1. Redefining the Corporation
From Making Money
to
Creating Prosperity
Vafa Akhavan
Desiree Akhavan
EBBF Annual Conference Lisbon, Portugal 10/2012
www.ebbf.org

2. Lets Talk About
• What’s happening in the world
• Why we need to redefine the Corporation
• How do we get there
• Where do we start

3. Global Trends
Any effort in trying to COMPLEXITY
transition from making (Systems within
money to creating Systems)
prosperity requires it to
be done in the context COMPRESSION
of global trends that (More with Less)
would influence both
that transition and its
DUALITY
outcomes.
(Concurrent forces)
POLARITY
(Extremes of Swings)

4. Global Trends
Systems within Systems (Ecodynamics): The dynamics of
integrated ecosystems. There is an ecosystem at work with
multiple systems within it that are all interconnected and
interdependent with various orders of magnitude. Make a change
in financial planning and it has an effect on operations which
impacts product development that can determine levels of sales
that impact profits.
Compression (Physinomics): The crossroads of physics and
economics. Financial performance is demanding that companies
deliver more with less. We want to reduce time to value and
increase value over time. “I want the product developed faster, go-
to-market quicker, and sell more at higher margins.” The forces at
work to deliver more with less impacts the economics of any
enterprise.

5. Global Trends
Duality [(+) x (-) = Restruction): For every force there’s an
anti-force. For everything that doesn’t work there are things
that work. Trust is being destroyed in the world of business
and concurrently new ways are creating trust. Companies
have eroded employee trust with their actions but new
companies leverage transparency and social media to build
trust. Trust is being reconstructed.
Polarity in Chasms (Polarchasm): The polarity in the world
is penetrating every field of endeavor. Chasms are growing
across areas of activity. Both the horizontal and vertical gaps
between rich and poor, wealth and poverty, are widening.

6. Polar Extremes
Order of Magnitude
• Top 100 US CEOs in 2011 earned $3.14bil in comp.
• Top 25 hedge fund managers in 2011 earned $22
billion
o Ray Dalio, Bridgewater Associates $3.8bil
o Carl Icahn, Icahn Capital Mgmt. $2.5bil
• Top earner in 2010?
o John Paulson, Paulson & Co. $4.8bil
o (=sum income of 150,000 Mississippians)
o (=sum income of 5,200,000 Indians)
o (=sum 80% of Somalia GDP)
o (=sum 310% of public debt Papua New Guinea)

7. Polar Extremes
Order of Magnitude
Global top 50 most profitable companies = $853
billion profits
They are in America, Europe, Asia (China)
=sum countries 93-192 ranked GDP
=sum countries 57-192 ranked National Debt
The GDP of the 41 Heavily Indebted Poor Countries
(567 million people) is less than the wealth of the
world’s 7 richest people combined.
Less than 1% of what the world spent every year on
weapons was needed to put every child into school by
the year 2000.

8. Global Wealth Index
North America, West Europe &
Australia dominate wealth

9. What’s Going On In The World
• Lack of morals and ethics are • World order is emerging not just as a
growing necessity but as a reality
• Corruption is rampant • New visions are being articulated
• The middle class in NA & Europe is • Social investment is spreading
eroding • Impact funds are growing
• The middle class in BRIC is growing • Meaningful dialogue is taking place
• Big part of the world is one class – to redefine a better future
The Dying Class • New models of government and
• Political & financial systems are Corporations are been developed
failing • Number of partnerships are growing
• Free markets, and the not so free, to address the plight and struggle of
serve the few at the expense of the humanity
many • Proliferation of access to information
• We're struggling in the midst of is enabling greater advances on all
growing chaos fronts
• Corporations and Banks in North • Bhutan is governed by the Gross
America hold $4.0 trillion in cash National Health index and not the
going nowhere and doing nothing Gross National Product index

10. My Friend The Capitalist
I sent this deck to a very close friend and
serial entrepreneur. He read up to this point
and said the following, and I quote:
• Boring, Yawning
• You’re putting me to sleep
• Heard all this stuff before
• SO WHAT?

11. The So What is That
I Want to Go From This……
The essence of the
overwhelming
burden,
helplessness and
plight of a growing
number in humanity.

12. To This……
Joy, well being, work, satisfaction, health, confidence,
eager for the future - prosperous

13. …. And to This.
Inventing technology that allows children to drink almost anything
which enables them to rise above poverty, develop capacity and
contribute to society - prosperous
VESTERGAARD

14. ….. And If You Want
You can do it profitably

15. Why Redefine The Corporation?
Because when you just make money a
cancerous outcome is division and pain
but when you create prosperity you
generate unity and create a sustainable
advancement for humanity
“If the human race wishes to have a prolonged and indefinite
period of material prosperity, they have only got to behave in a
peaceful and helpful way toward one another.”
Winston Churchill

16. Global Prosperity Index
How does the world fare with prosperity?
North America, West Europe and Australia
out perform the rest of the world. Tight
correlation with the Global Wealth Index.

17. Factors Defining Prosperity
LEGATUM PROSPERITY INDEX
1. Economy - Stable and growing economies increase per capita income and promote
the overall well-being of their citizens.
2. Entrepreneurship & Opportunity (E&O) - A strong entrepreneurial climate in which
citizens can pursue new ideas and opportunities for improving their lives leads to
higher levels of income and wellbeing.
3. Governance - Well-governed societies enjoy national economic growth and citizen
well-being.
4. Education - Education is a building block for prosperous societies.
5. Health - A strong healthcare infrastructure in which citizens are able to enjoy good
physical and mental health leads to higher levels of income and well-being.
6. Safety & Security - Societies plagued by threats to national security and personal
safety cannot foster growth in average levels of income or well-being.
7. Personal Freedom - When citizens enjoy their rights to expression, belief,
organisation, and personal autonomy in a society welcoming of diversity, their country
enjoys higher levels of income and social well-being.
8. Social Capital - Social networks and the cohesion that a society experiences when
people trust one another have a direct effect on the prosperity of a country.

18. From Making Money To
Creating Prosperity
HOW DO YOU TRANSITION?

19. 1. Determine the right factors for
your Corporation to create prosperity
Diversity & inclusion
Employee Rights
Opportunity
Well being
Justice
Values

20. 2. Define The Right Factors
e.g. What is Well Being?
• I WORK and contribute
• I have a PLACE to live
• My FAMILY LIFE is balanced
• I ENGAGE in the community
• There is a LEISURE part to my life
• I am HEALTHY in body, mind and soul
• I have SECURITY in my life
• I live in a healthy & sustainable ENVIRONMENT
• I have FINANCIAL MEANS to sustain
• I am constantly LEARNING

21. 3. Make The End To Be The Beginning
Today’s Beginning is MAKING MONEY
WHAT WE DO OUTCOMES WE EXPECT
(The Means) (The End)
Asset / resource allocation Revenues
System enablers Profits
Leverage employees EPS
MarkCom / CSR ROI / ROA / ROE
CSAT, ESAT Equity

22. Applied Locally
The difference in making money across regions and
countries is Relative Maturity & Sophistication
PRINCIPLE KPIs USA INDIA SUMALIA PALESTINE GERMANY
Revenues
Profits
EPS
ROI / ROA / ROE
Equity

23. Make The End To Be The Beginning
Today’s beginning should become the means for
the new end – Creating Prosperity
WHAT WE DO OUTCOMES WE EXPECT
(The Means) (The End)
Revenues Diversity
Profits Justice
EPS Opportunity
ROI / ROA / ROE Well Being
Equity Human Development
Values
“Education is an ornament in prosperity and a refuge in adversity.”
Aristotle

24. Applied Locally
There can be global consistency and unity in factors
while there is diversity in relative application &
PRINCIPLE KPIs USA INDIA SUMALIA PALESTINE GERMANY
Diversity
Human Rights
Justice
Opportunity
Well Being
Values
“I can promise you that women working together - linked, informed and educated -
can bring peace and prosperity to this forsaken planet.”
Isabel Allende

25. The Corporation Making
Money
Resources
Shareholder
Value $ Market
Opportunity
Growth &
Profitability

26. The Corporation Creating
Prosperity
Shareholder
Value
Creating
Prosperity $ Human
Capacity
Community
Development

27. 4. Establish The Environment For
Creating Prosperity
• CLEAR on the definition of
prosperity
• to create prosperity from which not
only the Corporation itself, but “We cannot seek achievement
society-at-large, can benefit for ourselves and forget about
• UNITED around achieving the progress and prosperity for
definition in real terms our community... Our
ambitions must be broad
• AGILE to achieve the performance
balance enough to include the
aspirations and needs of
• ACCOUNTABLE others, for their sakes and for
o to itself (corporate code of our own”
conduct)
o to the community (external Cesar Chavez
audit, subject to international
standards-voluntary or not)
• PROACTIVE to get ahead of the
curve

28. How Do We Get There
• Sincerity of purpose
• Live without
prosperity “You must be the change you
• Change the beginning want to see in the world.”
• Design with end in Mahatma Gandhi
mind
• Be clear on the goal
• Create partnerships
• Execute with passion
• Deliver the results

29. Attributes Necessary For An
Effective Transformation
True Seekership Courage
Subordination Sacrifice
Servitude Integrity
Fortitude Passion
”A man's moral worth is established only at the point where he is ready to
give up his life in defense of his convictions.”
Henning von Tresckow

30. 5. Start With You
The Cornerstone of Change
YOUR HEART & SOUL
O SON OF MAN!
Bestow My wealth upon My poor, that in heaven thou mayest draw from
stores of unfading splendor and treasures of imperishable glory. But by
My life! To offer up thy soul is a more glorious thing couldst thou but
see with Mine eye.
(Baha'u'llah, The Arabic Hidden Words #57)

31. But I’m Just One Person.
So were….
• Mahatma Gandhi
• Rosa Parks
• Nelson Mandela
• Zarin Taj (Tahirih)
• Konrad Adenauer
But I’m none of these greats. Well, neither is
Narayanan Krishnan
http://www.youtube.com/watch?v=y_3BEwpv0dM

32. Your behavior defines who you are.
Your legacy is the impact of your behavior
on others.
The true measure of success is the impact you have on the life of
others.
Clayton Christianson, Professor Harvard Business School

33. APPENDIX

34. Workshop
Redefining the Corporation: from making money to creating prosperity
Vafa and Desiree Akhavan
Participants in the workshop will delve deeper into the four conditions for sustainable transformation of the Corporation.
The discussion will follow a consultative approach to defining each of the four conditions. The output of the workshop
will also include specific actions that participants can deploy upon return to their work environments.
The three questions:
What needs to be changed in order to create prosperity for the world while still successfully conducting
business?
How can a business change the way it evaluates its performance to include meeting the needs of society and
the environment?
How can we decrease the tension between business and society?
The four conditions:
Sincerity of its purpose is changed from generating profit for owners to creating prosperity for communities
Create clarity around the description of prosperity for the entire organization
Unity of purpose to pursue this new goal
Establish an operating model that addresses the ecosystem and can facilitate the execution of a SMART plan

35. Workshop Program
1. Introductions and expectations (10m)
2. Review prep work from resources (20m)
3. Break into groups: Conglomerate, Mid-cap,
Start-up
4. Discussion of case studies (45m)
5. Reports(15m): Conclusions, next steps

36. Polar Extremes
Order of Magnitude
CHILD CATEGORY STATISTICS
Children in the world 2.2 billion
Children in poverty 1.0 billion
Shelter, safe water, health For the 1.9 billion children from the developing world, there are:
• 640 million without adequate shelter (1 in 3)
• 400 million with no access to safe water (1 in 5)
• 270 million with no access to health services (1 in 7)
Children out of education 121 million
Worldwide child survival • 10.6 million died in 2003 before they reached the age of 5 (same as children population in
France, Germany, Greece and Italy)
• 1.4 million die each year from lack of access to safe drinking water and adequate sanitation
Worldwide child health • 2.2 million children die each year because they are not immunized
• 15 million children orphaned due to HIV/AIDS (similar to the total children population in
Germany or United Kingdom)

37. Creating Prosperity: A success
story
Carbon For Water begins with the hardships of the people of Kenya’s Western
Province, where safe drinking water is scarce and the wood fuel used to boil
water for purification is expensive. These two factors conspire to make
waterborne illness a daily—and life-threatening—reality among the already poor
population. Women and girls are especially vulnerable; they often miss school or
work when fetching wood, and some even fall victim to sexual violence in the
process.
Filmmakers Evan Abramson and Carmen Elsa Lopez introduce audiences to a
unique solution to this age-old, and worsening, problem. An innovative company
has financed the distribution and maintenance of 900,000 water filters in
Western Province, funded entirely by carbon credits. These credits are awarded
for actual reductions in use of wood fuel as well as the anticipated reduction in
future fuel use. The filters help to slow deforestation, as household demand for
wood drops. In this way—and in just five weeks—4.5 million people were given
the means to purify their water, which in turn unlocks the potential to improve
families’ income, education, and health.
http://www.vestergaard-frandsen.com/lifestraw
http://www.carbonforwaterfilm.com/

38. Resources
• http://www.nytimes.com/2012/07/13/opinion/brooks-why-our-elites-stink.html?
_r=1&nl=todaysheadlines&emc=edit_th_20120713
• https://www.youtube.com/watch?v=16K6m3Ua2nw&feature=player_embedded
• http://www.youtube.com/watch?v=VMqcLUqYqrs&feature=related
• https://www.youtube.com/watch?v=16K6m3Ua2nw&feature=player_embedded
• http://www.youtube.com/watch?v=VMqcLUqYqrs&feature=related
• http://www.pbs.org/now/transcript/transcript_shiva.html
• http://hondurashumanrights.wordpress.com/2011/01/24/sweatshops-mining-tourism-free-trade-
negotiations-canadas-involvement-in-honduras-support-for-the-post-military-coup-regime/
• http://a.mw.cnn.com/primary/wk_article?articleId=urn:newsml:CNN.com:20120907:jay-leno-
tonight-show:1&branding=&category=cnnd_entertainment&pagesize=10
• http://www.forbes.com/sites/devinthorpe/2012/09/10/eight-crowdfunding-sites-for-social-
entrepreneurs/
• http://www.forbes.com/sites/annefield/2012/08/30/new-impact-investing-stock-exchange-is-
making-steady-progress/
• http://www.vilcap.com/about-vilcap/
• http://www.ssireview.org/articles/entry/qa_roundtable_on_impact_investing
• http://www.youtube.com/watch?v=buMyJPQLS9U
• http://www.youtube.com/watch?v=y_3BEwpv0dM
• http://twistedsifter.com/2011/01/the-most-expensive-house-in-toronto-canada/
• http://mashable.com/2012/09/26/wikipedia-online-change/

39. Must Watch
"They're in the business of making money for themselves." Dennis Kelleher
Frontline 01: Money, Power & Wall Street
http://video.pbs.org/video/2226666502
Frontline 02: Money, Power & Wall Street
http://video.pbs.org/video/2226666506
Frontline 03: Money, Power & Wall Street
http://video.pbs.org/video/2229573859
Frontline 04: Money, Power & Wall Street
http://video.pbs.org/video/2229573868

40. REALLY Must Watch
http://www.youtube.com/watch?v=_1Y0zexvuHw&feature=player_embedded#!
http://www.youtube.com/watch?
annotation_id=annotation_98911&feature=iv&src_vid=JHki-
oxghss&v=E2zYxElCy6E
http://finance.yahoo.com/blogs/daily-ticker/whole-foods-ceo-why-pay-
employees-more-131203168.html
http://www.youtube.com/watch?v=Rml_k005tsU