Business Partners | March-April 2014 by Raymond Matera Publishing

bponline.amcham.gr

MARCH-APRIL 2014 Vol. XIII | No. 71

Thought Leaders

From Failure to Fairness in Taxation AT&T CEO RANDALL STEPHENSON ON DRIVING GROWTH ▼

RANDSTAD & THE WORLD OF WORK ▼

ONE WORLD— STRATEGIC PHILANTHROPY ▼

MANPOWER: THE HUMAN AGE ▼

PLUS BIZ BUZZ TRENDS & TRADE MAKERS VIEWPOINT

AMERICAN-HELLENIC CHAMBER OF COMMERCE www.amcham.gr

Investing for Tomorrow in Hellenic Aviation

Panos T. Xenokostas

President & CEO, ONEX Group

AMERICAN-HELLENIC CHAMBER OF COMMERCE

Just Like You, We Mean Business Join the American-Hellenic Chamber of Commerce today and let our many membership benefits take your business to the next level. PEER-TO-PEER NETWORKING WORLD-CLASS EVENTS HIGH-LEVEL DISCUSSIONS ADVOCACY FOR YOUR SECTOR MARKET KNOWLEDGE, BUSINESS INTELLIGENCE ATHENS, THESSALONIKI

AMERICAN-HELLENIC CHAMBER For information about how your company can OF COMMERCE American - Hellenic Chamber of Commerce benefit from being a member of Head Office The American-Hellenic Chamber of Commerce Politia Business Center, 109-111 Messoghion Avenue, 115 26 Athens contact Katerina Tzagaroulaki, Executive Officer Tel: 210 699.3559 | Fax: 210 698.5686, 210 698.5687 E-Mail: info@amcham.gr | www.amcham.gr

New Memberships & Events k.tzagaroulaki@amcham.gr 210 699 3559 ext. 22

Branch Office 47 Vasileos Irakleiou Street, 546 23 Thessaloniki Tel: 2310 286.453, 239.337 | Fax: 2310 225.162 E-mail: n.tsavdaroglou@amcham.gr

VOLUME XIII | NUMBER 71

CHAMBER.PRESS ISSN 1109-4990 CODE: 6526

CHAMBER.PRESS

CONTENTS

AMERICAN-HELLENIC CHAMBER OF COMMERCE BPONLINE.AMCHAM.GR

AMERICAN-HELLENIC CHAMBER OF COMMERCE

4 THE BOARD 5 SMART LIVING

Around the World, Cloud is Transforming Healthcare BY SPYROS POULIDAS

6 CHAMBER NEWS 8 ALBA BUSINESS REVIEW

Corporate Social Responsibility and Employees BY PAVLOS A. VLACHOS

1 0 THE WORLD OF WORK

Panos T. Xenokostas, President & CEO at ONEX Group, on the rise of ONEX in the Greek and international aviation market

Randstad & Best People—Working for the Workplace

1 2 ECONOMICS—OUT OF THE BOX

Water Management & Integrated Development BY CHRISTOS KARAVITIS

1 4 NAMES & FACES IN THE NEWS 1 6 THE HUMAN AGE Simplify to Win in the Human Age

BIZ BUZZ 2 0 BUSINESS MATTERS

Energy and Resource Efficiency, Or How Businesses Can Do More With Less

Randall Stephenson, CEO of ATT, talks about TTIP, Greece as an investment location, and the importance of R&D

BY ARIANNA VITALI ROSCINI AND ADAM WHITE

2 2 TRAVEL USA

Discover America—Mississippi

2 4 THE INTERVIEW

Panos T. Xenokostas, President & CEO, ONEX Group

2 6 THOUGHT LEADERS

From Failure to Fairness Taxation as a Measure for Growth, Equity, and Entrepreneurship

3 4 TRANSATLANTIC TRADE ROUTES AT&T’s Randall Stephenson on Driving Growth

Leigh Ostergard, Managing Director at Randstad Hellas, discusses the challenges of Greece’s work environment

3 6 ONE WORLD

Strategic Philanthropy as a Tool For Development BY EPAMINONDAS FARMAKIS

3 8 PRO BONO

E-commerce and the Law—Be Prepared, Not Sorry BY MINA ZOULOVITS

BUSI N ES S PART N ERS I S THE B IMON THLY MAGA ZIN E O F T HE A M ER I CA N - H EL L EN IC CHA MB ER OF COMMERCE DIRECTOR Elias Spirtounias e.spirtounias@amcham.gr

PUBLISHER & EDITOR Raymond Matera raymond@materamiller.com PLEASE RECYCLE

ADVERTISING Alexandra Loli alexandra@materamiller.com

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, 239.337 Fax: +30 2310 225.162 PRINTING & BINDING Northern Greece Publishing S.A. E-mail: n.tsavdaroglou@amcham.gr DESIGN snack•

4 0 MARKETPLACE

PPP in Greece: Investment Opportunities in Public Infrastructure Development BY IOANNIS D. KITSOS

4 1 NEW GREEK PANTRY

Greek Products in the (Global) Marketplace BY ANTHE MITRAKOS

4 4 BUSINESS2BUSINESS A B2B Toolbox

4 6 TRENDS & TREND MAKERS 4 8 VIEWPOINT

Amway Global Entrepreneurship Report 2013

MARCH-APRIL 2014 | BUSINESS PARTNERS | 1

DIRECTOR’S DESK

The events unfolding in 2014 will prove to be a valuable litmus test to determine how mature our society is, how much it has learned from the previous—and painful—five years under crisis, and how it can respond to the exciting yet difficult challenges we face. The upcoming European Parliamentary elections are set to have a profound effect on the future of the EU and, in turn, the future of Greece. As critical events on the borders of the EU evolve, we are witnessing the lack of strong central EU governance, reflecting the lack of a cohesive EU identity among Europeans citizens. At the same time, the EU and the U.S. are negotiating the Transatlantic Trade and Investment Partnership (TTIP), the largest free trade agreement in the world that the Chamber supports, and that is set to increase growth and create millions of new jobs on both sides of the Atlantic. And one the most important outcomes of TTIP is that it will, due to the need for harmonized standards and regulations, hasten the development of a single EU market. But are we ready as a society for these challenges? As emerging economies become our competitors, along with developed markets, remaining competitive becomes ever more difficult. Tomorrow’s world will be run on smart, efficient, management and governance practices. For that we need visionary leadership and a well-prepared citizenry. A look at today’s environment, in which we continue to witness government-Troika confrontations (on issues that should be long-resolved), special interests that wield disproportionate and detrimental power, and a political establishment that continues to use slogans that belong to yesterday’s dinosaurs, is not encouraging. As responsible citizens try to survive and businesses plan for a brighter future and increased employment, we continue to witness the media, and a certain power elite, manipulate reality. It is time to be proactive, not reactive. To build, not point fingers. To come together, not divide and rule. And to focus on simple, effective solutions that bring all of us quick, positive wins. We have heard enough grand strategies built on nothing more than yesterday’s headlines. In 2014, our Chamber will focus on building concrete success stories, proposing solutions, not political campaign promises. Building from the bottom up, not top down. Making our lives better, easier, more in line with what is possible with today’s vast resources. Join us. Together we can make a difference. 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-

2 | BUSINESS PARTNERS | MARCH-APRIL 2014

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.

American-Hellenic Chamber of Commerce EXECUTIVE COMMITTEE

COMMITTEES

Anastasopoulos Simos President | N. PETSIAVAS S.A.

AGROTECHNOLOGY COMMITTEE Members: Argiriou Notis, Bezergiannis Stella, Chriss Dimitrios, Efthymiadis Nikos, Karagiorgos Nikolaos, Katsaros Georgios, Kouides Antonis, Kouimtzis Athanasios, Koukakis Athanasios, Michailides Ekaterini, Nakas Ioannis, Vergos Evangelos | Coordinator: Nikos Tsavdaroglou

Bakatselos Nikolaos Vice President | PYRAMIS METALLOURGIA A.E. Karayannis Angelos Vice President | KARAYANNIS K. GROUP OF COMPANIES Panayotopoulos Litsa Secretary General | BOSTON HAMILTON LTD. Papadopoulos Thanos Treasurer | CHEVELLAS S.A. Canellopoulos Paul Counselor | AIG GREECE Kyriacou Marios Counselor | KPMG CERTIFIED AUDITORS Mamidaki Eleftheria Counselor | MAMIDOIL-JETOIL S.A. Saracakis John Counselor | SARACAKIS BROTHERS S.A. Spirtounias Elias Executive Director

AUDITORS COMMITTEE Members: Felonis Athanassios, Kerameas George, Sabatakakis Kyriacos | Coordinator: Andriana Chadjianagnostou

CORPORATE GOVERNANCE COMMITTEE Chair: Papacostopoulos Constantine | Members: Apsouris John, Charalambous Yiangos, Dimou Ioannis, Hadjisotiriou Paula, Iliadaki Sassa, Petalas Apostolos, Shiamishis Andreas, Theodoulidou Maria | Coordinator: Daphne Constantinidou

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE Members: Alexiou Maria,

Constantelis George, Iliopoulou Sissy, Katsouli Katerina, Lolas Vassilis, Macheras Alexia, Menidiati Manina, Vrachatis Ioannis, Zevgoli Nafsika | Coordinator: Angela Boyatzis

ENERGY COMMITTEE Chair: Karayannis Angelos | Members: Alexopoulos George, Desypris John, Ekaterinari Rania, Peristeris George, Rigas Mathios, Stassis George | Coordinator: Angeliki Dikeoulia

GREEK ECONOMY CONFERENCE COMMITTEE Chair: Αnastasopoulos Simos | Members:

Antoniades Vassilis, Bacacos George, Mamidakis Eleftheria | Coordinator: Angeliki Dikeoulia

INFORMATION TECHNOLOGY & COMMUNICATIONS COMMITTEE Chair: Poulidas

BOARD OF DIRECTORS Alexopoulos George | HELLENIC PETROLEUM S.A. Antonakou Peggy | MICROSOFT HELLAS S.A. Antoniades Vassilis | THE BOSTON CONSULTING GROUP Apostolides Pascal | ABBVIE PHARMACEUTICALS S.A.

Spyros | Members: Antonakou Peggy, Kolokotsas Dionisis, Monokrousos Antonis, Moraitis Andreas, Papadimitriou Pythagoras, Peppas Nikolaos, Tsiboukis Antonis | Coordinator: Georgia Mamali

INNOVATION, EDUCATION & ENTREPRENEURSHIP COMMITTEE Chair:

Panayotopoulos Litsa | Members: Darda Dimitra, Lelakis George, Makios Vassilios, Papadakis Georgios, Pateraki Evangelia, Persidis Andreas, Pilitsis Loukas, Printzos Michael, Raptopoulos Manos, Rizopoulos Yannis, Tsiboukis Antonis, Tsigos Dimitris, Tsoukalis Alexandros | Coordinator: Katerina Tzagaroulaki

Bacacos George | P. BACACOS, CHEMICAL & PHARMACEUTICAL

INSTITUTE ON ECONOMIC POLICY AND PUBLIC GOVERNANCE President: Yanos Gramatidis | Steering Committee: Kotsalos George, Koussia Venetia, Mina Zooullis, Nordkamp Erik, Van Pappelendam Robert | Executive Officer: Angeliki Dikeoulia

PRODUCTS CO. S.A.

INSURANCE, SOCIAL SECURITY & LABOUR MATTERS COMMITTEE Chair: Kremalis

Kafatos Vassilis | DELOITTE BUSINESS SOLUTIONS S.A.

Konstantinos | Members: Andriopoulos Stavros, Apostolopoulos George, Canellopoulos Paul, Christidou Agni, Ioannou Christos, Κandarakis Michael, Karantzola Helen, Kikilias Elias, Kollas John, Konstantinidis Theodore, Kouskouna Froly, Koussia Venetia (Dr.), Lisseos Panayotis, Lyssimachou Triantafyllos, Michos Stathis, Oikonomopoulou Antouaneta, Pelidis Manos, Petroglou Athina, Poulias Alkiviadis, Prountzos Michael, Sarantopoulos Dimitris, Spyrakos Fotios, Spyropoulos Rovertos, Tompras Theodossis, Tzotzos Apostolos, Vafeiadis Ioannis, Velmachos Dimitrios, Vlassopoulos George | Coordinator: Voula Tseritzoglou

Kartsanis Georgia | CEO CLUBS GREECE

IPR COMMITTEE Chair: Galanopoulou Katerina | Members: Ailianou Andromahi,

Costopoulos Alexandros | FORESIGHT STRATEGY & COMMUNICATIONS Coustas John | DANAOS SHIPPING CO. LTD

Kokorotsikos Paris | EUROCONSULTANTS S.A

Economou Alexandra, Kargarotos Iakovos, Kyriakides John, Makris Antonis, Michos George, Paparrigopoulos Xenophon, Zachou Dora | Coordinator: Daphne Constantinidou

Kosmatos Makis | JOHNSON & JOHNSON CONSUMER S.A.

LEADERSHIP COMMITTEE Chair: Miropoulos Artemis | Members: Kalligeros John,

Kostas Stavros | Economist Kouidis Marilena | KOUIDES A.P.L. S.A. Koussia Venetia | MANPOWERGROUP S.A.

Katsivelis Pavlos, Kerastaris Antonis, Kofinas Kyriakos, Mamidakis Eleftheria, Mavropoulos Michael, Olympios Spyros, Panteliadis Aristotelis, Rabbat Vassilis, Raptopoulos Emmanuel, Roussos Michalis, Saracakis Alexandros, Vlachos George | Coordinator: Ritana Xidou

MEDICAL DEVICES & DIAGNOSTICS COMMITTEE Chair: Liakopoulos Theodore |

Kyriakides John | KYRIAKIDES GEORGOPOULOS LAW FIRM

Members: Anagnostopoulos Stefanos, Anastassiou Yannis, Baracos Christos, Boulougouris George, Christopoulou Martha, Deligiannis Konstantinos, Derkos Kalogridis, Kartalis Christos, Krinos Gregory, Lindholm Mangnus, Maroutsis George, Nikas Dimitris, Strouzos Anastasios | Coordinator: Voula Tseritzoglou

Lazaridis Socrates | ATHENS EXCHANGE

NORTHERN GREECE COMMITTEE Chair: Bakatselos Nikolas | Members: Alexopoulos

Koutsoureli Eftychia | QUEST HOLDINGS S.A.

Charis A., Gigilinis Alexandros, Kafatos Vassilis, Kanelakis Ioannis, Katsaros Georgios, Kokorotsikos Paris, Kouides Antonis, Kouimtzis Athanasios, Koukountzos Konstantinos, Vlachos Panos | Coordinator: Nikos Tsavdaroglou

PHARMACEUTICAL COMMITTEE Chair: Pascal Apostolides | Vice Chairman: Filiotis

Dionysios | Members: Capone Carlo, Charalampidis Savas, Commissaris Jeroen, Dakas Christos, Frouzis Konstantinos, Gerassopoulos Marcos, Greco Roberto, Karokis Antonis, Kefalas Nikos, Lakatos Matyas, Lorge Emmanuel, Nordkamp Hendrikus Hermannus (Erik) | Coordinator: Voula Tseritzoglou

Papalexopoulos Dimitri | TITAN CEMENT COMPANY S.A.

PUBLIC AFFAIRS COMMITTEE Members: Canellopoulos Paul, Kyriacou Marios,

Papazoglou Panagiotis | ERNST & YOUNG (HELLAS) S.A.

TAXATION COMMITTEE Chair: Stavros Costas | Members: Achilas Ioannis, Altiparmakis

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Papadopoulos Thanos, Saracakis John | Coordinator: Xidou Ritana

Christos, Ampeliotis Evangelos, Anastasiadis Harris, Desipris Antonis, Doucas Spyros, Filippopoulos Dimitris, Gigantes Stavros, Govaris Vassilis, Kanellatou Athena, Kerameus George, Kyriakides Stelios, Laskaratos Panagiotis, Leventis Thomas, Lianopoulos Themis, Mitsios Stephanos, Nasiopoulou Maria, Panagiotidis George, Papadatos Eugene, Papandreou Cristina, Pothos Panagiotis, Samothrakis George, Savvaidou Katerina, Savvas Evangelos, Sfakakis Konstantinos, Spyriouni Litsa, Stavrides Vassilis, Stavropoulos Ioannis, Tapinos Grigoris, Trakadi Maria, Tsakonas Yannis, Yiannacou Sofoklis | Coordinator: Katerina Tzagaroulaki

TOURISM COMMITTEE Chair: Stylianopoulos Andreas | Members: Ananiadis Tim, Argiri Byron, Fokas Makis, Marriott Carol, Mavropoulos Michael, Panayotopoulos Panos, Van de Winkel Bart, Vrachatis Ioannis | Coordinator: Angeliki Dikeoulia

WOMEN IN BUSINESS (WIB) COMMITTEE Chair: Kartsanis Georgia | Members:

Adamopoulou Efi, Anagnostopoulou Popi, Athanassoulas Elena, Dimou Maria, Katsou Nelly, Kazakopoulou Betty, Labrou Marica, Milona Martha, Panagopoulou Varvara, Tarou Iphigenia, Tzimea Deppie, Velliotou Peggy | Coordinator: Angela Boyatzis

SMART LIVING

BY SPYROS POULIDAS GENERAL MANAGER, IBM GREECE & CYPRUS

Around the World, Cloud is Transforming Healthcare

herefore, it comes as no surprise that South East Europe is the least developed part of Europe at large. But this is about to change. International tensions, political uncertainty, and corruption have prevented this part of Europe from keeping up with the rest of the continent. Following the dissolution of Yugoslavia and the creation of seven sovereign states in its stead (including the still disputed area of Kosovo), tension gradually subsided, and the region showed a keen interest in rapidly proceeding to an approximation with the rest of the continent. In 2007, Romania and Bulgaria joined Greece,

ence over the last five years has slowed down the integration process initiated by the EU for this region. However, even during these difficult years, South East Europe keeps transforming itself into a single regional business area where obstacles for economic growth are lifted, one after the other. English is now a common language in the area, spoken fluently by a much more educated and skilled workforce, which is also familiar with new technologies. Together with a remarkable improvement of the education level of younger generations, most countries have displayed an impressive adjustment to the new international business environment by reducing their tax rates in

CLOUD IS AN INVISIBLE ENABLER THAT’S STARTING TO MAKE A DIFFERENCE IN LIFE-AND-DEATH DECISIONS MADE BY PHYSICIANS ON THE FRONT LINES OF TREATMENT

the most developed country in the region, as full members of the European Union. The remaining countries have all gained the status of candidate or “potential candidate” member, securing valuable funding and technical aid from EU resources; Croatia became a full member in 2013. The international financial turmoil in exist-

all basic categories of taxation (corporate tax, income tax, and VAT), and by ensuring unprecedented records in “Ease of Doing Business” and other international rankings related to protection of the rule of law, human rights, and democratic processes. Approximation of laws due to accession or candidacy to the EU and other internation-

Leading healthcare providers around the world now rely on mobile devices for easy access to electronic medical records, images and other information important to patient care.

al organizations has significantly facilitated foreign investment and international trade. Although we must always keep in mind that South East Europe is a region of diverse jurisdictions, with economies varying from “pre-emerging” to “emerging” to “mature,” experience has shown that the key to success in this region is to view it as a single market of around 60 million people with important cities and metropolitan areas, from Limassol on the south east, to Iasi and Chișinău on the north east, to Sarajevo on the north and Podgorica on the west. This diversification is a strength of South East Europe, as it provides excellent prospects both for conservative investment and rapid growth depending on the jurisdiction. With major infrastructure projects currently in place or under way throughout South East Europe, most often supported by government and EU funding, excellent opportunities can be found in almost all industries including energy, real estate, logistics and transportation, technology, mining and agriculture. Most countries are now engaging in ambitious privatization projects to improve their fiscal status and attract major foreign direct investment. Seeing this unique opportunity, Drakopoulos Law Firm is strategically positioned in the region, with main offices in the capital cities of three countries (Athens, Bucharest, and Tirana) and a presence in 8 more jurisdictions, to cover the ever-increasing needs of international clients who require a single interface for top quality legal advice as they penetrate or enhance their presence in the entire region, rather than in separate national markets.

MARCH-APRIL 2014 | BUSINESS PARTNERS | 5

CHAMBER NEWS

Leadership Committee Engages Young Entrepreneurs The American-Hellenic Chamber of Commerce, in collaboration with its Leadership Committee, held two events on Business Opportunities of the Future and the Development Of Entrepreneurship, one on January 23, 2014 at 17:00 at the premises of Mercedes-Benz Hellas, and one on February 27 at the premises of TUI. At each event members of the Leadership Committee, under the Chair of Artemis Miropoulos, discuss challenges and opportunities that young people face as they confront career decisions. The forums also provide the students with an opportunity to interact with senior executives and learn first hand about the workplace. More than 200 high school seniors and university students attended each unique gathering. At the Mercedes-Benz event, Mercedes-Benz Hellas CEO John Kalligeros spoke on the ingredients for success in business and Dr. Yiannis Kalogerakis, CEO of JMK Ltd., known for his long academic experience and expertise in human-centered approach and human resource development, spoke on fulfilling dreams. At the TUI event, Michael Mavropoulos, TUI Hellas CEO, spoke about the recovery of Greek tourism in 2013 and presented the positive forecast for the future. Mr. Mavropoulos emphasized the importance of maintaining stability, upgrading infrastructure, and developing a collective tourism consciousness. SIMOS ANASTASOPOULOS

JOHN KALLIGEROS

NEW YEAR’S RECEPTION— ATHENS The Chamber hosted its annual New Year’s Reception on January 27, 2014 at the Athenaeum InterContinental Hotel in Athens. The event, attended by 700 guests, brings together Chamber members, leading government officials, members of Parliament, Ambassadors, organization presidents, media and other prominent executives of the business community to enjoy a pleasant and rewarding networking event. Welcome remarks were made by Simos Anastasopoulos, President of the Chamber, U.S. Ambassador David Pearce, and Thanasis Skordas, Deputy Minister of Development and Competitiveness. A special recognition award for their continued contribution to society was presented to The Smile of the Child, The Ark of the World, and Anthropini Anthropi. SIMOS ANASTASOPOULOS

YIANNIS KALOGERAKIS

PANEL SPEAKERS

AMBASSADOR PEARCE, SIMOS ANASTASOPOULOS, THANASIS SKORDAS

PANEL SPEAKERS

MICHAEL MAVROPOULOS

AWARD RECIPIENTS AMONG CHAMBER MEMBERS AND GUESTS OF HONOR

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Taxation Seminars for Americans Living Abroad

STEPHEN FLOTT U. S. CONSUL ROBERT P. SANDERS AND GUESTS CUTTING THE PITA.

CHAMBER VICE PRESIDENT NIKOLAOS BAKATSELOS

NEW YEAR’S RECEPTION— THESSALONIKI

The Chamber and U.S. Embassy in Athens hosted two Tax Seminars for Americans living abroad, one in Thessaloniki, at the MET Hotel on February 10 and one in Athens, at the American School or Archeological Studies, on February 12. The seminars were attended by more than 400 Americans living in Greece. Stephen Flott, a tax attorney and expert CAPACITY ATTENDANCE on taxation issues of Americans living abroad, presented the seminars, where attendees learned about the tax filing and bank report obligations of U.S. citizens working or living abroad.

Institute on Economic Policy and Public Governance The Chamber’s Institute on Economic Policy and Public Governance has been active in preparing its 2014 agenda and finalizing it first major work to date: The Codification of Legislative Acts related to reform in Greece. It is the first time such a quantified record, or database, of aggregate political activity has been created. The Codification takes the form of a spreadsheet and e-book that records legislation, presidential decrees, and ministerial decisions from 2010 to 2013. Each legislative act is recorded by ministry, sector, and year and may be cross-referenced. In April the database will be uploaded online as an interactive tool for policy makers, scholars, researchers, lawyers, students, and the business community. This database will prove invaluable as it provides the first codification of legislation of its kind for public access.

The Chamber hosted its annual New Year’s Reception on February 10, 2014 at the Met Hotel, Thessaloniki. Members of the Northern Greece business, political and diplomatic establishment met to exchange greetings for the new year. U. S. Consul Robert P. Sanders was the guest of honor.

Chamber Calendar March 28 Athens, InterContinental Hotel, 10th Athens Tax Forum March 31 Athens, Michael Cacoyannis Foundation, WIB Forum 2014: The Workplace Through the Eyes of Generation Y April 7-8 Athens, Athenaeum Intercontinental Hotel, Defense World-Exposec Conference April 10 Athens, Saracakis Bros Offices, 3rd Roundtable forum “Job Opportunities of the Future and Development of Entrepreneurial Spirit” April 28 Athens, Data Protection Forum April 29 Athens, TBA, 1st International MIW Conference May 9-10 Thessaloniki, TBA, Thessaloniki Forum (in cooperation with Federation of Northern Greece Industries)

MARCH-APRIL 2014 | BUSINESS PARTNERS | 7

ALBA BUSINESS REVIEW

BY PAVLOS A. VLACHOS ASSISTANT PROFESSOR OF MARKETING, ALBA GRADUATE BUSINESS SCHOOL AT THE AMERICAN COLLEGE OF GREECE

Corporate Social Responsibility and Employees

his role of companies has led some authors to view Corporate Social Responsibility (CSR) as a broadened model of governance with corporations contributing to regulation and the provision of public goods. Parallel to this heightened business interest in CSR programs, scholarly research focusing on the macro level – that is, studies conducted at the organizational level- has become more prevalent. Although these studies have contributed insights pertaining to whether CSR influences several types of firm performance (for instance, business profitability, firm reputation or consumer trust and loyalty), more needs to be done. In particular, there is currently limited research examining employees’ reaction to CSR initiatives. This gap in knowledge is disconcerting, given that employees play a key role in the success of CSR; they are those who actually execute CSR programs. In a research program initiated by ALBA Graduate Business School at The American College of Greece in cooperation with the Culverhouse College of Commerce at University of Alabama (with Dr. Nikos Panagopoulos & Dr. Adam Rapp), we set out to examine how employees assess and respond to CSR. Key takeaways for practitioner managers follow:

8 | BUSINESS PARTNERS | MARCH-APRIL 2014

First, our findings inform practitioners that CSR pays off; employee CSR judgments of whether the company is socially responsible or not influence important work outcomes. Specifically, organizations that manage to convince employees that they care about the society and/or the environment, can expect their employees to feel affectively committed (i.e., emotionally attached) to the organization, loyal to the organization,

THERE IS CURRENTLY LIMITED RESEARCH EXAMINING EMPLOYEES’ REACTION TO CSR INITIATIVES

and engage in employee advocacy. Second, our findings indicate that companies, in their effort to win the war for talent and turn employees into company ambassadors, should design, implement and communicate appropriately motivated CSR initiatives (i.e., CSR actions convincing stakeholders that the company genuinely cares about helping the society and/or the environment, and that CSR investments are

Companies are increasing their Corporate Social Responsibility and engage in public policy and social activities that have traditionally been considered as governmental.

about windows-dressing and greenwashing). In all, managers should (i) design CSR actions in ways that will signal values-driven motives to employees (for example, through high organization-cause fit), and (ii) internally communicate those values-driven motives. For example, newsletters, emails, announcements, corporate events, and web sites all need to be coordinated and work together toward enhancing organizational image as a socially/environmentally responsible company with genuine motives. Finally, for a successful inside-out approach to CSR implementation (the idea that CSR activities should first and primarily target internal stakeholder and at a second step external stakeholders), our study suggests that organizations should first and foremost start “selling” their CSR qualities primarily to middle-level managers, given their important linking pin role in the communication and implementation of top management’s strategies. The idea is as simple as that: if middle-managers are convinced that the organization is genuinely socially responsible, then their CSR judgments are likely to spread to their subordinates. This CSR spillover process has an important caveat though: it takes place only when the manager has transformational leadership qualities. If the middle manager (supervisor) is primarily transactional in his/her leadership qualities then the CSR spillover process will backfire: higher supervisor CSR judgments will be perceived by subordinates as hypocritical and will lead to unfavorable (subordinate) CSR judgments.

THE WORLD OF WORK

RANDSTAD & BEST PEOPLE—

SHAPING THE WORLD OF WORK LEIGH OSTERGARD, MANAGING DIRECTOR AT RANDSTAD HELLAS, DISCUSSES THE CHALLENGES OF GREECE’S WORK ENVIRONMENT—AND OPTIONS FOR IMPROVEMENT. What are some of the key challenges in the labor market in Greece today? First, the unemployment rate. This is a result of many local factors, one being the lack of appropriate labor legislation regarding flexible and agency work that will safeguard the interests of both employees and employers. There is a direct correlation between countries with a flexible employment market and the competiveness of the economy. Second, the long-term unemployment rate— over 6 months—is a real concern since the longer a person is unemployed the harder it is to return to employment. That is why many European countries, for instance France, Belgium, and Spain, have passed legislation requiring businesses that need restructuring to provide outplacement services to their employees, especially those over 45, to get them employed as quickly as possible. Also, the high youth employment rate, at 60%, is a real challenge and, not mentioned

10 | BUSINESS PARTNERS | MARCH-APRIL 2014

so often, is the growing unemployment rate of those over 50. These mature workers face real challenges if out of work for long periods. According to a recent Eurociett survey, in France, 84% of employees under 25 and, in Italy, 40%, enter the labor market through temporary employment agencies. Last, the undeclared labor or ‘black market’ in Greece needs to be faced. It is clearly not good for the employees, without insurance and security; and very risky and possibly costly to employers as government agencies are aggressively performing inspections and imposing harsh penalties. Countries with appropriate legislation for agency work have lower undeclared labor economies. What would improve the environment, both for a better level of employment and increased employment? Studies have shown that companies, small, medium or large, that use temporary em-

ployment agencies have quicker development and growth after an economic downturn, in sectors from exports to services to manufacturing. When companies start to grow they hire and unemployment falls. One recommendation is to proceed with the deregulation of the labor laws as in other European countries, reducing restrictions, creating a more flexible and competitive environment and ensuring that all parties comply with the local and European legal framework. A second recommendation is to continue to tackle the undeclared labor market and ensure that all companies that provide temporary employment to businesses are operating in accordance to the legal requirements in Greece. Temporary work leads to permanent employment; the data of the UNI EUROPA PROJECT confirm this as 48% of temporary agency employees in the UK, and 33% of temporary agency em-

ployees in the Netherlands, find permanent work within one year. To improve employment for those who are employed, especially in these uncertain times, one of the first priorities of businesses should be to provide a sense of security to employees with clear, constant, and transparent communication. Although this may seem easy, it is often not done. One of the main reasons an “employed” person sends a CV to Randstad is fear of the company’s performance. Additional areas to enhance employee satisfaction are based on many factors and personal motivators such as salary, responsibility, challenges, working environment, team/social gathering, flexibility, and other benefits to add to employee income. But—as costs are a concern for most businesses these days—simply showing appreciation and recognition to employees means so much and cost so little. In addition to the fear of the company performance, not feeling recognized or appreciated is one of the main drivers to seek employment elsewhere. How can employers and employees increase their levels of productivity and, at the same time, levels of satisfaction? Today, when cost is a priority, increasing productivity with the same resources is a challenge. Focusing on improving or enhancing employee engagement, especially during uncertain times, can bring quick and long-term results without high investment. This is something that we at Randstad believe strongly in, as “Best People’ is a building block of our business and one of key drivers to our profitable, sustainable growth during this crisis period in Greece. Employee engagement has been associated with higher productivity, increased customer satisfaction, lower absenteeism, and lower staff turnover. How does Randstad help companies become more efficient and better places to work? Randstad, as one of the leading HR services companies in the world, has in-depth local and international experience and knowledge that can assist businesses with a wide array of HR services. Whether the company

is big or small, and regardless of the nature of the business, we deliver made-to-measure HR services, and we have been doing this for over 55 years around the globe. A business may need advice on how to start a flexible temporary workforce; support to hire new staff and needs a specialist to find permanent employees; is experiencing restructuring and needs outplacement services; is seeking new, innovative ways to outsource their recruitment/selection process (RPO); or wants to increase productivity and lower costs (RIS). Randstad provides a wide variety of HR services to assist companies to be innovative, efficient, and increase productivity, all resulting in growth and a better place to work. You are recognized for your strong focus on people and services. How does this fit into your corporate approach? “Best People’ is one of the 4 strategic building blocks of our company and an area that I believe very strongly in. This is what makes Randstad in Greece unique, from our ‘good to know you’ company culture, our consultants’ focus on really getting to know our clients, our candidates, and building strong relationships. Our people are our most important asset. Our success largely depends on the people we employ and that is why we have experienced strong, sustainable growth. Randstad continues to invest in people, to create an environment in which they can grow and provide excellent experiences and results for our clients and candidates. As we measure our financial and operational performance we measure our

employee engagement as well. Every year an international survey is conducted by an external consulting firm based in Amsterdam that is utilized throughout all Randstad companies globally, designed to measure satisfaction, pride, and work-life balance among 19 engagement drivers. Since 2009, Randstad Greece has had the leading ranking among all 40 Randstad countries; this is a rating by our own employees. Ambition, job content and freedom are drivers with the highest scores resulting in low staff turnover, higher employee retention, and higher quality of client service and results. When our clients and candidates speak to a Randstad employee one day, they are guaranteed they will be able to speak to the same employee the next day, and the next day. That kind of continuity allows us to go the extra mile with our clients, supporting their service needs and business growth. As an American living and working in Greece, what do you find are some of the most striking characteristics of the Greek work environment? Greece is a beautiful country and it is a great experience to work here. Of course, there are some aspects of the work environment that are different than in the U.S. One of the most striking is the bureaucracy. It is one of the biggest obstacles that businesses, and people, face that makes the experience quite challenging, unpredictable and, at times, very frustrating. But, we must learn to adapt or we will not survive. It certainly keeps us on our toes, teaches us patience and flexibility, and to think out of the box.

MARCH-APRIL 2014 | BUSINESS PARTNERS | 11

ECONOMICS— OUT OF THE BOX

BY CHRISTOS A. KARAVITIS M.SC., PH.D., ASST. PROFESSOR, WATER RESOURCES MANAGEMENT

Water Management & Integrated Development

n a word, water management has not been given the major role it deserves as a development factor. Not only is there no global view of water problems, but water resources, especially river basins as a critical management unit, have not been accorded the importance they deserve. Water planning is critical for effective socio-economic and land use planning as well as in policies regarding the environment, health, energy, agriculture, industry and, more important, in efforts for regional development. A focus of strategic planning is missing, in contrast to the heavy emphasis on description and diagnoses. Structural inadequacies, faulty planning methods, and a host of irrelevant evaluation procedures have not permitted many countries, including Greece, to achieve or even take advantage of a growth environment. Inadequacies center around a few key points: • Incompatibility between development planning and the political decision process, especially because of a limited time span of planning and unstable organizational environments. • Lack of goal orientation and weak normative or “teleological” thinking. Instead, we find a preoccupation with short-term production objectives rather than the long-term capacity orientation important

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for a growth environment. • Ignorance regarding the differential process of development coupled with a failure to incorporate principles of complex, interdisciplinary approaches in the transformation process. • Preoccupation with sectoral planning and reductionist analysis rather than a systemic thinking orientation and multi-objective, multi-disciplinary considerations. It is important to summarize a number of concerns regarding integrated water resources management: • There are serious questions related to the relative advantages of centralized versus decentralized systems of management and to the merits of local economies and independence compared with regional, or even national, systems of interdependence and economies of scale. • The advantages of regional planning for comprehensive development have not been clearly demonstrated, mostly because of certain features of regional organizations that were created to carry out such tasks. • The modeling of the system and the delineation of critical variables (both in terms of structure and inter-relationships) is still an elusive enterprise because of epistemological subtleties, methodological difficulties and macro, micro-system integration.

Economics—Out of the Box is a Business Partners series by members of the Chamber’s Institute on Economic Policy and Public Governance. • Physical and non-physical dimensions (and relevant “structural” and non-structural” solutions) have not been successfully integrated to allow explication of interaction and delineation of “causal” chains in the development process. • The latest demands to account for “cumulative” impacts in the context of reasonably foreseeable futures, i.e., the need to estimate interactive, diachronic, aggregative consequences of a variety of projects on the surrounding environments, presents a major challenge. • Fundamental questions arise as to how to bridge the gap between rhetoric and reality, or how to move from analysis to action. Such concerns refer to mobilization for action, successful implementation efforts and monitoring implementation over long-term efforts. For Greece, these issues mean there are continuous conflicts at individual, local, national, and transnational levels and that incongruencies and conflicts will further increase as demands change and the social structure of the country is transformed. Increasing demands, misuses and abuses of water arising from rapid urbanization, haphazard touristic growth, uncontrolled agricultural practices and the overall economic pressures from rising standards of living reinforce these trends. Thus, present and potential future conflicts become the driving force for a comprehensive framework of integrated planning and water resource management and to develop an institutional framework according to EU legislation, capable of implementing properly conceived and articulated resource policies.

http://bponline.amcham.gr

NAMES & FACES

...in the news ▼ INTRALOT USA Intralot USA was awarded an extension of its contract by the New Mexico Lottery Board for the provision of the online Lottery Gaming System and related products and services. The new amendment extends the current seven year contract, for three additional years, from 2015 until 2018. ▼ GREECE TO GET THIRD HILTON HOTEL, IN CRETE A third Hilton hotel is to open in Greece, following those in Athens and Kos, in Crete, by Dolphin Capital Investors (DCI) as the group kicks off a series of investments worth more than 1 billion Euros. DCI has reached an agreement for the construction at Sitia, eastern Crete, of a Waldorf Astoria hotel, the highest quality hotel brand of Hilton Hotels and Resorts. DCI will operate the hotel; construction is expected to begin next year.

ATTICA VENTURES CELEBRATES 10 YEARS At an event held on Wednesday January 29, Attica Ventures celebrated its tenth anniversary at BizArt. Among the guests were Minister for Development and Competitiveness, Kostis Hatzidakis, Deputy Minister for Finance Christos Staikouras, Secretary-General for Research and Technology IOANNIS PAPADOPOULOS Dr. Christos Vasilakos and Secretary-General for the Consumer and Industry Giorgos Stergiou as well as Members of Parliament, diplomats and numerous members of the banking and business communities. The CEO of Attica Ventures Ioannis Papadopoulos welcomed the many guests and dignitaries.

▼ EHEALTH FORUM: CREATING PARTNERSHIPS

HELLENIC AEROSPACE— LOCKHEED MARTIN

IN EHEALTH SOLUTIONS

Athens is to host the eHealth Forum 2014 May 12-14 at the Megaron Athens Conference Center. Organized during the Greek Presidency of the European Union, eHealth Forum 2014 is the premier health IT event for the exchange of experiences, good practices and innovation between the U.S. and the member states of the European Union. For additional information on the U.S. Pavililion contact Betty Alexandropoulou: Betty.Alexandropoulou@trade.gov ▼ GENERAL MILLS INVESTS 2.4 MILLION EUROS IN GREECE The company that carries the Pillsbury and Häagen-Dazs brands in Greece, General Mills, has pledged to stay despite the crisis and create new jobs, as well as to produce a new product at its factory in Inofita. This investment amounts to more than 2.4 million Euros from General Mills directly and an additional 429,967.50 Euros in the form of grants and tax exemption. The new move will create 30 new jobs. ▼ KORRES IN AGREEMENT WITH AVON Korres announced a strategic partnership agreement with Avon Products Inc. for the production and distribution of Korres Natural Products in Latin America. The Greek company said the agreement will ensure revenues up to 11.5 million US dollars (around 8.5 million Euros) for the first 12 months of the partnership; Avon will pay rights for the use of Korres’ copyrights based on sales trends and extra charges for support services.

SPEAKER’S CORNER 14 | BUSINESS PARTNERS | MARCH-APRIL 2014

WHO’S ASKING?

Hellenic Aerospace Industry (EAV) delivered to Lockheed Martin Aeronautics the 100th structural component for the fuselage mid-panels of C-130j aircraft. “This delivery is another example of EAV’s high technical knowledge and capabilities,” said CEO Dimitris Papakostas, and Lockheed Martin DENNIS PLESSAS Aeronautics executive Dennis Plessas expressed his satisfaction regarding the professionalism and the cooperation of EAV’s personnel. The Greek company is the exclusive supplier of C-130j mid-panels to all Lockheed Martin Aeronautics clients globally.

COSTA NAVARINO PARTNERSHIP Costa Navarino announced a multifold partnership with the Hellenic Olympic Academy. This collaboration aims to promote further the Olympic ideals and values, introducing them to new audiences in the Messinian region as well as to guests from around the world.

Judge a man by his questions rather than his answers. —Voltaire

LET’S MEET. NOT.

Fire the committee. No great website in history has been conceived of by more than three people. Not one. This is a deal breaker. —Seth Godin

GEORGE KOUMBOUNIS MANAGING DIRECTOR, HYPEAGENCY.GR

Facebook for Business What’s new in Facebook marketing? Graphic Search! This allows users to search via the Facebook search bar, which will suggest terms as you type. These results are applicable to the user based on the searcher’s Facebook environment and actions performed within it. For example, if you search for a restaurant in Athens the results that would come up first are restaurants that the searcher and searcher’s friends have been engaged with (liked, checked-in, commented on). How about Facebook applications for business? The prime purpose of creating Facebook applications is to collect potential customer data such as emails and cell phone numbers to further businesses communication efforts, increase likes on a Facebook page and redirect and increase website traffic. Popular applications that bring high levels of engagement are “Win the Draw,” “Photo Contests,” “Vote and Win,” “Take Our Quiz” and company branded games. How do you run these campaigns? The first thing every business needs to do is identify its goals. “What it is trying to achieve” and “when do they know they have achieved it” are the two important questions. Based on this we create a campaign for clients through a Facebook Application with copywriting that will give users a motive to engage with the brand and, in return, will have a positive experience.

▼ STELIOS STAVRIDIS:1959-2014 Stelios Stavridis died of cancer on February 19. Stelios, the father of three children, was married to Jelly Gasparatou. He had a long and successful career, at Lavipharm, Aigaion, Lafarge-Heracle, Hellenic Petroleum, Hellenic Refinery, EYDAP S.A. and TAIPED (Hellenic Republic Asset Development Fund). In 1991 he founded Ideales Group (Piscines Ideales, Ideales Spa, Ideales Resort, Ideales Construction). Stelios was a member of the BoD of the Chamber and President of its CSR Committee. Chamber President Simos Anastasopoulos said, “Stelios was not only an outstanding businessman, he contributed greatly to the development of Greece and was a close and beloved friend of the Chamber. We will miss him dearly.” ▼ NEW SERVICE FROM HELLAS DIRECT Hellas Direct has created Timeline, a new service that allows drivers to select the exact duration (between 30 and 365 days) of their insurance policies. And, after one year of operation, Hellas Direct is extending its network to include the prefecture of Thessaloniki. As of January of 2014, car drivers in Thessaloniki can benefit from the Hellas Direct integrated insurance programs and competitive pricing. ▼ ELEFTHERIA ARVANITAKI AT CARNEGIE HALL Greek singer Eleftheria Arvanitaki performed at Carnegie Hall in New York City on February 1 before an audience of nearly 3,000. “The concert,” Ms. Arvanitaki said, was “an unexpectedly magical night, with great emotion, very powerful, with a lot of love, a packed Carnegie Hall... A night I will never forget.” ▼ GREECE IS 12TH COUNTRY TO JOIN ECOMMERCE EU-

ROPE WITH GRECA

Greek-based GRECA joined Ecommerce Europe, the European umbrella organization for e-commerce consisting of associations and companies selling products and/or services online. GRECA, the Greek e-commerce association, represents over 115 e-tailers in Greece. GRECA stands for GReek ECommerce Association and was established in 2012 in Greece by 22 e-commerce companies.

ALBERT SHOULD KNOW

NOW, IT’S CLEAR

—Albert Einstein

—Tom Peters

Great ideas often receive violent opposition from mediocre minds.

If you’re not confused, you’re not paying attention.

SWEET WORDS

If you try to do something and fail, you are vastly better off than if you had tried nothing and succeeded. —The Back of a Sugar Packet

MARCH-APRIL 2014 | BUSINESS PARTNERS | 15

THE HUMAN AGE

SIMPLIFY TO WIN IN THE HUMAN AGE

BY DR VENETIA KOUSSIA PRESIDENT AND MANAGING DIRECTOR, MANPOWERGROUP, MEMBER OF THE STEERING COMMITTEE OF THE CHAMBER’S INSTITUTE OF ECONOMIC POLICY AND PUBLIC ADMINISTRATION.

WHY ORGANIZATIONAL AGILITY IS A MUST IN CERTAIN UNCERTAINTY THE “4 WORLD OF WORK DYNAMICS” THAT MANPOWERGROUP IDENTIFIED BACK IN 2011 HAVE INTENSIFIED, PUSHING, PULLING AND CONVERGING, MUCH LIKE A GORDIAN KNOT THAT IMPEDES GROWTH.

mployers have awakened to the implications of these trends accelerating and converging. In ManpowerGroup’s 2013 Talent Shortage Survey the number of global employers who believed talent shortages would negatively impact their business was 54%. Back in 2012, 56% indicated that unfilled positions were expected to have little or no impact on their businesses. It could

16 | BUSINESS PARTNERS | MARCH-APRIL 2014

be said that in the face of certain uncertainty, business leaders are becoming more agile than ever; this shift from alarming complacency to understanding the risks involved taking less than a year to manifest itself.

MANPOWERGROUP – THE 4 WORLD OF WORK DYNAMICS

In 2014, there are encouraging indicators that economies are gathering momentum—

stronger growth figures are cited as evidence that 2014 will be a “breakthrough year” for the U.S. economy. At the same time, our company’s Q1 2014 Employment Outlook Survey research shows a persistent positive trend in the Greek labor market. However, the severity of the global recession and the frustratingly muted recovery that followed, coupled with constant economic, social and political shifts, have permanently altered the mindsets of business leaders. We are focused on keeping our organizations as tight as possible rather than expanding our workforces. We are intent on avoiding the next external shock that we fear is just around the corner, and believe there is no reward for taking big risks. The recession may be in the rearview mirror, but in many respects the recession mentality still exists. The challenge for 2014 is how to adapt and evolve in the face of the many interrelated forces that shape today’s business.

WHY SIMPLIFICATION IS A MUST

Market volatility, compressed economic cycles, greater pressure for faster time-to-value, increased competition and higher consumer expectations are the new reality. While it is difficult for us to forecast and avoid all uncertainty, we need to focus on factors we CAN control—being flexible and agile to respond to certain uncertainty. It is true that we cannot predict the future. However, an agile organization can respond rapidly to changes—and the only way to drive this is to think and act differently, to simplify our organizations. Simplification allows business leaders to make faster decisions and with a more nimble, agile organization, they can quickly adapt to an uncertain environment and deliver faster on business objectives. Simplification streamlines organizational structure. It promotes more efficient processes, reduced costs, faster decisions and improved technology. Successful simplification can enhance productivity and efficiency and allow business leaders to achieve strategic goals faster, even in an uncertain environment. The key to making simplification work lies— again—in our people. In a recent Survey by The Conference Board we saw that CEOs around the world—and in Greece—consider “Human Capital” their number 1 challenge for 2014. It comes as no surprise that we are all greatly challenged by Human Capital. Successfully sourcing, selecting, engaging and retaining the right talent is critical for successfully tackling the other top challenges that we face: Customer Relationships, Innovation and Operational Excellence. Human Capital “is, in essence, the thread that runs through the other top challenges and forms the basis for strategic action.”1

WHAT LEADERS NEED FROM THEIR CHROs TO DRIVE AGILITY

While in the Human Age CEOs set the tone for their organizations, their leadership style being adopted and championed by their executive team and reflected in the organization’s culture, they will need to rely on other company leaders to help drive agility throughout the organization. Successful simplification will depend, in great part, on

how closely it aligns with the talent strategy and how closely chief human resources officers (CHROs), who drive the talent strategy, work with their CEOs. Yet, companies are still struggling to link their talent strategy to their business strategy. To be fully effective in their roles and help CEOs drive optimum business results, CHROs need to shift from being internally focused and program-driven to become more externally focused, and data and business insight-driven. In many ways, CHROs need to be their organizations’ “economists,” providing market intelligence on talent supply and demand, backed by internal and external data. CHROs are tasked with implementing a one-size-fits-one talent strategy that aligns with and supports an organization’s unique business strategy and evolving needs. They must analyze those needs, identify disparities and ensure that the gap between what talent can do and what the business needs it to do is closed. In addition to focusing on their organization’s unique talent strategy needs, CHROs must also apply a one-sizefits-one approach to addressing the needs and aspirations of individual employees. Simplification should encompass people practices, work models and talent sources. With simplified people practices, hierarchies are flattened, leaders are assigned broader roles, collaboration is promoted, partnerships are embraced and individual talent is leveraged better, enabling faster

flow of new ideas. Horizontal frameworks and collaborative work models erase barriers between functional and geographic silos. Such frameworks facilitate freer sharing of ideas, information, and innovation across different functions, divisions, organizational “levels,” cultures and geographies, leading to faster strategy execution.

AGILE TALENT TO LOOSEN THE GΟRDIAN KNOT

The urgency with which we, as leaders, respond to ongoing shifts that lead to confusion and uncertainty may vary based on geography or industry. Regardless of these factors, faster time-to-value is on the mind of every business leader out there. All organizations in the Human Age also share one common dilemma: “How do I remain competitive and execute my business strategy in the face of talent shortage, value/ margin compression and economic uncertainty?” Accessing, mobilizing, optimizing and unleashing human potential to increase speed and agility is the answer and simplification is the key to loosen the Gordian Knot. As we have previously said, no leader in the Human Age can predict the future, but building agility into organizations will help them adapt to ongoing change—whatever the future may bring.

The Conference Board, CEO Challenge 2014

MARCH-APRIL 2014 | BUSINESS PARTNERS | 17

BIZ BUZZ

Greek Tech Startups Head to U.S. Fifteen high-end Greek technology startups are participating in this year’s world-famous South by Southwest Interactive Festival (SXSWi) in Austin, Texas. That’s the largest group of Greek tech startups ever to exhibit at a large-scale conference. Competing on a global scale by showcasing their technologies, the teams will explore strategic partnerships, network, and pitch for funding. Startup categories include energy, social media, web and mobile app development, wearable personal intelligence, eLearning, wireless communication and nano-technology among others. Running since 1987, the SXSW conference attracts some 300,000 visitors every year, while SXSW Interactive attracts over 30,000 tech enthusiasts, scouts, executives, business developers, and investors from all over the world.

Greek App Cures Vertical Video Syndrome

MASSIVE CRUISE SHIPS TO SAIL THE MEDITERRANEAN Royal Caribbean International has announced that for the first time since 2010, the massive cruise ship Allure of the Seas will once again return to Europe in the summer of 2015, offering a cruise in the Mediterranean, from Barcelona, for which booking has already started. The ship Rhapsody of the Seas will offer three routes to the Black Sea and Constantinople, with routes to the Greek islands and Turkish shore. Additionally, the ship Splendour of the Seas will offer 7-night tours in Greek and Turkish waters, starting from the port of Venice.

Annoying movement, shaking, and swiveling caught on video can be a thing of the past with a new Greek idea. The Horizon iOS application created by mobile development company Evil Window Dog allows you to shoot horizontal videos regardless of how you hold your device. Additionally, the app offers eight filters and allows you to alter video quality and resolutions with easy sharing to all social channels. Compatible with the iPhone 4s+, iPod touch 5+, and iPad 2+, Horizon is available for download from the App Store for $0.99.

TradeNow Startup Heads to Silicon Valley Yet another smart Greek startup is heading to California’s tech mecca in 2014. Recognizing a crisis-burdened world’s need for alterative ways of trading, TradeNow is automated barter platform where users can safely exchange products, services, and property in just four simple steps. “In a period of dramatic turmoil with continuous deterioration of the economic environment, rising unemployment and high borrowing costs, barter trading gives the opportunity to individuals and businesses to obtain goods and services without having to use cash,” the company claims. News of acceptance to Silicon Valley came in the less than 11 months TradeNow was in operation. In joining the 200 best startup companies in the world to present in California, TradeNow hopes to expand its presence by attracting investors and sponsors.

18 | BUSINESS PARTNERS | MARCH-APRIL 2014

BEST GREEK COMPANIES AWARDED Greek financial investment magazine Hrima named its top Greek companies for 2014. They are: Alpha Bank, OTE, Karelias, Jumbo, Folli Follie, Mytilineos, METKA, Karatzis, Kleemann, AS Company, Cyclon, Pireus Port Authority, Thessaloniki Port Authority, Athens Water Supply and Sewerage Company, Pireus Bank, National Bank of Greece, Attica Bank, Profil, Papoutsanis, Tria Alpha, Domiki Kritis, Vidavo, Intralot, Creta Farms, Lykos, Aegean Airlines, Hellas Online, Iaso, Mils, Forthnet, Profile, Motoroil, Fourlis, OPAP, Hellenic Petroleum, Public Power Corporation (DEI), Alpha Trust, Foodlink, and Euroxx Securities.

GREEK HOTELS TAKE THE GOLD Greece is one of the world’s best places to stay, according to Conde Nast Traveler, but that comes as no surprise. Blue Palace Resort and Spa Luxury Collection in Crete and Mykonos Grand Hotel and Resort this year made it to the magazine’s “World’s Best Beach Hotels” Gold List. Other amazing waterfront resorts included in the 20 choices are The Reefs in Bermuda, Four Seasons Resort Maui at Waiela in Hawaii, and Capella Ixtapa in Mexico. The Gold List, chosen and scored by over 80,000 reader submissions this year, also includes top picks for best city getaways, best safari adventures, and charming inns, among others. Aside from the Crete and Mykonos spots, making the 2014 showstopper hotels and resorts (in Greece) list are also Hotel Grande Bretagne in Athens and Mystique and Perivolas hotels in Santorini.

PROMOTING GREECE Marketing Greece, a private initiative, is boosting the Greek tourist product, in light of the new tourist season, with the discovergreece.com website. The website acquaints visitors with Greek holiday destinations and shows photos and information on more than 120 tourist spots and over 30 theme-based locales. The site hosts 60 videos, over 3,000 photographs and will have extensive information in five languages; currently it features Greek and English and will soon add French, German and Russian. Marketing Greece was by business leaders in Greece’s tourism industry and cooperates with the Ministry of Tourism and the Greek National Tourism Organisation to develop a national strategy and promote Greek tourism.

Korres Goes Latin Korres announced a strategic partnership agreement with Avon Products Inc. of the United States for the production and distribution of Korres Natural Products in Latin America. The partnership agreement begins in February 2014 and it is projected to last up to 14 years. Under the terms of the agreement, Avon has the option to buy all Korres product copyrights for Latin America. The Greek company said the agreement will ensure revenues up to 11.5 million U.S. dollars (around 8.5 million Euros) for the first 12 months of the partnership; Avon will pay rights for the use of Korres copyrights based on sales trends and extra charges for support services. Avon, a leader in the beauty market, has annual revenues of 11 billion U.S. dollars. Latin America is its largest market, accounting for almost 50% of its revenue. Korres has already set up a subsidiary, Korres USA Ltd, for North America and Canada. Operations began in January 2014 to distribute the company’s products directly in the U.S. and Canada markets.

Acropolis Makes Top 5 Museum Restaurants Virtualtourist.com has named its top 5 museum restaurant choices around the globe, including the Acropolis Museum Restaurant, which offers a stunning panoramic view of Athens city’s ancient marvel. The restaurant’s menu, comprised of traditional Greek favorites is accessible during open hours and stays open until midnight on Fridays. Also on the list are the Paris Musée d’Orsay Restaurant & Cafe Campana, New York’s The Modern at MoMA, Seattle’s Collections Café at Chihuly Garden and Glass, and Ray’s and Stark Bar at Los Angeles County Museum of Art. MARCH-APRIL 2014 | BUSINESS PARTNERS | 19

BUSINESS MATTERS

Energy and Resource Efficiency OR HOW BUSINESSES CAN DO MORE WITH LESS

his premise seems simple, and it has become a central part of the debate over future EU climate and energy legislation. However, like so many such premises, it is a little too simple. Quite apart from speculation over long-term American energy prices on the back of shale gas and oil extraction in the U.S., or the ability of EU countries to replicate this ‘cheap energy boom,’ the simple idea falls at the first economic hurdle: are we even looking at the right variable? While prices matter, they do not matter as much as costs. The European Commission’s communication on ‘A policy framework for climate and energy in the period from 2020 to 2030’ is clear on this point. EU-based industry has remained competitive because improvements in energy efficiency have balanced out higher energy prices. One might say that if EU industry were more efficient and had lower prices it would have an unassailable comparative advantage. This, however, ignores the reality that EU industry is more efficient because energy prices are higher—giving a greater incentive to reduce consumption through efficiency. Cheap fuel leads to complacency. U.S. car manufacturers produced gas guzzlers while prices were low, but were left horribly exposed as petrol became more expensive. They had a huge efficiency gap to make up on their cleaner European and Japanese competitors. Necessity is the mother of invention, and invention is the driver of prosperity in the modern world. The false claim that acting to reduce greenhouse gas emissions will harm economic competitiveness is never more wrong than when it is applied to industrial energy efficiency. Energy efficiency and resource

20 | BUSINESS PARTNERS | MARCH-APRIL 2014

efficiency are simply doing more with less—boosting productivity and margins. In other words, being more competitive. This is not NGO rhetoric—this is hard economic reality. Recent Commission reports on energy costs and prices show the EU has a positive goods trade balance against the U.S. despite energy price differentials. Globally, the EU has 36% of the global export market for energy-intensive goods. While this may decline over the next decade the U.S. is only expected to take up 1% of this opportunity, with the greater proportion going to emerging economies that are providing strong competition in many sectors (despite higher energy costs than in the U.S.). Business leaders rank energy cost and policies as only the 7th of 10 key drivers of manufacturing competitiveness, with talent driven innovation, tax systems and financial policy, and the cost of labor and materials topping the list. The same global business executives rank Germany above the U.S. in terms of manufacturing competitiveness, both today and projected forward for five years. 1.2

BY ARIANNA VITALI ROSCINI POLICY OFFICER FOR ENERGY CONSERVATION, AND ADAM WHITE RESEARCH COORDINATOR – CLIMATE AND ENERGY, BOTH AT THE WWF EUROPEAN POLICY OFFICE

Energy prices are giving U.S. based industry an important advantage over competitors located in Europe. As the EU debates 2030 objectives for climate and energy policy, there is an attractive notion of tackling climate change through a ‘pure’ carbon market, rather than complementing it with additional targets, including for efficiency. Unfortunately, this is pure fiction—one that would leave us cutting off our noses to spite our faces. Using effective measures to ensure efficiency gains will continue to help businesses in Europe to overcome market forces that are not always in their favor. That’s why companies like Phillips and Siemens are calling for a binding 2030 EU energy savings target. These companies realise that important opportunities remain and that the market alone will not deliver them. Regulation is needed, and it will be to the benefit of all.

% of GDP

0.8 0.4 0.0 -0.4 -0.8 -1.2

2000

2001

2002

2003

2004

2005

EU balance of goods with U.S.

2006

2007

2008

2009

2010

2011

U.S. balance of goods with EU

Source: Commission Services based on Eurostat and U.S. Bureau of Economic Analysis.

2012

EXPRESS

YOUR SELF

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Branch Office 47 Vasileos Irakleiou Street, 546 23 Thessaloniki Tel: 2310 286.453, 239.337 | Fax: 2310 225.162 E-mail: n.tsavdaroglou@amcham.gr

TRAVEL USA

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 Business Partners.

Discover America—Mississippi ★

ississippi is a land riddled with tales and mysteries, history and intrigue, with a past that still draws people in and a future that is always promising. Mississippi will offer you more than you can imagine. Blues, country, rock “n’ roll. It all started right here. And on any given night, it’s still going strong. From the coast to the Delta and the northern hills, singers and musicians make juke joints, clubs and concert halls rock. Fans come from around the world to sit down front and see the real thing - live and alive, as the locals say. Tupelo, in northeast Mississippi, is where Elvis Presley was born. Tour the small, humble two-room shotgun house that was his childhood home. It is quite a contrast from the sequined jumpsuits and luxury cars that Elvis enjoyed as a superstar. Vicksburg is world famous for its National Military Park commemorating the 47-day siege and battle by General Ulysses Grant that changed the course of the Civil War. You can also see the USS Cairo, sunk by the South and then raised after more than 100 years below the waves. There’s no doubt about it, eating and cooking “Southern” is one of the hottest things going in the culinary world. Connoisseurs everywhere love to come and eat their way around Mississippi. Favorites are fried catfish, hush puppies or a country dinner of crispy fried chicken, farm-fresh vegetables, and crusty cornbread. JACKSON, ©NAGEL PHOTOGRAPHY / SHUTTERSTOCK.COM

THE MAGNOLIA STATE LAND AREA 47,000 square miles POPULATION 2,910,540 STATE CAPITAL Jackson LARGEST CITY Jackson LOCAL TIME CST – 8 hrs. behind Greece CLIMATE Long hot humid summers with thunderstorms, and short mild winters. Moderate rainfall throughout the year NATIONAL PARKS Vicksburg National Military Park and four others under National Parks Service administration. There are 5 parks

 For more information: Mississippi Development Authority/ Tourism Division Tel: 00 1 601 359 3297 E-mail: tinquiry@mississippi.org Website: http://www.visitmississippi.org

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THE INTERVIEW

INVESTING FOR TOMORROW

IN THE HELLENIC AVIATION INDUSTRY PANOS T. XENOKOSTAS, PRESIDENT & CEO, ONEX GROUP, DISCUSSES THE RISE OF ONEX S.A. IN THE GREEK AND INTERNATIONAL AVIATION MARKET, ONEX IN THE UNITED STATES, AND HOW THE GREEK ECONOMY CAN BE TRANSFORMED.

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Please tell us briefly about ONEX. ONEX was founded in Greece in 2004 aiming to supply complex technological solutions in Aviation Support, Information and Telecommunications Technology and Enterprise support. “Born” during the economic slowdown after the Athens 2004 Olympic Games and “raised” through the hardships culminating in the current breakdown of the Greek economy, ONEX managed to develop a set of invaluable qualities, such as adjustability, flexibility and a realistic outlook on the global picture. ONEX’s primary success ingredient is constant re-investment of profits into activities of ever higher competitive advantage. Within only nine years, during a recession period, the company’s creditability with Greek banks has increased 375 times, amounting to over $15M, while its outstanding long-term loans are almost zero. During that same time, ONEX has also laid the foundations to attract the investment capital necessary for its expansion into the wider EMEA region over the next decade. In 2013 we consolidated our presence in NYC, the economic center of the world, and Brussels, the administrative center of the EU. In what sectors do you invest and what do you see as your next steps? ONEX is active in: • Nanotechnology: exporting nanotubes and intermediate materials; • ICT: offering integrated solutions, upgrades and support to domestic and global clients. • Aviation support: participating in international aircraft construction and support projects; producing nanomaterials used in aircraft coating. Partnering with 31 corporations and 11 universities globally, ONEX is involved in R&D projects worth $30M in 17 countries and appointed project manager/ coordinator in the two largest of those (combined budget: over $10M) by the EU. Thanks to its expertise in defense applications and its cost-cutting, productivity-enhancing solutions, ONEX has won several open international tenders for projects of the Greek State.

Over the next five years, our affiliate in the United States, Onex Technologies Inc, is implementing an investment plan of over $200M in aviation, new satellite technologies in aquaculture and nanotechnology. How do you view the future of the Hellenic aviation industry, especially in relation to your company’s strategic plans? Given that Greece is the country where the aviation idea was born when Daedalus built wings for himself and his son Icarus, the Greek aviation industry should have been among the top ones worldwide instead of fighting to survive. Nevertheless, I see this pathology as yet another symptom of the ailing Greek economy of yesterday. Today we are faced with an enormous opportunity for Greek aviation future and the Greek economy as a whole, as large funds are scheduled to be invested into enhancing Greek aviation infrastructure and integrating it into a global platform in aerostructures, aviation support, upgrade and innovation. What is the role of U.S.-based ONEX, especially in relation to Greece? Key advantages of the American company: 1. An expert Investment Committee that funds projects based on experience with technology companies 2. Collaboration with top sector-specific investment banks 3. Access to top institutional investors. 4. Exploitation of synergies with other American and multinational corporations in ΕΜΕΑ. 5. Close collaboration with the USA Greek Diaspora All this serves as a bridge between EMEA and the USA at a time when strategic political choices are positioning Greece within the array of viable international investment choices. Please discuss the challenging environment in Greece, the outlook for investment, and Greece in relation to EU and global economies. Greece could achieve the highest growth rate in Europe within the next 2-3 years. This presupposes immediate state action towards modernizing public administration and enhancing partnerships with the private sector. Accelera-

Greece’s future can only be paved with a change in culture, education and growth paradigm tion of structural changes, coupled with Greece’s geopolitical position, mineral resources, robust tourist industry, restored stability and competitive labor costs in the heart of the EU, can render Greece a business relocation venue. The European administration should restore cash flows in the south and allow tax and insurance incentives to be instated so to attract foreign investment. Given that much will continue to be at stake in this part of the world in terms of mineral resources, security and geopolitical objectives, further weakening of the region’s economies would only lead to more Crimea-type incidents and weakening of the European ideal as a whole.

Greece has a huge amount of potential that is beginning to be unleashed. Can Greece, like Israel, leverage itself into a “Silicon Valley”? Greece’s future can only be paved with a change in culture, education and growth paradigm. The choice is clear: the western model, whether of the U.S. or Sweden, has productivity, entrepreneurship and investment-friendliness at its core. The sooner we accept this, the sooner we will stop being our biggest enemy and start being our own savior. The Greek State should stop acting like a (failed) entrepreneur and assume its proper role as a true western-type state, enforcing legality, fostering opportunities and focusing on new technologies. Greece should build on best practices so to best position itself on the world economic map, while also enhancing its ties with the Greek Diaspora, the most vigorous part of Hellenism worldwide. You have achieved significant success at just 40 years old. Tell us about your approach to building companies and building value, at both a professional and personal level. Professionally, I consider this only the beginning; a long way is ahead. While harmony permeates every activity I undertake, I also always take the long-term approach: not attracted to quick profit, I choose to build values, structures and prospects through Vision and Principles. RΟΙ comes as a result of coherent strategic planning and implementation. Personally, I avoid the easy way out and sugarcoating and stop chasing a goal only when I’ve achieved it. I believe in the power of faith, family, friendship and in the predominance of vision over opportunism.

MARCH-APRIL 2014 | BUSINESS PARTNERS | 25

THOUGHT LEADERS

FROM

FAILURE FAIRNESS TO

TAXATION AS A MEASURE FOR GROWTH, EQUITY, AND ENTREPRENEURSHIP 26 | BUSINESS PARTNERS | MARCH-APRIL 2014

FOR DECADES, TAXATION POLICY IN GREECE HAS BEEN A DISMAL FAILURE. NOT ONLY HAS IT FAILED TO RAISE SUFFICIENT REVENUE, IT HAS FAILED TO CREATE SOCIAL EQUITY, PRODUCE A HEALTHY ENTREPRENEURIAL CLASS, AND ACT AS A UNIVERSAL GLUE THAT BINDS ALL GREEKS TOWARD A COMMON PURPOSE—A BETTER SOCIETY. BUSINESS PARTNERS PRESENTS SIX PROPOSALS TO REFORM THE TAXATION SYSTEM INTO ONE WITH VIRTUE, JUSTICE, AND SHARED BENEFITS. Raymond Matera

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THOUGHT LEADERS

Taxation and Business Opportunities to Restart the Economy

T STAVROS KOSTAS CHAIRMAN, TAXATION COMMITTEE, AMERICAN-HELLENIC CHAMBER OF COMMERCE

he dramatic impact on investment activity and consumption is an inevitable result of the deep and prolonged economic crisis. What’s more, tough yet at times unsuccessful budgetary measures have resulted in heightened adversity, uncertainty, and distrust within the Greek business sector. In confronting these adverse effects, and the dilemmas we face in the globalized economic environment, an urgent question relating to the catalytic role of taxation in business decision-making arises now more than ever. The question is thus: How can we optimize tax system reform and what tax policies should we adopt so that businesses are able to respond directly and successfully to the challenges and opportunities that the crisis has created?

Taxation should be a positive factor for the economy and foster sustainable business opportunities Today, we have reached a turning point to restart the Greek economy. At this crucial stage, taxation should fulfill its mission—to generate revenues for the State in a clear, fair, and predictable manner— and not pose a threat to entrepreneurship due to its fiscal intervention nature. On the contrary, taxation should be a positive factor for the economy and foster sustainable business opportunities.

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From this perspective, a simple, functional and, above all, consistent tax system is necessary, as the European Commissioner for Taxation, Algirdas Semeta, has stated. The tax system must be a coherent set of laws, institutions, processes, people, and behaviors. And we should assess its performance by universally accepted quality standards. Such standards include guaranteeing a sustainable tax revenue provision, consistent tax benefits for corporate compliance, and the protection of businesses and the public interest from unlawful and antisocial behaviors and practices, such as tax evasion, the underground economy, and tax fraud. To the extent that these guarantees are secured, and considering the financial breakthroughs we have already achieved despite dramatic socio-economic costs, we could then anticipate good days ahead for bold and innovative entrepreneurship. The circumstances and challenges of our times require that tax reform policies are strong, well thought out in terms of legislation, and do not lead to contradictions and inconsistencies in the final implementation stage. If we arrive at a permanent and self-regulating balance between business and taxation, Greece will be one step further away from the deep and prolonged recession and a major step closer to controlled financial rationality and development. We will have to break down bureaucratic walls, eliminate unnecessary public sector administrative spending, and successfully confront similar obstacles to create a sound, beneficial, and innovative business environment. Restarting the economy must be spearheaded by a positive growth strategy. We should support healthy entrepreneurship and take advantage of the opportunities created by the crisis, as growth and employment are, by definition, a one-way street for a successful exit from the crisis.

Tax Reform as a Way to Growth

he financial crisis that struck Greece and the deep recession that followed, during the past six years, have affected the financial sector and the real, every-day economy, and highlighted in the most painful way the urgent need for profound institutional and structural reforms. The constant interventions in the tax legislative framework of the country, and the efforts to reorganize the auditing and collecting procedures of the public administration, play a particularly important role in the struggle of Greek society and government to exit this suffocating reality. For such interventions to produce a long-term and sustainable outcome, we need to focus on the three main features that make a modern and efficient tax system, which are: 1. Effective financial impact (increasing government revenue) 2. Redistribution of income in society (easing for the weakest) 3. Public acceptance (a shared belief that there is tax justice)

targeted actions: 1. S implify the institutional framework. We should directly tackle abundant overregulation, overlapping and inconsistent tax provisions, and the tortuous interpretive and administrative processes. This way we will establish a sense of transparency, increase effectiveness, and decrease implementation costs. 2. Ensure the stability of the framework. In the modern globalized economy, conditions vary and interplay within a shorter timeframe than ever before. A tax system must therefore demonstrate consistency along basic guidelines while being able to adapt and align with current business practices. 3. Inspire confidence in the institutional framework. It is a fact that internationally the business community and citizens prefer a framework that fights bureaucracy and corruption to a framework built on milder yet tortuous fiscal patterns. In the last two years we have made important steps toward achieving these goals and have

HARIS ANASTASIADIS MANAGING PARTNER, ALPHATAX AUDITORS & CONSULTANTS LTD; INTERNAL AUDITOR, ENTERPRISE GREECE SA

We must . . . intensify our efforts to create a framework friendly to entrepreneurship, attractive to investors, and competitive within modern economic reality It is clear that in recent decades the tax system of the country focused solely on financial problems and only adapted, when the need arose, practices to achieve stability, transparency, and simplicity. Such elements, nevertheless, along with imposing swift and effective tax justice and resolving tax disputes, compose the development pillar of a fiscal institutional framework. Under the weight, however, of the adverse conditions that currently prevail in the Greek economy, it is absolutely necessary to redefine the relationship between financial and development policy, which will characterize the new tax system of the country. It is imperative to give priority to specific and

set the foundations for the reorientation of the tax and legal framework of the country, within a perspective of development. We must, however, intensify our efforts to create a framework friendly to entrepreneurship, attractive to investors, and competitive within modern economic reality. The government has recently proceeded with an initiative to establish a Single Coordinating Body for Global Market Orientation (Enterprise Greece S.A.), with an emphasis on attracting investment and promoting exports, transforming the two pre-existing entities. The existence of an attractive development-friendly fiscal framework should accompany and support this effort.

MARCH-APRIL 2014 | BUSINESS PARTNERS | 29

THOUGHT LEADERS

A Pitfall For a Company’s Director: Joint and Several Liability for Tax Debts

W KOSTAS G. KOUNADIS ATTORNEY-AT-LAW, TAX CONSULTANT, KYRIAKIDES GEORGOPOULOS LAW FIRM

ithin the constantly changing Greek tax environment, one of the major challenges the corporate taxpayers face, relates to the uncertain risks arising from the execution of a tax audit. Although in the last couple of years such uncertainty has been, to some extent, mitigated especially with respect to the enterprises, mandatorily audited by certified auditors (in view of the auditors’ annual tax certificate), it is still a considerable parameter to be taken into account by a corporate entity’s management. Currently, a corporate entity’s administration (and even the shareholders) ought to seriously take into account that the aforementioned inherent tax risks most probably shall have a personal impact on them as well, regardless their actual involvement into the company’s tax compliance issues. Actually, the respective legislation on the joint liability for tax debts (as recently amended) has become even harsher for a company’s directors and shareholders (not to mention the penal sanctions which could be activated as well as the “freezing” of personal bank accounts and the prohibition of real estate transfers). In particular, by virtue of article 50 of the new Code of Tax Procedures (law 4174/2013), the presidents, managers, managing directors, administrators and other persons appointed to the administration of a legal entity as well as liquidators of the latter bear the joint liability to remit taxes due at the time of such entity’s dissolution, merger or conversion, irrespective of the date such tax was originally assessed. Additionally, the same persons bear

The current regime should be revisited . . . to alleviate the unfair repercussions against former directors and shareholders 30 | BUSINESS PARTNERS | MARCH-APRIL 2014

several and joint liability to pay any withholding tax (e.g. payroll tax) or consumption tax (such as VAT) owed by the legal entity during its operation. More or less, the same used to apply under the previous legislation. However, the new Code has introduced some critical changes to the previous regime, which by all means raise concerns. In this respect, it appears that the new legislation does not restrict the joint liability for a company’s tax debts solely to executive directors since non executive ones such as a BoD’s President may also be held liable for these claims. Furthermore, contrary to the well established doctrine of the segregation of a corporate entity’s property, the new legislation, in essence, results in the piercing of the corporate veil by means of expanding the joint and several tax liability to a capitalized entity’s shareholder/ partner in case of a dissolution (under special conditions and subject to specific limitations). The joint and several liability of administrators/ directors, especially of the non executive ones, has been heavily contested by the Greek legal theory. In fact, it is contradictory to the prevailing case law of the European Court of Justice, which has ruled that this kind of “objective” liability must comply with the accepted, in the EU law, doctrine of “proportionality”. In a nutshell, the relevant legislation may result in a considerable exposure for investors who wish to invest in a corporation or to the directors of such entity since both of them may be held liable at a later stage for the payment of material amounts of taxes. To this end, the current regime should be revisited, in an effort to achieve the alleviation of the unfair repercussions against former directors and shareholders caused by the respective provisions especially in cases whereby the directors do not actually participate in the day-to-day administration of the corporation.

MNEs and Recent Income Tax Reform in Greece

ultinational enterprises (MNEs) have experienced during the last 5 years several changes in their corporate tax obligations in Greece. The new tax laws enacted marked a positive step towards simplification and harmonization with international taxation practices. This is so, even if the wording of many of their provisions had to be subsequently revised or extended for purposes of clarity or completeness. But also some improvements have been made, such as enablement of the tax deductibility of R & D expenses at 130%. Furthermore, the thin capitalization rule has become less restrictive: only the part of the interest expenses minus interest income exceeding 30% of EBITDA is disallowed for tax deduction, provided it totals more than € 3 million. The expense so disallowed can be carried forward indefinitely, in order to be deducted in any subsequent year in which the above limits are not exceeded. So far the good news. On the opposite side the new Income Tax Code raises multiple questions to an enterprise with cross – border operations and transactions. I will try to formulate some of them as follows: • To what extent does the domicile of the members of the board, the management or even the shareholders of a company incorporated abroad affect the determination of its tax residence outside or inside Greece? • W hy payments made to an individual for technical services, management fees, consulting services etc. should attract 20% withholding tax regardless of whether the respective services have been rendered in Greece or not? Obviously the question refers to payments made to persons who are not protected by a tax treaty. This provision seems to contradict another provision of the Income Tax Code, which stipulates that a taxpayer who is not tax resident is subject to Greek income taxation in respect of his income derived from domestic sources and that income from services is considered to be domestic when it is generated through a local permanent establishment.

• Similar question arises for service income received by a foreign entity from a Greek entity. Also whether profit allocations between a permanent establishment and its head office should also attract withholding tax even if the activity for which the income payment is made has been performed outside Greece. • Should Controlled Foreign Corporation (CFC) taxation rules nevertheless apply, regardless of the expense disallowance, stipulated, on certain conditions, in the new tax deductibility rules? This in effect would cause double taxation. • How will it be assessed whether a company established in an EU or EEA country constitutes an artificial structure triggering application of CFC rules? • It is not very clear to me whether and on what conditions a business restructuring, which does not entail the transfer of intangible assets, but only functions restructuring should be compensated or whether it is meant that the post - restructuring intercompany transactions should be remunerated at arm’s length. I would welcome here a clarification that the respective OECD guidelines will apply. • Indirect change of ownership and loss forfeiture: How far should the examination of the domestic entity reach as to whether a distant indirect shareholder in the shareholding chain has changed and for what reason and whether losses suffered in the same year, but after the shareholding change should be also affected? • Why should the roll – over relief for shares exchanged by foreign shareholders in a corporate restructuring be made conditional on having and preserving a permanent establishment in Greece? • Finally, I can’t really say that the recent rewording of the General Anti – Avoidance rule included in the new Tax Procedures Law, has provided more clarity. That’s it for a new start. There are also some misalignments in tax deductibility restrictions and unclarity about withholding tax refunds and the nature of transactions subject to withholding tax.

ALEXANDROS KARAKITIS TAX PARTNER EY

The new Income Tax Code raises multiple questions to an enterprise with cross – border operations and transactions

MARCH-APRIL 2014 | BUSINESS PARTNERS | 31

THOUGHT LEADERS

New Fines, Old Minds?

T IOANNIS STAVROPOULOS LL.M., PARTNER, STAVROPOULOS & PARTNERS LAW FIRM, MEMBER OF THE TAXATION COMMITTEE, AMCHAM

he new Tax Procedure Code (TPC, L.4174/2013) had, among others, a very ambitious task to accomplish. This was to rationalize fines and penalties as this was a long-standing demand of the business community. The structure of the TPC shows a clear intention: To treat the tax evasion violations in a severe way and the administrative ones in a mild way. But as the famous proverb says, “the road to hell is paved with good intentions.” The implementation of this simple principle, which seeks to punish a behavior rather than a simple act, proved to be more difficult than initially anticipated. This is because the philosophy of our administrative law system, where tax law belongs, puts form over substance. Therefore, we are accustomed to not seeing the forest for the trees. Ideally, the substance of a tax evasion violation must be described in simple language focusing on the motives and the behavior of the taxpayer. But a description of this kind would give very wide

But as the famous proverb says, “the road to hell is paved with good intentions” discretion to the tax audit to identify a violation and a very hard and time-demanding job to the judge to examine on the merits of each particular case and rule on it in a reasoned way mostly based on facts and evidence. We can see what happened in jurisprudence of the administrative courts with the term “good faith” in respect to fictitious invoices.

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It is true that subjective matters are suitable for criminal courts. But if a tax related case is mainly based on oral submissions and is in the same pipeline with all other criminal offences, there is an inherent risk that it might not be analyzed as thoroughly as it deserves. Maybe the balance between all these interests leads to the setting up of special tax courts dealing with both criminal and administrative sides of a tax evasion violation. As said, the TPC attempts to draw a line between soft and hard violations. Soft ones, the so-called administrative or formal, should ideally result in a nominal, or, less nominal, fine, but they are taken as not being intended by the taxpayer and as not distorting dramatically the tax base. Repetition of the same administrative violation is punished in a heavier way. The hard ones though, had first to be defined. There, it is obvious that the old rule was followed, since the corresponding parts of the old legislation were copied and pasted to the new one. Fines were indeed reduced (from 300 % and 200 % to 50 %, from 100% to 40% and 25 %), but the substantive part remained the same. This was probably selected as a safe harbor approach for two reasons: The first is the retroactive effect. Whatever is legislated for the future has an effect on open cases based on the most favored sanction principle. How and on what criteria this assessment would take place? The second reason is that the old regime was in a degree of harmony with the corresponding criminal law provisions. How someone changes the administrative side of a tax violation without, at the same time, addressing the criminal law side? Let’s face it. Nothing changes by a legislative text only, especially, when a whole system has to be reviewed. TPC has marked a starting point. It is now time, first to agree on permanent fines and penalties (which cannot change every six months) and secondly to continue to other fields of law, such as criminal law, in order to complete the package.

Reform is Done Properly When There is a Single Strategy

reece, over the last 3-4 years, has experienced a major crisis. Some may call it “financial,” others “social,” and some perhaps even “a crisis of values.” Like any crisis, it requires a redefinition of how to address issues. An example of such a redefinition is tax reform. Let us look at aspects that define a tax strategy: 1. Our country is dependent on taxes. Every citizen must contribute to the needs of the state. 2. Tax reform must be sustainable and enforce revenue collection. 3. W e need to define “how much?” “when? “how?” and “who?”—with transparency to each tax contributor. 4. The longer the focus is on “who’s to blame” the more the state becomes dependent on revenues (taxes) and lags behind in services provided to its citizens/taxpayers, in reliability to creditors, and in integrity in relation to its promises. 5. Due to the lack of information that defines the problem, and a lack of a clear tax strategy for the development and viability of the taxpaying capacity of Greek businesses and households, it becomes extremely difficult for Greece to honor its promises. This text cannot cover nor solve the tax strategy problems which the government faces. However, we are trying to emphasize the problems Greek companies face which hinder their development and form pitfalls to reduce their operating costs and increase their competitiveness. Accounting departments are unable to practice their main role, to “support business decisions,” due to the lack of legislative interpretation. Specific examples below highlight the magnitude of the uncertainty, and essentially the nonsmooth operation of the overall system—the lack of strategic planning that prevents new investment and prohibits consistency: 1. Delay on property transfers and a real estate market freeze 2. Complexity and bureaucracy involved in issuing a simple tax transcript, even for a legitimate company 3. Vagueness of legislation regarding tax reform and legislation (the necessity to prove (!) that there are no tax avoidance issues related to

the M&A, despite the cost savings realized from the M&A activity) 4. O n 31/12/2012 a law was passed obliging companies to upgrade POSs, to be directly linked to the tax authorities and keep track of all records. Following the CapEx spent by companies during December of the same year the decision was withdrawn. 5. Something similar occurred with the measure of a personal tax card, where our company first gave the possibility to all its customers to use. 6. We believe no one has counted the operating costs entailed in some changes resulting from increased staff hours involved in extra monthly submissions of customer/vendor transactions. 7. The withholding tax for freelance professionals and other categories was not clarified from the beginning and still there are concerns about its application. 8. Real Estate Tax Plan. How to calculate the tax on land and how to identify all property owners while compiling the asset list (“periousiologio”) is still in progress?

SOFOKLIS YIANNACOU CFO AND VICE PRESIDENT FINANCE, AB VASSILOPOULOS

This article contains personal opinions of the author and do not reflect the official position of AB Vassilopoulos S.A. or its subsidiaries and related companies.

Accounting departments are unable to practice their main role, to “support business decisions,” due to the lack of legislative interpretation. Due to the distortion of the tax environment many accounting departments of companies and tax office executives encounter significant difficulties in understanding legislation and finding solutions. Worse, sometimes they are trying to interpret the legislation themselves. There is no need to reinvent the wheel. We have to design a holistic tax system, communicate it to stakeholders and implement it consistently over the long-term—by neglecting short-term political considerations.

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TRANSATLANTIC TRADE ROUTES

AT&T’S RANDALL STEPHENSON ON

DRIVING GROWTH RANDALL STEPHENSON, CEO OF ATT, RECENTLY SPOKE WITH BUSINESS PARTNERS EDITOR RAYMOND MATERA. MR. STEPHENSON PARTICIPATED IN OFFICIAL EU DISCUSSIONS HELD IN ATHENS FEBRUARY 27-28 ON TTIP, THE TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP. How do you view the investment potential of Greece? Much better than a year ago. Until a few months ago, when Prime Minister Samaras was in New York and a small group of us had lunch with him, I had some fairly negative attitudes toward investment in Greece. Hearing him speak caused me to bear down and begin to look at Greece. The numbers suggest the economy has stabilized and is trending in the right direction, and stability is the key you’re looking for. As the CEO of AT&T, a company that devotes a huge amount of resources to R&D, tell us how important R&D is, both for the private sector and for the economics of a country. R&D is the core of innovation, and innovation is critical for any country that wants to

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be competitive and grow in the long term. At the Business Roundtable, of which I have the honor to be Chairman, we have focused on areas that are critical to driving U.S. economic growth. And the four priority areas we have taken on are all about driving investment and innovation. That’s because without basic infrastructure investment and R&D investment, the economy will never grow as fast as it should. Would AT&T consider either investing in Greece or conducting any research here? What attracts us to areas for research are skills, talent and proximity to technology hubs. I went to Israel five years ago and I came away very, very excited by the knowledge, the number of skilled people, and how much R&D was being done there. To the extent there were tech hubs in Greece,

or anywhere in Europe, we might consider doing something. Can you speak a little bit about future trends of technology in telecommunications? We’re coming off of six years of innovation like we’ve never seen before, and it has all been driven by the mobile Internet. We’ve all invested aggressively to get more speed into our wireless networks with 3G technology, and the other thing that’s been quietly going on, particularly in the U.S., is that we are deploying fiber optics. With that baseline in place, we’re now deploying LTE, or 4th-generation wireless networks. All of this is happening as cloud capabilities are maturing. And this combination is giving birth to the next wave of innovation and technology. The cloud and 4th-generation networks are now driving growth in all

sorts of areas. The smartphone is becoming the remote control for everything we do. And we are in the middle of a revolution where everything from machines, the automobile and the home are the being connected to cloud technology via the mobile Internet. General Electric is a great example. Virtually everything they are manufacturing today is wirelessly connected to this Internet of things. This includes video. Over 50 percent of the traffic on our networks is driven by video. And looking ahead, virtually everything is going to be driven by video – connecting things, connecting homes, connecting cars. That’s the next wave. And then there will be innovation on top of each of these areas, just as there’s innovation on top of the smartphone today. And of course the challenge is capacity. Yes, and in the mobile industry, capacity is generally spectrum, the airwaves that all of these capabilities ride on. I believe that what has kept Europe from really gaining traction in this new wave has been spectrum policy. Each respective government in the EU has very different spectrum policies, and that is anathema to deploying these types of networks ubiquitously for speed and performance. In the U.S. we were able to harmonize spectrum. It’s important that the EU figure out a way to do that as well. Regarding TTIP, what do you see as the benefits of the agreement in terms of growth, and what are some impediments preventing agreement from moving more rapidly? At the BRT, one our four top priorities is trade. We feel strongly that few things can drive economic growth and vitality as much as free and open trade. One in five U.S. jobs is in industries supported by trade. The wages of those jobs tend to be 20 percent higher than other wages. TTIP supports expanded trade and this is a key growth driver. I believe the main impediment is the President not getting trade promotion authority from Congress. BRT is pushing this with key leaders in the Senate and the House, and hopefully we can get something done.

And how important is it to link universities with economic growth? Were initiating a project in Austin, Texas, where we’re deploying fiber extensively throughout the city to get really high speed capacity to businesses and homes. At the same time, we are fundamentally changing how we engineer our network in a world of cloud technology. Think about the concept of virtualization in the data center, moving functionality to the cloud. We’re moving that concept into our network, and this is really significant. There’s going to be a lot of new development and research required to make this happen. So, as we move forward with our fiber deployment in Austin, we’re entering in a new relationship with the University of Texas, to leverage its research capabilities and help drive this innovation. Utilizing that intellectual horsepower is going to be critical. It’s pure R&D. What role do trade and business associations, such as BRT and the Chamber, for instance, play in promoting innovation, policies for economic growth, new jobs, research? These organizations are vital. It’s very effective when strong voices band together and speak as one. That’s how the Business Roundtable can be effective in Washington impacting public policy. The Business Roundtable has one single purpose: to drive public policy, debate and action that will support economic growth. That’s good for business and good for the economy.

Can the public sector gain from the managerial expertise, goal driven behaviors and strategic outlook of the private sector? Without a doubt, if the public sector began leveraging technology as we do in the private sector, the gains would be powerful and valuable. If we consider how companies take advantage of technology to interact with customers and supply chains, and how much cost it takes out of processes, how much it improves the customer experience, and how much it drives efficiency, we can imagine how the public sector could do similar things to improve the citizen’s ability to interact with government, drive efficiencies and improve services. It could be very powerful.

TTIP The Transatlantic Trade and Investment Partnership (TTIP), a trade agreement being negotiated between the European Union and the United States, aims at removing trade barriers in a wide range of economic sectors to make it easier to buy and sell goods and services between the EU and the U.S.

Business Roundtable BRT is an association of chief executive officers of leading U.S. companies working to promote sound public policy and a thriving U.S. economy.

AT&T AT&T is one of world's largest communications companies and offers voice coverage in more than 220 countries and data roaming in more than 200 countries. 2013 revenues were $128.75 billion.

MARCH-APRIL 2014 | BUSINESS PARTNERS | 35

ONE WORLD

STRATEGIC PHILANTHROPY

BY EPAMINONDAS FARMAKIS

AS A TOOL FOR DEVELOPMENT

“IT’S MORE DIFFICULT TO GIVE AWAY MONEY INTELLIGENTLY THAN IT IS TO EARN IT IN THE FIRST PLACE.”—ANDREW CARNEGIE WHAT IS STRATEGIC PHILANTHROPY?

The Philosophical Dictionary of the Platonic Academy defines philanthrôpía as “A state of well-educated habits stemming from love of humanity; a state of being productive of benefit to humans; a state of grace; mindfulness together with good works.” Philanthropía—loving humanity— was thought to be the essence of civilization by the ancients. Today, a love for humanity is still central to philanthropy. Although the role of philanthropy has evolved over the course of history, at its roots philanthropy is about improving society and the quality of life. Today, there is a true business case to be made for philanthropy, and more specifically, for strategic philanthropy. One way in which strategic philanthropy differs from traditional is that it is focused on measuring results and assessing impact. Donors and corporations today turn to strategic philanthropy because of the metrics and evaluation systems it offers, so that these

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questions and concerns can be alleviated. Giving your money away is easy, giving it away effectively is indeed quite difficult. Strategic Philanthropy is all about doing good wisely and donating money effectively. However, it has no single definition. Paul Brest, the former head of the Hewlett Packard Foundation, defines strategic philanthropy as “the setting of clear goals, developing sound, evidence-based strategies for achieving them, measuring progress along the way to achieving them, and determining whether you were actually successful in reaching the goals”. In our work, at elpis, we advise our clients to formulate a strategy for philanthropic portfolios designed around in-depth and focused research, creative planning, proven strategies, careful examination and thorough follow-up in order to achieve the intended results. To give strategically, individuals, companies and foundations align charitable activities, such as donations and volunteerism, with a social issue or cause that supports their ob-

jectives. In an ideal situation, the company and nonprofit they would both benefit from such collaboration. Today’s donors seek to spend their money wisely, by increasingly becoming better educated and by applying business rules on their philanthropic endeavors. What are the specific causes and activities they support and what is the impact of their donation on people’s lives are among the questions they persistently ask before making a grant. They look for results and assurances that nonprofits are not wasting their money. Most plan for a return on investment that goes well beyond financial gain—what they seek to achieve is social change. They want to have the highest rate of social return on their investment. They want to see their donations make an impact on people’s lives. However, regions of the world that could benefit most from philanthropy—like Greece—tend to be those without the structures in place to ensure transparency and accountability, a fact that deters do-

nors from focusing their resources there. Because of this continued lack of transparency, widespread mismanagement and corruption, a relative majority of Greeks considers NGOs unnecessary for society, and does not trust them to act in the right way to influence political decision-making, or solve any of our current challenges.

THE CURRENT ECONOMIC LANDSCAPE IN GREECE

Greece is entering its sixth year of deep recession. Social welfare continues to decline (largest cut on real social costs among OECD countries -14%), and poverty (percentage of extreme poverty reached 14% in 2013), homelessness (around 15,00020,000 homeless people- 2/3 for less than three years), and addiction, crime and hunger are growing. Even malaria and AIDS are becoming areas of concern again in Greece. Injected drug use has increased 1,500% since 2010. In macroeconomic terms, the GDP contracted almost 6.4% in 2012, continuing a cumulative output decline of 21.8% since 2008. That obviously means less tax revenue, as well as less money that donors are willing to part with. Although the numbers for 2014 are more promising, we are still experiencing the full social effects of the past few years of collapse. Unemployment is at 27% (the highest in the EU), and is over 60% among youth. Without jobs, it is obviously less likely that people will give to charity. At this point in time, 30% of Greeks receive medical care from NGOs. Before the crisis, this number was 3-4%. It is clear that strategically giving to these nonprofits makes a huge difference in public health. Alongside social and economic decline, racism and xenophobia have been spreading at an alarming rate. Immi-

grants are used as scapegoats and blamed for poverty and unemployment. This also reinforces the importance of strategic donations towards protection of human rights and multicultural understanding.

THE RISE OF THE SOCIAL ENTREPRENEUR

Relief to this troublesome and difficult situation could come from the advancement of social innovation and entrepreneurship through philanthropy. Until recently, entrepreneurship and philanthropy were two entirely distinct and incompatible domains. However, social entrepreneurship can of-

Giving your money away is easy, giving it away effectively is indeed quite difficult fer employment options and help integrate the social and economic life of people from vulnerable groups such as people with disabilities or, for instance, people in the process of recovery from drug addiction. It can also help stimulate growth and social cohesion at local level, leveraging the characteristics of each region, with initiatives in the areas of culture, environment, conservation of traditional activities and the like. The concept of entrepreneurship is changing and businesses are invited to demon-

elpis elpis (www.elpis.org.gr) is a consulting company focused on helping philanthropists, donors, and foundations develop and implement sustainable, efficient programs that build capacity, and bring together like-minded entities to solve social and economic problems. Primarily focused on issues in Greece, Southern Europe, the Balkans and the Middle East, elpis works with leading organizations around the world.

strate their social value. Non-profit organizations are looking for new ways to secure funding and participation, given the lack of state funding. Social entrepreneurship responds to these new parameters and aims to solve social challenges with business tools. This model combines sustainability, independence, strategic planning and organization from the business sector and social objectives, ethics, and the distribution of benefits (not just financial) from the philanthropy sector. Bridging the two lies the passion and persistence to solve social problems and innovate for the future. Luckily, there is a shift in today’s philanthropy towards supporting social innovation and entrepreneurship. Philanthropists and foundations, however, need to pay close attention to young social innovators, listen to their ideas and support their projects. It is also necessary to help build an ecosystem where these people may have access to essential support, mentoring and funding opportunities. The difficult part is to select and support the right people, who are committed to achieve social change and provide solutions to real problems. For that reason, foundations and donors should keep an eye on grass-roots organizations and local communities, because that’s where social innovators come from.

ELEMENTS FOR SUCCESS

To sum up, the philanthropic community is at a crossroads: At a time when financial crisis and increased poverty have intensified the need for global giving, trust in the non-profit sector is at an all-time low. We need to regain people’s trust, increase transparency and accountability, embrace digital media as tools to disseminate information and coordinate online donations, and support social innovators that could be tomorrow’s leaders in the social field. All these are fundamental elements to promote wellness, democracy and equal opportunities for our society.

Epaminondas Farmakis is President and CEO of elpis and serves currently as the Programme Director for the EEA Grants for NGOs Programme in Greece.

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PRO BONO

E-COMMERCE AND THE LAW—

BY MINA ZOULOVITS PARTNER, PHILOTHEIDIS & PARTNERS LAW OFFICES, (E-COMMERCE LAW FIRM OF THE YEAR 2014 IN GREECE AT CORPORATE INTERNATIONAL GLOBAL AWARDS)

BE PREPARED, NOT SORRY HOW TO EXPLOIT LEGAL TOOLS FOR A WELL-STRUCTURED ONLINE OR MOBILE PRESENCE OF YOUR BUSINESS ENHANCE YOUR ONLINE COMPANY’S VALUE AND CREDIBILITY BY BUILDING ON A SOLID LEGAL FOUNDATION.

E-commerce is “a game” for the well prepared and determined. A clear and solid legal operating framework enhances a company’s trustworthiness and credibility towards its two most important stakeholders: clients and potential investors.

LEGAL TOOLS TO STRENGTHEN YOUR COMPANY’S ONLINE PRESENCE OR EXPANSION— BE PROACTIVE.

A. The Power of Successful Branding As soon as a business idea goes online, it can be immediately “copied” (for instance

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the business idea of “deal services” websites). You should make all efforts to legally safeguard all the intangible assets that are key to the reputation, identity or marketing efforts of your company. These protective legal actions will also increase the value of your business and its soft assets for a potential investor. 1. Register the domain name(s) in all target markets. Prior to finding a “name” that is suitable for the online presence of your company make sure the domain name is available, not only in your initially targeted market(s), but in other, potential future markets. In addition, it is recommended that you register all the domain names that could logically associate with your company’s prime domain name (i.e.

mybagg.com, my-bagg.com, mybag.com, my_bag.com). Often, when a domain name becomes famous, a competitor registers a similar name (as in the previous example). Acting proactively could save your company from costly and lengthy litigation or negotiations to forbid or to acquire the usage of that domain name. 2. Create your trademark registration strategy. While in the process of choosing the “name” and creating the associated logo of the product/service to go online, you should look up whether that name is already a registered trademark in the targeted country(ies). Before investing time and money to start or expand your business in a specific market, take some time to find out whether any

constraints exist that could possibly ban your company’s product or services there. Trademarks are distinguished in 45 classes. This means that you should choose in which class(es) you would file a trademark registration based on your product/ service. Moreover, your company must decide whether it would opt for a Greek/ local, European, or international trademark, following its business plan regarding the markets targeted and the money you are willing to spend for registration. 3. Deal with IPR issues at an early stage: IPR issues (like copyright) are associated with multiple, intangible assets of an online or mobile company. For instance IPRs are related to the construction and maintenance/support of your company’s website. They are also related to the content used in your website (product photos, articles, music, videos). So, to safeguard your company’s IPRs it is imperative that the parties involved execute detailed and precise licensing contracts that clarify who owns those rights and under what terms these rights can be used. If your company’s “product” is intangible (i.e. online services or mobile applications), IPRs are related to the commercialization of the product itself. Hence, first and foremost you must ensure you own your “product.” You should either purchase it from those who created it or acquire the proper license to use or distribute it. Otherwise you could face complex legal issues in relation to the ownership of the “product” when it becomes popular and, hopefully, profitable. B. Define Your Addressable Market(s) and the Exact Nature of Your Product/Services by Using Legal Tools. While structuring the business model of your online or mobile presence or further expansion, it is important that your company undertakes legally informed decisions with the aid of experienced consultants a) to prepare a more accurate business plan and b) to find possible alternatives that would allow you to eliminate, as much as possible, legal risks. For example, basic legal steps include:

1. Receive the necessary administrative licenses (if any). There are many categories of business ventures that require a specific administrative license to operate. Most often, those same rules apply irrespective of whether the business is offline or online. For example, in Greece there are multiple strict prerequisites to operate as an offline or an online seller of food products. Greece is not alone in this respect. Diverse rules and licensing schemes apply in many countries for the sale of food products. So, prior to entering a new market you must examine what regulations are applicable and determine the cost to abide by them (for instance, in some business categories it is adequate to receive a license only in one EU country and all other EU countries must acknowledge that license; in other business categories one must acquire a license in each single country). 2. D raft precise and well-structured Terms of Use. A website’s Terms of Use is in fact the contract between the company and its customers. This is why this contract should be tailor-made for every specific website. In reality, every third party (including future investors, supervising authorities, consumer ombudsmen and even fiscal/ tax authorities) expects to learn within the Terms of Use precise information, such as a Company’s identity, how it operates (payment processes, information provided to consumers, IPR, shipment of products, downloading of services), what exactly is the legal nature of its products/services, whether the company follows any special legal rules that govern its products or services and the like. Hence, defining the precise legal nature and structure of your company’s business online with the assistance of experts could protect you from unknown legal risks in the future and help you avoid severe legal or tax implications. In addition, the Terms of Use, when they are clearly drafted, boost customer satisfaction and trust. It is also proven that they assist the company’s customer relations department to prevent, or respond quickly to, complaints by simply directing the customer to the precise clause therein

that lays down a specific business process. That is why these terms should be regularly updated with any changes made to the business operation or processes. 3. Follow applicable data protection rules. Data are among the most valuable assets of any online or mobile company. However one must bear in mind that those data that are associated with a natural person or create a profile related to his/ her preferences, habits or interests are considered as personal. Within the EU, the personal data protection regime is very strict and imposes severe obligations to the controller of these data. Lawfully obtaining and using personal data consists of a first-class foundation to establish a relationship based on trust with your clientele and to trigger the interest of potential investors as well as to avoid fines. To achieve that, your company must design its systems and use only those marketing tools that abide by an existing, approved privacy policy that you are obliged to adopt before soliciting customer data. In my experience, some entrepreneurs tend to underestimate legal risks and, as a result, pay little attention to the legal rules when they launch or expand/restructure their ventures. The consequences and latent costs can sometimes be expensive. In a nutshell, my advice is to consult the industry’s experts to save money by identifying and spending wisely in those basic but absolutely necessary legal protections and strategies that are applicable to your online or mobile business at all times. This could also help you achieve better performance and faster ROI—with the minimum possible legal risk.

Mina is a lawyer, expert in the field of commercial & corporate law as well as in IT and E & M-Commerce Law. She consults well established Greek and multinational online companies, with a local and global presence, as well as ambitious startups and VCs interested to invest in innovative business. She participates in major e-government projects, she educates entrepreneurs (long term co-operation with AIT & Eltrun) and she provides pro bono mentoring guidance in several startup incubators and associations programs.

MARCH-APRIL 2014 | BUSINESS PARTNERS | 39

MARKETPLACE

PPP IN GREECE

BY IOANNIS D. KITSOS LLD, LLM, ATTORNEY AT LAW

INVESTMENT OPPORTUNITIES IN PUBLIC INFRASTRUCTURE DEVELOPMENT IN GREECE, PRIVATE CONTRACTORS HAVE ALWAYS PARTICIPATED IN PUBLIC INFRASTRUCTURE DEVELOPMENT WITH EXTREMELY SUCCESSFUL RESULTS.

iven today’s budgetary restrictions, the internal contracting authorities, aiming to harness private capital and the technological advantage (know-how) of private sector expertise, are implementing PPP models as a fundamental pillar for economical development. 2014 is a landmark year for Greece, with expectations that we will return to international markets coinciding with our EU Presidency, and offering opportunities to serious investors to cooperate with public bodies for the development of our infrastructure. Judging from this unique economic-political conjuncture, private investments (international, European and domestic) are the most important reform for Greece to achieve sustainable economic development.

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Following the dominant perception about PPPs in the international market, these alternative cooperative models were introduced in Greece as a partial application of ambitious privatization programs, which all the Greek governments —regardless of their political ideology— have constantly applied, to reduce the enormous public debt through a “lean State.” In Greece, a specific PPP Law was passed in 2005 (Law 3389/2005) after the 2004 Athens Olympics, to promote private financing of public works and public services. So, a few years before the Greek financial crisis, we already had a legal framework to facilitate such investments. From a legal point of view, PPPs are public contracts which our system treats as administrative contracts. It is generally

accepted that the main reason Greece has used PPPs is its budgetary stringencies. The main public sector philosophy about PPPs is the procurement of new stateof-the-art works and qualitative services for the citizens, that will be financed, designed, constructed, maintained and operated by private contractors (consortiums which will set up the Special Purpose Societe Anonyme/SPSA) for all the longterm period of 25-30 years, and exempting the contracting authorities from the legal and political responsibility of their provision. Based on the standard project finance principles, the ventures which will be implemented through PPPs are divided in two main categories depending on their business nature: those the cost of which is repaid directly by the public sector (avail-

ability-based payments) and those repaid via revenues from the end-users of the project (usage-based payments). Law 3389/2005 successfully establishes two new administrative bodies that will support the public bodies/contracting authorities for the improvement of the PPP administrative procedure (which will be concluded with the award of contracts): Special Secretariat for PPPs (PPP Unit established within the Ministry of Finance) which searches out and identifies ventures that can be procured as PPPs, and the Inter-Ministerial Committee for PPPs (IM PPP Committee) that has the final word in approving those projects that will be concluded under Law 3385/2005 for the provision of infrastructure and the delivery of services by private funds, and coordinates and monitors the implementation of PPP policy. After 2005, in particular, the main projects that were promoted and implemented through the 3389/2005 PPP Law were (in chronological order): agency housing for the Hellenic Fire Service and Police, administration and school buildings for public university, the construction of prisons, school buildings, police divisions and other regional police services, courts of justice, a paediatric hospital, infrastructure facilities for integrated waste management systems/installments, digital recording, archiving and provision of court minutes, and rural broadband development and services. The vast majority of these projects were medium-capex accommodation projects for public services and, the truth is, they didn’t provoke business interests by international groups of companies (who seek high-value public contracts), and as a result they were all awarded to Greek private contractors. The recent tendency in the Greek PPP market is the implementation of the self-financing technique for the procurement by municipalities of waste management infrastructure, which will be operated and maintained by the private sector. Among PPPs the biggest contracts were always the concessions. This administrative system has in the Greek market a history of its own. The most high-value conces-

sion contracts, at around 9 billion Euros, are the five autoroutes that were awarded to construction consortiums, which consisted of the strongest European and Greek entrepreneurs. None of all the five concession contracts was implemented through the PPP Law of 2005, and the contracting parties integrated their own contract clauses, absolved from any obligatory contract framework. Due to the financial crisis, the construction work in four of the five were ceased and not until very recently, a necessary compromise was achieved between the Greek State, the construction consortiums and the commercial financing banks for their restart, which was also ratified by Law 4219/2013 —as, traditionally, in the Greek legal system all major private investments are. It was absolutely clear to the Greek government that if a compromise wasn’t achieved, our country would have major

ue is constantly rising. Apart from waste management facilities, housing-accommodation projects, and autoroutes, there is much space for the expansion of PPPs in the energy-environmental field (electricity, gas, wind generators, solar energy) and of course transportation projects (ports, airports, bridges, railways, subways). We have stressed the importance of constant government support to international and European investors, who will depend on our major economic program, and the Greek State has always proved it can offer such support. Ioannis D. Kitsos, is the author of the book Public Private Partnerships and Concession Contracts. Cooperations between Public and Private Bodies for Public Infrastructure Development through Private Capital Investments. According to International, European Union and Greek Law. He holds a Doctoral and a Master’s Degree in

Greece, in 2014, enhanced by positive economical/fiscal results, is emerging from its 6-year-crisis, and is attracting the confidence of foreign markets and the growing interest of international and European investors, especially as a PPP-friendly market in which they can profitably invest

problem returning to foreign markets. Greece, in 2014, enhanced by positive economical/fiscal results, is emerging from its 6-year-crisis, and is attracting the confidence of foreign markets and the growing interest of international and European investors, especially as a PPP-friendly market in which they can profitably invest. Public tenders are concentrated in the business field of PPPs, whose contract val-

Public Law from Law School of Athens, and is a member of Athens Bar Association. He is a Professional Seminar Speaker in PPPs in Greece and has has written many scientific articles on public procurement. He is the founder of Ioannis D. Kitsos Law Office, the main legal field of which is construction law in privately financed mega projects, consulting many construction companies and contracting authorities.

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NEW GREEK PANTRY

BY ANTHE MITRAKOS

GREEK PRODUCTS IN THE (GLOBAL) MARKETPLACE

MR. JUKE’S PRESERVES Without a doubt, Greek fruit ranks among the tastiest in the world. That puts Greek jarred preserves, a traditional custom, at the top as well. Handmade jams, marmalades, spoon delights, and sauces are what Mr. Juke’s is all about. These sweet and savory delights are made without artificial preservatives and colors. Creative combinations and fun flavors include Strawberry Daiquiri, Apricot Moon, Peach Bellini, Carrot Cake, and Lavender Margarita.

MASTIC TEARS Specially grown on the island of Chios, the mastic tree can exceed the age of 100. For ages, Greeks have cultivated these prized trees with an ancient technique for their masticha tears, a unique product known for its exclusive taste and health benefits. The all-natural Mastic Tears classic liquor is elegant, aromatic, sweet and refreshing. Best enjoyed chilled, it also comes in lemon flavor.

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TUVUNU MOUNTAIN TEA A can of Tuvunu all natural Greek Mountain tea combines some of the world’s finest herbs, fruit, and natural spring water to create a splendid mix. Family owned and operated, Tuvunu works with growers in Macedonia and Thrace, using locally grown ingredients and no artificial preservatives or additives. Fresh squeezed lemon, wildflower honey, a hint of brown cane sugar, and Sideritis Mountain tea make for an aromatic and uniquely refreshing drink that can be enjoyed both chilled or hot.

MR. & MRS. GREEK A contemporary brand that reflects the Greek spirit and values from a time gone by, Mr. & Mrs. Greek is the maker of a variety of natural old-fashioned products with roots in Chios and Crete, including home-made sauces, pasta, traditional sweets, and herbs and spices. Specialty items include the Chios Garlic Dip with Almonds, Vine Leaves from Arhanes, Crete, and the Chios Mandarin Marmalade.  Mrandmrsgreek.com

 Tuvunu.com

TUSSO COFFEE & CHOCOLATE Tusso’s premium aesthetics, coffee and cocoa bean quality, and unique packaging target lovers of high-end coffee and chocolate drinks. A 3-generation family business, Draculi Coffee’s Tusso gourmet espresso, traditional Greek coffee, and drinking chocolate represent the best of Greek brews. The award-winning Tusso Drinking Chocolate can be enhanced with natural lemon and orange mousse, also a family recipe, for an exceptionally rich tasting experience.

DEAR CRETE, TRADITIONAL COOKIES The aromas, flavors, and traditions of Greece are baked into these award-winning eclectic cookies and biscuits by Dear Crete. Made with genuine Cretan recipes rich in carbohydrates, protein, essential minerals, and fibers, these cookie bites make for a healthy snack. Combining Mediterranean heritage with a delicious modern twist, the Dear Crete collection includes Ouzo Biscuits, Mandarin, Masticha, and Fig Cookies, and organic treats, among others.

 Tusso.eu

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cial knowledge and pinpoint exactly what the consumer wants, and when they want it. For example, personalized offers and enticements reaching the customer through e-mail or appearing in ad space on their social media accounts increases the chances of a sale. Some tips for establishing a successful e-business are: • Make your e-business stand out by differentiating yourself from others with an attractive and easy-to-navigate website that makes the customer experience painless. • Focus on the customer’s unique needs by personalizing service or product advertisement and messages directed toward them. • Technology is constantly updating to make our lives easier. Use it toward your

Gaining a surge in popularity among the growing number of Internet users worldwide, e-commerce sales recently topped a whopping 1 trillion dollars, offering opportunities for retailers to find customers in the comfort of their home, office, or anywhere they have a connection. Taking business-to-customer relationships to another level, e-business, the strategic application of information and communication technologies to an online business, has become more focused on catering to customers’ tailored needs. Setting up a business online, or supplementing your brick-and-mortar business with e-commerce, can be a cost effective way to connect to billions of people in search of products or services. Through e-business, customer data can be collected to generate useful commer-

CH AM

E-Business & E-Commerce

@ FO IN

B2B

advantage to develop new features, or implement applications that will make the user and customer experience a more pleasant one. • Keep your content and webpage structure human. Let the customer know you care about them so they are more inclined to click on the “buy now” button, and make sure to respond to e-mail inquiries. • Know your customers. Types range from information gatherers who use the Internet to gather information about products or services before purchasing; evaluators, who know what they want and are looking to choose between brands and models; and committed buyers, who have made up their mind on what they want and are searching around for the best price.

Dining: For Business and Pleasure

F+W BOLD AND CREATIVE F + W by Chef Olivier Campanha in the Kolonaki area offers an eclectic food and wine menu with items not easily found in Athens. Enjoy bold and creatively presented French dishes and drinks at fair prices with friendly service. Start with scallops and fresh truffles, F + W’s crab salad, flavored with lime, fresh chili, diced mango and green apple with tarragon and yogurt dressing. Enjoy a grilled cote de boeuf, served with béarnaise sauce, cherry tomatoes flavored with rosemary and aged balsamic, Mache salad and roasted potatoes, or roasted breast of duck with seasonal vegetables flavored with liquorice butter, Kalingo chocolate and lime sauce. You may pair your dish with some

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rare vintages from the F + W wine card including the Chateau Margaux 1986 and Champagne du Pape ‘Cuvee Reservee’ 2005. For a nice finishing touch on your F + W dining experience, try the Lemon Story, light cream cubes of lemon foam with caramelized violets and verbena ice cream. For those looking to dine out for celebrations, F + W hosts special events and features specialty chef menu choices during holidays or by request.

F+W Xenokratous 49 Kolonaki, Athens Tel 210 721 1146

The Business Bookshelf

Naked Economics UNDRESSING THE DISMAL SCIENCE BY CHARLES WHEELAN

The complex issues of economics may perplex ordinary consumers, but should be accessible to more than just experts, says author Charles Wheelan. In just a few key lessons, Naked Economics puts a challenging global economic climate into perspective, addressing issues about globalization, politics, and the global economic crisis, while demystifying key econ concepts. A professor, speaker, and former Midwest correspondent for The Economist, Wheelan helps intelligent people with their daily struggles in understanding the basics of economics in an entertaining and effortless read perfect for students and lay readers, revealing investment advice and explaining professional economist jargon. Quirky topics discussed in the book include “why that dollar in your pocket is more than just a piece of paper, why Bill Gates is so much richer than you are, the army was lucky to get that screwdriver for $500, and why you might be able to save your face by cutting off your nose (if you are a black rhinoceros.)” “[Naked Economics] translates the arcane and often inscrutable jargon of the professional economist into language accessible to the inquiring but frustrated layman...Clear, concise, informative, and believe it or not, witty.”—Chicago Tribune.

Jargonaut ALPHA PUP Refers to the coolest kid on the block, it is a term used by market researchers to describe the ideal market.

BELOW ZEROS An online marketing term that refers to customers who cost more to serve than they return in value.

COIN-OPERATED EMPLOYEE An employee brought in for a particular project or set time period.

COLLABORATORY A virtual laboratory, as in a lab without walls, in which all communication is done via the Net.

ELANCER A freelancer who is computer literate, plugged-in, and available to work for anyone anywhere in the world.

MICROSERF

THE LIST

BY TRAVELOGUE

A young programmer who willingly slaves away, “pounding code” for Microsoft at its campus.

10 AMAZING HIKES IN GREECE

SIMUS

BY ANDREAS STYLIANOPOULOS PRESIDENT, NAVIGATOR TRAVEL & TOURIST SERVICES LTD

A person who simultaneously uses different media.

Take a hike! It’s one of the best ways to discover and enjoy Greece’s amazing landscape and have a weekend full of adventure. Alonnisos – Northern Sporades METEORA

WHITE LABEL

Ismarida Lake - Thrace

A product or service that is packaged plainly, allowing you to repackage it with your own brand to re-sell it.

Mt. Pelion – Thessaly Mt. Taygetos – Peloponnese Poros – Argo-Saronic Gulf Prespes - Macedonia Samaria Gorge – Crete MT. TAYGETOS

A former political activist whose idea of political activism has changed to that of just forwarding e-mail protests to other slackers.

Ancient Delphi – Central Greece

Meteora – Thessaly

PRESPES

SLACTIVIST

WHOLETAIL A business model where a manufacturer or producer delivers products or services directly to an individual.  http://www.netlingo.com

Vikos Gorge – Epirus

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TRENDS & TRADE MAKERS

Daily Secret Snatches Another $1.25M The New York and Athens-based Daily Secret, which sends out daily e-mails announcing city-specific tips has raised another $1.25 million in Series B venture funding to expand its reach, which now includes 1.5 million subscribers in 20 counties. With its new funding, the company, started by Nikolaos Kakavoulis, plans to launch newsletters in 15 new cities in 2014, also entering the African market.

Higher Tax Revenues for Greece Tax revenues are bouncing back from low levels during the height of the economic crisis according to a data release by the Organization for Economic Co-operation and Development. The largest increases in 2012 occurred in Greece, Hungary, Italy, and New Zealand while the largest decreases were reported in Israel, Portugal, and the United Kingdom. The average tax revenue to GDP ratio in 30 OECD countries was 346% in 2012, compared with 34.1% in 2011, and 33.8% in 2010.

More Whiskey for Greece Greeks are thirsting for more Kentucky bourbon and Tennessee whiskey according to a report by the Distilled Spirits Council as overseas exports spike beyond $1.5 billion in 2013 for American-crafted spirits. Factors behind the increase in exports in recent years are attributed to favorable trade agreements. Sales in Greece shot up by 72.5% to $9.2 million while sales in France rose 12.5% to $103.5 million and sales in the United Kingdom increased by 5.8% to $159.6 million. In the U.S., total revenues for bourbon and whiskey reached $2.4 billion, a 10.2% increase from 2013.

150 New Airline Routes for Athens 2014 may be a year of recovery for the Athens International Airport Eleftherios Venizelos as 150 new weekly flights will commence in the summer season. Aegean Airlines has announced an increase of seats for international flights, with new destinations including Geneva, Kiev, Warsaw, and Prague while Ryanair announced 900,000 new seats for domestic flights during the summer. New weekly flights from Athens include routes to Hamburg, Abu Dhabi, Beirut, Vienna, Brussels, Zurich, Cairo Copenhagen, Naples, Paphos, Singapore, and more.

GREEK MANUFACTURING GETS A BOOST

 Source: Associated Press

Tourism Set for All Time High in 2014 Get your beach towels ready. Tourism figures in Greece are set for a new record high this year according to Tourism Minister Olga Kefalogianni. Tourist arrivals are expected to top the 17-plus million visitors of 2013. In Greece, the tourism sector represents about 17% of the country’s GDP, 16% of jobs, and 12 billion Euros in revenues.

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The manufacturing industry saw a rise in January for the first time in 53 months, according to a report by London-based Markit Economics. Greece’s Purchasing Managers’ Index rose to 51.2 in the new year from 49.6 in December, the first reading above 50 mark since August 2009, reflecting expansions in output level and new orders. Despite this, the rate of job shedding remains solid.

W GRAPHIC DESIGN RESOURCES

Learn more about the entire process of graphic design and packaging options for your business with these creative online resources. justcreative.com A great list of 99 graphic design resources that all designers should know.

THE OLYMPIC SPIRIT AND SISTER CITIES Colorado Springs, known as America’s Olympic City, wants to pursue a Sister City relationship with Ancient Olympia. Colorado Springs is home to the U.S. Olympic Training Center. Ancient Olympia, known for its Olympic history, is why the Mayor and the city council are trying to link the two cities by Sister City ties. “What we have announced is our initiative to consider a Sister City relationship with Ancient Olympia, Greece, the birthplace of the Olympics,” said the Mayor of Colorado Springs Steve Bach. According to the Mayor, the Sister City relationship with Ancient Olympia will be beneficial for both cities. It will create various opportunities for cultural activities and exchanges between them and it will strengthen the cities’ connection to the Olympic Games. “Being a citizen of Colorado Springs over the past six years, I’ve come to realize all of the efforts that the city makes on an Olympic level. At the same time, I realized not a lot of people know what the Olympic movement is all about,” said Harris Kalofonos from Greece, who works as a consultant at USA Wrestling.

smashingmagazine.com An excellent resource for web design with guides for coding, mobile, graphics, and Wordpress. logodesignlove.com A blog focused on logo design with regularly posted articles and resources. sxc.hu Stockxchange is a free stock photo resource with extra tutorials on photo editing. dafont.com A list of free downloadable typography fonts.

ANCIENT ARTIFACTS TO DEBUT IN THE U.S.

The European Account Preservation Order

E.U. T C E R I D

The Committee of Permanent Representatives reaches agreement in the European Union (COREPER II) regarding the proposal for a European Account Preservation Order that will benefit small and medium enterprises (SMEs), and private individuals. Roughly a million SMEs in the EU face problems with cross-border debts. Up to 600 million Euros a year in debt are written off because businesses find it too daunting to pursue expensive, confusing lawsuits in foreign countries. The European Account Preservation Order is designed to: 1 Ease the recovery of cross-border debts for both citizens and businesses and facilitate the implementation of relevant court decisions. 2 Protect consumers who buy goods online in case they are not delivered. 3 Apply to divorced couples when one of the former spouses lives abroad and fails to pay the agreed alimony. 4 Allow creditors to have access to information on their debtor’s bank accounts and be able to “freeze” the amount owed following a court decision.

Greek Town Chicago’s National Hellenic Museum and the Field Museum of Natural History are making plans to co-present an exhibition of ancient Greek antiquities The Greeks: From Agamemnon to Alexander the Great next year. The collection will feature more than 500 artifacts from 22 Greek museums, many of which have never been exhibited outside Greece, from the Neolithic Era to the age of Alexander the Great. The artifacts include the iconic bust of Alexander the Great from Pella, the impressive statues of Archaic-period Kouroi, and golden jewelry from famous tombs. The Greeks exhibit will first tour at the Canadian Museum of Civilization in Ontario, will be co-presented in Chicago, and end at the National Geographic Museum in Washington, DC.

MARCH-APRIL 2014 | BUSINESS PARTNERS | 47

VIEWPOINT

AMWAY GLOBAL ENTREPRENEURSHIP REPORT 2013:

Encouraging Entrepreneurship

BY ELIMINATING THE FEAR OF FAILURE

he annual survey gives an upto-date view on self-employment potential and obstacles hindering entrepreneurial culture, such as fear of failure. The report’s goal is to point out the economic potential of entrepreneurs and to support the activation of potential entrepreneurs. More than 26,000 respondents across the world were interviewed. The poll was conducted by the market research institution GfK Nuremberg, Germany, in 24 countries that was published by Amway Europe in cooperation with the Technical University of Munich.

KEY RESULTS OF THE AMWAY GLOBAL ENTREPRENEURSHIP REPORT 2013

Despite the recent economic uncertainties, on average, more than two thirds of the respondents (70%) in 24 countries have a positive attitude toward entrepreneurship. This percentage shows that entrepreneurship continues to enjoy a high reputation (69%: 2012). The countries with the highest rates are Denmark (89%), Finland (87%), Australia (84%), whereas lower percentages are

observed in Austria (40%), Hungary (40%), Portugal (37%) and Germany (34%). The same applies to the possibility of self-employment: more than one third of the respondents (39%) can imagine starting their own business. The respondents name independence from an employer and realizing their own ideas as the most important motivation for becoming self-employed than income. However, many people do not go through with their plans. Fear of failure (70% of the respondents) remains a severe obstacle to starting a business. Measures such as public funding, loans to newly founded businesses and entrepreneurship education encourage people in taking the decision.

KEY FINDINGS IN GREECE

On average, more than two thirds (69%) of the respondents in Greece have a positive attitude towards self-employment, approximately the global average (70%). Still, almost one in three (31%) shows a negative attitude. In comparison to last year (72%), the positive attitude decreased by 3% which could be due to further impacts of the economic crisis. The most appealing factor to start up a business is “independence from

The results of the Amway Global Entrepreneurship Report 2013 were presented on February 4, 2014 at an event organized by Amway Hellas and held at the Embassy of the United States in Athens.

COMMERCIAL COUNSELOR BRYAN LARSON, AMWAY GENERAL MANAGER GEORGE APOSTOLOPOULOS

an employer and being one’s own boss” to the average of all polled countries (43%), as well as to respondents from Greece (56%). Especially young Greek respondents under 30 years (64%) and students (65%) share this opinion. The majority of Greek people (85%) say fear of failure is an obstacle to starting a business, 15% more than on the worldwide average (70%). People in Greece agree that “public funding and start-up loans” are indispensable (50%). This number is even higher than the international average (42%). Respondents in Greece acknowledge their country and society a narrow entrepreneurship-friendliness (9% very friendly, 42% rather friendly).

THE AMERICAN-HELLENIC CHAMBER OF COMMERCE

Become a Member

bponline.amcham.gr

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.

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COMMERC E OF

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American-Hellenic Chamber of Commerce

AMCHAM