climate change and social responsibility a reality check dr james bellini 20 april 2008
TRANSCRIPT
Climate Change and Climate Change and Social Responsibility Social Responsibility A Reality Check
Dr James Bellini 20 April 2008
CSR DefinedCSR Defined
CSR is about corporate behaviour
That behaviour includes:◦What you do or say◦What you do not do or say
CSR is not only about climate change
It’s All In The MindIt’s All In The Mind
The successful companies of the future will base their strategies on a healthy corporate psyche founded on clarity, integrity and authenticity
The New ScarcitiesThe New Scarcities
Time
Attention
Trust
‘The pressure to deceive is felt everywhere in business and deceptions are ethically justifiable … departing from the strict truth and thegolden rule is part of the strategy of business.’
Albert Z Carr Is Business Bluffing Ethical?
Harvard Business Review
Building The Company ‘Trust Bank’Building The Company ‘Trust Bank’
What ‘Trust’ Is NotWhat ‘Trust’ Is Not
Familiarity
Heritage
Low cost
Local
Availability
Who trusts whom?Who trusts whom?
0
10
20
30
40
50
60
70
80
90
100
Doctors Businessleaders
Journalists Govtministers
trusted to tell truth - % of sample
MORI
Future ConditionalFuture ConditionalBlueprint for Tomorrow?
The Millennials’ AgendaThe Millennials’ Agenda
Authentic companies
Courageous leaders
Sustainable future
Millennium PollMillennium Poll
Public opinion on the changing role of companies
25,000 citizens worldwide
Most important corporate values by rank:1. Social responsibilities
2. Brand quality / reputation
3. Financial success
The World in 2032The World in 2032%
Oil famine
Climate change impact
Key Issues
Future Leaders Survey 2007
The New AgendaThe New Agenda
86% agree material consumption must reduce
66% think 4x4s should be banned from city centres
41% support personal carbon quotas
Future Leaders Survey 2007 - 08
‘This world cannot continue to function the way it is if we wish to live out the next hundred years.
Not only do both government and the individual’s perspectives on the environment need to change, but also the way we relate to each other’
Camilla van Klinken, 18, Netherlands
Future Leaders Survey 2007- 08
‘There is no trade-off between economic growth and responding to climate change. Either we do something about it, or all our growth will go to waste when climate change begins to wreak havoc with markets, international relations and the world in general…’
Matt Bardley, 18, Cardiff University Future Leaders Survey
Corporate DenialCorporate DenialCasebook
‘The national science academies of the G8 nations and Brazil, China and India, three of the largest emitters of greenhouse gases in the developing world, have signed a statement on the global response to climate change...and call on world leaders to ... acknowledge that the threat of climate change is clear and increasing’
June 2005
Case Study in DenialCase Study in Denial
“We in ExxonMobil do not believe that the science required to establish this linkage between fossil fuels and warming has been demonstrated”
Lee Raymond Chairman/CEO ExxonMobil
2002
‘In September 2006, the Royal Society wrote to ExxonMobil to express concern that some of its corporate publications were presenting a misleading view of the scientific evidence about climate change
The Society raised concerns about Exxon's position on climate change and the company's funding of lobby groups that misrepresented the science
Although we have exchanged further letters with ExxonMobil, it has still not addressed this issue’
Royal Society press release
EXXON VALDEZEXXON VALDEZ
Good Friday 1989
1100 miles Alaskan coastline affected
Clean-up bill $3.5bn + private lawsuits
Two years after 70% believed still polluted
34th largest spill in history - not large but effects on reputation critical
Case Study in DenialCase Study in Denial
Alaska Oil Spill: “An Act of God”
ExxonMobil management
Case Study in DenialCase Study in Denial
“The presence of nicotine does not make cigarettes a drug or smoking an addiction”
Q: “Does smoking cause lung cancer?A: “I do not know.”
On oath before Congress 1994:
The Badvertising Backlash
A Crisis of TrustA Crisis of TrustThe 21st Century Corporate Agenda
Dishonesty PandemicDishonesty Pandemic
EnronWorldComTycoQwestGlobal CrossingArthur Andersen...........
Dishonesty PandemicDishonesty Pandemic
HIH -- $4 billionParmalat -- €10 billionAhold -- €500 millionMannesmann – six
execs tried for
‘breach of trust’
over €57 million bonuses
Multiple scandals in Japan
THE MAP OF CORPORATE MISCONDUCT
10 of the 15 biggest bankruptcies in history have occurred since 2001
All have been driven by massive corporate dishonesty
Corporation n.
artificial person created by charter; an entity unto itself under the law.
‘The corporation’s legally defined mandate is to pursue, relentlessly and without exception, its own self-interest, regardless of the often harmless consequences it might cause to others.’
You are here
Traditional ‘Mistrust’ Model
Virtual Trust-based ModelVirtual Trust-based Model
TASK
Contingent specialist
Knowledge broker
Customer
The Company – A Living OrganismThe Company – A Living Organism
A company has ‘psychological verities’Corporate psyche can be analysedPsyche can develop dysfunctionsDysfunctions block clarityLack of clarity
◦ imperils psychological contract◦ threatens corporate survival
Doing Business in 2020Doing Business in 2020
The successful organisation of 2020 will have no HQ, no CEO, own no IT and
will have one-tenth the fixed assets it has today
It’s most vital competitive resource will be the authenticity and trust it has built
with its stakeholders
CSR – A Progress ReportCSR – A Progress Report
Legal and compliance
Strategic philanthropy
Value-based self regulation
Efficiency
Growth platformCSR Value Curve
IBM Institute for Business Value
The Future Company?The Future Company?
HYPER-ORGANISATION
‘Win’
Strip out unnecessary Ps◦ Positions◦ Processes◦ Purchases◦ People
Order workplace lives to match corporate goals
The Future Company?The Future Company?
HYPER-ORGANISATION
‘Win’
Strip out unnecessary Ps◦ Positions◦ Processes◦ Purchases◦ People
Order workplace lives to match corporate goals
DISORGANISATION
Align with personal values
Mirror individual identities
Flatten hierarchies
Integrate workplace lives with non-work goals
Lost OpportunityLost Opportunity%
% engaged in CSR activities
IBM Institute for Business Value
Exploring Corporate Exploring Corporate PsychePsycheWhat drives corporate behaviour?
A New Psychological ContractA New Psychological Contract
We are moving from the Industrial Ageto the Connected Age
Business needs a new mentalmodel of how to engage inrelationships with its stakeholders
Trust and truthfulness are key
‘The central theme of The Bullshit Factor is that organisations and people inhabit the same psychological universe and that, like people, organisations can have psychological issues.
These issues are manifested in patterns of behaviour that reflect levels of ‘untruthfulness’, misperceptions, delusions or some other deceit.’
The Bullshit Factor p 171
What Makes A ‘Healthy’ What Makes A ‘Healthy’ Psyche?Psyche?
Objective perception of realityNaturalness; simplicity;
spontaneityEmpathy for humanityDemocratic characteristics
Goodbye Gordon Gekko Goodbye Gordon Gekko A New Business EthosA New Business Ethos
Healthy CorporationCivilised WorkplaceNice Company‘No-jerks rule’“Our people are hired and fired for
attitude” SouthWest Airlines
Companies On The CouchCompanies On The Couch
Case Study in ArroganceCase Study in Arrogance
[ Caught with their pants down?]
Case Study in ArroganceCase Study in Arrogance
Food Is Survival
Portrait in Courage: GE’s Jack WelchPortrait in Courage: GE’s Jack Welch
Routinely fired worst-performing 10 per cent
‘Neutron Jack’
100,000 jobs disappeared during his tenure
Portrait in Courage: GE’s Jack WelchPortrait in Courage: GE’s Jack Welch
Took GE in 20 years from $26.8 bn to $130 bn
Company share price rose 4000 %
‘I want bosses to have more candour, less bullshit’
Semco: A ‘Maverick Semco: A ‘Maverick Corporation’Corporation’
KEY PRINCIPLES
Be dependable and reliable Value honesty and transparency above all Encourage creativity; support the bold Question decisions imposed from the top Pleasant and informal environment No dress code; voluntary meetings; mandatory vacations Employees set hours and wages, choose IT
Principled Leaders – A ChecklistPrincipled Leaders – A Checklist
Personal humility, not egoAmbitious for organisation, not
themselvesDefend beliefs with courageNurture core values – ‘integrity’ Hire people of right character
Elements of CourageElements of Courage
Consumers, employees, leaders◦ New consumer equation / precision markets
◦ Optimum talent mix
◦ Metanoia for business decision-makers
Virtuous circle in the workplace◦ Clarity, honesty, integrity
◦ End to ‘workplace schizophrenia’
◦ Principled leaders
Climate Change and Climate Change and Social Responsibility Social Responsibility A Reality Check
Dr James Bellini 20 April 2008
19 September 2007 | Slide 56
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