American

Investor
JANUARY 2011
Vol. XXI, No. 1 • ISSN 1506-3240

© American Chamber of Commerce in Poland 2011 www.amcham.com.pl

Growth
between
the ears
Rising GDP is nice to have, but to see if
it is sustainable PwC looked behind the figures
to find out if Polish companies have a healthy
mental approach to business development

General Meeting: Befriend the Friendly State

AmCham: Paving the way to success
Agenda: Saving on defense AmCham: Growing stronger
GE Hitachi: Powering forward
Agenda: Zeus mixes with mortals
 COVER STORIES: Growth between the ears
AmCham online
Rising GDP is nice to have,
American but to see if it is sustainable
American Investor Investor PwC looked behind the fig-
ures to find out if Polish com-
Rate Card for 2011 JANUARY 2011 Vol. XXI, No. 1
panies have a healthy mental
approach to business devel-
Fields in dark blue represent advertising format and how it looks what’s on
www.amcham.com.pl opment, page 12
on single page or spread. Your online guide to AmCham activities

Quarter page Box
Size.....................87x120
Price.......................1,100
2/3 Box
Size...................120x120
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Technical note
Download this magazine! Toto, we’re not in Kansas
Prices in Polish złoty. American Investor is available in full as anymore... American in-
a pdf for download from the www.am-
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cham.com.pl website. Go to "About vestors need to be aware
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and prices of advertis- from the pop-up menu. You can down- free market includes a Eu-
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load past issues of American Investor
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ropean and socialist bent,
page 13
Calendar
By clicking on red links in the Calen-
dar you may visit photo coverage of AMCHAM GENERAL MEETING
our past events. Blue links will take Befriend the Friendly State American companies in Poland offer a valuable perspective
you to the announcements of upcom- on government that works, p. 17
Half-page Horizontal ing events.
Size.................180x125 AMCHAM MEMBERSHIP DIRECTORY
Price.....................2,500 Events Corporate members Alphabetical list of AmCham member companies, p. 19
AmCham Monthly Meetings are one of Individual members Alphabetical list of AmCham individual members, p. 22
the flagship events organized by the
FOCUS
chamber. While American Investor cov-
ers each Monthly Meeting exten- Growing stronger every year Just as 2010—the 20th AmCham anniversary year—
comes to an end, American Investor talks with Dorota Dabrowski, AmCham Executive Di-
sively, including full-page pictorials,
rector, about the chamber’s progress, how it helps its members, and the significance of
you can search through picture American business for Poland’s economy, p. 23
archives of past events that include
never previously printed material. Just Paving the way to success Roman Rewald, former AmCham Chairman who held office
go to Events and Activities, pick for three consecutive terms and now is an ex officio Board Member, talks to American In-
Monthly Meetings and scroll down for vestor about what AmCham has achieved, where it is going and where it may be 20 years
links to archived events. from now, p. 24

Regions Powering forward As Poland thinks about building nuclear power plants, GEH is already
lending a helping hand, p. 26
AmCham may be closer than you
think. Apart from Warsaw, AmCham EXPERTS
has two regional branches which are
Quarter page Horizontal Strip Up in smoke A new system for moving excise goods around the E.U. starts this year, and
One-Third Vertical Strip active all year long and offer many ex-
smokers will pay more for their fix, p. 30
Size.........................56x250 Size.................180x75 citing opportunities to interface with
Price...........................2,000 Price...................2,000 regional business leaders and politi- Catch them if you can Deloitte’s Central Europe technology survey identifies the region’s
cians. To find out more about our ac- fastest growers, p. 31
tivities in Kraków and the region of
southern Poland, and Wrocław, go to Are you building your leaders? “Leadership is action, not position,” p. 32
Technical note Regions in the horizontal menu bar,
Measurements: width and pick your region of interest. New order for mortgage regulations Now mortgages will be a more effective instrument
for securing claims, in line with current lending practices, p. 33
by height in mm. Policy Watch
Advertising materials The price of predictability Poland’s competition authority seeks uniformly high penalties
Full Page Ad should be delivered in Intelligence: For AmCham position
for abuses—if the courts allow, p. 34
Size.........210x297 papers, policy statements, official let-
electronic form, as
Price...........5,500 ters to government ministers and re- What next in cross-border CIT? The heated debate on how to reform U.S. international
PDF, TIFF or JPG files
search papers, visit the Advocacy link tax rules continues, p. 35
prepared in 300 dpi on the horizontal menu to download
Note that full page resolution and CMYK the latest AmCham position papers. EVENTS
ad requires bleed color International Christmas Evening, p. 36; Winter Business Mixer, p. 37; AmCham General
of 5 millimeters on encoding. Other useful sites Meeting, p. 39; Business breakfast, p. 39
each edge.
U.S. Chamber of Commerce DEPARTMENTS
http://www.uschamber.com
American Chamber of Commerce From the Editor, p. 2; From the Executive Director, p. 4; Newsline, p. 5; Agenda, p. 8;
Content summaries in Polish, p. 40; Guide to AmCham Committees, p. 41
For more information about American Investor contact magazine editor Tomasz Ćwiok at in the European Union
http://www.amchameu.be
tomasz.cwiok@amcham.com.pl or call +48 22-520-9553 or +48 506-536-551 European Council of American
Chambers of Commerce
http://www.amchamseurope.com

J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 1
YOUR AMCHAM FROM THE EDITOR

BOARD OF Infrastructure needs

DIRECTORS more than money
The American Chamber of Commerce in Poland

T
Roman Rewald – Weil, Gotshal & Manges
Acting Chairman he keynote speaker at the AmCham Annual General Meeting, former CEOs will be deprived of their annual bonuses as a form of punishment. Three of the CEOs published apologies in the re-
Judith Y. Gliniecki – Wierzbowski Eversheds Deputy Minister of Economy Adam Szejnfeld, told the congregation of gional press, hoping that would be enough to absolve their incompetence. Shortly before the holiday break, when thousands
Vice Chair
American businesses in Poland that in 2011 they should consider enter- of people travel for Christmas, Prime Minister Donald Tusk held a crisis management meeting with Grabarczyk and the CEOs of
RichaRd lada – Telesto ing into public-private partnerships, because the PPP Act now offers flexibil- Polish railway companies to decide what extra measures the companies should take in order not to collapse. As reported by
Vice Chairman
ity to all parties to projects carried out by commercial entities in conjunction the media, they came to the conclusion that in case of heavy snowfall, train platforms should be cleared of snow; in case of
PeteR kaY – KPMG Polska with the public sector—without interference on the ministerial level and with delays, passengers stranded at train stations should be served hot drinks free of charge; and extra engines should be on
Secretary
the opportunity to achieve solid, long-term, sustainable profits. standby to rescue trains that break down in the middle of nowhere. But does free coffee at point A make up for a transportation
Stan PoPow – Finacorp The public sphere needs private investment capital to finance some of its company’s lack of the competence to transport the passenger to point B?
Treasurer
projects. But as much as private money, it needs to acquire other assets of Eventually, the frustrated prime minister fired Juliusz Engelhardt, the deputy minister responsible for rail infrastructure. Engel-
private enterprise—business knowhow first of all. A businesslike attitude in- hardt blamed the mess on technical problems caused by the winter weather. Somehow the technology excuse did not wash
MEMBERS
Tony Housh John Lynch cludes such qualities as the determination and stamina of the management for an invention that came around in the 19th century and has long since become an essential part of the infrastructure of civi-
APCO Worldwide Lynka to succeed in fulfilling the company’s statutory obligations. Then comes a lized countries.
Paul Fogo Mac Raczkiewicz grownup sense of responsibility and readiness to bear the consequences of Back in the summer of 1969, a unique collaboration of government, academia and business, known as the Apollo program,
Miller Canfield Ex officio
failure. successfully sent men to the moon and safely returned them to Earth. In terms of extreme temperatures, that mission was ex-
Piotr Jucha
McDonald’s
Anna Sienko
IBM
The lack of these characteristics has been dramatically displayed by the posed to –270ºC in outer space and +2,000ºC on reentry. There were thousands of ways in which the mission could have
recent havoc at the Polish rail companies, all but one state-owned enter- failed. But most of them were identified, solutions were found, procedures tested theoretically, then implemented and re-
Thomas Kolaja Joseph Wancer
Alvarez and Marsal Deloitte prises. In November the early snow brought train service to a near standstill. hearsed on the ground. All that took place at a time when the combined computing power of all research institutes that took
On the first day over 800 trains were cancelled throughout the country. Hun- part in the project was just a tiny little fraction of what is available today for a company such as Polish State Railways.
Robert L. Koński
Kulczyk Investments dreds of trains were late, with delays sometimes longer than the entire Poland in winter is not the moon. Every technical problem has its solution.
scheduled travel time from the first to the last station. Some trains that were What was striking about the train service crisis was not so much the extent of the mess, which actually happened a year be-
in service carried fewer cars than usual, and commuters could not board be- fore, but the excuses offered by the people responsible, which boiled down to this: you can expect Polish train services—all
SPONSORS cause there was not enough room. I saw trains with malfunctioning doors. subsidized—to fulfill their statutory obligations only in good weather. When the mercury drops and snow falls, as it does every
Some doors would not open, and passengers had to dash through com-

Going nowhere?
partments at the last moment to find a functioning door to make it out at the
station. Some doors would not close, letting freezing wind and snow into the
cars. Some trains were freezing cold inside; others were sweating hot. Being
a commuter required patience, a lot of free time, and a sturdy constitution.
The chaos did not end in the few days after the outbreak of winter, as one
might have thought would be long enough for the railway companies to take
things under control. It continued, with more intensity, when new train sched-
ules were introduced on December 12 without proper information or coordi-
nation. Reportedly, train companies intentionally did not reveal their new
schedules because they did not want their competition to know.
The Polish railway companies became so dysfunctional that Minister of In-
frastructure Cezary Grabarczyk said publicly that their CEOs and deputy
AmCham Auditor:
winter, it is normal for the system to break down. Snow blocks the tracks and downs power lines, and cold snaps the tracks.
All in all, this is like blaming an air crash on gravity.
The lack of responsibility on the part of people operating Poland’s infrastructure is not an issue unique to train companies.
Thousands of people experienced power outages in many parts of Poland (the grid operator is a state-owned company).
Thousands went without heat (generated by municipal companies). When services are most needed, the public sector does
not deliver.
Now Poland has announced a nuclear program. The government insists that the power plant be run by a state-owned com-
pany and not a private one. Will a nuclear breakdown be regarded as business as usual for a state-run operation? Will the rem-
edy then implemented by the government and government-appointed managers be to distribute free drinks with iodine iso-
topes?
Tomasz Ćwiok

2 AMERICAN INVESTOR J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 3

 Newsline
FROM THE EXECUTIVE DIRECTOR YOUR AMCHAM

News from AmCham and its members

Dear Readers! AMCHAM STAFF AmCham General Meeting lion acquisition of Trinity Park III in Warsaw and
is currently involved in various investment
Baker & McKenzie
Dorota Dabrowski At the Annual General Meeting, AmCham transactions throughout Poland valued at ap- Baker & McKenzie advised Unicredit as the
Executive Director members approved the 2010 annual report proximately EUR 175 million. Banka’s major in- manager of the IPO of Milkiland N.V., a dairy
director@amcham.com.pl company registered in the Netherlands but ac-
and the 2009 audit report, and elected the vestment clients have included Skanska Prop-
Marzena Drela members of the AmCham Board of Directors erty Development, St Martins, Pramerica, tive in Russia, Ukraine and elsewhere in CIS,

W
Deputy Director for another term. The new members are Buma Group, Prochem SA, Orco Property on the Warsaw Stock Exchange. Milkiland
e are at that time of year that brings freshness of new beginnings to match the marzena.drela@amcham.com.pl Thomas Kolaja of Alvarez & Marsal, Piotr Group, Unilever, Bank BPH, ING Real Estate, raised over PLN 200 million on the issue. The
crisp January air. We all seem optimistic about the end of the global crisis, Jucha of McDonalds and Anna Sienko of IBM Eurocash SA, UBS, and Europlan Capital. stock rose 6.6% from the issue price on the first
Anita Kowalska Polska. The rest of the new board is made up day of trading on volume of PLN 7.4 million.
waves of which hit us here in Poland to a greater or lesser extent, and about Events & Media Manager Banka is a native of Chicago. He has an exten-
anita.kowalska@amcham.com.pl of the members who stood for reelection: Paul sive background in economic development Jakub Celiński, the partner at Baker & McKen-
what the year 2011 holds in terms of new business. Certainly expectations are high. Fogo of Miller Canfield, Judith Y. Gliniecki of zie who managed the Unicredit account, said
projects and urban design, and came to
Hoteliers and other service providers are particularly excited about Poland’s upcom- Robert Kruszyna Wierzbowski Eversheds, Tony Housh of APCO Poland in 1996 as the investment manager for the task was complex as it involved working
ing E.U. Presidency and all the meeting, conference, and hotel rooms that will be Office Manager Worldwide, Robert Koński of Kulczyk Invest- the Warsaw Financial Center project. with Milkiland offices in five different countries.
robert.kruszyna@amcham.com.pl He said he was happy that the whole project
booked for the endless delegations coming to meet with Polish President Bronisław ments, Rick Lada of Telesto, Stan Popow of
FinaCorp, and Joseph Wancer of Deloitte. was accomplished within only five months.
Komorowski and the E.U. Presidency team. Barbara Pocialik-Malinowska
Membership and Committees Coordinator Former AmCham chairs Mac Raczkiewicz AmCham Telecom Commitee
For AmCham, 2011 signifies new beginnings as well with a new Chair (still un- barbara.pocialik@amcham.com.pl and Roman Rewald serve ex officio. Piotr Muszyński (pictured below) of Telekomu- Boeing
known at print time). Roman Rewald’s three two-year terms have been joyful and AmCham members applauded Rewald (pic- nikacja Polska SA has joined Jarosław
Marta Pawlak Boeing has shipped its first 737-800 Next-Gen-
successful but have come to their inevitable end. AmCham’s new Chair will Research and Policy Coordinator eration passenger aircraft equipped with the
bring new ideas, new priorities, and certainly a new leadership style. We are ready marta.pawlak@amcham.com.pl
Boeing Sky Interior (below) to the German air-
and waiting. line TUIfly. Boeing Sky Interior offers a more
Robert Chomik
open cabin that features modern, sculpted
No less importantly, we have three brand-new members of Project Assistant
robert.chomik@amcham.com.pl sidewalls and window reveals and more room
the AmCham Board of Directors. Anna Sieńko heads IBM for carryon bags in the new stow bins. The bins
Polska, Piotr Jucha heads McDonald’s Polska, and Thomas AmCham in Kraków are larger but take up less space as they
Kolaja runs the local branch of Alvarez & Marsal. AmCham is Monika Pilarska sweep up toward the ceiling. Along the ceiling,
krakow@amcham.com.pl
passengers have new lighting, which can por-
fortunate to have three such strong additions to the Board. All
tray different color schemes, such as a soft
three individuals and their companies have already been blue sky or a relaxing pallet of sunset colors.
AmCham in Wrocław
heavily involved in the work of AmCham, and they represent a Joanna Bensz The new lights are also longer-lasting and more
valuable mix of industries and issues important to our busi- amcham.wroclaw@pmg.pl energy-efficient, with an estimated 40,000
hours between replacements, compared to
ness community. Please be sure to heartily welcome Anna,
American tured) for his achievements in his three two- Roszkowski of Crowley Data Poland as co-

Investor
Piotr and Thomas.
Dorota Dabrowski From the AmCham staff point of view, I can predict some
AMCHAM EXECUTIVE DIRECTOR
new directions for us this year. Public procurement is an issue
Published by the American Chamber of Commerce in Poland
we will be focusing on because it is a persistent difficulty in
doing business for so many of our members in a variety of ways. We will continue our
EDITOR-IN-CHIEF, ART & DTP
interest in business-academia cooperation, but with a concrete plan of action to im- tomaSz Ćwiok
plement, both in Warsaw and at our branch offices in Kraków and Wrocław. We also tomasz.cwiok@amcham.com.pl
plan to develop a program of events around women’s issues and for the women EDITOR-AT-LARGE
chRiStoPheR Smith
within AmCham. For some reason that seems more fun and appropriate than focus- christopher.smith@neostrada.pl
ing on men’s issues.
Printing
In February, we will host a door-knocking delegation from AmCham EU in prepara- Q Invest Ltd
tion for our E.U. Presidency. Later in the year, we will organize our own mission to the +48 22 424 6600
U.S. to promote investment in Poland. This will be a learning experience for AmCham
To contact AmCham
and one we hope will succeed in bringing more U.S. investors to Poland. We are ex- please write or call:
cited about having these new challenges to experience and directions for our cham-
ul. Emilii Plater 53, WFC
ber to grow. We are glad to have all of our wonderful members along for the ride and 00-113 Warsaw
helping us every step of the way. tel: +48 22 520 5999
fax: +48 22 520 5998
e-mail: office@amcham.com.pl
Looking forward to a fantastic year,
www.amcham.com.pl
© American Chamber of Commerce in Poland 2011.
All rights reserved.
American Investor is the official publication of the Ameri-
can Chamber of Commerce in Poland. It is a voice for for-
eign investors and the business community in Poland.
The magazine strives to keep our members and other
readers up to date by following chamber news and report-
ing on the leading trends in business and policy.
letters to the editor should be e-mailed to
tomasz.cwiok@amcham.com.pl
year terms as AmCham Chairman. “I have
been privileged and honored to be the chair of
this organization for so long,” Rewald said,
adding that he had to resist some suggestions
from AmCham members to have the organiza-
tion’s bylaws amended so he could continue
as chairman for yet another term. “We need
room for another person with more energy,”
Rewald said.
The new chair and other AmCham officers
will be elected by the Board of Directors this
month.
AmCham Real Estate Commitee
John Banka (pictured) of Colliers International
has joined Halina Więckowska of K&L Gates
as co-chair of the Real Estate Committee.
Banka joined the Colliers International Invest-
ment Advisory Group in 2002, coming from the
Real Estate Group at Andersen/Ernst & Young
in Warsaw, where he was a senior manager. He
most recently advised SEB on its EUR 93 mil-
chair of the AmCham Telecom Committee.
Muszyński started his professional career in
1990 at Eastern Europe Investment Ltd. as a
partner and project manager responsible for
strategy, marketing and business development.
In 1993 he joined Rema 1000 Poland as man-
agement board member and managing direc-
tor, and in 1999–2001 was president of the
management board. At the meantime, in 1996–
1998, he was management board member at
Intersport Poland, responsible for the opera-
tional launch of the company. He has been at
TP since 2001, first as director of the customer
care division, then in 2005–2006 as sales and
services division director. In 2006–2008 4,000 hours for the previous lighting standard.
Over 1,400 of the 737 Boeing Sky Interior
Muszyński was TP Group executive director in
charge of sales and services, in 2008–2009 TP planes have already been ordered, by some 60
Group management board member in charge airlines around the world.
of operations, and since November 2009 vice
president of the management board. CB Richard Elllis
CB Richard Ellis Group was named Best Inter-
Accreo Taxand national Property Consultancy 2010 at the In-
Poland is one of the least expensive countries ternational Property Awards, announced in
when it comes to the taxation on investments London in November. The event, held in asso-
in both commercial real estate and residential ciation with Bloomberg Television and the New
real estate, according to a report by tax advi- York Times, is one of the foremost property
sory firm Accreo Taxand. The report found that award competitions in the world, in existence
in Poland, taxes make up a relatively small for more than 15 years.
portion of the final price of real estate transac- CBRE was selected for this “world’s best”
tions, third from the bottom of 23 countries in award over other top-scoring regional winners
Europe surveyed by Accreo Taxand, at about from the Americas, Europe/Africa, Asia/Pacific,
4.28% of the total transaction price, due to rel- Arabia, and the U.K. CBRE was also the winner
atively low income tax in Poland on real estate of the Best Commercial Property Consultancy
sales and equally low real estate tax. The re- award for London, qualifying the company for
port found lighter real estate taxation only in consideration in the overall international award.
Cyprus and Romania. The International Property Awards were deter-

4 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 5
Newsline
mined by an independent panel of judges.
CBRE CEO Brett White said, “Winning this
highly coveted award is a strong endorsement
of our people and platform as well as our ability
to develop innovative solutions that enable our
clients to succeed throughout market cycles.”
Cisco
As many as 60% of office workers and IT spe-
cialists do not need to be physically present at
the office to work efficiently, according to a sur-
vey conducted by Cisco among 2,300 individu-
als in 13 countries. The highest ratios of office
workers ready to work efficiently outside of the
office were in Asia and Latin America, at 97%.
The study also revealed that the freedom to
choose where they work is increasing among
staff, with 13% of the sample indicating that it
may have an impact on job loyalty. Worldwide,
66% of the sample said they would accept a
new job offer with lower pay but more flexible
access to the Internet and online communities.
Spain had the highest percentage (78%), de-
spite the economic crisis in the country.
In other news, Cisco Systems and BMC Soft-
ware have entered into a strategic alliance to
develop and market new solutions for large-
scale multi-tenant cloud computing infrastruc-
tures. Under the alliance, the two companies
are aligning product development roadmaps
and technology architectures to offer worldwide
customers a complete suite of solutions to sim-
plify and automate the delivery of cloud serv-
ices. As part of the alliance, Cisco and BMC an-
nounced the availability of a new cloud solu-
tion, the Integrated Cloud Delivery Platform,
which is designed to meet the requirements of
service providers and large-scale private cloud
computing environments. This new joint solu-
tion helps cloud providers easily deploy end-to-
end cloud services running on a cloud comput-
ing infrastructure that spans data center net-
works, computing systems, storage and appli-
cations. 
Cisco Systems has also announced the re-
sults of the latest Internet Routing in Space
testing, marking the first-ever software up-
grade of an Internet Protocol router aboard a
commercial satellite (above) while in orbit. In
addition, Cisco completed the industry's first
Voice over Internet Protocol call made without
the use of any terrestrial infrastructure to route
the call.
This achievement represents a radical de-
parture from current communications satellite
technology, which relies on ground-based
6 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1
News from AmCham and its members
hubs to convey voice and video signals be-
tween satellites and end users. Benefits of this
new capability include the ability to route
voice, data and video traffic between users
over a single IP network more efficiently, and
with greater cost effectiveness, than is cur-
rently possible over today’s fragmented satel-
lite communications networks. In addition, the
capability to upgrade the software of the Cisco
router and onboard modem from the ground
increases the flexibility of the system to imple-
ment future capabilities and the lifespan of the
communications system.
Cushman & Wakefield
The number of hotel guests in Polish mountain
resorts is expected to grow steadily in the up-
coming years, according to a new forecast
from Cushman & Wakefield, the global real es-
tate advisory firm.
There are now 269 hotels operating in the
Polish mountains, providing 24,180 beds,
which represents over 13% of the country’s
hotel stock and 27% of the total number of
beds offered in lodging establishments in the
region.
“Two- and three-star hotels account for the
largest share of the hotel stock in the Polish
mountains,” said the author of the report,
Michał Kuliński from the Valuation & Advisory
Department of Cushman & Wakefield. “The re-
gion still lacks high-standard schemes, which,
in our opinion, will lead to a rise in demand for
this type of facility.”
The Karkonosze, the Silesian Beskids, the
Żywiec Beskids and the Tatras are the Polish
mountain areas with the most-developed hotel
accommodations and highest occupancy lev-
els. A wide range of additional services, such
as spa and wellness, conference and recre-
ational amenities, as well as the presence of
four- and five-star hotels, are among the
biggest assets of the Polish mountain region,
with growing interest in recreational and sports
facilities. The Bieszczady and the Low Beskids
have the least-developed hospitality market.
Hewlett-Packard
A recent global study by HP concluded that
56% of companies in the U.S. and 38% in Eu-
rope have not undertaken any measures to
counter cyber-attacks, believing they would
not be targeted. However, 78% of companies
in the U.S. and 60% in Europe anticipate major
network communication problems in their
countries as a result of cyber-attacks in the
next two years. Fully 88% of the sample admit-
ted that cyber-attacks are difficult to detect,
while 86% said that their effects are difficult to
remedy quickly. Despite the growing under-
standing of cyber-threats that companies are
exposed to, only 38% of the companies sur-
veyed said they had raised their investment in
software to counter cyber-attacks, while 53%
said their budgets were not big enough for
such expenditures. Based on the results of the
research, HP designed a computer program,
code-named Cybersecurity Readiness Tool, to
measure the level at which companies are
ready to face potential cyber-threats.
KPMG
The market in naming rights for sports facilities
in Poland is growing, according to a report is-
sued by consulting company KPMG. KPMG
found that by 2012 there will be 72 sports are-
nas in Poland, including open-air and indoor fa-
cilities, offering naming rights to sponsors, and
the total annual value of naming rights in Poland
may reach EUR 19 million. KPMG said that 85%
of the total will be generated by stadiums and
15% by indoor convention and sports facilities.
“Similarly to other European countries, nam-
ing rights for sports arenas should be consid-
ered by companies in the finance, telecommuni-
cations and energy sectors,” said KPMG partner
Tomasz Wiśniewski. He added however that in
the case of some sports arenas, sale of naming
rights may face opposition from the public. He
said that while the new National Stadium in War-
saw has the greatest cachet, it is unlikely that
the name will be sold.
In other news, companies in the manufactur-
ing sector in Poland have the highest economic
confidence in the world, according to the latest
edition of the KPMG Pulse Global Business Out-
look Survey. Nearly 65% of manufacturing com-
panies surveyed in Poland expect to increase
their business in 2011, 18% expect to continue
at the same level, and 12% expect a decline.
The optimism ratio measured by KPMG for Pol-
ish companies is 53.2, compared to a median
for all European Union countries of 39.4.
“We have not seen such upbeat attitudes of
Polish companies since the summer of 2007,”
said KPMG partner Leszek Wroński.
The report reveals that 57% of manufacturing
companies in Poland expect to increase their
revenues within the next 12 months, 20% think
they will continue on the same level, and 17%
expect a decline. When it comes to investment
outlays in 2011, 51% of the sample plan to
maintain them at 2010 levels, 25% intend to in-
crease them, and 13% plan cuts. Wroński said,
“Companies anticipate new orders and revenue
growth, but are prepared to use this for further
market expansion to a lesser degree than be-
fore.”
Mamaison La Regina Warsaw
Mamaison Hotel Le Regina Warsaw contributed
to the cookbook Gotuj z Sercem (Cooking from
the Heart), published by NGOs Polish Humanitar-
ian Action (PAH) and Just Cause. “The sale of
the book will support 40,000 hot meals delivered
by PAH to needy children,” said Paweł Oszczyk,
chef of La Rotisserie restaurant at Mamaison
Hotel Le Regina Warsaw. “I selected three
recipes for the book. I hope that those who look
for culinary inspirations will pick up the book and
help the children who are included in the PAH
nutrition program.”
Manpower
Polish employers report conservative hiring
plans for 1Q 2011, according to the Manpower
Employment Outlook Survey released by Man-
power Poland. The Net Employment Outlook, an
indicator of employers’ willingness to hire new
people, stands at +5%, among the most opti-
mistic forecasts among the European countries
surveyed. Of the 750 Polish employers surveyed,
17% anticipate adding to their workforces in the
coming quarter, 12% plan reductions, and 68%
expect no change.
“The Manpower Employment Outlook Survey
data indicates a slowdown of the local labor
market in the first quarter of 2011,” said Iwona
Janas, Country Manager of Manpower Poland.
“Still, we see some reason for optimism, espe-
cially if we compare the results over time. Em-
ployers in the manufacturing sector anticipate
an upbeat hiring pace in the first three months
of the year, and the forecast is considerably
brighter than we saw in much of 2009 and early
2010. Hiring intentions in the transport, storage
and communications sector are at the strongest
levels since the third quarter of 2008. Job seek-
ers in the public and social sector can continu-
ally look forward to solid hiring activity.”
In a quarter-on-quarter comparison, the most
significant decline, of 15 percentage points, is
reported for the agriculture, hunting, forestry
and fishing sectors, while employers in mining
and quarrying report a 12 pp decrease. De-
clines of 11 pp and 10 pp are reported in the
construction sector and the public and social
sector, respectively. Meanwhile, hiring inten-
tions have strengthened in the transport, stor-
age and communication sectors.
Compared with the first quarter of 2010, em-
ployers in five industry sectors report improved
hiring plans. Considerable improvement, of 18
pp, is reported for the manufacturing sector
and for the public and social sector. However,
the employment outlook in five sectors has de-
clined, including restaurants and hotels, where
hiring plans are down by 7 pp.
New Members
Construction and engineering specialist Curb-Tec
Europe (www.curb-tec.pl) has joined AmCham.
The CEO is Chris Hutchinson.
Education, training and executive search company
Dale Carnegie & Associates (www.dale-
carnegie.com.pl) has joined AmCham. The general
manager is Pablo Martinez.
Pittsburgh Glass Works (Poland) (www.pgw-
glass.com), a producer of glass for vehicles, is a
new AmCham member. The European Operations
Manager is William Hill.
Education and training company Right Manage-
ment Poland (www.rightmanagement.pl) has
joined AmCham. The contact person is Agata Dul-
nik, principal consultant.
Staffer (www.staffer.pl), a personnel outsourcing
provider, has joined AmCham. The company is rep-
resented in Poland by the president, Ari Hecht.
Norton Rose
A cross-border corporate team at international
legal practice Norton Rose LLP has advised the
Polish State Treasury on the IPO and listing of
the Warsaw Stock Exchange on its own trading
platform. Trading of WSE shares began on No-
vember 9, 2010.
Market capitalization of the WSE upon listing,
based on the offer price for institutional in-
vestors, was EUR 486 million. The State Treas-
ury, as the selling shareholder, raised EUR 304
million in the offering. The transaction did not
involve offering of new shares by the WSE itself.
Piotr Strawa, head of Norton Rose Piotr
Strawa and Partners LP in Warsaw, said that it
was the second-largest IPO Norton Rose had
recently advised on in Poland. “We advised
Tauron Polska Energia on its listing earlier in the
year,” he said, “and both have been strategi-
cally important transactions for the Polish gov-
ernment. Warsaw now has one of the largest
national stock exchanges in Central & Eastern
Europe and one of the fastest-growing ex-
changes in Europe.”
Orco Property Group
Orco has relaunched its high-rise Złota 44 res-
idential project in central Warsaw, and an-
nounced that the new general contractor that
will resume work on the landmark project is
the Italian consortium Inso/Consorzio Cooper-
ative Costruzioni.
“This project is very important to me and the
entire Orco Property Group,” said Orco CEO
Jean Ott. He explained that Orco had to
freeze construction because of the global eco-
nomic crisis, but now he was personally confi-
dent that the project will be accomplished suc-
cessfully.
Złota 44 had been halted for over a year
due to financing issues and opposition from
neighbors, who succeeded in stripping the
permit issued for the project until it was rein-
stated recently.
PM Group
PM Group acted as contract engineer for a
EUR 36 million sewage modernization project
in Kraków, which was successfully finished in
November 2010. The municipal sewage sys-
tem of Kraków consists of over 14,000 km of
pipes, many of which are located under the
medieval core of the city. Some of the pipes
themselves are as old as 300 years. In 2005
Kraków received an E.U. grant for the project
of EUR 21.5 million, which at that time repre-
sented half of the estimated cost of the proj-
ect.
ProLogis
ProLogis has signed a lease for more than
6,000 sq. m. of modern warehouse space at
ProLogis Park Poznań II with Solid Logistics, a
provider of export and import logistics serv-
ices. Solid Logistics has also extended two ex-
isting leases for 8,500 sq. m. at the same facil-
ity. Solid Logistics now occupies 27,500 sq. m.
of warehouse space at ProLogis distribution
centers in Poznań and Gdańsk.
“We have signed several leases in Poznań
and are seeing an increased level of demand
for this region,” said Dariusz Proniewicz, leas-
ing manager of ProLogis Poland. “Due to the
limited amount of available supply we expect
growth in rents in the short to medium term.”
ProLogis Park Poznań II is a strategically lo-
cated distribution centre comprising seven
buildings and a total of 120,000 sq. m. of mod-
ern warehouse and office space.
Members on the move
Aon Hewitt Poland
Edward Stanoch has been
named managing director and
management board member
of consulting firm Aon Hewitt
Poland. Prior to this nomina-
tion, Stanoch was managing
director and management
board member of Hewitt As-
sociates Sp. z o.o., responsi-
ble for business development
in Poland, Russia and
Ukraine. Stanoch has 15 years of experience in busi-
ness consulting and strategic advisory. He joined
Hewitt in 2002.
Salans
Prof. Aleksander Chłopecki,
a legal advisor specializing in
civil law, capital markets, cor-
porate, commercial, banking
and insurance law, has joined
the law firm Salans in Poland.
Chłopecki is a graduate of the
University of Warsaw and the
University of Bonn. He is presi-
dent of the Arbitration Court at
the Polish Financial Supervision Authority and an in-
dependent member on the supervisory boards of
listed companies. He previously served as Vice
President for Legal Affairs at the former Polish Secu-
rities and Exchange Commission, a management
board member of the National Depository for Securi-
ties, and chairman of the supervisory board of PZU
SA.
Prof. David O’Keeffe has
joined the Global EU Com-
petition Group of Salans as
Senior Counsel. O’Keeffe
specializes in E.U. law, with
particular emphasis on state
aid and public procurement.
He will work primarily in
Brussels. O’Keeffe has ad-
vised national governments
and major international insti-
tutions, such as the E.U. Presidency, the European
Parliament, and the House of Lords, as well as large
multinational corporations. O’Keeffe is Emeritus Pro-
fessor of European Law at University College Lon-
don and has taught at many top universities in Eu-
rope. He speaks English, French, Italian, and Dutch
and is a regular speaker at international confer-
ences. He has written over 200 publications on E.U.
law. He was a member of the European Commis-
sion’s High Level Panel on the Free Movement of
Workers and has handled cases at the European
Court of Justice.
J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 7
Agenda
Intelligence from AmCham and its committees
Outsourcing/High Tech Committee
$ livering electricity for 24 hours, plus a battery
$
$ $
$
$ $
$ $
$ $
On cloud nine
The cloud computing model allows businesses
to hold costs in line with turnover
T
he benefits of cloud computing—the
new model for providing computer serv-
ices where customers access software
and computing power hosted online by the
service provider—were underlined by Michał
Jaworski, national technology officer at Mi-
crosoft Polska, who met with the AmCham
Outsourcing/High Tech Committee in late No-
vember.
According to Jaworski, soon companies
will be able to forget their in-house IT prob-
lems, as all the software infrastructure they
need will come from external providers mak-
ing their servers available via Internet—or, as
they say, in the clouds.
In terms of how server storage space is
used, cloud computing is much more effi-
cient than the first-generation model, where
companies run their own IT infrastructure in-
cluding Internet servers. In this model the en-
ergy efficiency is only 7%. The energy effi-
ciency of the “virtual server” model, which
lets companies lease disc space on a server
hooked up to the Internet, is 40%, Jaworski
said. With the energy efficiency of cloud
computing at 70-80%, it seems this model is
a major step toward trimming the carbon
footprint of the IT industry globally.
The environmental aspect of cloud com-
puting is not the only factor important for
business. Cloud computing allows for pool-
ing resources according to the needs of the
user. A simple PC computer can thus be-
come a powerful computing tool, because all
the computing power and software it takes to
accomplish a task through cloud computing
are executed on the cloud server, while the
8 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1
$
$ 1.5 hours.
$
$ on their own data safety and security.
$
$
$ computing, including legal issues. He said
final result of the action is displayed on the
computer of the actual user. This is especially
important to companies whose businesses
grow and change so rapidly that it is hard for
them to keep up by implementing local IT so-
lutions.
This model also offers location independ-
ence for clients, because cloud applications
can be accessed from any point of the World
Wide Web.
It also offers new business opportunities
for providers of cloud services, due to the
fact that the service is fully measurable.
Clients may be charged for their use of com-
puting processing power or for use of soft-
ware. Microsoft has already rolled out its fa-
mous Office package in a cloud version,
called Office 365 to highlight that the newest
version of the program is available 365 days
a year, 24 hours a day. Another well-known
Microsoft product, its Windows operating
system, will soon be available through a Mi-
crosoft cloud under the name Windows Azur.
Although the benefits of using cloud com-
puting are many, and as a business model it
has been developed for quite a while now,
with such companies as Google paving the
way, there are still impediments holding the
IT industry back from fully embracing cloud
computing. The impediments are many,
ranging from the fear of compromising data
uploaded to the cloud, to legal issues, and
sustainability, security and safety issues.
Jaworski explained that the providers of
cloud services use state-of-the-art technolo-
gies that offer much higher standards of data
security and safety than those that can be im-
plemented by companies whose core busi-
ness is not IT. For instance, Microsoft has two
huge server centers in Europe, where thou-
sands of servers are wired to the network.
The power is delivered by three different sup-
pliers, and in case all three are down, each
center has a power generator capable of de-
support that extends the supply by another
Jaworski said that the content of the
servers can also be moved to another Mi-
crosoft server center, so in the event of a per-
manent loss of energy supply to one server
center no data will be lost.
Jaworski noted that there are still some
companies, such as banks, that prefer to rely
According to Jaworski, the process of mi-
grating from the traditional model of software
and computer use to the clouds will be grad-
ual but inevitable. Cloud computing allows
companies to match their IT expenditures
with their revenue, and does not require up-
front investment in IT to assure computer
support for growing turnover.
Jaworski said that Microsoft is analyzing all
potential issues that may pop up with cloud
that the American approach to cloud comput-
ing and the legal issues surrounding it is
more practical than the approach in the Euro-
pean Union. Jaworski said of the U.S. ap-
proach: “First you try to use the model, and if
legal problems arise you bring lawyers into it.
But you don’t try to anticipate all potential
legal problems that may or may not arise be-
fore you actually see how the whole model
works.”
Apart from legal concerns, cloud comput-
ing may stir up some antagonism from the IT
people within companies, who may not be
enthusiastic about implementing cloud com-
puting, which would inevitably limit their au-
thority over such issues as software updates
and network management—not to mention
putting many of them out of a job.
Mark your calendar
JANUARY 18, 2011
Time: 2:00 P.M.
Event: Defense & Security Committee
meeting with Ludwik Dorn
Place: AmCham Board Room
JANUARY 19, 2011
Time: 9:30 A.M.
Event: Employee & Labor Relations Com-
mittee workshop on the implementation of
Human Capital strategy for business
Place: AmCham Board Room
FEBRUARY 3, 2011
Time: 9:30 A.M.
Event: Employee & Labor Relations Com-
mittee workshop on leadership development
process for high impact
Place: AmCham Board Room
For updates on our events visit:
www.amcham.com.pl
For the AmCham Guide to Committees see inside back cover
Employee & Labor Relations Committee
Zeus mixes with mortals
Poland’s largest government agency, the Social In-
surance Institution, has initiated reforms that should
benefit the business community at large
T
he administrator of Poland’s social in-
surance programs, the Social Insur-
ance Institution (popularly known by its
Olympian acronym ZUS), is set to launch a
new way of dealing with the business sector,
which carries the bulk of the system’s finan-
cial burden. ZUS president Zbigniew Der-
dziuk met with the AmCham Employee &
Labor Relations Committee in December to
discuss how the new approach should help
maintain good communications and bilateral
understanding between businesses and
ZUS, as well as introducing new options for
businesses that may have trouble meeting
their statutory compliance deadlines, while
meeting the expectations of beneficiaries.
“There are three angles at which one can
look at ZUS,” Derdziuk explained: “The client
perspective, the ZUS financial perspective,
and the ZUS development perspective.
These are the three pillars of the new ZUS
strategy.”
When it comes to the financial perspec-
tive, ZUS faces the reality of sourcing
money from over 1.2 million workers who
are self-employed and therefore pay social
insurance for themselves. This requires ef-
ficiency in dealing with each individual
payer. When it comes to big payers, ZUS
may rely on only the 1% of companies in
Poland that employ over 100 people. “The
problem is to match the money source ef-
ficiently, which is about the use of people,
infrastructure and IT systems,” Derdziuk
said. He noted that the development of IT
systems offers the most in terms of mak-
ing ZUS more efficient.
But the question of efficiency will not be
solved by IT alone. ZUS has recently im-
plemented a new management system
that defines every process ZUS executes.
“This helps ZUS officers understand what
exactly needs to be achieved from the per-
spective of ZUS clients,” Derdziuk said.
Although all legs of the reform are im-
portant, the most significant change from
the perspective of the business commu-
nity is going to be the one that Derdziuk
described as dealing with companies who
pay social insurance for their employees.
“Instead of being penalized for not paying
their contributions on time, ZUS will be
open to negotiate deals with them,”
Derdziuk said. This will empower ZUS offi-
cers to set up more acceptable criteria for
companies who are late paying their contri-
butions. “The main reasoning behind this
change is that business is a friend of ZUS,
because if businesses do not pay ZUS fees
there must be a reason why they don’t. A
bankrupt company will not pay social insur-
ance, so it is better to help troubled compa-
nies pay their ZUS fees in a civilized manner
instead of trying to execute the payment re-
gardless of the company’s financial situation.
But each time ZUS agrees for a company to
delay its social insurance contributions, it
amounts to public aid, and ZUS will be
obliged to evaluate the credibility of the
payer with respect to the potential to pay off
the debt. It will be similar to a bank’s evaluat-
ing credit risks of potential clients.”
Derdziuk underlined that the new ZUS
strategy has been developed internally by
key ZUS managers. His team defined 578
processes, from management to operational
and support. Now they are being optimized
and integrated. “The challenge is to devise
More than an image problem: Not only
must the Social Insurance Institution
change its perception of being busi-
ness-unfriendly, but it also needs to im-
plement modern management methods
to achieve its mission.
new, efficient processes instead of finding ex-
cuses for maintaining bad, inefficient prac-
tices,” Derdziuk said.
In order to achieve that goal, ZUS needs to
make more of its content available online. It
also will open a call center. This will be the
first step to measure the reaction of clients
and beneficiaries to the new reform. “We
have to see how effectively it works for our
clients and how effectively our clients can
use it,” Derdziuk said. “Every six months, ap-
proximately, ZUS will upgrade its IT system to
meet the growing demand for online content
accessibility.”
When it comes to the ZUS front office, the
company will measure efficiency and quality
of customer service. It was only recently that
ZUS decided to poll its customers on their
satisfaction with ZUS service. “This is an im-
portant part of the overall ZUS reform strat-
egy, which is aimed at ensuring that all the
reforms improve client satisfaction,” Derdziuk
said. “ZUS does not want to be caught in the
trap of being exclusively focused on the in-
side, measuring the efficiency of its internal
processes without juxtaposing them against
the way the company is viewed from the out-
side.”
ZUS has 43 regional branches, 219 local
inspectorates, and 64 small offices in rural
areas. When the front-desk reform is through,
ZUS clients will enjoy the same procedures
and service standards no matter where they
call into a ZUS office.
Boosting its efficiency also means, for
ZUS, finding new delivery methods for the
money it pays to its beneficiaries. In rural
areas approximately 60% of ZUS beneficiar-
ies have their money hand-delivered by letter
carriers from Poczta Polska, which is about
20 times more expensive than delivery via
bank transfer. While ZUS foots the bill, it tries
to engage private banks in opening free ac-
counts for ZUS beneficiaries. Derdziuk said
that when one bank surveyed its senior citi-
zen customers about the type of account
they would prefer, 27% of respondents said
that online access to their bank account is a
must or they are not interested. But even if it
means some initial financial burden for the
banks to set up new accounts with online ac-
cess, the banks will ultimately benefit from
operating them. Every month ZUS pays PLN
4 billion to senior citizen beneficiaries.
Other cost-cutting measures that ZUS is
taking include cutting its labor force. Accord-
ing to Derdziuk, ZUS idles approximately
1.5% of its entire staff a year. “The cost of
staff is the highest cost for the agency,”
Derdziuk said. “The average per person is
PLN 44,000 a year.”
J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 9
 HOT DATE

Agenda Intelligence from AmCham and its committees

Jan.18.11
Event:Defense & Security Com-
mittee meeting with Ludwik Dorn
Place: AmCham Board Room
Time: 2:00 P.M.

Defense & Security Committee

Saving on defense
company in the world who can make this par-
ticular product.”
Service contracts
Today it is no big deal when an army out-
sources some of its functions to a third-party
Technology is a weapon, but the military needs to commercial company. But when O’Neill took
trim costs wherever it can office in March last year, he realized that over
50% of U.S. Army investments were service
and expand in those niches. “Work in the de-
fense and commercial lines. Unless you work
on a highly classified system where you are
using a technology that was developed for
defense applications, then before you trans-
fer that into the commercial sector you have
to have permission.”
O’Neill noted that he is eyeing the potential
of private software developers in protecting
does not stick something into a child’s eye. “I
think you will always have to have man as the
interlocutor. But there is so much that the au-
tonomous systems can do. It is like having a
GPS in your car. But wouldn’t it be nice, in-
stead of the GPS just telling you where you
are, to get into your car and say, ‘Take me to
my office, and be careful, it is snowing!’
There is no technical reason why you could
and as Assistant Chief of Staff (Ammunition)
with the Danang Support Command in Viet-
nam.) O’Neill said that when he was in the
military the emphasis was on accomplishing
the mission. “If soldiers were killed or we
were hurt, that was considered a part of
being a soldier.” Yet, by the time he became
Assistant Secretary of the Army, this had
changed. The emphasis is to have the sol-

I
n December the AmCham Defense & Se-
curity Committee met with Dr. Malcolm
Ross O’Neill, Assistant Secretary of the
U.S. Army for Acquisition, Logistics and Tech-
nology, who was visiting Poland for talks with
his Polish counterpart, Deputy Minister of De-
fense Marcin Idzik. O’Neill, a former general
as well as a scientist, is the man who must
sign off on all major procurement contracts
entered into by the U.S. Army. He met with
the American business community in Poland
to talk about his priorities for the U.S. Army,
how they influence his acquisition strategies,
and how they should influence the strategies
of Polish high-tech companies interested in
bidding for contracts awarded by the U.S.
Department of Defense.
The show must go on
O’Neill said that his first priority is to support
the ongoing operations of the U.S. Army, cur-
rently active in Afghanistan and Iraq. If there
is a need for the Army to undertake a mission
elsewhere, O’Neill is ready to support that as
well. “We have to take care of our soldiers
and our allies no matter whether they are
Polish, American, British, Canadian or
French,” O’Neill said.
Armored men and women
Another priority is developing new armor for
the soldier of the future. “The twist that I have
added is a decisive advantage for the Ameri-
can soldier,” O’Neill explained. “Right now
the American soldier looks very much like a
soldier from World War I, World War II or Viet-
nam. The only difference is that he has chest
and back protection which covers approxi-
mately 30% of the entire body. Still unpro-
tected is the head, face, arms and legs of the
soldier. That is something I want to change
and we will work on that in the future.”
Affordability
When it comes to the bills, the public pays for
state-of-the-art defense technologies so they
can be used by the military. O’Neill admitted
that taxpayers are used to big numbers, but
expensive equipment can make that a
tremendous burden. “An American fighter
plane, the F-22, is about USD 200 million. We
just cannot afford to pay those kinds of bills.”
One approach is to bridge the gap in un-
derstanding between the military and the de-
fense industry. “The industry builds the
equipment and weapons that the military
was up to. But the armed forces rejected
O’Neill’s offer, arguing that if they took part in
the review they would have to accept invita-
tions from other private defense companies
as well. This attitude meant that none of the
services knew what Lockheed Martin’s capa-
bilities were. In practice this cost money for
both the private company and the public sec-
tor. “Very often we would have a research
program, and the Army would have the same
program funded with Army money,” O’Neill
said.
This experience led O’Neill to revisit the at-
mosphere of secrecy. As head of acquisitions
for the Army, he meets twice a month with in-
dustry representatives. He said he is smart
enough not to reveal government secrets.
“We have been working over the last seven
months with Dr. Ashton B. Carter, Under Sec-
retary of Defense for Acquisition, Technology
& Logistics, trying to find ways to have a
more efficient relationship with the industry,”
O’Neill said. “The first thing is that the indus-
try wants to make sure that the equipment
that we buy is affordable. If you buy a truck
which can go 39 miles per hour for PLN 1
million and you want to get a truck that goes
40 miles per hour for PLN 22 million, it is an
obvious decision that you will buy the slower
truck even though you lose one mile per
hour. So you make a curve of capability ver-
sus cost. The capability will start to come
down as a function of cost. You stop at a cer-
tain point.”
Productivity and competition
Another way of bringing the cost down is to
increase the work efficiency of teams in-
volved in developing key components of
equipment or systems for military use. This
can be achieved by incentivizing key man-
agers. O’Neill gave an example: “A program
manager for a missile defense program was
given a bonus of nearly a million dollars for
making his team work extra time to debug
the software on time so the program was not
derailed. The bonus was worth it, because
the program cost billions of dollars. If you
have the talent and you have the drive and
the support from the management, there is
nothing you can’t do in the industry.”
O’Neill said that this is the best way to
stimulate the effectiveness of companies, es-
pecially new entrants to the market that have
to compete with big market players.
Another way of bringing the costs down for
contracts. The Army paid big fees for differ-
ent services and did not take the opportunity
to review the economic rationale of the con-
tracts. O’Neill decided to change that and in-
troduced managerial supervision of those
contracts. As a result, for instance, the com-
pany that provides drinking water to the U.S.
troops in Afghanistan cut their price to a third
of what it had been.
Reducing bureaucracy
O’Neill understands perfectly well that work-
ing with government may be a frustrating
process for industry, because government is
not nearly as lean. While companies have to
be responsible to their stockholders, unlike
governments, they do not have to be respon-
sible to every man, woman and child in the
country. “As a result we have a lot of reviews
and approvals,” O’Neill explained. “I did a
study on approving justifications for single
contractors where there was no competition.
It took almost six months to get an approval
for awarding business to a company which
did not have competition. That is totally unac-
ceptable.”
Tapping into the supply chain
O’Neill said that the U.S. Army will realign its
acquisition strategies in the direction the
Army is heading, to include a full spectrum of
types of conflicts, from cyberspace to full-
scale war, for which it must be prepared to be
credible.
The transformation of the Army’s acquisi-
tion strategy first and foremost stresses the
importance of strengthening relationships
with the Army’s stakeholders, and that in-
cludes international partners. “It is one of the
reasons why I’m here today,” O’Neill said,
“because you know how powerful Poland is
and how much more powerful it can be. We
certainly want Poland to be on our team.”
He observed that there is no reason Polish
industry cannot start the transition of those
technologies and go into business. As far as
competition on the primary level—coopera-
tion between the Ministry of Defense and Pol-
ish industry—is concerned, it is early for
both. But for Polish companies the issue is to
become very good at science. As O’Neill
pointed out, Dow Corning is one of the
largest chemical companies in the world. “To
the U.S. Defense Department they are always
a subcontractor. We treat them the same as
someone who makes, say, a bearing in a little
the Army systems from cyber-attacks. He
said that good, reliable systems are available
off the shelf from such producers as SAP.
“We are considering use of commercial soft-
ware instead of spending millions of dollars
designing cryptologic security.”
For O’Neill, cyber security is just one
sphere where Polish scientists have potential
they can utilize by cooperating with the U.S.
Army.
The importance of science
In today’s highly technological world the sci-
ence an army has access to has a critical im-
pact on the army’s defense capabilities, now
and in future. “The foundation for the Army is
technological,” O’Neill said. “We have done
about all we can do with tactics and tech-
niques. You attack from the left, you attack
from the right, frontal assault. The American
soldier is bigger, stronger, healthier than he
has ever been before. But the tactics of
Napoleon, Eisenhower, Bradley—we have
done everything we can about it. It is technol-
ogy that will really make the difference in mili-
tary operations.”
Networks
On the Army’s priority list, networks are num-
ber one. “Our Army units are moving from
point A to point B,” O’Neill said, “and while
they are moving they want to be able to cap-
ture information, contact airplanes and allies,
and contact their own units instantaneously
with landlines and satellites. But they have to
do the same thing in places with no landlines
and no wires or no satellites, or places where
satellites only come by every few hours.”
Power and energy
Power and energy is one of the strongest in-
terfaces between the defense establishment
and commercial industry in the U.S. “We
have many energy initiatives in the U.S. today
and some of them translate into defense ap-
plications,” O’Neill said. “We are much more
bound to the environment, which makes en-
ergy very scarce, and we have to bring it with
us. It would be very nice if we could use very
efficient solar cells instead of bringing gener-
ators that run on gasoline.”
Autonomous systems science
In recent decades the U.S. Army has devel-
oped a great fondness for robotics because
robots save people’s lives. “One of my vi-
not have it. But you have to be in control of it. diers come back home. “If today is not a
If the automatic starts speeding, you should good day to fight, we will go back and wait till
be able to put on the brakes.” the time is right, because we don’t want any-
one to die,” O’Neill said. He noted that it
Nanotechnology takes tremendous technology to make this
According to O’Neill the potential of nan- noble cause work in reality. But this is yet an-
otechnologies for the defense sector is un- other area in which the private sector can
matched. “Very small firms do very sophisti- have a significant input. Polish companies
cated projects,” he said. “One produces a are more than welcome to pitch for the busi-
fabric that you can put into your clothes. The ness as well.
fabric has acoustical fibers in it that will am-
plify the sound they get. If you have prob-
lems hearing your partner because you are
standing next to a source of noise, your
clothes will resonate and amplify the desired
sound so you will be able to hear the person
next to you. In more military applications, you
will be able to hear the enemy coughing or
moving through the undergrowth because of
the amplification system that you are wear-
ing.”
Medical technologies
O’Neill said that because of certain cultural
traits associated with the “warrior ethos,” the
defense sector has never before looked at
the potential of medical science for saving
soldiers’ lives. O’Neill is a veteran of 34 years
of active military service, including Vietnam.
(He was commissioned in the U.S. Army as a
Field Artillery Officer in 1962 and served with
the 82nd Airborne Division, as an Advisor
with the 21st Recon Company of the 21st
Army of the Republic of Vietnam Division,
A veteran of 34 years of active military
service, Dr. Malcolm Ross O’Neill re-
tired as a Lieutenant General in the
United States Army following a highly
decorated career. Some highlights of
his career included serving as Direc-
tor of the Ballistic Missile Defense Or-
ganization for the Department of De-
fense, which followed his position as
Deputy Director of the then-Strategic
Defense Initiative Organization
(SDIO); Director of the Army Acquisi-
tion Corps and Deputy for Program
Assessment and International Coop-
eration in the Office of the Assistant
Secretary of the Army for Research,
Development and Acquisition, now
the Office of the ASA(ALT); Com-
mander of the U.S. Army Laboratory
Command; Director of Kinetic Energy

uses,” O’Neill said. “The problem is that the
military does not tell the industry what it really
wants.”
He noted that when he worked for Lock-
heed Martin, he had a large R&D program
which he wanted to review for the military so
that experts in the U.S. Army, Navy and Air
Force would know what Lockheed Martin
the Army is to promote competition between
companies bidding for military business so
they compete on product quality but also on
price. “In the past we had favorite compa-
nies, but it is not the correct thing to do,”
O’Neill said. “There is a law now which says
that if you do not have competition I have to
justify to my management why this is the only
shop with four people, because Dow Corning
does not build tanks, submarines or fighter
planes. Its materials, however, are very valu-
able for us. We must use them. So you don’t
have to be Boeing or Toyota to work with the
Defense Department and make a lot of
money.”
O’Neill said that Polish companies should
find some niches where they are really good
sions is for every soldier to have a robotic
friend who will go into harm’s way before the
soldier does,” O’Neill said. For him the ideal
way for the American military to do their job
would be to have a robot moving in front of
the troops to reconnoiter.
However, O’Neill noted that there is a
moral aspect to it. You have to make sure
there is no flaw in your software so the robot
PHOTO: ROBERT CHOMIK
Weapons at SDIO; Program Manager
(PM) for the Multiple Launch Rocket
System; and Deputy PM for NATO’s
Patriot Management Organization in
Munich; as well as PM for Strategic
Fire Control and Talon Gold at the De-
fense Advanced Research Projects
Agency.

10 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 A M E R I C A N I N V E S T O R 1 1
COVER STORY: Corporate governance
Growth between the ears
creasing sales and revenues. The bottom
line is reflected in Poland’s GDP growth.
But there is a problem with GDP growth
figures: they only measure the money value
of an economy. This can be a deceptive indi-
Rising GDP is nice to
cator when it comes to evaluating the sus-
tainability of business. Not far away from
Poland, Latvia was cranking out impressive
GDP growth of 10% year-on-year in 2005–
have, but to see if it
2008, but now it is in the economic dol-
drums. As Prof. Witold Orłowski from con-
sulting firm PwC puts it, “There are many
examples of countries and individual com-
is sustainable PwC
panies that were growing too fast economi-
cally. Their growth created imbalances in
the economic environment they were part
of.” When the imbalances became too big to
looked behind the
bear for the market, an economic meltdown
came to reduce the gaps.
Polish GDP growth of 1% in 2009 was not
figures to find out if
such a bad thing after all, especially since it
continued into the next year. Another con-
clusion is that there are other indicators of
whether business is sustainable—whether
Polish companies
growth is healthy or not—than money gen-
eration alone.
more than money
have a healthy
According to Orłowski, economic growth for
a company is healthy when the company has
developed five pillars of competency, each of
which is adequately developed to match the
mental approach to
others:
• vision and strategy for the company’s
development
• healthy finances
business
• human resource management
• brand management
• risk management
development
In other words, companies that have all
five of these aspects harmonized in their
economic development should achieve
healthy and sustainable business.
The importance of having a good strategy
J
for development is obvious. Without it a
udging by their contribution to the cre-
company is unable to identify the best ways
ation of the country’s gross domestic
to achieve growth in the company’s value, or
product, Polish companies know a thing
properly weight its long- and short-term
or two about how to do business. In fact,
growth priorities. Healthy finances mean a
with Poland being the only country in the
company’s ability to obtain proper sources
European Union that generated positive
of financing, manage them effectively and
GDP growth in 2009, which continued into
optimize the cost of capital. When it comes
2010, it seems Polish companies can deliver
to HR management what matters is an opti-
good business results under adverse condi-
mally efficient deployment of people, their
tions.
talents and commitment. Brand manage-
Obviously, Polish companies have come a
ment is about having a company that is ac-
long way since the beginning of the free-
cepted and appreciated by the environment
market economy in Poland. With the inflow
it is part of. Risk management is the com-
of foreign direct investment into the coun-
pany’s ability to come up with decisions that
try, they learned to use new production
minimize the downside inherent in the par-
technologies and started to apply modern
ticular business. Since risks cannot be elim-
management techniques, which all con-
inated entirely, risk management is really an
tributed to boosting the efficiency of labor.
on-going strategic decision-making process.
With Poland’s accession to the European
A company without values shared by its
Union, they learned to make their products
management and employees would be a
compete with those made in other coun-
house of cards, prone to collapse at any
tries, mostly by lower pricing made possible
shakeup. That is why atop of the five com-
by relatively lower wages in Poland than in
petencies come values, in four different cat-
Western Europe. This could only lead to in-
egories:
12 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1
• the company’s goals
• the way the company treats its employ-
ees
• the goals of the company’s owners
• corporate social responsibility
The first category, the company’s goals,
signifies the ability of a company to offer
harmonious development in sync with the
company’s stakeholders. The way the com-
pany treats its employees is significant be-
cause we live in a world in which a com-
pany’s value will not be realized without the
engagement of its employees in upholding
the value. In turn, for a healthy company the
goals of its owners (i.e. shareholders) have
to be in line with the goals and interests of
all the other stakeholders, especially when it
comes to finding a solution to the dilemma
of short-term goals versus long-term goals.
In terms of corporate social responsibility,
only a company that realizes that it has to
bear responsibility for the negative aspects
of its business that affect the public at large,
or a specific community or environment,
can expect to be appreciated as a part of the
society.
how far can we see?
In late 2010 PwC undertook a pioneering re-
search project to evaluate Polish companies
to see where they stood in terms of the five
healthy growth areas and four values identi-
fied above. Survey responses were analyzed
by a group of experts chosen by PwC in the
relevant fields. The whole project rested on
the principle that the answers would reveal
if the respondents knew what they were
talking about or not. They were then graded
on a scale from 1 to 10 accordingly. For in-
stance, for the question “Do you have a risk
management system in your company?” if
the answer was “No, we don’t need one,”
that scored a “0” because it revealed com-
plete ignorance of the problem. If the an-
swer to this question was “Yes, we have a
system and we use it every day,” that scored
the highest because it indicated not only
that the company knows about the impor-
tance of risk management in theory but also
practices it. An answer such as “We don’t
have a risk management system but we are
working to implement one soon” scored
somewhere in the middle.
As noted by Orłowski, the author of the
study, the idea behind it was not to find out
the real status of Polish companies, but what
is in their heads. PwC did not try to verify
the answers against the reality of the com-
pany. It instead measured the substance of
the answers against the problems they re-
ferred to. Another example: the survey in-
cluded a question about whether or not a
company has substitute management in
place, in case the person who runs the com-
pany on a daily basis is absent for a few
months. Answers such as “No, because our
CEO would never take such a long holiday”
got low scores. Answers such as “Of course
we do” got top scores, and answers like “No,
J A N UA R Y 2 0 1 1
Toto, we’re not
in Kansas anymore...
By Paul Fogo
A
merican investment in Poland
since 1989 recently passed the
milestone of USD 20 billion.
Today U.S.-based companies employ di-
rectly more than 180,000 Poles, and indi-
rectly another 180,000 in cooperation with
locally owned companies. By far the
largest concentration of investment is in
the automotive sector, followed by bank-
ing, metals, electronics, food processing,
white goods, logistics, energy and IT. In
addition, American companies are se-
lecting Poland with increasing frequency
to locate their global business process-
ing and outsourcing centers.
The continuing growth and profitability
of American investment in Poland is tes-
tament to the improving business envi-
ronment in Poland through more than 20
years of political and legal reform since
the Poles overthrew communism in Cen-
tral Europe. But the transformation of
Poland to a free-market economy should
not be misconstrued to mean that the
rules of the game are identical to Ameri-
can practice and custom. While the basic
concepts of the economy are similar,
American investors need to be aware that
Poland’s version of a free market includes
a European and socialist bent. The differ-
ences, while appearing minor on the sur-
face, do impact on the day-to-day opera-
tions of businesses in Poland, whether
foreign or locally owned. Below is an
overview of the most significant differ-
ences every investor should be aware of
when establishing operations in Poland.
Management board liability
Individual members of a company’s man-
agement board may be held personally
liable for the debts of the company in cer-
tain circumstances.
In the case of unpaid corporate taxes,
individual members of the management
board of a joint-stock company (SA) or a
limited-liability company (sp. z o.o.) may
be held personally liable for tax arrears if
the assets of the company are insufficient
to satisfy the tax arrears and the man-
agement board members failed to file for
bankruptcy in the required time (gener-
ally, within 14 days after a company be-
comes insolvent). In egregious cases, in-
dividual members of a company’s man-
agement board may be imprisoned for up
to 5 years for non-payment of corporate
taxes. The deadline to file year-end cor-
AMERICAN INVESTOR 13
COVER STORY: Corporate governance
porate tax declarations is March 31 of the
following year.
Similarly, members of the management
board of a limited-liability company may
also be held personally liable for the com-
pany’s debts to third-party creditors, in-
cluding unpaid wages, if the members of
the management board fail to place the
company in bankruptcy by the required
time.
Taxes
American investments in Poland are sub-
ject to the tax treaty between Poland and
the United States. Generally, the treaty
benefits U.S. investors and enables them
to offset their tax liability in the United
States by the amount of taxes paid in
Poland (and vice versa).
VAT, however, is another story. VAT,
which has just risen to 23% for most
goods and services in Poland, is due and
payable to the tax office by the 25th of the
month following issuance of an invoice,
regardless of whether the invoice has ac-
tually been paid. In other words, business
owners may be required to pay VAT to the
Polish Treasury in advance of payment.
The obvious disadvantage to business is
the negative impact on a company’s cash
flow this requirement creates if payment
is made late or not at all.
Employee rights
Influenced by European tradition and a
holdover from the Soviet era, employees
enjoy greater protection in Poland than in
the United States. Group layoffs are reg-
ulated, as are individual redundancies. In
order to implement a group layoff, gener-
ally understood to mean firing at least ten
employees in a company having up to
100 employees or 10% or more of a
larger company’s workforce, an employer
must follow a set of procedures, includ-
ing advance consultation with the em-
ployees’ union in an effort to reach an
agreed way forward to realize the
planned layoff, payment of up to 3
months’ severance, depending on the
length of employment, and an obligation
to rehire the employees if and when the
fortunes of the company improve. The
same requirements apply to firing an in-
dividual employee for reasons not asso-
ciated with the employee’s individual per-
formance. Moreover, litigation by fired
employees is commonplace in Poland.
Additional restrictions apply to layoffs
of employees by a company located in a
Special Economic Zone. In exchange for
obtaining tax breaks and incentives to lo-
cate in a Special Economic Zone, the em-
ployer has most likely agreed to maintain
a certain level of employment over a de-
fined period. Any reduction in employ-
ment below this floor may very well con-
stitute a breach of the investor’s agree-
ment with the local authorities, resulting
14 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1
but we are thinking about implementing
such a system” scored somewhere in be-
tween.
Report card
The study culminated in a report entitled
“Healthy Development: Report on the De-
velopment of Polish Companies.” According
to the report, the average Polish company
has a growing understanding of the impor-
tance of such areas as risk management,
brand management and human resource
management. Its weakness lies in the area of
vision and strategy development for the
company, and a lack of understanding of
corporate social responsibility. PwC’s ex-
perts graded the competencies of the com-
panies surveyed in the five areas identified
as crucial for healthy development. The av-
erage score for vision and strategy for the
company’s development was 5.5 out of 10,
healthy finances 5.7, human resources man-
agement 5.7, brand management 6.0 and
risk management 6.2.
As Orłowski summed up the findings:
“The strength of each field of competency
is mediocre.”
Vision and strategy
The competencies of Polish companies ap-
pear to be weakest in the area of creating a
vision and strategy for the company’s devel-
opment. The answers given by the sample
companies came in at an average of 5.5, the
lowest of all five areas of competency inves-
tigated by PwC. This does not mean that
Polish companies are not ambitious. A sig-
nificant number of the sample said that
within the next five years they either plan to
have their company’s shares listed on the
stock exchange (16%) or bring in an institu-
tional investor (7%). Acquisition was indi-
cated as a way to grow by 22% of the sample,
greenfield investment 11% and consolida-
tion 6%. But 61% of the sample said they
were bound by the limits of their business
development.
"The ability to form a strategy for a company’s
development is the weakest area of compe-
tency. Most companies prefer short-term
thinking."
In their analysis of markets, 25% of the
sample rely on information in the public do-
main, while 33% use their own market intel-
ligence experts or hire external experts. An-
other 33% rely on their own “market intu-
ition,” while 11% do not bother with such
activities at all. “The ability to form a strat-
egy for a company’s development is, beyond
any doubt, the weakest area of competency,”
Orłowski said. “There were different ques-
tions penetrating this area, and all answers
showed that it is a weakness. Most compa-
nies prefer short-term thinking.” the sample appeared to have some HR de- surveys at all. in forfeiture of tax breaks and incentives
velopment strategy, but only at an informal Over 1/3 of the sample said they study previously received.
healthy finances level. their brand’s perception, including 15% Finally, American managers should be
Financial competencies scored 5.7 out of 10, Interestingly, 53% of the sample said their who do so on a regular basis. Only 6% of the aware that employees are entitled to
which indicates that most of the sample expenditures on HR development (training sample said they see no need for such moni- more generous parental leave in Poland
enjoy a stable financial situation. However, and the like) in 2010 remained at the 2009 toring, and 2% admitted they do nothing at than in the United States. At present a fe-
20% of the sample said their cash flow may level, and 12% said it decreased. all in this regard. Most companies (56%) male employee is entitled to up to 22
be in jeopardy, and 6% of the sample said When it comes to wage and motivation adopt a middle-of-the road policy, conduct- weeks of paid maternity leave, as well as
late payments may lead them to bankruptcy. systems, most of the sample said they were ing actions to improve their image but not additional rights that include the possibil-
PwC experts say this is a significant im- happy with their existing ones, with 20% conducting research on how the company is ity to take unpaid leave for up to 3 years.
provement over 2009, when the financial cri- saying they did not see any need to review perceived. In general, Polish companies are Similar rights may also be exercised by a
sis peaked. It also means that many compa- them. Others, 40% of the sample, are re- aware of the importance of the company’s male employee in certain circumstances.
nies have implemented different processes viewing their wage and motivation systems, reputation for business and are very prag-
to optimize turnover management, or have including 6% who are using external experts matic about it. However, they are willing to Work and residency permits
put more strict regimes in place to evaluate to do so. risk tarnishing their image by getting in- American managers, employees and en-
the solvency of their customers. Having wit- volved in activities that would not be well- trepreneurs are all subject to Poland’s
nessed the global financial meltdown in Brand management received by the media or the public but regime of work and residency permits. A
2009, most companies are aware of the im- In this category the median mark for the would generate short-term benefits. In the work permit is usually issued for one year,
portance of monitoring cash flow to secure sample was 6.0. Regular client-satisfaction case of a threat to their public relations, as are residency permits. Failure to obtain
healthy business development. surveys were valued highly by 67% of the 36% of the sample would conduct a long- the required work permit may in certain
When looking for funding, companies are sample. While companies seem to care term analysis of the impact on their busi- cases result in the imposition of a fine on
most likely to rely on bank loans (35% of the about what the public thinks of them, they ness, 19% would assess the impact under a the employer and expulsion of the Amer-
sample), 25% use financial institutions that don’t care as much about what their own current cost/benefit analysis, while 13% ican from Poland. The procedures to ob-
offer leasing or other financial tools, while employees think, with only 20% of the sam- would factor in the PR spin when looking at tain the required permits are cumber-
only 15% resort to external experts, and an- ple saying they run regular worker-satisfac- all financial aspects. Only 33% of the sample some and time-consuming, and have led
other 15% of the sample said that an IPO or tion surveys. Over 30% of the sample said said they would not enter into any situation to the creation of a cottage industry in as-
financial investors are the way they intend to they know what their workers think about that could potentially damage their image sisting American and other foreign na-
raise capital going forward. them and therefore do not conduct such externally. tionals from outside the European Union
surveys, and 10% said they do not need such When it comes to business ethics, the to obtain such permits.
human resources management
PwC evaluated the competency of Polish
companies in human resource management
at 5.7 out of 10. Most companies in the sam-
ple reflected in their answers a uniform un-
derstanding of the role of HR departments:
33% indicated they are strategic partners for
the company’s management board, but an-
other 33% said HR departments deal exclu-
sively with issues of workforce administra-
tion (counting days off of individual workers
and the like) and payroll. For 20% of the
sample, HR departments are stand-alone
company units charged with executing tasks
appointed by the company’s management
board.
As many as 40% of the sample said they
perceive human capital as a strategic issue
for the organization. Those companies have
developed detailed plans for workforce de-
velopment and retention. At the same time,
40% of the sample said they do not have
such plans and limit their HR activities to
running employee training according to a
predefined schedule, and 21% said they
raise their employees’ skills only when there
is a clear need to do so. Only 20% of the
sample appeared to have a formal HR strat-
egy in place that is coordinated with their
business development strategy. Over 50% of
COVER STORY: Corporate governance
Product warranties
Product warranties are commonplace in
both the United States and Poland. In
Poland, however, warranties are man-
dated by law. In general, consumer prod-
ucts include a two-year mandatory war-
ranty. Manufacturers are free to offer ex-
tended warranties. Minimum warranty pe-
riods apply in the construction industry as
well, and vary depending on the type and
scope of construction. Merchandise pur-
chased via the Internet includes an ex-
tended right of return beyond that pro-
vided for merchandise purchased in a tra-
ditional store.
Real property
The purchase of real property in Poland
by an American or other non-E.U. citizen
may be subject to approval by the Min-
istry of the Interior. In general an Ameri-
can manager delegated to Poland is free
to purchase an apartment as his or her
primary residence without restriction. Re-
strictions do apply, however, in the case
of a second home, land exceeding a cer-
tain area, or property located along
Poland’s borders.
Court system
In comparison to Poland, Americans are
a litigious bunch. American investors
should note, however, that Poland’s legal
system is based on a civil-law approach,
as opposed to a common-law approach.
In other words, cases are tried based
upon statutory law. Generally speaking, a
Polish judge relies on the text of the law or
regulation in deciding a case, and not on
the precedent from another court that ad-
judicated a similar point of law earlier.
With this in mind, an American investor
should think twice before resorting to a
Polish court to resolve a dispute quickly.
Alternative solutions exist, such as the in-
clusion of arbitration clauses and provi-
sions for liquidated damages within
agreements.
Despite these differences in the legal
approach to developing a free-market
economy in Poland, American investment
in Poland continues to grow, as docu-
mented by the recent report by KPMG in
cooperation with the American Chamber
of Commerce in Poland. American for-
eign direct investment now ranks 5th in
Poland, and by all accounts should con-
tinue to increase. As evidenced by the
track record of American investors to date
in Poland, the key to success in Poland is
first to identify the differences that do exist
between the U.S. and Polish approaches
to a free market, and once they are iden-
tified, to adapt accordingly in order to
avoid potential pitfalls and liability.
The author is a U.S. attorney with the law
firm of Miller Canfield and a member of
the AmCham Board.
16 AMERICAN INVESTOR J A N UA R Y 2 0 1 1
survey revealed that Polish companies are
very optimistic. Half of the sample said that
if unethical behavior is spotted at a lower
level in the company structure, they would
be able to get this information up to the
higher echelons of corporate management.
Approximately 25% of the sample said their
companies have open, transparent and ef-
fective policies for enforcing ethical behav-
ior which do not require the involvement of
high-level managers. On the other end of
the spectrum was the 6% of the sample who
said that lower-level unethical behavior
would not be reported higher up the corpo-
rate hierarchy, and another 6% said they
Today’s company has become less hierarchi-
cal, and the distance between the subordi-
nates and their bosses has shrunk, which
boosts internal communications and therefore
creates a more supportive atmosphere to com-
municate instances of unethical behavior.
were unable to predict what would happen
under such circumstances in their own
companies.
Prof. Orłowski stresses that brand man-
agement has undergone significant im-
provement over recent years in Poland.
“Only a few years ago many companies un-
derstood brand management as having their
lawyers silence unhappy customers,” he
said. “This has changed significantly.
Today’s company has become less hierarchi-
cal, and the distance between the subordi-
nates and their bosses has shrunk, which
boosts internal communications and there-
fore creates a more supportive atmosphere
to communicate instances of unethical be-
havior.”
Risk management
The competency of risk management scored
a median 6.2 out of 10 for the sample, which
was the highest median result in all five cat-
egories. This is a good average result, given
that 64% of the sample said they do not have
any formal risk management system in place
and only 5% said they are considering im-
plementing one in the future.
The downside continues. For 35% of the
sample, losing one of their top three cus-
tomers would lead to severe business conse-
quences, and for 2% it would mean insol-
vency.
Polish companies have a much better un-
derstanding of the importance of risk man-
agement when they deal with financial prod-
ucts. However, only 15% of the sample
would outsource risk evaluation of the prod-
ucts they are interested in to external spe-
cialists, while 56% of the sample said they
do this on their own.
When it comes to internal risk manage-
ment, 59% of the sample have their own
control systems in place, and 30% said they
rely only on informal structures.
Values that make firms strong
According to Orłowski, where Polish compa-
nies have huge room for improvement is the
area of the values they uphold. “Companies’
attitudes toward their employees are one
weak point,” he said. “Many companies also
define their goals in a way that has a nega-
tive impact on the companies themselves.”
Orłowski also points to the relatively weak
understanding of corporate social responsi-
bility. Many companies fail to notice that
they are not in business solely for the bene-
fit of the shareholders, or even just for the
benefit of both shareholders and workers,
but that a business is a part of a wider envi-
ronment to which it has responsibilities. As
Orłowski said, “CSR was the area with the
weakest scoring on the principles of healthy
business development.”
only the first step
With all the shortcomings of a pioneering
idea, the PwC survey sought to find out how
healthy Polish companies are in their busi-
ness growth. It is hard to overestimate the
importance of this issue following the re-
cent global crisis.
The survey was compiled by PwC based
on data submitted by 70 companies, 41% of
which were classified as small, 39%
medium-sized and 20% large. Of the 70,
40% are publicly traded. For Prof. Orłowski,
the study is a success if some valuable con-
clusions can be drawn from the responses:
“We wanted to see in what terms companies
think about being in business. If the an-
swers were in line with the theory, it at least
means that the company knows what is right
when it comes to business growth.”
The survey was just the first step in a
larger project. As Orłowski explained, “We
will reach deeper into having more sophisti-
cated measurement methods, which will let
companies themselves see where they stand
on the five areas of competencies and the
four sets of values that together make up
healthy business development.”
Tomasz Ćwiok
AMCHAM: General Meeting
Befriend the Friendly State
American companies in Poland offer a valuable
perspective on government that works
T
he Anglo-American model of legal
solutions for business is an inspira-
tion for Polish lawmakers in the cur-
rent government coalition led by the Civic
Platform party, said MP Adam Szejnfeld, the
keynote speaker at the AmCham Annual
General Meeting in December.
Szejnfeld, the newly appointed head of
the “Friendly State” parliamentary commit-
tee, which is charged with getting rid of bu-
reaucratic impediments to business, com-
plemented AmCham on its input of solu-
tions for the committee when it was working
on a set of acts collectively known as the En-
trepreneurship Package. “AmCham not only
submitted its proposals of legal solutions to
the committee, but also offered valuable ad-
vice on other regulations reviewed by the
committee,” Szejnfeld said.
For Szejnfeld, ideas submitted by Ameri-
can companies are of special value because
the U.S. is a country that has successfully
made the most out of merging public and
private spheres via public-private partner-
ship programs, where the business expertise
and entrepreneurship acumen of the private
sector are applied to meet the needs of local
and regional communities, to the mutual
benefit of both. “We tried to pattern many
solutions that we adopted in our Public-Pri-
vate Partnership Act on models applied suc-
cessfully in the U.S.,” Szejnfeld said. “I’m
glad to conclude that in a legal environment
that stems from the principles of Continen-
tal law, these Anglo-Saxon solutions work as
well.”
He noted that the PPP Act has already
borne fruit, although much more is antici-
pated by the government. “So far, a total of
PLN 1.5 billion has been invested in PPP
have their say in extending or limiting the
responsibilities of either side in any other
way than is agreed by the parties. In other
words, the terms on which PPP contracts
can be entered into are solely to be decided
by the parties to each individual project.
This will allow the private sector to enter
into long-term, fruitful cooperation pro-
grams with the public sector.”
projects in Poland,” Szejnfeld said. “In its
Business-friendly bureaucrats?
financial scope, one may say it is a humble
For Szejnfeld, legal solutions that are not, by
beginning, but we should also be happy that
default, hostile to business and entrepre-
apparently the act is making a real differ-
neurs, but on the contrary take their needs
ence.”
for granted, is only one leg of a truly busi-
And the act has huge potential. “Poland is
the largest building site in the European
ness-friendly administration. Another part
of the balance is civil servants and adminis-
Union,” as Szejnfeld pointed out, “with
projects estimated at over EUR 100 billion.
tration officials whose understanding of
Thousands of new investment projects will
business requirements and willingness to
take place in Poland in the years to come. A
work with business and support business in
their areas of competence are not dwarfed
major portion of those investment projects
may be carried out under the PPP legisla-
by the red tape they cannot avoid. “We are
tion. There are a lot of opportunities here,
trying to change the reality there as well,”
he explained, “and resort to solutions that
but what we lack is experience and best-
you may know from the U.S. and other
practice guidelines. I know, however, that a
countries you do business in.” He noted
huge segment of the public administration,
that the reason lawmakers in Poland look at
especially in local government, is open to
different solutions in different countries, in-
PPP and is willing to apply it in practice.”
cluding the U.S., is that their goal is to cre-
Szejnfeld said that he strongly recom-
ate the legal basis for a truly modern and ef-
mends PPP to the private sector as well:
ficient administration. “We are looking at
“PPP projects create long-lasting jobs. We
solutions in many different countries that
know of examples (not in Poland) of PPP
delivered results and worked for them.”
projects being undertaken for a span of 70
or even 100 years.”
Szejnfeld noted that in PPP, the sides of
the deal are free to set up the
conditions for their coopera- Adam Szejnfeld encour-
tion that best suit their roles. ages commercial investors
“The PPP Act is the first act to take the opportunity in
in Poland that includes no public-private partnership
provisions that would explic- projects as they
itly prohibit either side from offer steady busi-
resorting to certain legal solu- ness for many years
tions, nor require either side to come
to use certain solutions,” he
explained. “There are no pro-
visions allowing government
ministers or other agencies to
J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 17
AmCham General Meeting

closer to the u.S.

The need for a broader Polish-American
business base is, for Szejnfeld, a must-
have. This not only involves more U.S. in-
vestment in Poland, but more Polish firms
into the new piece of legislation. “It is my
philosophy to involve in the legislative
process those whom the legislation in ques-
tion affects,” Szejnfeld explained. He added
that the input from AmCham member com-
changing the principles at the foundation of
the state in its dealings with the private sec-
tor.”

Rationalizing tax regimes

AmCham Membership Directory 2011
getting involved in business in the U.S. as panies is invaluable in this legislative work: The rules under which companies are re-
well. Szejnfeld praised AmCham for its “It is you who should single out the regula- quired to pay certain taxes are also in the
initiative in creating a lobbying organiza- tions that impede you in the process of sights of the Friendly State committee. Most
tion, the Pro-Polska Coalition, with the
mission of promoting Polish business in
pitching for good public business.” significant of these is the requirement to
pay VAT on goods and services by a certain Corporate members
the U.S. One of the main impacts of Pro- cutting administrative costs deadline regardless of whether the remitter Alphabetical list of AmCham corporate members, as of December 31, 2010.
Polska is that it delivered a stimulus for A huge cost item of many investment has been paid by the purchaser. Under the Company Name Person in charge Position Company website
lawmakers in the Parliament to write a bill processes in Poland is the obligation for the current regulations, companies have to pay 1 3M POLAND Sp. z o.o. Claude Richard General Director www.3m.com.pl
setting the ground rules for state aid to investor to obtain various types of certifi- VAT once goods and services are invoiced, A
2 ABBOTT LABORATORIES POLAND Sp. z o.o. Jarosław Oleszczuk General Manager www.abbott.pl
help Polish companies promote their cates from different authorities that merely whether or not the invoice has been paid. 3 ACCREO TAXAND Sp. z o.o. Jarosław Antosik Management Board Member www.taxand.pl
goods and services in the U.S. and other state what the investor already knows or can “I’m doing a study on different aspects of 4 ACE EUROPEAN GROUP Ltd, Branch in Poland Przemysław Owczarek Director www.aceeuropeangroup.com
foreign markets. “For several weeks, the easily document without bothering other VAT regulations and other tax regulations as 5 ACXIOM POLSKA Sp. z o.o. Agata Szeliga Staszkiewicz Member of the Board www.acxiom.pl
6 ADECCO POLAND Sp. z o.o. Anna Wicha Country Manager www.adecco.pl
legislators on the Friendly State commit- authorities. The cost in obtaining needless to their feasibility from a business stand- 7 ADVENT INTERNATIONAL Sp. z o.o. Monika Morali Efinowicz General Director www.adventinternational.pl
tee have been consulting representatives certificates is not so much the fees involved point,” Szejnfeld said. “I would like to have 8 AECOM Sp. z o.o. Paweł Fert Country Manager www.aecom.com
of the private sector from different trade as the time and effort. The tradition of re- a draft of legislation making tax obligations 9 AGRI PLUS S.A. GROUP Louis Cerdan Ibanez President www.agriplus.com.pl
organizations about this,” Szejnfeld told quiring certificates is strong in Poland. for business feasible in Parliament in 2011.” 10 AGS Warsaw Antoine Duquesnay Polish Branch Manager www.ags-worldwide-movers.com
11 AIG/LINCOLN POLSKA Sp. z o.o. Brian D. Patterson Managing Partner www.aiglincoln.com.pl
AmCham members. He added that the co- Sometimes in order to have a certificate is- 12 AIR PRODUCTS Sp z o.o. Piotr Wieczorek Member of the Board www.airproducts.com.pl
operation has been effective. “It is a great sued from one authority, the investor first Reforming reformers 13 ALCATEL-LUCENT POLSKA S.A. Andrzej Dulka President of the Board www.alcatel-lucent.pl
14 ALVAREZ & MARSAL POLAND Sp. z o.o. Thomas Kolaja Member of the Board www.alvarezandmarsal.com
example of how politicians and business- must obtain a certificate from another. It is The Friendly State committee has been
15 AMERICAN EXPRESS POLAND S.A. Zbigniew Filipowicz Country Manager www.americanexpress.pl
people can work together for the benefit of also not clear how much time different au- around for three years—long enough to look 16 AMERICAN SCHOOL OF WARSAW Tony Gerlicz Director www.asw.waw.pl
the public at large. I hope that a draft of thorities have to issue each certificate. into its own efficiency and evaluate certain 17 AMGEN Sp. z o.o. Krzysztof Adamcewicz Corporate Affairs Director www.amgen.com
18 AMREST Sp. z o.o. Henry McGovern President, CEO www.amrest.eu
the bill will be ready for submission to the While some do so on the spot, based on an approaches to lawmaking. According to Sze- 19 AMROP, MMA I PARTNERZY Sp. z o.o. Rafał Andrzejewski Partner www.amrop.pl
Parliament next year.” oral or brief written request, others hide be- jnfeld, it could have done much better had it 20 AMWAY BUSINESS CENTRE-EUROPE Sp. z o.o. Przemysław Siuda General Manager www.amway.com
hind red tape and are not forthcoming. consistently followed up on the legislation it 21 AMWAY Polska Leszek Kręcielewski General Director www.amway.pl
22 ANIMEX Sp. z o.o. Andrzej Pawelczak PR Director www.animex.pl
mass deregulation According to the experts from the proposed, instead of letting other govern- 23 APCO WORLDWIDE Sp. z o.o. Tony Housh Senior Counselor www.apcoworldwide.com
Groundbreaking legislation from the Friendly State committee, this certificate- ment ministries handle the rest of the leg- 24 APOLLO-RIDA POLAND Sp. z o.o. David Mitzner President www.apollorida.com.pl
25 ARUP Andrzej Sitko Director www.arup.com
Friendly State committee that will have a crazed culture should be replaced by an af- islative process. Szejnfeld said that under 26 AVAYA POLAND Sp. z o.o. Marcin Dziedzic Country Leader Poland www.avaya.com
27 AVIS Radosław Lesiak Vice President www.avis.pl
28 AVON COSMETICS POLSKA Sp. z o.o. Dariusz Dzięcioł Senior Manager www.avon.com.pl

“My intention is to have an impact on the laws that have an B

29 BAE SYSTEMS (POLAND) Sp. z o.o. David Burgess Managing Director www.baesystems.com

impact on the system.” 30

31
32
Baker & McKenzie Gruszczyński i Wspólnicy
BANK BPH SA
BANK HANDLOWY W WARSZAWIE SA
Jur Gruszczyński
Richard Gaskin
Sławomir S. Sikora
Managing Partner
President
President, CEO
www.bakernet.com
www.bph.pl
www.citihandlowy.pl
33 BANK POLSKA KASA OPIEKI S.A. Andrzej Kopyrski Vice President www.pekao.com.pl
34 BANK ZACHODNI WBK S.A. Mateusz Morawiecki President www.english.bzwbk.pl
permanent impact on the reality of doing firmation culture, where the authorities his chairmanship, the committee will not let 35 BANKOMAT 24/EURONET Sp. z o.o. Marek Szafirski President www.euronetworldwide.com
business in Poland is yet to come. Code- could rely on a formal statement issued by the legislation it initiates “evaporate.” 36 BASELL ORLEN POLYOLEFINS Sp. z o.o. Paul Augustowski President, CEO www.basellorlen.pl
37 BAXTER POLAND Sp. z o.o. Paweł Żelewski General Manager www.baxter.com
named the “Deregulation Act,” it was sub- the applicant itself. The administration Another necessary reform for the com- 38 BIS INDUSTRIETECHNIK Polska Sp. z o.o. Wieslaw Kempa Managing Director www.bis.bilfinger.com
mitted to the Parliament as a government- would be able to review the truth of the mittee is in the way it evaluates the impor- 39 BMW POLSKA Sp. z o.o. Andreas Biehler Managing Director www.bmw.pl
40 BOEING INTERNATIONAL CORPORATION Henryka Bochniarz President, CEE www.boeing.com
sponsored bill in December. The para- statement, and if it were inaccurate the ap- tance for business of the legal problems it 41 BOSE Sp. z o.o. Witold Lisowski General Manager www.bose.pl
mount importance of the bill is that in one plicant would bear the consequences of handles. According to Szejnfeld, in the past 42 BOSTON CONSULTING GROUP Sp. z o.o. Wojciech Sass Partner www.bcg.com.pl
sweeping act it would repeal nearly 100 making a false statement to the public au- the committee got involved in tinkering with 43 BOSTON SCIENTIFIC POLSKA Sp. z o.o. Marcin Gołębicki Regional Director www.bsci.com
44 BOVIS LEND LEASE Sp. z o.o. Artur Dziubak Business Development Manager www.bovislendlease.com
earlier acts that have a negative impact on thorities. minor acts, and even if they had some nega- 45 BP POLSKA Sp. z o.o. Jerzy Brniak Country President www.bp.pl
the development of business in Poland. “In Szejnfeld said it is his ambition to make tive impact on business, the improvements 46 BPI POLSKA Sp. z o.o. Michał Kurtyka President www.bpi-group.com
47 BRAND NATURE ACCESS Sp. z o.o. Anna Kryszczyszyn Deputy Managing Director www.bna.pl
one legislative sweep we will stamp out all the same principle a standard for business did not mark any significant improvement of 48 BRISTOL–MYERS SQUIBB POLSKA Sp. z o.o. Peter Koetsier President www.b-ms.pl
those barriers to business,” Szejnfeld ex- in all dealings with bureaucracy. If, for ex- the legal system for business as a whole. 49 BROWAR NAMYSŁÓW Sp. z o.o. Ryan Gostomski Chairman of the Board www.browarnamyslow.com.pl
plained, “instead of trying to doctor the ample, a company produces documents “My intention is to have an impact on the 50 BROWN-FORMAN POLSKA Sp. z o.o. Andrzej Janota Managing Director n/a
nearly 100 individual acts.” showing it has paid the social insurance laws that have an impact on the system,” C
51 C.H. ROBINSON POLAND Sp. z o.o. Joseph Kozlak Branch Manager www.chreurope.com
But repealing all of the laws will not au- (ZUS) contributions for its employees on Szejnfeld said. “But to be successful, the 52 CA Sp. z o.o. Michał Furman Industry Solutions Director www.ca.com
tomatically create a much better legal en- time for a given period, the authority that Friendly State committee is not enough. In- 53 CAN PACK S.A. Małgorzata Podrecka Legal Counsel www.canpack.com.pl
vironment for doing business in Poland. needs to ascertain this fact would be re- volvement of strong social partners, includ- 54 CAPGEMINI POLSKA Sp. z o.o. Frank Wagenbauer CEO www.pl.capgemini.com
Some acts, such as the Public Procure- quired to accept the company’s statement or ing business organizations, is necessary.” 55 CARTOON PLANET S.A. Samuel Washburn President www.cartoonplanet.pl
56 CATERPILLAR FINANCIAL SERVICES POLAND Jarosław Myszkowski Country Manager www.cat.com
ment Law, need doctoring if they are to else, within a certain time, determine other- 57 CB RICHARD ELLIS Colin Waddell Managing Director www.cbre.pl
better serve their purpose for both Polish wise through the relevant ZUS office. If the 58 CEC GOVERNMENT RELATIONS Sp. z o.o. Marek Matraszek Director, Founding Partner www.cecgr.com
and international companies. This is an- authority fails to dispute the company’s 59 CEERES Sp. z o.o. Randy Michael Mott President www.ceeres.eu
60 CEDC William Carey President, CEO www.cedc-c.com
other area of reform for the Friendly State statement in the time allowed, the state- 61 CEVA Freight Poland Sp. z o.o. Piotr Zborowski Managing Director www.cevalogistics.com
committee in 2011. To come up with legis- ment would be assumed to be correct and 62 CGI POLSKA Dariusz Gorzeń General Manager www.cgi.com
lation that best serves the business com- legally binding in the company’s dealings 63 CH2M HILL POLSKA Ltd Sp. z o.o. Ruben Robles Vice President www.ch2m.com
munity, the committee needs to work with the authority. “It is a huge challenge to 64 CHADBOURNE & PARKE LLP Włodzimierz Radzikowski Managing Partner www.chadbourne.com
65 CHARTIS EUROPE S.A. Agnieszka Żołędziowska-Kulig Operations Director www.chartisinsurance.com
closely with business organizations that introduce such a mechanism,” Szejnfeld 66 CHEVRON POLSKA ENERGY RESOURCES John Claussen Country Manager www.chevron.com
Tomasz Ćwiok
can input their expertise and knowhow said. “But if we succeed it will amount to 67 CHRYSLER JEEP DODGE - FGA Maciej Ratyński Managing Director www.chrysler.pl

18 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 19
AmCham Membership Directory 2011 AmCham Membership Directory 2011

Company Name Person in charge Position Company website Company Name Person in charge Position Company website
68 CISCO SYSTEMS POLAND Sp. z o.o. Paweł Malak General Manager www.cisco.pl 147 HILTON WARSAW, Hotel & Convention Center Remco Norden General Manager www.hilton.com
69 CLIFFORD CHANCE Nick Fletcher Managing Partner www.cliffordchance.com 148 HINES POLSKA Sp. z o.o. Mieczysław Godzisz Managing Director www.hines.pl
70 CMS CAMERON MCKENNA DARIUSZ GRESZTA Andrew Kozlowski Managing Partner www.cms-cmck.com 149 HJ HEINZ POLSKA S.A. Adam Dyszyński Managing Director www.pudliszki.pl
150 HOGAN LOVELLS (Warszawa) LLP Beata Balas-Noszczyk Managing Partner www.hoganlovells.com
71 CMS CORPORATE MANAGEMENT SERVICES Bogy Cimoszko Skowronski CEO www.cms-proalfa.pl
151 HONEYWELL Sp. z o.o. Wojciech Krajewski Chairman www.honeywell.com.pl
72 COCA-COLA POLAND SERVICES Sp. z o.o. Paul Woodward Operations Director www.cocacola.com.pl 152 HYATT REGENCY WARSAW Josef Kral General Manager www.warsaw.regency.hyatt.com
73 COLGATE-PALMOLIVE POLAND Sp. z o.o. Wojciech Król General Manager www.colgate.pl
I
74 COLLIERS INTERNATIONAL John Banka Partner Investment Services www. colliers.com
153 IBM POLSKA Sp. z o.o. Anna Sieńko General Director www.ibm.com/pl
75 COOPER STANDARD AUTOMOTIVE POLSKA Piotr Gąska Director of Operations www.cooperstandard.pl
76 COPERNICUS FOUNDATION IN POLAND Jerzy Bystrowski Director of the Board www.woe.edu.pl 154 ICAN Sp. z o.o. Andrzej Jacaszek Publisher, Board Member www.harvard.pl
77 COUDERQ & PARTNERS POLAND Pierre Couderq President www.couderq.com 155 ILOOP MOBILE INC. S.A. Magdalena Bicz Administration Director www.iloopmobile.com
78 COURTYARD BY MARRIOTT WARSAW AIRPORT Iwona Świtek Sales and Marketing Director www.courtyard.com/wawcy 156 IMPERIAL CINEPIX Sp. z o.o. Sunil R. Shah President www.imperial-cinepix.com.pl
79 CPC EXECUTIVE SEARCH Janina Obniska Managing Partner www.cpc-executivesearch.pl 157 ING REAL ESTATE DEVELOPMENT Sp. z o.o. Piotr Wodzyński Management Board President www.ingrealestate.com
158 INSTANT POLSKA Sp. z o.o. Anthony Narushka General Manager www.instant.com.pl
80 CREDIT SUISSE (POLAND) Sp. z o.o. Marek Gul Country Manager www.csfb.com
81 CRESTCOM INTERNATIONAL Andrzej Kuras Partner www.crestcomtraining.com 159 INTEL TECHNOLOGY POLAND Sp. z o.o. Tomasz Klekowski Territory Manager CEE www.intel.pl
82 CROWLEY DATA POLAND Sp. z o.o. Jarosław Roszkowski President, CEO www.crowley.pl 160 INTERCONTINENTAL HOTEL WARSZAWA Christian Henkemeier General Manager www.warsaw.intercontinental.com
83 CROWN RELOCATIONS Sp. z o.o. David Muir Chairman of the Board www.crownrelo.com 161 INTERNATIONAL HERALD TRIBUNE Carina Pierre Rochard Regional Director www.global.nytimes.com
162 INTERNATIONAL PAPER POLSKA Sp. z o.o. Tomasz Berbeka President of the Board www.ipaper.com.pl
84 CURB-TEC EUROPE Sp. j. Chris Hutchinson CEO www.curb-tec.pl
163 IRON MOUNTAIN POLSKA Sp. z o.o. Iwona Wałach Commercial Director www.ironmountain.com.pl
85 CUSHMAN & WAKEFIELD POLSKA Sp. z o.o. Richard Petersen Managing Partner www.cushmanwakefield.com
J, K
D 164 JAVA COFFEE COMPANY Sp. z o.o. Glen S. Gregory CEO, President www.javacoffee.pl
86 DALE CARNEGIE & ASSOCIATES Pablo Martinez General Manager www.dalecarnegie.com.pl 165 JOHNSON & JOHNSON POLAND Sp. z o.o. Magdalena Skopińska Managing Director www.its.jnj.com
87 DBM Piotr Kociołek Managing Partner www.dbm.pl 166 K & L GATES Maciej Jamka Managing Partner www.klgates.com
88 DEBENEDETTI MAJEWSKI SZCZEŚNIAK David DeBenedetti Partner www.dms.net.pl 167 KAJIMA POLAND Sp. z o.o. Masanori Iwasaki General Manager www.kajimaeurope.com
89 DELL Sp. z o.o. Maciej Filipkowski Managing Director www.dell.pl 168 KAŁUŻYŃSKI & MADEJA Sp. z o.o. Richard Kałużyński Managing Director www.kaluzynskimadeja.com
90 DELOITTE Marek Metrycki Managing Partner www.deloitte.com/pl 169 KATO LABS Sp. z o.o. Janusz Wołejko President www.kato.pl
91 DELPHI POLAND S.A. Dariusz Adamek Country Director www.delphi.com 170 KELLY SERVICES POLAND Sp. z o.o. Agnieszka Walter Country General Manager www.kellyservices.pl
92 DEWEY & LEBOEUF Jarosław Grzesiak Managing Partner www.dl.com 171 KLINEMAN ROSE & WOLF– POLAND Sp. z o.o. Tomasz Barylski President www.krw.com.pl
93 DIRECT COMMUNICATION Sp. z o.o. Angelo Pressello President www.dir.com.pl 172 KPMG Sp. z o.o. Peter Kay Partner www.kpmg.pl
94 DLA PIPER WIATER sp.k. Krzysztof Wiater Managing Partner www.dlapiper.com 173 KRAFT FOODS POLSKA S.A. Stefan Golonka General Manager www.kraft.com
174 KREVOX European Environmental Center Tadeusz G. Krężelewski General Director www.krevox.pl
95 DOW CORNING POLSKA Sp. z o.o. Anna Lau Eastern European Region Director www.dowcorning.com 175 KROLL ONTRACK Sp. z o.o. Marek Suczyk Managing Director www.krollontrack.pl
96 DOW POLSKA Sp. z o.o. Tomasz Chlebicki Managing Director www.dow.com 176 KULCZYK INVESTMENTS Dariusz Mioduski Management Board President www.kulczykholding.pl
97 DUPONT POLAND Sp. z o.o. Thierry Marin Director Central Europe www.dupont.com.pl
L, Ł
E 177 LE ROYAL MERIDIEN BRISTOL Michael Goerdt Director General www.lemeridien.com/warsaw
98 EC HARRIS Sp. z o.o. Marcin Klammer Partner www.echarris.com 178 LEASEPLAN FLEET MANAGEMENT Sp. z o.o. Sławomir Wontrucki Managing Director www.leaseplan.pl
99 EDELMAN POLSKA Sp. z o.o. Barbara Kwiecień General Manager www.edelman.com.pl 179 LEMNA INTERNATIONAL, INC. Viet Ngo President, CEO www.lemnapolska.com
100 EEZ Sp. z o.o. Krystian Stachowiak President www.eez.pl 180 LEVI STRAUSS POLAND Sp. z o.o. Dorota Gutkowska General Manager, President www.eu.levi.com/pl
101 ELI LILLY POLSKA Sp. z o.o. Roberto Servi Managing Director www.lilly.pl 181 LIONBRIDGE POLAND Sp. z o.o. Jacek Stryczyński Country Manager, President www.lionbridge.com
102 EMC COMPUTER SYSTEMS POLAND Sp. z o.o. Dariusz Chwiejczak Country Manager www.emc.com 182 LITTLE LEAGUE Baseball & Softball EMEA Region Beata Kaszuba EMEA Region Director www.eteamz.com/llbeurope
103 EMERSON PROCESS MANAGEMENT Tomasz Kosik Sales Director, CE Europe www.emersonprocess-powerwater.com 183 LOCKHEED MARTIN GLOBAL INC. S.A. Robert Orzyłowski Executive Director www.lockheedmartin.com
104 ENTERPRISE INVESTORS Jacek Siwicki President www.ei.com.pl 184 LURGI S.A. Waldemar Winkler COO www.lurgi.pl
105 ENVIRON POLAND Sp. z o.o. Jerzy A. Kołłajtis Principal www.environcorp.com 185 LYNKA PROMOTIONAL SOLUTIONS John Lynch President www.lynka.com.pl
106 EPSTEIN Sp. z o.o. Janusz T. Lichocki President www.epstein.com.pl 186 ŁASZCZUK I WSPÓLNICY sp.k. Maciej Łaszczuk Managing Partner www.laszczuk.pl
107 ERNST & YOUNG S.A. Duleep Aluwihare Country Managing Partner www.ey.com/pl M, N
108 ESTEE LAUDER POLAND Sp. z o.o. Magdalena Kamińska General Manager www.esteelauder.com 187 MA MAISON LE REGINA HOTEL Krzysztof Olszewski General Manager www.leregina.com
109 EURODENTAL Ltd. Michał Siciński President www.eurodental.pl 188 MAERSK POLSKA Sp. z o.o. Jeff Gościniak General Manager www.maerskline.com/poland
110 EUROMEDIC INTERNATIONAL POLSKA Piotr Janicki President of the Board www.euromedic.pl 189 MANPOWER POLSKA Sp. z o.o. Iwona Janas Country Manager www.manpower.pl
111 EUROMONEY POLSKA S.A. Martin Bauer President www.securities.com 190 MARATHON PETROLEUM POLAND SERVICES Carl R Hubacher Director www.marathonoil.com
112 EUROPCAR Grzegorz Wendyński President www.europcar.com.pl 191 MARRIOTT HOTEL Albert Helms General Manager www.marriott.com/wawpl
113 EXPRESS MAP POLSKA Sp. z o.o. Janusz Przeorek President www.e-map.pl 192 MARS POLSKA Sp. z o.o. Jarosław Świgulski General Manager www.mars.pl
114 EXXONMOBIL POLAND Sp. z o.o. Armando Benavides Poland Lead Country Manager www.exxonmobil.pl 193 MARSH Sp. z o.o. Richard Radford President www.marsh.pl
194 MARY KAY COSMETICS POLAND Sp. z o.o. Ewa Kudlińska-Pyrz General Manager www.marykay.pl
F 195 MASSIVE DESIGN Sp. z o.o. Przemysław Stopa President www.massivedesign.pl
115 FCM TRAVEL EXPRESS Sp. z o.o. Tim Hyland Managing Director www.travelexpress.pl 196 MATTEL POLAND Sp. z o.o. Sanjay Luthra Finance Manager www.mattel.com
116 FEDERAL EXPRESS POLAND Sp. z o.o. Michael Muehlberger President www.fedex.com/pl 197 McDONALD'S POLSKA Sp. z o.o. Piotr Jucha Managing Director www.mcdonalds.pl
117 FEDEX TRADE NETWORKS Michał Rene Country Manager Poland www.ftn.fedex.com 198 MCKINSEY & COMPANY POLAND Sp. z o.o. Jacek Poświata Managing Director www.mckinsey.pl
118 FINACORP (POLSKA) Sp. z o.o. Stan Popow Managing Partner www.finacorp.pl 199 MEDICOVER Sp. z o.o. Loic Fretard Director of Medicover Hospital www.medicover.pl
119 FIRESTONE INDUSTRIAL PRODUCTS POLAND Donald Campbell CFO www.firestone.polandtrade.pl 200 MEDTRONIC POLAND Sp. z o.o. Wojciech Jeżewski Finance Manager www.medtronic.com
120 FIRST DATA POLSKA S.A. Janusz Diemko Managing Director www.firstdata.pl 201 METLIFE AMPLICO Łukasz Kalinowski President www.metlifeamplico.pl
121 FISERV POLSKA Sp. z o.o. Aleksandra Gren General Director www.fiserv.com 202 MEYER TOOL POLAND Michał Sękowski Finance Director www.meyertoolpoland.com
122 FLEISHMAN–HILLARD Sp. z o.o. Julia Kozak Managing Director www.fleishmaneurope.com 203 MICHAEL PAGE INTERNATIONAL Sp. z o.o. Jerome Lafuite Managing Director www.michaelpage.pl
123 FLUOR S.A. Dave Gibson General Manager www.fluor.pl 204 MICROSOFT Sp. z o.o. Jacek Murawski President www.microsoft.com/poland/
124 FOCUS RESEARCH Sp. z o.o. Richard A. Żabiński President, General Manager www.focusmr.com 205 MILLER, CANFIELD Richard Walawender Senior Partner www.millercanfield.pl
125 FOREVER LIVING PRODUCTS POLAND Jacek Kandefer Managing Director www.flpp.com.pl 206 MISZERAK & ASSOCIATES Sp. z o.o. Martin Miszerak CEO www.miszerakassociates.it
126 FOSTER WHEELER ENERGIA POLSKA Jarosław Mlonka President, CEO www.fwc.com 207 MITSUBISHI CORPORATION Kunihiko Uchimura General Director www.mitsubishicorp.com
208 MŁODE ORŁY S.A. Magdalena Mirski Member of the Supervisory Board www.mlodeorly.com
127 FRANKLINCOVEY CEE (DOOR Poland Group) Marek Choim Group President www.franklincovey.pl 209 MODIS POLSKA Sp. z o.o. Alf Davis Director www.modisintl.com
128 FRITO-LAY POLAND Sp. z o.o. Małgorzata Skonieczna Public & Government Affairs Director www.fritolay.pl 210 MOTOROLA POLSKA Sp. z o.o. Ewa Porębska President www.motorola.pl
G 211 MSD POLSKA Sp. z o.o. Łukasz Zybaczyński General Director www.msd.pl
129 GE INTERNATIONAL S.A. Lesław Kuzaj National Executive www.ge.com 212 NALCO MOBOTEC POLSKA Sp. z o.o. Piotr Hajewski Sales Director www.nalco.pl
130 GENERAL MOTORS POLAND Peter Fahrni Manufacturing Director www.opel.com.pl 213 NARODOWY FUNDUSZ Inwestycyjny Octava S.A. Piotr Rymaszewski President www.octava.com.pl
214 NCR Polska Sp. z o.o. Andrzej Sowiński General Manager www.ncr.com
131 GENZYME POLSKA Sp. z o.o. Paweł Miśkiewicz General Manager www.genzyme.com 215 NEUMANN INTERNATIONAL AG Zbigniew Plaza Principal www.neumann-inter.com
132 GLADSTONE POLSKA Sp. z o.o. Donal Charles Bailey Business Development Manager www.gladstonellc.com 216 NEUMANN LEADERSHIP POLAND Sp. z o.o. Marek Ambroziak Partner www.neumannpartners.com
133 GOLD'S GYM Jay Spaid Leading General Manager www.goldsgym.pl 217 NORDSON POLSKA Sp. z o.o. Jarosław Rutkowski General Manager www.nordson.com.pl
134 GOODYEAR DUNLOP TIRES POLSKA Sp. z o.o. Jacek Pryczek President & Managing Director www.goodyear.pl 218 NORTON ROSE Piotr Strawa i Wspólnicy Piotr Strawa Managing Partner www.nortonrose.com
135 GTECH POLSKA Sp. z o.o. Wojciech Włodarczyk Site Manager for Poland www.gtech.com 219 NOVARTIS POLAND Sp. z o.o. Don Bellamy CPO Head and Country President www.novartis.pl
136 GUARDIAN CZĘSTOCHOWA Sp. z o.o. Zsolt Erdosi Managing Director www.guardian.com O, P
H 220 ORANGE PRODUCTS EUROPE Sp. z o.o. Mariusz Leoniak Commercial Manager www.orangeproducts.com
137 HALCROW GROUP LIMITED Jarosław Karpiejuk Regional Director Poland www.halcrow.com 221 ORCO PROPERTY GROUP Alicja Kościesza Sales & Marketing Director www.orcogroup.com
138 HAY GROUP Sp. z o.o. Mik Kuczkiewicz Chairman of the Board www.haygroup.pl 222 OTIS Sp. z o.o. Tomasz Begier President www.otis.com.pl
139 HBO POLSKA Sp. z o.o. Aleksander Kutela President www.hbo.pl 223 PANATTONI EUROPE Robert Dobrzycki Regional Partner www.panattoni.com
140 HEIDRICK & STRUGGLES Matthew Tebeau Partner www.heidrick.com 224 PEPSI COLA GENERAL BOTTLERS POLAND Andrzej Bruczko General Manager www.pepsi.pl
141 HEITMAN FINANCIAL Sp. z o.o. Dennis Dart Senior Vice President www.heitman.com 225 PFIZER POLSKA Sp. z o.o. Patrick Vanginneken Country Manager www.pfizer.com.pl
142 HEWITT ASSOCIATES Sp. z o.o. Edward Robert Stanoch Managing Director www.hewitt.pl 226 PHILIP MORRIS POLSKA Aleksander Grzesiak Managing Director www.pmintl.pl
143 HEWLETT PACKARD Paweł Czajkowski Managing Director www.hp.pl 227 PITTSBURGH GLASS WORKS (POLAND) William H Hall European Operations Manager www.pgw.glass.com
144 HEWLETT-PACKARD GLOBAL BUSINESS CENTERJack Levernes Vice President www.hp.com 228 PM GROUP POLSKA Sp. z o. o. Con Murphy Managing Director www.pmg.pl
145 HILL & KNOWLTON POLAND Agnieszka Dziedzic President www.hillandknowlton.pl 229 POLISH ENERGY PARTNERS S.A. Zbigniew Prokopowicz President www.pepsa.com.pl
146 HILL INTERNATIONAL Sp. z o.o. Jacek Żurawski Vice President www.hillintl.com.pl 230 POLSKA TELEFONIA CYFROWA Klaus Hartmann CEO, Director General www.era.pl

20 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 21
AmCham Membership Directory 2011 FOCUS: AmCham

Growing stronger every year

Company Name Person in charge Position Company website
231 PRAMERICA Beata Andruszkiewicz President www.pramerica.pl
232 PRATT & WHITNEY Zbigniew Gradowski In-Country Program Manager www.pratt-whitney.com
233 PRICEWATERHOUSECOOPERS Olga Grygier Siddons Managing Director www.pwc.com/pl
234 PRIME CAR MANAGEMENT S.A. Grzegorz Czarnecki CEO www.primecar.com.pl
235 PROCTER & GAMBLE DS POLSKA Sp. z o.o. Marek Kapuściński General Manager www.pg.com
236 PROLOGIS Ben Bannatyne President www.prologis.com
R, S
237 RABOBANK POLSKA S.A.
238 RANDSTAD Sp. z o.o.
239 RAYTHEON INTERNATIONAL, INC.
Jacek Szugajew
Kajetan Słonina
Leda Zilinskas
President
General Director
Country Manager
www.rabobank.pl
www.randstad.pl
www.raytheon.com
Just as 2010—the 20th AmCham anniversary year—comes to an end, American
240 RIGHT MANAGEMENT POLAND Sp. z o.o.
241 ROYAL UNIBREW POLSKA Sp. z o.o.
Agata Dulnik
Beata Pawłowska
Principal Consultant
General Director
www.rightmanagement.pl
www.royalunibrew.pl
Investor talks with Dorota Dabrowski, AmCham Executive Director, about the
242 RR DONNELLEY EUROPE Sp. z o.o.
243 RUSSELL REYNOLDS ASSOCIATES Sp. z o.o.
Jan Przepióra
Dorota Czarnota
Vice President
Managing Partner
www.rrdonnelley.eu.com
www.russellreynolds.com chamber’s progress, how it helps its members, and the significance of American
244 SABRE POLSKA
245 SALANS
Michael Dietz
Tomasz Dąbrowski
Site Leader
Managing Partner
www.sabre-holdings.com
www.salans.com business for Poland’s economy
246 SANOFI-AVENTIS Sp. z o.o. Marynika Woroszylska-Sapieha Managing Director www.sanofi-aventis.com.pl

o
247 SERCOM SOLUTIONS LIMITED Sp. z o.o. Anna Achremienia Business Development & Commercial Manager www.sercomsolutions.com
248 SHERATON WARSAW HOTEL Thomas Schoen General Director www.sheraton.pl n october 23, the amcham 20th oped structure of active committees, which
249 SIKORSKY AIRCRAFT CORPORATION Stanley J. Prusinski Director, Sikorsky Europe www.sikorsky.com anniversary Ball marked the generate so much of our agenda and out-
250 SITEL POLSKA Sp. z o.o. Antonio Dos Santos Director www.sitel.pl
251 SOCIÉTÉ GÉNÉRALE S.A. Stéphane Hild Country Head www.sgcib.com
start of amcham’s third put. This is something I am particularly
252 SODEXO POLSKA Sp. z o.o. Yann Gontard Managing Director www.sodexo.pl decade. what were the beginnings of proud of, because on the one hand I per-
253 SOFITEL WARSAW VICTORIA Jean Michel Lathuilliere General Manager www.sofitel.com the american chamber of commerce sonally believe in and support the commit-
254 SOFTEX DATA Wojciech Warski Chairman of the Board www.softex.com.pl in Poland and how has it changed tee structure, and on the other hand it is
255 SPENCER STUART POLAND Sp. z o.o. Andrzej Maciejewski Office Manager/Consultant www.spencerstuart.com
256 SQUIRE SANDERS ŚWIĘCICKI KRZEŚNIAK Peter Święcicki Chief Accountant www.ssd.com over the last 20 years? thanks to the initiative of our members that
257 STAFFER Sp. z o.o. Ari Hecht President www.staffer.pl AmCham started in 1990 with the initia- our committees are so active.
258 STEELCASE S.A. Elżbieta Gajowska Dealer & Marketing Manager www.steelcase.com/uk tive of about 10 individuals who were pri-
259 SWIFT AVIANA CARGO SERVICES Sp. z o.o. Alam Chaudry Chairman www.swiftaviana.com
marily Polish Americans. For the first 10 american business has been present in
T, U
years the chamber grew rapidly, with mem- Poland for 20 years. over the years the
260 TELEKOMUNIKACJA POLSKA S. A. Tomasz Nowakowski Executive Director www.tp.pl
261 TELESTO Richard M. Lada Vice President www.telesto.pl bership tapering off to today’s 320+ es- number of companies and the scope of
262 THE CONFERENCE BOARD Michał Zdziarski Director, Associate Service www.conference-board.org teemed members, one-third of which are their ventures have been growing rap-
263 THE WALT DISNEY COMPANY Katarzyna Westermark Managing Director www.disney.pl Fortune 500 companies. The biggest differ- idly. do you think there is still interest
264 TOP CONSULTING Sp. z o.o. Robert Dziubłowski President, CEO www.topconsult.pl
265 TRADE MEDIA INTERNATIONAL Michael J. Majchrzak Managing Director www.trademedia.us ence today is that we have developed into an in investing in Poland? do american
266 TRANSEARCH INTERNATIONAL POLAND Beata Żytka Managing Partner www.transearch.com established, professional business organi- companies still perceive Poland as the
267 TRUSIEWICZ SIWKO Kancelaria Prawna Sp. k. Rafał Trusiewicz Partner www.ts-kancelaria.pl zation that can handle quite a bit of output. place to be, in spite of growing costs of
268 UBS AG Peter Isenberg Executive Director www.ubs.com operations?
269 UL INTERNATIONAL POLSKA Sp. z o.o. Bogdan Maliszewski Branch Manager www.ul.com
270 UNITED BUSINESS DEVELOPMENT Sp. z o.o. Peter James Strupp CEO, President of the Board www.ubd.pl can any american company present Thankfully, the Polish wave is still on the
271 UNIVERSAL EXPRESS Sp. z o.o. Stefan Hildt Member of the Board www.uer.pl in Poland become an amcham mem- rise. In years past, there seemed to be a
272 UNIVERSAL LEAF TOBACCO POLAND Sp. z o.o. Wojciech Lik Chairman of the Board www.universalleaf.com slowdown in traditional investments, with
273 UPC POLSKA Sp. z o.o. Simon Boyd President www.upc.pl
ber? how to begin the adventure with
274 UPS POLSKA Sp. z o.o. Piotr Sitarek Country Manager www.ups.com amcham? BPO filling the gap somewhat. But in 2010
V, W, X AmCham Poland is actually the only Am- there was a clear revival of traditional in-
275 VF POLSKA DISTRIBUTION Sp. z o.o. Marek Hińcz Managing Director www.vfc.com Cham in Europe to  limit  membership to vestments, with new factory openings,
276 VISKASE POLSKA Sp. z o.o. Monika Pływaczewska Commercial Director www.viskase.com companies that have a “significant Ameri- while BPO investments kept apace, with
277 VOLANTIS SYSTEMS LIMITED Sp. z o.o. Jarosław Maślanka Branch Director www.volantis.com can presence” in terms of ownership. All of many more to come. Poland continues to be
278 WARDYŃSKI & PARTNERS Tomasz Wardyński CBE, Founding Partner www.wardynski.com.pl
279 WARNER BROS. ENTERTAINMENT POLSKA Waldemar Saniewski Managing Director www.warnerbros.com our member companies have roots in the a strategic investment location for reasons
280 WARSAW DESTINATION ALLIANCE Alex Kloszewski Chairman, Managing Director www.destinationwarsaw.com U.S. or significant business ties to the U.S., of location and local market size, if not cost
281 WEIL, GOTSHAL & MANGES Roman Rewald Partner www.weil.com which strictly defines who we are as an or- savings as much. The future looks bright
282 WESTLB BANK POLSKA S.A. Maciej Stańczuk Chairman of the Board www.westlb.pl for years to come.
283 WHIRLPOOL POLSKA Sp z.o.o. Tomasz Skołyszewski CFO www.whirlpool.com
ganization and what we stand for. This
284 White & Case W. Daniłowicz, W. Jurcewicz i Wspólnicy Witold Daniłowicz Managing Partner www.whitecase.pl makes us a stronger partner for the U.S.
285 WIERZBOWSKI EVERSHEDS Judith Y. Gliniecki Partner www.eversheds.pl government dealing with Poland and for the in your opinion, what is the biggest
286 WINCOR NIXDORF Sp. z o.o. Mirosław Janik Chairman of the Board www.wincor-nixdorf.com/pl Polish government dealing with business. contribution of amcham and ameri-
287 WOODWARD GOVERNOR POLAND Sp. z o.o. Dominik Kania Executive Director www.woodward.com
288 WRIGLEY POLAND Tomasz Suchecki Managing Director www.wrigley.pl Having said that, all of our companies are can business to Poland?
289 WS ATKINS - POLSKA Sp. z o.o. Stephen Novis Member of the Board www.atkinsglobal.com registered in Poland, so ultimately we up- The contribution of American business
290 XEROX POLSKA Sp. z o.o. Marzena Tarkowska Country General Manager www.xerox.com.pl hold American business values to make to Poland cannot be overestimated. Today,
291 X-PRESS COURIERS Sp. z o.o. Adam Tomczak President www.x-press.com.pl
Poland a friendlier environment for all in- Poland is naturally focused on E.U. issues,
vestors. Many American companies support investments and funds, but we cannot for-
their local AmCham by definition, and we get that it was American funds, investment
the u.S. chamber of commerce, the and knowhow that shaped the early years of
indeed want to capture all American in-
largest business federation in the transformation in Poland. It was American
vestors in Poland so that we are stronger
world, is present in every european
Individual members collectively and so that we can serve the
group.
country. are there any differences be-
tween amcham in Poland and other
companies that invested most heavily and
created market standards, with a total of
USD 20 billion invested and 180,000 direct
Alphabetical list of AmCham individual members, as of December 31, 2010. european amchams?
what are amcham’s objectives? how jobs created to date. As an organization,
Member Contact phone Member Contact phone Member Contact phone The AmChams make up one strong net- however, we are a much-needed voice of
does it support its member compa-
1 Adam Bergmann +48-664-444-777 12 Adam Ilczuk +48-513-152-120 23 Magda Pachocka +48-22-646-1249 work, but are indeed independently run reason for wider business concerns. Al-
2 Alain Bobet +48-513-190-208 13 Katarzyna Janota +48-510-217-910 24 Adam Paszkowski +48-22-835-3000 nies?
from country to country. The directors of though many Polish business organizations
3 Brian Bode +48-22-648-0841 14 Sylwester Klarowicz +48-668-133-034 25 Beata Plaskocinska +1-917-859-1798 Most importantly, we provide a platform
4 Alain Capodanno +48-694-487-467 15 Richard Knauff +1-908-790-0850 26 Steven Rudofsky +48-32-251-0293 the AmChams meet regularly, and the ex- have become strong advocates of reason,
for member companies to discuss and act
5 Dario Cipriani +48-608-000-511 16 Jon Kolasinski +48-500-206-227 27 Alex Shannon +48-501-515-740 change of best practices is an important the need for AmCham’s clear position and
6 Andrew Davis +48-22-456-4500 17 Erika Kovalick +48-666-234-530 28 Christopher Smith +48-22-616-0062 on common issues and concerns. This ob-
part of these meetings. It is nice to note American point of reference does not di-
7 Adam de Sola Pool +48-22-756-3232 18 Steve Krupa +1-847-564-1931 29 Tadeusz Szostak +48-22-834-3321 jective we take quite seriously, and it is sup-
that at 20 years, AmCham Poland is quite minish.
8 George Dembinski +48-603-681-525 19 Matthew Lynch +48-22-622-7153 30 Jerzy Thieme +48-601-282-812 ported by our committee structure, the ef-
9 Richard Engel +48-508-047-510 20 Deepak Malhotra +48-663-935-600 31 Stanley Urban +48-502-709-190 mature and serves as an example for oth-
forts of our Board and the work of our staff.
10 Ewa Esquerra +48-602-722-622 21 George Michalski +48-606-917-000 32 Andrzej Wróbel +48-501-305-565 ers. Our AmCham is on the high end of ac-
11 Andrew Hope +48-668-691-884 22 Anya Ogorkiewicz +48-510-419-141 33 Paul Zalucky +48-606-802-998 We reach out to the Polish government
tivity, and we have perhaps the most devel-
often to raise these concerns. 

22 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 23
FOCUS: AmCham
Paving the way to success
Roman Rewald, former AmCham Chairman who held office for three consecu-
tive terms and now is an ex officio Board Member, talks to American
Investor about what AmCham has achieved, where it is going and where
it may be 20 years from now
the american chamber of commerce
in Poland celebrated its 20th anniversary
last year. 2010 also marked the anniver-
sary of the Polish social, political and
economic transformation initiated in
1989. what has been the involvement of
american companies and institutions in
the changes that have been taking place
since 1989?
A book could be written about the partici-
pation of U.S. companies and institutions in
Poland’s economic transformation after 1989.
I have lectured on this subject at the Cracow
University of Economics, and this has been
one of my favorite AmCham speaking topics.
However, there is no room here for a full lec-
ture, so I will summarize it. It seems to me
that we can talk about the huge impact of
U.S. institutions not only on the beginnings
of Poland’s transformation, but also on the
manner it has progressed in the last 20 years.
The American contribution to Poland’s
transformation can be divided into the con-
tribution of the American government (e.g.
the Peace Corps, USAID, and assistance in
creation of the Warsaw Stock Exchange and
the Polish tax and financial systems); assis-
tance on the part of the U.S. Congress, e.g.
in the form of the USD 200 million Stabiliza-
tion Fund, which gave rise to the Polish
American Enterprise Fund, the largest pri-
vate equity fund in Poland, succeeded by En-
terprise Investors; and the contribution of-
fered by U.S. companies, which from the very
beginning of the new system in Poland were
the largest and most enthusiastic investors in
this country, providing not only capital but
also knowhow, management skills and their
immense contribution to the development of
the legal culture and the law. The United
States of America was the home of the fa-
mous “generals” that President Lech Wałęsa
hoped would invade Poland: General Electric,
General Motors and General Dynamics.
what differentiates Poland as an invest-
ment location, compared with other
countries in central & eastern europe?
Poland’s neighbors often offer investors
better conditions in terms of subsidies
and tax relief, and some of them offer
better infrastructure. what makes
Poland attractive for investors now, and
how can Poland’s competitiveness be
improved in the future? how can it sup-
port foreign investments wisely?
24 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1
According to a survey of American in-
vestors in Poland conducted by AmCham and
KPMG for AmCham’s 20th anniversary,
Poland is very attractive for American in-
vestors for two main reasons: a great location
and a fantastic labor force. Tax incentives,
grants and so forth are also important in dif-
ferentiating Poland from neighbors compet-
ing for the same investors. On the other
hand, for a foreign investor who is shopping
around for locations of manufacturing facili-
ties, Poland with its large population is an ob-
vious choice. There is a lot to be done to
make Poland more attractive to American and
other foreign investors. The two things iden-
tified by AmCham from the outset were im-
provement of the transportation infrastruc-
ture and improvement of the promotion of
Poland as a good place for foreign invest-
ments. With respect to the latter, Poland
should adopt proven solutions, such as the
approach followed by the U.S. Commercial
Service, while existing investors in Poland
should be given as much assistance and pro-
tection as possible since they are Poland’s
best ambassadors for new foreign investors.
what role should the state play in a
country’s economy? Should sensitive
sectors of the economy be protected, fol-
lowing the model designed by the e.u.,
or would the example of the u.S. prove
more effective?
The state has a very well-defined and obvi-
ous role in the economy. The state must act
as the regulator that watches over competi-
tion to level it for all participants. The other
important function of the state is to protect
the external and internal security of the coun-
try, to procure the enforcement of contracts
and protect the legal order, as well as take
care of those in society who are unable to take
care of themselves. From the investors’ point
of view, the most important aspect is the pro-
tection of competition by the state. With re-
spect to sensitive sectors of the economy, the
only protection that the state should extend
is against those sectors’ being taken over by
foreign state capital. If I were to choose be-
tween state ownership, I would always prefer
my own state’s ownership vs. ownership by
somebody else’s state. The United States
protects its private industry from acquisition
by a foreign state under the Exon-Florio law.
In Europe no such legislation exists, so Eu-
ropean countries may only accomplish this by
keeping state ownership in certain compa-
nies. Of the two solutions, I prefer the Amer-
ican approach, where there is no need to
maintain any state ownership in the industry
at all.  ish public. can development of the shale
adam Szejnfeld, former deputy minis-
ter of economy in donald tusk’s gov-
ernment, was the last person to make an
effort to reduce barriers suffocating the
Polish economy. he was awarded a cita-
tion by amcham for his dedication to
spreading economic freedom and re-
ducing barriers to entrepreneurship.
how can Poland’s economy be effec-
tively deregulated and stimulated?
AmCham was involved in de-bureaucrati-
zation efforts from the very beginning of the
Polish transformation, starting with the fa-
mous committee of then Minister of Finance
and Deputy Prime Minister Leszek Bal-
cerowicz. Later, we used our best efforts to
reduce the administrative burdens on busi-
ness and make investment easier in this
country. With Adam Szejnfeld we have a long
tradition of fighting for reasonable solutions
in the Polish legal framework for businesses.
We welcome his position as head of the Par-
liament committee on reduction of bureau-
cracy. As a member and chairman of the Pro-
Polska Coalition, I have been cooperating
with Szejnfeld in his effort to improve pro-
motion of Poland. In terms of a general
overview of deregulation in Poland, my long-
standing view is that a lot of examples of how
the economy should be regulated—or rather
deregulated—should be taken from the
United States, where the world’s largest
economy is run efficiently with an amazingly
limited number of state regulations.  presented some salient features of American
Stimulating entrepreneurship would
free up innovation to support the knowl-
edge-based economy of the future. how
to achieve that goal?
It is a common-sense assumption that if
entrepreneurship is stimulated, it would nat-
urally flow and result in substantial innova-
tion. In Poland, this notion could be particu-
larly supported by the fact that the relatively
good education and spirit of entrepreneur-
ship in Poland naturally leads Poles to go into
the most innovative industries and technolo-
gies. The location of American research cen-
ters in Poland has been uniformly successful.
Thus, if you ask me how to achieve the goal of
getting some innovation into the Polish econ-
omy, my answer is consistently the same: re-
move the barriers to entrepreneurship that
are still abundant in this country.  omy, the involvement of american in-
the Polish energy sector has recently
faced two new challenges, or rather two
new opportunities: atomic energy and
shale gas. Poland joined the Global
Shale Gas initiative, consisting of coun-
tries that can potentially become signifi-
cant producers of shale gas in the world.
in april, amcham was involved in a
conference with minister of Foreign af-
fairs Radosław Sikorski and u.S. ambas-
sador to Poland lee Feinstein. the goal
of the conference was to present the
prospects of shale gas mining to the Pol-
gas and nuclear energy sectors increase
american Fdi in Poland, changing the
Polish energy sector and the Polish econ-
omy?
Both the Polish and U.S. governments be-
lieve that shale gas is definitely going to have
a substantial impact on the geopolitical posi-
tion of Poland and Europe as a whole. It just
so happens that American companies have
the best and probably the only knowhow in
this respect in the world. So, naturally, the de-
velopment of American-Polish cooperation in
shale gas achieves two goals: it increases Pol-
ish-American economy cooperation, and it
makes Poland a more free and independent
country, which is always in the interest of the
U.S. government and U.S. citizens. Nuclear
energy is another issue where American in-
vestors could successfully be involved in
Poland. Accordingly, these two energy issues
seem to be the most important factors in the
Polish-American transatlantic cooperation. I
believe that this notion is more and more rec-
ognized on both sides of the ocean, and there
will be substantial efforts to develop cooper-
ation in these two areas. AmCham’s ambition
is to be in the forefront of this activity. 
the slowness and inefficiency of Polish
courts handling commercial cases is
widely known. what is it like in the u.S.?
can Poland benefit from applying amer-
ican best practices?
Last year I taught a law school course and
civil procedure and how dispute resolution is
organized by the courts that could easily be
adopted in Poland without substantial
changes to the law. It seems to me that the
much-proclaimed difference between com-
mon law and civil law systems is highly over-
stated. However, the Polish courts could look
into the organization of American courts and
draw on examples of how to adopt more oral
court proceedings and introduce better
docket control. This, however, would require
Polish lawyers to look at the American system
without the prejudice that stems from the
conviction that the two systems are incom-
patible due to differences in the approach to
law. Hopefully people will be able to see past
this barrier one day.
what is your vision of the Polish econ-
vestors, and Polish-american economic
relations for the 20 years to come?
The involvement of American companies
in the Polish economy is substantial, although
American investors are no longer the biggest
investors in this country. Poland is, after all, a
part of the European Union. Also, trade be-
tween Poland and the U.S. is limited by the
disproportion in the sizes of the two
economies. Nevertheless, the development of
free trade on a global basis is the vision of all
democratically elected governments in the
world, and my vision of the Polish-American
relationship is further development and close
cooperation. I often like to say that Poland is
one of the most pro-American countries in
the world, and Poland also has very good
press in the United States as an ally, both eco-
nomically and in terms of the military. This
last notion could be explored better by pro-
moting Poland in the United States, and
hopefully it will not be tainted by the unfor-
tunate issue of Poles’ needing visas to enter
the U.S. 
J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 25
FOCUS: Nuclear energy

S
ince Poland has announced its nu-
clear program (for details see “Poland
goes nuclear” in the December 2009
issue of American Investor), it is clear that
the three largest players in the business of
generating nuclear power, the U.S./Japan-
ese conglomerate GE Hitachi Nuclear En-
ergy, the Japanese-owned Westinghouse
Electric Co., and the French Areva, are in-
terested in a piece of the project. However,
only one of the three, namely GE, already
has a presence in Poland. So far GE has
hired over 10,000 employees in financial
services, engineering, and manufacturing
in Poland. It also has a history of successful
engineering. The GE Engineering Design
Center, jointly run by GE and the Institute
of Aviation in Warsaw, was where the most
popular jet engine in civil aviation today, the
fuel efficient GEnx, was designed. Along
with developing jet engine technologies, the
center does research in big turbines and
energy. Recently GE has expanded its oil
and gas portfolio capabilities at the center
with the opening of a new USD 3 million
subsea equipment testing facility.
When in July 2010 GE CEO Jeff Immelt
visited Warsaw for the 10th anniversary of
the GE Engineering Design Center, he said
GE will continue to be a big investor in
Poland in the future. The Polish nuclear
program is an excellent opportunity for the
company to do so. For Poland it is an oppor-
tunity to tap into state-of-the-art technol-
ogy, namely the Economic Simplified Boil-
ing Water Reactor and the Advanced Recy-
cling Center, not to mention the chance of
having GE Hitachi Nuclear Energy estab-
lish one of its nuclear power technology
production hubs in Poland.
the beauty of boiling water
In the early years of nuclear power, some 50
years ago, nuclear reactors were a very com-
plex piece of engineering with a lot of small
external components, utilizing two basic
technologies: a boiling water reactor or a
pressurized water reactor. The pressurized
water reactor technology was more ad-
vanced and along with power plants was ap-
plied to powering submarines. But it also
caused some technological problems which
to fix require more external equipment,
which not only boosts the production and
maintenance costs but also significantly re-
a reactor with very little external equip-
ment. “We fundamentally operate at a very
much lower pressure and a much lower
temperature, so we don’t get into these
cracking issues that the owners of PWRs
are seeing at their plants,” said Danny Rod-
erick, Senior Vice President of GE Hitachi
Nuclear Energy. “As a result of this ap-
proach, the ESBWR has the lowest risk of
reactor damage or fuel damage of any plant
designed in the world. That means it has
the greatest safety margin for any of the
plant designs.”
According to the International Atomic
Energy Agency, over the last 10 years boiling
water reactors have outperformed pressur-
ized water reactors by over 3% a year. That
3% a year, over the 60 years of a nuclear re-
actor’s lifespan, adds up to 22 months of
extra generation for free. An average power
plant today makes over USD 2 million
worth of electricity a month. With 22 free
months, there is a lot of money to be re-
couped just because of technology and sim-
plicity.
Spent fuel disposal
GE is a company that often boasts about
being in the business of solving big prob-
lems for humanity in such areas as energy,
healthcare and water resources. Yet if
judged by the progress it has introduced in
dealing with nuclear waste disposal, GEH’s
competitors may glow green with envy. The
company’s Advanced Recycling Center is a
technology that enables used nuclear fuel to
be burned and treated further so that the
remaining material needs to be stored for
only 300 years, instead of the 10,000 years of
storage required with competitors technol-
ogy.
Nuclear material is delivered to reactors
in “fuel assemblies.” Each assembly can be
used in today’s typical reactors only for ap-
proximately 3-6 years. Then the uranium is
pulled out of the used assembly. The ura-
nium can then be put back into another fuel
assembly and returned to the reactor. With
this there is no need to mine new uranium.
But what is left out of the used assembly is
a stream of plutonium. This is dangerous
material. Today, spent nuclear fuel in Eu-
rope is shipped to a major reprocessing fa-
cility in France, where it is stored with the
intention to keep it there for 10,000 years—

Powering forward
As Poland thinks about building nuclear power
plants, GE Hitachi Nuclear Energy is already lending
a helping hand
duced the reactors’ reliability and increased
the risk of core damage.
GE wanted a different pattern from the
pressurized water reactor: the boiling water
reactor. Working with that technology for 50
years now, GE has managed to simplify it,
which adds safety, boosts the reactor’s reli-
ability, and lowers the running costs. The
result of this approach is the Economic
Simplified Boiling Water Reactor (ESBWR),
that is how long it takes for plutonium to
lose its radioactive properties. But along
with the issues that arise in the case of such
a long-term storage, there are spent fuel
shipping issues as well. The road from the
power plant to the storage facility is usually
long. The shipping itself offers a road map
for terrorists on how to find spent fuel, and
therefore creates proliferation risks for a
potential “dirty bomb” that could be made

26 A M E R I C A N I N V E S T O R J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 27
FOCUS: Nuclear energy

from the plutonium. load” generation, they may be comple- ABWR has been built in 39 months from
When eyeing this problem GEH decided mented by renewables and smart grids. first concrete to fill load, and we were able
to use a different approach than standard “I’m for renewable energy sources and an to replicate that general time frame for four
reprocessing. “We came up with a solution energy mix,” Roderick said. “With this you times already,” Roderick said. According to
to cost-effectively put an installation at a need some source of power local to you that Roderick, the speed with which GEH builds
nuclear power plant site that GE builds,
and come in several years after it has been
in operation and start burning that fuel
can run all the time. When there is a winter
storm in Poland, or a hurricane or flood that
knocks out your generation, you still need
Generation III nuclear reactors is about the
company’s approach to construction: the
whole individual project is modularized,
Do not miss the opportunity
without creating weapons grade pluto-
nium,” Roderick said.
What GEH does is “poison” the pluto-
to have power to stay warm. Then you are
back to the whole energy security argu-
ment: how we can keep power available in
with each module shipped individually to
the construction site. But instead of having
to ship them from the U.S. to Europe, GEH
to sponsor AmCham events
“We came up with a solution to cost-effectively put an installation at a nuclear power
in 2011!
plant site that GE builds, and come in a few years after it has been in operation and start
burning that fuel without creating anything that can create a weapon.”

nium with other elements that plans to have a production

makes it incapable of being site in Europe. “We targeted
used to build a weapon. Then Poland,” Roderick said, “be-
the plutonium is put into a cause of the abundance of
fuel bundle and burned in a skilled labor in the country
small supplementary reactor which is actually looking
called PRISM on the site of abroad for employment.”
the main nuclear reactor built Of course it is an inte-
by GEH. “We actually burn grated process. GEH will
these long-lived isotopes out have to be able to get the
in that reactor,” Roderick ex- university systems to be able
plained. “We create 300 MW to produce the very best en-
of additional electricity with it gineers. But GE has already
for free.” been active in cooperation
What is left from this with academia in Poland, in
process is waste form that terms of training and re-
needs 300 years to lose its ra- training. The company
dioactive properties. This helped upgrade the pro-
makes a fundamental differ- grams in the university sys-
ence compared to the 10,000 tems so they can continue to We encourage companies to sponsor our Business Mixers, CEO Forums, 4th of July Picnic and other events. 
years that spent fuel in tradi- provide it with good engi- Business Mixers
tional reprocessing requires. neering support. “We are al- You can sponsor AmCham Business Mixers throughout 2011 (except for January, April, July and December). To find out
“U.S. law requires a design ready here, trying to be a more about sponsoring Business Mixers, visit www.amcham.pl, click on the Events & Activities link on the horizontal menu
storage for 10,000 years,” strategic partner for bar, and choose Business Mixers.
Roderick said. “But who Poland,” Roderick said. In CEO Forums
knows how we are going to his view, GE is the best-fit A high-level discussion panel followed by a cocktail reception, for AmCham CEOs only, held just 3 times a year. To find out
look in 10,000 years? Three company to become a strate- more about AmCham CEO Forums, visit www.amcham.com.pl, click on the Events & Activities link on the horizontal menu
hundred years I can think gic partner for the develop- bar, and choose CEO Forums.
about. There are buildings ment of Poland’s nuclear en- 4th of July Picnic
that are older than 300 years. ergy program, because it Scheduled for Saturday, July 3, 2011, at Królikarnia Palace, Warsaw. To see pictures from last year’s picnic, go to www.am-
Building something that will would be a natural extension cham.com.pl, click on the Events & Activities link on the horizontal menu bar, and choose 4th of July Picnic.
last for 300 years is not a big of an already good relation- Annual General Meeting & Christmas Reception in December
deal. That’s what we like ship. To see pictures from the last AGM & Christmas Reception, go to www.amcham.com.pl, click on the Events & Activities link
about this technology. It is a on the horizontal menu bar, and choose Annual General Meeting.
very good way to address the Regional events
problem of spent fuel.” Danny Roderick, Vice President of GE Hitachi Nuclear Energy In addition to Warsaw events, your company can also support AmCham activities in Kraków, Wrocław and Katowice. We are
open for sponsorship of the following events: 
Green and smart additions Poland in the most cost-effective and envi- Our events in Kraków include two Business Mixers, IT Giants Conference, AmCham Academy Project
Roderick believes that the development of ronment-friendly way.” (in Katowice), one business mixer, one annual conference Manufacturers’ Forum, and a conference: “Out-
green energy sources and an intelligent grid sourcing Potential of Katowice and the Silesia Metropolis,” and “Dębica—Investment Conference.”
will not make nuclear energy redundant. modular system approach For more information, please contact Monika Pilarska at +48 608 027 172 or krakow@amcham.com.pl.
The new technologies will not in them- GEH is the only company now capable of Our events in Wrocław include AmCham Breakfast, two Business Mixers, Oktoberfest, and International
selves make up for big power plants that are building power plants for Generation III re- Christmas Mixer. For more information, please contact Joanna Bensz at +48 605 678 817 or amcham.wroclaw@pmg.pl.
capable of meeting the demand for electric- actors. The company has four of these
ity without interruption. While big power ABWR reactors under construction, includ- For additional information contact Anita Kowalska at +48 22 520 5994.
Tomasz Ćwiok
plants will remain responsible for “base- ing two in Japan and two in Taiwan. “An

28 AMERICAN INVESTOR J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 29

EXPERT: 2011 excise duty changes
Up in smoke
A new system for mov-
ing excise goods around
the E.U. starts this
year, and smokers will
pay more for their fix
P
ity the taxpayers. While
they are still struggling
with the finer details of
the excise tax changes intro-
duced in September 2010, now
they are faced with yet more
changes coming into force on
January 1, 2011. Here we go
through the major changes in
excise tax that may affect busi-
nesses.
The changes can be split into
two categories: those relating to
introduction of the compulsory
electronic excise movement and
control system (EMCS), and as-
sorted others, in particular an
excise increase for some goods.
We will deal with EMCS issues
first.
what is emcS?
EMCS is a computerized system
for monitoring movements of
excise goods under suspension
of excise duty, i.e. for which no
excise duties have yet been paid.
The new system is aimed at re-
placing the paper document that
currently must accompany such
2011 will bring with it significant changes for
excise tax payers irrespective of the industry
they operate in.
movements (the Administrative
Accompanying Document or
AAD) with electronic messages
from the consignor to the con-
signee via E.U. member state
administrations. The legal foun-
dation for the EMCS project is
the new horizontal Council Di-
rective 2008/118/EC concerning
the general arrangements for
excise duty.
The EMCS rollout project
worked on the assumption that
all member states and all eco-
nomic operators would join
EMCS between April 1 and De-
cember 31, 2010. Poland in-
formed the European Commis-
sion that it would not be ready
to develop the required EMCS
30 AMERICAN INVESTOR J A N UA R Y 2 0 1 1
By Sylwia Kulczycka
tax advisor, associate at Salans
and Cezary Przygodzki
tax advisor, counsel at Salans
functionality to discharge e-ADs
electronically by April 1, 2010.
Therefore, it was agreed among
the member states that move-
ments to Poland would take
place under cover of the current
paper AAD until January 1,
2011, which is D-Day for Poland
to join EMCS.
Polish rollout
The rollout of EMCS in Poland
was covered by the Act of July
22, 2010, Amending the Excise
Tax Act and Certain Other Acts.
Generally, in the period from
January 1 through December
31, 2011, EMCS will not be
compulsory for economic oper-
ators moving goods under sus-
pension of excise duty within
Poland. However, starting Janu-
ary 1, 2011, entities moving
goods outside of Poland will
have to use the EMCS and com-
ply with its requirements.
how does emcS work?
Under EMCS, the movement of
excise goods between two
traders is documented by
means of the successive states
of the electronic Administrative
Document (e-AD), from is-
suance by the consignor to ac-
knowledgement of receipt by
the consignee.
A consignor wishing to move
goods under suspension of ex-
cise duty submits the draft e-
AD to EMCS electronically for
validation. The excise numbers
of the consignor and the con-
signee are matched against a
European register of operators
(SEED). If the draft e-AD is not
correct, the consignor receives
an automatically generated no-
tice of irregularities from the
system. If the draft e-AD is vali-
dated in the system, the e-AD,
with the reference code given, is
electronically transmitted to the
consignor and to the relevant
authorities in the member state
of destination, who subse-
quently forward it to the con-
signee. The goods moved by the
consignor under suspension of
excise duty should then be ac-
companied by the printed e-AD
with the reference code given in
the EMCS or by another com-
mercial document quoting this
reference code.
Upon receipt of the goods,
the consignee submits a draft
report of receipt (confirmation
that the goods reached their
place of destination) to the
EMCS for validation. If the
draft report of receipt is not
correct, the consignee receives
an automatic notice of irregu-
larities from the system. If the
draft report of receipt is vali-
dated, it is electronically trans-
mitted to the consignee and to
the relevant authorities in the
member state of dispatch, who
subsequently forward it to the
consignor.
Polish excise regulations also
cover the detailed procedures to
be applied when the EMCS is
not available. (The EMCS may
be deemed unavailable if the
EMCS user reports the unavail-
ability to the director of the
Customs Chamber in Łódź and
the director confirms it.) There
are also special regulations for
consignors dispatching goods
outside the European Union; in
particular, the customs authori-
ties need to issue a special re-
port of dispatch.
Needless to say, this is only a
broad outline of EMCS. Busi-
ness operators moving goods
under suspension of excise duty
should identify the rules appli-
cable in their own particular
circumstances. The expectation
is that in the long run EMCS
will be viewed as a helpful sys-
tem. However, with January 1,
2011 already upon us, it looks as
if EMCS will be a challenge for
both Polish business and the
customs authorities for the first
few months.
other changes
The New Year rings in changes
in excise duty for some goods.
tobacco products
The Act of October 29, 2010,
Amending the Excise Tax Act
increased the excise rates for
tobacco products. Starting from
January 1, 2011, the excise rates
will be as follows:
• cigarettes—PLN 158.36
per 1,000 and 31.41% of the
maximum retail price;
• tobacco—PLN 102.32 per
kg and 31.41% of the maximum
retail price;
• cigars and cigarillos—PLN
244.40 per 1,000;
As a result, on January 1,
2011, excise duty on cigarettes,
cigars, cigarillos and tobacco
will rise by 4–8% from current
rates. The Ministry of Finance
explained that the increase re-
sults from the fact that Poland
must comply with European
Union regulations raising the
minimum level of excise duty
on tobacco products. The new
directive provides that from
January 1, 2014, onward, excise
duty must represent 60% of the
weighted average retail sale
price of cigarettes released for
consumption, although the duty
will be no less than EUR 90 per
1,000 cigarettes irrespective of
the weighted average retail sale
price. Poland will be allowed a
transitional period until De-
cember 31, 2017, to meet the
requirements.
The changes will generate
additional budgetary revenue of
about PLN 220 million in the
first year. The outlook is
bleaker for tobacco producers,
who face increased pressure on
their margins and sales.
Biofuels and biodiesel
There is mixed news on excise
treatment of biofuels and
biodiesel. Currently, there is a
cut-rate excise duty for biofuels
and biodiesels (PLN 10 per
1,000 liters), provided they con-
tain more than 2% biocompo-
nents. The new legislation pro-
vides that from May 1, 2011, but
no later than December 31,
2011, this rate is available only
if the share of biocomponents is
higher than 80%. Moreover, the
reduction will take effect only
after Poland receives a positive
decision from the European
Commission on compatibility of
this rate with public aid regula-
tions.
That is the theory. In prac-
tice, the European Commission
may well not get around to issu-
ing the required decision before
December 31, 2011, meaning
that the current relief for biofu-
els and biodiesel will cease to
exist on April 30, 2011. This
will definitely have a serious
impact on the
biofuels/biodiesels industry.
all more expensive
Summing up, 2011 will bring
with it significant changes for
excise tax payers. First of all,
the changes will affect the vast
group of entities moving goods
under suspension of excise
duty, irrespective of the indus-
try they operate in. This group
should take all measures to get
ready for EMCS introduction,
especially advance registration
in the system and becoming ac-
quainted with its functionality.
Other changes will affect spe-
cific industries, i.e. the tobacco
and biofuel/biodiesel indus-
tries. Manufacturers in these
industries should prepare their
IT financial systems and prices
for the higher excise rates. At
least initially, they may also ex-
pect a drop in sales.
EXPERT: FAST 50
Catch them if you can
Deloitte’s Central companies appear to be switch-
ing from short-term to long-
Europe technology term mode and developing
survey identifies strategies that will guide them
the region’s fastest to greater growth, investing in
their current workforce and de-
growers veloping leaders internally are
the primary focus areas. Invest-
By Dariusz Nachyła
ing in employees is one strategy
Partner at Deloitte, responsible for technology companies will make
technology, media use of as they prepare to deal
and telecommunications, C&EE with a shortage of high-quality
E
talent with the right portfolio of
ach year companies rally firm specializing in integrated
behind innovation, break mobile and digital communica- skills in the market over the
next 12 months and beyond.
through obstacles and tions with growth dynamic of
defy the odds. We salute their 26,885 %. Last year Netmedia was The improved average growth
of companies in the ranking this
efforts with the Deloitte Central 14th on the list. So the advance,
European Technology Fast 50, a especially in a crisis year is a great year (from 993% to 967%) is a
positive sign that the fastest-
ranking of the 50 fastest-grow- success.
ing technology companies in Polish companies accounted for growing companies have suc-
cessfully taken steps to avert the
Central Europe. The Fast 50 in- three of the top six spots in the
cludes all areas of technology— ranking, and 11 of 50 overall, worst effects of the financial
crisis in the technology sector
from Internet to life sciences, Poland’s best result since 2006.
computers to semiconductors— Poland took the top spot away in Central Europe. More than
anything, this highlights the
and covers both public and pri- from Hungary, which dropped
vate companies. into second place with 10 compa- importance of sound leadership
The Fast 50 supplements the nies in the ranking. Romania con- to any organization, especially
broader Deloitte Technology tinued to improve its showing, one undergoing a period of
rapid growth before and during
Fast 500 initiative in that the with its highest-ever total this
winners typically become auto- year of seven companies on the the financial crisis.
matically eligible to participate list and consistent growth from
in the EMEA Fast 500. three in 2008. Croatia fell to just Growth outlook
With many more executives
The 2010 ranking represents one company.
a great year for innovation in the Software firms were again the commenting positively on their
expectations for growth in 2010,
face of the economic crisis. Av- best-represented in the ranking
erage five-year revenue growth this year, at 58%, up from 50% in we could continue to see im-
proved average growth in the
for the 50 ranked companies was 2009. Internet companies held
967%, an improvement over steady at 34%. The greatest de- years to come as the region
2009’s average of 933% and a crease was observed in the tele- shifts out of the recession. In
our survey, 81% of CEOs re-
sign of the technology sector’s com and networking segment,
resilience. Despite a challenging which fell from 12% of the com- sponded that they were either
very confident or extremely
year, with difficulties faced by
peers around the world stem-
panies last year to 4% this year.
confident of growth over the
ming from the liquidity crisis
and the drop in consumer de-
methodology
The findings are based on a sur-
next 12 months, while just 3%
were pessimistic.
In another sign that the Cen-
mand, 16 new companies from a vey of over 110 CEOs from across
variety of technology business Central Europe who applied on- tral European technology indus-
sectors entered the ranking and line to enter the Deloitte Technol- try may be returning to normal,
made an impact on the final out- ogy Fast 50 in May–July 2010. The lack of access to skilled labor
come. Fast 50 is a group of the fastest- was once again the biggest per-
growing companies in the region. ceived threat to growth (as has
drum roll The companies span a wide range largely been the case historically
in our CEO survey), with in-
The Polish technology company of technology sectors, but have
Netmedia SA, with growth of one objective in common: to creased competition from
emerging Chinese and Indian
15,005%, took first place in the achieve a strong track record of
2010 Central Europe Technol- growth and success. companies another important
factor.
ogy Fast 50. It was the second The Central Europe Fast 50
year in a row that Netmedia SA CEO Survey captures the opin-
took top honors and the fifth ions and views of technology
year in a row that a Polish com- CEOs on a range of issues, in-
pany emerged as the fastest cluding recipes for growth and the
growing. Netmedia SA also se- importance of human capital to
cured the top prize in the Big 5 the technology industry.
category for larger companies.
What is more, in the Deloitte achieving growth
Technology FAST 500 EMEA Employees were a large factor in
2010 Netmedia took second po- companies’ achieving high levels
sition, after MIG, London based of growth over the past year. As
J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 31
EXPERT: Business leadership EXPERT: Real estate law

Are you building your leaders?
“Leadership is action, think strategy
As leaders rise higher within the
not position.” organization, they need to learn
–Don McGannon  the competencies of how to build
up other leaders. A critical com-
petence is the development of
strategic insight. Many leaders
are excellent at the day-to-day
By Peter Strupp
business but hit the wall because
president of the supervisory board they have not properly inter-
United Business Development preted the environmental
changes taking place around
critical to ensure confidentiality
of the leaders’ data. It is impor-
tant for the leader to see the
feedback as a form of develop-
ment and make the leader ac-
countable for evaluations after
the first baseline results have
been created. The participant
seeking leadership competency
feedback should have a coach ex-
plain the results and provide spe-
cific tools that the leader can use
New order for mortgage regulations
Now mortgages will be a effect, on February 20, 2011,
there will be a single type of
more effective instrument mortgage that may be used to
for securing claims, in secure repayment of the exist-
line with current lending ing loan principal as well as pay-
ment of contingent future
practices amounts, up to a stated maxi-
mum. The single new mortgage
By Agnieszka Wolińska
will essentially be based on the
advocate, Łaszczuk & Partners current concept of the “capped”
mortgage.
Another option that has been
of interest, it will not be neces-
sary to amend the entry if there
is an adjustment in the interest
rate.
Brand-new solutions
The right of a creditor to re-
place the secured claim with
another claim held by the same
creditor has also been intro-
duced. The terms of the exist-
ing mortgage would need to be

P I
oland is a fast-growing
economy, and in specific
industries there is a lot of
anecdotal evidence that thou-
sands of new employees are being
added back onto company pay-
rolls. Recruiters are busy again. If
growth is really back, then where
are the leaders to support that
growth? If not resolved, the lead-
ership competency gaps that may
exist today in your company will
only grow wider. Your sustainable
growth will be constrained by the
limited competency of your lead-
ers on all levels of the organiza-
tion.
One critical aspect of the next
phase of growth is to have the in-
ternal infrastructure to support
high growth. A crucial piece of
this infrastructure is the ability to
have the right leaders in the right
behavior, such as lack of innovation
or contribution to better business
results. The good news is that in-
creased skills and more effective
leadership behavior can be learned.
Process rules
If implemented as a process fo-
cused on results, leadership devel-
opment activities can create
enough bench strength to support
the growth ahead and have a direct
effect on higher business and fi-
nancial results. Leadership devel-
opment—done the right way—is
proven to deliver higher financial
results. The net-present-value re-
turn on investing the time and
money into a strong leadership de-
velopment process is much higher
than for most fixed-asset invest-
ments.
them in their industries or mar-
kets.
enterprise level
Another critical leadership tran-
sition is when silo leaders be-
come members of the senior ex-
ecutive team. There is a need to
commit at the enterprise level,
not just at their profit center.
This view of leading the whole
organization is often under-
mined by outside-country matrix
reporting relationships that make
the country director essentially a
silo manager rather than build-
ing a great unified organization
within the same culture.  competencies, but only if there is
The CEO needs to be a
teacher to the leaders inside the
company. Time must be invested
in workshops, coaching, and con-
stantly communicating how the
to achieve development.  n the Polish legal system, as mortgage into a more effective in- introduced is for one creditor to
more to do
Introducing new sequenced as-
signments is by far the best way
to grow leaders. Pushing people
out of their comfort zones and
into new environments is a great
way to train on new competency
development. The use of busi-
ness coaching and mentoring
also provides a stronger way to
develop through consistent feed-
back on new assignments.
Skills-based development
through training can be an excel-
lent method of helping develop
consistent follow-up though
coaching and a focus on integrat-
ing the new skills sets into the
daily behavior of the leader. Oth-
erwise training has a negative
amended, but it will not be nec-
in most other countries, the strument for securing claims. use a single mortgage to secure essary to establish a new mort-
mortgage is the main form of The existence of two types of various different claims it has gage and delete the previous
security for claims related to mortgages—the “ordinary” mort- against the same debtor, and for one.
real estate transactions, includ- gage, which secures an existing several creditors involved in fi- Under the new rules, the
ing bank claims, and the most claim in a fixed amount, and the nancing the same venture to se- amount of the mortgage will be
commonly used in this area. A
“capped” mortgage, which se- cure their claims under a single expressed in the same currency
mortgage is established on real
cures a contingent future claim or mortgage. as the claim secured, unless the
estate in order to secure a desig- a claim in an amount that has not
These solutions will enable parties provide otherwise in the
nated claim arising out of a spe- yet been fixed, up to a “capped”
more efficient use of mortgages mortgage agreement. This
cific legal relationship. Mort-
maximum figure—has been a par- in banking practice, for example means that the parties are free
gages have risen significantly in ticular cause of unnecessary com- using one mortgage to secure
to choose the currency of the
popularity over the last two
plications and transaction costs several future claims under a mortgage, which may differ
decades, chiefly because of the
without providing any apparent framework credit agreement or from the currency of the under-
dynamic growth in the home
benefit to the lender, the bor- line of credit. It will also be pos- lying claim.
lending market in Poland.
rower, or anyone else. The exis- sible to use a single mortgage to This will make it easier in
practice to deal with the issue
of converting the currency of
The new mortgage concept is designed to meet the the claim, because a change in
the currency of the claim will
needs of modern-day lending practices by
not require an amendment to
the wording of the mortgage.
allowing one mortgage to be used despite the fre- This will also make it possible

quent changes in lenders and claims that are com-

places so they have the increased
span of control to achieve prof-
itable economies of scale.
wrong choices
At many companies it is clear that oped need to be measured consis-
managers have been promoted
who do not have the skill sets to
take on the role of leader. They
are task-focused and poor with
people relationships. Many lead- ing business results.
ers use aggressive behavior
(highly oppositional, with an atti- velopment needs for leaders at dif-
tude of winning at all costs, a
power and hierarchy focus, and
poor communications) due to a
short-term focus on getting
things done versus building a
high-growth, decentralized cul-
ture that promotes excellent cus- coming a first-time leader of oth-
tomer service and agility for
change.
Make no mistake: aggressive
leadership behavior brings re-
sults in the short term. However, the same? This is a big jump, and
big money is often left on the
table in the form of missed op-
portunities for company leaders
who have not developed the skill
set with their managers to create bers for top performance, provide
constructive operating cultures.
Aggressive leaders cause poor
morale and defensive employee
things to do
Here are several practical aspects
of the leadership development
process to consider:
Leaders who are being devel-
tently on their business and finan-
cial results improvement. Compe-
tency development is critical, but
only within the context of improv-
It is essential to assess the de-
ferent stages in their career and at
the level at which they perform
leadership roles. Often the most
dramatic and difficult phase is
when a technical or professional
high achiever is promoted to be-
ers. Think of the top salesperson
that is cast in the role of sales man-
ager for the first time. Are the re-
quired competencies for success
emphasis must be placed on lead-
ership skills, such as how to accel-
erate team productivity, lead effec-
tive meetings, coach team mem-
formal and informal feedback, im-
prove communication skills, and
practice reward and recognition.
leader sees the business and its
development. The parent com-
pany and the board of directors
need to be involved in the man-
agement development process.
This means reviewing people in
the organization a level above the
board of management on a peri-
odic basis to ensure there is ex-
isting bench strength and proper
succession planning.
Potential and progress
A strong focus should be to dif-
ferentiate between the existing
performance of the leader and
the potential capabilities for that
person in the future. These are
fundamentally two different ways
of thinking. Diagnostic tests do
exist on the Polish market to see
if the leader is internally pre-
pared to engage in further devel-
opment efforts to become a bet-
ter leader. Many do not feel it
necessary to develop further, and
this should be flagged at the very
beginning before initiating the
development process. It seems
obvious, but it is rarely done.
When performing multilayer
feedback processes as part of
leadership development, it is
correlation to shareholder value.
It creates value for the partici-
pants (career marketability) but
not for the organization. Training
needs to be supported by coach-
ing and focusing on repeat
processes.
it pays off
The investment in creating lead-
ers with constructive behaviors
(achievement-focused, open, en-
couraging and supportive, help-
ing develop other leaders) is a
good way to increase financial re-
sults. But just as important, it is
one of the most rewarding as-
pects of business. Supporting
people to grow, having them de-
velop greater self-confidence and
take on greater responsibility, can
be a source of immeasurable sat-
isfaction. This overall focus on
culture and leadership develop-
ment characterizes the real busi-
ness elite worthy of our attention
and emulation.
monplace in today’s banking market.
unnecessary complications
Over the years, more widespread
use of mortgages in Poland as a
form of security revealed various
limitations and drawbacks in the
way mortgages functioned here.
It became clear that mortgages
as they existed in the Polish
legal system were not properly
adapted to the needs of the mar-
ket, compared to other countries
in the region, and as a result the
Polish lending market was not
functioning as efficiently as it
should. These were the find-
ings, for example, in the report
entitled The Influence of the
Legal Framework on the Se-
cured Credit Market in Poland,
issued in 2006 by the European
Bank for Reconstruction and
Development in conjunction
with the National Bank of
Poland. It was thus necessary to
revise the mortgage regulations
to better suit the evolving eco-
nomic situation and make the
tence of these two types of mort-
gages has meant that in a typical
secured credit transaction, two
mortgage agreements are re-
quired: the first for an “ordinary”
mortgage securing repayment of
the principal amount of the loan,
and the second for a “capped”
mortgage to secure the payment
of interest and other incidental
amounts that may arise in connec-
tion with the loan (fees, collection
costs and the like).
The current mortgage law has
also not enabled efficient use of
mortgages to secure bank claims
under various types of lending
arrangements, such as loans in
foreign currency, revolving credit,
credit lines, and consortium lend-
ing.
Problem-solving
One of the main changes is to
eliminate the problematic distinc-
tion between an “ordinary” mort-
gage and a “capped” mortgage.
When the amendment goes into
secure repayment of financing
provided by a consortium of
lenders for one transaction.
Under current practice, the lack
of this option has reduced the
flexibility required to carry out
complex financing deals in an
efficient manner, meaning that
under a single consortium
agreement it has been neces-
sary to establish a number of
separate mortgages to secure
the claims of the different
banks that are part of the con-
sortium.
The new mortgage will also
secure claims for interest, col-
lection costs and other inciden-
tal amounts, up to the overall
maximum amount of the secu-
rity, so long as such incidental
amounts are identified in the
agreement which serves as the
basis for registration of the
mortgage. If the entry in the
land and mortgage register
specifies the maximum amount
to use a single mortgage, de-
nominated in one currency, to
secure multicurrency credit, i.e.
several tranches of a loan issued
in different currencies. Until
now, a change in currency has
required the consent of the
owner of the real estate and
amendment of the mortgage.
This has entailed additional ac-
tivities and costs, such as draw-
ing up the relevant agreement
and making further entries in
the land and mortgage register.
Better serving the market
The changes introduced into
the Polish mortgage act bring
order to this area of the law and
eliminate inconsistencies that
had arisen between specific
regulations, and also bring
greater flexibility to the use of
mortgages, while reducing
transaction costs. The new
mortgage concept is designed
to meet the needs of modern-
day lending practices by allow-
ing one mortgage to be used
despite the frequent changes in
lenders and claims that are
commonplace in today’s bank-
ing market.

32 AMERICAN INVESTOR J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 33

EXPERT: Competition policy EXPERT: U.S. tax policy

The price of predictability What next in cross-border CIT?

Poland’s competition given to the structure of the
market or the characteristics of
authority seeks uni- the product. In previous years,
formly high penalties courts often stressed that fines
for abuses—if the must first and foremost reflect
the degree of fault associated
courts allow with specific violations, and
they may continue to follow this
be applied when ruling on
fines: above all, proportionality.
A fine must be proportional to
the nature, harmfulness and ef-
fects of the anticompetitive
practice. Nonetheless, the spe-
cific level of a fine must always
be determined by the court
The heated debate from a recess following the mid-
term elections that were held on
on how to reform November 2, 2010. During this
U.S. international short “lame-duck” session
tax rules continues (which ends when the new Con-
gress takes office in January and
includes outgoing members of
Congress), Congress focused on
2012 budget decisions
Some details may be expected
on February 7, when the Obama
administration is expected to re-
lease its 2012 budget, which tra-
ditionally outlines the adminis-
tration’s tax proposals and prior-
ities. While it is very difficult to

T
he “Guidelines on Set- By Sabina Famirska By Bernard E. Moens
line of precedent. considering the specific case. several measures, including predict the shape of the new

ting Fines for Infringe-
ments of Competition
Law” published by the Office of
Competition and Consumer
Protection (UOKiK) in January
2009 were received with great
interest by the media and com-
petition lawyers. They contain
detailed rules for setting fines
for participants in anticompeti-
tive practices. The common
view was that the guidelines
would bring greater trans-
parency to the actions of the
Polish competition authority.
The most serious antitrust violations would at-
legal adviser and member of the
Competition Law Practice Group at
Wardyński & Partners
thorities. Therefore courts do not
need to follow them when hearing
appeals from decisions issued by
the president of UOKiK. When
hearing appeals from fines, the
courts are only bound by the Pol-
ish Constitution and the laws
(universally binding regulations
concerning admissible fine levels
in antitrust cases are included in
the Act on Competition and Con-
In summary, judicial prece-
dent may weigh heavily on com-
petition fine assessment, serv-
ing as a check on UOKiK’s
penalty guidelines. If that hap-
pens, the guidelines will no
longer serve as an indicator of
fine levels for potential compe-
tition law violators.
Proportionality
Signs have also appeared that
the UOKiK guidelines will not
be significant when courts con-
sider levels of fines. In a judg-
office still important
Objections to the legal force of
the UOKiK guidelines do not
entirely deprive them of signifi-
cance. They continue to offer a
good prediction of fines which
UOKiK itself may impose for
similar violations. In earlier
years, fines for similar viola-
tions were often so divergent
that it was hard for businesses
to discern any underlying co-
herent policy. UOKiK, as a pub-
lic administrative body, is re-
quired to treat undertakings
similarly if the facts and legal
terms are alike. Undertakings
I
n the April 2010 edition of
American Investor, Todd
Landau and Mikołaj Woźniak
provided a brief overview of U.S.
international tax proposals in-
cluded by the Obama adminis-
tration in the fiscal year 2011
U.S. budget proposals. These
proposals would, among other
things, narrow the limitation of
U.S. deductions related to de-
ferred foreign income mainly to
U.S. interest expense that is re-
lated to deferred foreign income.
In addition, the fiscal year 2011
proposals no longer included the
In the spring and summer of 2010, Congress
principal, PwC USA
and Mikołaj Woźniak
manager, PwC Poland
portant changes to the U.S. in-
ternational tax rules, including
rules designed to prevent taxpay-
ers from splitting foreign tax
credits from the associated for-
eign income, rules limiting the
use of credits in connection with
certain asset acquisitions and in-
vestments in U.S. property by
foreign entities controlled by
U.S. shareholders, and rules de-
whether and to what extent to
extend the Bush-era individual
tax cuts that were enacted in
2001 and are scheduled to expire
at the end of 2010. On Decem-
ber 17, President Obama signed
into law a two-year extension of
these tax cuts for all taxpayers,
along with other provisions de-
signed to spur investment
growth and aid the unemployed
workforce.
more questions
Beyond this lame-duck session,
it is unclear which direction tax
proposals, several proposals have
been suggested, some of which
may be adopted in the 2012
budget proposals.
For example, certain propos-
als were presented by the mem-
bers of the National Commis-
sion on Fiscal Responsibility and
Reform. The commission met
on December 3, 2010, to con-
sider an updated deficit reduc-
tion plan issued earlier by com-
mission co-chairs Erskine
Bowles and Alan Simpson. The
plan did not receive the “super-
majority” of commission mem-
bers’ votes to be formally recom-
mended to Congress, but it is an

tract the maximum fines allowable under the Act

facing charges of violating com- important document that may
petition law have the right to
made several important changes to the U.S. in- influence the debate on various

on Competition and Consumer Protection of 10% expect that they will be treated
equally. The regulator realizes
ternational tax rules, including rules designed
subjects related to budget deficit
cuts, including the direction of

of the undertaking’s revenue in the last financial
year.
Seen as a successful attempt at
a coherent fines policy, they also
made it easier for businesses to
estimate the sanctions they were
likely to face. Nonetheless, the
guidelines made it clear that
UOKiK intended to pursue a
more aggressive fines policy: the
most serious antitrust violations
would almost certainly attract
the maximum fines allowable
under the Act on Competition
and Consumer Protection of
10% of the undertaking’s rev-
enue in the last financial year.
Before 2009, the fines were
much less severe. Indeed, in
December 2009 UOKiK im-
posed a record-high fine of PLN
411 million on cement produc-
ers suspected of participating in
a price-fixing cartel. Several
manufacturers received the
maximum penalty: 10% of their
2008 revenue.
not binding?
But the guidelines are not
legally binding. They should be
treated like all other interpreta-
tions or statements of state au-
sumer Protection). They are not
bound by the competition author-
ity’s interpretations and guide-
lines.
Although the regulations set
fines for competition law viola-
tions, even if unintentional, at a
maximum of 10% of an undertak-
ing’s revenue in the preceding
year, when assessing the fine the
court must also consider the du-
ration, degree and circumstances
of the violation, as well as whether
the undertaking is a repeat of-
fender. Therefore, courts may
evaluate completely differently
specific factors influencing levels
of fines, such as harmfulness to
competitors or consumers, the
duration of the violation, and any
aggravating or mitigating circum-
stances.
When hearing appeals against
UOKiK assessments, courts may
find specific factors identified in
the UOKiK’s guidelines entirely
irrelevant. The courts view levels
of fines holistically, or place
greater emphasis on certain ele-
ments, such as how intentional vi-
olations were, with less weight
ment of August 19, 2009, the
Polish Supreme Court held that
an undertaking may not draw
favorable inferences from the
guidelines in an appeal. The
guidelines are primarily to as-
sist the competition authority in
enforcing the Act on Competi-
tion and Consumer Protection,
but, the court held, there are no
legal grounds for such guide-
lines, and therefore they are not
binding on courts in appeals
from decisions by the president
of UOKiK. The court stressed
that when ruling on the level of
a fine, the courts should follow
the principle of proportionality,
which suggests that the amount
of the fine should depend not
only on the business’s overall
revenue, but on the amount of
revenue generated from sales of
the product involved in the anti-
competitive practice.
This Supreme Court ruling
points the way for lower, first-
and second-instance courts
considering appeals from deci-
sions by the president of
UOKiK. It provides criteria to
that any departure from princi-
ples contained in its own guide- to prevent taxpayers from splitting foreign tax
tax reforms. Among other
things, the plan recommends re-
lines, for or against particular
businesses, would be tanta- credits from the associated foreign income. ducing the corporate income tax
rate while widening the tax base
mount to violation of the consti- by repealing tax exemptions. It
tutional principle of equal treat- also supports moving to the ter-
ment by public authorities and 2010 proposal to repeal the U.S. signed to curb perceived abuses reform will take. Certainly, the ritorial tax system.
would provide an excellent ar- “check-the-box” rules in their involving “80/20” companies as fact that Republicans gained the It remains to be seen whether
gument for the courts. current form. On the other hand, well as restructurings by for- majority in the House of Repre- any of these proposals will be
A coherent sanctions policy the 2010 proposal to determine eign-based multinationals of for- sentatives and gained several enacted, but it is possible that
on the part of the Office of the effective tax rate of indirect eign corporations owned by the seats in the Senate (without this Congress may help shape
Competition and Consumer foreign tax credits on a foreign parent’s U.S. group. wresting outright majority con- changes to a U.S. tax system
Protection does not mean a blended/pooling basis was car- These proposals suggest that trol away from Democrats) will that may be significantly differ-
mild policy. Recent fines have ried forward to the 2011 budget Congress decided to forego mean that tax legislation will be ent from the one we now know.
displayed extreme severity, and proposals in substantially the broader tax reform related to in- more difficult to pass than when
the trend may be expected to same form. Some new solutions ternational taxation in favor of Democrats had control over both
continue in the future. Under- were also proposed, as men- several amendments that were houses of Congress. It would ap-
takings must therefore expect tioned in the April article. designed to close the existing pear, however, that deficit reduc-
higher penalties for participat- loopholes. tion will direct a significant por-
ing in anticompetitive practices. Reality check tion of the near-term legislative
In the spring and summer of Reviewing old ideas agenda.
2010, Congress made several im- Recently, Congress returned
Download this magazine!
American Investor is available in full as a pdf for
download from the www.amcham.com.pl web-
site. Go to "About Us" in the horizontal menu,
and choose American Investor Magazine from
the pop-up menu. You can download past
issues of American Investor dating
back to October 2010.

34 AMERICAN INVESTOR J A N UA R Y 2 0 1 1 J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 35

EVENT: Wrocław EVENT: Kraków

International Christmas Evening Winter Business Mixer

T he International Christmas Evening in
Wroclaw was co-hosted by AmCham
and the British, French, German and
Scandinavian chambers of commerce in
Poland. The event took place on December
1 2
O n December 9, 2010, the Kraków
Branch of AmCham hosted the
Winter Business Mixer, with a de-
licious dinner featuring Polynesian spe-
cialties, music, and the exquisite com-
1 2

8 at the Wrocław Puppet Theater. pany of AmCham members and friends.

The first part of the artistic program was The event took place at the Holiday Inn
devoted to international traditions. A choir of City Center Hotel in Kraków and was
students from different countries at the generously sponsored by Fluor,
Wrocław branch of the British International Goodyear, RR Donnelley, Amway, Sabre,
School of Cracow dressed in their national International Paper, Kroll Ontrack,
costumes and sang carols from all over the Miller Canfield, and ILoop Mobile.
world. This was followed by a performance 3 4 5
of international Christmas carols by Wro- Sponsors:
claw’s most famous gospel choir, the Spiri-
tuals Singers Band. The rest of the evening
continued to the accompaniment of modern 3 4
Christmas melodies from all over the world
as well as delicious Polish Christmas cuisine.
Our special thanks go to Platinum spon-
sors KPMG and Enel-Med Centrum Medy-
czne, Gold sponsors ING and Volvo, Silver
sponsors Euro Park Logistics and Skalski,
and Bronze sponsors Alma Consulting
Group, QNH, Kaufland, Dotpay and
Südzuker, as well as Product sponsors Bisc 6
Wrocław, Fagor Mastercook, MG Network,
PM Group, XPress, Bukiety Baranowska,
Cadbury, Coca-Cola, Mambertz, Adoria, and
Starbucks Coffee.
Our raffle sponsors were Fagor Master-
cook, XPress, Trinity Corporate Services,
Q4Net, Scandic Wrocław, Bissole Business
Travel, ING, Grafton Recruitment, Bukiety
Baranowska, Hertz, Raben, Hotel Monopol
Wrocław, Kelham Group, CPL Jobs, Wrocław
Aqua Park, Enel-Med Centrum Medyczne, 5 6
Steelcase, Samsung, and Sony Ericsson. The
Warsaw Business Journal was a media part-
ner of the event.

7 8 9

9
10 11 12

1. Guests arriving at the Puppet Theater. 2. Guests enjoy conversations and sweet snacks. 3. Volvo representatives: Małgorzata
Ryniak, who is also a Honorary Consul of Sweden in Wrocław, and Detmar Kampman. 4. Martin Oxley, British Polish Chamber of
Commerce. 5. Small talk. 6. Children's Choir from BISC Wrocław. 7. Piotr Freyberg, 3M Poland; Paweł Tenerowicz, Karolina
Figura, Krzysztof Furtan, Richard A. Walawender, Miller Canfield. 8. Agnieszka Schubert, Significa Recruitment; Paweł Panczyj,
E&Y; Maciej Wiewiórski, Wiewiórski Law Firm; Tomasz Gondek, Wrocław Agglomeration Development Agency. 9.The Spirituals
Singers. 10. A lucky raffle winner. 11. Alon Riedlich, International Technology Sourcing; Ilona Chodorowska and Martin Oxley,
BPCC. 12. Iwona Makowiecka, German-Polish Chamber of Industry and Commerce; Ilona Chodorowska, Joanna Bensz, Am-
Cham Wrocław Director.
1. Mike Dietz, Sabre Holdings. 2. Monika Pilarska, AmCham Kraków Branch Director; John Lynch, AmCham Board Member. 3.
Ewa Martuszewska, Fluor. 4. John Lynch; Allen S. Greenberg, U.S. Consul General in Kraków. 5. The UPS team. 6. Allen S.
Greenberg; Przemysław Siuda, Amway Business Center Europe. 7. Jacek Kasz, RR Donnelley; Dorota Adamska, BP. 8. Marta
Konopacka and Teresa Filipek-Przybyłowicz, Goodyear Poland. 9. Paul Fogo, AmCham Board Member; Marzena Drela, Am-
Cham Deputy Director.

J A N UA R Y 2 0 1 1 AMERICAN INVESTOR 37
EVENT: AmCham General Meeting Sponsors: EVENT: Wrocław

For the benefit of AmCham Business breakfast

A T
mCham 1 2 7 he main topic discussed during the AmCham 1
held its An- Business Breakfast in Wrocław in December
nual General was cooperation between industry and aca-
Meeting on De- demic in Lower Silesia. AmCham Executive Direc-
cember 7, 2010, at tor Dorota Dabrowski introduced the report Indus-
the Marriott War- try-Academia Cooperation in Poland: Challenges
and Ways to Narrow the Gap, which was based on a
saw. Special guests survey of AmCham members. Radek Majda of
included Bill Hamilton Sundstrand, Bill Hall of Pittsburgh Glass
Heidt, Chargé Works, and Aldona Wiktorska-Święcka of the Uni-
d’Affaires at the versity of Wrocław were the speakers.
U.S. Embassy, and
Polish MP Adam
Szejnfeld (see ar- 8
ticle on page 16).
The business of 3 2 3
approving the Am-
Cham Annual Re-
port and electing
new members of
the AmCham
Board went
smoothly. The or-
ganization also
thanked Roman 9
Rewald for his two
terms as AmCham
Chairman. For a 4 5
detailed report,
see the Newsline
section on page 5.
Food for the
event was spon-
sored by Marriott,
and Pepsi-Cola
and Dobrewina 10
were drink spon-
sors.
6 7

4 5 6

11
8 9

1. Adam Szejnfeld, M.P; William Heidt, Deputy Chief of Mission, U.S. Embassy. 2. AmCham members vote. 3. Dorota
Dabrowski, AmCham Executive Director, with Board Members: Tony Housh, APCO Worldwide; Peter Kay, KPMG; Joseph
Wancer, Deloitte; Roman Rewald, Weil, Gotshal & Manges; Stan Popow, FinaCorp; Judith Gliniecki, Wierzbowski Eversheds;
Robert Koński, Kulczyk Investments; Piotr Jucha, McDonald's Polska; Paul Fogo, Miller Canfield; Thomas Kolaja, Alvarez &
Marsal Poland; Rick Lada, Telesto and Anna Sieńko, IBM Polska. 4. Roman Rewald; Marzena Drela, AmCham Deputy Director;
Dorota Dabrowski, Anita Kowalska, AmCham. 5. Janusz Wołejko, Kato Lab; Angelo Pressello, Direct Communication. 6. Peter
Kay; Paul Fogo. 7. Matthew Tebeau, Heidrick & Struggles; Judith Gliniecki; Thomas Kolaja. 8. Anna Sieńko; Roman Rewald;
Tony Housh. 9. Adam Szejnfeld; Rick Lada. 10. Piotr Jucha; William Heidt. 11. Lesław Kuzaj, GE International; John Lynch. 12.
Lisa Caruso, U.S. Commercial Service; Peter Święcicki, Squire Sanders.
12
1. Bill Hall, Pittsburgh Glass Works. 2. Dorota Dabrowski, AmCham Executive Direc-
tor; Bill Hall; Joanna Bensz, Amcham Wrocław Director. 3. Aldona Wiktorska-
Święcka, University of Wrocław. 4. Krzysztof Sachs, E&Y; Bill Hall. 5. Paweł Tenerow-
icz, Miller Canfield; Radek Majda, Hamilton Sundstrand; Joanna Bensz; Mike Whit-
ney, Adoria Winery, promoting his products. 6. Radek Majda delivers his presenta-
tion. 7. Krzysztof Sachs; Tomasz Wroński, IBM Polska. 8. Krzysztof Sachs; Joanna
Bensz. 9. Joe Kozlak, C. H. Robinson Europe; Dorota Dabrowski; Bill Hall.

38 AMERICAN INVESTOR J A N UA R Y 2 0 1 1
SUMMARIES: in Polish AMCHAM: Guide to Committees

W tym numerze:
For the most recent information about the work of AmCham Committees, and upcoming events: www.amcham.com.pl
COVER STORY Agri & Food European Union Affairs Pharmaceutical

wirtualny garnek www.amcham.com.pl/agri_food

Mission: To provide a plat-
form for discussing and
www.amcham.com.pl/eu
Mission: To provide
members with relevant
www.amcham.com.pl/pharmaceutical
Mission: To discuss and
identify common interests

Nie tylko technologia jest siła napę- solving issues and identify-
ing opportunities for com-
information on E.U. re-
lated issues, including
and exchange information re-
garding Poland’s pharmaceu-

dową różnych modeli biznesu

panies in the agricultural E.U. funds, and to repre- tical market; to act as a repre-
and food sector by creat- sent American investors sentative body and collective
ing a base for dialogue and expertise leveraged before the Commission and the Polish govern- voice of pharmaceutical companies before governmen-

stosowanych w Internecie. Postawy

among producers, sector professionals, experts and ment. Co-Chairs: Magdalena Burnat Mikosz, De- tal institutions. Co-Chairs: Peter Koetsier, Bristol-Myers
decision-makers. Co-chairs: Andrzej Pawelczak, loitte; Jerzy Thieme. Squibb Polska; Roberto Servi, Eli Lilly Polska.
Animex; Maciej Łubieński, Universal Leaf Tobacco

konsumenckie wobec nowych pro- Poland.

Consumer Products
Financial Services
www.amcham.com.pl/financial Political Discussion Forum
www.amcham.com.pl/pdf
duktów i usług mają krytyczny www.amcham.com.pl/consumer
Mission: to provide a
Mission: The Financial
Services Committee aims
to identify and promote is-
Mission: To build relation-
ships with key players in

wpływ na działanie poszczególnych sues related to and in sup- Polish politics, regardless of
forum to share knowl-
port of the financial serv- whether within the govern-
edge and exchange ex-
ices sector, as well as to ment or not, in small groups

modeli biznesowych. Raport

perience in all areas
provide a forum for dialogue among sector profes- and in private settings, to
common and relevant to
sionals and decision-makers in government. Co- serve as a vehicle into the
manufacturers and dis-
world of Polish politics behind official curtains. Co-

KPMG analizuje te postawy

tributors of goods. Co-Chairs: Małgorzata Surdek, Chairs: Andrew Hope; Adam Michon, MetLife.
chairs: Richard Knauff; Marek Matraszek, CEC Govern-
CMS Cameron McKenna; Agnieszka
ment Relations.
Dzięgielewska-Jończyk, HP Polska. Health
uwzględniając geograficzne re- Corporate Social Responsibility
www.amcham.com.pl/health
Mission: To provide a
Real Estate Committee
www.amcham.com.pl/real_estate
giony, wiek konsumentów oraz
united forum for U.S. com-
www.amcham.com.pl/csr panies to share their ex- Mission: To discuss issues
pertise on the healthcare regarding the complexities
Mission: To encourage and

technologie, którymi się posługują, system and exchange of the real estate market in
facilitate responsible busi-
knowledge and experience Poland, and exchange infor-
ness practices among Am-
with national counterparts, contribute to the positive mation. To be an educa-

str. 16.
Cham members to support
developments in the sector and promote the U.S. ex- tional and networking forum
them to improve the quality
perience and capital while establishing the best con- for members and to lobby and influence legislative
and effectiveness of their
ditions and opportunities for investments.Co-Chairs: departments of the Polish government. Chair: Halina
CSR programs. Co-Chairs: Wojciech Arszewski,
Elisabeth Asirifi, IBM Polska; Jolanta Chlebicka-Do- Więckowska, K & L Gates; John Bańka, Colliers Inter-
UPS Polska; Anna Jawor, IBM Polska.
General Meeting miniak, Johnson & Johnson. national.
kredytów hipotecznych będą stanowić bardziej efektywny instrument
dla zabezpieczania tranzakcji, str. 33 Small & Medium-Sized Enterprises
zaprzyjaźnij się z Przyjaznym Państwem Gość walnego
Defense & Security Infrastructure www.amcham.com.pl/sme
cena przewidywalności Organy odpowiedzialne za ochronę www.amcham.com.pl/defense www.amcham.com.pl/infrastructure
zgromadzenia członków AmChamu, poseł Adam Szejnfeld, konkurencyjności rynku mają tendencję do nakładania wysokich kar Mission: To provide a forum
wypowiada się na temat prac sejmowej komisji Przyjazne Mission: To serve as a plat- Mission: To discuss is-
za łamanie zasad konkurencyjności, ale sądy mogą mieć inne zdanie for exchange of ideas/best
Państwo, str. 17 form for defense industry is- sues of the development practices to improve the per-
na ten temat, str. 34 sues and exchange relevant of infrastructure; to pro- formance of SMEs; to iden-
co z transgranicznym cit? Gorąca debata na temat reform sys- information. The committee mote infrastructure solu- tify and promote solutions to
Spis członków AmChamu temu opodatkowania transgranicznego, str. 35
creates a networking forum
and fosters a positive work-
ing relationship with the government and people of
tions for cooperation be-
tween private and public
partners. Co-Chairs: Krzysztof Wierzbowski,
facilitate and support the
managerial and operational
efforts of SMEs through educational, networking or lob-
Firmy członkowskie Spis alfabetyczny, str. 19
Relacje zdjęciowe
Poland. Co-Chairs: Leda Zilinskas, Raytheon Inter- Wierzbowski Eversheds; Andrew C. Kapusto, bying efforts that leverage the resources and knowl-
national; Paul Zalucky. Raytheon Homeland Security. edge of AmCham and its membership. Co-Chairs:
członkowie indywidualni Spis alfabetyczny, str. 22
Alain Bobet; Cezary Krasodomski, Cisco Systems.
Międzynarodowy wieczór bożonarodzeniowy we Wrocławiu, str. 36 Intellectual Property Rights
Zimowe mikser biznesowy w Krakowie, str. 37 Walne zgromadzenie Employee & Labor Relations www.amcham.com.pl/ipr
Focus członków Amerykańskiej Izby Handlowej, str. 38 Spotkanie bizne-
sowe we Wrocławiu, str. 39
www.amcham.com.pl/labor Mission: To advocate for
IPR protection and provide
Tax
www.amcham.com.pl/tax
Mission: To create an infor-
mocniejsza organizacja z roku na rok Wywiad z dyreko- mation exchange forum of leadership that will bring
Mission: To provide a platform
rem zarządzającym Amerykańskiej Izby Handlowej, Dorotą together interested part-
Działy stałe
HR professionals and so- for identifying tax issues and
Dabrowski, str. 23 ners; to share information
cial policy experts from create an educational forum to
with decision-makers and
multinational and local keep AmCham members in-
krocząc drogą do sukcesu Wywiad z byłym prezesem Briefing redakcyjny, str. 2 law enforcement. The police, judiciary, prosecu-
formed on current and up-
Amerykańskiej Izby Handlowej, Romanem Rewaldem, str. 24 companies to share, dis- tors, customs officials, legislators and journalists
cuss and learn about the latest trends in HR man- coming legislation. To create a
List Dyrektor Zarządzającej AmCham, str. 4 are among the target groups, while the curriculum
network to share information, comments and best prac-
energia przyszłości Tworząc program energii atomowej pol- agement and collectively influence local policy and of law schools should have more emphasis on IPR.
tices. To lobby decision-makers in the government.
ski rząd powinien skorzystać z potencjału technologicznego Informacje o firmach członkowskich Izby, str. 5 decision-makers for modern solutions in labor leg- Co-Chairs: Agnieszka Wyszyńska-Szulc, Philip Mor-
Co-Chairs: Peter Kay, KPMG; Piotr Bartuzi, Bank BPH.
firmy GE Hitachi Nuclear Energy, str. 26 islation. Co-Chairs: Jolanta Jaworska, IBM Poland; ris; Anna Lasocka, Łaszczuk & Partners.
Informacje o działalności Komitetów Izby, str. 8 Peter Strupp, United Business Development.
Telecom
Eksperci
Podsumowanie zawartości numeru w języku polskim, str. 40
Outsourcing/High Tech www.amcham.com.pl/telecom
Environment & Energy www.amcham.com.pl/outsourcing
Przewodnik po Komitetach Izby, str. 41 www.amcham.com.pl/environmental Mission: To create a platform
akcyza Nowe przepisy regulujące wysokość akcyzy na Mission: To provide a plat- under the AmCham umbrella
poszczególne towary spowodują wzrost cen wyrobów tyto- Mission: To help members form for discussing, identi- for the exchange of members’
develop their environmental ideas and views on trends in
niowych, str. 30 © American Chamber of Commerce
fying and addressing com-
and renewable energy busi- mon SSC/BPO issues re- the telecommunications sec-
in Poland 2011. All rights reserved. ness and help learn about,
Rekordziści rozwoju Badanie rozwoju firm technolo- lated to high tech opera- tor in Poland; to take steps to
gicznych przeprowadzone przez Deloitte w Europie Środkowej identify and overcome any tions; to maintain contact influence decision-makers in telecommunications legis-
American Investor to oficjalny magazyn Amerykańskiej Izby Handlowej w Polsce. Magazyn difficulties connected with with local authorities, educational and governmental lation, policy and practice; to promote innovative
i Wschodniej, str. 31 environmental laws, and develop a discussion forum
reprezentuje głos środowisk międzynarodowego biznesu w Polsce. Celem magazynu jest institutions to present a unified business perspective trends in telecommunications; to modernize communi-
liderzy biznesu Przywódzwto w biznesie polega na podej- among members about environmental issues and and to suggest ways of possible cooperation. To cations technology for business and the average Polish
dostarczanie członkom Izby i innym czytelnikom aktualnych informacji na temat działal-
maintain contacts with Polish authorities responsible identify the possibilities/areas of state assistance, to consumer. Co-Chairs: Jarosław Roszkowski, Crowley
mowaniu dzialań a nie zajmowanej pozycji w strukturze firmy, ności Izby a także trendów biznesowych i polityce społecznej firm. for making and implementing environmental policies.
str. 32 share experience and leverage knowledge. Co- Data Poland; Piotr Muszyński, TP SA.
listy do rekacji prosimy wysyłać na adres poczty elektronicznej: Co-Chairs: Adam de Sola Pool, Jerzy Chlebowski, Mit- Chairs: Ramón A. Tancinco II, Cisco Systems
tomasz.cwiok@amcham.com.pl subishi.
Rynek kretytów hipotecznych Nowe regulacje dotyczące Poland; Jacek Stryczyński, Lionbridge.

40 AMERICAN INVESTOR J A N UA R Y 2 0 1 1
AmCham Member to Member

We’re all
in this
together