Customer Reviews:
Capitalism and the New World Economy.......2006-06-05
Stuart Hart is an author, instructor, researcher, and lecturer who has written many books and essays on strategic management and the problems/challenges of globalism in the world economy. His consulting services have been utilized by many large companies including DuPont, Hewlett- Packard, and Proctor and Gamble and he has helped these and other companies like them to develop a more Earth- friendly, poverty- reducing approach to solving the world's problems while still maintaining enough economic momentum to stabilize or even improve the bottom line.
The primary focus of this book is the important task that businesses face in the twenty- first century; namely, the task of expanding the world economy, helping third world nations emerge from poverty, and improving the environment. To many, this idea of companies helping other nations, promoting recycling and environmentally sound business practices, and making a profit seems to be one big contradiction. When most people think of business, we think of the bottom- line goal of earning a profit by whatever means necessary; everything else be damned. But like Hart points out, the reality of environmental issues is too important and too critical for business to ignore. And if the right steps are taken, businesses can not only improve the world and its people, they can also reap profits and other rewards in the process. Thus, not only is it the right direction to take morally, it is also the right direction to take financially and if companies move quickly they can establish themselves as leaders in the global marketplace and enjoy the many benefits that their initiative will bring.
Globalism has been one of the most heated topics in economic discussion groups in the past ten to fifteen years. Proponents of globalism feel that it is the best way to spread prosperity all over the world and eradicate a large number of the world's poor. Opponents, however, have been very vocal in their opposition to globalism, citing many key areas where they feel the earth and its people are worse off when large companies expand to other nations. These activists feel that globalism depletes the world's resources at a faster rate; leads to deployment of "sweatshops" and other inhumane treatment of workers; and does little if anything to alleviate the problems of economic distress, inadequate health care, and the like. But like Hart demonstrates in this book, the pro- globalists and the anti- globalists can and must work together to solve these problems. And he feels that private businesses can make this happen by utilizing present technologies that will produce more abundant goods and services, improve standards of living, and leave the environment unaffected and possibly even better than it was before. Hart is a strong believer that much good can be accomplished if companies will simply change their strategy and embrace the idea of global environmentalism and responsibility. New growth areas exist all over the planet and by integrating some of the new technologies with profitable solutions, companies can make money and make a name for themselves as corporate citizens on a world- wide scale.
Much of what this book talks about seems reasonable now that I have finished it, but I admit that I was a little skeptical at first. How, I wondered, could a company implement all of these changes, pay good wages to foreign workers, protect the environment, and still make a profit? It seems like a very expensive proposition but like the author demonstrates, it really isn't a far fetched idea at all. We have to remember that much of the population of the world lives in conditions that are almost completely devoid of any use of modern technologies. Introducing these technologies can improve productivity drastically- so much so, in fact, that it will easily negate the initial expense of establishing the technology in the first place. One example stated in the book is that of Grameen Phone and Grameen Telecom- two businesses that helped establish a cellular phone network in Bangladesh. Money was loaned to women living in the poverty- stricken rural villages so that they could become private entrepreneurs to sell mobile phone service. The loan money was used to purchase a cell phone and a solar recharging unit and the women were then trained and sent out to sell this service. This business venture has proven to be a great success, profitable in many ways. It has raised many people out of poverty, extended modern technology to people who don't normally have this luxury, and protected the environment through the inclusion of solar charging units. All of this was possible simply because a company was willing to take a chance, grant loans, and extend a useful service to a class of people who would never be able to afford cellular phone service using existing business models.
Most of the information presented in this book deals with spreading economic success to the billions of people in the world who occupy the bottom levels of the economic pyramid but what the author talks about can easily apply to other situations as well. Corporate stewardship and environmental responsibility are admirable goals for a company of any size regardless of whether its customers are economically well- off or financially strapped. Hart concentrates mostly on the problems of the third world because it is here that most opportunity exists and where most of the challenges lie. But much of what he talks about could be applied to anyone, including those at the top of the economic pyramid who consume a large amount of resources with little regard for economic or environmental consequences.
I like the way Hart writes this book. It is well- organized with boldface text to break up different topics/subtopics and with notes at the end of each chapter. I also admire the sense of optimism. Hart is convinced that this approach is not only the right thing to do, it is imperative that corporations take action immediately and if they do so and do it right, they will easily reap the benefits. The old ideas that profit is the number one priority, that humans are disposable components of any business, and that the environment is the concern of governments have all become outdated in the modern world economy.
Overall, Capitalism at the Crossroads is a very good book about business and its critical role in shaping the world economy. Conventional wisdom about what works and what doesn't needs to be tossed aside in favor of (as the author refers to them) "disruptive technologies"- business models that go completely against the established way of doing things and present a fresh perspective tailored to the needs of specific people and cultures that protects the environment and still earns a profit. All of this is possible, and Hart feels it is very important that these large, multi- national corporations wake up and adapt to the new world economy. It is not only economically profitable, it is a necessary part of economic sustainability and world stability.
The bottom line of this book could be summed up as follows: Companies that help other people and protect the environment will be rewarded in many ways, including bottom- line profit, improved living conditions, and a better environment for all. Capitalism is at an important crossroad and the path taken needs to be the one that promotes responsible corporate growth for the good of all.
A Classic.......2006-01-31
The book starts with a overview of the dominant position that is occupied by multinationals in today's global economy. Going by the definition of the term, 60000 multinationals produce a quarter of the global output of products and services. Yet they are owned by less that 1 percent of the worlds population and employ about 1 percent of the world's employable workforce. Meanwhile many of these companies in their race for short term earnings have sacrificed sustainable methods of production. In other words they have done irreparable damage to the earth's environment and created social tensions in many countries. In other words, the pursuit of economic gains is at loggerheads with local cultures and environmental interests.
Then comes the interesting hypothesis termed "The Great trade-off illusion". Earlier companies believed that a certain amount of pollution for example was inevitable and any efforts for its reduction will incur expenses for treatment. This is called "end of the pipeline approach" for treating pollutants. Similarly, large companies serving the top 800 million population of the earth's population adopted similar business models and products across countries and cultures. Two thirds of the population was ignored since it was perceived that this huge segment just cannot afford the goods and services offered by the multinationals.
The author offers a radical approach and introduces the concept of "Triple Bottom-line". How can companies win by offering goods and services that are culturally appropriate, environmentally sustainable and economically profitable. This is not wish or ivory tower theory, but a necessity and practically feasible path argues the author.
To serve the base of the pyramid (BOP) population, companies need to adopt disruptive technologies, incubate them in the BOP markets with appropriate functionality and price points. This also needs innovative business models. One should not look at what is bad ( corruption) or what is missing ( western style institutions) in the BOP segment, but understand and serve their needs through innovative products and services through appropriate business processes.
This is essentially a combination of Prof. Clayton Christensen's disruptive innovations ( The Innovator's Dilemma) and the concept of BOP ( The Fortune at the Bottom of the Pyramid - C.K. Prahalad ).
In my opinion the main take away in terms of an excellent framework for business strategy is the concept of "Sustainable Value Portfolio". Defining the Organization's internal capabilities and external constituencies on the horizontal axis, and managing today's business and tomorrow's business opportunity on the vertical axis, we get four quadrants on which companies can operate. Companies typically operate only on the quadrant of internal capabilities and today's business. This is an approach of incremental improvements and greening. The other quadrant below the horizontal axis is the concept of "extended supplier responsibility" or Product Stewardship taking full responsibility for the product including its recycling, in close interaction with existing customers.
To win in tomorrows world, companies need to operate in and fully leverage on internal capabilities to introduce successful disruptive technologies that can cater to the needs of the un-served four billion population( that will grow to about 8 billion by 2050), or B24B, in a manner that is environmentally sustainable. Companies that understand all the four quadrants well and progressively plan their product portfolio are the winners of tomorrow.
Take the automobile industry for example. The author clearly brings out that till the 1970's this industry produced vehicles that polluted the planet with total disregard to fuel efficiencies. Then the focus shifted to emission norms and recycling of used automobiles. A huge opportunity awaits this sector in exploiting disruptive technologies like hydrogen fuel cells and simultaneously use such technologies to offer low cost transportation in countries like India and China.
The book then gets into a detailed discussion on the BOP realities and the right business models to serve this huge market.
A classic by any account, I personally rate it as one amongst the top 10 business books on my bookshelf. One can feel the author's sense of commitment, deep understanding of and a passion for the topic in every page of the book.
What Capitalism Could Accomplish.......2006-01-16
This interesting and provocative book synthesizes several of the most influential ideas in modern business and distills a new idea: that disruptive innovation at the bottom of the pyramid will solve the crises of environmental pollution, business stagnation and international terrorism at the top. No one can accuse author Stuart L. Hart of thinking small or of lacking imagination. His big ideas are all in place. The only missing element, as he freely admits, is one small detail: how. Capitalism must take a new course, and it's pretty clear what the new course must be, but Hart presents only a vague notion of how businesspeople are to go about turning his vision into reality. We recommend that business leaders read this book anyway, because it will stimulate your thinking about what might be possible. Maybe you'll be the one to figure out how to make the difference.
Partner with Prahalad, Valuable Distinct Contribution.......2005-12-09
Edited to respect new information I did not have before, and thank the person making the comment. Also adding hot links.
The author, who gives full credit to C.K. Prahalad, has been a co-author with Prahalad and they are both credited with this brilliant vision for a new kind of moral capitalism that addresses the needs of the five billion poor.
This book should be viewed as a valuable distinct contribution in its own right, read read with Prahalad's book as well as a third book from Wharton, The Next Global Stage: The Challenges and Opportunities in Our Borderless World As I edit this, I am also remined of Paul Hawkin's Blessed Unrest: How the Largest Movement in the World Came into Being and Why No One Saw It Coming, and the forthcoming book by Medard Gabel, Seven Billion Billionaires, with a preview here at Where to find 4 billion new customers: expanding the world's marketplace; Smart companies looking for new growth opportunities should consider broadening ... consultant.: An article from: The Futurist
It also complements Yale Dean Garten's book, The Politics of Fortune: A New Agenda For Business Leaders which calls on business to be more responsible about the state of the world. All of these books contrast remarkably with William Greider's The Soul of Capitalism: Opening Paths to a Moral Economy, Clyde Prestowitz's Rogue Nation: American Unilateralism and the Failure of Good Intentions and and John Perkins' Confessions of an Economic Hit Man
The math is quite clear. Business had been focused on high profit margins from the top one billion, with disposable incomes on the order of $20K or so. The bottom of the pyramid, five billion people, with disposable incomes on average of no more than $10 a year, represent a four trillion dollar marketplace.
Where business has gone wrong is in being bureaucratic, immoral, corrupt, and focused on outputs for profit rather than listening for solutions that can be profitable (with low profit margins, very high volume, and transformative effect).
I believe that these two individuals could one day win the Nobel Peace Prize for their work, which could literally save the world. As Jonathan Schell tells us in The Unconquerable World: Power, Nonviolence, and the Will of the People there are not enough guns on the planet to keep these four billion dispossesed from impacting on us negatively. We can help them create indigenous stabilizing wealth in their home countries, or we can die with them as we all suffer the end of cheap oil, the end of free water, and the rise of pandemic disease.
This author is an extraordinary talent, equal to Prahalad. It merits comment that Wharton appears to have displaced Yale as a phenomenal publishing house. For me to find three world-class books on this topic, and for all of them to be from Wharton, is noteworthy.
Much Assailed Capitalism Is Probably the Only Answer.......2005-11-22
We live in a time when the very concept of Capitalism has come under attack from nearly every corner: the religious zeelots who think that only the study of God (THEIR God) should be done, the far left who believe that the Government should do everything, and on and on. Each can present stories of things that Government/Charity/Education or whatever has done better on some task. And they have - developing the Internet, wiping out smallpox - to name just two.
What capitalism brings is innovation into areas where Government would get all kinds of opposition from the various wings. Of one thing you can be sure, the future will not be like the past. We can't say just what problems the future holds, but innovation funded by people who have this idea about how they can get rich will be the answer. Yes, as this author says, it must be sustainable, it must be eco-sensitive.
We are running out of oil, to be sustainable will require a lot of innovation. We must be eco-sensitive, otherwise we all live in a cess pool. No one but capitalism can pull this off.
Book Description
Don't be misled by the word social in the title.
This is a book about how to improve corporate performance and gain competitive advantage.
In Corporate Social Opportunity! Grayson and Hodges challenge perceived wisdom that adherence by business to corporate social responsibility (CSR) is a zero-sum game where the impact on companies is added costs and extra regulatory burden.
From their unique vantage point working with leaders of global businesses and of local communities, the authors explain how powerful drivers forcing companies to adopt stringent social, ethical and environmental standards simultaneously create largely untapped opportunities for product innovation, market development and non-traditional business models.
The key to exploiting these opportunities lies in building CSR into business strategy, not adding it on to business operations. With examples from 200 companies to illustrate their case, they outline both in theory and practice a seven-step process managers can apply to assess the implications of CSR on their business strategy and identify their own corporate social opportunities.
BUSINESS IS OPERATING in a whirlwind of interacting global forces: revolutionary developments in communications and technology, significant changes in markets, shifts in demographics, and a transformation of personal values. The fallout from these forces is the underlying reason that corporate social responsibility has come of age. These global forces have led to a number of issues—such as ecology and environment, human rights and diversity, health and well-being, and communities—becoming potential liabilities for companies. Once regarded as `soft' management issues, they are now increasingly recognised as hard to predict and hard for the business to deal with when they go wrong.
Corporate Social Opportunity!, by the authors of the best-selling Everybody's Business moves the argument from the `why' of corporate social responsibility (CSR) to the `how' and beyond—to a future where CSR is perceived as an opportunity for business both in terms of reaping the benefits of retaining brand or organisational value and by developing new products and services, serving new markets and adopting new business models. This is not always a story of black and white, of what is right or what is wrong. Often it embraces apparently conflicting demands which require the application of judgement, guided by a clear sense of overall direction and corporate purpose. This book is designed to act as a compass for aiding navigation through such dilemmas and complex decisions.
Using examples of current good practice, detailed interviews with leading CEOs and newly created diagnostic planning tools, all framed within a seven-step model for making CSR happen, the book aims to provide a practical guide to help business leaders and their managers understand how to assess the impact of corporate social responsibility factors on their core business strategy and operations and help them identify and prioritise between subsequent options and resulting business opportunities.
The book is structured into two parts. Both parts describe the same seven-step model which, if followed, will help managers think through desired changes to business strategies, and necessary corresponding changes to operational practices. In Part 1, the seven steps—triggers; scoping; making the business case; committing to action; resources and integrating operations; engaging stakeholders; and measuring and reporting—are described and illustrative evidence and corresponding data provided. In Part 2, the authors have created a worked example of the diagnostic processes that form the backbone of the seven steps, based on the health and well-being issue of fast food and the growing problem of obesity, particularly among children, along with notes on how a manager might work through the processes with colleagues.
Customer Reviews:
An opportunity for profitable action.......2007-07-09
There is a tense stand off in our boardrooms between those who view corporate citizenship as essential for a valuable brand and future "license to operate" and those who firmly espouse the view that "the business of business is business".
In Corporate Social Opportunity Grayson and Hodges reconcile the viewpoints to show how CSR can effectively build opportunities and mitigate risks. There are enough real world case studies (with profit figures attached) to persuade even the most sceptical. Better still, there is a simple model and a worked example that will assist in driving social responsibility and value creation right through the heart of your strategy. This is not a book for the spin doctors in the PR department; it is written for those with the power and drive to ensure that CSR is built in rather than bolted on.
The most refreshing aspect of the book is the focus on creating opportunities and exploiting them before the competition have woken up to the fact that they exist. It is a thinly disguised treatise on seizing, and capitalising upon, first-mover advantage but written with respect for the people who make up the targeted markets and delight in the win-win outcomes.
The authors cite the need for top down support and bottom up innovation. They provide examples of board involvement to facilitate and drive the process. The book culminates with a worked example of a fictitious organisation that implements the seven steps. This is developed in detail, including sample action plans which highlight the division of activities between board and executives. My favourite part was the fictitious CEO asking his Chairman to review the skills and diversity available on the board and replenish the non-executive ranks with directors that would enrich and add value to the board debate and decision-making. Buy the book to find out how the Chairman responded!
This is not a quick read. The 390 pages are chock full of anecdotal evidence, business theory, practical hints and insightful analysis. The few diagrams are simple and clear; adding value to the text. The authors generously share their combined experience in business, consulting, and the government sector.
Whilst the book is primarily aimed at the manufacturing sector and will be most easily assimilated by those who deal with consumer markets there are also numerous examples from primary industries and the government and not-for-profit sectors. This book throws down a well worn gauntlet but follows up with sufficient inducements to leave readers with an overwhelming desire to take up the challenge.
I whole heartedly recommend this book to anyone who wants to make a positive difference whilst making a profit.
Book Description
The 'corporate social responsibility' ('CSR') movement has been described as one of the most important social movements of our time. This book looks at what the CSR movement means for multinationals, for states and for international law. International law is often criticized for being too 'state-centred', and ill-equipped to deal with the challenges of globalization. However, drawing from many and varied examples of state, NGO and corporate practice, this book argues that, while international law has its limitations, it presents more opportunities for the CSR regulation of multinationals than many people assume. The main obstacles to better regulation are, therefore, not legal, but political.
Book Description
"Renewal" is a holistic health center run by baby boomers whose political ideals were shaped by the counterculture movements of the 1960s. Through interviews and observation, Sherryl Kleinman takes us inside Renewal and shows us how its members struggled to maintain a view of themselves as progressive and alternative even as they sought conventional legitimacy.
In Opposing Ambitions we meet the members of Renewal as individuals; learn about the differences in power, prestige, and respect they are accorded; why they talked endlessly about money; and how they related to each other. Kleinman shows how members' attempts to see themselves as unconventional, but also as serious operators of a legitimate health care organization, led them to act in ways that undermined their egalitarian goals. She draws out the lessons Renewal offers for understanding the problems women face in organizations, the failure of social movements to live up to their ideals, and how it is possible for progressives to avoid reproducing the inequalities they claim to oppose.
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Lives of the Philadelphia Engineers: Capital, Class, and Revolution, 1830-1890 (Modern Economic and Social History, 42)
Andrew Dawson
Manufacturer: Ashgate Publishing
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Agribusiness and Society: Corporate Responses to Environmentalism, Market Opportunities and Public Regulation
Manufacturer: Zed Books
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ASIN: 1842774131
Release Date: 2004-11-25 |
Book Description
This volume examines in detail how far agribusiness corporations are responding to the opportunities and pressures resulting from emerging environmental awareness, to play their part in the "greening" of agriculture and food. In particular, in what ways are these corporations changing their R&D and business practices in order to develop new environmentally oriented products, services and methods of production? And what can they change of their own volition, and where is external direction a necessary condition of environmentally friendly innovation? These questions are explored through a series of highly original investigations of particular biotech and other agribusiness companies--including Monsanto, Ciba Geigy, Dole, and Chiquita--and their behavior in particular parts of the world, including California, Europe, Australia, Brazil, and Central America.
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Back to Monopoly: Opportunities and Constraints for Public and Corporate Networks in Post-Unification Germany
Bert Sadowski
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Climbing the Corporate Ladder
Christopher Smith
Manufacturer: University Press of America
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ASIN: 0761800743 |
Book Description
This book is a study of occupational advancement in American industry--a testing of the American tradition of "getting ahead." It deals in terms of mathematical probabilities with an individual's chances of advancing promotionally up through the social-industrial structure. The study is based on the experience of twenty-eight thousand individuals employed over a sixteen and one-half year period in a large-scale industrial plant--a plant quite representative of American industry in many significant respects. The author investigates advancements up to the gang boss level, to the assistant foreman level, to the foreman level, to the junior executive level, to the executive level, the senior executive level, the officer level, and the presidential level. His study looks at the chances of advancement for individuals as a whole, for individuals in specific occupational groups, for individuals with differing amounts of education, and for individuals with differing scores on tests for intelligence. This book tells how many of the individuals entering employment every year, and which ones, will be promoted; how far up the ladder they will go; how many, and which ones, will be demoted; and how many, and which ones, will remain permanently positioned on their entry-level jobs.
Book Description
This digital document is a journal article from Forest Policy and Economics, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
Company-community partnerships represent a new forestry mechanism prompted by increased devolution of forest control and growing demand for socio-environmentally responsible products. In the Brazilian Amazon, general economic and cultural trends, combined with the appeal of the rainforests and its peoples, have led to the growing implementation of partnerships for non-timber forest products (NTFP) trade. However, despite the fanfare some companies have given these partnerships, evidence suggests that their impacts on communities, companies and forests are mixed. Communities and forests are more likely to experience problems, especially in a context of weakening government power. The complexities involved in company-community deals call for a changed research focus, advancing new theories that consider community forestry as part of broader economic systems.
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