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their own bureaucrats。 In The Lexus and the Olive Tree I called this form of value 
creation 〃globalution;〃 or revolution from beyond。 
Said Dunn: 〃We used to say that as long as we complied with the local law; that was 
all we could be expected to do。 But now the imbalance of power is so huge it is not 
practical to say that Wal…Mart or HP can do whatever they want as long as a state 
government or country does not stop them。 The leverage HP would leave on the table 
would be immoral given its superior power 。 。 。 We have the power to transmit global 
governance to our universe of suppliers and employees and consumers; which is a pretty 
broad universe。〃 
Dunn noted that in a country like China there is an intense competition by local 
companies to become part of the HP or Dell or Wal…Mart supply chain。 Even though it 
is high pressure; it means a steady volume of considerable business…the kind that 
can make or break a company。 As a result; HP has huge leverage over its Chinese 
suppliers; and they are actually very open to having their factory standards lifted; 
because they know that if they get up to the standards of HP they can leverage that 
to get business from Dell or Sony。 
Advocates of compassionate flatism need to educate consumers to the fact that their 
buying decisions and buying power are political。 Every time you as a consumer make 
a decision; you are supporting a whole set of values。 You are voting about the barriers 
and friction you want to preserve or eliminate。 Progressives need to make this 
information more easily available to consumers; so more of them can vote the right 
way and support the right kind of global corporate behavior。 
Marc Gunther; a senior writer for Fortune magazine andthe author of Faith and Fortune: 


The Quiet Revolution to Reform American Business; is one of the few business writers 
who have recognized how global corporations can be influenced by progressive politics。 
〃To be sure;〃 wrote Gunther in an essay in The Washington Post (November 14; 2004); 
〃there are plenty of scoundrels out there; indifferent to the rights and wrongs of 
corporate behavior。 And some executives who talk of social is302 
sues may be only mouthing the words。 But the bottom line is that a growing number 
of companies have come to believe that moral values; broadly and liberally defined; 
can help drive shareholder values。 And that is a case study from which everyone could 
learn。〃 
This progressive tilt of big business has not generated much press attention; Gunther 
noted。 〃Partly that's because scandal stories are juicier。 Mostly it's because 
changes in corporate practices have been incremental…and because reporters tend to 
dismiss talk of corporate social responsibility as mere public relations。 But chief 
executives of closely…watched firms like General Electric do not promise to become 
better global citizens unless they intend to follow through。 'If you want to be a 
great company today;' Jeff Immelt; GE's CEO; likes to say; 'you have to be a good 
company。' When I asked him why GE has begun to talk more openly about corporate 
citizenship; he said: 'The reason why people come to work for GE is that they want 
to be about something that is bigger than themselves。' As Immelt suggests; the biggest 
driver of corporate reform is the desire of companies to attract people who seek 
meaning as well as money from their work。 Few of us go to our jobs every day to enhance 
shareholder value。 Younger people; especially; want to work for companies with a 
mission that goes beyond the bottom line。〃 
In sum; we are now in a huge transition as companies are coming to understand not 
only their power in a flat world but also their responsibilities。 Compassionate 
flatists believe that this is no time to be sitting on one's hands; thinking 
exclusively in traditional left…right; consumer…versus…company terms。 Instead we 
should be thinking about how collaboration between consumers and companies can 
provide an enormous amount of protection against the worst features of the flattening 
of the world; without opting for classic protectionism。 
〃Compassionate capitalism。 Think it sounds like an oxymoron? Think again;〃 said 
Gunther。 〃Even as America is supposedly turning conservative on social issues; big 
business is moving in the other direction。〃 
303 
Parenting 
No discussion of compassionate flatism would be complete without also discussing the 
need for improved parenting。 Helping individuals adapt to a flat world is not only 
the job of governments and companies。 It is also the job of parents。 They too need 
to know in what world their kids are growing up and what it will take for them to 
thrive。 Put simply; we need a new generation of parents ready to administer tough 
love: There comes a time when you've got to put away the Game Boys; turn off the 
television set; put away the iPod; and get your kids down to work。 
The sense of entitlement; the sense that because we once dominated global commerce 


and geopolitics…and Olympic basketball…we always will; the sense that delayed 
gratification is a punishment worse than a spanking; the sense that our kids have 
to be swaddled in cotton wool so that nothing bad or disappointing or stressful ever 
happens to them at school is; quite simply; a growing cancer on American society。 
And if we don't start to reverse it; our kids are going to be in for a huge and socially 
disruptive shock from the flat world。 While a different approach by politicians is 
necessary; it is not sufficient。 
David Baltimore; the Nobel Prize…winning president of Caltech; knows what it takes 
to get your child ready to compete against the cream of the global crop。 He told me 
that he is struck by the fact that almost all the students who make it to Caltech; 
one of the best scientific universities in the world; come from public schools; not 
from private schools that sometimes nurture a sense that just because you are there; 
you are special and entitled。 〃I look at the kids who come to Caltech; and they grew 
up in families that encouraged them to work hard and to put off a little bit of 
gratification for the future and to understand that they need to hone their skills 
to play an important role in the world;〃 Baltimore said。 〃I give parents enormous 
credit for this; because these kids are all coming from public schools that people 
are calling failures。 Public education is producing these remarkable students…so it 
can be done。 Their parents have nurtured them to make sure that they realize their 
potential。 I think 

we need a revolution in this country when it comes to parenting around education。〃 
Clearly; foreign…born parents seem to be doing this better。 〃About one…third of our 
students have an Asian background or are recent immigrants;〃 he said。 A significant 
majority of the students coming to Caltech in the engineering disciplines are 
foreign…born; and a large fraction of its current facultyis foreign…born。 〃In biology; 
at the postdoc level; the dominance of Chinese students is overwhelming;〃 said 
Baltimore。 No wonder that at the big scientific conferences today; a majority of the 
research papers dealing with cutting…edge bioscience have at least one Chinese name 
on them。 
My friends Judy Estrin and Bill Carrico have started several networking companies 
in Silicon Valley。 At one time; Judy was chief technology officer for Cisco。 I sat 
with them one afternoon and talked about this problem。 〃When I was eleven years old;〃 
said Bill; 〃I knew I was going to be an engineer。 I dare you to find an eleven…year…old 
in America who wants to be an engineer today。 We've turned down the ambition level。〃 
Added Judy; 〃More of the problem 'can be solved by good' parenting than can be solved 
from a regulatory or funding move。 Everyone wants to fund more of this and that; but 
where it starts is with the parents。 Ambition comes from the parents。 People have 
to get it。 It will probably take a crisis 'to get us refocused'。〃 
In July 2004; comedian Bill Cosby used an appearance at Jesse Jackson's Rainbow/PUSH 
Coalition & Citizenship Education Fund's annual conference to upbraid 
A

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