It may seem idealistic or even naïve for students to be taking this unsanctioned oath yet, 8 years after Enron kicked off a two-year run on accounting and financial fraud (WorldCom, Adelphia, Tyco, Global Crossing), we seem surprised that financial fraud has brought the global economy to it’s knees.  Our infrastructure is begging for systemic changes and the principles of capitalism are being challenged, yet perhaps it’s simply our moral compass that needs re-setting?

When President Obama took office, he asked us to be virtuous.  He asked business to make decisions on not just whether it was profitable, but to ask the question “is it right?”

Fareed Zakaria suggested in Newsweek’s The Capitalist Manifesto: Greed is Good (to a point) this week, that no system can work without a “sense of ethics and and values at its core.”  No matter what reforms get put in place, no matter what systemic shifts we make, unless common sense, judgment and an ethical standard are in place, future innovations in business will result in the same excess and collapse.

And at TED Talks in February, Barry Schwartz,  a psychologist from Swarthmore who studies economics and psychology, spoke about the loss of practical wisdom in business.   Incentives have driven out moral will.  Rules have created an over-reliance on whether or not they exist. Instead of nurturing decision-making capabilities and moral character, a “solution” based on pay-offs has been implemented.

So maybe the students from Harvard, Oxford and Stanford aren’t so idealistic after all.  Across the spectrum, leaders and pundits are calling on a return to old-fashioned notions of virtue, nobility and the ability to distinguish between right and wrong.  As the next generation of business leaders emerges into the worst job market in decades, perhaps this re-focus will not only serve to raise our expectations (and hopes) for future business leaders, but will be a call to action for the current management profession as a whole.

image credit: JordanH at Creative Commons

Three and a half years ago, not many would have suspected that New Orleans would ever recover, let alone demonstrate the promise of prosperity after Hurricane Katrina wiped out an already fragile economy.  At the time the levee broke, New Orleans was already suffering from an exodus initiated in the late 80’s when the oil industry began its regional decline.  But the very characteristics that have given New Orleans its unique disposition are those contributing to its stealth recovery.

Communities that support successful entrepreneurship exhibit a similar range of traits.  Not surprisingly, many of them are emotional qualities bred by circumstance and history.   New Orleans was a late addition to the United States, acquired as part of the Louisiana Purchase in 1803.  Literally separated by swamps and rivers, New Orleans benefited from both a distance and unique geographic location.  In combination with its very European roots, quite literally the city enjoyed a more laissez-faire approach to development which lent itself to a certain type of creativity and openness.

This same bayou location plus southern gulf weather has also not been kind to it, which has bred another entrepreneurial quality, emotional fortitude.   One could argue that this is an innate quality but New Orleans has an extra high concentration of this, born of survivor-ship.  From this comes a kind of optimism and resiliency that drives entrepreneurs ever forward.

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Jazzfest kicked off its 40th year anniversary this weekend under beautiful breezy blue skies.   Despite the global economic mood, the festival goers seemed more  upbeat this year as programs to rebuild the New Orleans economy are slowly taking root and beginning to yield visible results.

At the round table hosted by the Louisiana Office of Tourism on Saturday at the fairgrounds, Lt. Governor Mitch Landrieu led a group of local culture entrepreneurs and artists in a discussion for the vision of re-invigorating the economy through New Orleans rich heritage.    “We have our priorities right here in Louisiana, we treasure the arts. Our friends and family come first.  We have a shared sense of stewardship to the community”, he said.

As Seth Harvey put it, also from the state’s Office of Tourism, “We have a lot of very different assets here in Louisiana.  50% of our revenue used to come from the oil industry, now that is down to 20% but revenue from the film industry is up to $800 million (up from $25 million in 2002)”.     Louisiana has re-looked at cultural preservation and initiated the groundwork to re-build an economy that leverages its unique heritage.  From reaching out to Hollywood to create the first ever Cajun and Zydeco music category in the Grammys (2008), to fostering international interest in Louisiana’s rich culinary traditions, New Orleans is building bridges back into the state through the promotion of culture not found elsewhere.

In an era dubbed “the creative economy”, Louisiana is an interesting example of innovation. By creating tax incentives for film production to passing legislation to help create districts or cultural hubs within the city, commerce is facilitated at a very grass roots level.  Block by block, business is developing, not from harnessing the internet or technology but from the firsthand understanding of needs and limited available resources.     By tapping into the population that was born and raised in Louisiana and providing them training and guidance, Louisiana is an example of bottom-up development instead of top-down governance, a recipe for resilience.

In fact, the festival itself is a mark of the type of grass roots success that the region seems to feel at home with. The first New Orleans Jazz and Heritage Festival was originally started to celebrate the indigenous music and culture of the region.  40 years later, the festival is expected to attract over 400,000 guests, 40% of which are expected to be from outside the state.  In a down economy, this is a cultural success story.

In celebration of  Jazzfest, this series of stories will focus on why and how NOLA is a hotbed of social enterprise, a check-in on the different housing re-build efforts 3 years after the storm, and a review of some of the unique sustainable community projects that just may have scalable applications.  Stay tuned.

San Francisco Mayor Gavin Newsom, is known for his particularly progressive thinking when it comes to developing the economy of San Francisco.

According to the Long Now Foundation, which recently sponsored a presentation by him, mayors are the most powerful politicians in America, right up there with county supervisors. This is why cities pay so much attention to each other and learn so much from each other.

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Van Jones is a rising star in the green economy.  As the founding President of Green for All, he is a doer.  As the author of  “The Green Collar Economy” he is a spokesperson and advocate.  But he is actually much more than that. He’s actually Innovation 3.0.

Nancy Pelosi calls him a “magnificent disrupter”.   If she means that he eloquently navigates new paths (job creation) and connects new ideas (environmental consideration) to age-old issues (populations in poverty), then she is right.

In a recent interview with David Gottfriend, CEO of Regenerative Ventures, Van spoke of the need to revision the way we do things.  He spoke of soul level redemption.  And he spoke of the need for human recovery.    Listening to him you can’t help but be caught up in his articulate passion and belief that there is a better way out of this mess we’re in.

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Yesterday however, a New York Times article covered yet another strategy that they are pursuing, collaborative message placement in mainstream television programming.   These are not your average PSA’s (public-service-announcements) donated by networks but rather longer-term initiatives that strive to create plot lines that will  disseminate accurate information on topics that are widely misunderstood.  The objective is to use entertainment content as a vehicle for educating mainstream audiences on topics such as HIV/AIDS and education in the hopes of influencing public views and behaviors.

One of these initiatives, Get Schooled, is a partnership with Viacom that will weave education-themed story lines into existing shows or create new shows centered on education.   While some groups like the Kaiser Foundation have been doing this in some form for years, this approach is vital and new because programming content will get paid for - thus get done well and not simply under advisement.

The business of pop culture should not be treated as a separate entity from the real social issues we face, rather social issues should be treated as content that can prove to be both a valuable business avenue with a worthwhile upside.

What’s next…video games?

photo credit: Kalos2007 on Creative Commons

Laurence Summers—head of the National Economic Council—responded to criticism of the Geithner Plan, “I don’t know of any economist who doesn’t believe that functioning capital markets in which assists can be traded are a good idea.” Economist Paul Krugman responded (NYT) saying that if Summers believe that bribing traders to participate is “better functioning” then Summers should get out more. Many economists believe that this plan could be disastrous.

The Plan would auction bad mortgages held by banks. The government would join the highest bidder with an equal purchase and provide a loan to the bidder up to 85% of the bid. The loan is supposed to provide leverage such that small upward movements will bring large gains to the speculator. According to Summers and Geithner, such auctions will determine their “fair” market value.

Of course small movements downward will bring loss to the speculator as well as the taxpayer, but the speculator can count on the government to do all it can to jack up home prices. Many economist, financers, and bankers have found the Plan disastrous.

Paul Krugman, Nobel Prize-winning (2008) economist, challenges the notion that such an auction will determine fair value as “market mystique.” He analyzes the arithmetic of the Plan and shows that it’s just another attempt to subsidize the real estate industry and mortgage bankers.

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Fifteen months ago, U.S. negotiators were booed at at Bali, Indonesia, that U.S. when they threatened to veto an accord laying down a two-year negotiating process to replace the Kyoto Protocol. Yesterday, the U.S.A was applauded at a 175-nation U.N. meeting in Bonn as Todd Stern pledged to “make up for lost time” in reaching a global agreement on climate change.

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While President Obama makes strides towards dealing with the issue of climate change, many prefer that he focus on fixing the recession first. Republicans like Rush Limbaugh have been quite vocal about it but other political figures like Tony Blair say that climate change must not fall victim to the recession.

Can President Obama realistically fix both the recession and climate change?

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]]> http://inspiredeconomist.com/2009/03/03/the-economy-versus-climate-change/feed/ http://inspiredeconomist.com/2009/03/01/saint-obama-is-the-green-messiah-of-climate-change/ http://inspiredeconomist.com/2009/03/01/saint-obama-is-the-green-messiah-of-climate-change/#comments Sun, 01 Mar 2009 17:21:17 +0000 Reenita Malhotra http://inspiredeconomist.com/2009/03/01/saint-obama-is-the-green-messiah-of-climate-change/

‘Saint Obama’. A painting by San Francisco based artist, Feroza Unvala

Environmentalists, politicians and eco-minded individuals everywhere have begun to view President Obama as a new Green Messiah. In just a few weeks the President has elevated the fight against global warming to higher levels of seriousness. And now the rest of the world is joining his cause.

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Watch the speech that President Obama delivered to the nation last night. (MSNBC)

President Barack Obama gathered politicians and the public last night to talk about how to avert the worst economic disaster in since the depression through his plan to improve health care, schools and the environment.

The president recognized the enormous impact of the recession and pledged to rebuild the United States of America  to emerge stronger than before.

Here is what he said about the main issues on the American Recovery and Reinvestment Act which has recently become law.

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]]> http://inspiredeconomist.com/2009/02/25/we-will-recover-president-obama-on-the-economy/feed/ http://inspiredeconomist.com/2009/02/07/green-municipal-bonds-economic-crisis-solved/ http://inspiredeconomist.com/2009/02/07/green-municipal-bonds-economic-crisis-solved/#comments Sat, 07 Feb 2009 07:11:45 +0000 Ramsay Mameesh http://inspiredeconomist.com/2009/02/07/green-municipal-bonds-economic-crisis-solved/

Think Globally - Act Locally.

Green Municipal Bonds offer the opportunity to rescue the economy and the environment.  Local governments are needlessly watching their economies disintegrate, waiting and begging for handouts from Washington D.C., while all along the power to save their economies and help the environment lies in their hands - Green Municipal Bonds.

Traditional Municipal Bonds are debts issued by local governments to pay for schools, hospitals, mass transit, and many other projects that benefit local communities.  Citizens vote to approve a bond investment, agree to pay a property or sales tax to fund the bond measure, and the bonds are then sold to investors to raise the capital for the project.  Municipal Bonds are very similar to U.S. Government Treasury Bonds.  Both offer investors relatively safe investment vehicles with special tax advantages.

Green Municipal Bonds, are similar to their traditional cousins, they offer relatively safe investments with special tax advantages.  However, their are several differences that make Green Municipal Bonds far superior for the taxpayer, investor, and issuing local governments.

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]]> http://inspiredeconomist.com/2009/02/07/green-municipal-bonds-economic-crisis-solved/feed/ http://inspiredeconomist.com/2009/01/22/target-a-call-to-service/ http://inspiredeconomist.com/2009/01/22/target-a-call-to-service/#comments Thu, 22 Jan 2009 17:51:04 +0000 Kelli Peterson http://inspiredeconomist.com/2009/01/22/target-a-call-to-service/ Very rarely do brands get it right when inserting themselves into historic moments in time.  Brand-building generally only works around events where advertising is expected and even then it is, at best, tolerated as part of the environment.

Advertisers do pretty well with sports. In fact advertising has been woven into and is actually a part of the entertainment experience now.   But events marking history, events that speak to the core of our humanity rarely provide solid platforms to convincingly reach out to audiences and failed attempts often do more damage than good.  However, Target’s simple message to promote volunteering in honor of Martin Luther King Day not only managed to be classy, but it ingeniously captured the spirit of the times.

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President Barack Obama takes office (CBS NewsOnline)

The transition has ended; a new U.S. government is in place with a new economic agenda.

The streets of Washington D.C. were filled this morning with hopeful Americans who came to witness a great moment in history, the moment that America’s first African-American president took office. As Americans gathered together in perhaps the largest crowd that has gathered in America and as others gathered around TV screens elsewhere in the country, they were conscious of watching their savings dwindle, their jobs disappear and their ambitions turn to despair. More than ever, the American people seek a new era highlighting the change that President Barack Obama has promised.

When President Obama addressed the nation, “amidst the gathering clouds and raging storms” of our dismal economy, his commitment to addressing America’s situation of crisis was foremost:

“That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.”

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]]> http://inspiredeconomist.com/2009/01/20/president-obama-brings-hope-of-an-inspired-economy/feed/ http://inspiredeconomist.com/2009/01/04/the-obama-administration-is-taking-questionsvotes-via-the-web/ http://inspiredeconomist.com/2009/01/04/the-obama-administration-is-taking-questionsvotes-via-the-web/#comments Sun, 04 Jan 2009 18:49:26 +0000 Brenda Keener http://inspiredeconomist.com/2009/01/04/the-obama-administration-is-taking-questionsvotes-via-the-web/ I must admit that I was (and still am) a bit nervous about the Obama presidency due to age and experience, but today I discovered something that gives me renewed hope for the future.  A new page has been launched on the Change.gov site called Open Government where the American people can ask questions and vote for their stance on all issues, including Energy and Environment. 

It’s about time! So far, the response appears to be positive, from the site:

90,053 people have submitted 64,645 questions and cast 3,976,522 votes… 

The top two running questions (according to popular vote) so far in the Energy and Environment category are:
“William McDonough has designed self-sustaining communities and cities with green technology. Will the new administration seek innovators like Mr. McDonough to help pave the way for infrastructure building in the 21st Century?”

And…..

“Will transit and intercity rail projects be a major component of the infrastructure stimulus package, rather than focusing on highway projects?”

These are both excellent questions, and I firmly believe that if we are to practice what we preach with respect to green economics, we MUST improve our public transportation systems.  In Europe, you can get anywhere you want to go using public transportation.  Here in the Silicon Valley, the BART doesn’t extend from the East Bay down to San Jose and the voters have been arguing about it for ten years.  It is very difficult to get from point A to point B using public transportation in the Bay Area.
It will be most interesting to see what new questions get posted, and the new administration’s answers to these questions.  It does feel like at last, the American people are being listened to.

]]> http://inspiredeconomist.com/2009/01/04/the-obama-administration-is-taking-questionsvotes-via-the-web/feed/ http://inspiredeconomist.com/2008/12/15/crafting-solutions-for-struggling-homeowners-shaun-donovan-to-be-secretary-of-hud/ http://inspiredeconomist.com/2008/12/15/crafting-solutions-for-struggling-homeowners-shaun-donovan-to-be-secretary-of-hud/#comments Mon, 15 Dec 2008 05:50:07 +0000 Reenita Malhotra http://inspiredeconomist.com/2008/12/15/crafting-solutions-for-struggling-homeowners-shaun-donovan-to-be-secretary-of-hud/ This post contains additional media. Click here to view the full post.

Last week when unemployment numbers soared to near-record highs, President-elect Barack Obama focused on crafting solutions that will help hard-working American families and struggling homeowners during this economic crisis.

The President-elect has selected Shaun Donovan to be his Secretary of Housing and Urban Development.

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President-elect Obama met  with Al Gore and Vice President-elect Joseph Bidenenergy and climate policy — and how addressing those issues can drive the nation’s economic recovery, at the Transition’s Chicago headquarters earlier this wee to discuss

“The time for denial is over, ” President-elect Obama said. “This is a matter of urgency and national security…[but] it is not only a problem, it is also an opportunity. We have the opportunity now to create jobs all across this country in all 50 states to re-power America, to redesign how we use energy and think about how we are increasing efficiency to make our economy stronger, make us more safe, reduce our dependence on foreign oil and make us competitive for decades to come — even as we save the planet.”

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]]> http://inspiredeconomist.com/2008/12/12/the-time-for-denial-is-over-obama-chooses-his-green-team/feed/ http://inspiredeconomist.com/2008/12/09/an-interview-with-frank-dixon-founder-of-global-systems-change/ http://inspiredeconomist.com/2008/12/09/an-interview-with-frank-dixon-founder-of-global-systems-change/#comments Tue, 09 Dec 2008 23:56:21 +0000 Brenda Keener http://inspiredeconomist.com/2008/12/09/an-interview-with-frank-dixon-founder-of-global-systems-change/ Frank Dixon is the founder of Global Systems Change and the former Managing Director of Research for Innovest Strategic Value Advisors, which is the largest corporate sustainability research company in the world.  His perspective on corporate thought and sustainability is that flaws in our economic and political systems make it impossible for any company to become sustainable. In fact, Mr. Dixon managed to shake my belief in many of the fundamental “sacred cows” I learned in business school! 

Frank attributes his revised perspective to his tenure at Innovest.  He found that companies tasked with the holy grail of sustainability usually were able to mitigate no more than 20% of their negative environmental impact before starting to suffer financially. Profits could initially be increased by going green, but then most corporations hit a wall.  Why?

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