Capitalism must change to avoid another Genoa

Willmott's thesis comes at an opportune time. The fallout from Genoa and the preceding clashes between the burgeoning anti-globalisation movement and the perceived agents of capitalism has focused attention on the role of big business in society.

The clash has spawned a mini-industry, with the anti-globalisation groups first off the blocks with Naomi Klein's No Logo leading the charge. The attendant publicity has allowed the agenda to be set and business has yet to play catch-up with conviction.

Corporate culture has not responded with a coherent defence beyond the we-create jobs line or mood-creating advertising campaigns with a fuzzy green motif.

Dismissing the anti-capitalists as traditional lefties dressed in cyber clothing is missing the point, Willmott argues. He cites a survey which showed support for the idea that "what is good for business is good for most Americans" had markedly declined in the 1990s.

While Willmott doesn't claim to speak for corporate culture, he does recognise that the rules of the game have changed and that repositioning is vital.

His concept of "Citizen Brands" is based on the belief that business has a responsibility to do good in society, which goes beyond giving to good causes.

He argues that business is hampered by a paternalist approach, which is out of touch with the modern consumer, an animal that is increasingly distrustful of corporate culture and increasingly cynical about brands and what they stand for. Business, according to Willmott, has to demonstrate that the traditional bottom line is not top of its agenda but that society is. And mouthing platitudes is not good enough. Neither is sponsoring football teams (marketing) or ballet (cultural kudos).

A true "Citizen Brand" company engages with society at all levels rather the normal supplier/customer level. It recognises that a corporation has relationships with not just its customers and employees but with all citizens of the society it is operating in.

To do that, a company must be honest and operate in a transparent and open way. How it treats its employees will affect how it is perceived, and listening and acting on their problems provides the company with useful insights into how the wider world is living.

Another key ingredient is realistic levels of executive pay. Rewarding yourself mega-bucks regardless of how the company is doing and how it is interacting with the wider world is guaranteed to drive the average Joe bonkers.

Willmott argues his corner convincingly and is comfortable with the current buzzwords which he deploys as aptly as the Naomi Kleins. Whether he is listened to is another thing.

comidheach@irish-times.ie