1. ledoux.laurent@gmail.com – 0478 62 14 20
ETHICAL BEHAVIOR & CSR
For SASAC managers
Sept. 6th 2012
Laurent Ledoux – (

2. What do you understand by
Ethical behavior ?
Corporate Social Responsibility ?

3. 1
Reflecting on ethical behavior in business today 2
Reflecting on Corporate Social Responsibility today 3
Reflecting on the type of leadership needed to promote ethical behavior & CSR

4. 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 ?

5. Case 2: What would you do if you were
Steve Lewis ?
Would you go to the meeting or not ?

6. (Friedrich Nietzsche)
Lewis’ possible questions
“How do my feelings and intuition
define, for me, the ethical dilemma?”
(To respect oneself or to be loyal – loyal to whom?)
“Which of the values that are in conflict
are most deeply rooted in my life
and in my community?”
(To consider the dilemma as his parents’ son)
Who am I?
“Become who you are”
(Friedrich Nietzsche)
“What combination
of expediency and
shrewdness, coupled with
imagination & boldness, will move
me closer to my personal goals?”
(To go to St Louis but to participate to the presentation)
“Looking to the future,
what is my way
(not the way of others)?”
(To become partner in an investment bank)
Source: Badaracco (1997); adapted by Ledoux

7. « 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
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.
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)

8. Possible sources when facing an ethical dilemma
Codes of conducts &
Mission statements
Legal
duties
Moral or ethical
principles
Heuristics
(«sleep-test» rules)

9. Institutional structure
4 main categories of ethics
Individual processes
Adaptability & responsiveness
Virtue
Ethics
(Aristotles, Gilligan,…)
Development
Ethics
(Etzioni, Covey,…)
Principles
“Doing right”
Results
“Doing good”
Deontological
Ethics
(Kant, Rawls,…)
Teleological
Ethics
(Bentham, Mill,…)
Institutional structure
Fixity & consistency
Source: Fisher & Lovell (2003); adapted by LL

10. 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.

11. Questions to ask yourself in front of an ethical dilemma
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 ?

12. Case 3: What would you do if you were M
Case 3: What would you do if you were M. Wang, the head of the marketing department ?
Would you fire Mrs Jie ?

13. “Truth happens to an idea.
Wang’s possible questions to think «internal» dilemmas
“What are the other strong, persuasive,
competing interpretations of the
situation or problem that I hope to use
as a defining moment for my org.?”
(To understand that, for Walters, the basic ethical issue
was irresponsibility: McNeil’s for not pulling her weight &
his for not taking action)
“What is the cash value of this situation
and 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)
Who are we ?
“Truth happens to an idea.
Its verity is in fact
an event, an idea”
(William James)
“Have I orchestrated a process
that can make the values
I care about become the truth
of my organization?”
(After hiring McNeil, to start quickly to let her & her work known
to 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)
Source: Badaracco (1997); adapted by Ledoux

14. Case 4: What would you do if you were Edouard Sakiz, the CEO of Roussel-Uclaf ?

15. Who is the organisation?
Edward Sakiz’s possible questions
“Have I done all I can to secure my
position and the strength & stability
of my organization?”
(To refrain to take decisions that could expose directly
The organization or to confront the BoA’s president)
“Have I thought creatively & imagina-
tively about my organization’s role
in society & its relationship
to its stakeholders?”
(To orchestrate a public debate
among the different stakeholders)
Who is the
organisation?
“Ethics result from the inescapable
tension between Virtue & Virtu”
(Aristote & Machiavel)
“Have you done all you
can to strike a balance,
both morally & practically?”
(To market the new drug without endangering the organization)
“Should I play the lion or the fox?”
(To organize and support a vote that will trigger
a massive counter-reaction from other actors)
Source: Badaracco (1997); adapted by Ledoux

17. Moral imagination
is the condition of
free deeds
Steiner

18. The 4 orders & the tensions between the individual and the group
Spiritualities
Metaphysics
(secular or religious)
* Synthesis based on the texts from André Comte-Sponville, Marcel Conche & François Jourde
Wisdoms
Ascending
hierarchy for
individuals
possibly induces
Ethical order
Good vs. Bad
(Self, subjective or relative Will)
completes
limits
Moral order
Right vs. Wrong
(Universal or universalisable duties)
limits
Juridical & political order
Legal vs. Illegal
Descending
hierarchy
for groups
limits
Economic, technical & scientific order
Possible vs. Impossible
(Natural and rational Law)

19. Corporate credos & mission statements Respect of ethical principles
12 tests filter to validate or reject a decision
Ask yourself these questions concerning the decision you wish to take
+/-
Veto
Trigger
Legal duties
1. Legalist test. Is my decision in accordance with the law?
Corporate credos & mission statements
2. Organisational test. Is my decision in accordance with my organisation’s rules of conduct or ethics
Heuristics
3. Hedonistic or intuitive test. Does my decision correspond with my gut feeling and my values? Does it make me feel good?
Respect of ethical principles
Virtue ethics
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
10. Consequential test. Are the anticipated consequences of my decision and plan positive or negative?
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?

20. & stimulates creativity
Ethical dilemmas
Reveal
Ourselves
& stimulates creativity
Badaracco

21. 1
Reflecting on ethical behavior in business today 2
Reflecting on Corporate Social Responsibility today 3
Reflecting on the type of leadership needed to promote ethical behavior & CSR

22. What are your
questions
about CSR ?

24. Motivation Power locus Dynamic Method
In whose interest & why?
For Share- or Stakeholders?
Marketing opportunism or moral duty?
Power locus
Who drives CSR?
Internally: managers or «corporates»?
Externally: Govs, NGOs or corporates?
Dynamic
How did/does CSR evolve?
Concept’s evolution so far?
Today’s logic in a globalized economy?
Method
How to promote it?
Regulation or self-regulation?
Soft or hard?
Global or Issue-related?

25. Strategic manifestation:
Economic ethics
“Part of ethics which deals with behaviours and institutions of this sphere, i. e., of the entirety of exchange activities of goods and services and of production related to this exchange.”
(French Penal Code – 1994)
Business ethics
Corporate ethics
“Presents itself as responsibility ethics (not only of conviction), organised as a doctrine which guides activities and behaviour at work”
(Fabienne Cardot)
3 levels of commitment
3. Values ethics
1. Governance ethics
2. Deontological ethics
Strategic manifestation:
CSR

26. Yesterday’s representation…
Corporate Social Responsibility
The 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
Sustainable
Livable
Viable
Yesterday’s representation…

27. Today’s representation…
Biosphere
Social
sphere
Equitable
Social
Economique
Durable
Economic
sphere
Vivable
Viable
Environnement
Today’s representation…
Laurent Ledoux – 31/03/11

28. Laurent Ledoux – 31/03/11

29. Meeting the needs of the present generation without compromising the ability of future generations to meet their needs
Brundtland Report for the UN
Not only environmental issues…
Gro Harlem Brundtland (Norwegian pronunciation: [ɡruː hɑːɭɛm brʉntlɑnː]  ( listen)) (born Gro Harlem, 20 April 1939) is a Norwegian Social democratic politician, diplomat, and physician, and an international leader in sustainable development and public health. She served three terms as Prime Minister of Norway (1981, , ), and has served as the Director General of the World Health Organization. She now serves as a Special Envoy on Climate Change for the United Nations Secretary-General Ban Ki-moon.[1] In 2008 she became the recipient of the Thomas Jefferson Foundation Medal in Architecture.[2]
Source : Ph. Defeyt based on PNUD
Source : Isabelle Cassiers, Conférence au Collège Belgique, d’après le PNUD

30. Laurent Ledoux – 31/03/11

31. (Too little diversity) (Too little efficiency)
Interconnectivity
Optimal balance
Sustainability
100% 0%
Towards
Brittleness
(Too little diversity)
Towards
Stagnation
(Too little efficiency)
Optimum
Greater efficiency
(streamlining)
Greater
resilience
Diversity &
Interconnectivity
Ulanowicz

32. Evolution of CSR so far? Content richness of the CSR concept
8 components of CSR nowadays
Citizen participation
Proactive «engagement»
Performance reporting
Triple balance sheet
Ethical rectitude
Codes of conduct
Social responsiveness
« Societal management » system
Environmental nuisance limit
Priority given to the environment
Sollicitude
Employees’ needs
Philanthropy
Grants & corporate patronage
Efficient management
(Technical skills)
Time
Classical
eco.
(18th century)
Traditional
eco.
(19th c.)
Beg. of
20th c.
1960’s
1970’s
1990’s
Beg. of
21th c.
Source : Jean Pasquero (2005), adapted by Ledoux

33. Co-regulation
based on
reputation
rather than
law
Frydman

34. Explaining the growing impact of “CSR”
& co-regulation during the last 50 years ?
Transfer of
States’ duties to
corporates
“Coherency”
of the
coregulation system
Effectively
Empowerment
of 3rd parties by
States & Judges
Proliferation
through reputation
& transparency
Highly stylised process*: in reality these trends overlap each other
Regulatory innovation process
Hard
Growth
of surveillance
& social controls’
web
2003
Nike
vs. Kasky
Consumers’
CSR concerns
legally recognized
Voluntary
adoption of codes
of conducts
2 conditions of responsibility:
Inscription of corporates in a history: possibility to define acts in the past that need to be acknowledged in the present in order to allow a future; requires an order made of memory, promesses, permanency and identification of subjects through time;
Inscription in a given environment (milieu) in which a relationship with others can be established.
This is exactly what is denied when we limit a company’s objective to the maximization of the shareholders’ value.
Khan: responsibility presupposes liberty.
2001
Global
Compact
corporates
become world citizens
Politization
of comsumption
Corporates’
emancipation
from states
«Formally»
but self-fulfilling prophecy
Soft
Time
* Source: “Responsabilité sociale des entreprises et co-régulation”, by Berns & al, 2007

35. What does teach us the Toyota brake scandal ?
AKio Toyoda
4.3 billion
Laurent Ledoux – 31/03/11

36. Rise of the post-capitalist economy Expansion of industrial Capitalism
Evolution of the relations between capitalism & the dominant ethos
Post-capitalist
Ethos
Rise of the post-capitalist economy
Protestant
ethos
Progressist
ethos ?
Birth of
modern
Capitalism
Expansion of industrial Capitalism
Time
Consumerist
Capitalism
According to Benjamin Barber in «Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole», 2007; See also Anne Salmon’s analysis in « Ethique et ordre économique : une entreprise de séduction », 2002
Promotion
of a childish ethos

37. Faber whole society adequate return shareholder’s value
Optimize value for the
under the constraint of an
for shareholders
whole society
adequate return
Nos comptes nous racontent des contes:
il faut que nous changions les contes que nous nous racontons
Maximize (without limits)
under the constraint of the
shareholder’s value
Faber
respect of the law 37

38. Profit
is the consequence of the human relation that we develop daily with our shareholders, clients, employees, suppliers and the rest of society
Toniutti

39. Who are my stakeholders & how to engage them to work with you ?
List your stakeholders
How can each of them influence you and vice versa ?
What is the right attitude to adopt with each of them ?
How to turn each of them into an ally or to minimize their potentially negative impact ?

40. Stakeholder analysis
Description of the stakeholder (group of organization or individual organization)
Expectations & preoccupations of the stakeholder
Tensegrity
Our influence/impact on the stakeholder
The stakeholder influence/impact on us
Positive strength
Key actors at stakeholder
A trois, Choisissez une partie prenante qui vous semble la plus urgente avec laquelle travailler. Et remplissez la fiche.
Faire un jeu de role, expliquez votre raison d’être à cette partie prenante. A 2.
2 paires partagent avec le groupe comme exemple ensuite par 2, faire le jeu de role.
Negative strength
Approach/Action Plan
Partnership / Innovation / Good neighbor / Negociation
LOW
LOW
HIGH

41. CSR action plan per issue
Description of issue 1
Expliquer en quoi cet enjeu représente actuellement une force stimulante ou une force contraignante
Stimulating or constraining strength
Identification of the related risk
Stakeholders to be involved
Action plan to manage the risk & to transform it into an opportunity
Choisir à 3 un enjeux et remplir la fiche tous ensemble comme conclusion.
Cette fiche vous permet aussi de réfléchir de manière ‘tensègre’ chaque fois que se présente une tension à vous… et que celle-ci peut mettre votre intégrité sous tensions. Exemple… c’est donc également un outil managérial. Et permet de prendre du recul…de retrouver son calme, son intégrité avant de traiter un problème… éventuellement refaire un ex de flexibilité… se poser la question de la transparence… qui peut m’aider à résoudre, qui est impliqué?
Identification of the related opportunity
Stakeholders to be involved
Action plan to seize the opportunity & limit related risks
LOW
LOW
HIGH

42. 1
Reflecting on ethical behavior in business today 2
Reflecting on Corporate Social Responsibility today 3
Reflecting on the type of leadership needed to promote ethical behavior & CSR

43. Leadership
Mobilize
the group
for the
adaptative
work
Heifetz

44. Distinguishing technical problems & adaptive challenges
Problem definition
Solution and implementation
Primary locus of resp. for the work
Kind of work
Type I
Clear
Clear
Physician
Technical
Type II
Clear
Requires learning
Physician and patient
Technical and adaptive
Type III
Requires learning
Requires learning
Patient > physician
Adaptive
Source: “Leadership without easy answers”, by Ronald Heifetz

45. Modulating the stress Need to give example of second bullet
Source: “Leadership on the line”, by Ronald Heifetz & Marty Linsky

46. 5 strategic principles of adaptive leadership
Identify the adaptive challenge
(Unbundle the issues)
Protect leadership voices w/out authority
(Cover who raises questions authorities can’t raise)
Give the work back to people
(Put pressure on people with the problem) 5
strategic
principles of
Leadership
Identify the adaptive challenge. Diagnose the situation in light of the values at stake, and unbundle the issues that come with it.
Keep the level of distress within a tolerable range for doing adaptive work. To use the pressure cooker analogy, keep the heat up without blowing up the vessel.
Focus attention on ripening issues and not on stress-reducing distractions. Identify which issues can currently engage attention; and while directing attention to them, counteract work avoidance mechanisms like denial, scapegoating, externalizing the enemy, pretending the problem is technical, or attacking individuals rather than issues.
Give the work back to people, but at a rate they can stand. Place and develop responsibility by putting the pressure on the people with the problem.
Protect voices of leadership without authority. Give cover to those who raise hard questions and generate distress - people who point to the internal contradictions of the society. These individuals will have latitude to provoke rethinking that authorities do not have.
Keep the distress level tolerable
(Control the pressure cooker)
Focus on ripening issues
(Counteract work avoidance mechanisms)
Source: “Leadership without easy answers”, by Ronald Heifetz, adapted by Ledoux

47. Laozi 630 BC Is the one the group The best leader whose existence
barely knows
Laozi

48. Efficiency
Let the
effect
impose itself
Jullien

49. Thank you !

50. 4 related groups of activities of adaptive leadership
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
Mobilize the system
Make interpretations
Design effective interventions
Act politically
Orchestrate the conflict
Build an adaptive culture
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”
Socratic dialogue

51. 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 (
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

52. 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

53. Stage Language “My life sucks” “We’re great” Language Relationship
The 5 stages of culture
Stage
Language
“My life sucks”
“We’re great”
Language
Relationship
to people
Separate
Stable partnership % 5
“Life is great”
Team 2% 4
“We’re great”
Stable partnership
22% 3
“I’m great”
Personal domination
49% 2
“My life sucks”
Separate
25% 1
“Life sucks”
Alienated 2%
From “Tribal leadership” by Logan, King & Fischer-Wright, 2008; adapted by Ledoux

54. Freedom
Inc.
Getz

55. intrinsically personal self Treated as Priority to Capacity to equals
growth
direct

56. Semler & Breaking down On-the-job democracy The Whyway
Knowledge boundaries
Semler

57. Team management principles
Inspired by Isaac Getz (Freedom Inc.)
Treated as
Priority to
Capacity to
intrinsically
personal
self
equals
growth
direct

58. Everybody
wants
to take initiatives
The Whyway 1 2
Humility 3
Fairness

59. 1 2 3 is able Trust Everybody to take initiatives People growth
Benevolence

60. 1 2 3 has the liberty Engagement Everybody to take initiatives Adults
To let go

61. Structure of stable relationships
Marina
Olivier
Laurent
Triad

62. Listen to your liberating question
Get off the dance floor & on the balcony
Get out of the way -
Let go
Learn daily to ride your elephant