Exports Books

I just realized this is the third book by a lawyer I have absorbed in this month's reading, and that is somehow a scary thought. If lawyers are starting to write popular reformist tracts against unfettered capitalism and the export of the flawed U.S. approach to capitalism, something very interesting must be happening in the dark recesses of our national mind.

This is not an easy book to read but on balance it is a very important book and one that would appear to be essential to any discussion of how we might reform the relationship between the federal government with its 1950's concepts and regulations, corporations with their secularist and short-term profit and liquidation notions, and the people who ultimately are both the foundation and the beneficiaries (or losers) within the political economy of the nation and the world.

The author lays out, from a business law perspective, all the legal and financial reasons why our corporate practices today sacrifice the long-term perspective and the creation of aggregate value, in favor of short-term profit-taking. He makes a number of suggestions for improvement.

Toward the end of the book, citing Lipsett but adding his own observations, he digs deep and summarizes our corporate culture as one that threatens traditional forms of community and morality (Lipsett), while increasingly dominating--undermining--foreign governments and cultures. Elsewhere in the book the stunning failure of our form of capitalism in selected countries is explored.

Although there are adequate notes, there is no bibliography and the index is extraordinarily mediocre--not containing, for example, the references in the book to oversight, political, or regulation. One star is deducted for this failure by the publisher to treat the book's content seriously.

In particular, Mitchell fails to systematically compare the behavior of public and non-public corporations in the U.S., or to compare American corporations with corporations operating in less-individualistic legal and cultural environments abroad. Yet such comparisons would be crucial to testing his points about the harmful impact of financial markets on American corporate management. In reading the book, I also wondered whether the pressures to maximize short-term returns are less the result of "American individualism" and more the result of a business environment where hostile takeovers are easy and executive compensation is tied to stock prices. In any event, these issues can't be resolved by theorizing. Mitchell needed to interview some managers to find out what really makes corporations tick.

This is a pity since Mitchell writes well, has common sense, and cares about ordinary Americans who spend most of their working lives in large business organizations. His concerns about warped corporate priorities were entirely vindicated by the scandals at Enron (where shareholders as well as workers were screwed by corporate managers bent on boosting short-term share values), which were exposed only AFTER his book appeared in 2001. We need more books pointing out that American-style capitalism isn't the last word on business and can take a heavy toll on humane values. I just wish that Mitchell had crossed his T's and dotted his I's.

Issues that came up within the first 24 hours of trips to Asia and the Pacific Rim were not addressed in the book, such as how I should work with the companies I was planning to visit to arrange for the details of my visit. Also, many social habits that were important in meetings were not addressed, like how one should respond in various situations during business meetings (such as if the other side brings up something that is a deal breaker).

On the other hand, the book clearly provides useful advice as far as it goes, and it attempts to cover the waterfront (13 areas and 24 subjects per geography). That's probably the reason why it is too basic in approach. You will get good help here on important basics like how many hours of time difference (so you don't call at the wrong time), how dates are written down so you can decipher the messages you get, when holidays are so you won't offend someone by suggesting a meeting on an important religious or national holiday, and gift-giving etiquette (an area where Americans often err).

I do suggest that you acquire this book to have these basics available near to your computer and telephone at work. Also, the bibliography seems to provide a list of longer books on each geographic area. Those books may give you more details. There's probably no substitute for speaking with a business person from the country before you go, and getting advice from the concierge at a good hotel once you're there. Naturally, if you are fortunate enough to have colleagues in your company who work there already, they can fill you in. So this book is primarily aimed at those without a local operation.

Some of the better sections included information about what are appropriate conversational topics, rude gestures and actions to avoid, punctuality, seating etiquette, the special issues for women in business, and the weather conditions you can expect.

A book like this is a good reminder of how much we are conditioned by our culture. If nothing else, it can help you understand the sources of stalled thinking that can harm our business relationships in other countries because of our typical American approaches.

I liked what was in the book. I graded it down two stars for what was not...END

The authors are the founders (1997) of a British consulting firm that specializes in social marketing. They've built an enviable track record already working with a range of clients including Coca-Cola and Nike. Their position is that companies should start becoming the solution to the world's problems instead of being seen as the cause. By using their power for social good, they can influence environment issues, human rights, and social justice.

Seven chapters carry the message: Orthodoxy, Heresy, Responsibility, Leadership, Anatomy, Possibility, and Unity. Intrigued? Prepare to read an interesting book filled with examples and stories about how business became so unpopular, but really isn't so bad after all. The heresy chapter tells the other side of the story that is pounded at us through the media: globalization makes the poor richer, corporations are good for human rights, and we can close sweatshops and end child labor. Under Responsibility, the authors explore how corporations respond to all this criticism and how they can be truly socially responsible. Leadership is needed-real leadership, not just lip service. Commercialism, profit, and social good can all live together in harmony. The authors offer some ideas about what business could do to make a real difference and how ordinary citizens can join the movement for common good.

This is an almost conversational book that is comfortable to read. You'll gain some new perspectives and perhaps some inspiration.

Having said that, there is value in the book as it demonstrates areas in which business and customers can work together to find arenas of social activity that are to their mutual advantage. It also puts forward good examples of why it is to the advantage of a company to engage in these sorts of activity and that they can turn a profit out of it as well.

The first two chapters are better forgotten. They set up the least sophisticated of the arguments against globalisation as a sort of straw man that they then tear down with decidedly simplistic and statistically dubious arguments. (It is one of the banes of this very important debate that each side presents totally 'authoritative' statistics that 'prove' the exact opposite of each other. However, these authors argue that the gap between rich and poor is not growing wider, which *really* requires some fancy definition bending.)

In the rest of the book, it is necessary to ignore the underlying theme that anybody who criticizes an aspect of business practice or the current global system is antibusiness and because some business is doing things well and responsibly all business is therefore beneficial. Neither extreme position is true. This leaves the possibility of becoming interested in the examples that they cite of good practice and thinking, with them, of how these examples could be spread and expanded. There are clearly many opportunities and it is equally clear that the authors' particular promotional skills will often be useful in identifying these opportunities and working out effective ways of getting them accepted and implemented.

With some 6 Billion People on the planet, 5 Billion earn less than $1,000 per year (say $5 Trillion) - only about 1 Billion earn around $25,000 or more ($25 Trillion) - with 300 Million those in the USA. So, if 6 Billion people "share" the $30 Trillion total World GDP, that means an "average" of $5,000 for each person.

While a peasant in China might be temporarily better off, it would mean the economic end of the USA, Japan and Europe, then total collapse for the West. If China's current goal is to conquer the West, they can do it without a shot fired - just keep exporting while we keep importing and closing factories.

I only hope that Batra writes a follow-up book quite soon and offers up an overview that all of us can internalize. My further hope is that he can present his comments on CSPAN, CNET and CNN before the US election in November.