Kazira

Superclass: The Global Power Elite and the World They Are Making

by David Rothkopf (Author)

You know, when did I first start thinking about the possibility of a small group of individuals pretty much running the whole world? It was during the time when I (along with a lot of my friends) lost a significant chunk of our hard earned earning betting on the hyped up stocks on the Wall Street. We wanted someone to blame for our losses and we, rather than blaming our greed, conveniently blamed it all on the bubble and then subsequently to Allan Greenspan for bursting that bubble. We collectively blamed a single guy for evaporating trillions of dollars from the market, our pockets and the economy – “Could a single guy posses such power?” We wondered. And if this is true – who controls such person and “could the decisions made by such person be modified based on political and personal objectives?” Then came Greenspan’s book and him telling of how the current White House (2004-2008) was the most intrusive when it came to deciding the fed market policies. Wow .. I wondered, so the power is concentrated with a few and the political elites do use or abuse it for furthering their own agendas … I don’t claim to be naive here – I had an inkling – I don’t wear any idealistic glasses when I look at the real world – but this is hard fact, as told by one of “those” (in the know). And then came this book – writing about this phenomenon in black and white. Now, after reading this book, when I think of the past events and read current news, I can now almost find artifacts to substantiate the above theory all over the news articles.

Now lets come to the stock market these days (June 2008) – How could it be? that the stock market keeps doing the roller-coater ride for the past 8 years and all the reporting in the news paper and in the financial magazine is that – its because the “job market lost jobs” or “consumer spending is low” or “consumer sentiments are low” or “the price of oil is a bit higher”. I agree that these factors do play a role on the market but how could the “consumer sentiments” be low one day and a big Markey hurray the next – Something is not right – The market is moving too fact and all the financial reports are left with is the weaker argument of all the quotes above. These can’t be freak accidents, because freak accidents do not happen on a daily basis – like the ones reported lately. There are a group of individuals – not conspiring, but acting in their own interest and using their enormous influence fulfill their goals (The oil companies, or the oil future’s traders). Meanwhile, us, the middle class, is left hanging watching the stock market like a dog following the tennis ball on the court while paying $4 a gallon for gasoline.

Getting back to the book – here is a book that we can all relate with. A book, finally, that dares to expose the big elephant in the room. The emperor REALLY is not wearing any clothes … Long a favorite subject pushed along by conspiracy theorists; here is a well researched book right from the middle of this class that not only does exist but pretty much runs the whole world (The author speculates about 6000 of them around the world) … Reading this book was equivalent of someone giving me a code to see the world differently. And seeing the world, now, decoded, it does look different. Specifically, the book first outlines the fact that this class does exist, they do meet on a regular basis (be at DAVOS, or trilateral commission or other Asian or European Elite clubs) and divide up the pie conveniently between them. The underlying assertion here is that this group pretty much looks after their own need and greed and cares a little for the rest of us (Apparently 10% of the folks on top control 90% of the wealth). The book also mentions that the Superclass is a close community but a dynamic one – You may become a part of it if you control the lives of “many” human beings. The book gives laws for being a part of the superclass – and they are no means politically correct – Some of them include – “You have to be a man”, “You have to me Anglo Saxon” “You should attend Harvard, Stanford or University of Chicago” and “You have to be lucky” among others. A nicely written book and a real eye opener – Verbalizes every aspects of the social structure that you sort of perceive and assume conspiracy theories around it – and at the same time provides a good understanding of the superclass elite; their strengths – their weaknesses – etc.

A DEFINITE MUST READ. The book also asserts that the world has become a different place after the “globalization” phenomenon has reached its peak. As a result of this, the national boundaries do not matter anymore – And the whole world has to comply by the rules set by a few multinationals and a few political elites in the top tear of the countries around the world. These developments, the author mentions has reduced the size of the middle class around the word. As we all know, a larger middle class in the society is good for democracy – The larger the gap between the “haves” and “have wanna be” – the more autocratic society gets and at the end of the day a mass of people suffer which inevitably leads to revolutions. It is Mary Antoinette’s “If you don’t have bread to eat – then eat cake” scenario approaching closer day by day.

As I read this book, I felt like this world has evolved into an equivalent of an Indian CASTE system – If you are born poor or a middle class – there is a high probability that the “system” would try to keep you that way … And vice versa if you are born rich. So, rather than being classified (casted) based on what you do – you are currently being casted based on what you possess. I got a first hand feel of this when I walked in posh clothing shop in Beverly Hills (in my Jeans and T’s) and the looks on the girls behind the counter pretty much gave it away – Now I know how a low caste person entering a higher caste temple in India felt like …

At the end of the day – I drew the same conclusion that I drew on multiple occasions when I pondered similar questions about the fate of our world – It is really up to us, the people, to come together and collectively make the right decision about our lives. Decision made under fear (for example another terrorist attack or gasoline prices) often leads to wrong people in the positions that make the highest impact in the world. This country of ours offers great opportunity for folks to appropriately use their vote and chose the right people in the political office to do the right thing – if we don’t use it wisely, then collectively, we deserve what coming to us … God Bless us all …

I've been an active member of the LinkedIn forum for some time and would highly recommend everybody to join it. It helps you manage and expand your professional network, and is specially handy when looking to develop business leads, identify candidates for strategic partnerships, and search/network for your next career opportunity.

From time to time, I respond to select questions that are posted on LinkedIn by it's members. Going forward, I will start sharing with you some of the pertinent questions and my responses to those questions, so that you may benefit from or comment on my line of thinking.

Question Details:

Does CIO means; (your IT) 'Career Is Over'?

Almost a decade ago a CIOs was accountable only for using technology to enable business processes. Now a days they are expected to be business leaders foremost; build trust between business and technology associates, build compensation plans and career developments to drive alignment, etc...

Due to these major transition, do you think the CIO role will split, be absorbed or disappear?

On 3/5/08 9:16 AM, Uday Kumar wrote:

A timely and thought-provoking question. My short answer, the CIO's role is here to stay, in it's entirety.

Now for the details. "Major Transitions" are a constant when it comes to business, does not matter which vertical we look at. Leaders, at every level, but more so at the Exec/C level, and the leadership roles have to evolve with all such transitions. The CIO role is no exception. Once upon a time, this role was looked upon as more of a "back office" or "tactical" role; it's current definition and requirements have significantly moved it up the value chain and made it very "strategic" to the success of every business. Amongst the factors that have been behind this movement are the leaps in technology and innovation, the renewed importance on corporate governance and accurate financial reporting, and increased Globalization of businesses and their supply-chains.

As one of the earlier responders correctly pointed out, the CIO function can report up to a COO, CFO, or CEO, depending upon the context and circumstances. In the current business landscape, a company's operations are broadly broken down into 2 components - 1. Business, 2. Technology. The CIO is focussed on the Technology Operations. And you are correct, the CIO's ability to deliver to the customer (internal & external) and his/her success, depends up on how well he/she understands what drives the business side of the house and how well he/she can organize the technolgy team to deliver value-added services to the business team. It is implied that they have a deep and wide understanding of all aspects of technology (delivery, support, governance, etc.).

Let's start with the basics. CSR is an acronym for "Corporate Social Responsibility" and it is, these days, the most fashionable and hip business mantra to talk about. Corporate executives speeches to the Wall Street and to their company shareholders are inundated with references to the various aspects and jargon of CSR. A whole host of NGOs (non-governmental organizations), in various shapes and sizes, are popping up every where you can possibly see, to lead, influence, and communicate the impact and benefits of CSR to the company, community, country, and world. You've got legal firms getting into the act, along with design/architecture firms, and even IT firms. Top Fortune 500 companies have already made or are in the process of making adjustments to their business strategy in order to let whoever-cares-to-know that they sincerely care about integrating CSR into their larger plans and global operations.

Historically, there has always been an element of "Corporate Responsibility" where in companies were used to giving back to the community in cash or kind, also known as Corporate Philanthropy. These types of investments were primarily social in nature. Of late, what we are seeing is a sort of green awakening and a heightened concern over climate change. Al Gore's "An Inconvenient Truth" has further helped raise this awareness amongst corporate and private citizens alike, and is making company after company take a serious look at their own impact on the environment. "Doing Well by Doing Good" is starting to make good business sense. Companies are starting to embrace, what is commonly being called, "The Triple Bottom Line" - a bottom line that is made up of Economic/Financial , Social, and Environmental goals and objectives.

Let me outline 3 important aspects of CSR, which will help you grasp this phenomenon better -

1. How are companies enabling CSR?

2. What kind of ROI are companies getting on their CSR investments?

3. What role are the NGOs playing in the making company's take into account Purpose, and not just Performance?

The commitment and investment of the company towards CSR varies based on it's industry vertical. For example, if we look at Pharmaceutical firms like Baxter, Pfizer, Roche, etc., they are demonstrating social responsibility by giving away drugs for free or "at cost" (i.e. no profit). As for the environmental responsibility, they are looking at aspects likes packaging, where recycled products are being used as much as possible, and power, where small investments are being made in green/clean energy sources for generating power to run parts of their manufacturing sites. Further, they are also starting programs that help recycle countless drugs that are sold but are not completely consumed by the patient/consumer. Drugs, in liquid form, that people have been dumping in their sinks or toilets, eventually make it to Mother Earth, and YES, they do have an adverse effect on the soil. Let's take another example, that of the airline industry. Once again, they are showing their commitment to mother nature by trying to use as much of recycled products as possible, findings way of improving fuel efficiency (whether they are on the ground or in the air), and investing in technologies that help them reduce their carbon emissions. Generally speaking, companies are doing some or all of the following things to implement CSR -

1. Giveaway free or highly subsidized products to the under-served and needy

2. Invest in health, food, and education related initiatives in poor regions of the world

3. Invest in clean energy sources and reduce carbon emissions level

4. Increase use of recycled materials and products

5. Work with NGOs and Government Agencies on helping define CSR standards and codes of conduct

Let's now examine what exactly are the companies trying to achieve by doing some/all of the above. Companies are just not going to throw their hard earned money away for nothing. Companies want to invest in areas where they believe they will be able to get the most mileage and returns on their investments. The most important asset a company has is it's reputation and brand; enhancing these are on top of their agenda. There is a direct connection between what you give back to the society and what you get in return. There is so much scrutiny these days from Government and NGO entities alike, that none of the multinational companies can afford to misbehave. There are all kinds of rankings and awards when it comes to non-financial performance of companies and companies are starting to care about them. Moreover, the shareholders and the investors are getting savvy about CSR and they are demanding more from the companies that they are investing in. They want to know what the company is doing to help the victims of Hurricane Katrina, what they are doing to ensure that none of their suppliers are utilizing child labor, and what they are doing to promote diversity at workplace. These are just a few examples of things that are helping shape the corporate strategy and CSR to-do list. Demonstrating maturity and metrics on CSR performance, to the stakeholders, goes a long way in improving a companies Sustainability (another buzzword these days). Along with reputation and brand, companies are also able to see improvement in their risk management capabilities, as well as employee retention rates, employee morale, and most importantly, their financial performance. Finally, they are able to play a meaningful role and help shape public policy on topics of social and environment importance.

Finally, let's look at the role that NGOs are playing within the CSR space. For one, they are relishing being the "watch dogs" of corporate non-financial performance and are keeping a close eye on who is doing what and to what extent. They are organized by issues - some are focussed on the eradication of poverty, others on protecting the wild life, and yet others on preserving the polar ice caps. These are just a few examples of the hundreds of issues that NGOs are championing and influencing. They are funded by public grants, charitable donations, and corporate philanthropy, and also enjoy a number of tax incentives and subsidies. These NGOs are also helping shape public policy, forcing Governments to revisit ineffective laws, establishing CSR benchmarks/standards, and raising the awareness of important issues within the local as well as global communities. They are also serving as useful partners to global companies, who want to collaborate with an NGO, relevant to their line of business, in order to understand where and how to invest.

Like I mentioned earlier, companies have started taking it seriously in order to keep up with the society's fast-changing expectations. They are looking at CSR as something that will also help them differentiate from their competition and give them a competitive advantage. And this means that we all, as members of the corporate work force, also need to start taking this seriously in order to keep up with the change. Some of us may already be part of their company CSR initiatives, others may be called upon in the future, and some may want to think of a career in this new area of specialization. Whatever you choose to do, I hope you were able to get a general but good feel of what CSR is all about and how it is impacting all of us.

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