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I think the best news of the week was this. Warren buffet is giving out 85% of his wealth. It means $30 billion capital injection to Bill & Melinda Gates foundation. Maybe it’s too early to say that capital nepotism is coming to its end but the richest men are showing the way. Hopefully others will follow. New trend is to give money for wise people rather than to inheritors.
In one earlier comment I already wrote about Microsoft, but I’ll repeat myself. I admire one thing in Microsoft, or to be exact in the ownership of Microsoft. Still significant part of ownership is on Bill Gates hands and when Microsoft creates profits and company value increases and it is good news for Bill & Melinda Gates foundation. This foundation will practically inherit all. Nokia’s ownership is more distributed and profits are not channeled such a way. Shareholders can’t be selected and their values, dreams and ethics can’t be influenced. So it’s extremely important to make things in a right way inside the company. I want to be part of the company which is handling well corporate social responsibility and taking environmental issues seriously. I’m totally convinced that most of Nokia’s customers want to feel good (also on ethical side) when they make purchasing decision. There is also a business potential, but personally I’m more interested about doing the right thing.
What could be the role of S60 in this? When we are talking about S60 and potential buyers, we are talking about people who actually belong to the highest 5% income segment in the world. Look at your pocket. If you have S60 device there, you are likely be in this group. Buying decisions in this group are not just economical but has to be also ethical. On the other hand many S60 potential buyer are kind of techie and this they values can be even opposite. This was the counter argument what I got when raised this issue.
I would split people to 3 groups. People who prefer ethical products (“greens”), people who are neutral (don’t care about this aspect) and people who don’t want to buy ethical products (“anti greens”). The middle group is the biggest. But is the third group so big and powerful that you don’t dare to change way of working and image of your product? You know my answer. Maybe it’s possible to find better “organic product” than S60 which could be used as spearhead product. S60 is close to my heart and I want to start a visible change from it.
Comments
There are two kinds of people: those who divide people into two groups (or 3), and those who don't :)
I have to disagree on the 'highest 5% income segment', it's not even close. Many of my friends have bought Nokia N70 and they are certainly not in the 5%. The point is that they could have bought a "feature phone" for the same money, but chose S60 because of some particular reason (big screen, nice UI, etc.)
Sorry I didn't have anything meaningful to say about your actual topic..
Posted by: Jukka | June 29, 2006 10:40 PMLet's make one calculation. "Nokia alone has cumulatively shipped 50 million S60 enabled devices by end of Feb 2006". Total S60 number is higher than that, but 50 million out of 6.6 billion people makes less than 0.75%. As you said, not only the richest have bought S60 device but I would say they all are wealthy. I widened the group more than 5 times, when I said 5%, and that means 330 million people globally. I'm pretty sure that your friend belongs this privileged group of 330 million.
Posted by: Jouni | June 30, 2006 07:14 AMOut of the groups I think I belong to the middle one; "don't care" but why have you narrowed down the issue to only the green debate. Corporate Ethics and giving back to the community, this is a major issue I feel.
My respect for BG and WB have grown tremendously with their philanthropic guestures; my buying decision would also be influenced if companies are perceived to be contributing to major humanitarian issues in the world. Hunger, Disease, Poverty, Conflict. What can Nokia do to help with these issues?
Boom
Posted by: akBoom | June 30, 2006 09:02 AMI totally agree. If company wants to make a difference it has to give back to community. I also would like to see that there is a focus when doing it. One company can do one thing right and others will take care of other projects. Distributing small pieces everywhere is a good strategy in when doing good.
I don't want to name here (yet) what should be selected as “doing good” focus area for us. But when there is a focus and it's communicated clearly people undestand immediately the responsibility aspect and it also becomes valuable sales argument.
The Body Shop is forerunner in these things. Actually they don’t do that much direct donation of money. It’s more about fair trade with suppliers and using natural incredients sourced directly from producers. This is easier to do in some business, in technology area supporting selected development by donation sounds more feasible. Anyway responsibility is wide topic and when you claim to do things well, you also have to do things well throughout the company. If this is not coming from the heart and is only a new marketing strategy, it is better to forget the whole thing.
Posted by: Jouni | June 30, 2006 10:10 AMHello Jouni. Completely agree with you. For me, giving back to the community also means that the people developing and manufacturing a product are treated fairly. A lot of negative stories are heard and seen today of how manufacturing of goods is done on the back of people, especially in countries such as China. When I look at Nokia/S60 products, "Made in China" is already printed on lots of parts. Making sure the workers (and the environment) are treated fairly does not only help them, it helps us all and benefits of such behaviour would set in far quicker then distributing wealth later on.
Posted by: Martin | July 1, 2006 04:36 PMMartin