2 What do you understand by Ethical behavior ?Corporate Social Responsibility ?
3 1Reflecting on ethical behavior in business today2Reflecting on Corporate Social Responsibility today3Reflecting 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 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 lifeand in my community?”(To consider the dilemma as his parents’ son)Who am I?“Become who you are”(Friedrich Nietzsche)“What combinationof expediency andshrewdness, coupled withimagination & boldness, will moveme 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 environmentA morality is a set ofduties & imperatives(positive or negatives)that a society or a community gives to itself &which enjoins its membersto conform their behaviour,«freely» & in an «unselfish» way,to certain values enabling todistinguish right & wrong.Ethics, a major branch of philosophy, encompasses right conduct& good livingAn ethos isthe doctrine of a particular artof living the best possible lifeand 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 statementsLegaldutiesMoral or ethicalprinciplesHeuristics(«sleep-test» rules)
9 Institutional structure 4 main categories of ethicsIndividual processesAdaptability & responsivenessVirtueEthics(Aristotles, Gilligan,…)DevelopmentEthics(Etzioni, Covey,…)Principles“Doing right”Results“Doing good”DeontologicalEthics(Kant, Rawls,…)TeleologicalEthics(Bentham, Mill,…)Institutional structureFixity & consistencySource: 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 ethicsQuestions to ask yourself in front of an ethical dilemmaIs 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 thesituation 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 peoplewhose support I need?”(Refine his message and shape it to the psychological &political context in which he was working, in termsof raising productivity or improving recruiting)Who are we ?“Truth happens to an idea.Its verity is in factan event, an idea”(William James)“Have I orchestrated a processthat can make the valuesI 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 thebosses 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 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 rolein society & its relationshipto its stakeholders?”(To orchestrate a public debateamong the different stakeholders)Who is theorganisation?“Ethics result from the inescapabletension between Virtue & Virtu”(Aristote & Machiavel)“Have you done all youcan 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 triggera massive counter-reaction from other actors)Source: Badaracco (1997); adapted by Ledoux
17 Moral imaginationis the condition offree deedsSteiner
18 The 4 orders & the tensions between the individual and the group SpiritualitiesMetaphysics(secular or religious)* Synthesis based on the texts from André Comte-Sponville, Marcel Conche & François JourdeWisdomsAscendinghierarchy forindividualspossibly inducesEthical orderGood vs. Bad(Self, subjective or relative Will)completeslimitsMoral orderRight vs. Wrong(Universal or universalisable duties)limitsJuridical & political orderLegal vs. IllegalDescendinghierarchyfor groupslimitsEconomic, technical & scientific orderPossible vs. Impossible(Natural and rational Law)
19 Corporate credos & mission statements Respect of ethical principles 12 tests filter to validate or reject a decisionAsk yourself these questions concerning the decision you wish to take+/-VetoTriggerLegal duties1. Legalist test. Is my decision in accordance with the law?Corporate credos & mission statements2. Organisational test. Is my decision in accordance with my organisation’s rules of conduct or ethicsHeuristics3. Hedonistic or intuitive test. Does my decision correspond with my gut feeling and my values? Does it make me feel good?Respect of ethical principlesVirtue ethics4. 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 ethics6. 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 ethics8. 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 ethics10. 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?
24 Motivation Power locus Dynamic Method In 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?DynamicHow did/does CSR evolve?Concept’s evolution so far?Today’s logic in a globalized economy?MethodHow 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 ethicsCorporate 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 commitment3. Values ethics1. Governance ethics2. Deontological ethicsStrategic manifestation:CSR
26 Yesterday’s representation… 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)EconomicEnvironmentalSocialThe three dimensions of CSRFairSustainableLivableViableYesterday’s representation…
29 Meeting the needs of the present generation without compromising the ability of future generations to meet their needsBrundtland Report for the UNNot 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. In 2008 she became the recipient of the Thomas Jefferson Foundation Medal in Architecture.Source : Ph. Defeyt based on PNUDSource : Isabelle Cassiers, Conférence au Collège Belgique, d’après le PNUD
31 (Too little diversity) (Too little efficiency) InterconnectivityOptimal balanceSustainability100%0%TowardsBrittleness(Too little diversity)TowardsStagnation(Too little efficiency)OptimumGreater efficiency(streamlining)GreaterresilienceDiversity &InterconnectivityUlanowicz
32 Evolution of CSR so far? Content richness of the CSR concept 8 components of CSR nowadaysCitizen participationProactive «engagement»Performance reportingTriple balance sheetEthical rectitudeCodes of conductSocial responsiveness« Societal management » systemEnvironmental nuisance limitPriority given to the environmentSollicitudeEmployees’ needsPhilanthropyGrants & corporate patronageEfficient management(Technical skills)TimeClassicaleco.(18th century)Traditionaleco.(19th c.)Beg. of20th c.1960’s1970’s1990’sBeg. of21th c.Source : Jean Pasquero (2005), adapted by Ledoux
34 Explaining the growing impact of “CSR” & co-regulation during the last 50 years ?Transfer ofStates’ duties tocorporates“Coherency”of thecoregulation systemEffectivelyEmpowermentof 3rd parties byStates & JudgesProliferationthrough reputation& transparencyHighly stylised process*: in reality these trends overlap each otherRegulatory innovation processHardGrowthof surveillance& social controls’web2003Nikevs. KaskyConsumers’CSR concernslegally recognizedVoluntaryadoption of codesof conducts2 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.2001GlobalCompactcorporatesbecome world citizensPolitizationof comsumptionCorporates’emancipationfrom states«Formally»but self-fulfilling prophecySoftTime* Source: “Responsabilité sociale des entreprises et co-régulation”, by Berns & al, 2007
35 What does teach us the Toyota brake scandal ? AKio Toyoda4.3 billionLaurent Ledoux – 31/03/11
36 Rise of the post-capitalist economy Expansion of industrial Capitalism Evolution of the relations between capitalism & the dominant ethosPost-capitalistEthosRise of the post-capitalist economyProtestantethosProgressistethos?Birth ofmodernCapitalismExpansion of industrial CapitalismTimeConsumeristCapitalismAccording 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 », 2002Promotionof a childish ethos
37 Faber whole society adequate return shareholder’s value Optimize value for theunder the constraint of anfor shareholderswhole societyadequate returnNos comptes nous racontent des contes:il faut que nous changions les contes que nous nous racontonsMaximize (without limits)under the constraint of theshareholder’s valueFaberrespect of the law37
38 Profitis the consequence of the human relation that we develop daily with our shareholders, clients, employees, suppliers and the rest of societyToniutti
39 Who are my stakeholders & how to engage them to work with you ? List your stakeholdersHow 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 analysisDescription of the stakeholder (group of organization or individual organization)Expectations & preoccupations of the stakeholderTensegrityOur influence/impact on the stakeholderThe stakeholder influence/impact on usPositive strengthKey actors at stakeholderA 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 strengthApproach/Action PlanPartnership / Innovation / Good neighbor / NegociationLOWLOWHIGH
41 CSR action plan per issue Description of issue 1Expliquer en quoi cet enjeu représente actuellement une force stimulante ou une force contraignanteStimulating or constraining strengthIdentification of the related riskStakeholders to be involvedAction plan to manage the risk & to transform it into an opportunityChoisir 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 opportunityStakeholders to be involvedAction plan to seize the opportunity & limit related risksLOWLOWHIGH
42 1Reflecting on ethical behavior in business today2Reflecting on Corporate Social Responsibility today3Reflecting on the type of leadership needed to promote ethical behavior & CSR
44 Distinguishing technical problems & adaptive challenges Problem definitionSolution and implementationPrimary locus of resp. for the workKind of workType IClearClearPhysicianTechnicalType IIClearRequires learningPhysician and patientTechnical and adaptiveType IIIRequires learningRequires learningPatient > physicianAdaptiveSource: “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)5strategicprinciples ofLeadershipIdentify 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 knowsLaozi
50 4 related groups of activities of adaptive leadership Diagnose the systemBe ready to observe & interpret bef. interveningDiagnose the system itselfDiagnose the adaptive challengeDiagnose the political landscapeUnderstand the qualities that makes an organization adaptiveMobilize the systemMake interpretationsDesign effective interventionsAct politicallyOrchestrate the conflictBuild an adaptive cultureSee yourself as a systemIdentify who you areKnow your tuning“Broaden your bandwidth”Understand your rolesArticulate your purposesIV. Deploy yourselfStay connected to your purposes“Engage courageously”Inspire peopleRun experiments“Thrive”Socratic dialogue
51 BibliographyThe practice of adaptive leadership, Ronald Heifetz, Alexander Grashow & Marty Linsky, HBR ed., 2009Leadership without easy answers, Ronald Heifetz, HBR ed., 1994Leadership on the line, Ronald Heifetz & Marty Linsky, HBR ed., 2002Leadership can be taught, Sharon Daloz Parks, HBR ed., 2005Defining moments, Joseph Badaracco, HBR ed, 2003Leading quietly, Joseph Badaracco, HBR ed., 2002Questions of character, Joseph Badaracco, HBR ed., 2006Arts of the wise leader, Mark Strom, Sophos ed., 2007 (www.artsofthewiseleader.com)The powers to lead, Joseph Nye, HBR ed., 2008Leading with wisdom: spiritual-based leadership in business, Peter Pruzan & Kirsten Pruzan Mikkelsen, Response ed., 2009Rational, Ethical & Spiritual Perspectives on Leadership, Peter Pruzan, Peter Lang ed., 2009Leadership, Spirituality and the Common Good, Henri-Claude de Bettignies & Mike J. Thompson, Garant ed., 2010The Seven-day weekend, Ricardo SemlerFreedom Inc., Bryan Carney & Isaac Getz
52 BibliographyRethinking business ethics – A pragmatic approach, Sandra Rosenthal & Rogene Buchholz, Oxford Press, 2000Business Ethics & Values, Colin Fischer & Alan Lovell, FT Prentice Hall, 2003Working ethics, Marvin Brown, Jossey-Bass, 1990Does business ethics pay?, S. Webley & E. More, London IBE, 2003Managing messy moral matters, C.M. Fischer & C. Rice, in Strategic Human Resources, J. Leopold, L. Harris & T.J. Watson, 1999Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole, B. Barber, 2007Capitalism at crossroads, S. Hart, 2005
53 Stage Language “My life sucks” “We’re great” Language Relationship The 5 stages of cultureStageLanguage“My life sucks”“We’re great”LanguageRelationshipto peopleSeparateStable partnership%5“Life is great”Team2%4“We’re great”Stable partnership22%3“I’m great”Personal domination49%2“My life sucks”Separate25%1“Life sucks”Alienated2%From “Tribal leadership” by Logan, King & Fischer-Wright, 2008; adapted by Ledoux