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WORLD ECONOMIC FORUM
Davos Switzerland,
Klaus Schwab
To coincide with its 50th anniversary, the World Economic Forum has launched a new Davos Manifesto, a set of ethical principles to guide companies in the age of the Fourth Industrial Revolution.
Why we need the 'Davos Manifesto' for a better kind of capitalism
'Stakeholder capitalism' is gaining momentum, in part thanks to the 'Greta Thunberg effect'
It offers the best opportunity to tackle today's environmental and social challenges
The World Economic Forum is launching a new 'Davos Manifesto'
What kind of capitalism do we want? That may be the defining question of our era. If we want to sustain our economic system for future generations, we must answer it correctly.
Generally speaking, we have three models to choose from. The first is “shareholder capitalism,” embraced by most Western corporations, which holds that a corporation’s primary goal should be to maximize its profits. The second model is “state capitalism,” which entrusts the government with setting the direction of the economy and has risen to prominence in many emerging markets, not least China.
But, compared to these two options, the third has the most to recommend it. “Stakeholder capitalism,” a model I first proposed a half-century ago, positions private corporations as trustees of society, and is clearly the best response to today’s social and environmental challenges.
Shareholder capitalism, currently the dominant model, first gained ground in the United States in the 1970s, and expanded its influence globally in the following decades. Its rise was not without merit. During its heyday, hundreds of millions of people around the world prospered, as profit-seeking companies unlocked new markets and created new jobs.
But that wasn’t the whole story. Advocates of shareholder capitalism, including Milton Friedman and the Chicago School, had neglected the fact that a publicly listed corporation is not just a profit-seeking entity but also a social organism. Together with financial-industry pressures to boost short-term results, the single-minded focus on profits caused shareholder capitalism to become increasingly disconnected from the real economy. Many realize this form of capitalism is no longer sustainable. The question is: why have attitudes begun to change only now?
The Greta Thunberg effect
One likely reason is the “Greta Thunberg” effect. The young Swedish climate activist has reminded us that adherence to the current economic system represents a betrayal of future generations, owing to its environmental unsustainability. Another (related) reason is that millennials and Generation Z no longer want to work for, invest in, or buy from companies that lack values beyond maximizing shareholder value. And, finally, executives and investors have started to recognize that their own long-term success is closely linked to that of their customers, employees, and suppliers.
The result is that stakeholder capitalism is quickly gaining ground. The change in direction is long overdue. I first described the concept back in 1971, and I created the World Economic Forum to help business and political leaders implement it. Two years later, attendees at the Forum’s Annual Meeting signed the “Davos Manifesto,” which describes a firm’s principal responsibilities toward its stakeholders.
Now, others are finally coming to the “stakeholder” table. The US Business Roundtable, America’s most influential business lobby group, announced this year that it would formally embrace stakeholder capitalism. And so-called impact investing is rising to prominence as more investors look for ways to link environmental and societal benefits to financial returns.
Stakeholder capitalism at Davos
We should seize this moment to ensure that stakeholder capitalism remains the new dominant model. To that end, the World Economic Forum is releasing a new “Davos Manifesto,” which states that companies should pay their fair share of taxes, show zero tolerance for corruption, uphold human rights throughout their global supply chains, and advocate for a competitive level playing field – particularly in the “platform economy.”
But to uphold the principles of stakeholder capitalism, companies will need new metrics. For starters, a new measure of “shared value creation” should include “environmental, social, and governance” (ESG) goals as a complement to standard financial metrics. Fortunately, an initiative to develop a new standard along these lines is already under way, with support from the “Big Four” accounting firms and led by the chairman of the International Business Council, Bank of America CEO Brian Moynihan.
The second metric that needs to be adjusted is executive remuneration. Since the 1970s, executive pay has skyrocketed, mostly to “align” management decision-making with shareholder interests. In the new stakeholder paradigm, salaries should instead align with the new measure of long-term shared value creation.
Finally, large companies should understand that they themselves are major stakeholders in our common future. Clearly, all companies should still seek to harness their core competencies and maintain an entrepreneurial mindset. But they should also work with other stakeholders to improve the state of the world in which they are operating. In fact, this latter proviso should be their ultimate purpose.
An incredible opportunity for leaders
Is there any other way? State capitalism, its proponents would say, also pursues a long-term vision, and has enjoyed recent successes, especially in Asia. But while state capitalism may be a good fit for one stage of development, it, too, should gradually evolve into something closer to a stakeholder model, lest it succumb to corruption from within.
Business leaders now have an incredible opportunity. By giving stakeholder capitalism concrete meaning, they can move beyond their legal obligations and uphold their duty to society. They can bring the world closer to achieving shared goals, such as those outlined in the Paris climate agreement and the United Nations Sustainable Development Agenda. If they really want to leave their mark on the world, there is no alternative.
Did Klaus Schwab Create an Army of Davos ‘Yes Men’ to Facilitate His Great Reset?
“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” – Franklin D. Roosevelt
At a time when the world is being overwhelmed with an array of perplexing problems, the political leadership necessary for solving them is coming up short everywhere. Is this perceived shortage of talent on the global stage a mere coincidence, or is it by design?
For 40 years, Klaus Schwab, the German economist and engineer, has played host to the World Economic Forum in the picturesque town of Davos, Switzerland, a venue that the WEF itself describes as “sufficiently removed to foster among participants a feeling of seclusion and camaraderie.” It is amid that comfortable setting that the global elite are seeing through their plans without much transparency in the process. It’s probably safe to say that the financial elite deciding the fate of the planet at an isolated Swiss ski resort is probably not what the Ancient Greeks had in mind when they theorized about democracy and ‘rule of the people.’
Yet that is exactly what we’ve come to inherit from this exclusive Forum, which fervently believes that global affairs are best managed by an unelected assembly of corporations and technocrats that exert unprecedented power over governments and civil society. And now, thanks to the totally, 100% completely unexpected visitation to planet Earth by a virus of uncertain origins, the elite have been blessed with “a rare but narrow window of opportunity,” according to Schwab, to “reset our world” through a grand initiative known as the Great Reset, which can be summed up in six words: “You’ll own nothing and be happy.”
With such a downsized future ahead of us, the one question that seems to have escaped the world’s divided attention is: how is it remotely possible that one individual has managed to concentrate so much unwieldy power into his hands? The short answer is that it was probably no accident.
The young Schwab studied at Harvard’s John F. Kennedy School of Government (1966-67), where he earned a Master of Public Administration degree. During his stay, he developed friendships with a number of luminaries, including the economist John Kenneth Galbraith, and the great godfather of RealPolitik, Henry Kissinger. Schwab’s relationship with Kissinger, the trigger-happy Secretary of State in the Nixon and Ford administrations, was more than casual. Schwab described it as a “50-year-long mentorship” that continues paying dividends to this day.
As the quaint story goes, in February 1971 the 32-year-old Schwab somehow managed to organize the first ‘European Management Symposium’ in Davos, which would change its name in 1987 to the World Economic Forum. That first meeting managed to attract over 400 corporate executives from 31 nations, an astonishing feat even for an ambitious young man like Schwab. In fact, the native of Ravensburg, Germany may have been less directly involved in the formation of the group than is typically believed.
As the journalist Ernst Wolff explains, “the Harvard Business School had been in the process of planning a management forum of their own, and it is possible that Harvard ended up delegating the task of organizing it to him.” Incidentally, 1971 was the very same year that President Richard Nixon enacted a plan that ended dollar convertibility to gold, a move that soon brought an end to the Bretton Woods System.
Now that Klaus Schwab and the WEC have drafted up the blueprints for their highly coveted technocratic state, there remains one crucial key, and that is making sure leaders sympathetic to the message are in positions of power to see it through.
Welcome to Schwab’s ‘Young Global Leaders’
In 1992, Schwab and the WEC established the Global Leaders for Tomorrow school, which went on to become Young Global Leaders in 2004. The Who Who’s list of past members of this “most exclusive private social network in the world,” as Bloomberg described it, suggests that Davos Man was fishing for a very particular type of future leader.
Included among the alumni of this elite grooming factory are former UK Prime Minister Tony Blair, German Chancellor Angela Merkel, French President Emmanuel Macron, New Zealand Prime Minister Jacinda Ardern and California Governor Gavin Newsom. Aside from Blair, who hailed from an earlier, more muscular period of U.S.-dominated history that focused heavily on the ‘war on terror,’ the two common features that unite these politicians is their strong liberal tendencies and draconian approach to the coronavirus pandemic.
Last month, Jacinda Ardern, for example, without the slightest hint of regret, smiled as she said that New Zealand was on its way to becoming a “two-tier society,” divided between those who choose to get the Covid vaccine and those who do not. Currently, residents must scan into stores using a QR code, which isn’t tied to a person’s vaccine status, but rather used for ‘contact tracing.’ Eventually, the Ardern government plans to implement vaccine passports and all of the delightful chaos that will inevitably incur.
In France, another graduate from the Young Global Leaders (YGL), French President Emmanuel Macron, has made it mandatory that visitors to cultural venues, like museums and theaters present a so-called ‘green pass’ to gain entry. Thus far, however, public resistance is stalling any future efforts at preventing the unvaccinated from shopping at the large retail outlets.
“There are protests all the time,” said Peter Kellow, a correspondent from London now residing in Toulouse. “I can use all the shops now. They tried making hypermarkets illegal for the non-vaxxed but backed down.”
“I expect the big companies were losing too much business,” he added.
Meanwhile, across the pond, in the United States, California Governor Gavin Newsom (Class of 2005), after mandating first-in-the-nation school masking and staff vaccination protocols, now wants to enforce vaccinations on children as young as five years old. Protesters gathered at the State Capitol in Sacramento this week in an effort to prevent the mandate from passing. Organizers of the rally emphasized they are not against vaccines, but simply want to have a democratic say in the matter.
A striking thing about the global leaders who passed through Schwab’s tutelage is their relative lack of any special achievements before rising to power. As Wolff further explains in an interview with the RAIR Foundation, “the thing that the Global Leaders graduates have in common is that most of them have very sparse CVs apart from their participation in the program prior to being elevated to positions of power…” Wolff goes on to surmise that this may demonstrate that it is “their connection to Schwab’s institutions that is the decisive factor in launching their careers.”
As shocking as it may be that so many like-minded politicians did an apprenticeship under the direction of Klaus Schwab, that twist of fate pales in comparison with the news that Microsoft founder Bill Gates also fell under the sway of YGL (Class of 2003). Perhaps more than any other person, Gates, through the Bill & Melinda Gates Foundation, and despite having no medical training whatsoever, has been a staunch proponent of Covid-19 vaccines. The problem here is not the vaccines per se, but rather the massive conflict of interest for the parties involved.
Here we have the secretive World Economic Forum not only grooming young overachievers who go on to advocate on behalf of Mr. Schwab and his technocratic vision for the future (i.e. the Great Reset), but also the business leaders who will profit handsomely from the great global transition, which the pandemic has made possible.
Take, for example, Jeff Bezos, yet another alumnus of YGL. Mr. Bezos saw his personal wealth explode exponentially as small businesses, many of which will never rise from the ashes, were forced to close their doors at the peak of pandemic. Millions of consumers, forced to ‘shelter in place,’ did the only thing possible, which was to flock to online stores, like Amazon.
Klaus Schwab
To coincide with its 50th anniversary, the World Economic Forum has launched a new Davos Manifesto, a set of ethical principles to guide companies in the age of the Fourth Industrial Revolution.
Why we need the 'Davos Manifesto' for a better kind of capitalism
'Stakeholder capitalism' is gaining momentum, in part thanks to the 'Greta Thunberg effect'
It offers the best opportunity to tackle today's environmental and social challenges
The World Economic Forum is launching a new 'Davos Manifesto'
What kind of capitalism do we want? That may be the defining question of our era. If we want to sustain our economic system for future generations, we must answer it correctly.
Generally speaking, we have three models to choose from. The first is “shareholder capitalism,” embraced by most Western corporations, which holds that a corporation’s primary goal should be to maximize its profits. The second model is “state capitalism,” which entrusts the government with setting the direction of the economy and has risen to prominence in many emerging markets, not least China.
But, compared to these two options, the third has the most to recommend it. “Stakeholder capitalism,” a model I first proposed a half-century ago, positions private corporations as trustees of society, and is clearly the best response to today’s social and environmental challenges.
Shareholder capitalism, currently the dominant model, first gained ground in the United States in the 1970s, and expanded its influence globally in the following decades. Its rise was not without merit. During its heyday, hundreds of millions of people around the world prospered, as profit-seeking companies unlocked new markets and created new jobs.
But that wasn’t the whole story. Advocates of shareholder capitalism, including Milton Friedman and the Chicago School, had neglected the fact that a publicly listed corporation is not just a profit-seeking entity but also a social organism. Together with financial-industry pressures to boost short-term results, the single-minded focus on profits caused shareholder capitalism to become increasingly disconnected from the real economy. Many realize this form of capitalism is no longer sustainable. The question is: why have attitudes begun to change only now?
The Greta Thunberg effect
One likely reason is the “Greta Thunberg” effect. The young Swedish climate activist has reminded us that adherence to the current economic system represents a betrayal of future generations, owing to its environmental unsustainability. Another (related) reason is that millennials and Generation Z no longer want to work for, invest in, or buy from companies that lack values beyond maximizing shareholder value. And, finally, executives and investors have started to recognize that their own long-term success is closely linked to that of their customers, employees, and suppliers.
The result is that stakeholder capitalism is quickly gaining ground. The change in direction is long overdue. I first described the concept back in 1971, and I created the World Economic Forum to help business and political leaders implement it. Two years later, attendees at the Forum’s Annual Meeting signed the “Davos Manifesto,” which describes a firm’s principal responsibilities toward its stakeholders.
Now, others are finally coming to the “stakeholder” table. The US Business Roundtable, America’s most influential business lobby group, announced this year that it would formally embrace stakeholder capitalism. And so-called impact investing is rising to prominence as more investors look for ways to link environmental and societal benefits to financial returns.
Stakeholder capitalism at Davos
We should seize this moment to ensure that stakeholder capitalism remains the new dominant model. To that end, the World Economic Forum is releasing a new “Davos Manifesto,” which states that companies should pay their fair share of taxes, show zero tolerance for corruption, uphold human rights throughout their global supply chains, and advocate for a competitive level playing field – particularly in the “platform economy.”
But to uphold the principles of stakeholder capitalism, companies will need new metrics. For starters, a new measure of “shared value creation” should include “environmental, social, and governance” (ESG) goals as a complement to standard financial metrics. Fortunately, an initiative to develop a new standard along these lines is already under way, with support from the “Big Four” accounting firms and led by the chairman of the International Business Council, Bank of America CEO Brian Moynihan.
The second metric that needs to be adjusted is executive remuneration. Since the 1970s, executive pay has skyrocketed, mostly to “align” management decision-making with shareholder interests. In the new stakeholder paradigm, salaries should instead align with the new measure of long-term shared value creation.
Finally, large companies should understand that they themselves are major stakeholders in our common future. Clearly, all companies should still seek to harness their core competencies and maintain an entrepreneurial mindset. But they should also work with other stakeholders to improve the state of the world in which they are operating. In fact, this latter proviso should be their ultimate purpose.
An incredible opportunity for leaders
Is there any other way? State capitalism, its proponents would say, also pursues a long-term vision, and has enjoyed recent successes, especially in Asia. But while state capitalism may be a good fit for one stage of development, it, too, should gradually evolve into something closer to a stakeholder model, lest it succumb to corruption from within.
Business leaders now have an incredible opportunity. By giving stakeholder capitalism concrete meaning, they can move beyond their legal obligations and uphold their duty to society. They can bring the world closer to achieving shared goals, such as those outlined in the Paris climate agreement and the United Nations Sustainable Development Agenda. If they really want to leave their mark on the world, there is no alternative.
Did Klaus Schwab Create an Army of Davos ‘Yes Men’ to Facilitate His Great Reset?
“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” – Franklin D. Roosevelt
At a time when the world is being overwhelmed with an array of perplexing problems, the political leadership necessary for solving them is coming up short everywhere. Is this perceived shortage of talent on the global stage a mere coincidence, or is it by design?
For 40 years, Klaus Schwab, the German economist and engineer, has played host to the World Economic Forum in the picturesque town of Davos, Switzerland, a venue that the WEF itself describes as “sufficiently removed to foster among participants a feeling of seclusion and camaraderie.” It is amid that comfortable setting that the global elite are seeing through their plans without much transparency in the process. It’s probably safe to say that the financial elite deciding the fate of the planet at an isolated Swiss ski resort is probably not what the Ancient Greeks had in mind when they theorized about democracy and ‘rule of the people.’
Yet that is exactly what we’ve come to inherit from this exclusive Forum, which fervently believes that global affairs are best managed by an unelected assembly of corporations and technocrats that exert unprecedented power over governments and civil society. And now, thanks to the totally, 100% completely unexpected visitation to planet Earth by a virus of uncertain origins, the elite have been blessed with “a rare but narrow window of opportunity,” according to Schwab, to “reset our world” through a grand initiative known as the Great Reset, which can be summed up in six words: “You’ll own nothing and be happy.”
With such a downsized future ahead of us, the one question that seems to have escaped the world’s divided attention is: how is it remotely possible that one individual has managed to concentrate so much unwieldy power into his hands? The short answer is that it was probably no accident.
The young Schwab studied at Harvard’s John F. Kennedy School of Government (1966-67), where he earned a Master of Public Administration degree. During his stay, he developed friendships with a number of luminaries, including the economist John Kenneth Galbraith, and the great godfather of RealPolitik, Henry Kissinger. Schwab’s relationship with Kissinger, the trigger-happy Secretary of State in the Nixon and Ford administrations, was more than casual. Schwab described it as a “50-year-long mentorship” that continues paying dividends to this day.
As the quaint story goes, in February 1971 the 32-year-old Schwab somehow managed to organize the first ‘European Management Symposium’ in Davos, which would change its name in 1987 to the World Economic Forum. That first meeting managed to attract over 400 corporate executives from 31 nations, an astonishing feat even for an ambitious young man like Schwab. In fact, the native of Ravensburg, Germany may have been less directly involved in the formation of the group than is typically believed.
As the journalist Ernst Wolff explains, “the Harvard Business School had been in the process of planning a management forum of their own, and it is possible that Harvard ended up delegating the task of organizing it to him.” Incidentally, 1971 was the very same year that President Richard Nixon enacted a plan that ended dollar convertibility to gold, a move that soon brought an end to the Bretton Woods System.
Now that Klaus Schwab and the WEC have drafted up the blueprints for their highly coveted technocratic state, there remains one crucial key, and that is making sure leaders sympathetic to the message are in positions of power to see it through.
Welcome to Schwab’s ‘Young Global Leaders’
In 1992, Schwab and the WEC established the Global Leaders for Tomorrow school, which went on to become Young Global Leaders in 2004. The Who Who’s list of past members of this “most exclusive private social network in the world,” as Bloomberg described it, suggests that Davos Man was fishing for a very particular type of future leader.
Included among the alumni of this elite grooming factory are former UK Prime Minister Tony Blair, German Chancellor Angela Merkel, French President Emmanuel Macron, New Zealand Prime Minister Jacinda Ardern and California Governor Gavin Newsom. Aside from Blair, who hailed from an earlier, more muscular period of U.S.-dominated history that focused heavily on the ‘war on terror,’ the two common features that unite these politicians is their strong liberal tendencies and draconian approach to the coronavirus pandemic.
Last month, Jacinda Ardern, for example, without the slightest hint of regret, smiled as she said that New Zealand was on its way to becoming a “two-tier society,” divided between those who choose to get the Covid vaccine and those who do not. Currently, residents must scan into stores using a QR code, which isn’t tied to a person’s vaccine status, but rather used for ‘contact tracing.’ Eventually, the Ardern government plans to implement vaccine passports and all of the delightful chaos that will inevitably incur.
In France, another graduate from the Young Global Leaders (YGL), French President Emmanuel Macron, has made it mandatory that visitors to cultural venues, like museums and theaters present a so-called ‘green pass’ to gain entry. Thus far, however, public resistance is stalling any future efforts at preventing the unvaccinated from shopping at the large retail outlets.
“There are protests all the time,” said Peter Kellow, a correspondent from London now residing in Toulouse. “I can use all the shops now. They tried making hypermarkets illegal for the non-vaxxed but backed down.”
“I expect the big companies were losing too much business,” he added.
Meanwhile, across the pond, in the United States, California Governor Gavin Newsom (Class of 2005), after mandating first-in-the-nation school masking and staff vaccination protocols, now wants to enforce vaccinations on children as young as five years old. Protesters gathered at the State Capitol in Sacramento this week in an effort to prevent the mandate from passing. Organizers of the rally emphasized they are not against vaccines, but simply want to have a democratic say in the matter.
A striking thing about the global leaders who passed through Schwab’s tutelage is their relative lack of any special achievements before rising to power. As Wolff further explains in an interview with the RAIR Foundation, “the thing that the Global Leaders graduates have in common is that most of them have very sparse CVs apart from their participation in the program prior to being elevated to positions of power…” Wolff goes on to surmise that this may demonstrate that it is “their connection to Schwab’s institutions that is the decisive factor in launching their careers.”
As shocking as it may be that so many like-minded politicians did an apprenticeship under the direction of Klaus Schwab, that twist of fate pales in comparison with the news that Microsoft founder Bill Gates also fell under the sway of YGL (Class of 2003). Perhaps more than any other person, Gates, through the Bill & Melinda Gates Foundation, and despite having no medical training whatsoever, has been a staunch proponent of Covid-19 vaccines. The problem here is not the vaccines per se, but rather the massive conflict of interest for the parties involved.
Here we have the secretive World Economic Forum not only grooming young overachievers who go on to advocate on behalf of Mr. Schwab and his technocratic vision for the future (i.e. the Great Reset), but also the business leaders who will profit handsomely from the great global transition, which the pandemic has made possible.
Take, for example, Jeff Bezos, yet another alumnus of YGL. Mr. Bezos saw his personal wealth explode exponentially as small businesses, many of which will never rise from the ashes, were forced to close their doors at the peak of pandemic. Millions of consumers, forced to ‘shelter in place,’ did the only thing possible, which was to flock to online stores, like Amazon.
kenlej- GURU HUNTER
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Join date : 2013-12-23
Age : 70
Dinar Daily :: THE FAMILY ROOM :: POLLS
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