17 July 2004 ISBEE 3rd World Congress 1 Governance, trust and sustainability Australian Catholic University Centre for Research into Ethics and Decision-making in Organisations

17 July 2004 ISBEE 3rd World Congress 2 The workshop Work in progress A monthly meeting of academics, business people and consultants Exploring common interest in philosophy and its practical application Work in progress A monthly meeting of academics, business people and consultants Exploring common interest in philosophy and its practical application forum A story - Penrith Lakes Structure of governance Introduction In 4 parts: 1.30 pm pm John Little Ian Stainton Stephen Ames Tom Daly Rick Hayes Sean McNelis Jamie Pearce

17 July 2004 ISBEE 3rd World Congress 3 Governance foundations of trust A dynamic structure for human flourishing

17 July 2004 ISBEE 3rd World Congress 4 Why governance? Some recent crises National Australia Bank Telstra HIH insurance Enron Arthur Andersen Victorian Police Iraq - treatment of prisoners Not just a question of having ethical codes, legal systems, infrastructure or commitment of senior people; but ultimately of having “good” character, on the ground. Attributed to: Distrust between directors Independence of advice Profit obsession Lack of transparency / accountability Political pressure Corrupt organisational culture…. This workshop explores what this might mean Where the actions of one or a few can destroy much and many

17 July 2004 ISBEE 3rd World Congress 5 Our structure of governance - with the person at the centre… The Ground Achievement shared “The Good” Choice The Person Trust

17 July 2004 ISBEE 3rd World Congress 6 …and from the centre of the person (wonder) arise questions Questions are powerful - as: indicators of openness initiators of change the basis of control and coordination - and of progress and development the ground from which we develop ourselves a way to correct bias and illusion Questions: the key to our structure Yet questions may be : overlooked ignored not asked suppressed not heard Yet questions may be : overlooked ignored not asked suppressed not heard Hence, questions can be: a source of inner tension, as bias and illusion may dominate choice Hence, questions can be: a source of inner tension, as bias and illusion may dominate choice

17 July 2004 ISBEE 3rd World Congress 7 If questions are the key….some questions about questions How might we get hold of the key? How many questions can we ask? How might we classify questions? What sort of questions are there? Where do questions come from? Why are questions not asked?

17 July 2004 ISBEE 3rd World Congress 8 Short answer Long answer Who?, what?, When?, where?.. Why?, how? Is it? Will I? explanation yes, no ………data ….. (maybe) be attentive be intelligent be reasonable be responsible Questions ………. classified by the sorts of answers they seek be open and driving choice

17 July 2004 ISBEE 3rd World Congress 9 Our story of Penrith Lakes places a key person at the centre… The Ground Achievements shared The Good The Person responsible reasonable intelligent attentive open and a range of products from cooperating

17 July 2004 ISBEE 3rd World Congress 10 Penrith Lakes as told by Ian Stainton AM

17 July 2004 ISBEE 3rd World Congress 11 THE PLACE A SAND AND GRAVEL DEPOSIT IN A DEPOSITIONAL RIVER FLOOD PLAIN 36,000 YEARS OLD. IN WESTERN SYDNEY AT THE FOOT OF THE WORLD HERITAGE LISTED BLUE MOUNTAINS. ON THE SHORES OF THE NEPEAN RIVER IN THE MAJOR HAWKESBURY NEPEAN WATER CATCHMENT.

17 July 2004 ISBEE 3rd World Congress 12 PENRITH LAKES SCHEME SHARED VISION OF MANY OTHER STAKEHOLDERS N.S.W. GOVERNMENT PENRITH CITY COUNCIL THE COMMUNITY AUSTRALIA’S LARGEST CONSTRUCTION MATERIALS QUARRY THREE LEADING AUSTRALIAN COMPANIES BORAL – RINKER (USA) – HANSON (UK)

17 July 2004 ISBEE 3rd World Congress 13 SCHEME’s CONTEXT Regional Context: Provides 450 full time jobs A$50 million to regional city economy Supplies 75% of Sydney’s construction sand market Supplies 60% of Sydney’s construction gravel market Scheme has put Penrith City in International arena as an Olympic regional City of Sydney Attracted over $40 million of State investment A$150 million per year to western Sydney region Major employment potential in recreation & tourism Local Context:

17 July 2004 ISBEE 3rd World Congress 14 IN THE BEGINNING COMPETING SCHEME CONCEPTS LARGE MAIN LAKE SCHEME - ABUNDANCE Competing Concepts WETLANDS SCHEME - SCARCITY Maximised Environmental Benefits Maximised Recreational Benefits Affordable to build Extra $90 million to build Supported by: Government Council Community Affordable to maintain Industry High maintenance costs

17 July 2004 ISBEE 3rd World Congress 15 CHANGE BY “CONSULTATION” Extra $90 million to build offset by urban revenues shared with the community stakeholders Supported by: Government Local Council Community Industry LARGE MAIN LAKE SCHEME URBAN DEVELOPMENT

17 July 2004 ISBEE 3rd World Congress 16 ABORIGINAL HERITAGE EUROPEAN HERITAGE ENVIRONMENT RECREATION WATER MANAGEMENT RESOURCES EMPLOYMENT FLORA & FAUNAAGRICULTURE TRAFFIC LAKES VILLAGE TOURISM ECONOMIC IMPACTS FLOODING SAFETY A COMPLEX BALANCE for QUALITY COMMUNITY OUTCOMES BUILDING TRUST

17 July 2004 ISBEE 3rd World Congress 17 INNOVATIVE LEADING EDGE MODEL FINDING CHAMPIONS OPEN AND TRANSPARENT BEING CREATIVE BEING GENUINE AND GOING THE EXTRA MILE INVOLVING STAKEHOLDERS NOT JUST TALKING AT THEM SPEND A DOLLAR TO MAKE A DOLLAR

17 July 2004 ISBEE 3rd World Congress 18 THE PENRITH LAKES COMMUNITY IN 2004 LAKE SIDE VILLAGE MASTER PLANNING IN PROGRESS PARK MASTER PLANNING IN PROGRESS 400 HECTARES OF LAKES COMPLETED ABORIGINAL EDUCATION & RESEARCH CENTRE OPERATING ENVIRONMENTAL EDUCATION CENTRE OPEN

17 July 2004 ISBEE 3rd World Congress 19 PENRITH LAKES – Converted high standard extractive industry to world class, Olympic venue, tourist attraction, recreational parkland, high quality ecosystem management and high profit residential after use.

17 July 2004 ISBEE 3rd World Congress 20 Penrith Lakes Was it a fluke? It was no fluke, but an achievement of good governance

17 July 2004 ISBEE 3rd World Congress 21 Our structure of governance - with the person at the centre… The Ground Achievement shared “The Good” Choice The Person Trust Control

17 July 2004 ISBEE 3rd World Congress 22 Our four sorts of questions Sense and memory. our experience imagination, perception intelligence ideas, concepts understanding, insight reason what is true, real, fact / risk judgment responsibility Change - and control decision give us...through our powers of.. enquiry talk walk wonder

17 July 2004 ISBEE 3rd World Congress 23 Our powers of control are extensive - and the basis of integrity - and virtue 1. within oneself 2. in transactions with others be attentive be intelligent be reasonable be responsible be open

17 July 2004 ISBEE 3rd World Congress within oneself, personal integrity is when.. directs/controls performance in any part..the integrating power of the whole be attentive be intelligent be reasonable be responsible be open We call this the mind’s minder, or the heart of mind

17 July 2004 ISBEE 3rd World Congress with others, integrity underpins social interaction.. 1. Research 2. Interpretations / possibilities choice be attentive be intelligent be reasonable be responsible be open..in 8 dynamic value-adding stages 3. Facts / reality / probabilities 4. Positions 5. Vision, mission / value 6. Policy / strategy7. Plan / capability ACTION on the GROUND 8. Valued products / by-products

17 July 2004 ISBEE 3rd World Congress 26 ACTION on the GROUND Valued products / by-products In summary, a large view of control…. Research Interpretations / possibilities Facts / reality / probabilities Positions Learn Vision, mission / value Policy / strategy Plan / capability Lead be attentive be intelligent be reasonable /critical be responsible be open deliberate PastFuture monitor Choose coordinate implement commit Link review / evaluate consider

17 July 2004 ISBEE 3rd World Congress 27 …Control’s roots are on “the Ground” as matter, all we can touch, see, smell, etc.. as body, enwraps and expresses ‘the person’ as data, evidence of past and present achievement

17 July 2004 ISBEE 3rd World Congress 28..and control seeks “the good” - limited or large Human good Particular goods Openness to transcendent reality Friendship Integrity Truth Beauty Achievement (in work and play) Life itselfT Daly fulfilling work safe workplace just wage quality product ROI profit Good order sustainability growth job opportunities reputation fair dealings Rights & Responsibilities environment The golden rule The sleep test Values community personal social Personal good

17 July 2004 ISBEE 3rd World Congress 29 Control, when conflict about “the good”… peace development third, go forward dialogue second, go back negotiate persuade be open be patient first, manage self positions

17 July 2004 ISBEE 3rd World Congress 30 …and accounted for Stakeholder Director Executive CEO Manager Supervisor “The Good” - control down the line... Operator entrusted Trust affirmed exchanged / transacted Customer $ resources powers rights values

17 July 2004 ISBEE 3rd World Congress 31 In summary Human flourishing depends on having, in place, as Ian Stainton says, “a champion with the right values” or, as we would say, as a corollary, with emphasis on the core competencies of enquiry: “one who is both open and driving”