Good Corporate Citizen
Last week…
– Agent of change
GCC fosters innovation, masters the market, but in ways
that are aware of societal trends and issues (such as
telecommuting, w/l) Change is Planned, integrated and
responsive. GCC is neither exploitive nor opportunistic.
– Socio-moral development
Gilligan v Kohlberg
Care v Justice
Morality as…
Web of relationships
Care
Harmony
Responsibility for self
and others
Non-violence
Sanctity of individual
Fairness
Reciprocity
Rights of self and
others
justice
Gilligan v Kohlberg
Care v Justice
The dilemma as…
Threats to harmony
and relationships
Conflicting rights
Gilligan v Kohlberg
Care v Justice
The self as…
Committed
Member
feeling
Impartial
Autonomous
objective
Gilligan v Kohlberg
Care v Justice
Sense-making by…
Experiential
Inductive
contextual
Formal/logical
Deductive
universalistic
Ethics Programs and the GCC
Explicit development and implementation of
strategic policies, programs, and positions for
managing ethical issues and achieving a
positive reputation for the firm or public sector
organization
Issue of governance, reputation and strategic
issues
What is genuine?
Involves…
Codes of ethics
Ombudspersons
Ethics officers
Harassment coordinators
Hotlines
Ethics committees
Social/environmental
audits
Stakeholder-balanced
boards
Ethics training
…
HOW TO ETHICALLY AUDIT A
CORPORATION
GENERAL AREAS TO AUDIT:
i) INCOME
ii) SECURITY AND STABILITY OF
WORKFORCE
-training/retraining
iii) WORKPLACE CONDITIONS
-heat, light, food, aesthetics,
access for disabled
iv) JOB CONTENT
-satisfaction, challenge, variety
GENERAL AREAS TO AUDIT:
v) HEALTH & SAFETY
-incidence of injury/disease
-protection
*vi) MANAGEMENT STYLE
-transparent/cooperative
vii) NON-WORK OPPORTUNITIES
viii) AIDS POLICY
*ix) CORPORATE CITIZENSHIP
*x) ENVIRONMENT
-AIR, WATER QUALITY
-NOISE
-PACKAGING
-WASTE DISPOSAL
*xi) CUSTOMERS
-FULL DISCLOSURE
-TASTEFUL ADS
-RELIABLE WARRANTIES
xii) MILITARY:
*xiii) GENDER/RACE ISSUES
Moral Leadership
View A: The game of business
“within the game to win… leaders must be willing, as
agents of the organization, to engage in opportunistic
behaviour– to buy low and sell high, to selectively and
skillfully extract and divulge information, to build allies
and to broker deals with a constant, if not penetrating
eye on the bottom line… the leader is the individual
skilled at directing the organization to victory over its
competitors… they do and say what is required…moral
qualms are seen as weaknesses, taking a step or two
out of a leader’s quick ability react…. They are agents
for the firm, for its stockholders and members– not for
society at large.” p21
View B: What’s “wrong” with view A
Prescribes a view of how to run a business
most efficiently, not how actually run.
Poor management to let others set your
agenda for you (as in regulation)
Adapting to change means being moral
pioneers
Why not “extract rents” from being a moral
leader and setting industry standards?
Herman Miller:
What we believe in…
• making a meaningful contribution to our customers
• cultivating community, participation & people
development
• creating economic value for shareholders &
employee owners
• responding to change through design & innovation
• living with integrity & respecting the environment
Exxon
We pledge to be a good corporate citizen
in all the places we operate and to be a
responsible member of the human
community. We will maintain the highest
ethical standards and are dedicated to
running safe and environmentally
responsible operations.