Summary

The Tomorrow’s Global Company Inquiry examined what it would take for the global company of the future to survive and prosper. One key theme it found was that serious failures in the frameworks of law and regulation limit and frustrate many efforts to deal with key issues. Fiscal systems often do not drive the market in sustainable directions, and subsidies are frequently perverse.

 

Tomorrow’s global companies must be proactive and work cooperatively with NGOs, other companies and international organisations to ensure that better frameworks are created.

 

You can click here to read this section of the report, or here to find out more about the report as a whole.

 

Below you can also see more content that has been labelled as relevant to creating frameworks.
 

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posted by Admin  on July 11, 2008

A UNDP document published in May 2004 that includes as one of its examples the case study of what Statoil did to train Venezuelan judges in human rights. That story is also summarised on the forceforgood website, here.
     

posted by Alex  on July 31, 2008

The paper proposes a framework to help organizations monitor levels of trust for different stakeholder groups.  Part I, contained in a separate document, examined various trust indicators to measure the relative presence or absence of trust, and the nature of that trust, in typical commercial relationships.  It also introduced new trust concepts and proposed a novel framework for classifying conditions that indicate trust.  Part II builds on these foundations and examines trust indicators for investors.  Examples are used to demonstrate various ways the framework can be applied to measure trust indicators for investors with distinct needs.
     

posted by Alex  on July 31, 2008

Higher levels of trust in business are known to reduce costs and improve business performance. This paper proposes a framework to help organizations monitor the efficiency of their business practices for indicating trustworthiness to stakeholder groups.  In Part I various trust indicators for customers are examined. Part II, contained in a separate document, examines trust indicators for investors.  New trust concepts are introduced and a novel framework is proposed for classifying conditions that indicate trust (such as the presence of name-brand products, organizational transparency, and warranties).  Examples are used to demonstrate various ways in which the framework can be applied to measure trust indicators for customers.
     

posted by Alex  on July 30, 2008

This paper introduces the Trust Enablement™ approach to corporate governance, as a natural and harmonizing counterbalance to prevailing risk management practices.Recent attempts to restore confidence in capital markets have been based largely on risk management practices that place greater emphasis on protecting organizations from further erosion of trust than on establishing higher levels of trust and confidence. Efforts focused on proactively building trust yield better results than recent risk management reactions to mistrust.  A complementary, offensive trust and confidence-building strategy is therefore proposed as more effective for reducing director and officer liability exposures and enhancing business value than a prevailing defensive, risk management strategy.Comparative examples of current governance practices and proposed initiatives when mapped to the Trust Enablement™ model reveal a deficiency in trust and confidence-building governance mechanisms.  Trust Enablement™,...
     

posted by Admin  on October 30, 2008

   “A lack of long-term stewardship by company heads and shareholders is at the heart of the current financial crisis, an influential think-tank says in a report published on Wednesday. Tomorrow’s Company, whose previous research has helped shape UK company law, urges the government to understand better the effects of the growing “casino economy”, where activities such as derivatives trading are often far removed from the real economy activity to which they theoretically relate. The report warns against the search for scapegoats for the current crisis and says that it is wrong to attack private equity, hedge funds and sovereign wealth funds for irresponsibility, noting that different shareholders perform different functions. However, it condemns the practice of borrowing shares for voting purposes and asks if investors need to toughen up their engagement to change company behaviour or divest holdings in companies with particular shortcomings. Mark Goyder, Tomorrow’s Company...
     

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The Social Keiretsu
Modeled after the famous Japanese maketing combines, the Social keiretsu enables for profit and non profit entities to operate within a single framework to the ultimate benefit of all, especially the poor
Background
When Japanese trade ministers decided to move into the US market, they invented a unique commercial vehicle to do so. It is called the “Keiretsu.” This is a group of companies cooperating within a formal framework to achieve a single market goal.
The companies may be be engaged in related businesses. For example a company that makes microwave ovens and a TV manufacturer, along with an Exporter and possibly an International Marketing agency may be in a Keiretsu together where the objective is to sell the consumer electronics industry in another country. Realizing a greater good, The government sanctions otherwise forbidden business practices and make exceptions to import rules, monopoly and other anti-competitive legislation to enable the export market goals.

Overview
The Social keiretsu is based upon the proposition that any comprehensive strategy for addressing poverty anywere must be based upon an economy of supply and demand. Non-sustainable charity, except in emergencies, is not a solution but only a temporary respite from human suffering.

Our model of The Social Keiretsu employs both profit and non-profit strategies to provide goods, services, and essential knowledge and skills to the poor in a cost effective and profitable enterprise. The Social Keiretsu is an advanced form of public/private partnerships in which the parties are fully engaged in formal operating relationships. Mutual responsibilities are contractually enforceable under international commercial law and finally economic incentive is dependent upon accomplishment of the total social mission.

Problem Statement
The following describes a current evolving crisis on the African Continent.. In fact the UN’s World Food Organization estimates the cost of the looming food crisis in Africa at $500 million (USD). In order to provide food security in high-risk famine areas, an innovative, fast response food growing system is needed. The alternative is massive charitable giving by foreign donors.

Unfortunately, the acquisition cost of the means of production is significant and no bank, or financial institution wants to take the risk of financing multiple installations without significant collateral. The poor have no collateral.. Also, the owner of the system cannot sell it without making a reasonable profit and the poor can afford neither the cost of acquisition, nor ongoing operating expenses. Another major impediment to the deal is the lack of skill and knowledge of how to operate and maintain technically sophisticated equipment. Finally, even though the problem is wide spread and once in place the basic economy can support such production, the economic return is too far out in the future for anyone to accept such a risk/reward proposition. The problem seems intractable

Enter the The Social Keiretsu
The socio economic conditions described in the previous section fly in the face of any conventional, non-charity, maket driven solution. Without our Social Keiretsu, or something very much like it, massive amounts of charity will be needed and the problem will repeat itself over time. The Social Keiretsu will provide a market driven solution to the problem that is both sustainable, long-term.

How it Works
The Social Keiretsu, as presented above, is formed under the auspices of a directorate that sets the goals and objectives. (see: ? above ) The directorate may consist of one or more members of the keiretsu It provides direction and in return receives performance reports on specific projects and programs as mutually agreed. This provides an organized framework for cooperation in both strategic and tactical action with policy decisions made at the Directorate. (see: ? above) Logistics and other assistance and support are provided by second level resources: Civil Society, Para Statals, and Government Agencies (see: ? above) The third level consists of for profit market driven businesses or corporations who can now provide market quality products and services along with full waranttee’s and customer support.
Purpose & Scope
It is the purpose of the Social Keiretsu to provide both physical and economic resources to the poor that would be unattainable through any traditional mechanism of the market. This requires extraordinary policies be implemented that support such strategies. One example is import duties and process. Most small countries are extraordinarily protective of imported technology, logistics and transport, commercial rules, rights of property etc. Through constructive engagement with the agencies and departments of many governments such limitations and restrictions can be obviated. This is mainly achieved through the cooperative business like alliances formed within the Keiretsu. Agencies are full participants and have the cooperation and transparency necessary to safeguard the public trust. However, the fiscal controls and visibility called for by the Directorate to assure fairness in attribution of cost, expense, and profit discourage casual malfeasance by the local autorities.

Benefits
One prinicipal benefit of this model is that it permits both for profit and non profit to coexist with each working to the benefit of the poor. Additionally, the Social keiretsu enables the opening and establishment of new markets as the poor achieve prosperity their spending power increases and a new market is established.

Also important is the formalization of the internal relationships. For example, all parties are contractually bound to deliver goods, services, and supporting resources as contacted. This is not a casual association that can be disbanded at the whim of one of the parties. Therefore, it is more likely to be taken seriously by all concerned. The principal benefit however accrues to the poor who are lifted out of poverty in perpetuity by means of a nascent but growing local economy and commercial infrastructure.

Finally it is the for profit corporations that will see the most immediate and tangible benefit for participation. Whole markets will be created that were non existant before and will now be open to the commercial members of the Keiretsu who will have proprietary inside knowledge of the value and supply chains, the key outlets and customers. For the commercial enterprise it is truly “The Undiscovered Country.”

Conclusion
It has been said that, the greatest heresy is to take “a truth,” and make it, “The Truth.” None the less, we believe we have found a method for addressing structural poverty at the grass roots. This strategic initiative will provide enormous commercial opportunity. It will open access to a significant untapped market, The Next 4 Billion (see: Hammond, Kramer, Katz, Tran, & Walker, MIT Press, April, 2008) As the present financial crisis has all but crushed global stock markets and asset values have plummeted, great opportunity lies in the developing world. (see: New Realities in Microfinance & Philanthropy, J. Peloquin and G. Wyse, Micro Finance Focus, www.microfiancefocus.com)

This is what capitalism has been seeking, a means to address social causes with a viable profit driven model. Here it is. The advent and rise of The Social Keiretsu brings an unprecedented opportunity to meld the gospel of plenty and free markets to the millennium goals of the international community and The United Nations. What could be more appropriate in the new age of “Change Now,” finally, Socially Responsible Capitalism.













Posted By : Jerome Peloquin
Posted on : January 7, 2009

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