Armenian role models for Armenian business
In December (08) Jim Wright and I hosted a forum of business leaders in Yerevan the capital of Armenia. What exactly were we doing there? Well, our presence made more than one person curious and even a bit sceptical. Understandably so: many people have come and gone before us. Crazy ideas, bad ideas, money, promises – these things and more have flown in, some with an effect, some into the wrong hands. Many have flown out again leaving behind a blanket of lethargy, as one friend described it. So, visitor, why are you here?
In our previous visits we had been inspired by leaders who have a passion for impacting their country through good commercial business. So now we wanted to ask them: what do they think are the key societal needs and how can business play a role? The right kind of leaders coming up with an answer they really believe in could set the scene for enterprise that delivers economic value, contributes to development and impacts people's lives – a special investment opportunity for a socially motivated fund.
As our guests were trickling into the cosy meeting room in Villa Delenda I handshake with the owner, Antonio, also a medical doctor and founder of Family Care Armenia, a wonderful charity working with traumatised children (caused by the earthquake) in a remote village. The Villa is a tastefully restored 1906 building, a unique B&B house, a jewel in the centre of Yerevan, amidst rising blocks of apartments (but mostly empty because of prices which are out of reach even for an ex-pat we met who works for a large multi-national institution). As I praised the place, Antonio, who has lived in Armenia for 20 years, replied: “Unfortunately I have been dispossessed, I don't even know the new owner, it will be demolished within a year. My experience has been like wet concrete in the summer: you put your feet in and it feels nice so you stay, but then you are stuck and there is no way out.” So perhaps an additional question implied in some of our guests' curious smiles is: “do they know how difficult it can get?”
But then followed an absorbing day of discussions around a table with local people who own and run businesses, manage funds, advise corporations and aid agencies, provide financial services – all smart people, well placed to impact their society through what they do. Some of them have been around for decades and seen through the Soviet times and the changes. One company is passionate about books and sponsors a TV program to educate people. Some have gained credentials as “long distance runners” and built trust relationships such that some foreign companies supply to them without guarantees (in a business environment considered high risk, shunned by many foreign investors and sometimes damaged by bad practices of other business owners). Another company endures a constant battle against unfair competition: his competitors set up phoney stores to prove they sell with receipts, but in reality their income comes from undocumented wholesale business. His salaries (post full tax, pension, social insurance) struggle to compete against companies who pay only the minimum wage (on paper!). Why endure all that? Because their country matters to them.
Gradually the discussion gravitated around a central theme: our economy needs role models. Business practices based on the foundations of character, values, integrity need to be lived and propagated. And although it is down to the individual (companies and their leadership) there is a case for something common, a shared platform, a supporting network. A charter could be drawn up, and all those committed to it would benefit from a shared resource for technical, audit and legal assistance. If the commitment is thoroughly vetted and credible to the outside then a very rewarding quality mark or kite mark could emerge. Finally there was a strong consensus that such a network should be inclusive: other businesses should be given a space to affiliate and the time to learn and adapt their own practices to the full charter.
We felt privileged to be part of such a forum even though we were actually the hosts. Now the follow-up. Ultimately this won't work unless it is owned by a core group of stewards on the ground. At the same time it probably won't happen without an umbrella and funding from outside. This is a delicate balance, requiring several iterations and relationships to mature. We believe (despite the global economic downturn and perhaps because of its nature) we will encounter increasing support and doors will open .... once we risk the next step.
In our previous visits we had been inspired by leaders who have a passion for impacting their country through good commercial business. So now we wanted to ask them: what do they think are the key societal needs and how can business play a role? The right kind of leaders coming up with an answer they really believe in could set the scene for enterprise that delivers economic value, contributes to development and impacts people's lives – a special investment opportunity for a socially motivated fund.
As our guests were trickling into the cosy meeting room in Villa Delenda I handshake with the owner, Antonio, also a medical doctor and founder of Family Care Armenia, a wonderful charity working with traumatised children (caused by the earthquake) in a remote village. The Villa is a tastefully restored 1906 building, a unique B&B house, a jewel in the centre of Yerevan, amidst rising blocks of apartments (but mostly empty because of prices which are out of reach even for an ex-pat we met who works for a large multi-national institution). As I praised the place, Antonio, who has lived in Armenia for 20 years, replied: “Unfortunately I have been dispossessed, I don't even know the new owner, it will be demolished within a year. My experience has been like wet concrete in the summer: you put your feet in and it feels nice so you stay, but then you are stuck and there is no way out.” So perhaps an additional question implied in some of our guests' curious smiles is: “do they know how difficult it can get?”
But then followed an absorbing day of discussions around a table with local people who own and run businesses, manage funds, advise corporations and aid agencies, provide financial services – all smart people, well placed to impact their society through what they do. Some of them have been around for decades and seen through the Soviet times and the changes. One company is passionate about books and sponsors a TV program to educate people. Some have gained credentials as “long distance runners” and built trust relationships such that some foreign companies supply to them without guarantees (in a business environment considered high risk, shunned by many foreign investors and sometimes damaged by bad practices of other business owners). Another company endures a constant battle against unfair competition: his competitors set up phoney stores to prove they sell with receipts, but in reality their income comes from undocumented wholesale business. His salaries (post full tax, pension, social insurance) struggle to compete against companies who pay only the minimum wage (on paper!). Why endure all that? Because their country matters to them.
Gradually the discussion gravitated around a central theme: our economy needs role models. Business practices based on the foundations of character, values, integrity need to be lived and propagated. And although it is down to the individual (companies and their leadership) there is a case for something common, a shared platform, a supporting network. A charter could be drawn up, and all those committed to it would benefit from a shared resource for technical, audit and legal assistance. If the commitment is thoroughly vetted and credible to the outside then a very rewarding quality mark or kite mark could emerge. Finally there was a strong consensus that such a network should be inclusive: other businesses should be given a space to affiliate and the time to learn and adapt their own practices to the full charter.
We felt privileged to be part of such a forum even though we were actually the hosts. Now the follow-up. Ultimately this won't work unless it is owned by a core group of stewards on the ground. At the same time it probably won't happen without an umbrella and funding from outside. This is a delicate balance, requiring several iterations and relationships to mature. We believe (despite the global economic downturn and perhaps because of its nature) we will encounter increasing support and doors will open .... once we risk the next step.
posted by luca bosatta at
4:10 AM
