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Executive Summary
4th
Zermatt Summit - June 20 to 21, 2013
Business & NGOs: Building Partnerships of Winners
Dear Friends, dear Partners,
In the recent years, we have all experienced the drastic change created by globalization in the
economic, social and political fabrics of societies.
A widening wealth distribution gap, a lack of long-term employability, climate change, in-
creasing volatility in the global economy, growing skepticism and even suspicion towards
existing institutions…These are just a few examples of the challenges we are facing.The re-
sponses so far have been less than adequate. It is now time to act; time for a more compre-
hensive, holistic approach integrating the contribution that all key players – government,
business, civil society - need to bring to the table.
Compartmentalizing problems used to be a successful approach in many cases. However,
some of the issues we are facing today are so complex that it is impossible to address them
successfullywithouttakingintoaccountthewholepicture;withoutlookingatthewaysissues
impact one another.
A key illustration of this new paradigm is that it is now nearly impossible to look at economic
activity, to make economic or corporate policy decisions, without consideration for the social,
human, environmental impact of such decisions.
In the same way, while fully recognizing the logic and objectives of business, we increasingly
realize that there is more than “just” a business dimension to the activities of Multinational
corporations.
Putitsimply:governments,corporations,individualsneedtoembracenewperspectives,new
ways of approaching issues, new operating processes. Up to the last part of the 20th century,
government and business – the state and the private sector – were mostly the two key actors,
the movers and the shakers.The emergence of civil society as a very potent and increasingly
assertive force has been a major new development brought by globalization.
In the same way – also as a result of globalization – theWestern world absolute prominence on
the global scene is now being replaced by a new power architecture in which emerging market
countries are more and more asserting their voices, their priorities and their expectations.
More than ever, we need to put the human being back at the very center of economic activity.
We have to integrate the concepts of finance serving the economy, economy serving the
common good and the common good serving the human being.
We also have to recognize that business and civil society cannot exist and operate at best in
a silo mode, at worst in confrontation. They increasingly need to find efficient collaborative
formula that will respect their respective specific roles. In the same way, while the profit and
non-profit sectors have their own logic, they need to be seen more and more as complemen-
tary in their mission as well as with respect to the domains they cover.
“On behalf of the Board, I am proud to present this
Summary of the 4th
edition of the Zermatt Summit.This
year the Zermatt Summit paved concrete paths towards
Changing Hearts and Minds with its high quality speakers
and rich content, reaffirming that not only new leader-
ship is possible but that dialogue is possible between
civil society and business fulfilling the aims of Zermatt
Summit Declaration and Manifesto.”
2
The Rana Plaza tragedy in Dakha, Bangladesh – 1,300 workers dead under the rubles of a
grossly inadequate building, has forced major clothing brands to audit their supply chains in
order to ensure greater safety and better working conditions for the people at the bottom of
the global supply chain.These 1,300 deaths, and all those that had gone unnoticed before by
the international media, could – and should – have been avoided if there had been a better
collaboration between the corporations and the NGOs involved. And if governments had not
waited until the tragedy happened to stop turning a blind eye to unacceptable abuses.
The overall theme of this fourth Zermatt Summit – building a partnership of winners between
NGOs and business – aimed at encouraging a broader and more productive action-oriented
dialogue between actors who have yet to move from suspicion, or awkward collaboration, to
a genuine mode of partnership taking different forms.
These partnerships are in line with two guiding principles: the need to put the human being
at the center of the economic process, and the role that hybrid organizations bringing together
the profit and non-profit dimension can now play in creating more inclusive prosperity.
Our objective during our discussions was to make the Zermatt Summit an enabler of a broader
and more successful collaboration between business and civil society – and the platform of
reference when it comes to creating a more, sustainable and human globalization.
“The current crisis is not only economic and financial but it is rooted in an ethical and anthropo-
logical crisis. Concern with the idols of power, money and profit rather than with the value of the
humanpersonhasbecomeabasicoperatingnormandcriticalcriteriafororganizations.Wehave
forgotten something important that is over and above business logic and market parameters.
That “something” is men and women in as much as they are human beings by virtue of their pro-
found dignity: we need to offer them the possibility of a dignified life actively participating in the
Common Good” .
With the Zermatt Foundation we strive to serve rather than be served and to adopt everyday
practices which prove that another path is possible.We invite you to join us on this path next
year on the 26th
and 27th
June 2014 for another giant step in the Zermatt Summit direction.
Again, on behalf of the Board, I would like to thank all the actors of this edition of the Zermatt
Summit, the speakers, our sponsors as well as our organization team who worked so hard to
make this event a success.
ChristopherWasserman
Founder, President of the Board and CEO – Zermatt Summit
3
Declaration on
the Common Good to
Humanize Globalization
Jean-René Fournier
HI and RH Archiduke Rudolf of Austria of Habsburg-Lorraine
Daniel Lauber
Antonin Pujos
Théodore Roosevelt Malloch
Father Nicolas Buttet
Nicolas Michel
ChristopherWasserman
We, the members of the Zermatt Summit Foundation Board*, signatories of this Declaration,
*
4
Affirm that the dignity of the human person
and the inviolability of his/her rights must be
the foundation for relations between the cit-
izens of the world and that respect for these
two principles must prompt States, other na-
tional and international public authorities,
civilsocietyandeconomicoperatorstogovern
decisions and actions resolutely towards the
Common Good;
Point out that human dignity is the principle
from which all Human Rights stem, and that
thisprincipleisinvokedbymanyConventions
and Universal or Multilateral Declarations, as
well as by many national Constitutions;
Support the values of freedom, equality, sol-
idarity, subsidiarity and respect for creation,
and affirm the necessity of protecting the
cultural diversity of humankind;
Are convinced that the resolution of the
present crisis depends on greater accept-
ance of responsibility and determined com-
mitment by each individual to promote the
Common Good in a spirit of service and love.
This appeal is all the more urgent in that the
great challenges facing humanity are be-
coming more threatening;
Note that social market economy as well as
free enterprise have enabled humanity to
makerealprogressandhavemadegoodsand
services available to an ever greater number
of people;
Would like to see an economy driven by the
concern for the Common Good supported by
financial mechanisms at the service of the real
economy which are keen to foster develop-
ment that respects the human person, in par-
ticularthosewhoaremostvulnerable,andthat
cares for the natural world and the ecosystem;
Reaffirm that the exercise of power is legiti-
mized by seeking the Common Good, by the
humanization of social life and by respect for
fundamental freedom, in particular freedom
of conscience and freedom of worship;
Deplore that exclusive desire for profit and
thirstforpower,whichisattherootofsomuch
human drama, hinders the development of
the whole man and of all men to the full;
Encourage, consequently, each and every
person, particularly those who exercise eco-
nomic or political power and who are active-
ly involved in all levels of society in both the
public and private sectors, to serve the Com-
mon Good of the whole human family with
courage and boldness and to actively pro-
mote peace in the world;
Recommend that firm and effective refer-
ence be made as widely and constantly as
possible to the Common Good as the guid-
ing principle for humanity to commit to reg-
ulating its activities with greater solidarity
while considering each person as an end and
not as a means;
Propose to share with all women and men of
good will our reflections on the importance
oftheCommonGoodbyvirtueofwhicheach
one is called to see his or her own good in the
good of others; and our conviction that, by
making the Common Good the guide for our
actions and the criterion for our decisions, we
can individually and collectively work for civ-
ilization and progress while respecting our
human nature and nature generally, with a
view to achieving shared prosperity, sustain-
able development, peaceful coexistence and,
ultimately, the realization of our natural and
universal aspiration to happiness;
Invite all women and men of good will to
commit themselves to the Common Good
and to the signing of this Declaration.
5
JoinusbysigningtheDeclarationonlineatwwww.zermattsummit.org
Civil society is now a diverse, vibrant, very in-
fluentialplayerthatcannolongerbeignored.
Two important developments are happening:
–	 Civil society has to be seen increasingly
not only at the third player - along with
business and government - but also as the
glue between business and government.
–	 Business and NGOs cannot be seen any
moreasseparaterealities.Inmanydomains
the lines have been blurred between the
two.This is illustrated by the emergence of
new types of companies – hybrid corpo-
rationswhicharecreatedforprofitbutalso
forPurpose.Newformsofincorporationsin
the USA are reflecting this new reality.
Socialentrepreneurshipexpressesthisreality
but we need to find ways for social entrepre-
neurs to be able to scale up their concept.
Whatwearelookingat,here,aresocialentre-
preneurs who are mission-driven, have a
strategic approach, are resourceful be-
cause money is not always available in the
amounts needed, and who have at the same
time the notion of profitability and the
ability to integrate new measurements
beyond wealth creation towards talent crea-
tion, social capital creation.
These developments imply a rethinking of
therelationshipbetweenbusinessandNGOs,
the setting – or the broadening – of new rules
of engagement. In that respect, we need to
address the crucial issue of trust between the
two – and we need to realize that building
trust is a process that takes time and pa-
tience.BusinessesaswellasNGOsneedtorid
themselves of of the “unconscious arrogance”
that sometimes color their behavior and
their decisions, the“I know how to deal with
it”syndrome.
If we want to achieve a more efficient collab-
orationbetweenbusinessandNGOsweneed
a much sharper focus on where when and
howthis collaboration can provide optimum
results, a full clarity on each party’s agenda
and objectives.
The withdrawal of the state from some areas
where it had exclusive responsibility until re-
cently has broadened the potential domains
for collaboration between business and NGO
and heightened the necessity for this collab-
oration.
Business and NGOs need to focus more on a
setofissuesthatarecrucialforensuringamore
efficient collaboration:
–	 Legitimacy of NGOs and their modus op-
erandi but also the broader legitimacy of
the corporation.
–	 Transparency – who funds what and for
what purpose?
–	 Accountabilityintermsofresultsachieved.
The explosion of social media has also added
anewdimensiontotherelationshipbetween
business and NGOs as it has inverted the pyr-
amid in some ways. It is no longer only money
thatspeaksoutloud.Civilsocietyhasfoundan
incredibly efficientamplifier thatnobusiness
or government can ignore. With the spread
ofsocialmedia,businessesareunderincreas-
ing pressure to be more ethical.
However,asbusinessandNGOstrytoachieve
a better collaboration the role of the state
cannot be underestimated when it comes to
set the major orientations and create the
overall framework for activity. We need to
take into account that sovereign states are
not the sole players anymore in the interna-
Some highlights from
the fourth edition
6
tional community. Non-state actors are in-
creasingly active, contributing to shaping
the international legal order. States had to
learn to work with civil society even before
business had to do it.
So our objective should be to leverage and
multiply a number of successful examples
where government/business/civil society
have been acting in convergence like the
Kimberly Process to deal with the“blood dia-
monds”issue,ortheGlobalCompactinitiated
by the UN.We should aim at creating a whole
web of such examples of convergence of
government/business/civil society efforts to-
wards addressing some global issues.
This might be a piecemeal approach but this
wouldhelpadvancetheagendaintheabsence
of global formal agreements that are becom-
ing more and more difficult to achieve as we
have seen with the failure of the Doha Round
ortheverymeagerresultsoftheRio+20Sum-
mit on climate change.
We see a lack of leadership – on the political
side–toaddresstheglobalissuesthatweare
facing – as this is illustrated for example with
respect to the climate change challenge. We
cannot wait for global leaders to make deci-
sions that will then prompt us to act. This
leads to one unavoidable conclusion: There
is a need to push from the bottom to initiate
the changes that are so necessary.
This requires new kinds of leaders, globally
responsible leaders whether at the head of
corporationsorofNGOs–anditisworthnot-
ing that globally responsible leadership as a
notion did not exist 10 years ago.
What does this kind of leadership require?
–	 Personal level transformation of the heart
and soul
–	 Transformation at the level of the corpora-
tion, which might involves retrofitting the
existing organization
–	 Being engaged in the transformation of
the System
In that respect, we all realize that despite all
the progress made these last few years Cor-
porate Social Responsibility is not yet fully
embedded in many corporations, that it re-
mains vulnerable to the uncertainties of the
business cycle. We are just at the beginning
of this process which will take time.
In the same way, we have now the tools for
monitoring and measuring performance in
ensuring greater transparency and account-
ability. It is for us to ensure that these tools
are used in a very assertive way.
All this gets back to the notion of transforma-
tion,ofredefiningthefinalityofeconomicand
business activity, of optimizing the outcomes
of economic activity for the human being.
This is a process that we need to engage into
because business as usual is not enough
anymore as the trust deficit towards busi-
ness leaders and corporation shows in a very
dramatic way.
Very tellingly, we need to draw the lessons
from the fact that this trust deficit is not the
result of missing economic or business tar-
gets but is generated by corporations failing
to put customers ahead of profit, by how em-
ployeesaretreated,bylackoftransparencyin
the supply chain. Increasingly, it is the failure
7
on the part of business leaders and corpora-
tions on the so-called soft issues that is gen-
erating this lack of trust.
This leads to a very important point that we
need to find a way to translate into our daily
approach to business. The smart thing to
do is not to try to “maximize” the return
but to“optimize”it.
This change of mindset, this heart and mind
transformation, has to go beyond compli-
ance in the narrow, technical, legal meaning
of the term. Because technical or legal com-
pliance does not address the key question of
“what are my values and how do they con-
nect to the impact that my decisions and ac-
tivities have on other people?”
It is only by redefining the raison d’être of the
corporation in a broader sense, that we can
playourroleasleadersinaddressingthecon-
tradictory pressures that we are confronted
with and that we can remain ourselves and
help align management on the long-term view
ofthewherethecorporationshouldbeandthe
values it needs to abide to and help transmit.
This much needed change of mindset will
take time. It is a process. And what we are
doinghere is a step inthat direction.Itisa
process in which we are all – here – in-
volved and to which we are all – here –
contributing.
Cross-sector collaborations are increasingly
perceivedtobeeffectivecatalystsofeconomic,
environmental and social sustainability. Yet,
thesepartnershipsfaceapotentialcredibility
gap.The number of multi-stakeholder collab-
orations has increased significantly over the
recent years, but their overall impact is not
yet on a par with the magnitude of the global
challenges our society faces. In addition, the
relationships between the parties involved
– business, civil society representatives and
governmental agencies – have long been
characterized by mutual suspicion.
Howcanoneenhancetrustbetweenunnatural
partners that have vastly different agendas
and operating cultures? Around what con-
sensus can effective collaboration be articu-
lated? What are the organizational models
and accountability channels that maximize
the potential of delivering an effective com-
bination of economic and social value to the
community at large?
This is why we already invite you
to join us for the 5th edition of
the Zermatt Summit, next year
June 26 to 27, 2014.
8
Globalization and technological progress
have unlocked individual potential and giv-
en unprecedented power to civil society.The
latter is diverse, vibrant and highly influen-
tial. Acting as “glue between the public and
the private sectors”, it plays an active role in
the formulation of a “shared vision” for the
future and in the defense of the values asso-
ciated with the common good.
Civil society representatives are also actively
involved in the development of social ven-
tures and new formats for cross-sector col-
laboration. As a result, one witnesses a blur-
ring of the lines between identities and
traditional organizational models. For exam-
ple, employees of large corporations are also
members of civil society who sometimes act
as social entrepreneurs within more tradi-
tional business organizations.
A rapidly evolving
playing field
AtJamiiBoraBank,oneofthefastestgrowingbanks
in Kenya, all the staff are current or ex-clients. Iden-
tities have become plural and they often overlap.
Organizational and sectoral barriers are also disap-
pearing: international banks like BNP Paribas or
Morgan Stanley now have microfinance depart-
mentsalongwithanimpactinvestmentofferingfor
their clients.
Socialentrepreneurshipisoneofthemanyreflections
of civil society’s growing appetite for the articulation
of innovative solutions to pressing social needs.
Socialentrepreneursarefullyawarethattheinvolve-
ment of other actors in their projects may allow
them to leverage additional resources.
“Social Entrepreneurship is a bottom-up
movement […] that seeks to come up with
a business-based, sustainable answer to
social issues”
Arnaud Mourot
CEO, Europe, Ashoka
“Social entrepreneurship is not a
charity with a revenue stream. It
is about reforming a system that
creates negative externalities.”
Soushiant Zanganehpour
Head of Strategy & Operations, Skoll Center for Social Entrepreneurship, Oxford University
9
lotteWolff, Group Head of Corporate Respon-
sibility mentioned, that meant making the
decision to become in Liberia a capacity
building partner for the State and commit-
tingto“helpputthecountrybackinbusiness”3
after Liberia’s second civil war. For Novartis, it
involved creating a drug supply chain inTan-
zania to help ensure its medicine could reach
the rural patients that needed them.
Agreeing to a partnership is not the same as
delivering one. As Rodrigo Jordan, Vertical,
highlighted, business is often viewed as“un-
consciously arrogant”. Such perceptions are
a reflection of important differences in oper-
ating cultures and in long-term agendas. In
addition, corporations and NGOs both face
important trust and legitimacy issues. As
Alexander Fink, CEO Edelman Switzerland,
summed it up, this largely results from a per-
ceived failure – especially on the part of the
privatesector–tomeetpublicexpectations.4
With globalization, large corporations are in-
creasinglyperceivedtohavebrokenthesocial
contract, thereby reinforcing the notion that
concepts such as“shared value”or“win-win”
are fiction.
Cross-sector partnerships carry a series of
financial, reputational, and operational risks
for the parties involved.When Heineken first
decided to provide antiretroviral therapy its
employees and their families in Sub-Saharan
Africa,itlaunchedatreatmentprogramwith-
out knowing what the overall costs to the
company would be.
Cross-sector partnerships allow for a unique
combination of skill-sets and capabilities.
Governments bring scaling potential, and
sometimes a long track record of collabora-
tion with civil society. Cities and regions are
particularly effective partners that provide
incubation and supporting frameworks to an
increasing number of social ventures.
InpartsoftheworldwheretheStateandgov-
ernmental institutions are more fragile, the
dynamic of the relationship differs somewhat
but remains of equal strategic importance.
Business sector participation facilitates ac-
cess to funding and to infrastructures that are
required for a project to come to scale.
Increasingly, business, civil society and gov-
ernmental agencies recognize the benefits
they can derive from effective cross-sector
partnerships. For businesses, participation in
social ventures increases the attractiveness of
their organizations for recent graduates and
helpsdrivecurrentemployeeengagement.In
emerging economies, acting as the develop-
ment partner of a country may also provide
corporations first-mover advantage. NGOs
and social entrepreneurs find themselves in a
position to act as a “catalyst for change”1
as
they provide business and governments with
privileged insights into innovative approach-
es to better product/service delivery.
For the private sector, scaling such innova-
tions may unlock previously untapped mar-
kets. For governments, there may be oppor-
tunitiestocurbpublicspending,increasethe
quality of services provided to constituents,
anddelegatetheprovisionofpublicservices.
Thescopeofmulti-stakeholdercollaborations
has expanded significantly over the recent
years. For companies, it often implies going
beyond traditional business activities and
embracing the notion of “extended leader-
ship”2
. In the case of Arcelor Mittal, as Char-
New bases for
value creation?
Cross-sector partner-
ships are rife with
execution challenges
10
1
Erin Ganju, Co-Founder and CEO, Room to Read
2
The Regeneration Roadmap, SustainAbility http://theregenerationroadmap.com/files/reports/Changing-Tack.pdf, last accessed July 3, 2013
3
Charlotte Wolff, General Manager, Group Head of Corporate Responsibility, Arcelor Mittal
4
2013 Edelman Trust Barometer – additional information available upon request
As SAP decided to partner with NGO Special-
isterne and hire autistic people for its soft-
ware-testingdepartment,ithadtoweighthe
risks of being accused of merely looking for a
source of cheap labor. Private sector actors
also need to be strategic in selecting the
NGOs they want to work with. Failing to carry
out proper due diligence and choosing an
organization of the wrong size may result in
scalingasymmetriesthatthreatentheoverall
outcome of the venture.
The successful delivery of a combination of
economic and social value that is scalable is
complex and difficult to track. As Michael
FuerstfromNovartis,stressed,measuringsocial
impact in the health sector is a delicate exer-
cise. Attributing social impact is difficult: is
the doctor making the diagnosis to be cred-
ited or the infrastructure through which the
drugs are made available to the patients?
Probably both, but in what proportions?
The question is all the more important as it
has governance implications.Viable partner-
shipsrequireappropriateincentivesschemes
for all the actors involved. In addition, tradi-
tional indicators can fail to be an accurate
gauge of the success of social innovations. In
the case of microfinance for example, the key
evaluation criteria should not be repayment
rateandprofitability,buttherateofgraduation
to SME status of the loan recipients – which
remains very low… An important underlying
issue is that there are no established bench-
marks that assess sustainability.
Zermatt Summit participants highlighted
that the lack of a common language be-
tween business and civil society representa-
tives remains the biggest challenge to the
success of cross-sector collaborations. As
Carlos Braga from IMD put it, business and
NGOs“lie in the same bed, but they have dif-
ferent dreams”. Arnaud Mourot from Ashoka,
called for“a change in the conversation”.
Differences in terminology are not only a po-
tentialchallengetotheexecutionofaventure,
they also point to conflicting views of its suc-
cess. Quoting research conducted at Oxford
University, Bérangère Magarinos-Ruchat from
FirmenichandChairpersonoftheGlobalCom-
pactNetworkSwitzerlandstressedthat“client”
and“beneficiary”arenotinterchangeableterms;
theyunderpindifferencesinuserempowerment
and overall goals.
It is precisely that difference that prompted
Ashoka fellow Jean-Baptiste Bapst to create
a network of social groceries allowing its users
tore-allocatesomeoftheireconomicresources
towards projects important to them. The
goaloftheprojectwasnotthemereprovision
of affordable food products but included sev-
eral strategies to empower individuals to exe-
cute on personal aspirations.
Todate,cross-sectorpartnershipsstilllacksuf-
ficient incubating support and the specific
platforms they require in order to develop
successfully.ForMarkFoster,Chairmanofthe
International Business Leaders’Forum, this is
likely due to insufficient funding. Other Zer-
matt Summit participants contended that
there should be more direct involvement
from business schools in the creation of a
dedicated support system.
11
What are the building blocks of successful
co-creationandothermulti-stakeholderven-
tures? Such collaborations require the clear
formulation of common goals, strong gov-
ernance,clearchannelsofaccountabilityand
organizational transparency. It is the combi-
nation of these elements that determines
legitimacy in the eyes of the public. This rec-
ognition has become essential because of
the unprecedented influence acquired by
civil society through social media. As Marlyn
Tadros Founding President & Executive Di-
rector, Virtual Activism and Professor at the
New England Institute of Art emphasized,
social media platforms have become the“ul-
timate amplifier”that can make or break any
organization’s credibility.
Effectivecross-sectorcollaborativeworkcalls
for “globally responsible leaders”, a phrase
that was coined only ten years ago, Mark
Drewell, CEO Globally Responsible Leader-
shipInitiative,pointedout.Whatcharacterizes
thisnewgenerationofdecisionmakers?They
have an extended view of the scope of their
responsibilities; their strategy is focused on
optimizing profit rather than maximizing it.
Overall,theyassesstheirdecisionsagainstadif-
ferentsetofcriteriathatinclude:whoisaffected
by what I do? What kind of suffering could I be
“co-creating”? The grooming of these deci-
sion-makers and their counterparts requires a
significant amount of action-based learning.
A roadmap to stronger, more effective and
resilient multi-stakeholder partnerships
Many Zermatt Summit participants empha-
sizedthetransformativepowerofexperience
and the value of programs such as the Inter-
national Business Leaders’Forum’s“Crossing
Borders”or“Leaders’Quest”that allow mem-
bers of senior management to go beyond a
merelyconceptualapproachofsustainability
related issues. More broadly, educational in-
stitutions need to empower the younger
generations with a new combination of skill-
sets that is not just technological.
Jean-Louis Homé, Former Chairman, Fair-
trade International, President MDIN, stressed
the crucial importance of investing in em-
powering the end-users of an infrastructure/
service and of involving the public sector –
where pertinent – in the implementation
process. Carlos Braga from IMD concurred
that failure to do so may mean the demise of
aproject.Hethusexplainedthatthedistribu-
tion of LifeStraw individual water filters in
Kenya was not successful because people
were not given the opportunity to appropri-
ate this innovation and integrate it into their
daily habits.
Personal engagement from senior business
leaders is another key driver of effective
cross-sector partnerships. Figures like Peter
Brabeck-Letmathe Chairman of Nestlé or
Peter Voser, CEO of Royal Dutch Shell, have
played central roles in shaping their organi-
zations’contributions to addressing environ-
mental issues.
Yet, involvement from the top leadership is
not effective if mid-level management does
notactivelybackitup,BettinaFerdman-Guer-
rier, Founder & CEO Philias Foundation, high-
lighted. As Jan Noterdaeme from CSR Europe
putit,forittoyieldsizeableresults,CSRneeds
to be closely related to the specific area of ex-
pertise of an organization, and“embedded in
the DNA of company”.
“The power of social entrepre-
neurs does not lie in their P&L,
but in their vision of society”
Arnaud Mourot
CEO, Europe, Ashoka
12
The current 18-29 generation presents an
unprecedented strategic opportunity and
untapped body of talent for business and
civil society organizations alike. They are the
“first globals”, and they show strong interest
in social and environmental issues. Indeed,
surveys indicate they will agree to a 15% pay
cut to work for a company whose social mis-
sion they strongly identify with.
Several Zermatt Summit participants also
highlighted that the only way out of the trust
deficit crisis that business – and to a certain
extent, civil society organizations – face im-
plies greater transparency and clearer chains
of accountability. CSR Departments should
be able to act as the“internal NGO”within a
business organization, and have, as Jan
Noterdaeme put it, the same amount of free-
dom as a King’s fool.
Organizational models also need to evolve.
Sebastian Winkler from the Global Footprint
Network,describedthecurrentsystemasbe-
ing governed by the “3 Cs” (command, con-
trol and compliance). He contended that
self-regulation and compliance are not
enough and called for new guiding princi-
ples, which he described as the“3Is”: innova-
tion, integration and incentives. Fredrik
Galtung from Integrity Action also under-
lined the limits of the compliance model and
advocated for the development of an alter-
native.Through tools like the“fix rate”which
aim to provide an objective and reliable
measure of organizational transparency, his
organization thus advocates for the imple-
mentation of a“proactive integrity model”.
Claude Smadja highlighted the need for a
culturalchangeintherhetoriccurrentlyused
to refer to sustainability issues. We should
abandon the Malthusian discourse that has
beendominantsincethecreationoftheClub
of Rome and start highlighting all the tech-
nological capabilities that can be used to ad-
dress current problems. Renat Heuberger,
CEO South Pole Carbon Asset Management,
agreed that people“don’t want to listen to a
sad story”, and that communication around
environmental issues should remain ap-
proachable and positive.
Lastly and perhaps most importantly, Zer-
mattSummitparticipantsstressedthatsocial
and environmental issues will start being ad-
dressed more effectively by the private sec-
tor once it is in a position to accurately price
the cost of not doing so. Triple bottom-line
reporting and the development of impact
investing are a clear indication of progress in
this direction. Consumers are increasingly
willing to pay a premium for socially respon-
sible products and services, but the accurate
pricing still remains a challenge today.
Final conversations in Zermatt emphasized
the need to “start mobilizing from within”.
Our generation finds itself faced with the
challenge of re-articulating moral values and
economic priorities. This implies restoring
the political dimension of business and put-
ting the human being back at the center of
the economic process. As Mark Foster from
International Business Leaders Forum, summa-
rized, we find ourselves at a “dangerous mo-
ment”,with“alongjourneyofawarenessahead”.
“Enlightened self-interest
should replace“Greed is Good”.
Mohan Munasinghe
Nobel Peace Prize co-recipient
13
09:00-09:10	 Welcome and opening remarks
	 ChristopherWasserman
	 Founder & Chairman, The Zermatt Summit
09:10-10:30	 Opening plenary
	 Business and civil society: rethinking the terms of the relationship
	 After a period of mutual suspicion and controversies, relationship patterns between business
and the third sector have evolved towards the recognition that collaborative strategies can
be mutually beneficial and are powerful tools to address sustainability issues. However,
misperceptions and unmet expectations still mar the business-NGO relationship.What issues
need to be addressed to achieve smoother, more successful civil society-corporate engage-
ments?What should be the rules of engagement between business and civil society? How can
partnerships involving various stakeholders remain accountable, transparent, and focused on
specific, measurable issues?
	 Serena Brown
	 Global Development Initiative Senior Manager, KPMG
	 Rodrigo Jordan
	 Mountaineer and President, Vertical S.A.
	 Nicolas Michel
	 Professor of International Law, University of Geneva, and Geneva Graduate Institute of International and Development Studies
	 Danny Sriskandarajah
	 Secretary General, World Alliance for Civic Participation
	 MarlynTadros
	 Founding President & Executive Director, Virtual Activism, Professor of Computer Science at the New England Institute of Art
	 Moderator: Claude Smadja
	 President, Smadja & Smadja
11:00-12:30	 Debate
	 Social entrepreneurship and the business of positive social change
	 Globalization and technological advances have unlocked individuals’ potential to tackle
societalneedseffectively. Challengingthetraditionalnotionofprofitability,anewgeneration
of mission-driven entrepreneurs is using business skills and expertise to address social and
ecologicalissues.Whatinnovativebusinessmodelsarethesenewagentsofchangedeveloping?
Are there limitations to social entrepreneurship’s impact potential? In what ways can social
entrepreneurship be a force for change at the economic and social levels?
	 Gustavo Montero
	 Founding Partner, GAM Consulting Group
	 Arnaud Mourot
	 CEO, Europe, Ashoka
	 Soushiant Zanganehpour
	 Head of Strategy & Operations, Skoll Center for Social Entrepreneurship, Oxford University
	 Moderator:Yaël Smadja
	 President, Smadja & Smadja USA
Program
Thursday 20 June 2013
14
11:00-12:30	 Panel discussion
	 Business and civil society: championing social innovation
	 Over the recent years, governmental agencies have been opening up public services to new
types of providers. In some instances, service provision has been partially or fully delegated.
In others, governments have supported partnerships with private capital, social entrepre-
neurs and the public to foster more efficient and economical approaches to pressing social
needs. What can business-NGO partnerships do better than governments? How can they add
valuetogovernment-providedservices?Howcanwecreate“SiliconValleysofsocialinnovation”?
Are there specific areas where business-NGO intervention achieves best results?
	 Berangère Magarinos-Ruchat
	 Director of Sustainability Partnerships, Firmenich/ Representative, Global Compact Switzerland
	 Carlos Braga
	 Professor of International Political Economy, Director, the Evian Group
	 Michael Fuerst
	 Corporate Responsibility Manager, Novartis
	 Moderator: Delia Meth-Cohn
	 Director, Global Rethink
12:45-14:15	 Working lunch	
	 Win-win co-creations between the social and business sectors
	 What would the world look like if the barriers between the business, social and public spheres
were torn down? How can economic performance, social impact and innovation be conciliated
tocreateopportunitiesforscalablesocialandbusinessco-creations?Discoverconcreteexamples
ofhybridcollaborationsandcontributetothedefinitionofinnovativecollaborativesocietalsolutions.
	 Arnaud Mourot
	 CEO, Ashoka, Europe
	 Stéphanie Schmidt
	 Director, Full Economic Citizenship Europe, Ashoka
	 AnkaWittemberg
	 Chief Diversity & Inclusion Officer, SAP AG
15
14:30-16:00	 Plenary session
	 It is more than“just” business: How business leaders can contribute to
moving a country up
	 We are witnessing the limits of what governments can do to foster economic and social devel-
opment.How can the corporate world – without neglecting its responsibilities towards share-
holders – contribute to greater social cohesion and inclusive growth? How should the share-
holder-stakeholder relationships be balanced? What should business do better and/or
differently when dealing with the community at large?
	 Mark Drewell
	 Chief Executive, Globally Responsible Leadership Initiative
	 Antonin Pujos
	 Former Chairman and Founder, the Research Club, French Institute of Directors
	 Mallika Sarabhai
	 Dancer and social activist
	 CharlotteWolff
	 General Manager, Group Head of Corporate Responsibility, Arcelor Mittal
	 Moderator: Claude Smadja
	 President, Smadja & Smadja
16:30-18:00	 Panel discussion
	 How can civil society and the private sector be partners in addressing
the employability challenge?
	 Globally, it is estimated that nearly 300 million of 15-24 year olds are not working or studying.
Of that total, 26 millions are in OECD countries. In emerging economies, where young people
are the fastest growing segment of the population, this severely hampers current and future
economic growth. In Western countries, governments remain unsuccessful in dealing with
their growing NEET (Not in Employment, Education orTraining) population.The ILO describes
the age group as a“scarred”generation of young workers. How can civil society organizations
and businesses improve their collaboration to facilitate access to education and to create a
better match between training and skills demand? In a world of fast evolving technology and
market needs, what are the strategies that will ensure greater employability?
	 Philippa Frankl
	 Executive Director, Street Kids International
	 Erin Ganju
	 Co-Founder and CEO, Room to Read
	 Serena Brown
	 Global Development Initiative Senior Manager, KPMG
	 AnkaWittemberg
	 Chief Diversity & Inclusion Officer, SAP AG
	 Moderator: Delia Meth-Cohn
	 Director, Global Rethink
16
16:30-18:00	 Panel discussion
	 How can civil society and the private sector be partners in addressing
the environment challenge?
	 For most global businesses, the greenwashing of the early years is long gone.Well-articulated
environmental goals are increasingly becoming part of corporate strategies. Yet, the overall
impact of business activity on the planet keeps intensifying. Emerging economies need to
find ways to curb environmental damage without constraining economic growth. More de-
veloped countries are also struggling with elaborating and implementing policies that will
reconcile environmental sustainability and profitability. Advocacy groups have been pressur-
ing corporations and governments to move faster and more decisively on these issues.What
are the areas of potential conflict between the private sector and NGOs on this topic, and how
can they be successfully addressed? How can we foster genuine synergies between NGO and
corporate initiatives?
	 Renat Heuberger
	 CEO, South Pole Carbon Asset Management
	 Stuart Orr
	 Head of WWF’s Water Stewardship
	 SebastianWinkler
	 Director, Europe, Global Footprint Network
	 Moderator: DougalThomson
	 The Economist
18:00-18:15	 Connecting the dots…
	 A look back on the day’s discussions to highlight its key outcomes
	
	 Rodrigo Jordan
	 Mountaineer and President, Vertical S.A.
19:00-19:45	 Concert: Piano & Orchestra
	 Soloist: Elizabeth Sombart, accompanied by the Orchestre Solidaire Résonnance and con-
ducted by Diego Miguel-Urzanqui
19:45-21:45 	 Official dinner
	 Whatthebusiness/civilsocietypartnershipcandoNOWforasustainable
future
	
	 Keynote speaker: Mohan Munasinghe
	 Nobel Peace Prize Winner, Physicist, Sri Lanka
17
09:00-10:30	 Plenary session
	 Creating the virtuous circle: ethics +transparency =trust
	 Ethical lapses from MNCs and compensation issues have tarnished corporate image in most
parts of the world. Negative perceptions also affect NGOs and civil society organizations since
they are reproached with a lack of transparency in their use of resources and/or governance
models. Legitimacy is also sometimes called into question. In which areas would greater
transparency help foster public trust in corporations as well as in NGOs? To what extent do
corporations and NGOs need to respect similar ethical principles?What are the indicators and
reporting tools that will create accountability and enhance public trust?
	 Alexander Fink
	 CEO, Edelman Switzerland
	 Fredrik Galtung
	 Chief Executive, Integrity Action
	 Guido Palazzo
	 Director of the Department of Strategy, Professor Faculty of Business & Economics, University of Lausanne
	 ChristopherWasserman
	 President, TeroLab Surface Group, Chairman, The Zermatt Summit
	 Moderator: Claude Smadja,
	 President, Smadja & Smadja
11:00-12:30	 Panel discussion
	 How can civil society and the private sector be partners in addressing
the health challenge?
	 In the Western world, the health-related costs incurred by the Welfare State are becoming
increasingly untenable. In less developed economies, broadening access to health care, fight-
ing infectious diseases and malnutrition are crucial priorities. Civil society organizations and
the private sector have created successful patterns of collaboration, especially in emerging
countries.What are the lessons to be drawn from successful examples of collaboration? How
can they be expanded?
	 Jean-Louis Homé
	 Former Chairman, Fairtrade International, President, MDIN
	 Vinay Nagaraju
	 COO, Riders for Health
	 Arie de Groot
	 Director, Investment Fund for Health in Africa
	 Moderator: Delia Meth-Cohn
	 Director, Global Rethink
Friday 21 June 2013
18
11:00 -12:30	 Panel discussion
	 The Future of Impact Investing
	 Questioning the notion that there has to be a trade-off between achieving economic perfor-
mance and contributing to social progress, a rapidly growing number of actors are investing
in,orcreatingcompanies,organizationsorfundsthatwillgeneratebotheconomicandmeas-
urable social/environmental returns. Although relatively new, the market is growing in size
and sophistication.Who are the actors on this market?What are the criteria and requirements
for impact investment?What is its economic and social potential?
	 Wolfgang Hafenmayer
	 Managing Partner, LGT Venture Philanthropy
	 Nicolas Hazard
	 President, Comptoir de l’Innovation
	 Emmanuel de Lutzel
	 Vice President, Social Business, BNP Paribas
	 Martin Rohner
	 CEO, Alternative Bank
	 Moderator: Claude Smadja
	 President, Smadja & Smadja
12:45-14:45	 Luncheon
	 The inestimable value of“soft”values
	 Keynote speaker: Robin Cornelius
	 Founder and President, Switcher
	 Moderator: Claude Smadja
	 President, Smadja & Smadja
15:00-16:45	 Plenary
	 Corporate Social Responsibility as an integrated part of corporate
strategy even in tough economic times
	 Companies that succeed in incorporating their Corporate Social Responsibility (CSR) goals
into their overall corporate strategy reap reputational, human capital and operational bene-
fits. CSR is no longer a PR gimmick or a notion to be paid lip service to: it is becoming part of
risk mitigation and opportunity-seeking strategies. How can corporations ensure that CSR
genuinely becomes part of their organizations’culture and day-to-day operations? How can
triple bottom line reporting be used as a progress-tracking tool for corporate performance?
Can we prevent that CSR obligations should become lesser priorities in difficult times?
	 Bettina Ferdman-Guerrier
	 Founder & CEO, Phillias Foundation
	 Christian Leitz
	 Head, Corporate Responsibility Management, UBS
	 Jan Noterdaeme
	 Senior Advisor, CSR Europe
	 Karl Friedrich Scheufele
	 Co-President, Chopard
	 Moderator: Delia Meth-Cohn
	 Director, Global Rethink
19
17:00-18:30	 Closing plenary
	 Government/Business/Civil Society: Gettingtogetherto achieve sustain-
ability
	 There is a growing consensus that a number of issues are today too complex to be addressed
successfully only by government or by the business world and without the involvement, or
at least acquiescence of the civil society. Recent, global examples show that sustainable and
inclusive growth can best be achieved through genuine collaboration and a convergence of
objectives between government, business and civil society. What are the requirements to
create goal-oriented partnerships that contribute to economic progress and greater social
cohesion? How do we ensure that economic, social and environmental sustainability become
part of an integrated approach to inclusive prosperity?What rules of engagement will ensure
long-term win-win partnerships?
	 Father Nicolas Buttet
	 Founder, Philanthropos European Institute
	 Rob Cameron
	 Executive Director, SustainAbility
	 Mark Foster
	 Chairman, International Business Leaders Forum
	 Marcelo Palazzi
	 Harvard Advanced Leadership Fellow, Director, B Corporation, Europe
	 Moderator: DougalThomson
	 The Economist
18:30-18:45	 What do we take home? Key highlights and conclusions from the Summit
	 ChristopherWasserman
	 Founder and Chairman, The Zermatt Summit
Saturday 22 JUNE 2013
08:00-12:00	 The Matterhorn Leadership Excursion
	 RodrigoJordan
	 Chilean mountaineering and leadership expert
20
Several examples of cross-sector col-
laborations were discussed or referred
to in Zermatt.The index below lists the
ones that were discussed in greater
detail and provides contact points for
additionalinformationwhererelevant.
LifeStraw- Kenya
Carlos Braga
IMD
www.vestergaard-frandsen.com/
carbon-for-water/how-it-works.html
SMS for Life (Tanzania)
Michael Fuerst
Novartis
www.malaria.novartis.com/innovation/
sms-for-life
Jamii Bora Bank
Stephanie Schmidt
Ashoka
http://jamiiborabank.co.ke/about
Housing for All
Stephanie Schmidt
Ashoka
http://india.ashoka.org/sites/india/
files/AccesstoHousing.pdf
A.N.D.E.S social groceries network
Stephanie Schmidt
Ashoka
www.epiceries-solidaires.org
Making More Health
Stephanie Schmidt
Ashoka
www.makingmorehealth.org
SAP-Specialisterne
AnkaWittenberg
SAP
www.sap.com/news-reader/index.
epx?pressid=20938
GIZ- Arcelor Mittal
CharlotteWolff
Arcelo Mittal
www.giz.de/themen/en/29510.htm
WWF/H&MWater consumption in
the Brahmaputra river
Stuart Orr
WWF
http://wwf.panda.org/what_we_do/
how_we_work/businesses/corporate
_support/business_partners/handm.cfm
Juniper Network/Not For Sale
www.slideshare.net/fibonaccidesign/
juniper-networks-not-for-sale
Integrity Action/Google
Fredrik Galtung
Integrity Action
www.integrityaction.org/prashant/
integrity-action-winners-google-
global-impact-challenge-2013
Room to Read
Erin Ganju
Room to Read
www.roomtoread.org/page.aspx-
?pid=315
Riders for Health
Vinay Nagaraju
Riders for Health
www.riders.org/where-we-work/zambia
Switcher
Robin Cornelius
Swicher
www.respect-code.org/Main.action
For a deeper dive…
Royal DSM andWorldVision
(Tanzania)
http://wvi.org/pressrelease/royal-
dsm-world-vision-announce-partner-
ship-nourish-millions-world’s-most-
vulnerable
WFP, USAID, Pepsi (Ethiopia)
www.wfp.org/stories/wfp-pepsico-
and-usaid-fight-child-malnutrition-
ethiopia
Deutschen Gesellschaft für Inter-
nationale Zusammenarbeit (GIZ)
BASF, Cargill (Philippines)
www.giz.de/en/mediacenter/10790.
html
Syngenta Foundation
Safaricom (Kenya)
https://gc21.giz.de/ibt/GC21/
area=gc21/main/en/usr/modules/
gc21/ws-FLEXdialogue/info/ibt/
downloads/CaseStudyAdaptation_
SyngentaKenya.pdf
UNEP, Greenpeace
Unilever and Coca-Cola/Pepsi
www.refrigerantsnaturally.com/
statements/greenpeace.htm
21
In the competitive market economy, our present development model has shown a con-
tinuous ability to be creative and to increase wealth. At the same time there has been a
progressive blurring of its link with the global Common Good, and a significant loss of
our capacity to regulate it.
Economics have been unlinked from ethics and politics as financial capitalism tends to
nurture a speculative race where money serves to create more money without suffi-
ciently investing in the real economy, producing goods or services useful to people.
Destruction of the planet and of biodiversity, poverty and growing inequalities, situa-
tions of injustice, exclusion and alienation are some of the dysfunctions likely to have
significant negative consequences for future generations.
Our current model of development runs the risk of becoming unsustainable, losing its
moral and political legitimacy. In such a context we feel that change is necessary and it
is time to give ethical and political dimensions back to economic activity. Humanizing
globalization becomes a priority.
We strongly believe that enterprises are the main economic agent in society, creating
value through their production of jobs, of innovation, of goods and services and of
taxes. Business leaders – given the power of the corporation today – bear critical re-
sponsibility.They should accept to review, to rethink and broaden the purpose of their
enterprise, integrating a concern for the Common Good.
The Zermatt Summit
Manifesto
22
Professor Philippe deWoot
Professor Henri-Claude de Bettignies
We want to redefine the purpose or “rai-
son d’être” of business – We strongly be-
lieve that the “raison d’être”of an enterprise
must be anchored in its entrepreneurial
identity i.e. initiative, creativity and innova-
tion in small, medium and large business or-
ganizations.Furthermore,intoday’sborderless
world, entrepreneurship (and its potential to
innovate) can be more consciously oriented
toward the global Common Good and the
challengesofourtimeratherthanbeingsub-
ordinate to the vagaries of speculation.
We need to transform the business culture –
the perspective of the Zermatt Summit is the
transformation of our system according to
the following philosophy: finance to serve
the economy, economy to serve the Com-
mon Good, Common Good to serve the per-
son. This new perspective should help the
decision-takers to revisit the “raison d’être” of
the business firm and embed ethical and po-
litical dimensions in their strategies. To con-
tribute to this paradigm shift, economic and
financial participants will have to re-invent
their corporate culture to find a new balance
between its key roles: entrepreneurship,
leadershipandstatesmanship.CorporateSo-
cial Responsibility and Corporate Social Val-
ues practices are emerging in many sectors
and are first steps in the right direction.
We want to stimulate Entrepreneurship –
We believe that an enterprise has to enhance
its entrepreneurial action, to be creative in a
real world of goods and services, as opposed
to the mere logic of short term financial and
quarterly results. It is mainly through its en-
trepreneurial capacity that it can serve the
Common Good and contribute to face the
challenges ahead. Shareholder value is but
one of several measures of business perfor-
mance. Defining the“raison d’être”of the cor-
porate enterprise in terms of economic, hu-
man and societal development will influence
its strategies, its structures and its managerial
behaviour as well as its specific contribution
towards the Common Good. Business leaders
and managers will pay greater attention to
the societal consequences of their decisions,
to the “externalities” of their actions and to
the problems of our time which they could
helpsolvebytheirentrepreneurialinitiatives.
The creative capacity of business will also
gain in addressing needs of those at the“bot-
tom of the pyramid”, by literally reaching out
to assist the poorest and contributing to lift
them from extreme poverty. This encounter
and ensuing actions can change its perspec-
tive; transform its mind-set and its corporate
culture.
We want to promote a new definition of
Leadership – Management is no longer
enough. We want to put ethics back into the
heart of economic activity.What we need are
notonlymanagersoradministratorsbutanew
type of leadership: leaders as “sense givers”
and “sense makers”, leaders as “architects of
corporate conscience”1
, leaders as ethical
stewards. If one narrowly defines manage-
ment, one might say that it consists above all
of the administration of things: objectives,
budgets, strategic analysis, plans, methods,
procedures. But leadership, as the art of di-
recting human reality, influences, motivates,
communicates and induces participation.
We need “servant leaders” able to convince
people of the values we collectively wish to
implement, willing to assume full responsi-
bility for their decisions and actions and pre-
paredtoactuallyservethecommunitiesthey
are in charge of. Such leadership relies on
moral authority through which ethics are
passed down into the organization.
Giving back economic activity its
ethical and political dimensions.
1
Kenneth Goodpaster
23
Wewanttoplayamoreresponsibleroleinthe
emergence of a new culture of co-operation,
negotiation and debate. Addressing com-
plexity, paradoxes and conflicts requires put-
ting aside the usual unilateral business think-
ing.Themulti-stakeholdercompanywillhave
to adopt a much more political approach if it
wants to become socially responsible. By
broadening the political dimension of our
strategieswewillincreaseourcollectiveability
to transform the economic system into a
moresustainablemodel,topreservetheearth,
better share its resources and help reduce
poverty and inequality.
Can leaders transform companies and the
system that they lead without transforming
themselves? Changes in structures will not
happen“on command”. They will only come
to life if they are driven from within, by people
of good will.
Weneedtorelyuponanddeveloptheper-
son as a whole – At a time when – beyond
rationality – we talk about emotional and
spiritual intelligence, let us remember that
nearly every civilisation offers a vision of man
that includes three dimensions. This vision
goes beyond mere rationality to open up the
less tangible but more profound realities of
the heart and the soul. By trying to unify the
whole person we will liberate new energies
for our personal development and acquire
greater maturity in our relations with others.
Responsible leadership implies the whole
person commitment.
We want to let our spirituality guide us – It
isourconscienceandourspiritualdimension
that invite us to become more humane and
to develop a world with more freedom, jus-
tice and peace. In considering the evolution
of the universe, one cannot help but ques-
tion this movement, this momentum, which
drives matter to life and life to man, being
2
Berten, I., L’enseignement social de l’Eglise: bilan et perspectives (The social teaching of the Church: balance and perspectives),
in Berten, Buekens and Martinez, Enterrée, la doctrine sociale ? (Is social doctrine buried ?) Bruxelles, Lumen Vitae, 2009, pp 15-37
3
Ibidem
WewanttoencourageStatesmanship–As
leaders we recognize societal interdepend-
ence and the urgency to shift to a more sus-
tainable model of development. To facilitate
its emergence, we have to participate actively
in the research and definition of the Com-
mon Good of our global world and try to in-
corporate it into our sphere of activity. We
have to play a responsible role in the emer-
gence of a new culture of debate, concerta-
tionandco-operationthatwouldreplacethe
current simple“lobbying”, We need to play a
more active role in the search and creation of
new forms of governance.
In this perspective we will add to our role of
entrepreneurs and leaders that of statesmen
willing to contribute to the debate on global
CommonGood.Statesmanshipisthewaywe
can give back to our business activity its po-
litical dimension.
The Common Good can be defined as the set
of social conditions that allow all people and
all groups that make up society to achieve
their own accomplishments in the most pos-
itive manner.2
If one accepts this definition,
the criterion of the Common Good presents
a fundamental principle of moral judgement
of the organisation of a society, including the
global system.3
The United Nations suggests
the concept of sustainable development as
defined in the Brundtland Report:“Sustaina-
ble development is development that meets
the needs of the present without compro-
mising the ability of future generations to
meet their own needs.”
Business statesmanship goes further. It ad-
dressestherealpoliticalquestionofourtime:
what kind of world do we want to build to-
gether with the vast resources and the skills
at our disposal. In entrepreneurial terms it
can be translated as how shall we use our
creative capabilities to build a better world?
We need to change
hearts and minds
24
capable of freedom, creativity, love and won-
derment. Are there not elements here to be
utilised as a guide, a pathway, a positive drift
towards what might be called the humanisa-
tion of the world? Would our spirituality not
be this guide, this call to life, this impetus for
love, this light that illuminates the road and
invites us, despite the limits of evil, suffering
and death, to become and remain alive by
adhering only to the deeper values? Do we
use enough of the extraordinary power of
transformation that spirituality can give us
when it is lived out in all aspects of our life?
We want to transform the relationship
into encounter – We must dare to transform
relationships into encounters.The encounter
commits the heart. It is the personalised rela-
tionship, on an equal and reciprocal footing,
without mediation of money or power. It is
the place of mutual acceptance, listening,
watching, the place where one can be“called
byhisname”,acceptingitsfragility,recognising
theother,makingitexist,helpingittostandup.
We need to accept being fragile and cou-
rageous at the same time – Introducing
more humanity implies recognising oneself
not only as creator, but also as being fragile
in relation to each other. It is sometimes dif-
ficult for a creative entrepreneurial leader.
The real hero is not the cosmic hero of myths
orromancebutonewhoco-existswithothers
all the while being open to his own fear of
finitude as well as to that of others.4
Formanycivilizationscourageisamajorvirtue,
but today it differs from the traditional cour-
ageofancientheroes.Itshouldnotbesought
primarily for personal success, prestige or
“glory” but for the coming of a world of jus-
tice,peaceandlove.Rootedinahumannature
that knows fragility, courage then becomes a
continuous, humble, patient and concrete
existential effort. It can also be seen in terms
4. Arnsperger, Ch., Critique de l’existence capitaliste, Paris, Cerf, 2005
of initiative and creativity, as“the courage to
begin”, the courage to undertake.
We want to become an international plat-
formofreference–Bringingtogetherstake-
holders for the purpose of adding more hu-
manity into the process of globalization and
makingpracticalrecommendationstoleaders
for an economy serving the human person
and the Common Good.
We will draw on the works of our members
and their various networks to create, gather
and refine innovative experiments, concepts
and research results capable of supporting
andenlighteningourmainthemes.Ourambi-
tionistobecomeathoughtprovokingdriving
force and to build a utopia that will allow us
to be pulled by the future instead of being
pushed by the past.
But if there is a sense of what is real… there
must be something that one might call the
sense of the possible… a flight of fancy, a will
to build, a conscious utopia which, far from
fearing reality, treats it simply as a task and a
perpetual reinvention (Robert Musil).
Philippe deWoot and
Henri-Claude de Bettignies
25
Archduchess of Austria Marie-Hélène
Triple A Gestion S.A.
Archduke of Austria Rudolf
Triple A Gestion S.A.
Barbot-Maire Stephane
Smadja & Smadja
Bellemo Giulia
Zermatt Summit Foundation
Boixader Lu
OSRé - Fondation Résonnance
Braga Maria Isabel
IMD
Brown Serena
KPMG International
Brunner Stephan
ghost.company
Buttet Nicolas
Eucharistein Fraternity
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Zermatt Summit Executive Summary 2013

  • 1. www.zermattsummit.org Executive Summary 4th Zermatt Summit - June 20 to 21, 2013 Business & NGOs: Building Partnerships of Winners
  • 2. Dear Friends, dear Partners, In the recent years, we have all experienced the drastic change created by globalization in the economic, social and political fabrics of societies. A widening wealth distribution gap, a lack of long-term employability, climate change, in- creasing volatility in the global economy, growing skepticism and even suspicion towards existing institutions…These are just a few examples of the challenges we are facing.The re- sponses so far have been less than adequate. It is now time to act; time for a more compre- hensive, holistic approach integrating the contribution that all key players – government, business, civil society - need to bring to the table. Compartmentalizing problems used to be a successful approach in many cases. However, some of the issues we are facing today are so complex that it is impossible to address them successfullywithouttakingintoaccountthewholepicture;withoutlookingatthewaysissues impact one another. A key illustration of this new paradigm is that it is now nearly impossible to look at economic activity, to make economic or corporate policy decisions, without consideration for the social, human, environmental impact of such decisions. In the same way, while fully recognizing the logic and objectives of business, we increasingly realize that there is more than “just” a business dimension to the activities of Multinational corporations. Putitsimply:governments,corporations,individualsneedtoembracenewperspectives,new ways of approaching issues, new operating processes. Up to the last part of the 20th century, government and business – the state and the private sector – were mostly the two key actors, the movers and the shakers.The emergence of civil society as a very potent and increasingly assertive force has been a major new development brought by globalization. In the same way – also as a result of globalization – theWestern world absolute prominence on the global scene is now being replaced by a new power architecture in which emerging market countries are more and more asserting their voices, their priorities and their expectations. More than ever, we need to put the human being back at the very center of economic activity. We have to integrate the concepts of finance serving the economy, economy serving the common good and the common good serving the human being. We also have to recognize that business and civil society cannot exist and operate at best in a silo mode, at worst in confrontation. They increasingly need to find efficient collaborative formula that will respect their respective specific roles. In the same way, while the profit and non-profit sectors have their own logic, they need to be seen more and more as complemen- tary in their mission as well as with respect to the domains they cover. “On behalf of the Board, I am proud to present this Summary of the 4th edition of the Zermatt Summit.This year the Zermatt Summit paved concrete paths towards Changing Hearts and Minds with its high quality speakers and rich content, reaffirming that not only new leader- ship is possible but that dialogue is possible between civil society and business fulfilling the aims of Zermatt Summit Declaration and Manifesto.” 2
  • 3. The Rana Plaza tragedy in Dakha, Bangladesh – 1,300 workers dead under the rubles of a grossly inadequate building, has forced major clothing brands to audit their supply chains in order to ensure greater safety and better working conditions for the people at the bottom of the global supply chain.These 1,300 deaths, and all those that had gone unnoticed before by the international media, could – and should – have been avoided if there had been a better collaboration between the corporations and the NGOs involved. And if governments had not waited until the tragedy happened to stop turning a blind eye to unacceptable abuses. The overall theme of this fourth Zermatt Summit – building a partnership of winners between NGOs and business – aimed at encouraging a broader and more productive action-oriented dialogue between actors who have yet to move from suspicion, or awkward collaboration, to a genuine mode of partnership taking different forms. These partnerships are in line with two guiding principles: the need to put the human being at the center of the economic process, and the role that hybrid organizations bringing together the profit and non-profit dimension can now play in creating more inclusive prosperity. Our objective during our discussions was to make the Zermatt Summit an enabler of a broader and more successful collaboration between business and civil society – and the platform of reference when it comes to creating a more, sustainable and human globalization. “The current crisis is not only economic and financial but it is rooted in an ethical and anthropo- logical crisis. Concern with the idols of power, money and profit rather than with the value of the humanpersonhasbecomeabasicoperatingnormandcriticalcriteriafororganizations.Wehave forgotten something important that is over and above business logic and market parameters. That “something” is men and women in as much as they are human beings by virtue of their pro- found dignity: we need to offer them the possibility of a dignified life actively participating in the Common Good” . With the Zermatt Foundation we strive to serve rather than be served and to adopt everyday practices which prove that another path is possible.We invite you to join us on this path next year on the 26th and 27th June 2014 for another giant step in the Zermatt Summit direction. Again, on behalf of the Board, I would like to thank all the actors of this edition of the Zermatt Summit, the speakers, our sponsors as well as our organization team who worked so hard to make this event a success. ChristopherWasserman Founder, President of the Board and CEO – Zermatt Summit 3
  • 4. Declaration on the Common Good to Humanize Globalization Jean-René Fournier HI and RH Archiduke Rudolf of Austria of Habsburg-Lorraine Daniel Lauber Antonin Pujos Théodore Roosevelt Malloch Father Nicolas Buttet Nicolas Michel ChristopherWasserman We, the members of the Zermatt Summit Foundation Board*, signatories of this Declaration, * 4
  • 5. Affirm that the dignity of the human person and the inviolability of his/her rights must be the foundation for relations between the cit- izens of the world and that respect for these two principles must prompt States, other na- tional and international public authorities, civilsocietyandeconomicoperatorstogovern decisions and actions resolutely towards the Common Good; Point out that human dignity is the principle from which all Human Rights stem, and that thisprincipleisinvokedbymanyConventions and Universal or Multilateral Declarations, as well as by many national Constitutions; Support the values of freedom, equality, sol- idarity, subsidiarity and respect for creation, and affirm the necessity of protecting the cultural diversity of humankind; Are convinced that the resolution of the present crisis depends on greater accept- ance of responsibility and determined com- mitment by each individual to promote the Common Good in a spirit of service and love. This appeal is all the more urgent in that the great challenges facing humanity are be- coming more threatening; Note that social market economy as well as free enterprise have enabled humanity to makerealprogressandhavemadegoodsand services available to an ever greater number of people; Would like to see an economy driven by the concern for the Common Good supported by financial mechanisms at the service of the real economy which are keen to foster develop- ment that respects the human person, in par- ticularthosewhoaremostvulnerable,andthat cares for the natural world and the ecosystem; Reaffirm that the exercise of power is legiti- mized by seeking the Common Good, by the humanization of social life and by respect for fundamental freedom, in particular freedom of conscience and freedom of worship; Deplore that exclusive desire for profit and thirstforpower,whichisattherootofsomuch human drama, hinders the development of the whole man and of all men to the full; Encourage, consequently, each and every person, particularly those who exercise eco- nomic or political power and who are active- ly involved in all levels of society in both the public and private sectors, to serve the Com- mon Good of the whole human family with courage and boldness and to actively pro- mote peace in the world; Recommend that firm and effective refer- ence be made as widely and constantly as possible to the Common Good as the guid- ing principle for humanity to commit to reg- ulating its activities with greater solidarity while considering each person as an end and not as a means; Propose to share with all women and men of good will our reflections on the importance oftheCommonGoodbyvirtueofwhicheach one is called to see his or her own good in the good of others; and our conviction that, by making the Common Good the guide for our actions and the criterion for our decisions, we can individually and collectively work for civ- ilization and progress while respecting our human nature and nature generally, with a view to achieving shared prosperity, sustain- able development, peaceful coexistence and, ultimately, the realization of our natural and universal aspiration to happiness; Invite all women and men of good will to commit themselves to the Common Good and to the signing of this Declaration. 5 JoinusbysigningtheDeclarationonlineatwwww.zermattsummit.org
  • 6. Civil society is now a diverse, vibrant, very in- fluentialplayerthatcannolongerbeignored. Two important developments are happening: – Civil society has to be seen increasingly not only at the third player - along with business and government - but also as the glue between business and government. – Business and NGOs cannot be seen any moreasseparaterealities.Inmanydomains the lines have been blurred between the two.This is illustrated by the emergence of new types of companies – hybrid corpo- rationswhicharecreatedforprofitbutalso forPurpose.Newformsofincorporationsin the USA are reflecting this new reality. Socialentrepreneurshipexpressesthisreality but we need to find ways for social entrepre- neurs to be able to scale up their concept. Whatwearelookingat,here,aresocialentre- preneurs who are mission-driven, have a strategic approach, are resourceful be- cause money is not always available in the amounts needed, and who have at the same time the notion of profitability and the ability to integrate new measurements beyond wealth creation towards talent crea- tion, social capital creation. These developments imply a rethinking of therelationshipbetweenbusinessandNGOs, the setting – or the broadening – of new rules of engagement. In that respect, we need to address the crucial issue of trust between the two – and we need to realize that building trust is a process that takes time and pa- tience.BusinessesaswellasNGOsneedtorid themselves of of the “unconscious arrogance” that sometimes color their behavior and their decisions, the“I know how to deal with it”syndrome. If we want to achieve a more efficient collab- orationbetweenbusinessandNGOsweneed a much sharper focus on where when and howthis collaboration can provide optimum results, a full clarity on each party’s agenda and objectives. The withdrawal of the state from some areas where it had exclusive responsibility until re- cently has broadened the potential domains for collaboration between business and NGO and heightened the necessity for this collab- oration. Business and NGOs need to focus more on a setofissuesthatarecrucialforensuringamore efficient collaboration: – Legitimacy of NGOs and their modus op- erandi but also the broader legitimacy of the corporation. – Transparency – who funds what and for what purpose? – Accountabilityintermsofresultsachieved. The explosion of social media has also added anewdimensiontotherelationshipbetween business and NGOs as it has inverted the pyr- amid in some ways. It is no longer only money thatspeaksoutloud.Civilsocietyhasfoundan incredibly efficientamplifier thatnobusiness or government can ignore. With the spread ofsocialmedia,businessesareunderincreas- ing pressure to be more ethical. However,asbusinessandNGOstrytoachieve a better collaboration the role of the state cannot be underestimated when it comes to set the major orientations and create the overall framework for activity. We need to take into account that sovereign states are not the sole players anymore in the interna- Some highlights from the fourth edition 6
  • 7. tional community. Non-state actors are in- creasingly active, contributing to shaping the international legal order. States had to learn to work with civil society even before business had to do it. So our objective should be to leverage and multiply a number of successful examples where government/business/civil society have been acting in convergence like the Kimberly Process to deal with the“blood dia- monds”issue,ortheGlobalCompactinitiated by the UN.We should aim at creating a whole web of such examples of convergence of government/business/civil society efforts to- wards addressing some global issues. This might be a piecemeal approach but this wouldhelpadvancetheagendaintheabsence of global formal agreements that are becom- ing more and more difficult to achieve as we have seen with the failure of the Doha Round ortheverymeagerresultsoftheRio+20Sum- mit on climate change. We see a lack of leadership – on the political side–toaddresstheglobalissuesthatweare facing – as this is illustrated for example with respect to the climate change challenge. We cannot wait for global leaders to make deci- sions that will then prompt us to act. This leads to one unavoidable conclusion: There is a need to push from the bottom to initiate the changes that are so necessary. This requires new kinds of leaders, globally responsible leaders whether at the head of corporationsorofNGOs–anditisworthnot- ing that globally responsible leadership as a notion did not exist 10 years ago. What does this kind of leadership require? – Personal level transformation of the heart and soul – Transformation at the level of the corpora- tion, which might involves retrofitting the existing organization – Being engaged in the transformation of the System In that respect, we all realize that despite all the progress made these last few years Cor- porate Social Responsibility is not yet fully embedded in many corporations, that it re- mains vulnerable to the uncertainties of the business cycle. We are just at the beginning of this process which will take time. In the same way, we have now the tools for monitoring and measuring performance in ensuring greater transparency and account- ability. It is for us to ensure that these tools are used in a very assertive way. All this gets back to the notion of transforma- tion,ofredefiningthefinalityofeconomicand business activity, of optimizing the outcomes of economic activity for the human being. This is a process that we need to engage into because business as usual is not enough anymore as the trust deficit towards busi- ness leaders and corporation shows in a very dramatic way. Very tellingly, we need to draw the lessons from the fact that this trust deficit is not the result of missing economic or business tar- gets but is generated by corporations failing to put customers ahead of profit, by how em- ployeesaretreated,bylackoftransparencyin the supply chain. Increasingly, it is the failure 7
  • 8. on the part of business leaders and corpora- tions on the so-called soft issues that is gen- erating this lack of trust. This leads to a very important point that we need to find a way to translate into our daily approach to business. The smart thing to do is not to try to “maximize” the return but to“optimize”it. This change of mindset, this heart and mind transformation, has to go beyond compli- ance in the narrow, technical, legal meaning of the term. Because technical or legal com- pliance does not address the key question of “what are my values and how do they con- nect to the impact that my decisions and ac- tivities have on other people?” It is only by redefining the raison d’être of the corporation in a broader sense, that we can playourroleasleadersinaddressingthecon- tradictory pressures that we are confronted with and that we can remain ourselves and help align management on the long-term view ofthewherethecorporationshouldbeandthe values it needs to abide to and help transmit. This much needed change of mindset will take time. It is a process. And what we are doinghere is a step inthat direction.Itisa process in which we are all – here – in- volved and to which we are all – here – contributing. Cross-sector collaborations are increasingly perceivedtobeeffectivecatalystsofeconomic, environmental and social sustainability. Yet, thesepartnershipsfaceapotentialcredibility gap.The number of multi-stakeholder collab- orations has increased significantly over the recent years, but their overall impact is not yet on a par with the magnitude of the global challenges our society faces. In addition, the relationships between the parties involved – business, civil society representatives and governmental agencies – have long been characterized by mutual suspicion. Howcanoneenhancetrustbetweenunnatural partners that have vastly different agendas and operating cultures? Around what con- sensus can effective collaboration be articu- lated? What are the organizational models and accountability channels that maximize the potential of delivering an effective com- bination of economic and social value to the community at large? This is why we already invite you to join us for the 5th edition of the Zermatt Summit, next year June 26 to 27, 2014. 8
  • 9. Globalization and technological progress have unlocked individual potential and giv- en unprecedented power to civil society.The latter is diverse, vibrant and highly influen- tial. Acting as “glue between the public and the private sectors”, it plays an active role in the formulation of a “shared vision” for the future and in the defense of the values asso- ciated with the common good. Civil society representatives are also actively involved in the development of social ven- tures and new formats for cross-sector col- laboration. As a result, one witnesses a blur- ring of the lines between identities and traditional organizational models. For exam- ple, employees of large corporations are also members of civil society who sometimes act as social entrepreneurs within more tradi- tional business organizations. A rapidly evolving playing field AtJamiiBoraBank,oneofthefastestgrowingbanks in Kenya, all the staff are current or ex-clients. Iden- tities have become plural and they often overlap. Organizational and sectoral barriers are also disap- pearing: international banks like BNP Paribas or Morgan Stanley now have microfinance depart- mentsalongwithanimpactinvestmentofferingfor their clients. Socialentrepreneurshipisoneofthemanyreflections of civil society’s growing appetite for the articulation of innovative solutions to pressing social needs. Socialentrepreneursarefullyawarethattheinvolve- ment of other actors in their projects may allow them to leverage additional resources. “Social Entrepreneurship is a bottom-up movement […] that seeks to come up with a business-based, sustainable answer to social issues” Arnaud Mourot CEO, Europe, Ashoka “Social entrepreneurship is not a charity with a revenue stream. It is about reforming a system that creates negative externalities.” Soushiant Zanganehpour Head of Strategy & Operations, Skoll Center for Social Entrepreneurship, Oxford University 9
  • 10. lotteWolff, Group Head of Corporate Respon- sibility mentioned, that meant making the decision to become in Liberia a capacity building partner for the State and commit- tingto“helpputthecountrybackinbusiness”3 after Liberia’s second civil war. For Novartis, it involved creating a drug supply chain inTan- zania to help ensure its medicine could reach the rural patients that needed them. Agreeing to a partnership is not the same as delivering one. As Rodrigo Jordan, Vertical, highlighted, business is often viewed as“un- consciously arrogant”. Such perceptions are a reflection of important differences in oper- ating cultures and in long-term agendas. In addition, corporations and NGOs both face important trust and legitimacy issues. As Alexander Fink, CEO Edelman Switzerland, summed it up, this largely results from a per- ceived failure – especially on the part of the privatesector–tomeetpublicexpectations.4 With globalization, large corporations are in- creasinglyperceivedtohavebrokenthesocial contract, thereby reinforcing the notion that concepts such as“shared value”or“win-win” are fiction. Cross-sector partnerships carry a series of financial, reputational, and operational risks for the parties involved.When Heineken first decided to provide antiretroviral therapy its employees and their families in Sub-Saharan Africa,itlaunchedatreatmentprogramwith- out knowing what the overall costs to the company would be. Cross-sector partnerships allow for a unique combination of skill-sets and capabilities. Governments bring scaling potential, and sometimes a long track record of collabora- tion with civil society. Cities and regions are particularly effective partners that provide incubation and supporting frameworks to an increasing number of social ventures. InpartsoftheworldwheretheStateandgov- ernmental institutions are more fragile, the dynamic of the relationship differs somewhat but remains of equal strategic importance. Business sector participation facilitates ac- cess to funding and to infrastructures that are required for a project to come to scale. Increasingly, business, civil society and gov- ernmental agencies recognize the benefits they can derive from effective cross-sector partnerships. For businesses, participation in social ventures increases the attractiveness of their organizations for recent graduates and helpsdrivecurrentemployeeengagement.In emerging economies, acting as the develop- ment partner of a country may also provide corporations first-mover advantage. NGOs and social entrepreneurs find themselves in a position to act as a “catalyst for change”1 as they provide business and governments with privileged insights into innovative approach- es to better product/service delivery. For the private sector, scaling such innova- tions may unlock previously untapped mar- kets. For governments, there may be oppor- tunitiestocurbpublicspending,increasethe quality of services provided to constituents, anddelegatetheprovisionofpublicservices. Thescopeofmulti-stakeholdercollaborations has expanded significantly over the recent years. For companies, it often implies going beyond traditional business activities and embracing the notion of “extended leader- ship”2 . In the case of Arcelor Mittal, as Char- New bases for value creation? Cross-sector partner- ships are rife with execution challenges 10 1 Erin Ganju, Co-Founder and CEO, Room to Read 2 The Regeneration Roadmap, SustainAbility http://theregenerationroadmap.com/files/reports/Changing-Tack.pdf, last accessed July 3, 2013 3 Charlotte Wolff, General Manager, Group Head of Corporate Responsibility, Arcelor Mittal 4 2013 Edelman Trust Barometer – additional information available upon request
  • 11. As SAP decided to partner with NGO Special- isterne and hire autistic people for its soft- ware-testingdepartment,ithadtoweighthe risks of being accused of merely looking for a source of cheap labor. Private sector actors also need to be strategic in selecting the NGOs they want to work with. Failing to carry out proper due diligence and choosing an organization of the wrong size may result in scalingasymmetriesthatthreatentheoverall outcome of the venture. The successful delivery of a combination of economic and social value that is scalable is complex and difficult to track. As Michael FuerstfromNovartis,stressed,measuringsocial impact in the health sector is a delicate exer- cise. Attributing social impact is difficult: is the doctor making the diagnosis to be cred- ited or the infrastructure through which the drugs are made available to the patients? Probably both, but in what proportions? The question is all the more important as it has governance implications.Viable partner- shipsrequireappropriateincentivesschemes for all the actors involved. In addition, tradi- tional indicators can fail to be an accurate gauge of the success of social innovations. In the case of microfinance for example, the key evaluation criteria should not be repayment rateandprofitability,buttherateofgraduation to SME status of the loan recipients – which remains very low… An important underlying issue is that there are no established bench- marks that assess sustainability. Zermatt Summit participants highlighted that the lack of a common language be- tween business and civil society representa- tives remains the biggest challenge to the success of cross-sector collaborations. As Carlos Braga from IMD put it, business and NGOs“lie in the same bed, but they have dif- ferent dreams”. Arnaud Mourot from Ashoka, called for“a change in the conversation”. Differences in terminology are not only a po- tentialchallengetotheexecutionofaventure, they also point to conflicting views of its suc- cess. Quoting research conducted at Oxford University, Bérangère Magarinos-Ruchat from FirmenichandChairpersonoftheGlobalCom- pactNetworkSwitzerlandstressedthat“client” and“beneficiary”arenotinterchangeableterms; theyunderpindifferencesinuserempowerment and overall goals. It is precisely that difference that prompted Ashoka fellow Jean-Baptiste Bapst to create a network of social groceries allowing its users tore-allocatesomeoftheireconomicresources towards projects important to them. The goaloftheprojectwasnotthemereprovision of affordable food products but included sev- eral strategies to empower individuals to exe- cute on personal aspirations. Todate,cross-sectorpartnershipsstilllacksuf- ficient incubating support and the specific platforms they require in order to develop successfully.ForMarkFoster,Chairmanofthe International Business Leaders’Forum, this is likely due to insufficient funding. Other Zer- matt Summit participants contended that there should be more direct involvement from business schools in the creation of a dedicated support system. 11
  • 12. What are the building blocks of successful co-creationandothermulti-stakeholderven- tures? Such collaborations require the clear formulation of common goals, strong gov- ernance,clearchannelsofaccountabilityand organizational transparency. It is the combi- nation of these elements that determines legitimacy in the eyes of the public. This rec- ognition has become essential because of the unprecedented influence acquired by civil society through social media. As Marlyn Tadros Founding President & Executive Di- rector, Virtual Activism and Professor at the New England Institute of Art emphasized, social media platforms have become the“ul- timate amplifier”that can make or break any organization’s credibility. Effectivecross-sectorcollaborativeworkcalls for “globally responsible leaders”, a phrase that was coined only ten years ago, Mark Drewell, CEO Globally Responsible Leader- shipInitiative,pointedout.Whatcharacterizes thisnewgenerationofdecisionmakers?They have an extended view of the scope of their responsibilities; their strategy is focused on optimizing profit rather than maximizing it. Overall,theyassesstheirdecisionsagainstadif- ferentsetofcriteriathatinclude:whoisaffected by what I do? What kind of suffering could I be “co-creating”? The grooming of these deci- sion-makers and their counterparts requires a significant amount of action-based learning. A roadmap to stronger, more effective and resilient multi-stakeholder partnerships Many Zermatt Summit participants empha- sizedthetransformativepowerofexperience and the value of programs such as the Inter- national Business Leaders’Forum’s“Crossing Borders”or“Leaders’Quest”that allow mem- bers of senior management to go beyond a merelyconceptualapproachofsustainability related issues. More broadly, educational in- stitutions need to empower the younger generations with a new combination of skill- sets that is not just technological. Jean-Louis Homé, Former Chairman, Fair- trade International, President MDIN, stressed the crucial importance of investing in em- powering the end-users of an infrastructure/ service and of involving the public sector – where pertinent – in the implementation process. Carlos Braga from IMD concurred that failure to do so may mean the demise of aproject.Hethusexplainedthatthedistribu- tion of LifeStraw individual water filters in Kenya was not successful because people were not given the opportunity to appropri- ate this innovation and integrate it into their daily habits. Personal engagement from senior business leaders is another key driver of effective cross-sector partnerships. Figures like Peter Brabeck-Letmathe Chairman of Nestlé or Peter Voser, CEO of Royal Dutch Shell, have played central roles in shaping their organi- zations’contributions to addressing environ- mental issues. Yet, involvement from the top leadership is not effective if mid-level management does notactivelybackitup,BettinaFerdman-Guer- rier, Founder & CEO Philias Foundation, high- lighted. As Jan Noterdaeme from CSR Europe putit,forittoyieldsizeableresults,CSRneeds to be closely related to the specific area of ex- pertise of an organization, and“embedded in the DNA of company”. “The power of social entrepre- neurs does not lie in their P&L, but in their vision of society” Arnaud Mourot CEO, Europe, Ashoka 12
  • 13. The current 18-29 generation presents an unprecedented strategic opportunity and untapped body of talent for business and civil society organizations alike. They are the “first globals”, and they show strong interest in social and environmental issues. Indeed, surveys indicate they will agree to a 15% pay cut to work for a company whose social mis- sion they strongly identify with. Several Zermatt Summit participants also highlighted that the only way out of the trust deficit crisis that business – and to a certain extent, civil society organizations – face im- plies greater transparency and clearer chains of accountability. CSR Departments should be able to act as the“internal NGO”within a business organization, and have, as Jan Noterdaeme put it, the same amount of free- dom as a King’s fool. Organizational models also need to evolve. Sebastian Winkler from the Global Footprint Network,describedthecurrentsystemasbe- ing governed by the “3 Cs” (command, con- trol and compliance). He contended that self-regulation and compliance are not enough and called for new guiding princi- ples, which he described as the“3Is”: innova- tion, integration and incentives. Fredrik Galtung from Integrity Action also under- lined the limits of the compliance model and advocated for the development of an alter- native.Through tools like the“fix rate”which aim to provide an objective and reliable measure of organizational transparency, his organization thus advocates for the imple- mentation of a“proactive integrity model”. Claude Smadja highlighted the need for a culturalchangeintherhetoriccurrentlyused to refer to sustainability issues. We should abandon the Malthusian discourse that has beendominantsincethecreationoftheClub of Rome and start highlighting all the tech- nological capabilities that can be used to ad- dress current problems. Renat Heuberger, CEO South Pole Carbon Asset Management, agreed that people“don’t want to listen to a sad story”, and that communication around environmental issues should remain ap- proachable and positive. Lastly and perhaps most importantly, Zer- mattSummitparticipantsstressedthatsocial and environmental issues will start being ad- dressed more effectively by the private sec- tor once it is in a position to accurately price the cost of not doing so. Triple bottom-line reporting and the development of impact investing are a clear indication of progress in this direction. Consumers are increasingly willing to pay a premium for socially respon- sible products and services, but the accurate pricing still remains a challenge today. Final conversations in Zermatt emphasized the need to “start mobilizing from within”. Our generation finds itself faced with the challenge of re-articulating moral values and economic priorities. This implies restoring the political dimension of business and put- ting the human being back at the center of the economic process. As Mark Foster from International Business Leaders Forum, summa- rized, we find ourselves at a “dangerous mo- ment”,with“alongjourneyofawarenessahead”. “Enlightened self-interest should replace“Greed is Good”. Mohan Munasinghe Nobel Peace Prize co-recipient 13
  • 14. 09:00-09:10 Welcome and opening remarks ChristopherWasserman Founder & Chairman, The Zermatt Summit 09:10-10:30 Opening plenary Business and civil society: rethinking the terms of the relationship After a period of mutual suspicion and controversies, relationship patterns between business and the third sector have evolved towards the recognition that collaborative strategies can be mutually beneficial and are powerful tools to address sustainability issues. However, misperceptions and unmet expectations still mar the business-NGO relationship.What issues need to be addressed to achieve smoother, more successful civil society-corporate engage- ments?What should be the rules of engagement between business and civil society? How can partnerships involving various stakeholders remain accountable, transparent, and focused on specific, measurable issues? Serena Brown Global Development Initiative Senior Manager, KPMG Rodrigo Jordan Mountaineer and President, Vertical S.A. Nicolas Michel Professor of International Law, University of Geneva, and Geneva Graduate Institute of International and Development Studies Danny Sriskandarajah Secretary General, World Alliance for Civic Participation MarlynTadros Founding President & Executive Director, Virtual Activism, Professor of Computer Science at the New England Institute of Art Moderator: Claude Smadja President, Smadja & Smadja 11:00-12:30 Debate Social entrepreneurship and the business of positive social change Globalization and technological advances have unlocked individuals’ potential to tackle societalneedseffectively. Challengingthetraditionalnotionofprofitability,anewgeneration of mission-driven entrepreneurs is using business skills and expertise to address social and ecologicalissues.Whatinnovativebusinessmodelsarethesenewagentsofchangedeveloping? Are there limitations to social entrepreneurship’s impact potential? In what ways can social entrepreneurship be a force for change at the economic and social levels? Gustavo Montero Founding Partner, GAM Consulting Group Arnaud Mourot CEO, Europe, Ashoka Soushiant Zanganehpour Head of Strategy & Operations, Skoll Center for Social Entrepreneurship, Oxford University Moderator:Yaël Smadja President, Smadja & Smadja USA Program Thursday 20 June 2013 14
  • 15. 11:00-12:30 Panel discussion Business and civil society: championing social innovation Over the recent years, governmental agencies have been opening up public services to new types of providers. In some instances, service provision has been partially or fully delegated. In others, governments have supported partnerships with private capital, social entrepre- neurs and the public to foster more efficient and economical approaches to pressing social needs. What can business-NGO partnerships do better than governments? How can they add valuetogovernment-providedservices?Howcanwecreate“SiliconValleysofsocialinnovation”? Are there specific areas where business-NGO intervention achieves best results? Berangère Magarinos-Ruchat Director of Sustainability Partnerships, Firmenich/ Representative, Global Compact Switzerland Carlos Braga Professor of International Political Economy, Director, the Evian Group Michael Fuerst Corporate Responsibility Manager, Novartis Moderator: Delia Meth-Cohn Director, Global Rethink 12:45-14:15 Working lunch Win-win co-creations between the social and business sectors What would the world look like if the barriers between the business, social and public spheres were torn down? How can economic performance, social impact and innovation be conciliated tocreateopportunitiesforscalablesocialandbusinessco-creations?Discoverconcreteexamples ofhybridcollaborationsandcontributetothedefinitionofinnovativecollaborativesocietalsolutions. Arnaud Mourot CEO, Ashoka, Europe Stéphanie Schmidt Director, Full Economic Citizenship Europe, Ashoka AnkaWittemberg Chief Diversity & Inclusion Officer, SAP AG 15
  • 16. 14:30-16:00 Plenary session It is more than“just” business: How business leaders can contribute to moving a country up We are witnessing the limits of what governments can do to foster economic and social devel- opment.How can the corporate world – without neglecting its responsibilities towards share- holders – contribute to greater social cohesion and inclusive growth? How should the share- holder-stakeholder relationships be balanced? What should business do better and/or differently when dealing with the community at large? Mark Drewell Chief Executive, Globally Responsible Leadership Initiative Antonin Pujos Former Chairman and Founder, the Research Club, French Institute of Directors Mallika Sarabhai Dancer and social activist CharlotteWolff General Manager, Group Head of Corporate Responsibility, Arcelor Mittal Moderator: Claude Smadja President, Smadja & Smadja 16:30-18:00 Panel discussion How can civil society and the private sector be partners in addressing the employability challenge? Globally, it is estimated that nearly 300 million of 15-24 year olds are not working or studying. Of that total, 26 millions are in OECD countries. In emerging economies, where young people are the fastest growing segment of the population, this severely hampers current and future economic growth. In Western countries, governments remain unsuccessful in dealing with their growing NEET (Not in Employment, Education orTraining) population.The ILO describes the age group as a“scarred”generation of young workers. How can civil society organizations and businesses improve their collaboration to facilitate access to education and to create a better match between training and skills demand? In a world of fast evolving technology and market needs, what are the strategies that will ensure greater employability? Philippa Frankl Executive Director, Street Kids International Erin Ganju Co-Founder and CEO, Room to Read Serena Brown Global Development Initiative Senior Manager, KPMG AnkaWittemberg Chief Diversity & Inclusion Officer, SAP AG Moderator: Delia Meth-Cohn Director, Global Rethink 16
  • 17. 16:30-18:00 Panel discussion How can civil society and the private sector be partners in addressing the environment challenge? For most global businesses, the greenwashing of the early years is long gone.Well-articulated environmental goals are increasingly becoming part of corporate strategies. Yet, the overall impact of business activity on the planet keeps intensifying. Emerging economies need to find ways to curb environmental damage without constraining economic growth. More de- veloped countries are also struggling with elaborating and implementing policies that will reconcile environmental sustainability and profitability. Advocacy groups have been pressur- ing corporations and governments to move faster and more decisively on these issues.What are the areas of potential conflict between the private sector and NGOs on this topic, and how can they be successfully addressed? How can we foster genuine synergies between NGO and corporate initiatives? Renat Heuberger CEO, South Pole Carbon Asset Management Stuart Orr Head of WWF’s Water Stewardship SebastianWinkler Director, Europe, Global Footprint Network Moderator: DougalThomson The Economist 18:00-18:15 Connecting the dots… A look back on the day’s discussions to highlight its key outcomes Rodrigo Jordan Mountaineer and President, Vertical S.A. 19:00-19:45 Concert: Piano & Orchestra Soloist: Elizabeth Sombart, accompanied by the Orchestre Solidaire Résonnance and con- ducted by Diego Miguel-Urzanqui 19:45-21:45 Official dinner Whatthebusiness/civilsocietypartnershipcandoNOWforasustainable future Keynote speaker: Mohan Munasinghe Nobel Peace Prize Winner, Physicist, Sri Lanka 17
  • 18. 09:00-10:30 Plenary session Creating the virtuous circle: ethics +transparency =trust Ethical lapses from MNCs and compensation issues have tarnished corporate image in most parts of the world. Negative perceptions also affect NGOs and civil society organizations since they are reproached with a lack of transparency in their use of resources and/or governance models. Legitimacy is also sometimes called into question. In which areas would greater transparency help foster public trust in corporations as well as in NGOs? To what extent do corporations and NGOs need to respect similar ethical principles?What are the indicators and reporting tools that will create accountability and enhance public trust? Alexander Fink CEO, Edelman Switzerland Fredrik Galtung Chief Executive, Integrity Action Guido Palazzo Director of the Department of Strategy, Professor Faculty of Business & Economics, University of Lausanne ChristopherWasserman President, TeroLab Surface Group, Chairman, The Zermatt Summit Moderator: Claude Smadja, President, Smadja & Smadja 11:00-12:30 Panel discussion How can civil society and the private sector be partners in addressing the health challenge? In the Western world, the health-related costs incurred by the Welfare State are becoming increasingly untenable. In less developed economies, broadening access to health care, fight- ing infectious diseases and malnutrition are crucial priorities. Civil society organizations and the private sector have created successful patterns of collaboration, especially in emerging countries.What are the lessons to be drawn from successful examples of collaboration? How can they be expanded? Jean-Louis Homé Former Chairman, Fairtrade International, President, MDIN Vinay Nagaraju COO, Riders for Health Arie de Groot Director, Investment Fund for Health in Africa Moderator: Delia Meth-Cohn Director, Global Rethink Friday 21 June 2013 18
  • 19. 11:00 -12:30 Panel discussion The Future of Impact Investing Questioning the notion that there has to be a trade-off between achieving economic perfor- mance and contributing to social progress, a rapidly growing number of actors are investing in,orcreatingcompanies,organizationsorfundsthatwillgeneratebotheconomicandmeas- urable social/environmental returns. Although relatively new, the market is growing in size and sophistication.Who are the actors on this market?What are the criteria and requirements for impact investment?What is its economic and social potential? Wolfgang Hafenmayer Managing Partner, LGT Venture Philanthropy Nicolas Hazard President, Comptoir de l’Innovation Emmanuel de Lutzel Vice President, Social Business, BNP Paribas Martin Rohner CEO, Alternative Bank Moderator: Claude Smadja President, Smadja & Smadja 12:45-14:45 Luncheon The inestimable value of“soft”values Keynote speaker: Robin Cornelius Founder and President, Switcher Moderator: Claude Smadja President, Smadja & Smadja 15:00-16:45 Plenary Corporate Social Responsibility as an integrated part of corporate strategy even in tough economic times Companies that succeed in incorporating their Corporate Social Responsibility (CSR) goals into their overall corporate strategy reap reputational, human capital and operational bene- fits. CSR is no longer a PR gimmick or a notion to be paid lip service to: it is becoming part of risk mitigation and opportunity-seeking strategies. How can corporations ensure that CSR genuinely becomes part of their organizations’culture and day-to-day operations? How can triple bottom line reporting be used as a progress-tracking tool for corporate performance? Can we prevent that CSR obligations should become lesser priorities in difficult times? Bettina Ferdman-Guerrier Founder & CEO, Phillias Foundation Christian Leitz Head, Corporate Responsibility Management, UBS Jan Noterdaeme Senior Advisor, CSR Europe Karl Friedrich Scheufele Co-President, Chopard Moderator: Delia Meth-Cohn Director, Global Rethink 19
  • 20. 17:00-18:30 Closing plenary Government/Business/Civil Society: Gettingtogetherto achieve sustain- ability There is a growing consensus that a number of issues are today too complex to be addressed successfully only by government or by the business world and without the involvement, or at least acquiescence of the civil society. Recent, global examples show that sustainable and inclusive growth can best be achieved through genuine collaboration and a convergence of objectives between government, business and civil society. What are the requirements to create goal-oriented partnerships that contribute to economic progress and greater social cohesion? How do we ensure that economic, social and environmental sustainability become part of an integrated approach to inclusive prosperity?What rules of engagement will ensure long-term win-win partnerships? Father Nicolas Buttet Founder, Philanthropos European Institute Rob Cameron Executive Director, SustainAbility Mark Foster Chairman, International Business Leaders Forum Marcelo Palazzi Harvard Advanced Leadership Fellow, Director, B Corporation, Europe Moderator: DougalThomson The Economist 18:30-18:45 What do we take home? Key highlights and conclusions from the Summit ChristopherWasserman Founder and Chairman, The Zermatt Summit Saturday 22 JUNE 2013 08:00-12:00 The Matterhorn Leadership Excursion RodrigoJordan Chilean mountaineering and leadership expert 20
  • 21. Several examples of cross-sector col- laborations were discussed or referred to in Zermatt.The index below lists the ones that were discussed in greater detail and provides contact points for additionalinformationwhererelevant. LifeStraw- Kenya Carlos Braga IMD www.vestergaard-frandsen.com/ carbon-for-water/how-it-works.html SMS for Life (Tanzania) Michael Fuerst Novartis www.malaria.novartis.com/innovation/ sms-for-life Jamii Bora Bank Stephanie Schmidt Ashoka http://jamiiborabank.co.ke/about Housing for All Stephanie Schmidt Ashoka http://india.ashoka.org/sites/india/ files/AccesstoHousing.pdf A.N.D.E.S social groceries network Stephanie Schmidt Ashoka www.epiceries-solidaires.org Making More Health Stephanie Schmidt Ashoka www.makingmorehealth.org SAP-Specialisterne AnkaWittenberg SAP www.sap.com/news-reader/index. epx?pressid=20938 GIZ- Arcelor Mittal CharlotteWolff Arcelo Mittal www.giz.de/themen/en/29510.htm WWF/H&MWater consumption in the Brahmaputra river Stuart Orr WWF http://wwf.panda.org/what_we_do/ how_we_work/businesses/corporate _support/business_partners/handm.cfm Juniper Network/Not For Sale www.slideshare.net/fibonaccidesign/ juniper-networks-not-for-sale Integrity Action/Google Fredrik Galtung Integrity Action www.integrityaction.org/prashant/ integrity-action-winners-google- global-impact-challenge-2013 Room to Read Erin Ganju Room to Read www.roomtoread.org/page.aspx- ?pid=315 Riders for Health Vinay Nagaraju Riders for Health www.riders.org/where-we-work/zambia Switcher Robin Cornelius Swicher www.respect-code.org/Main.action For a deeper dive… Royal DSM andWorldVision (Tanzania) http://wvi.org/pressrelease/royal- dsm-world-vision-announce-partner- ship-nourish-millions-world’s-most- vulnerable WFP, USAID, Pepsi (Ethiopia) www.wfp.org/stories/wfp-pepsico- and-usaid-fight-child-malnutrition- ethiopia Deutschen Gesellschaft für Inter- nationale Zusammenarbeit (GIZ) BASF, Cargill (Philippines) www.giz.de/en/mediacenter/10790. html Syngenta Foundation Safaricom (Kenya) https://gc21.giz.de/ibt/GC21/ area=gc21/main/en/usr/modules/ gc21/ws-FLEXdialogue/info/ibt/ downloads/CaseStudyAdaptation_ SyngentaKenya.pdf UNEP, Greenpeace Unilever and Coca-Cola/Pepsi www.refrigerantsnaturally.com/ statements/greenpeace.htm 21
  • 22. In the competitive market economy, our present development model has shown a con- tinuous ability to be creative and to increase wealth. At the same time there has been a progressive blurring of its link with the global Common Good, and a significant loss of our capacity to regulate it. Economics have been unlinked from ethics and politics as financial capitalism tends to nurture a speculative race where money serves to create more money without suffi- ciently investing in the real economy, producing goods or services useful to people. Destruction of the planet and of biodiversity, poverty and growing inequalities, situa- tions of injustice, exclusion and alienation are some of the dysfunctions likely to have significant negative consequences for future generations. Our current model of development runs the risk of becoming unsustainable, losing its moral and political legitimacy. In such a context we feel that change is necessary and it is time to give ethical and political dimensions back to economic activity. Humanizing globalization becomes a priority. We strongly believe that enterprises are the main economic agent in society, creating value through their production of jobs, of innovation, of goods and services and of taxes. Business leaders – given the power of the corporation today – bear critical re- sponsibility.They should accept to review, to rethink and broaden the purpose of their enterprise, integrating a concern for the Common Good. The Zermatt Summit Manifesto 22 Professor Philippe deWoot Professor Henri-Claude de Bettignies
  • 23. We want to redefine the purpose or “rai- son d’être” of business – We strongly be- lieve that the “raison d’être”of an enterprise must be anchored in its entrepreneurial identity i.e. initiative, creativity and innova- tion in small, medium and large business or- ganizations.Furthermore,intoday’sborderless world, entrepreneurship (and its potential to innovate) can be more consciously oriented toward the global Common Good and the challengesofourtimeratherthanbeingsub- ordinate to the vagaries of speculation. We need to transform the business culture – the perspective of the Zermatt Summit is the transformation of our system according to the following philosophy: finance to serve the economy, economy to serve the Com- mon Good, Common Good to serve the per- son. This new perspective should help the decision-takers to revisit the “raison d’être” of the business firm and embed ethical and po- litical dimensions in their strategies. To con- tribute to this paradigm shift, economic and financial participants will have to re-invent their corporate culture to find a new balance between its key roles: entrepreneurship, leadershipandstatesmanship.CorporateSo- cial Responsibility and Corporate Social Val- ues practices are emerging in many sectors and are first steps in the right direction. We want to stimulate Entrepreneurship – We believe that an enterprise has to enhance its entrepreneurial action, to be creative in a real world of goods and services, as opposed to the mere logic of short term financial and quarterly results. It is mainly through its en- trepreneurial capacity that it can serve the Common Good and contribute to face the challenges ahead. Shareholder value is but one of several measures of business perfor- mance. Defining the“raison d’être”of the cor- porate enterprise in terms of economic, hu- man and societal development will influence its strategies, its structures and its managerial behaviour as well as its specific contribution towards the Common Good. Business leaders and managers will pay greater attention to the societal consequences of their decisions, to the “externalities” of their actions and to the problems of our time which they could helpsolvebytheirentrepreneurialinitiatives. The creative capacity of business will also gain in addressing needs of those at the“bot- tom of the pyramid”, by literally reaching out to assist the poorest and contributing to lift them from extreme poverty. This encounter and ensuing actions can change its perspec- tive; transform its mind-set and its corporate culture. We want to promote a new definition of Leadership – Management is no longer enough. We want to put ethics back into the heart of economic activity.What we need are notonlymanagersoradministratorsbutanew type of leadership: leaders as “sense givers” and “sense makers”, leaders as “architects of corporate conscience”1 , leaders as ethical stewards. If one narrowly defines manage- ment, one might say that it consists above all of the administration of things: objectives, budgets, strategic analysis, plans, methods, procedures. But leadership, as the art of di- recting human reality, influences, motivates, communicates and induces participation. We need “servant leaders” able to convince people of the values we collectively wish to implement, willing to assume full responsi- bility for their decisions and actions and pre- paredtoactuallyservethecommunitiesthey are in charge of. Such leadership relies on moral authority through which ethics are passed down into the organization. Giving back economic activity its ethical and political dimensions. 1 Kenneth Goodpaster 23
  • 24. Wewanttoplayamoreresponsibleroleinthe emergence of a new culture of co-operation, negotiation and debate. Addressing com- plexity, paradoxes and conflicts requires put- ting aside the usual unilateral business think- ing.Themulti-stakeholdercompanywillhave to adopt a much more political approach if it wants to become socially responsible. By broadening the political dimension of our strategieswewillincreaseourcollectiveability to transform the economic system into a moresustainablemodel,topreservetheearth, better share its resources and help reduce poverty and inequality. Can leaders transform companies and the system that they lead without transforming themselves? Changes in structures will not happen“on command”. They will only come to life if they are driven from within, by people of good will. Weneedtorelyuponanddeveloptheper- son as a whole – At a time when – beyond rationality – we talk about emotional and spiritual intelligence, let us remember that nearly every civilisation offers a vision of man that includes three dimensions. This vision goes beyond mere rationality to open up the less tangible but more profound realities of the heart and the soul. By trying to unify the whole person we will liberate new energies for our personal development and acquire greater maturity in our relations with others. Responsible leadership implies the whole person commitment. We want to let our spirituality guide us – It isourconscienceandourspiritualdimension that invite us to become more humane and to develop a world with more freedom, jus- tice and peace. In considering the evolution of the universe, one cannot help but ques- tion this movement, this momentum, which drives matter to life and life to man, being 2 Berten, I., L’enseignement social de l’Eglise: bilan et perspectives (The social teaching of the Church: balance and perspectives), in Berten, Buekens and Martinez, Enterrée, la doctrine sociale ? (Is social doctrine buried ?) Bruxelles, Lumen Vitae, 2009, pp 15-37 3 Ibidem WewanttoencourageStatesmanship–As leaders we recognize societal interdepend- ence and the urgency to shift to a more sus- tainable model of development. To facilitate its emergence, we have to participate actively in the research and definition of the Com- mon Good of our global world and try to in- corporate it into our sphere of activity. We have to play a responsible role in the emer- gence of a new culture of debate, concerta- tionandco-operationthatwouldreplacethe current simple“lobbying”, We need to play a more active role in the search and creation of new forms of governance. In this perspective we will add to our role of entrepreneurs and leaders that of statesmen willing to contribute to the debate on global CommonGood.Statesmanshipisthewaywe can give back to our business activity its po- litical dimension. The Common Good can be defined as the set of social conditions that allow all people and all groups that make up society to achieve their own accomplishments in the most pos- itive manner.2 If one accepts this definition, the criterion of the Common Good presents a fundamental principle of moral judgement of the organisation of a society, including the global system.3 The United Nations suggests the concept of sustainable development as defined in the Brundtland Report:“Sustaina- ble development is development that meets the needs of the present without compro- mising the ability of future generations to meet their own needs.” Business statesmanship goes further. It ad- dressestherealpoliticalquestionofourtime: what kind of world do we want to build to- gether with the vast resources and the skills at our disposal. In entrepreneurial terms it can be translated as how shall we use our creative capabilities to build a better world? We need to change hearts and minds 24
  • 25. capable of freedom, creativity, love and won- derment. Are there not elements here to be utilised as a guide, a pathway, a positive drift towards what might be called the humanisa- tion of the world? Would our spirituality not be this guide, this call to life, this impetus for love, this light that illuminates the road and invites us, despite the limits of evil, suffering and death, to become and remain alive by adhering only to the deeper values? Do we use enough of the extraordinary power of transformation that spirituality can give us when it is lived out in all aspects of our life? We want to transform the relationship into encounter – We must dare to transform relationships into encounters.The encounter commits the heart. It is the personalised rela- tionship, on an equal and reciprocal footing, without mediation of money or power. It is the place of mutual acceptance, listening, watching, the place where one can be“called byhisname”,acceptingitsfragility,recognising theother,makingitexist,helpingittostandup. We need to accept being fragile and cou- rageous at the same time – Introducing more humanity implies recognising oneself not only as creator, but also as being fragile in relation to each other. It is sometimes dif- ficult for a creative entrepreneurial leader. The real hero is not the cosmic hero of myths orromancebutonewhoco-existswithothers all the while being open to his own fear of finitude as well as to that of others.4 Formanycivilizationscourageisamajorvirtue, but today it differs from the traditional cour- ageofancientheroes.Itshouldnotbesought primarily for personal success, prestige or “glory” but for the coming of a world of jus- tice,peaceandlove.Rootedinahumannature that knows fragility, courage then becomes a continuous, humble, patient and concrete existential effort. It can also be seen in terms 4. Arnsperger, Ch., Critique de l’existence capitaliste, Paris, Cerf, 2005 of initiative and creativity, as“the courage to begin”, the courage to undertake. We want to become an international plat- formofreference–Bringingtogetherstake- holders for the purpose of adding more hu- manity into the process of globalization and makingpracticalrecommendationstoleaders for an economy serving the human person and the Common Good. We will draw on the works of our members and their various networks to create, gather and refine innovative experiments, concepts and research results capable of supporting andenlighteningourmainthemes.Ourambi- tionistobecomeathoughtprovokingdriving force and to build a utopia that will allow us to be pulled by the future instead of being pushed by the past. But if there is a sense of what is real… there must be something that one might call the sense of the possible… a flight of fancy, a will to build, a conscious utopia which, far from fearing reality, treats it simply as a task and a perpetual reinvention (Robert Musil). Philippe deWoot and Henri-Claude de Bettignies 25
  • 26. Archduchess of Austria Marie-Hélène Triple A Gestion S.A. Archduke of Austria Rudolf Triple A Gestion S.A. Barbot-Maire Stephane Smadja & Smadja Bellemo Giulia Zermatt Summit Foundation Boixader Lu OSRé - Fondation Résonnance Braga Maria Isabel IMD Brown Serena KPMG International Brunner Stephan ghost.company Buttet Nicolas Eucharistein Fraternity CamerataThomas South Pole Carbon Cameron Rob SustainAbility Cerda Juan Pablo TECO Group ChandranYadavan Darpana Academy of Performing Arts Cipriani Simone Ethical Fashion Initiative, International Trade Centre Coll Blanca OSRé - Fondation Résonnance Collis Roulet Imogen ICR Business Strategies Cornelius Robin Switcher SA Culillas Diana Chopard & Cie S.A. de Beauchamp Collenette Carla WWF International de Bettignies Henri-Claude INSEAD de Groot Arie IFHA Fund de Lutzel Emmanuel BNP Paribas Dewitte Jean-François ImpactHope Foundation Doupeux Chantal Worldwidepress.info Drewell Mark The Globally Responsible Leadership Initiative Edwards Magdalena Ayudar.cl Estermann René myclimate foundation Falco Ana OSRé - Fondation Résonnance Favarger Schmidt Marie-Noëlle Terolab Surface Group Favre Monique Fondation Résonnance Ferdman Guerrier Bettina Philias Foundation Fink Alexander Edelman Switzerland Foster Mark International Business Leaders Forum Frankl Philippa Street Kids International Fruchaud Olivier Ashoka Fürst Michael Novartis AG Gallet Denis Fundación Desafío de Humanidad Galtung Fredrik Integrity Action Ganju Erin Room to Read Garcés Marc OSRé - Fondation Résonnance Garcia Hector OSRé - Fondation Résonnance Garcia Sandra OSRé - Fondation Résonnance Goldscheider Daniel Paperless Inc. GonzalezTamara OSRé - Fondation Résonnance Gorrias Adria OSRé - Fondation Résonnance Grivat Olivier L’Agefi Gunnarsson Catherine TeroLab Surface Group SA HafenmayerWolfgang LGT Venture Philanthropy Participants 201326
  • 27. Hazard Nicolas Le Comptoir de l’Innovation Heuberger Renat South Pole Carbon Hinojosa Alba OSRé - Fondation Résonnance Home Johanne Smadja & Smadja Homé Jean Louis MDIN Joan Clara OSRé - Fondation Résonnance Jordan Rodrigo Vertical Jouhet Esther Réseau Economie et Conscience Landau Herve Cyrus Family Office Lauber Daniel Zermatt Summit Foundation Lecha Javier OSRé - Fondation Résonnance LECLERC Fabrice Wild Keepers Sàrl / HEC Lausanne Leitz Anja UBS Leitz Christian UBS Luggen Daniel Zermatt Tourism Magarinos-Ruchat Bérangère Global Compact Network Switzerland Manini Jacqui Zermatt Summit Foundation Mariño Margarita OSRé - Fondation Résonnance Markowsky Fanny Zermatt Summit Foundation McKinnon Sheila Fondation Résonnance Meldem René BOBST SA Meth-Cohn Delia GlobalRethink Michel Nicolas Université de Génève Miguel-Urzanqui Diego Résonnance Espagne Montero Gustavo GAM Consulting Moratti Carlo ghost.company Mourot Arnaud Ashoka Munasinghe Mohan MIND Munoz Gonzalo Aconcagua Summit NagarajuVinay Riders for Health Noterdaeme Jan CSR Europe Orr Stuart WWF International Otte JanThomas NZZ Palazzi Marcello Progressio Foundation Palazzo Guido University of Lausanne Paqué Elisabeth Juice Plus Pietzner Cornelius Alterra Impact Finance Pillet Line Pillet & Partners Training Services Pitton Julien ISO Braga Carlos Primo IMD Pujos Antonin Zermatt Summit Foundation Razavi Schirin University of Zurich Rodriguez Ana OSRé c/o Fondation Résonnance Rohner Martin Alternative Bank Switzerland Rosenkilde Christensen Christel Treasure Consulting Sanz Laura OSRé - Fondation Résonnance Sarabhai Mallika Darpana Academy of Performing Arts Schalekamp Romano DEVAS Consulting SA Schellekens Onno PharmAccess Group Scheufele Karl-Friedrich Chopard & Cie S.A. Schmidt Stephanie Ashoka Shani Ornit University of Haifa Siaterli Romina Philip Morris International Management SA Smadja Claude Smadja & Smadja SmadjaYael Smadja & Smadja Sombart Elizabeth Fondation Résonnance Sriskandarajah Danny CIVICUS Tadros Marlyn Virtual Activism Thomson Dougal The Economist Group Torrigiani Luiggino LT Toth Jozsef ErMe Urech Fabian NZZ van derWant Eva myclimate foundation Vaquerizo Laura OSRé - Fondation Résonnance Wasserman Christopher TeroLab Surface Group Wassmer Fabian Swiss Economic Forum Winkler Sebastian Global Footprint Network Wittenberg Anka SAP AG Wolff Charlotte ArcelorMittal Zanganehpour Soushiant SkollCentreforSocialEntrepreneurship,OxfordUniversity 27