The critics ramp up the pressure at Davos

Deutsche Welle, 26 january 2012  

There is a lot to debate in Davos

The World Economic Forum in Davos is not just a get-together of leading politicians and managers. Organizations like Amnesty International are also piping up - occasionally with scathing criticism.

"Davos can not afford to be a complacent club for the rich and powerful of this world," says Salil Shetty, Secretary General of Amnesty International. He couples this statement with a call for a demonstration in Davos. The motto: "Companies must be kept on a tight leash." Nongovernmental organizations (NGO) have adopted a stern approach at this year's forum in the Swiss Alps, effectively forcing their topics onto the agenda. "The governments must take responsibility. We need stricter regulation of large corporations," says Shetty.

Shetty does not mince his words when it comes to criticizing the practices of big business. The accusations range from economic greed and corruption to human rights violations. After all, the most recent economic crisis has forced an additional 50 million people below the poverty line, according to Shetty. Indeed, the managers gathered in Davos are feeling the pressure from NGOs, but although they are on the defensive, they are unwilling to take responsibility for the crisis.

Are companies acting responsibly? 

Salil Shetty, Secretary General of
Amnesty International, wants to put
companies on a leash

Deloitte Touche Tohmatsu Limited (DTTL), a global consultancy with around 180,000 employees, has presented a new study on the influence of corporations on the economy and society.

"Most companies are already making an important contribution to society and progress," says Heather Hancock, Managing Partner of DTTL. "Companies create sustainable growth, and they also ensure there is enough food to meet the rising population or enough homes and modern transport." Most managers agree that big business has the necessary muscle to tackle the important topics head-on.

Profit is not everything 

Companies contribute significantly
 to society, says Heather Hancock
of DTLL

"The greed of corporations has eclipsed responsible and transparent dealings," counters Sahil Shetty of Amnesty. He is calling for a fair and comprehensive approach to cope with the crisis, and he wants governments to force stricter regulation on large corporations.

But how do young people feel about this debate? The DTTL study also examines the views of the younger generation, including 1,000 so-called "Millenials" (people born after 1981), currently working for Deloitte. They say personal and corporate responsibility as well as the responsibility towards society must go hand in hand. The value of a company should not just be measured by its profits but also by the nature of its contributions to society.

As a result, managers are facing growing challenges and pressure. Improved and more frequent communication between managers and their critics could help share the burden. There are tentative signs that this may already be happening at the World Economic Forum in Davos.

Author: Manuela Kasper-Claridge, Davos, Switzerland / nk

Editor: Michael Lawton

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