Министерство общего и профессионального
образования Российской Федерации
Российский Экономический Университет
имени Г.В. Плеханова
Международная Школа Бизнеса (МШБ)
IBS-Plekhanov
Тематический модуль
Этика бизнеса
Москва 2011
Составители: Л.Б. Филиппова
М.С. Циликова
И.В. Аввакумова
Л.П. Тимошенко
Е.Е. Сидорова
О.В. Осипова
Т.Ю. Вепрецкая
2
Тематический модуль «Этика бизнеса» (Business Ethics)/ Сост. Л.Б. Филиппова, М.С. Циликова,
И.В. Авакумова, Л.П. Тимошенко, Е.Е. Сидорова, О.В. Осипова, Т.Ю. Вепрецкая.
М.: Рос. Экон. Унив., 2011
Содержит тексты и задания к тематическому модулю «Этика бизнеса» по курсу английского
языка
Предназначены для студентов факультета МШБ.
3
Business Ethics
Lead in
Introduction into the course
THOUGHTS TO PONDER:


‘A business that makes nothing but money is a poor kind of business’ (Henry
Ford, US industrialist 1863-1947)
‘The one and only social responsibility of business is to make profits’ (the
economics guru Milton Friedman)
The subject of ethics forms a central element in managerial responses to social forces. In
many situations, an individual must reach a personal decision in regard to what is the right
thing to do. In this process, the individual may look to philosophy or religious beliefs
concerning what is right and wrong or may turn to history and laws for guidelines.
Recent years have seen a proliferation of academic articles and media commentary
concerning “corporate social responsibility”, with the search for consistent corporate positions
on these issues. Many firms have sought to develop guidelines and formal statements that can
assist employees when they confront ethical dilemmas. However, it is not easy for an
organization to develop clear and useful pronouncements. Values, cultural behaviors, and
even ethical standards differ significantly among countries. For some issues, such as those
relating to social interaction, there may be a general acceptance of local norms. For certain
issues, such as prohibitions against bribery of government officials, some firms attempt to
enforce their home-country code of conduct globally while realizing that this could handicap
their financial success; other firms adapt to local practices. In each country, managers need to
understand such cross-cultural differences and consider what adjustments in corporate
practices would be appropriate.
Recent years have also witnessed a proliferation of stakeholder groups who believe that their
views should be incorporated into the decision-making process of the firm. Stakeholders may
use a variety of mechanisms to influence corporate decisions.
Several subject areas have become particularly important as the focus for corporate social
responsibility and stakeholder actions. Concerns about environmental pollution now cover a
host of corporate activities. Investments in new technologies to reduce pollution may be
expensive, and so investment decisions can also be affected by differences in environmental
regulations and labor standards, as firms locate in countries with lower standards and/or lax
enforcement. There is a concern that corporations may tend to invest in less developed
countries because they have lower environmental standards. At the same time, air and water
cross national boundaries, and so corporate pollution has increasingly become an international
concern, with new international agreements creating new environmental regulations.
4
Government programs and policies are affected by societal pressures, and societal pressures
may also affect a firm directly. Societal forces differ significantly among countries, and they
change significantly over time. Corruption and human rights violations have become
international concerns rather than just domestic issues and have led to new international
agreements that seek to create common standards. For businesses, trade sanctions in response
to human rights violations pose a recurring dilemma. The repressive violation of human rights
has led people throughout the world to urge their governments to place embargoes on certain
countries, placing a halt to trade and investment with them.
The current ‘antiglobalization debate’ deserves consideration because many express the view
that poverty and inequality have been exacerbated by the reduction of trade and investment
barriers. Antiglobalization protestors blame corporations for exploiting less developed
countries in their trade and investment decisions. This debate extends to the obligations that
rich nations should accept in assisting poor nations in the development process, including
criteria for foreign aid and debt forgiveness.
Both shareholders and stakeholders look to boards of directors for leadership and corporate
decision making in many of these societal issues. Consequently, the role and responsibilities
of boards of directors have tended to increase in many countries.
1. In teams
A. Look through the text and make a list of forces that make companies start thinking about
business ethics. Compare your list with members of other teams.
B. Make a list of stakeholders of a corporation who may be interested in ethical activity of a
company. How can each group influence a company?
Should companies demonstrate greater responsibilities and accountability to stakeholders?
Why (why not)? Present your findings in class.
C. In what ways, if any, do you think a company is responsible to the following groups:
shareholders, employees, suppliers, customers and the wider community? Can you think of
any other groups? Report to the class.
HOME ASSIGNMENT - 1. Write a short summary (50 words) on the basis of your
discussion concerning company’s responsibilities to stakeholders.
2. Read the article “How good should your business be?” ,
write a summary of 100 words, make up word lists (word – translation – English definition –
an example of using the word in a sentence)
Unit 1
Discussion points:
5
 Do you think multinational companies operating in poor or developing countries have
a duty to improve the quality of people’s lives in these countries? Why (not)?
How good should your business be?
Jan 17th 2008
From The Economist print edition
Corporate social responsibility has great momentum. All the more reason to be aware of
its limits
HOW wonderful to think that you can make money and save the planet at the same time.
“Doing well by doing good” has become a popular business mantra: the phrase conjures up a
Panglossian best-of-all-possible-worlds, the idea that firms can be successful by acting in the
broader interests of society as a whole even while they satisfy the narrow interests of
shareholders. The noble sentiment will no doubt echo around the Swiss Alps next week as
chief executives hobnob with political leaders at the World Economic Forum in Davos.
For these are high times for what is clunkingly called corporate social responsibility (CSR).
No longer is it enough for annual reports to have a philanthropic paragraph about the charity
committee; now companies put out long tracts full of claims about their fair trading and
carbon neutralising. One huge push for CSR has come from climate change: “sustainability”
is its most dynamic branch. Another has been the internet, which helps activists scrutinise
corporate behaviour around the globe. But the biggest force is the presumption that a modern
business needs to be, or at least appear to be, “good” to hang on to customers and recruit
clever young people.
Thus for most managers the only real question about CSR is how to do it. It is also worth
repeating a more fundamental question asked before: is the CSR craze a good thing for
business and for society as a whole?
Begin with business, where the picture is mixed. Much good corporate citizenship is a smug
form of public relations. Public relations is part of business. A bad name has seldom been
more expensive, especially when there is a war for talent and customers can look at your
supply chain in Vietnam on YouTube. Public companies, remember, are creations of the state.
In return for the privilege of limited liability, society has always demanded vaguely good
behaviour from them. The cost of this implicit social franchise, whether shareholders like it or
not, has risen. Companies as varied as Nike in clothing, GlaxoSmithKline in pharmaceuticals
and Wal-Mart in retailing have had to change their ways quickly to avoid consumer or
regulatory backlashes.
And it is not just a question of fending off disaster. CSR has got more focused: there are
fewer opera houses, more productive partnerships with NGOs. Greenery, in particular, has
6
paid off for some companies' shareholders. Toyota stole a march on other carmakers by
appearing greener. European power companies which helped set up the continent's carbontrading system did extremely well out of it.
Some people complain that this sort of “good corporate citizenship” is merely another form of
self-interest. Correct — and good. They should be happy that this category has grown. The
difficulties with CSR come when companies get it out of proportion. For instance, there is a
lot of guff about responsibility being at the core of a firm's strategy. But even the business
gurus who promote the idea admit that examples are scarce. And being a champion at
responsibility does not guarantee great financial results, as recent setbacks at Starbucks and
Marks & Spencer have shown.
An inconvenient truth for advocates of CSR is that the connection between good corporate
behaviour and good financial performance is fuzzy at best. The latest academic research
suggests that a positive link exists, but that it is a weak one. Of course, it's not clear which
way the causality runs—whether profitable companies feel rich enough to splash out on CSR,
or CSR brings profits. Either way, there is no evidence to suggest that CSR is destroying
shareholder value, as Milton Friedman and others feared. But nor is it obviously the most
productive way for managers to spend their energies. Caution is especially called for at a time
when the CSR bandwagon is on a roll.
If companies need to be vigilant about the limits of CSR, the same applies even more to
society as a whole. A dangerous myth is gaining ground: that unadorned capitalism fails to
serve the public interest. Profits are not good, goes the logic of much CSR; hence the
attraction of turning companies into instruments of social policy. In fact, the opposite is true.
The main contribution of companies to society comes precisely from those profits (and the
products, services, salaries and ideas that competitive capitalism creates). If the business of
business stops being business, we all lose.
Most of the disasters have come from politicians seeking to offload public problems onto
business: American health care is one sad example. But companies are increasingly keen on
public policy. Take for instance, the vogue for “multi-stakeholder initiatives”—firms getting
together with competitors, activists and others to set rules for a particular area of business
(diamonds, project finance, extractive industries and so on). In some impoverished places
such “soft law” helps to fill a void. But be wary: businesses do not always adhere to voluntary
rules; they naturally want ones that help them make money. Above all, it is governments, not
firms that should arbitrate between interest groups for the public interest.
So the apparent triumph of CSR should prompt humility, not hubris. There is money to be
made in doing good. But firms are not there to solve the world's political problems. It is the
job of governments to govern; don't let them wiggle out of it.
7
§
1
word or phrase
Russian equivalent
Momentum
движущая сила; импульс, наступательный порыв
Conjure up
заставлять появиться как
вызывать в воображении
Panglossia
Наивно-оптимистичный (герой
Панглосс- глупец-философ)
Sentiment
High times
чувство; дух (произведения искусства и т.п. в
противоп. форме); сентиментальность; мнение;
отношение; настроение; мысль
наугад; наобум; напропалую; фамильярно;
запросто; по-приятельски; по-свойски; чокаться;
пить за здоровье друг друга; якшаться;
фамильярничать
самое время
Clunk
глухой металлический звук
Philanthropic
благотворительный
Tract
трактат; брошюра
Sustainability
устойчивое развитие
Scrutinize
внимательно
рассматривать;
тщательно проверять
Presumption
Hobnob
2
по
волшебству;
Вольтера
–
разглядывать;
3
Craze
4
Smug
предположение; допущение; основание для
предположения; вероятность; самонадеянность;
наглость; презумпция
мания; пункт помешательства; мода; общее
увлечение; трещина в глазури; поветрие
самодовольство , снобизм , чопорность, пафос
Regulatory
нормативный; предписывающий
Backlash
неожиданное сильное движение назад; ответный
удар; отрицательная реакция
Fend off
парировать;
предотвращать
Steal a march on smb
перейти дорогу кому-л; упреждать противника;
совершать марш скрытно от противника
5
8
держать
на
расстоянии,
6
Guff
пустая болтовня
7
Fuzzy
нечёткий; размытый
Causality
причинная связь или обусловленность
Shareholder value
акционерная
акции
To be vigilant about
бдительный; бессонный; неусыпный
Unadorned
неукрашенный; без прикрас
Hence
следовательно; в результате; отсюда
To offload
освобождать от излишней загрузки; разгружать
Impoverished
Adhere to
бедный; обедневший; доведённый до нищеты;
истощённый;
убогий;
жалкий;
скудный;
обнищалый
придерживаться, оставаться верным (принципам)
Void
пустота; вакуум; пустое место; пробел
Wary
Hubris
осторожный; осмотрительный; насторожённый;
подозрительный; недоверчивый; опасливый
видимый;
различимый
(легко);
явный;
очевидный;
несомненный;
наглядный;
кажущийся;
бесспорный;
наблюдаемый;
истинный
смиренность;
скромность;
застенчивость;
незначительность; смирение
высокомерие; гордыня
Wiggle out
выкрутиться
8
9
10
Apparent
Humility
стоимость;
биржевая
Discuss your word list, definitions and examples with your team members.
I. Answer the following questions:
1. How do you understand the term “Doing well by doing good”?
2. Why is the current situation a high time for CSR?
3. What ways to do “responsible business” could you suggest?
9
стоимость
4. Isn’t “good corporate citizenship” merely another form of self-interest?
5. What multi-stakeholder initiatives does the article mention and what is their impact on the
development of the countries’ economies?
II. Work on the structure of the article. Single out the main ideas.
III. Discussion and team work
1. In teams discuss the summaries and formulate a thesis statement
2. Discussion topics: Split into three teams. Prepare mini-presentations
Team 1: “Good corporate citizenship” doesn’t guarantee great financial results.
Team 2: Potential risks for a company of being socially responsible.
Team 3: Unadorned capitalism fails to serve the public interest.
IV. In teams brainstorm the topic “CSR should prompt humility, not hubris.”
HOME ASSIGNMENT : 1. What type of social programmes are some well-known
multinational companies involved with? Use the Internet to help you find out. Which
programmes do you like most and why? Write about this programme (in not more than 100
words).
2. Read the article “A stitch in time”, write out topical vocabulary, make a list of companies
which ran into difficulties due to unethical activities).
Unit 2
Discussion points:
1. In teams discuss the lists of companies and enumerate the reasons for their problems
2. How do you understand the title of the article?
3. Should CEOs and senior management be held legally responsible for actions taken by
other members of staff? What penalties should there be for companies that commit the
following violations?
10
Polluting the environment
Employing child labour
Not providing a safe working environment
Lying to shareholders about the financial position of the company
- Selling unsafe products to consumers
- Fixing prices
4. Governments in the US and the EU are considering legislation to stop food companies
advertising junk food to children. How far should the food industry be held responsible
for people’s health problems?
5. To what extend do you think other types of industries (tobacco, mobile, pharmaceutical,
etc.) should take responsibility for people’s health problems?
A stitch in time
Jan 17th 2008
From The Economist print edition
How companies manage risks to their reputation
BUSINESS leaders embrace corporate responsibility for
a number of reasons. Lee Scott, the CEO of Wal-Mart, was converted to it by the aftermath of
Hurricane Katrina (which showed his company's full potential to serve “not just our
customers but our communities, our countries and even the world”). Others are lured by the
glamour of making pledges at the Clinton Global Initiative. For some, though, it is public
embarrassment and lawsuits that concentrate the mind.
Take Yahoo!, a technology company that ran into difficulties over the jailing of two Chinese
dissidents after the company handed data on them to the Chinese authorities. In November
Yahoo!'s chief executive, Jerry Yang, and its top lawyer had to listen to Tom Lantos, a
congressman, denounce them as technology giants but moral pygmies. The following week
Yahoo! reached an out-of-court settlement with the families of the jailed men.
Trouble seems to come in waves, pounding industry after industry, each time for a different
reason. It has hit the oil business because of spills and explosions. Mining companies have
come under attack for collusion with corrupt governments. Clothing companies have faced
scandals over the use of sweatshop or child labour. The petfood industry was pilloried after
cats were killed by tainted imports from China. Mattel and other makers had to recall millions
of toys made in China on safety grounds.
Most of the rhetoric on CSR may be about doing the right thing and trumping competitors,
but much of the reality is plain risk management. It involves limiting the damage to the brand
and the bottom line that can be inflicted by a bad press and consumer boycotts, as well as
dealing with the threat of legal action.
In America, the legal instrument of choice (as in the Yahoo! case) is the Alien Tort Claims
Act, which allows companies to be taken to court in America for violating human rights
abroad. Under international law only states can be held responsible for violating human
rights, but allegations of complicity in state abuse can provide a hook for legal claims against
companies. Even if it does not get as far as a trial, this can be embarrassing and costly for
companies.
11
Three years ago Unocal, a Californian oil company, settled out of court (reportedly for some
$30m) over allegations of complicity in abuses by government soldiers against villagers in
Burma during the construction of a pipeline in the 1990s. However, the company denied any
responsibility. Another oil company, Talisman Energy, discovered that being Canadian was
no protection against a legal claim in the United States. It was facing a lawsuit by the
Presbyterian Church of Sudan alleging complicity in genocide in Sudan, where Talisman had
invested in the Greater Nile Oil Project—even though Talisman, under pressure from humanrights groups, had sold its stake back in 2002.
For the moment, though, the biggest problem many companies have to deal with is something
that has sprung from rapid globalisation. It is the risks associated with managing supply
chains that spread around the world, stretching deep into China, India and elsewhere. For
some, this is a challenge on a grand scale: Nike's contractor network, for example, involves
some 800,000 workers.
Firms can set standards of behaviour for suppliers, but they do not find it easy to enforce
them. Unscrupulous suppliers may cheat, keeping two sets of records, one for show, one for
real. Others, under intense pressure to keep costs low, may cut corners—allowing unpaid
overtime, for example, or subcontracting work to other firms that escape scrutiny.
And on top of the need to guarantee labour standards and product safety across an extended
network, a new demand is starting to emerge: companies have to consider the environmental
“sustainability” of their suppliers too. So inspection regimes are set to intensify, at a time
when audit fatigue has already become a problem for suppliers. Surveys suggest that a typical
garment factory may expect to be inspected 25 times a year. Levi Strauss, Timberland and
others in the industry are starting to collaborate on inspections to reduce the burden on
suppliers.
Involvement in social programmes, especially in poor parts of the world, is an increasingly
fashionable way for a company to burnish its brand and, with luck, protect itself from attack.
Which self-respecting CEO these days wants to be caught doing nothing for Africa? But
sometimes these programmes also have a clear business rationale. Anglo American, for
example, says the $10m a year it spends on HIV testing and treatment in Africa is starting to
pay for itself through reduced absenteeism and
longer lives for skilled workers.
The big drugs companies, for their part, were greatly embarrassed by accusations of ignoring
the needs of Africans dying from HIV/AIDS, so GlaxoSmithKline and others decided to make
HIV drugs available for no profit. Merck has entered an innovative partnership to fight AIDS
with the Bill & Melinda Gates Foundation and the government of Botswana, where the
proportion of sufferers being treated is now the highest in Africa. Since 1987 Merck has also
donated 1.8 billion tablets to treat river blindness, reaching more than 60m people a year in
12
Africa, Latin America and the Middle East. All this helps to quieten the critics. The
involvement in emerging markets may even prove a good investment in future growth.
Novo Nordisk, a Danish company that supplies a big share of the world's insulin, has written
the “triple bottom line”—that is, striving to act in a financially, environmentally and socially
responsible way—into its articles of association. It reckons that having the creed anchored so
firmly is making it more alert to both risks and
opportunities.
WORD LIST
§
1
2
word or phrase
Aftermath
Lure
Russian equivalent
последствия (катастрофы, бедствия)
привлекать; завлекать; соблазнять; искушать;
завлечь;
Pledge
Denounce
Tainted
trump
обет; обещание
осуждать; обвинять; разоблачать; денонсировать
(договор); расторгать; обвинить
пигмей; карлик; ничтожный человечишка;
ничтожество; гном; относящийся к пигмеям;
малютка
полюбовное соглашение
работать усиленно; бомбардировать, бить,
колотить
сговор (в ущерб третьей стороне); тайное
соглашение; тайный сговор
потогонное производство
пригвоздить к позорному столбу; выставить на
осмеяние; осудить; поставить к позорному столбу
испортившийся, испорченный
превзойти (кого-л.)
The bottom line
Inflict
общий итог; окончательный баланс
причинять (убытки, ущерб и т.п.)
Allegation
утверждение; ссылка (на какую-л. причину);
голословное утверждение
соучастие (в преступлении и т. п.); что-л.
сложное; причастность
злоупотребление (чем-л.) ; нарушение (чего-л.)
появляться
недобросовестный;
бессовестный;
Pygmies
3
Out-of-court settlement
Pound
Collusion
Sweatshop
pillory
4
5
Complicity
7
8
13
Abuse
Spring (sprang-sprung)
Unscrupulous
Cut corners
9
10
11
12
Scrutiny
Fatigue
Burnish
Business rationale
Absenteeism
for my part
River blindness
strive
Articles of Association
Creed
Anchor
беспринципный; нещепетильный; неразборчивый
в
средствах;
неразборчивый;
безбожный;
беззастенчивый; нечистоплотный
экономить (на чём-л.) в ущерб качеству (ради
выигрыша во времени), действовать незаконно
внимательное изучение; изучение; рассмотрение
тяжёлая, утомительная работа
чистить; полировать; доводить до блеска
коммерческое обоснование
уклонение от участия; отсутствие собственника;
уклонение от посещения; прогулы
с моей стороны, что касается меня
"речная слепота"; онхоцеркоз
стараться; прилагать усилия
устав акционерной компании
кредо; убеждения; вероучение
ставить на якорь; стать на якорь; бросить якорь;
обосноваться; осесть; скреплять; закреплять;
уцепиться; вцепиться; ухватиться
Discuss your word lists
I. Answer the following questions:
1. How do companies manage risk to their reputation?
2. What are the reasons that make business leaders embrace corporate responsibility?
3. What makes it difficult for firms to enforce ethical standards of behavior?
4. How important for the company’s success is involvement in social programms?
II. Work on the structure of the article. Single out the main ideas.
III. Discussion and team work
1.
2.
In teams discuss the summaries and formulate a thesis statement
Discussion topics: Split into two teams. Prepare mini-presentations
Team 1- “Ethics is about what you do and not what you say”.
Team 2 - “Strategies are intellectually simple; their execution is not”
14
IV. In teams brainstorm the topic “CSR is plain risk management, or is it?”
HOME ASSIGNMENT – read the article “The good consumer”, write out topical
vocabulary, and write a summary of 50 words “What makes shoppers buy ethically?”
Unit 3
 In teams discuss and compare your summaries
 Can “buying ethically” be applied to both upmarket and downmarket consumers?
The good consumer
Jan 17th 2008
From The Economist print edition
Buying ethical is not as straightforward as it seems
WHAT'S a label worth? A lot, it seems, when it comes to towels in an upmarket New York
shop. In 2005 ABC Home Furnishings allowed two Harvard University researchers, Michael
Hiscox and Nicholas Smyth, to conduct an experiment on two sets of towels. One lot carried a
label with the logo “Fair and Square” and the following message:
These towels have been made under fair labour conditions, in a safe and healthy working
environment which is free of discrimination, and where management has committed to
respecting the rights and dignity of workers.
The other set had no such label. Over five months, the researchers observed the impact of
making various changes such as switching the label to the other set of towels and raising
prices. The results were striking: not only did sales of towels increase when they carried the
Fair and Square label, they carried on increasing each time the price was raised.
No wonder companies are keen to appeal to ethically minded consumers, whether on labour
standards or green credentials. Timberland, a New Hampshire outdoor-gear company, is
introducing detailed “Green Index” labels on its shoes. Sainsbury's, a British supermarket,
now sells only Fairtrade bananas, with the assurance that poor farmers have received a decent
price, and all its own-brand paper products come from sources approved by the Forest
Stewardship Council. Tesco, M&S and Wal-Mart have all launched initiatives that bet on the
rise of the ethical consumer.
On greenery, M&S reckons that British consumers
divide into four broad groups. About one in ten is passionately green and will go out of their
way to shop accordingly. At the other end of the spectrum one-quarter are not interested. Inbetween are those who care but want green consumption to be easy, and those who are
15
vaguely concerned but don't see how they can make a difference . In M&S's view, that
represents an opportunity: three-quarters of British consumers are interested in the green
theme in some way.
But even the keenest ethical consumer faces complicated trade-offs, and sometimes the
apparently obvious ethical choice turns out to be the wrong one. Surely it must be greener for
Britons to buy roses from the Netherlands than ones air-freighted from Kenya? In fact, a study
at Cranfield University showed the carbon footprint of the Dutch roses to be six times as large
because they had to be grown in heated greenhouses.
Consumers are right to be suspicious of the ethical claims made for many products. A recent
study of the labels of 1,018 products in big stores in North America by TerraChoice, an
environmental marketing agency, found that almost all of them were guilty of some form of
“greenwashing”. They did not tell outright lies, but nor did they tell the whole truth.
A conditional shade of green
Joel Makower, the executive editor of GreenBiz.com, says that, given a choice, most
consumers will be happy to choose the greener product—provided it does not cost any more,
comes from a trusted maker, requires no special effort to buy or use and is at least as good as
the alternative. “That's a high hurdle for any product,” he notes.
So shoppers will still flock to shops that sell cheap products of decent quality, without asking
how these are made. They will often buy more if a product is attractively presented, never
mind that the packaging may be wasteful. And when companies try to do the right thing,
consumers will not always go along with them. Airlines that invite their customers to buy
carbon offsets have seen only minimal uptake.
The lesson for companies is that selling green is hard work. And it is no good getting too far
ahead of the customer. Half a step ahead is about right, according to Stuart Rose, the chief
executive of M&S. Much more, and you won't sell. Any less, and you won't lead.
WORD LIST
§
1
2
3
4
word or phrase
Fair and square
commit
Dignity
Switch
Credentials
Own-brand
16
Russian equivalent
Честно, справедливо
ставить своей приоритетной задачей
достоинство; чувство собственного достоинства
изменять
документы;
верительная грамота;
личные
качества, характеристики
с ярлыком магазина, где товар продан (вместо
ярлыка производителя)
6
Bet on
Trade-off
7
8
9
Greenwashing
Hurdle
Flock
Offset
carbon offset
uptake
I.
II.
Ставить на ч-л, рассчитывать на ч-л
изменение одного показателя за счёт другого;
компромиссное решение
обман; мистификация; розыгрыш
затруднение
стекаться; скапливаться; собираться толпой;
держаться вместе; сбиться в кучу; валить толпой;
зачет, возмещение, компенсация; взаимозачет
компенсация выбросов в атмосферу двуокиси
углерода
понимание
Discuss your word lists
Answer the following questions:
1.
How can you explain the logo “Fair and Square”?
2.
What are the 4 groups consumers can be divided in?
3.
Under what conditions do consumers prefer green products (according to Joel
Makower)?
4.
What makes selling green hard work?
III.
IV.
Work on the structure of the article. Single out the main ideas.
Discussion and team work
1.
Prepare a plan of presentation “An “ethical” corporation today is an organism capable
of both reaping profits and making a better place to live”
2.
Divide into teams and present arguments and counterarguments on the topic “Ethics is
the luxury only successful companies can afford”
V.
In teams brainstorm the topic “Human connections are key in a hyper-connected
world”
HOME ASSIGNMENT – read the article “Why “how” matters more than ever”, write out
topical vocabulary, enumerate reasons which make companies reframe their orientation in the
21st century, write a summary of 150 words.
Unit 4
1. Discussion
Work in pairs. Discuss the following questions with your partners.
1.
2.
17
Are there any differences in doing business nowadays and a hundred years ago?
What are the key peculiarities of running business in the 21st century?
3.
How do you understand the ethical business concept?
2. Text and Text Assignments
Why 'How' Matters More than Ever
New columnist Dov Seidman says human connections are key in a hyper-connected world—
no matter whether you're a doughnut maker or a doctor
by Dov Seidman
In the 21st century, how we do what we do matters more than what we do. Products
and services remain vital, but they now take a backseat to human connection. This principle is
central to thriving in our hyper-connected world, and I believe it applies to all levels of human
endeavor and business interactions.
Consider Ralph, a New York City doughnut maker, who captured the attention of
blogger Jason Kottke. When Kottke handed a dollar bill to Ralph in exchange for a 75¢
glazed donut, Ralph pointed to a pile of change scattered on the counter and yelled "Next!"
Kottke downed his doughnut while marveling that all of the customers who followed him
either gave Ralph exact change or made their own change, as he had done. It seemed to
Kottke that Ralph was serving an extraordinary number of customers. Kottke confirmed his
hunch by visiting other doughnut vendors nearby. On average, the competitors spent twice as
much time with each customer—and served half as many.
Ralph's innovative business approach—in economic terms, he reduced his transaction
costs by substituting trust for the labor of making change—serves as an important illustration.
Ralph could not differentiate his business based on his baking skills; his doughnuts are good,
but so are those baked by his competitors. Nor could he win on price or doughnut-baking
efficiency because the doughnut makers across the street could match him on both of these
counts as well. Efficiently baking delicious, competitively priced doughnuts is necessary, but
no longer sufficient to thrive. So, Ralph found a way to "outbehave" his competitors by using
trust to forge a deeper connection with his customers.
Evolving Our Networks of Association
Like Ralph, each one of us has daily opportunities to innovate in how we connect and
collaborate with customers, colleagues, and other stakeholders. Moving from a "what"
mindset to "how" one requires a major shift in perspective, because individuals and
businesses have been pursuing "what" for hundreds of years. But if we intend to thrive, rather
than merely survive, in the 21st century, we need to reframe our orientation.
First, we now live in a hyper-connected world. Communications technology has joined
us together across time, distance, culture, and country faster than we have developed
frameworks to understand one another. How do you write an e-mail to someone if you do not
know whether he treats a cow as a sacred object or lunch? In a connected world, it's essential
to create strong connections with others—to reach out, build trust, enlist others in a vision,
18
and share passions. To thrive in a hyper-connected world, we need to evolve our networks of
association.
Second, hyper-connectivity has created hyper-transparency. The quantum leap in our
access to information about almost everything has dramatically changed the playing field in
almost every way, in life and business. No longer can we shade the truth, fib a little on our
résumé, or tell one customer one thing and another something else. It has become too easy to
compare notes, check backgrounds, and subpoena e-mails. As individuals and organizations,
we no longer control the story that is written about us.
Looking at More, Looking Deeper
Instead, we can only control how we behave, which is the primary influence on how
our story is told by others. Think how easy it is to peer into the inner workings of a company
today. Chat rooms, online forums, instant access to financial reports and transactions, 24-hour
news coverage from around the globe; almost nothing goes unreported.
Because there is more to look at, we want to look deeper. For companies, simply
having a vision and mission no longer suffices because people can see whether our behavior
is consistent with our vision and mission. As a result, we have begun to judge people and
companies in different ways. We now expect a higher level of transparency from everyone
and every company. To thrive in a hyper-transparent world, we have to learn to be "actively
transparent," to turn the specific conditions of the age to our advantage.
Third, our flattened, hyper-connected world has limited previous modes of competitive
differentiation. Almost every product, service, or process a company creates—our "whats"—
can be reverse-engineered by competitors.
So many of our whats are quickly becoming commodities. Every company answers
the phone on two rings. Numerous manufacturers—not just Dell—have moved to just-in-time
inventory.
Human Conduct: The Next Frontier
The hows of human conduct are to the 21st century what process reengineering was to
the last. When business leaders realized that the soft and subjective aesthetic of quality was in
fact hard and quantifiable, we began measuring inefficiencies at every level of production,
and everyone got good at quality. So good that it, too, became a commodity. To thrive today,
we can no longer differentiate ourselves based on what we sell to the customer—or the
processes we use. Instead, we need to differentiate based on the connections we establish and
the experiences we create that engender trust and loyalty.
Human conduct—how we do what we do—represents the next frontier of powerful
differentiation. The qualities that many once thought of as "soft"—trust, integrity, honesty—
are now the hard currency of business success and the ultimate drivers of efficiency,
productivity, and profitability. Connections can reduce supply-chain risk, enhance customer
19
experience, help executives exert greater influence over a highly decentralized global
workforce, and ultimately lower costs and boost revenues.
Just ask the University of Michigan Health System and the University of Illinois
Medical Center at Chicago, two pioneers among a growing number of medical institutions
using an innovative way of connecting (or reconnecting) with customers: letting doctors
apologize to patients when they make mistakes. Both medical providers achieved hard
business benefits from their revolutionary departure from the traditional "deny and defend"
response to physician error. Since the policies that allow doctors to apologize began, The New
York Times reports, malpractice lawsuits have decreased by 50% at the University of Illinois
Medical Center and by nearly 70% at the University of Michigan.
Or ask Ralph, who found a way to increase his sales volume and reduce his person-toperson service time while building customer loyalty. Ralph learned what we all need to learn:
Shifting our focus from what to how has extremely beneficial consequences.
Ex. 1 Skim through the text and answer the questions.
1.
What is the main principle which may help us to thrive in the 21st century?
2.
How did Ralph manage to serve an extraordinary number of customers?
3.
How can you describe his innovative business approach in economic terms?
4.
Why is it so important to move from a "what" mindset to "how"?
5.
What are life and business in a hyper-connected world?
6.
Why do companies try to be "actively transparent"?
7.
How did the hyper-connected world affect competition?
8.
How did it change human conduct?
9.
Why have malpractice lawsuits decreased by 50% at the University of Illinois Medical
Center and by nearly 70% at the University of Michigan.?
10.
What lesson did Ralph taught us all?
11.
Ex. 2 Read each statement carefully and decide whether it is true or false. If it is false, tell
why, or explain how the statement can be changed so that it will be true.
1.
Products and services are central to thriving in our hyper-connected world.
2.
Ralph could differentiate his business based on his baking skills, but he reduced his
transaction costs by substituting trust for the labor of making change.
3.
If we intend to thrive, rather than merely survive, in the 21st century, we need to move
from a "what" mindset to "how".
4.
Communications technology joined us together across time, distance, culture, and
country, and we quickly developed frameworks to understand one another.
5.
Nowadays we can shade the truth, fib a little on our résumé, and tell one customer one
thing and another something else.
20
6.
For companies it is enough to simply have a vision and mission because people cannot
see whether their behavior is consistent with their vision and mission.
7.
Our flattened, hyper-connected world has limited previous modes of competitive
differentiation.
8.
Such qualities as trust, integrity and honesty are no longer the hard currency of
business success and the ultimate drivers of efficiency, productivity, and profitability.
9.
We all need to learn how to increase the sales volume of the company and build
customer loyalty.
3. Vocabulary
Word list
1. a backseat
незавидное, скромное положение
2. to thrive
благоденствовать, преуспевать, процветать
3. endeavor
предприятие; попытка;
4. to scatter
разбрасывать, рассыпать
5. to marvel
изумляться,
восхищаться
6. hunch
подозрение, предчувствие; интуиция
7. transaction costs
операционные издержки
8. to forge
ковать
9. mindset
(привычный) образ мыслей, тип мышления
10. leap
прыжок, скачок
11.to fib
выдумывать, привирать, придумывать
12. subpoena
вызов в суд, повестка о явке в суд (под
страхом наказания или штрафа в случае
неявки)
13. to peer into
заглянуть, посмотреть
14. suffice
быть достаточным, хватать
15. to flatten
выравнивать, разглаживать
16. to exert
оказывать давление; влиять
21
удивляться;
восторгаться,
Ex. 1. Discuss your word list, definitions and examples with your team members.
Ex. 2. Complete the sentences using active vocabulary.
1.
Connections can reduce supply-chain risk, enhance customer experience, help
executives____________________ greater influence over a highly decentralized global
workforce.
2.
Products and services remain vital, but they now take a _____________________ to
human connection.
3.
The author believes that the principle of ‘how we do’ applies to all levels of human
_____________________ and business interactions.
4.
Kottke downed his doughnut while ____________________ that all of the customers
who followed him either gave Ralph exact change or made their own change.
5.
It is easy to _______________________ the inner workings of a company today.
6.
For companies, simply having a vision and mission no longer
______________________ because people can see whether our behavior is consistent with
our vision and mission.
7.
But if we intend to _______________________, rather than merely survive, in the
21st century, we need to reframe our orientation.
8.
Moving from a "what" ________________________ to "how" one requires a major
shift in perspective.
9.
Ralph found a way to "outbehave" his competitors by using trust
to_____________________ a deeper connection with his customers.
5. Discussion and Team Work
Your group is given an opportunity to organize a business enterprise of the 21st century. Do
not forget that ‘how we do matters more than what we do’.
a) Select the company’s name. (A company name should inspire confidence and project a
professional image. Choose a name that you can be proud of.)
b) Develop the mission and the vision of the company.
c) Select your company product.

give the full description of your product,

name product’s two most important features, and

describe the people who are most likely to be interested in purchasing your product.
Present the results of your work in class.
HOME ASSIGNMENT: 1. Read the article “Hugging the tree-huggers”
22
2. Make up word list on topical vocabulary (word – translation- definition- example)
3. Write an answer (100 words) to the question “Why so many companies are suddenly
linking up with eco groups.”
4. Find ‘green ads’ and be ready to discuss their effectiveness.
Unit 5
Class work:
Thoughts to ponder:
 Acting locally can protect the global garden
 Environmentalism as a global issue
By Diane Brady MARCH 12, 2007
THE ENVIRONMENT
Hugging The Tree-Huggers
Why so many companies are suddenly linking up with eco groups. Hint: Smart business
When William K. Reilly was plotting the private equity takeover of Texas utility TXU Corp.
(TXU ), he foresaw one potential dealbreaker. It wasn't the money. The two main investors-Texas Pacific Group, where Reilly is senior adviser, and Kohlberg Kravis Roberts & Co.-wouldn't have any trouble financing the $45 billion deal. Nor was it about getting regulatory
approval. Instead, says Reilly, "we decided the walk-away issue for us was not getting
environmentalists’ support."
So Reilly called Fred Krupp, president of Environmental Defense, whose Texas attorney,
James D. Marston, had been waging an all-out war on TXU's plans to build 11 coal-fired
power plants. Krupp told Marston to hop on a plane to San Francisco for a top-secret meeting
with Reilly's team. "I ran home, got a suit, took the dog to a kennel, and told my wife I loved
her but couldn't tell her what it was about," says Marston.
The ensuing negotiations were often tense. Enviros referred to TXU's expansion plans as the
"Mein Kampf of the global warming wars." When Reilly heard that, he recalls telling his
colleagues: "'This will be harder than I thought." After a marathon 17 hours, Reilly ended up
giving Marston a big chunk of what he wanted: commitments by the new TXU owners to ax 8
of the 11 proposed plants and to join the call for mandatory national carbon emissions curbs.
Meanwhile, the corporate raiders got exactly what they craved: public praise from
Environmental Defense and the Natural Resources Defense Council (NRDC) for the deal.
23
Why was that so important? "We all swim in the same culture--and the culture is going
green," explains Reilly. Indeed, Americans find nongovernmental organizations, like green
groups, more credible than business, according to the Edelman Trust Barometer, an annual
survey. That's a switch from five years ago, and it gives activists additional clout. "Companies
have to be seen as responsible," says Karen Van Bergen, vice-president of McDonald's
Europe.
The TXU takeover is a sign of a remarkable evolution in the dynamic between corporate
executives and activists. Once fractious and antagonistic, it has moved toward
accommodation and even mutual dependence. Companies increasingly seek a "green"
imprimatur, while enviros view changes in how business operates as key to protecting the
planet.
Examples of this new relationship are as ubiquitous as Al Gore at the Academy Awards. WalMart Stores Inc. (WMT ) turned to Conservation International to help shape ambitious goals
to cut energy use, switch to renewable power, and sell millions of efficient fluorescent bulbs.
When the CEOs of 10 major U.S. corporations converged on Washington on Jan. 22 and
issued a call for mandatory carbon emissions limits, sitting with them at the table were Fred
Krupp and the president of the NRDC. And after Silicon Valley Toxics Coalition activists got
Dell Inc.'s (DELL ) attention by chaining themselves to computer monitors, they worked with
the computer maker on a groundbreaking recycling plan. "Companies have decided it is better
to invite us into the tent than have us outside picketing their keynote speeches," says Silicon
Valley Toxics Coalition founder Ted Smith. "It's a long way from where we started."
Twenty years ago, for instance, current Greenpeace International chief Gerd Leipold was
cruising the Rhine, taking action against corporate polluters. He and his comrades would
block pipes spewing effluents into the river and sometimes pump the waste back. Now he can
be found wearing a pinstripe suit, standing with CEOs, and heaping praise on companies he
sees as doing the right thing. "We've shifted from just pointing out the problems to pushing
for real solutions," says Leipold. "When congratulations are deserved, we offer them."
For companies, alliances with environmentalists can help both the bottom line and the public
image. "We used to see Greenpeace as the enemy," says DuPont CEO Charles O. Holliday Jr.
Now DuPont employs Paul Gilding, former head of Greenpeace International, as a paid
consultant, and the company ranks high on lists of green leaders. "We work with our
enemies,»
says
Holliday.
ACCUSED OF SELLING OUT
Of course, there are limits to this cooperation. Greenpeace is so anti-nuke that there is no
room for discussion with utilities pushing nuclear power plants. And collaboration can be a
24
tricky balancing act. Anthropologist and law professor John M. Conley at the University of
North Carolina at Chapel Hill believes that environmentalists' shift from accuser to partner
might co-opt and defang the activists. Even though the mainstream groups adamantly refuse
corporate money, they could lose their edge. "Would Silent Spring have come out of a
stakeholder dialogue?" Conley asks, referring to Rachel Carson's 1962 environmental opus.
Indeed, Greenpeace and others have been accused of selling out by some of their own
members. Leipold admits that it's often hard to tell if companies are using activists' support as
mere PR, or "greenwashing." But executives' original motives may not matter, he asserts.
Once a company commits to phasing out toxic fire retardants, as Dell has, or to slashing
energy use and greenhouse gas emissions, on the model of Dow Chemical Co. (DOW ), then
activists can hold them to the promises. Plus, Leipold notes, companies have hired
"sustainability" gurus to help them tackle social responsibility issues. "Even if the people who
employed them are cynical, I think [the gurus] are turning out to be a subversive element in
the companies," he says.
The green movement hasn't abandoned its swashbuckling tactics. Greenpeace's ship
Esperanza has been cruising the Southern Ocean, ready to put itself between whales and the
harpoons of Japanese whalers. But such tactics are often unnecessary. These days, the mere
threat of bad publicity can force business to change. Executives remember how Nike Inc.
(NKE ) took a beating over labor practices in the mid-1990s. "No one wants to be the next
Nike," says Smith of the Silicon Valley Toxics Coalition.
That gives activists new power. On the eve of the 2000 Sydney Olympics, sponsored by
Coca-Cola Co. (KO ), Greenpeace launched an e-mail campaign against the soft-drink giant.
The charge: using a potent greenhouse gas in its 9 million to 10 million coolers and vending
machines.
Coke responded quickly. "Our reputation is important to us. So rather than become defensive,
we asked what we could do," says Jeff Seabright, Coca-Cola's vice-president for environment
and water resources. Since then, Coke, PepsiCo (PEP ), Unilever, and McDonald's (MCD )
have spent $30 million developing a less damaging system, displayed at January's meeting of
the World Economic Forum in Davos with a "technology approved by Greenpeace" banner.
This image building has a bottom-line benefit. "Providing environmental value is becoming a
competitive
edge
for
business,"
explains
Seabright.
SWITCHING GEARS
Sometimes even the traditional tactics don't work. Greenpeace tried to save old-growth trees
in Alaska with a classic logging-road blockage. "It flopped," says John Passacantando,
director of Greenpeace USA. The local press was hostile; the national press was bored.
So the activists switched gears. They traced the path of downed trees and found that oldgrowth spruce ended up in musical instruments. A year ago, Greenpeace warned guitar
25
makers that the wood they need could disappear. "It sent shock waves through the industry,"
says activist Scott Paul. Executives trekked to Alaska and are working on a plan to set aside
land. "We are thankful they contacted us," says C.F. Martin & Co.'s Dick Boak: "It's great to
have Greenpeace as a partner and ally."
There are some corporate holdouts. Apple Inc. (AAPL ) is resisting Greenpeace's "green my
apple" campaign, which calls for more recycling and fewer toxic chemicals. "We disagree on
their criteria," says Apple's Steve Dowling. When the group targeted McDonald's Corp. and
KFC Corp. (YUM ) for using chickens fed with soybeans grown on deforested land in the
Amazon, McDonald's agreed to stop. But KFC (YUM ) refused to talk, denying that any of
their chickens ate Amazon soy.
Meanwhile, chemicalcompanies such as Dow know that the tree-huggers won't stop
criticizing them, no matter how much energy or how many greenhouse gas emissions they
reduce. "Our job is not to please or convince the activists," says Scott Noesen, Dow's director
of sustainable development. "The best we can do is set meaningful targets and report on our
successes and failures and dilemmas."
Still, Dow has given activists a seat at the table. In the old days, recalls Texas Pacific Group's
Reilly, former head of the Environmental Protection Agency, green activists were "banging
on the door trying to get into the room where decisions are made." Now, they're in the room
and hard to miss.
WORD LIST
§
2
3
word or phrase
to wage an all-out war
ensuing
Russian equivalent
вести полномасштабную войну
Последовавший
raider
4
clout
5
Dynamics
собиратель улик (человек, который работает в
организации с целью
сбора информации о
незаконной или ненадлежащей деятельности
организации)
способность оказывать нажим, способность
оказывать
давление;
влияние
(особ.
политическое)
Динамика развития отношений
Fractious
Imprimatur
ubiquitous
Groundbreaking
раздраженный, неуправляемый
одобрение, санкция
постоянно встречающийся
Инновационный, новаторский, революционный
6
26
7
8
to spew
effluents
bottom line
9
co-opt
defang
10
mainstream groups
Adamant refusal
edge
sell out
sustainability
(открывающий новые пути, начинающий новую
страницу)
изрыгать, выбрасывать
сточные воды
итог, итоговый результат,
например, чистая
прибыль или убыток
1) кооптировать 2) вбирать
в
себя;
ассимилировать
сделать
к-л
безобидным
или
неэффективным
Основные группы
Полное отрицание/отказ
преимущество; перевес
продаться
Способность продолжать ч-л, не причиняя
ущерба окружающей среде; устойчивость,
устойчивое развитие
Sustainability involves meeting the needs of the
present without compromising the ability of future
generations to meet their own needs, while taking
into account what is best for the people and the
environment
11
swashbuckling
Лихой, задиристый
14
flop
провалиться
16
holdout
Тот, кто уклоняется или отказывается от участия
в чем-то
Discuss your word list, definitions and examples with your team members.
I. Answer the following questions:
1. What examples of environmental problems can you think of?
2. What is meant by green corporate culture?
3. Companies increasingly seek a "green" imprimatur, while enviros view changes in how
business operates as key to protecting the planet. Comment.
4. In your opinion do companies use green activists’ support as a mere PR, or
‘greenwashing’?
5. What is the author’s attitude to the cooperation between the green activists and companies
managers?
27
6. What is your attitude to the activity of Greenpeace?
II. Work on the structure of the article. Single out the main ideas.
III. Discussion and team work
1. In teams discuss the summaries and formulate a thesis statement.
2. Discussion topics: Split into three teams. Prepare mini-presentations
Team 1: Environmental responsibility, often forced by law, has now worked its way into the
basic structure of many companies. Companies that have gone through a complete green
culture change can also reap golden profits.
Team 2: Potential risks for a company of being green.
Team 3: Being sustainable requires a long-term perspective.
IV. In teams brainstorm the topic ‘Greenness pays’. Formulate your thesis statement.
HOME ASSIGNMENT: 1. Write an introduction to the topic ‘Greenness pays’, using your
team’s thesis statement (50-60 words)
2. Read the article “A Green and Bumpy Road for CEOs” and write a thesis statement. How
do you understand the title?
3. Make up word list on topical vocabulary (word – translation- definition- example)
Unit 6
Class work:
Thoughts to ponder:
 The environment is not a cost but an investment
 Environmental damage occurs from extracting resources and from production
processes
 The average company will receive only the smallest “halo effect” from sincere efforts
to become more environmentally sensitive
The Strategist April 3, 2008
A Green and Bumpy Road for CEOs
By Kevin P. Coyne
With the increasing concern among Americans about global warming and climate change,
many chief executives are making "green" an element of their company's strategy, even going
28
as far as appointing a corporate officer to lead the company's efforts to embrace
environmental principles.
While these CEOs are to be commended for tackling a serious problem, they are inadvertently
setting these executives up for failure—if the appointments are not coupled with a realistic
understanding of how this issue will evolve over time. I can already see some rough spots in
the path ahead.
There will be no universal consensus on this issue.
First, global warming will not "arrive" one afternoon. There will be no sudden, compelling
evidence that convinces everyone. There will even be "pockets" of counterevidence to which
detractors can point. (For example, parts of Bulgaria just suffered through the coldest winter
in over a decade). So the debates will continue for the foreseeable future, with some arguing
that the change is not due to mankind, and others continuing to argue that the climate is not
actually changing at all.
Many of those who do believe global warming is a problem assign the issue relatively low
priority. According to several market research reports I've seen, only a small percentage of
consumers in the U.S. indicate that "green" is a critical factor in their choice among
competing brands for most products. Therefore, CEOs should be prepared to persevere
without widespread public support for a long time.
Sinners will pose as saints.
While there will be a few spectacular successes (such as Burt's Bees selling itself for $915
million), the average company will receive only the smallest "halo effect" from sincere efforts
to become more environmentally sensitive. Why? Because sincere companies will be
surrounded by charlatans falsely proclaiming their own virtue.
If this sounds cynical, ask yourself this: Which food company deserves a halo for combating
the obesity issue? After all, many companies offered "healthy" alternatives by substituting
well-known nutritionally suspect ingredients and recipes with less well-known, but equally
suspect, ingredients and/or recipes. (One such example: Nutri-Grain Pancakes, which brags
that they are made with whole wheat and whole grain but contain mostly white flour and high
fructose corn syrup, according to consumer watchdog Nutrition Action.) I cannot tell which
companies truly deserve to be commended for making changes and which ones have simply
played a nutritional shell game. Can you?
The same pretense has already begun in the environmental arena. Car companies are extolling
green SUVs (an idea that surely misses the larger point). Exxon (XOM), which has been
among the staunchest opponents of scientific findings on global warming, now runs ads
boasting of its (relatively minor) efforts to ameliorate the problem. Research by an
environmental marketing firm claims that of the 1,018 "green" advertised products it studied,
all but one fudged the definition of green in some way.
29
The media will not always be green's friend.
True, to date the media has been quite supportive of efforts to alleviate global warming.
However, high-profile media coverage of the issue has dropped off substantially since form
Vice-President Al Gore's Nobel Peace Prize award in 2007. Perhaps this is because of the
recession or the excitement of the Presidential election, or the importance of Britney Spears'
latest travails. In any case, CEOs must accept that the media will inevitably move on to the
next subject—just ask those still involved in cleaning up after Hurricane Katrina or those
trying to capture indicted Serbian General Ratko Mladic.
CEOs must be prepared for the media backlash against green. The initial coverage of a subject
always creates an expectation of huge breakthroughs in an unrealistic time frame. This is
always followed by a period of silence, which is then always succeeded by stories of
disappointments. CEOs must expect stories about how the "sacrifices" of consumers in
support of green are being thwarted by business interests.
The real solutions really do require government regulation.
U.S. CEOs instinctively hate the idea of government regulation. Unfortunately, a large-scale
study in 2007 by McKinsey&Co. showed that the problem can be solved only by the
collective action of dozens of industries acting across most of the countries of the world.
These include the obvious (e.g. nuclear power, renewable fuels) but also less obvious ones
(such as airplane efficiency, water heating efficiency, avoiding deforestation, etc.). And many
of those programs would place the participating companies or industries at competitive
disadvantages if others did not participate (or did so to a lesser degree). Therefore, it is a true
"tragedy of the commons" that can be addressed only through regulatory overlays.
CEOs must get past their anti-government instinct if they truly care about making progress.
And that means allowing their environmental officers to engage in the process of crafting
mutually acceptable solutions.
Does this sound bleak? It is not meant to be. The U.S. has made great progress in the past 24
months on accepting this issue and the need for change. Europe provides a model of even
greater public sentiment and commitment for the U.S. to follow. But real progress depends on
long-term commitment that will survive the inevitable short-run difficulties and setbacks.
Realistic expectations and emotional preparedness for bumps in the road are central to
maintaining that commitment—just as in the case of any other type of strategy.
WORD LIST
§
word or phrase
Russian equivalent
2
inadvertently
Неумышленно, нечаянно
commend
одобрять, хвалить
set someone up for something
подставить
30
3
detractor
инсинуатор, клеветник, очернитель, критик
4
persevere
упорно добиваться, стойко, упорно продолжать
5
virtue
преимущество, достоинство
brag
хвастаться, похваляться
watchdog
6
shell game
лицо или группа лиц, следящие за тем, чтобы
компании, фирмы и т.п. не совершали
противозаконных или безответственных действий
мошенничество, обман
7
pretense
притворство; обман
extol
восхвалять, превозносить, хвалить
SUV(Sport-utility vehicle)
внедорожник
staunch
стойкий, непреклонный, непоколебимый
ameliorate
улучшать
fudge
подделывать, фабриковать, фальсифицировать
alleviate
смягчать
high-profile
привлекающий внимание, заметный, выдающийся
backlash
мощная обратная реакция группы людей (обычно
негативная; на событие, закон, тенденцию
развития, которые устанавливают преимущества
для других групп людей)
а) мешать; расстраивать, разрушать (планы и т.п.)
б) препятствовать; преграждать
обращать внимание (на что-л.) , задумываться (о
чём-л.) , исследовать
унылый, гнетущий, безрадостный
8
9
thwart
10
address
11
bleak
commitment
обязательство (по отношению к чему-л.); активное,
ответственное
отношение
(к
чему-л.);
заинтересованность (в чём-л.)
Discuss your word list, definitions and examples with your team members.
Translate the following sentences using words from text and text
1. Раз уж адвокат согласился помогать нам бесплатно, не можем ли мы кооптировать
его в состав комитета?
2. Профсоюзный лидер продался хозяевам.
3. Девочку надо похвалить за храбрость, она спасла тонущего ребёнка.
4. Кто мне это все-таки подстроил?
31
5. Если ты будешь продолжать искать работу, обязательно найдешь что-нибудь
подходящее.
6. Наш бюджет имеет то достоинство, что он приносит небольшой доход.
7. Меня бесит то, как Билл хвастается своим новым автомобилем.
8. Мы должны обсудить пути улучшения ситуации.
9. Вы получите обратную реакцию - распространение сегрегации.
10. Если несчастный случай не помешает его развитию.
11. Пора, наконец, решать это вопросы.
I. Answer the following questions:
1. What obstacles can CEOs face trying to walk an environmentally sensitive line?
2. Is global warming a real issue? What do you know of it?
3. What do you know about the international treaty called Kyoto Protocol?
4. Sinners will pose as saints. What does the author mean? Do you agree? Could you think
of the examples that prove or disprove this statement?
5. What is the role of mass media in solving the environmental problems?
6. Could companies struggling to become environmentally friendly rely on the support of
consumers?
7. In what way can governments help these companies?
II. Work on the structure of the article.
statements.
Find topic sentences.
Discuss your thesis
III. Discussion and team work
1. In teams compile a list of possible problems a ‘green’ company may encounter. What are
the ways of solving these problems? Report to class.
2. Discussion topics:
A good business should be part of society, and you should lead by example. You have to have
pride in what you do. There is no pride in making millions of pounds, but there is pride in
helping people and the environment.
This century, environmentalism will be the most important issue for business.
32
IV. Role play. Split into three teams and role play negotiations between representatives of
Greenpeace and chief executives of the chemical company which plans to build a new plant in
your district. The economical and social situation in your area is very difficult: recession, high
rate of unemployment. On the other hand, the nature is very beautiful and clean. Try to find
common ground. Report the results.
HOME ASSIGNMENT: 1. Write an essay on one of two topics discussed in class (not more
than 100 words)
2. Read the issue “A blog? A flight attendant? And a firing”, write out topical vocabulary;
answer the question in the end. Write a newspaper article of 150-200 words
supporting/accusing Simonetti/Delta
Unit 7
Class work:
1. Discussion
Work in pairs. Discuss the following questions with your partner.
1.
What is corporate culture? What elements create a company culture?
2.
What is ‘irresponsible behavior’? Do you think it can ruin the career of a person and
image of a company?
2. Text and Text Assignments
Case Study July 15, 2008,
The Issue: A Blog, a Flight Attendant, and a Firing
When a Delta employee had a little fun on her personal Web diary, her career was forced to
make an emergency landing
The day Ellen Simonetti came home to her Austin (Tex.) condominium in September
2004 and checked her answering machine messages, she had no idea they'd change her life
dramatically. Simonetti, a Delta (DAL) flight attendant for nearly eight years, was getting
ready for one of her regularly assigned trips to Italy.
"They said: 'Please call. It's about your trip tomorrow,'" she recalls. Simonetti then
phoned a Delta international in-flight supervisor to find out what the problem was. "She said,
'You can't fly to Rome tomorrow.' When I asked why, she said, ‘You don't know? It's about
pictures on the Web,' And I felt like someone kicked me in the stomach."
The photographs, which launched a chain of events including Simonetti's dismissal,
subsequent appearances on The Today Show and Montel Williams, and a lawsuit against
Delta, appeared on the Journalspace.com blog she created in January 2004.
"I had just lost my mother in September of 2003," Simonetti explains. "It really hit me
hard, and I didn't know how to deal with it. So I heard about blogging and started to write
about being a flight attendant and the pain I was feeling. It was like therapy to me."
In the blog, first titled "Diary of a Flight Attendant" and later "Diary of a
Dysfunctional Flight Attendant" (and ultimately "Diary of a Grounded Flight Attendant" and
"Diary of a Human Being"), Simonetti referred to herself as "Queen of Sky" (and a few times
33
just as "Ellen") and mostly in the third person. The journal captured mundane events from her
day-to-day life such as:
Well, Queen of Sky is just having a BAD morning. The flight from Lima went O.K., but
there was a ground delay in Lima because the captain decided to change his routing at the
last minute. So they took off over half an hour late, around 1 a.m.
and
Well, Queen of Sky is going to relax now and maybe have a foot massage and then
have lunch before napping before the all-night flight back to Bustling Base City. Some of the
crew were going to the tailor today. Queen of Sky once again forgot to bring the things she
needs altered.
Although Simonetti never gave her last name or mentioned her employer's name (she
referred to it as Anonymous International Airline) in the blog, she was wearing a Delta
uniform in the photographs, which show her relaxing on a jet on the ground in between
flights. Except for one slightly racy shot that depicts her leaning over her seat with a patch of
her brassiere showing, the pictures are pretty much *G-rated.
Simonetti says she and another Delta flight attendant took the pictures just for fun.
One of them showed her friend posing inside an overhead cabinet. "We were on the ground
when the pictures were taken," she says. "We don't get paid until the door shuts and the plane
pushes back. So I wasn't on the clock when this happened. There was no policy against taking
pictures in uniform on a plane, and I still don't know of any policies against posting pictures
on the Web."
Nonetheless, her superiors were not amused, and even though Simonetti removed the
pictures from her blog right after the initial phone call, the airline sent her supervisor and a
human resources representative to speak to her, and suspended her without pay a week after
the meeting.
"I brought a friend with me to the meeting, but they said, 'No, he can't come with you.
This is between Delta people.' They asked, 'Do you have a Web site?' and 'Do you post
pictures of yourself on the Web site?' and what the name of my Web site was," Simonetti
says. She was also told the photographs were inappropriate. "They basically interrogated me
and forced me to write up statements. They made me feel like a criminal. I asked what they
meant by 'inappropriate' pictures. They said they'd get back to me."
Terminated for Inappropriate Behavior
During a phone call three weeks after the meeting, a Delta representative told her the
carrier was terminating her employment "based on inappropriate photographs in the Delta
uniform on the Web site." According to Simonetti, Delta never explained what made the
photos unacceptable or where in the employee manual it said that posting pictures in a Delta
uniform was forbidden.
Simonetti never learned how Delta stumbled upon her blog in the first place. "By the
time I was suspended, I was only getting 150 to 200 visitors a day," she says. "I felt very
comfortable with the blog, because 'nobody read it.' But when people would Google 'flight
attendant,' I guess it would come up."
34
In between the suspension and dismissal, Simonetti filed a sex discrimination claim
with the Equal Opportunity Employment Commission, which provided a "right to sue letter"
she could use in a lawsuit later. "I found pictures of male Delta flight attendants and pilots on
Match.com in their uniforms with particulars of their intimate lives listed. And some of them
even mentioned they worked for Delta," she says. Yet the airline apparently took no action
against them. Because Delta flight attendants don't have a union, she hired a private lawyer in
an attempt to get her job back.
Simonetti's suit against Delta is pending, and she was never able to get another job in
the airline industry, despite the media attention she received after the firing. (Her appearances
on TV and mentions of her in articles were usually sympathetic to her predicament.) She now
works selling real estate and is back in school, studying radio, TV, and film at the University
of Texas at Austin. However, she says she still misses her flight attendant job and her old coworkers and is upset about the blog episode.
The question remains: Did Delta take gratuitously drastic measures over a bunch
of silly pictures on the Web or was Simonetti guilty of irresponsible behavior that could
have harmed the carrier?
*G-Rated - suitable for all ages
Ex. 1 Skim through the text and answer the questions.
1.
What kind of information did Simonetti place on the Journalspace.com blog?
2.
Why did she do that?
3.
What was the reaction of Delta airlines on her photos?
4.
Why did Delta airlines terminate Simonetti’s employment?
5.
Why did Simonetti file a sex discrimination claim with the Equal Opportunity
Employment Commission?
6.
Did Simonetti win the suit against Delta?
Ex. 2 Read each statement carefully and decide whether it is true or false. If it is false, tell
why, or explain how the statement can be changed so that it will be true.
1.
As Delta flight attendants had the union, Simonetti was to hire a private lawyer in an
attempt to get her job back.
2.
Simonetti won the suit against Delta, and now she can get any job in the airline
industry.
3.
A Delta representative told SImonetti that the carrier was terminating her employment
"based on inappropriate photographs in the Delta uniform on the Web site."
4.
There was a policy in Delta airlines against taking pictures in uniform on a plane and
posting them on the Web.
5.
In the blog, first titled "Diary of a Flight Attendant" she referred to herself as Ellen
Simonetti.
6.
As soon as Simonetti removed the pictures from her blog, she was assigned to her
regular trip to Italy.
7.
Although Simonetti never gave her last name or mentioned her employer's name in the
blog, she was wearing a Delta uniform in the photographs.
35
3. Vocabulary
Word list
1. mundane
2. to alter
3. racy
4. to suspend
5. to get back to smb
6. to terminate
7. to stumble upon
8. pending
9. predicament
10. gratuitously
обычный, приземлённый
изменять; менять; видоизменять, вносить
изменения, переделывать
пикантный
(временно) прекращать
перезванивать
завершать
случайно найти, натолкнуться на (что-л.)
незаконченный, ожидающий решения
затруднительное положение
беспричинно,
необоснованно,
непростительно, неоправданно
Ex. 1. Discuss your word list, definitions and examples with your team members.
Ex. 2. Complete the sentences using active vocabulary.
1.
Even though Simonetti removed the pictures from her blog, the airlines
______________________ her without pay a week after the meeting.
2.
Delta airline took ________________________ drastic measures over a bunch of
silly pictures on the Web.
3.
Simonetti’s appearances on TV and mentions of her in articles were usually
sympathetic to her ___________________________.
4.
A Delta representative told her the carrier ________________________ her
employment "based on inappropriate photographs in the Delta uniform on the Web site."
5.
Simonetti’s journal captured _______________________ events from her day-today life.
6.
Simonetti's suit against Delta ________________________, and she was never
able to get another job in the airline industry, despite the media attention she received after
the firing.
7.
Simonetti never learned how Delta _______________________ her blog in the
first place.
5.
Discussion and Team Work
1. Assess the corporate culture in Delta airline using the questions below
1.
Is there consistency and clarity within Delta airline regarding the limits of acceptable
behavior?
2.
Do employees feel they have sufficient guidance on ethical behavior?
3.
Are standards and policies not only thorough and clearly written but are they also
regularly discussed? If such discussions do occur, are they perceived to be a priority and are
they positively received?
4.
Do employees talk among themselves about the limits of acceptable behavior?
36
Present the results of your assessment in class.
2. Answer the question: Did Delta take gratuitously drastic measures over a bunch of silly
pictures on the Web or was Simonetti guilty of irresponsible behavior that could have harmed
the carrier?
HOME ASSIGNMENT: 1. Read the article “The analysis: the airline overreacted”
2. Make up word list on topical vocabulary (word – translation- definition- example)
3. Write an answer (100 words) to the question: “Some ethical issues, such as security of
information and environmental issues are of greatest concern for many companies.
Unfortunately, only few of them have formal policies to deal with whistle-blowers
(employees violating ethical or legal principles of the organization they work for)”. Do they
need protection?
Unit 8
Class work:
Pre-text assignments:
1.
Scan through the first paragraph of the text “The analysis: the airline
overreacted” and comment on its title.
2.
In teams think of the way the situation might have developed and make up a
story based on your expectations.
Thoughts to ponder:
 Firms where employee morale is high tend to outperform competitors.
 A company’s code of ethics should cover both office hours and employees’ time off.
 How far do you agree with some companies’ attitude towards their employees? “We
pay you, now we are even…” That’s where most companies have gone today.
The Analysis: The Airline Overreacted
While she may have erred in judgment with her blog, a flight attendant didn't deserve
the turbulence that ensued
It's been four years since Delta fired flight attendant Ellen Simonetti for posting pictures of
herself in uniform on a company jet between flights. The carrier had somehow discovered the
photos on her blog, Diary of a Dysfunctional Flight Attendant, and dismissed her a few weeks
later.
37
For Simonetti, it was a personal disaster that left her saddened, confused, and jobless. In an email response to BusinessWeek.com's request, Delta, citing its former employee's pending
litigation against it, declined to comment on the case. Industry experts we spoke to seemed to
share the same opinion about the whole chain of events: Simonetti should have known better
than to depict herself goofing around in her uniform—a symbol of the airline's integrity—but
firing her because of it represented a bigger error in judgment on Delta's part.
"Airlines do have standards. An airline pilot in uniform can't drink at a bar even off-duty,"
says Scott Hamilton, a consultant to the airline industry who's based in Issaquah, Wash. "Was
it a dumb thing for her to appear in a flight attendant's uniform? Yes. Was it a firing situation?
No."
Both Hamilton and Bob Mann, who is president of airline consulting business R.W. Mann &
Co., thought the firing sounded more like the culmination of prior disciplinary warnings
rather than a reaction to one incident. "It seems like an overly aggressive response to a single
event," says Mann, who is based in Port Washington, N.Y. "It leads me to believe there may
have been prior warnings to get [the photos] off the blog." Simonetti, however, maintains she
had a solid record with no disciplinary actions during her eight years of employment with
Delta, and that she removed the photos as soon as she learned the airline disapproved of them.
One reason the problem may have occurred was that blogs were still in their infancy back in
2004. "Companies had policies for e-mail and corporate uniforms and speaking to the press at
the time this happened," says Robert Cox, president of the Media Bloggers Assn., based in
New Rochelle, N.Y. "I'm not aware there were any or many corporate policies about
blogging."
"Blogging is a new medium, and lot of people probably jumped into it without thinking it
through," says Dave Heller, an attorney with the Media Law Resource Center in New York. "I
think it would be best to enforce these things after a policy has been set up." (Heller suggests
that people thinking of starting a Web journal check out guidelines for blogging that were
formulated by the Electronic Frontier Foundation, a San Francisco group dedicated to
protecting free speech in the media.)
For Simonetti and Delta, the blog-photos incident caused stress and litigation. Many observers
feel the firing scandal embarrassed the airline more than the photos did. Most of the media
attention surrounding the case was sympathetic toward Simonetti. But what about any fliers
who may have seen the pictures in question?
"Airline passengers are not going to care one bit," says Kate Hanni, president of the Coalition
for Airline Passengers' Bill of Rights. "They have seen such a decline in service. They are far
more concerned with surviving a flight than a flight attendant's semi-sexy picture on a blog."
38
Likewise, Joe Brancatelli, the Cold Spring (N.Y.)-based editor of joesentme.com, a noncommercial Web site for business travelers, believes business fliers don't care what flight
attendants do in their time off. "But Delta is a strange company; it always has been," he says.
"It's old. It's the only non-union airline out there."
WORD LIST
§
word or phrase
Russian equivalent
1
to ensue
возникать в результате чего-либо, следовать
2
dysfunctional
не следующий обычным нормам социального
поведения, недееспособный
3
to post
выложить, разместить сообщение или документ в
Интернете
4
pending litigation
незаконченная тяжба
5
to goof around (informal)
валять дурака
6
overly
чрезмерно, слишком
7
a blog
oбновляемая
страничка
в
посвященная определенной теме
8
to err
ошибаться, заблуждаться
9
turbulence
бурная реакция
10
to be in one’s infancy
находиться на ранней стадии развития, в период
становления
11
to jump into smth
вскочить, впрыгнуть на ходу, быстро включиться
в какую-либо деятельность
Интернете,
Discuss your word list, definitions and examples with your team members.
I. Answer the following questions:
1. Why was the behavior of flight attendant Ellen Simonetti considered to be unethical by the
company?
2. What was the attitude of the society towards Delta’s reaction on its employee’s
misbehavior?
3. How far do you agree with Delta’s decision? Comment.
39
4. In your opinion did the company benefit from its policy?
5. Find in the text as many excuses as you can to justify Ms Simonetti’s misbehavior.
6. Which party will win that “pending litigation”? Give reasons for your expectations.
II. Work on the structure of the article. Single out the main ideas.
III. Discussion and team work
1. In teams discuss the summaries and formulate a thesis statement.
2. Discussion topics: Split into three teams. Prepare mini-presentations
Team 1: “Aggressive” style of management is admired in many companies. Think of pros
and cons of it.
Team 2: Code of ethics shows an organization’s attitude towards its employees.
Team 3: The ways to deal with whistle-blowers (employees who report ethical or legal
violations) within a company.
HOME ASSIGNMENT: 1. Read the article “The Issue: Immelt’s Unpopular Idea” and write
a thesis statement. How do you understand the title?
2. Make up word list on topical vocabulary (word – translation- definition- example)
Unit 9
Thoughts to ponder:

More companies now accept the concept of business ethics. Does it pay off?
Case Study March 4, 2008
The Issue: Immelt's Unpopular Idea
An environmental push has helped reduce GE's emissions and raise revenue. But when
CEO Jeffrey Immelt proposed "ecomagination" in 2004, top executives resisted
When it comes time for a business leader to make a tough judgment call, it's helpful to have
the consensus support of aides and top managers—but it's not essential. As Jeffrey Immelt
learned just three years into his tenure as chief executive of General Electric (GE), sometimes
the boss has to make unpopular decisions and expect his team to get in line.
During an annual strategic review meeting in 2004, the CEO was surprised to learn how many
business units of GE were pursuing environmental initiatives independent of one another. GE
Energy had just acquired AstroPower, the largest American-owned maker of solar panels. The
previous year, it picked up a wind turbine business from Enron. GE Water & Process
40
Technologies was formulating plans for the largest water desalination plant on the African
continent. GE factories overseas were dealing with new regulations on carbon dioxide
emissions. And nearer to the company's Manhattan offices, GE dollars were working to rid
the Hudson River of pollutants it dumped there decades ago.
It occurred to Immelt that all of these initiatives could be rolled up into a program of green
practices and technologies and pushed more aggressively. They also could be made more
effective if they had a common platform for communicating with one another, setting goals
and measuring performance against one another, and presenting a more unified marketing
message to customers.
An Eco-Scorecard
So he set to work building out this notion into a detailed plan he could sell to his team. He
spoke with the chief executives at 30 of the largest utility companies in the country, some of
GE's most important customers. He created an in-house team to study greenhouse legislation
and conduct customer surveys.
And he enlisted New York-based environmental consultant GreenOrder to help create and
audit green scorecards—a checklist for measuring the environmental impact of new products
developed in the company. "We're a numbers-oriented company, so we wanted to have real
metrics," Immelt says. He set both long-term goals for the company—growing its spending on
clean tech R&D to $1.5 billion in 2010, reducing its absolute greenhouse gas emissions by
1% before 2012, and generating $20 billion in revenue from green products—as well as shortterm targets. If and when his plan took effect, GreenOrder would also act as a third-party
auditor of the scorecard.
The campaign still needed one final touch: a marketable name. In ecomagination, Immelt
found a brand identity that emphasized new products and services, and a new, innovative
direction for the company.
Follow the Leader
In December, 2004, Immelt put his plan to a vote with the top 35 executives in the company.
The result: The strategy was shot down dead. "They resoundingly voted no," he recalls. "They
said, 'This is stupid.'" Only five or six people in the room went with Immelt on the idea; the
rest argued ecomagination would cost too much or that it would be undermined by GE's many
Superfund sites and other environmental issues that weren't so easy to fix. "I think some
people thought it was too soft. GE's an edgy company; this is a little bit of a soft initiative," he
says.
But where Immelt's salesmanship fell flat, his pedigree in hard-nosed GE management won
the day. He overrode the decision of his executive committee and told them to prepare for the
41
2005 launch of ecomagination. This was where the company was going, and his team had to
trust him.
"There's about five times a year with that group that I say, 'Hey guys, here's where we're
going, get in line.' If you did it six times, they would leave. And if you did it three times,
there'd be anarchy," Immelt says.
Immelt believes Jack Welch, his predecessor at GE, had to make a similar decision after
receiving little executive support for Six Sigma, an efficiency program the company has relied
on since the 1990s.
"We've got a good team that knows when to lead, and they also know when to follow, and
that's a real trick," Immelt says.
Since that fateful meeting, his decision to go forward with ecomagination despite his team's
objections has paid off. According to GreenOrder, GE is on track to reach its long-term
environmental goals. Thanks in part to the marketing of ecomagination initiatives, the value
of the GE brand has grown 16.9%, to $51.6 billion, according to brand consultancy
Interbrand. And Immelt estimates shareholders have benefited about 5¢ to 10¢ per share as of
2008.
§
word or phrase
Russian equivalent
1
to make a judgment call
Принимать решение, основанное на личном
мнении
2
tenure
Пребывание в должности, срок пребывания в
должности
3
to get in line
идти «в ногу», следовать тем же курсом
4
to dump
сбрасывать, сваливать мусор
5
to roll up into
объединить, сформировать
6
to enlist
привлечь
на
поддержкой
7
resoundingly
ошеломляюще, производя сенсацию
8
edgy
успешный,
прибыльный,
имеющий
преимущество перед другими компаниям
9
soft initiative
инициатива,
снижающая
прибыльность
компании, не подтвержденная экспериментально,
42
свою
сторону,
заручиться
неоправданная инициатива
9
to fall flat
не достичь предполагаемого
заинтересовать
результата,
10
pedigree
прошлые достижения, репутация
11
hard-nosed
целеустремленный, не подверженный эмоциям,
реалистичный
12
to override a decision
отменять, аннулировать, использовать власть и
авторитет, чтобы изменить чье-либо решение в
свою пользу, брать верх, перевешивать
13
to undermine
разрушать, наносить вред
Discuss your word list, definitions and examples with your team members.
I. Answer the following questions:
1. What made CEO Jeffrey Immelt make a tough judgment call?
2. Why did Mr. Immelt initiate the introduction of eco-scorecards?
3. Which difficulties did Mr. Immelt experience while launching “ecomagination” program?
4. What was the structure of his campaign?
5. Why did the opponents to the campaign consider it to be a soft initiative?
6. How did the campaign pay off?
7. Which personal qualities are required from a leader to get his subordinates in line?
2. Fill in the gaps using your active vocabulary:
1.
Founded in 1782, the school has an excellent __(background)________ .
2.
The EU commission exercised its power ______(to change_someone else’s
decision)_____ British policy.
3.
Being a ___(unemotional and determined to get what you want)________
businessman Mr. Red always attains his goals no matter how challenging they are.
4.
The constant criticism was beginning ___(gradually make smth less strong or
effective)____________ his confidence.
5.
Commercial Textiles service is an __(more successful and profitable than
others)_________________ company as it orders faster than many similar companies.
43
не
6.
After the battle the enemy troops were ____(completely)___________ defeated.
7.
He has__(persuaded to help you to do smth)____________ the help of a sports
psychologist for the team.
8.
The company managers decided to ___(unite)_____________various ethical issues
into Code of Ethics of the organization.
9.
The company has doubled in value during his __(the period of time when someone has
an important job)___________.
10.
The members of the Board are expected ____(to follow the same
policy)_______________ to increase the shareholders’ value despite the tough situation on
the market.
II. Work on the structure of the article. Single out the main ideas.
III. Discussion and team work
1. In teams discuss the summaries and formulate a thesis statement.
2. Discussion topics: Split into three teams. Prepare mini-presentations
Team 1: A leader should have some courage to take unpopular decisions.
Team 2: Personal and business traits of character required from a CEO.
Team 3: The role of a team in decision making process.
HOME ASSIGNMENT: 1. read the analysis of the case and write a summary of 150 words
2. Explain the title
3. Make up word list on topical vocabulary (word – translation- definition- example)
Unit 10
Thoughts to ponder:


It is important to remain focused on changing individual behaviour. After all, it
is individuals who make unethical decisions, not faceless, corporate bodies.
(John Plender and Avinash Persaud, writers)
Social responsibility is a value-added and not a purchasing decision
By Douglas MacMillan
The Analysis: In Immelt We Trust
44
GE's CEO was armed with reams of data to back his proposal for "ecomagination." But
only the trust he'd built with his team allowed him to override their objections
When a CEO has earned the trust and support of his team, he has more leeway to go against
majority opinion on big strategy calls. That's what General Electric (GE) Chief Executive
Jeffrey Immelt banked on in late 2004 when he went forward with his "ecomagination"
proposal despite the skepticism evinced by most of his senior executives and advisers,
according to Noel Tichy, a former head of GE's Leadership Center.
"Jeff has been very careful to build a trustworthy, aligned team around him," says Tichy, who
is now a professor of organizational behavior and human resource management at the
University of Michigan Business School and the author of Judgment: How Winning Leaders
Make Great Calls (Portfolio, 2007).
Cultivating a Base
Immelt began to form his base of support at GE as early as 1981, when he joined the
company. As he climbed through the ranks, he began to impress his leadership style on key
players. In 2001, Immelt was tapped by then-CEO Jack Welch as his successor, and Welch
helped to ease out his fellow top contenders, Jim McNerney and Bob Nardelli. "All too often
the politics of succession carries over into the new administration," points out Tichy. "Welch
made it clear to all three finalists that as soon as the winner was selected, [the] other two
needed to leave GE so as to politically free up the new CEO."
In 2004, Immelt was three years into his tenure as chairman and CEO and his support among
top executives within the company was stronger than ever. That would be vital in each of
what Tichy defines as the three phases of the judgment process ahead: preparation, alignment
of stakeholders, and execution.
After hitting on the idea of a companywide environmental initiative, Immelt set about
delegating preliminary steps to various teams within the company: researching greenhouse
legislation, conducting customer surveys, prototyping new products, formulating metrics,
drafting cross-company guidelines. And when GE's resources weren't sufficient, Immelt didn't
hesitate to bring in an outside consultant, GreenOrder.
Persuading a Reluctant Team
By December, Immelt was prepared for the next decisive, and difficult, step: aligning key
stakeholders. Immelt met with his top management team to outline his environmental
initiative, which was received negatively by a majority of the senior managers. Among the
criticisms leveled: that it was costly, hypocritical, and uncharacteristic of GE.
45
Immelt acknowledged the legitimacy of the concerns raised. But instead of backing down, he
drew on the trust he had earned from his team and made a call to go forward with the
initiative, which became known as "ecomagination." "He wouldn't have been able to do it if
he didn't already have the aligned people at the top of the organization," says Tichy.
What were Immelt's other options in the face of such strong opposition? "Some weak leaders
would back off and tell [the team] he would not go forward," acknowledges Tichy.
Alternatively, he says Immelt could have put the initiative on the back burner, hoping to win
support and allow the controversy to die down. Or he could have proceeded even more
confidently than he did—without acknowledging the criticism raised by his team. Any of
these tactics, says the management guru, "would have been an abdication of his role as the
leader charged with making the ultimate judgment calls for GE."
Following Through
A CEO can make such overrides from time to time, but Tichy warns that they have a limit: "If
he or she keeps making calls against the majority, even though you're the CEO of the
company you begin to undermine the people, alignment, and support."
When is the right time to pull rank? That depends. According to Tichy, Immelt is known to
solicit input from those around him before making a decision. But he's also earned a
reputation for trusting his instincts, as best articulated by the catchphrase used to describe him
in Leadership: "Boom, then I make the decision."
The final step of Immelt's judgment was execution. "Jeff understands that his job in the
judgment process is not only to make the call, but to make certain in the execution phase that
the [appropriate] adjustments are made, the learning happens, and that there's a payoff," says
Tichy.
Since GE is a company of many unique businesses, most adjustments rely on cooperation
among the heads of each business unit. This was one of the toughest parts of the execution
process, according to GE spokesperson Peter O'Toole: "Ecomagination had to enable our
business leaders to work better with their customers," O'Toole says. "It couldn't be an
'unfunded mandate' from corporate. So there had to be give-and-take with our top leaders to
ensure we were helping our customers."
WORD LIST
§
word or phrase
Russian equivalent
1
ream
обычно reams; большое количество, куча
2
leeway
свобода действий
46
3
5
8
evince
выказывать, проявлять; демонстрировать
bank on
полагаться на (кого-л. / что-л.)
tap
выбирать, избирать, назначать
ease out
Убрать к-л с поста (тихо, без скандала)
contender
соперник; претендент, кандидат
prototype
изготовлять опытный образец или прототип
metrics
исходные параметры, система показателей
on the back burner
на заднем плане; во вторую очередь
put the initiative on the back burner – отложить
10
abdication
отказ (от права, ответственности, территории)
pull rank
использовать служебное положение в личных
целях
Discuss your word list, definitions and examples with your team members.
I. Answer the following questions:
1. How do you understand the term "ecomagination"?
2. How did Immelt build his base of support?
3. What are the three phases of the judgment process?
4. What is understood under “preparation” phase?
5. How did Immelt gain the support of the stakeholders? Who are they?
6. Why was the execution process so difficult?
II. Discussion and team work
1. ‘Working directly with people is human engineering”
2. “At the end of the day you bet on people, not on strategies”
John P. Kotter. Harward Business School
3.
Work in pairs. Look at these ethical work problems and discuss how you
would respond to the three situations.
Situation 1: An accounting dilemma
47
You work in accounts. Whilst checking the company accounts one day, you discover that
your financial director has been claiming irregular expenses. Expenses include opera tickets,
two digital cameras and a laptop computer which you think he bought for his daughter. Some
of the expenses have already been paid to him, but not all. What would you do?
Situation 2: A generous present
One of your suppliers sends you an unexpected present of a case of 12 bottles of expensive
wine. The following week, they call you to ask if you have received the wine and whether the
company is going to renew their contract for the next year. You tell them the decision has not
been made yet, and they intimate that if you renewed their contract, they would give you more
presents, including a weekend away for two. You have already drunk three of the bottles
during family meals. What would you do?
Situation 3: Choosing tenders
Your company is going to build new offices in Algeria, and you are responsible for examining
tenders for all the contractors interesting in building the new office. The two best tenders are
of equal merit, and you were intending to recommend them both and let the Board of
Directors decide. This morning, over coffee with your managing director, he mentions that he
is very good friends with one of the two contractors on the shortlist and would be very
disappointed if they did not win the contract. What would you do?
48
Составители: Л.Б. Филиппова
М.С. Циликова
И.В. Авакумова
Составители: Л.Б. Филиппова
М.С. Циликова
И.В. Авакумова
Л.П. Тимошенко
Е.Е. Сидорова
О.В. Осипова
Т.Ю. Вепрецкая
Редактор Н.И. Золотина
Подписано в печать
Формат 60х84,1/16.бумага офсетная. Печать офсетная.
Усл. печ. л.
Уч.-изд.л.
5.
Тираж 300 экз.
Заказ. Бесплатно.
Издательство Российский экономический университет имени Г.В. Плеханова.
113054 Москва, Стремянный пер., 36.
Отпечатано в типографии РЭА имени Г.В.
Плеханова.
113054 Москва, ул.Зацепа, 41/4.
49