Lessons in social studies

Over the years of guiding STMicroelectronics through good times and bad, I have made several observations. They include convergence as an engine for growth, the need to protect the environment, the implications of globalization and cultural differences, and the importance of bridging what I call the digital divide.

A new step forward in evolution is being made, and the long-awaited convergence of applications into consumer-oriented computing, communicating and multimedia appliances is beginning to materialize and will rapidly become the most powerful growth engine for the industry. The winning combination for this decade will be in the hands of the companies that lead in these developments.

Caring for the environment is not only compatible with our business scope, but also gives us a competitive advantage. Our seven years of experience in what we believe is the most advanced environmental-care program of the industry shows that on average our investments for ecology have a payback time of 2 1/2 years.

Concerning globalization and the need to safeguard cultural independence, the challenge of grasping and managing cultural diversity is at the root of the success or failure of any international enterprise. In accepting the inescapable nature of globalization and identifying the opportunities it brings we must at the same time exploit the full value of the differences among the various cultures within the enterprise and the various geographical markets where it operates. Elements that might put the brakes on development must be turned instead into elements of competitive edge.

Lastly, the difference between those who have high-quality access to information and know-how and those who don't is becoming even more important than gaps in material wealth. If we do nothing about it, today's elites will reach even higher peaks of wealth and power, and the widening of the digital divide will create new areas of poverty and despair.

As a member of a United Nations Information and Communication Technologies task force, I have proposed getting corporations involved in bridging the digital divide. I am convinced that companies committed to promoting the well-being of the communities in which they work generate more value, not only for all stakeholders but also for their shareholders. And to me, employee motivation provides an even greater return on the sponsorship of charitable initiatives than a good corporate image.

In the long run, more-advanced economies will benefit if, by bridging the digital divide and contributing to development of poorer parts of the world, new markets and new opportunities for trade and production are created.