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OPEN EYES ECONOMY SUMMIT KRAKOW NOVEMBER 15-16, 2016 EDWIN BENDYK JERZY BUZEK JERZY HAUSNER MICHAŁ KUDŁACZ ADAM DANIEL ROTFELD MATEUSZ ZMYŚLONY OPEN EYES BOOK The Open Eyes Economy Summit Krakow, November 15-16, 2016 PUBLISHED BY Fundacja Gospodarki i Administracji Publicznej ul. Rakowicka 10B/10 31-510 Kraków © Fundacja GAP This publication reflects only the views of its Authors TRANSLATED BY Rafał Śmietana, Jim Todd EDITED AND PROOFREAD BY Anna Chrabąszcz, Robert Chrabąszcz, Paula Wolecka ORGANISATIONAL ASSISTANCE Dagmara Bednarczyk, Tomasz Wojtas, Radosław Wójcik GRAPHIC DESIGN AND LAYOUT BY Eskadra Sp. z o.o. PRINTED BY Know How ISBN: 978-83-942293-7-5 CONTENTS FOREWORD 5 INTRODUCTION: 9 BRAND AS CULTURE – CULTURE AS BRAND Mateusz Zmyślony THE INTERNATIONAL ORDER: 43 VALUES VS. INTERESTS AND POTENTIALS Adam Daniel Rotfeld THE CIVILISATIONAL AND 69 CULTURE-FORMING ROLE OF TECHNOLOGY Jerzy Buzek THE FUTURE OF THE MARKET ECONOMY 77 – FROM AN OPPORTUNISTIC ECONOMIC GAME TO A RELATIONAL ONE Jerzy Hausner THE CITY-IDEA – A NEW APPROACH 119 TO URBAN DEVELOPMENT Edwin Bendyk, Jerzy Hausner, Michał Kudłacz 2016 3 4 OEES FORE- WORD 2016 5 FOREWORD The need to revise a number of established economic beliefs and business practices appears to be as obvious as it is difficult. We have come up with the Open Eyes Economy Summit (OEES) not just to talk about them, but first of all, to contribute to such a revision. This publication and the texts contained in it are intended to serve this purpose. They offer not only different perspectives than those prevailing so far, but also ways out of the crisis situation. The texts address the main themes of the programme of the Congress: 1) the Firm-Idea as a new approach to value in business, 2) Brand-Culture as a new understanding of marketing, and 3) the City-Idea as a new way of dealing with urban development. They focus on specific areas that we believe at this mo- ment to be crucial for thinking about the necessary changes in the functioning of the market economy. What they have in common is a deep conviction that we have lost our way, because we have abandoned all references to values ​​and the axiological-normative order in our reflections, focusing instead mainly on business, on transactions, and on operational efficiency. If we do not bridge this gap by engaging in an open and responsible discourse, we will continue to stray, chaotically trying everything in the hope that eventually we will find a way out of the current dramatic situation. Even though we have numerous opportunities to act, we get lost, putting aside the question of normativity. We cannot decide which of the possible solutions to adopt, and which to reject for fundamental reasons. We cast about opportunistically trying to salvage what- ever we can instead of making deliberate, strategic choices. The papers included in this volume have been prepared especially for the FIRMOEES, with the exception of Professor Jerzy Buzek’s address. Their content re- flects a number of pre-Congress discussions, seminars, and conferences. We do not wish to restrict ourselves to hosting a single event; we want to inspire an IDEAintellectual movement which is as broad as possible. 6 OEES BRAND CULTURE The previous debates were held here in Krakow – a city famous for its capa- city to reconcile tradition with modernity. Its great legacy is rooted in its open- ness, and it still needs this quality in order not only to protect this heritage, but also to transform and enrich it. If the Open Eyes Economy is to develop robustly, we must go beyond our city wherever people want to open their eyes to seek new approaches and solutions. We want to encourage the representatives of very different professional and social groups to join in this movement, otherwise will be impossible to accom- plish the necessary change. These intentions are reflected in the rich and varied Congress programme, in the diversity of experiences, and in the interests of the guest speakers. We intend the Open Eyes Economy Summit to be a summit meeting, a proper summit to be climbed in order to look around and find the right paths leading us to development. Such a summit cannot be reached without a well-organised effort, without successive base camps. Every year, we want to continue climbing in a larger group, to organise discussions in different places – in Poland and abroad – mobilising those who are dissatisfied with the current state of the economy and economics. Subsequent volumes of the Open Eyes Book will document our intellectual mountain climbing expeditions. Jerzy Hausner Chairman of the Programme Council Open Eyes Economy Summit CITY IDEA 2016 7 8 OEES Mateusz ZMYŚLONY INTRODUCTION: BRAND AS CULTURE – CULTURE AS BRAND 2016 9 10 OEES Mateusz Zmyślony What generates culture? Advertising, PR, marketing undoubtedly generate culture – as do theatres, cine- mas, the media, museums, as well as city streets, the internet and... politics. Advertising messages – which constitute a version of culture – invade our minds via all possible channels. They shape our tastes, generate trends, tempt, but often hurt and mislead. Culture can be either high or low. The message may be vulgar, but it can be made elegant – yet it still remains a message that contributes to the shaping of culture. Culture comprises not only art galleries and concert halls. Nowadays, culture is everywhere – as street art in the streets, as design in clothing and furniture shops, as culinary culture – on our tables and in the deli. Brands ceased to be badges, boxes and/or packages. They even ceased to be specific products or services, since the latter can be copied and imitated with ever-increasing ease. Genuine Brands are becoming messages based on values under our (open) eyes. The philosophy of Open Eyes Economy embraces social values, the so- called intangible assets, or non-material values. Added values or key values? So far, such values ​​were often referred to as ADDED values. Design, social com- mitment of a brand, and its environmental responsibility were ‘added’ to the functional features of a product or service. Today, the genuine, the most valuable brands must face a crisis of public trust in businesses and institutions. In order to regain – or win – that trust, and then to retain it, firms and institutions must build anew their market mission and simultaneously their social mission. The credibility of such a mission requires that the hitherto ‘added’ values should become the target of existence of a particular Firm and a former Brand. We call such a firm – a Firm-Idea and its brand – a Brand–Culture. Such a Firm – with such a Brand – operates totally differently in the social and the public space (i.e. in our City-Idea). It seeks to creatively co-develop it and become in- volved in it, much in the same way as Allegro installs bicycle racks, Lech builds 2016 11 BRAND AS CULTURE – CULTURE AS BRAND microparks, and Nivea invests in outdoor urban gyms. In Open Eyes Economy, such activities are obvious, and the question to be asked is: What are the appro- priate proportions? If a firm’s social commitment is substantial, we are dealing with a Firm-Idea. If the impact of its commitment to society is substantial, we are dealing with Brand-Culture. Hence, the Firm-Idea puts social values, such as social utility, sensitivity, and commitment above all else. From its very foundations, it wants to be ecolo- gical and managed in accordance with the principles of sustainable develop- ment. Its brand entails a deliberate generation of CULTURE, which is not only an interesting and true story that reaches the public. To generate CULTURE also means to consciously shape the world of the Firm and the Brand among its employees, consumers, business partners, and the media. Naturally, the most reasonable areas of operation of such a Firm and such a Brand are logi- cally associated with its field of competence. Thus, if you manufacture run- ning shoes, you should build your reputation among the fans of this activity. Hence, if Adidas and Nike invest in the popularisation of a healthy and active lifestyle, promote mass running events or Nordic walking – that is good. But it is still better if we engage in these sports using shoes manufactured in a Source: Adidas press release. 12 OEES Mateusz Zmyślony responsible and thoughtful manner, such as Adidas x Parley, made entirely from recycled materials and associated with the struggle to rid the oceans of plastic waste. These shoes embody not only a pure idea, but also a good design and responsibility. Certainly, such initiatives are bound to become something important when they find their way into mass distribution … but Rome was not built in a day. If you make clothes, help your customer to dress from head to toe ethically and ecologically, not just fashionably. Although fashion also represents culture, it often lacks moral foundations and thus becomes merely an aesthetic culture, which is simply shallow. Endowing brands with cultural foundations is the fu- ture not only of marketing or marketing communication, rather, it represents the evolution towards social communication based on truth, knowledge, and authority instead of manipulation, which is unfortunately still common nowa- days. Profit > Trust or Trust > Profit? The Firm-Idea exists, because it is needed by people and it has a mission to accomplish. Naturally, in a sense, it also exists in order to generate a PROFIT. Without it, it would be impossible to develop and implement its mission. But in the near future, it will make a profit when (and only when) it wins the trust of its customers.

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