Creating a More Peaceful World through Capitalism

One of my colleagues, Jeff Cherry who is managing director of The Concinnity Group, a financial management firm inspired by the firms of endearment idea believes strongly that the stakeholder relationship management (SRM) business model followed by FoEs could change dramatically change matters in developing nations. The current issue of Fortune carries an article that supports Jeff's notion.

The article, “Why CEOs Love Rwanda,”  is about emerging business opportunities in Rwanda and how FoEs Costco, Google and Starbucks are helping the Rwanda government become a free market economy.

While many see military means as necessary to quell insurrection around the world, others believe that capitalism will work better and produce more durable solutions. The story in Rwanda strongly supports that idea. Yes, in the absence of hope, insurrectionists can take hold of a society as seems to be happening in Iraq. However, the whole idea of capitalism is about giving hope a realistic foundation and using it to fuel ambitions for a better life.

A Fortune article that ran last November, “Chasing the Base of the Pyramid” carries another story about business enterprise stepping out  to help needy nations more effectively than governmental intercession often  seems to be in these days. The article is about how household products giant SC Johnson & Sons – quite probably an FoE, though we’ve not yet determined that it – is helping to build stronger economies in some of the poorest countries on earth. It is not just about altruism, though. These are whole new markets.

Says the article:

SC Johnson's experiment will test a theory about doing business at what's called the "base of the pyramid". That's where the 4 billion poorest people live. At the top of the pyramid are the 600 million people earning more than $15,000 a year, where most big companies do business. In the middle are the 1.4 billion earning $1,500 to $15,000 a year.

In this era, which we call the Age of Transcendence in Firms of Endearment, companies everywhere are transcending business’s traditionally predominant self-focus with its “what’s in it for us kind of thinking.” More and more companies are addressing some of the thorniest social problems on earth starting with chronic abject poverty. Keeping shareholders happy, these companies have discovered that even in the poorest corners of the planet there is money to be made. A plus for these companies is enhanced reputations back home from helping the most needy of nations to improve the quality of their own citizens’ lives.

DBW

Comments

[ugg outlet]

Yes,There is absolutely no worse trait in a leader than the lack of ability to make a decision.

[red bottoms]

Liked you on Facebook, too. =)

[radii supra shoes]

Beautiful!!! You truly have an eye for colour.

[Uggs Outlet]

I think like with anything, perception tends to be reality
Given more time and understanding most people come around.
Nearshoring works, picking a country is like any other choice , do your homework, look at costs, determine your risk level (not crime but Gov't stability,skill level, educational system etc) and make a choice!
Most people only dip in a toe with a small project and soon learn if they made the right choice

[cheap uggs]

Your Blog is very good, I like it! Thank you for your sharing

[cheap uggs]

hey! im new. & i suppose this is the time and place where i label myself and tell you what society thinks i am, but i think ill let time be the test and you all can figure it out on your own.

[uggs for cheap]

This is a very good article, I think there will be many people like it, of course, I was one of the people. I think this article increase my knowledge. Thank you!

[radii supras]

Good stuff as per usual, thanks. I do hope this kind of thing gets more exposure.

[ugg classic]

I hope you have a nice day! Very good article, well written and very thought out. I am looking forward to reading more of your posts in the future.

[mens lacoste shoes]

To confirm your statement, China now holds one of the largest income gaps in the world with urban households earn roughly 3.3 times more than rural household (2006 statistic).

[logo work gloves]

Glad to hear about people doing unity.

[bangbros]

To confirm your statement, China now holds one of the largest income gaps in the world with urban households earn roughly 3.3 times more than rural household (2006 statistic).
Nice Hairy Bush

[Atare E. Agbamu]

David --

FoEs of the the world unite! Love and grow rich. A new capitalist manifesto is emerging.