Corporate Social Responsibility MIRIBIS 06 DECEMBER, 2012 GERALD J ROHAN

The New Paradigm in Business Education How Corporate Social Responsibility, Business Ethics and Responsible Management deliver Sustainability to Shareholders and Stakeholders

OR How philosophy is saving business!

Current Paradigm Business Education necessarily focuses on the purpose and vocabulary of business Business Education necessarily focuses on the activities of business – Marketing- Operations – Accounting- Economics – Finance- Management

Is that enough? Leadership is one of the missing elements Business Ethics is another missing element We prepare students to become business: – Specialists – Experts – Managers – Directors – CEOs Do we prepare them to be Leaders?

Answer Unfortunately No! Major corporations have a developed processes to help managers become leaders through a Successor Planning Process. This process provides leadership development with a corporate context, but it is also part of Corporate Sustainability

Why Leaders? Leaders are: – Agents of change: – Provide Vision – Articulate Values – Empower People Leaders are the “Tone at the Top”

Tone at the Top The Tone at the Top is the single most important attribute needed for Corporate Social Responsibility to have meaning. People follow was is done, not what is said.

Corporate Social Responsibilty Phil. Ethics Integrity Values Financial Stewardship Management of Assets Responsible Profitabiltiy Compliane: Legal and Financial, Regulatory, etc

“No man is an island” No man is an island, Entire of itself. Each is a piece of the continent, A part of the main. John Donne, 1624

How Do We Teach Values? Students hopefully will have them Get students to come in touch with them – Attitudes, Values and Beliefs are often manifest in the way we think about dilemmas – Not just what is the Answer, but what is the Action.

Challenge Behavior is Above the Water Line and Visible Values Attitudes are Below. Not Visible They drive behavior

Approaches Behavior is controlled by Rules (or last least we attempt to control behavior) Attitudes, Values, Beliefs are developed by: experience family, school, culture, society

How do go below Philosophy: – Greeks – Utilitarianism – Universality Rights – Right to life versus “Do the most good_

What is the Objective Business Ethics is about choice! We need to provide students the methodology to help them make the Right Choices in life and in business.

Tucker Model Is it profitable? Is it legal? Is it right? Is it fair? Is it environmentally sustainable? Environmentally = total environment, e.g. PESTEL

Professional Standards Doctors Lawyers Accountants Financial Analyst Brokers

New Paradigm Ethics as integral to all subjects We need courses in CSR and Business Ethics to provide the framework and the methodology. Business Ethics needs to be integrated into all course in which choices are made: – Ethics in Marketing – Ethics in Accounting – Ethics in Finance – Ethics in Management – Ethics in Operations – Ethics in Economics

Thank you! Gerald J Rohan