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3. What are innovators responsible for ? Responsibilization & Innovation

4. 1. What means “responsible for” ? 2. What means “innovation” ? What are innovators responsible for ?

5. EC’s proposal “We must take shared responsibility, without being forced to lay blame nor claim full control” Source: Taking European Knowledge Society Seriously, p. 16 What means “ responsible for ” ?

6. Hart’s view 1. Responsibility of role 2. Causal responsibility 3. Subject responsibility 4. Responsibility-capacity Source: Hart : Punishment & Responsibility What means “ responsible for ” ?

7. Plural & fragmented concept No coherent system Source: Toddai What means “ responsible for ” ? 1. Ethic of conviction vs. Ethic of responsibility 2. Simple vs. Complex responsibility 3. Punishment vs. Guarantee 4. Assigned vs. Constructed 5. “We” vs. “I” as subjects of responsibility

8. Social vs Technological ? Example of Innovative Steam Engine : assimilation of existing knowledge & cross-fertilization of ideas 1. Watch making (control mechanisms) 2. Brewing (Boilers) 3. Cannon (Piston barrels) 4. Social changes Mutual shaping of the social & technical in processes of innovation What means “ innovation ” ?

9. From a conventional view of innovation towards a model of social innovation ? What means « innovation » ? PeopleChallenge Process Goal

10. 1.Precautionary principle ? Responsibilization & Innovation 2. Co-regulation ? 3. From CSR to CSO ? 4. Socratic dialogue ?

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12. Dynamic – How CSR is evolving in a globalized eco ? 2001 Global Compact corporates become world citizens Time “Coherency” of the coregulation system Corporates’ emancipation from states Politization of comsumption Voluntary adoption of codes of conducts Growth of surveillance & social controls’ web Empowerment of 3rd parties by States & Judges Proliferation through reputation & transparency Transfer of States’ duties to corporates Regulatory innovation process Highly stylised process*: in reality these trends overlap each other «Formally» but self-fulfilling prophecy «Formally» but self-fulfilling prophecy Effectively * Source: “Responsabilité sociale des entreprises et co-régulation”, by Berns & al, 2007 2003 Nike vs. Kasky Consumers’ CSR concerns legally recognized Soft Hard Evolution today?

13. From CSR to CSO

14. 7 Step 7: Measuring and reporting Step 1: Identifying the Triggers Step 2: Scoping what matters Step 3: Making the business case Step 4: Committing to action Step 5: Integrating and gathering resources Step 6: Engaging Stakeholders 7 steps to CSO

15. Responsibility : the condition of our humanity

16. Potential sources to support ethical decision-making Codes of conducts & Mission statements Legal duties Heuristics («sleep-test» rules) Moral or ethical principles

17. Institutional structure Fixity & consistency Individual processes Adaptability & responsiveness Results “Doing good” Principles “Doing right” Virtue Ethics (Aristotles, Gilligan,…) Development Ethics (Etzioni, Covey,…) Deontological Ethics (Kant, Rawls,…) Teleological Ethics (Bentham, Mill,…) A framework for ethical theories Source: Fisher & Lovell (2003); adapted by LL

18. 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.

19. 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 decide Trigger

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

21. Time Content richness of the CSR concept Source : Jean Pasquero (2005), adapted by Ledoux Philanthropy Grants & corporate patronage Sollicitude Employees’ needs Environmental nuisance limit Priority given to the environment Classical eco. (18th century) Traditional eco. (19th c.) Beg. of 20th c. 1960’s Social responsiveness « Societal management » system Ethical rectitude Codes of conduct Performance reporting Triple balance sheet Citizen participation Proactive «engagement» 1970’s1990’s Beg. of 21th c. Dynamic – How has the CSR concept evolved so far? Efficient management (Technical skills) 8 components of CSR nowadays Evolution so far?

22. Low-Income Markets (base of the pyramid) Wealthy Emerging Middle Class 800 1,500 4,000 >$15,000 $1,500-15,000 <$1,500 Purchasing Power parity in U.S. Dollars Population in Millions Source: Adapted from CK Prahalad and S. Hart (with assistance from Ted London), 2002. “The Fortune at the Bottom of the Pyramid”. Strategy= Business, 26 (2002): 54-67. Motivation – Base of the global pyramid?

23. Strategy: Clean technology Develop sustainable competencies for the future Business benefits: Innovation & Repositioning Strategy: Base of the Pyramid Dev. a strategy to meet the base’s needs Business benefits: Growth & Trajectory Strategy: Risk prevention for populat. Mimimize waste & toxic emissions from bus. proc. Business benefits: Cost & Risk reduction Strategy: “Guidance Produit” (Product Stewardship) Integrate stakeholders’ views in bus. processes Business benefits: Reputation & Legitimacy Drivers Clean Tech. Footprint «Disruption» Drivers Pollution Consumption Waste Drivers Population Poverty Inequalities Drivers Civil society Transparency Connectivity Nurturing Internal capabilities Engaging external constituencies Managing today’s business Building tomorrow’s opportunities Motivation – 4 axes of a sustainable business strategy? Source: Adapted from S. Hart and M. Milstein, 2003. “Creating Sustainable Value” Academy of Management Executive, 17(2) (2003): 56-69 “Sustainable ” strategy “Sustainable ” strategy

24. Are ethics or corporates instrumentalized? Protestant ethos Protestant ethos Birth of modern Capitalism Birth of modern Capitalism Time 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 Where do we go? Consumerist Capitalism Consumerist Capitalism Promotion Of a childish ethic Promotion Of a childish ethic Post-capitalist Ethic Post-capitalist Ethic Rise of the post- capitalist economy ? Progressist ethos Progressist ethos Expansion of industrial Capitalism

25. Step 7: Measuring and reporting Focus How to measure and report on issues identified in the following steps. How to track the progress of actions identified and agreed to be necessary during progression through the seven steps. Outputs Identification of what data to measure and report A summary of actions required A framework for tracking progress on agreed actions Step 1: Identifying the Triggers Focus How a combination of changes in the external environment and heightened expectations from stakeholders cause triggers that impact business. How these triggers can pave the way for a revision of business strategies and operational practices. Outputs Identification of potential triggers caused by CSR factors in the external environment Identification of potential triggers prompted by stakeholders An assessment of the likely impact of these triggers on the businessting Step 6: Engaging Stakeholders Focus How to engage stakeholders in the shaping and delivery of business strategies Outputs An assessment of how proposed strategies impact stakeholders, and vice versa Identification of the roles required of stakeholders to enable implementation of the strategies Identification of the necessary actions needed to ensure the desired roles are undertaken Step 2: Scoping what matters Focus How to assess the potential impact of key triggers on business strategies. How to generate revised strategies. Outputs Identification of potential business strategies A revision of the strategies in light of stakeholder impacts and inputs Further refinement of the strategies taking into account current market and operational issues A ranking of the strategies based on possible importance for the business Step 5: Integrating and gathering resources Focus How to integrate aspects of CSR and other operational requirements that emerge from reviewing business strategies. Consideration of resource implications. Outputs An assessment of resources needed to implement proposed strategies and operational changes Identification of resource gaps and potential sources Step 3: Making the business case Focus How to build the business case for the proposed business strategies, informed by the marketing mix, organisational considerations and by overall corporate goals and business drivers. Outputs An analysis of the impact of the strategies on revenues & costs, informed by marketing mix & organisational considerations An analysis of the alignment between proposed strategies, key business drivers and corporate goals An assessment of how the proposed strategies fit with organisational culture A ranking to identify the most attractive strategies Step 4: Committing to action Focus The implications of and for proposed strategies in light of organisational values, leadership style and governance arrangements. Outputs An assessment of the implications of proposed actions on corporate values and leadership – and vice versa An assessment of the implications for governance and management arrangements An identification of appropriate public commitments to be made and communications signals to be given 7 steps to CSO

26. 1. What are innovators responsible for ? 2. What should they be responsible for ? 3. How do you move from the current to the “desired” state ? Responsibilization & Innovation