Tomasz Kłosiński

The New Capitalist Manifesto: Building a Disruptively Better Business was published in 2011.

• With a foreword written by Gary Hamel.

• It lays out new cornerstones for establishing a successful company in the 21st century.

• The book goes on to provide examples of companies that are already making the shift.

• A reviewer in The Irish Times noted the book's central thesis as offering "a blueprint for a better form of capitalism."

„This book is more than a manifesto, it’s blueprint for building the sort of

twenty-first-century company that will be loved by its customers, envived by

its peers, and admired by all those who care about the future of our

planet.”

– Gary Hamel, an American management expert

Umair Haque is a London-based

consultant, author and economist.

•He is also a contributor (columnist and blogger) to Harvard Business Review, where he focuses on capitalism and creating prosperity in the 21st century.

•Haque is a graduate of McGill University where he studied neuroscience. He then earned an MBA at London Business School in 2003, where he did research with Gary Hamel, before beginning work on a PhD at University of Oxford in 2004.

•Haque is Director of Havas Media Lab "which has a charter to develop experiments with venture capitalists, start-ups and clients to find new ways of reach consumers in digital channels".

•Haque also founded Bubblegeneration, a business consulting firm advising across media and consumer industries, in 2006.

In March 2009, the Financial Times claimed that the ”credit crisis had destroyed faith in the free market ideology that has dominated Western thinking for a decade.”

It has serious image

problem.

Advantages

• rewards entrepreneurship and risk-taking;

•maximizes customer choice;

•uses markets to allocate scarce resources;

•minimizes regulatory burden on business.

•Best recipe for creating prosperity

Disadvantages

• ravish the environment

•exploit employes

•mislead customers

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„If an exchange between two parties is voluntary, it will not take place unless both believe they will benefit from it. Most economic fallacies derive from the neglect of this simple insight, from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another.” – Milton Friedman, Free to Choose (1980), Chapter 1 CO

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„Professor Hayek is also probably right in saying that in this country the intellectuals are more totalitarian-minded than the common people. But he does not see, or will not admit, that a return to 'free' competition means for the great mass of people a tyranny probably worse, because more irresponsible, than that of the State.” – George Orwell in a review of The Road to Serfdom (1944) by Friedrich Hayek

Executives doesn’t bow to the state.

Magisterial policy makers rein in the excess of the market

Ability of risk-besotted financiers to wreak havoc

Inability (or unwillingness) of executives to confront the changing expectations of their stakeholders about the role of business in society

Consumers and citizens are disgruntled with the implicit contract that governs the rights and obligations of society’s most powerful economic actors – corporations.

It has worked well for CEOs and shareholders, but not so well for everyone else.

Food’s industry’s long and ilicit love affair with trans fats.

Merck’s dissasembling about the risks of Vioxx.

Facebook’s apparently cavalier attitude toward consumer privacy.

BP’s shocking disregard for the environment.

Everyday realtiy of grossly exagerated product claims and buck-passing customer „service” agents.

If individuals around the world have lost faith in business, it’s because

business has, in many ways, betrayed that trust.

Capitalism has no challengers.

Like democracy, it’s the worst sort of system except

for all the others – and that’s exactly why we all have a stake in making

better.

If we fail to do so, the growing discontent with

business’s myopic view of its accountablities will

embolden all those who believe CEOs should answer

to those who are eager to replace the invsible hand of

the market with the iron hand of the state.

New Capitalism will

View people not just as

mere „consumers”;

Understand the

difference between

maximizing consumption

and maximizing

quality of life;

Not sacrifice the future for the present;

Regards to our planet as

sacred;

Narrows rather than

exploits inequalities.

Conscientious Accountrable

Sustainable In long-term habitable.

A matrix of deeply held beliefes about what business is actually for, about

who it serves and how it creates value.

Many of these beliefes are near-canonical – at least among those who’ve been to business school or have spend a few decades inside a Global 1000 company.

Nevertheless, we have reached a point in the history of business where even

fundamental tentets must be reexamined.

The paramount objective of a business is to make money

•(rahter than to enhance human well-being in economically efficient ways).

Corporate leaders can reasonably be held accountable only for the immidiate effects of their actions

•(and not for the second- and third-order consequences of their single-minded persuit of growth and profitability).

Executives should be evaluated and compensated on the basis of shot-term earnings performane

•(rather than long-term value creation).

A „brand” is something that is built with marketing dollars

• (rather tan something that is socially constructed by all of the firm’s consituents).

The firm’s „customers” are the people who buy its products

• (rahter than all of those who are influenced by its actions).

It’s legitimate for a company to

profit by exploiting customer

ignorance or constraining

customer choice.

Customers care only about how a product performs and how much it costs

•(and not about the values that were honored or defiled in the making and selling of that product).

Customers are end users

•(rather than full partners in the work of value-creation and value-sharing).

Customers who’ve been ignored, manipulated, locked in, duped, or lied to will nurse their anger in private

•(rather than join forces with fellow sufferers to publicly shame their persecutors).

A company can successfully use its market power and

political leverage to obstruct a disruptive technology or stymie

a new unconventional

competitor.

Employees are human resources first, and human beings second.

Business is about advantage, focus, differentation superiority, and excellence

•(and not about love, joy, honor, beauty and justice).

Individuals have inalienable, God-given rights, corporations do not.

•Society can demand of corporations what it wills .

•Of course, as consumers and citizens, we must be wise enough to realize that companies cannot remedy every social ill or deliver every social benefit.

•We must also acknowledge the fact that regulatory regime that would inssulate us from all of capitalism’s vices would also deny us its virtues.

•Executives need to understand that today they face the same hard choce that confronts every teenager – drive responsibily or lose your licence.

„I’d like to invite you to take a voyage with me. It’s a journey of immagination, where we’ll envisage producation, consumption and exchange through new eyes.

It’s an expedition on which we’ll explore the zephyrs and siroccos that are reshaping profitablity, performance, and advantage.

And it’s quest for insight into how commerce, fiance and trade might – just might – be transformed, and , more vitally, become transformative.

Let’s stride bodly, as Adam Smith did, past the horizon of comerce, finance, and trade as we know them, venture off, the map, of industrial era capitalism – and explore the uncharted terra nova of tomorrow’s prosperity.”

„This, then, is a handbook for idealists and pragmatists, for revolutionaries, and hard-boiled realists.

If you’re happy with status quo, satisfied with the state of play, delighted by the incremental – put this book back on the shelf.

If, on the other hand, you’re dissatisfied with the status quo, if you wonder about the ballgame of business as usual, if you’ve begun to see gap between capitalism has been – and what it can and should be – then this book is for you, not just to read, to use.”