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Corporations Unbound
When Berle and Means published their landmark study, The Modern
Corporation and Private Property (1932), there were, almost literally, no
institutional owners of stocks. Nonetheless, they warned that:
"the position of ownership has changed from that of an active to that of a passive agent,
(with the) 'owner' of industrial wealth left with a mere symbol of ownership, with the
power, the responsibility, and the substance . . . of ownership transferred to a separate
group (the corporate managers) in whose hands lies control."
Institutional investors as a group now own about 66 % of the total of
U.S. stock.
Those individual owners, who held virtually 100 % of all shares when
Berle and Means' book was published in 1932, now constitute just 34
% of the total.
By the end of the 1990s, however, although wide differences between countries persist, a much larger proportion of
investors now hold stocks in their portfolio. About 50 percent of households in the US and Sweden, and over one third in
the UK invest directly or indirectly (through mutual funds and other managed investment accounts) in the stock market.
In the Netherlands, Italy, France and Germany the proportion is between 15 and 25 percent.
We are value.
We are markets.
In 2001 P&G set up a system for collaboration through a Connect and Develop
strategy. This program outsources a large proportion of the company's R&D
capability and internally searches for good ideas to strengthen and capitalize on
P&G's own capabilities. It sources new products, ideas and technologies for P&G
through a network of 70 senior experts scattered around the world who make
contacts within industry and academia, and with suppliers and local markets.
To date the program has brought over 10,000 new products, ideas and technologies
to the attention of P&G.
The ‘new economy’ challenge for corporations:
To evolve beyond the objective of ‘self-
preservation’ to the intention of discovery,
innovation, & sustaining relationships.
Post Cold War business models?
• Disposable versus sustainable
• Utility versus luxury
• Cost versus value
• Institutional versus collaborative
• Single company versus alliances
Emerging tools (obligations?) of corporations:
• Technology transfer
• Alliances
• CSR
Technology transfer is the leveraging of
intellectual property across multiple markets.
Alliances are strategic relationships which
integrate multiple technologies & services to
provide the consumer with ‘seamless’ experiences.
Conventional definition of CSR
Increasingly, society is growing stronger in its insistence that the business sector adopt ‘Corporate Social
Responsibility (CSR)’ obligations in exchange for the consumer’s continued loyalty.
CSR is, in the main, a non-legal obligation entered into by individual corporations—the ethical obligation
being the corporation agrees to abide by sometimes specific and sometimes non-specific standards of ethics
so as to consider the larger interests of society by taking responsibility for the impact of their business
activities, in relation to its customers, employees, shareholders, neighboring communities and the
environment.
Whilst conventional government regulations attempt to legally compel businesses to abide by certain
standards, many legal loopholes to regulations exist, and thus CSR is generally a non-governmental method
to both fill these legal gaps as well as hold businesses accountable throughout the transnational space where
state-specific laws and regulations may not yet be normalized (standardized).
Potential definition of CSR
CSR Sales
Technology
Alliances
Transfer
Because divisions such as CSR are still viewed, in
the main, as obligations rather than
opportunities… many corporate and social value
relationships go unexplored.
Innovation CSR
CSR: mobilizing new shareholders? Lessons from Obama &
Clinton.
The Internet possesses the greatest opportunity for global citizens to identify and mobilize
diverse socio-political and economic resources—with far greater speed and reach than any
government institution or apparatus. A small example of this Internet challenge to
government apparatus orthodoxy is Roger Cohen’s recent article, The Obama Connection,
which observes:
Obama spent only 10 years of his adult life in the split world of the cold war, double that in a
post-Berlin Wall world of growing interconnectedness. MAC — mutually assured
connectivity — has replaced the MAD — mutually assured destruction — of cold-war days.
For Clinton, born in 1947, that ratio is different. Her mental paradigm is division. When her
husband last ran for president in 1996, the Internet was marginal. The thinking and people
from that campaign have proved unable to fast-forward a dozen years. They’ve been left like
deer blinded by the Webcam lights of the Obama juggernaut.
This cultural failure has been devastating for Clinton. As Joshua Green chronicles in an
important piece in The Atlantic, Obama has used social networking and his user-friendly
Web site to develop the money machine, and the youthful engagement, that has swept him
forward.
CSR: mobilizing new global relationships?
According to the Index of Global Philanthropy 2008:
• Private giving and investment now accounts for over 75 percent of donor countries’ entire economic dealings
with developing nations;
• Official Development Assistance (ODA) is a minority shareholder in the growth and development of poor
countries;
• In the U.S., private philanthropy, along with remittances, to developing nations constitutes four and one-half
times official aid abroad.
The Quantum Potential.
Discovering the Quantum Value.
The spark to ignite the latent energy of global production of ideas.
If institutions are focused on self-preservation, then obviously,
employees will be focused on self-preservation…
Any specific vision and process for transformation will require evolving
beyond conventional ‘change management’ tools (which conventionally
seeks to change the employees)… to view transformation as an opportunity
for corporation, employees, shareholders, consumers, and communities to
finally view each other as an entangled part of the whole.
We are convinced that by crafting the appropriate strategies and tools,
Philips is particularly positioned to not only transform its business and
product mix, but to also inspire other companies and societies to adventure
into the opportunities of Khaos.
The transformation as described in Eckhart Tolle’s Power of Now, awakened her to her life’s purpose and
made her return to what she does best: building bridges and inspiring people to exchange human value and
knowledge. She is presently developing more interactive CSR applications delivered via emerging web 2.0
technologies.
She has established oobi in order for society to comprehend and shape the future by understanding the
interconnections and interdependencies between the different challenges and key drivers influencing the
global agenda.
Michael Byrnes
began his strategic advisory career in 1980 as a consultant with the New York and Washington, D.C. firm,
World Affairs, Inc. There, under the tutelage of Martin R. Haley and Daniel Patrick Moynihan, he worked on
multiple ‘big picture’ projects, ranging from defense conversion strategies with the National Economic
Commission to technology transfer processes with multiple stakeholders, including the NSA, U.S. Congress,
and individual technology transfer offices. He also worked with Fortune 500 clients to design and manage
various corporate intelligence and crisis management projects.
While deployed in Europe in the mid-1980s to assist in the design of economic development strategies for
German Reunification, he resided in the Vatican City. There, he studied dialectics and ethics, and later was
ordained.
In April 2008, he completed an economic philosophy treatise, Hands & Brains Unbound: Revealing the Illusion
of World Order & the Revolution Ascending, which assesses the historical, modern, and philosophical
perspectives of world order through the lenses of economic market evolutions and nation-building case
studies. The book then presents a revolutionary model of world order obtainable through economic
interdependencies.
Contact info
Tamara de Callataÿ
Tamara@callatay.be
Skype: tamdeca
Phone: +31 641766376