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American S E P T E M B E R 2 0 1 1 Vol.XXI,No.7•ISSN1506-3240

American

S E P T E M B E R 2 0 1 1

Vol.XXI,No.7•ISSN1506-3240

Investor

©AmericanChamberofCommerceinPoland2011

w w w.a m c h a m .p l

COVERSTORY:

Is this sustainable?

Tomaintainitsglobal edge, outsourcinginPoland mustbecomemorecompetence-intensive
Tomaintainitsglobal edge, outsourcinginPoland
mustbecomemorecompetence-intensive
Experts: Monthly Meeting: Deloitte USAmbassador Łaszczuk&Partners LeeFeinstein Salans Photo pages: Focus:
Experts:
Monthly Meeting:
Deloitte
USAmbassador
Łaszczuk&Partners
LeeFeinstein
Salans
Photo pages:
Focus:
EventsinWrocław,
AmChamMembershipSurvey
KrakówandKatowice
AntennaSoftware
MonthlyMeeting
ChevronUpstreamEurope
CEOForum
ExecutivechefGavinBaxter
FourthofJulypicnic
MBAprogramsinPoland
AmChamonline American Investor SEPTEMBER 2011 Vol.XXI,No.7 what’son www.amcham.pl YouronlineguidetoAmChamactivities

AmChamonline

AmChamonline American Investor SEPTEMBER 2011 Vol.XXI,No.7 what’son www.amcham.pl YouronlineguidetoAmChamactivities

American

Investor

SEPTEMBER 2011

Vol.XXI,No.7

what’son

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onthehorizontalmenutodownload

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COVER STORY:

Isthissustainable?

http://www.amchamseurope.com COVER STORY: Isthissustainable? Tomaintainitsglobaledge, outsourcinginPolandmust

Tomaintainitsglobaledge,

outsourcinginPolandmust
becomemorecompetence-

intensive,page16.

MONTHLYMEETING Openinganewchapter Polish-Americanrelationshaveenterednew areasbeyondenergyanddefense—withahugecontributionfromthe

AmericanbusinesscommunityinPoland,p.20

CEOFORUM BusinessasunusualInnovationisthekeytogettingaheadandstaying

aheadwhentimesaretough,p.22

FOCUS GettingbetterallthetimeAmChamcontinuestoimproveitseffortsto

meettheneedsofitsmembers,p.24

AnewchefintownInaworldwheretherestaurantbusinessisdrivenby tasteandeconomy,GavinBaxterhastherightbalanceofexperienceto

embracethetwodomainswithqualityandconfidence,p.26

MasteringadegreeinbusinessadministrationInsidersexplaintheop-

tionsforearninganMBAinPolandandoffertipsonhowtomanagethe

decision-makingprocess,p.28

ExploringforbusinessAmericanInvestor’sTomaszĆwioktalkswith

JohnP.Claussen,CountryManagerforPolandatChevronUpstreamEu-

rope,aboutChevronPolskaEnergyResourcesSp.zo.o.,anenergycom-

panywhichrecentlyjoinedAmCham,anditsprospectsinPoland,p.29

GrowthontheradarAmericanInvestor’sTomaszĆwioktalkswithAn-

tennaSoftwaremanagersJamesHemmer,President&CEO,andMark Watson,EVPandGeneralManager,shortlyafterAntennaannouncedthe

creationofatechnologycenterinKraków,p.30

EXPERTS

TheproblemofgroundedflightsTheliabilityofaircarriersforthecon-

sequencesofunforeseeableeventsresultinginflightcancellations,p.31

FollowthepathofworldleadersInnovationinbusinessisunderstoodin

manydifferentways,buttherearesomesolidindicatorstostickto,p.32

CatchingupwithrealityProductplacementhasfinallybecomelegalin

Poland,conditionsnotwithstanding,p.33

EVENTS

SharingdiverseapproachestoCSR,p.34Scienceandmoneymeetin

Wrocław,p.35Golfingtohelpchildreninneed,p.35Reinforcingbusi-

nesstiesinKatowice,p.36BusinessMixeroutoftown,p.37Oncea

yearattheAmbassador’splace,p.38Innovationatthetop,p.39Cele-

bratingAmerica’sindependence,p.40

DEPARTMENTS

Newsline,p.2,Agenda,p.8,ContentsummariesinPolish,p.44,Guide

toAmChamCommittees,p.45.

YOURAMCHAM

YOURAMCHAM BOARDOF DIRECTORS TheAmericanChamberofCommerceinPoland J oseph W ancer – Deloitte Chairman J udith Y.G

BOARDOF

DIRECTORS

TheAmericanChamberofCommerceinPoland

JosephWancerDeloitte

Chairman

JudithY.GlinieckiWierzbowskiEversheds

ViceChair

richardladaTelesto

ViceChairman

peterkaYKPMGPolska

Secretary

stanpopoW Finacorp

Treasurer

MEMBERS

TonyHoush

JohnLynch

APCO Worldwide

Lynka

PaulFogo

MacRaczkiewicz

Miller Canfield

Ex officio

PiotrJucha

RomanRewald

McDonald’s

Ex officio

ThomasKolaja

AnnaSienko

Alvarez and Marsal

IBM

RobertL.Koński

Kulczyk Investments

and Marsal IBM RobertL.Koński Kulczyk Investments SPONSORS AmChamAuditor: Newsline NewsfromAmChamanditsmembers

SPONSORS

Marsal IBM RobertL.Koński Kulczyk Investments SPONSORS AmChamAuditor: Newsline NewsfromAmChamanditsmembers 3M
Marsal IBM RobertL.Koński Kulczyk Investments SPONSORS AmChamAuditor: Newsline NewsfromAmChamanditsmembers 3M

AmChamAuditor:

RobertL.Koński Kulczyk Investments SPONSORS AmChamAuditor: Newsline NewsfromAmChamanditsmembers 3M

Newsline

NewsfromAmChamanditsmembers

3M

saidthatKatowiceisveryhappywithitscoop-

erationwithAmChamonmanyconferences,

GlobalGreenBrandsrankingbytheIn- whichareimportantforbusinessintheregion.

3MhasplacedsecondintheBest

terbrandconsultancy.Interbrandstud- Uszokdiscussedthescopeofinfrastructure

iedenvironmentalcompliancedatafrom

over3,000companiesandselectedthe

50best-performingbrands.Consumer

opinionsfrom10majormarkets,such

astheUS,Germany,IndiaandJapan,

werealsoreflectedintheranking.3M

wascreditedforitspioneeringprogram

PollutionPreventionPays(datingfrom

1975),aswellasitsconsistencyinim-

plementingeco-friendlyprograms.In

onesuchprograminPoland,3Mman- fice.

agedtocutwasteproductionanden- DavidGibson,presidentofprojectman-

ergyandwaterconsumptionby20%

over5years.

projectsundertakenbyKatowicetoemergeas

amoderncitywithagoodenvironmentforin-

ternationalbusiness.

PawełTynel,aseniormanageratErnst&

Young,gaveapresentationaboutKatowice’s

strengthsforinvestors.Hepraisedthework

ethicofstaffinKatowiceandUpperSilesia.

MarcinNowakfromCapgeminidiscussed

examplesoftheeffectivenessoftheworkper-

formedbystaffatCapgemini’sKatowiceof-

agementcompanyFluor,saidthatworkforce

turnoverattheFluorlocationinGliwiceis

muchlowerthaninsuchlocationsasDelhi,

Inothernews,3MwasnamedLeader

ofSustainableDevelopmentinacom- whereFluoralsohasoperations,becausestaff

petitionorganizedbyPwCandthePol- inUpperSilesiatendtoprogresswithinthe

isheditionofForbes,aimedatidentify- companyinsteadofleavingafterafewyears

ingbestpracticesinsustainabledevel- ofexperience.

opmentandbuildingcompanies’long- AndrzejKorpakofGeneralMotorsManu-

termvalue.

facturingPolandstressedthatthereisahuge

talentpoolavailableinUpperSilesia,thanksto

thequalityeducationofferedtostudentsinthe

area.Henotedthatwhilethereisroomforim-

skills,almostalluniversitygraduatesarenow

AmChamResearch

AmChamdidastudyofcompetenciesand

skillsrequiredfromITemployeesinPoland.

Thereportrevealedthatdatabaseadminis-

trationistheareawhereITstaffaremost

AmChamCommittees

Asithasaccomplisheditsgoalsforthe

timebeing,theAmChamTelecomCom- provementinsuchaspectsasmanagerial

mitteehasbeensuspendeduntilanew

agendaisformed.TheTelecomCom- fluentinEnglish.

mitteecreatedaplatformundertheAm-

Chamumbrellafortheexchangeof

members’ideasandviewsontrendsin

thetelecommunicationssectorin

Poland.Thecommittee’smainachieve- Thestudy,conductedinMarch,wasdesigned

toidentifytheITareaswhereAmericancom-

paniesinPolandwillhavethegreatestrecruit-

mentneedsgoingforward.

countriesintheEU.Thereportgaineda

lotofattentionfromthepublicfollowing

foundPolandslippingbehindother

telecominfrastructurein2008,which

mentwasthepublicationofareporton

thepressconferencepresentingthere- sought-after(identifiedby63%ofrespon-

port,hostedjointlybyAmChamandthe

FrenchandGermanchambersofcom- itytesting(53%each),businessintelligence

merceinPoland.Thecommitteewas

mostrecentlyco-chairedbyJarosław

RoszkowskifromCrowleyDataPoland

andPiotrMuszyńskifromTelekomu-

nikacjaPolska.

dents),followedbymobilesolutionsandqual-

andusersupport(47%each),andeCom-

merce/Web2.0andLAN/WANnetworks(42%

each).

AmongITtoolsandprogrammingenviron-

ments,themostpopularincludeprograms

Meanwhile,theAmChamTaxCommit- fromtheC,C#andC++andJavaand

teeandtheAmChamFinancialServices

Committee,whichsharemanysyner- SQL(58%),andASPandASP.netandNET

gies,havemergedtoformtheAmCham

Tax&FinancialServicesCommittee.

Thenewcommitteeisco-chairedby

PiotrBartuzifromBankBPHandAn- lardatabasesincludeMySQL(53%),Oracle

drewHope,anindividualmember.

AmChamCouncil

TheAmChamCouncil,representedby

AmChamBoardMemberPaulFogoand

AmChamExecutiveDirectorDorota

Dabrowski,metinKatowiceinMaywith

MayorPiotrUszokandrepresentatives

ofthebusinesscommunityinthearea,

includingAmChammembercompanies

andselectednon-members.TheUS

governmentwasrepresentedbyConsul

GeneralAllenGreenbergandConsul

AaronDavietfromtheUSConsulatein

Kraków.

Javascriptfamilies(63%each),followedby

andXML(42%each).Themostpopulardata-

baseusedbyAmericancompaniesoperating

inPolandisMicrosoftSQL(68%).Otherpopu-

(37%)andPostgresSQL(26%).

LeadingAmericanITcompaniesoperating

inPolandwhotookpartintheprojectwere

Cisco,Dell,HP,IBM,IntelandMicrosoft.

AmChamPolicyWatch

AmChamhastakeninitiativetoimprovepublic

procurementproceduresinPoland.Ourexpert

workinggroup,whichincludesJolantaJa-

worskaandAleksandraGawrońska-Mucha

ofIBM,HubertTańskiofCMSCameron

McKenna,JanWęglarzandDariuszRulskiof

Fluor,andMartaPawlakofAmCham,hasde-

velopedacatalogueofbestpublicprocure-

mentpractices.Thecatalogueisbasedonin-

formationgainedfromourmembersandindi-

Openingthemeeting,MayorUszok

catesproblemswithpublicprocurementpro- ingonthestateofmanufacturingintheUS,

ceduresinPolandandtheirconsequences,

andrecommendedsolutions.

AmChamsubmitteditscatalogueofbest

underlyingchallengesandpossiblesolutions,

andannualsymposiaco-hostedbythecham-

berandMAPIfeaturingpaneldiscussionsof

publicprocurementpracticestothePresi- topexpertswhowillcoverthetopicshigh-

dent’sChancellery,theFriendlyStateExtraor-

dinaryCommissionandtheMinistryofHealth,

whichconductsnumeroustendersinvolving

innovativee-governmentprojects.

Additionally,asaresultofAmCham’slobby- MAPIalsosaiditwillmakeavailablemuch

ingefforts,theissueofusingpriceasthemain

criterionwhenevaluatinganofferinapublic

procurementtenderiscurrentlyontheagenda

oftheFriendlyStatecommission.Thecom-

missionrecentlyacceptedaproposalthat

wouldamendthePublicProcurementLawby

introducingalegalsafe-harbormechanism

thatallowsforselectionofanoffertakingnon- merceandtheScandinavian-PolishChamber

pricecriteriaintoconsiderationwhenevaluat- ofCommerce,heldajointworkshoponcorpo-

inganoffer,suchasquality,technicalparame- ratesocialresponsibilityinJune.Themain

ters,andthedeadlinebywhichthegoodsor

serviceswillbeprovided.Subsequently,the

commissionsubmittedthelegislativeproposal

totheParliamentforfurtheraction.

AmChamUSA

TheUSChamberofCommerceandtheManu- lightcooperationbetweenprivatecompanies

facturersAlliance/MAPIannouncedthatthey

haveestablishedajointinitiativetoadvance

ThemeetinginWrocławwasdesignedtoin-

lightedintheresearchpapers.Thefirstsym-

posiumisexpectedtobeheldthisfallatthe

WashingtonheadquartersoftheUSChamber

ofCommerce.

ofitspreviouslymember-onlyresearchtosen-

ior-levelAmChamexecutives.

AmChamWrocław

AmChaminWrocław,incooperationwiththe

Polish-GermanChamberofIndustryandCom-

merce,theBritishPolishChamberofCom-

businesspartneroftheeventwasIBM,which

hostedtheeventatitsWrocławdeliverycen-

ter.

troduceskill-basedvolunteering,whichisone

ofthemajorareasofCSR,aswellastohigh-

andthepublicadministrationinCSRinitiatives andprovideexamplesofbestpracticesin CSRusedbyinternationalcompanies.

Over50invitees,includingDeputyGovernor

ofLowerSilesiaIlonaAntoniszyn-Klik,Anna

PanasiukfromtheMinistryofLaborandSo-

cialPolicy,andrepresentativesofPolishand

internationalcompanies,sharedtheopportu-

nitytodiscussvariousapproachestoCSR

policyinlocalandmultinationalenterprises

operatinginPoland.Themainbusiness

speakersattheeventwerefromIBM,

Siemens,KraftFoodsandVolvo.Guestsalso

fortheEuropeanYearofVolunteering,whichis

beingcoordinatedinPolandbytheMinistryof

LaborandSocialPolicy.

Inothernews,inJuneAmChamWrocław

paniesinWrocław,whichwasaperfectoppor-

tunityforfacetimewithProf.JerzyLanger,

vationadvisertotheMayorofWrocław.

awarenessinthepolicycommunityaboutthe

importanceofmanufacturingtocontinuing

prosperityandeconomicgrowth.

“Thechamberisinauniquepositiontotell

thestoryofUSmanufacturingtopolicymakers

atalllevelsofthegovernment,aswellasto

theentirebusinesscommunity,”saidThomas

J.Donohue,presidentandCEOoftheUS

ChamberofCommerce.“Thisisthebeginning

ofagreatcollaboration,andtogetherwecan

playanimportantroleinhelpingcreateamore

conduciveenvironmentforAmerica’smanu- learnedaboutthegovernment’spreparations

facturers.”

StephenGold,presidentandCEOofMAPI,

said,“Themanufacturingsectorplaysavital

roleinboostingeconomicgrowth,andwe

needtogetourmessageouttoaswideanau- hostedabreakfastmeetingformembercom-

dienceaspossible.Thechamberoffersa

broadnetworkandisacrediblepartnerto

sharethestoryonhowmanufacturingcancre- ForeignSecretaryofAcademiaEuropaeaand

atejobsandeconomicgrowth.”

formerDeputyMinisterofScienceandHigher

Thenewinitiativewillincludeseveralcom- Education.Langerisalsoascienceandinno-

ponents,includingaresearchpaperfrom

MAPIeachyearforchambermembersfocus- TheEuropeanCommissionrecentlypub-

Membersonthemove Acxiom Agnieszka Jaworska has joinedAcxiom,thedatabase marketingcompany,asanex-
Membersonthemove
Acxiom
Agnieszka Jaworska has
joinedAcxiom,thedatabase
marketingcompany,asanex-
pertandproductmanagerto
helpAcxiomtailoritsservices
tosuitclientmarketingstrate-
gies. Jaworska will provide
strategic advice on product
developmentandmanagere-
lationswithpartners,agenciesandmedia.

lishedaGreenBookonR&Dandinnovation,

whichlaunchedapublicdebatedevotedto

theneedforacommonstrategyandbetter

synergyinthe“knowledgetriangle”(research,

educationandinnovation),tocreatenew

mechanismsandbettercoordinationoffinanc-

ingforR&Dandinnovationprojects.

AttheeventProf.Langerspokeaboutfi-

nancinglarge-scaleR&DinitiativesusingEU

fundsandintroducedtheearlystagesofthe

conceptofWrocławResearchCentreEIT+,

theinstitute’scurrentactivitiesanditsfuture

developmentplans.Hepointedoutthatthe

center’scurrentbudgetofaboutPLN700mil-

lionmaybeboostedthankstoaredefinedco-

hesionpolicy,earmarkingupto20%ofstruc-

turalfunds(insteadthecurrent5%)forthe

bestpro-innovationprojectsinless-developed

regionsoftheEU.

Baker&McKenzie

LawfirmBaker&McKenziegeneratedrecord-

highper-partnerprofitofUSD1.2millioninthe

financialyearthatendonJune30,2011.Witha

totalofUSD2.27billioninglobalearnings,the

lawfirmsawitsbestfinancialperformancein

history.Themostprofit-generatingofficeswere

inLatinAmerica,Asia/Pacific,theUKandthe

US.

Inothernews,Baker&McKenzieadvised

OvostarUnionNV,adairyproducerwithopera-

Membersonthemove Baker&McKenzie Dorota Dubyk ofBaker &McKenziehasqualified as a legal adviser. She
Membersonthemove
Baker&McKenzie
Dorota Dubyk ofBaker
&McKenziehasqualified
as a legal adviser. She
specializesinbankingand
financelaw.Dubykjoined
Baker&McKenziein2007
with 10 years of profes-
sional experience. She
holds degrees from the
Warsaw School of Eco-
nomicsandthePolishAcademyofSciences.
Piotr Rawski,apartnerat
Baker&McKenzie,hasbe-
cometheheadofthefirm’s
laborlawpracticeinWar-
saw.Rawskihas15years
ofexperienceinlaborlaw
and commercial law, as
wellasM&Aandcorporate
financialrealignmentpro-
cedures.Rawskihasbeen
recommendedbyCham-
bersEurope,theLegal500andPLCWhichLawyer?
Bartosz Romanowski
ofBaker&McKenziehas
qualified as a legal ad-
viser. He specializes in
corporatelaw,businessin-
surance, civil law and
M&A. Romanowski is a
graduateoftheUniversity
ofWarsaw.
Ireneusz Stolarski has
become an international
partneratBaker&McKen-
zie,asheadofthebanking
andfinancepracticeinthe
Warsawoffice.Hespecial-
izesinM&A,high-riskin-
vestments,andinsolvency
law.Stolarskihasbeenrec-
ommendedbyChambers
Europe,theLegal500andPLCWhichLawyer?
Bristol-MyersSquibbPoland
Gianluigi Lisi hasbeen
appointed general man-
ager of Bristol-Myers
SquibbPoland.Lisijoined
Bristol-Myers Squibb in
1999.Hehas26yearsof
experienceinthepharma-
ceutical industry, 18 of
whichhavebeenoninter-
nationalassignments.

YOURAMCHAM

AMCHAMSTAFF

DorotaDabrowski

ExecutiveDirector

director@amcham.pl

MarzenaDrela

DeputyDirector

marzena.drela@amcham.pl

AnitaKowalska

Events&MediaManager

anita.kowalska@amcham.pl

RobertKruszyna

OfficeManager

robert.kruszyna@amcham.pl

BarbaraPocialik-Malinowska

MembershipandCommitteesCoordinator

barbara.pocialik@amcham.pl

MartaPawlak

ResearchandPolicyCoordinator

marta.pawlak@amcham.pl

RobertChomik

ProjectAssistant

robert.chomik@amcham.pl

AmChaminKraków

MonikaPilarska

krakow@amcham.pl

AmChaminWrocław

JoannaBensz

amchm.wroclaw@pmg.pl

American

Investor

Published by the American Chamber of Commerce in Poland

EDITOR-IN-CHIEF,ART&DTP

tomaszĆWiok

tomasz.cwiok@amcham.pl

EDITOR-AT-LARGE

christophersmith

christopher.smith@neostrada.pl

Printing

QInvestLtd

+48224246600

TocontactAmCham

pleasewriteorcall:

ul.EmiliiPlater53,WFC

00-113Warsaw

tel:+48225205999

fax:+48225205998

e-mail:office@amcham.pl

www.amcham.pl

©AmericanChamberofCommerceinPoland2011.

Allrightsreserved.

AmericanInvestoristheofficialpublicationoftheAmeri-

canChamberofCommerceinPoland.Itisavoiceforfor-

eigninvestorsandthebusinesscommunityinPoland.

Themagazinestrivestokeepourmembersandother

readersuptodatebyfollowingchambernewsandreport-

ingontheleadingtrendsinbusinessandpolicy.

letterstotheeditorshouldbee-mailedto

tomasz.cwiok@amcham.pl

Newsline

NewsfromAmChamanditsmembers

tionsinUkraine,initsIPOontheWarsawStock

Exchange.Ovostarsold25%ofitssharesfora

totalofPLN93million.

OthercompaniesfromUkrainethatBaker&

McKenziehasadvisedonrecentIPOsinWar-

sawincludebatterymanufacturerWesta,which

sold25%ofitssharesforPLN130million,and

CoalEnergySA,thethird-largestcoalproducer

inUkraine,whichsold25%ofitssharesforPLN

225million.

Baker&McKenziepartnerMałgorzata

Pietrzak-Paciorek,whoheadstherealestate

practiceinWarsaw,hasbeennamed“Bestin

RealEstateinEurope”intheannualWomenin

BusinessLawAwardsfromEuromoneyLegal

MediaGroup.

Chadbourne&Parke

DorotaSzubielska,apartneratChadbourne&

Parke’sWarsawoffice,washonoredasLegal

AdviseroftheYear2011bytheNationalCoun-

cilofLegalAdvisers.Theawardwasgrantedfor

thefirsttimeinthehistoryofthePolishlegalad-

visers’barassociation.

Cisco

Newtrendsareemergingincybercrime,as

hackersgraduallyabandonspamasameans

ofattackingcompaniesandprepareattackstai-

loredtospecificcorporatetargets.ACiscoSe-

curityIntelligenceOperationsstudyshowsthat

cybercrimetendstofocusonhand-picked

usersorusergroups,andfocusesonthetheft

Boeing

Boeinghascompletedflighttestsofthe787-8

Dreamliner,equippedwithRolls-Royceengines.

Anotherreport,theCiscoVisualNetworking

tion.Thankstonewtechnologiessuchascom-

positematerialsandadditionalelectronicsys- devicesconnectedtotheInternetwillreach15

tems,thelatestDreamlinerismorefuel-efficient andcomplieswiththetoughestenvironmental

standardsintheindustry.Bytheendof2Q

2011,Boeing’sorderbacklogstoodatUSD323

billion—overfourtimesthecompany’srevenue

projectionsfor2011.

CBRichardEllis

CommercialpropertyservicescompanyCBRE

hasbeenincludedontheFortune500listofthe

largestUS-basedcompaniesforthefourth

straightyear.CBREistheonlycommercialreal

estateservicesfirmtobeincludedintheFor-

tune500list.

Thetestsarerequiredtoobtainflightcertifica-

ofintellectualproperty.Ciscosaidthatasare-

sult,thenumberofspame-mailsdroppedfrom

300billionadayinJune2010to40billiona

dayinJune2011.

Index2010–2015,hasfoundthatthenumberof

billionby2015—twiceEarth’shumanpopula-

tion.Meanwhile,onlinetrafficisexpectedto

quadruplebetween2010and2015.

CiscohasreleasednewhardwareforWi-Fi

Internetaccesstocrowdsatsportarenas.Wi-Fi

CiscoConnectedStadiumisavailabletovenue

operatorsaswellasphonecompanies.Itsup-

portsheavy-dutywirelessconnectivitytoenable

thousandsofusersinoneareatoaccessappli-

cationsonlineatthesametimefromtheir smartphones.Thesystemisbuiltaround

Aironet3500phardware,whichsupportsthe

Membersonthemove CBRichardEllis Piotr Śliżhasbeenpromoted to associate director in the CBREValuationDepartment.
Membersonthemove
CBRichardEllis
Piotr Śliżhasbeenpromoted
to associate director in the
CBREValuationDepartment.
Hisprimaryfocusisonvalua-
tionofcommercialandresi-
dentialproperties.Hegradu-
atedfromtheSilesianUniver-
sityofTechnologyinGliwice.
HeisamemberoftheRoyal
InstitutionofCharteredSurveyorsandalicensedap-
praiserinPoland.
Kamil Tyszkiewicz has
joined the Warsaw Office
TeamofCBREasasenior
property
negotiator.
Tyszkiewiczearnedajoint
lawdegreefromtheUniver-
sityofWarsawandtheUni-
versityofFloridaandcom-
pletedfurtherstudiesinreal
estate.
Mariusz Wiśniewski has
beenappointedseniorprop-
ertynegotiatorintheOffice
AgencyTeamofCBRichard
EllisinGdańsk,wherehewill
focusonleasingofficeprop-
erties in the Tricity area.
Wiśniewskiholdsadegreein
foreignaffairsfromtheUni-
versityofGdańsk.

TheFortune500ranksUS-basedcompanies

bytotalrevenue.CBRichardElliswasranked

440 th .

CBREwasalsorecognizedastheNo.6

providerofoutsourcingservicesacrossallin-

dustries,accordingtotheannualGlobalOut-

sourcing100releasedbytheInternationalAs-

sociationofOutsourcingProfessionals.Thisis

thehighestrankingforanycommercialreales-

tateservicesfirmonthe2011list.

Warsawwasrankedasthe5 th -mostattractive

businesslocationacrossallemergingmarkets

inastudybyCBRE.BusinessFootprints,pub-

lishedinAugust,comparestheofficepresence

of280majorcompaniesacross101countries

and232cities.Ofthe30mostpopularcom-

panyofficelocations,17areinemergingmar-

kets. OverallWarsawrankedasthe12 th -mostpop-

ularbusinesslocation,behindNewYork(11 th ) andParis(10 th ).Thestudyalsorevealedthat manycitiesinemergingmarketsareattracting

asimilarnumberofinternationalofficeoccu-

piersasestablishedbusinesscenters.

Inothernews,CBREhasboughtEuroMall

CentreManagement,aspecialistintheman-

agementofshoppingcentersandmallsacross

Central&EasternEurope.Foundedin2002,

EMCMofferspropertyandassetmanagement

servicesintheCzechRepublic,Latvia,Lithua-

nia,PolandandSlovakia.ItsclientsincludeIn-

vesco,INGRealEstateInvestmentManage-

ment,andCarpathianAssetManagement.

EMCMmanagesover40properties,withover

658,000sqmandover2,400tenants.

workofaccesshotspots. IntheCiscoNetworkingAcademy,three PolishparticipantsintheNetRidersnetwork engineeringcompetition,heldonlineinJune,

madeittothetop10:MaciejDeryngof

WrocławUniversityofTechnology(4 th ),Rafał

KlupaoftheSchoolofBankingandManage-

mentinKraków(6 th ),andGabrielSzuterof theInstituteofITTechnologiesinWrocław (7 th ).Therewere150contestantsinNetRid-

ers,from49countries.

Cushman&Wakefield

ers,from49countries. Cushman&Wakefield CommercialrealestateexpertCushman&

CommercialrealestateexpertCushman&

Wakefieldhasrepresentedthreetenantsin

recentofficeleasesinKraków.TheAcademic

BusinessIncubatorsFoundation,anetwork

ofinstitutionstosupportandadvanceentre-

preneurship,hasbecomeanewtenantatthe

M65Meduzaofficebuilding(picturedabove).

ThesamebuildingisnowhometoPanorama

Finansów,aleaseserviceprovider.M65

Meduza,deliveredin2009,isa9-storybuild-

ingwith4,600sqmofofficespace.

AmerSportsPoland,thedistributorofSa-

lomonproductsinPoland,hasleasedoffice

spaceatEtiuda,a5-storyClassAoffice

buildinginKraków.

C&WadvisedMark-7,awholesaleroffood

products,onatenantcontractattheMARR

BusinessParkinKraków,whereMark-7will

occupyover1,700sqmofwarehouse,office

andsocialspace.

C&WalsorepresentedTPAHorwath,atax

consultancy,initsleaseof700sqmatMu-

rawaOfficeParkinPoznań,withafurther200

sqmin2013.

Insaletransactions,C&Wadvisedprivate

equityfirmRotariainitsacquisitionofthe

AlmaofficebuildinginWarsawfromInvesco

RealEstate.Almaisafullyleasedpropertyof

about6,000sqm.

Officeshavetakentheleadamongcom-

mercialpropertymarketsinEuropein2Q

2011,againstretailandattheexpenseofpe-

ripheralmarkets,accordingtoamarketup-

datepublishedbyC&WinJuly.Thereport foundthatinvestmentactivityinEurope’s commercialpropertymarketsslowedinthe 2 nd quarter,withEUR26.2billiontraded,

11.5%lessthanin1Q2011.Theofficesector

sawitsshareofactivityrisefrom36%in1Q

2011to46%in2Q2011,withtradingup10%,

comparedtodeclinesof35%forretailand

46%forindustrial.

EnterpriseInvestors

Forthe10thconsecutiveyear,privateequity

andventurecapitalfundEnterpriseInvestors

hasannouncedtheVentura2010awardsforits

bestmanagersandcompanies.

TheMostDynamicCompanytitlewentto

Kruk,thelargestreceivablesmanagementcom-

panyinPolandandRomania.In2010,Kruk’s

salesincreasedby28%anditsnetprofitby

64%.

AVGTechnologies,anInternetsecuritysoft-

wareproducerwith110millionusersworld-

wide,wontheawardforMostEfficientCom-

pany.AVGoutperformeditsrivalswitha28%

netprofitmarginandanEBITDAtototalassets

ratioof48%.AVG’scooperationwiththemost

popularwebbrowser,Google,wasrecognized

astheEventoftheYearandwonAVGitssec-

ondVenturafor2010.

ManageroftheYearwasKrzysztofKawalec,

thepresidentofMagellan,afinancialinstitution

listedinWarsawwhichservesthemedicalsec-

torinPoland,theCzechRepublicandSlovakia.

GeneralElectric

GEHitachiNuclearEnergyhassignedaletter

ofintentwithEnergoprojektWarszawa,aproj-

ectmanagementcompanyspecializinginthe

energysector,forpotentialcooperationinthe

constructionofGEHnuclearreactors.Thedeal

comesasPGE,thePolishenergycompany

buildingPoland’sfirstnuclearpowerplant,is

lookingatGEHtechnologytousefortheproj-

ect.GEHemploysover10,000peoplein

Poland.

EightstudentsfromuniversitiesinPoland

wereamong32studentswhoreceivedscholar-

shipinthe8 th editionoftheScholars-Leaders Program,conductedbytheGEFoundationand

theInstituteofInternationalEducation.Along

withfinancialaidintheformofEUR3,000each

forthenexttwoyears,thewinnerswillpartici-

pateintheGEFoundation’sLeadershipDevel-

opmentProgramaswellasvolunteerpro-

grams.

HiltonWarsaw

opmentProgramaswellasvolunteerpro- grams. HiltonWarsaw TheHiltonWarsawHotel&ConventionCentre

TheHiltonWarsawHotel&ConventionCentre

hasbeennamedReliableEmployer2010by

RzeczoBiznesie,aKatowice-basedorganiza-

tionpromotinghighstandardsinbusiness.The

HiltonWarsawoffersavarietyofemployeemo-

tivationprogramstosupporttheeverydaywork

ofthestaff,includingEnglishlanguage

courses.Oneoftheprogramsinvolvesinformal

facetimewiththehotel’sgeneralmanagerfor

employeesatalllevelstoshareviewsandex-

changeideas.

Hewlett-Packard

Costsrelatedtocybercrimeincreased56%this

year,HPannouncedinits2 nd annualCostof Cybercrimestudy.Thestudy,compiledbythe PonemonInstitute,comparedcostsshouldered

byprivatecompaniesandpublicinstitutionsin theUSduetoafter-crashdataretrievaland

computerthreatscanninginJune2010and

June2011.Oneofthefindingsisthattheaver-

agetimeforsolvingproblemsafteracyberat-

tackwas18days,whiletheaveragecostforfix-

ingproblemswasUSD416,000.

HPhaslaunchedAlwaysOnpersonalized

technicalsupport,whichadjuststheextentof

theassistancetotheindividualneedsofHP’s

customersandpartners.Partoftheserviceis

anapplicationwhichenablesAlwaysOntobe

usedonmobiledevices.HPsaidthatthenew

servicewillboostcustomersatisfactionandin-

creasetheefficiencyofHP’stechnicalsupport.

AnewplatformfromHP,VerticaAnalytics

System,whichisderivedfromtheHPconver-

gentsystemarchitecture,wasmadeavailable

tocustomersinJune.Itenablesmuchfaster

datainputcomparedtoolder-generation

record-basedsystems.Thenewplatform

booststhecostefficiencyofITsystemsfor

companies.

Membersonthemove Cushman&Wakefield Aleksander Loster has beennamedaseniorsur- veyorintheCapitalMarkets Group at
Membersonthemove
Cushman&Wakefield
Aleksander
Loster has
beennamedaseniorsur-
veyorintheCapitalMarkets
Group at C&W. Loster
earned a law degree at
AdamMickiewiczUniversity
andbusinessdegreesatthe
Poznań University of Eco-
nomics,SzczecinUniversity
ofTechnology,andSheffield
HallamUniversity.Hejoined
C&Win2002.
Anita Rajchelt has been
namedanassociateatCush-
man&Wakefield.Shejoined
C&Win2000andworkedfor
sixyearsasapropertyman-
agerinC&W’sAssetMan-
agementDepartment.In2007
shejoinedtheCapitalMar-
ketsGroupasaseniorsur-
veyor.Sheholdsabusiness
degreefromtheUniversityof
Łódź.
Aneta Rogowicz-Gała has
beennameddeputyheadof
C&W’s Asset Management
Department.Sheisagradu-
ateoftheWarsawSchoolof
Economics and Sheffield
HallamUniversity.Rogowicz-
Gała joined Cushman &
Wakefieldin2004.

Newsline

NewsfromAmChamanditsmembers

KPMG Membersonthemove Membersonthemove Thenumberofluxurybrandsthatareavailable
KPMG
Membersonthemove
Membersonthemove
Thenumberofluxurybrandsthatareavailable
fromauthorizedretailersinPolandincreased
ofover8percentagepointsfrommid-2010to
SheratonSopot
PwC
mid-2011,accordingtoareportbyconsul-
tancyKPMGontheluxurygoodsmarketin
Tomasz Szyszka hasbeen
Tomasz Bejm hasbecomea
partneratPwC,responsiblefor
theTechnologyAdvisoryTeam.
Bejmspecializesinbanking,
appointedsalesandmarket-
Poland.ThegrowthofluxurybrandsinPolish
retailreflectsthegrowingaffluenceofPolish
ingdirectoroftheSheraton
Sopot Hotel, Conference
society.Outof200brandsidentifiedas“lux-
Center&Spa.Hisresponsi-
insurance, telecoms, energy
andfuel,andthepublicsector.
HeisaCertifiedInformation
ury”byKPMG,61%arenowavailabledirectly
bilitieswillincludehandling
fromretailersinPoland.Hi-techgoodshave
salesstrategyandcoordinat-
ing marketing and PR.
thelargestrepresentation,with86%ofalllux-
SystemsAuditorandaCerti-
Szyszkahas10yearsofex-
fiedInformationSystemsSe-
urybrandsinthissectorsoldinPoland.The
perienceinthehospitalityin-
curityProfessional.
least-developedsectorisluxuryhotels,with
only34%ofluxurybrandspresentonthePol-
dustry. He graduated from
theUniversityofBusinessinWrocław.
Marcin Chomiuk isanew
ishmarket.

Inothernews,PolandandotherCEEcoun- itssaleofover99%ofthesharesinUpper

triesimprovedtheirrateofcorporatefrauddis- SilesiaEnergyCompany,thelargestelectricity

providerinUpperSilesia,toTauronPolskaEn-

ergiaforPLN4.6billion.Thefirmalsorepre-

sentedVattenfallinthesaleofVattenfallHeat Poland,withpowerandheatgeneratingplants inPruszków,SiekierkiandŻerańandheating plantsinKętrzynandWola,tothestate-owned

gascompanyPGNiGforPLN3billion.

coveryin2009–2010,accordingtoKPMG’s

FightingFraudreport.Theimprovementisa

resultoftougherfinancialcontrolsimple-

mentedbycompaniestoweatherthenegative

effectsoftheeconomiccrisis,andimprovedfi-

nancialriskmanagement.Oftherespondents

intheKPMGsurvey,48%saidtheyinvestedin

improvingtheirinternalcontrolmechanisms,

while43%saidtheywillcontinuesuchinvest- OrcoGroup

mentsinthenexttwoyears.Despitecompa- LaRotisserieRestaurantattheMamaison

nies’strictermeasurestoprotecttheirfinan- HotelLeReginainWarsaw,ownedbyOrco

cials,KPMGnotedariseinleaksortheftof

confidentialinformation,with45%ofrespon- restaurantfromPolandbyDiningGuide,a

dentsaffectedbythisproblem.

KulczykInvestments

KulczykOilVentures,aunitoftheKulczykIn- forthemagazine’sCEEFoodAward.Winners

vestmentsholdingcompany,hasopeneda

newcommercialwellintheOlgovskoyegas

fieldinUkraine.TheO-14wellisthethirdwell

drilledintheOlgovskoyefieldsincethecom- winepairings.

panyacquireditsinterestinKUB-GasinJune

2010.Itispartofalargerdevelopmentpro- awardfromPolishHoReCatrademagazines

gramforKUB-Gasassetsthrough2011and

2012.

Manpower

EmployersinPolandanticipateasteadyhiring

pace,withmorethan20%expectingtoin- PanattoniEuropehascommencedanumber

creasestaffinglevels,HRspecialistManpower

reportedintheManpowerEmploymentOut-

lookSurveyreleasedinJuly.Polishemployers

acrossallindustrysectorsandallregionsre- SłubiceSpecialEconomicZoneinGorzów

portedpositivehiringintentionsfor3Q2011,a

significantincreasefrom2Q2011.Ofthe751

employerssurveyed,22%anticipatedadding

totheirworkforcein3Q2011,while8%plan

reductionsand67%expectnochange.

Group,hasbeenshortlistedastheonly

Hungariantrademagazine,initsrankingof

Central&EasternEurope’sTop10Restau-

rants.Therestaurantsonthelistwillcompete

willbeannouncedattheendoftheyear.

LaRotisserieRestaurantwasshortlistedfor

chefPawełOszczyk’ssignaturecuisineand

Earlier,LaRotisseriereceivedtheHermes

PoradnikHandlowcaandPoradnikRestaura-

tora,inthehotelrestaurantscategory.

Panattoni

Warehouseandindustrialspacedeveloper

ofbuilt-to-suitprojectsinPoland.A17,600sq

mfacilityforFaurecja,anautomotivepro-

ducer,isunderconstructionattheKostrzyn-

Wielkopolski.A11,165sqmprojectisunder

constructionatPanattoniParkGliwiceIfor

fooddistributorNagel-Group.InRogoźnica

andWolaCicha,partofEuro-ParkMielec,

Panattonihascompletedabuilt-to-suitfacility

Whenitcomestoindustrysectors,employ- forhouseholdappliancesmanufacturerZelmer

ersinconstructionhadthemostoptimistichir- SA.FoodproducerDanonehascommis-

ingplans,followedbymining&quarryingand

hotels&restaurants.Hiringintentions,al- PanattoniParkŚwięcice.

thoughnotasoptimistic,werealsosignaled

bythefinance,insurance,realestateandbusi- aback-officeprocessesoutsourcingcompany,

nessservicessectors. Poland’soutlookremainsoneofthemost

wiceII.AtPanattoniParkŁódźEast,PaulHart-

optimisticoutofthe21countriessurveyedin

Europe,theMiddleEastandAfrica,trailing

TurkeyandRomaniabutevenwithBulgaria.

NortonRose

LawfirmNortonRosePiotrStrawaandPart- tionoftwonewtenants,automotiveglasspro-

nershasadvisedenergycompanyVattenfallin

sioneda13,600sqmbuilt-to-suitfacilityat

Innewleases,ArteriaDocumentSolutions,

hasleased2,500sqmatPanattoniParkGli-

mannPolskahasreneweditsleasefor5,230

sqminthepark’sfirstbuildingandsigneda

newleasefor2,000sqminthenewthird

building.IncentralPoland,PanattoniPark

Stryówhasbeenfullylet,followingtheaddi-

ducerSaint-GobainSekuritHanGlas,which

leased4,400sqm,andinvestmentgroup

CVBCInvestmentHoldingAG,whichleased

2,650sqm.

PMGroup

CVBCInvestmentHoldingAG,whichleased 2,650sqm. PMGroup CivilengineersandarchitectsfromPMGroup

CivilengineersandarchitectsfromPMGroup

havebeencommissionedtooverseeconstruc-

tionofanewofficebuildingwhichwillserveas

theheadquartersfortheWałbrzychSpecial

EconomicZone(pictured).PMGroup,which

designedtheproject,iscooperatingwithgen-

eralcontractorEiffageBudownictwoMitex.The

projectisscheduledfordeliveryinSeptember

2012.

AnotherconstructionprojectunderPM

Group’ssupervisionisunderwayat3M’sEuro-

peanProductionCenterinWrocław,withtwo

newproductionfacilitiesbuiltbyPMGroup,

fromwhich3Mwillsupplyproductsforthe

auto,airandspaceindustries.

PMGroupisalsosupervisingconstructionof

abuildingdesignedbytheAAstudioforthe

AmericanSchoolofWarsawinKonstancin-

Jeziorna.The6,000sqmbuildingwillmeet

LEEDecologicalcertificationstandardsandwill

bedeliveredbyJune2012.

IncooperationwithdesignstudioAlterPolis,

TPSConsultandErnst&Young,PMGrouppre-

paredastudytoprojecttheoptimaldevelop-

mentoftheGdańskairportthrough2035.

GdańskLechWałęsaAirport,Poland’s4 th -

largest,currentlyserves2.2millionpassengers

ayear.

PwC

TheWarsawStockExchangegeneratedthe

largestnumberofinitialpublicofferingsin2Q

2011ofanyexchangeinEurope,butithasa

longwaytogotomatchtheLondonStockEx-

changewhenitcomestothetotalvalueof

IPOs,accordingtotheIPOWatchEuropere-

portpublishedinJulybyconsultingfirmPwC.

With55IPOs,including13onthemainmar-

HOTDATE

Sep.29.11

Conference:Clean,GreenandTalent-Driven BPO/ITOHubinCentralEurope Place:Katowice

Time:9:00A.M.

ketand42onthesecondarymarketNewCon-

nect,theWSEsawthehighestnumberofnew companylistingsever.

TheLSEgenerated77%ofthetotalvalueof

allIPOsinEuropeinthe2ndquarter,thanksto

IPOsofcommoditiesfirmGlencoreandoiland

gascompanyVallares,togethervaluedatEUR

8.0billion,whentheentireIPOmarketinEu- yearsontheWarsawmarket,theSheratonhas

ropewasworthEUR13.4billion.

umn),whopreparedaspecialtastingmenufor

TheSheratonWarsawcelebratedthe15 th an- niversaryofStarwoodinPolandwithaCrystal

Galaforfriends,customersandbusinesspart-

ners.OneofthestarsoftheeventwasSheraton

chefArturGrajber(picturedinpreviouscol-

guestsandacrystalanniversarycake.Inits15

hosted1,500,000guests.

DeutscheBörsegeneratedthe2nd-largest

valueofIPOsin2Q2011,atEUR959million,

followedbyWarsawatEUR600million.

StarwoodHotelsandResortshaslauncheda

newcustomerloyaltyprogramforeventorganiz-

ers,StarwoodPreferredPlanner.Membersmay

AccordingtoaPwCreportonexecutivecom- exchangethepointstheyearnfromStarwoodfor

hotelstaysorairlinetickets.Forinstance,20,000

pensationatthelargestpubliccompaniesin

Poland,lastyearmediaandentertainmentin- pointsintheprogramcanearnatwo-daystayin

dustriespaidthehighestmedianyearlysalaries

tomembersofmanagementboards(PLN2.2

million),followedbybanking(PLN1.6million),

telecoms(PLN1.5million)andfuels(PLN1.3

million).CompaniesincludedintheWarsaw

StockExchange’sblue-chipWIG20indexpaid

PLN1.4milliononaveragetotheirboardmem-

bers.Thebest-payingcompanywasCinema

CityInternational,withanaverageofPLN3.5

millionpaidtoeachmemberofthemanage- meatsandmineralwaters.Vinotequeusesan

mentboard.

restauranttooffermanywinesbytheglasswhile

theCanaryIslands,or75,000pointsaweekat

theWestinCapeTown.

Cateringtoconferencecustomers,Sheraton

hotelshavelaunchedanewcoffeebreakmenu,

developedincooperationwithCorePerform-

ance,aspecialistinhealthynutritionand lifestyles. Vinoteque,anewfoodoutlet,hasopenedat

theSheratonSopot,offeringover250wines,rare

Enomaticwineservingdevice,whichallowsthe

maintainingthepristinequalityofthewineleftin

thebottle.Foodsamplingandtakeawayare

available,andVinotequealsofeaturesacigar

Staffer

StafferHospitalityhaslaunchedthefirstcloud-

basedonlinestaffingandschedulingtoolfor

hourlyworkersinPoland.Thetoolshouldcom-

pletelyautomatethewayhourlyworkforcesare

staffedandscheduled.Itallowsworkerstosign intotheirownaccountsandsignupforavailable shifts,andmonitorpayandhoursworked.Hotel

departmentmanagershave24/7accesstothe

shiftschedulingtool,wheretheycansetupand

costcontingentlaborandviewthedatabaseof

workers.Theycanmonitorandprovidefeed-

backtoallscheduledworkers.Hundredsofhos-

pitalityserviceworkersthroughoutWarsawal-

readyrelyontheonlineplatform,atsuchleading hotelsastheHilton,theMarriott,theHyattand theSobieski.

Overthenext6monthsStafferPolandplans

todeliverthetoolandsupportservicestothe

constructionandhealthcareindustries.

Trusiewicz&Siwko

ThelawfirmofTrusiewicz&SiwkoadvisedPol-

ishStateRailwaysasitenteredintoapartner-

shipwithconstructioncompanyHPReavisto

buildanewrailwaystationtoreplacethecurrent

WarsawWeststation.Theproject,estimatedat

EUR110millionincludingofficeandretailsec-

tions,isscheduledfordeliverybytheendof

2014.

tions,isscheduledfordeliverybytheendof 2014. Salans TheWarsawofficeofSalanslawfirmhasbeen

Salans

TheWarsawofficeofSalanslawfirmhasbeen

honoredintheChambersEuropeAwardsfor

Excellence2011inthecategoryPoland—Inter- lounge.

nationalLawFirmoftheYear.2011marksthe

thirdtimeSalanshasreceivedtheaward.In

2004and2009itwasrecognizedasthebest

lawfirmintheCEEregion.Intheawards,

Chambers,publishersoflegaldirectories,iden-

tifiestheworld’sleadinglawyersandlawfirms

invariouspracticeareasindifferentjurisdic-

tionsaroundtheworld.

StarwoodsHotelsandResorts

tionsaroundtheworld. StarwoodsHotelsandResorts A m e r i c a n I n v e s t
A m e r i c a n I n v e s t o

A m e r i c a n I n v e s t o r

TheultimateconnectiontoAmChamPoland

Calltofindoutaboutadvertisingopportunities+48-22-520-5993

Agenda

IntelligencefromAmChamanditscommittees

PoliticalDiscussionForum

Peopleandprofit

Grzegorz Napieralski, leader of the main left-wing opposition

party,sharedhisthoughtswithAmChamonhowtohelpbusi-

nesses grow while continuing to protect the social welfare of employees

P olandshouldbetterutilizenewtechnol-

ogyandinnovationsintheeconomyin

ordertocontinueitseconomicgrowth

includingeducation,defense,andpossibly

foreignaffairs.

toeliminateadministrativebarriersthatham-

perthedevelopmentofbusinessinPoland,

Apartfromwinningahealthyrepresenta- especiallyinsuchareasasconcessionsand

administrativepermitswhichbusinesses

havetoobtaininordertogrow.Accordingto

Napieralski,thereisalsotoomuchfiscal

oversightoftheprivatesectorinPoland.

Therearetoomanyinstitutionsthatareau-

Inacrossfireofquestionsfromtheco-

andmaintaincompetitiveadvantagesforin- tionintheParliamentthisfall,SLDneedsto

vestorsintheyearstocome,accordingto

GrzegorzNapieralski,leaderofthepost- onwhetherornotthepartyisreadytotake

communistpartyDemocraticLeftAlliance

(SLD),whospokeatameetingoftheAm-

ChamPoliticalDiscussionForuminJuly.

reachaconsensuswithinitsownleadership

responsibilityforgoverninginPoland.

chairsoftheAmChamPoliticalDiscussion

Forum,MarekMatraszekandRobertKoński,

Napieralskiadmittedthattheyoungergener- improvement,hesaid.

ationofSLD’sregionalandlocalleaders, whoaremoreorlessNapieralski’sage(he

thorizedtoconductfiscalaudits,andtheir

actionsarenotcoordinated.Thatcallsfor

WhileNapieralskiclaimedthatSLDwants

tobalanceeconomicfreedomwithprotec-

tionofworkingpeople,hepointedoutthat

thelawrequiresemployerstolookafterthe

well-beingoftheirworkerstoo.Onetoolfor

doingthismoreeffectively,inhisview,isthe

LaborCode,whichhearguedhasbeenlib-

Napieralskisaidthatwhenitcomestofor-

eignpolicy,theEuropeanUnionisPoland’s

mostimportantpartner,followedbythe

UnitedStates.“TheUSisPoland’smostim-

portantpartneroutsideoftheEU,”Napieral-

skisaid.HeaddedthatSLDwouldworkto-

wardsdeepeningcooperationbetweenthe

twocountries,especiallyonsuchplatforms

asacademiccooperation,includingstudent

exchangeprograms.HesaidthattheUS

helpedPolandalotwiththeeducationalpro-

gramsitofferedinthe1990s.“Thosepro-

gramsfocusedmainlyondemocracy-build-

focustofree-economy-building.”

TheSLDleadersaidthatheisastrong

proponentofcloser

economicandpolitical

cooperationbetween

theUSandtheEU,and

saidPolandcouldserve

asanimportantcata-

lyst.

Whenaskedabout

theenergysector,

Napieralskisaidhewas

notaproponentof

Poland’snuclearpro-

gram.Insteadofbuild-

inganuclearpower

plant,whichiscostly,

hesaidthatPoland

shouldmodernizeits

electricgridandpower

stations.Amoreen-

ergy-efficientgridand moreefficientpower plantswouldaddsome

30%moreenergytothe

systemwithoutthe

needtobuildanynu-

clearplants.

systemwithoutthe needtobuildanynu- clearplants. Napieralski,whoheadstheParliament

Napieralski,whoheadstheParliament

CommitteeforInnovationandNewTechnol-

ogy,saidthatdevelopedcountrieshavespe-

cialpoliciesaimedathelpingpromoteinno-

vation.ItishightimePolandhaditsownpol- wasbornin1974),saythepartyshouldstay

icy,Napieralskisaid,orthecountrywillbea

loserintheglobaleconomicgame.

aftertheelections,becauseanygovernment

awayfromanygovernmentcoalitiontalks

Napieralskinotedthatpromotinginnova- thattakesoveraftertheincumbentPO-PSL

tionintheeconomyisnotonlyaboutinvest- coalitionisboundtolosepopularsupportin

ingininnovativetechnology.Itrequiresa

changeintheeducationsystemaswellasin

theoveralleconomicphilosophyofpolitical

coalitiontalksaftertheelections,Napieralski

changerequiresstrongpoliticalleadership.

SLDhasanalyzedhowpoliticalleadershipis

leadersandotherstakeholders.Butsucha

timeasitdealswithmanynegativeconse- eralizedtoomuchbythecurrentgovern-

quencesofthePO/PSLera.

ment.

Althoughhedidnotexcludeenteringinto

didsaythatthereisonepartythatSLD

wouldnotapproachunderanycondition:

Law&Justice(PiS),currentlythelargest

partyintheopposition.“Webelievethatthe

PiSelectoratemighteventuallyforgivethem

forenteringintoagoverningcoalitionwith

electoratewouldneverforgiveusformaking

acoalitionwiththem.”

NapieralskisaidthatalthoughSLDisa

putintopracticeinmanydifferentcountries,

includingIsrael,GermanyandtheUnited

States,anditoptsforestablishinganew

ministrytooverseethedevelopmentofnew

technologyandinnovationinPoland.Inad- us,”Napieralskiquipped,“butwefeelour

ditiontothoseareastheministrywouldalso

overseeacademicandscientificresearch,as

wellaspatentlaw,sothatalltheelements

wouldmoveinharmonytowarddevelop- left-wingparty,itisdeterminedtosupport

mentoftheinnovativeeconomyinPoland.

thedevelopmentoftheprivatesector,be- ing,”hesaid.“Nowitistimetochangethe

causeprivatebusinessgeneratesmoneyfor

thestatebudget.HesaidthatSLDwouldopt

NapieralskisaidthatthecurrentMinistryof

RegionalDevelopmentisthebestcandidate

forreformandcouldserveasthe

basisforsuchanewministry.This

isbecausetheministryhasbeen

handlingEUfundsforregionalde-

velopment.

BetterinnovationandR&Din

Polandwillrequirebetteruseof

EUfundsforthegrowthofhigh

techandIT.Polandsofarhasuti-

lizedonlyatinyportionofwhatit

couldhavespent,whichisaprob-

lemthatneedstobeaddressed

bythenextgovernment.

Establishinganewministryis

oneofthepreconditionsforSLD

toenterintoagoverningcoalition

withpartiesthatwillhaveenough

representativesinthenewParlia-

ment—presumablyCivicPlatform

(PO)andthePolishPeople’sParty

(PSL),whichnowformthegovern-

ingcoalition.

Asapotentialcoalitionmember

aftertheparliamentaryelections

thisfall,SLDwouldbeinterested

inheadinganumberofministries,

koiwĆzsamoT:otohP
koiwĆzsamoT:otohP

Forumco-chairRobertKońskiwithSLDleaderGrzegorzNapieralski

Small&Medium-SizedEnterprisesCommittee

Bootstrapeconomy

AreportfromBankPekaoattemptstodiagnosethefinancing

needsofsmallbusinessesinPolandandtheirattitudetoward

theeconomyaroundthem

C ommercialbankshaveatoughjob

convincingsmallandmedium-sized

enterprisesinPolandtouseexternal

anoverviewofSMEs’capitalinvestmentsin

2010andtheirplansfor2011.Lastyear

42%ofSMEswereinvolvedinsomecapital

fromtimetotime,but48%saidtheysupport

allbusinessfunctionsin-house.Ofthose

whosaidtheydooutsourcebusinessfunc-

tions,71%saidtheyoutsourceaccounting

andtaxservices.Marketingandadvertising

serviceswereoutsourcedby21%andITby

17%.

Onmoregeneralquestionsaboutthe

businessenvironmentinPoland,

KierzkowskisaidthatSMEsrankedlocalad-

ministrationhighlyasapartnerfortheir

business.Theyalsorankedhighlythequal-

ityofcreditadvisoryservicesprovidedby

privatebanks.

notjoiners,withonly8%ofthesamplebe-

longingtooneormorebusinessorganiza-

tions.

Thefirsteditionofthereportwaspub-

lishedinDecember2010.TheEnglishver-

sionisavailablefordownloadat

http://www.pekao.com.pl/mis.Anotheredi-

tionwillbepublishedinDecember2011.

financing,accordingtoarecentreportpre- investmentprojectsand58%werenot.

paredbyBankPekaoSAincooperation

withpollingcompanyPBSDGA.Only22%

ofSMEsusebankfinancing,thereport

found.TomaszKierzkowski,headoftheEU

FundsandPublicProgramsOfficeinthe

SMEDepartmentofBankPekao,presented

themainfindingsfromthestudyattheSME

BusinessForum,thefourthsofarinaseries organizedbytheAmChamSMECommittee. Kierzkowskiexplainedthatbecause Pekaohadnoup-to-datedataavailable

aboutSMEs,intheautumnof2010the

bankdecidedtoasktheownersofsmall

businessesfortheirassessmentofthepre-

vious12monthsandtheupcoming12

monthsintheeconomyatlarge,employ-

menttrendsattheirowncompanies,busi- thissectorin2011,”hesaid.

nessprospects,theavailabilityofexternalfi- Outsourcingwasalsoontheagenda.In

nancing,capitalinvestmentplans,exports

theyoutsourceservicesregularlyand19%

thebankwasabletodrawapictureof

whereSMEsstandintheeconomyacross

foursectors:construction,production,serv-

ices,andtrade.

andinnovation.Basedon7,000interviews,

Whenitcameto2011projections,58%said

theydidnotplananyinvestmentsthisyear,

while35%saidtheydidhaveplansand7%

werenotsure. Thegoodmessageforcommercialbanks wasthatthevalueofinvestmentsdeclared

bySMEsfor2011wasmuchhigherthanfor

2010.Companieswhosaidtheywerelook-

ingatadditionalfinancingalsopointedto

leasing,commercialloansandEUfinancing

astheirpreferredformsofexternalfinanc- ThesurveyalsorevealedthatSMEsare

ing. Kierzkowskistressedthatcompaniesin theconstructionsectorappearedtobethe mostwillingtoturntoexternalfinancing. “Thismaysignalaboostininvestmentin

thePekaosurvey,33%ofthesamplesaid

thePekaosurvey,33%ofthesamplesaid OneofthequestionswaswhetherSMEs

OneofthequestionswaswhetherSMEs

financebusinessinvestmentsfromtheirown

sourcesorresorttoexternalsources.Fully

78%ofthesamplelookedonlytothem-

selvesforfinancing.Kierzkowskisaid,“Only

22%saidtheyuseself-financingcoupled

withexternalfinancing.”

Whydosmallcompaniesprefertoboot-

straptheirfinancingratherthantakeout loansfromcommercialbanks?Asmanyas

58%oftherespondentswhosaidtheydid

notuseexternalfinancingexplainedthat

theywereafraidoftakingontheburdenof

debt.For17%,self-financingwasviewedas

cheaperthanborrowingmoneyfromcom-

mercialbanks,while15%saidtheydidnot

needexternalfinancingbecausetheirrev-

enuestreamsarebigenoughtocovertheir

currentfinancialneeds.However,11%said

theydidnotapplyforloansbecausethey

figuredtheydidnotqualify,while8%gave

otherreasonsfornotresortingtoexternalfi-

nancing. “Thisisanimportantmessagetothe bankingsectorinPoland,”Kierzkowskisaid.

“Some78%ofsmallandmedium-sized

companieshaveyettobepersuadedtouse

commercialbankingtohelptheirbusiness

grow.”

Otherkeyfindingsofthereportincluded

Agenda

IntelligencefromAmChamanditscommittees

Outsourcing/HighTechCommittee

Outsourcing/HighTechCommittee Cloudcomputingbecamerealityasbroadbandspedup

Cloudcomputingbecamerealityasbroadbandspedup

Andthecloudrollson

OutsourcingITfunctionstoweb-based

providershelpscompanieskeepcosts

downtoearth

Cloudcomputingprovidersareconfident,

butcloudcomputing,asanidea,isnothing

new.“Cloudcomputingisatermthatcoversa

widevarietyoftechnologies,includinghard-

wareofferedasaserviceandalsosoftwareof-

feredasaservice,”Pietrzakexplained.“These

areservicedeliverymodelsthathavebeen

aroundinthemarketforyears.Thecloud

computinghypebeganwhenproviders

startedtooffercompetitivepricingandmore

flexibleservice.Itwaspossiblewhentechnol-

ogyadvancedtothepointofofferingbroad-

bandconnectivity.Itchangedthewaycompa-

niescouldleveragetheexistingtechnology.”

Whatisdifferentnowfrom10yearsagois

thatcompaniesnowhavetoreconsidertheir

businessmodelsinordertoseehowtheycan

applycloudcomputingtogetacompetitive

advantageoutofit.

PietrzakobservedthatITpeopleemployed

bycompaniesareoftenafraidofcloudcom-

puting,becausetheythinkthatifthecompany

theyworkforoutsourcesITtotheclouds,their

jobswillbeinjeopardy.Thisisthewrongap-

proach,Pietrzaksaid:“ITprofessionalsin

companieswillnotdisappearbecauseof

cloudcomputing.Theywillbeneededtorein-

ventbusinessprocessesandbuildentirely

newmarkets.”

B usinessescannotexistwithoutthelatest

technology,becausetheircustomers

useitandproducedatathatcompanies

anIBMsurvey.“Thisisbecausetherearealot

ofhiddencostsinvolvedinIT.Itisnoteasyto

calculatetherealcostbecauseoftheneedto

constantlygrowit.”

Pietrzaksaidthatwithcloudcomputing,IT

issuesarenotgoingtobeeasierforcompa-

nies.“Theyaregoingtobemuchmorecom-

plicated.Offeringthesimplicityofaprocessto

theenduseroftenmeansthatinternal

processesattheprovider’sendaremuch

morecomplex.Sowithcloudcomputing—

whichisfocusedonprovidingsimplesolu-

tionstomultipleclients—itmeansthatITpeo-

pleincompanieswillactuallyhavemorework

tomaketheprocesssmoothandsimple.”

Pietrzakadmittedthattherearelimitsto

needtointegrateinordertospotmarket

trendsandmakepropermarketdecisions,ac- Thisisoneofthereasonscloudcomputing

cordingtoPiotrPietrzak,chieftechnologistfor

theCEESEICloudTeamatIBMPoland,who

spokeatameetingwiththeAmChamOut- moreflexibleandtransparentITcosts,”

sourcing/HighTechCommitteeinMay.This

means,however,thattheITcoststhatbusi- havetoknowhowmuchtheyneedtoputinto

nessesincurareontheriseastheyupgrade

theirITinfrastructuretoembracemoreand

moredata.

isbecomingsopopularwithbusinesses.

“Withcloudcomputing,companiesdealwith

Pietrzaksaid.“Cloudcomputingproviders

theirbudgettomaintaintheiroperations.”

Pietrzaksaidthatalmostallofcompanies’

ing.Theproblemisthatcompaniesdonot

problemisthatitisnotknownwidelyenough

ITneedscanbesupportedbycloudcomput- cloudcomputing:“Becauseofdataprotection

regulations,whichprohibitcertaindatafrom

beingprocessedoutsidethecountryforin-

stance,somecloudcomputingproviderscan-

notoffere-mailservicesorotherservicesthat

yet,”Pietrzaksaid.“Wecanproducefaster

ThecoststructureforITiscomplexand

ever-changing,andthuschiefinformationoffi- knowit.“Thetechnologyisavailable,butthe

cersoftendonotknowthepricetagattached tospecificsystems.“WhenyouaskaCIO howmuchitcoststooperateaparticularIT systemwithinthecompany,suchasERP,

CRM,orevene-mail,morethan50%ofCIOs

willnotknowtheanswer,”Pietrzaksaid,citing

processorsandlargerandfasterdiscs.Com- requiretransferringsensitivedataoutsideof

paniesdonotabsorbthenewtechnology

quicklyenoughtosupporttheirdailybusiness

andoperations.”

thecompanytoanothercountrywherethe

cloudcomputingprovidershavetheir

servers.”

cloudcomputingprovidershavetheir servers.” RealEstateCommittee Downtownliving

RealEstateCommittee

Downtownliving

WhiletheresidentialmarketinWarsawhasseenaslumpin

medium-rangepropertypricesandtransactions,upscaleloca-

tionsarestillsuccessful

T hePolishhousingmarketseemstobe

gettingworseastimepasses,according

toPawełSztejter,apartneratrealestate

consultingfirmREASwhospokeatameeting

oftheAmChamRealEstateCommitteein

May.

SztejtersaidthatmostspecificallyWarsaw,

Wilanówdistrict,andabout80%areapart- sideWarsawsawarathersteepdecline,to

mentsofover90sqminthemid-rangeprice

segment.

Othermajorresidentialmarkets—Kraków,

Łódź,Poznań,Wrocław,andtheTricity

(Gdańsk,GdyniaandSopot)—havenotfared

muchbetterinrecentmonths.Ofthesixmajor

nominallevelsfromthefirstquarterof2007,

whichrepresentsanevensteeperdeclinein

realtermsbecauseofinflation.

ThepricedropinWarsawhasnotbeenso

dramatic,however,duetoitsresilienceasthe

capital.Infact,Warsawisfaringquitewell

whenitcomestoup-marketresidential.The

districtofMokotówisstillpopularwithbuyers,

ThemostoutstandingexampleisPraga

South,thankstothedevelopmentofthenew

whichremainstheprimarymarketforresiden- markets,Wrocławistheonethathassuffered

tialrealestate,sawadramaticdropintransac- themostfromthecrisisinresidentialproperty

tionvolumesin2010–2011.Forinstance,by

May2011,therewereatotalof4,500new

apartmentscompletedinWarsawthathadnot

beensold.Ofthisfigure,1,500unitsareinthe

sales.Ayearagotherewere763unsoldapart- whileotherdistrictsarewitnessingarevival.

mentsincompletedprojectsinWrocław.This

year,thenumberrosetoover900.

Whenitcomestoprices,themarketsout- nationalsportsarenathere,involvingalarge-

scaleurbanrenewalprojectwhichwillchange

theimageoftheareauponcompletionnext

year.PartofthePragaSouthrevivalhasalso

comeaboutthankstorapidgrowthofthe

Gocławneighborhood.

Butnationwide,developershaveproblems

sellingtheirnewprojects.Thissituationhas

obviouslyaffectedthenumberofnewresiden-

tialprojectsstartedthisyear.Before2010

therewereanaverageof12,000apartments

startedeachyear,butin2010only10,000

weredeliveredtothemarket.Thedropinnew

projectsissupposedtostabilizethemarket.

inthepastonlyatinyfractionofhomebuyers wereinterestedinturnkeyapartments,” Sztejtersaid.“Thishaschangedrecently,

however,withasmanyas60%ofpotential

homebuyershavingastrongpreferencefor

turnkeyapartments,accordingtoastudyby

GFKPolonia.”

Geogheganunderlinedthattheseedofthe

project’ssuccesswasthedeveloper’sfocus

onquality.Firstoff,Mennollyinvestedina

superlocation,ablockbetweentherecently

openedCopernicusScienceCenterandthe

WarsawUniversityLibrary.Thenthedeveloper

investedinqualitydesign,hiringoneofthe

Sztejterexplainedthatbuyersprefertohan- mostrenownedPolisharchitects,Prof.Stefan

dletheinteriorfittingsanddecorationontheir

owninsteadofoutsourcingtheworkandcov- crashinSpaininJune.)Itisthanksto

eringthecost.Butifdevelopersintroduceda

turnkeystandardasavalue-addedservice

withoutactuallychargingforit,Sztejterthinks

Kuryłowicz.(Kuryłowiczsincediedinaplane

KuryłowiczthattheNowePowiślecomplexis

viewedasoneofthebestresidentialcom-

poundsinWarsawtoday,Geoghegansaid.

Butthedemandfornewapartmentsisex- thiswouldboostsalesofnewapartments.

Mennollyisnowreapingthefruitsofitsbold

pectedtoremainlimited.Accordingtoastudy

byREAS,only3%ofall900,000households

inWarsawarepotentialbuyersofnewapart- Oneofthemwasshowcasedbyanother

ments,whichtranslatesintoonly12%ofall

yearlytransactionsinresidentialpropertyin

thecity.Sztejtersaidthisistherealreasonde- MennollyPoland,thedeveloperoftheupscale

velopersfinditdifficulttosellnewresidential property.

Despitethecrisisinresidentialproperty

thereareoutstandingsuccessstoriesaswell.

investment.Potentialbuyersrepresentall

walksofWarsawlife.Thedeveloperrecog-

nizeseachbuyer’suniqueness,lettingthem

speakerattheRealEstateCommitteemeet- havetheirsayintheinteriordesignofthe

ing,JohnGeoghegan,countrydirectorat

apartmentstheyplantobuy.

WhilesalesoftheNowePowiśleresidential

residentialcomplexNowePowiśleinthePow- developmentarethriving,theretailsectionof

thecomplexhashadremarkablesuccessas

completedbetweenOctober2007andDe- well.TheBritishluxurycarbrandBentleyhas

iśleneighborhoodofWarsaw.Theproject,

Sztejtersaidthattheoutlookfor2011isnot

encouraging.Developersinsuchmarketsas

Łódź,PoznańandtheTricityareespecially

understress.“Thereweremoreprojectcan- offices.ByMaythedeveloperhadsold75%of

cellationsthannewtransactionsinthose

places,”Sztejtersaid.

AccordingtoSztejter,oneideatoboost

salesofnewapartmentswouldbetodeliver

theminturnkeyconditionratherthancold

shell,whichistherulenow.“Thisisbecause

cember2010,delivered296apartmentstothe

market,alongwithsixretailunitsandseveral

allapartments,atanaverageofPLN14,600

persqm.“Atthemomentwemakeasale

everyweek,averagingabout80salesayear

orPLN12millionamonthintransactions,”

saidGeoghegan.“Thisisnotnormalinthe

Polishmarket.”

takenspacethereforitsfirstdealershipin

Poland.

Mennollyconcludedbysayingthatthereis

goodmoneyinPolandforgoodproduct.“But

ithastobeagoodproduct,”hewarned.“You

won’tgetawaywithplasterfinishesandcheap

windows.”

won’tgetawaywithplasterfinishesandcheap windows.” 10 A M E R I C A N I N V E S
won’tgetawaywithplasterfinishesandcheap windows.” 10 A M E R I C A N I N V E S

Agenda

IntelligencefromAmChamanditscommittees

InfrastructureCommittee

addedsitescomeasbigsurprisesforGDD-

KiA.”

AsofMay,theNatura2000listincluded

364protectedsitesinPoland,consideredto

benaturalhabitats,covering8.1%of

Poland’slandmass.Meanwhile,thePolish

governmenthassubmittedanadditional469

sitestotheEuropeanCommissionforinclu-

sionintheNatura2000list.“Weanticipate

thatalltheproposedsiteswillbeaccepted bythecommission,”Marandasaid,“which willboostthenumberofprotectedsitesin

Polandto833.”

willboostthenumberofprotectedsitesin Polandto833.” Roadconstructionissubjecttostrictenvironmentalrules

Roadconstructionissubjecttostrictenvironmentalrules

Noah’sHighway

Poland’seffortstoupgradeitsroadsystem

arestymiedbytherequirementtoprotect

naturalhabitats

F ourcorridorsofthestrategicTrans-Eu-

ropeanTransportNetworkcutting

acrossPoland,linkingEasternand

mals,thenewroadhastoincludeover-

passesandunderpassesthatwillallowthe

animalsintheareatomovefreelyfromone

WesternEuropeandconnectingSouthern

EuropewiththeBalticharbors,willbesignifi- ofthepassageshastotakeintoaccountthe

cantlymodernizedthroughthe2011–2015

NationalRoadDevelopmentProgramcoordi- waterbridges,anddeerrequireland

natedbyPoland’sGeneralDirectoratefor

NationalRoadsandMotorways(GDDKiA).

AccordingtoKatarzynaMaranda,deputydi-

rectoroftheEnvironmentDepartmentat

GDDKiA,whometwiththeAmChamInfra- collisionsiftheyintrudeintothemotorway.To

thisend,differenttypesofprotectivefences

havetobeerectedforsmallandlargeani-

mals.“Thereareregulationsgoverningthe typeoffencetouse,evenintheconstruction phase,”Marandasaid. Butwhilecertainaspectsofprotectingthe environmentduringroadconstructionand useareclearandsimpletofollow,thereare morecomplexlegalissueswithplanningnew roads,especiallywhentheycrossareasthat

areontheNatura2000list.Thelistisstill

oftheEuropeanUnion’sNatura2000pro-

gram.“Theyarereallyimpossibletobypass,”

Marandasaid.

parksinPolandthatareundertheprotection

tionalparks,naturereservesandlandscape

pathforthenetworkcollideswithseveralna-

ronmentalprotection,however,becausethe

ismoredifficultfromthepointofviewofenvi-

simplefromtheengineeringpointofview.It

structureCommitteeinMay,theprogramis

sideoftheirhabitattotheother.Thedesign

typeofanimals—frogs,forexample,require

bridges—aswellasthepopulationsize.

Butpassagestoprotectanimalsarenot

Whenaroadcutsacrossanaturereserve,

itposesasetofenvironmentalissues.Forin- open,andnewsitesarebeingadded.As

stance,iftheareaisthenaturalhabitatofani- Marandaexplained,“Sometimesthosenewly

SheaddedthattheEuropeanCommission

thinksthatalongwiththesitesalreadyidenti-

fiedbythegovernment,Polandshouldcre-

ate34moresitesfortheprotectionofrare

speciesandtheirnaturalhabitats.Iftheirsta-

tusbecomes“strictprotection,”theywillbe-

comehugeobstaclesforGDDKiA’sdevelop-

mentofroadinfrastructure.

MarandasaidthatwhileGDDKiAismoni-

toringthedevelopmentoftheNatura2000

list,thedirectorate,whichisthelargestin-

vestorinroadconstructioninthecountry,

hasnootherchoicebuttodrawupnewroad

planstobypasstheprotectedregions.How-

ever,thereareinstanceswhereconstruction

hasalreadybegunwhensuddenlyapro-

tectedareaisestablishedalongtheroute.

ForGDDKiA,itisusuallyimpossibletoaban-

donwhathasalreadybeenbuilt,andthen

theagencyhastorecultivate,one-for-one,

thelandcoveredbyconstructionwork(with

eachhectareclaimedforconstructionbeing

offsetbyahectareofnewlyrecultivated

area).Thisslowsdowncompletionofthe

Whentheagencyisforcedtoreroutea

roadprojectitalsolosestime,becausethe

wholeinvestmentprocess—includingfeasi-

bilitystudiesandthelike—hastobestarted againfromscratch.

MarandadescribedNatura2000asoneof

themainimpedimentstosmoothdevelop-

mentofroadsinPoland.“Wehavetobein

compliancewiththeEUlegislationonprotec-

tionofnature,”sheexplained.“Sowedothe

bestwecan.ButNatura2000wasintroduced

inothercountriesintheEUwhentheyhad

alreadybuilttheirroadnetworks,soitisa

completelydifferentprobleminPolandthan

intheWest.”

completelydifferentprobleminPolandthan intheWest.” enough.Thehighwayitselfhastobepro-

enough.Thehighwayitselfhastobepro- agency’sconstructionprojects.

tectedagainstanimals,whichcouldcause

InfrastructureCommittee

turedevelopmentfollowingthecountry’sentry

intotheEuropeanUnionin2004,”hesaid.

“However,whentheglobaleconomiccrisishit

in2008,someinvestmentprocesseswere

stalled.”

Piechocińskisaidthatin2009thegovern-

mentdecidedtotakePLN10billionoffofthe

roadinfrastructuredevelopmentbudget.The

realitywasthatthemoneyfromtheEUwastoo

much,comparedtoPoland’sabilitytoco-fi-

spenduptoPLN34billiononroadconstruc- nanceprojects,andthereforePolandcouldnot

tionthisyear,itwillbeabletocomeupwith

onlyPLN26billionnextyearandPLN8billion

EUmoneyisnotenough
Poland’sbudgetforroadconstructionisshrink-

ing,withnocoherentfinancialpolicyinsight

T hereisaquestionmarkhangingoverthe

futureofroadinfrastructuredevelopment

PiechocińskistressedthatwhilePolandmay

in2013.

AccordingtoPiechociński,whosepartyisa

inPoland,becausethecountrydoesnot

utilizeit.Inordertokeepatleastsomeinvest-

mentprojectsgoing,in2009thegovernment

hadtocutroadmaintenanceexpenditures,

passingsomeofthemontolocalgovern-

ments.

haveenoughmoneyinitsbudgettoprovideits

ownportionoffinancingforallconstruction

projectsthatmayqualifyforco-fundingfrom

memberofthecurrentgoverningcoalition,

theEuropeanUnion,accordingtoJanusz

Piechociński,amemberofthePolishParlia-

mentfromthePolishPeople’sParty(PSL)and

vicechairoftheParliamentInfrastructureCom- onethatstartedthelargestnumberofroad

mittee,whospokeatameetingwiththeAm- constructionprojectseverinPoland.“Poland

ChamInfrastructureCommitteeinJune.

thankstocohesionfundsfromtheEUthecur- AccordingtoPiechociński,EUfundingalone

rentgovernmentwillgodowninhistoryasthe

isnotenoughforPolandtoimplementara-

tionalpolicyfordevelopmentofitstransporta-

tioninfrastructure,especiallygiventhemany

gotasignificantboostinfinancinginfrastruc- yearsofneglectininfrastructureinvestments.

12 A M E R I C A N I N V E S T O R SEPTEMBER 2011

“Thisissomethingmanypoliticiansand

businessleadersseemnottonotice,”he

said.

Piechocińskisaidthatpartoftheprob-

lemisthatthepublicdoesnotunderstand

theimportanceoftransportinfrastructure

forthedevelopmentofthenationalecon-

omy.“Goodinfrastructurewillnotemerge

onitsown,”Piechocińskisaid.“However,a

popularviewonhowtobuildnewinfra-

structureistohaveaprivateinvestorwork

withthepublicsector,throughthepublic-

privatepartnershipscheme,regardlessof

whethertheprivatecompanyisgoingto

makeaprofitonitsinvolvementintheproj-

ectornot.Eveneducatedpeoplethinkthis

isthewaytogo.”

AnotherproblemisthatPolishpoliticians

havefailedsofartodrawupclearrulesof

engagementfortheprivatesectorsoitcan

getinvolvedinthedevelopmentofinfra-

structureprojects—notonlyintransporta-

tion,butalsoinenergyandothersectors.

“Polandneedsaclearpolicytowardprivate

investors,”Piechocińskisaid.“Politicians

sofarhavefailedtosetcleargoalsforthe

privatesector.Whattheyhavedone—

amendingthePublic-PrivatePartnership

Act—isnotenoughbecausetheactisa

deadletteranyway.Sotheproblemisnot

onlyabadatmosphereinthepublicadmin-

istrationforcontactswiththeprivatesec-

tor.”

Speakingmorebroadly,Piechociński

notedthatPoland’spoliticalpositionwithin

theEUisontherise,whichwillallowthe

countrytohaveitssayinshapingthepoli-

ciesoftheEUintheyearstocome.

“PolandhasfinisheditsentryintotheEU,a

processwhichisendedsymbolicallybythe

country’sPresidencyoftheCouncilofthe

EuropeanUnion,”Piechocińskisaid.

“BeinganewcomertotheEUmeantfor

Polandthatthecountryhadtoeitherac-

ceptorrejectseveralpan-Europeanplans,

schemes,andprojectsdrawnupbyother

countriesbeforePolandbecameanEU

member.ButthetimewhenPolandwas

onlyaconsumerofEUsolutionsisaboutto

end.Anewphaseisstartinginwhich

Polandwillbeaco-authorofeconomicand

politicalplansandschemesthatwillaffect

theentireEuropeanUnion.”

Piechocińskiaddedthatthisnewsitua-

tionwillhaveanimpactonbusinessorgan-

izationsinPoland,whichwillhavetorefo-

custheirattentionfromdomesticlegislation

torulescomingoutofBrussels.Someof

theissuesregardthequalityofregulations

governingbusiness.“Otherissuesmayre-

gardthenationalbiasofsomeEUregula-

tions,”hesaid,“asmembercountriestryto

protecttheirinterestsinmanydifferent

waysondifferentlegislativeplatforms.”

AccordingtoPiechociński,thebigques-

tionforPolandwillbethestateofitsecon-

omyafter2020,whenPolandisnolonger

absorbinghugeEUfinancialaid.“Wecan

makethesamemistakesthatIrelandand

Spainmade,”Piechocińskisaid.“Those

countries,foryears,werepresentedas

leadersinutilizationofEUaid.Butaftera

periodofverydynamicgrowth,theyhave

experiencedadramaticeconomicslow-

down.”ThetrickforPolandwillbetoavoid

makingthesamemistakes.

makingthesamemistakes. Agri&FoodCommittee Subsidizingfarming

Agri&FoodCommittee

Subsidizingfarming

TheEUsystemofdirectsubsidiestofarmers

willprobablybecomeevenmorecomplex

T hesystemofdirectsubsidiestofarmers,

whichisoneoftheflagshipmechanisms

spectedfortheircompliancewithCAPregu-

lations.“Farmersareentitledto100%subsi-

diesonlywhentheycomplywiththeCAP

regulations100%,”Gubasaid.“Iffarmersare

foundtobewillfullybreachingtheregula-

tions,theymaybedeprivedofeven100%of

thesubsidies.”

oftheEU’sCommonAgriculturalPolicy

(popularlyknownas“CAP”),willbecontinued inthenextEUfinancialperspective,which

startsin2014,accordingtoWaldemarGuba,

deputydirectorofstrategyattheDepartment

oftheEuropeanUnionandInternationalCoop-

erationatthePolishMinistryofAgricultureand

RuralDevelopment,whospokeatameetingof

theAmChamAgri&FoodCommitteeinJune.

Gubanotedthatdespitethecriticismofdirect

subsidiestofarmers,eveninthefollowingfi-

nancialperspective,thesystemwillbecontin-

uedduetothegrowingpricesofenergyand

naturalresources.

Anotherproblem,accordingtoGuba,is

howtodefineagriculturalinnovationatatime

whensomeCAPsubsidiesareexpectedto

berechanneledtosupportthedevelopment

ofinnovationinfarming.Butthereisarub.

“Usuallyitisbigcompaniesthatmakegood

useofinnovations,”saidGuba.“Meanwhile

thefarmingmarketinPolandisdominatedby

smallandmedium-sizedfarms.Thisisthe

specificnatureofPolishagriculture.Soifwe

Thesystemmaybemodified,however.

“ThereisatrendwithintheEuropeanCommis- supportinnovationinfarming,wehaveto

siontotreatsubsidiestofarmersasaformof

publicaidfocusedonthemaintenanceofnat-

uralresources,insteadofhelptoboostprof- andmedium-sizedfarmers.”

itability,”Gubaexplained.“Thismaybeexe-

cutedthroughanewaidprogram.”

makesurewesupportmechanismsthatben-

efitnotonlybigcompanies,butalsosmall

Gubanotedthatthedefinitionoffarmingis

alsoevolvingwithintheEUandmaysoon

embraceotherareasthanjustfoodproduc-

tion.Renewableenergyisoneofthem.“The

MinistryofAgricultureisastrongproponent

ofrenewableenergywithintheEU,”Guba

ableenergy,suchasbiomass,isverytechni-

allycontributetothereductionofgreen-

housegasemissions.Wearelookingat

whetherlarge-scaleproductionofbiomass

willhaveanegativeeffectonmaintainingthe

isreallytechnical.”

isreallytechnical.” Gubanoted,however,thatrestrictiveregula-

Gubanoted,however,thatrestrictiveregula-

tionsgoverningenvironmentalprotectionin

farmingmayhaveanegativeimpactonthe

agriculturalmarketinPoland,becauseitisrel-

ativelyunderdevelopedandisstrivingtoim- said.“Atpresentthediscussionaboutrenew-

plementmodernmass-marketproduction

cal.Itfocusesonwhetherbio-energymayre-

ingfarmingmaynegativelyaffectthecompeti-

tiveedgeofPolishfarmersagainsttheircom-

petitorsintheEuropeanUnionaswellasout-

sideoftheunion,”Gubasaid.

Meanwhile,farmersarealreadyunderpres- qualityofsoil,forinstance.Sothediscussion

methods.“Morerestrictiveregulationsgovern-

surefromtherestrictiveCAPpolicy.Farmers

whoreceiveCAPsubsidiesareroutinelyin-

ConsumerProductsCommittee

Knowtheropes

Producersmustlearnthe

insandoutsofthePolish

TradeInspection

ThegoaloftheTradeInspectionisto

makesurethatcompaniesadheretothereg-

ulationsgoverningtheproductsandservices

theyoffer.TheEconomicFreedomAct,which

isthebillofrightsforbusinessesinPoland,

authorizestheTradeInspectiontoauditlegal

compliancebybusinesses.

D ariuszŁomowski,deputydirectorofthe

DepartmentofTradeInspectionatthe

OfficeofCompetitionandConsumer

Theagencyisgenerallyrequiredtonotify

businessesinadvancewhenitintendsto

conductaninspection,butinspectorsmay

sometimesshowupunannounced,particu-

larlywhentheyareinvestigatingaconsumer

complaint,asafetyissueoranallegedseri-

alsoauthorizedtoconductcontrolledpur-

gatherevidenceforfurtherproceedings.

Atthemeeting,Łomowskiwalkedthepar-

ticipantsthrougheachstepoftheinspection

thatbusinesseshaveandthetypicalprob-

tationsofthesystemthatmayaffecttheac-

tationsofthesystemthatmayaffecttheac- Protection(UOKiK),metwiththeAmCham

Protection(UOKiK),metwiththeAmCham

ConsumerProductsCommitteeinJulyto

presentthelegalframeworkthatgovernsthe

TradeInspectioninPoland,thegoalsofthein- ousbreachoflaw.Agencyinspectorsare

stitution,thesystemithasinplacetocombat

violations,andtherightsanddutiesofbusi- chasesofsuspiciousgoods,inorderto

nessesinthemarketplace.

TheTradeInspectionisagovernment

agencythatmonitorsthelegalityofbusiness

activitiesinselectedspheresofcommerce.Al- procedure,explainingtheapplicableregula- thoughthelistofcommercialactivitiesthatthe tions.Hehighlightedalongthewaytherights

TradeInspectiondoesnotcoverislong(such

asagriculturalproducts,banking,finance,in- lemsthatmaysurfaceduringandafteranin-

surance,ITandR&D),theagencyhasafinger spection.Healsoexplainedsomeofthelimi-

inmanypies.Ithasasayonnearlyallissues

involvingtradeinconsumergoodsandcom- tionstakenbyinspectors.

paniesthatbringthemtothemarketplace.

SEPTEMBER 2011 A M E R I C A N I N V E S T O R 13

Agenda

IntelligencefromAmChamanditscommittees

CorporateSocialResponsibilityCommittee

CorporateSocialResponsibilityCommittee Onthebooksemployeesareonlyacost Accountingfor humanassets

Onthebooksemployeesareonlyacost

Accountingfor

humanassets

steadoftakingthisasset,whichhopefullyis

anappreciatedasset,andreinvestinginpeo-

pletocreateproductivecapacityinintellec-

tualproperty,productsandservices.”

Wheredopeoplecomein?“Ahigherand

higherportionoftotalstockpriceiscoming

fromintangibleassets,”Hermansaid,refer-

ringtotheUSexperience.“Desks,comput-

ersandchairsarerealassets.Unfortunately,

totheaccountingworld,peopleareintangi-

bleassets.ButIthinkI’mprettytangible,cre-

ativeandproductive.”

Hermansaidthathiscompany,HIPInvest-

ment,analyzesannualreportsfromcompa-

niesaroundtheworld.“Theonlyexample

thatwehavefoundsofarofapossibilityof

puttingpeopleonthebalancesheetisfrom

InfoSys,aglobaltechnologycompanyhead-

quarteredinIndia,”hesaid.“Their2008–

2009reporthasahumanresourceevalua-

tion.Theytookthenumberofsoftwarepro-

fessionalsandthesupportstaffwhoserve

thecustomers,andputavalueonhumanre-

sourcesinIndianrupees.Theytalkedabout

theproducingcapacityofpeople.Thatcalcu-

lationendsupleadingtosomethingcalled

returnonhumanresourcesvalueorreturnon

assets.”

Thenumbersshowthatemployee

engagementcreatesshareholdervalue

Whenpeoplearebookedasanasset,

however,theresultscanbepuzzling.“What

youusuallyfindonreturnonassetsinahigh

techbusiness,suchascomputers,isfrom

20%to40%,whichisaveryattractivereturn.

ButaccordingtoInfoSys,thereturnon

humanassetsis5–6%.Soyoumightsayitis

athreat.Weactuallydon’tknowwhetheritis goodorbad,becausenobodyelseisdoingit

inthisway.Whattheyshowedusfor2008

and2009wasunder5%and6%respectively,

soitwasapositivetrendonreturnonassets.

C ompaniesthatareseenbytheirwork-

forceasgoodemployershaveahigher

sharevaluethancompaniesthatare

freedomtoworkonaprojectoftheirown

choosingonedayaweek.

Employeeengagementboostscompanies’

companiesinPolandareratedunderseveral

theRespectIndex,whichseekstoidentify

companiesmanagedinaresponsibleand

asreportingquality,thequalityofinvestorre-

lations,andinformationgovernance.From

yeartoyear,thisindexincludessome15to

themarketaveragewasabout15%.“One

notgoodemployers,accordingtoPaulHer- valueinPolandtoo,Hermanclaimed.Public

man,apromoteroftheconceptofinvesting

forpositiveimpactonhumanandsocialis- performanceindicators,oneofthembeing

suesaswellasnaturalresources,whomet

withtheAmChamCSRCommitteeinMay.

Perhapsthisisbecausehappyemployees

sustainablemanner.Italsoputsstrongem- Butwedon’tknowwhethertheywerebetter

phasisontheinvestmentattractivenessof

aremoreinclinedtocommittheirskillstotheir

professionalwork.HermancitedaGallupsur- companies,ascharacterizedbysuchaspects

veyofemployeeengagement,whichcovered

some3millionworkersintheUS.Only18%

oftherespondentssaidtheyusedtheirbest

skillsatworkeveryday,and80%saidthey

didnot.Hermansaidthatifthe80%onlyhad

aworkenvironmentthatengagedtheirpoten-

tial,thecompaniestheyworkforwouldbene- paniesintheindexgrewbyabout30%,while

fitfromtheirinnovativeskills,whichcould

translateintonewproductsandgreatcus-

tomerservice.

change.Hermansaidthatduringthefirstyear

thanTataorIBM.Thisissomethingthatcan

develop.”

Hermansaidthatgiventhecurrentstan-

dardsofinternationalaccounting,peoplewill

continuetobeacostonthebalancesheet.

20companieslistedontheWarsawStockEx- “Thisissomethingweneedtoinvestinto

helpthemappreciateit,inordertocreate

oftheindex’sexistence,thevalueofthecom- newproductsandservicestokeepcus-

tomerscomingback.”

HermanalsocommentedontheUN

yeardoesnotmakeabigdifference,”head- HumanDevelopmentIndex,ascorecardfor

mitted,“butitissomethingtolookatand

threecategories(economic,socialandenvi-

ronmental)usedtogradecountriesandre-

gions.“Thetop-ratedaretypicallyScandina-

vianandEnglish-speakingcountries,”Her-

mansaid.“Bottom-ratedarecountriesin

Africa.”Interestingly,whilethereisahuman

developmentindexforcountries,therehas

beennosuchindexforcompanies.NowHIP

Investmenthaspreparedone.“Itisahuman

developmentindexthatislinkedtoprofitabil-

HermanisthefounderandCEOofinvest- consider.Thatcouldbeatopictodiscussin

mentfirmHIPInvestor(HIPstandsfor

“HumanImpactandProfit”).HetoldtheAm- Hermanpointedoutthattherearedata

ChamcommitteethattheratingbyForbes

magazinecalled“TheBestCompaniesto

WorkFor”isthebestindicatorofhowhappy

employeesincreasetheircompanyvalue.The

Forbesratingisbasedonasurveyofthepeo- Thisisbecauseofmodernaccounting

plewhoworkforcompaniesthatareratedas

thebest—bothpubliclytradedandclosely

held.Thesurveyasksabouttheiremployee

satisfaction,howengagedtheyarewiththe

company,andwhattheirsalariesare.Therat-

ingfirstappearedin2007,andanewedition

comesouteveryspring.Hermansaidthat

publiccompaniesthatweretop-ratedasem-

ployersofferedabove-marketreturnsontheir

stockovertheperiodof2007–2010.

Oneofthebestexamplestosupportthis

theoryisGoogle,whichforyearshasbeen

oneofthemostprofitablecompaniesfor

shareholdersandwhichnotablyengagesits

employees,forexamplebygivingthemthe

mentandaliabilityonthebalancesheet.

Poland.”

showingthathappyemployeestranslateinto

acompany’sbetterfutureresults.However,

investorsdonotnecessarilyappreciatethis

correlation.

standards.“Youmusthaveheardthatpeople

arecompanies’mostvaluableasset,”Her- ity,”Hermanexplained.“Thebusinesscase

manexplained,“butingeneralpeopleare

notincludedinfinancialstatementsasan

fordoingitisthatcustomerswanttodogood

withwhattheybuyandhowtheyinvest.”

asset.Theyareacostontheincomestate- Althoughtheymaybedifficulttoobtain,

Hermanthinksthatthenumbersdepicting

Sometimesifyoudoanacquisitionofan- thecorrelationbetweenhumandevelopment

othercompanyandyoupayyourprice,peo- andprofitabilityshouldbeavailable.“The

plemightbeanassetonthebalancesheet

realproblem,”heexplained,“isahumanbar-

asgoodwill.”

rier,notatechnicalbarriertotakingusinto

IntheUS,companiesthatreporttheirprof- the21stcenturyandtappingintoallofthat

itstoWallStreetareunderpressurefromthe

stockmarkettoshowmoreprofit,Herman

explained.“Companieswanttoreducecosts,

information,whichisavailablefromanumber

ofgovernment,non-governmentandaca-

demicinstitutions.”

ofgovernment,non-governmentandaca- demicinstitutions.” anditmeansthattheyreducepeople—in- AmChamMediaPatronage

anditmeansthattheyreducepeople—in-

AmChamMediaPatronage

anditmeansthattheyreducepeople—in- AmChamMediaPatronage Consumerscomeface-to-facewithonlinecontent

Consumerscomeface-to-facewithonlinecontent

Engage,engageandsell

Examininghowbrandscanmakeanimpact

throughsocialmedia

S ocialmediaareatwo-wayconversation

thattakesplacebetweencustomers,

butmarketersarepartofthedialogue,

“Facebookisawebsitethatweusewhenwe

wanttogetacertainbehavioroutofourcus- ofmakingknowledgeabledecisions.”

tomers,”Fishersaid.“Facebookisatactic,

anditcanbeareallypowerfultactic,butitis

advertisingcampaign,dataisanessentialpart

Butthosemetricsneedproperunderstand-

ing.“AproperFacebookstrategyisnotabout

thenumberoffriendsyouhave,”Fishersaid.

“ThenumberoffriendsonFacebookisproba-

accordingtoJakeFisher,cofounderofthe

NewYork-basedsocialmediamarketingfirm

Attention,whospokeataconferenceinWar- Fisherillustratedhisanalysiswithrefer-

sawinJulyannouncingapartnershipin

PolandbetweenAttentionandValkeaMedia,a

nichemagazinepublisherwhoseportfolioin- requiresadifferentmarketingstrategy,justas

cludestheEnglish-languageweeklyWarsaw

BusinessJournalandanarrayofcustom-

mademagazinesforcompaniesinvariousin-

dustries.

Althoughtechnologicallysocialmediain- aboutcustomerrelationships.”YouTube,in

cludeblogs,discussionforums,socialnet-

working,micro-bloggingplatformswithmedia

sharing,andotherforms,socialmediaare

moreaboutinteractionthantechnology.“Itis

abouthowcontentconnectswithpeople,”as

Fisherputit.

loguewiththem,”Fishersaid.“Itisverymuch

notthecenterofoursocialmediastrategy.”

encestoFacebook,YouTube,Twitterandso- blytheworstmetric.Icanbuyhalfamillion

cialblogs.Hesaidthateachoftheplatforms

old-timemediarequiredifferentmarketing

fansofmyFacebookpage,andittakesno

time.Theimportantthingafterthatiswhatyou

aregoingtodowiththose500,000fans—how

strategiestoo.“Facebookisincredibleaten- youaregoingtosustainengagement.”

gagingwithyourcustomers,makingadia- AccordingtoFisher,asuccessfulmarketing

strategyonFacebookisnotmeasuredbythe

numberoffansorfriendsthatamarketer’s

turn,istherightplatformfordrivingaware- profilehas,butthenumberof“likes”itgener-

atesovertimeandhowmanytimesthecon-

sandsofviews—lotsofpeoplethatareex- tentisviewedandcommentedon,including

ness:“Youcangeneratehundredsofthou-

posedtoyourmessageonvideo.”But,Fisher

said,YouTubeisterriblefordrivingtrafficto

marketers’websites.“Lessthanone-tenthof

textcommentsaswellascommentsconsist-

ingofphotosandothermedia.

Whilemarketersonsocialmediamustbe

Thiswouldexplainwhycompanieswithout

onepercentofpeoplewhowatchavideoon

YouTubeactuallyclickalinkinsteadofwatch- customers,theyalsoneedtobelookingat

engagedintheconversationbetweentheir

traditionalmediaandpublishingexpertiseare

notthebestprovidersofcontentforonline

marketing.Withouttheknowledgeoftheim- “isamazingfordrivingdemand.Itisaboutthat

pacttheircontentmayhaveonsocialmedia

users,theirmarketingeffortsmayeasilygo

astrayanddomoreharmthangoodtothe

brandsandtheirreputation.Fishermentioned

theexampleofaglobalmarketerthatfailedto

devoteproperattentiontothepostsitgener- Thosedifferentstrategiescanbeproperly

atedonitsFacebookprofile,resultingin

threatsoflegalactionfromusers.Another

globalbrandmisjudgeditsFacebookstrategy

tothepointthatithadtoclosetheprofile,

whichagaingeneratedlegalclaimsfrom

Facebookuserswhohadcontributedtothe