andrabi, Jishnu Das, C. Christine Fair, and Asim Ijaz Khwaja, “The Madrasa Myth,” ForeignPolicy.com, June 2009. 6. G. Pascal Zachary, “Inside Nairobi, the Next Palo Alto?” The New York Times, July 20, 2008. 7. Pritchett, Let Their People Come, 85. 8. Mukul G. Asher and Amarendu Nandy, “Remittances: Maximizing India’s Strategic Leverage,” Pragati, June 2007. 9.

Capitalism at the Crossroads: Aligning Business, Earth, and Humanity. Upper Saddle River, N.J.: Wharton School Publishing, 2007. Held, David. The Global Covenant: The Social Democratic Alternative to the Washington Consensus. Cambridge, UK: Polity, 2004. Held, David, and Anthony McGrew, eds. Governing Globalization: Power, Authority, and Global Governance. Cambridge, UK: Polity, 2002. Henderson, David. Misguided Virtue: False Notions of Corporate Social Responsibility. London: Institute for Economic Affairs, 2001. Higgott, Richard A., Geoffrey R. D. Underhill, and Andreas Bieler, eds. Non-State Actors and Authority in the Global System. London: Routledge, 2000. Homer-Dixon, Thomas F. The Ingenuity Gap: Facing the Economic, Environmental, and Other Challenges of an Increasingly Complex and Unpredictable World. New York: Vintage, 2002. Jackson, Robert H.

Toynbee, Arnold. Civilization on Trial. New York: Oxford University Press, 1948. Trubek, David M., and Alvaro Santos. The New Law and Economic Development: A Critical Appraisal. Cambridge, UK: Cambridge University Press, 2006. Tuchman, Barbara W. A Distant Mirror: The Calamitous 14th Century. New York: Alfred A. Knopf, 1978. Vogel, David. The Market for Virtue: The Potential and Limits of Corporate Social Responsibility. Washington, D.C.: Brookings Institution Press, 2005. Waddell, Steve. Societal Learning and Change: How Governments, Business, and Civil Society Are Creating Solutions to Multi-Stakeholder Problems. Sheffield, UK: Greenleaf Publishers, 2005. Wallerstein, Immanuel. The Modern World-System. New York: Academic Press, 1974. Webb, Adam K. Beyond the Global Culture War. New York: Routledge, 2006.


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What's Next?: Unconventional Wisdom on the Future of the World Economy by David Hale, Lyric Hughes Hale

affirmative action, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Black Swan, Bretton Woods, business cycle, capital controls, Cass Sunstein, central bank independence, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, debt deflation, declining real wages, deindustrialization, diversification, energy security, Erik Brynjolfsson, Fall of the Berlin Wall, financial innovation, floating exchange rates, full employment, Gini coefficient, global reserve currency, global village, high net worth, Home mortgage interest deduction, housing crisis, index fund, inflation targeting, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Just-in-time delivery, Kenneth Rogoff, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, money market fund, money: store of value / unit of account / medium of exchange, mortgage tax deduction, Network effects, new economy, Nicholas Carr, oil shale / tar sands, oil shock, open economy, passive investing, payday loans, peak oil, Ponzi scheme, post-oil, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, sovereign wealth fund, special drawing rights, technology bubble, The Great Moderation, Thomas Kuhn: the structure of scientific revolutions, Tobin tax, too big to fail, total factor productivity, trade liberalization, Washington Consensus, Westphalian system, WikiLeaks, women in the workforce, yield curve

Require a third-party certification of a compliance program (similar to the annual report certified by a public accounting firm). 4. Require an independently certified triple bottom-line audit of corporations for financial, environmental, and corporate social responsibility issues. This audit should be filed with the SEC in the United States or its equivalent in other countries. 5. Audits and certifications of the compliance program, the environmental program, and corporate social responsibility should be made transparent and available to investors and the public on the Internet. 6. Hire more personnel to the SEC—or its equivalent in other countries—to monitor suspicious activity reports (SARs), annual reports on compliance programs, environmental programs, corporate social responsibility reports, and financial reports. 7. Promote better cooperation between federal, state, and local law enforcement and regulators in the United States, including state attorney general’s offices, the Justice Department, the SEC, and police departments.

US Generally Accepted Accounting Principles (GAAP) standards should be updated to reflect the more holistic European GAAP standards to prevent, for example, the financial abuses of off-balance sheet, special purpose entities (SPEs). Moreover, the SEC, or its equivalent in other countries, should require independent certified triple bottom-line audits of corporations for financial, environmental, and corporate social responsibility issues, and the filing of these audits. Finally, the public should be aware that there is a connection between criminal activity, counterfeiting goods, money laundering, and terrorism. These elements frequently work together to promote their agendas. For example, the 1993 World Trade Center bombing was financed by counterfeit Hard Rock Café souvenirs. Checklist for Creating a Future of Transparency and Integrity in the Corporate World and Civil Society Listed below are the eighteen steps to creating a future of transparency and integrity in the corporate world and civil society: 1.


pages: 297 words: 84,009

Big Business: A Love Letter to an American Anti-Hero by Tyler Cowen

23andMe, Affordable Care Act / Obamacare, augmented reality, barriers to entry, Bernie Sanders, bitcoin, blockchain, Bretton Woods, cloud computing, cognitive dissonance, corporate governance, corporate social responsibility, correlation coefficient, creative destruction, crony capitalism, cryptocurrency, dark matter, David Brooks, David Graeber, don't be evil, Donald Trump, Elon Musk, employer provided health coverage, experimental economics, Filter Bubble, financial innovation, financial intermediation, global reserve currency, global supply chain, Google Glasses, income inequality, Internet of things, invisible hand, Jeff Bezos, late fees, Mark Zuckerberg, mobile money, money market fund, mortgage debt, Network effects, new economy, Nicholas Carr, obamacare, offshore financial centre, passive investing, payday loans, peer-to-peer lending, Peter Thiel, pre–internet, price discrimination, profit maximization, profit motive, RAND corporation, rent-seeking, reserve currency, ride hailing / ride sharing, risk tolerance, Ronald Coase, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Snapchat, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, The Nature of the Firm, Tim Cook: Apple, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, ultimatum game, WikiLeaks, women in the workforce, World Values Survey, Y Combinator

Friedman 1970. Note that Friedman’s article erred in describing the top executives as employees. A better way of describing them would be that the board and the executives are “fiduciaries” and that the top executives have a duty to shareholders. On this, see, for instance, Hart and Zingales 2016, which also surveys some of the subsequent literature. Some of the many other relevant writings on corporate social responsibility are Aguinis and Ghavas 2012, a very useful aggregate survey; Marcaux 2017; Guiso, Sapienza, and Zingales 2013; and Lev, Petrovits, and Radhakrishnan 2010. 15.   In passing, I should note that my book In Praise of Commercial Culture (2000) covers the history of rock and roll, and my book An Economist Gets Lunch (2012) covers some issues surrounding GMOs. Chapter 2: Are Businesses More Fraudulent Than the Rest of Us?   

“Is That Car Smiling at Me? Scheme Congruity as a Basis for Evaluating Anthropomorphized Products.” Journal of Consumer Research 34 (December): 468–479. Aggarwal, Pankaf, and Ann L. McGill. 2012. “When Brands Seem Human, Do Humans Act Like Brands? Automatic Behavioral Priming.” Journal of Consumer Research 39 (August): 307–323. Aguinas, Herman, and Ante Glavas. 2012. “What We Know and Don’t Know About Corporate Social Responsibility: A Review and Research Agenda.” Journal of Management 38, no. 4 (July): 932–968. Ales, Laurence, and Christopher Sleet. 2016. “Taxing Top CEO Incomes.” American Economic Review 106 (11): 3331–3366. Alexander, Scott. 2016. “Contra Robinson on Schooling.” Slate Star Codex (blog). December 6, 2016. Alexander, Scott. 2017. “Silicon Valley: A Reality Check.” Slate Star Codex (blog), May 11, 2017. http://slatestarcodex.com/2017/05/11/silicon-valley-a-reality-check.

“Do Public Firms Respond to Investment Opportunities More Than Private Firms? The Impact of Initial Firm Quality.” NBER Working Paper No. 24104. National Bureau of Economic Research, Washington, DC. Manjoo, Farhad. 2017. “Why Tech Is Starting to Make Me Uneasy.” New York Times, October 11, 2017. Marcaux, Alexei. 2017. “The Power and the Limits of Milton Friedman’s Arguments Against Corporate Social Responsibility.” In Wealth, Commerce, and Philosophy: Foundational Thinkers and Business Ethics, edited by Eugene Heath and Byron Kaldis, 339–380. Chicago: University of Chicago Press. Matthews, Dylan. 2016. “Remember That Study Saying America Is an Oligarchy? 3 Rebuttals Say It’s Wrong.” Vox, May 9, 2016. Mauboussin, Michael J., and Dan Callahan. 2015. “A Long Look at Short-Termism: Questioning the Premise.”


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How Capitalism Saved America: The Untold History of Our Country, From the Pilgrims to the Present by Thomas J. Dilorenzo

banking crisis, British Empire, business cycle, collective bargaining, corporate governance, corporate social responsibility, financial deregulation, Fractional reserve banking, Hernando de Soto, income inequality, invisible hand, Joseph Schumpeter, laissez-faire capitalism, means of production, medical malpractice, Menlo Park, minimum wage unemployment, Norman Mailer, plutocrats, Plutocrats, price stability, profit maximization, profit motive, Ralph Nader, rent control, rent-seeking, Robert Bork, Ronald Coase, Ronald Reagan, Silicon Valley, statistical model, The Wealth of Nations by Adam Smith, transcontinental railway, union organizing, Upton Sinclair, wealth creators, working poor, Works Progress Administration, zero-sum game

Hollander shows how socialist dictators around the world made fools of so many Western intellectuals who blindly embraced socialism because of their hatred of capitalism. Hood, John M. The Heroic Enterprise. New York: Free Press, 1996. Hood defends capitalism and capitalists against the forces of political correctness who want businesspeople to give away more and more of their (and their shareholders’) money to various liberal political causes in the name of “corporate social responsibility.” He explains in great detail why “corporate social responsibility” is socially irresponsible. Hoppe, Hans-Hermann. The Economics and Ethics of Private Property. Boston: Kluwer Academic Publishers, 1993. A lucid discussion of the ethical and economic case in favor of private property and free-market capitalism. Huber, Peter. Liability: The Legal Revolution and Its Consequences. New York: Basic Books, 1988. Huber describes the causes and consequences of America’s crazy liability law system, in which people with deep pockets are often sued regardless of whether they are liable for harming anyone.

Indeed, this result is found so uniformly as to create a puzzle: one would expect to find, in all these studies, at least some government programs that do more good than harm.3 One manifestation of the bureaucratization of American capitalism is that American universities rarely teach anything about the practices or philosophy of entrepreneurship—the kind of entrepreneurship practiced by John D. Rockefeller, James J. Hill, and many other successful capitalists. Instead, schools of business offer numerous courses on “business law,” “administrative law,” and “corporate social responsibility,” which is mostly propaganda on behalf of even more regulation and higher taxation. In other words, American universities devote an inordinate amount of time and resources to teach potential business leaders not how to be capitalists but how to be corporate bureaucrats. This cannot be good for the future of American prosperity. All this regulation of American capitalism has had the side effect of stifling free speech.


pages: 632 words: 166,729

Addiction by Design: Machine Gambling in Las Vegas by Natasha Dow Schüll

airport security, Albert Einstein, Build a better mousetrap, business intelligence, capital controls, cashless society, commoditize, corporate social responsibility, deindustrialization, dematerialisation, deskilling, game design, impulse control, information asymmetry, inventory management, iterative process, jitney, large denomination, late capitalism, late fees, longitudinal study, means of production, meta analysis, meta-analysis, Nash equilibrium, Panopticon Jeremy Bentham, post-industrial society, postindustrial economy, profit motive, RFID, Silicon Valley, Slavoj Žižek, statistical model, the built environment, yield curve, zero-sum game

My objective was to delay any change, not acquire any understanding. If [the industry] appears to exist as if it has no conscience, that may make sense, for when I was an addict I had none. Over the past few years, the term Corporate Social Responsibility (CSR for short) has come to stand for the “conscience” to which Schuetz alluded. The G2E meetings added a new panel track of that name the same year that Shaffer held his town hall meeting a few miles down the Strip. “Years ago, Milton Friedman reigned supreme, and just by being a business and turning a profit you were doing what you were supposed to be doing,” remembered the moderator for a panel called “What Is Corporate Social Responsibility?” Yet economic amoralism, he observed, was no longer the state of affairs in business: “The operating environment we’re in now is like none we have ever seen.” Some in the audience favored regu lation as the method for coping with this new environment, expressing a wish that the government would “take a stronger hand” and “provide more guidance”—at the very least to maintain the public’s trust in the industry’s integrity.

Nuclear Rites: A Weapons Laboratory at the End of the Cold War. Berkeley: University of California Press. Hacking, Ian. 1990. The Taming of Chance. Cambridge: Cambridge University Press. ———. 1998. Mad Travelers Reflections on the Reality of Transient Mental Illnesses. Charlottesville: University Press of Virginia. Hancock, Linda, T. Schellinck, and T. Schrans. 2008. “Gambling and Corporate Social Responsibility (CSR): Re-Defining Industry and State Roles on Duty of Care and Risk Management.” Policy and Society 27: 55–68. Hannigan, John. 1998. Fantasy City: Pleasure and Profit in the Postmodern Metropolis. New York: Routledge. Hanson, Zia, and M. Hong. 2003. “Interview with Ötsch.” In Stripping Las Vegas: A Contextual Review of Casino Resort Architecture, edited by K. Jaschke and S. Ötsch.

consumer protection: Consumer Lifestyle continuous gaming productivity: farcical accounts of; promotion of by the gambling industry; time and energy management techniques for contrived contingency control: adaptive; cybernetic conception of; Deleuzian conception of; as a feature of gambling machines; flexible; illusion of in gambling; loss of in gambling addiction; over chance by gambling industry; over chance through gambling; over gamblers’ affect; over gamblers’ behavior; role of in flow; of self in addiction recovery; of self in responsible gambling; theme of in gamblers’ life stories. See also agency; contrived contingency, control societies. control societies convenience gambling Cooper, Marc coproduction Corporate Gaming Act Corporate Social Responsibility (CSR) Cosgrave, James Courtwright, David Crary, Jonathan credit-based gambling: and the dematerialization of money; regulation of; technologies of Csiksentmihalyi, Mihalyi. See flow. Cummings, Leslie Customer Relationship Management (CRM). See relationship management. customer reward programs. See casino reward programs; player reward cards. customer tracking. See player tracking; market research.


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Food and Fuel: Solutions for the Future by Andrew Heintzman, Evan Solomon, Eric Schlosser

agricultural Revolution, Berlin Wall, big-box store, clean water, Community Supported Agriculture, corporate social responsibility, David Brooks, deindustrialization, distributed generation, energy security, Exxon Valdez, flex fuel, full employment, half of the world's population has never made a phone call, hydrogen economy, Kickstarter, land reform, microcredit, Negawatt, Nelson Mandela, oil shale / tar sands, oil shock, peak oil, RAND corporation, risk tolerance, Silicon Valley, statistical model, Upton Sinclair, uranium enrichment

McDonald’s, for example, has yogurt and salads on its menu. Yet, as we have seen, it has indefinitely delayed in coming through on its promise to change cooking oils. And it has a massive budget to promote energy-dense foods to children. Some food companies devote considerable resources to publicizing healthier new products, hoping perhaps to escape the tidal wave of unhealthy food marketing. Creating the appearance of corporate social responsibility is now a priority, but whether appearance is matched by substance is yet to be determined. As the food industry faces new challenges, we can revisit important lessons learned from the deadly history of another industry, tobacco. Tobacco companies asked for the same privileges food companies now demand, namely, that their promotions be taken at face value. Tobacco companies, like the food industry, claimed concern for public health, pledged cooperation with the government and health authorities, introduced filtered cigarettes they claimed were better for consumers, and assured the public they had the best interests of children at heart.

In a paper I wrote with Kenneth Warner, examining tobacco and food industry responses to health crises, we noted striking similarities in the scripts (playbook) used by the food and tobacco industries to still public concern and stall or prevent policies that would hurt business.23 The fact the food industry has a script is indisputable. Trade associations, some of the same public relations and advertising agencies formerly used by tobacco, scientists funded by the industry, and of course company spokespersons — all have their parts in the playbook. The key features are as follows: • Introduce products perceived to be healthier. • Publicize corporate social responsibility. • Fund programs focusing on physical activity. • Claim that lack of personal responsibility is at the heart of the population’s unhealthy diet. • Plead that personal freedom is at stake, hence government should not contemplate regulation or legislation. • Vilify critics with totalitarian language, characterizing them as the food police, leaders of a nanny state, even “food fascists,” and accuse them of desires to strip people of civil liberties

• State there are no good or bad foods, hence no food or food type (soft drinks, fast foods, and so on) should be targeted for change. • Dispute the science to plant doubt. The first three items in the playbook may have positive consequences, but vigilance is in order. The industry often introduces products that are made to sound healthy. Examples are snacks and drinks with “fruit” in the name. Cynicism about corporate social responsibility is also natural, given the tobacco experience. In 2000, Philip Morris spent $115 million on social causes such as the arts, helping flood victims, and supporting shelters for abuse victims. The company spent $150 million publicizing these acts. The remaining six parts of the script are likely to have negative consequences. The food industry notes that food is different from tobacco, in that people have to eat.


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Black Code: Inside the Battle for Cyberspace by Ronald J. Deibert

4chan, Any sufficiently advanced technology is indistinguishable from magic, Brian Krebs, call centre, citizen journalism, cloud computing, connected car, corporate social responsibility, crowdsourcing, cuban missile crisis, data acquisition, failed state, Firefox, global supply chain, global village, Google Hangouts, Hacker Ethic, informal economy, invention of writing, Iridium satellite, jimmy wales, John Markoff, Kibera, Kickstarter, knowledge economy, low earth orbit, Marshall McLuhan, MITM: man-in-the-middle, mobile money, mutually assured destruction, Naomi Klein, new economy, Occupy movement, Panopticon Jeremy Bentham, planetary scale, rent-seeking, Ronald Reagan, Ronald Reagan: Tear down this wall, Silicon Valley, Silicon Valley startup, Skype, smart grid, South China Sea, Steven Levy, Stuxnet, Ted Kaczynski, the medium is the message, Turing test, undersea cable, We are Anonymous. We are Legion, WikiLeaks, zero day

See Matthew Lasar, “Thai Censorship Critic Strikes Back at Snitch Web Host,” Ars Technica, August 29, 2011, http​://ar​stechni​ca.com​/​busines​s​/​2011​/08/​thai–diss​ide​nt-strikes-back-at-sni​tch-web-host/. The OpenNet Initiative has documented Thailand’s cyberspace controls in “Thailand,” in Access Contested, eds. Ronald Deibert et al., 271–298. 5 The Chinese government requested information: Rebecca MacKinnon discusses corporate social responsibility in the case of Yahoo! and Shi Tao in Shi Tao, Yahoo!, and the Lessons for Corporate Social Responsibility, Version 1.0, December 20, 2007, http​://r​convers​atio​n.bl​ogs.com​/Yaho​oShiT​aoLess​ons​.pdf. 6 numerous demands by governments to eavesdrop on users: Christopher Parsons investigates BlackBerry security, and government requests for its decryption keys, in “Decrypting Blackberry Security, Decentralizing the Future,” Technology, Thoughts, and Trinkets, November 29, 2010, http​://www.chris​topher-pa​rsons.com/​blog/tech​nology​/decryp​ting-black​berry-secu​rity-decent​ralizi​ng-the-fu​ture.

In The Master Switch: The Rise and Fall of Information Empires (New York: Random House, 2010), Tim Wu shows how all previous innovations of the information industry have followed a single path from being open and widely accessible to being dominated by a single corporation or cartel, and warns that the Internet may one day also follow this path of development. 3 Its vigorous opposition to the SOPA and PIPA bills: The Stop Online Piracy Act (SOPA) and the Protect IP Act (PIPA) aim to curtail online copyright violations by granting the U.S. government new tools and powers to block users’ access to websites that sell copyright-infringing or counterfeit goods. 4 “unprecedented synthesis of corporate and public spaces”: Steve Coll’s New Yorker essay “Leaving Facebookistan” (May 24, 2012) is available at, http:​//www.n​ewyor​ker.com​/online​/blo​gs​/​comment​/​201​2​/​05​/​leavi​ng-face​booki​stan.html. 5 social media are less like town squares: On private policing of online content, see Jillian C. York, “Policing Content in the Quasi-Public Sphere,” OpenNet Initiative, September 2010, http​://ope​nnet.n​et​/​polic​ing-con​tent-quasi-publ​ic-sphere. 6 they have had to balance the desire to penetrate markets: On corporate social responsibility, see John Palfrey and Jonathan Zittrain, “Reluctant Gatekeepers: Corporate Ethics on a Filtered Internet,” in Deibert et al., eds., Access Denied, 103–122. See also Colin M. Maclay, “Protecting Privacy and Expression Online: Can the Global Network Initiative Embrace the Character of the Net?,” in Access Controlled, 87–108; Ethan Zuckerman, “Intermediary Censorship,” in Access Controlled, 71–86; and Jonathan Zittrain, “Be Careful What You Ask For: Reconciling a Global Internet and Local Law,” in Who Rules the Net, eds.


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AI Superpowers: China, Silicon Valley, and the New World Order by Kai-Fu Lee

AI winter, Airbnb, Albert Einstein, algorithmic trading, artificial general intelligence, autonomous vehicles, barriers to entry, basic income, business cycle, cloud computing, commoditize, computer vision, corporate social responsibility, creative destruction, crony capitalism, Deng Xiaoping, deskilling, Donald Trump, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, full employment, future of work, gig economy, Google Chrome, happiness index / gross national happiness, if you build it, they will come, ImageNet competition, income inequality, informal economy, Internet of things, invention of the telegraph, Jeff Bezos, job automation, John Markoff, Kickstarter, knowledge worker, Lean Startup, low skilled workers, Lyft, mandatory minimum, Mark Zuckerberg, Menlo Park, minimum viable product, natural language processing, new economy, pattern recognition, pirate software, profit maximization, QR code, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, risk tolerance, Robert Mercer, Rodney Brooks, Rubik’s Cube, Sam Altman, Second Machine Age, self-driving car, sentiment analysis, sharing economy, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Skype, special economic zone, speech recognition, Stephen Hawking, Steve Jobs, strong AI, The Future of Employment, Travis Kalanick, Uber and Lyft, uber lyft, universal basic income, urban planning, Y Combinator

Blindly pursuing profits without any thought to social impact won’t just be morally dubious; it will be downright dangerous. Fink referenced automation and job retraining multiple times in his letter. As an investor with interests spanning the full breadth of the global economy, he sees that dealing with AI-induced displacement is not something that can be left entirely up to free markets. Instead, it is imperative that we reimagine and reinvigorate corporate social responsibility, impact investing, and social entrepreneurship. In the past, these were the kinds of things that businesspeople merely dabbled in when they had time and money to spare. Sure, they think, why not throw some money into a microfinance startup or buy some corporate carbon offsets so we can put out a happy press release touting it. But in the age of AI, we will need to seriously deepen our commitment to—and broaden our definition of—these activities.

The ecosystem will likely be staffed by older VC executives who are looking to make a difference, or possibly by younger VC types who are taking a “sabbatical” or doing “pro bono” work. They will bring along their keen instincts for picking entrepreneurs and building companies, and will put them to work on these linear service companies. The money behind the funds will likely come from governments looking to efficiently generate new jobs, as well as companies doing corporate social responsibility. Together, these players will create a unique ecosystem that is much more jobs-focused than pure philanthropy, much more impact-focused than pure venture capital. If we can pull together these different strands of socially conscious business, I believe we’ll be able to weave a new kind of employment safety net, all while building communities that foster love and compassion. BIG CHANGES AND BIG GOVERNMENT And yet, for all the power of the private market and the good intentions of social entrepreneurs, many people will still fall through the cracks.

See also facial recognition; image recognition; object recognition computing power, 9, 14, 56, 92 control problem, 142 copycat era and entrepreneurship, 22–50 AI in China and, 12, 15–16, 49–50, 52, 61 contrasting cultures and, 26–28, 43–44 copycat clockmaking, 29–30 early copycat internet companies, 30–33 gladiator metaphor, 24–26, 43 Kaixin001 vs. Renren, 42–43 lean startup methodology, 44–45 Ma, Jack, and, 34–37 search habit divergence and, 37–38 Silicon Valley and, 22–25, 28, 30–34, 39–40, 49 Wang Xing and, 22–24, 26, 31, 32–33, 42, 46–49 War of a Thousand Groupons, 45–49 Zhou Hongyi and, 40–42 corporate oligarchy, 171 corporate research and proprietary technology, 91–92 corporate social responsibility, 216–17 craftsmanship, 229 credit industry, 10–11, 110, 112–13, 116 crime disruption, 75 Cultural Revolution in China, 33 Cybersecurity Law in China, 125 D Daimler, 135 data age of, 14, 18 AI algorithms and, 14, 17, 56, 138 AI-rich countries and, 168–69 businesses and, 110–11 China’s abundance of, 15, 16, 17, 50, 55–56, 73, 79 collection of, and privacy, 124–25 deep learning and, 14, 17, 19–20, 56 internet companies and, 107–8 medical diagnosis and, 114 from mobile payments, 77 neural networks and, 9 pattern-finding in, 10 private, 124–25 self-driving cars and, 131–32, 133 structured, 111–12 Deep Blue, 4, 5 deep learning AI revolution and, 5, 12–13, 25, 92, 94, 143 business AI and, 111 data and, 14, 17, 19–20, 56 Google and, 92 history of, 6–10 implementation of, 12–14, 86 machine perceptual abilities and, 166 next, 91–92, 94 pattern-finding and, 10–11, 13, 166–67 rapid progress of, 161 DeepMind AI in United Kingdom and, 169 AlphaGo and, 2, 11 AlphaGo Zero and, 90 Google and, 2, 11, 92 iFlyTek compared to, 105 publishing by, 91 reinforcement learning and, 143 Deng Xiaoping, 28 desktop computers, 96 Dianping (Yelp copycat), 48, 49, 71–72 Didi four waves of AI and, 106 going heavy, 72–73 self-driving cars and, 131 services using model of, 213–14 Uber and, 40, 68–69, 79, 137 Didi Chuxing, 68–69, 70 discovery to implementation, transition from, 13, 15 Disneyland replica in China, 31 Disruptor (Zhou), 42 DJI, 130–31 domestic workers, 130 drones, autonomous, 130–31, 136, 167–68 dual-teacher model, 122 dystopians vs. utopians, 140–44 E EachNet, 35 Eat24, 72 eBay, 35–37, 39 economy and AI, 144–73 competition and, 106 deep-learning breakthroughs and, 4–5 general purpose technologies (GPTs), 148–55 global economic inequality, 146, 168–70, 172 intelligent vs. physical automation, 167–68 job loss, two kinds of, 162–63 job losses, bottom line, 164–65 job loss studies, 157–61 jobs and inequality crisis, 145–47 machine learning as driver, 25, 84, 91, 94–95 monopolies, 20, 96, 168–69, 170–71 psychological crisis, 5, 21, 147, 173–74 risk of replacement, 155–57 science-fiction visions and, 144–45 techno-optimists and the Luddite fallacy, 147–48 unemployment.


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No Such Thing as a Free Gift: The Gates Foundation and the Price of Philanthropy by Linsey McGoey

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, agricultural Revolution, American Legislative Exchange Council, bitcoin, Bob Geldof, cashless society, clean water, cognitive dissonance, collapse of Lehman Brothers, colonial rule, corporate governance, corporate social responsibility, crony capitalism, effective altruism, Etonian, financial innovation, Food sovereignty, Ford paid five dollars a day, germ theory of disease, hiring and firing, Howard Zinn, income inequality, income per capita, invisible hand, Jane Jacobs, Joseph Schumpeter, liquidationism / Banker’s doctrine / the Treasury view, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, meta analysis, meta-analysis, microcredit, Mitch Kapor, Mont Pelerin Society, Naomi Klein, obamacare, Peter Singer: altruism, Peter Thiel, plutocrats, Plutocrats, price mechanism, profit motive, Ralph Waldo Emerson, rent-seeking, road to serfdom, Ronald Reagan, school choice, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Slavoj Žižek, Steve Jobs, strikebreaker, The Wealth of Nations by Adam Smith, Thorstein Veblen, trickle-down economics, urban planning, wealth creators

And yet, is a gift from the Gates Foundation to a highly profitable company really the best use of money that, if it had been taxed as income rather than placed in a trust, could have benefited federal or state relief programmes? The cognitive dissonance I’ve described above – the continued insistence that new entrepreneurial movements are playing a revolutionary role in global poverty reduction despite the lack of clear evidence – is the truly distinctive aspect of social entrepreneurship. Unlike ideas of corporate social responsibility which were popular in the 1980s and 1990s – and which often had an aura of expiation about them, implying that socially oriented philanthropy was needed to make amends for corporate abuses – the new social investors believe that business success is evidence of social value. There is no longer any whiff of atonement or reparation for past corporate practices. The only sin is insufficient commercial expansion to untouched realms.

, Journal of Economic Literature, vol. 20 (1982), 1463–84. 8Christine Letts, William Ryan, and Allen Grossman, ‘Virtuous Capital: What Foundations Can Learn From Venture Capitalists’, Harvard Business Review (March–April, 1997), 36–44; see also Michael Moran, Private Foundations and Development Partnerships: American Philanthropy and Global Development Agendas (London: Routledge, 2013). 9Porter and Kramer, ‘Philanthropy’s New Agenda’, 121–30. 10Zunz, Philanthropy in America, 21. 11Michael E. Porter and Mark R. Kramer, ‘The Competitive Advantage of Corporate Philanthropy’, Harvard Business Review (December 2002), 5–16. 12Michael Porter and Mark Kramer, ‘Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review (December 2006). For a critical analysis of their argument, see Mark Aakhus and Michael Bzdak, ‘Revisiting the Role of “Shared Value” in the Business-Society Relationship’, Business & Professional Ethics Journal, vol. 31, no. 2 (2012), 231–49. 13Steve Denning, ‘Why “Shared Value” Can’t Fix Capitalism’, Forbes, 20 December 2011. See also David Cargill, ‘The General Electric Superfraud’, Harper’s (December 2009), 41–51. 14Aakhus and Bzdak, ‘Revisiting the Role of “Shared Value”’, 231–46.

., 160. 39Claire Provost, ‘$500m of US Food Aid Lost to Waste and Company Profit, Says Oxfam’ Guardian, 20 March 2012. 40See Barder’s blog post, ‘Wasting Food Aid’, 19 November 2012, owen. org. 41See Michael Robinson, ‘Tax Avoidance: Developing Countries Take on Multinationals’, BBC, 24 May 2013, bbc.co.uk. Work by Prem Sikka, Richard Murphy, and John Christensen offers most rigorous academic scholarship on tax avoidance and its social costs. See Prem Sikka, ‘Smoke and Mirrors: Corporate Social Responsibility and Tax Avoidance’, Accounting Forum, vol. 34 (2010), 153–68; John Christensen and Richard Murphy, ‘The Social Irresponsibility of Corporate Tax Avoidance: Taking CSR to the Bottom Line’, Development, vol. 47, no. 3 (2004), 37–44; and Nicholas Shaxson and John Christensen, The Finance Curse: How Oversized Financial Sectors Attack Democracy and Corrupt Economics (Margate: Commonwealth Publishing, 2013). 42Nikolaj Nielsen, ‘EU Multinationals Scamming Africa out of Billions, Tanzanian MP Says’, EU Observer, 31 October 2013, euobserver.com. 43See Joshua Keating, ‘Feud Watch: Dambiso Moyo Responds to Being Called “Evil” by Bill Gates’, Foreign Policy, 5 June 2011. 44Claire Provost, ‘Bill Gates and Dambisa Moyo Spat Obscures the Real Aid Debate’, Guardian, 31 May 2013.


pages: 390 words: 96,624

Consent of the Networked: The Worldwide Struggle for Internet Freedom by Rebecca MacKinnon

A Declaration of the Independence of Cyberspace, Bay Area Rapid Transit, Berlin Wall, business cycle, business intelligence, Cass Sunstein, Chelsea Manning, citizen journalism, cloud computing, cognitive dissonance, collective bargaining, conceptual framework, corporate social responsibility, Deng Xiaoping, digital Maoism, don't be evil, Filter Bubble, Firefox, future of journalism, illegal immigration, Jaron Lanier, Jeff Bezos, John Markoff, Joi Ito, Julian Assange, Mark Zuckerberg, Mikhail Gorbachev, MITM: man-in-the-middle, national security letter, online collectivism, Panopticon Jeremy Bentham, Parag Khanna, pre–internet, race to the bottom, Richard Stallman, Ronald Reagan, sharing economy, Silicon Valley, Silicon Valley startup, Skype, Steve Crocker, Steven Levy, WikiLeaks

Millions of companies worldwide have embraced this notion to varying degrees by building corporate social responsibility (CSR) and sustainability strategies into the way they run their businesses. A growing number of investors are rewarding companies for moving in this direction. By 2010 the amount of assets held by US investors in some form of socially responsible investment funds, which choose stocks based on at least some criteria for sustainable and socially responsible business practices, had reached $3.07 trillion out of a total of $25.2 trillion in the US investment marketplace. A range of UN agencies, financial institutions, and nongovernmental groups have developed systems to benchmark companies based on various criteria for corporate social responsibility or sustainability. Meanwhile, a growing number of multinationals are moving beyond CSR programs to identify untapped business opportunities around growing public demand for cleaner, healthier, and more sustainable lifestyles in ways that can become a source of competitive advantage and improve the world at the same time.

CHAPTER 9: DO NO EVIL 131 In April 2011, Mike Lazaridis, co-CEO of Research in Motion (RIM), maker of BlackBerry, sat down for an interview with the BBC’s Rory Cellan-Jones: Full video of the exchange is at http://news.bbc.co.uk/2/hi/programmes/click_online/9456798.stm (accessed June 27, 2011). 133 Shi Tao: For a detailed account and list of sources related to the Shi Tao case and Yahoo, see Human Rights Watch, Race to the Bottom: Corporate Complicity in Chinese Internet Censorship, 2006, www.hrw.org/reports/2006/china0806; and Rebecca MacKinnon, “Shi Tao, Yahoo!, and the Lessons for Corporate Social Responsibility,” working paper, December 27, 2007, http://rconversation.blogs.com/YahooShiTaoLessons.pdf. 136 the year Microsoft launched MSN Spaces in China, 2005, was also the year the Chinese blogosphere exploded: For a detailed account of the evolution of the Chinese blogosphere and government controls, see Rebecca MacKinnon, “Flatter World and Thicker Walls? Blogs, Censorship, and Civic Discourse in China,” in D.


pages: 772 words: 203,182

What Went Wrong: How the 1% Hijacked the American Middle Class . . . And What Other Countries Got Right by George R. Tyler

8-hour work day, active measures, activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, bank run, banking crisis, Basel III, Black Swan, blood diamonds, blue-collar work, Bolshevik threat, bonus culture, British Empire, business cycle, business process, buy and hold, capital controls, Carmen Reinhart, carried interest, cognitive dissonance, collateralized debt obligation, collective bargaining, commoditize, corporate governance, corporate personhood, corporate raider, corporate social responsibility, creative destruction, credit crunch, crony capitalism, crowdsourcing, currency manipulation / currency intervention, David Brooks, David Graeber, David Ricardo: comparative advantage, declining real wages, deindustrialization, Diane Coyle, disruptive innovation, Double Irish / Dutch Sandwich, eurozone crisis, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, George Akerlof, George Gilder, Gini coefficient, Gordon Gekko, hiring and firing, income inequality, invisible hand, job satisfaction, John Markoff, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, labor-force participation, laissez-faire capitalism, lake wobegon effect, light touch regulation, Long Term Capital Management, manufacturing employment, market clearing, market fundamentalism, Martin Wolf, minimum wage unemployment, mittelstand, moral hazard, Myron Scholes, Naomi Klein, Northern Rock, obamacare, offshore financial centre, Paul Samuelson, pension reform, performance metric, pirate software, plutocrats, Plutocrats, Ponzi scheme, precariat, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, Ralph Nader, rent-seeking, reshoring, Richard Thaler, rising living standards, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Sand Hill Road, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, Steve Ballmer, Steve Jobs, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transcontinental railway, transfer pricing, trickle-down economics, tulip mania, Tyler Cowen: Great Stagnation, union organizing, Upton Sinclair, upwardly mobile, women in the workforce, working poor, zero-sum game

Stavins, and Richard H.K. Vietor, among others. “Corporate Social Responsibility Through an Economic Lens,” Review of Environmental Economics and Policy, vol. 2, issue 2, Summer 2008. Archie B. Carroll and Kareem M. Shabana, “The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practices,” International Journal of Management Reviews, British Academy of Management, 2010. E. Merrick Dodd, Jr., “For Whom Are Corporate Managers Trustees?,” Harvard Law Review, vol. 45, no. 7, May 1932, 1145– 1163. Adolf A. Berle, “Corporate Powers as Powers in Trust,” Harvard Law Review, 1931, 44:1049–1074. H. Bowen, Social Responsibility of the Businessman (New York: Harper and Row, 1953). Archie B. Carroll, A History of Corporate Social Responsibility: Concepts and Practices. The Oxford Handbook of Corporate Social Responsibility, A.

,” Harvard Business Review, July–August 2011. 16 Larry Fauver and Michael E. Fuerst, “Does Good Corporate Governance Include Employee Representation? Evidence from German Corporate Boards,” Journal of Financial Economics vol. 82 (December 2006), 7. 17 Louis Uchitelle, “2 US Social Scientists Share Nobel in Economics,” New York Times, Oct. 13, 2009. 18 Forest L. Reinhardt, Robert N. Stavins, and Richard H.K. Vietor, “Corporate Social Responsibility Through an Economic Lens,” Review of Environmental Economics and Policy vol. 2, issue 2 (Summer 2008). 19 As reported by Stefan Stern, “Dean Poised to Shake Up Business,” Financial Times, May 10, 2010. 20 John Gapper, “Business Should Help the Heartland,” Financial Times, March 7, 2012. 21 Michael Skapinker, “Should MBA Students Do the Perp Walk?,” Financial Times, Sept. 20, 2010. 22 Francesco Guerrera, “GE Chief Attacks Executive ‘Greed,’” Financial Times, Dec. 9, 2009. 23 Robert Kuttner, The Squandering of America (New York: Vintage, 2008), 303.

The Oxford Handbook of Corporate Social Responsibility, A. Crane, A. McWillliams, D. Matten, J. Moon, and D. Siegel, editors (Oxford Handbooks online, Feb. 14, 2008). *Floyd Norris, “Inside GE, a Little Bit of Enron,” the New York Times, August 7, 2009. Batting 0-2, Fortune also named Enron America’s most innovative firm for six consecutive years from 1996–2001. Enron at the time was distributing more in dividends than spending on energy exploration, while collusively cheating West Coast electricity consumers. See also Niall Ferguson, The Ascent of Money (New York: Penguin, 2008), 169. *Bradbury later in 2011 initiated other steps to enhance the quality of Australian corporate governance, including reforms such as electronic voting to replace opaque manual voting and the practice of leaving votes at annual meetings open for several weeks to allow shareholders to mull over issues discussed at the meeting before voting.


pages: 382 words: 107,150

We Are All Fast-Food Workers Now: The Global Uprising Against Poverty Wages by Annelise Orleck

airport security, American Legislative Exchange Council, anti-communist, Bernie Sanders, big-box store, British Empire, call centre, Capital in the Twenty-First Century by Thomas Piketty, card file, clean water, collective bargaining, corporate social responsibility, deindustrialization, Deng Xiaoping, Donald Trump, Ferguson, Missouri, financial deregulation, Food sovereignty, gig economy, global supply chain, global value chain, immigration reform, indoor plumbing, Kickstarter, land reform, land tenure, Mahatma Gandhi, mass immigration, McJob, means of production, new economy, payday loans, precariat, race to the bottom, Rana Plaza, rent-seeking, ride hailing / ride sharing, road to serfdom, Ronald Reagan, Rosa Parks, shareholder value, Skype, special economic zone, Triangle Shirtwaist Factory, union organizing, War on Poverty, women in the workforce, working poor

Worker-written social responsibility codes, like the Bangladesh Fire and Safety Accord, have improved conditions, raised wages, and educated workers from Florida’s tomato fields to Bangladeshi garment shops, Texas construction sites, and electronics sweatshops worldwide. The global uprisings chronicled in this book, and the broad coalitions they have generated, have chipped and cracked the gospel of free trade. Increasingly, global companies have been forced to at least pay lip service to the idea of corporate social responsibility, if only because the public is now paying attention to worker deaths, child labor, and wage theft. And that damages global brands. The proliferation of corporate social responsibility codes since 2010 may be seen as mostly an attempt to repair companies’ public image, but that doesn’t mean they have done no good. Nike, Gap, H&M, and other global companies who have been targeted by protesters and boycotts have made real improvements in their supply chains in response to pressure.

For the first time, its workers had indoor plumbing, electricity, healthcare, and the chance to finish high school and attend college. Said one worker, “This has allowed us to dream.” Opening a unionized garment shop with a livable wage and decent conditions was unprecedented in the modern global apparel trade, says Scott Nova, founder and director of the Worker Rights Consortium. WRC, which investigates and certifies labor conditions worldwide, said that despite “a vast proliferation of ‘corporate social responsibility programs’ . . . no major apparel brand is doing what Knights Apparel is doing at the Alta Gracia factory.”19 Knights CEO Joe Bozich says personal tragedy moved him to create a new model for garment manufacturing. In one short period, he lost family members in their twenties and thirties, two of his children faced death, and he was diagnosed with multiple sclerosis. His grief and longing for hope fueled in him a “NEED to KNOW that what I’m doing for work every day is making a real difference in the lives of people our business touches.”20 Knights subsidized Alta Gracia for the first few years.


pages: 209 words: 63,649

The Purpose Economy: How Your Desire for Impact, Personal Growth and Community Is Changing the World by Aaron Hurst

Airbnb, Atul Gawande, barriers to entry, big-box store, business process, call centre, carbon footprint, citizen journalism, commoditize, corporate social responsibility, crowdsourcing, disintermediation, Elon Musk, Firefox, glass ceiling, greed is good, housing crisis, informal economy, Jane Jacobs, jimmy wales, Khan Academy, Kickstarter, Lean Startup, longitudinal study, means of production, Mitch Kapor, new economy, pattern recognition, Peter Singer: altruism, Peter Thiel, QR code, Ray Oldenburg, remote working, Ronald Reagan, selection bias, sharing economy, Silicon Valley, Silicon Valley startup, Steve Jobs, TaskRabbit, Tony Hsieh, too big to fail, underbanked, women in the workforce, young professional, Zipcar

A generation of Purpose Economy pioneers, like Whole Foods Market’s John Mackey and Virgin’s Richard Branson, are challenging others to follow their lead and to create new frameworks both to do well and to do good, which raises the bar for the business community and turns successful theories into movements. Richard Branson launched the B Team, a coalition aiming to go beyond traditional corporate social responsibility, and instead embrace what they call Plan B: “a plan that puts people and the planet alongside profit.” John Mackey and his team are promoting a new model for business he calls Conscious Capitalism, which inspired his book of the same name. Other large corporations have shown signs of new, purpose-focused frameworks as well. Some of the most traditional companies like Deloitte and Pepsi have started to put their toes in the water, as their leaders recognize that while they can’t change overnight, they can develop long-term visions to make purpose a priority.

…Millennials [are] confident, self-expressive, liberal, upbeat and open to change.”4 Millennials were not only born into a world of much more perceived affluence than prior generations, but also into one in which these values and aspirations were gaining traction. Inspiring examples of Purpose Economy achievements could be seen all around them. As they came of age, the environmental movement was going mainstream; pioneering social entrepreneurs were popularizing the idea of “doing well by doing good,” with forerunners like Paul Hawken of Smith & Hawken, Ben & Jerry’s, and Anita Roddick of the Body Shop popularizing a new ethic of corporate social responsibility. Meanwhile, celebrities like Matt Damon, Angelina Jolie, and George Clooney were popularizing a new ethic of individual engagement, making it cool to be socially engaged. The excesses of Wall Street, the dot-com boom and bust, and the mentality that “greed is good” began to change the scope of the American Dream for many Millennials coming of age. Even as they saw their parents working harder and spending less time at home in order to afford the big house, three cars, and all the accoutrements of success, they were mostly turned off by these status symbols and began to challenge existing paradigms of success.


The Orbital Perspective: Lessons in Seeing the Big Picture From a Journey of 71 Million Miles by Astronaut Ron Garan, Muhammad Yunus

Airbnb, barriers to entry, book scanning, Buckminster Fuller, clean water, corporate social responsibility, crowdsourcing, global village, Google Earth, Indoor air pollution, jimmy wales, low earth orbit, optical character recognition, ride hailing / ride sharing, shareholder value, Silicon Valley, Skype, smart transportation, Stephen Hawking, transaction costs, Turing test, Uber for X, web of trust

Poverty, inequality, corruption, and political instability multiply the negative effects of natural and human-caused disasters. Therefore, by reducing those social woes we greatly reduce the negative effects of disasters when they occur. Living in the worm’s eye view means putting the focus on the quarterly report, whereas the orbital perspective focuses on the twenty-year plan and beyond. The worm’s eye view treats corporate social responsibility as a tool to prop up a brand’s image, placing more emphasis on advertising social good than on contributing to that good. The orbital perspective makes the creation of social good a core business tenet throughout the entire organization, meaning the social, environmental, and ethical aspects of every business decision are carefully considered. This is done not only because the company has a responsibility to do so but also because in this age of transparency and openness, when the public has been empowered to scream from the digital mountaintops when corporations are not playing nice, not doing so will have a significant effect on the bottom line.

Our ability to solve our world’s greatest challenges is directly proportional to the extent that each of us, on a person-to-person basis, commits to contributing to progress and follows through on 166â•…  Co n c l u sio n that commitment, no matter how large or how small. The contribution a person makes, and his or her response to this call to action, is a personal decision. For me, it involves continuing to work in the development field and continuing to advocate for the pieces of the puzzle that I feel are critical, such as social business, social enterprise, and improved corporate social responsibility practices. It also involves looking for ways to apply the orbital perspective to existing and developing conflict resolution efforts. I am convinced that, rather than exclusively putting time and energy into projects I am personally involved with, I can make a much bigger impact by helping to propel the good that others are doing. To that end, I, along with an extremely talented group, have launched an effort called Impact CoLab.2 The goal of Impact CoLab is to use social media and digital marketing to create global grassroots movements to help propel and scale the good created by purpose-driven efforts around the world.


pages: 596 words: 163,682

The Third Pillar: How Markets and the State Leave the Community Behind by Raghuram Rajan

activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, airline deregulation, Albert Einstein, Andrei Shleifer, banking crisis, barriers to entry, basic income, battle of ideas, Bernie Sanders, blockchain, borderless world, Bretton Woods, British Empire, Build a better mousetrap, business cycle, business process, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, computer vision, conceptual framework, corporate governance, corporate raider, corporate social responsibility, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, currency manipulation / currency intervention, data acquisition, David Brooks, Deng Xiaoping, desegregation, deskilling, disruptive innovation, Donald Trump, Edward Glaeser, facts on the ground, financial innovation, financial repression, full employment, future of work, global supply chain, high net worth, housing crisis, illegal immigration, income inequality, industrial cluster, intangible asset, invention of the steam engine, invisible hand, Jaron Lanier, job automation, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, labor-force participation, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, means of production, moral hazard, Network effects, new economy, Nicholas Carr, obamacare, Productivity paradox, profit maximization, race to the bottom, Richard Thaler, Robert Bork, Robert Gordon, Ronald Reagan, Sam Peltzman, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, South China Sea, South Sea Bubble, Stanford marshmallow experiment, Steve Jobs, superstar cities, The Future of Employment, The Wealth of Nations by Adam Smith, trade liberalization, trade route, transaction costs, transfer pricing, Travis Kalanick, Tyler Cowen: Great Stagnation, universal basic income, Upton Sinclair, Walter Mischel, War on Poverty, women in the workforce, working-age population, World Values Survey, Yom Kippur War, zero-sum game

A CHANGE IN ATTITUDES TOWARD PROFIT AND INCOMES A stark example of the individualism that was being reasserted once more, partly as a reaction to the collectivist pressures that had dominated since the Depression, was the change in attitudes toward corporate profit and managerial incomes. In the postwar years of the expansionary state, the clamor in the United States for corporations to do more than simply focus on their business became louder. Influential commentators argued that corporations ought to work with the state to fulfill their corporate social responsibility, and some government officials in the 1960s even asked corporations to hold back price increases as their social contribution to the fight against inflation. Economists who were drawn into this debate on the proper role of the corporation started by noting that the owners of the corporation, the shareholders, were the residual claimants; they were paid only after fixed claimants such as suppliers, workers, and creditors were paid.

Friedman’s dictum had an “invisible hand” aspect to it—by maximizing the value of the only claim to the corporation that was not fixed, management would not just be maximizing shareholder value but also the corporation’s value, and thus the corporation’s contribution to society. Friedman firmly rejected any role for the corporation in helping the state do its job, for example, in containing inflation, or in undertaking charitable activities, especially if it impinged on its profitability. Friedman’s views had enormous influence, both in academia and outside. The notion that corporate social responsibility began and ended with the corporation maximizing shareholder value was very clear and was consistent with the growing ethic of individualism. Instead of being a sin, avarice was now a duty, in part because it could be spelled out clearly to firm management. With such straightforward marching orders, shareholders could evaluate performance without the noise, hypocrisy, and occasional self-aggrandizement introduced by social responsibility.

We should similarly be concerned that despite their productivity and advantages stemming from size and access, some of the largest corporations still try to alter the system to shield themselves from competition or taxes. Perhaps of greatest concern, if enough corporations follow Friedman and focused solely on profits, they undermine the private sector’s ability to be a political force for social good. Friedman was right that a fair amount of corporate social responsibility substitutes for actions the state should take, and panders to the specific charitable interests of a firm’s top managers. This is not beneficial for the firm. Yet the firm exists in the community; if there is a local earthquake and the state is underprepared, the firm cannot keep its earthmoving equipment off the roads, regardless of whether it will ever get paid. More substantially, Friedman enjoined corporations to take the rules of the game as given, which meant they ought not to protest if a government turned authoritarian or despoiled the environment.


Fortunes of Change: The Rise of the Liberal Rich and the Remaking of America by David Callahan

affirmative action, Albert Einstein, American Legislative Exchange Council, automated trading system, Bernie Sanders, Bonfire of the Vanities, carbon footprint, carried interest, clean water, corporate social responsibility, David Brooks, demographic transition, desegregation, don't be evil, Donald Trump, Douglas Engelbart, Douglas Engelbart, Edward Thorp, financial deregulation, financial independence, global village, Gordon Gekko, greed is good, high net worth, income inequality, Irwin Jacobs: Qualcomm, Jeff Bezos, John Markoff, Kickstarter, knowledge economy, knowledge worker, Marc Andreessen, Mark Zuckerberg, market fundamentalism, medical malpractice, mega-rich, Mitch Kapor, Naomi Klein, NetJets, new economy, offshore financial centre, Peter Thiel, plutocrats, Plutocrats, profit maximization, quantitative trading / quantitative finance, Ralph Nader, Renaissance Technologies, Richard Florida, Robert Bork, rolodex, Ronald Reagan, school vouchers, short selling, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, stem cell, Steve Ballmer, Steve Jobs, unpaid internship, Upton Sinclair, Vanguard fund, War on Poverty, working poor, World Values Survey

Pressures mounted on business as foreign competition increased and as growing ranks of stock c10.indd 217 5/11/10 6:25:46 AM 218 fortunes of change investors became more insistent that companies boost earnings every single quarter. For the corporate leaders of the 1980s, all incentives— economic, political, cultural—pointed to an embrace of Milton Friedman’s narrow dictates about profit. Yet even as this new orthodoxy rose to dominance, yanking the business world sharply to the right, a parallel trend was emerging— which in time would pull executives and wealthy entrepreneurs leftward: an emerging corporate social responsibility movement. Arnold Hiatt was among those who pioneered the new liberal business ethos as the CEO of Stride Rite, the successful children’s shoe company. Hiatt never imagined going into business as he came of age near Boston. He embraced liberal politics and looked down on business, majoring in history and planning to teach. But after he got engaged at the age of twenty-one, he realized that he would need to make more money to support a family.

Russell Mokhiber and Robert Weissman, “Hijacked: Business for Social Responsibility,” Sounding Circle, November 4, 2005. 6. Lynn Sharp Paine, Value Shift: Why Companies Must Merge Social and Financial Imperatives to Achieve Superior Performance (New York: McGraw Hill, 2003), x. 7. J. Figg, “Consumers Indict Irresponsible Companies,” Internal Auditor, December 22, 1999. 8. “The Impact of CSR on the General Public: A Nationwide Poll on Corporate Social Responsibility,” FGI Research, Inc., May 2007. 9. Bill Baue, “Two Sides of the Same Coin: Surveys Track Growth of Interest in CSR and SRI,” February 1, 2006, www.socialfunds.com/ news/article.cgi/1918.html. 10. Ibid. 11. “Corporate Equality Index: A Report Card on Gay, Lesbian, Bisexual and Transgender Equality in Corporate America,” Human Rights Campaign, September 2008. 12. Sergey Brin, “Our Position on California’s No on 8 Campaign,” Official Google Blog, September 26, 2008, http://googleblog.blogspot .com/2008/09/our-position-on-californias-no-on-8.html. 13.

See also presidential campaigns, 2004 knowledge economy cost of development, 30–31 cultural diversity, 25–26, 229 and global influence, 104, 117 government contracting, 236 in historically liberal places, 28–29, 178 increase in influence, 22, 66–67, 81, 104 role of creativity, 4, 28, 29, 228 wealth creation in the, 22–30, 81, 134, 144 5/11/10 6:28:39 AM index See also finance industry; hightech industry; media and entertainment industry Koch, Charles and David, 70, 138, 271, 272 Kovner, Bruce, 272 labor issues benefits, 219, 224, 228, 282 and children, 218, 226, 282 organized labor, 2, 150, 217, 233, 283, 284 profit sharing, 234, 264 wages, 256, 265, 280 workers’ rights, 226, 234, 274, 275 League of Conservation Voters, 66, 70–72, 77 Lear, Norman, 155, 176–177 Lewis, Jonathan and Peter, 100, 144, 149, 156, 158, 185, 187, 255 liberalism and academia, 4, 30, 71, 191 corporate social responsibility, 4, 213–234 focus not balanced among major issues, 47, 210, 273, 287 liberal places, 28–29, 192 Millennial generation, 171, 226, 229, 246, 257–258 overview, 3–5, 8–10, 30, 135, 280 in private schools, 4, 30, 71, 191, 235–250, 252 progressive infrastructure, 143, 151–165, 187, 260–261 libertarianism, 41, 169, 180, 272 lobbying, 50, 69, 70, 76–77, 85, 90, 138, 197–198, 215 lower class, 31, 48, 247, 280.


pages: 412 words: 113,782

Business Lessons From a Radical Industrialist by Ray C. Anderson

addicted to oil, Albert Einstein, banking crisis, business cycle, carbon footprint, centralized clearinghouse, clean water, cleantech, corporate social responsibility, Credit Default Swap, dematerialisation, distributed generation, energy security, Exxon Valdez, fear of failure, Gordon Gekko, greed is good, Indoor air pollution, Intergovernmental Panel on Climate Change (IPCC), intermodal, invisible hand, late fees, Mahatma Gandhi, market bubble, music of the spheres, Negawatt, new economy, oil shale / tar sands, oil shock, old-boy network, peak oil, renewable energy credits, shareholder value, Silicon Valley, six sigma, supply-chain management, urban renewal, Y2K

Every person, every nation, every corporation on earth depends on nature’s uninterrupted services for its survival. If nature does not make it through the transition from the first industrial revolution to the next, none of us will. That’s the bad news. But we have some good news to consider, too. The trends in ethical awareness, and the development of the concepts of sustainability and corporate social responsibility, are rising. Small-scale local businesses and giant multinational corporations alike are discovering that applying an ethical sustainability filter to everything they do can add to their top and bottom lines, because the marketplace is rewarding good behavior. What it comes down to is this. You and I happen to be alive at a critical juncture of those two opposite trends. We have the power to destroy this living earth, and that destruction is ongoing, even accelerating.

Columbia University 6. Cornell University 7. Duquesne University 8. Yale University 9. New York University 10. University of North Carolina at Chapel Hill The pace of this good trend is both positive and accelerating. A survey of ninety-one business schools released in October 2008 by the World Resources Institute and the Aspen Institute found that 54 percent require a course in ethics, corporate social responsibility, sustainability, or business and society. That’s up from just 34 percent in 2001. The Wharton School at the University of Pennsylvania has created its Institute for Global Environmental Leadership, and Interface holds a position on its Advisory Board. A lot of people, both inside the academic world and out in business and industry, are paying close attention to this trend. Anita Roper, the sustainability director for Alcoa, said, “Whether it’s called sustainability education or not, there is definitely a demand for the skills you get from courses based on sustainability concepts.”

The old, flawed view of reality holds to the belief that business exists to make a profit, when we know in our hearts that business makes a profit to exist, and it must surely exist for some higher purpose. What CEO really expects to stand before her or his Maker someday and talk about shareholder value? Or market share? Or the clever manipulation of a gullible public? A sustainable society will realize that done right, the triple bottom line of corporate social responsibility—economy, environment, social equity—can come together under the banner of authenticity to create a truly superior, totally ethical, financial bottom line—a better way to bigger and more legitimate profits, a better business model. The old, flawed view of reality holds that the environment is a subset of the economy, the pollution part. In our new enlightenment we acknowledge that the economy is the wholly owned subsidiary of the environment, to quote the late U.S. senator Gaylord Nelson, who was quoting the archbishop of Canterbury.


A People’s History of Computing in the United States by Joy Lisi Rankin

activist fund / activist shareholder / activist investor, Albert Einstein, Apple II, Bill Gates: Altair 8800, computer age, corporate social responsibility, Douglas Engelbart, Douglas Engelbart, Grace Hopper, Hacker Ethic, Howard Rheingold, Howard Zinn, Jeff Bezos, John Markoff, John von Neumann, Mark Zuckerberg, Menlo Park, Mother of all demos, Network effects, Norbert Wiener, pink-collar, profit motive, RAND corporation, Silicon Valley, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, Ted Nelson, the market place, urban planning, Whole Earth Catalog, wikimedia commons

The PLATO Quarterly Pro­gress Report for September–­November 1965 (Box 22, 292 Notes to Pages 230–236 CBI PLATO Collection) reported the gift of the CDC computer for arrival in 1966. 8. Donald D. Bushnell, “Computer-­Based Teaching Machines,” Journal of Educational Research 55, no. 9 (June 1, 1962): 528–531; Walter Dick, “The Development and Current Status of Computer-­Based Instruction,” American Educational Research Journal 2, no. 1 (January 1, 1965): 41–54, doi:10.2307/1162068. 9. Elisabeth Van Meer, “PLATO: From Computer-­Based Education to Corporate Social Responsibility,” Iterations: An Interdisciplinary Journal of Software History, November 5, 2003, http://­w ww​.­cbi​.­umn​.­edu​/­iterations​/­vanmeer​.­pdf. 10. Stewart A. Denenberg, “A Personal Evaluation of the PLATO System,” SIGCUE Outlook 12, no. 2 (1978): 8. 11. For more on why CDC employed so few Illinois courses, see Van Meer, “PLATO,” especially note 87. 12. Denenberg, “A Personal Evaluation of the PLATO System,” 10. 13.

Controversy cropped up around CDC and PLATO during the late 1970s and early 1980s. In 1980, church groups castigated CDC for its sales of PLATO to South Africa ­u nder apartheid. In 1982, the Minneapolis Tribune challenged the veracity of CDC’s advertising claims. In fact, in her article on PLATO, Elisabeth Van Meer argues that Norris attempted to market PLATO as a solution to social prob­lems, but that veneer of corporate social responsibility was criticized by activists, investors, and journalists through controversies about truth in advertising and supporting South African apartheid. Van Meer, “PLATO.” 15. ­People’s Computer Com­pany 1, no. 1 (October 1972), 1; all ellipses in original. 16. Circulation number from Fred Turner, From Counterculture to Cyberculture: Stewart Brand, the Whole Earth Network, and the Rise of Digital Utopianism (Chicago: University of Chicago Press, 2006), 113. 17.

Computers in Higher Education: Report of the President’s Science Advisory Committee. Washington, DC: The White House, 1967. University Communications. “Alma Mater Inducts Bitzer.” NC State News, March 23, 2011. https://­news​.­ncsu​.­edu ​/­2011​/­03​/­alma​-­mater​-­i nducts​ -­bitzer​/­. Urban, Wayne J., and Jennings L. Wagoner Jr. American Education: A History. 4th ed. New York: Routledge, 2009. Van Meer, Elisabeth. “PLATO: From Computer-­Based Education to Corporate Social Responsibility.” Iterations: An Interdisciplinary Journal of Software History, November 5, 2003. http://­w ww​.­cbi​.­u mn​.­e du ​/­iterations​ /­vanmeer​.­pdf. Wade, Patrick. “What­ever Happened to: Streaking at the University of Illinois.” News- ­Gazette, January 26, 2014. Archived at https://­perma​.­cc​/­75LT​ -­WG7M. 310 Bibliography Walden, David, and Tom Van Vleck, eds. The Compatible Time Sharing System (1961–1973). 50th Anniversary Commemorative Overview.


pages: 193 words: 11,060

Ethics in Investment Banking by John N. Reynolds, Edmund Newell

accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, banking crisis, collapse of Lehman Brothers, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, discounted cash flows, financial independence, index fund, invisible hand, light touch regulation, margin call, moral hazard, Nick Leeson, Northern Rock, quantitative easing, shareholder value, short selling, South Sea Bubble, stem cell, the market place, The Wealth of Nations by Adam Smith, too big to fail, zero-sum game

Arranging finance would consist of preparing presentations to potential funders and securing financing (normally debt, but this can also include additional sources of equity finance) Bait and switch: investment banking practice of marketing a (senior) team of bankers to a client and then replacing them with more junior bankers once a mandate has been awarded Big cap: a quoted company with a large market capitalisation or share value Business ethics: an ethical understanding of business, applying moral philosophical principles to commerce Capital markets: collective term for debt and equity markets; reference to the businesses within an investment bank that manage activity in the capital markets Casino capitalism: term used to describe high-risk investment banking activities with an asymmetric risk profile Categorical imperative: the concept, developed by Immanuel Kant, of absolute moral rules CDS: credit default swap, a form of financial insurance against the risk of default of a named corporation CEO: chief executive officer, the most senior executive officer in a corporation viii Glossary ix Church Investors’ Group (CIG): a group of the investment arms of a number of church denominations, mainly from the UK and Ireland Code of Ethics: an investment bank’s statement of its requirements for ethical behaviour on the part of its employees Compensation: investment bankers’ remuneration or pay Compliance: structures within an investment bank to ensure adherence to applicable regulation and legislation Conflict of interest: situation where an investment bank has conflicting duties or incentives Corporate debt: loan made to a company Credit rating: an assessment of the creditworthiness of a corporation or legal entity given by a credit rating agency CSR: Corporate Social Responsibility DCF: discounted cash flow Debtor in Possession finance (DIP finance): secured loan facility made to a company protected from its creditors under chapter 11 of the US bankruptcy code Derivative: a security created out of an underlying security (such as an equity or a bond), which can then be traded separately Dharma: personal religious duty, in Hinduism and Buddhism Discounted cash flow valuation: the sum of: • the net present value (NPV) of the cash flows of a company over a defined timescale (normally 10 years); • the NPV of the terminal value of the company (which may be the price at which it could be sold after 10 years); and • the existing net debt of the company Distribution: the marketing of securities Dodd–Frank Act: the Dodd–Frank Wall Street Reform and Consumer Protection Act Downgrade: a reduction in the recommended action to take with regard to an equity; or a reduction in the credit rating of a corporation Duty-based ethics: ethical values based on deontological concepts EBITDA: Earnings Before Interest Tax Depreciation and Amortisation EIAG: the Ethical Investment Advisory Group of the Church of England Encyclical: official letter from the Pope to bishops, priests, lay people and people of goodwill x Glossary Enterprise value (EV): value of an enterprise derived from the sum of its financing, including equity, debt and any other invested capital, which should equate to its DCF value ERM: the European Exchange Rate Mechanism, an EU currency system predating the introduction of the euro ETR: effective tax rate EV:EBITDA: ratio used to value a company Exit: sale of an investment Free-ride: economic term for gaining a benefit from another’s actions Financial adviser: see Adviser Glass–Steagall: the 1933 Act that required a separation of investment and retail banking in the US Golden Rule: do to others as you would have them do to you Hedge fund: an investment fund with a specific investment mandate and an incentivised fee structure (see 2 and 20) High yield bond: debt sold to institutional investors that is not secured (on the company’s assets or cash-flows) HMRC: Her Majesty’s Revenue and Customs, the UK’s authority for collecting taxes Hold-out value: value derived from the contractual right to be able to agree or veto changes Ijara: Shariah finance structure for project finance Implicit Government guarantee: belief that a company or sector benefits from the likelihood of Government intervention in the event of crisis, despite the fact that no formal arrangements are in place Initial Public Offering (IPO): the initial sale of equity securities of a company to public market investors Insider dealing: trading in shares in order to profit from possessing confidential information Insider trading: see Insider dealing Integrated bank: a bank offering both commercial and investment banking services Integrated investment bank: an investment bank that is both active in capital markets and provides advisory services Internal rate of return (IRR): the annualised return on equity invested.

Although investment banks claim to require ethical behaviour, empirical and anecdotal evidence very much contradicts this. Existing investment banking Codes of Ethics are, in practical terms, ineffective, and serve in the main to protect shareholders from abuse by employees, rather than protecting clients. Ethics and ethical behaviour should be inculcated throughout an investment bank, and not left to the realms of Compliance or Corporate Social Responsibility (CSR) departments, or as the prerogative of senior executives, often at a significant distance from front-line bankers. Behaving ethically could result in an investment bank forsaking opportunities to take on profitable business. For example, an investment bank might decline to lead the Initial Public Offering (IPO) of a company if it did not “believe” in its long-term prospects, even if there was sufficient market demand to complete an initial offering.


pages: 407 words: 121,458

Confessions of an Eco-Sinner: Tracking Down the Sources of My Stuff by Fred Pearce

additive manufacturing, air freight, Berlin Wall, blood diamonds, British Empire, car-free, carbon footprint, clean water, congestion charging, corporate social responsibility, credit crunch, demographic transition, Fall of the Berlin Wall, food miles, ghettoisation, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, Kibera, Kickstarter, mass immigration, megacity, Nelson Mandela, new economy, oil shale / tar sands, out of africa, peak oil, Pearl River Delta, profit motive, race to the bottom, Shenzhen was a fishing village, Silicon Valley, South China Sea, Steve Jobs, the built environment, urban planning, urban sprawl, women in the workforce

That is unethical.’ The system, she said, is run ‘so that everyone down the line is well enough off to have a nice house and a car – except for the women who make the clothes. Sometimes I even feel sympathy with Bangladeshi manufacturers, the way they are leant on by the Western brands.’ Soon after, I spoke to a top manager at one of the main garment makers. She said, ‘These big-brand companies have corporate social responsibility departments, but the people who place the orders don’t talk to them. We see it here all the time. The CSR people come in and stipulate basic standards. Then the next day the buyers come in and drive down prices and bring forward deadlines. These two things are usually completely incompatible. While the buyers are in charge, all this talk from the CSR people is just corporate window dressing, however well-meaning the people involved might be.’

I flew out of Dar feeling that my footprint was, for once, positive. 27 Unexpected Heroes: The Queen of Trash and Other Chinese Titans of Recycling CHENG SHENGCHAN IS an ebullient self-made man with curious habits, like rolling his trousers above his knees while making tea for his guests in his office. He runs what has a reasonable claim to be the greenest, most socially inclusive and ‘sustainable’ paper mill in the world. And the much-derided paper recyclers of Britain can claim a significant part in his success. Here is his checklist of achievement. It is enough to make any European executive in charge of corporate social responsibility green with envy. ‘My mill runs entirely on waste paper,’ he told me as he served tea. ‘It is fuelled entirely on biofuels; its labour force is made up of the disabled; and not a drop of effluent leaves the site.’ Cheng took over the loss-making CXXR United Paper Mill, outside the southern Chinese city of Xiamen, when the state decided to shut it down in 1994. He was a manager back then, though he says now that he had no control, no supplies of raw materials and few markets.

But I do believe we still have the ability, and maybe the foresight, to mend our ways. Politicians talk, apparently seriously, about reducing greenhouse gas emissions by 80 per cent and more by mid-century. Global corporations are responding to real market pressures when they declare that they are going carbonneutral and selling organic and fairly traded and environmentally certified produce. They have corporate social responsibility departments because they need them. There may be some cynicism involved, some greenwash. But I do believe that they increasingly recognize that these are jobs that have to be done. There will be false dawns and dead ends. Maybe putting a tiny wind turbine on your roof is a silly idea. Maybe it makes more sense to incinerate your old newspaper and make some energy than to drive it across the country for recycling.


pages: 258 words: 74,942

Company of One: Why Staying Small Is the Next Big Thing for Business by Paul Jarvis

Airbnb, big-box store, Cal Newport, call centre, corporate social responsibility, David Heinemeier Hansson, effective altruism, Elon Musk, en.wikipedia.org, endowment effect, follow your passion, gender pay gap, glass ceiling, Inbox Zero, index fund, job automation, Kickstarter, Lyft, Mark Zuckerberg, Naomi Klein, passive investing, Paul Graham, pets.com, remote working, Results Only Work Environment, ride hailing / ride sharing, Ruby on Rails, side project, Silicon Valley, Skype, Snapchat, software as a service, Steve Jobs, supply-chain management, Tim Cook: Apple, too big to fail, uber lyft, web application, Y Combinator, Y2K

Determining the Right Mind-Set 78 B-corporation: “Certified B Corporations,” B Lab, accessed October 4, 2017, https://www.bcorporation.net/. 78risk of slowing sales: “Seventh Generation Staffers Line Dry Their Laundry,” Seventh Generation, Burlington, VT, July 1, 2010, https://www.seventhgeneration.com/nurture-nature/seventh-generation-staffers-line-dry-their-laundry. 78$250 million in revenue: Beth Kowitt, “Seventh Generation CEO: Here’s How the Unilever Deal Went Down,” Fortune, September 20, 2016, http://fortune.com/2016/09/20/seventh-generation-unilever-deal/. 79 Branson summed up purpose: Richard Branson, “5 Ways to Build a Project with Purpose,” Virgin, July 16, 2014, https://www.virgin.com/richard-branson/5-ways-build-project-purpose. 81 positive economic impacts for companies: Michael E. Porter and Mark R. Kramer, “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility,” Harvard Business Review, December 2006, https://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility. 81 at the University of Quebec: Robert J. Vallerand, “On the Psychology of Passion: In Search of What Makes People’s Lives Most Worth Living,” January 2007, https://www.researchgate.net/publication/228347175_On_the_Psychology_of_Passion_In_Search_of_What_Makes_People’s_Lives_Most_Worth_Living. 82 following your passion is fundamentally flawed: Cal Newport, So Good They Can’t Ignore You: Why Skills Trump Passion in the Quest for Work You Love (New York: Grand Central Publishing, 2012), xviii.


pages: 555 words: 80,635

Open: The Progressive Case for Free Trade, Immigration, and Global Capital by Kimberly Clausing

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, active measures, Affordable Care Act / Obamacare, agricultural Revolution, battle of ideas, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, corporate social responsibility, creative destruction, currency manipulation / currency intervention, David Ricardo: comparative advantage, Donald Trump, floating exchange rates, full employment, gig economy, global supply chain, global value chain, guest worker program, illegal immigration, immigration reform, income inequality, index fund, investor state dispute settlement, knowledge worker, labor-force participation, low skilled workers, Lyft, manufacturing employment, Mark Zuckerberg, meta analysis, meta-analysis, offshore financial centre, open economy, Paul Samuelson, profit motive, purchasing power parity, race to the bottom, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transfer pricing, uber lyft, winner-take-all economy, working-age population, zero-sum game

If it is embarrassing to report 90 percent of global profits in island jurisdictions, then don’t.3 Under the tax proposals of Chapters 7 and 10, there would be far less of an incentive to move profits offshore artificially. However, even if such reforms are desirable, they may not come to pass. In the meantime, shining sunlight on companies’ global operations can provide valuable benefits through several mechanisms. First, corporate social responsibility motives will be important. Companies care about their reputations, in part because both customers and investors care about company behavior. The sunshine tax report will incentivize companies to avoid taking particularly aggressive tax positions, better aligning their economic interests with those of the societies in which they operate. GE, Dodgeball Champion The closest playground equivalent to corporate taxation is dodgeball, and its savvy champion is General Electric.

See Google American Airlines, 283 American dream, 4, 178, 304n1 Antidumping, 315n2 Antitrust laws, 153–154, 162–164, 283–286; and European Union, 153–154 Apple, 61–62, 145, 147, 167–168 AT&T, 284, 286 Autor, David, 77 Bargaining, 42–44 Bartlett, Bruce, 334n2 Base Erosion and Profit Shifting (BEPS), 159, 226–227, 279 Bell Laboratories, 284 Bernanke, Ben, 151 Bilateral trade balances, 135 Birnbaum, Jeffrey, 332n20 Boeing, 60–61, 144, 153 Borjas, George, 194 Bracero Program, 193, 196 Brain drain, 206–207 Brexit, 160, 298 British Columbia carbon tax, 275 Budget deficits, 241–242 Buffett, Warren, 246, 249 Burman, Leonard, 247 Bush Administration, 274 Business tax reform, 168–174, 250–252, 275–278 CAFE standards, 255–256 Campaign finance reform, 292 Canada: free trade area, 96; immigration policy, 185–188 Capital markets, 120 Capital taxation: rationale for, 250; tax rates, 248; trends, 46 Carbon tax, 162, 254–257; in British Columbia, 275 Card, David, 194 Center for Automotive Research, 84 CEO pay, 43–44, 152 Chetty, Raj, equality of opportunity project, 303n1 Child labor, 162 China: accession to WTO, 102; currency value, 127; economic growth, 63–68; infrastructure spending, 237; One Belt, One Road initiative, 100, 237, 298; relations with United States, 104; trade surplus, 12, 123, 144 China shock: and 2016 election, 76–79; size of, 76–78 Clemens, Michael, 191, 194, 196–197 Clinton, Hillary, 78 Clinton Administration, 78, 103, 274 Columbia Sportswear, 272 Comcast, 285 Community adjustment, 232 Community college, 230–231, 235 Comparative advantage, 68–72 Competitiveness, 68–72, 164, 166–168, 269 Comprehensive Economic and Trade Agreement (CETA) between EU and Canada, 161 Consumer Financial Protection Bureau (CFPB), 230–231 Corporate inversions, 165–166 Corporate profits, 39–42, 90–91, 168 Corporate savings, 40–41, 151 Corporate social responsibility, 277–278 Corporate tax rates, 155–156 Costco, 281 Country by country reporting, 278–279 Creative destruction, 73 Currency Movements, 124–127, 133 Current account deficit. See Trade deficit Debt, 241–242 Demographic change, 241 Dollar, David, 63 Dorn, David, 77 DREAM act, 214 Drucker, Jesse, 319n27 Earned Income Tax Credit, 112, 228, 243–246 East India Company, 138 Economic inequality: and economic growth, 16–18; and tax system, 26, 44–46, 243–246; trends, 16–19 Economic insecurity, 23–25 Economic sanctions, 55–56 Education funding, 234–235 Estate tax, 253–254 Euro, 314n11 European Union, 102, 104, 298 Excess Profits.


pages: 290 words: 76,216

What's Wrong with Economics? by Robert Skidelsky

"Robert Solow", additive manufacturing, agricultural Revolution, Black Swan, Bretton Woods, business cycle, Cass Sunstein, central bank independence, cognitive bias, conceptual framework, Corn Laws, corporate social responsibility, correlation does not imply causation, creative destruction, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, disruptive innovation, Donald Trump, full employment, George Akerlof, George Santayana, global supply chain, global village, Gunnar Myrdal, happiness index / gross national happiness, hindsight bias, Hyman Minsky, income inequality, index fund, inflation targeting, information asymmetry, Internet Archive, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, knowledge economy, labour market flexibility, loss aversion, Mark Zuckerberg, market clearing, market friction, market fundamentalism, Martin Wolf, means of production, moral hazard, paradox of thrift, Pareto efficiency, Paul Samuelson, Philip Mirowski, precariat, price anchoring, principal–agent problem, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, shareholder value, Silicon Valley, Simon Kuznets, survivorship bias, technoutopianism, The Chicago School, The Market for Lemons, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, transaction costs, transfer pricing, Vilfredo Pareto, Washington Consensus, Wolfgang Streeck, zero-sum game

For example, John Rawls’s (1921–2002) principle that inequality is justified to the extent that it improves the position of the least well-off owes something to Locke’s idea that property ownership requires a moral justification. Outside mainstream economics there has been a revival of interest in the question of the moral responsibilities of ownership. Should companies have moral responsibilities in addition to their legal responsibility to maximise shareholder value? Ideas of ‘corporate social responsibility’ and ‘stakeholder’ capitalism are fruits of such discussion, though ‘corporate social responsibility’ is largely big business propaganda. There have been studies showing that firms which take seriously their responsibilities to their employees, suppliers, and neighbourhoods achieve better ‘bottom lines’ than companies which attend only to the interests of their owners and senior managers. But the concept of property as ‘stewardship’ has hardly an echo in mainstream economics, because it challenges not just the narrow concept of property rights but the deeply ingrained idea that markets in land, capital, and labour are, or can be made, perfectly ‘just’, in the sense of all producers being paid what their products are worth to the consumer.15 The moral debate is not one-sided.


pages: 237 words: 72,716

The Inequality Puzzle: European and US Leaders Discuss Rising Income Inequality by Roland Berger, David Grusky, Tobias Raffel, Geoffrey Samuels, Chris Wimer

Branko Milanovic, business cycle, Celtic Tiger, collective bargaining, corporate governance, corporate social responsibility, double entry bookkeeping, equal pay for equal work, fear of failure, financial innovation, full employment, Gini coefficient, hiring and firing, illegal immigration, income inequality, invisible hand, Long Term Capital Management, microcredit, offshore financial centre, principal–agent problem, profit maximization, rent-seeking, shareholder value, Silicon Valley, Silicon Valley startup, time value of money, very high income

This does not sit at all well with ideas of fairness and social mobility. What practical actions, if any, should the private sector undertake to address rising inequality? A business cannot be successful in the long term if it does not act responsibly toward the environment and society. That is why sustainability is an integral part of BASF’s strategy. We have initiated a number of projects in the area of corporate social responsibility that could be broadly construed as efforts to improve access to education, health, and business opportunities. One example is a social business joint venture that we have established in Bangladesh with the Grameen Healthcare Trust together with Nobel Laureate Muhammad Yunus. The aim is to offer affordable solutions to meet the basic needs of the poor in Bangladesh. These solutions – sachets of vitamins and micronutrients, and impregnated mosquito nets – tie in with BASF’s product portfolio.

Taking issue with the goal that everyone should get a college degree, especially from a prominent university, he advocates more support for community colleges and vocational training to give high school graduates the skills to find jobs. He also recommends more economicallyfocused Federal funding and “the government should phase out Federal loans and support of higher education, except in the scientific disciplines where it can be justified on the basis of national security and economic wealth generation.” 170 T. Raffel and G. Samuels Mentoring Corporate Social Responsibility’s reputation has suffered the fate of many buzz words, more often honored in the breach, but some corporate mentoring programs have demonstrated effectiveness in reaching out to disadvantaged students of ability. “Money is not everything,” notes Ackermann, “you can and should, of course, invest time and talent, for example, in mentoring programs.” In 2005, BASF was a founding member of the Knowledge Factory that has expanded to sixty-five German companies supporting educational projects at the preschool, kindergarten, and elementary levels.


pages: 293 words: 81,183

Doing Good Better: How Effective Altruism Can Help You Make a Difference by William MacAskill

barriers to entry, basic income, Black Swan, Branko Milanovic, Cal Newport, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, corporate social responsibility, correlation does not imply causation, Daniel Kahneman / Amos Tversky, David Brooks, effective altruism, en.wikipedia.org, end world poverty, experimental subject, follow your passion, food miles, immigration reform, income inequality, index fund, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, job automation, job satisfaction, Lean Startup, M-Pesa, mass immigration, meta analysis, meta-analysis, microcredit, Nate Silver, Peter Singer: altruism, purchasing power parity, quantitative trading / quantitative finance, randomized controlled trial, self-driving car, Skype, Stanislav Petrov, Steve Jobs, Steve Wozniak, Steven Pinker, The Future of Employment, The Wealth of Nations by Adam Smith, universal basic income, women in the workforce

It exploits the fact that even typical workers in developed countries are among the top income earners in the world and that there are some charities that do huge amounts to help the world’s poorest people for relatively little money. Moreover, unlike the conventional “ethical” careers guidance, earning to give is a path that’s open to everyone. The conventional advice is that if you want to make a difference you should work in the nonprofit or public sector or work in corporate social responsibility. But many people struggle to get a job, let alone find a job in a specific sector. However, many more people have the option to work overtime in order to earn more, or to work harder in order to get a raise or promotion, or to move toward a higher-paying career, or just to live on less. By doing this, and being smart about where you give, almost anyone in rich countries can do a tremendous amount to help others

This takes us to the next two aspects of the career effectiveness framework. Impact on the job The second issue in our framework is how much impact you’ll have within the job. Typical advice on making a difference through your career emphasizes this factor heavily. The most obvious way to do this is to work in the social sector: social-impact-focused-careers websites list job opportunities at charities, or in corporate social responsibility. However, like “following your passion,” this advice can be misleading. First, to make a difference in the social sector, the organization you work for must be effective. If your charity job was at PlayPumps International, then, no matter how enthusiastically or efficiently you worked, you’d have made very little positive impact. It’s difficult to assess how effective an organization is, but the frameworks given in the chapters on effective charities and effective causes can help you, as can the key questions described in the first part of this book.


pages: 301 words: 88,082

The Great Tax Robbery: How Britain Became a Tax Haven for Fat Cats and Big Business by Richard Brooks

accounting loophole / creative accounting, bank run, Big bang: deregulation of the City of London, bonus culture, Bretton Woods, carried interest, Celtic Tiger, collateralized debt obligation, commoditize, Corn Laws, corporate social responsibility, crony capitalism, Double Irish / Dutch Sandwich, financial deregulation, haute couture, intangible asset, interest rate swap, Jarndyce and Jarndyce, mega-rich, Northern Rock, offshore financial centre, race to the bottom, shareholder value, short selling, supply-chain management, The Chicago School, The Wealth of Nations by Adam Smith, transfer pricing

So Tucker established a tax-exempt charity, Home and Overseas Voluntary Aid Services, which would play the tax avoider’s stooge by paying out the lump sum and receiving the annuity payments. While millions flowed through the scheme, donations to the charity barely exceeded £100, and all Tucker could claim in the way of good works was: ‘We put in a bit of money ourselves to finance the odd children’s outing.’ The polished ‘corporate social responsibility’ PR machines used by today’s tax avoiders were some years off. Wheezes like this were too hot to handle even for Andersens, a firm that thirty years before it collapsed in the Enron scandal was already at the racier end of the accountancy business. Tucker had overstepped a certain professional mark; rather than merely advising clients on what tax ‘opportunities’ there might be out there, he was ‘marketing’ tax avoidance schemes to as many takers as possible.

It had recently ‘won the National Award for our work with the disabled as an employer in 2008’ and ‘initiated the country’s largest afforestation project having completed 1100 hectares of mangrove plantations … the Shell Foundation has invested over USD 10 million across four programs that have a footprint across nine states in India and impact more than 700,000 households.’ Like many others, Shell was happy to fill my inbox with claims of corporate social responsibility, but not hard facts and figures about tax arrangements. And I couldn’t help feeling that, by paying no corporate tax but doing some good deeds, the world’s second biggest company was saying politely but firmly: ‘We’ll decide how we contribute to the societies we operate in, thank you very much, not their elected governments. And we’ll make sure we squeeze the last drop of PR advantage out of every penny we do spend.’


pages: 310 words: 91,151

Leaving Microsoft to Change the World: An Entrepreneur's Odyssey to Educate the World's Children by John Wood

airport security, British Empire, call centre, clean water, corporate social responsibility, Deng Xiaoping, Donald Trump, fear of failure, glass ceiling, high net worth, income per capita, Jeff Bezos, Johann Wolfgang von Goethe, Marc Andreessen, microcredit, Own Your Own Home, random walk, rolodex, shareholder value, Silicon Valley, Skype, Steve Ballmer

It would be like Exxon buying a gas-guzzling vehicle for a poor family, in hopes that they’d fill the tank every week. Our critics are having a field day by saying that we’re not a good Chinese corporate citizen. If we want to prove otherwise, we should think about doing something for seniors that does not involve computers. Can we improve their home? Serve them a hot and nutritious meal? Take them out on field trips?” My ideas were met with silence. To the meeting’s participants, corporate social responsibility was only relevant if it helped the business in the long term. I stopped arguing and reminded myself that philanthropy that extended beyond one’s family was still a relatively new concept in China. These young employees had been trained to act like capitalists. So it would be hypocritical of me to criticize them. Nevertheless, I continued to daydream about what it would be like the day I ran my own show and could relentlessly focus on helping those most in need.

Spotting Dinesh among the crowd, I startle him with a cry of “Bai!”—Nepali for younger brother. He happily shakes my hand, welcomes me back to Nepal, and in his usual “all-business” mode quickly hustles me through the crowd of porters offering their services. Once the car is rolling through the chaotic streets of Kathmandu, Dinesh and I begin exchanging news both big and small—my recent speech in Bangkok on corporate social responsibility, the current cease-fire between the Maoist rebels and Nepal’s government, the rumors of a potential coup d’état that are being taken so seriously that Nepal’s king is rumored to be returning early from a foreign holiday, Dinesh’s family, and our dinner plans at my favorite momo (steamed dumpling) restaurant. Then he springs a surprise on me. “This Friday will be a big day.” I remind him that I’m well aware of this fact, and that’s why I am here.


Refuge: Transforming a Broken Refugee System by Alexander Betts, Paul Collier

Alvin Roth, anti-communist, centre right, charter city, corporate social responsibility, Donald Trump, failed state, Filter Bubble, global supply chain, informal economy, Kibera, mass immigration, megacity, mobile money, Mohammed Bouazizi, mutually assured destruction, open borders, Peace of Westphalia, peer-to-peer, race to the bottom, randomized controlled trial, rising living standards, risk/return, school choice, special economic zone, structural adjustment programs, trade route, urban planning, zero-sum game

They are a potential source of labour. Syrians, for example, are often skilled and well-educated, and share a common language with Jordanians. Crucially, the international recognition of a regional refugee crisis creates a potential opportunity for the government of Jordan to appeal for the relocation of a number of multinational corporations to Jordan for reasons that partly connect to corporate social responsibility and partly to core business interests. The crisis also offers a basis on which the government could appeal to other governments – in say Europe or North America – to provide trade concessions that improve access to their markets. A range of external actors might support the creation of such economic zones for refugees. For example, EU trade concessions, which are conditional upon the employment of and right to work for refugees, might be available to businesses operating within the designated areas.

The UK government explored possibilities for World Bank involvement in financing relevant infrastructure and for EU trade concessions for exports emerging from the economic-zone pilot. In November 2015 we ourselves went public with the idea, with an article aimed at both the public-policy and business communities in the influential American policy journal Foreign Affairs. In January 2016 at Davos, the forum for global business, Queen Rania acclimatized CEOs to the idea that corporate social responsibility to refugees did not mean diverting some profits into sending blankets, it meant putting their core skills to use by integrating refugees into global supply chains. In the context of emerging business interest in solutions to the refugee crisis, a range of manufacturing company CEOs began to take notice. The formal launch of the pilot project came as part of the London pledging conference on Syrian refugees on 4 February 2016.


pages: 288 words: 90,349

The Challenge for Africa by Wangari Maathai

Berlin Wall, Bob Geldof, carbon footprint, carbon-based life, clean water, colonial rule, corporate social responsibility, deliberate practice, F. W. de Klerk, failed state, Fall of the Berlin Wall, Intergovernmental Panel on Climate Change (IPCC), Live Aid, Mahatma Gandhi, Mikhail Gorbachev, Nelson Mandela, Scramble for Africa, sovereign wealth fund, structural adjustment programs, sustainable-tourism, trade liberalization, transatlantic slave trade, urban planning, War on Poverty, Washington Consensus

According to the U.S.-based Association for Tropical Biology and Conservation, the forests found in the fifteen countries that are part of the Coalition for Rainforest Nations could have a value in carbon credits of over $1 trillion. Private companies have an opportunity to act as good global citizens and help existing forests by buying credits to offset their carbon emissions as part of their corporate social responsibility policies. Of course, it is vital to make sure that the revenues raised by such carbon concessions in the Congo Basin are managed transparently, and that the benefits are shared equitably, particularly with poor communities who depend on the forest. Scientists estimate that the clearing of forests throughout the world currently amounts to about 20 percent of total greenhouse gas emissions.

., pp. 140-46. 32 “Norway: An Oil Nation,” see the government of Norway's website at www.norway.org.uk/policy/trade/oil/oil.htm (accessed September 2008). 33 UN Human Development Report 2007/2008, p. 229. 34 “Norway: Economy,” Wikipedia. 35 Darren Foster, “Nigeria: The Corruption of Oil,” Frontline, May 1, 2007. 36 “Nokia and Nokia Siemens Networks Prepare for Growth of Tele communications in Africa at CTO Roundtable,” Corporate Social Responsibility Newswire, May 29, 2007, www.csrwire.com/News/8692.html (accessed September 2008). 37 “Regional Economic Outlook, Sub-Saharan Africa, April 2008,” International Monetary Fund. 38 “On the Frontier of Finance,” Economist, November 15, 2007. 39 See Collier, The Bottom Billion. 40 See Cheru, African Renaissance, p. 127. For an article on NEPAD's achievements and challenges, most notably the call for strong leadership, see Wiseman Nkuhlu, “NEPAD: A Look at Seven Years of Achievement—and the Challenges on the Way Forward,” January 23, 2008, www.africafiles.org/article.asp?


pages: 98 words: 25,753

Ethics of Big Data: Balancing Risk and Innovation by Kord Davis, Doug Patterson

4chan, business process, corporate social responsibility, crowdsourcing, en.wikipedia.org, longitudinal study, Mahatma Gandhi, Mark Zuckerberg, Netflix Prize, Occupy movement, performance metric, Robert Bork, side project, smart grid, urban planning

Only 2 of 50 policies stated any recognizably moral reason for having a privacy policy at all. Most polices said nothing, while a minority gave the nonmoral reason that people care about privacy and the company values their business. This is important because it directly raises the question of how to close the gaps in data-driven business models to structure their activities in alignment with moral motives. Those who believe in “corporate social responsibility” would say there are recognizably moral reasons for business to act in alignment with their values. Others, such as Friedman famously (or perhaps infamously), have stated that corporations have responsibilities only to their shareholders—the implication being that any legal action that generates a profit is justified if it results in returning value to shareholders (http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html).


pages: 578 words: 168,350

Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life in Organisms, Cities, Economies, and Companies by Geoffrey West

Alfred Russel Wallace, Anton Chekhov, Benoit Mandelbrot, Black Swan, British Empire, butterfly effect, carbon footprint, Cesare Marchetti: Marchetti’s constant, clean water, complexity theory, computer age, conceptual framework, continuous integration, corporate social responsibility, correlation does not imply causation, creative destruction, dark matter, Deng Xiaoping, double helix, Edward Glaeser, endogenous growth, Ernest Rutherford, first square of the chessboard, first square of the chessboard / second half of the chessboard, Frank Gehry, Geoffrey West, Santa Fe Institute, Guggenheim Bilbao, housing crisis, Index librorum prohibitorum, invention of agriculture, invention of the telephone, Isaac Newton, Jane Jacobs, Jeff Bezos, Johann Wolfgang von Goethe, John von Neumann, Kenneth Arrow, laissez-faire capitalism, life extension, Mahatma Gandhi, mandelbrot fractal, Marchetti’s constant, Masdar, megacity, Murano, Venice glass, Murray Gell-Mann, New Urbanism, Peter Thiel, profit motive, publish or perish, Ray Kurzweil, Richard Feynman, Richard Florida, Silicon Valley, smart cities, Stephen Hawking, Steve Jobs, Stewart Brand, technological singularity, The Coming Technological Singularity, The Death and Life of Great American Cities, the scientific method, too big to fail, transaction costs, urban planning, urban renewal, Vernor Vinge, Vilfredo Pareto, Von Neumann architecture, Whole Earth Catalog, Whole Earth Review, wikimedia commons, working poor

On the other hand, the last few decades have also seen a resurfacing of the spiritual successors of The Population Bomb and The Limits to Growth with the rise of the environmental movement and the development of a serious concern for the future of the planet. Closely related to this is a deep concern for the impact of unregulated corporate and political ambition, which has stimulated a perceived need for “corporate social responsibility.” Bridging the divide and reducing the continuous tension between rampant capitalism, packaged as the engine of innovation and ingenuity that fuels growth and prosperity for all, versus the doom-and-gloom concerns of environmentalists and those who heed the warning signals of climate change and potential economic collapse, has emerged as one of the major political challenges of the twenty-first century.

The drive to minimize costs so as to maximize profits and gain greater market share has been extraordinarily successful in creating the modern market economy by providing goods and services at affordable prices to vast numbers of people. Despite all of its pitfalls, abuses, and negative unintended consequences, this free market credo has been instrumental in creating an unprecedented standard of living across the globe. It is potentially a harsh and simplistic vision that often ignores quality and, more important, the role of explicit corporate social responsibility as a basic complementary component for why companies exist beyond the primitive drive to maximize profits and compensation. Most of the literature on companies has been developed from the vantage points of economics, finance, law, and organizational studies, though in more recent years ideas from ecology and evolutionary biology have begun to gain prominence. There is also a large popular literature written by successful investors and CEOs revealing the secrets of their own success, which they tend to extrapolate to explain and prescribe what makes some companies successful and others failures.

See science of companies company mortality, 6, 191, 393–410 growth of sales, 395 revenue of major U.S. companies, 393, 394 revenue with inflation deflator, 393, 394 survivorship/mortality curves, 397, 398–400, 400–402 competition, 381 complex adaptive systems, 23–24, 116, 430–31, 433, 435 big data and, 439 cities as, 355–56 complexity characteristics of complex systems, 21–25, 72 definitions of, 19–21 grand unified theory of, 430–31 scaling and, 19–25 science of, 23, 79–81 simplicity underlying, 90–93, 116 turbulence and, 72 composite risk index, 315 compound interest, 217, 218 Compustat, 385–86, 393 computer analysis, 22–23, 75 computer programming, 264–65 consciousness, 87, 178–79, 181–82, 282, 283 conservation of electric charge, 197–98 conservation of energy, 164–65, 197–98 contraception, 227, 229 contraction of time, 332 Copernicus, Nicolaus, 37 Coriolanus (Shakespeare), 252–53 Cornell University, 274, 298, 300 “corporate social responsibility,” 233 cosmic scale factor, 209 Cowan, George, 438 Cray-2, 439–40 “creative destruction,” 403 Creative Destruction (Foster), 404 Crick, Francis, 84, 437 crime, 30, 261, 278, 279 in Japan, 277, 279 ranking of cities and, 355–59 crinkliness (fractality), 130, 139, 141, 152, 291 crumpled balls of paper, 153 cube-square law, 39–42, 43, 58, 59, 158–59 cumulative advantage, 368–71 cyberattacks, 134 cyborgs, 163, 422 Daepp, Madeleine, 402–3 Dallas, 251, 297–98 damage-based theories of aging, 199–203 decline of body functions with age, 195, 197, 201, 202 dark energy, 238 Darwin, Charles (Darwinism), 23–24, 60, 63, 87, 89–90, 98, 106, 185, 228, 428 Darwin, Charles Galton, 331–32 Darwinian fitness, 115 data.


pages: 281 words: 95,852

The Googlization of Everything: by Siva Vaidhyanathan

1960s counterculture, activist fund / activist shareholder / activist investor, AltaVista, barriers to entry, Berlin Wall, borderless world, Burning Man, Cass Sunstein, choice architecture, cloud computing, computer age, corporate social responsibility, correlation does not imply causation, creative destruction, data acquisition, death of newspapers, don't be evil, Firefox, Francis Fukuyama: the end of history, full text search, global pandemic, global village, Google Earth, Howard Rheingold, informal economy, information retrieval, John Markoff, Joseph Schumpeter, Kevin Kelly, knowledge worker, libertarian paternalism, market fundamentalism, Marshall McLuhan, means of production, Mikhail Gorbachev, moral panic, Naomi Klein, Network effects, new economy, Nicholas Carr, PageRank, Panopticon Jeremy Bentham, pirate software, Ray Kurzweil, Richard Thaler, Ronald Reagan, side project, Silicon Valley, Silicon Valley ideology, single-payer health, Skype, Social Responsibility of Business Is to Increase Its Profits, social web, Steven Levy, Stewart Brand, technoutopianism, The Nature of the Firm, The Structural Transformation of the Public Sphere, Thorstein Veblen, urban decay, web application, zero-sum game

Steven Horwitz, Making Hurricane Response More Effective: Lessons from the Private Sector and the Coast Guard during Katrina, policy comment, Global Prosperity Initiative (Vienna, VA: Mercatus Center, George Mason University, March 2008). 62. Robert Pear and Jackie Calmes, “Cost Concerns as Obama Pushes Health Issue,” New York Times, June 16, 2009. 63. Steve May, The Debate over Corporate Social Responsibility (Oxford: Oxford University Press, 2007); André Habisch, Corporate Social Responsibility across Europe (Berlin: Springer, 2005). 228 NOTES TO PAGES 43–53 64. Milton Friedman, “The Social Responsibility of Business Is to Increase Its Profits,” New York Times Magazine, September 13, 1970. 65. For an early account of the ways a clumsily regulated Web would fail to foster democratic values if left to the tumult of market forces, see Andrew Chin, “Making the World Wide Web Safe for Democracy: A Medium-Specific First Amendment Analysis,” Hastings Communications and Entertainment Law Journal (Comm/Ent) 19 (1996): 309. 66.


pages: 296 words: 98,018

Winners Take All: The Elite Charade of Changing the World by Anand Giridharadas

"side hustle", activist lawyer, affirmative action, Airbnb, Bernie Sanders, bitcoin, Burning Man, Capital in the Twenty-First Century by Thomas Piketty, carried interest, cognitive dissonance, collective bargaining, corporate raider, corporate social responsibility, crowdsourcing, David Brooks, David Heinemeier Hansson, deindustrialization, disintermediation, Donald Trump, Edward Snowden, Elon Musk, friendly fire, global pandemic, high net worth, hiring and firing, housing crisis, Hyperloop, income inequality, invisible hand, Jeff Bezos, Kibera, Kickstarter, land reform, Lyft, Marc Andreessen, Mark Zuckerberg, new economy, Occupy movement, offshore financial centre, Panopticon Jeremy Bentham, Parag Khanna, Paul Graham, Peter Thiel, plutocrats, Plutocrats, profit maximization, risk tolerance, rolodex, Ronald Reagan, shareholder value, sharing economy, side project, Silicon Valley, Silicon Valley startup, Skype, Social Responsibility of Business Is to Increase Its Profits, Steven Pinker, technoutopianism, The Chicago School, The Fortune at the Bottom of the Pyramid, the High Line, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, Travis Kalanick, trickle-down economics, Uber and Lyft, uber lyft, Upton Sinclair, Vilfredo Pareto, working poor, zero-sum game

Management consultants and Wall Street brains seek to convince the social sector that they should guide its pursuit of greater equality by assuming board seats and leadership positions. Conferences and idea festivals sponsored by plutocrats and big business host panels on injustice and promote “thought leaders” who are willing to confine their thinking to improving lives within the faulty system rather than tackling the faults. Profitable companies built in questionable ways and employing reckless means engage in corporate social responsibility, and some rich people make a splash by “giving back”—regardless of the fact that they may have caused serious societal problems as they built their fortunes. Elite networking forums like the Aspen Institute and the Clinton Global Initiative groom the rich to be self-appointed leaders of social change, taking on the problems people like them have been instrumental in creating or sustaining.

Tastad, of P&G, tried to give these a boost by saying, “The SDGs are fundamentally consistent with our company’s core purpose, which is empowering lives.” Good to know. Then the moderator came at the same concept another way by asking whether the panelists saw women’s equality becoming a fundamental part of business strategy, or whether it would continue to languish as a priority mostly of philanthropists and corporate social responsibility departments. Wurwand thought it was a competitive advantage. “Empowering girls and women is the hot new branding thing!” she explained. In MarketWorld, this was important to underscore to the audience. “So it’s not just the right thing to do,” Verveer said. “It’s the business-smart thing to do.” This was the highest praise a cause could receive. Women’s equality, it was now said, was a $28 trillion opportunity.


pages: 358 words: 104,664

Capital Without Borders by Brooke Harrington

banking crisis, Big bang: deregulation of the City of London, British Empire, capital controls, Capital in the Twenty-First Century by Thomas Piketty, complexity theory, corporate governance, corporate social responsibility, diversified portfolio, estate planning, eurozone crisis, family office, financial innovation, ghettoisation, haute couture, high net worth, income inequality, information asymmetry, Joan Didion, job satisfaction, joint-stock company, Joseph Schumpeter, liberal capitalism, mega-rich, mobile money, offshore financial centre, race to the bottom, regulatory arbitrage, Robert Shiller, Robert Shiller, South Sea Bubble, the market place, Thorstein Veblen, transaction costs, upwardly mobile, wealth creators, web of trust, Westphalian system, Wolfgang Streeck, zero-sum game

Luc Boltanski and Laurent Thévenot, On Justification: Economies of Worth (Princeton, NJ: Princeton University Press, 2006). 6. Wealth Management and the State 1. Gerard Hanlon, “Institutional Forms and Organizational Structures: Homology, Trust and Reputational Capital in Professional Service Firms,” Organization 11 (2004): 205. 2. Eliot Freidson, Professionalism: The Third Logic (London: Polity, 2001), 128. 3. Doreen McBarnet, “After Enron: Corporate Governance, Creative Compliance and the Uses of Corporate Social Responsibility,” in Justin O’Brien, ed., Governing the Corporation: Regulation and Corporate Governance in an Age of Scandal and Global Markets, 205–222 (New York: John Wiley & Sons, 2005). 4. Tim Bartley, “Institutional Emergence in an Era of Globalization: The Rise of Transnational Private Regulation of Labor and Environmental Conditions,” American Journal of Sociology 113 (2007): 298. 5. Greta Krippner, “The Financialization of the American Economy,” Socio-Economic Review 3 (2005): 202. 6.

Zucman, The Hidden Wealth of Nations, 89. 77. Bullough, “The Fall of Jersey.” 78. Ibid. 79. Manish Bhansali, Deepti Sharma, and Vijay Raina, “Epigastric Heteropagus Twins: 3 Case Reports with Review of Literature,” Journal of Pediatric Surgery 40 (2015): 1204–1208. 80. Zucman, The Hidden Wealth of Nations, 34. 81. Ibid., 30. 82. Doreen McBarnet, “After Enron: Corporate Governance, Creative Compliance and the Uses of Corporate Social Responsibility,” in Justin O’Brien, ed., Governing the Corporation: Regulation and Corporate Governance in an Age of Scandal and Global Markets, 205–222 (New York: John Wiley & Sons, 2005). 83. Zucman, The Hidden Wealth of Nations, 73. 84. Adam Hofri, “Professionals’ Contribution to the Legislative Process: Between Self, Client, and the Public,” Law & Social Inquiry 39 (2014): 96–126. 85. Zucman, The Hidden Wealth of Nations. 86.


pages: 354 words: 110,570

Billion Dollar Whale: The Man Who Fooled Wall Street, Hollywood, and the World by Tom Wright, Bradley Hope

Asian financial crisis, Bernie Madoff, collapse of Lehman Brothers, colonial rule, corporate social responsibility, Credit Default Swap, Donald Trump, failed state, family office, forensic accounting, Frank Gehry, high net worth, Nick Leeson, offshore financial centre, Ponzi scheme, Right to Buy, risk tolerance, Snapchat, South China Sea, sovereign wealth fund

The fund, Low promised the prime minister, would suck in money from the Middle East and borrow more from global markets. But he had another selling point, one which Najib, who was ambitious, found extremely attractive: Why not also use the fund as a political-financing vehicle? Profits from 1MDB would fill a war chest that Najib could use to pay off political supporters and voters, restoring UMNO’s popularity, Low promised. On the surface, such spending by 1MDB would be packaged as “corporate social responsibility,” to borrow a phrase from the corporate world. The fund’s charitable arm would award scholarships and build affordable housing in areas where UMNO needed votes. On top of that, Low told Najib that Middle Eastern nations, through their investments in the fund, would come to see Malaysia as a coveted ally in Asia, and also back Najib’s administration with a flow of political donations.

Still, Low persuaded Najib to grant the fund parcels of vacant city-center land at bargain-basement prices for the project. Amid the wasted spending and the lack of focus, many of the Ivy League recruits quit after less than a year. More worryingly to many, it became clear the fund’s main reason to exist was as a pot of political money to boost Najib’s popularity. Even without steady cash flow from operations, 1MDB was starting to channel money as “corporate social responsibility” to help encourage voters to support UMNO, the ruling party. “We even joked that many of the projects we were assessing were pretend projects to give the company a legitimate front,” the 1MDB employee said. On March 1, 2010, the new board of loyalists met at 1MDB’s new offices to discuss how the fund could help Najib’s premiership. Even though it still had no viable businesses, Chief Executive Shahrol explained to the board how a new charity arm of 1MDB was planning to pour money into the Malaysian region of Sarawak to coincide with an upcoming visit by Najib.


pages: 438 words: 109,306

Tower of Basel: The Shadowy History of the Secret Bank That Runs the World by Adam Lebor

banking crisis, Basel III, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, central bank independence, corporate governance, corporate social responsibility, deindustrialization, eurozone crisis, fiat currency, financial independence, financial innovation, forensic accounting, Goldman Sachs: Vampire Squid, haute cuisine, IBM and the Holocaust, Kickstarter, Occupy movement, offshore financial centre, Ponzi scheme, price stability, quantitative easing, reserve currency, special drawing rights

Commercial banks, might, for example, ask why they should adhere to the Basel Committee’s banking rules, when the host bank itself is arguably protecting a central bank against its creditors? For now, at least, the BIS can rely on its powerful friends. But if the political climate continues shifting toward transparency and accountability, the bank’s managers may find that their calls take longer to be returned and are briefer in duration. The bank needs to reform in three areas to ensure its survival: transparency, accountability, and corporate social responsibility. The first is the simplest. The BIS should hold a press conference after the bimonthly governors’ weekends and make it available on the Internet. The bank should publish the attendance list and the broad themes of discussion at the weekend meetings, in particular of the elite Economic Consultative Committee that meets for dinner on Sunday evenings; the Global Economy Meeting the next day, the BIS directors’ meeting that deals with the bank’s governance, and deliberations of the Markets Committee, which deals with the international financial markets.

In recent years, EGMs were called to change the bank’s unit of account from the gold franc to the Special Drawing Right, to forcibly buy back the shares held in private hands, and to distribute the shares held by the former Yugoslavia to its successor states. Voting is decided at EGMs by member central banks. If the governors and officials of the member central banks were mandated by their national governments to vote for the change and modernization, the bank would have to accede to the changes. Thirdly, such an EGM could also mandate the bank to spend some of its profits on corporate social responsibility and philanthropy. The bank has for decades reaped rich rewards of its stewardship of public funds. In the financial year 2011–2012 the BIS made tax-free profits of almost $100 million each month. It is time to return some of those profits to a wider society, beyond the annual dividends paid to the central bank shareholders. The bank refused to answer questions from the author on how much it spends on charity and philanthropic projects.


pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

"Robert Solow", Airbnb, Albert Einstein, American ideology, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, laissez-faire capitalism, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, uber lyft, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra

Companies exposed to competition are always vulnerable to change, and when they become focused on finance rather than market contestability, they need to find other ways of protecting the boundaries of the firm and their market positions. That protection is increasingly about playing zone or company-to-company defense of markets. Those that have been around in corporate life know that, aside from specialization, there are several ways to do that. They include lobbying, branding, marketing, design, and incremental changes in products that give the pretense of development. Corporate social responsibility (CSR) and general public relations campaigns emerged later but are today part of the same toolbox. Together they all help to create customer loyalty and political protection. What used to be the icing on the cake – activities to support innovations and real business competition – have become more important than innovation itself to combat competitors. The use of private standards has gained prominence, too.

(i) cargo services and deregulation (i) see also air cargo services cash hoarding (corporate savings) (i), (ii), (iii), (iv), (v) catalytic converter technology (i) Central Europe, German-Central European supply chain (i), (ii) chemicals, and EU regulation (i), (ii) Chicago school of economics (i) Chili, and Cybersyn project (i) China and BRIC concept (i), (ii) exports from European Union (i) GDP (2014) (i), (ii) and globalization (i), (ii), (iii) R&D spending (i) sovereign wealth fund (i) Christensen, Clayton (i), (ii) Churchill, Winston (i) Clark, Gregory (i), (ii)n41 classical market liberalism (i) Clinton, Bill (i) Club des Chiffrephiles (i) Coase, Ronald (i), (ii), (iii), (iv), (v) Coca-Cola (i) Code of Federal Regulations (US) (i) cognition, mechanistic vs. organic (i) collaboration “noise” (i) Comin, Diego (i) command economies (i), (ii) command-and-control (i), (ii) community-generated content, and socialism (i) companies see big firms; firm boundaries; firms; multinational (global) companies competition and bureaucracy (i) and containerization (of global trade) (i) vs. contesting markets (i) and financial regulation (i) and firm boundaries (i), (ii) and geography of production (i) and globalization (i) life-or-death competition (i), (ii), (iii), (iv) and market concentration (i) and mergers and acquisitions (i) move of from countries to firms (i), (ii) and multinationals (i) oligopolistic (or monopolistic) competition (i) and planning machines (i) see also market contestability competitive forces concept (i) complexity “complex by design” capitalism (i) market complexity (i) see also regulatory complexity/uncertainty compliance officers (i) complicatedness index (Boston Consulting Group) (i) compound growth (i) Compustat, corporate cash holdings (i) computer technology/computerization and corporate managerialism (i) and knowledge obsolescence (i) and labor (i) and leisure (i) and market socialism (i) and production (i) and quantum dots/cadmium (i) see also digitalization; ICT (information and communications technology); information technology (IT); software technology Conference Board (economics consultancy) (i), (ii) consolidation (i), (ii) see also mergers and acquisitions Consumer Protection Act (US) (i) containerization (of global trade) (i) contestability see market contestability contracts (i) copying, and strategy (i), (ii) corporate borrowing and low investment growth (i) see also corporate net lending corporate control, and specialization (i) corporate failure see failure corporate globalism (i), (ii), (iii) corporate managerialism and bureaucracy (i), (ii), (iii), (iv), (v) and capitalism, decline of (i), (ii), (iii) corporate destruction and innovation: IBM (i); Microsoft (i), (ii); Nokia (i), (ii), (iii), (iv), (v) formula of failure (i) and globalist worldview (i) and globalization (i), (ii), (iii), (iv) managerial ideology on the rise (i), (ii) planning: planning machines (i), (ii), (iii); risk and uncertainty (i); strategy (i) regulation (i), (ii) regulation and compliance officers (i) Swedish managerialist culture (i), (ii) value vs. numbers (i) see also bureaucracy corporate medical research, and financial regulation (i) corporate net lending (i), (ii) see also corporate borrowing corporate politics (i), (ii), (iii), (iv) see also political world corporate savings (cash hoarding) (i), (ii), (iii), (iv), (v) corporate size and entrepreneurship (i) and globalization (i) and regulation (i) corporate social responsibility (CSR) (i) corporate socialism (i), (ii) corporate socialization (i) corporate valuations (i) costs production costs (i), (ii), (iii) sunk costs (i), (ii), (iii), (iv) transaction costs (i), (ii), (iii), (iv), (v), (vi) transmission costs (i), (ii), (iii) Cowen, Tyler (i) creative destruction fear of and political institutions (i) and globalization (i) and innovation (i), (ii), (iii), (iv), (v) and New Machine Age (i) and Nokia (i) and present-day capitalism (i) see also withering credit rating agencies (i), (ii), (iii) Credit Suisse, on stock markets (i) crony capitalism (i) cronyism (i), (ii), (iii), (iv) culture of experimentation (i), (ii) see also entrepreneurs; entrepreneurship culture of individualism (i) see also dissent; eccentricity; freedom customer loyalty (i) Cybersyn project (i) cyclical effects, and productivity (i) da Vinci, Leonardo see Leonardo da Vinci Darwinianism (i), (ii) Das, Gurcharan (i) data see recorded data (national accounts) data economy, and productivity (i) DAX 30 index (Germany) (i) de Blasio, Bill (i) debt and dividends/share buybacks vs. investment (i), (ii) and economic decline (i) vs. equity funding (i), (ii), (iii), (iv), (v), (vi) and retirement savings (i), (ii) decision-making probabilistic decision-making (i), (ii) and strategy (i) decoupling (productivity/incomes) thesis (i), (ii) deregulation case of air cargo services (FedEx) (i) and diffusion of innovations (i), (ii) OECD product market regulation (PMR) indicators (i), (ii) and reallocation of business (i) and regulatory accumulation (i) wave in 1980s–1990s (i), (ii) see also regulation; regulatory complexity/uncertainty Descartes, René (i) design (i) development vs. research (i), (ii) see also incremental development; R&D diffusion and deregulation (i), (ii) and globalization (i), (ii) and occupational licenses (i) and productivity (i) and R&D (i) “diffusion machine” (i), (ii), (iii) digital age and capitalism (i) and politics (i) digitalization and innovation (i) and leisure (i) and managerialism (i) and productivity growth (i) and regulation (i) and second unbundling of production (i) see also computer technology/computerization; ICT (information and communications technology); information technology (IT); “servicification” (or “servitization”) direct-to-consumer sales (i) dirigisme (France) (i) discriminate dynamism theory (i) dispersed ownership (i) dissent (i), (ii), (iii), (iv) see also culture of individualism; eccentricity diversification and investment (i), (ii) organizational (i), (ii) dividends (i), (ii), (iii), (iv), (v) DJs, and jobs and technology debate (i) dock labor, and containerization (of global trade) (i) Dodd-–Frank Act (US) (i), (ii), (iii), (iv) Dolly the Sheep (i) Dr.


pages: 377 words: 121,996

Live and Let Spy: BRIXMIS - the Last Cold War Mission by Steve Gibson

Berlin Wall, British Empire, corporate social responsibility, cuban missile crisis, Fall of the Berlin Wall, John Nash: game theory, libertarian paternalism, long peace, means of production, Mikhail Gorbachev, moral panic, mutually assured destruction, RAND corporation, road to serfdom, Ronald Reagan, unbiased observer, WikiLeaks

This new interpretation of so-called freedom and liberty has merely entrapped us in a vacuous and meaningless world content to normalise a heightened state of security as the reason for being. This absence of meaning and purpose is nowhere better caricatured than in the world of risk management. The Banality of Risk Management By far the most pervasive form of contemporary decision-making is risk management. It has found powerful expression in health and safety, the formalisation of governance, transparency, sustainability, corporate social responsibility and the more recent ‘securitisation’ of much of life. This management of risk, as distinct from an understanding of the concept of risk, has come to stifle and smother all efforts at pursuing progress and prosperity. Subservience to the rigid bureaucracy of risk management constitutes the biggest challenge to the long-tried and tested virtues – judgement, toleration, discretion, argument and moral autonomy – necessary to achieve prosperity and progress.

Higher education is measured by rafts of commercial jargon that do anything but recognise the value of education for its own sake. The re-interpretation of league tables and waiting-lists for what it means to be well in the UK’s National Health Service jeopardises the essential nature of care. In business, the ‘risk management of everything’ finds businessmen reluctant to declare profit-making as a principal goal. Rather they have succumbed to reputation managers, corporate social responsibility consultants, environmentally-friendly mantras, and any number of other abstract and objectively meaningless nouns – governance, compliance, transparency, accountability and sustainability – that reveal little about what they do, but much about the lack of confidence with which they do it. Public services forget what they are for: the police, fire and ambulance services now couch their roles in terms of public safety rather than upholding the law, putting out fires or emergency first aid.


pages: 532 words: 139,706

Googled: The End of the World as We Know It by Ken Auletta

23andMe, AltaVista, Anne Wojcicki, Apple's 1984 Super Bowl advert, Ben Horowitz, bioinformatics, Burning Man, carbon footprint, citizen journalism, Clayton Christensen, cloud computing, Colonization of Mars, commoditize, corporate social responsibility, creative destruction, death of newspapers, disintermediation, don't be evil, facts on the ground, Firefox, Frank Gehry, Google Earth, hypertext link, Innovator's Dilemma, Internet Archive, invention of the telephone, Jeff Bezos, jimmy wales, John Markoff, Kevin Kelly, knowledge worker, Long Term Capital Management, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Network effects, new economy, Nicholas Carr, PageRank, Paul Buchheit, Peter Thiel, Ralph Waldo Emerson, Richard Feynman, Sand Hill Road, Saturday Night Live, semantic web, sharing economy, Silicon Valley, Skype, slashdot, social graph, spectrum auction, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, strikebreaker, telemarketer, the scientific method, The Wisdom of Crowds, Upton Sinclair, X Prize, yield management, zero-sum game

“We should be entitled to our representation in government.” Like Microsoft in the late nineties, the Google leadership, “composed of ideological technologists,” as Schrage put it in 2007, was slow to appreciate the political and the human dimensions of the technical decisions it made. Schrage’s resume spans a law degree, years of teaching, a senior executive position at The Gap, and work as an international consultant on corporate social responsibility. He acknowledged that Google engineers were new to the ways of Washington. “Some call that naivete. Some might criticize this; others might applaud it. No question that people here regularly discuss Microsoft’s experience and use that as a cautionary tale.” Later, meaning to explain rather than criticize, Schrage told me, “One can make the argument that the genes of technological innovation are frequently in conflict with emotional intelligence.

Social idealism has been a core value in the culture of the Internet, from the insistence of Tim Berners-Lee, who believed that the Web should be open and that he would not patent it or enrich himself; to the open-source movement; to Wikipedia, which follows a democratic faith in “the wisdom of crowds” and has adopted a nonprofit model. Before one dismisses these approaches as the gauzy thinking of left-wing populists, consider how often traditional companies now promote their own “corporate social responsibility”—in part to ecumenically emulate Andrew Carnegie, in part to bathe in the favorable publicity, in part to profit from some of these endeavors, and in part as a reaction against almost daily ethical business lapses. Companies like the Gap and Hallmark donate a portion of their profits to fight AIDS; Starbucks gave comprehensive health care to its employees, including part-timers. General Electric devised what it called an ecomagination strategy to address climate change and reap profits from it.


pages: 436 words: 76

Culture and Prosperity: The Truth About Markets - Why Some Nations Are Rich but Most Remain Poor by John Kay

"Robert Solow", Albert Einstein, Asian financial crisis, Barry Marshall: ulcers, Berlin Wall, Big bang: deregulation of the City of London, business cycle, California gold rush, complexity theory, computer age, constrained optimization, corporate governance, corporate social responsibility, correlation does not imply causation, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, Donald Trump, double entry bookkeeping, double helix, Edward Lloyd's coffeehouse, equity premium, Ernest Rutherford, European colonialism, experimental economics, Exxon Valdez, failed state, financial innovation, Francis Fukuyama: the end of history, George Akerlof, George Gilder, greed is good, Gunnar Myrdal, haute couture, illegal immigration, income inequality, industrial cluster, information asymmetry, intangible asset, invention of the telephone, invention of the wheel, invisible hand, John Meriwether, John Nash: game theory, John von Neumann, Kenneth Arrow, Kevin Kelly, knowledge economy, light touch regulation, Long Term Capital Management, loss aversion, Mahatma Gandhi, market bubble, market clearing, market fundamentalism, means of production, Menlo Park, Mikhail Gorbachev, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Naomi Klein, Nash equilibrium, new economy, oil shale / tar sands, oil shock, Pareto efficiency, Paul Samuelson, pets.com, popular electronics, price discrimination, price mechanism, prisoner's dilemma, profit maximization, purchasing power parity, QWERTY keyboard, Ralph Nader, RAND corporation, random walk, rent-seeking, Right to Buy, risk tolerance, road to serfdom, Ronald Coase, Ronald Reagan, second-price auction, shareholder value, Silicon Valley, Simon Kuznets, South Sea Bubble, Steve Jobs, telemarketer, The Chicago School, The Market for Lemons, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, total factor productivity, transaction costs, tulip mania, urban decay, Vilfredo Pareto, Washington Consensus, women in the workforce, yield curve, yield management

Bibliography { 399} Henderson, D. 1977. "Two British Errors: Their Probable Size and Some Possible Reasons." Oxford Economic Papers 29 (2): 159-205. ---. 1986. Innocence and Design: The Influence of Economic Ideas on Policy. Oxford: Blackwell. ---. 2000. "False Perspective: The UNDP View of the World." World Economics 1 (1) Ganuary-March). ---. 2001. "Misguided Virtue: False Notions of Corporate Social Responsibility." Hobart Paper 142. London: Institute of Economic Affairs. Henney, A. 1988. The Economic Failure of Nuclear Power in Britain. London: Greenpeace. Hensler, D. S. Carrol, M. White, and]. Cross. 2001. Asbestos Litigation. Santa Monica Calif.: U.S. Rand Institute for CivilJustice. Heston, A., and R Summers. 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988."

Anarchy> State and Utopia. New York: Basic Books. Oakeshott, M.]. 1962. Rationalism in Politics and Other Essays. London: Methuen. OECD. 1975. The Polluter Pays Principle: Definition> Analysis> Implementation. Paris: Organization for Economic Cooperation and Development. ---. 1993. Improvement of Economic Forecasts. Paris: Organization for Economic Cooperation and Development. ---. 2001. Corporate Social Responsibility: Partners for Progress. Paris: Organization for Economic Cooperation and Development. Olson, M. 1996. "Big Bills Left on the Sidewalk: Why Some Nations Are Rich, and Others Poor." journal ofEconomic Perspectives 10 (3): 3-24. Ormerod, P. 1998. Butterfly Economics: A New General Theory of Social and Economic Behavior. New York: Pantheon Books. Ortega, B. 1999. In Sam We Trust: The Untold Story of Sam Walton> and How Wal-Mart Is Devouring America.


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Nine Pints: A Journey Through the Money, Medicine, and Mysteries of Blood by Rose George

Affordable Care Act / Obamacare, air freight, airport security, British Empire, call centre, corporate social responsibility, Edward Snowden, global pandemic, Ignaz Semmelweis: hand washing, index card, Jeff Bezos, meta analysis, meta-analysis, microbiome, Nelson Mandela, obamacare, period drama, Peter Thiel, Rana Plaza, RAND corporation, Silicon Valley, Skype, stem cell

“Standard Test Method for Performing Behind-the-Knee (BTK) Test for Evaluating Skin Irritation Response to Products and Materials That Come into Repeated or Extended Contact with Skin,” ASTM International, www.astm.org/Standards/F2808.htm.   67. HERproject, https://herproject.org/.   68. Lydia DePillis, “Two Years Ago, 1,129 People Died in a Bangladesh Factory Collapse. The Problems Still Haven’t Been Fixed,” Washington Post, April 23, 2015.   69. Business Case Studies, “Beyond Corporate Social Responsibility: A Primark Case Study,” https://businesscasestudies.co.uk/primark/beyond-corporate-social-responsibility/the-value-of-the-herproject.html (accessed April 2, 2018).   70. Ibid.   71. https://herproject.org/impact.   72. George, “My Gold Medal Goes to Fu Yuanhui for Talking Openly About Her Period.”   73. Clare O’Connor, “Why 2016 Was the Year of the Women-Led Period Startup,” Forbes, December 22, 2016.   74. Lily Kuo, “Kenya Is Promising Free Sanitary Napkins to Help Keep Girls in School,” Quartz, June 23, 2017, https://qz.com/1012976/uhuru-kenyatta-promises-free-sanitary-napkins-for-kenyan-school-girls/ (accessed April 2, 2018).   75. 


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Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness by Frederic Laloux, Ken Wilber

Albert Einstein, augmented reality, blue-collar work, Buckminster Fuller, call centre, carbon footprint, conceptual framework, corporate social responsibility, crowdsourcing, different worldview, failed state, future of work, hiring and firing, index card, interchangeable parts, invisible hand, job satisfaction, Johann Wolfgang von Goethe, Kenneth Rogoff, meta analysis, meta-analysis, pattern recognition, post-industrial society, quantitative trading / quantitative finance, randomized controlled trial, selection bias, shareholder value, Silicon Valley, the market place, the scientific method, Tony Hsieh, zero-sum game

Green Organizations insist that there should be no such hierarchy among stakeholders. Businesses have a responsibility not only to investors, but also to management, employees, customers, suppliers, local communities, society at large, and the environment. The role of leadership is to make the right trade-offs so that all stakeholders can thrive. Every large organization today has to publish a corporate social responsibility report. Green Organizations consider their social responsibility an integral part of how they do business, contrary to their Orange counterparts who often deem such reports a distracting obligation. Social responsibility is often at the core of their mission, and it provides the motivation that spurs them on to innovate and become better corporate citizens. Green Organizations work with their suppliers in developing countries to improve local working conditions and prevent child labor; they try to reduce their carbon footprint and their use of water; they strive to recycle their products and reduce packaging.

But from a purpose perspective, we have much to gain by opening up to outsiders who can help us with feedback and expertise. Patagonia has gone that route with its “Footprint Chronicles,” an initiative aiming to provide total transparency to the outside world about its supply chain. Casey Sheahan, Patagonia’s current CEO, explains the journey the company took and its unexpected consequences: About four years ago, we took what was a traditional Corporate Social Responsibility report and we put everything online and it’s called the Footprint Chronicles. … We actually took video cameras, we took tape recorders and still cameras into the factories. We told our factories: we intend to show our customers where everything is made, how it’s made, what the conditions are like, what the impact of transportation and water usage is on the overall carbon footprint. The Footprint Chronicles talks about the good, the bad, and the ugly of everything we make.


Making Globalization Work by Joseph E. Stiglitz

affirmative action, Andrei Shleifer, Asian financial crisis, banking crisis, barriers to entry, Berlin Wall, business process, capital controls, central bank independence, corporate governance, corporate social responsibility, currency manipulation / currency intervention, Doha Development Round, Exxon Valdez, Fall of the Berlin Wall, Firefox, full employment, Gini coefficient, global reserve currency, Gunnar Myrdal, happiness index / gross national happiness, illegal immigration, income inequality, income per capita, incomplete markets, Indoor air pollution, informal economy, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), inventory management, invisible hand, John Markoff, Jones Act, Kenneth Arrow, Kenneth Rogoff, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, microcredit, moral hazard, new economy, North Sea oil, offshore financial centre, oil rush, open borders, open economy, price stability, profit maximization, purchasing power parity, quantitative trading / quantitative finance, race to the bottom, reserve currency, rising living standards, risk tolerance, Silicon Valley, special drawing rights, statistical model, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, trickle-down economics, union organizing, Washington Consensus, zero-sum game

MAKING GLOBALIZATION WORK It is easy to understand why multinational corporations have played such a central role in globalization: it takes organizations of enormous scope to span the globe, to bring together the markets, technology, and capital of the developed countries with the production capacities of the developing ones. The question is how to ensure that developing countries get more benefits—and face fewer of the costs. In the following pages, I set out a five-pronged agenda that, though it will not eliminate all instances of corporate abuse, will I believe lessen them. Underlying most of these reforms is a simple objective: to align private incentives with social costs and benefits. Corporate social responsibility Though many corporations, especially in the United States, continue to argue that their sole responsibility is to shareholders, many do recognize that their responsibility goes further. There is an element of self-interest here: doing good can be good for business, and doing bad can subject companies to expensive lawsuits. Bad behavior also can harm a company’s image: the negative publicity surrounding the U.S. shoe company Nike after its suppliers in Vietnam mistreated local workers and the furor after Ken Saro-Wiwa was killed in Nigeria amid accusations that the Anglo-Dutch oil company Shell supported the military junta that murdered him were wake-up calls.

I have argued throughout this book that politics and economics are intricately interwoven: corporations have used their financial muscle to protect themselves from bearing the full social consequences of their actions. Why should we expect them to respond any more enthusiastically to these reforms than to any of the more modest attempts to temper their abuses? One thing that makes me hopeful is the corporate social responsibility movement. There is an increasing number of firms who do not want to see a race to the bottom. It is firms like these, in the United States and other countries, that supported the Foreign Corrupt Practices Act. Civil society too is playing a more active role, by monitoring the actions of the large mining companies and of manufacturing firms that abuse their workers. The new technologies that have helped bring about globalization have been used to bring these abuses to the attention of the world, so that even those who have little moral compunction have been forced to account for their actions.


Apocalypse Never: Why Environmental Alarmism Hurts Us All by Michael Shellenberger

Albert Einstein, Asperger Syndrome, Bernie Sanders, Bob Geldof, carbon footprint, Cesare Marchetti: Marchetti’s constant, clean water, Corn Laws, coronavirus, corporate social responsibility, correlation does not imply causation, cuban missile crisis, decarbonisation, deindustrialization, Dissolution of the Soviet Union, Donald Trump, Elon Musk, energy transition, failed state, Gary Taubes, global value chain, Google Earth, hydraulic fracturing, index fund, Indoor air pollution, indoor plumbing, Intergovernmental Panel on Climate Change (IPCC), Internet Archive, land tenure, Live Aid, LNG terminal, long peace, manufacturing employment, mass immigration, meta analysis, meta-analysis, off grid, oil shale / tar sands, Potemkin village, purchasing power parity, Ralph Nader, renewable energy transition, Steven Pinker, supervolcano, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trade route, union organizing, WikiLeaks, Y2K

The reporter wrote, “A coalition of women’s groups have attacked Nike as hypocritical for its new television commercials that feature female athletes, asserting that something is wrong when the company calls for empowering American women but pays its largely female overseas work force poorly.”10 Our campaign seemed like a success. We had generated so much negative publicity that we damaged Nike’s brand. As importantly, we sent a message to other corporations that they would be held accountable for conditions in factories they contracted with abroad. “I go back to 1997 to find the first clearly [corporate social responsibility] related event I can recall—the boycott of Nike—that had a real impact on the company,” said Geoffrey Heal, a Columbia University Business School professor.11 Not everybody agrees that the Nike campaign was a success. Some, like Jeff Ballinger, whose work with Indonesian factory workers dates back to 1988, believes Nike hyped “environmental sustainability” as a public-relations tool to overshadow continued human exploitation.

Elizabeth Paton, “Extinction Rebellion Takes Aim at Fashion.” 8. Sarah Anne Hughes, “Greenpeace Protests Barbie at Mattel Headquarters,” Washington Post, June 8, 2011, https://www.washingtonpost.com. 9. Ibid. 10. Steven Greenhouse, “Nike Supports Women in Its Ads but Not Its Factories, Groups Say,” New York Times, October 26, 1997, https://www.nytimes.com. 11. Jeff Ballinger, “Nike, Sexual Harassment and the ‘Corporate Social Responsibility’ Racket: How the Company Shut Down the New York Times,” Washington Babylon, November 9, 2017, https://washingtonbabylon.com. 12. Ibid. 13. “Statement on 2019 Copenhagen Fashion Summit,” Union of Concerned Researchers in Fashion, May 5, 2019, accessed October 26, 2019, http://www.concernedresearchers.org/ucrf-on-2019-copenhagen-fashion-summit. See also, “The changes we are seeing from some brands remain extremely superficial,” said one XR activist.


pages: 166 words: 49,639

Start It Up: Why Running Your Own Business Is Easier Than You Think by Luke Johnson

Albert Einstein, barriers to entry, Bernie Madoff, business cycle, collapse of Lehman Brothers, corporate governance, corporate social responsibility, creative destruction, credit crunch, Grace Hopper, happiness index / gross national happiness, high net worth, James Dyson, Jarndyce and Jarndyce, Jarndyce and Jarndyce, Kickstarter, mass immigration, mittelstand, Network effects, North Sea oil, Northern Rock, patent troll, plutocrats, Plutocrats, Ponzi scheme, profit motive, Ralph Waldo Emerson, Silicon Valley, software patent, stealth mode startup, Steve Jobs, Steve Wozniak, The Wealth of Nations by Adam Smith, traveling salesman, tulip mania, Vilfredo Pareto, wealth creators

Typically an apparatus builds up around divisions like HR to expand their role and cost more money. Compensation consultants are hired to come up with justifications for paying everyone more. Training advisors are employed to distract everyone from doing their job with pointless courses. Appraisal experts are contracted to critique staff relations. Experts are drafted in to devise an appropriate Corporate Social Responsibility Agenda – whatever that is. All this paraphernalia is accepted as essential good practice by modern-thinking corporate management. Most of it is an expensive, bureaucratic load of hogwash. Of course, senior executives understand that HR directors are powerful – a bit like Mossad or the CIA. Personnel know everyone’s salary and bonus and all their disciplinary records. Wily office politicians cultivate them, since they help decide who gets a pay rise and promotion, how contracts are drafted, how individuals are treated if there’s a restructuring and so on.


I You We Them by Dan Gretton

agricultural Revolution, anti-communist, back-to-the-land, British Empire, clean water, cognitive dissonance, colonial rule, conceptual framework, corporate social responsibility, Desert Island Discs, drone strike, European colonialism, financial independence, friendly fire, ghettoisation, Honoré de Balzac, IBM and the Holocaust, illegal immigration, invisible hand, Johann Wolfgang von Goethe, laissez-faire capitalism, liberation theology, Mikhail Gorbachev, Milgram experiment, Neil Kinnock, Nelson Mandela, New Journalism, place-making, pre–internet, Stanford prison experiment, University of East Anglia, wikimedia commons

I say that we need the spirit of the anti-apartheid movement, but we need to develop new strategies, new ways of resisting. But what we can take from those years, when some of us in this chamber used to gather on Fridays for the pickets outside the South African Embassy, is that a state that appeared to be immoveable suddenly crumbled. As Angela said this evening, what is perceived as permanent never is. As for a new strategy, what would happen if we got rid of that cliché ‘corporate social responsibility’ and started to talk instead about the individual responsibility of those working in corporations? If we started to hold the individuals within Shell to account? Those men and women who were in power at the time of the executions of Ken and his eight colleagues? What about starting to bring these individuals to justice? I end by asking people to reflect on what oppressors always try to do – the attempt to silence the voices of truth, and the absurdity of this.

In a few minutes a man in his sixties will walk in here and sit down opposite me, and we’ll begin an interview that will last around an hour and a half. I’m still amazed that this man has agreed to see me. He was one of Shell’s most influential figures in the 1990s, and was part of the team which had to co-ordinate the executive response to the media storms surrounding both Brent Spar and the executions of Ken Saro-Wiwa and his eight fellow Ogoni. He later played a key role in the birth of the so-called ‘Corporate Social Responsibility’ movement in the late 1990s. For more than ten years I’ve wondered about how to do this. It’s taken a great deal of planning and thought to get to this stage, where the people I want to talk to – the senior executives – feel able to sit down in a room with me. Three years ago I had an idea. I had been introduced to the head of research at a well-known business school, and had been invited to give several presentations to students there, from various corporate backgrounds, on the ideas I was developing around how people in organisations are able to ‘compartmentalise’ their individual ethics and their organisation’s ‘values’ into different mental boxes.

Transferring Personal Responsibility to the Authority’s Responsibility How, if you’re part of a large organisation, it is always possible to diminish your own sense of responsibility and pass on the greatest share of responsibility to others, especially those at higher levels of authority. This is perhaps the most familiar of all the categories, and links most directly with issues surrounding corporate psychology and behaviour today. I believe that the development, since the late 1990s, of the so-called CSR movement (Corporate Social Responsibility) has actually had the disturbing effect of weakening moral and ethical frameworks within companies. Creating specific departments within companies which are supposed to deal with ethical, environmental and human rights issues has allowed the majority of employees working in the corporations to defer their own sense of responsibilityfn6 onto these departments, thus reducing their individual sense of moral agency, often with disastrous consequences.


pages: 171 words: 54,334

Barefoot Into Cyberspace: Adventures in Search of Techno-Utopia by Becky Hogge, Damien Morris, Christopher Scally

A Declaration of the Independence of Cyberspace, back-to-the-land, Berlin Wall, Buckminster Fuller, Chelsea Manning, citizen journalism, cloud computing, corporate social responsibility, disintermediation, Douglas Engelbart, Douglas Engelbart, Electric Kool-Aid Acid Test, Fall of the Berlin Wall, game design, Hacker Ethic, informal economy, information asymmetry, Jacob Appelbaum, jimmy wales, John Markoff, Julian Assange, Kevin Kelly, mass immigration, Menlo Park, Mitch Kapor, MITM: man-in-the-middle, moral panic, Mother of all demos, Naomi Klein, Nelson Mandela, Network effects, New Journalism, Norbert Wiener, peer-to-peer, Richard Stallman, Silicon Valley, Skype, Socratic dialogue, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, technoutopianism, Telecommunications Act of 1996, The Hackers Conference, Vannevar Bush, Whole Earth Catalog, Whole Earth Review, WikiLeaks

I would now like to find a way to get Google on my side by convincing them that this is good business practice and if not profitable, then at least not cripplingly unsustainable to do.” * * * It’s hardly radical – at least, it’s not my kind of radical. It’s not the kind of radical that smokes cigarettes in squatted factory buildings plotting revolutions, or takes to the streets in glorious technicolour. It’s not glamorous, and it’s not easy. It doesn’t smash the system, it is the system. It is consumer politics, not citizen politics. It is corporate social responsibility. It is public relations. But then, if it is also a good solution to a pressing problem, what kind of hacker would I be to ignore it? * * * Chapter 8: Ciphers and Doppelgangers When I spoke to him at the Frontline Club, Ethan told me that, for now at least, he was hopeful for the US State Department’s internet freedom agenda. He knew the people who wrote Hillary Clinton’s January speech.


pages: 688 words: 147,571

Robot Rules: Regulating Artificial Intelligence by Jacob Turner

Ada Lovelace, Affordable Care Act / Obamacare, AI winter, algorithmic trading, artificial general intelligence, Asilomar, Asilomar Conference on Recombinant DNA, autonomous vehicles, Basel III, bitcoin, blockchain, brain emulation, Clapham omnibus, cognitive dissonance, corporate governance, corporate social responsibility, correlation does not imply causation, crowdsourcing, distributed ledger, don't be evil, Donald Trump, easy for humans, difficult for computers, effective altruism, Elon Musk, financial exclusion, financial innovation, friendly fire, future of work, hive mind, Internet of things, iterative process, job automation, John Markoff, John von Neumann, Loebner Prize, medical malpractice, Nate Silver, natural language processing, nudge unit, obamacare, off grid, pattern recognition, Peace of Westphalia, race to the bottom, Ray Kurzweil, Rodney Brooks, self-driving car, Silicon Valley, Stanislav Petrov, Stephen Hawking, Steve Wozniak, strong AI, technological singularity, Tesla Model S, The Coming Technological Singularity, The Future of Employment, The Signal and the Noise by Nate Silver, Turing test, Vernor Vinge

By contrast, companies are usually required by corporate law to maximise value for their owners. This is not to say that companies will always chase profit no matter what the consequences. Most jurisdictions permit companies to act for wider social goals should they decide to do so in addition to profit-making and accord a company’s officers’ wide discretion to act in the company’s best interests. Clearly, corporate social responsibility and ethical considerations can and do form part of companies’ business plans. However, considerations of doing good are often secondary to or at the very least in tension with the requirement to create value for shareholders.14 Under most legal systems, profit-making entities are accountable to their owners, who can challenge the actions of directors.15 In one infamous example, the automobile industry pioneer Henry Ford declared that “[m]y ambition is to employ still more men, to spread the benefits of this industrial system to the greatest possible number, to help them build up their lives and their homes”.

See, for instance, Pierre Pellegrin, “Aristotle’s Politics”, in The Oxford Handbook of Aristotle, edited by Christopher Shields (Oxford: Oxford University Press, 2012), 558–585. 14See, for example, Thomas Donaldson and Lee E. Preston, “The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications”, The Academy of Management Review, Vol. 20, No. 1 (January 1995), 65–91; David Hawkins, Corporate Social Responsibility: Balancing Tomorrow’s Sustainability and Today’s Profitability (Hampshire, UK and New York, NY: Springer, 2006). 15Christian Leuz, Dhananjay Nanda, and Peter Wysocki, “Earnings Management and Investor Protection: An International Comparison”, Journal of Financial Economics, Vol. 69, No. 3 (2003), 505–527. 16Dodge v. Ford Motor Co., 170 N.W. 668 (Mich. 1919). 17The full text is available at: http://​archive.​tobacco.​org/​History/​540104frank.​html, accessed 1 June 2018. 18Kelly D.


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Tailspin: The People and Forces Behind America's Fifty-Year Fall--And Those Fighting to Reverse It by Steven Brill

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, airport security, American Society of Civil Engineers: Report Card, asset allocation, Bernie Madoff, Bernie Sanders, Blythe Masters, Bretton Woods, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, carried interest, clean water, collapse of Lehman Brothers, collective bargaining, computerized trading, corporate governance, corporate raider, corporate social responsibility, Credit Default Swap, currency manipulation / currency intervention, Donald Trump, ending welfare as we know it, failed state, financial deregulation, financial innovation, future of work, ghettoisation, Gordon Gekko, hiring and firing, Home mortgage interest deduction, immigration reform, income inequality, invention of radio, job automation, knowledge economy, knowledge worker, labor-force participation, laissez-faire capitalism, Mahatma Gandhi, Mark Zuckerberg, mortgage tax deduction, new economy, obamacare, old-boy network, paper trading, performance metric, post-work, Potemkin village, Powell Memorandum, quantitative hedge fund, Ralph Nader, ride hailing / ride sharing, Robert Bork, Robert Gordon, Robert Mercer, Ronald Reagan, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, telemarketer, too big to fail, trade liberalization, union organizing, Unsafe at Any Speed, War on Poverty, women in the workforce, working poor

“Too many CEOs”: Alana Semuels, “How to Stop Short-Term Thinking at America’s Companies,” The Atlantic, December 30, 2016, https://www.theatlantic.com/​business/​archive/​2016/​12/​short-term-thinking/​511874/. “All too often”: Hillary Clinton, “Being Pro-Business Doesn’t Mean Hanging Consumers Out to Dry,” Quartz: https://qz.com/​529303/​hillary-clinton-being-pro-business-doesnt-mean-hanging-consumers-out-to-dry/. corporate charters began: Lyman Johnson, “Corporate Law and the History of Corporate Social Responsibility,” Research Handbook on the History of Company and Corporate Law, 2017. https://ssrn.com/​abstract=2962432. Lipton asserted: Martin Lipton, “Takeover Bids in the Target Boardroom,” Business Lawyer, November 1979. the New York Times Company did in 1969: Joe Nocera, “How Punch Protected the Times,” New York Times, October 1, 2012, http://www.nytimes.com/​2012/​10/​02/​opinion/​nocera-how-punch-protected-the-times.html.

Unilever’s stock: Historical New York Stock Exchange data. Polman had to fight off: Martinne Geller and Pamela Barbaglia, “Kraft Heinz Bids $143 Billion for Unilever in Global Brand Grab,” Reuters, February 17, 2017, http://www.reuters.com/​article/​us-unilever-m-a-kraft/​kraft-heinz-bids-143-billion-for-unilever-in-global-brand-grab-idUSKBN15W18Y. “CEOs need not aspire”: http://www.nationalreview.com/​article/​446342/​corporate-social-responsibility-unilever-ceo-exemplifies-its-hypocrisy. Polman announced a plan: Chad Bray, “Unilever to Sell Its Spreads Business and Restructure,” New York Times, April 6, 2017, https://www.nytimes.com/​2017/​04/​06/​business/​dealbook/​unilever-spreads.html?_r=0. “Do we choose”: Thomas Buckley and Matthew Campell, “The Fresh Scent of Success,” Bloomberg Businessweek, September 4, 2017. 4 THE GREENING OF THE FIRST AMENDMENT we will call Jones: I was there; interviews with Jones.


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Capitalism 3.0: A Guide to Reclaiming the Commons by Peter Barnes

Albert Einstein, car-free, clean water, collective bargaining, corporate governance, corporate personhood, corporate raider, corporate social responsibility, dark matter, diversified portfolio, en.wikipedia.org, hypertext link, Isaac Newton, James Watt: steam engine, jitney, money market fund, new economy, patent troll, profit maximization, Ronald Coase, telemarketer, The Wealth of Nations by Adam Smith, transaction costs, War on Poverty, Yogi Berra

They contend that corporations were once dedicated to public purposes, escaped their bounds, and can be put back in. They recall a time when companies were rooted in their communities, hired workers for life, and contributed to local charities. The trouble is, those days are irreversibly gone. Today, owners live nowhere near workers, labor and nature are costs to be minimized, and it’s hard to see what might displace profit as the organizing principle for publicly traded corporations. SOCIALLY RESPONSIBLE SHAREHOLDERS Managers are ultimately responsible to shareholders, so if shareholders demanded social responsibility, perhaps managers would pay attention. That’s the thinking behind socially responsible investing. Could this tactic tame corporations? Partisans of this approach employ two techniques: screened investment (putting money in “good” companies and withholding it from “bad” ones) and shareholder activism.


pages: 196 words: 57,974

Company: A Short History of a Revolutionary Idea by John Micklethwait, Adrian Wooldridge

affirmative action, barriers to entry, Bonfire of the Vanities, borderless world, business process, Charles Lindbergh, Corn Laws, corporate governance, corporate raider, corporate social responsibility, creative destruction, credit crunch, crony capitalism, double entry bookkeeping, Etonian, hiring and firing, industrial cluster, invisible hand, James Watt: steam engine, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, knowledge economy, knowledge worker, laissez-faire capitalism, manufacturing employment, market bubble, mittelstand, new economy, North Sea oil, race to the bottom, railway mania, Ronald Coase, Silicon Valley, six sigma, South Sea Bubble, Steve Jobs, Steve Wozniak, strikebreaker, The Nature of the Firm, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade route, transaction costs, tulip mania, wage slave, William Shockley: the traitorous eight

Mark Hanna (1837–1904), a Cleveland steel magnate, became Republican National Chairman and helped to make William McKinley president. And companies began to hire public-relations advisers, notably Ivy Lee (1877–1934), who almost managed to smooth over the Rockefellers’ brutal suppression of the 1913–1914 miners’ strike against the Colorado Fuel and Iron Company.29 But it was not all just spin. The second thing was the growth of what would now be called corporate social responsibility. As we have already seen, Rosenwald thought it was good business to set up a pension fund for Sears workers. Many other big companies made positive efforts to cement the bond between capital and labor. U.S. Steel, for instance, spent $10 million a year on employee welfare programs—“to disarm the prejudice against trusts,” as the chairman of the board informed his colleagues. International Harvester established a profit-sharing plan.30 Company towns sprang up across America.


pages: 169 words: 56,250

Startup Communities: Building an Entrepreneurial Ecosystem in Your City by Brad Feld

barriers to entry, cleantech, cloud computing, corporate social responsibility, G4S, Grace Hopper, job satisfaction, Kickstarter, Lean Startup, minimum viable product, Network effects, paypal mafia, Peter Thiel, place-making, pre–internet, Richard Florida, Ruby on Rails, Silicon Valley, Silicon Valley startup, smart cities, software as a service, Steve Jobs, text mining, Y Combinator, zero-sum game, Zipcar

I assumed that you started philanthropy when you got older, upon retirement. I was naïve due to my laser focus on my business. Brad Feld and his wife Amy Batchelor had the same realization several years earlier when I talked to him about it. He challenged me with the words, “If not us, who? If not now, when?” I began an exploration to understand what other people around the United States were doing to bring corporate social responsibility into their startups. I noticed the great work the Marc Benioff (Salesforce.com CEO) and Suzanne DiBanca (Salesforce.com Foundation Executive Director) were doing. They had a model of 1/1/1 where they gave 1 percent of equity, 1 percent of time, and 1 percent of product to the Salesforce.com Foundation contribute back to their community in exchange for the support their community had given them in launching their company.


pages: 207 words: 59,298

The Gig Economy: A Critical Introduction by Jamie Woodcock, Mark Graham

Airbnb, Amazon Mechanical Turk, autonomous vehicles, barriers to entry, British Empire, business process, business process outsourcing, call centre, collective bargaining, commoditize, corporate social responsibility, crowdsourcing, David Graeber, deindustrialization, disintermediation, en.wikipedia.org, full employment, future of work, gender pay gap, gig economy, global value chain, informal economy, information asymmetry, inventory management, Jaron Lanier, Jeff Bezos, job automation, knowledge economy, Lyft, mass immigration, means of production, Network effects, new economy, Panopticon Jeremy Bentham, planetary scale, precariat, rent-seeking, RFID, ride hailing / ride sharing, Ronald Reagan, self-driving car, sentiment analysis, sharing economy, Silicon Valley, Silicon Valley ideology, TaskRabbit, The Future of Employment, transaction costs, Travis Kalanick, two-sided market, Uber and Lyft, Uber for X, uber lyft, union organizing, women in the workforce, working poor, young professional

We know little about whether workers enjoy their jobs, how precarious their income is, how vulnerable they are to change, whether they are paid a living wage, or whether they face discrimination or dangerous working conditions. The gig economy, in short, is defined by opacity and alienation. But it need not be that way. We agree with Susskind that clients want outcomes. However, they also want more than that. How many of us would knowingly support companies that we know are actively engaging in destructive production practices? Indeed, a central reason why large companies spend so much money on corporate social responsibility is to ensure that they are not perceived as unethical. This desire for companies to be seen to be doing the right thing in order to avoid the reputational damage that could come with bad press has sparked an immense range of kitemarks, schemes and standards, all with the intent of informing consumers that the commodities that they buy are produced in ethically sensitive ways. There is always a danger here that such schemes can simply de-link the relationships between consumerism, capitalist production and global poverty (Cook, 2004; Richey and Ponte, 2011).1 However, on the whole, it appears undeniable that individuals and businesses are more concerned than ever about what lies on the other side of the supply chains that they embed themselves into as consumers.


pages: 217 words: 63,287

The Participation Revolution: How to Ride the Waves of Change in a Terrifyingly Turbulent World by Neil Gibb

Airbnb, Albert Einstein, blockchain, Buckminster Fuller, call centre, carbon footprint, Clayton Christensen, collapse of Lehman Brothers, corporate social responsibility, creative destruction, crowdsourcing, disruptive innovation, Donald Trump, gig economy, iterative process, job automation, Joseph Schumpeter, Khan Academy, Kibera, Kodak vs Instagram, Mark Zuckerberg, Menlo Park, Minecraft, Network effects, new economy, performance metric, ride hailing / ride sharing, shareholder value, side project, Silicon Valley, Silicon Valley startup, Skype, Snapchat, Steve Jobs, the scientific method, Thomas Kuhn: the structure of scientific revolutions, trade route, urban renewal

If you work at St Jude’s, you know you are making a difference in the world, and working for an organisation that means and does what it says. The millennial generation’s lack of interest in their predecessors’ way of life is actually a searing indictment of how empty and meaningless they see it has become. Why would they sign up to work for a company that only exists to make money for its shareholders, that doesn’t really give a damn about its employees or the environment? (And, no, the fact you have a Corporate Social Responsibility program doesn’t cut it – we mean, really.) Why would they engage with a political system that has been seen to fail to deliver on its promises over and over again, that is so full of the kind of rhetoric that Sorkin favours, but so poor on delivery? What is great about the millennials is that they are a generation that has developed a highly-tuned bullshit detector. The millennials are the Internet generation, and that has made a profound difference to how they think and operate.


pages: 230 words: 62,294

The Coffee Book: Anatomy of an Industry From Crop to the Last Drop by Gregory Dicum, Nina Luttinger

California gold rush, clean water, corporate social responsibility, cuban missile crisis, Edward Lloyd's coffeehouse, European colonialism, Honoré de Balzac, illegal immigration, land reform, land tenure, open economy, price stability, Ray Oldenburg, The Great Good Place

Ryan and Alan Thein Durning, Stuff: The Secret Lives of Everyday Things (Seattle, WA: Northwest Environment Watch, 1997), 7–12. 4 National Marketing Institute, “Organic Food and Beverage Sales Increase 18 Percent” Press release, February 22, 2005. 5 Datamonitor, “Natural Food and Drinks Report,” 2003. 6 Paul H. Ray, The Cultural Creatives: How 50 Million People Are Changing the World (New York: Harmony Books, 2000). 7 Natural Marketing Institute, 2005. Corporate Social Responsibility, Consumer Understanding and Influence. Press release, August 18, 2005. 8 Giovannucci, D. “Sustainable Coffee Survey of the North American Specialty Coffee Industry,” 2001. 9 National Coffee Association, personal interview with Joe DeRupo, Director of Communications and Public Relations, September 20, 2005. 10 SPINS, personal interview with David Browne, Director of Content Development, September 28, 2005. 11 National Coffee Association, “National Coffee Drinking Trends Report,” 2005. 12 Interviewed by TransFair USA, January, 2005. 13 Peter Fritsch, “An Oversupply of Coffee Beans Deepens Latin America’s Woes,” Wall Street Journal, July 8, 2002. 14 Fair Trade Federation, “Fair Trade Trends Report,” 2005. 15 Chris Willie, “The Birds and the Beans; Coffee Trees as Bird Habitats,” Audubon 96, no. 6 (November 1994): 58.


pages: 552 words: 168,518

MacroWikinomics: Rebooting Business and the World by Don Tapscott, Anthony D. Williams

accounting loophole / creative accounting, airport security, Andrew Keen, augmented reality, Ayatollah Khomeini, barriers to entry, Ben Horowitz, bioinformatics, Bretton Woods, business climate, business process, buy and hold, car-free, carbon footprint, Charles Lindbergh, citizen journalism, Clayton Christensen, clean water, Climategate, Climatic Research Unit, cloud computing, collaborative editing, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, commoditize, corporate governance, corporate social responsibility, creative destruction, crowdsourcing, death of newspapers, demographic transition, disruptive innovation, distributed generation, don't be evil, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, fault tolerance, financial innovation, Galaxy Zoo, game design, global village, Google Earth, Hans Rosling, hive mind, Home mortgage interest deduction, information asymmetry, interchangeable parts, Internet of things, invention of movable type, Isaac Newton, James Watt: steam engine, Jaron Lanier, jimmy wales, Joseph Schumpeter, Julian Assange, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, Marc Andreessen, Marshall McLuhan, mass immigration, medical bankruptcy, megacity, mortgage tax deduction, Netflix Prize, new economy, Nicholas Carr, oil shock, old-boy network, online collectivism, open borders, open economy, pattern recognition, peer-to-peer lending, personalized medicine, Ray Kurzweil, RFID, ride hailing / ride sharing, Ronald Reagan, Rubik’s Cube, scientific mainstream, shareholder value, Silicon Valley, Skype, smart grid, smart meter, social graph, social web, software patent, Steve Jobs, text mining, the scientific method, The Wisdom of Crowds, transaction costs, transfer pricing, University of East Anglia, urban sprawl, value at risk, WikiLeaks, X Prize, young professional, Zipcar

After all, competition through free enterprise and open markets may remain at the heart of a dynamic economy, but we can’t rely on competition and the pursuit of short-term economic gain alone to promote innovation and economic well-being. Vibrant markets rest on robust common foundations: a shared infrastructure of rules, institutions, knowledge, standards, and technologies provided by a mix of public and private sector initiative. 4. Integrity Years ago corporate social responsibility advocates coined the optimistic adage, “you do well by doing good.” They were trying to make a business case for good corporate behavior. Few were persuaded. The main reason for the lack of success in winning support for corporate responsibility was that the “doing well by doing good” adage was not true. Many companies did well by being bad. Creative accounting, unfair labor practices, corporate secrecy, monopolistic behaviors, externalizing costs to society, and shady environmental behaviors could help beef up the bottom line.

Lauber spends most of her days thinking about how Nike can reach a point at which it will never use another new raw material, ever again. Old shoes would be recycled and turned into new ones. T-shirts, handbags, and sports apparel would all be wholly recyclable too. Customers could come back for as many new designs as money can buy without Nike extracting another scarce resource or worrying about hundreds of millions of well-worn cross-trainers taking up space in the world’s landfills. “This isn’t just corporate social responsibility,” says Lauber. “Our lab is focused on much bigger industry shifts—we’re making investments in initiatives that will take us to the new green economy.” So far, so good, right? Except, here’s Lauber’s problem. Nike is developing a whole portfolio of sustainable technologies, many of which are not core to Nike’s business model. Lauber knows that countless other companies are investing in new green technologies too, but right now there is no easy way of sharing their discoveries.


pages: 236 words: 66,081

Cognitive Surplus: Creativity and Generosity in a Connected Age by Clay Shirky

Andrew Keen, Brewster Kahle, Burning Man, citizen journalism, corporate social responsibility, Dean Kamen, experimental economics, experimental subject, fundamental attribution error, invention of movable type, invention of the telegraph, Kevin Kelly, means of production, meta analysis, meta-analysis, Nelson Mandela, New Urbanism, Nicholas Carr, social software, Steve Ballmer, The Nature of the Firm, the scientific method, ultimatum game

CHAPTER 7: Looking for the Mouse 185 notes in his book The Success of Open Source: Steven Weber, The Success of Open Source (Cambridge, MA: Harvard University Press, 2005): 272. 188 He got a loan to enter the indulgence-printing business: The British Library discusses Gutenberg’s printing of indulgences in its documentation of Gutenberg’s Bible: http://www.bl.uk/treasures/gutenberg/indulgences.html (accessed January 9, 2010). 188 John Tetzel, the head pardoner for German territories: Tetzel’s place in history was largely secured by Martin Luther’s objections to indulgences in 1517, but his name recently reappeared when the Catholic Church brought back indulgences in 2008; in discussing this change, John Allen references Tetzel’s phrase in the Room for Debate blog, http://roomfordebate.blogs.nytimes.com/2009/02/13/sin-and-its-indulgences (accessed January 7, 2010). 190 As Elizabeth Eisenstein notes in The Printing Press as an Agent of Change: Elizabeth Eisenstein, The Printing Press as an Agent of Change: Communications and Cultural Transformations in Early-Modern Europe (Cambridge, U.K.: Cambridge University Press, 1980). 192 a computer system called PLATO: Elisabeth Van Meer discusses this history in “PLATO: From Computer-Based Education to Corporate Social Responsibility,” Iterations: An Interdisciplinary Journal of Software History (2003): 6-22. 196 “The behavior you’re seeing is the behavior you’ve designed for”: Joshua Porter, “The Behavior You’re Seeing Is the Behavior You’ve Designed For,” Bokardo, July 28, 2009, http://bokardo.com/archives/the-behavior-youve-designed-for (accessed January 10, 2010). 203 One of the most parsimonious examples of this pattern on the web is from JavaRanch: “Be Nice,” JavaRanch, http://faq.javaranch.com/java/BeNice (accessed January 10, 2010). 203 it sometimes upgraded its software every half hour: Nisan Gabbay, “Flickr Case Study: Still About Tech for Exit?”


pages: 204 words: 66,619

Think Like an Engineer: Use Systematic Thinking to Solve Everyday Challenges & Unlock the Inherent Values in Them by Mushtak Al-Atabi

3D printing, agricultural Revolution, Albert Einstein, Barry Marshall: ulcers, Black Swan, business climate, call centre, Clayton Christensen, clean water, cognitive bias, corporate social responsibility, dematerialisation, disruptive innovation, Elon Musk, follow your passion, global supply chain, happiness index / gross national happiness, invention of the wheel, iterative process, James Dyson, Kickstarter, knowledge economy, Lao Tzu, Lean Startup, On the Revolutions of the Heavenly Spheres, remote working, shareholder value, six sigma, Steve Jobs, Steven Pinker

Nowadays, more and more global coffee chains try to give the coffee bean farmers a fair deal. This is another example of understanding what a supplier values and delivering that. Fair deals are desirable not only by suppliers but also some customer segments that are equity sensitive. 11.2.5 Society Value Increasingly, businesses are expected to be responsible towards the environment and the societies they operate within. Nowadays, Corporate Social Responsibility (CSR) represents a key element of the operation of the multinational corporations with dedicated departments and budgets. 11.3 Business Model (Entrepreneurial Ecosystem) The entrepreneurial ecosystem is a description of the environment in which the value proposition is created and delivered. This section is largely inspired by the concept of Business Model Canvas outlined in ‘Business Model Generation’ by Alexander Osterwalder and Yves Pigneur.


pages: 224 words: 69,494

Mobility: A New Urban Design and Transport Planning Philosophy for a Sustainable Future by John Whitelegg

active transport: walking or cycling, Berlin Wall, British Empire, car-free, conceptual framework, congestion charging, corporate social responsibility, decarbonisation, energy transition, eurozone crisis, glass ceiling, Intergovernmental Panel on Climate Change (IPCC), megacity, meta analysis, meta-analysis, New Urbanism, peak oil, post-industrial society, price mechanism, Right to Buy, smart cities, telepresence, the built environment, The Death and Life of Great American Cities, The Spirit Level, transit-oriented development, urban planning, urban sprawl

Improvements in other transport modes will see people substituting air with rail travel, for example, when travelling from the UK to continental Europe. Businesses will replace physical travel with virtual meetings due to improved telecommunication. High speed internet will see video-conferencing and tele-presence systems commonplace in offices. The MI foresees a cultural-change in organisations towards travel through de-incentivising foreign travel and a stronger sense of corporate social responsibility. Constraining capacity: The BAU Scenario was based on DfT forecasts that included additional capacity at Stansted Airport and a third runway at Heathrow Airport. In the MI Scenario, we assume that the policy that sanctioned these additional runways would be reversed (as subsequently occurred under the 2010 Conservative-Liberal Democrat coalition government with respect to the third runway at Heathrow airport).


pages: 265 words: 71,143

Empires of the Weak: The Real Story of European Expansion and the Creation of the New World Order by Jason Sharman

British Empire, cognitive dissonance, colonial rule, corporate social responsibility, death of newspapers, European colonialism, joint-stock company, joint-stock limited liability company, land tenure, offshore financial centre, passive investing, Peace of Westphalia, performance metric, profit maximization, Scramble for Africa, South China Sea, spice trade, trade route, transaction costs

Yet because of the stickiness of internal routines, form and actual functioning often diverge, leading to pervasive window-dressing, ritual, or what is referred to as “de-coupling”: the difference between what should happen in theory, and what happens in practice. For example, the ideal contemporary firm (or university) is “client-centric,” closely engaged with “stakeholders,” has a flat hierarchy with listening bosses and empowered employees, and is deeply concerned with environmental sustainability, gender equality, and corporate social responsibility. But above all, this ideal firm efficiently provides the best goods and services in class at the lowest cost to its appreciative customers. Even when the corporate reality falls far short, this model of how things should be done is very powerful, for reasons that are only loosely connected with matters of profit and loss: “highly professionalized consultants who bring external blessings on an organization are often difficult to justify in terms of improved productivity, yet may be very important in maintaining internal and external legitimacy.”69 In governments likewise, “Administrators and politicians champion programs that are established but not implemented; managers gather information assiduously, but fail to analyze it; experts are hired not for advice but to signal legitimacy.”70 Legitimacy may even be more useful for success and survival than actually getting the job done.


pages: 391 words: 71,600

Hit Refresh: The Quest to Rediscover Microsoft's Soul and Imagine a Better Future for Everyone by Satya Nadella, Greg Shaw, Jill Tracie Nichols

"Robert Solow", 3D printing, Amazon Web Services, anti-globalists, artificial general intelligence, augmented reality, autonomous vehicles, basic income, Bretton Woods, business process, cashless society, charter city, cloud computing, complexity theory, computer age, computer vision, corporate social responsibility, crowdsourcing, Deng Xiaoping, Donald Trump, Douglas Engelbart, Edward Snowden, Elon Musk, en.wikipedia.org, equal pay for equal work, everywhere but in the productivity statistics, fault tolerance, Gini coefficient, global supply chain, Google Glasses, Grace Hopper, industrial robot, Internet of things, Jeff Bezos, job automation, John Markoff, John von Neumann, knowledge worker, Mars Rover, Minecraft, Mother of all demos, NP-complete, Oculus Rift, pattern recognition, place-making, Richard Feynman, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, side project, Silicon Valley, Skype, Snapchat, special economic zone, speech recognition, Stephen Hawking, Steve Ballmer, Steve Jobs, telepresence, telerobotics, The Rise and Fall of American Growth, Tim Cook: Apple, trade liberalization, two-sided market, universal basic income, Wall-E, Watson beat the top human players on Jeopardy!, young professional, zero-sum game

And education, he further notes, is innovation’s closest cousin in fueling growth. John Batelle, Wired’s co–founding editor, once wrote that “Business is humanity’s most resilient, iterative, and productive mechanism for creating change in the world.” He is right—and we business leaders need to take seriously our responsibilities as change leaders. I don’t say this for purposes of so-called corporate social responsibility, which is important but can also serve as little more than good PR. I say it because a better world is better for business. It’s important to be dedicated to creating great products, serving customers, and earning profits for our investors—but it’s not sufficient. We also need to think about the impact of our actions on the world and its citizens long into the future. Afterword “Why do I exist?”


Smart Cities, Digital Nations by Caspar Herzberg

Asian financial crisis, barriers to entry, business climate, business cycle, business process, carbon footprint, clean water, cloud computing, corporate social responsibility, Dean Kamen, demographic dividend, Edward Glaeser, Edward Snowden, hive mind, Internet of things, knowledge economy, Masdar, megacity, New Urbanism, packet switching, QR code, remote working, RFID, rising living standards, risk tolerance, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley startup, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart meter, social software, special economic zone, Stephen Hawking, telepresence, too big to fail, trade route, transcontinental railway, upwardly mobile, urban planning, urban sprawl, women in the workforce, working poor, X Prize

Yunhe Pan, the company founder and executive vice president, had also served as the president of Zhejiang University, among the most prestigious in the province and nation. The company’s 5,000 employees are drawn regularly from the student body and faculty; it is not unusual to meet former professors of economics and engineering in corporate headquarters. Beyond the draw of talent, Insigma benefits from its positioning at the crossroads of the city’s elite and best-educated citizens. Since education had long been a primary conduit for Cisco’s corporate social responsibility, they had a great deal to discuss with Insigma’s leadership from the outset. Beyond that, the company’s approach to enabling municipalities was very much in accord with Cisco’s. A key preliminary step was establishing a research and development center in the city in 2011. This signaled both Cisco’s commitment to the region and a willingness to work with the very student population that was so essential to Insigma’s growth.


pages: 275 words: 77,017

The End of Money: Counterfeiters, Preachers, Techies, Dreamers--And the Coming Cashless Society by David Wolman

addicted to oil, Bay Area Rapid Transit, Berlin Wall, Bernie Madoff, bitcoin, Bretton Woods, carbon footprint, cashless society, central bank independence, collateralized debt obligation, corporate social responsibility, credit crunch, cross-subsidies, Diane Coyle, fiat currency, financial innovation, floating exchange rates, German hyperinflation, greed is good, Isaac Newton, Kickstarter, M-Pesa, Mahatma Gandhi, mental accounting, mobile money, money: store of value / unit of account / medium of exchange, offshore financial centre, P = NP, Peter Thiel, place-making, placebo effect, Ponzi scheme, Ronald Reagan, seigniorage, Silicon Valley, special drawing rights, Steven Levy, the payments system, transaction costs, WikiLeaks

As of October 2011, Eko had opened more than 200,000 bank accounts, and had another 800,000 people using the service to send money. That may sound like a lot, but the heat is on for Sinha to ramp the operation up another notch if he’s going to prove the company’s worth. As big-hearted as this model may be for encouraging savings and all the rest of it, Eko and other mobile banking initiatives are still businesses. One pinstriped-suit wearing Indian telecom executive put it this way: “This is not about corporate social responsibility or public relations. We want to get paid.” In the same breath, however, he painted an idealistic picture of branchless banking, and of what this technology could mean for his country and for the hundreds of millions of people in India struggling against abject poverty. “The backward classes and all that shit has gone on too long,” he says. “Every man should be socially included. To do that, you need financial inclusion.”


pages: 193 words: 63,618

The Fair Trade Scandal: Marketing Poverty to Benefit the Rich by Ndongo Sylla

British Empire, carbon footprint, corporate social responsibility, David Ricardo: comparative advantage, deglobalization, Doha Development Round, Food sovereignty, global value chain, illegal immigration, income inequality, income per capita, invisible hand, Joseph Schumpeter, labour mobility, land reform, market fundamentalism, mass immigration, means of production, Mont Pelerin Society, Naomi Klein, non-tariff barriers, offshore financial centre, open economy, Philip Mirowski, plutocrats, Plutocrats, price mechanism, purchasing power parity, Ronald Reagan, Scientific racism, selection bias, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, transatlantic slave trade, trickle-down economics, Washington Consensus, zero-sum game

When addressing the problems faced by the world’s poor, the tone is at once dark and optimistic, hence reaching out to various audiences (consumers, solidarity movements, alterglobalists, politicians, etc.). In other words, when neoliberals talk about rights, choice and freedoms, Fair Trade actors use words such as ‘consum’actors’, ‘ethical consumption’, ‘responsible consumption’, ‘corporate social responsibility’, ‘sustainable development’, ‘a cart, a vote’, ‘buycott’, etc. While these materials are rich, it is difficult to extract any substance from them, or any arguments that are free from partisan ornaments. This type of literature is filled with confusing information, contradictory statements 4 Sylla T02779 01 text 4 28/11/2013 13:04 introduction and academic laziness: philosophers arguing that consumers have a moral imperative to buy Fair Trade products, while governments are morally bound to back the movement; social scientists not paying due attention to the specificities of the contexts under study; confused economists relying on the authority of simplistic theoretical arguments provided by economic textbooks; priests being seduced by marketing; marketing gurus being satisfied with statistics they do not understand; supporters of free trade ignoring the fact that free trade has more similarities to than differences from Fair Trade; the alterglobalist movement attempting to redeem the free market … But the greater irony is that the new advocates of the poor unknowingly work for the rich, being themselves part of this category.


pages: 276 words: 74,074

The City Always Wins: A Novel by Omar Robert Hamilton

Berlin Wall, corporate social responsibility, crowdsourcing, dark matter

Gone, because we’re coming and first we’ll bring you war and you’ll run and we’ll seal iron chains around your neck and brand you with new names and drink your bodies in tea in your grandfathers’ houses and when we’re bored of war we will bring you peace and post-conflict resolution and interfaith dialogue and the United Nations and credit lines and television and when you choke we will grip your jaw firm in our hands and force open your mouth for structural adjustment and dialogue camps and off-Broadway plays and aid packages and first-party negotiations and mediated solutions and corporate social responsibility until your brain is reconfigured with our committee-designed computer-assisted algorithmically determined languages of unmeaning and you are finally and forever stripped of even the possibility of thought. * * * The triumph of it all is the vanquishing of imagination. There can be nothing new. No new music is imaginable, no new genre, no new memories to repackage and sell, no new stories or ideas or possibilities, no new happinesses.


pages: 307 words: 17,123

Behind the cloud: the untold story of how Salesforce.com went from idea to billion-dollar company--and revolutionized an industry by Marc Benioff, Carlye Adler

Albert Einstein, Apple's 1984 Super Bowl advert, barriers to entry, Bay Area Rapid Transit, business continuity plan, call centre, carbon footprint, Clayton Christensen, cloud computing, corporate social responsibility, crowdsourcing, iterative process, Maui Hawaii, Nicholas Carr, platform as a service, Silicon Valley, software as a service, Steve Ballmer, Steve Jobs

Suzanne officially joined as the executive director of the Salesforce Foundation in 2000. Over the next few months, we researched established corporate foundations and personally met with dozens of foundation directors, including those at Cisco Systems, Hewlett-Packard, and Levi Strauss & Co. There was much to learn from the experiences of these companies, and it was our intention to unearth the best practices in corporate social responsibility. Play #66: Make Your Foundation Part of Your Business Model The insight we gained from other companies was tremendous. eBay, for example, had endowed its foundation with $1 million of corporate stock prior to the company’s 1998 initial public 140 The Corporate Philanthropy Playbook offering. It was one of the pioneers in providing company equity to fund philanthropic goals, and we were captivated by the power of this model.


pages: 254 words: 14,795

Poorly Made in China: An Insider's Account of the Tactics Behind China's Production Game by Paul Midler

barriers to entry, corporate social responsibility, currency peg, Deng Xiaoping, disintermediation, full employment, illegal immigration, Kickstarter, new economy, out of africa, price discrimination, unpaid internship, urban planning

He had once been an agent, just like Miss Lee, and when one of his biggest customers placed a sizable order along with a substantial deposit, he recognized his chance and delayed shipment of the order long enough until he had found a building to rent. He then purchased some equipment and filled the bulk of the order. In his office, Stanley delivered a small speech about all that he was doing for his employees. He had set up a karaoke lounge at the factory, he said, where workers could spend their evenings. He peppered his language with buzzwords like “corporate social responsibility” and said that he had initiated a profit-sharing plan. When we went onto the factory floor later, I buttonholed a few workers and asked them if they had anything like a profit-sharing scheme in place. Aside from the usual Chinese New Year bonus—the one that most companies gave out—the workers could not name any such arrangement. It may have been the amount of time I had already spent working other plants, but Stanley came off as disingenuous.


pages: 369 words: 80,355

Too Big to Know: Rethinking Knowledge Now That the Facts Aren't the Facts, Experts Are Everywhere, and the Smartest Person in the Room Is the Room by David Weinberger

airport security, Alfred Russel Wallace, Amazon Mechanical Turk, Berlin Wall, Black Swan, book scanning, Cass Sunstein, commoditize, corporate social responsibility, crowdsourcing, Danny Hillis, David Brooks, Debian, double entry bookkeeping, double helix, en.wikipedia.org, Exxon Valdez, Fall of the Berlin Wall, future of journalism, Galaxy Zoo, Hacker Ethic, Haight Ashbury, hive mind, Howard Rheingold, invention of the telegraph, jimmy wales, Johannes Kepler, John Harrison: Longitude, Kevin Kelly, linked data, Netflix Prize, New Journalism, Nicholas Carr, Norbert Wiener, openstreetmap, P = NP, Pluto: dwarf planet, profit motive, Ralph Waldo Emerson, RAND corporation, Ray Kurzweil, Republic of Letters, RFID, Richard Feynman, Ronald Reagan, semantic web, slashdot, social graph, Steven Pinker, Stewart Brand, technological singularity, Ted Nelson, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Whole Earth Catalog, X Prize

There is, of course, a balance here, for you do not want local leaders to make decisions that work against the good of the whole. This is one reason that collaborative networks often structure themselves into fairly autonomous modules (as with Linux and Debian): Local expertise can have more effect, with less risk to the whole. Fifth, when decisions are made locally throughout the network, they are likely to express the interests of the local members who, typically, are volunteers. This is one way to make “corporate social responsibility” more than a bullet item on a corporate PowerPoint slide. Of course, all of the networked collaborative efforts we’ve looked at also have structures in place to ensure that local units or individuals don’t stray too far off the agreed-upon course. Sixth, hierarchical organizations that rest the pointy end of the pyramid on the back of a single human being are not as resilient as organizations that distribute leadership throughout a connected network.


pages: 299 words: 83,854

Shortchanged: Life and Debt in the Fringe Economy by Howard Karger

big-box store, blue-collar work, corporate social responsibility, credit crunch, delayed gratification, financial deregulation, fixed income, illegal immigration, labor-force participation, late fees, London Interbank Offered Rate, low skilled workers, microcredit, mortgage debt, negative equity, New Journalism, New Urbanism, offshore financial centre, payday loans, predatory finance, race to the bottom, Silicon Valley, Telecommunications Act of 1996, telemarketer, underbanked, working poor

FiSCA demanded that “the Federal Reserve Bank should require, as a condition to approving the acquisition, that Bank of America make commercial banking facilities available to check cashers and prohibit the bank from enforcing its discriminatory blanket withholding of services from the entire industry.”37 Lest one believe that BofA’s refusal to provide financial services to the check-cashing industry is grounded in corporate social responsibility, the bank charges $5 to cash checks in many states, which is the same as, if not more than, what many commercial check cashers charge. The fringe economy is clearly too profitable to be overlooked by mainstream financial institutions.15 17 Our customer base is very large, diverse, and rapidly growing–it’s really mainstream America. –ACE Cash Express, 2004 Annual Report 2 Why the Fringe Economy Is Growing The almost exponential growth of the fringe economy during the mid-1990s was baffling, especially since real incomes were rising and the numbers of people in poverty were dropping.


pages: 290 words: 87,084

Branded Beauty by Mark Tungate

augmented reality, Berlin Wall, call centre, corporate social responsibility, double helix, East Village, Fall of the Berlin Wall, Frank Gehry, haute couture, invention of the printing press, joint-stock company, liberal capitalism, placebo effect, Ray Kurzweil, Silicon Valley, stem cell

This, then, was the Body Shop brand: the colourful products with their odd names (Banana Hair Conditioner, Dewberry Body Lotion), the ethical business practices, the succession of worthy causes, and corkscrew-curled Anita in the eye of it all, trekking to deserts and rainforests to bring us back new and exotic ways of scrubbing our skin and washing our hair. As Paul Vallely writes, ‘it was an extraordinary achievement – she had taken cruelty-free products out of hippie health-food shops and into the high street… she became a key figure in turning the idea of corporate social responsibility… from an idealistic fringe notion into a mainstream concern’. Roddick was a one-woman PR machine, but that does not mean she didn’t rely on outside help. The company established a formal marketing department around the time it moved into the United States; it also hired an advertising agency (‘Body Shop creates space for a voice in marketing’, Independent, 1 July 1995). Its ads maintained an activist tone, however.


pages: 309 words: 81,975

Brave New Work: Are You Ready to Reinvent Your Organization? by Aaron Dignan

"side hustle", activist fund / activist shareholder / activist investor, Airbnb, Albert Einstein, autonomous vehicles, basic income, Bertrand Russell: In Praise of Idleness, bitcoin, Black Swan, blockchain, Buckminster Fuller, Burning Man, butterfly effect, cashless society, Clayton Christensen, clean water, cognitive bias, cognitive dissonance, corporate governance, corporate social responsibility, correlation does not imply causation, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, David Heinemeier Hansson, deliberate practice, DevOps, disruptive innovation, don't be evil, Elon Musk, endowment effect, Ethereum, ethereum blockchain, Frederick Winslow Taylor, future of work, gender pay gap, Geoffrey West, Santa Fe Institute, gig economy, Google X / Alphabet X, hiring and firing, hive mind, income inequality, information asymmetry, Internet of things, Jeff Bezos, job satisfaction, Kevin Kelly, Kickstarter, Lean Startup, loose coupling, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, minimum viable product, new economy, Paul Graham, race to the bottom, remote working, Richard Thaler, shareholder value, Silicon Valley, six sigma, smart contracts, Social Responsibility of Business Is to Increase Its Profits, software is eating the world, source of truth, Stanford marshmallow experiment, Steve Jobs, TaskRabbit, the High Line, too big to fail, Toyota Production System, uber lyft, universal basic income, Y Combinator, zero-sum game

Unsurprisingly, these experiments were quickly shuttered by the governments presiding over the recessions that triggered them. In this century, for new forms of incorporation that prioritize purpose and public benefit to work, we need new investors and investment vehicles that align with our values. Rising to meet that challenge, impact investing reflects a growing desire among investors to generate returns through investments that provide a public benefit. As concepts such as corporate social responsibility and triple bottom line (social, environmental, economic) have become more well known, the market has grown into a $250 billion industry on its way to half a trillion or more in the next decade. Private equity firm TPG recently launched the Rise Fund, the largest fund of its kind thus far, with more than $2 billion in committed capital and a founder’s board that includes U2 frontman Bono, producer/philanthropist Jeff Skoll, Richard Branson, and Reid Hoffman.


pages: 280 words: 85,091

The Wisdom of Psychopaths: What Saints, Spies, and Serial Killers Can Teach Us About Success by Kevin Dutton

Asperger Syndrome, Bernie Madoff, business climate, corporate governance, corporate social responsibility, delayed gratification, epigenetics, Fellow of the Royal Society, G4S, impulse control, iterative process, John Nash: game theory, meta analysis, meta-analysis, Nicholas Carr, Norman Mailer, place-making, RAND corporation, Ronald Reagan, Steve Jobs, Steven Pinker, theory of mind, ultimatum game

Of course, once in situ, such corporate Attilas are then, according to Boddy’s analysis, “able to influence the moral climate of the whole organization” and wield “considerable power.” He closes with a damning indictment. It is psychopaths, he concludes, who are to blame for the global financial crisis, because their “single-minded pursuit of their own self-enrichment and self-aggrandizement to the exclusion of all other considerations has led to an abandonment of the old-fashioned concept of noblesse oblige, equality, fairness, or of any real notion of corporate social responsibility.” There’s no denying he might well be onto something. On the other hand, however, there’s society in general, proclaims Charles Elson, head of the Weinberg Center for Corporate Governance at the University of Delaware—who proposes that rather than laying the blame solely at the door of the corporate fat cats, it should, instead, also be pinned on a culture of moral malfeasance, in which truth is stretched on a rack of sententious self-interest, and ethical boundaries blurred way beyond anything of conscionable cartographical interest.


pages: 252 words: 78,780

Lab Rats: How Silicon Valley Made Work Miserable for the Rest of Us by Dan Lyons

Airbnb, Amazon Web Services, Apple II, augmented reality, autonomous vehicles, basic income, bitcoin, blockchain, business process, call centre, Clayton Christensen, clean water, collective bargaining, corporate governance, corporate social responsibility, creative destruction, cryptocurrency, David Heinemeier Hansson, Donald Trump, Elon Musk, Ethereum, ethereum blockchain, full employment, future of work, gig economy, Gordon Gekko, greed is good, hiring and firing, housing crisis, income inequality, informal economy, Jeff Bezos, job automation, job satisfaction, job-hopping, John Gruber, Joseph Schumpeter, Kevin Kelly, knowledge worker, Lean Startup, loose coupling, Lyft, Marc Andreessen, Mark Zuckerberg, McMansion, Menlo Park, Milgram experiment, minimum viable product, Mitch Kapor, move fast and break things, move fast and break things, new economy, Panopticon Jeremy Bentham, Paul Graham, paypal mafia, Peter Thiel, plutocrats, Plutocrats, precariat, RAND corporation, remote working, RFID, ride hailing / ride sharing, Ronald Reagan, Rubik’s Cube, Ruby on Rails, Sam Altman, Sand Hill Road, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, six sigma, Skype, Social Responsibility of Business Is to Increase Its Profits, software is eating the world, Stanford prison experiment, stem cell, Steve Jobs, Steve Wozniak, Stewart Brand, TaskRabbit, telemarketer, Tesla Model S, Thomas Davenport, Tony Hsieh, Toyota Production System, traveling salesman, Travis Kalanick, tulip mania, Uber and Lyft, Uber for X, uber lyft, universal basic income, web application, Whole Earth Catalog, Y Combinator, young professional

Ashoka was founded in 1980 by Bill Drayton, a onetime McKinsey consultant and federal government bureaucrat, who, like Dees, also has been called “the godfather of social entrepreneurship.” The organization now has more than four hundred employees in ninety-eight countries. Universities are adding programs not because employers request this but because “students are knocking down their doors,” Lax says. “They’re not happy with the state of corporate social responsibility, and they’re also not happy with how a traditional nonprofit works. They’re pushing for another way.” WIRPs: Well-Intentioned Rich People Academics have developed the intellectual underpinnings of the movement, but equally important are people I call WIRPs—well-intentioned rich people. Bill Gates is probably the best-known WIRP, but WIRPs are everywhere and most are not household names.


pages: 292 words: 85,151

Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, and Cheaper Than Yours (And What to Do About It) by Salim Ismail, Yuri van Geest

23andMe, 3D printing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, Ben Horowitz, bioinformatics, bitcoin, Black Swan, blockchain, Burning Man, business intelligence, business process, call centre, chief data officer, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, cognitive bias, collaborative consumption, collaborative economy, commoditize, corporate social responsibility, cross-subsidies, crowdsourcing, cryptocurrency, dark matter, Dean Kamen, dematerialisation, discounted cash flows, disruptive innovation, distributed ledger, Edward Snowden, Elon Musk, en.wikipedia.org, Ethereum, ethereum blockchain, game design, Google Glasses, Google Hangouts, Google X / Alphabet X, gravity well, hiring and firing, Hyperloop, industrial robot, Innovator's Dilemma, intangible asset, Internet of things, Iridium satellite, Isaac Newton, Jeff Bezos, Joi Ito, Kevin Kelly, Kickstarter, knowledge worker, Kodak vs Instagram, Law of Accelerating Returns, Lean Startup, life extension, lifelogging, loose coupling, loss aversion, low earth orbit, Lyft, Marc Andreessen, Mark Zuckerberg, market design, means of production, minimum viable product, natural language processing, Netflix Prize, NetJets, Network effects, new economy, Oculus Rift, offshore financial centre, PageRank, pattern recognition, Paul Graham, paypal mafia, peer-to-peer, peer-to-peer model, Peter H. Diamandis: Planetary Resources, Peter Thiel, prediction markets, profit motive, publish or perish, Ray Kurzweil, recommendation engine, RFID, ride hailing / ride sharing, risk tolerance, Ronald Coase, Second Machine Age, self-driving car, sharing economy, Silicon Valley, skunkworks, Skype, smart contracts, Snapchat, social software, software is eating the world, speech recognition, stealth mode startup, Stephen Hawking, Steve Jobs, subscription business, supply-chain management, TaskRabbit, telepresence, telepresence robot, Tony Hsieh, transaction costs, Travis Kalanick, Tyler Cowen: Great Stagnation, uber lyft, urban planning, WikiLeaks, winner-take-all economy, X Prize, Y Combinator, zero-sum game

A study by the G8 in 2013 estimates there are 688,000 social enterprises, generating $270 billion annually. These organizations come in many forms (Benefit or B Corporations, Triple Bottom Line, L3Cs, the Conscious Capital movement, the Slow Money movement) and leverage their MTPs to integrate social and environmental issues—as well as profits—into their business processes. This trend started with the rise of corporate social responsibility (CSR) programs in organizations. In 2012, 57 percent of the Fortune 500 published a CSR report—double the number from the previous year. The difference is that CSR initiatives are add-ons to most companies’ core business; for social enterprises, CSR initiatives are the core business. Martin Seligman, a leading expert on positive psychology, differentiates between three states of happiness: the pleasurable life (hedonistic, superficial), the good life (family and friends) and the meaningful life (finding purpose, transcending ego, working toward a higher good).


pages: 322 words: 84,752

Pax Technica: How the Internet of Things May Set Us Free or Lock Us Up by Philip N. Howard

Affordable Care Act / Obamacare, Berlin Wall, bitcoin, blood diamonds, Bretton Woods, Brian Krebs, British Empire, butter production in bangladesh, call centre, Chelsea Manning, citizen journalism, clean water, cloud computing, corporate social responsibility, creative destruction, crowdsourcing, digital map, Edward Snowden, en.wikipedia.org, failed state, Fall of the Berlin Wall, feminist movement, Filter Bubble, Firefox, Francis Fukuyama: the end of history, Google Earth, Howard Rheingold, income inequality, informal economy, Internet of things, Julian Assange, Kibera, Kickstarter, land reform, M-Pesa, Marshall McLuhan, megacity, Mikhail Gorbachev, mobile money, Mohammed Bouazizi, national security letter, Nelson Mandela, Network effects, obamacare, Occupy movement, packet switching, pension reform, prediction markets, sentiment analysis, Silicon Valley, Skype, spectrum auction, statistical model, Stuxnet, trade route, undersea cable, uranium enrichment, WikiLeaks, zero day

AccessNow, the main organization that lobbied corporations to keep communications networks running and pressured technology companies to stop selling software tools to dictators, organized the Silicon Valley Human Rights Conference in November 2011.23 The event was sponsored by Google, Facebook, Yahoo!, AT&T, Skype, and other technology firms, and it brought together the corporate leaders and foreign policy officials of major Western democratic nations to design policies for corporate social responsibility in the interest of international human rights. Similarly, the governments of the United States, the Netherlands, Sweden, and the European Union all created formal funding programs totaling more than $100 million to support digital activists working from within repressive regimes. At least seven conventions and conferences have been brokered by the foreign policy offices of key Western democratic countries since the Arab Spring.


pages: 207 words: 86,639

The New Economics: A Bigger Picture by David Boyle, Andrew Simms

Asian financial crisis, back-to-the-land, banking crisis, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, Bretton Woods, capital controls, carbon footprint, clean water, collateralized debt obligation, colonial rule, Community Supported Agriculture, congestion charging, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, delayed gratification, deskilling, en.wikipedia.org, energy transition, financial deregulation, financial exclusion, financial innovation, full employment, garden city movement, happiness index / gross national happiness, if you build it, they will come, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, Kickstarter, land reform, light touch regulation, loss aversion, mega-rich, microcredit, Mikhail Gorbachev, mortgage debt, neoliberal agenda, new economy, North Sea oil, Northern Rock, offshore financial centre, oil shock, peak oil, pensions crisis, profit motive, purchasing power parity, quantitative easing, Ronald Reagan, seigniorage, Simon Kuznets, sovereign wealth fund, special drawing rights, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, trickle-down economics, Vilfredo Pareto, Washington Consensus, wealth creators, working-age population

This is the difficulty when new economics encounters the mainstream. It is taken up, where it is taken up, by policy makers to solve specific problems, often without the ideological baggage that guaranteed its humanistic roots. Alternative economic indicators and social auditing, both developed at nef, became completely mainstream, but at some cost – government targets suffocated local initiative and social auditing pigeon holed corporate social responsibility in the public relations and accountancy departments. Energy taxation has been muddled by many of the governments that have enacted it – including the EU – but it is at least in place. Credit unions and community banks have sometimes bucked this trend, and remain a small but potent force. Other thinking, to underpin thriving local economies – local money flows, complementary currencies or the critique of the doctrine of comparative advantage – have barely filtered into mainstream assumptions at all, except among those creative and forward-thinking early adopters that exist in any government, however backward.


pages: 283 words: 85,824

The People's Platform: Taking Back Power and Culture in the Digital Age by Astra Taylor

A Declaration of the Independence of Cyberspace, American Legislative Exchange Council, Andrew Keen, barriers to entry, Berlin Wall, big-box store, Brewster Kahle, citizen journalism, cloud computing, collateralized debt obligation, Community Supported Agriculture, conceptual framework, corporate social responsibility, creative destruction, cross-subsidies, crowdsourcing, David Brooks, digital Maoism, disintermediation, don't be evil, Donald Trump, Edward Snowden, Fall of the Berlin Wall, Filter Bubble, future of journalism, George Gilder, Google Chrome, Google Glasses, hive mind, income inequality, informal economy, Internet Archive, Internet of things, invisible hand, Jane Jacobs, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Julian Assange, Kevin Kelly, Kickstarter, knowledge worker, Mark Zuckerberg, means of production, Metcalfe’s law, Naomi Klein, Narrative Science, Network effects, new economy, New Journalism, New Urbanism, Nicholas Carr, oil rush, peer-to-peer, Peter Thiel, plutocrats, Plutocrats, post-work, pre–internet, profit motive, recommendation engine, Richard Florida, Richard Stallman, self-driving car, shareholder value, sharing economy, Silicon Valley, Silicon Valley ideology, slashdot, Slavoj Žižek, Snapchat, social graph, Steve Jobs, Stewart Brand, technoutopianism, trade route, Whole Earth Catalog, WikiLeaks, winner-take-all economy, Works Progress Administration, young professional

Yet he also notes that while piracy signifies “a repudiation of information capitalism at one extreme,” it marks information capitalism’s “consummation” on the other.30 If Peter Sunde represents the first pole, Matt Mason, who took the conference stage at the Open Video Conference after Sunde’s image flickered out, embodies the second. Mason, author of the book The Pirate’s Dilemma: How Youth Culture Reinvented Capitalism, acknowledged that piracy can sometimes cut into profits. But in crisis, as they say, lies opportunity. He gave the example of drug companies distributing widely pirated copies of their patent medicines without charge. “They started winning corporate social responsibility awards,” Mason rhapsodized. “And all the advertising money in the world couldn’t help them do that.” Or take shoes; instead of suing a Japanese bootlegger for selling altered versions of their sneakers, Nike made a fortune appropriating the redesigns. “Pirates are taking over the good ship capitalism, but they’re not here to sink it. Instead they will plug the holes, keep it afloat, and propel it forward,” he promised.


pages: 327 words: 84,627

The Green New Deal: Why the Fossil Fuel Civilization Will Collapse by 2028, and the Bold Economic Plan to Save Life on Earth by Jeremy Rifkin

1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, American Society of Civil Engineers: Report Card, autonomous vehicles, Bernie Sanders, blockchain, borderless world, business cycle, business process, carbon footprint, collective bargaining, corporate governance, corporate social responsibility, creative destruction, decarbonisation, en.wikipedia.org, energy transition, failed state, ghettoisation, hydrogen economy, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invisible hand, Joseph Schumpeter, means of production, megacity, Network effects, new economy, off grid, oil shale / tar sands, peak oil, planetary scale, renewable energy credits, Ronald Reagan, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, smart grid, sovereign wealth fund, Steven Levy, the built environment, The Wealth of Nations by Adam Smith, Tim Cook: Apple, trade route, union organizing, urban planning, women in the workforce, zero-sum game

The PRA found that 70 percent of the UK banks recognized that climate change is now posing a risk to a wide range of assets across almost every field, “and they have started to assess how the transition to a low-carbon economy driven, for example, by government policy and technical change, may impact the business model of companies that banks are exposed to.” More disturbing, however, despite the awareness of the issue, only 10 percent of the banks were currently managing these risks “comprehensively,” and 30 percent of the banks “still only considered climate change a corporate social responsibility issue.”54 Concerned that the banking sector might not be fully aware of how quickly climate change is affecting investment risks across virtually every sector of the global economy, including potential stranded assets in the fossil fuel sector and closely coupled industries, Mark Carney stepped in a second time. Aside from his role as governor of the Bank of England, Carney also served as chairman of the Financial Stability Board (FSB) until the end of 2018, an international body that makes recommendations on the oversight of the global financial system.


pages: 1,199 words: 332,563

Golden Holocaust: Origins of the Cigarette Catastrophe and the Case for Abolition by Robert N. Proctor

bioinformatics, carbon footprint, clean water, corporate social responsibility, Deng Xiaoping, desegregation, facts on the ground, friendly fire, germ theory of disease, global pandemic, index card, Indoor air pollution, information retrieval, invention of gunpowder, John Snow's cholera map, language of flowers, life extension, New Journalism, optical character recognition, pink-collar, Ponzi scheme, Potemkin village, publication bias, Ralph Nader, Ronald Reagan, selection bias, speech recognition, stem cell, telemarketer, Thomas Kuhn: the structure of scientific revolutions, Triangle Shirtwaist Factory, Upton Sinclair, Yogi Berra

Entirely ignored is the disinformation environment, the deliberate effort to confuse and befuddle. The industry’s historians have been led to produce testimony that is phantasmagoric from the point of view of basic human psychology: there is no effort to understand the feelings created by visually seductive tobacco ads, for example, or the impact of sponsoring sports, music, and the arts. Or how warnings are made invisible by “wear-out,” or how impressions of “corporate social responsibility” are created by conspicuous displays of sheltering the homeless and caring for battered women. A slanted, ahistorical account of popular tobacco culture is deployed in court, with the industry virtually absent as a historical actor. Louis Kyriakoudes in his review of the industry’s use of historians hits this nail on the head, concluding that the historians present “a skewed history of the cigarette in which the tobacco industry all but ceases to exist.”25 Of course it doesn’t take a great deal of talent to dig up “awareness” or “deluge” materials and to code these for storage in the industry’s computers.

Package design is an effective and ubiquitous form of advertising, and no cigarettes should be sold in anything but a plain white wrapper accompanied by a graphic warning. Advertising bans should cover not just the product but also the name of the company making that product, and manufacturers should be barred from sponsoring sports, music, or any other cultural event, including philanthropy designed to create an illusion of “corporate social responsibility.” 4. Make warning labels on cigarette packs large, graphic, and disgusting. Tobacco packs are miniature mobile ads and the most common way smokers encounter their cigarettes. Psychologists have studied warning labels and found that certain kinds are more effective than others; some of the most graphic are powerful enough to make people return their cigarettes, and different images will of course resonate differently in different cultures.

Torroella (Brown & Williamson) to K. Daily, “Lucky Strike Sponsorships and Parallel Communications,” May 10, 1983, Bates 660921173–1182. 33. National Cancer Institute, The Role of the Media in Promoting and Reducing Tobacco Use—Monograph 19 (Bethesda, MD: USDHHS, 2008). In 2000 Nottingham University accepted £3.8 million from British American Tobacco to create an International Centre for Corporate Social Responsibility; see Derek Yach and Stella Aguinaga Bialous, “Junking Science to Promote Tobacco,” American Journal of Public Health 91 (2001): 1745–48. 34. Rogers & Cowan, “Final Report on Research for the RJR Social Responsibility Program,” Jan. 1984, Bates 502658739–8805. For “small business”: World Health Organization, “Tobacco Industry and Corporate Responsibility . . . An Inherent Contradiction,” Feb. 2003, WHO. 35.


pages: 293 words: 90,714

Copenhagenize: The Definitive Guide to Global Bicycle Urbanism by Mikael Colville-Andersen

active transport: walking or cycling, Airbnb, Albert Einstein, autonomous vehicles, business cycle, car-free, congestion charging, corporate social responsibility, Donald Trump, Edward Snowden, Enrique Peñalosa, functional fixedness, if you build it, they will come, Induced demand, intermodal, Jane Jacobs, Johann Wolfgang von Goethe, Kickstarter, Mahatma Gandhi, meta analysis, meta-analysis, neurotypical, out of africa, place-making, Ralph Waldo Emerson, self-driving car, sharing economy, smart cities, starchitect, transcontinental railway, urban planning, urban sprawl, Yogi Berra

In Denmark, Danish State Railways (DSB) has been transporting passengers with bikes almost since the bicycle was invented. Greater Copenhagen is served by the S-Train network—S-tog in Danish—and for many years passengers had to buy a reasonably priced bike ticket. In 2010, DSB decided to make bikes free on all their red S-Trains that transport people to and from the city from the far reaches of our urban sprawl. It was a bold move, but far from being an example of corporate social responsibility, it was simply a clever business model. They assumed correctly and rationally that bikes don’t travel alone, so by making it free, there were good odds of increasing the number of paying passengers. Boy, did they nail it. What started with inventive campaigns advertising the fact that bike tickets on the S-Trains would be eliminated—like placing a makeshift tunnel resembling a mock train compartment on the cycle track, complete with hot air heaters to warm cyclists, however briefly, on a cold December day—ended rather well for them.


pages: 324 words: 92,805

The Impulse Society: America in the Age of Instant Gratification by Paul Roberts

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, asset allocation, business cycle, business process, Cass Sunstein, centre right, choice architecture, collateralized debt obligation, collective bargaining, computerized trading, corporate governance, corporate raider, corporate social responsibility, creative destruction, crony capitalism, David Brooks, delayed gratification, disruptive innovation, double helix, factory automation, financial deregulation, financial innovation, fixed income, full employment, game design, greed is good, If something cannot go on forever, it will stop - Herbert Stein's Law, impulse control, income inequality, inflation targeting, invisible hand, job automation, John Markoff, Joseph Schumpeter, knowledge worker, late fees, Long Term Capital Management, loss aversion, low skilled workers, mass immigration, new economy, Nicholas Carr, obamacare, Occupy movement, oil shale / tar sands, performance metric, postindustrial economy, profit maximization, Report Card for America’s Infrastructure, reshoring, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, shareholder value, Silicon Valley, speech recognition, Steve Jobs, technoutopianism, the built environment, The Predators' Ball, the scientific method, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, Walter Mischel, winner-take-all economy

Many firms made peace with labor unions. They began making long-term investments in their workforces (for example, offering extensive employee training so workers could keep pace with rapidly changing technology). Health care and benefits became increasingly common. More and more, large firms were coming to resemble private welfare states. Their executives and boards may not have bought into the rhetoric of corporate social responsibility from management gurus such as Peter Drucker, but as makers of products for consumers, companies seemed to have grasped that their own prosperity was inseparable from the prosperity of those consumers. When General Motors CEO Charles Wilson, nominated by President Eisenhower to be defense secretary, was asked during his Senate confirmation hearing whether he would be able to make policy decisions that might harm his former employer, Wilson said yes, but insisted that such a decision was unlikely to come up, since national interests and corporate interests were almost perfectly aligned.


pages: 375 words: 88,306

The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism by Arun Sundararajan

additive manufacturing, Airbnb, AltaVista, Amazon Mechanical Turk, autonomous vehicles, barriers to entry, basic income, bitcoin, blockchain, Burning Man, call centre, collaborative consumption, collaborative economy, collective bargaining, commoditize, corporate social responsibility, cryptocurrency, David Graeber, distributed ledger, employer provided health coverage, Erik Brynjolfsson, Ethereum, ethereum blockchain, Frank Levy and Richard Murnane: The New Division of Labor, future of work, George Akerlof, gig economy, housing crisis, Howard Rheingold, information asymmetry, Internet of things, inventory management, invisible hand, job automation, job-hopping, Kickstarter, knowledge worker, Kula ring, Lyft, Marc Andreessen, megacity, minimum wage unemployment, moral hazard, moral panic, Network effects, new economy, Oculus Rift, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, peer-to-peer rental, profit motive, purchasing power parity, race to the bottom, recommendation engine, regulatory arbitrage, rent control, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Coase, Ross Ulbricht, Second Machine Age, self-driving car, sharing economy, Silicon Valley, smart contracts, Snapchat, social software, supply-chain management, TaskRabbit, The Nature of the Firm, total factor productivity, transaction costs, transportation-network company, two-sided market, Uber and Lyft, Uber for X, uber lyft, universal basic income, Zipcar

That may work for many of them—until the day that it doesn’t. That’s also the day that taxpayers could be handed the bill, which is why Washington needs to start asking some tough policy questions.”17 In October 2015, a diverse group of individuals signed a letter proposing portable benefits for sharing economy workers. The collective was spearheaded by the Peers co-founder Natalie Foster; a former White House senior advisor, Greg Nelson; a corporate social responsibility expert and freelancer, Libby Reder; and the former McKinsey consultant Lenny Mendoza. I was a signatory, as were the Freelancers Union founder Sara Horowitz and the coworker.org founder Michelle Miller, both of whom I discussed in chapter 7. The 40 or so other initial signatories included the CEOs of Etsy (Chad Dickerson), Handy (Oisin Hanrahan), and Instacart (Apoorva Mehta); Lyft’s president John Zimmer and its CEO Logan Green; the Silicon Valley icon Tim O’Reilly; the influential labor organizer and former SEIU president Andy Stern; the venture capitalists Brad Burnham, Simon Rothman, and Hunter Walk; as well as the leadership of the Aspen Institute, the Roosevelt Institute, the Institute for the Future, and a few other professors, from Berkeley, Harvard and Northwestern.


pages: 329 words: 95,309

Digital Bank: Strategies for Launching or Becoming a Digital Bank by Chris Skinner

algorithmic trading, AltaVista, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, augmented reality, bank run, Basel III, bitcoin, business cycle, business intelligence, business process, business process outsourcing, buy and hold, call centre, cashless society, clean water, cloud computing, corporate social responsibility, credit crunch, crowdsourcing, cryptocurrency, demand response, disintermediation, don't be evil, en.wikipedia.org, fault tolerance, fiat currency, financial innovation, Google Glasses, high net worth, informal economy, Infrastructure as a Service, Internet of things, Jeff Bezos, Kevin Kelly, Kickstarter, M-Pesa, margin call, mass affluent, MITM: man-in-the-middle, mobile money, Mohammed Bouazizi, new economy, Northern Rock, Occupy movement, Pingit, platform as a service, Ponzi scheme, prediction markets, pre–internet, QR code, quantitative easing, ransomware, reserve currency, RFID, Satoshi Nakamoto, Silicon Valley, smart cities, social intelligence, software as a service, Steve Jobs, strong AI, Stuxnet, trade route, unbanked and underbanked, underbanked, upwardly mobile, We are the 99%, web application, WikiLeaks, Y2K

Perhaps you can give us a little background to start with as to why M-PESA has been so successful in Kenya and why did Vodafone get into this space? The product originally came into existence as a result of a pilot we operated in Kenya with its original conception dating back to 2004 – 2005. Back then Nick Hughes, who worked in Vodafone Group’s Corporate and Social Responsibility Unit, was looking at how to pilot mobile telephone payments for social inclusion and microfinance. Being in Corporate Social Responsibility, it’s was difficult to get access to Vodafone’s product development engine, - which focused on more mainstream products. However Nick was able to get agreement that if he could secure external funding, the project would be supported. Nick had a conversation with the UK’s Department for International Development (DFID) and that led to an application for funding from a Challenge Fund The application was approved and was awarded £1m, which Vodafone matched in terms of manpower, staff and marketing materials, and that started the pilot in Kenya in 2006-2007.


pages: 307 words: 94,069

Switch: How to Change Things When Change Is Hard by Chip Heath, Dan Heath

Atul Gawande, Cass Sunstein, clean water, cognitive dissonance, corporate social responsibility, en.wikipedia.org, fundamental attribution error, impulse control, longitudinal study, medical residency, Piper Alpha, placebo effect, publish or perish, Richard Thaler, shareholder value, Silicon Valley, Steve Jobs

For additional insight into this case, check out an article by Rao and Robert Sutton (September 2008), “The Ergonomics of Innovation,” The McKinsey Quarterly, http://www.mckinseyquarterly.com/The_ergonom-ics_of_innovation_2197 (accessed May 17, 2009). Chapter Two In 1990, Jerry Sternin. The Vietnam story is compiled from various sources. An article by David Dorsey (December 2000), “Positive Deviant,” Fast Company, p. 42, first introduced popular audiences to Jerry and Monique Sternin’s work on positive deviance. Other details are from Jerry Sternin’s presentation at the Boston College Center for Corporate Social Responsibility in April 2008 and from interviews of Jerry Sternin by Chip Heath in March and April 2008 and of Monique Sternin in May 2009. “We were like orphans.” Most of the direct quotations in this section are from Dorsey, “Positive Deviant.” Bright spots. Sternin’s term for these outliers is positive deviants, which is based on a statistical analogy. Picture a statistical bell curve on which most people have outcomes around average.


pages: 322 words: 87,181

Straight Talk on Trade: Ideas for a Sane World Economy by Dani Rodrik

3D printing, airline deregulation, Asian financial crisis, bank run, barriers to entry, Berlin Wall, Bernie Sanders, blue-collar work, Bretton Woods, BRICs, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, central bank independence, centre right, collective bargaining, conceptual framework, continuous integration, corporate governance, corporate social responsibility, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Donald Trump, endogenous growth, Eugene Fama: efficient market hypothesis, eurozone crisis, failed state, financial deregulation, financial innovation, financial intermediation, financial repression, floating exchange rates, full employment, future of work, George Akerlof, global value chain, income inequality, inflation targeting, information asymmetry, investor state dispute settlement, invisible hand, Jean Tirole, Kenneth Rogoff, low skilled workers, manufacturing employment, market clearing, market fundamentalism, meta analysis, meta-analysis, moral hazard, Nelson Mandela, new economy, offshore financial centre, open borders, open economy, Pareto efficiency, postindustrial economy, price stability, pushing on a string, race to the bottom, randomized controlled trial, regulatory arbitrage, rent control, rent-seeking, Richard Thaler, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Sam Peltzman, Silicon Valley, special economic zone, spectrum auction, Steven Pinker, The Rise and Fall of American Growth, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, total factor productivity, trade liberalization, transaction costs, unorthodox policies, Washington Consensus, World Values Survey, zero-sum game, éminence grise

Global governance means different things to different people. For policy officialdom, it refers to new intergovernmental forums, such as the Group of 20 and the Financial Stability Forum. For some analysts, it means the emergence of transnational networks of regulators setting common rules from sanitary to capital adequacy standards.14 For other analysts, it is “private governance” regimes, such as fair trade and corporate social responsibility.15 Yet others imagine the development of accountable global administrative processes that depend “on local debate, is informed by global comparisons, and works in a space of public reasons.”16 For many activists, it signifies greater power for international nongovernmental organizations. It remains without saying that such emergent forms of global governance remain weak. But the real question is whether they can develop and become strong enough to sustain hyperglobalization and spur the emergence of truly global identities.


pages: 322 words: 89,523

Ecovillages: Lessons for Sustainable Community by Karen T. Litfin

active transport: walking or cycling, agricultural Revolution, back-to-the-land, car-free, carbon footprint, clean water, collaborative consumption, Community Supported Agriculture, complexity theory, corporate social responsibility, glass ceiling, global village, hydraulic fracturing, megacity, new economy, off grid, oil shale / tar sands, peak oil, planetary scale, publish or perish, Silicon Valley, the built environment, the scientific method, The Spirit Level, urban planning, Zipcar

Passion grounded in fact is what ignites personal power and transforms responsibility from a moral burden to a genuine ability to respond. The response, as with the issue, is inevitably multifaceted and must come from a variety of sources. All told, the bottom line is that we need to find viable ways of living with one another and our home planet, changing some systems from within and restructuring others entirely. Some responses – corporate social responsibility, government subsidies for renewable energy, municipal recycling programs – offer tangible ways to work within the system. Personally, I’m inspired by responses that reinvent life from the ground up, and of these I’m most intrigued by the ecovillage. This is a gathering of individuals into a cohesive unit large enough to be self-contained – that’s why it’s a village – and dedicated to living by ecologically sound precepts.


pages: 337 words: 103,273

The Great Disruption: Why the Climate Crisis Will Bring on the End of Shopping and the Birth of a New World by Paul Gilding

airport security, Albert Einstein, Bob Geldof, BRICs, carbon footprint, clean water, cleantech, Climategate, commoditize, corporate social responsibility, creative destruction, decarbonisation, energy security, Exxon Valdez, failed state, fear of failure, income inequality, Intergovernmental Panel on Climate Change (IPCC), Joseph Schumpeter, market fundamentalism, mass immigration, Naomi Klein, Nelson Mandela, new economy, nuclear winter, oil shock, peak oil, Ponzi scheme, purchasing power parity, Ronald Reagan, shareholder value, The Spirit Level, The Wealth of Nations by Adam Smith, union organizing, University of East Anglia

At the other end of progressive financial markets are emerging institutions that are experimenting with not just a different investment focus, but different ownership structures and missions. Triodos Bank, started in the Netherlands in 1980, is a fine example, a pioneer of such approaches and one to watch. Their mission is all about social purpose: Triodos Bank finances companies, institutions and projects that add cultural value and benefit people and the environment, with the support of depositors and investors who want to encourage corporate social responsibility and a sustainable society. Triodos’s values and strategy run deep in this area, and they focus all their commercial activities on businesses and projects that have an overt social objective. Their mission continues, stating they seek to “help create a society that promotes people’s quality of life and that has human dignity at its core.” I met their CEO, Peter Blom, when I was living in Amsterdam with Greenpeace in 1994.


pages: 370 words: 102,823

Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth by Michael Jacobs, Mariana Mazzucato

balance sheet recession, banking crisis, basic income, Bernie Sanders, Bretton Woods, business climate, business cycle, Carmen Reinhart, central bank independence, collaborative economy, complexity theory, conceptual framework, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, decarbonisation, deindustrialization, dematerialisation, Detroit bankruptcy, double entry bookkeeping, Elon Musk, endogenous growth, energy security, eurozone crisis, factory automation, facts on the ground, fiat currency, Financial Instability Hypothesis, financial intermediation, forward guidance, full employment, G4S, Gini coefficient, Growth in a Time of Debt, Hyman Minsky, income inequality, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), Internet of things, investor state dispute settlement, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, knowledge economy, labour market flexibility, low skilled workers, Martin Wolf, mass incarceration, Mont Pelerin Society, neoliberal agenda, Network effects, new economy, non-tariff barriers, paradox of thrift, Paul Samuelson, price stability, private sector deleveraging, quantitative easing, QWERTY keyboard, railway mania, rent-seeking, road to serfdom, savings glut, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Steve Jobs, the built environment, The Great Moderation, The Spirit Level, Thorstein Veblen, too big to fail, total factor productivity, transaction costs, trickle-down economics, universal basic income, very high income

Post-democratic capitalism does not require a formal renunciation of democracy any more than corporate neoliberalism requires a renunciation of the market; indeed, democracy and the market continue to be used as the primary sources of legitimation of the evolving political system of dominant corporate power. Other sources are then used in a supplementary way.26 For example, anti-anti-trust theory provided a justification for protecting market-dominating corporations from market-making competition law. New public management theory legitimates the abolition of boundaries between public officials and corporate personnel seen as so important to an earlier age of liberal economy. Corporate social responsibility gives business leaders a social legitimation going beyond their role as profit-maximisers and suggests that public policy is not needed to tackle many market failures. In the absence of Keynesian demand management, the widespread desire for a high level of employment gives priority to the policy preferences of business interests. A discussion of the paradoxical and troublesome relationships between the market economy and the strategies of privatisation and public service outsourcing that apparently arise from it reveals broader tensions within contemporary political economy.


pages: 328 words: 96,141

Rocket Billionaires: Elon Musk, Jeff Bezos, and the New Space Race by Tim Fernholz

Amazon Web Services, autonomous vehicles, business climate, Charles Lindbergh, Clayton Christensen, cloud computing, Colonization of Mars, corporate governance, corporate social responsibility, disruptive innovation, Donald Trump, Elon Musk, high net worth, Iridium satellite, Jeff Bezos, Kickstarter, low earth orbit, Marc Andreessen, Mark Zuckerberg, minimum viable product, multiplanetary species, mutually assured destruction, new economy, nuclear paranoia, paypal mafia, Peter H. Diamandis: Planetary Resources, Peter Thiel, pets.com, planetary scale, private space industry, profit maximization, RAND corporation, Richard Feynman, Richard Feynman: Challenger O-ring, Ronald Reagan, shareholder value, Silicon Valley, skunkworks, sovereign wealth fund, Stephen Hawking, Steve Jobs, trade route, undersea cable, We wanted flying cars, instead we got 140 characters, X Prize, Y2K

Facebook’s strategy included solar-powered planes that could fly for days at a time, providing internet access to people below. But for right now, Amos-6 was a more straightforward way to boost internet access for markets in Africa. In booming metropolises like Lagos, Nigeria, and Nairobi, Kenya, broadband penetration was low, but people enthusiastically adopted mobile phones in their daily lives. Facebook’s effort to increase access was often pitched as philanthropy or corporate social responsibility, but there was real money at stake for the firm. Not just American but also European and Chinese companies were eager to win African consumers over to more data-intensive services—if the telecom infrastructure could be put in place. The preflight destruction of Amos-6 was a dent in Facebook founder Mark Zuckerberg’s hopes to make a splash serving internet from space. On the day of the incident, he was making a surprise tour of African tech hubs—one whose timing on the day of the satellite launch was probably not coincidental.


pages: 348 words: 102,438

Green and Prosperous Land: A Blueprint for Rescuing the British Countryside by Dieter Helm

3D printing, Airbnb, barriers to entry, British Empire, clean water, conceptual framework, corporate social responsibility, decarbonisation, deindustrialization, demographic transition, Diane Coyle, digital map, facts on the ground, food miles, Haber-Bosch Process, illegal immigration, Internet of things, Kickstarter, land reform, mass immigration, New Urbanism, North Sea oil, precision agriculture, quantitative easing, smart meter, sovereign wealth fund, the built environment, urban planning, urban sprawl

It would also include other mineral depletions from mining and quarrying.12 Some of this activity should be stopped anyway, such as peat extraction, so the revenues would be net of the ending of harmful activities, and over time the North Sea reserves will be further depleted.13 A fund with this sort of revenue would be transformational: it would ensure that the natural environment is enhanced. The temptation for the Nature Fund management will be to go further and to borrow against its future revenues, as it is for government generally. This temptation will be given an extra gloss by pointing to the opportunity to issue green bonds. Buying the Nature Fund’s bonds will have two attractions for investors: they will be ‘green’, and hence good for corporate social responsibility accounting; and they will be ‘safe’ in that the revenues will be ultimately protected by government, which will either provide an explicit guarantee, or an implicit one because government will ultimately determine the legal framework under which the Fund receives its money. Despite the obvious attractions of green bonds, not least because they would add more firepower to the Nature Fund, there are reasons to be cautious.


pages: 330 words: 99,044

Reimagining Capitalism in a World on Fire by Rebecca Henderson

Airbnb, asset allocation, Berlin Wall, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, collaborative economy, collective bargaining, commoditize, corporate governance, corporate social responsibility, crony capitalism, dark matter, decarbonisation, disruptive innovation, double entry bookkeeping, Elon Musk, Erik Brynjolfsson, Exxon Valdez, Fall of the Berlin Wall, family office, fixed income, George Akerlof, Gini coefficient, global supply chain, greed is good, Hans Rosling, Howard Zinn, Hyman Minsky, income inequality, index fund, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, Kickstarter, Lyft, Mark Zuckerberg, means of production, meta analysis, meta-analysis, microcredit, mittelstand, Mont Pelerin Society, Nelson Mandela, passive investing, Paul Samuelson, Philip Mirowski, profit maximization, race to the bottom, ride hailing / ride sharing, Ronald Reagan, Rosa Parks, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, sovereign wealth fund, Steven Pinker, stocks for the long run, Tim Cook: Apple, total factor productivity, Toyota Production System, uber lyft, urban planning, Washington Consensus, working-age population, Zipcar

So-called Environmental, Social, and Governance (ESG) metrics are one possible solution to this problem.14 They have their origin in the 1980s, when a number of high-profile disasters, including the 1984 leak of toxic gas in Bhopal, India, that killed at least fifteen thousand people and injured many more and the 1990 Alaskan Exxon Valdez oil spill, led several NGOs to demand that firms disclose more information about the environmental and social effects of their operations.15 In response several firms began issuing corporate social responsibility reports. These early reports contained only very limited amounts of quantitative information. Shell’s 1998 offering, for example, consisted almost entirely of a chatty discussion of the firm’s “General Business Principles.” In 1999, the Coalition for Environmentally Responsible Economics (CERES) founded the Global Reporting Initiative (GRI), an organization devoted to standardizing sustainability reporting.16 The GRI issued its first set of guidelines in 2000, and by 2019, more than 80 percent of the world’s 250 largest corporations used its standards to report on their sustainability performance, and its database had more than thirty-two thousand reports on file.17 The GRI data are, however, of only limited use to investors.


pages: 411 words: 108,119

The Irrational Economist: Making Decisions in a Dangerous World by Erwann Michel-Kerjan, Paul Slovic

"Robert Solow", Andrei Shleifer, availability heuristic, bank run, Black Swan, business cycle, Cass Sunstein, clean water, cognitive dissonance, collateralized debt obligation, complexity theory, conceptual framework, corporate social responsibility, Credit Default Swap, credit default swaps / collateralized debt obligations, cross-subsidies, Daniel Kahneman / Amos Tversky, endowment effect, experimental economics, financial innovation, Fractional reserve banking, George Akerlof, hindsight bias, incomplete markets, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, iterative process, Kenneth Arrow, Loma Prieta earthquake, London Interbank Offered Rate, market bubble, market clearing, money market fund, moral hazard, mortgage debt, Pareto efficiency, Paul Samuelson, placebo effect, price discrimination, price stability, RAND corporation, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, source of truth, statistical model, stochastic process, The Wealth of Nations by Adam Smith, Thomas Bayes, Thomas Kuhn: the structure of scientific revolutions, too big to fail, transaction costs, ultimatum game, University of East Anglia, urban planning, Vilfredo Pareto

He holds a PhD in economics and an MA in applied mathematics from the Catholic University of Louvain. His current research ranges from decision theory under uncertainty to environmental economics, with a special focus on long-term effects. He has been a consultant for various industries and public institutions, on issues such as social security reforms, the economics of climate change, and corporate social responsibility. He has written and edited seven books on risk, including The Economics of Risk and Time (MIT Press, 2001), and was a lead author of the 2007 Report of the Intergovernmental Panel of Climate Change. Among many prizes and honors, Professor Gollier has received several awards, including that of Junior Member of the “Institut Universitaire de France,” the Paul A. Samuelson award, and, in 2005, the “GSU-ARIA” award for the best paper presented at the first World Risk and Insurance Congress.


pages: 339 words: 109,331

The Clash of the Cultures by John C. Bogle

asset allocation, buy and hold, collateralized debt obligation, commoditize, corporate governance, corporate social responsibility, Credit Default Swap, credit default swaps / collateralized debt obligations, diversification, diversified portfolio, estate planning, Eugene Fama: efficient market hypothesis, financial innovation, financial intermediation, fixed income, Flash crash, Hyman Minsky, income inequality, index fund, interest rate swap, invention of the wheel, market bubble, market clearing, money market fund, mortgage debt, new economy, Occupy movement, passive investing, Paul Samuelson, Ponzi scheme, post-work, principal–agent problem, profit motive, random walk, rent-seeking, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, shareholder value, short selling, South Sea Bubble, statistical arbitrage, survivorship bias, The Wealth of Nations by Adam Smith, transaction costs, Vanguard fund, William of Occam, zero-sum game

During the next few years, we rounded out our index offerings, forming index funds to complete our participation in all nine Morningstar “style box” categories, namely: growth, value, and blended index funds for small-, mid-, and large-cap stocks. We formed more tax-managed index funds, along with a “social index” fund based on an external index of corporations said to honor the principles of “corporate social responsibility.” In 2004, we created index funds for the 10 industry segments of the S&P 500, including financial, health care, energy, and information technology. In 2006, recognizing the vital role of dividend income in shaping long-term stock market returns, we created two more index funds, one focused on dividend appreciation and one on high dividend yield. And in 2010, as the number of indexes proliferated, we created a series of six index funds reflecting the basic categories of the Russell indexes, mimicking those we had earlier created based on the S&P indexes.


pages: 378 words: 110,518

Postcapitalism: A Guide to Our Future by Paul Mason

Alfred Russel Wallace, bank run, banking crisis, banks create money, Basel III, basic income, Bernie Madoff, Bill Gates: Altair 8800, bitcoin, Branko Milanovic, Bretton Woods, BRICs, British Empire, business cycle, business process, butterfly effect, call centre, capital controls, Cesare Marchetti: Marchetti’s constant, Claude Shannon: information theory, collaborative economy, collective bargaining, Corn Laws, corporate social responsibility, creative destruction, credit crunch, currency manipulation / currency intervention, currency peg, David Graeber, deglobalization, deindustrialization, deskilling, discovery of the americas, Downton Abbey, drone strike, en.wikipedia.org, energy security, eurozone crisis, factory automation, financial repression, Firefox, Fractional reserve banking, Frederick Winslow Taylor, full employment, future of work, game design, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, late capitalism, low skilled workers, market clearing, means of production, Metcalfe's law, microservices, money: store of value / unit of account / medium of exchange, mortgage debt, Network effects, new economy, Norbert Wiener, Occupy movement, oil shale / tar sands, oil shock, Paul Samuelson, payday loans, Pearl River Delta, post-industrial society, precariat, price mechanism, profit motive, quantitative easing, race to the bottom, RAND corporation, rent-seeking, reserve currency, RFID, Richard Stallman, Robert Gordon, Robert Metcalfe, secular stagnation, sharing economy, Stewart Brand, structural adjustment programs, supply-chain management, The Future of Employment, the scientific method, The Wealth of Nations by Adam Smith, Transnistria, union organizing, universal basic income, urban decay, urban planning, Vilfredo Pareto, wages for housework, WikiLeaks, women in the workforce

This is what the cognitive capital theorists mean by the ‘socialized factory’. We are no longer in a world of clearly delineated production and consumption, but one in which ideas, behaviours and customer interactions with the brand are critical to generating profit; production and consumption are blurred. This partly explains why struggles against the new capitalism are often focused on consumer issues, or brand values (e.g. corporate social responsibility), and why protesters behave more like the ‘tribes’ in marketing demographics than a unified proletariat. For cognitive capital theorists – as for Drucker – the primary activity of the new workforce is ‘the production of knowledge by means of knowledge’.51 However, the cognitive capitalism theory contains a major flaw. It would be one thing to say ‘a new kind of info-capitalism has been born within late industrial capitalism’.


pages: 408 words: 108,985

Rewriting the Rules of the European Economy: An Agenda for Growth and Shared Prosperity by Joseph E. Stiglitz

Airbnb, balance sheet recession, bank run, banking crisis, barriers to entry, Basel III, basic income, Berlin Wall, bilateral investment treaty, business cycle, business process, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collapse of Lehman Brothers, collective bargaining, corporate governance, corporate raider, corporate social responsibility, creative destruction, credit crunch, deindustrialization, discovery of DNA, diversified portfolio, Donald Trump, eurozone crisis, Fall of the Berlin Wall, financial intermediation, Francis Fukuyama: the end of history, full employment, gender pay gap, George Akerlof, gig economy, Gini coefficient, hiring and firing, housing crisis, Hyman Minsky, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, investor state dispute settlement, invisible hand, Isaac Newton, labor-force participation, liberal capitalism, low skilled workers, market fundamentalism, mini-job, moral hazard, non-tariff barriers, offshore financial centre, open economy, patent troll, pension reform, price mechanism, price stability, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, Robert Shiller, Robert Shiller, Ronald Reagan, selection bias, shareholder value, Silicon Valley, sovereign wealth fund, TaskRabbit, too big to fail, trade liberalization, transaction costs, transfer pricing, trickle-down economics, tulip mania, universal basic income, unorthodox policies, zero-sum game

Their sense of what is fair and reasonable should also count for something in a democracy. CEOs of multinationals who guide their companies in massive tax avoidance (for which Apple has become the poster child), and companies that flagrantly violate environmental protections (Volkswagen, now the parent company of Porsche, has become emblematic in this domain) illustrate actions where shareholder and societal interests differ. Companies may claim the mantle of corporate social responsibility, but the first responsibilities of any corporation are to pay its fair share of taxes and not despoil the environment. Too many companies thrive off public investments in infrastructure, education, and technology, but are not willing to pay back society. The view that firms should simply maximize shareholder value is of recent origin, often dated to the influence of Milton Friedman and his right-wing ideology of the 1970s and early 1980s, a time when there was a shift to the right on both sides of the Atlantic.


pages: 429 words: 120,332

Treasure Islands: Uncovering the Damage of Offshore Banking and Tax Havens by Nicholas Shaxson

Asian financial crisis, asset-backed security, bank run, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, call centre, capital controls, collapse of Lehman Brothers, computerized trading, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, David Ricardo: comparative advantage, Double Irish / Dutch Sandwich, failed state, financial deregulation, financial innovation, Fractional reserve banking, full employment, high net worth, income inequality, Kenneth Rogoff, laissez-faire capitalism, land reform, land value tax, light touch regulation, Long Term Capital Management, Martin Wolf, money market fund, New Journalism, Northern Rock, offshore financial centre, oil shock, old-boy network, out of africa, passive income, plutocrats, Plutocrats, Ponzi scheme, race to the bottom, regulatory arbitrage, reserve currency, Ronald Reagan, shareholder value, The Spirit Level, too big to fail, transfer pricing, Washington Consensus

In January 2008 the accountancy giant KPMG ranked Cyprus at the very top of a league table of European jurisdictions, according to the “attractiveness” of their corporate tax regimes.53 Yet Cyprus, a “way station for international scoundrels,” as one offshore promoter admits, is among the world’s murkiest tax havens: possibly the biggest conduit for criminal money out of the former Soviet Union and the Middle East into the international financial system. If Cyprus is ranked as the “best” in an international league table on tax, something is clearly wrong with the world. When transparency rankings list Switzerland and Singapore, two great sinks for illicit loot, as among the world’s “cleanest” jurisdictions, then we seem to have lost our way. Tax is the missing element in the corporate social responsibility debate. Modern company directors face a dilemma. To whom are they answerable—to shareholders only or to a wider set of stakeholders? There are no useful guidelines.54 Irresponsible players treat tax as a cost to be minimized, to boost short-term shareholder value alone. Ethical directors recognize that tax is not a cost of production but a distribution out of profits to stakeholders, ranking on the profit and loss account alongside dividends.


pages: 457 words: 125,329

Value of Everything: An Antidote to Chaos The by Mariana Mazzucato

"Robert Solow", activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Airbnb, bank run, banks create money, Basel III, Berlin Wall, Big bang: deregulation of the City of London, bonus culture, Bretton Woods, business cycle, butterfly effect, buy and hold, Buy land – they’re not making it any more, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, cleantech, Corn Laws, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, David Ricardo: comparative advantage, debt deflation, European colonialism, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, financial repression, full employment, G4S, George Akerlof, Google Hangouts, Growth in a Time of Debt, high net worth, Hyman Minsky, income inequality, index fund, informal economy, interest rate derivative, Internet of things, invisible hand, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labour market flexibility, laissez-faire capitalism, light touch regulation, liquidity trap, London Interbank Offered Rate, margin call, Mark Zuckerberg, market bubble, means of production, money market fund, negative equity, Network effects, new economy, Northern Rock, obamacare, offshore financial centre, Pareto efficiency, patent troll, Paul Samuelson, peer-to-peer lending, Peter Thiel, profit maximization, quantitative easing, quantitative trading / quantitative finance, QWERTY keyboard, rent control, rent-seeking, Sand Hill Road, shareholder value, sharing economy, short selling, Silicon Valley, Simon Kuznets, smart meter, Social Responsibility of Business Is to Increase Its Profits, software patent, stem cell, Steve Jobs, The Great Moderation, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Tobin tax, too big to fail, trade route, transaction costs, two-sided market, very high income, Vilfredo Pareto, wealth creators, Works Progress Administration, zero-sum game

Some 1960s economists had viewed ‘managerialism' as potentially good for society, if bosses allowed profit to be eroded by paying better wages to employees, meeting higher environmental or health and safety standards and investing more in new products. Friedman reset the debate by suggesting that bosses were more likely to be sacrificing profit to their own expense accounts and luxury lifestyles; and that even letting costs rise through ‘corporate social responsibility' was fundamentally wrong. The piece spawned an academic literature that would become known as ‘agency theory'. Friedman's idea was developed further by the University of Chicago-trained Michael Jensen, who was steeped in its ‘free market' ideas. In 1976 Jensen, now a professor at the University of Rochester, wrote a paper with the Dean of Rochester's business school, William Meckling (who, like Jensen, was a student of Friedman at Chicago), on how to implement Friedman's idea.


pages: 415 words: 119,277

Naked City: The Death and Life of Authentic Urban Places by Sharon Zukin

1960s counterculture, big-box store, blue-collar work, corporate social responsibility, crack epidemic, creative destruction, David Brooks, East Village, en.wikipedia.org, Frank Gehry, Guggenheim Bilbao, Haight Ashbury, Jane Jacobs, late capitalism, mass immigration, new economy, New Urbanism, Panopticon Jeremy Bentham, rent control, Richard Florida, rolodex, Ronald Reagan, Silicon Valley, South of Market, San Francisco, the built environment, The Death and Life of Great American Cities, Thorstein Veblen, upwardly mobile, urban decay, urban planning, urban renewal, white flight, working poor, Works Progress Administration, young professional

All IKEA stores are big—the Red Hook store has almost 350,000 square feet—and each uses a warehouse design to cut labor costs and enhance shoppers’ feeling of getting bargains. Like WalMart and other big-box stores, IKEA depends on most customers providing their own transportation, usually by automobile, and driving their purchases home; for this reason IKEA branches, like other big-box stores, are surrounded by parking lots. The chain’s claim to show corporate social responsibility by encouraging sustainable forestry and forbidding the hiring of child labor stands in marked contrast to the environmental evils of traffic congestion and air pollution they are often accused of producing around their stores. Whether these conditions really harm residents’ quality of life or are just a screen for defending property values, they have sparked protests in many communities, including Red Hook, against IKEA’s plans to open stores.


pages: 463 words: 115,103

Head, Hand, Heart: Why Intelligence Is Over-Rewarded, Manual Workers Matter, and Caregivers Deserve More Respect by David Goodhart

active measures, Airbnb, Albert Einstein, assortative mating, basic income, Berlin Wall, Bernie Sanders, big-box store, Boris Johnson, Branko Milanovic, British Empire, call centre, Cass Sunstein, central bank independence, centre right, computer age, corporate social responsibility, COVID-19, Covid-19, David Attenborough, David Brooks, deglobalization, deindustrialization, delayed gratification, desegregation, deskilling, different worldview, Donald Trump, Elon Musk, Etonian, Fall of the Berlin Wall, Flynn Effect, Frederick Winslow Taylor, future of work, gender pay gap, gig economy, glass ceiling, illegal immigration, income inequality, James Hargreaves, James Watt: steam engine, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, labour market flexibility, longitudinal study, low skilled workers, Mark Zuckerberg, mass immigration, new economy, Nicholas Carr, oil shock, pattern recognition, Peter Thiel, pink-collar, post-industrial society, post-materialism, postindustrial economy, precariat, reshoring, Richard Florida, Scientific racism, Skype, social intelligence, spinning jenny, Steven Pinker, superintelligent machines, The Bell Curve by Richard Herrnstein and Charles Murray, The Rise and Fall of American Growth, Thorstein Veblen, twin studies, Tyler Cowen: Great Stagnation, universal basic income, upwardly mobile, wages for housework, winner-take-all economy, women in the workforce, young professional

Why not build on that experience and establish a version of the United Kingdom’s territorial army for health and adult care systems, a reserve army of people with some basic training who can step in to help during a crisis. This could even be extended to some noncrisis situations to help out in vital social services so long as the volunteer roles do not undermine proper paid employment. Corporate social responsibility programs could also usefully focus more on the local and on old people by encouraging staff to simply visit old people, read to them, shop for them, and take them out on trips. Teaching, especially at primary level, is at least as much a Heart as a Head job. I am struck by how many teachers I know talk about loving their kids (and sometimes finding them intolerable too). A friend who has become a primary school teacher in middle age says this: “The best part of primary teaching is just building real relationships with the children.


pages: 387 words: 119,244

Making It Happen: Fred Goodwin, RBS and the Men Who Blew Up the British Economy by Iain Martin

asset-backed security, bank run, Basel III, beat the dealer, Big bang: deregulation of the City of London, call centre, central bank independence, computer age, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, deindustrialization, deskilling, Edward Thorp, Etonian, Eugene Fama: efficient market hypothesis, eurozone crisis, falling living standards, financial deregulation, financial innovation, G4S, high net worth, interest rate swap, invisible hand, joint-stock company, Kickstarter, light touch regulation, London Whale, Long Term Capital Management, moral hazard, negative equity, Neil Kinnock, Nick Leeson, North Sea oil, Northern Rock, old-boy network, pets.com, Red Clydeside, shareholder value, The Wealth of Nations by Adam Smith, too big to fail, upwardly mobile, value at risk

‘But then it should never be forgotten that Fred wasn’t a banker.’ Some of the older hands noticed that Goodwin seemed to have little interest in the basics of banking and concepts such as credit and risk. Instead, just as during his days at the Clydesdale Bank he often became most exercised when it came to footling matters. Following the death of her father, Lord Younger, Joanna Davidson joined the Royal Bank as head of corporate social responsibility. She confided in family and friends about how difficult she found it working for Goodwin, with his temper and tendency to meddle. When she took him a selection of designs for the company Christmas card he blew his top and said they were all terrible. That’s it, he declared. I’m taking over direct control of the production of the Christmas card. Untidy filing cabinets, with documents piled on top, were another source of annoyance.


pages: 413 words: 119,379

The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa's Wealth by Tom Burgis

Airbus A320, Berlin Wall, blood diamonds, BRICs, British Empire, central bank independence, clean water, colonial rule, corporate social responsibility, crony capitalism, Deng Xiaoping, Donald Trump, F. W. de Klerk, Gini coefficient, Livingstone, I presume, McMansion, megacity, Nelson Mandela, offshore financial centre, oil shock, open economy, purchasing power parity, rolodex, Ronald Reagan, Silicon Valley, South China Sea, sovereign wealth fund, structural adjustment programs, trade route, transfer pricing, upwardly mobile, urban planning, Washington Consensus, WikiLeaks, zero-sum game

‘Through these companies we get pieces from Shell,’ the General said, though I was not permitted to see the contracts. The General’s militia was also indirectly given work cleaning up oil spills, he said, splitting the proceeds fifty-fifty with an official contractor.41 Under Shell’s Global Memoranda of Understanding, introduced in 2006 following unrest in the Delta that crippled its installations to replace ad hoc corporate social responsibility projects with a more comprehensive approach to mollifying resentment, representatives of each settlement where the company operates inform Shell of their priorities. The projects Shell funds range from town halls to printing presses and scholarships, with each contract worth between 12 million and 60 million naira (US$80,000 to $400,000).42 Shell says the programme ‘represents an important shift in approach, placing emphasis on more transparent and accountable processes, regular communication with the grassroots, sustainability, and conflict prevention.’43 Before I met the General, a Port Harcourt go-between, well connected to the militants and whom we shall call Arthur, explained to me how Farah Dagogo and a fellow militia boss, who borrowed his nom de guerre from the American rapper Busta Rhymes, had diverted some of Shell’s largesse to their own war chest.44 Shell would send liaison officers for consultations with the Delta’s inhabitants on the projects they wanted, Arthur told me.


pages: 464 words: 121,983

Disaster Capitalism: Making a Killing Out of Catastrophe by Antony Loewenstein

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, American Legislative Exchange Council, anti-communist, Asian financial crisis, British Empire, Capital in the Twenty-First Century by Thomas Piketty, Chelsea Manning, clean water, collective bargaining, colonial rule, corporate social responsibility, Corrections Corporation of America, Edward Snowden, facts on the ground, failed state, falling living standards, Ferguson, Missouri, financial independence, full employment, G4S, Goldman Sachs: Vampire Squid, housing crisis, illegal immigration, immigration reform, income inequality, Julian Assange, Kickstarter, mandatory minimum, market fundamentalism, mass incarceration, Naomi Klein, neoliberal agenda, obamacare, Occupy movement, offshore financial centre, open borders, private military company, profit motive, Ralph Nader, Ronald Reagan, Satyajit Das, Scramble for Africa, Slavoj Žižek, stem cell, the medium is the message, trade liberalization, WikiLeaks

TomDispatch, January 27, 2015, at tomdispatch.com. 26“Golden Dawn Seeks ‘One-Party State,’” EnetEnglish, June 19, 2014, at enetenglish.gr. 27Andrew Higgins, “Far-right Fever for a Europe Tied to Russia,” New York Times, May 20, 2014. 28Richard Schwartz, “Greek Jews Laud Leftist Win—Despite Chilly Stance on Israel,” Forward, February 3, 2015. 29Helena Smith, “Greek Prime Minister Facing Resignation Calls after Aide’s Golden Dawn Gaffe,” Guardian, April 4, 2014. 30Peter Beaumont and Patrick Kingsley, Guardian, October 1, 2014. 31Belen Fernandez, “Detention in Malta: Europe’s Migrant Prison,” Al Jazeera English, May 18, 2014. 32Apostolis Fotiadis, “New Operation Could Hide Major Shift in Europe’s Immigration Control Policy,” Inter Press Service, September 6, 2014, at ipsnews.net. 33Apostolis Fotiadis, “Officials Turn Blind Eye to Abuse of Asylum Seekers,” Inter Press Service, March 16, 2013, at ipsnews.net. 34Danai Angeli, “Prolonged Detention of Migrants Is Not Just Inhumane and Illegal, It’s Also Futile,” Press Project, October 11, 2014, at thepressproject.net. 35Apostolis Fotiadis, “Europe Sending Armies to Stop Immigrants,” Inter Press Service, December 3, 2013, at ipsnews.net. 36Apostolis Fotiadis and Claudia Ciobanu, “Closing Europe’s Borders Becomes Big Business,” Inter Press Service, January 9, 2013, at ipsnews.net. 37Apostolis Fotiadis and Claudia Ciobanu, “People Pay for Research Against Migrants,” Inter Press Service, January 11, 2013, at ipsnews.net. 38Apostolis Fotiadis, “Drones May Track Migrants in EU,” Al Jazeera English, November 11, 2010. 39“Eurodrones Inc.,” TNI Peace and Security, February 5, 2014. 40In an attempt to demonstrate its corporate social responsibility, G4S financially assists the Athens charity Ark of the World, providing support to children and single mothers. 41Apostolis Fotiadis, “Cecilia Malmstrom and the Fiasco of Detention Centres for Immigrants and Migrants,” Press Project, October 20, 2014, at thepressproject.net. 42“Greece Tops Eurozone Poverty Rate,” EnetEnglish, July 24, 2014, at enetenglish.gr. 43Razmig Keucheyan, “The French Are Right: Tear Up Public Debt—Most of It Is Illegitimate Anyway,” Guardian, June 10, 2014. 44Howard Schneider, “An Amazing Mea Culpa from the IMF’s Chief Economist on Austerity,” Washington Post, January 3, 2013. 45Nikos Konstandaras, “As Greece Goes, So Goes Europe?”


pages: 402 words: 126,835

The Job: The Future of Work in the Modern Era by Ellen Ruppel Shell

3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, Amazon Mechanical Turk, basic income, Baxter: Rethink Robotics, big-box store, blue-collar work, Buckminster Fuller, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer vision, corporate governance, corporate social responsibility, creative destruction, crowdsourcing, deskilling, disruptive innovation, Donald Trump, Downton Abbey, Elon Musk, Erik Brynjolfsson, factory automation, follow your passion, Frederick Winslow Taylor, future of work, game design, glass ceiling, hiring and firing, immigration reform, income inequality, industrial robot, invisible hand, Jeff Bezos, job automation, job satisfaction, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kickstarter, knowledge economy, knowledge worker, Kodak vs Instagram, labor-force participation, low skilled workers, Lyft, manufacturing employment, Marc Andreessen, Mark Zuckerberg, means of production, move fast and break things, move fast and break things, new economy, Norbert Wiener, obamacare, offshore financial centre, Paul Samuelson, precariat, Ralph Waldo Emerson, risk tolerance, Robert Gordon, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Snapchat, Steve Jobs, The Chicago School, Thomas L Friedman, Thorstein Veblen, Tim Cook: Apple, Uber and Lyft, uber lyft, universal basic income, urban renewal, white picket fence, working poor, Y Combinator, young professional, zero-sum game

At the same time, the nation’s intense focus on wealth creation had undermined the essential human need to derive purpose and meaning from one’s efforts. Having learned back in college that business generates the vast bulk of the nation’s GDP—as much as 80 percent—he believed that business had an obligation to take the lead in cleaning up this mess. The first step, he decided, was to change the rules. For nearly a century, corporate social responsibility was subjugated to—and some argued legally trumped by—a fiduciary duty to make shareholders as much money as possible. This duty—later articulated by Milton Friedman—was first made law through the case of Dodge v. Ford Motor Company in 1919, in which Henry Ford was overturned in his effort to employ as many men as possible so as to spread prosperity (and presumably demand for his cars).


The Regency Revolution: Jane Austen, Napoleon, Lord Byron and the Making of the Modern World by Robert Morrison

British Empire, colonial rule, Corn Laws, corporate social responsibility, financial independence, full employment, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, land tenure, Mahatma Gandhi, New Urbanism, railway mania, stem cell, trade route, transatlantic slave trade, upwardly mobile, urban planning, wage slave

On his orders, the military seized the nearby islands of Billiton and, more importantly, Banca, which was rich in the lucrative commodity of tin. He also launched sweeping economic reforms, saw to it that local people were trained to administer the smallpox vaccine, and introduced measures designed to ameliorate the plight of the island’s slave population. The government of Java, he believed, “should consider the inhabitants without reference to bare mercantile profits.” 38 Such views on what we would now call “corporate social responsibility” were far ahead of their time and put Raffles decidedly at odds with a trading company fixated on making money. He compounded his problems by pushing so hard to implement his radical reforms of the land tenure system that he lost important sources of government revenue. When the island’s paper currency began to depreciate, Raffles resorted to selling public lands without the proper authorization.


pages: 482 words: 121,173

Tools and Weapons: The Promise and the Peril of the Digital Age by Brad Smith, Carol Ann Browne

Affordable Care Act / Obamacare, AI winter, airport security, Albert Einstein, augmented reality, autonomous vehicles, barriers to entry, Berlin Wall, Boeing 737 MAX, business process, call centre, Celtic Tiger, chief data officer, cloud computing, computer vision, corporate social responsibility, Donald Trump, Edward Snowden, en.wikipedia.org, immigration reform, income inequality, Internet of things, invention of movable type, invention of the telephone, Jeff Bezos, Mark Zuckerberg, minimum viable product, national security letter, natural language processing, Network effects, new economy, pattern recognition, precision agriculture, race to the bottom, ransomware, Ronald Reagan, Rubik’s Cube, school vouchers, self-driving car, Shoshana Zuboff, Silicon Valley, Skype, speech recognition, Steve Ballmer, Steve Jobs, The Rise and Fall of American Growth, Tim Cook: Apple, WikiLeaks, women in the workforce

Electronic Communications Privacy Act of 1986, Public Law 99-508, 99th Cong., 2d sess. (October 21, 1986), 18 U.S.C. Chapter 121 §§ 2701 et seq. Back to note reference 3. Electronic Communications Privacy Act of 1986, Public Law 99-508, 99th Cong., 2d sess. (October 21, 1986), 18 U.S.C. § 2705.b. Back to note reference 4. “Law Enforcement Requests Report,” Corporate Social Responsibility, Microsoft, last modified June 2018, https://www.microsoft.com/en-us/about/corporate-responsibility/lerr/. Back to note reference 5. “Charlie Hebdo Attack: Three Days of Terror,” BBC News, January 14, 2015, https://www.bbc.com/news/world-europe-30708237. Back to note reference 6. “Al-Qaeda in Yemen Claims Charlie Hebdo Attack,” Al Jezeera, 14 Jan 2015, https://www.aljazeera.com/news/middleeast/2015/01/al-qaeda-yemen-charlie-hebdo-paris-attacks-201511410323361511.html.


pages: 441 words: 136,954

That Used to Be Us by Thomas L. Friedman, Michael Mandelbaum

addicted to oil, Affordable Care Act / Obamacare, Albert Einstein, Amazon Web Services, American Society of Civil Engineers: Report Card, Andy Kessler, Ayatollah Khomeini, bank run, barriers to entry, Berlin Wall, blue-collar work, Bretton Woods, business process, call centre, carbon footprint, Carmen Reinhart, Cass Sunstein, centre right, Climatic Research Unit, cloud computing, collective bargaining, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, delayed gratification, energy security, Fall of the Berlin Wall, fear of failure, full employment, Google Earth, illegal immigration, immigration reform, income inequality, Intergovernmental Panel on Climate Change (IPCC), job automation, Kenneth Rogoff, knowledge economy, Lean Startup, low skilled workers, Mark Zuckerberg, market design, mass immigration, more computing power than Apollo, Network effects, obamacare, oil shock, pension reform, Report Card for America’s Infrastructure, rising living standards, Ronald Reagan, Rosa Parks, Saturday Night Live, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, the scientific method, Thomas L Friedman, too big to fail, University of East Anglia, WikiLeaks

In 1971, the year I graduated from high school, Time magazine had a cover featuring then Minnesota governor Wendell Anderson holding up a fish he had just caught, under the headline “The Good Life in Minnesota.” It was all about “the state that works.” When the senators from your childhood were the Democrats Hubert Humphrey, Walter Mondale, and Eugene McCarthy, your congressmen were the moderate Republicans Clark MacGregor and Bill Frenzel, and the leading corporations in your state—Dayton’s, Target, General Mills, and 3M—were pioneers in corporate social responsibility and believed that it was part of their mission to help build things like the Tyrone Guthrie Theater, you wound up with a deep conviction that politics really can work and that there is a viable political center in American life. I attended public school with the same group of kids from K through 12. In those days in Minnesota, private schools were for kids in trouble. Private school was pretty much unheard of for middle-class St.


pages: 462 words: 129,022

People, Power, and Profits: Progressive Capitalism for an Age of Discontent by Joseph E. Stiglitz

"Robert Solow", affirmative action, Affordable Care Act / Obamacare, barriers to entry, basic income, battle of ideas, Berlin Wall, Bernie Madoff, Bernie Sanders, business cycle, Capital in the Twenty-First Century by Thomas Piketty, carried interest, central bank independence, clean water, collective bargaining, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, crony capitalism, deglobalization, deindustrialization, disintermediation, diversified portfolio, Donald Trump, Edward Snowden, Elon Musk, Erik Brynjolfsson, Fall of the Berlin Wall, financial deregulation, financial innovation, financial intermediation, Firefox, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, George Akerlof, gig economy, global supply chain, greed is good, income inequality, information asymmetry, invisible hand, Isaac Newton, Jean Tirole, Jeff Bezos, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John von Neumann, Joseph Schumpeter, labor-force participation, late fees, low skilled workers, Mark Zuckerberg, market fundamentalism, mass incarceration, meta analysis, meta-analysis, minimum wage unemployment, moral hazard, new economy, New Urbanism, obamacare, patent troll, Paul Samuelson, pension reform, Peter Thiel, postindustrial economy, price discrimination, principal–agent problem, profit maximization, purchasing power parity, race to the bottom, Ralph Nader, rent-seeking, Richard Thaler, Robert Bork, Robert Gordon, Robert Mercer, Robert Shiller, Robert Shiller, Ronald Reagan, secular stagnation, self-driving car, shareholder value, Shoshana Zuboff, Silicon Valley, Simon Kuznets, South China Sea, sovereign wealth fund, speech recognition, Steve Jobs, The Chicago School, The Future of Employment, The Great Moderation, the market place, The Rise and Fall of American Growth, the scientific method, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, trickle-down economics, two-sided market, universal basic income, Unsafe at Any Speed, Upton Sinclair, uranium enrichment, War on Poverty, working-age population

Here, as in the earlier example of tax avoidance we described as Apple shifted profits to Ireland, there was a total absence of a corporate conscience: Though its own growth rested on technologies developed or financed by the US government, Apple, like the banks, was willing to take but not to give, even as it made a huge pretense of corporate responsibility. To me, the first element of corporate social responsibility is to pay your taxes. More disintermediation Even beyond failing to perform its traditional role of intermediation, bringing money from the household sector to the corporate sector, the financial sector today is doing just the opposite, taking money from the corporate sector and bringing it to the household sector, so the rich can enjoy more of their wealth now. One way they do this, with marked tax advantages,13 is for banks to help firms buy back shares from the market by lending them money to do this, as the example of Apple illustrates.


pages: 515 words: 132,295

Makers and Takers: The Rise of Finance and the Fall of American Business by Rana Foroohar

accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, additive manufacturing, Airbnb, algorithmic trading, Alvin Roth, Asian financial crisis, asset allocation, bank run, Basel III, bonus culture, Bretton Woods, British Empire, business cycle, buy and hold, call centre, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, centralized clearinghouse, clean water, collateralized debt obligation, commoditize, computerized trading, corporate governance, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, crowdsourcing, David Graeber, deskilling, Detroit bankruptcy, diversification, Double Irish / Dutch Sandwich, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial deregulation, financial intermediation, Frederick Winslow Taylor, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, High speed trading, Home mortgage interest deduction, housing crisis, Howard Rheingold, Hyman Minsky, income inequality, index fund, information asymmetry, interest rate derivative, interest rate swap, Internet of things, invisible hand, John Markoff, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, Kickstarter, knowledge economy, labor-force participation, London Whale, Long Term Capital Management, manufacturing employment, market design, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, offshore financial centre, oil shock, passive investing, Paul Samuelson, pensions crisis, Ponzi scheme, principal–agent problem, quantitative easing, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, Rana Plaza, RAND corporation, random walk, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Satyajit Das, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, Snapchat, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, Steve Jobs, technology bubble, The Chicago School, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Vanguard fund, zero-sum game

(Imagine how medical schools might respond if 80 percent of doctors said they’d do long-term harm to patients in order to get paid immediately.) While there was a hope after the 2008 meltdown that business schools might lead the charge toward a new and more sustainable kind of capitalism, academic leaders in the field have been largely silent, their efforts focused mostly on more marginal issues like promoting more corporate social responsibility or diversity within boardrooms. A few years ago at the World Economic Forum in Davos, Switzerland, I interviewed Harvard Business School dean Nitin Nohria, who was at that point hoping to orchestrate a major post-financial-crisis shift in the MBA curriculum at Harvard. It’s been a slow process; the school is only just beginning to develop a curriculum that moves beyond efficiency theory and into more behavioral approaches to business.


pages: 501 words: 134,867

A Line in the Tar Sands: Struggles for Environmental Justice by Tony Weis, Joshua Kahn Russell

addicted to oil, Bakken shale, bilateral investment treaty, call centre, carbon footprint, clean water, colonial exploitation, conceptual framework, corporate social responsibility, decarbonisation, Deep Water Horizon, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, global village, guest worker program, happiness index / gross national happiness, hydraulic fracturing, immigration reform, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, invisible hand, liberal capitalism, LNG terminal, market fundamentalism, means of production, Naomi Klein, new economy, Occupy movement, oil shale / tar sands, peak oil, profit maximization, race to the bottom, smart grid, special economic zone, WikiLeaks, working poor

These and other adverse health impacts affecting frontline communities in the vicinity of the Athabasca tar sands are documented in a report produced by the Sierra Club. See Gabriel DeRita and Tom Valtin, Toxic Tar Sands: Profiles from the Front Lines (2010). 3. World Health Organization, “Asphalt (Bitumen),” 2004, www.who.int/ipcs/publications/cicad/cicad59_rev_1.pdf. 4. See Enbridge’s Environmental, Health and Safety and Corporate Social Responsibility Reports: csr.enbridge.com. 5. Statistics regarding the number of recent immigrants in Toronto census tracts are available from Stuart Thompson of York University. See Anna Mehler Paperny, “Interactive Map: Explore the data behind Toronto’s working poor,” The Globe and Mail, February 10, 2012, www.theglobeandmail.com/news/toronto/interactive-map-explore-the-data-behind-torontos-working-poor/article545650/. 6.


pages: 515 words: 126,820

Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott, Alex Tapscott

Airbnb, altcoin, asset-backed security, autonomous vehicles, barriers to entry, bitcoin, blockchain, Blythe Masters, Bretton Woods, business process, buy and hold, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, cloud computing, cognitive dissonance, commoditize, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, cryptocurrency, disintermediation, disruptive innovation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Erik Brynjolfsson, Ethereum, ethereum blockchain, failed state, fiat currency, financial innovation, Firefox, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, Galaxy Zoo, George Gilder, glass ceiling, Google bus, Hernando de Soto, income inequality, informal economy, information asymmetry, intangible asset, interest rate swap, Internet of things, Jeff Bezos, jimmy wales, Kickstarter, knowledge worker, Kodak vs Instagram, Lean Startup, litecoin, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, microcredit, mobile money, money market fund, Network effects, new economy, Oculus Rift, off grid, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, performance metric, Peter Thiel, planetary scale, Ponzi scheme, prediction markets, price mechanism, Productivity paradox, QR code, quantitative easing, ransomware, Ray Kurzweil, renewable energy credits, rent-seeking, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, seigniorage, self-driving car, sharing economy, Silicon Valley, Skype, smart contracts, smart grid, social graph, social intelligence, social software, standardized shipping container, Stephen Hawking, Steve Jobs, Steve Wozniak, Stewart Brand, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, The Wisdom of Crowds, transaction costs, Turing complete, Turing test, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, unorthodox policies, wealth creators, X Prize, Y2K, Zipcar

To them, “Integrity . . . on the part of individuals or organizations has enormous economic implications (for value, productivity, quality of life, etc.). Indeed, integrity is a factor of production as important as labor, capital, and technology.”29 Wall Street lost trust (and nearly killed capitalism) because of a set of integrity violations. But has it changed? And will it change? In the past, corporate social responsibility advocates argued that companies “do well by doing good.” We haven’t seen the evidence. Many companies did well by doing bad—by having bad labor practices in the developing world, by externalizing their costs onto society such as pollution, by being monopolies and gouging customers. The collapse of 2008 taught us for sure that companies “do badly by being bad.” The major banks found this out the hard way.


pages: 399 words: 155,913

The Right to Earn a Living: Economic Freedom and the Law by Timothy Sandefur

American ideology, barriers to entry, big-box store, Cass Sunstein, clean water, collective bargaining, corporate governance, corporate social responsibility, creative destruction, Edward Glaeser, housing crisis, joint-stock company, Joseph Schumpeter, minimum wage unemployment, positional goods, price stability, profit motive, race to the bottom, Ralph Nader, RAND corporation, rent control, Robert Bork, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, The Wealth of Nations by Adam Smith, trade route, transaction costs, Upton Sinclair, urban renewal, wealth creators

Coryell, 40–41 Cornwell, Jo Ann, 147–48 corporation, evolution, xvi, 17 general incorporation laws, 28–29 monopolistic corporate charters, 27–29 17th and 18th century, 26–29 19th century, 27–31, 48–49 see also monopoly, evolution corporations archaic vision of, 31–37 benefits of, 36–37 corporate charters, 27–31, 70–75 corporate privileges, 33–35 as creatures of the state, 29, 32–33 definition changes, 26–29, 37 Friedman on corporate social responsibility, 35 marriage analogy, 29 as monopolies, 29–31 as “persons,” 34–35 pooled resources, 35, 36 present-day antitrust laws, 50–55 protection from social legislation, 5–6 stakeholder theory and stakeholders, 35–36 see also monopolies Court of Federal Claims, raisin case and, 168–69 Craigmiles v. Giles, 151–53, 159 creative destruction, 126 creative faculty, aspect of humanity, 3 creative works, freedom of expression, 194–95 Crescent City Livestock Landing and Slaughterhouse Company, 42, 73 criminal law maxim (innocent until proven guilty), 130, 274 Curtis, Michael Kent, 288 DaimlerChrysler Corp. v.


pages: 504 words: 143,303

Why We Can't Afford the Rich by Andrew Sayer

accounting loophole / creative accounting, Albert Einstein, anti-globalists, asset-backed security, banking crisis, banks create money, basic income, Boris Johnson, Bretton Woods, British Empire, business cycle, call centre, capital controls, carbon footprint, collective bargaining, corporate raider, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, crony capitalism, David Graeber, David Ricardo: comparative advantage, debt deflation, decarbonisation, declining real wages, deglobalization, deindustrialization, delayed gratification, demand response, don't be evil, Double Irish / Dutch Sandwich, en.wikipedia.org, Etonian, financial innovation, financial intermediation, Fractional reserve banking, full employment, G4S, Goldman Sachs: Vampire Squid, high net worth, income inequality, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, Isaac Newton, James Dyson, job automation, Julian Assange, Kickstarter, labour market flexibility, laissez-faire capitalism, land value tax, low skilled workers, Mark Zuckerberg, market fundamentalism, Martin Wolf, mass immigration, means of production, moral hazard, mortgage debt, negative equity, neoliberal agenda, new economy, New Urbanism, Northern Rock, Occupy movement, offshore financial centre, oil shale / tar sands, patent troll, payday loans, Philip Mirowski, plutocrats, Plutocrats, popular capitalism, predatory finance, price stability, pushing on a string, quantitative easing, race to the bottom, rent-seeking, Ronald Reagan, shareholder value, short selling, sovereign wealth fund, Steve Jobs, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transfer pricing, trickle-down economics, universal basic income, unpaid internship, upwardly mobile, Washington Consensus, wealth creators, WikiLeaks, Winter of Discontent, working poor, Yom Kippur War, zero-sum game

Peter Buffett, disillusioned son of billionaire philanthropist Warren Buffett, comments: As more lives and communities are destroyed by the system that creates vast amounts of wealth for the few, the more heroic it sounds to ‘give back.’ It’s what I would call ‘conscience laundering’ – feeling better about accumulating more than any one person could possibly need to live on by sprinkling a little around as an act of charity.130 And having one’s name or company brand attached to a good cause is good public relations; you don’t even have to declare how much you’ve given; for companies it buys an aura of ‘corporate social responsibility’. At the annual World Economic Forum in Davos, the super-rich gather to be seen at the sessions on philanthropy, and bathe in the glow of benevolence. Philanthropists don’t just want to give money and allow the recipients to use it as they see fit; they want to have some control over how it’s used, because, let’s face it, the rich, being so clever and successful, know best. And they consider their wealth, whatever its origins, as theirs to use as they wish.


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

"Robert Solow", 1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, disruptive innovation, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, Ethereum, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, LNG terminal, low cost airline, low cost carrier, low earth orbit, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, plutocrats, Plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

John Gattorna, author of Dynamic Supply Chains, believes the very concept of supply chains should be renamed “value networks” for the widespread benefits they bring, such as adapting essential products to the price points of local markets, building infrastructure that benefits small businesses, and training and educating local workers. Stanford Business School’s Value Chain Innovation Initiative manages a growing library around the social, environmental, and other positive impacts of modifying supply chain management. *2 As the reputation-building guru Simon Anholt explains, companies initially sign up for corporate social responsibility projects for cynical reasons—buttressing their image—but eventually they realize that doing good is how to improve their image. Anholt calls this the “loophole in human nature.” *3 Ashoka, the pioneering social enterprise organization, has launched the Hybrid Value Chain initiative to support businesses that deliver health care and housing to disenfranchised people and offer them “full economic citizenship


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