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Global Responsible Leadership

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Andrea Kilin

on 27 October 2014

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Transcript of Global Responsible Leadership

Global Responsible Leadership
Group 7F

Andrea Kilin | Christian Eriksson |
Qi Fang | Hanna Vuorimaa

Agenda
Stahl et al.
TeliaSonera Case
Voegtlin et al.
Corporate Social Responsibility
Unilever Case
Break
Discussion hour

Background
Process of globalization
Public interest insufficiently served
Lack of common moral and legal framework
Increase of corporate scandals & managerial misconduct

Triple Bottom Line
People | Planet | Profit
Diversity
Ethics
Sustainability
Citizenship
Responsible Leadership
Include more stakeholder groups
Mutually beneficial partnerships
Legitimacy of organization

Approaches
The Situationist Approach

Immediate issue characteristics

The Social Cognitive Approach
The Intuitionist Approach
The role of intuition and emotions

The “Bad Apples”
The role of individual differences
Cognitive moral development
Moral philosophies
Machiavellianism
Moral intensity
TeliaSonera
Merger between Telia and Sonera in 2002
190.6 million subscriptions
25,741 employees worldwide
Net sales SEK 101,700 million (Mobility 48%, Broadband 32%,  Eurasia 20%)
Present in 17 countries (e.g. Azerbaijan, Georgia, Kazakhstan, Nepal, Russia, Spain, Tajikistan, Turkey and Uzbekistan)

The Black Boxes
Lars Nyberg (CEO 2007-2013)
Model of Responsible Leadership
Addressing the challenges of globalization

Mutual interaction between leadership agency & organizational structures

Positive outcomes of responsible leadership across 3 levels of analysis: macro-level, meso-level, and micro-level.

Macro-level: Organizations' interactions with global society



Legitimacy of an organization

Trustful stakeholders relations

The social capital inherent in stakeholder relations

Responsible Leadership

Meso-Level:
Internal Organizational structures and practises

Ethical culture

CSR character
Social entrepreneurship
: Unilever

Performance
: BP's oil drill
Direct contributions
Implement morally legitimate means

Indirect contributions
Mediated by other variables

Micro-Level:
Personal Interactions of individual agents


Effect on followers’ attitude and cognition

E.g. OCB, motivation,
job satisfaction

Role models
Incorporated into decision-making process

Followers’ Attitude and Cognition

Globally Standardized Approach
Hypernorms: consistency and standardization
Regulated by transnational agreements
3 - domain portrait: profit, law, ethics (Carroll, 2004)
5 - dimensions: environmental, social, economic,stakeholders and voluntariness (institutional and cultural- Stahl et al.)

Downside: ethical imperialism and arrogance
CSR on the Organizational Level
Responsiveness and sensitivity to local standards
Success dependent on individual ethics and organizational culture combination
Culture theory (profit vs. people)


Downside: Hypernorms less credible


Leadership & CSR
Motives for CSR: self-, firm- or pure ethical
Expectations: hypernorms, firm-specific alternatives and local norms
Transnational CSR strategy - hybrid strategy: balance global and local demands
"Dual citizenship"
Solutions: role of ‘boundary spanners’, ‘bridge makers’ and ‘blenders’
CSR is a process, not an outcome

Unilever

1929 Lever Brothers and Margarine Unie merger
2009 - Paul Polman CEO
Turnover 49,8€bn (2013)
3rd largest consumer goods company
More than 174 000 employees
Present in over 190 countries
Over 57% of sales in emerging markets

Brand Portfolio
Sustainable Living Plan
10 year ambitious plan - November 2010
Vision
Double the size of the business while halving environmental impact by 2020
All brands and countries included


Goals
Greenhouse Gas Footprint
Progress
Sales
4,3% growth by the end of 2013
People
Over 300 million people reached by the end 2013
Raw materials
48% of sourced responsibly in the end of 2013
Waste
11% reduction since 2010
Water consumption
15% increase in water impact per consumer since 2010

LET'S INTERACT!
Introduction to Question 1
Should corporations take the initiative in promoting and developing responsible leadership and socially responsible practises?
What responsibility does the rest of the society have in this (governments, consumers, employees)?

Question 1

Question 2
What skills or characteristics would you consider as essential for a global responsible leader to have?
Why do you consider these important?

At the seventh annual BlogHer Conference, PepsiCo Chairman and CEO Indra Nooyi shared with attendees her five C's of leadership.

Magnitude of consequences
Social consensus
Probability of effect
Proximity
Temporal immediacy
Concentration of effect
Top Management Team
Internal drivers of corporate social performance
Group-related variables
Group composition design
Organizational context
Group processes
Group psychological traits

Unilever’s GHG footprint across life cycle

Reflection
Ambitious plan
Reputation risk
Authenticity & credibility
Double the sales vs. responsible business?

TeliaSonera's Core Values
The Black Boxes
Add value | Show respect | Make it happen
Interrelation between responsible leaders and stakeholders
Responsible leaders advance social entrepreneurial ventures
Ethical Behavior
"a person's actions that, when freely
performed, may harm or benefit others"
well-developed incentive systems
empowered employees - participative process
manager - coherent and consistent in words and action
"We take ownership..."
"We treat others the way we want to be treated..."
"We carefully protect customer privacy and network integrity, and always act in the best
interests of our customers and our company"
The role of moral disengagement and implicit attitudes
I’m convinced telecommunication is a force of good, even in these countries. And I think we are a highly trusted and respected partner in this contexts.

We maintain high moral standards but we have to follow the law, and all nations of the world have laws on surveillance.

Collecting personal information is not the problem, the problem arises when the information is used to violate human rights.

We are just a telecom operator, we can not assume leadership when laws are in conflict with human rights this is up to the political level to do.

We sat down with other telecom operators to discuss these issues, and everyone shares this view.
Global Responsible
Leadership
Proscriptive ("do no harm")
Prescriptive ("do good")
Full transcript