Creating Cultures for Better Business Andy Corley Managing Director, Quadralene Sally Hibbert Professor of Consumer Behaviour

Defining Impacts & Priorities for Better Business Establish scope/boundaries of assessment (e.g. geographic, business unit) Map impacts within the control of the company against value chain Select indicators & collect data Define priorities

The route to better business? 81% Fortune 500 companies & all FTSE 100 companies report on corporate sustainability Increasingly aligned with corporate strategy & evidence that adoption of sustainability perf. measurement  social & environmental performance Does it produce a compliance mindset? What is the ethical culture within the business? (i.e., what are the criteria/focus of ethical reasoning)

Moral reasoning in business Commonly called… Moral orientation Relevant stakeholders Amoral (self-interested culture) Managerial egoism Follows rules to avoid punishment None Limited morality (instrumentalist culture) Enlightened self-interest Conforms to expectations/ fulfils duties Shareholders & ‘useful’ others Broader morality (moralist culture) Moral purism Follows justice principles, creative shared-value solutions All primary & secondary stakeholders

Successful corporate cultures are linked to strong core values about how to treat employees, customers, suppliers, and others —that is, stakeholders (Barney, 1986: 656). Why?

e.g. Employees Amoral (self-interested culture) Commonly called… Moral orientation Employee behaviour Amoral (self-interested culture) Managerial egoism Follows rules to avoid punishment Task accomplishment Limited morality (instrumentalist culture) Enlightened self-interest Conforms to expectations/ fulfils duties Work group collaboration Broader morality (moralist culture) Moral purism Follows justice principles, creative shared-value solutions Empowered employees, full participation

The future of work? (PwC 2014)

The future of work? (PwC 2014) Companies care: Green world Companies seek like-minded individuals Talent is attracted to company values & culture Firms focus upon total reward, incl. performance & citizenship behaviours

The future of work? (PwC 2014) Small is beautiful: Orange world Connect to suppliers of key skills via technology; contract specific tasks Talent attracted by firm’s reputation in skills networks Contract based pay for projects is the norm

Where is your business on the ‘moral reasoning continuum’? What does it mean for these relationships? What are the implications for the business?

B What? How? A I

Culture eats strategy for breakfast Peter Drucker

Hedgehog Concept What you are What drives your economic engine deeply passionate about What you can be the best in the world at From ‘Good to Great’ J. Collins et al

Inattention to Results Avoidance of Accountability Lack of Commitment Fear of Conflict Absence of Trust The five dysfunctions of a team – Patrick Lencioni