is the condition of

1. Moral imagination is the condition of free deeds Steiner

2. Contents 1 Ethical Imagination: when managers must choose between « right » & « right » 2 Regulatory Innovation: when a multitude of actors interact to enforce CSR 3 Adaptive leadership: when leadership is required to adress conflicts in people’s values

3. Case 1 – Lee Pinto & the new car Whatwouldyou do if youwouldbe Lee Pinto ?

4. What did Lee Iacoca, CEO of Ford ? What does the 1974 Ford Pinto scandal teach us about CSR?

5. What would you do if you were Steve Lewis? Would you go to the meeting or not ?

6. Steve Lewis’ possible questions Feelings? Roots? Who am I? “Become who you are” (Friedrich Nietzsche) Imagination? Future? Source: Badaracco (1997); adapted by Ledoux

7. Potential sources to support ethical decision-making Codes of conducts & Mission statements Legal duties Moral or ethical principles Heuristics («sleep-test» rules)

8. A framework for ethical theories Individual processes Adaptability & responsiveness Virtue Ethics (Aristotles, Gilligan,…) Development Ethics (Etzioni, Covey,…) Principles “Doing right” Results “Doing good” Deontological Ethics (Kant, Rawls,…) Teleological Ethics (Bentham, Mill,…) Institutional structure Fixity & consistency Source: Fisher & Lovell (2003); adapted by LL

9. If you know it’s wrong, don’t do it! If you’re not sure, ask. Keep asking until you get an answer. The Texas Instrument Ethics Quick Test(2001) • Is the action legal? • Does it comply with TI values? • If you do it, will you feel bad? • How will it look in the newspaper?

10. 12 tests filter to validate or reject a decision Trigger Ask yourself these questions concerning the decision you wish to take +/- Veto Legal duties 1. Legalist test. Is my decision in accordance with the law? Corporate credos & mission statements 2. Organisational test. Is my decision in accordance with my organisation’s rules of conduct or ethics Heuristics 3. Hedonistic or intuitive test. Does my decision correspond with my gut feeling and my values? Does it make me feel good? Respect of ethical principles Virtue ethics 4. Light-of-day test. Would I feel good or bad if others (friends, family, colleagues) were to know of my decision and action? 5. Virtuousmeantest. Does my decision add to, or detract from, the creation of a good life by finding a balance between justice, care and other virtues? Deontological ethics 6. Veil of ignorance/Golden Rule. If I were to take the place of one of those affected by my decision and plan would I regard the act positively or negatively? 7. Universality test. Would it be a good thing or a bad thing if my decision and plan were to become a universal principle applicable to all in similar situations, even to myself? Development ethics 8. The communitarian test. Would my action and plan help or hinder individuals and communities to develop ethically? 9. Self-interest test. Do the decision and plan meet or defeat my own best interests and values? Teleological ethics 10. Consequential test. Are the anticipated consequences of my decision and plan positive or negative? 11. Utilitarian test. Are the anticipated consequences of my decision and plan positive or negative for the greatest number? 12. The discourse test. Have the debates about my decision and plan been well or badly conducted? Have the appropriate people been involved?

11. The 4 orders & the tensions between the individual and the group Spiritualities Metaphysics (secular or religious) Wisdoms * Synthesis based on the texts from André Comte-Sponville, Marcel Conche & François Jourde Ascending hierarchy for individuals possibly induces Ethical order Good vs. Bad (Self, subjective or relative Will) completes limits Moral order Right vs. Wrong (Universal or universalisable duties) limits Juridical & political order Legal vs. Illegal Descending hierarchy for groups limits Economic, technical & scientific order Possible vs. Impossible (Natural and rational Law)

12. Contents 1 Ethical Imagination: when managers must choose between « right » & « right » 2 Regulatory Innovation: when a multitude of actors interact to enforce CSR 3 Adaptive leadership: when leadership is required to adress conflicts in people’s values

13. The three dimensions of CSR Social Economic Environmental Corporate Social Responsibility The entirety of obligations legally required or voluntarily assumed by an enterprise to pass as an imitable model of good citizenship within a given field (Jean Pasquero) Fair Sustainable Livable Viable Yesterday’s representation…

14. Biosphere Social sphere Equitable Social Economique Durable Economic sphere Vivable Viable Environnement Today’s representation… Laurent Ledoux – 31/03/11

15. Motivation • In whose interest & why? • For Share- or Stakeholders? • Marketing opportunism or moral duty? • Power locus • Who drives CSR? • Internally: managers or «corporates»? • Externally: Govs, NGOs or corporates? • Dynamic • How did/does CSR evolve? • Concept’s evolution so far? • Today’s logic in a globalized economy? • Method • How to promote it? • Regulation or self-regulation? • Soft or hard? • Global or Issue-related?

16. Dynamic – How has the CSR concept evolved so far? Content richness of the CSR concept 8 components of CSR nowadays Evolution so far? Citizen participation Proactive «engagement» Performance reporting Triple balance sheet Ethical rectitude Codes of conduct Social responsiveness « Societal management » system Environmental nuisance limit Priority given to the environment Sollicitude Employees’ needs Philanthropy Grants & corporate patronage Efficient management (Technical skills) Time Classical eco. (18th century) Traditional eco. (19th c.) 1960’s 1970’s 1990’s Beg. of 20th c. Beg. of 21th c. Source : Jean Pasquero (2005), adapted by Ledoux

17. Co-regulation based on reputation rather than law Frydman

18. Explaining the growing impact of “CSR” & co-regulation during the last 50 years ? Transfer of States’ duties to corporates “Coherency” of the coregulation system Effectively Empowerment of 3rd parties by States & Judges Proliferation through reputation & transparency Highly stylised process*: in reality these trends overlap each other Regulatory innovation process Hard 2003 Nike vs. Kasky Consumers’ CSR concerns legally recognized Growth of surveillance & social controls’ web Voluntary adoption of codes of conducts 2001 Global Compact corporates become world citizens Politization of comsumption Corporates’ emancipation from states «Formally» but self-fulfilling prophecy Soft Time * Source: “Responsabilité sociale des entreprises et co-régulation”, by Berns & al, 2007

19. Optimize value for the under the constraint of an for shareholders whole society adequate return Emmanuel Faber Maximize (without limits) under the constraint of the shareholder’s value respect of the law Milton Friedman

20. Profit is the consequence of the human relation that we develop daily with our shareholders, clients, employees, suppliers and the rest of society Toniutti

21. Evolution of the relations between capitalism & the dominant ethos Post-capitalist Ethos Rise of the post-capitalist economy Protestant ethos Progressist ethos ? Birth of modern Capitalism Expansion of industrial Capitalism Time Consumerist Capitalism Promotion of a childish ethos

22. Contents 1 Ethical Imagination: when managers must choose between « right » & « right » 2 Regulatory Innovation: when a multitude of actors interact to enforce CSR 3 Adaptive leadership: when leadership is required to adress conflicts in people’s values

23. Today’s focus – Adaptive leadership: leadership without easy answers? Ruckelshaus’ case drawn from R. Heifetz will guide us today to reflect upon leadership & change

24. Adaptive leadership – Reflecting upon case 2 : William Ruckhelshaus & Tacoma What did Ruckhelshaus do or didn’t do? What did he achieve? Is this a leadership case? Why or why not?

25. Adaptive leadership – Distinguishing technical problems and adaptive challenges (Parson’s case) Challenge Problem definition Solution and implementation Primary locus of resp. for the work Kind of work Type I Clear Clear Physician Technical Type II Clear Requires learning Physician and patient Technical and adaptive Type III Requires learning Requires learning Patient > physician Adaptive Source: “Leadership without easy answers”, by Ronald Heifetz

26. Adaptive leadership – Modulating the stress Source: “Leadership on the line”, by Ronald Heifetz & Marty Linsky

27. Adaptive leadership – 5 strategic principles of leadership Identify the adaptive challenge (Unbundle the issues) Protect leadership voices w/out authority (Cover who raises questions authorities can’t raise) Give the work back to people (Put pressure on people with the problem) 5 strategic principles of Leadership Keep the distress level tolerable (Control the pressure cooker) Focus on ripening issues (Counteract work avoidance mechanisms) Source: “Leadership without easy answers”, by Ronald Heifetz, adapted by Ledoux

28. Scope of authority A● B● Adaptive leadership – The politics of change & Going beyond your scope of authority Adaptive challenge Faction Participant Constituencies

29. Adaptive leadership – 4 critical distinctions provided by Heifetz’s challenging view of leadership Authority Leadership Leadership without easy answers Technical problems Power Adaptive challenges Progress Personality Presence Source: “Leadership without easy answers”, by Ronald Heifetz, adapted by Ledoux

30. Adaptive leadership - 4 related groups of activities • Diagnose the system • Be ready to observe & interpret before intervening • Diagnose the system itself • Diagnose the adaptive challenge • Diagnose the political landscape • Understand the qualities that makes an organization adaptive • Mobilize the system • Make interpretations • Design effective interventions • Act politically • Orchestrate the conflict • Build an adaptive culture • See yourself as a system • Identify who you are • Know your tuning • “Broaden your bandwidth” • Understand your roles • Articulate your purposes • IV. Deploy yourself • Stay connected to your purposes • “Engage courageously” • Inspire people • Run experiments • “Thrive”