rdeshpande@hbs LP 2011

1. Thinking about Leadership Character and Responsibilities For Control Systems: 3 Questions • Am I comfortable with the likely consequences of this action? • Am I meeting my duties and respecting others’ rights? • Am I meeting my commitments and my company’s commitments? rdeshpande@hbs.edu LP 2011

2. Consequences of Actions rdeshpande@hbs.edu LP 2011

3. Thinking about Responsibilities: 3 Questions • Am I comfortable with the likely consequences of this action? • Am I meeting my duties and respecting others’ rights? • Am I meeting my commitments and my company’s commitments? rdeshpande@hbs.edu LP 2011

4. Thinking about Responsibilities: “Duty of Fairness” • Types of “Fairness”? • “Procedural Fairness” (equal treatment under defined rules) • “Distributive Fairness” (fair allocation of rewards/benefits) • Fairness for Whom? • Customers? Employees? Customers’ Employees (B2B Supply Chain)? Suppliers? Suppliers’ Employees (B2B Supply Chain)? Investors? rdeshpande@hbs.edu LP 2011

5. Thinking about Responsibilities: 3 Questions • Am I comfortable with the likely consequences of this action? • Am I meeting my duties and respecting others’ rights? • Am I meeting my commitments and my company’s commitments? rdeshpande@hbs.edu LP 2011

6. Responsibilities : 8 Principles for Action Commitments • Fiduciary Principle:act in the best interests of your company and your investors • Property Principle:respect property and the rights of those who own it • Reliability principle:keep promises, agreements, contracts, and other commitments • Transparency principle:conduct business in a truthful and open manner • Dignity principle: respect the dignity of all people • Fairness principle: deal fairly with all parties • Citizenship principle: act as a responsible member of your community • Responsiveness principle: be responsive to the legitimate claims and concerns of others rdeshpande@hbs.edu LP 2011 Adapted from the Global Business Standards Codex, Paine, Deshpande, Margolis, Bettcher, HBR Dec 2005

7. A single universal code of conduct (business standards) applied globally or situational business ethics following the “when in Rome”* notion. *When I go to Rome, I also fast on Saturday: when here, I do not. If you go to any church, observe local custom…” fourth century Ambrose, bishop of Milan, quoted in Peter Brown, Augustine of Hippo: A Biography (Berkeley, CA: Univ. of Calif. Press, 2000), 77-78. Research reported in “When in Rome: A Global Leader’s Guide to Managing Business Conduct,” Harvard Business Review Online, August 2011 (forthcoming), Rohit Deshpandé, Joshua Margolis, and Lynn Paine. Control – Systems and Processes: The Dilemma rdeshpande@hbs.edu LP 2011