Jul-Aug 2010 - Business Partners - American

BUSINESS
www.amcham.gr
july-august 2010
Vol. IX | No. 49
A Corporate
Governance
Code for Greece
HR Today &
Pharma
▼
CSR, Corporate
Governance, &
Sustainability
▼
Cabotage II—
All TIED UP AND
READY TO SAIL
▼
Smarter
Government
for a Smarter
Planet
▼
Plus
Biz Buzz
Names and Faces
Trends & Trade Makers
AMERICAN-HELLENIC
CHAMBER OF COMMERCE
OPAP—
At the Forefront
of Gaming Ioannis Spanoudakis, CEO, OPAP
OCTOBER 28-31, 2010
J o i n
u s
a t
t h e
★
★
A
AMERICAN PAVILION
in the 1st
Under the Auspices
of the Hellenic Ministry of Defense
The American-Hellenic Chamber of Commerce
is especially pleased to announce the organization
of the AMERICAN PAVILION in the
1ST DEFENSYS INTERNATIONAL DEFENSE & SECURITY FAIR
to be held October 28-31, 2010
at the Helexpo Exhibition Center, Building 12
in Thessaloniki
c r e a ti v e
CODE
Helexpo Exhibition Center
Thessaloniki
109-111, Messoghion Ave., Politia Business Center, GR–115 26 Athens
Tel.: 210 6993559, 210 6993756, Fax: 210 6985686-7, www.amcham.gr
AMERICAN-HELLENIC
CHAMBER OF COMMERCE
VOLUME IX | NUMBER 49
ISSN 1109‐4990 CODE: 6526
CONTENTS
CHAMBER.PRESS
4
6
9
THE BOARD
CHAMBER NEWS
OBSERVATORY
Engaging the Greek Diaspora
BY JENS BASTIAN
24
10
HR TODAY
Pharma Industry:
New Challenges, Leadership and Talent Management
Ioannis Spanoudakis, CEO of
OPAP, discusses the gaming
market in Greece
BY VIRGINIA ARGYRATOU
12
TRAVEL USA
Discover America
14
16
12
NAMES & FACES IN THE NEWS
NORTHERN GREECE TODAY
OPPORTUNITIES AND ADVANTAGES
❚ Sofia Kantara Notary Public, Thessaloniki
Virginia Argyratou of Stanton
Chase Athens examines
the Pharma Industry: New
Challenges, Leadership and
Talent Management
❚ Evi Avlogiari, Lawyer, Certified Mediator
18
BIZ BUZZ
Currents in Today’s Business Environment
20
CORPORATE GOVERNANCE
A Corporate Governance Code for Greece:
Enhancing Trust When it’s Most Needed
BY STILPON NESTOR
22
28
CSR & CORPORATE GOVERNANCE
Business Ethics and Today’s Crisis—
A Call for a New Model
Stilpon Nestor presents a new
Corporate Governance Code
for Greece
BY ANTHONY GORTZIS
24
THE INTERVIEW
Ioannis Spanoudakis, CEO of OPAP S.A.
26
BUSI N ES S PART N ERS I S THE B IMON TH LY MAGA Z IN E
O F T H E AM ER I C A N ‐ H EL L EN IC CHA MB ER OF COMMERCE
DIRECTOR
Elias Spirtounias
e.spirtounias@amcham.gr
PUBLISHER & EDITOR
Raymond Matera
materay@ath.forthnet.gr
PLEASE RECYCLE
ADVERTISING
Raymond Matera
materay@ath.forthnet.gr
DESIGN
snack•
PRINTING & BINDING
A. PSILLIDIS & CO
OWNER
American-Hellenic Chamber of Commerce
Politia Business Center
109-111 Messoghion Avenue
115 26 Athens
Tel: +30 210 699.3559
Fax: +30 210 698.5686-7
E-mail: info@amcham.gr
BRANCH OFFICE
47 Vassileos Irakleiou Street
546 23 Thessaloniki
Tel: +30 2310 286.453, 225.162
Fax: +30 2310 225.162
E-mail: n.tsavdaroglou@amcham.gr
TRAVEL & TOURISM
Cabotage II
BY ANDREAS STYLIANOPOULOS
28
SUSTAINABILITY
The Princess and the Frog?
A Green Development Model for Greece
BY PETER MICHEL HEILMANN
30
32
TRENDS & TREND MAKERS
VIEWPOINT
IBM & Smarter Government for a Smarter Planet
JULY-AUGUST 2010 | BUSINESS PARTNERS | 1
DIRECTOR’S DESK
It is tempting to leave this space blank, reflecting the void many of us feel today within our society—a
void of responsibility, accountability, and equity.
The recent announcements of the General Inspector of Public Administration regarding judicial procedures mock the anticipation of citizens of the last 25 years who have expected a state that operates according to legal principles and not legal caricatures. Too often, our state systems resemble a black comedy, in
which politicians and citizens learn to play their roles—the ultimate opposite of win-win relationships.
Is there hope? Can we emerge from this nefarious cycle, whose maelstrom sends us continuously deeper
into a black space, poor in meritocracy but rich in greed and favoritism.
Today, more than ever, we must separate the four pylons of power—legislative, executive, judicial, and
media. Constitutional change is appropriate to create the secure framework that guarantees their independent operation since the interconnectedness of these powers has created enormous problems.
All Greek citizens are shareholders of their country, as shareholders are of a corporation, and have the
right to be informed on public management and state governance. When a department in a corporation does not perform well, administrative changes take place; the state should operate in the same
way. When an employee in a corporation is caught for fraud, s/he is persecuted and punished; the same
should happen in the state, independent of the status of the violator.
It is unacceptable that certain people abuse their positions or are unqualified and yet remain “untouchables.”
As citizen-shareholder, I have the absolute right to demand the state functions in an equitable environment
with explicit rules, and to require better results following my continuous investment—called taxes.
Citizen-shareholders are not to be divided into various categories and treated differently. No citizens are
to be excluded from responsibility and be allowed to act with impunity. We have given birth to democracy; we must be its standard bearers. We must cultivate conscience and mold character—foundations
for a viable society.
Citizen-shareholders deserve a state that is not arbitrary, follows fair treatment, asks for fair contributions,
and provides fair services. A just state enforces laws and requires all shareholders to follow them. And just as
a company has a charter and mission statement that it follows, so does a state—it is called a constitution.
Elias Spirtounias
Executive Director
The American-Hellenic Chamber of Commerce
A Dynamic, Proactive Chamber
The American-Hellenic Chamber of Commerce was established
in 1932 and is one of the largest, most active, and dynamic American Chambers in Europe. Virtually all American companies that
do business in Greece and Greek companies that engage in trade
with the United States are members of the Chamber.
The Chamber's membership is comprised of more than 1,000
proactive companies that seek to expand business horizons, create new business partnerships, and take advantage of trade and
investment opportunities in today's global economy.
The American-Hellenic Chamber of Commerce is an active mem-
| BUSINESS PARTNERS | JULY-AUGUST 2010
ber of the U.S. Chamber of Commerce in Washington D.C. and the
European Council of American Chambers of Commerce (ECACC).
Mission Statement
The American-Hellenic Chamber of Commerce strives for continuous improvement of American-Hellenic commercial and
financial relations, through increased membership and through
the organization of top-quality events, exhibitions, fora, seminars,
and congresses on both sides of the Atlantic.
C.Ad.01/07
Foh / 2+
American-Hellenic Chamber of Commerce
Executive Committee
Committees
Gramatidis Yanos President | BAHAS, GRAMATIDIS & PARTNERS
Auditors Committee
Kyriacou Marios T. Vice President | KPMG CERTIFIED AUDITORS A.E.
Members: Alexandris Spyros, Sabatakakis Kyriacos, Spanos Nikolaos | Coordinator:
Hadjianagnostou Andriana
Bakatselos Nikolaos Vice President | YRAMIS METALLOURGIA S.A.
Construction and Real Estate Committee
Karayannis Angelos Secretary General | KARAYANNIS K. GROUP
OF COMPANIES
Panayotopoulos Litsa Treasurer | M2M SOLUTIONS CONSULTING SERVICES
Anastassopoulos Simos Counselor | PETSIAVAS N. S.A.
Bacacos George Counselor | BACACOS P. CHEMICAL & PHARMACEUTICAL
PRODUCTS CO. S.A.
Charalambous Odysseas Counselor | CISCO SYSTEMS HELLAS S.A.
Papadopoulos Thanos Counselor | CHEVELLAS S.A.
Spirtounias Elias Executive Director
Members: Alexopoulos Charis, Andritsos Dimitris, Charagionis Theodore, Dimakopoulos Alexandros, Sarantopoulos Edward, Spanos Elias, Vassos Alexandros,
Vrettakos Dimitris | Coordinator: Constantinidou Dafni
Corporate Governance Committee
Chair: Papacostopoulos Constantinos | Members: Alexandris Spyros, Charalambous
Yiangos, Dimou Ioannis, Petalas Apostolos, Siamishis Andreas | Coordinator: Constantinidou Dafni
Corporate Social Responsibility Committee
Chair: Stavridis Stelios | Members: Alexiou Maria, Lolas Vassilis, Papademetriou Pakis, Psyrra Irene, Vrachatis Ioannis | Coordinator: Boyatzis Angela
ENVIRONMENT & ENERGY COMMITTEE
Members: Aloupis Constantine, Bakouris Konstantinos, Karayannis Angelos, Manos
Alexandros, Melissanidis Dimitris, Mytilineos Evangelos, Nomikos Elias, Papadimitriou Spiros, Papavasileiou Athanasios, Peristeris George, Stefanakis Ioannis, Yannopoulos Sotiris, Yiannopoulos Emil | Coordinator: Dikeoulia Angeliki
Express Committee
Chair: Mavropoulos Michael | Members: Alevizou Christina, Ieremias Emmanuel, Karayannis Angelos, Ungerer Frank-Uwe | Coordinator: Mamali Georgia
Greek Economy Conference Committee
Board of Directors
Chair: Kyriacou Marios | Members: Anastassopoulos Simos, Bacacos George, Vrettos Nikos, Yannopoulos Sotiris | Coordinator: Dikeoulia Angeliki
Antonopoulos, Constantinos | INTRALOT S.A. - INTEGRATED LOTTERY
Innovation and Education Committee
SYSTEMS AND SERVICES
Canellopoulos Paul | CHARTIS GREECE S.A.
Constantelis George
Costas Stavros | ECONΟMIST
Costopoulos Alexandros | FORESIGHT Strategy & Communications
Costopoulos John | HELLENIC PETROLEUM S.A.
David George | COCA-COLA HELLENIC BOTTLING COMPANY S.A.
Chair: Panayotopoulos Litsa | Members: Charalambous Odysseas, Giourelis Stefanos,
Kollas John, Makios Vassilis, Makridakis Spyros, Patakiouti Maria, Skoura Alexandra,
Tsangos Christos | Coordinator: Tzagaroulakis Katerina
INSURANCE, SOCIAL SECURITY & LABOR MATTERS COMMITTEE
Chair: Kremalis Konstantinos | Members: Canellopoulos Paul, Kotsalos Georgios,
Koussia (Dr.) Venetia, Lisseos Panayiotis, Mazarakis Dimitrios, Panorios Manos, Pelidis Manos, Pelidis Dimitris | Coordinator Tseritzoglou, Voula
IPR Committee
Members: Boscopoulos Paris, Galanopoulou Katerina, Makris Antonis, Skorupski
Sarah, Zachou Dora | Coordinator: Constantinidou Dafni
Leadership Committee
Frangou Angeliki | NAVIOS MARITIME HOLDINGS INC.
Chair: Miropoulos Artemis | Members: Griveas Polychronis, Jukes Simon, Katsivelis
Pavlos, Kofinas Kyriakos, Paraskevaidis Stavros, Sarakakis Alexandros, Sarlikiotis Antonis, Sklikas Gregory | Coordinator: Constantinidou Dafni
Karella Katerina | PFIZER HELLAS S.A.
Northern Greece Committee
Filiotis Dionysios | PHARMASERVE-LILLY SACI
Kartsanis Georgia | CEO CLUBS GREECE
Kokorotsikos Paris | EUROCONSULTANTS S.A.
Kosmatos Makis | JOHNSON & JOHNSON HELLAS S.A.
Kouides Antonis | B.E.R.M.A. A.E.
Koutsoureli Eftychia | INFO-QUEST S.A.
Kyriakides John | KYRIAKIDES GEORGOPOULOS & DANIOLOS ISSAIAS
LAW FIRM
Livas Periklis | ALAPIS S.A.
Mamidaki Eleftheria | MAMIDOIL JETOIL PETROLEUM COMPANY S.A.
Manos Alexandros | PIRAEUS BANK S.A.
Papalexopoulos | TITAN CEMENT COMPANY S.A.
Passaris Despina | PROCTER & GAMBLE HELLAS LTD.
Plessas Dennys | LOCKHEED MARTIN (INTERNATIONAL) S.A.
Priamou John | U.S. Commercial Counselor (ret.)
Saracakis John D | SARACAKIS BROTHERS S.A.
Stavridis Stelios | PISCINES IDEALES A.E.
Symeonides Dimitris | MEVGAL S.A. DAIRY PRODUCT INDUSTRY
Synghelides Polychronis | CHRYSLER JEEP DODGE HELLAS S.A.
Tamvakakis Apostolos | NATIONAL BANK OF GREECE S.A.
Vrettos Nikos | THE BOSTON CONSULTING GROUP (BCG)
Yiannopoulos Emil | PRICEWATERHOUSE COOPERS BUSINESS
SOLUTIONS S.A.
Zeritis Panos | THRACE PAPER MILL S.A.
| BUSINESS PARTNERS | JULY-AUGUST 2010
Chair: Kouides Leonidas | Members: Bakatselos Nicolas, Gigilinis Alexandros, Hadjiyannakis Constantine, Katsaros George, Makios Stratos, Mavroudis Theodore, Philippou
Nikos, Symeonidis Dimitris, Tzelepoglou Rigas | Coordinator: Tsavdaroglou Nikos
Pharmaceutical Committee
Chair: Constantelis George | Vice Chairman: Filiotis Dionyssios | Members: Apostolidis Pascal, Boscopoulos Paris, Gerassopoulos Marcos, Karagiannoglou Stelios, Karella
Katherine, Katzourakis George, Zervakakis Takis | Coordinator: Tseritzoglou Voula
Programming & Planning Committee (North Greece)
Members: Accas Ioannis, Alexopoulos Charis, Antoniadis Christodoulos, Economou
Anastasia, Efetzis Vassilios, Kokorotsikos Paris, Kouides Antonis, Kouimtzis Thanassis, Lakassas Dimitrios, Mamidakis Alexandros, Meimaris Ignatios, Papageorgiou
Constantinos, Thomaidis Vasilis, Tsaras Ioannis, Ziambras Ioannis | Coordinator:
Tsavdaroglou Nikos
Public Affairs Committee
Members: Anastassopoulos Simos, Kyriacou Marios, Papadopoulos Thanos | Coordinator: Xidou Ritana
Strategic Planning Committee
Members: Adamantiadis Christos, Costopoulos Alexandros, Gramatidis Yanos,
Priamou John, Stavridis Stelios, Vrettos Nikos | Coordinator: Mamali Georgia
Taxation Committee
Chair: Kostas Stavros | Members: Altiparmakis Christos, Ampeliotis Evaggelos, Anastasiadis Charalampos, Antoniou Vassilios, Desipris Antonis, Doucas Spiros, Gigantes Stavros, Gika Efstathia, Ioannidou Maria, Kerameus George, Laskaratos Panagiotis, Loukas
Konstantinos, Mavraganis George, Melemenis Ioannis, Nomikos Vassilis, Sarafoglou
Gerassimos, Savvaidou Katerina, Sfakakis Konstantinos, Spyriouni Litsa, Stavrides Bill,
Stavropoulos Ioannis, Theofilides George, Trakadi Maria, Tsakonas Yiannis | Coordinator: Tzagaroulakis Katerina
Tourism Committee
Chair: Stylianopoulos Andreas | Members: Ananiadis Tim, Anglos John, Argiri Byron, Ikkos Aris, Koutsivitis Stylianos, Marriott Carol, Peresiadis Kostas | Coordinator:
Dikeoulia Angeliki
Women in Business Committee
Chair: Kartsanis Georgia | Members: Adamopoulou Efi, Dimou-Lampadari Maria,
Karageorgi Fotini, Mathioudaki Nancy, Papakonstantinou Ioanna, Parissi Efi, Rossou
Efi, Sideri Anastasia, Tarou Iphigenia | Coordinator: Boyatzis Angela
CHAMBER
NEWS
Chamber Members Elect New Board of Directors
The new Board gathers for its first meeting
At the Annual General Assembly of the
Chamber held June 16, 2010, Chamber
members elected a new Board of Directors. Yanos Gramatidis was re-elected
Chamber President.
EXECUTIVE COMMITTEE
President
Gramatidis Yanos, Managing Partner,
BAHAS, GRAMATIDIS & PARTNERS
Vice President
Kyriacou Marios T., Senior Partner,
KPMG CERTIFIED AUDITORS A.E.
Vice President
Bakatselos Nikolaos, Managing Director,
PYRAMIS METALLOURGIA S.A.
Secretary General
Karayannis Angelos, President & CEO,
KARAYANNIS K. GROUP OF COMPANIES
Treasurer
Panayotopoulos Litsa, Managing Director,
M2M SOLUTIONS CONSULTING SERVICES
Counselor
Anastassopoulos Simos, Managing Director,
PETSIAVAS N. S.A.
Counselor
Bacacos George, President & Managing
Director, BACACOS P. CHEMICAL &
PHARMACEUTICAL PRODUCTS CO. S.A.
Counselor
Charalambous Odysseas, General Manager,
CISCO SYSTEMS HELLAS S.A.
Counselor
Papadopoulos Thanos, President & CEO, CHEVELLAS S.A.
Executive Director
Elias Spirtounias, American-Hellenic Chamber of Commerce
| BUSINESS PARTNERS | JULY-AUGUST 2010
BOARD OF DIRECTORS
Antonopoulos, Constantinos, CEO,
INTRALOT S.A. - INTEGRATED LOTTERY
SYSTEMS AND SERVICES
Canellopoulos Paul, Executive Vice Chairman
of the BOD, CHARTIS GREECE S.A.
Constantelis George
Costas Stavros, Economist
Costopoulos Alexandros, Managing Director,
FORESIGHT Strategy & Communications
Costopoulos John, Managing Director,
HELLENIC PETROLEUM S.A.
David George, Chairman,
COCA-COLA HELLENIC BOTTLING
COMPANY S.A.
Filiotis Dionysios, President & Managing
Director, PHARMASERVE-LILLY SACI
Frangou Angeliki, Chairman & CEO, NAVIOS
MARITIME HOLDINGS INC.
Karella Katerina, Managing Director, PFIZER
HELLAS S.A.
Kartsanis Georgia, President, CEO, CLUBS
GREECE
Kokorotsikos Paris, Chairman & CEO,
EUROCONSULTANTS S.A.
Kosmatos Makis, Managing Director,
JOHNSON & JOHNSON HELLAS S.A.
Kouides Antonis, Managing Director,
B.E.R.M.A. A.E.
Koutsoureli Eftychia, Vice President
INFO-QUEST S.A.
Kyriakides John, Partner,
KYRIAKIDES GEORGOPOULOS & DANIOLOS
ISSAIAS LAW FIRM
Livas Periklis, Vice President & CEO,
ALAPIS S.A.
Mamidaki Eleftheria, Deputy Managing
Director, MAMIDOIL JETOIL PETROLEUM
COMPANY S.A.
Manos Alexandros, Managing Director,
PIRAEUS BANK S.A.
Papalexopoulos, Dimitri, Managing Director,
TITAN CEMENT COMPANY S.A.
Passaris Despina, ER Director,
PROCTER & GAMBLE HELLAS LTD.
Plessas Dennys, Vice President Business
Development Initiatives Europe, Middle East,
Africa, LOCKHEED MARTIN
(INTERNATIONAL) S.A.
Priamou John,
U.S. Commercial Counselor (ret.)
Saracakis, John D, Executive Vice President,
SARACAKIS BROTHERS S.A.
Stavridis Stelios, CEO,
PISCINES IDEALES A.E.
Symeonides Dimitris, Vice President & Managing Director,
MEVGAL S.A. DAIRY PRODUCT INDUSTRY
Synghelides Polychronis, President,
CHRYSLER JEEP DODGE HELLAS S.A.
Tamvakakis Apostolos, CEO,
NATIONAL BANK OF GREECE S.A.
Vrettos Nikos, Senior Partner and Managing
Director, THE BOSTON CONSULTING
GROUP (BCG)
Yiannopoulos Emil, Partner, Assurance
Leader, PRICEWATERHOUSE COOPERS
BUSINESS SOLUTIONS S.A.
Zeritis Panos, President & Managing Director,
THRACE PAPER MILL S.A.
Chamber Ηolds 2nd Annual
Corporate Governance Conference
Chamber Hosts Gaming Conference
Yanos Gramatidis
Ioannis Ragkousis
Panel Discussion
Stilpon Nestor, Minister Ioannis Ragkousis,
Yanos Gramatidis, Marios Kyriacou
Ioannis Ragkousis, Yanos Gramatidis,
Michael Kyriakidis
Corporate Governance—A Framework for Sustainability and Development, was the
subject of the Chamber’s 2nd Corporate Governance Conference held June 23, 2010 at
the Hotel Grande Bretagne.
Panel discussions included Best Practices and Current Trends of Corporate Governance; The Contribution of the Internal/External Audit in the Provision of Transparent Information and Procedures; and The Role of the Board of Directors in Modern
Corporate Governance. In his keynote address Minister of Interior, Decentralization
and Electronic Governance Ioannis Ragkousis presented the Principles of Good Public
Governance as the Key for Development.
Sponsors were Alapis, Hellenic Petroleum, Fourlis. KPMG, ERA, and busienss sponsors
were SBC, Kerdos, and Business Partners.
Member to Member Offers
On May 31, the Chamber held “The Organization of Gaming Market in Greece,” a
conference dedicated to the examination
of Greece’s gaming market from a regulatory perspective. It was established the
Greece needs sweeping reforms in its
regulatory framework to deal with the
numerous issues facing the industry, including the presence of Internet gaming,
casino regulations, lottery legislation,
and the video market. Greece has deep
interests in gaming; It has some of the
larges and most successful casinos in
Europe, its state gaming corporation is
one of the largest in Europe, and the private sector is a global leader.
Sponsors were OPAP, Club Hotel Casino
Loutraki, Regency Entertainment, Intralot,
Techlink Entertainment, and communication sponsors were SBC Channel and
Business Partners.
Panel Discussion
Chamber members are able to provide exclusive member-to-member offers through
the American-Hellenic Chamber of Commerce website. To view current offers visit the
members section at www.amcham.gr
Current offers are from:
HOLIDAY INN THESSALONIKI
P.A.P. CORP. S.A.
DIVANI HOTEL
CLUB HOTEL CASINO LOUTRAKI
Athens Medical Group
Kathimerini
JULY-AUGUST 2010 | BUSINESS PARTNERS | CHAMBER
NEWS
Minister
of Finance George
Papaconstantinou
Address Chamber
On July 8, Minister of Finance George
Papaconstantinou addressed an
audience of more than 200 Chamber
members, diplomats, and distinguished guests at the Hotel Grande
Bretagne, The Minister spoke on the
financial crisis Greece is facing today
and laid out his reasons for cautious
optimism that Greece will overcome
its fiscal difficulties and emerge
stronger following a 110-billion Euro
bailout by the IMF and the European
Union and sever austerity measures
imposed on the Greek people. In
his introductory remarks Chamber
President emphasized the need for
the Greek government to be bold its
approach and to work swiftly. The
President underlined that the Chamber’s 2009 guide, Strategies for the
Greek Economy, published following
and extensive dialogue with Greece’s
finance ministers of the last 20 years,
contained a wealth of policy guidelines that are, in fact, being followed
by the government today.
CSR Conference
On June 2 he Chamber held its 8th annual CSR conference, Building Responsible Companies – Best Practices in Sustainability. Panel discussions included Corporate Ethics
and Transparency in the Marketplace; Corporate Responsibility—Workplace Environment; Environmental Initiatives and Opportunity; Stavros Dimas, former EU Commissioner for the Environement gave a keynote speech and Andreas Andreopouos,
Secretary General Ministry of Energy, Environment, and Climate Change, delivered the
keynote luncheon address.
Conference sponsors were Cub Hotel Casino Loutraki and Proton Bank; Conference supporterswere Vodafone, Coca-Cola Hellenic, Pfizer Hellas and Diageo Hellas. Communication sponsors were Express Daily Financial Newspaper, flash.gr, Flash 96, City Press,
Free Sunday, CSR Review, Go Green, SBC Business Channel and Business Partners.
Yanos Gramatidis
NIKOS ANALYTIS
ALEXANDRA PALLI
ANDREAS ANDREOPOULOS
Chamber Calendar
September or October Athens or Thessaloniki, Innovation & Education Conference
October Athens, Anti-money Laundering
Conference – “Corruption & Ethics”
October Volos, Volos Palace Hotel, 2nd Panthessalian Forum
November Athens, Thanksgiving dinner
| BUSINESS PARTNERS | JULY-AUGUST 2010
Panel Discussion
Observatory
by Jens Bastian
Senior Economic Research Fellow at ELIAMEP
(Hellenic Foundation for Foreign and European Policy)
in Athens, Greece
Engaging
the Greek Diaspora
W
hile this interpretation is
correct, the narrative of
who should participate,
and why, is entirely addressed to the citizens
in Greece. This line of argument leaves out
a critical mass of active, successful and resourceful citizens known as the Greek Diaspora. How we view the Greek Diaspora
in the U.S.A., Canada, and Australia as well
as across Europe is important. The millions
of Greek citizens living and working abroad
cannot be held accountable for past problems and current deficits.
They are a formidable asset, a reservoir of
talent, momentum and invaluable international expertise for Greece today.
This perspective runs contrary to critical
and often insensitive views being expressed
by Greeks vis-à-vis their fellow citizens
abroad. Such a misleading perception gives
the impression of envy regarding the corporate and educational success of many
members of the Greek Diaspora. It suggests
that what should be considered an asset is
all too often prematurely seen as a liability.
The government of Prime Minister Papandreou appears to understand the critical
importance of the Greek Diaspora in three
important areas of policy and began to
court the Diaspora with a variety of incentives to contribute toward the reform and
modernization of Greece.
Finance Minister Papaconstantinou has
floated the idea of introducing a “Diaspora
Bond,” similar to the successful bond placements by Israel during the past decade that
exclusively targeted the large community of
Israeli citizens living and working abroad.
The second area concerns tax administration and repatriating capital that has been
transferred abroad, especially during the
last seven months. The new tax legislation
includes a clause to encourage expatriate
capital resources to be returned to Greece,
legally declared and taxed at 5 % for the full
amount returned to Greece. The similarities
with the Berlusconi tax amnesty in Italy are
striking as is the determination of Greek tax
inspectors to collaborate with their foreign
partner institutions when seeking to track
Finance Minister
Papaconstantinou
has floated the idea
of introducing a
“Diaspora Bond”
During these challenging
times for Greece it is
frequently argued that the
austerity measures and
structural reform program
agreed with the so-called
‘Troika’ of the IMF, ECB,
and European Commission
can only work if everybody
in society contributes.
down tax evasion and capital flight.
This approach to the repatriation of financial resources seeks to curtail the ongoing
capital flight that has been affecting not
only the Greek banking sector, but more
generally asks what needs to be done, what
incentives have to be offered in order to
stem such capital flight and encourage the
return of financial equity.
The third initiative concerns the provision
of business incentives to relocate corporate initiative and entrepreneurial success
back to Greece. It is striking to observe how
successful Greek entrepreneurs have been
abroad, and equally how frustrated they
respond when relaying their experiences
about the difficulties and roadblocks in attempting to transfer successful corporate
endeavors back to Greece.
The new approach of the government in
cooperation with the so-called ‘Troika’ is to
focus on a set of structural reforms in the
labor market and corporate environment
that make the setting up of business registration procedures, licensing requirements
and administrative regulations less cumbersome, more welcoming, and faster.
That the Greek Diaspora is on the agenda is
an encouraging sign. The more we witness
the engagement of the Diaspora, the more
we can identify reforms taking root in
Greece and society as whole making a comprehensive contribution.
JULY-AUGUST 2010 | BUSINESS PARTNERS | HR Today
by Virginia Argyratou
Principal Consultant, Stanton Chase Athens
Pharma Industry New Challenges, Leadership
and Talent Management
T
he pharmaceutical industry is un- Expanding or re-directing activity in order
dergoing unprecedented trans- to participate in the new opportunities neformation due to the tremendous cessitates an assessment of talent needs. But,
changes in its environment. New since most companies face talent shortages
technologies, cost pressure, con- in these high-growth markets, will they be
solidation, downsizing and reorganization, able to seize the opportunity? On the other
need for new competences in Health Eco- hand Pharma industry needs managers
nomics and Outcomes, Market Access and who have the autonomy to react quickly
Advocacy, Medical Marketing, Relationship to changes required by the multinational.
Management, Key Account Management, Most industry executives would likely list
Outsourcing Management, just to name a that Pharma industry is facing challenges
few new Pharma realities. For example, by regarding regulatory issues, price controls,
2020 the current role of the pharmaceutical the difficulty and ever-rising expense of deindustry’s sales and marketing workforce will veloping new small molecules and convertbe replaced by a new model as the industry ing them into potential blockbusters along
shifts from a mass-market to a target-market with patent expiry issues, with no imminent
approach to increase revenue.
drug replacements in sight.
New strategies are developed to address the So, how are HR leaders in the pharmaceuissues and opportunities of this changing tical industry responding to cost controls,
environment, the needs in terms of people lack of talent, and a changing marketplace?
become increasingly difficult to fulfil. To suc- HR needs to operate as an equal with other
ceed, leaders must ensure that
the right people with the right
skills are in the right roles. In
this environment, an under- In order to keep its seat
standing of which competencies at the table, the focus
make the difference in a leader’s of HR needs to shift
effectiveness can help pharma- from administration to
ceutical/biotech organizations
consultative problem prioritize their talent management efforts to ensure the great- solving
est return on investment.
10 | BUSINESS PARTNERS | JULY-AUGUST 2010
Are tough times the best
times to transform the HR
function within the Pharma
industry?
functions, with the same accountability to
deliver business value. In order to keep its
seat at the table, the focus of HR needs to
shift from administration to consultative
problem solving.
For an industry that is relatively high tech,
Pharma is not one that is synonymous with
change. Why would it be when, with margins hovering around 40 percent for the
past few decades, there has been little need
for Pharma to reinvent itself? And then, the
HR function, as with most other functions
in this industry, has tended to hire from
within, limiting its experience in dealing
with so many outside challenges.
Historically, HR has been the sage advisor
behind the curtain, and there is a need today
to articulate the value of the function and
demonstrate value by measurement and outcome, just as other functions are measured.
HR has to help managers take risks and become more instinctive, as opposed to being
analytical and scientific in their day-to-day
decision making.
Nevertheless, every HR executive has
talent management as a current and future priority. Recruiting the right people
is only half the job done. Grooming and
managing talent is the greater challenge.
Pharma HR, therefore, faces talent challenges on two fronts: established traditions
that discourage developing people outside
the standard career progressions and the
inability to attract external talent. International assignments, startups and turnaround situations help executives develop
some of the competencies most difficult to
find in the marketplace.
If ever there is a time for HR transformation, it is now. Taking some risks now in
developing members of the HR team and
high-potential leaders will position Pharma
companies to thrive in the future.
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Your vital advantage!
travel usa
Discover America
The 50 states, five territories
and countless cities across
the United States are filled
with landmarks that have become icons of the nation itself.
Countless experiences await
you, from scenic coastlines
and mountain ranges to vast
prairies, deserts and canyons.
Exciting big cities are matched
by the charms of smaller destinations. All of them showcase
the heritage and culture of a
great nation.
12 | BUSINESS PARTNERS | JULY-AUGUST 2010
★
On the occasion of Greece’s
entry into the Visa Waiver
Program, the U.S. Commercial Service of the American
Embassy in Athens is showcasing all 50 States and five
territories in the upcoming
issues of Business Partners
Magazine.
You are invited to Discover
America for yourself and learn
more about the vast array
of travel opportunities that
await you.
Useful Links
List of organizations that you may find useful in
planning your trip to the USA.
Security USA
Learn more about the US security measures.
www.dhs.gov/us-visit
The US Government’s Official Website
All you ever needed to know - and more - about the US Government and who does what.
www.firstgov.gov
Need USA Visa Information?
If you need information about visas for the USA, please visit
the US Embassy website on http://athens.usembassy.gov/
where, under ‘visa services’, you should be able to find the
answer to most questions.
ESTA
Go to https://esta.cbp.dhs.gov to complete the online Electronic System for Travel Authorization
Need USA Weather Information?
Visit www.weather.com where you can find out everything
you could possibly need to know about USA weather.
Recreation Services
All the USA’s outdoor recreation services. www.recreation.gov
Travel in the USA
Explore the regions of the USA. www.seeamerica.org
Motor Homes
Find out more about enjoying and exploring the USA in a
motor home. www.rvia.com
America’s Byways
Want to explore the USA? You’ll find a huge choice on this site.
www.byways.org
National Park Service
Where they are and all the supporting information you could
possibly need. www.nps.gov
The Top 100 Events in the USA
Compiled by the American Bus Association.
www.buses.org/top_100_events/
National Trust for Historic Preservation
USA sites and buildings of historic interest.
www.nationaltrust.org
★
JULY-AUGUST 2010 | BUSINESS PARTNERS | 13
NAMES & FACES
...in the news
 P&G Hellas Celebrates 50 Years in Greece
On June 16, 2010 Procter & Gamble Hellas celebrated its 50 years of being present in Greece.
Bob Mcdonald, President & CEO of the Procter & Gamble Company, John Artinos, General
Manager of Procter & Gamble Hellas and a
team of executives of the Hellenic and Global
Organization, welcomed associates at a festive
event at Zappeion Megaron.
“We turned 50 years old. Many things have
John Artinos
changed during this time. What has not
changed is our commitment to our main mission ‘to reach the Greek consumer with products and services that improve his life, every
day, today and for generations to come” said
John Artinos. P&G Hellas began in September
1960 in one floor of an apartment building in
Bob Mcdonald
the center of Athens, with 4 products and 30
employees. Today, it is one of the most successful consumer goods
companies in Greece, with 450 people, a portfolio of 40 products that
reach the lives of 7.5 million Greek consumers every year.
Bob McDonald, P&G CEO, said “The history of P&G in Greece is a
source of inspiration. Every Greek employee of P&G must feel proud
for all that has been achieved during these 50 years.”
 Current Affairs
Jay Kennedy of the University of Manchester claims that Plato (who
died around 347 B.C.) wove a complex musical and mathematical cipher into the text of famed dialogues like “The Republic.” According
to Kennedy’s research, which is published in this month’s edition of the
respected classics journal Apeiron, that code was used to hide the fact
that the Athenian was a secret follower of the philosopher Pythagoras
and shared his belief that the key to understanding the universe lay in
numbers and math.
“Plato’s books played a major role in founding Western culture, but
they are mysterious and end in riddles,” says Kennedy, a historian and
philosopher of science. “In antiquity, many of his followers said the
books contained hidden layers of meaning and secret codes, but modern scholars rejected this. I have shown rigorously that the books do
contain codes and symbols and that unraveling them reveals the hidden
philosophy of Plato.”
Speaker’s
Corner
14 | BUSINESS PARTNERS | JULY-AUGUST 2010
New General Manager at Bristol-Myers Squibb A.E.
Mr. Pheroze Khan has been appointed
General Manager at Bristol-Myers Squibb
A.E., Greece. During his 15-year career
with the company, he has held positions of
increasing responsibility in Australia, the
United States of America, Mexico, Latin
America and Canada. Most recently, he was
Mr. Pheroze Khan
General Manager for BMS Switzerland. Mr.
Khan holds an MBA from Xavier Institute Jamshedpur, India, and a B.S. in Chemistry from Loyola College, Chennai,
India. “Greece is a very important market for Bristol-Myers
Squibb. With a focus on our Mission and Commitment and
an emphasis on the patient, we will continue our successful
performance in Greece,” Mr. Khan said.
New General Manager at Chartis Hellas
Chartis Hellas (formerly AIG Greece) has appointed Giuseppe Zorgno Country Manager,
Chartis Greece S.A.
Mr Zorgno studied political science at the University of Milan, where he also followed business administration and marketing seminars.
He worked for eight years in Italy (1983-1991),
Giuseppe Zorgno
for RAS, Riunione Adriatica di Sicurta’ (ALLIANZ) and for PADANA Assicurazioni, the captive company of
E.N.I. In 1992 he came to Greece and worked for Willis Corroon
and for Euromerchant Insurance Services SA (Eurobank Group.
In 1997 he joined the “N. Canellopoulos & Ch. Adamantiadis”
Insurance Group (legal representative of AIG in Greece), first as
Manager for Engineering & Financial Lines Profit Centres and
later as Director of Commercial Lines.
In 2008, he was appointed Chief Operating Officer for AIG
Greece S.A. and since May 2010 he is the Country Manager for Chartis Greece S.A. (former AIG Greece S.A.) He is a
member of the Property Committee of the Hellenic Association of Insurance Companies and President of the Engineering Subcommittee.
Political Discharge
Politicians and diapers have one thing in
common. They should both be changed
regularly and for the same reason.
—Earnest Benn
Political Science
A politician thinks of the next election.
A statesman, of the next generation.
—James Freeman Clarke
Panagiotis D. Tzellos
Founder & Managing Director of
Derivatives.gr & Inventive
Entrepreneurship !!
How important is entrepreneurship in Greece?
It is vitally important. Even though there have been
many disincentives in the past, today, we see more
young people who look longer on the horizon and envision setting up and running a company, passing from
the “Road to the Public Sector” to the “Road of Free
Markets,” looking for more challenges and willing to
take business risks. The Greek market desperately
needs young entrepreneurs to start changing its structure and become competitive in the international arena.
What obstacles exist to entrepreneurship?
The challenging part is that entrepreneurship is difficult to be taught in Greek universities. Entrepreneurship is not only a matter of expertise but also a matter
of philosophy. The main obstacles for entrepreneurship in the Greek market are the absence of substantial incentives from the government, a coherent,
continuous tax environment and a low understanding
of risk and management for setting up and running a
new company for the entrepreneurs. The concepts of
production and entrepreneurship haven’t yet matured.
What can be done to improve the regulatory environment?
The state should provide more incentives to create a
new vital and competitive platform of development, a
new plan to decentralize Attica, provide tax incentives
for young people, promote new hiring, and keep companies within Greece.
Role Call
What this country needs are more unemployed politicians.
—Edward Langley
 Coldwell Banker Launched
Southeast Net S.A. (Senet), a subsidiary of the Southeast Group, announced that it has begun marketing its Coldwell Banker and Coldwell
Banker Commercial brands, bringing a new real estate franchise system
to the Greek property market. Coldwell Banker was founded in the
United States in 1906 and operates in 48 countries, with 3.913 offices
and over 100.000 affiliates. The Senet team, led by Southeast Group CEO
Peter-Panayiotis G. Mihalos, has spent months preparing the “Coldwell
Banker Package,” a custom product designed to provide franchisees in
Greece with a network platform, highly advanced IT systems, specialized training courses offered through the Coldwell Banker University
and an extensive support mechanism that includes regular and frequent
business consulting from the Master to the franchisee and vice versa.
 Hilton Athens: New Web Site
The Hilton Athens has a new website, where readers may make reservations, learn about new events and special offers, view a photo gallery that includes superb hotel and city shots, and learn about all the
services, facilities and meeings and events at the hotel.
 http://hiltonathens.gr/en/
 Perrotis College Awards First BSc (Hons)
Degrees
Mrs. Aliki Perroti
Dr. Philippos Papadopoulos (left) and Perrotis College
Dean Don Schofield.
In an important milestone of the 106-year history of the American
Farm School, BSc (Hons) degrees were awarded for the first time, to
the graduating class of 2010 in the School’s division of higher learning, the Dimitris Perrotis College of Agricultural Studies. Mrs. Aliki
Perroti, whose generous gift in 1995 made possible the founding of
the College, was a guest speaker at the June graduation ceremony.
Perrotis College graduates earned their BSc (Hons) degrees, that are
validated by the University of Wales Institute, Cardiff, and recognized
worldwide, in Management of Environmental Systems, and International Agribusiness.
Humor Me
Everything is changing. People are taking their comedians seriously and the politicians as a joke.
—Will Rogers
JULY-AUGUST 2010 | BUSINESS PARTNERS | 15
ΝΟRΤΗΕRN GREECE
TODAY
by Evi Avlogiari
Lawyer, Certified Mediator
(ClArb London)
Is Mediation Good
For Your Business?
S
ince April 27, 2010, the legislative initiative of the Ministry of
Justice, Transparency and Human Rights, to introduce mediation in civil and commercial
matters (based on Directive 2008/52 ΕU),
has been under public deliberation.
Win-Win
Mediation is an alternative system of solving
disputes between parties, with the assistance of
a third, objective party, the mediator, who tries
to lead the other parties to an agreement. The
formal practice of mediation has existed for
many years in almost all European countries,
as well as in the judicial systems of the United
States and Australia, and is an innovative and
streamlined method of solving commercial
differences. Through mediation, the solution
of differences is often achieved faster and more
economically compared with the traditional
courtroom and formal judicial procedures. At
the same time relations between the businesses or parties involved are protected. Mediation
may be viewed as a “win–win” procedure, in
which both sides benefit upon reaching a solution of their dispute.
Mediators are usually lawyers who are certified by a recognized body. They do not decide
on cases, but rather discern the needs of the
parties and help them find their own solution.
Mediators cannot be present as witnesses in a
court trial between the involved parties and are
obliged to observe strict ethical guidelines.
16 | BUSINESS PARTNERS | JULY-AUGUST 2010
With the assistance of a mediator, businesses have the opportunity to present their
requests and achieve the solution of the dispute in an environment that promotes dialogue and ensures professionalism and absolute confidentiality. Mediation is a speedy
and, considering the result, inexpensive dispute-solving mechanism, that contributes to
the preservation of good business relations.
When do you use mediation?
❚ Disputes with clients, other businesses,
personnel and associates, partners, insurance agencies
❚ Commercial contract disputes and variation to existing contracts
❚ Renegotiation of long-term contracts or
negotiation of new contracts
❚ Developing new business or joint ventures, mergers and takeovers
❚ International business
❚ Cross border/ cross jurisdiction
What are the significant
advantages?
The mediator:
❚ Manages the process so that the parties
can focus on the content
Although proceeding
at an excruciatingly
slow pace, but at the
same time encouraging
optimistic expectations,
the institution of mediation
is being introduced into
the Greek legal system as
an alternative means of
solving commercial and
private disputes.
❚ Assists with creating value
❚ Is the guardian of strategic information
❚ Restarts communication
❚ Diffuses conflicts
❚ Assists in breaking “deadlock”
Mediation in commercial disputes:
❚ Saves time and energy
❚ Is flexible, speedy and confidential
❚ Is a win-win situation
❚ Avoids litigation
❚ Allows parties to decide their solutions
❚ Provides ways to deal with emerging disputes or changes
❚ Is a non-binding process in the sense that
either party can walk out at any time
❚ Ensures the rights of the parties, including
the right to proceed or continue with arbitration or any other process in Court, will
remain unaffected by the mediation unless
the mediation results in a settlement
The business world should take a positive stand regarding the institution of mediation. Businesses should be informed by
their lawyers about this new alternative,
and before going to Court should wonder:
❚ Mediation or Trial?
❚ Agreement or Ordeal?
It’s Your Choice!!!
Mediation may be viewed as a “win–win”
procedure
NORTH
ER
GREE N
CE
by Sofia Kantara
Notary Public, Thessaloniki
Greek Black Sea Economic Cooperation
(BSEC)
Chairmanship
I
n 2004, with the accession of Serbia,
the Organization’s Member States increased to 12. The United States has an
observer status.
The organization came into existence
as a unique and promising model of multilateral political and economic initiative
aimed at fostering interaction and harmony among the Member States, as well
as to ensure peace, stability and prosperity
encouraging friendly and good-neighborly
relations in the Black Sea region.
The member states cooperate in fields such as
agriculture, banking and finance, combating
crime, culture, customs matters, emergency
assistance, education, energy, environmental
protection, exchange of statistical data and
information, health care and pharmaceutics,
information and communication technologies, institutional renewal and good governance, science and technology, promoting
small and medium size enterprises (SMEs),
tourism, trade and economic development .
The BSEC Headquarters—the Permanent
International Secretariat of the Organization of the Black Sea Economic Cooperation (BSEC PERMIS)—was established in
March 1994 in Istanbul.
Black Sea Trade and Development Bank
On 24 January 1997, the Black Sea Trade and
Development Bank (BSTDB) was formed as
an international financial institution that
supports economic development and regional cooperation by providing trade and
project financing, guarantees and equity
for development projects supporting both
public and private enterprises in its member countries. The bank’s headquarters are
located in Thessaloniki, an important port
city of the Mediterranean that has strong
cultural and economic ties with the Black
Sea region. Objectives of the bank include
promoting regional trade links, cross country projects, foreign direct investment, supporting activities that contribute to sustainable development, with an emphasis on the
generation of employment in the member
countries, ensuring that each operation is
economically and financially sound and
contributes to the development of a market
orientation. The organization has an authorized capital of $1.325 billion. BSTDB is governed by the Agreement Establishing Black
Sea Trade and Development Bank, a United
Nations registered treaty and unlike the International Monetary Fund and others, the
BSTDB does not attach policy conditions by
which debtor states can be controlled.
On July 1, 2010 Greece took over the
chairmanship of the organization for six
months. The Greek Chairmanship is dedicated in fostering regional cooperation in
the Black Sea region. While it participates
in the “Black Sea Turns Green” initiative,
On 25 June 1992, the Heads
of State and Government of
eleven countries: Albania,
Armenia, Azerbaijan,
Bulgaria, Georgia, Greece,
Moldova, Romania, Russia,
Turkey and Ukraine
signed in Istanbul the
Summit Declaration and
the Bosphorus Statement
giving birth to the Black
Sea Economic Cooperation
(BSEC).
that focuses on green development, the
Greek Chairmanship priorities are targeted
mainly to two initiatives:
1 “The Black Sea Highway Ring and Motorways of the Sea,” which is promoting two
main investment programs on regional
projects concerning transportation
2 “The BSEC-Hellenic Development Fund,”
a newly established fund aiming to finance
regional innovative development programs,
focusing especially on green enterpreneurship, alternative energy resources, new
technologies and sustainable development
In addition, the Greek Chairmanship is aiming to strengthen e cooperation between the
BSEC Organization and the European Union by promoting the program “Black Sea
Synergy” initiative , a European initiative
for the undertaking of common projects between EU and Black Sea countries.
On June 25, 2010, a conference was held by
the Greek Ministry of Foreign Affairs for
the presentation of the priorities of the
Greek Chairmanship containing two thematic units: “BSEC: Promoting Regional
Economic Cooperation in the Wider Black
Sea Region” and “Greek Development and
Entrepreneurship: A New Opportunity for
Regional Economic Cooperation.”
 www.bsec-organization.org
JULY-AUGUST 2010 | BUSINESS PARTNERS | 17
BIZ BUZZ
Linking Regional Entrepreneurs
to Global Franchise Opportunities
Regional Franchise Conference, Limassol, Cyprus October 14-15, 2010
The U.S. Embassy in Cyprus is co-organizing the Regional Franchise Conference in Limassol, to be held October 14-15, 2010. Interested entrepreneurs from throughout the
Eastern Mediterranean and Eastern Europe, territories still relatively new to the franchise
model and where franchises are relatively under-represented, will have the opportunity
to meet with leading American and other franchise companies seeking to expand their
global operations. The two-day event will include internationally-known experts to
speak on issues ranging from “How to Choose the Right Franchise,” “Tax and Financial
Considerations on Locating Your Master Franchise,” and “Franchising for Woman Entrepreneurs,” to “What it takes to Build A Successful Franchise,” and “Financing for Franchises.” Franchisors and potential franchisees can schedule one-on-one meetings online,
attend seminars and workshops, and have many networking opportunities through the
Conference two-day program.
 http://www.franchisecyprus.com
Innovation in Flight
Two fourth-year students at the Greek Air Force academy ‘Ikaron’ have designed and
built a small, unmanned aircraft powered by electricity generated in photovoltaic elements to help patrol forests and assist in preventing fires, guarding borders and security for installations.
The aircraft, christened ‘Molivada I’ in honour of WWII veteran pilot and engineer Stefanos Molivadas, carried out its first test flight above the Ikaron School, successfully transmitting images of the campus.
The plane is designed to have a high degree of autonomy so that that it can carry out
lengthy surveillance missions, using a wireless system for recording and transmitting
images in real time.
The plane was creating by attaching a lightweight camera and wireless transmission
system to an electric glider with a weight of 1.35 kilos and a wingspan of two meters,
while on the wings of the plane they attached an array of photovoltaic elements with a
maximum output of 18.38 watts that feeds a 1500 mAh battery.
The overall cost of its development and construction was less than 1,000 Euros, including
tools and construction materials, and its construction was completed in just 200 workhours.
18 | BUSINESS PARTNERS | JULY-AUgust 2010
Joint
Progress
Biomedical Engineer Lambros Kourtis
specializes in the development of artificial cartilage and joint repair and is
confident that in the very near future
he will be able to replace damaged
cartilage.
In an interview to Athens News, he
says that information concerning the
research project is limited, though he
has already developed and tested a
synthetic material with similar properties to cartilage, a breakthrough that
will soon change the life of millions of
people suffering from diseases such as
osteoporosis.
Kourtis, a native of Larissa, studied
mechanical engineering at the Aristotle
University of Thessaloniki and received
a PhD from Stanford University, focusing on cartilage and bone mechanics.
He now works in Silicon Valley and has
co-founded Biomimedica, a medical
device company that is pioneering new
approaches to joint repair.
Upbeat Fleet
The Greek merchant marine fleet (vessels exceeding 100 dwt) grew by 5.6
percent in March 2010 compared with
the same month in 2007, totaling 2,128
vessels, the Hellenic Statistical Authority announced.
The report, said the Greek merchant
marine fleet had fallen by 5.6 percent
from March 2004 to March 2007.
Total tonnage of the Greek merchant
marine fleet jumped 19.7 percent in
March to 42,237,509 dwts, from March
2007, after recording a 0.2-percent decline in the 2004-207 period.
Bragging Rights
Greeks occupy the top place in the consumption of tobacco products, according to a Eurobarometer. According to the survey, 42 percent of Greeks (47 percent men, 38 percent
women) say that they are smokers; the EU average is 29 percent (35 percent men, 25 percent
women), followed by Bulgarians (39 percent) and Hungarians (38 percent). The countries
with the lowest percentage of smokers are Sweden (16 percent) and Finland (21 percent).
Smokers in Greece responded that they smoke an average of 21.4 cigarettes a day (14.4
in the rest of the EU).
Twenty percent of Greeks (5 percent in the EU) say that they are exposed to passive
smoking in the workplace for more than five hours a day, while 39 percent say that they
were never exposed to passive smoking in the workplace (76 percent in the EU).
Separately, according to a survey conducted by a vocational training school in Thessaloniki, almost one in two Greeks (52.76 percent) agree with the law banning smoking
indoors and in public places, while 73.82 percent say that they are not satisfied with the
way the measure is implemented.
Inside the Box
Broadband
Rights
Finland has adopted a policy to provide
Internet access as a legal right for all citizens. The Minister of Communications said
that “a reasonably priced and high quality
broadband connection will be everyone’s
basic right” as of July 1, 2010.
Suvi Linden says that 26 telecom operators,
“defined as universal service providers,
must be able to provide every permanent
residence and business office” with access
to a connection with a downstream rate of
at least 1 megabit per second. Smokin!
Verdant Earth Technologies has a plan to retrofit standard 20-foot shipping containers
into mini farms. Each of their controlled environment agriculture systems—or CEAs—is
fitted with five shelves, where the plants live. Instead of sitting in soil, however, the
plants sit in a nutrient-rich solution that also works to irrigate them.
Cofounder and CEO Josh Hottenstein says they’re experimenting with different artificial
lighting options, including one that uses solar concentrators and fiber optics to distribute
light from LEDs. “Plants don’t need the full spectrum of light,” he says. Solar concentrators allow them to get the right wavelength and direct it.
Each containerized growing system has hookups for water and electricity, sort of like
an RV. Unlike RVs, though, the system can be set to run for a set period of time, taking
advantage of a utility’s off-peak hours to even out the electrical load. Because there is no
soil, growing a head of lettuce uses just one percent of the amount of water as lettuce
grown in an outdoor field.
 http://news.discovery.com/
JULY-AUgust 2010 | BUSINESS PARTNERS | 19
Corporate Governance
A Corporate
Governance Code
for Greece:
by Stilpon Nestor,
Managing Director, Nestor Advisors Ltd
(www.nestoradvisors.com)
Enhancing Trust
When it’s Most Needed
Greece is the
only member of
the European
Union (EU)
without
a complyor-explain
corporate
governance
code to instil
best practice in
its corporate
sector.
20 | BUSINESS PARTNERS | JULY-AUgust 2010
B
ut this is about to change. At the
initiative of the Hellenic Federation of Enterprises (SEV),
a panel of domestic corporate
governance experts which I had
the honor of chairing was commissioned
to draft a corporate governance code for
Greece (the “Code”). Following a period of
consultation during which key stakeholders
will be invited to comment on the content
and application of the Code, the Code will
become available before the end of 2010 to
all companies, listed or non-listed, to use as
their reference code for market disclosures
or as a best practice guideline.
Impact
It is by now widely recognised that better
corporate governance is beneficial to companies. It enables more effective decisionmaking which in turn improves business
performance. Better governance is also appreciated by outside debt and equity investors who tend to charge less for the capital
they provide to well-governed firms, and
enhances trust among employees, creditors
and suppliers. All in all, a well-governed
firm is more competitive than a badly gov-
erned firm. What’s more, a transparent and
accountable corporate sector is likely to
lower the cost of capital to all Greek enterprises and have a positive spill over effect
across the Greek economy, affecting the
quality of all private and public institutions.
This is especially important during these
difficult times.
Alignment With EU
Standards
The adoption of the Code will also align
Greece with EU corporate governance
standards. Over the last two decades, the
EU has seen a proliferation of corporate
governance codes of a voluntary complyor-explain nature which have now become
the norm for setting governance standards.
The absence in Greece of a widely endorsed
and visible corporate governance code
placed the country at odds with the practice of other EU member countries and
made it more difficult for Greek companies
to comply with the expanding body of EU
corporate governance rules and best practice recommendations.
This is not to say that there are no corporate
governance rules in Greece. Like in most oth-
er continental European jurisdictions, there
are detailed company law provisions in Law
2190/1920. Additional corporate governance
rules were developed through the adoption
of mandatory legislation or regulation, complementing company law and addressing specific aspects of corporate governance. Laws
transposing EU directives into the Greek legal
framework were another source of corporate
governance rules.
Comprehensive Benchmark
But the patchwork of mandatory rules
does not—and cannot—substitute for a
comprehensive benchmark of governance
best practice that is designed to be used by
businesses. The SEV Code provides such
a reference, marrying international best
practice with local corporate culture and
making it widely available to Greek companies. It offers a readily accessible reference
framework for Greek listed companies who
will be required to disclose their governance arrangements on a comply-or-explain
basis in accordance with Directive 2006/46/
EC, soon to be transposed in Greek law.
The Code also aims to enhance the quality of information provided to all investors,
whether they be domestic or foreign, and
improve shareholder trust and participation in corporate affairs.
ny boards to five years;
❚ a formal board evaluation every two years;
❚ an annual assessment of the effectiveness
of internal control by the board and its audit committee;
❚ a senior executive compensation structure
that ensures adequate balance between
fixed and variable elements and provides
detailed disclosure on the remuneration
of board members.
The Code is inspired by best practice corporate governance as set out in the OECD Principles, recommendations of the European
Commission and governance codes in other
EU member countries. However, the Code
departs from the practice in other EU member countries in that it applies to all Greek societes anonymes, whether listed or not. This
should facilitate the dissemination of best
practice governance in the corporate sector
as a whole and ultimately enhance the competitiveness of the Greek economy, largely
motored by smaller non-listed companies.
To ensure the relevance of the Code for
both listed and the unlisted companies, the
Code is divided into general principles and
best practice provisions. The principles are
general guidance addressed to all companies, listed or unlisted. Companies are not
required to “comply or explain” against the
principles. Nevertheless, Greek companies,
vide detailed guidance that can be used for
comply-or-explain purposes. In fact, listed
companies that choose to use the Code as
their reference code will be required to (a)
disclose its use as a reference framework
and either (b) comply with the best practice provisions of the Code or (c) explain
reasons for non-compliance with specific
provisions. The Code also contains a list of
exemptions for smaller listed companies.
Transparency and
Competitiveness
The beauty of the Code is that it will promote transparency in the Greek corporate
world and capital markets without compromising competitiveness: the Code’s flexibility allows each company to tailor its governance to its needs, ownership structure
and culture; yet investors, regulators and
other stakeholders are kept abreast of deviations from recommended practices. A
good company will always be in a position
to convincingly explain its reasons for noncompliance to the market. If the explanation is not convincing, investors will value
the company poorly and regulators might
start taking a closer look at its governance
and operations. Ultimately, transparency
breeds trust. And trust is the hardest of currencies for individual businesses when con-
Four Key Areas
The Code focuses on four key areas of corporate governance: A) the board and its
members; B) the system of internal control
of companies; C) the remuneration of senior management and board members; and
D) relations with shareholders. In all four
areas, certain principles and provisions go
significantly beyond the requirements of
the Greek and EU legal or regulatory framework. For example, the Code recommends:
❚ the appointment of a majority of independent directors to the board and its
committees, and the appointment at least
2 executives to the board;
❚ the appointment of an independent vice
chairman if the chairman is an executive;
❚ limiting board members’ tenure to four
years and limiting the number of concurrent memberships in other listed compa-
Trust is the hardest of currencies for
individual businesses when confidence in
the economy is at an all time low
especially non-listed ones, are encouraged
to implement the principles of the Code as
this would enable them to benefit from enhanced shareholder and stakeholder trust as
well as improved organisational efficiency.
Each principle is followed by best practice
provisions addressed to listed companies
only. Best practice provisions further develop each one of the principles and pro-
fidence in the economy is at an all time low.
If companies start competing for trust, the
standards of the Greek market as a whole
will be raised. This is a virtuous circle whose
evidence would constitute a more credible
improvement in the investment climate
than the strengthening of mandatory regulations, requiring more state in a market
exhausted by the state’s incompetence.
JULY-AUgust 2010 | BUSINESS PARTNERS | 21
CSR & Corporate Governance
Business Ethics
and Today’s Crisis—
Anthony Gortzis
is President of the European Business Ethics
Network Greece—EBEN GR.
A Call for a New Model
The importance of business ethics can be understood,
in the context of today’s international business
and financial crisis, as a crisis of business ethics,
resulting in the mass unemployment, primarily, of low
wage earners.
O
rganizations such as the European Business Ethics Network
address the theoretical and
practical challenges of ethical
corporate behavior.
The Greek Institute of Business Ethics—
EBEN GR—is the European Business Ethics
Network representative in Greece (EBEN
Greek Chapter), a non-profit organization
founded in 2005.
EBEN GR makes available ethical values
and methods to its members—Greek businesses and organizations—and proposes
the EBEN GR Business Ethics Model as a
suitable tool for assessing and developing a
desirable management model.
The objective of EBEN GR is to play a significant role in the corporate environment
by supplying business ethics principles,
research tools, training, and best practices
to organizations and professionals so they
22 | BUSINESS PARTNERS | JULY-AUgust 2010
may adapt a new management approach.
Core objectives:
❚ Promote business ethics, corporate social
responsibility and governance values in
the private and public sector, academic
community and non-governmental organizations
❚ Provide up-to-date information about
business ethics research, papers and practices, and the recognition of responsibilities taken by universities and corporations
toward society
❚ Provide training on the practices and
know-how of business ethics
❚ Encourage cooperation with other organizations in business facilitation and
dialogue
EBEN GR has created the EBEN GR Business Ethics Model (Fig 1) promoting business ethics excellence with the purpose of
sustainable leadership.
The model is an “umbrella,” covering business ethics in governance and social responsibility and is not intended to be a competitor to, but rather a promoter of, other similar
frameworks and methodologies.
The creation of the EBEN GR Business
Ethics (BE) Model is based upon two fundamental corporate pillars, Corporate
Governance and Corporate Social Responsibility, and is aligned with Business Ethics and the (Standard) Corporate Code,
through which they develop uniformly.
The model consists of three levels, with respective Bee (Business Ethics Excellence)
certifications granted after successfully
passing the HONEY assessment, and incorporates methods and systems that contribute significantly to business success, targeting sustainable business excellence.
The advantages of using EBEN GR Business
Ethics Model:
EBEN GR Business Ethics Model ( Fig 1)
❚ Businesses are developed throughout the
entire range of procedures and activities
and become more active members of society and more conscientious supporters
of the environment
❚ Businesses invest in and form their business culture based upon executives who
combine know-how and human knowledge as the core of their activities
❚ Businesses benefit through the development of their know-how via sophisticated
and well-developed internal systems,
aligned with the improvement and evolution of their executives
❚ Business culture is upgraded and becomes
more familiar with and understanding of
its internal and external stakeholders, providing the organization a unique and distinguished identity—an excellent means
of developing relations based upon confidentiality and recognition by customers
and third parties
❚ Businesses which, through the model,
achieve positive results are presented as
outstanding pan-European business and
academic examples
EBEN GR is also running major projects:
❚ EBEN GR Honey Assessment program for
implementation in the Tanker Management and Self Assessment Model (TMSA)
❚ Business Ethics, Corporate Governance,
and Corporate Social Responsibility
Training and Certifications
❚ Development of Responsibility Reporting using the EBEN GR BE sustainability
model
❚ Business Ethics education material and
course provision for European Community schools
Ethics and Society
Ethics may be seen as part of human nature,
incorporated into the laws that we follow. It
is an important branch of normative philosophy—concerned with the norms of human conduct.
The principles of ethical reasoning are a
guideline for sorting out the good and bad
components within complex human interactions and have a profound influence on
many modern management fields, including quality management, human resource
5. Business Analysis
(100 points)
6. Intrernal Audit
(100 points)
3. Regulations
(100 points)
8. Environmental Actions
(100 points)
Standard
2. Moral
1. Moral
Corporate
Conduct
Culture
Code of
(Values)
(Values)
(Principles)
(100 points) (Compulsory) (100 points)
7. Performance Assessment 4. Communication
(100 points)
(100 points)
Corporate Governance
management, culture management, change
management, risk management, mergers,
marketing, and corporate responsibility.
For EBEN GR the core of Business Ethics, CSR and Corporate Governance is
its linkage to a Standard Corporate Code
(the “heart” of the Business Ethics model),
which is based on the following principles:
1. Integrity Ethical handling of personal Vs
professional interests
2. Objectivity Compliance with laws, rules
and regulations
3. Independence Prompt reporting appropriately
4. Confidentiality Enforceable without side
effects
5. Competency Full, fair, accurate, timely,
and understandable report disclosures
6. Accountability Adherence to the code
7. Sustainability Present everywhere at all
times
8. Respect for Human Life Protect human
dignity
9. Protect the Environment Protect it like
our home
10. Pursue Economic Justice Our welfare is
always part of world welfare, optimum
profits are preferred to maximum profits
Precondition: All one code,
all equal, all different
The EBEN Gr Business Ethics Model philosophy is based upon the teachings of Aristotle (384-324 BC), and its ideology that
the three elements most important for a
corporation to be in a sustainable, leading
position are Business Ethics, Business Excellence, and Passion for Ethics for Sustainable Excellence and Leadership.
9. Social Activities
(100 points)
10. Economic Stability
(100 points)
Corporate Social Responsibility
Many companies always look at the cost of
something without considering benefits.
This is often true in the realm of corporate ethics. Too many companies believe
that, in crisis periods, the least important
thing to invest in and count upon is proper
corporate governance and the implementation of business ethics and values. Many
will look at creating a simple code of ethics to hang on the office door, just to please
stakeholders, rather than enforcing it and
extracting the benefits it may provide. They
always seem to ignore or forget that ethical behavior and moral conduct can result
in many benefits, including improved employee relations, enhanced worker productivity, positive morale and an enhanced
company image.
All these characteristics will help consumers recognize in firms a safe haven in a troubled era, will help investors to find signs of
a long-term, profitable business, and will
help stakeholders to promote them as a
model for all businesses.
In support of this view, the “Does Business
Ethics Pay?” research study by The Institute
of Business Ethics found that companies
displaying a “clear commitment to ethical
conduct” consistently outperform companies that do not display ethical conduct.
For EBEN GR, the current crisis is not a
disaster but a great opportunity, an opportunity for companies to re-assess their position and values and establish ethics as a
guiding light in a hectic, profit-oriented
world, a world which often forgets the basic principles of morality and dignity, lapses in which, directly or indirectly, caused
today’s recession.
JULY-AUgust 2010 | BUSINESS PARTNERS | 23
THE INTERVIEW
OPAP—
At the Forefront
of Gaming
Ioannis Spanoudakis,
CEO of OPAP S.A.,
discusses the
gaming industry
in Greece, how the
Internet is affecting
gaming, and what
challenges exist in
today’s regulatory
framework. OPAP
operates lottery
and betting games.
How would you characterize the gaming market in Greece today?
The regulated Greek gaming market has expanded rapidly in recent years to
approximately 9,5 bn Euros of sales annually and comprises the casino sector,
horse racing, the state’s lottery, and OPAP’s sports betting and lottery games.
However, when analyzing the total size of the Greek gaming market there is a
very significant unregulated/illegal market, which includes predominantly offshore online gaming operators as well as illegal onshore converted arcade machines. Given the illegal nature of this market it is difficult to pin down its true
size currently, however we estimate that it is approximately 4 bn Euros.
Since this market is illegal and therefore not taxed, the Greek state does not
benefit from the financial and other advantages of an overall regulated environment—royalties, taxation, and social control.
Is OPAP interested in pursuing online gaming?
We maintain a clear focus on new business development initiatives such as
Video Lottery Terminals (VLTs), and online gaming. Once those are regulated
OPAP is definitely interested and is preparing for a fast introduction in the market. Worth mentioning is that the government is considering legislation to allow licensed operators to offer online gaming. The draft legislation would need
to be approved by the EC and the Greek Parliament and could possibly take a
similar shape to the new regimes in France and Italy.
What legislative changes or reforms are needed to meet the needs of the
industry?
It is our duty to actively defend OPAP’s status, its unique concession and its
position against illegal competition. We do support the state and its effort to
confine illegal online gaming. However, gaming regulation is currently under
review by the Greek government and changes are to be expected in the upcoming months. As it has already been announced, all interested parties will be engaged in discussions and in a public debate. A legislation that has been applied
in France or other European countries will most likely be the kind of guiding
regulation that the Greek government will be basing its framework on. A tailor
made Greek regulation would have to be targeted and effective and should aim
24 | BUSINESS PARTNERS | JULY-AUgust 2010
at protecting the public interest as well as the legitimate businesses. A necessary
legal framework is required with a clear set of rules and terms of engagement,
as well as effective corporate social responsibility. The Greek State will benefit
from the new regulated market with tax revenues and royalty fees. However, it
is equally important for the licensees to share burdens and accountabilities and
enjoy the state protection and guarantees against illegal operations then.
What challenges do you face with your extensive retail network and what
opportunities exist for growth in this area?
OPAP and its agency network have both benefited by the recent conclusion and
signing of a modern, franchisee type, contractual agreement. Accordingly, our
relationship is now more direct and reciprocal based on terms and conditions
mutually agreed upon.
Also, following OPAP’s efforts initiated last year in our network in Cyprus, we
are already proceeding with the facelift of the Greek agency network in order to
create a uniform image and a more appealing appearance. We are aiming at increasing our leading brand awareness. In addition we are adding functionality
inside the agencies and we are also adding content and instant information to
our customers and to our agents. We have already moved forward with awarding the contract, with the refurbishment of the first 490 agencies expected to be
completed by year end.
How is OPAP set up as a company and what controls does it face from the
Greek state?
OPAP last year celebrated its 50th anniversary. Since 2000 it has been a listed
company on the Athens Stock Exchange. The Greek State has a triple role in
OPAP. First it is the major shareholder, currently holding 34% of its stake and
therefore controlling the board of directors and the management of the company. Secondly, it is the tax authority, and thirdly it is the regulator of the market.
OPAP supports social programs throughout the country. What role do you
play in the area of CSR?
Corporate Social Responsibility as well as effective promotion of responsible
gaming is important across the gaming industry. For OPAP responsible gaming is a commitment to promote responsible behavior among our customers,
industry and employees. Our advanced CSR program has become a systematic
feature of our business and it targets preventive measures. In partnership with
different bodies such as the World Lottery Association (WLA), the European
Lottery Association, as well as Social Welfare Groups, OPAP seeks to lead in
the understanding of responsible gaming and promote effective rules protecting children and other vulnerable people. For OPAP it is also important our
employees act in a ssocial responsible manner and interact with customers and
agents in a professional and supportive fashion. We highlight consumer protection by making customers aware of the consequences of excessive gambling,
while promoting the availability of resources to those who need assistance.
OPAP has been a highly successful company. How do you view the future of
OPAP, especially considering the evolution of the gaming market in the EU,
globally, and online?
Despite the overall adverse economic conditions, OPAP delivers a good performance and maintains a strong balance sheet and a healthy capital structure.
The company continues to be a leading player in the gaming industry with a
solid growth potential. Our focus is to enhance OPAP’s
dominant position in the Greek Gaming Market by a)
improving the quality and the content of our existing
products and by b) improving the functionalities, the
look and the appeal of our agents’ network, as mentioned earlier. Furthermore, we are optimizing our cost
base and improving our operational efficiencies to be
more focused, more effective and overall more productive. At the same time we prepare for the extension into
new activities when permitted by the regulator. OPAP’s
commitment is to improve its existing product mix and
stay at the forefront of the industry.
In conclusion I would like to highlight that OPAP sees
a lot of opportunities during this time of economic crisis and stands ready to capitalize on them, always focusing on maximizing value for our shareholders, our
employees and for society and the communities in
which we operate.
JULY-AUgust 2010 | BUSINESS PARTNERS | 25
Travel and Tourism
Cabotage 11—
By Andreas Stylianopoulos
Executive Vice President
Navigator Travel & Tourist Services Ltd
All Tied Up
and Ready to Sail
Because it is difficult even for us
who are in the cruise business to
understand Greek seafaring unions
and the government’s tolerance of
their disruptive behavior,
I will attempt to offer some
enlightening insight.
I
n spite of the somewhat Byzantine nature of what is to follow, I firmly believe
that logic and expediency will finally
prevail in this issue. I also believe that
this government is determined to modernize and open markets, having understood
that this is a one-way street for the country’s
recovery. However, when it comes to politics, the long way around sometimes appears
to be less costly and therefore irresistible.
Outmoded Model
As is often the case with protectionist
measures, the legislator’s original intention
becomes lost in residual repercussions. The
United States and Greece are probably the
26 | BUSINESS PARTNERS | JULY-AUgust 2010
world’s only two nations to have a shipping
cabotage law still in force. In the case of
the United States, the Jones Act was conceived as a means to protect the American
shipbuilding industry and not so much to
restrict Hawaiian cruising or hamper a potentially lucrative New York to Miami cruise
boom. In much the same way, the motives
behind the Greek cabotage law were completely unrelated to its collateral implications on cruising. It was aimed exclusively
at keeping domestic coastal shipping under
Greek flag, thereby guaranteeing the facility
to commandeer ferries in case of national
emergency. By the time the usefulness of
its intended purpose had expired, cabo-
tage had already become integral to the
ensconced cruising monopoly it had unwittingly created. In other words, for Greece
cruising and cabotage had merged into one
indivisible notion and everyone involved in
that industry was using every trick in the
book to perpetuate this status quo.
Legal or Illegal?
However, after so many years of immunity
from free market competition, the once
thriving Greek cruise industry gradually
turned into a moribund dinosaur. When
it finally collapsed in 2004, it left behind
a problematic labor force with established
rights on antiquated manning scales and
a pay structure that was never competitive by free market standards. It was simply
the product of endless populist politicking, union appeasement and shortsighted
trade-offs with “protected” employers. In
spite of the fact that all this finally led to the
drowning of an industry, unions continued
to refuse modernization and instead of adjusting to survive in free competition, they
chose blackmail tactics to ensure continued
government deference. Even when Greece
reluctantly complied with her obligation to
lift cabotage restrictions for EU member
state flags, this was never enforced properly. Often we see the seafarer unions either
questioning the status of a given EU flag
(example, they arbitrarily consider the Maltese flag as an F.O.C.) or demanding that
Greek law be enforced over that of the flag
state. As a result, EU flagged cruise vessels
attempting to exercise their right to home
port in Greece are often faced with unhindered union harassment, should they refuse
to hire a quota of Greek nationals. The fact
that they are in their rights to be left alone
and that this union action is illegal hasn’t
been raising too many eyebrows in Greece,
until recently with the Zenith.
The Politics
To better understand the Greek seafaring
union issue, one needs to look at the details.
PNO, the collective seafaring syndicate, is
led by a long standing union leader of advanced years, who is mortally bound to the
80s’ recipe that sustained the once flourishing national monopoly. His understanding
of the modern cruise industry is limited
and although he holds conservative political views, he tolerates his KKE controlled
members because he identifies with their
ostensible cause. This has given KKE more
or less a free hand on the PNO driver’s seat
and effectively, a faithful tool for harassing
whoever happens to be in power. One must
not underestimate how strategically vital it
is for Greece to serve and support its extensive archipelago, so PNO strikes can be an
extremely bothersome political lever.
This explains why politicians remain so
vulnerable to any pressure from PNO or its
constituent members, even though seafarer
unemployment statistics—particularly with
regard to hotel crew—are not all that significant compared with other sectors of the
Greek economy. In the not so distant past,
PNO’s actions were reinforced by public
opinion, which sympathized with the carefully cultivated version of its issues. However, in the last three to four years there has
been a virtual bombardment with objective
information on the benefits of cruise ship
homeporting and the average Greek citizen no longer believes union propaganda.
In fact, the tragic episode at Marfin Bank
downtown caused the sirens of KKE to lose
a lot of their seductiveness and we have
since seen very outspoken public reactions
to union bullying in the port of Piraeus. In
addition, practically every sector organization involved in tourism, retail and services
has joined in the effort to push politicians
for a clean break with cabotage. For all intents and purposes, the current government
has all the public support needed to do so,
plus the indisputable alibi of the present
economic crisis.
To This History Books?
It would be naïve to expect that a longstanding regime with such deep rooted residual mindsets would simply disappear
without some kicking and screaming. Reaction was a given, both from the unions
and from within the government itself. This
is a socialist party going through an existential crisis out of vital necessity and it is
not surprising that this first shot at such an
ideologically charged legislation is so full of
face saving clauses. What is surprising and
highly encouraging is the reaction of the
media and the general public, whose message is very loud and clear. They are not
fooled by what the government has come
up with as a legislative draft, because they
are fully aware that it simply does not fulfill
the Prime Minister’s promise. It is my estimation that there may still be a couple of
battles left to fight here and there, but the
real war has already been won and cabotage
will soon be history in this country.
JULY-AUgust 2010 | BUSINESS PARTNERS | 27
Sustainability
The Princess
and the Frog?
Peter Michel Heilmann
is President of EuroCharity— www.eurocharity.eu—
and member of the Chamber.
A Green Development Model
for Greece
”We know the country that
harnesses the power of clean,
renewable energy will lead the
21st century!”
T
his quote, by U.S. President
Barack Obama, could refer to
any nation on the planet, including Greece, which has the
potential of harnessing more
solar, wind, hydro, geothermal, wave, biomass and other renewable energy sources
(RES) than that it can consume.
To climb out of its current financial crisis,
help fight climate change, and significantly
give a boost to its economy that recently
plunged into recession, the “princess”
(Greece) should kiss the “frog” (the current economy in decline), in order for the
“prince” to appear: the green economy.
Green—The New Black!
In an interview published by “To Vima”
newspaper, Jeremy Rifkin, a trusted advisor
of many EU nations who founded and serves
28 | BUSINESS PARTNERS | JULY-AUgust 2010
as President of the U.S.-based Foundation on
Economic Trends, put it quite bluntly: “Greece
is the Saudi Arabia of renewable energy.”
Yet, Greece continues to heavily rely on
importing fossil fuels and still produces
its own unclean, non-renewable, climateunfriendly energy from unsustainable raw
materials, predominantly dirty lignite. Although the government is committed to
phasing out all the lignite plants by 2024,
three brand-new lignite plants are projected to be built by then by state-run Public
Power Corp. (PPC).
Emerging Green Hub
To climb out of its crisis, avoid being sucked
into a “death circle” (as financier George Soros likes to put it) of recession and falling
budget revenue, help fight climate change,
significantly save precious resources, and give
a powerful boost to its declining economy,
Greece needs to immediately proceed with
kick-starting its emerging green economy.
And by utilizing its hugely untapped natural resources, avoiding the NIMBY (“notin-my-backyard”) attitude when it comes
to new cleantech and green investments,
and providing the right framework and incentives, the country can become a more
competitive, low-carbon and innovative
economy and green development hub in
the wider region of Southeast Europe and
the East Mediterranean.
Apart from the obvious, hugely untapped
potential for RES (derived from the sun,
wind, waves, hydro, geothermal, biomass,
bio-fuels, and other sources), Greece should
also be focusing on making full use of its
wealth of other natural resources.
Green Potential
There are many other promising raw materials and opportunities that have major green
development potential in Greece, ranging
from zeolite to the kenaf plant1, from eco/
agro and green tourism to smart grids, and
from building green homes and offices to
developing that produce more energy than
they consume to manufacturing and exporting home-grown clean energy technologies.
New Ministry
With its long-awaited new Environment,
Energy and Climate Change Ministry,
headed by Minister Tina Birbili, the Greek
government has signaled that it is dedicated
to emphasize on and adopt a green(er) development model. But what green model
should be developed – its own or one based
on a European role model? And how should
it be implemented in practice, especially in
today’s challenging financial and economic
climate and declining economy? These seem
to be challenges that the political leadership
has yet to address in practice.
20-20-20
In June 2010, the Ministry announced its
plan on how Greece believes it can achieve
the 20-20-20 climate and energy targets set
by the European Union (EU), i.e. a reduction
in EU greenhouse gas emissions of at least
20% below 1990 levels; 20% of EU energy
consumption to come from renewable resources; and a 20% reduction in primary energy use compared with projected levels, to
be achieved by improving energy efficiency.
The Ministry’s recent announcement includes a binding national goal of achieving
a 20% share by RES in power consumption
and a 40% share in electricity production by
2020. A total of 10% of fuel used by transportation is projected to be derived from
bio-fuels by 2020.
Renewable Energy
Of the 22 billion Euros of investments in the
country’s energy sector until 2020, approximately 16 billion Euros will be earmarked
for the development of the country’s RES capacity. The government also recently passed
a new RES bill that it hopes will simplify the
licensing procedures and reduce red tape.
Norway’s Bellona Foundation estimates
that Greece’s turn to RES will lead to total
1
savings of 1.3 billion Euros in emissions allowance purchases, through the European
Trading Scheme, between 2010 and 2020.
Green ambassadors
Through its “green development ambassadors” abroad – the Prime and Foreign
Minister himself and his Deputy Foreign
Minister, environmentalist Spyros Kouvelis
– Greece is eager to promote its green ambitions as well as attract green energy and
cleantech foreign direct investment.
A number of “green diplomacy” successes
have already been booked, including a recent commitment from Qatar to invest 3.5
billion Euros in a massive energy project and
Liquefied Natural Gas terminal in Astakos
(Platigiali in the Aitoloakarnania prefecture),
Greece is the Saudi
Arabia of renewable
energy.
which the government likes to promote as a
“green” investment due to its potential for
bio-fuel generation from algae.
Foreign and Greek investors expect to see
a steady, sustainable, clear-cut, attractive,
transparent and “one-stop-shop” investment framework for green development and
cleantech investments, not a goal post that
is constantly being moved as soon as a new
Minister takes office. What’s more, foreign
investors and financiers are also taking the
increase in Greece’s credit risk into consideration prior to entering into any agreements.
Public Savings
In times of crisis, wasteful practices of the
past that significantly deplete energy, water, financial and other precious resources
should be avoided at all times. This, in turn,
can create huge budget savings. By introducing a transparent green procurement
system throughout the public system, for
example, or retrofitting all public buildings
to become more energy efficient, the Greek
state itself can already make a huge difference and walk its talk – formulating a longterm vision for a greener Greece.
The Visionary Dutch
In 2007, the Dutch government requested
an independent Committee of State (the
Delta Committee) to give its advice on
flood protection and flood risk management in The Netherlands for the next century, while keeping the country an attractive place to live, work and invest. Large
parts of The Netherlands lie below sea level
and are even now experiencing the effects of
climate change and sea level rise. The country’s delta (with a coastline approximately
350 kilometers long) is safe, but preserving
this safety over the long term involves action now. The Delta Commission’s vision
extends to 2100!
Lead, Don’t Follow
Greece can and must become a green development leader in its own right, rather
than a follower; a cleantech exporter rather
than importer; and eventually become a
“green development ambassador” overseas,
creating a distinct home-grown green development model. A new, realistic, visionary Green Development Plan until 2050 is
urgently required.
Sounds like a fairy tale like the one with
the princess and the frog? Only time will
tell...
enaf, a 4,000-year-old NEW crop with roots in ancient Africa, is just one of numerous examples of such resources with huge green development
K
potential. This alternative crop can be used to produce eco-friendly products ranging from paper to car parts. Three years ago, an informal public
private partnership involving the U.S. Consulate General in Thessaloniki, the American Farm School on Thessaloniki, businesses, government,
farmers unions and academics teamed up to conduct a one-year study on the cultivation and commercial exploitation of kenaf. This research,
funded in part by a State Department Business Facilitation Grant, included an experimental planting of the alternative crop that can be used to produce eco-friendly products ranging from paper to car parts. The plant grows quickly, rising to heights of 12-14 feet in as little as 4 to 5 months, so
it can become an attractive business opportunity for manufacturers and farmers in Northern Greece, especially in times when subsidies for growing tobacco and other traditional crops are being phased out.
JULY-AUgust 2010 | BUSINESS PARTNERS | 29
The Health Card has the following benefits:
❚ Unlimited out-patient visitsto on-call physicians in all Group Hospitals (for General
Practitioner, Cardiologist, Orthopaedist, and General Surgeon in all Athens and Thessaloniki Group Hospitals, for Paediatrician and Paediatric Surgeon in the Athens Paediatric Centre in Maroussi and for Paediatrician in the Paediatric Centre of Interbalkan
European Medical Centre in Thessaloniki), 24 hours a day, 365 days a year, at the symbolic charge of 25 Euros/visit.
❚ 1 5% discount on visits to other physician specialties in the Outpatient Clinics of the
Group’s Hospitals (Monday – Friday, 08:00 – 14:00, after an appointment).
❚ 30% discount on Diagnostic Testingin the Outpatient Clinics of Group Hospitals so you
can complete diagnostic examinations at a very reasonable cost and experience the
quality and the reliability that only the Athens Medical Group guarantees.
.
The Athens Medical Group offers Chamber members—
completely free of charge—the privileges of Athens
Medical Group Health Card.
Learn English Free
W
The Athens Medical Group
Health Card
W
Member-to-Member Offers
W
TRENDS &
TRADE MAKERS
Learn English for free online. Download
free audio lessons to your computer or mp3
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❚ No Charge Accessto our Health Line for information, by calling 210.62.88.090.
❚ Special prices on Check-up Tests for men, women and children.
❚ Use of Ambulance Services (EMS) free of charge in case of emergency transport and
admission to any Group hospital in Athens and Thessaloniki. It should be noted that our
EMS is the only such service in Greece possessing ISO – 9001:2000 (Quality Certification).
❚ 1 0% discount on in-patient day costs in all Group Hospitals (medicines, all needed
consumables and doctors’ fees are excluded) in case that the costs are not covered
100% by the insurance company and there are no surgical operation packages.
❚F
or more information: http://www.iatriko.gr/
These benefits also apply to U.S.Embassy staff and immediate family members (wife/
husband and children).
These benefits are also valid at the Athens Paediatric Centre in Maroussi and the Paediatric Centre of the Interbalkan European Medical Centre in Thessaloniki, the only fully
equipped and operational private paediatrics clinics in Greece.
In order to receive these benefits,
simply identify yourself by showing your
member card of the American-Hellenic
Chamber of Commerce.
30 | BUSINESS PARTNERS | JULY-AUgust 2010
Athens Medical Group
The Athens Medical Group, founded in
1984, is the market leader in Greece and
Southeast Europe offering primary and secondary high-quality health care. In Greece
the Group owns and operates 8 hospital
units: Athens Medical Center, Athens Paediatric Center, Psychico Clinic, Paleo Faliro
Clinic, Dafni Clinic, Peristeri Clinic, Gaia
Maternity Hospital, Interbalkan European
Medical Center in Thessaloniki, Paediatric
Center of Interbalkan Medical Center.
The Latest? Coconut Water
Coconut Water is the latest, next, hot,
cool, trend. Sweet water extracted
from young trees is a natural isotonic
liquid with the same level of electrolyte
balance present in our blood. It is naturally fat-free and low in food energy
(16.7 calories per 100 grams). Due to
its content of electrolytes—especially
potassium—coconut water is of value
to the human body as it helps maintain
nerves and muscles. Coconut water is
said to be good for oral re-hydration,
muscle performance, heart health,
stress reduction, skin, hair, and nail
health, electrolyte balance, kidney
cleansing, urinary infection, and as a
tonic for the old and sick.
Digital Agenda
For Europe
E.U.
T
C
E
R
I
D
A Small Business Perspective
MEPs called on the Commission to come forward with a proposal for an ambitious
digital agenda and action plan enabling Europe to progress towards an open and
prosperous digital society offering all citizens economic, social and cultural opportunities. The report makes it abundantly clear that access, capacities, and e-skills
for SMEs are an absolute necessity to make the Digital Agenda a success.
During the ESBA annual event in the European Parliament, hosted by lead Rapporteur on the Parliament report, MEP Pilar del Castillo Vera, Tina Sommer, President
of the European Small Business Alliance presented ESBA’s “Digital Agenda for Europe: A Small Business Perspective”, outlining 6 key obstacles for Small Business
in reaping the full potential of ICT and the digital economy. These include lack of IT
skills, lack of confidence in new technologies, lack of reliable and affordable Internet connectivity, and an inadequate EU information policy.
The importance of SMEs in making the Digital Agenda a success was reiterated by
speaker Bridget Cosgrave, Director General of DIGITALEUROPE, who stressed that
99% of an estimated 23 million enterprises in the EU are SMEs, providing around
75 million jobs. Cosgrave named four specific aspects of digital tools which will be
particularly beneficial for a growing number of SMEs – access to digital tools and
services on-demand via ‘The cloud’; eliminating distance; virtual organization, and
networked innovation.
You Deserve
a Coach!
βυ Georgia Kartsanis, Master Coach & CEO, Sargia
Partners
“Leadership is a potent
combination of strategy
and character. But if you
must be without one, be
without the strategy.”—
Norman Schwarzkopf
Leadership coaching
can be one of the most
effective methods to
build your leadership capabilities and achieve
extraordinary results in these challenging
times. As in sports coaching, natural talent is
only a starting point. True expertise and results
are achieved through expert coaching and
guided experience. The best coached players
and the best coached leaders both maximize
their own impact and become the best coaches
of the people on their teams.
Coaching can help you take on a new role,
build your leadership capabilities, leverage
your strengths, and more successfully achieve
your leadership objectives. Your coach works in
partnership with you to help you focus on and
clarify what you want to achieve, get great at the
skills needed to achieve it, remove barriers to
success, and make things happen.
Your leadership coach reassures, helps build
and maintain self-confidence and a positive
attitude when it is needed the most—especially when facing great opportunities and
difficult challenges. Coaching provides focus,
validation, and reality testing—focusing on
leveraging the leader’s strengths. It will help
you think differently, break out of traditional
mindsets, and be innovative. It builds communication skills, helps to change habits that
don’t work and build key relationships with
individuals and groups for positive influence
and collaboration.
“In a recent study, training alone improved
leadership skills by 22%. When combined with
Leadership Coaching, improvement jumps to
77%.”—Fortune
 www.sargiapartners.com
JULY-AUgust 2010 | BUSINESS PARTNERS | 31
ViewPoint
Smarter Government
for a Smarter Planet
A
s local and national governments work to infuse intelligence into their transport,
energy, water, telecommunications and other systems in
order to stimulate economies and benefit
citizens, it begs the question: can the operations of government itself become smarter?
Smarter government will do more than
simply regulate the outputs of our economic and societal systems. It will be a smoothly
functioning system itself, interconnecting
dynamically with citizens, communities
and businesses in real time to spark growth,
innovation and progress. The challenges are
many—from departmental silos to process
delays to lack of transparency and accountability. But governments around the world
are showing real progress.
Smarter government means collaborating
across departments and with communities—
to become more transparent and accountable, to manage resources more effectively,
and to give citizens access to information
about decisions that affect their lives. In
the UK, Southwest One, an innovative joint
venture, is providing shared services by integrating many functions of the Somerset
County Council, the Taunton Deane Borough Council, and the Avon and Somerset
Police. And in Albuquerque, a business intelligence solution has improved efficiency
by 2,000% in the city’s ability to generate
reports and keep citizens informed.
Smarter government means helping to promote economic growth by streamlining
cumbersome processes and simplifying reporting requirements, which are especially
burdensome to small firms. For example, the
Maryland Department of Labor, Licensing
and Regulation has enabled online renewal
of professional licenses and public verification of valid license holders. And the Belgian
Crossroads Bank for Social Security has automated 42 services for employers, eliminating 50 social security declaration forms. As
The American-Hellenic Chamber of Commerce
a result, 23 million declarations were made
electronically in 2008—a major productivity
benefit for Belgian businesses, saving them
an estimated €1.7 billion a year.
At the most fundamental level, smarter
government means making operations and
services truly citizen-centric. Leading governments are integrating their service delivery, establishing offices that support multiple services and placing the most needed
transactions on the Web. For example, Australia’s Centrelink helps the government to
provide appropriate service offerings based
on citizens’ life events, such as marriage, the
birth of children and the need for elder care.
Kyoto, Japan, created a Web site that allows
all people, regardless of their abilities or native language, to access city information.
And then there are those times when being citizen-centric with speed and accuracy
may be a matter of life and death. During
the recent wildfires in California, government agencies turned to Twitter to provide real-time updates on the status of the
fires—directing people without power, but
with mobile devices, to Google Maps for
evacuation information.
Last June, IBM held the first of a series of
“smarter cities” summits in Berlin. Leaders
and forward thinkers from around the world
shared ideas about smart healthcare, smart
traffic, smart water management, smart energy and more. And among the most promising innovations they mapped out are those
they have applied to government itself.
 ibm.com/think
BUSINESS
Become a Member
Subscribe
To become a member of the American-Hellenic Chamber of Commerce, one of Greece’s
most preeminent and proactive business organizations, apply on the Chamber website at
www.amcham.gr, send an e-mail to info@amcham.gr, call the Chamber at 210-699-3559,
or fax the Chamber at 210-698-5687-7 and request an application form.
To subscribe to Business Partners,
send an e-mail to info@amcham.gr,
call the Chamber at 210-699-3559, or
fax the Chamber at 210-698-5687-7.
32 | BUSINESS PARTNERS | JULY-AUgust 2010
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