Author Archives: Guest

Stakeholder Trust: A Proposal for a Global Business Ethics Principle

dowden-nicholsThis article originally appeared on the Russian International Affairs Council blog.

By Patricia E. Dowden and Philip M. Nichols

What standards should businesses observe in their own countries, or abroad? Businesses now have resources and influence that rival or surpass those of governments and certainly of ordinary people.[1] The choices businesses make can profoundly influence the lives of every person on the planet. Businesses, governments, and people now recognize that businesses must do much more than merely obey the law. Yet discerning and agreeing on globally appropriate rules for business behavior has been a formidable and contentious discussion among business leaders and academics.

While acknowledging all of the contentiousness, we now offer a modest proposal for a unifying global business ethics principle:

A basic duty of every organization is to earn stakeholder trust.

This principle is meant to replace a more familiar but flawed imperative: that the basic duty of each business leader is to “maximize shareholder value.” [2] Such a duty has never been explicitly written into corporate law, yet is often practiced by CEOs as a way of avoiding dissatisfied shareholders and being replaced by a similarly dissatisfied Board of Directors. But a single-minded focus on profitability – especially very short-term profitability – has serious limitations and risks to the ongoing enterprise; we will explain why earning and maintaining stakeholder trust – including shareholders — can not only serve businesses’ bottom line over time, but also make the market economies where they operate much more sustainable.

Read More at Corporate Compliance Trends…

Womenomics and Abenomics

By Tyler Makepeace

At the 2014 World Economic Forum in Davos, Switzerland, Prime Minister Shinzo Abe of Japan expounded on his program for economic reform, known as Abenomics. The plan consists of three “arrows”: monetary easing, fiscal stimulus, and structural reforms. Structural reforms, the third arrow, have been the most difficult to implement, among them increasing the economic opportunities for women in Japan. As Abe noted during his speech “the female labor force in Japan is the most under-utilized resource. Japan must become a place where women shine.” Abe later stated a firm goal to have women in 30 percent of “leading positions” in Japan by 2020, however the method by which this goal will be realized is anything but clear.

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Street Politics Aren’t Enough: Careful Economic Reform Will Foster Democracy and Stability in Jordan

Jordanians protest over food prices in 2011. Source: The Guardian.

Jordanians protest over food prices in 2011.
Source: The Guardian.

This blog is the second in a three-part series addressing recent findings of the Arab Barometer, whose objectives include the production of scientifically reliable data on the political attitudes of ordinary citizens. Read the first part, about Iraq, here.

By James Stricker

In Jordan, economic factors have played an important role in political stability since 2011. Jordanians as a whole consider economic rights to be a core component of democracy.  This is demonstrated by the fact that most public protests began as a response to economic grievances. The trend corresponds strongly with the Arab Barometer’s recent MENA opinion poll results: throughout the region, Arabs are at least as concerned with securing their economic rights as they are with securing political rights.

As the Arab Spring gained momentum in Egypt, Tunisia, Libya and Yemen, a number of protests sprang up throughout Jordan in 2011. However, the most prevalent slogans were not against the regime itself, nor were they about securing more political rights.  Instead, Jordanians who took to the streets voiced their frustrations with price inflation and corruption.

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Who Will Reap the Benefits of China’s Growing Presence in Africa?

By Brian Jackson

Recently, there have been many articles in the media outlining both the positive and negative implications of China’s growing investment in Africa. On one hand, many accuse China of promoting another period of colonization and exploitation on the continent and preventing Africa from becoming economically independent. Yet on the other hand, some praise the investments for rejuvenating African industries and infrastructure.

With such conflicting interpretations, many are left wondering how to view all of this. Is Chinese involvement in Africa a good thing, or bad thing? Will it lead to more economic and democratic opportunities for the continent and people, or the opposite?

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Helping Syrian Refugees Rebuild Their Lives With More Than Just Aid

800px-Syrian_refugee_camp_on_theTurkish_border

By James Stricker

Turkey has been one of the most welcoming countries for Syrian refugees since the civil war began there in 2011.  In the early days of the conflict, Turkey declared an “open border policy,” allowing Syrians to enter the country largely uninhibited. Now, in the second half of 2014, the refugee crisis shows no sign of being resolved – while the strife in Syria has only intensified. More than 1.5 million Syrian refugees now live in Turkey, according to the UNHCR, including more than 135,000 who arrived within the span of five days as ISIS stepped up its assaults in Syria.

This sudden influx will almost certainly add to the challenges that many Syrian refugees are facing, but civil society organizations, like CIPE’s partner the Syrian Economic Forum (SEF), are rising to the occasion. SEF is an economic think-tank with an office in Gaziantep, Turkey, that monitors and analyzes economic developments in Syria and informs the debates concerning Syria’s future from a democratic, free-market oriented, and pluralistic perspective.

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A New, Entrepreneurial Growth Model for South Korea

Korea's rapid economic ascent over the past few decades was powered by huge conglomerates like Samsung.

Korea’s rapid economic ascent over the past few decades was powered by huge conglomerates like Samsung. Now the country is aiming to encourage more startups and entrepreneurs.

By Tyler Makepeace

The Republic of Korea is one of the greatest economic development success stories in history — going from one of poorest countries in the world and a major aid recipient to a high-income country and a major aid donor in just a single generation. Both the head of the World Bank and the United Nations claim Korea as their birthplace.

The “Miracle on the Han River” which led to Korea’s stunning economic growth was based on an export-oriented industrialization model, similar to that of Japan, Taiwan, and later China. However, this model of fast growth has now run its course, and for Korea to continue onto the next stage of economic development it will require a different model for economic growth based on an innovative society.

In response to this need, President Park Geun-hye announced in her 2013 inaugural speech the beginning of the “Second Miracle on the Han River” through a new policy called the Creative Economy. This initiative seeks to create a supportive ecosystem for entrepreneurs and SMEs, especially in the tech sector, in order to boost job creation and pursue greater economic democratization within the country.

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Strengthening Entrepreneurial Skills among Women in Nicaragua through Mentorships

ren-nicaragua

This post was written by REN Nicaragua. 

Watch a women’s entrepreneurship Google Hangout featuring REN founder Lucy Valenti.

UNDP research shows that in Nicaragua, young people face an unemployment rate twice as high as the adult population. Young women also face much higher rates of unemployment (46% unemployed female vs 16.8% unemployed male). Moreover, the leading cause for unemployment in the country is a lack of work experience.

Recognizing these difficult challenges faced by women in Nicaragua, the Red de Empresarias de Nicaragua (REN) works to overcome them. With a vision of increasing women’s economic and social development, REN is a professional network representing over 200 women-owned businesses which focuses on developing women’s entrepreneurial capacity and skills.

In July 2014, REN launched the CIPE supported, nine-month program “Strengthening Entrepreneurial Skills among Women in Nicaragua.”  Following a successful five-month pilot phase, this is the second program of its kind led by REN.

The program’s main objective is to encourage entrepreneurship among young women and strengthen the capacity of women micro-entrepreneurs through mentorships. The two groups of beneficiaries for this initiative are female university students and emerging women micro-entrepreneurs, and they are all paired with successful businesswomen. REN matched ten teams (each mentorship team consists of a micro-entrepreneur, mentor, and an intern) for this project.

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