Fighting Corruption and Promoting the Rule of Law through Transparency - PowerPoint Presentation Example

I Introduction/ Mission ment This is the mission ment of my batik cloth manufacturing business in Indonesia: To create returns on capital for the shareholders by growing economically and profitably. In this process we will create value through, highlighting the beauty of traditional batik designs of Indonesia across the world, exploring new avenues for marketing batik across the world and by providing employment, training and development to the local community II CORPORATE RESPONSIBILITY/CATASTROPHE In the 1998, during the economic crisis in Indonesia, there were many threats to the business. Firstly, ethnic Chinese were targeted and attacked. The anger against the government was turning into a intercommunity rage. Our business premises were vandalized and set on fire because of the ethnic origins of our promoters. It was a major set back to our organization. Luckily, there was no human loss but the material loss was huge. Another major development was the collapse of Indonesian Rupiah which sent the economy into a tailspin. So for our organization, there were major setbacks like only two more studios were in the working condition, employees were scared to come for work, Rupiah had no value, Transportation system had collapsed. The share holders wanted to shift to a new place. But we held to the ground that our employees who had been trained were here. We had to develop even further relationships within the community to harmonize the relationships. Rather following a punishing approach, we took up a more active societal role which was very effective. A long run plan was developed to improve the living condition of the people. With the new government in place, everybody was optimistic. The new government also setup a proglobalisation climate which was very useful for companies like us. Export regulations were eased and restrictions were removed. In this scenario, the effect of Globalution was that there The dependability and the trustworthiness was lost. These effects of Globulation was overcome over a period of time by being committed to our mission. So we continued doing that with more commitment building trust and harmonious relationships with the community. 3. AVERAGE/MOST LIKELY SCENARIO For my company, we have both benefited from globalization and globalution. Because of globalization we are able to market our batiks across the world. Europe being our major market. we have now 7 batik workshops to cater to the tastes of the western customers. The batik cloth is designed for making various garments according to the western fashion trends. We are in the process of achieving our Lexus type desire by having the modern management techniques and cost control and the olive tree need is satisfied by holding to our traditional intricate designs. The creative team travels to remote areas of various islands across the archipelago to collect native designs. also there is an increased desire among the Indonesians to dress up in batiks even for work, the olive tree symbolization. So the local demand and the international demand for our products have increased. 4. ENTREPRENEURSHIP/BEST-CASE SCENARIO In 2004 our company designs won the best Design award in Milan. Our designs were motivated by ethnic creativity. After the announcement of the award, we got recognition and attention from various institutions within the country and across the world. We got German funding of USD 2 million to set up new batik garment factory. The batik cloth produced in our studios will be made into garments in our garment division. For that we had to have international fashion designers who could use batik materials to make trendy dresses instead of just the traditional sarongs and shirts. In a country with the average family income less than USD 200 p.m, it is a great advantage to the community and the country at large. Because of globalization many doors have been opened to us. Also because of globalution, there is an increased realization among the Indonesians and the government to focus on our strengths and to increase our velocity towards growth and this approach financing has benefited us especially being in the traditional batik business. 5. IP Our company owns copyrights on various batik designs. Our products are sold only through select outlets. Because of the crisis, we had lost a lot of good designs in the fire which had to be recreated. Because of globalization we had to increase our designs and this made our design collection more vast our IP is of more value than before. After the opening of the garments division our copyrights have increased from just motif designs to garment design. We had also started a website explaining how to make batiks and some of the designs are shared to create profits from our IP. It is It is interesting to note that modern day development economists, such as Hernando de Soto of Peru, and organizations such as the World Bank, have only relatively recently acknowledged the key role law plays in development and that corruption is one of the biggest barrier to development. Also As de Soto himself attests, that informal entrepreneurs were blocked out of the system by a wall of red tape. This factor also plays a major role in the development of the company's strategy. In Indonesia one of the major problems for the business community is corruption and lack of transparency. Our strategy was to observe and move. We were not sure about the future of the country, so we had to just hold our operations together and wait for normalcy to come back. When we started to have benefits from the new government's proglobalisation policies, again there was the problem of paper wall. Also the informal entrepreneurs mentioned by deSoto, play an important role in our business in the form of subsidiaries and vendors and suppliers who were affected by the red tapism. The government tried to be transparent and investor friendly, but there was very little effect. Next, after we won the award at Milan, we had grown to a considerable size and still we had ti fight with the government red tape at each and every step of government approval for foreign investment. Citations: 1. Hernando de Soto, The Other Path, Harper and Rowe, Basic Books, 1989 2. Henderson Keith, Global lessons and best practices, fighting corruption and promoting the rule of law through transparency, openness, judicial independence, Chendu, China, 1991 3. Landler Mark, Unrest Deepens in Indonesia, But Suharto Offers Defiance, The New York Times, Del.icio.usDigg 1. Facebook 2. Newsvine 3. Permalink May 10, 1998 Read More