17 July 2004 ISBEE 3rd World Congress 1
Governance, trust and sustainability
Australian Catholic University
Centre for Research
into Ethics and Decision-making
in Organisations
17 July 2004 ISBEE 3rd World Congress 2
The workshop
• Work in progress
• A monthly meeting of academics,
business people and consultants
• Exploring common interest in
philosophy and its practical application
• Work in progress
• A monthly meeting of academics,
business people and consultants
• Exploring common interest in
philosophy and its practical application
forum
A story - Penrith Lakes
Structure of governance
Introduction
In 4 parts: 1.30 pm - 3.30 pmJohn Little
Ian Stainton Stephen Ames
Tom DalyRick Hayes
Sean McNelisJamie Pearce
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Governance foundations of trust
A dynamic structure for human flourishing
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Why governance?
Some recent crises• National Australia Bank
• Telstra
• HIH insurance
• Enron
• Arthur Andersen
• Victorian Police
• Iraq - treatment of prisoners Not just a question of having ethical
codes, legal systems, infrastructure or
commitment of senior people;
but ultimately of having
“good” character,
on the ground.
Attributed to:
• Distrust between directors
• Independence of advice
• Profit obsession
• Lack of transparency / accountability
• Political pressure
• Corrupt organisational culture….
This workshop explores what this might mean
Where the actions of one or a few can
destroy much and many
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Our structure of governance - with the person at the centre…
The Ground
Achievement shared
“The Good”
Choice
The Person
Trust
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…and from the centre of the person (wonder) arise questions
Questions are powerful -
as:
• indicators of openness
• initiators of change
• the basis of control and
coordination - and of
progress and development
• the ground from which we
develop ourselves
• a way to correct bias and
illusion
Questions: the key to our structureQuestions: the key to our structure
Yet questions may be:• overlooked
• ignored
• not asked
• suppressed
• not heard
Yet questions may be:• overlooked
• ignored
• not asked
• suppressed
• not heard
Hence, questions can be:
a source of inner tension,
as bias and illusion may
dominate choice
Hence, questions can be:
a source of inner tension,
as bias and illusion may
dominate choice
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If questions are the key….some questions about questions
How might we get hold of the key?
How many questions can we ask?
How might we classify questions?
What sort of questions are there?
Where do questions come from?
Why are questions not asked?
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Short answer
Long answer
Who?, what?,
When?, where?..
Why?, how?
Is it?
Will I?
explanation
yes, no
………data1
2
3
4
….. (maybe)
be attentive
be intelligent
be reasonable
be responsible
Questions ………. classified by the sorts of answers they seek
be open and driving
choice
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Our story of Penrith Lakes places a key person at the centre…
The Ground
Achievements shared
The Good
The Person responsible
reasonable
intelligent
attentive
open
and a range of productsfrom cooperating
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THE PLACE
• A SAND AND GRAVEL DEPOSIT IN A DEPOSITIONAL RIVER FLOOD PLAIN 36,000 YEARS OLD.
• IN WESTERN SYDNEY AT THE FOOT OF THE WORLD HERITAGE LISTED BLUE MOUNTAINS.
• ON THE SHORES OF THE NEPEAN RIVER IN THE MAJOR HAWKESBURY NEPEAN WATER CATCHMENT.
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PENRITH LAKES SCHEME
• SHARED VISION OF MANY OTHER STAKEHOLDERS
N.S.W. GOVERNMENT
PENRITH CITY COUNCIL
THE COMMUNITY
• AUSTRALIA’S LARGEST CONSTRUCTION MATERIALS QUARRY
• THREE LEADING AUSTRALIAN COMPANIES BORAL – RINKER (USA) – HANSON (UK)
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SCHEME’s CONTEXT
Regional Context:
• Provides 450 full time jobs• A$50 million to regional city economy
• Supplies 75% of Sydney’s construction sand market
• Supplies 60% of Sydney’s construction gravel market
• Scheme has put Penrith City in International arena as an Olympic regional City of Sydney
• Attracted over $40 million of State investment
• A$150 million per year to western Sydney region
• Major employment potential in recreation & tourism
Local Context:
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IN THE BEGINNING
COMPETING SCHEME CONCEPTS
LARGE MAIN LAKE SCHEME - ABUNDANCE
Competing Concepts
WETLANDS SCHEME - SCARCITY
• Maximised Environmental Benefits
• Maximised Recreational Benefits
• Affordable to build • Extra $90 million to build
• Supported by: • Supported by: • Government
• Council • Community
• Affordable to maintain
• Industry
• High maintenance costs
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CHANGE
BY “CONSULTATION”
• Extra $90 million to build offset by urban revenues shared with the community stakeholders
• Supported by: • Government • Local Council
• Community
• Industry
LARGE MAIN LAKE SCHEME
URBAN DEVELOPMENT
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ABORIGINAL HERITAGEEUROPEAN HERITAGE
ENVIRONMENT
RECREATION
WATER MANAGEMENT
RESOURCES
EMPLOYMENT
FLORA & FAUNA AGRICULTURE
TRAFFIC
LAKES VILLAGETOURISM
ECONOMIC IMPACTS
FLOODING
SAFETY
A COMPLEX BALANCE for QUALITY COMMUNITY OUTCOMES
BUILDING TRUST
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INNOVATIVE LEADING EDGE MODEL
• FINDING CHAMPIONS
• OPEN AND TRANSPARENT
• BEING CREATIVE
• BEING GENUINE AND GOING THE EXTRA MILE
• INVOLVING STAKEHOLDERS NOT JUSTTALKING AT THEM
• SPEND A DOLLAR TO MAKE A DOLLAR
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THE PENRITH LAKES COMMUNITY IN 2004
• LAKE SIDE VILLAGE MASTER PLANNING IN PROGRESS
•PARK MASTER PLANNING IN PROGRESS
• 400 HECTARES OF LAKES COMPLETED
• ABORIGINAL EDUCATION & RESEARCH CENTRE OPERATING
• ENVIRONMENTAL EDUCATION CENTRE OPEN
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PENRITH LAKES – Converted high standard extractive industry to world class, Olympic venue, tourist attraction, recreational parkland, high quality
ecosystem management and high profit residential after use.
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Penrith Lakes
Was it a fluke?
It was no fluke, but an achievement of good governance
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Our structure of governance - with the person at the centre…
The Ground
Achievement shared
“The Good”
Choice
The Person
Trust
Control
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Our four sorts of questions
1
2
3
4
Sense and memory.
our experience
imagination,perception
intelligence ideas, conceptsunderstanding,insight
reason what is true, real, fact / riskjudgment
responsibility Change - and controldecision
give us...through our powers of..
enquiry
talk
walk
wonder
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Our powers of control are extensive -
and the basis of integrity - and virtue
1. within oneself
2. in transactions
with others
be attentive
be intelligent
be reasonable
be responsible
be open
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1. within oneself, personal integrity is when..
directs/controls
performance
in any part
..the integrating
power of
the whole
be attentive
be intelligent
be reasonable
be responsible
be open
We call this the mind’s minder, or
the heart of mind
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2. with others, integrity underpins social interaction..
1. Research
2. Interpretations / possibilities
choice
be attentive
be intelligent
be reasonable
be responsible
be open
..in 8 dynamicvalue-adding stages
3. Facts / reality / probabilities
4. Positions 5. Vision, mission / value
6. Policy / strategy
7. Plan / capability
ACTION on the GROUND8. Valued products /
by-products
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ACTION on the GROUNDValued products /
by-products
In summary, a large view of control….
Research
Interpretations / possibilities
Facts / reality / probabilities
Positions
Learn
Vision, mission / value
Policy / strategy
Plan / capability
Lead
be attentive
be intelligent
be reasonable /critical
be responsible
be open
deliberate
Past Future
monitor
Choose
coordinate
implement
commit
Link
review / evaluate
consider
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…Control’s roots are on “the Ground”
as matter, all we can touch, see, smell, etc..
as body, enwraps and expresses
‘the person’
as data, evidence of past and present achievement
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..and control seeks “the good” - limited or large
Human good
Particular goods
Openness to transcendent reality
Friendship
Integrity
Truth
Beauty
Achievement (in work and play)
Life itself T Daly
fulfilling work
safe workplace
just wage
quality product
ROI
profit
Good order
sustainability
growthjob opportunities
reputation
fair dealings
Rights & Responsibilities
environment
The golden rule
The sleep test
Values
community
personal
social
Personal good
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Control, when conflict about “the good”…
peace
development
third, go forward
dialoguesecond, go back
negotiate
persuade
be open
be patient
first, manage selfpositions
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…and accounted for
StakeholderStakeholder
DirectorDirector
Executive CEOExecutive CEO
ManagerManager
SupervisorSupervisor
“The Good” - control down the line...
OperatorOperator
entrusted
Trust affir
med
exchanged / transacted
CustomerCustomer
$resourcespowersrightsvalues