[email protected] 1 ethical behavior & csr for sasac managers sept. 6th 2012 laurent...
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ETHICAL BEHAVIOR & CSRFor SASAC managers
Sept. 6th 2012
Laurent [email protected] – 0478 62 14 20
(www.philoma.org)
Reflecting on ethical behavior in business today Reflecting on ethical behavior in business today11
Reflecting on Corporate Social Responsibility todayReflecting on Corporate Social Responsibility today22
Reflecting on the type of leadership needed to promote ethical behavior & CSRReflecting on the type of leadership needed to promote ethical behavior & CSR33
Case 1 : What would you do if you were the CEO of the Car Company ?
Case 1 : What would you do if you were the CEO of the Car Company ?
Would you retrieve the car from the markets or not ?
Would you retrieve the car from the markets or not ?
Case 2: What would you do if you were Steve Lewis ?
Case 2: What would you do if you were Steve Lewis ?
Would you go to the meeting or not ?
Would you go to the meeting or not ?
“Become who you are”(Friedrich Nietzsche)
“How do my feelings and intuitiondefine, for me, the ethical dilemma?”
(To respect oneself or to be loyal – loyal to whom?)
“Which of the values that are in conflictare most deeply rooted in my life
and in my community?”
(To consider the dilemma as his parents’ son)
“Looking to the future,what is my way
(not the way of others)?”
(To become partner in an investment bank)
“What combinationof expediency and shrewdness, coupled withimagination & boldness, will moveme closer to my personal goals?”
(To go to St Louis but to participate to the presentation)
Who am I?
Source: Badaracco (1997); adapted by Ledoux
Lewis’ possible questions
Ethics, a major branch of philosophy, encompasses right conduct
& good living
An ethos is the doctrine of a particular art
of living the best possible life and the means to pursue this aim
(i.e. to live happily or to search for truth)(Marcel Conche, philosopher)
Ethics, a major branch of philosophy, encompasses right conduct
& good living
An ethos is the doctrine of a particular art
of living the best possible life and the means to pursue this aim
(i.e. to live happily or to search for truth)(Marcel Conche, philosopher)
« Ethos » in Greek: custom, habit, way of behaving in an environment
« Ethos » in Greek: custom, habit, way of behaving in an environment
The primary meaning of «Ethos» or «Ethics» has therefore to do with: making your way,positioning yourself in an environment
The primary meaning of «Ethos» or «Ethics» has therefore to do with: making your way,positioning yourself in an environment
A morality is a set of duties & imperatives (positive or negatives)
that a society or a community gives to itself & which enjoins its members to conform their behaviour,
«freely» & in an «unselfish» way, to certain values enabling to distinguish right & wrong.
A morality is a set of duties & imperatives (positive or negatives)
that a society or a community gives to itself & which enjoins its members to conform their behaviour,
«freely» & in an «unselfish» way, to certain values enabling to distinguish right & wrong.
Codes of conducts &Mission statements
Legalduties
Heuristics(«sleep-test» rules)
Moral or ethicalprinciples
Possible sources when facing an ethical dilemma
Institutional structureFixity & consistency
Individual processesAdaptability & responsiveness
Results“Doing good”
Principles“Doing right”
VirtueEthics
(Aristotles, Gilligan,…)
DevelopmentEthics
(Etzioni, Covey,…)
DeontologicalEthics
(Kant, Rawls,…)
TeleologicalEthics
(Bentham, Mill,…)
Source: Fisher & Lovell (2003); adapted by LL
4 main categories of ethics
The Texas Instrument Ethics Quick Test (2001)
Is the action legal?
Does it comply with TI values?
If you do it, will you feel bad?
How will it look in the newspaper?
If you know it’s wrong, don’t do it!
If you’re not sure, ask.
Keep asking until you get an answer.
Suez’ code of ethics
Questions to ask yourself in front of an ethical dilemma
• Is it conform to the law ?• Is it conform to the ethical code and values of my company ?• Am I conscious that my decision can engage other people in the
company ?• Do I feel alright with my decision ?• What would the colleagues think about my decision ?• What if it would be published in a newspaper ?• What would my family think about it ?• What if everybody would do the same ?• Should I question the person in charge of deontology ?
Case 3: What would you do if you were M. Wang, the head of the marketing department ?
Case 3: What would you do if you were M. Wang, the head of the marketing department ?
Would you fire Mrs Jie ? Would you fire Mrs Jie ?
Who are we ?
“What are the other strong, persuasive,competing interpretations of the situation or problem that I hope to useas a defining moment for my org.?”
(To understand that, for Walters, the basic ethical issuewas irresponsibility: McNeil’s for not pulling her weight &his for not taking action)
“What is the cash value of this situationand of my ideas for the people
whose support I need?”
(Refine his message and shape it to the psychological &political context in which he was working, in terms
of raising productivity or improving recruiting)
“Have I orchestrated a processthat can make the values
I care about become the truthof my organization?”
(After hiring McNeil, to start quickly to let her & her work knownto his bosses & to campaign for a more family-friendly workplace)
“Am I playing to win?”
(To take swift actions to counter Walters: While Adario was out of the office, she worked with one of the bosses to swiftly resolve McNeil’s issue)
“Truth happens to an idea.Its verity is in factan event, an idea”
(William James)
Wang’s possible questions to think «internal» dilemmas
Source: Badaracco (1997); adapted by Ledoux
Case 4: What would you do if you were Edouard Sakiz, the CEO of Roussel-Uclaf ?
Case 4: What would you do if you were Edouard Sakiz, the CEO of Roussel-Uclaf ?
Who is theorganisation?
“Have I done all I can to secure myposition and the strength & stabilityof my organization?”
(To refrain to take decisions that could expose directlyThe organization or to confront the BoA’s president)
“Have I thought creatively & imagina-tively about my organization’s role
in society & its relationshipto its stakeholders?”
(To orchestrate a public debateamong the different stakeholders)
“Should I play the lion or the fox?”
(To organize and support a vote that will triggera massive counter-reaction from other actors)
“Have you done all you can to strike a balance,both morally & practically?”
(To market the new drug without endangering the organization)
“Ethics result from the inescapabletension between Virtue & Virtu”
(Aristote & Machiavel)
Source: Badaracco (1997); adapted by Ledoux
Edward Sakiz’s possible questions
* Synthesis based on the texts from André Comte-Sponville, Marcel Conche & François Jourde
* Synthesis based on the texts from André Comte-Sponville, Marcel Conche & François Jourde
Economic, technical & scientific orderPossible vs. Impossible
(Natural and rational Law)
Economic, technical & scientific orderPossible vs. Impossible
(Natural and rational Law)
Juridical & political orderLegal vs. Illegal
Juridical & political orderLegal vs. Illegal
Moral orderRight vs. Wrong
(Universal or universalisable duties)
Moral orderRight vs. Wrong
(Universal or universalisable duties)
limits
limits
limitscompletes
Ascending hierarchy forindividuals
Ascending hierarchy forindividuals
Ethical orderGood vs. Bad
(Self, subjective or relative Will)
The 4 orders & the tensions between the individual and the group
Descending hierarchyfor groups
Descending hierarchyfor groups
WisdomsWisdomsSpiritualities
Metaphysics(secular or religious)
SpiritualitiesMetaphysics
(secular or religious)
possibly induces
Ask yourself these questions concerning the decision you wish to take
4. Light-of-day test. Would I feel good or bad if others (friends, family, colleagues) were to know of my decision and action?
5. Virtuous mean test. Does my decision add to, or detract from, the creation of a good life by finding a balance between justice, care and other virtues?
Deontological ethics
6. Veil of ignorance/Golden Rule. If I were to take the place of one of those affected by my decision and plan would I regard the act positively or negatively?
7. Universality test. Would it be a good thing or a bad thing if my decision and plan were to become a universal principle applicable to all in similar situations, even to myself?
Development ethics
8. The communitarian test. Would my action and plan help or hinder individuals and communities to develop ethically?
9. Self-interest test. Do the decision and plan meet or defeat my own best interests and values?
Teleological ethics
11. Utilitarian test. Are the anticipated consequences of my decision and plan positive or negative for the greatest number?
12. The discourse test. Have the debates about my decision and plan been well or badly conducted? Have the appropriate people been involved?
3. Hedonistic or intuitive test. Does my decision correspond with my gut feeling and my values? Does it make me feel good?
Corporate credos & mission statements
Legal duties
2. Organisational test. Is my decision in accordance with my organisation’s rules of conduct or ethics
1. Legalist test. Is my decision in accordance with the law?
Virtue ethics
+/- Veto
Respect of ethical principles
Heuristics
10. Consequential test. Are the anticipated consequences of my decision and plan positive or negative?
12 tests filter to validate or reject a decision
Trigger
Reflecting on ethical behavior in business today Reflecting on ethical behavior in business today11
Reflecting on Corporate Social Responsibility todayReflecting on Corporate Social Responsibility today22
Reflecting on the type of leadership needed to promote ethical behavior & CSRReflecting on the type of leadership needed to promote ethical behavior & CSR33
MotivationIn whose interest & why?
• For Share- or Stakeholders?• Marketing opportunism or moral duty?
Power locusWho drives CSR?
• Internally: managers or «corporates»?• Externally: Govs, NGOs or corporates?
MethodHow to promote it?
• Regulation or self-regulation?• Soft or hard?
• Global or Issue-related?
DynamicHow did/does CSR evolve?
• Concept’s evolution so far?• Today’s logic in a globalized economy?
Corporate Social ResponsibilityThe entirety of obligations legally required or voluntarily assumed by an enterprise to pass as an imitable model of good citizenship within a given field (Jean Pasquero)
Corporate Social ResponsibilityThe entirety of obligations legally required or voluntarily assumed by an enterprise to pass as an imitable model of good citizenship within a given field (Jean Pasquero)
Economic
Environmental
Social
The three dimensions of CSR
Fair
Viable
Sustainable
Livable
Yesterday’s representation…
Yesterday’s representation…
Economique
Environnement
SocialEquitable
Viable
Durable
Vivable
Economicsphere
Socialsphere
Biosphere
Laurent Ledoux – 31/03/11
Today’s representation…Today’s representation…
[email protected] 28Laurent Ledoux – 31/03/11
Meeting the needs of the present generation without compromising the ability of future generations to meet their needs
Brundtland Report for the UN - 1987
Meeting the needs of the present generation without compromising the ability of future generations to meet their needs
Brundtland Report for the UN - 1987
Not only environmental issues…
Not only environmental issues…
Source : Ph. Defeyt based on PNUD Source : Isabelle Cassiers, Conférence au Collège Belgique, d’après le PNUD
[email protected] 30Laurent Ledoux – 31/03/11
Sustainability
Towards Stagnation(Too little efficiency)
TowardsBrittleness(Too little diversity)
Greater efficiency (streamlining)
Diversity & Interconnectivity
Optimum
100%
0%
Optimal balance
Greaterresilience
Time
Content richness of
the CSR concept
Source : Jean Pasquero (2005), adapted by LedouxSource : Jean Pasquero (2005), adapted by Ledoux
PhilanthropyGrants & corporate patronage
SollicitudeEmployees’ needs
Environmental nuisance limitPriority given to the environment
Classical eco.
(18th century)
Traditional eco.
(19th c.)Beg. of 20th c.
1960’s
Social responsiveness« Societal management » system
Ethical rectitudeCodes of conduct
Performance reportingTriple balance sheet
Citizen participationProactive «engagement»
1970’s 1990’s Beg. of 21th c.
Efficient management(Technical skills)
8 components of CSR
nowadays
Evolution of CSR so far?
2001
GlobalCompact
corporatesbecome world citizens
Time
“Coherency”of the
coregulation system
Corporates’emancipationfrom states
Politizationof comsumption
Voluntaryadoption of codes
of conducts
Growthof surveillance
& social controls’web
Empowermentof 3rd parties byStates & Judges
Proliferationthrough reputation
& transparency
Transfer of States’ duties to
corporates
Regulatory innovatio
n process
Highly stylised process*:
in reality these trends
overlap each otherHighly stylised process*:
in reality these trends
overlap each other
«Formally»
but self-fulfillin
g
prophecy«Formally»
but self-fulfillin
g
prophecy
EffectivelyEffectively
* Source: “Responsabilité sociale des entreprises et co-régulation”, by Berns & al, 2007
2003
Nikevs. KaskyConsumers’
CSR concernslegally recognized
SoftSoft
HardHard
Explaining the growing impact of “CSR”& co-regulation during the last 50 years ?
Protestantethos
Protestantethos
Birth of
modernCapitalism
Birth of
modernCapitalism
Time
ConsumeristCapitalism
ConsumeristCapitalism
Promotionof a childish ethos
Promotionof a childish ethos
Post-capitalistEthos
Post-capitalistEthos
Rise of the post-capitalist economy
Rise of the post-capitalist economy
?Progressist
ethosProgressist
ethos
Expansion of
industrial Capitalism
Expansion of
industrial Capitalism
Evolution of the relations between capitalism & the dominant ethos
Who are my stakeholders & how to engage them to work with you ?
A. List your stakeholdersB. How can each of them influence you and vice versa ?C. What is the right attitude to adopt with each of them ? D. How to turn each of them into an ally or to minimize their
potentially negative impact ?
Stakeholder analysis
Expectations & preoccupations of the stakeholder
Tensegrity
Positive strength
Negative strength
Key actors at stakeholder
Approach/Action Plan
Partnership / Innovation / Good neighbor / Negociation
Description of the stakeholder (group of organization or individual organization)
Our influence/impact on the stakeholder The stakeholder influence/impact on us
Identification of the related risk Stakeholders to be involvedAction plan to manage the risk & to transform it into an
opportunity
CSR action plan per issue
Stimulating or constraining strength
Expliquer en quoi cet enjeu représente actuellement une force stimulante ou une force contraignante
Description of issue 1
Identification of the related opportunity Stakeholders to be involved Action plan to seize the opportunity & limit related risks
Reflecting on ethical behavior in business today Reflecting on ethical behavior in business today11
Reflecting on Corporate Social Responsibility todayReflecting on Corporate Social Responsibility today22
Reflecting on the type of leadership needed to promote ethical behavior & CSRReflecting on the type of leadership needed to promote ethical behavior & CSR33
Distinguishing technical problems & adaptive challenges
Solution and implementation
Solution and implementation
Primary locus of resp. for the work
Primary locus of resp. for the work Kind of workKind of workProblem
definition
Problem definitionChallengeChallenge
ClearClear ClearClear PhysicianPhysician TechnicalTechnical
ClearClear Requires learningRequires learning Physician and patient
Physician and patient
Technical and adaptive
Technical and adaptive
Requires learningRequires learning Requires learningRequires learning Patient > physicianPatient > physician AdaptiveAdaptive
Type IType I
Type IIType II
Type IIIType III
Source: “Leadership without easy answers”, by Ronald Heifetz
Modulating the stress
Source: “Leadership on the line”, by Ronald Heifetz & Marty Linsky
Protect leadership voices w/out authority
(Cover who raises questions authorities can’t raise)
5strategic
principles of
Leadership
Keep the distress level tolerable(Control the pressure cooker)
Focus on ripening issues(Counteract work avoidance mechanisms)
Give the work back to people
(Put pressure on people with the problem)
Identify the adaptive challenge(Unbundle the issues)
5 strategic principles of adaptive leadership
Source: “Leadership without easy answers”, by Ronald Heifetz, adapted by Ledoux
I. Diagnose the system
• Be ready to observe & interpret bef. intervening
• Diagnose the system itself
• Diagnose the adaptive challenge
• Diagnose the political landscape
• Understand the qualities that makes an organization adaptive
II. Mobilize the system• Make interpretations
• Design effective interventions
• Act politically
• Orchestrate the conflict
• Build an adaptive culture
III. See yourself as a system• Identify who you are
• Know your tuning
• “Broaden your bandwidth”
• Understand your roles
• Articulate your purposes
IV. Deploy yourself• Stay connected to your purposes
• “Engage courageously”
• Inspire people
• Run experiments
• “Thrive”
4 related groups of activities of adaptive leadership
Bibliography
The practice of adaptive leadership, Ronald Heifetz, Alexander Grashow & Marty Linsky, HBR ed., 2009
Leadership without easy answers, Ronald Heifetz, HBR ed., 1994
Leadership on the line, Ronald Heifetz & Marty Linsky, HBR ed., 2002
Leadership can be taught, Sharon Daloz Parks, HBR ed., 2005
Defining moments, Joseph Badaracco, HBR ed, 2003
Leading quietly, Joseph Badaracco, HBR ed., 2002
Questions of character, Joseph Badaracco, HBR ed., 2006
Arts of the wise leader, Mark Strom, Sophos ed., 2007 (www.artsofthewiseleader.com)
The powers to lead, Joseph Nye, HBR ed., 2008
Leading with wisdom: spiritual-based leadership in business, Peter Pruzan & Kirsten Pruzan Mikkelsen, Response ed., 2009
Rational, Ethical & Spiritual Perspectives on Leadership, Peter Pruzan, Peter Lang ed., 2009
Leadership, Spirituality and the Common Good, Henri-Claude de Bettignies & Mike J. Thompson, Garant ed., 2010
The Seven-day weekend, Ricardo Semler
Freedom Inc., Bryan Carney & Isaac Getz
Bibliography
Rethinking business ethics – A pragmatic approach, Sandra Rosenthal & Rogene Buchholz, Oxford Press, 2000
Business Ethics & Values, Colin Fischer & Alan Lovell, FT Prentice Hall, 2003
Working ethics, Marvin Brown, Jossey-Bass, 1990
Does business ethics pay?, S. Webley & E. More, London IBE, 2003
Managing messy moral matters, C.M. Fischer & C. Rice, in Strategic Human Resources, J. Leopold, L. Harris & T.J. Watson, 1999
Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole, B. Barber, 2007
Capitalism at crossroads, S. Hart, 2005
From “Tribal leadership” by Logan, King & Fischer-Wright, 2008; adapted by Ledoux
1
2
3
4
5
Stage
Alienated
Stable partnership
Team
“Life sucks”
“I’m great”
“Life is great”
“My life sucks”
“We’re great”
Language
2%
25%
49%
22%
2%
%
Separate
Relationship to people
Separate
Stable partnership
“My life sucks”
“We’re great”
Language
Personal domination
Listen to your
liberating question
Get off the dance
floor & on the
balcony
Learn daily to
ride your elephant
Get out of the way -
Let go