Transcript Responsible leadership - ResponsibleManager2012

ST 520 Responsible Management
Session 9
CSR and Leadership
Don Minday
1
Why should anyone
be led by you?
2
Agenda

Responsible leadership



Trends in leadership thought
Examples
Ray Anderson & Interface

CSR heroes

Break



Cultural debriefing
Course feedback
Exam information
3
Leadership is about
who you are,
not what you do.
4
Leadership can be
developed
5
What is leadership?
Your models?
6
Leadership
SKILLS
Technical
Interpersonal
TRAITS
Conceptual - strategy
Values
Political - persuasion
Personality: selfconfidence, locus of control
Self-awareness
KNOWLEDGE
Company, product,
industry, markets
Motivation
Energy
Optimism
Experience
Background
Didactic
Experiential
7
Prolific literature on leadership
2,000 books / year in the U.S. alone
8
Historical approaches to leadership
in organizations
Transactional
leadership
Transformational
leadership
Responsible leadership
Ethical
"
Servant
"
Authentic
"
Spiritual
"
9
Transactional Leadership
The ability to influence
and direct a group
towards the achievement
of its goals
Jack Welch
Former CEO of GE
10
Transformational Leaders

Charismatic
- motivate through inspiration
.

Effective in turnaround situations

Generate exceptional performance

Get media attention
11
Pierre-Louis Dreyfus
Former CEO of Adidas
12
Warren Bennis’ observed
qualities of leaders

Has a vision.

Communicates the vision

Perseveres in pursuit of the vision.


Want to lead, have high level of energy
Self-awareness:


Maximizes his/her strengths
Minimizes weakness, relies on team
13
Responsible leadership



A leader who gets "…superior sustainable results the
right way"
"…how you deliver results has a profound impact on the
long-term health of the enterprise."
"…fairness, honesty, a long and hard view." –
- John Wells, president of IMD Business School, Lausanne
14
Responsible leadership
(Pless and Mack, 2011)



Value-based and long-term leader-stakeholder
relationships (not leader-subordinate relationships)
Responsible leaders build "sustainable relationships with
stakeholders…to achieve mutually shared objectives
based on a vision of business as a force for good" to
achieve sustainable social change for the many
[common good] "and not just a few (shareholders,
managers). "
NOT an ego trip!
15
Ethical leadership
(Pless and Mack, 2011)


Leader as a positive role model who acts according to
value-based standards and uses principles of moral
reasoning in decisions
Focuses on the micro-level, the individual characteristics
of a leader, and not on the relationships and multi-level
outcomes which characterize responsible leadership.
16
Moral management
With respect to shareholders-customers-employees-community
Immoral
managers
Amoral
managers
Moral
managers
17
Moral management

Immoral managers




Amoral managers





Active negation of what is moral
Exploit opportunities for themselves and their company
Example: Top management of Enron before company's collapse
Insensitive to potential long-term consequences of their actions
Lack of ethical awareness
Believe business and morality don't mix
Ex: Leadership of Total after Erika oil spill
Moral managers




Ethics drive their behavior
Want to be profitable only if fairness & justice are respected
Obeying the law is the minimum, not the standard
Ex: CEO of Johnson & Johnson duringTylenol scandal
18
3 leadership concepts
Related to responsible leadership
Authentic
leadership
Servant
leadership
Spiritual
leadership
19
Servant leader

Others-centered: Focused on followers' success, not ego building

Participative

Leads by example

Humble




Self-critical, admits mistakes
Is a life-long learner
Gives credit to the team
Responsible leadership


Goes beyond the team
Serves the broader organizational purpose and focus, through stakeholder
relationships, on the broader needs of society
20
Servant leadership
Mike Tomlin


"He (Tony Dungy) tries to lead through service, and I do the same.
I learned that from him in providing the men what they need to be
great. Every day when I go to work, I don't think about things I
have to do, I think about the things I can do to make my men
successful. So I have a servant's mentality in terms of how I
approach my job, and I get that from Coach Dungy."
(Many leaders have a mentor)
Mike Tomlin, cited in Rhoden, W.,
"Steeler's Coach Takes a Quiet Route to
Brillance," NY Times 2 Feb. 2011
Tony Dungy
21
Authentic leaders

Influence, energize, and develop followers through:




Self awareness: deep understanding of values, emotions,
motives, goals, identity
Self-regulation: the ability to align values with intention and
actions. "Walk the talk"
Positive psychological state
Comparison to responsible leadership:


Both authentic and responsible leadership emphasize
organizational impacts.
Responsible leadership's emphasis on stakeholder relationships
takes it beyond organizational boundaries.
22
Spiritual leadership

Leaders who bring meaning in the workplace

How?


Motivating vision
Meaningful job









Skill variety
Task identity
Task significance
Autonomy
Feedback
Recognition
Empowerment
Focus on employee well-being
Not the strong external / stakeholder relationship focus
of responsible leadership.
23
Leadership gap in the financial sector


Focus on individual bonuses instead of overall good
of the company.
Too much individual decision making  companies
have asked business schools, to focus more on
team leadership.

Weak management skills: give little feedback,
expect long hours, destroy work-life balance

Lack of government oversight / regulation and
cooperation with competitors.
Jerome Kerviel, French trader
who lost 2.4 bn. € for the
Société Générale Bank
Source: "Eyes on the Wrong Prize: Leadership Lapses That Fueled Wall Street's Fall"
24
Developing responsible leaders

Can business schools contribute to the
development of responsible leaders?

GRLI Globally Responsible Leadership Initiative:



a worldwide network of companies and learning
institutions whose mission is to "develop a next
generation of responsible leaders"
works closely with the EFMD (European Foundation of
Management Development) and would like to "reframe
the purpose of management education."
What do you think?
Jerome Kerviel
25
Responsible leaders
Jeff Swartz,
CEO of Timberland
(video)
Joe Santana, head of operations at Mi
Rancho tortillas, California
26
Local examples
Grass roots initiatives in Le Méné (22)
27
Local examples
Vision: energy independence by 2030
Wind farm in Le Mené (22)
A retired engineer, Marc Théry
The mayor of St. Gouéno, Jacky Aignel
"Don't wait for national politics to act"
Révolution énergétique : les Bretons à la pointe
28
Terracycle
Trenton, New Jersey
Vision: Transform waste into useful products
Videos
 Garbage  worm food and other products
 Entrepreneurial convictions and persistence.
 How it's done
Tom Szaky, founder and CEO of Terracyle,
"built on garbage, run by a kid, loved by investors"
29
Ray Anderson of Interface
"Sustainability has been our
salvation"
"The worldwide leader in design, production and sales of environmentally-responsible
modular carpet for the commercial, institutional, and residential markets, and a leading
designer and manufacturer of commercial broadloom."
www.interfaceglobal.com
30
It started with a book…
"We've been screwing the planet for 20 years."
31
Interface
Ray Anderson's new responsible leadership

New vision: the end of "take-make-waste"

Used "Rational, emotional, and moral intelligence." See video on his
business case for responsibility.

Managed change:



Selling the vision to stakeholders
Passing ownership of vision to stakeholders - small innovations,
incremental changes "bottom-up"
Team building, training in process and product innovation

Competitors followed

"Seven fronts program": eliminate waste,…
32
Interface
Results: sustainability is good business






Decreased manufacturing costs
Decreased inventory
Decreased volume of waste sent to landfills
Reduced water and energy consumption
Reduced greenhouse gas emissions
Reduced petroleum-based raw materials consumption
So why don't more manufacturing companies "go green?"
33
Take away
The responsible leader's "right way"


Long-term stakeholder relationships for the common
good
Practices stewardship






Develops resources – human, natural, financial capital – entrusted
to him /her
Serves the organization and team, not self
Takes into account ethics in decision making
Demonstrates integrity and character
Is an example and inspires through authenticity 
consistent in values and actions – walks the talk
Seeks to bring meaning to the work.
34
"I'm not a leader"
Do you want
to be?
What are you
doing to
develop
yourself?
35
Your CSR heroes ?
36