conscious capitalism munir haddad 022110

Conscious Capitalism & the “New Normal”February 21, 2010

HTTP://EN.WIKIPEDIA.ORG/WIKI/FILE:THE_EARTH_SEEN_FROM_APOLLO_17.JPG

1Tuesday, February 23, 2010

FINANCIAL, ENVIRONMENTAL, SOCIALA STATE OF MIND OR THINGS?

What is Conscious Capitalism?

2Tuesday, February 23, 2010

AS PARAPHRASED BY MY FRIEND THE (FORMER) MERRILL LYNCH COMMERCIAL MORTGAGE BROKER

Why can’t we be the company that saves the dolphin?

Wouldn’t you pay a penny to save a fish that thinks?

3Tuesday, February 23, 2010

NOT A NEW CONCEPTAS PARAPHRASED BY MY FRIEND THE (FORMER) MERRILL LYNCH COMMERCIAL MORTGAGE BROKER

3Tuesday, February 23, 2010

20TH CENTURY CAPITALISMBUILT ON 18TH & 19TH CENTURY IDEALS

Shareholder Equity

MAXIMIZE PROFITS

Investors

4Tuesday, February 23, 2010

CONSCIOUS CAPITALISMBALANCES STAKEHOLDERS TO BUILD GREATER LONG TERM SHAREHOLDER EQUITY

Stakeholder Relationship Management

CORE PURPOSE

Customers Employees Community Environment VendorsInvestors

5Tuesday, February 23, 2010

FINANCIAL, ENVIRONMENTAL, SOCIALA STATE OF MIND OR THINGS?

What’s the new normal?

6Tuesday, February 23, 2010

GLOBAL SHIFT

7Tuesday, February 23, 2010

WORLD STOCK MARKET CAPITALIZATION TRILLIONS OF USDJANUARY 1996 TO MAY 2009

8Tuesday, February 23, 2010

U.S. FORECLOSURES

9Tuesday, February 23, 2010

SHORT ON CONSCIOUS CAPITALTHE NEW NORMAL

10Tuesday, February 23, 2010

THE “NEW NORMAL”?UNEMPLOYMENT +10%

11Tuesday, February 23, 2010

THE “NEW NORMAL”?UNEMPLOYMENT +10%

11Tuesday, February 23, 2010

LOWER TAX BASEVICIOUS CYCLE

HTTP://KYLESISK.TYPEPAD.COM/SISKER/2009/09/CALIFORNIA-IS-ON-THE-MEND.HTML

12Tuesday, February 23, 2010

BORROWING AGAINST TOMORROWRATE CANNOT BE SUSTAINED

FISCAL RESPONSIBILITY

The Heritage Foundation

Mountain of debt imperils tomorrow’s taxpayers

Source: Heritage Foundation compilations of data from U.S. Treasury, Institute for the Measurement of Worth, Office of Management and Budget, and Congressional Budget Office.

Congress is poised to raise the debt limit, after maxing-out the national credit card in another year of runaway spending. Unless lawmakers get serious about spending cuts—especially exploding costs for Social Security, Medicare and Medicaid—future taxpayers will shoulder history-making debt.

For more on cutting the debt, go to heritage.org and click on Entitlements.

Publicly Held Debt as a Percentage of Gross Domestic Product

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2035

50%

100%

150%

World War I

The Great Depression

World War II

War on Terrorism

108.6%

188.8%

13Tuesday, February 23, 2010

PERSONAL SAVINGS % OF INCOME = 0.56%PERSONAL CONSUMPTION GROWING

14Tuesday, February 23, 2010

THE END OF POVERTY...?NUMBER OF PEOPLE LIVING ON LESS THAN A DOLLAR A DAY DECREASING

15Tuesday, February 23, 2010

Socialism vs. Capitalism

Stéphane Courtois, “The Black Book of Communism” 1997

COMMUNISM KILLED 100 MILLION PEOPLE

CAPITALISM HAS SUCCEEDED

LAST 100 YEARS

BUT ISQUESTIONED

16Tuesday, February 23, 2010

CAPITALISMBATTLING FOR MARKET SHARE

DARWINIAN NATURAL SELECTION

KILL ‘EM

CRUSH THE COMPETITION

DESTROY THEM

WE’RE IN A WAR

IT’S SURVIVAL OF THE FITTEST

INDUSTRIAL METAPHORS

GRINDING OUT PROFITS

17Tuesday, February 23, 2010

CDO - COLLATERALIZED DEBT OBLIGATIONSIVA (STATED INCOME, VERIFIED ASSETS), NIVA (NO INCOME, VERIFIED ASSETS) & NINA...

18Tuesday, February 23, 2010

CORPORATE DISTRUSThttp://www.thecorporation.com

19Tuesday, February 23, 2010

CORPORATE DISTRUSTRESULT FROM OUTDATED THEORIES OF CAPITALISM

Why?

20Tuesday, February 23, 2010

The paradox of profits

20Tuesday, February 23, 2010

FOOD EQUIVALENT OF THE CDOTHANKS TO UMAIR HAQUE

21Tuesday, February 23, 2010

THE RETAIL EQUIVALENT OF CDOTHANKS TO UMAIR HAQUE

22Tuesday, February 23, 2010

HOUSE FARM...

23Tuesday, February 23, 2010

RESOURCES ARE FINITEPLASTIC BOTTLES: 3 LEVELS OF DETAIL

24Tuesday, February 23, 2010

RESOURCES ARE FINITERECYCLING MEETS SOME NEEDS

25Tuesday, February 23, 2010

RESOURCES ARE FINITENEW SCIENTIST - HTTP://FLOWINGDATA.COM/2009/04/24/HOW-LONG-WILL-THE-WORLDS-NATURAL-RESOURCES-LAST/

26Tuesday, February 23, 2010

PHYSICAL LIMITATIONS - FREDRICK SODDY, 1926TIME (DIGESTION, GESTATION), RESOURCES (LAND, FOOD, WATER), LITTER SIZE

WEALTH, VIRTUAL WEALTH & DEBT

27Tuesday, February 23, 2010

DATA PROVIDES AWARENESSTHE VALUE OF WATER AS A RESOURCE IS JUST BEGINNING TO BE UNDERSTOOD

28Tuesday, February 23, 2010

GAIA PRINCIPLE

http://en.wikipedia.org/wiki/Conservation_of_masshttp://en.wikipedia.org/wiki/Gaia_philosophy - James Lovelockhttp://en.wikipedia.org/wiki/File:Einstein1921_by_F_Schmutzer_4.jpg

COMPLEX INTERDEPENDENT SYSTEM IN HOMEOSTASIS

29Tuesday, February 23, 2010

HERMAN DALY

http://www.theoildrum.com/node/3941

PROFESSOR, SCHOOL OF PUBLIC POLICY, UNIVERSITY OF MARYLANDFORMER SENIOR ECONOMIST, WORLD BANK

The larger system is the biosphere and the subsystem is the economy. The economy is geared for growth...whereas the parent system doesn’t grow. It remains the same size. So as the economy grows...it encroaches upon the biosphere and this is the fundamental cost.

“

”30Tuesday, February 23, 2010

RAY KURZWEILSINGULARITY, LAW OF ACCELERATING RETURNS

31Tuesday, February 23, 2010

THE COUNTDOWN TO THE SINGULARITYRAY KURZWEIL

32Tuesday, February 23, 2010

MOORE’S LAWAS INTERPRETED BY RAY KURZWEIL’S LAW OF ACCELERATION

33Tuesday, February 23, 2010

PROCESSING POWER“WE SHAPE OUR TOOLS, THEN OUR TOOLS SHAPE US.” UNDERSTANDING MEDIA, 1964

HTTP://SINGULARITY.COM/IMAGES/CHARTS/SUPERCOMPUTERS.JPG

34Tuesday, February 23, 2010

PROCESSING POWER“WE SHAPE OUR TOOLS, THEN OUR TOOLS SHAPE US.” UNDERSTANDING MEDIA, 1964

35Tuesday, February 23, 2010

MARSHALL MCLUHAN“WE SHAPE OUR TOOLS, THEN OUR TOOLS SHAPE US.” UNDERSTANDING MEDIA, 1964

36Tuesday, February 23, 2010

SOCIAL NETWORK CONNECTIONS INCREASINGNETWORK THEORY

37Tuesday, February 23, 2010

LINEAR VS. INTERACTIVE

38Tuesday, February 23, 2010

FROM THE OLD WORLD TO THE NEW WORLDDATA SOURCES: MEDIAPOST, WIKIPEDIA

Studies suggest that a company needs to have

seven different 'contacts' with a customer (on average)

before they make a purchase.

39Tuesday, February 23, 2010

CRITICAL POINT IN PHASE TRANSITIONRAPIDLY MELTING ARGON ICE

HTTP://EN.WIKIPEDIA.ORG/WIKI/FILE:ARGON_ICE_1.JPG

40Tuesday, February 23, 2010

SEA CHANGETECHNOLOGY, BUSINESS, ENVIRONMENT, PEOPLE

41Tuesday, February 23, 2010

INTERACTIVE

How many of you are entrepreneurs?

42Tuesday, February 23, 2010

INTERACTIVEWILLING PARTICIPANTS?

What is the purpose of your business?

43Tuesday, February 23, 2010

INTERACTIVEWILLING PARTICIPANTS?

To maximize profits?

43Tuesday, February 23, 2010

WHAT IS THE PURPOSE OF A TEACHER?

To teach.

44Tuesday, February 23, 2010

WHAT IS THE PURPOSE OF A DOCTOR?

To heal.

45Tuesday, February 23, 2010

WHAT IS THE PURPOSE OF A LAWYER?BUELLER...?

To uphold justice.

46Tuesday, February 23, 2010

20TH CENTURY CAPITALISMBUILT ON 18TH & 19TH CENTURY IDEALS

Shareholder Equity

MAXIMIZE PROFITS

Investors

47Tuesday, February 23, 2010

CONSCIOUS CAPITALISMBALANCES STAKEHOLDERS TO BUILD GREATER LONG TERM SHAREHOLDER EQUITY

Stakeholder Relationship Management

CORE PURPOSE

Customers Employees Community Environment VendorsInvestors

48Tuesday, February 23, 2010

GROWING POWER - WILL ALLENNOURISHMENT TO LOW INCOME COMMUNITIES

49Tuesday, February 23, 2010

TECHNICOLOR“REVOLUTIONIZE THE MOTION PICTURE INDUSTRY” - HERBERT KALMUS, 1915

51Tuesday, February 23, 2010

PROMOTE SAVINGS

52Tuesday, February 23, 2010

APPLE - “THE BEAUTY OF TECHNOLOGY”CORE PURPOSE DRIVES INNOVATION

53Tuesday, February 23, 2010

TRANSFORMATION

54Tuesday, February 23, 2010

LUIS VON AHNMAKING YOUR TIME VALUABLE

55Tuesday, February 23, 2010

INTERACTIVE

How many hours have you played solitaire?

56Tuesday, February 23, 2010

INTERACTIVE

9 Billion hours in 2003

20 Million hours to build Panama Canal

56Tuesday, February 23, 2010

57Tuesday, February 23, 2010

GAMES WITH A PURPOSE7 MILLION MAN HOURS TO BUILD THE EMPIRE STATE BUILDING

58Tuesday, February 23, 2010

RECAPTCHATRANSLATING SCANNED BOOKS AND PAPERS

59Tuesday, February 23, 2010

CORE PURPOSE GUIDES ALL STAKEHOLDERS“GOOD TO GREAT”

60Tuesday, February 23, 2010

JIM COLLINSON ALTRUISM IN CORE PURPOSE

There is no reason you can’t be one of the most successful organizations in the world and one of the most altruistic.

There is no inconsistency between these.

61Tuesday, February 23, 2010

INTERACTIVE

How many of you have customers?

62Tuesday, February 23, 2010

ZAPPOS.COM / TONY HSIEHPOWERED BY SERVICE

64Tuesday, February 23, 2010

UNITED BREAKS GUITARS - 7,819,199 VIEWS+ THE SECOND VIDEO & THE ANCILLARY DISTRIBUTION &...

65Tuesday, February 23, 2010

PARTICIPATORY PRODUCT DEVELOPMENTYOUR CUSTOMER’S HELP DEFINE WHO YOU ARE

66Tuesday, February 23, 2010

CONTROLLED -> OPEN SOURCETHE TIGHTER YOU TRY TO HOLD ONTO SOMETHING THE MORE LIKELY IT IS TO GO AWAY

67Tuesday, February 23, 2010

CONTROLLED -> OPEN SOURCETHE TIGHTER YOU TRY TO HOLD ONTO SOMETHING THE MORE LIKELY IT IS TO GO AWAY

HTTP://WWW.FLICKR.COM/PHOTOS/VOYAG/3506956372/

67Tuesday, February 23, 2010

USER GENERATED FASHIONCHANGE A PARADIGM

68Tuesday, February 23, 2010

GIVE YOUR CUSTOMERS TOOLSTHEY WILL CREATE YOUR NEXT GREAT PRODUCT

69Tuesday, February 23, 2010

MODERN DAY BAZAARDEMOCRATIZED FINE ART

70Tuesday, February 23, 2010

INTERACTIVE

How many of you have employees?

71Tuesday, February 23, 2010

DEMOCRATIZE AIR TRAVEL“YOU ARE NOW FREE TO MOVE ABOUT THE COUNTRY”

72Tuesday, February 23, 2010

CONSISTENTLY HIGH EMPLOYEE SATISFACTION#80 ON THE TOP 100

73Tuesday, February 23, 2010

10% OF TIME FOR OWN PROJECTS#4 ON THE FORTUNE TOP 100 COMPANIES TO WORK FOR

74Tuesday, February 23, 2010

Happy employees = Happy customers

75Tuesday, February 23, 2010

Happy employees + Happy customers =

Shareholder Equity

75Tuesday, February 23, 2010

INTERACTIVEEVEN INVESTORS HAVE INVESTORS...

How many of you have investors?

76Tuesday, February 23, 2010

OUTPERFORMS THE S&P 500 BY 11%COMPANIES THAT INVEST IN EMPLOYEES DELIVER RETURNS

www.business.und.edu/goenner/research/.../100%20best%20j-econ.pdf

77Tuesday, February 23, 2010

CONSCIOUS CAPITALISM = LONG TERM EQUITYSource: http://eresearch.fidelity.com/eresearch/goto/evaluate/snapshot.jhtml?symbols=WFMI&rsrch=gqb

WHOLE FOODS SHARES JUMPED NEARLY 13% AFTER THE GROCERY CHAIN LATE TUESDAY REPORTED FIRST-QUARTER RESULTS IN WHICH PROFIT CLIMBED 79%

78Tuesday, February 23, 2010

INTERACTIVE

How many of you live here?

79Tuesday, February 23, 2010

BETTER PLACEBUSINESS BUILT WITH A PURPOSE

80Tuesday, February 23, 2010

STAKEHOLDER EQUITY IS BALANCEDGROWER, RETAILER, CONSUMER

81Tuesday, February 23, 2010

GRAMEEN BANKMUHAMMAD YUNUS AND GRAMEEN BANK WIN NOBEL PEACE PRIZE 2006

82Tuesday, February 23, 2010

PEPSI: REFRESH EVERYTHINGMOVED $20 MILLION AWAY FROM THE SUPERBOWL, REDIRECTED TO THIS EFFORT

83Tuesday, February 23, 2010

EMBRACING CHANGE, NOT FIGHTING ITA SYSTEMATIC CHANGE IN DOING BUSINESS

84Tuesday, February 23, 2010

SUSTAINABILITY PROMISEIF WALMART IS PAYING ATTENTION, EVERYONE’S PAYING ATTENTION

85Tuesday, February 23, 2010

BIODYNAMIQUETERROIR

86Tuesday, February 23, 2010

INTERACTIVEA NEW MODEL OF JUDGING SUCCESS

Are we happy now?

87Tuesday, February 23, 2010

MONEY REACHES A PEAK OF UTILITYPURE PROFITS ALONE DO NOT CREATE VALUE

88Tuesday, February 23, 2010

BHUTAN: GROSS NATIONAL HAPPINESSMEASURING EQUITY DIFFERENTLY

89Tuesday, February 23, 2010

BHUTAN: GROSS NATIONAL HAPPINESSMEASURING EQUITY DIFFERENTLY

89Tuesday, February 23, 2010

Positive Work Environment

Healthy Community

Capital to InvestProfit

Growth

SalesGrowth

Innovation & Customer Service

Motivated Team Members

Community & Environmental Responsibility

Increased Shareholder

Value

Satisfying & Delighting Customers

Team Member Happiness

NEW BUSINESS PARADIGM

CORE PURPOSE

RIFFS ON JIM COLLINS->JAMES HESKETT->JOHN MACKEY->MUNIR HADDAD

90Tuesday, February 23, 2010

Community & Environmental Responsibility

Increased Shareholder

Value

Satisfying & Delighting Customers

Team Member Happiness

NEW BUSINESS PARADIGM

CORE PURPOSE

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RIFFS ON JIM COLLINS->JAMES HESKETT->JOHN MACKEY->MUNIR HADDAD

90Tuesday, February 23, 2010

91Tuesday, February 23, 2010

CONSCIOUS CAPITALISMGREEN SHOOTS

92Tuesday, February 23, 2010

HAVE AN IMPACTKEEP IN TOUCH

Munir Haddadhttp://twitter.com/Scromp

93Tuesday, February 23, 2010