The five forces reshaping the global economy
In the sixth annual McKinsey Global Survey, over 1400 corporate executives from around the world identified the top five forces shaping their organizations’ strategies: (1) the shift in global economic activity from developed to developing countries; (2) the rise of the consumer in emerging markets; (3) increasingly global labor markets; (4) the impact of global digital networks in facilitating the flow of goods, information, and capital; and (5) rising government and stakeholder expectations about the role of business in contributing to the public good. The McKinsey Quarterly reports.
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media file is a repository of links to articles and research reports for business and non-profit executives, media professionals, marketers, and others interested in the emergence of social innovation as a driving force reshaping the process of creating value in global markets. You can search the media file database from this blog or directly on Delicious.
more media file links for May 17, 2010:
America’s green innovation problem
It’s received wisdom in many business circles--and the thesis of some bestselling pop business texts--that America can retain its strategic edge in global markets by focusing on innovation, even while manufacturing, customer service, and other core business activities get outsourced to other countries. But if trends in green innovation are any measure, this view will ultimately prove bankrupt--both for the companies that bet on it, and for American society as a whole. Globalization is rapidly overtaking the field of innovation, particularly in green technology, where the Chinese government is exploiting the powerful feedback loops that can be created when innovation, manufacturing, and marketing are advanced in tandem. Left unchallenged, governments pursuing this strategy could end up locking in strategic advantage in key markets--and locking America out. Bloomberg Businessweek reports.
Goldman Sachs and Drucker’s law of innovation
What’s the link between mortgage-backed securities and ATMs? Easy--both are financial market innovations. What’s the difference? One followed the route all successful innovations follow--delivering a product or process that fundamentally improves customers’ lives--while the other exploited innovation solely to the innovator’s advantage. The resulting catastrophe was predictable, writes Drucker Institute Executive Director Rick Wartzman for Bloomberg Businessweek. Peter Drucker himself predicted such a mess in a 1999 essay, where he compared compared derivates and other such financial innovations to the “systems” invented by professional gamblers to beat the house. They almost never work, Drucker observed; but the collateral damage they produce to markets and reputations can be enormous, as Goldman Sachs and others have found out.
Should all corporations adopt the “precautionary principle”?
“First do no harm”--the so-called “precautionary principle” has been a shared human value virtually since the dawn of civilization, and yet contemporary business practice seems to regularly defy it. Is it possible to fundamentally shift this dynamic--to inject the precautionary principle into the DNA of every contemporary corporation, so that episodes like the financial meltdown and the Gulf oil disaster become a thing of the past? On CSRwire, attorney Sanford Lewis explores the new risk-management strategies and innovations in corporate law that promise to make the precautionary principle a bedrock of corporate governance, rather than an afterthought.
If corporations are people, then shouldn’t they act like it?
The recent Supreme Court campaign finance ruling in the Citizens United case effectively conferred the same political free-speech rights on corporations that had previously existed only for individuals. So shouldn’t corporations be held to the same standard of personal responsibility that individuals live by? On the Harvard Business site, corporate sustainability advocate Andrew Winston argues that businesses owe society nothing less--or more--than to live by the Golden Rule: to do unto others as they would have done unto them. This approach is the only one that can effectively balance the environmental, sociological, and stakeholder concerns that are shaping the nature of business in the 21st century. Businesses should adopt this new model for the most selfish of all possible reasons--because it’s the only possible path to corporate sustainability in an era in which all stakeholders have effectively found their voice and are projecting it over the social web.
What do you call the world?
There is a famous story from Zen literature that goes like this:
Teacher A asks Teacher B: “Where do you come from?” (Sometimes a trick question.)
Teacher B replies: “From the south.” (Ah, a safe answer.)
A asks: “How is Zen practice in the South these days?”
B responds: “There lots of discussion.”
A states: “How can all the discussion compare to planting the fields and cooking rice?”
B asks: “What can you do about the world?”
A replies: “What do you call the world?”