Presentation on theme: "Drive Moral Innovations – An Introduction"— Presentation transcript:
1Drive Moral Innovations – An Introduction David S. WuPresident, Wu & Associates, LLCApril, 2012
2Table of ContentMoral innovation is an action oriented framework to drive harmonyIntroduction of Humanity and Maslow’s HierarchyDrivers for Individuals and GroupsMoral Innovation and the Four Worlds of humansExploitative WorldZero Sum Game WorldAscetic Living WorldHarmonious WorldDistribution of Humans by Maslow’s Hierarchy LayersMoral Innovation LinesMoral Innovations in ChinaCase Study – Solar energy in ChinaSummary – Next Step
3Disclaimer No one can please everyone all the time There is no absolute scale for moral innovations. If we take them apart, there is no absolute scale for morality, and no absolute scale for innovation. Fortunately, we do not need absolute scales. We use a relative scale to average moral innovations. By definition, average moral innovations mean average morality and average innovations. High/low morality and high/low innovation are relative to the average. By analogy, the Director of Admissions at Princeton University shared 20 years ago that 16,000 applicants apply to Princeton each year, but only 2,000 or slightly more than 10% get accepted (the percentage is lower today). If you do not look at the quality of the essays, teachers’ recommendations and the volunteer alumni who interview the applicants, about 9,000 applicants have roughly the same SAT/GPA statistics. Therefore, the Admissions office can roll dice to admit applicants within these 9,000 applicants without any visible impact on the SAT/GPA profile. This approach would miss the best Asian Americans who work full time to support their family and take care of siblings while still taking a full load of college level courses in high school. In this analogy, a rejected Princeton applicant can still be a superior student, even though he/she is “below the average” among Princeton applicants. Of course, Princeton takes into consideration all non-statistical profiles such as essays and alumni interview reports in order to reinforce the “best undergraduate education” ranking. Keep this in mind when you read moral innovations.No one can please everyone all the time
4Humanity Humanity represents 7+ billion individuals on earth (in 2012) On average each individual knows less than 10,000 people during a lifetime (implied in the six degrees of separation)A person at birth is determined by the parentsAfter birth, that person is driven by his/her passions and needsHis/her personality and drive, influenced by family, define a person’s networkParents, siblings, relatives, children and friendsNetwork of acquaintances and work associates/teammatesApply First Law of Geography to groups with similar values and culture“Everything is related to everything else, but near things are more related than distant things”Race/ethnicity, culture, nationality, language, wealth/power, etcChurches/Temples/Synagogues, schools, subjects of interest (e.g. music, literature), etc.At death, a person physically stops driving passions and needsSome believe the soul will last forever, but not the body on earthAggregate individuals into groups reflect averages only, outliers will always exist
5Maslow’s Hierarchy is a static snapshot of Individual’s Needs At any point in time, a person has a combination of five layers of needs
6Everyone has unique drivers to climb this hierarchy… Focus on an Individual’s dynamicsDynamic Drivers:Passion, faith,Commitment,Motivation, etcStatic Positionat Time 1(e.g. birth)Static Positionat Time 2(e.g. death)Everyone has unique drivers to climb this hierarchy…Tergiversation (e.g.politics) distort meritocracy…Those who can, will seek shortcuts
7Morals and Innovations Defined Follow Golden Rule: Don’t do unto others what you don’t want others to do unto youConfucianism cultivates virtue and develops moral perfectionA habit of the soul, according to Aristotle’s Nicomachean Ethics adopted by St. Thomas Aquinas ( ) for ChristiansDoing the right things, even when no one is looking (e.g.InnovationsConceptualize or modify status quo to enrich livesCreate advantage for some, but most of the time also create disadvantages for othersMoral Innovations evolve over timeHigh moral, high innovation = harmonious progressHigh moral, low innovation = ascetic preservationLow moral, high innovation = exploitative progressLow moral, low innovation = zero sum gameHarmonious Society has high morals and high innovation
8Moral Innovation Framework Exploitative ProgressHIFour Worlds:High Innovation/Low Moral = ExploitativeLow Innovation/Low Moral = Zero Sum GameLow Innovation/High Moral = Ascetic LivingHigh Innovation/High Moral = Harmonious ProgressLOWZero Sum GameLOWFour Worlds reflect 5,000 years of humanity8
9Global Population Distribution Christians (33%)Indians (18%)Muslims (24%)Chinese (20%)Global Population Distribution1800: 1 Billion People2010: 6.8 Billion People- 50% Catholics50% Protestants andOrthodoxChristians (29%)Indians (17%)Chinese (30%)Muslims (18%)- 85% Sunni- 15% ShiiteOver 90% humans in these four groups, with <10% overlap*China and India had over 50% of the 100 million global population reached about 2,500 years ago, when Roman Republic started.China and India had over 50% of the 5-30 million global population reached about 5,000 years ago when Egypt and Sumer dominated.
10ChristiansThe Protestant Confederation dominates USA and UK Christians**260 million of 360 million people in USA and UK are Christians million Protestants, 80 million Catholics, and 20 million Anglicans.
11Exploitative World Moral Innovations Morals10 Commandments with exceptionsOld Testament (Joshua 6) violates the “Thou shall not kill” commandmentLife begins as sinners (Augustine)ScriptureEgyptian Book of the DeadBible (generally accepted = books)Book of Revelation describes hellAristotle’s Nicomachean Ethics adopted by Catholic Christian St. Thomas Aquinas ( ).InnovationsPowerful bureaucraciesVatican’s bishopsNapoleon’s codesCrusadesHeaven without purgatoryForced exodusAboriginal deaths in South America, Tasmania, and other placesAfricans to Americas and Europe as slavesMuslims to Pakistan, Hindu to IndiaWealth accumulationInquisitions (e.g. Spanish Inquisitions)Opium Wars in ChinaServitude motto: “To serve God in God’s Kingdom”
12Muslims The Muslim Confederation has many more national boundaries 12 *Sikhs have Hindu roots and Muslim influence. E.g., the word Khalsa (baptized Sikh) has Arabic origins. There are 5 “K”s in Sikh, similar to Islam’s 5 pillars
13Zero Sum Game World Moral Innovations Morals5 PillarsScripture77,934 words never to be changed114 chapters with verses eachFourth day after death, walk the Zoroaster bridge to heaven, or fall into hellAdmission to heaven only by Allah, with 7 grades of pleasure in celestial paradiseRecognize Jesus as apostle, just like Adam and Eve.InnovationsMostly focused on better weaponsSumerians invented wheels.Amorites invented the Zodiac.Hittites improved upon the Egyptian chariotsAssyrians invented the battering rams and excavations to remove city walls.Muslims improved upon Chinese invented gunpowder to make rockets, and invented programmable robotics, etc.JihadApply to both Shiite and Sunni MuslimsUmma prohibits separation from Islam – perpetual warfare
14Ascetic Living WorldCombined Pakistan/Bangladesh/India had over 1.5 billion people in 20101414
15Ascetic Living World Moral Innovations MoralsHenotheistic (~1 million super beings)Pursue Nirvana (nothingness)Hindu Dharma (ethics) and Samsara (Rebirth)Buddhist (Karma)Four Truths (sufferings)Ten VirtuesSocial StructureHinduism united India with the four canonical Samhitas of the ancient Hindu scripture based on scribes of oral communications (developed chaturvarnya – caste system)5 realms for rebirth in Buddhism, and more than 20 hells in HinduInnovations are also pragmaticEarliest cotton and cotton related textile production was along the Ganges RiverEarliest shipyard with 225 meter x 37 meter dry dock along the Ganges RiverAryabhata was the earliest to discover that the orbits of the planets around the Sun are ellipsesAccepted colonization for 500 yearsMongoloid Emperor Babur first to take possession of the Kohinoor DiamondBritain took Kohinoor Diamond to England and cut the 186 carat diamond to carats for the British crown in the 19th centuryReadily accepted progress as a Mongoloid, then Christian colony1515
16Harmonious Progress World President Hu Jintao is driving for “harmonious society”16
17Harmonious World Moral Innovations MoralsLive ethicallyPriorities areSelf (修身)Family(齐家)Country(报国)Humanity(为人民)Societal beliefsChange (易经)Ethics (道德经)Arts (诗经)Egalitarian(墨子)Confucius (论语)Free will(庄子逍遥游)Laws (韩非子)Eternal Life with ReincarnationInnovations are pragmatic/ancientCompassGunpowderLarge scale irrigationEnvironmentally friendly world (大同世界)Horse harnessPaperPaper currencyPrintingQi (or dark matter/energy today)Failed to continuously improveGunpowder helped Muslim invent guns, and Christians invent cannonsPaper and print helped Germans invent type-print to recruit ProtestantsOveremphasized morals at the expense of innovations17
18(Population in Billions (Population in Billions Distribution of Humans by Maslow Hierarchy Layer(Population in BillionsAround the year 1800)Key word for the levelWorldChineseIndiansChristiansMuslimsOthersSelf-ActualizationLegacy0.00020.00010.0000EsteemStanding Out0.020.010.00Love/BelongingAcceptance0.250.140.09SafetyComfort0.380.100.060.08PhysiologicalSurvival0.350.050.04Total1.00.30.170.290.18(Population in BillionsAround the year 2010)Key word for the levelWorldChineseIndiansChristiansMuslimsOthersSelf-ActualizationLegacy0.02000.00400.00200.01000.0000EsteemStanding Out0.280.050.040.180.010.00Love/BelongingAcceptance2.300.161.500.20SafetyComfort3.200.900.410.850.14PhysiologicalSurvival1.000.100.50Total184.108.40.206.31.60.4Christians led the industrial revolution and grew the most between 1800 and 2010
19Human Growth in 210 years (In Billions) Composition of Human Growth by Maslow Hierarchy LayerHuman Growth in 210 years (In Billions)Key word for the levelWorldChineseIndiansChristiansMuslimsOthersSelf-ActualizationLegacy0.01980.00390.00200.00990.00400.0000EsteemStanding Out0.260.040.170.010.00Love/BelongingAcceptance2.050.140.151.410.200.16SafetyComfort2.820.800.840.310.770.12PhysiologicalSurvival0.650.050.110.400.06Total5.81.02.01.40.4% Growth in 210 yearsKey word for the levelWorldChineseIndiansChristiansMuslimsOthersSelf-ActualizationLegacy9900%3900%EsteemStanding Out1300%400%1700%Love/BelongingAcceptance820%100%1500%1567%SafetyComfort742%800%1400%310%963%600%PhysiologicalSurvival186%0%122%150%Total580%333%606%693%789%567%Christians leveraged innovations to lead the climb in Maslow’s Hierarchy
20Findings Need Moral Innovations to drive Harmonious Progress Faith accounted for nearly 60% of population growth in the last 210 yearsChristians leveraged innovations to climb the Maslow HierarchyColonies and slaves drove unsustainable exploitative progressThe highest (self-actualization) layer is redistributing wealthIndividuals like Bill Gates: Driving philanthropyGovernments like the USA: Driving entitlementsMuslims attracted the largest proportion of the poorer populationGrowth mostly in Asian nations like Pakistan and IndonesiaThe highest layer is dominated by OPEC oil owners, but natural resources are limited, and can not be sustainedChina has not climbed the Maslow Hierarchy as fast as ChristiansInvasion by outsiders like UK and Japan woke up the dragonStrong economic growth for 30 years but not sustainableIssues include: Wealth distribution and environmental impactIndia has not climbed the Maslow Hierarchy as fast as the ChineseDemocracy is the worst form of government, except there is none betterNeed Moral Innovations to drive Harmonious Progress
21Elemental Moral Innovations Lines Exploitative ProgressHIChristians(Protestants)Christians(Catholics)ChristiansChristians(Orthodox)IndiansLOWMuslimsZero Sum GameLOWSignificant differences among the four groups over time
22Composite Moral Innovation Line Exploitative ProgressHI5000 years ago2500 years ago100 years ago500 years agoLOWZero Sum GameLOWPursuing zero-sum game instead of harmonious progress22
23Future Scenario: Reverse Course Start with USA and China moral innovation initiatives (24% of humans)Obama focused on innovations and productivityDon’t revert to British style imperialismHu focused on harmonious societiesDon’t revert to isolational communismStimulate continuous improvement initiatives with people who support continuous improvement (e.g. Protestants and Jews would add 10% of humans, or 34% of global population)Use results to seek win-win initiatives with the rest of the worldMoral innovations reinforce global leadership…Leverage localized continuous improvement initiatives
24Moral Innovations Summary Exploitative Progress5000 years agoHI500 years from now2500 years ago100 years ago500 years agoLOWZero Sum GameLOWGreen target for the next 500 years
25Summary – Next StepChinese strengths are to develop harmonious societyNeed innovation in continued globalized worldNeed to sustain 30 years of vigorous economic developmentStrong commitment to not interfere with a nation’s sovereigntyThis is very similar to Point #5 of Woodrow Wilson’s 14 points in 1919“…Adjustment of colonial claims, that in determining all such questions of sovereignty, the interests of the people concerned must have equal weight with the claims of the government whose title is to be determined…”USA strengths are continuous improvement and innovationNot burdened by the imperialist UK legacyPassed legislations on Bill of Rights, Civil Rights, Women Suffrage, Emancipation Proclamation, etc.Need to sustain global leadership and the world’s largest economyExperienced with Japan on implementing continuous improvement conceptsUSA and China can set examples for the rest of the world
26China’s 12th Five Year Plan (2011-2015) Focus on Five Key AreasRebalanceGreenGlobalizeUrbanizeInnovate – our focus todayChange from “Made in China” to “Designed in China”2626
27China is regaining global share of GDP after a century of humiliation Price for lack ofContinuousImprovementIs 28% ofglobal GDPwithin 100 yearsCurrent Baby Boomers see the rise of China, not the fall of ChinaChina is regaining global share of GDP after a century of humiliationSource: Financial Times, September, 2011.
28Guide your audience to “Moral Innovations” Compelling Story - IllustratedChina has the longest continuous history among civilizations. Chinese were the first hominids to control the use of fire millions of years agoI-Ching was the first to recognize change as a constant 5,000+ years ago. Confucius taught morality before Socrates was born 2,600 years ago. For 1,800 of the last 2,000 years, China was the largest economy in the world.Between the years 1500 and 1800, Europeans forced an exodus of 10+ million out of Africa, and mined 133,000 tons of silver in Mexico and Peru to pay for products made in China.200 years ago, Britain and other countries opened the China market by teaching the Indians how to produce and manage opium shipments to China .China’s economy as a percentage of the global economy went from 33% in the year 1820 to 5% in the year 1950, but is projected to return to 33% by the year 2020. China’s President Hu Jintao calls for a Harmonious Society for humansThe 12th Five Year Plan calls for innovation. First sentence of the Chinese National Anthem: Stand up, those who do not want to be slaves…”Guide your audience to “Moral Innovations”28
29Case Study 1 – Solar Energy in China In 2008, Polysilicon (PS) raw materials for solar panels increased to over US$400/kgSolar panel makers scrambled to sign long term contracts to ensure supply of the Polysilicon raw materialsBy 12/31/2008, the global financial crisis was in full swing, and the PS market price collapsed to as low as US$40/kgSolar panel makers faced bankruptcy if forced to meet their contractual obligations and pay PS at US$400/kgGCL - Poly was the largest supplier of PS raw materials in ChinaMany long term contracts were enforcible at US$400/kgWhat would you do if you were GCL?
30Outcome of Case Study 1 GCL - Poly agreed to re-negotiate contracts PS raw material prices came down in the new contractsGCL - Poly customers (i.e. panel makers) became loyal customersProspective partners going globalStrengthen PS market position worldwideStock market did not greatly penalize GCL - PolyBasis for Harmonious Society as Moral Innovator
31Case Study 2 – Solar Energy in China In 2010, Solar Energy Production capacity worldwide increased 130% to 17.5 GigawattsChina consumed 75,000 tons of PS, GCL-Poly was a major PS supplier at about 30,000 tons.Spot prices for Polysilicon (PS) raw materials went as high as $150/kg, with general market price at about US$90/kgMany GCL-Poly PS prices stood at US$50-55/kg (re-negotiated during the financial crisis)What would you do if you were GCL?
32Outcome of Case Study 2 GCL - Poly did not re-negotiate the prices PS raw material prices remained at US$50-55/kgSeveral reasons:Solar Energy industry will never become competitive if prices are both high and volatileSolar Energy is still subsidized by various governments todaySolar Energy industry in China will become less competitiveSlower customer acceptance worldwide if end user prices are negotiated again (already negotiated during the original contract signing, and again during the financial crisis)Basis for Harmonious Society as Moral Innovator
33Summary Know where you are coming from Know where you are going Competitive advantages/knowhow to leverageKnow where you are goingExplore/research how your competitive advantages can be customized around the globeBe respectful and be careful with assumptionsDo not be greedy or make empty promisesFollow the Golden RuleLook out for entrepreneurs vs intrapreneurs vs professional managersCommunicate to the hearts and minds of your team/workforce, reach agreements with your team instead of demanding what is expected of themBe firm on the objectives and principles. Be flexible on the path to get thereGive them a chance to succeed, supported by investment in tools and rewarding success, not just wordsListen, listen, listenMoral Innovations can be an action oriented frameworkthat delivers global harmony
34Selected References“A Theory of Human Motivation,” by Abraham H. Maslow, originally published in Psychological Review, 50, , 1943.“Correlated History of Earth,” Worldwide Museum of Natural History, Pan Terra Inc., USA, 2000“中国思想史 (History of Chinese Thought),” by Zhao-guang Ge (葛兆光), Fudan University Press (复旦大学出版社), Shanghai, China , 2001, ninth reprinting, 2010“Organizing for Profit in China,” by David S. Wu, iUniverse, USA, 2003“The Catholic Church,” by Hans Kung, A Modern Library Chronicles Book, translated by John Bowden, ISBN , New York, 2003“The Human Story,” by James C. Davis, Harper Perennial, New York, 2004“Guns, Germs and Steel,” by Jared Diamond, WW Norton & Company, New York, 2005, 2003, 1997“China – Five thousand years of history and civilization,” City University of Hong Kong Press, Hong Kong, 2007“Chinese Cultural History (中国文化史)，” by Tian Yu Feng (冯天瑜), etc. Higher Education Publishers(高等教育出版社), Beijing, China, 2007“大学,中庸(Da Xue and Zhong Yong),” by 曾子(Zeng Zi) and 孔子思(Kong Zisi), annotated and Chinese translated by Shi-mei Shao (邵士梅), Sanqin Publishers (三秦出版社), Xian, China, 2008“Destiny Disrupted – A History of the World through Islamic Eyes,” by Tamim Ansary, PublicAffairs Publishers, ISBN , New York, 2010“公司的力量(The Power of Corporations),” CCTV documentary series 1-10, 2010“How China’s leaders think(中国30年: 人类社会的一次伟大变迁),” by Robert Lawrence Kuhn (罗伯特.劳伦斯.库恩), Chinese language edition translated by Jialing Lu (吕佳龄), Chen Xu(徐辰), Rongshan Li(李荣山), and Peng Lu(吕鹏), and published by Shanghai Century Publishing Co., Ltd. (上海人民出版社世纪出版集团), 2008; English language edition published by John Wiley & Sons (Asia) Pte. Ltd., Singapore, 2010“On China,” by Henry Kissinger, Penguin Books, ISBN , New York, 2011“Financial Management with focus on Moral Innovations,” compiled by David S. Wu, McGraw-Hill Publishing Company, ISBN , Singapore, 2012