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'The Sharing Economy: Hapimag - A Business for the Common Good'

The text of a talk given at Hapimag, Albufeira on

Monday 5 January 2015

Prof. Kamran Mofid*

Founder, Globalisation for the Common Good Initiative (GCGI)

INTRODUCTION

In the last few decades, and especially from the late 1970s with the rise of Thatcherism and Reaganism, the business world has been under the spell of neo-liberalism, obsessed with economic reform, growth, an ever-expanding free-market liberalism, structural adjustment policies, privatisation, deregulation, profit maximisation, cost minimisation and the highest bonuses for short-term gains, amongst others.

This destructive ideology has led many business leaders to falsely believe that there is competition between being efficient and profitable, and being for the common good.

One of the businesses that have risen above this false ideology is Hapimag.

My wife and I have been Hapimag members for over 10 years now. We have enjoyed staying at many Hapimag resorts and have been greatly impressed by what we have been offered, what we have observed and what we have learnt about Hapimag; its history, development, its business model, operation and service.

This is why I decided to offer to give a talk about Hapimag during our stay in the Albufeira resort in January 2015. I was glad when my offer was accepted.

I wish to thank Mr. Philippe Weibel, Resort Manager, Georg franzky Cabral, Leisure Consultant, and Franciska at the Reception for their support to facilitate my presentation.

We also wish to thank our friends in Coventry, Pete and Kate Townend for telling us about Hapimag and encouraging us to become members.

I wish also to thank all those who came to my talk and made it such an enjoyable time of dialogue, conversation and exchange.

Before anything else, I wish to give all present in this hall a gift from my heart, in the form of a great Celtic blessing for a blessed, happy and healthy 2015:

The Warmth of the sun to you

The Light of the moon to you

The Silver of the stars to you

The Breath of the wind to you

And the Peace of the Peace to you

I was prompted to offer this presentation today, when I read the following item on the Hapimag News letter in October 2014, The headline of this news item caught my eyes:

“The trend towards a sharing economy – A Swiss invention”

Today's consumers no longer want to buy a product simply to own it, but rather to use it sensibly", noted  Dr. Giatgen Peder Fontana, President of the Hapimag Board of Directors, at the 2014 Annual General Meeting. Dr. Fontana was thus addressing the trend towards a sharing economy: More and more, people, everywhere, due to environmental, ecological, financil and spiritual concerns, want to share. In Hapimag’s case: sharing the resorts and staying in one’s own apartments, without owing them.  

Hapimag has been a proponent of the sharing economy for over 50 years now with much success and out of conviction.

As experience clearly shows, everybody wins with the Hapimag system.  Members can make use of the high-quality infrastructure and enjoy holidays which cater completely to their tastes. And without experiencing any inconvenience – the organisation and maintenance is carried out by Hapimag.

First, let me share with you a bit more about what is meant by economic sharing:

What is economic sharing?

In an increasingly unequal and unsustainable world, governments, businesses, and the individuals must urgently move beyond the restrictive political and economic ideologies of the past and embrace solutions that meet the common needs of people in all countries for the common good. Many examples demonstrate how economic sharing has long been central to human civilisation by strengthening the social fabric of communities, improving levels of wellbeing across society and promoting social equity. But despite such notable exceptions, the fact of our global unity is still not sufficiently expressed in our international economic and political structures. The critical question facing humanity today is whether we choose to support and scale up these systems of sharing on local, national and global levels, or whether we allow them to be further undermined and dismantled by those who are ideologically opposed to putting sharing at the centre of policymaking.

The political economy of sharing

As for example noted by STWR: "Contrary to the common misconception that people are individualistic and selfish by nature, anthropologists have shown that gifting and sharing has long formed the basis of community relationships in societies across the world. A recent spate of scientific research has built on this evidence to demonstrate that as human beings we are naturally predisposed to cooperate and share in order to maximise our chances of survival and collective wellbeing. Without the act of sharing and reciprocity, there would be no social foundations upon which to build societies and economies.

In this light, it is not surprising that the principles of sharing and equality are important components of many of the world’s religions, as well as many secular movements such as humanism. In broadly similar ways, Judaism, Islam, Christianity, Buddhism, Hinduism and numerous other faiths all expound the importance of sharing wealth and other resources fairly, as well as the need to protect the vulnerable and those who are less well off in society. For millennia, the principle of sharing has aligned closely with the moral values and ethics that should underpin the fabric of society.

Yet despite the prevalence of sharing throughout the natural world and in family life, we have largely failed to create a global community of nations in which sharing is embodied in our international economic and political structures. Rather than seeing the family of nations as a unit and accepting that the principle of sharing must play a key role in governing our collective use of available resources, the global economy has been built on the opposing and misguided objects of national self-interest, aggressive competition and materialistic acquisition. This is the gist of what economic sharing is all about." (1)

Having noted the significance and efficiency of the concept of “Sharing”, now I wish to introduce you to Hapimag more fully:

The Birth of Hapimag

Dr. Guido M. Renggli and Alexander Nette founded Hapimag AG on 24 September 1963: Hapimag purchases holiday properties, which the shareholders can then use flexibly. With little capital, members can then have holidays in many places in their own private apartments, with many associated conveniences.

The new feature of this idea was to arrange the rights of residence flexibly by means of a points system. Nette presented his idea to Dr. Guido M. Renggli, a young lawyer from Zug/CH, who had been recommended to him by a bank in Zug. Dr. Renggli recommended implementation of the concept by means of a joint-stock company according to Swiss law, which would be the owner of the holiday apartments and grant its shareholders rights of residence in the apartments kept by the company.

Nette wanted to finance the maintenance costs of the holiday properties by means of share sales. Dr. Renggli recalls: I emphatically advised against this idea, as it would have amounted to a ‘snowball’ system. “I therefore implemented the solution whereby the maintenance costs should be financed by means of an annual subscription charge to be paid by the shareholders”, recalls Dr. Renggli.

On 24 September 1963, the Hapimag Hotel- und Apartmenthaus Immobilien AG, later to be renamed Hapimag, was entered in the Commercial Register of Zug. The first President of the Board of Directors was Alexander Nette.

Hapimag for the Common Good :Values are what Guide us to the Common Good

First Let Us Consider Why Values Matter:

“Values represent our guiding principles: our broadest motivations, influencing the attitudes we hold and how we act.”

‘Try not to become a man of success, but a man of value’- Albert Einstein

As it has been observed throughout history, in action and thought, people are affected by a wide range of influences. Past experience, cultural and social norms are some of the most important ones. Connected to all of these, to some extent, are our values, which represent a strong guiding force, shaping our attitudes and behaviour over the course of our lives. Our values have been shown to influence our political persuasions; our willingness to participate in political action; our career choices; our ecological footprints; how much money we spend, and on what; and our feelings of personal wellbeing, contentment and happiness; as well as our relationship with others, with nature and the Mother Earth, to mention but a few.

Let us pause for a moment and focus on some fundamental and enduring questions of human meaning and value. Questions such as:

1. What does it mean to be human?

2. What does it mean to live a life of meaning and purpose?

3. What does it mean to understand and appreciate the natural world?

4. What does it mean to forge a more just society for the common good?

By their very nature, these questions lend themselves to thought and discussion around ethics, morals and values.

Now let us consider which values might guide an organisation towards the common good:

Below, I have, as an example, highlighted the Values of the GCGI**, which I consider to be similar to those of Hapimag's:

We value caring and kindness

We value passion and positive energy

We value service and volunteerism

We value simplicity and humility

We value trust, openness, and transparency

We value values-led education

We value harmony with nature

We value non-violent conflict resolution

We value interfaith, inter-civilisiational and inter-generational dialogue

We value teamwork and collaboration

We value challenge and excellence

We value fun and play

We value curiosity and innovation

We value health and well-being

We value a sense of adventure

We value people, communities, and cultures

We value friendship, cooperation and responsibility (2)

'The Sharing Economy: Hapimag - A Business for the Common Good

What is special about Hapimag is not just the “Sharing” idea, but also the underlying values of that idea. Hapimag attaches great importance to criteria such as quality, safety and sustainability – but also to aspects such as maximum individuality and freedom, outstanding value for money and the strengths of its Swiss roots.

Before I explain these more fully, let me explain to you what I mean by “The Common Good”.

Defining the Common Good

Put it very simply, as Wallis has noted, the common good has origins in the beginnings of Christianity. An early church father, John Chrysostom (c. 347–407), once wrote: “This is the rule of most perfect Christianity, its most exact definition, its highest point, namely, the seeking of the common good . . . for nothing can so make a person an imitator of Christ as caring for his neighbours.”          

The notion of the common good has both religious and secular roots going back to Catholic social teaching, the Protestant social gospel, Judaism, Islam, and in the American Constitution itself, which says that government should promote “the general welfare.” A commitment to the common good could bring us together and solve the deepest problems this country and the world now face: How do we work together? How do we treat each other, especially the poorest and most vulnerable? How do we take care of not just ourselves but also one another?

The common good is also the best way to find common ground with other people—even with those who don’t agree with us or share our politics.  Everybody, liberals and conservatives, east and west, could come together and affirm the moral standard of the common good.

From a non-religious perspective, in modern political times, the term "common good" is closely associated with the 17th-century British philosopher John Locke, who argued that when people enter a society they give up some liberties to gain protection of a larger set of liberties and rights as part of a social contract. A society knitted together by the common good guarantees rights that would not exist in a pre-social setting. Locke used this explanation to rationalise the establishment of a parliamentary government that would be responsible for assuring the public welfare. Indeed, for example, in the American Constitution itself, the notion of the common good is clearly adhered to when it notes that government should promote “the general welfare.” (3)

Having defined and explained what common good is all about, let us consider what Hapimag’s Common Good Values are? Amongst them, we may identify the following principles:

Swissness:Quality and reliability

Even if Hapimag calls many of the most beautiful places in Europe home, its Swiss origin cannot be denied. The passion for quality, precision and hospitality anchored in its genes make the most enjoyable time of the year even more enjoyable. Their fondness for precision ensures that the complex processes which take place in the resorts and residences operate without a hitch day after day. Hapimag also maintains and look after its self-financed real estate portfolio, demonstrating that it also has the special Swiss talent for value-enhancing management of investments. In short, the virtues that make Hapimag Swiss ensure that its members who arrive for a new holiday feel just as well looked-after and safe as they did the last time.

Long Term Approach: The longer, the more valuable

Dependable values aren't created overnight; it takes time. Hapimag has been around for over 50 years, and similarly there are memberships that have been upheld over generations. From the very first day, the business model was designed for longevity. It gives the members the certainty that everything will always be just as they like it from one holiday to the next. To ensure that this doesn't change, Hapimag runs all of its resorts and residences themselves. No dreaded out-sourcing at Hapimag.  The fact that Hapimag is devoted to a long-term approach also means that their offers are continually being updated in line with the wishes and needs of the members.

Sustainability: Economical and ecological

Hapimag model is economically and ecologically beneficial in the long-term because members use the resorts and residences jointly and in an environmentally compatible manner. It is their high expectations which support the sustainability of the Hapimag concept most effectively. Furthermore, continuous investment and regular renovations maintain the value of Hapimag’s portfolio, ensuring that the buildings and technology remain up-to-date and that members are just as happy to see the facilities again every time they arrive for a new holiday. A pleasant environment is a basic requirement for unspoiled holiday pleasure. If necessary, Hapimag establishes the necessary local infrastructure itself.

Value for money: Price stability and insensitivity to economic fluctuations

There are places and locations in the world which are reserved to just a small group of holidaymakers. Hapimag membership is the entry ticket to some of the most exclusive holiday regions of the world – and it doesn't cost a fortune. Because the Hapimag concept is geared for the long term, members can do things that are usually the reserve of the top earners. Who else is able to marry in a castle, breakfast on the dunes of Sylt or go skiing in trendy Chamonix? When over 140 000 members join forces, every single one of them can do much more. And Hapimag lets you experience unforgettable holidays even if your holiday budget isn't very large. Hapimag membership guarantees price stability and maximum insensitivity to economic developments.

This completes my presentation and I wish you a very pleasant holidays with many more to come.

Notes:

1- A primer on global economic sharing | Share The World's Resources (STWR)

2-    The Value of Values: Why Values Matter

3-    What might an Economy for the Common Good look like?

Learn more about Hapimag:

HAPIMAG - English

*Prof. Kamran Mofid (Retired) is Founder of the Globalisation for the Common Good Initiative (GCGI- founded at an international conference in Oxford in 2002), Co-founder/Editor, GCGI Journal (GCGIJ), which is hosted at Wilmington College, Ohio, USA, and a Patron of the Human Values Foundation. Mofid received his BA and MA in economics from the University of Windsor, Canada in 1980 and 1982 respectively. In 1986 he was awarded his doctorate in economics from the University of Birmingham, UK. In 2001 he received a Certificate in Education in Pastoral Studies at Plater College, Oxford. Mofid's work is highly interdisciplinary, drawing on Economics, Business, Politics, International Relations, Theology, Culture, Ecology, Ethics and Spirituality. Mofid's writings have appeared in leading scholarly journals, popular magazines and newspapers. His books include Development Planning in Iran: From Monarchy to Islamic Republic , The Economic Consequences of the Gulf war, Globalisation for the Common Good, Business Ethics, Corporate Social Responsibility and Globalisation for the Common Good , Promoting the Common Good (with Rev. Dr. Marcus Braybrooke, 2005), and A non-Violent Path to Conflict Resolution and Peace Building (Co-authored, 2008).

**GCGI:

Globalisation for the Common Good Initiative (GCGI): Where we connect our intellect with our humanity

At the GCGI we are delighted and honoured that since 2002 we have been at the forefront of activities to highlight, address and analyse these and other relevant questions.

We recognised that building a better and more harmonious world will demand challenging and novel ways of thinking, perspectives that encompass the broad swath of human experience and wisdom, from the natural sciences and all the social sciences, to the philosophical and spiritual values of the world’s major religions and of indigenous peoples as well. The task before us is a daunting one, and wisdom in how to proceed will come from a multiple of sources, and must embrace the panorama of cultural and disciplinary perspectives. We appreciate that we should not carry on constructing a global society that is materially rich but spiritually poor. We did know that we must be led by values, and must uphold them at all times.

To understand, appreciate, and face the challenges of the contemporary world requires us to focus on life’s big picture. Whether it is war and peace, economics and the environment, justice and injustice, love and hatred, cooperation and competition, common good and selfishness, science and technology, progress and poverty, profit and loss, food and population, energy and water, disease and health, education and family, we need the big picture in order to understand and solve the many pressing problems, large and small, regional or global.

The “Big Picture” is also the context in which we can most productively explore the big perennial questions of life - purpose and meaning, virtues and values.

In order to focus on life’s bigger picture and be guided by the principles of hard work, commitment, volunteerism and service; with a great passion for dialogue of cultures, civilisations, religions, ideas and visions, at an international conference in Oxford in 2002 the Globalisation for the Common Good Initiative (GCGI) and the GCGI Annual International Conference Series were founded.

We recognise that our socio-economic problems are closely linked to our spiritual problems and vice versa. Moreover, socio-economic justice, peace and harmony will come about only when the essential connection between the spiritual and practical aspects of life is valued. Necessary for this journey is to discover, promote and live for the common good. The principle of the common good reminds us that we are all really responsible for each other – we are our brothers' and sisters' keepers – and must work for social conditions which ensure that every person and every group in society is able to meet their needs and realize their potential. It follows that every group in society must take into account the rights and aspirations of other groups, and the well-being of the whole human family.

One of the greatest challenges of our time is to apply the ideas of the global common good to practical problems and forge common solutions. Translating the contentions of philosophers, spiritual and religious scholars and leaders into agreement between policymakers and nations is the task of statesmen and citizens, a challenge to which Globalisation for the Common Good Initiative (GCGI) adheres. The purpose is not simply talking about the common good, or simply to have a dialogue, but the purpose is to take action, to make the common good and dialogue work for all of us, benefiting us all.

What the GCGI seeks to offer - through its scholarly and research programme, as well as its outreach and dialogue projects - is a vision that positions the quest for economic and social justice, peace and ecological sustainability within the framework of a spiritual consciousness and a practice of open-heartedness, generosity and caring for others. All are thus encouraged by this vision and consciousness to serve the common good.

The GCGI has from the very beginning invited us to move beyond the struggle and confusion of a preoccupied economic and materialistic life to a meaningful and purposeful life of hope and joy, gratitude, compassion, and service for the good of all.

Perhaps our greatest accomplishment has been our ability to bring Globalisation for the Common Good into the common vocabulary and awareness of a greater population along with initiating the necessary discussion as to its meaning and potential in our personal and collective lives.

In short, at Globalisation for the Common Good Initiative we are grateful to be contributing to that vision of a better world, given the goals and objectives that we have been championing since 2002. For that we are most grateful to all our friends and supporters that have made this possible.

Learn more about the GCGI:

http://www.gcgi.info/