EOI IMSD - dtruran ebbf - CSR in SMEs part 2
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www.eoi.es CSR in SMEs - part 2 IMSD / CSR in SMEs PROFESSOR daniel truran - @dtruran - [email protected]
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In this second of three lessons dedicated to CSR in Small and Medium Enterprise we: - saw the importance of starting any CSR effort with your employees - the key to aligning - making - AND - delivering - the promise
at all stakeholder levels: creating purpose and finding shared values - the POWER of values (shared values) in creating desired behaviours Warby Parker (internally and for investors), Lush (giving it all for the company), Altran (saving lives) - other new ways of implementing CSR in SMEs in the social, economic and environmental areas = people, planet, profit:
softonics - best small company to work for - video - who is and what are the characteristics of your ideal, values-based leader? - exploring a new leadership for the 21st century: the new female leadership
Transcript of EOI IMSD - dtruran ebbf - CSR in SMEs part 2
www.eoi.es
CSR in SMEs - part 2
IMSD / CSR in SMEs
PROFESSOR daniel truran - @dtruran - [email protected]
ebbf.org / Daniel Truran www.eoi.es
In the last class we ...
introduced SMEs, new kinds of SMEs, specific traits of SMEs and their new “local” environment !what is and what can be the impact of SMEs (positive and negative) !what drives SMEs to be responsible (passive and active drivers) !introduced the “love brand” and new purchasing patterns - advocacy !three examples of CSR application, specially useful in times of crisis (Warby Parker, Young Italian Industrialist pen cases, Giada Dall’O) !role play and other examples of stakeholder dialogue in an SME
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.esebbf.org / Daniel Truran www.eoi.es
what can you expect from this course?
(last Wednesday) Traditional and new definitions of SMEs and its key success drivers
(Today) Creating and measuring values alignment in SMEs New Leadership styles enabling CSR in SMEs (Wednesday 23rd April) What works and what doesn’t applying CSR in SMEsOur personal area of influence in creating change in SMEs
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
why do you think that employees should be the first focus point of CSR in SMEs ?
EnterpriseEnterpriseEnterprise
Sh
are
ho
lders
EmployeesCustomers
EnvironmentC
om
mu
nit
iesSuppliers
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
“love brand” & advocacy
positive advocacy
making the promise delivering the promise
creating emotional engagement
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
Employees Culture Values Behaviours
Company Culture Values Behaviours
Owners’ priorities and values
Company Marketingmaking the promise
delivering the promise
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
Employees Culture Values Behaviours
Company Culture Values Behaviours
Owners’ priorities and values
Company Marketing
making the promise delivering the promise=
walk into a shop / make a phone call
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
Employees Culture Values Behaviours
Company Culture Values Behaviours
Owners’ priorities and values
Company Marketing
making the promise delivering the promise≠
ebbf.org / Daniel Truran www.eoi.es
So how do we create coherence in values, principles and behaviours in an SME?
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
PURPOSE
VALUES
IMPORTANT
SHARED values
ebbf.org / Daniel Truran www.eoi.es
just to be clear - what do we mean by “values” ?Live Our Values - Our values serve as a compass for our actions and
describe how we behave in the world. !Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
http://warbyparker.com ‘s core values
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
how does Warby Parker create coherence around its values?
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
Warby Parker’s way of applying its values: do good ... to their suppliershttp://www.warbyparker.com/tv
making stakeholders feel part of the company
ebbf.org / Daniel Truran www.eoi.es
Our unconscious part of mind and personality
Values !!made evident by visible
Behaviours
IMSD / CSR in SMEs
MAKING the promise
DELIVERING the promise
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
You see behaviours
They derive from a person’s values, mental models, mind, personality
IMSD / CSR in SMEs
what is one of your “core” values?
which of your behaviours reflects this core value?
ebbf.org / Daniel Truran www.eoi.es
SOFT or HARD values? What creates success?
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
The way work is usually thought about. . .
A B• Objectives, budgets, systems, wire diagrams, benchmarks, etc.
• Flow charts, tracking systems and progress reports used to ensure success.
• ‘The hard stuff’.
Step 1 Step 2 Step 3 Step 4
As Is State
To Be State
John Scherer - scherercenter.com
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
Meanwhile, a crucial piece of reality is omitted. . .
‘The Hard Stuff’
BTo Be State
AAs Is State
Below the Waterline
The Human WorldJohn Scherer - scherercenter.com
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
So how do we bring everyone “there” and really present?
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
PURPOSE
SHARED VALUES
examples of SMEs with
ebbf.org / Daniel Truran www.eoi.es
!
!
www.lush.comIMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
ebbf.org / Daniel Truran www.eoi.es
1 lorry load of shampoo bars would be enough for 800,000 washes but it would take 15 lorry loads of liquid shampoo to do the same job!
But it’s not just the actual plastic packaging that we need to think about.
Compared to bottled liquid products, which are full of water and are heavy, bulky, and inefficient - our naked products are concentrated, weigh less and are easy to transport. Just look at the environmental impact of delivering these to shops:
With solid shampoo bars you save on the environmental cost of producing and disposing of plastic packaging AND reduce the pollution caused by transporting heavy and uneconomical packaged goods!
And now we’ve said it, there’s no taking it back! there, we’ve said it.
(unpackaged) products. We believe that when it comes to reducing our impact on the environment, reducing packaging should be high on everyone’s list of priorities.Just take a look at this: So already that’s 3 less empty bottles to get rid of!
1 Lush Shampoo Bar ( ) lasts as long as…
3 bottles ( ) of liquid shampoo
At Lush our goal is to make our products as effective, fun and luscious as possible, whilst making sure that they are kind to animals and the environment.That’s why we have always loved to fill our shops with whole ranges of ‘naked’
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
194. its the best place in the world to work, not the easiest but definitely the best. Its an honest company with high ethics and I am proud to tell people what I do for a living.
180. Lush stands for everything I stand for, not many companys does that! I can proudly talk about the products and fell god about it! I never pretend to like the products, I really dolove them! :)
170. Because it values what I value and it has a good time doing it.. Not only has my awareness of natural ingredients and synthetics increased it has changed other aspects of my life and I seem to have changed the way I eat shop, buy clothing ect.. Thanks Lush!
189. it has positive impact on world (directly cosmetic) indirect global consciousness. Leading edge in ideas and care for the nature and the people
ebbf.org / Daniel Truran www.eoi.es
Personal Values
Company Values
Nothing happens in isolation It is not “just” about our personal values but their interaction with other entities we live with
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
Personal Values
Company Values
“love brand” zone
Society Values
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
Who do you trust most?
IMSD / CSR in SMEs
http://www.ipsos-mori.com/researchpublications/researcharchive/poll.aspx?oItemId=15&view=wide
ebbf.org / Daniel Truran www.eoi.es
The sense of purpose !Lush was set up: !- for the owners to produce stuff they liked - to influence - to make a profit !
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
example of wider influencehttp://www.youtube.com/watch?v=H5LOHSTcuwI
ebbf.org / Daniel Truran www.eoi.es
challenging conversations are not only allowed but encouraged: !Ethics Officer - 4 x 4 vs bicycle !Employ Activists
IMSD / CSR in SMEs
at Lush
ebbf.org / Daniel Truran www.eoi.es
EBBF Presentation : J.Patterson : Sept.19, 2008
coherence between values and behavioursCorporate
ValuesOrganization
Practices Success Habits Taboos
1.We value respect for the individual
▲Structured and objective accountability ▲Recognition of whole person, work-life balance ▲Career growth and growth opportunities based on capability
▲Respect others opinions and perspectives ▲Listening for understanding ▲Punctuality
▲Discrimination or personal attack based on personal prejudices / sex / race / age ▲Destructive gossip and rumour-mongering ▲Lack of / Delays in 2.We value our
ability to create and exceed high client expectations
▲Walk away from business if it is not in the best interest of the client ▲Commitment to customer communication ▲Documented client
▲Learn client’s business ▲Constantly seek new ways to deliver value to clients ▲Operate from the clients perspective
▲“No problem” when there is one / Hiding bad news ▲By-passing laid out processes and standards ▲Sharing confidential information3.We value
honesty, integrity, and open and caring communication
▲Regular forums for decision making, resolving issues and thinking through future company development. ▲Organization-wide communication on priorities, performance
▲Speak from the perspective of the listener ▲Talk directly to those concerned about any subject or matter of concern ▲Give regular and
▲Not dealing with people who do not perform ▲Not speaking up in meetings ▲Saying one thing and doing another
see here interview with CEO of KANBAY: http://ebbf.org/ebbforg/john_patterson.html
ebbf.org / Daniel Truran www.eoi.es
How can core values be made to “stick” in people’s minds and behaviours?
Bonus Schemes - show what is important !Reporting should reflect these “success habits” and “the taboos”
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
PURPOSE
SHARED VALUES
even higher purposes ...
ebbf.org / Daniel Truran www.eoi.es
"...a global enterprise that allows individuals to their double objective !
!
!!Bahá'í International Community’s Contribution to the 18th Session of the United Nations Commission on Sustainable Development - 2010
fully develop their potentialities
and contribute to improving the wider community”
Visions and broader Objectives
ebbf.org / Daniel Truran www.eoi.es
Purpose makes you successful drives motivation, engagement, “love”
you enter the board meeting of a sparkling drinks company:
Be world leader in sales
Quench the world’s thirst
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
Wikipedia’s 13 million articles are all written and maintained by the crowd.
another example of purpose driving success
ebbf.org / Daniel Truran www.eoi.es
Wikipedia’s 13 million articles are all written and maintained by the crowd.
FOR FREE !!!
ebbf.org / Daniel Truran www.eoi.es
purpose, meaningful purpose, shared purpose,
is what will drive people and stakeholders, making yours, a highly successful organization
If you want to build a boat, do not instruct the men to saw wood, stitch the sails, prepare the tools and organize the work, but make them long for setting sail and travel to distant lands. Antoine De Saint-Exupéry
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
What are you producing? engineer’s answer an infrared breaking system made up of ... highest quality ...
Altran engineers’ new answer: a new system that saves lives
the issue: an over 30% of turnover of high end talented engineers
enter Rüdiger Fox - CEO
reduced in one year to under 20% of turnover
HOW ?
ebbf.org / Daniel Truran www.eoi.es
now think and create a “new” purpose for your SME
what new products and services would serve that new purpose?
choose a real SME
create a meaningful purpose
deliver that promise
ebbf.org / Daniel Truran www.eoi.es
In what broad areas can CSR be applied in an SME ?
social !environmental !economic
IMSD / CSR in SMEs
people !planet !profit
ebbf.org / Daniel Truran www.eoi.es
Softonics.com Best Spanish Place to work winner 2009
what are some CSR practices in this company?
http://www.youtube.com/watch?v=l7Ql2F4rU5Y
ebbf.org / Daniel Truran www.eoi.es
> Working conditions: QOL (quality of life) !> Work-life balance !> Health and Safety !> Labor practices !> Skill development !> Community involvement
How to apply CSR in SMEs - social (people)
small cleaning company from Lyon paying for its employees to learn to read and write !higher productivity levels and greater client satisfaction because its employees are more motivated and enjoy more self-respect
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
> Waste reduction > Pollution avoidance > Recycling !> Reducing materials, energy, water !> Lower packaging costs !> Certification
How to apply CSR in SMEs - environmental (planet)
a group of Maltese hotels that are built to minimise their impact on the island's environment and its natural resources. !helping to safeguard the very future of the tourism industry on which it depends.
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
> Responsible supply chain management !> Product safety !> Ethical advertising !> Cause-related marketing !> Quality !> Fair pricing
How to apply CSR in SMEs - economic (profit)
small video production company from rural Wales that makes a point of recording and creating videos for its local community !helping to regenerate the social and economic fabric of an isolated rural area
IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
With so much to choose from, how do you choose priority actions?
ebbf.org / Daniel Truran www.eoi.es
IMSD / CSR in SMEs
How to identify areas of action
Stakeholder’s Interest
Com
pany
’s In
fluen
ce
particularly relevant to SMEs limited
capabilities
ebbf.org / Daniel Truran
Add 3rd element: relevance to company’s area of competence.
IMSD / CSR in SMEs
Stakeholder’s Interest
Com
pany
’s In
fluen
ce
e.g. High Tech company offering courses to stakeholderse.g. Food production company offering sustainable packaging
ebbf.org / Daniel Truran www.eoi.es
Personal Company
Shared Area / Love brand
Society
Shared purpose and values creating love
ebbf.org / Daniel Truran
What kind of leadership is required for successful CSR in SMEs ?
IMSD / CSR in SMEs
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ebbf.org / Daniel Truran
Who is the world leader of all times that inspires you most?
IMSD / CSR in SMEs
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ebbf.org / Daniel Truran
Everyone’s favourite leader / leadership
IMSD / CSR in SMEs
www.eoi.es
Ghandi Madre Teresa di CalcuttaMartin Luther King jr.Nelson Mandela
“Religion is one of the most important forces in the world. Whether you are a Christian, a Muslim, a Buddhist,
a Jew, or a Hindu, religion is a great force, and it can help one have command of one's own morality, one's own
behavior, and one's own attitude.”
ebbf.org / Daniel Truran
Everyone’s favourite leader / leadership
IMSD / CSR in SMEs
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Ghandi Madre Teresa di CalcuttaMartin Luther King jr.Nelson Mandela
What are the characteristics of a
Values Based Leader ?
http://www.youtube.com/ebbfvideo
http://www.youtube.com/watch?v=8xS06NYqNW8this specific interview:
more similar interviews:
ebbf.org / Daniel Truran www.eoi.es
Values Based Leader
Leads by example !Creates right environment for the people working there
Top Down ValuesIMSD / CSR in SMEs
leadership decides “we will make sustainability a priority”
ebbf.org / Daniel Truran www.eoi.es
‘The Hard Stuff’
BTo Be State
AAs Is State
Below the Waterline
The Human WorldJohn Scherer - scherercenter.com
ebbf.org / Daniel Truran www.eoi.es
“If top level decisions don’t take into consideration how to achieve them, with important collaboration from the doers lower in the organization, shared understanding and engagement of ideas is forfeited. Moreover, the doers in the organization are often unprepared to execute, because they were not involved in the formulation of the decision”
http://www.hci.org/lib/chief-answers-leader-co-creators-0
ebbf.org / Daniel Truran www.eoi.es
To motivate AND make change happen: Values -up
Allow all stakeholders values to surface: What is important to you? THEY then create solutions and policy and own it “why don’t we make sustainability a priority and start by recycling,
finding more sustainable energy sources ...”
ebbf.org / Daniel Truran www.eoi.es
Values Based Leader
Or you can - revolutionize - your company
Meet Rüdiger Fox (again) !when he was CEO of PFW Aerospace
ebbf.org / Daniel Truran www.eoi.es
Re-thinking the purpose of your company
ebbf.org / Daniel Truran www.eoi.es
Re-thinking the purpose of your company
ebbf.org / Daniel Truran www.eoi.es
Indicators reflecting purpose
ebbf.org / Daniel Truran www.eoi.es
From Gross National Happiness Index to Gross Workplace Happiness index
ebbf.org / Daniel Truran www.eoi.es
Values based KPIs
ebbf.org / Daniel Truran
Female Leadership, why is it becoming a major asset?
IMSD / CSR in SMEs
www.eoi.es
EBBF / Daniel Truran
Our work environment is changing fast
“We operate in a radically interdependent, increasingly transparent, tightly hyperconnected, brutally hypercompetitive, and viciously volatile world.
IMSD / CSR in SMEs
http://blogs.hbr.org/haque/2009/09/is_your_business_innovative_or.html
Umair Haque, on Harvard Business Review http://blogs.hbr.org/haque/
$ €
doing good useful to society
“Traditional” Enterprise
doing well
the doing good doing well shift of companies
where would you place the “traditional” enterprise?
$ €
doing good useful to society
doing well
2. the doing good doing well shift of companies
“Traditional” Enterprise
EBBF / Daniel Truran
Pace of change is increasing
IMSD / CSR in SMEs
governance revolution in ... days!
nuclear emergency and renewable discourse
oil prices fluctuations
ebbf.org / Daniel Truran www.eoi.es
We are walking into uncharted, uncertain territory and looking for a direction that will allow us to navigate it successfully
EBBF / Daniel Truran
Increased stakeholder engagement
IMSD / CSR in SMEs
More stakeholders !With their needs and priorities changing !More engagement and empathy required !Who can dialogue better?
ebbf.org / Daniel Truran
Female leadership’s - “invisibility”
Invisibility that aggregates Creates Team Creates a wish to co-create Creates space Creates harmony More sensitive to issues Even knows how to bring “love” into the office
IMSD / CSR in SMEs
ebbf.org / Daniel Truran
Female leadership’s - “invisibility”
IMSD / CSR in SMEs
Female qualities (traits) Male qualities (traits)
Affectionate DominantAppreciative Achievement-orientedEmotional ActiveFriendly AmbitiousSympathetic CoarseMild ForcefulPleasant AggressiveSensitive Self-confidentSentimental RationalWarm ToughWhiny Unemotional
taking care taking charge
David Schneider, The Psychology of Stereotyping (New York: Guilford Press, 2005)
ebbf.org / Daniel Truran
Female leadership’s - “team spirit”
IMSD / CSR in SMEs
male / female Facebook Profiles
ebbf.org / Daniel Truran
Female leadership for this timeIMSD / CSR in SMEs
The world in the past has been ruled by force, and man has dominated over woman by reason of his more forceful and aggressive qualities both of body and mind. But the balance is already shifting; force is losing its dominance, and mental alertness, intuition, and the spiritual qualities of love and service, in which woman is strong, are gaining ascendancy. Hence the new age will be an age less masculine and more permeated with the feminine ideals, or, to speak more exactly, will be an age in which the masculine and feminine elements of civilization will be more evenly balanced. (J. E. Esslemont, “Bahá’u’lláh and the New Era”)
http://www.newsweek.com/2010/07/06/women-will-rule-the-world.html
01/30/10
ebbf membership
Team Founders Hub Madrid
ebbf.org / Daniel Truran www.eoi.es
CSR in SMEs: It all boils down
Common Shared Purpose
Leaders who can implement values
A structure and reporting (next lesson)
vision
ebbf.org / Daniel Truran www.eoi.es
CSR in SMEs: It all boils down implementing a vision
We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.
What did Martin Luther King say?
I have a nightmare?
ebbf.org / Daniel Truran www.eoi.es
We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.
ebbf.org / Daniel Truran www.eoi.es
We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.
I HAVE A PLAN
