Eoi ebbf - csr in sme (3)
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CSR in SMEs - part 3 IMSD April 2011 PROFESSOR Daniel Truran
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This is the third of ebbf's three lessons given during the International Management for CSR and Sustainability MASTER course.The specific topic of this ebbf course is that of CSR in Small and Medium Enterprises.Here we showed the pace of innovation that is demanding a new way of doing business.The inspiration of ebbf members in their way of doing business or of gathering leadership lessons from recent events such as the ones in Egypt.Three ways of defining core values in a company: ebbf member Paolo Russo's way forward for a code of ethics, Denise Cumella's Lush manifesto etc.Asking the key question of the purpose of work that drives a totally new way of seeing the way we do business.The case study of Rüdiger Fox and how important and not so easy it is to stick to your values in difficult times.How to influence (and not be influenced) by the environment that we can affect.And finally the important of communicating in a way that is connected not only to what the customer wants to hear but most importantly with the values of the people working in the company and of the company itself.
Transcript of Eoi ebbf - csr in sme (3)
CSR in SMEs - part 3
IMSD
April 2011
PROFESSORDaniel Truran
ebbf.org / Daniel Truran www.eoi.es
World and way of doing business is changing fast
www.ebbf.org
New business models
Apple’s Apps
www.ebbf.org
Google Introduced...
...free software
ebbf.org / Daniel Truran www.eoi.eshttp://www.seats2meet.com/
...free spaces
to help poorer start-ups
www.ebbf.org
e.g. cement innovation on motorway building in mobile places
things change quickly even in the cement industry
ebbf.org / Daniel Truran www.eoi.es
StructureFlow of Communication
From Uni-Minded
To Pluri-MindedBeppe RobiatiCEO Scac
ebbf.org / Daniel Truran www.eoi.es
Gruppo Scac
ebbf.org / Daniel Truran www.eoi.es
http://www.lmmiller.com/blog/2011/02/12/general/five-leadership-lessons-from-tahrir-square/
ebbf.org / Daniel Truran www.eoi.es
Mubarak maintained every form of control he could imagine over his opposition and his people. But the corollary to this absolute control is that this creates a closed system, one that failed to process feedback from its environment and this led to the ultimate instability.
internal / external environment
Improvement comes from the feedback loops and the process of adaptation from these environments.
The more successful, secure or dominant the organism (person, company or country) the higher the wall grows between it and it’s environment.
ebbf.org / Daniel Truran www.eoi.es
Those in power tend to believe that their followers will be lost without their guidance and control. Tahrir Square over the past weeks has been an incredible demonstration of the power of “self-organization.” The protesters entered Tahrir Square with no apparent leader, no organization, and no assigned responsibilities. But, given a common purpose, they organized themselves. They formed organization and took responsibility for checking those who entered the square to assure they weren’t carrying weapons. They organized sanitation. They organized medical services. They organized security and protection within the square...
The power of self-organization is present in every organization. It is too often dismissed as a chaotic disruption to the formal lines of authority. Those who are “on-the-spot,” whether in a factory, a school, or on the streets, when empowered to solve problems most often have the capacity to self-organize. Social media, or networked intelligence, is an enabler of self-organization.
Within companies we need to encourage the power of self-organization rather than fear its disruption.
ebbf.org / Daniel Truran www.eoi.es
The demonstrators had been joyously celebrating what they believed would be his final resignation. They were horribly disappointed. Not only did he not resign, but his speech talked down to his “children” in the most condescending tone. He appeared not to understand that it was families, doctors, lawyers, workers, as well as students who had taken to Tahrir Square to protest his rule.
Leaders lead by creating a sense of shared purpose, shared values and common vision that can inspire their followers. Leader’s never motivate followers by talking down to them, by expressing their own self-importance. Leaders lead by expressing empathy and creating bonds of unity with their followers.
To the degree that you fail at this task, you fail as a leader.
ebbf.org / Daniel Truran www.eoi.es
The Egyptian revolution was in the making for thirty years. But, the power of Facebook, as Google executive Wael Ghonim has explained, enabled fifty to a hundred thousand Egyptians to collaborate instantaneously and form a consensus to action. The power of the Internet has never been demonstrated more clearly.
http://online.wsj.com/article/SB10001424052748703989504576127621712695188.html
Every organization survives by its ability to adapt to change in the external environment.
The ability to hear, to sense, to respond and adapt to changes taking place, only to be seen on the Internet, will determine your ability to survive the next tipping point in your marketplace.
ebbf.org / Daniel Truran www.eoi.es
Never underestimate the power of purpose to unite people in a common pursuit. No single group could have succeeded in this revolution. It was the power to unite diverse people in common purpose that tore down the walls of dictatorial authority.
That power is latent in every organization if leaders would only call upon it.
ebbf.org / Daniel Truran www.eoi.es
“CSR” drives success
“…significantly boost our company’s performance during the next five years.
How? Foremost, we look to inspire our employees’ hope in the future, to fill them with a sense of progress and advancement in their careers as well as their personal lives.
How we treat and teach our employees and the sense of respect and fairness our company projects, will instill the loyalty, motivation and positive thinking our team needs to accomplish our goals.”
Fasha Mahjoor - CEO of Phenomenex
ebbf.org / Daniel Truran www.eoi.es
Different methodologies in stating and clarifying company values and thus creating alignment ...
... alignment around what?
the importance of clearly stating core values
ebbf.org / Daniel Truran www.eoi.es
Proposal for a code of ethics
Paolo Russo
ebbf.org / Daniel Truran www.eoi.es
Strengthening through code of ethics
“Our Code of Ethics aims to be a set of principles that remarks both the identity of the organization and the values
that inspire the day by day activities of the whole group.
This code aims to be a promise of integrity for all the stakeholders that will interact with our company,
demonstrating an extraordinary commitment to work along a profound sense of ethical business practices.”
ebbf.org / Daniel Truran www.eoi.es
Benefits of code of ethics
“- to define accepted/acceptable behaviors;
- to promote high standards of practice;
- to provide a benchmark for the other members of our network
- to empower people and stimulate their motivation
- to establish a framework for professional behavior and responsibilities;
- to increase the awareness of each employees by involving them into the process;
- This code will represent an additional advantage towards our competitors considering that intangible capital and reputation are the main assets of a
consultancy/advisory firm firm.”
ebbf.org / Daniel Truran www.eoi.es
Steps towards a code of ethics“1. Understand the purposeThe main question is: what is our purpose/objective by creating this code?
2. Review your identitySpend time to understand your identity and your mission as organization. The code of ethics comes from a deep
comprehension of the role of the company into the business community.
3. Find out what bothers peopleCopying a code from another organization will not suffice. It is important to find out on what topics employees require guidance, to be clear what issues are of concern
to stakeholders and what issues are material to your business activities, locations and sector.
MAKE A QUESTIONNAIRE TO YOUR EMPLOYEES and learn which kind of organization they would like to work for.
4. Collect the inputs and put into the frameworkAfter the questionnaire and perhaps after discussions with the employees, it will be the time to insert all the
relevant information into the framework that you have already prepared. A good way is to match the view of
the top managers of the firm with the needs and ideas coming from the other employees.
5. ReviewPlan a process of regular reviews that will take account of changing business environments, strategy, stakeholder concerns and social expectations, new standards, and strengths and weakness in your ethical performance.”
ebbf.org / Daniel Truran www.eoi.es
Flow towards a code of ethics
Collect the ideas
Stake holders input and proposals. (Questionnaire)
Put the ideas into the
framework
Values, hopes, ambitions and objectives of the leadership board
Results coming from the
questionnaire to the employees
Define the Code of Ethics
ebbf.org / Daniel Truran www.eoi.es
Values’ Inspiration Wall
Work – Life balance Social responsibility in business
Partnership of women and Value based leadershipmen in all fields of work
Sustainable development Meritocracy & Integrity
Integrity and commitment Opportunity & Training
Positive consultation Client oriented
ebbf.org / Daniel Truran www.eoi.es
Positive Exampleslet’s be as good or as better
than the “big” ones
ebbf.org / Daniel Truran www.eoi.es
COMPANY MANIFESTO
is another way to state what the company and people working there stand for
ebbf.org / Daniel Truran www.eoi.es
Company “manifesto”: we believe...
ebbf.org / Daniel Truran www.eoi.es
“Another kind” of Manifesto The Generation M ManifestoUmair Haque (Harvard Business Review)
Ethical production. Innovation turns a blind eye to ethics — or, worse, actively denies ethics. That's a natural result of putting entrepreneurship above all. Buy low, sell high, create value. That's so 20th century. Awesome stuff is produced ethically — in fact, without an ethical component, awesomeness isn't possible. Starbucks is shifting to Fair Trade coffee beans, for example. Why? Starbucks isn't just trying to innovate yet another flavour of sugar-water: it's trying to gain awesomeness.
Love. You know what's funny about walking into an Apple Store? The people working there care. They don't just "work at the Apple store" — they love Apple. Contrast that with the alienating, soul-crushing experience of trying to buy something at Best Buy — where salespeople attack you out of greed
http://blogs.hbr.org/haque/2009/07/today_in_capitalism_20_1.html
ebbf.org / Daniel Truran www.eoi.es
Our philosophy
Our roadmap for the futureAt CEVA we have a clearly defined vision for our business. Our goal is to be the most admired company in the supply chain industry by exemplifying Unity, Growth and Excellence in everything we do.
To keep us focused on achieving this vision we are creating a strong and integrated business with people at its very heart. To achieve this we have developed a series of values and brand imperatives which help us all act in a way that will steer us on the path to meet our vision of becoming the most admired.
http://www.cevalogistics.com/en/aboutus/OurStrategy/Pages/default.aspx
Website Statements
ebbf.org / Daniel Truran www.eoi.eshttp://www.cevalogistics.com/en/aboutus/OurStrategy/Pages/default.aspx
Website Statements
Which one do you like most?
Which one is most effective in buildinga values-driven = successful company?
ebbf.org / Daniel Truran www.eoi.es
We are looking at ways to differentiate our SME and purpose is definitely a strong way.
ebbf.org / Daniel Truran www.eoi.es
What is the purpose of work ?
ebbf.org / Daniel Truran www.eoi.es
but how can I act on a purpose, specially if it is an ambitious purpose?
ebbf.org / Daniel Truran www.eoi.es
ebbf’s vision statement
we contribute to a prosperous, sustainable and just civilization by promoting and applying ethical values, personal virtues and moral leadership in business and civil society.
How on earth do I align THAT kind of purpose to my daily working life?
I’m not building only.I’m building a new civilization.
Mary, 35. Architect.She choosed to use eco-materials only.
22
Steve Hall
I’m not baking only.I’m building a new civilization.
Paul, 42. Baker.He buys raw materials from Fair Trade only.
23
I’m not just selling drugs.I’m building a new civilization.
Ann, 30. Pharmacist.She educates her clients about naturalhealthcare.
24
July August ’09
I’m not teaching maths only.I’m building a new civilization.
Jennifer, 45. Professor.She started conversations with her students about etichs in science.
25
ebbf.org / Daniel Truran www.eoi.es
Personal Purpose
http://www.youtube.com/user/BarrettValuesCentre#p/u/25/cnwKEkWYug0
ebbf.org / Daniel Truran www.eoi.es
Do you bring - yourself - to work?
Mobile phone at home or at work
to become more successful
creating more succesful organizations
know your values to become stronger more aligned and coherent
instead of work life balance enjoy a life balance
ebbf.org / Daniel Truran www.eoi.es
The “values game”
A post-it of “values” that you stick on the back of your “colleagues”
Has anyone at work highlighted or even mentioned the values you or your colleagues have?
How did you feel reading these values?
the values of a leader, the core values of a company ... how can we talk “values” at work?
Rüdiger Fox ... ten years ago in 2001
ebbf.org / Daniel Truran www.eoi.es
Easy to remain faithful one’s values?
Easier to stick to your principles
by Strenghtening Your Sphere
fast growth
competitiverivalry
stock-marketexpectations
peer-group thinking
Does this environment fit you?You have a choice
&Your people have a choice
ebbf.org / Daniel Truran www.eoi.es
Passive - be influenced by othersor active - influencing others?
fast growth
competitiverivalry
stock-marketexpectations
peer-group thinking
ebbf.org / Daniel Truran www.eoi.es
"my first and current job is to create contracts with hotels, restaurants and all stakeholders present in the tourism sector. From my first day at work I always tried to be honest and transparent with my suppliers whilst of course always trying to achieve the financial goals of my company. Even though combining the two was sometimes a challenge, in the end I was rewarded in both areas!
This happened not so long ago when the manager of a large Italian hotel chain decided to confirm a big contract with us, taking away share from our competitors, he justified his decision by saying:
“Just” live your values
Giada Dall’O
“in times of economic crisis such as the ones we are living now, knowing that you can trust the people that you work with is fundamental”
ebbf.org / Daniel Truran www.eoi.es
How much influence can I have?Relationship between an individual and ... the world
We are all shaped by:- the environment, the outer circles, the society we live in, our culture, our family and education are the conditions of our lives
The whole World
Country
Community
Family
The whole World
Stake holders
Company
Department
At the same time, we also influence it. - One deed, even one gesture, word or facial expression can have a tremendous effect on others. A manager’s department reflects own values
EBBF / Daniel Truran
Your assignment for Friday
Identify an SME that has applied CSR (diverse world coverage)
describe what motivated the company to CSR
describe area of action
describe success it brought about
1 A4 page - 3 min presentation - website
email to : [email protected]@learning.eoi.es
IMSD / CSR in SMEs
Concept of - Campaigns -
time definite
ebbf.org / Daniel Truran www.eoi.es
Communicating Purpose
BASFWill there be coherence or is it “just” a marketing exercise?
PersonalValues
CompanyValues
SocietyValues
CompanyMarketing
ebbf.org / Daniel Truran www.eoi.es
ebbf.org / Daniel Truran www.eoi.es
A - sincere - sense of positive purpose...
... always brings success
