After reading an interview with Paul Polman, the CEO of Unilever, in the FT I want to congratulate him for reopening an important debate, and I hope that other CEO's will follow his lead and start talking about who the most important stakeholder in a company should be. Paul's argument was that making share value the key objective of a business is great for in the short term but is not so good for the long term planning or prospects of a company. By focusing on the customer and consumer and ensuring the company acts as a good corporate citizen long term profits are ensured.
CBC's corporate social responsibility makes a similar point, while share holder value is important there are other considerations. Customers must be considered the most important stake holder, no company can continue without the continued support of its customers.
CBC's approach is based on the fact that Customers and Shareholders play the most important role in shaping the values and strategy of the Company.The other stakeholders being the employees and suppliers.
Good corporate citizenship based on customer satisfaction includes many benefits such as brand reputation, ability to enter new markets and defend existing ones and retain good employees. As Polman has demonstrated with Unilever companies that prioritise customers and act as responsible members of the communities they operate in "share value" success will follow.
Tuesday, 20 April 2010
Wednesday, 7 April 2010
India's second tier cities
I was in India earlier this month, as well as visiting the major business cities I spent time in some of the ‘second tier cities‘, Ahmadabad, Chennai and Kochi. What I noticed most of all was how well the infrastructure in these cities is developing to handle the increase in business there.
In Ahmadabad in particular, a city once renowned for its cost saving, the business district’s skyline is becoming more and more impressive. Business in these cities are following in the footsteps of the bigger cities and becoming more like their western counterparts, adopting western style business structures and marketing strategies. Where business were once housed in old building to avoid costs, they are becoming more and more willing to undertake the often extravagant costs of moving to high end, high tech office spaces with the view it will help get the next order and allow them to compete with rivals. This change in attitude should help make India’s second cities more competitive and drive forward their growth.
In Ahmadabad in particular, a city once renowned for its cost saving, the business district’s skyline is becoming more and more impressive. Business in these cities are following in the footsteps of the bigger cities and becoming more like their western counterparts, adopting western style business structures and marketing strategies. Where business were once housed in old building to avoid costs, they are becoming more and more willing to undertake the often extravagant costs of moving to high end, high tech office spaces with the view it will help get the next order and allow them to compete with rivals. This change in attitude should help make India’s second cities more competitive and drive forward their growth.
Friday, 19 March 2010
Prime Minister Manning and CBF
It was a pleasure to catch up with Prime Minister Manning of Trinidad and Tobago last week while he was in London for Commonwealth Day. We discussed CHOGM and CBF and its impact on Trinidad and Tobago, the Prime Minster made it clear that he believes that the Business Forum is a vital part of the whole CHOGM experience. For any country that hosts CHOGM, he said, the key is maximizing the private sectors involvement.
Prime Minster Manning spoke of how by leverraging the Business Forum he was able to broaden the horizons of Trinidad and Tobago’s SME sector. By interacting with the global business leaders who attended the forum Trinidad’s small businessmen were able to develop new global linkages and partnerships. The Forum was also important in bringing new investment and investors to the Island by increasing the profile of the Country to an international audience.
The Prime Minster described how by interacting with the private sector and politicians who attended CHOGM he was able to get a better understanding of how other countries are managing to balance challenges such as climate change with the need to maintain high growth rates.
Prime Minister Manning was particularly proud of how successful the Forum was in promoting new linkages between the Commonwealth and the Americas, and suggested that Trinidad should be the host of a Global Business Forum early next year to keep up this momentum. I was delighted to hear this from the Prime Minister; we place a high value on his leadership and recognise the key role he played in making the Business Forum such a success.
Prime Minster Manning spoke of how by leverraging the Business Forum he was able to broaden the horizons of Trinidad and Tobago’s SME sector. By interacting with the global business leaders who attended the forum Trinidad’s small businessmen were able to develop new global linkages and partnerships. The Forum was also important in bringing new investment and investors to the Island by increasing the profile of the Country to an international audience.
The Prime Minster described how by interacting with the private sector and politicians who attended CHOGM he was able to get a better understanding of how other countries are managing to balance challenges such as climate change with the need to maintain high growth rates.
Prime Minister Manning was particularly proud of how successful the Forum was in promoting new linkages between the Commonwealth and the Americas, and suggested that Trinidad should be the host of a Global Business Forum early next year to keep up this momentum. I was delighted to hear this from the Prime Minister; we place a high value on his leadership and recognise the key role he played in making the Business Forum such a success.
Wednesday, 3 March 2010
Encouraging signs in Malaysia
Last week I was in Kuala Lumpur, Malaysia to continue talks with Prime Minister, Najib Tun Razak, started at CBF in Trinidad. I had a very good meeting especially coming at a time when the economy is showing encouraging signs of growth estimated to be 5% for the coming year. The main theme of the discussion was on the Prime Ministers views on the return to global growth particularly through emerging markets like Malaysia. The Prime Minister told me that Malaysian Companies are becoming more and more active in other Asian Countries, particularly China, India and Indonesia.
The British High Commissioner to Malaysia, Boyd McCleary, confirmed the importance of the Malaysia to the developed world in the wake of the Financial Crisis, more and more British companies have a growing presence in Malaysia.
I met with a number of prominent Malaysian business leaders during the trip; they all expressed similar optimism and described growth plans for the coming year, from plantation projects in Indonesia, rural Malaysia and Nigeria to exporting the Malaysian experience in world class Infrastructure development to other markets, such as India. Malaysian companies are expecting real growth this year.
The British High Commissioner to Malaysia, Boyd McCleary, confirmed the importance of the Malaysia to the developed world in the wake of the Financial Crisis, more and more British companies have a growing presence in Malaysia.
I met with a number of prominent Malaysian business leaders during the trip; they all expressed similar optimism and described growth plans for the coming year, from plantation projects in Indonesia, rural Malaysia and Nigeria to exporting the Malaysian experience in world class Infrastructure development to other markets, such as India. Malaysian companies are expecting real growth this year.
Tuesday, 23 February 2010
Africa Investment Forum
The Africa Investment Forum, which we held in Ghana for the first time, was the largest Investment Forum of its type CBC, has ever held. Over 700 delegates gathered from more than 30 countries for the Forum. One of the most impressive features of this year’s Forum was the wide scale involvement of Investment Promotion Agencies from across the Africa; over 220 projects were up for discussion.
3 Heads of State, 15 Ministers and over 50 Business leaders took part in the sessions; there were a couple of key themes I noticed coming out though out the Forum.
1) Every session, whatever the title on the programme eventually made mention of greater regional integration and the importance of enhancing Intra-Africa trade.
2) Secondly, one of the key impediments to growth and development highlighted at the forum was the need to do more to reduce the infrastructure gap in Africa; this was also flavoured by the talk of Greater regional cooperation – reductions in infrastructure barriers can happen faster if countries work for a more unified response.
3) The Importance of Agriculture for the coming decade, increasing rural incomes is essential to driving sustainable growth and development. The ever growing Global demand for food products is a perfect opportunity for Africa to taped its potential in this area.
The President of Togo, HE Faure Gnassingbe, requested that CBC take part in the promotion of Togo to International Investors. The request was made after the President addressed the opening ceremony and hosted a private Togo investor roundtable during the Forum.
The Africa Investment Forum 2010 was a great success and we look forward to carrying this though to the next AIF in Uganda, February 2010.
3 Heads of State, 15 Ministers and over 50 Business leaders took part in the sessions; there were a couple of key themes I noticed coming out though out the Forum.
1) Every session, whatever the title on the programme eventually made mention of greater regional integration and the importance of enhancing Intra-Africa trade.
2) Secondly, one of the key impediments to growth and development highlighted at the forum was the need to do more to reduce the infrastructure gap in Africa; this was also flavoured by the talk of Greater regional cooperation – reductions in infrastructure barriers can happen faster if countries work for a more unified response.
3) The Importance of Agriculture for the coming decade, increasing rural incomes is essential to driving sustainable growth and development. The ever growing Global demand for food products is a perfect opportunity for Africa to taped its potential in this area.
The President of Togo, HE Faure Gnassingbe, requested that CBC take part in the promotion of Togo to International Investors. The request was made after the President addressed the opening ceremony and hosted a private Togo investor roundtable during the Forum.
The Africa Investment Forum 2010 was a great success and we look forward to carrying this though to the next AIF in Uganda, February 2010.
Monday, 1 February 2010
Talks in Uganda
Last week I was in Uganda to follow up on talks I had with President Museveni, while he was at the Commonwealth Business Forum in Trinidad and Tobago last November. We discussed how CBC could increase it interaction with Uganda, over the coming year, to develop an investment promotion programme, particularly focused on the areas of agriculture and skills development.
At meetings with the Minister of Finance, Hon. Syda Bbumba, I discussed the practical functions of the programme and the implementation details, particularly how we would help generate the required investment to support the growth of both small and commercial farms. We also discussed a similar plan for skills promotion in the country.
Before leaving the country on Thursday, I met with the Uganda Investment Authority, where it was agreed that CBC would bring its prestigious Africa Investment Forum to Uganda in February 2011 and that work would continue on the development of a large scale ICT park outside Kampala.
At meetings with the Minister of Finance, Hon. Syda Bbumba, I discussed the practical functions of the programme and the implementation details, particularly how we would help generate the required investment to support the growth of both small and commercial farms. We also discussed a similar plan for skills promotion in the country.
Before leaving the country on Thursday, I met with the Uganda Investment Authority, where it was agreed that CBC would bring its prestigious Africa Investment Forum to Uganda in February 2011 and that work would continue on the development of a large scale ICT park outside Kampala.
Monday, 25 January 2010
India - economic optimism for 2010
After returning from India last week, one of the main differences in the conversations going on between business here in the UK and in India is the way growth is discussed. In the UK the talk is of recovery, in India the talk is all about how much the economy will grow this year. Discussion in India is optimistic, rather than the UKs current trend of Pessimism. The Federal Government of India is Predicting a return to growth of around 7% this year. The Chairman of ICICI bank is even more optimistic predicting India’s growth rate to be at 10% by 2011.
Much of this optimism comes from the changes we see in India, firstly the county never entered recession as the West did, there was only a slight drop in Growth. Secondly, the improvements to the country’s infrastructure are dramatic; the road network for example is almost unrecognisable from only 15 years ago. Entrepreneurs across the county are all looking for new opportunities, both national and international and the demand for luxury consumer goods in India is increasing year on year.
Ironically there is talk of Bonuses in the Indian Media, but it’s not focused on Bankers, rather IT companies. The rate of Growth in the IT sector has been much higher than expected over the last year, Tata Consultancy for example plan a 150% bonus pay out for 2010.
They are not the only company in the sector revealing higher than expected profits, nor is the IT Sector alone in displaying stronger than predicted results, the economic prospects for the coming year in India look great.
Much of this optimism comes from the changes we see in India, firstly the county never entered recession as the West did, there was only a slight drop in Growth. Secondly, the improvements to the country’s infrastructure are dramatic; the road network for example is almost unrecognisable from only 15 years ago. Entrepreneurs across the county are all looking for new opportunities, both national and international and the demand for luxury consumer goods in India is increasing year on year.
Ironically there is talk of Bonuses in the Indian Media, but it’s not focused on Bankers, rather IT companies. The rate of Growth in the IT sector has been much higher than expected over the last year, Tata Consultancy for example plan a 150% bonus pay out for 2010.
They are not the only company in the sector revealing higher than expected profits, nor is the IT Sector alone in displaying stronger than predicted results, the economic prospects for the coming year in India look great.
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