Good Corporate Citizen

Last week… –Agent of change GCC fosters innovation, masters the market, but in ways that are aware of societal trends and issues (such as telecommuting, w/l) Change is Planned, integrated and responsive. GCC is neither exploitive nor opportunistic. –Socio-moral development

Gilligan v Kohlberg Care v Justice Morality as… Web of relationships CareHarmony Responsibility for self and others Non-violence Sanctity of individual FairnessReciprocity Rights of self and others justice

Gilligan v Kohlberg Care v Justice The dilemma as… Threats to harmony and relationships Conflicting rights

Gilligan v Kohlberg Care v Justice The self as… CommittedMemberfeelingImpartialAutonomousobjective

Gilligan v Kohlberg Care v Justice Sense-making by… ExperientialInductivecontextualFormal/logicalDeductiveuniversalistic

Ethics Programs and the GCC Explicit development and implementation of strategic policies, programs, and positions for managing ethical issues and achieving a positive reputation for the firm or public sector organization Issue of governance, reputation and strategic issues What is genuine?

Involves… Codes of ethics Ombudspersons Ethics officers Harassment coordinators Hotlines Ethics committees Social/environmental audits Stakeholder-balanced boards Ethics training …

HOW TO ETHICALLY AUDIT A CORPORATION

GENERAL AREAS TO AUDIT: i) INCOME ii) SECURITY AND STABILITY OF WORKFORCE -training/retraining iii) WORKPLACE CONDITIONS -heat, light, food, aesthetics, access for disabled iv) JOB CONTENT -satisfaction, challenge, variety

GENERAL AREAS TO AUDIT: v) HEALTH & SAFETY v) HEALTH & SAFETY -incidence of injury/disease -protection *vi) MANAGEMENT STYLE -transparent/cooperative vii) NON-WORK OPPORTUNITIES

viii) AIDS POLICY *ix) CORPORATE CITIZENSHIP *x) ENVIRONMENT -AIR, WATER QUALITY -NOISE-PACKAGING -WASTE DISPOSAL *xi) CUSTOMERS -FULL DISCLOSURE -TASTEFUL ADS -RELIABLE WARRANTIES xii) MILITARY: - *xiii) GENDER/RACE ISSUES

Moral Leadership View A: The game of business “within the game to win… leaders must be willing, as agents of the organization, to engage in opportunistic behaviour– to buy low and sell high, to selectively and skillfully extract and divulge information, to build allies and to broker deals with a constant, if not penetrating eye on the bottom line… the leader is the individual skilled at directing the organization to victory over its competitors… they do and say what is required…moral qualms are seen as weaknesses, taking a step or two out of a leader’s quick ability react…. They are agents for the firm, for its stockholders and members– not for society at large.” p21

View B: What’s “wrong” with view A Prescribes a view of how to run a business most efficiently, not how actually run. Poor management to let others set your agenda for you (as in regulation) Adapting to change means being moral pioneers Why not “extract rents” from being a moral leader and setting industry standards?

Herman Miller: What we believe in… making a meaningful contribution to our customers cultivating community, participation & people development creating economic value for shareholders & employee owners responding to change through design & innovation living with integrity & respecting the environment

Exxon We pledge to be a good corporate citizen in all the places we operate and to be a responsible member of the human community. We will maintain the highest ethical standards and are dedicated to running safe and environmentally responsible operations.