Stakeholders: Ethics & Value for All

In our “post-capitalist” world, people are concerned with more than the shareholders of a company, they are concerned with all stakeholders. Shareholders are also stakeholders, but they are one of many interests to consider, and not necessarily the most important. And the “purpose” of business is no longer defined as increasing shareholder value, but instead increasing value for all the stakeholders. Economic development discussions often replace the conventional “bottom line” with the “triple bottom line” measuring the impact on people, planet and profits.

For purposes of this discussion, we can call the following stakeholders, because each bears the consequences of the actions of corporations: shareholders, lenders, employees, suppliers, competitors, customers, government institutions and the community. I include the environment or the planet as a subset of many or all of the stakeholders because as the environment goes, so go the rest of the stakeholders.

What if a corporation paid its lenders per the terms of agreements, provided employees with meaningful work at a good wage, encouraged other businesses to grow (be those suppliers or competitors), sold customers a quality product for a fair price, abided by and helped to create laws and regulations that were good for the community and in all of the above improved the general standards of living of the community as a whole? That seems like it would be a company in which one could feel good about being a stakeholder. But you’ll note the shareholders are conspicuously absent from this list of stakeholders above. What if the shareholders of that company took their profits and spent them on frivolous living? What if they used those profits to advance causes that infringed on human rights? What if they used them to fund the sale of arms to those committing genocide? What if they simply used company funds to support a political party with which you disagree? Are any of these reasons to choose not to be a stakeholder in a corporation that otherwise seems to be doing so much good? Does the good being done by the corporation outweigh the consequences of the shareholders’ personal use of the profits? Is that even the right question to ask?

I don’t believe there is a moral or ethical rule to be followed or broken here. But as with many moral or ethical questions, it is to be thoughtfully assessed on a case-by-case basis and decided upon in the specific context of the stakeholders involved.

We are trying to do this on a regular basis in Rwanda. Here, it is possible to see the various extremes in the levels of power and it is easy to see the significant impact businesses have on their stakeholders. But as I write this, I realize our questions are not unique to this place; the same moral questions can be asked of any of the institutions we work for, regardless of geography.

Dano Jukanovich

Karisimbi Partners Makes the Headlines in Rwanda

Our plan was to avoid any ‘publicity’ or overt ‘marketing’ until we’d gotten settled a bit and earned our stripes working with some real local companies. Per usual in Rwanda, contacts and events took on an organic, unpredictable path of their own….

I had the good fortune to meet Davinah through a mutual friend. Davinah works in the Office of the President, Paul Kagame. As I tried to explain why we moved to Kigali to start Karisimbi Partners, she echoed a sentiment that I have heard a few times now: “Your story is inspiring!” I told Davinah that our story has (in part) been a response to the truly inspiring story that Rwanda is presently writing. This small country is audacious enough to dream of growth and development nobody thought possible… and that kind of vision is contagious; daily we see the diverse array of foreigners and supporters it has attracted to help in the effort.

The day after our meeting, the editor of The New Times, Rwanda’s most prominent daily newspaper, called me to say he also thought our story was inspiring. After a brief interview and a few weeks, there was a 2-page feature story on Karisimbi Business Partners in the business section! The link to the article is here: http://www.newtimes.co.rw/index.php?issue=14125&article=24218. Our little company is no longer flying “under the radar”. Word travels fast.

Onward & Upward,

-Carter

To Know Him is to Know Peace

We were only there to deliver a gift. What we received in return was nothing like I expected.

All three Karisimbi Partner families have always believed in committing the ‘first fruits’ of our labor, which is why it did not seem strange to want to donate a portion of the first company paycheck. It was not a huge amount, but somehow it just felt right to give a tenth of our earnings to an organization that honors those trying to rebuild after the genocide. In particular, we wanted to support an organization that encourages entrepreneurship. We decided on Amani Ava Hejuru, an organization committed to helping marginalized women in Africa find peace with God and one another. They focus on relationship-building while giving the women sewing and marketing skills. Their products represent excellence.

We wanted to buy three beautiful baskets made from fabric scraps. It seemed symbolic –first fruits are gathered in a basket, and our first fruits would support the business of women making baskets. Our donation could buy three baskets with surplus funds for purchasing a quilting machine that would allow them to produce more products. I communicated with Grace, the Managing Director, and was invited to their workplace. Upon arrival, their workshop appeared to be a small garage converted into a space for eleven sewing machines. Greg and Kristen Urquhart came as well (we have all since decided that the next time we present such a gift, we must all be present). We said some brief remarks and went to leave. Beata, who manages the store, asked if she could sing us a song. The drumbeats started. Her beautiful voice rang out. The others joined in. Hands began to raise and bodies began to sway. Three of the women began to dance the traditional Ingonza dance. Translated from Kinyarwanda, the following words filled that small space with such joy it moved me to tears. “Your husband cannot give you peace, your neighbor cannot give you peace, your friends cannot give you peace, your job cannot give you peace....only Jesus can give you peace.” In a way, this is a Christmas message… one that they sing and feel all year long.

These are words sung by women who lost their husbands during the genocide in horrific ways – often at the hands of their neighbors. They know what can and cannot give you peace. Where we thought our gift was small, to them it was another way Jesus was showing his love to them. And they celebrated that recognition through song and dance, completely uninhibited. I felt I was standing on holy ground. My three-year-old daughter, Anna, was hugging my leg as she listened. I said a silent prayer that she would remember this and someday be able to receive the gifts in her life with the joy and peace these women embodied.

We have the privilege of access – access to education, resources, networks. With this privilege comes responsibility. These women have received the gift of life – a second chance. Rwanda has received the gift of a second chance. We have the privilege to serve with what we hold in our hands. We also have the privilege to receive what this country extends to us.

-Jennifer Jukanovich

Address Common Needs - Hold Things in Common

As we have begun to find more opportunities to venture further outside Kigali and into rural Rwanda, our appreciation for the beauty of this place and its people has grown immensely. Apart from the heart of Africa, it is hard to imagine where in the world you might see so many tall green hills covered with cultivated crops and smiling people.

Today in Rwanda you can see a collective sense that “we are all in this together”. Despite the tragedies in this country’s past, and the struggles it currently faces, I am continually struck by what I see as simple indications of mutual affection and solidarity toward a brighter future. These indicators are probably poignant to me since the California culture I moved from was rarely characterized by: a) needs that were so commonly shared or desperately practical, b) willingness to share things I can rightfully claim as “mine”.

I regret I never get my camera out in time to show you these pictures, but some of the most colorful illustrations of what I’m talking about include:

- A community soccer ball (pictured here), one of five I brought from the states, that the children in my neighborhood use about 4 hours every day on the dirt road in front of my house. Children collect it from the guard when they wish to use it and return it when they are done.

- A group of seven school children running, laughing and attempting to share one umbrella during a sudden afternoon downpour on the way home from school

- A family of four sharing one moped

- Two boys speeding down a paved road… each with a roller blade on one foot (one right, one left, as they apparently only had one set to share)

The other day, a new Rwandan friend of mine named Shami was driving downtown and called for the attention of what seemed a random passer-by. A short, scruffy-looking man immediately came to the moving car, and Shami smiled, said a few words, and handed him money as we continued on our way. I had to ask what had just happened. Shami told me that the man was a thief he knew… and while he doesn’t condone the man’s occupation (thievery), he pities the man’s condition and makes a habit to pay him now and then so he is able to buy a bit of food. Apparently, on more than one occasion, Shami has been grateful for this man’s friendship. Shami’s car has never been broken into when parked in this part of the city, and when Shami has needed to get information on certain matters (e.g. when friend’s belongings have gone missing), this man has been a valuable informant.

It never before dawned on me that I should make a habit of paying a thief…but then, I’m still new here, and I’m not accustomed to relying so heavily on my neighbors as they do so well in Rwanda.

Onward & Upward,

-Carter

The Search for Customer Satisfaction: Charm vs. Force

When moving to a place like Rwanda after living in a place like America, one is sure to struggle with the common standards of customer service. There is actually a furniture company here with the motto: “The Customer is a King”. Yet the excitement of seeing such sentiments will quickly wear off when this company fails….

…to build the furniture you requested

…to understand the customer (‘king’) is the one who should dictate which design is best, even when the craftsmen feel it looks better with the alterations they made

…to apologize or inform the customer that the furniture they ordered will be as much as one month later than promised

H.E. President Kagame has made a concerted effort to address the customer service culture in Rwanda. He and others claim that low customer service standards will stunt the desired development of tourism and other key sectors of the economy. Immense amounts of training and funds have been channeled toward addressing this shortcoming, but commonly accepted cultural attitudes do not change overnight.

This common problem presents Westerners like ourselves with a couple viable options: charm or force. I’ve made a mini-study of the effectiveness of each strategy and will attempt to illustrate them in the example below. (Disclosure: The following example is based on an amalgamation of many actual customer experiences)

Let’s assume you visit the nicest coffee shop in town, the one that aspires to be a model of customer service for retail businesses in Kigali. You order a lunch. 45 minutes later, you ask the waitress if it will arrive soon. One hour after arrival, you have seen the people at surrounding tables, who arrived after you did, receive their orders and leave. Your waitress is clearly apologetic, but clearly unable to deliver your lunch. You consider your options and then…

Option A: Force

…you slam you hands on the table and yell at the waitress. While she runs away in tears, you scan the restaurant sure others will affirm your customer service injustice. While bystander reactions vary, some look as though they feel sorry for you… you are someone who simply can’t understand local ways (and perhaps doesn’t belong). You also feel embarrassment and disdain, for you have just exemplified the stereotype that Americans are selfish, loud and individualistic. The ‘net’ result: you still don’t have any food and you’ve perhaps lost current and potential friends as well. In my experience in Rwanda, the harder you attempt to force a quick resolution in your favor, the more resistance and resentment you face from all involved in the interaction.

Option B: Charm

…you smile, tell the waitress you know it is not her fault, and ask to see the manager. When the manager arrives, you step aside and speak quietly so others cannot hear, and explain the problem you’ve experienced. Smiling, you explain you are not trying to blame the waitress, the manager or anyone else for the problem, but you hope the manager has the authority to resolve it in an acceptable fashion as this clearly isn’t the type of customer service a store of this caliber wants to be known for. If this doesn’t work, then the same smiling and charming style may need to be applied to the owner of the restaurant. In my experience, customers who take the time to employ such charm until finding and reasoning with whoever has authority generally get satisfied in the end. Often, they even make friends along the way.

Onward & Upward,

-Carter

One Client's Troubled Story

There is a wonderful man we have had the privilege to know for the past few months. He is the founder and lead investor in a tomato processing company we have engaged as a client. The more you understand this man’s past, the more inspiring and endearing he becomes. He started the tomato processing company in 1986 because he hoped it would be able to provide stable employment to thousands of farmers at wages above the norm. Given the Rwandan climate and conditions for tomato farming, this seemed a promising concept.

The Rwandan market for processed tomatoes was being satisfied by manufacturers in Italy and other distant countries, so it was hoped a local factory could provide better quality and a better price. He and his wife were both heavily involved in managing and operating the factory in these early years. Prior to 1994, the company made good progress. Then, the tragedy of war and genocide ravaged Rwanda. Employees and their families perished in huge numbers. The buildings, infrastructure and utilities, which the company required to operate, were decimated and looted. For those who managed to survive, they were required to find a way to do so without the work and income on which they had depended. The founder personally lost his wife and four boys. For many years, he lost hope and the will to re-establish his company. The very sight of the factory re-kindled painful memories as his wife was so integral in its operations. For 10 years, the factory remained out of commission.

In 2004, public officials and new investment partners convinced the founder to revive his company. Eventually, the founder re-married and his wife gave birth to three sons. At the processing plant, he remained as Managing Director for over two years, but it soon became clear employees were stealing company funds. He took measures to address the issue and appointed a new Managing Director to take his place. Recently, Karisimbi Partners was engaged to work with this new management team and help the company reach its next stage of growth.

Unfortunately, we learned two weeks ago that the founder’s wife and middle son were both being treated for cancer. Days later, we received the tragic news that, at just 11 years of age, the boy lost his fight with cancer. We were asked to join part of the week-long ceremonies to commemorate the boy’s life. We met the founder at his home to offer condolences and a customary gift. As I have an 11-year-old son, my heart broke for this man.

It is an honor to work with clients such as this… individuals that have experienced tragedies, both past and present, yet still do what they can to help their communities. Our privilege is to partner with such people…indeed, those who need it most.

Onward & Upward,

-Carter

African Guidance Required...

For almost two months now, I have been taking classes to learn Kinyarwanda, Rwanda’s local language. It was approximately eight months ago that it became clear the long-term impact we were hoping to affect with Karisimbi Partners would require a long-term residence in Rwanda and long-term relationships with clients. Appreciating the cultural and language translation required to truly understand and help these client companies, it seemed one of those on our team should speak the “language of the heart” which Rwandan’s often prefer to use to when Westerners are not around. Besides… Greg Urquhart speaks French very well, Dano Jukanovich speaks Mandarin Chinese and I felt like an under-achiever (and my weak Spanish is of no use here). They say that your capacity for learning a new language quickly diminishes after your formative early years. Since I’m about to turn 40, I thought I’d better get started!

My twice-a-week tutorial sessions have been led by Silas Twagirumukiza, the warmest and most patient guide you could have for such a journey. It has been a huge blessing that Jennifer Jukanovich has also joined us on the path to learning Kinyarwanda, proving that difficult journey’s are made easier with the right traveling companions. Together, the three of us share a cup of tea on weekday afternoons, struggle with the homework, laugh at the “foreignness” of the language and perspectives. We do take time to admire our surroundings, indulging in the occasional tangent to admire afternoon lightning storms, colorful birds, or cultural insights along the way. But one phrase from our study guide continually jumps out at me…

“This (word/phrase) must be learned with the help of an African”

Rwanda is a small country, and Kinyarwanda is not a major language, thus there is nothing like “Rosetta Stone” to show us the way. We have a book written by a Western missionary over twenty years ago and copied so many times that many pages are hardly legible, and most of those have writing in the margin. There are some efforts to facilitate learning Kinyarwanda using more ‘modern’ methods, but Silas is effective even with such materials (and students such as us!). The reason the phrase “must be learned with the help of an African” jumps out at me is because of the humility of the author and the profound relevance of the statement. It really doesn’t matter how long I live here and study the language, it is likely I will never be as good a teacher as a native Rwandan could be. To expand this notion further, there are many things besides language that require translation here: customs, traditions, assumptions, preferences, etc. I’m fairly certain I am learning more each day here than I have learned for weeks or even months in other places. Rarely have I ever felt the need for so much trusted advice and guidance. Since many things can’t be understood without the help of an African… we are grateful many African friends have joined us on the journey.

Onward & Upward,

-Carter