1. Conscientious Leadership
Green Group
Boya Jiang, Yingfei Shen, Keqing Song, Yiqun Sun, Nanhua Yang

2. Today’s Key Words
Adaptive leadership: The idea that leadership in complex, cross- cultural, disruptive environments requires adaptive rather than technical expertise.
Moral trust: The idea that it is a leader’s role to foster an organizational moral compass that creates a climate of shared values, trust, and mutual accountability.    
Resilient leadership: The idea that conscientious leaders learn from failure.

3. The Theory Behind the Practice
Heifetz, Grashow, Linsky. Practice of Adaptive Leadership: Tools and Tactics for Changing Your Organization and the World.
The research of adaptive leadership helps to understand:
The relationship among leadership, adaptation, systems, and change
Explain the evolution of all the life, especially for human life
What can we learn from adaptive leadership?
Change that enables the capacity to thrive
The importance of the past
Experimentation
Diversity
Displacement, reregulation, and rearrangement of DNA
Time effort

4. The Theory Behind the Practice
1. Interaction between People and System
“Social system is the way it is because the people in that system want it that way.”
The authority want the organization like current situation rather than something new.
2. Technical Problems vs. Adaptive Challenges
Technical problems:
complex and critically important
can be solved through the authority and the organization
Adaptive challenges:
changes in people’s priorities, beliefs, habits, and loyalties
may be resisted due to involving losses
Successful adaptive leadership enables people get more benefits than losses

5. The Theory Behind the Practice
3. Leadership vs. Authority
Leadership ≠Authority, power, and influence
The leader gets reward from the authorizers
The leader needs to meet authorizers’ expectations
The leader takes risks such as disruption and disorientation
Core responsibilities: direction, protection, order

6. The Theory Behind the Practice
4. Disequilibrium
Conflict, frustration, confusion, disorientation, fear…
Disequilibrium increases and changes in the process
To deal with the disequilibrium: live into the disequilibrium
manage yourself
help people to release the discomfort
be patient and persistent

7. The Theory Behind the Practice
5. Three Key Activities: Observation, Interpretation, and intervention
discover and collect the data
hypothesize and analyze
design and practice
6. Taking ‘Smart’ Risk
Improve skills

8. The Theory Behind the Practice
7. Engagement: Heart, Mind, Spirit, and Courage
When exercising leadership, first engage with yourself, and then connect with others.
8. A Shared Purpose
clarify the values
identify the purposes
provide guidance, sustenance, and inspiration

9. The Global Moral Compass for Business Leaders
Lindsay J. Thompson
The Global Moral Compass: a leadership tool for managing moral complexity in a globalized business culture
Demonstrates the value of the Global Moral Compass:
1. Globalization, with its undisputed benefits, also presents complex moral challenges that business leaders cannot ignore.
Unequipped for the challenges of leadership in a global arena of competing and conflicting value claims
Discovery that even carefully crafted deliberative decisions may be undermined

10. 2. Managing moral challenges is the work of leaders
Leadership is a moral trust; leaders are moral agents with responsibilities toward
Ignore social issues to focus on profitability
Moral leadership in response to social issues is now widely considered part of a leader’s responsibility
leaders are challenged to enlarge their understanding of the broadly universal character of leadership
Improve their effectiveness in orienting profitable business decisions toward sustained alignment with human values
Leaders need tools for engaging and managing the human values and moral will in moving forward to accomplish strategic business goals

11. The Global Moral Compass for Business Leaders
3. Managing the moral complexity of globalization requires an adaptive framework for linking diverse value positions and wisdom traditions.
Adaptive Leadership: the role of leaders in constructing knowledge to understand the pressure of adaptive dynamics and in using that knowledge to lead change more effectively
To identify and respond effectively to adaptive challenges involving conditions of risk, danger, and uncertainty that call for new wisdom as well as new knowledge
The Global Moral Compass : an expanded epistemic value framework as an aid to understanding and managing moral complexity in a globalized business culture

12. The Global Moral Compass for Business Leaders
A generic moral framework that links diverse social identities and locations to structures of shared meaning without distorting
Clarify personal morality and to build moral solidarity in work teams, organizations, or communities comprised of diverse members
Four parts: vision, code, fitness, and performance
Moral vision is the ”true north” of the moral compass.
An intentional, normative moral code is the rational aspect of moral identity that complements the symbolic, intuitive moral vision.
Moral fitness is the symbolic aspect of moral agency; it is ritualized action that expresses and reflects the vision and values of moral identity.
Performance is the ‘‘proof of the pudding’’ – the intentional aspect of moral agency demonstrated in concrete decisions and behavior.

13. Deepwater Horizon oil spill - a 'classic failure' of BP management
About BP：
one of the world's seven "supermajor" oil and gas companies.
has operations on six continents, located in over 80 countries, headquarters located in London, UK
largest operating division is BP America, in Houston, TX
So I will talk about the deep water horizon oil spill case and let’s explore together what lessons of management and leadership failure we can learn from this crisis.
First, let me introduce BP, previously known as British petroleum and know changed the name into beyond petroleum, is --
let’s watch a BP’s latest advertising video to get the idea what kind of value this company holds.
In the video, BP emphasis that safety is their first priority, they are prepared for any emergency and they try their best to protect their employees.

14. How the tragedy happened
20 April 2010, Deepwater Horizon Platform exploded
Fire burnt for 36 hours
11 people died as a result of the accident and 17 others were injured.
Oil leaked for 87 days, 5 million barrels of oil spilled into the Gulf of Mexico
-- The largest accidental release of oil into marine waters in history
However, this company was blamed for causing the largest accidental release of oil into marine waters in the history. --
Actually there is a movie coming out this October which is adapted from this tremendous accident. Let’s watch the trailer of the movie together to see how severe this accident is.

15. BP’s Values In 2009 In 2011 Progressive Safety Respect Innovative
Performance driven
Responsible
--> Meet energy demand of today and tomorrow
In 2011
Safety
Respect
Excellence
Courage
One team
--> Changed visible things to have a quick payoff, but did not redesign itself
Actually the deep water horizon oil spill was not the first time BP was involved in an environmental crisis. On March 23, 2005, BP’s Texas City’s oil refinery exploded and killed 15 workers, injured another 170 people. Ironically it did not have a crisis management plan in place each time.
Before the accident, BP’s value is progressive and performance driven, but after the accident, BP quickly changed its visible value into safety, respect and one team. The organization’s culture and value can always expose some potential risk

16. BP’s CEO Tony Hayward Joined BP in 1982, as a geologist with a Ph.D.
Appointed as CEO in 2007.
04/29/2010, Hayward asked fellow BP executives, “What the hell did we do to deserve this?”
05/14/2010 “The Gulf of Mexico is a very big ocean. The amount of volume of oil and dispersant we are putting into it is tiny in relation to the total water volume.”
05/18/2010 “I think the environmental impact of this disaster is likely to be very, very modest”
05/31/2010 “The first thing to say is I’m sorry. We’re sorry for the massive disruption it’s caused their lives. There’s no one who wants this over more than I do. I would like my life back.”

17. The Key Public
Residents that relied on the Gulf of Mexico to make a living. Residents of Louisiana, Mississippi, Alabama, and Florida
American people in general as well as BP stakeholders.
who owned businesses’, were fishermen, or community members, and all persons that economic livelihood was affected by the oil spill in the Gulf of Mexico.
The American public is mostly concerned with how this crisis will affect the ecosystem, while BP stockholders are concerned with their financial investments in the company.

18. Discussion:
Based on above information, what lessons of failure we can learn from BP’s case?
You may use the keyword pool to demonstrate your argument:
Adaptive leadership, Moral trust, Resilient leadership, Shared values, Mutual accountability, Moral challenge, Transparency, Globalization, Responsibility, Honesty, Organizational Culture.
So here comes our question. --
You can divide yourselves into group of 4, you have 10 minutes for discussion and choose one team member as representative of your team. You may find a white board area, discuss and write down the keywords you want to use in your arguments then link them into sentences in the little pitch.

19. Five Leadership Lessons from the BP Oil Spill
1. Crises expose dysfunctional organizational cultures. 2. Leaders must recognize when a crisis can’t be spun. 3. Leaders need to work together rather than scoring points or deflecting blame. 4. Leaders are there to serve their companies, people and communities. 5. True leadership exists beyond title and office — elected leaders should remember this.
Most of your excellent answers have covered this summary.

20. Open forum
Have you seen successful leadership cases in crisis?

21. Unexpected Consequences
Catastrophic failures have common causes
Technology played a small part in most disasters
The root causes are organizational dysfunctions, group dynamics, and cognition issues at an individual level
ex: 2009 financial crisis, BP oil spill, Haiti earthquake VS Chile earthquake

22. How can we improve? Respond speed & efficiency level
Technology necessary for failure prevention or mitigation.
Driven to a root cause level
Event preparation and relief responses efforts rather than as ad-hoc strategy after an event occurs.
Right regulations

24. DUPONT CASE DISCUSSION
Bring the concept of conscientious leadership into the discussion.

25. TWO COMPANIES DuPont Chemical Company Taft Law Firm
Conceal the knowledge of PFOA's toxicity and presence in the environment.
Continuing refusal to accept responsibility.
Taft Law Firm
Face a large economic revenue loss
Still support the lawyer to "do the right thing"

26. “
DuPont had for decades been actively trying to conceal their actions. They knew this stuff was harmful, and they put it in the water anyway. These were bad facts. ”
- Rob Bilott, the lawyer

27. VIDEO: REMARKS ON DUPONT'S LEADERSHIP“
We cannot let corporate criminals like DuPont get away with murder. Someone needs to be held accountable more than just a lawsuit. It is time to break out the handcuffs and put these people into jail. Their actions have ruined people’s lives, and they did this intentionally. ”
Ring of Fire’s Farron Cousins

28. Small Group Discussion
How would you compare the leadership of DuPont Chemical Company and Taft Law Firm? How could they do better?

29. FYI: FACTS TIMELINE
DuPont started purchasing PFOA (C8) from supplier to manufacture Teflon. DuPont specified that PFOA should not be flushed into surface water, but over decades, DuPont pumped PFOA powder into Ohio River.
1951
1984
DuPont continued to conduct secret medical studies on PFOA. DuPont found the presence of PFOA in local water supply, and the levels were 3 times of its internal safety limit. DuPont declined to make the information public.
DuPont’s scientists understood that the landfill drained into Dry Run Creek and found a higher concentration of PFOA, but did not disclose this fact.
1990
The supplier ceased production of PFOA. Instead of using an alternative compound, DuPont built a new factory to manufacture the substance for its own use.
1993
DuPont developed an alternative to PFOA, but the discussions at the corporate headquarters decided against it, because of the PFOA’s huge annual profit of $1 billion.
2000
2001
DuPont requested a gag order to block Bilott from providing information about PFOA to the government. After it failed, DuPont re-evaluated the safe exposure level to a new threshold to avoid the lawsuits.
DuPont ceased production of PFOA, and replaced PFOA with an alternative with unknown human effects.
2013

30. Small Group Discussion
IT'S YOUR TURN NOW! As a business leader, you want to pursue the maximum profit for the whole group. But it may happen that your decision, which you think is correct, conflicts with the whole group’s decision. Will you insist your own statement or let all the people to vote for a result?

31. THANKS!
Any questions?