1、National Values&Corporate Social ResponsibilityStephen B.Young,Global Executive DirectorCaux Round TablePortoroz,SloveniaApril 4,20081The Challenge:What are the cultural foundations for CSR Management?Does CSR Management fit within a national development strategy?2What is CSR Management?Business dec
2、ision-making that includes anticipation and measurement of a wide range of consequences Incorporates cultural and moral perspectives into the financial metrics of successful firms Normative standards derived from global perspectives(Caux Round Table,UN Global Compact,GRI,SA 8000)3What is National Cu
3、lture?Customs,habits,values,priorities that create a psychological comfort zone for individuals Predispositions and dispositions of personal character Core concepts axial principles-expressed in language and apprehended through language use4What Are Axial Principles?Core principles about human purpo
4、se and reality that influence many attitudes,behaviors,and expectations of right and wrong,good and bad,close and far Cultures have unique axial principles Axial principles shape national character Axial principles are expressed in language but carried out in behavior5V isio n(R e lig io n)H o n-e s
5、t y$C areer F am ily E d u c atio n Ju s tic e A c tio n A w a re n e s s P e rs o n a l C a p a c ity C o n sc ie n c e M o ra l se n se (A.S m ith,M e n c iu s)R e fle c tio n D isc o u rse,R e a d in g B ill S y k e s W o rk sh o p s C h a ra c te r/Id e n tit y (D e te rm in a tio n)(S u p e re
6、g o)(E x te rn a l P re ssu re s)D e c isio n-M a k in g (C o u ra g e)(E g o-id c o n flic ts)(E x te rn a l P re ssu re s)L e a r n in g P e rso n a lity S t yle (M ye rs-B rig g s)Ju d g m e n t D isc e rn m e n t Leadership V irtu e s C o m-p a ssio n C o u r-a g e T ru stw o r-th in e ss G o a
7、ls D e v e lo p m e n t M in d fu ln e ss P ra c tic e;P ra ye r,Z e n M in d S k ills/C o m p e te n c ie s T ra in in g Management C o n sid e r A lte rn a tiv e s;M e n to rin g E x p e rie n c e Feedback E x e rc ise se lf-c o n tro l;F o rm h a b its;C o a c h i n g T h e M o r a l I n d iv id
8、u a l A c c o m p lish m e n t From Normativity to Facticity(Jurgen Habermas)67Other-RegardingThe Moral SenseSelf-RegardingSelf-Interest Considered upon the wholeSelf-Interest Narrowly consideredBasic physical and Ego needsSelf InterestVirtue89Stewardship ServiceThe Moral Sense Exploitation Power fo
9、r common good;Ethical leadership;Kyosei FearPower only for selfDysfunctional LeadershipDominion9CosmosThe BasicSelf10VirtueSelf interest11channel self-interest;repress autonomy;prevent anarchy hierarchy;licenses;seek permission;conform to government policies and wishes Employees paternalism;dependen
10、cy;low wages;routine tasks;follow orders Owners/Investors “quan xi”cronies;family;share risks;no transparency Suppliers low cost Competitors cartel;Divide markets Communities seek government favors;“quan xi”;responsible only for assigned duties;no transparency order;peace;harmony“Tai He”Principles I
11、deal Stakeholder Benchmarks Standards Traditional Chinese Business Value Outcomes Steady sustained growth;little innovation;corruption Customers compete on price;caveat emptor 1213 Mutuality/Reciprocity“Jen”/“Shu”Social Office of Business;lord lords;minister ministers;father fathers;son sons;CRT Pri
12、nciplesPersonal responsibility;concern for consequences;achieve goalsCRT ArcturusSustained Social Justice&Wealth CreationCustomersQualityEmployees AgentsOwners/InvestorsFiduciary;TransparencySuppliersShare RisksCompetitorsCompete on quality;No fixed marketsCommunityNo Corruption;Good EnvironmentProp
13、osed Chinese Business Value Pyramid“giri-on”Keiretsu group process;cross-holdings;stability;inflexible strategy;flexible contracts Employees lifetime employment Owners debt over equity;low margins;no bankruptcy;Japan,Inc.Suppliers Keiretsu;just in time;share risk Competitors Japan,Inc.;divide market
14、s;live and let live Community/environment“tanin”/low value“Ninjo”Principles Ideal Stakeholder Benchmarks Standards Japanese Corporate Value Pyramid Outcomes Upmarket Growth:19541990 Downmarket Stagnation:19902002 Customers market share 1415CRT Principles for Business CRT SAIP Employees autonomy;mobi
15、lity;private savings;health care Owners ROI;share profits;transparency;corporate governance;bankruptcy Suppliers just in time;share risk Competitors price/quality competition;no fixed market share Communities transparency;no corrupt ties to government;protect environment Mutuality:“kyosei”Shinto:sin
16、cerity of mind/service Mahayana:compassion Confucian:“jen hsin”Christian:love thy neighbor Principles Ideal Stakeholder Benchmarks Standards One Suggested Value Pyramid for Japan Outcome Start an Upmarket Cycle Sustained Growth Consumers market share(no change)Property;“territory”Scope of influence;
17、number of“dependencias”Employees paternalism;obedience;no responsibility;low productivity;many positions-titles;procedure Owners/Investors equity over debt;few trusted insiders;family Suppliers submissive Competitors enemies;buy political influence Community little or no value or importance except a
18、s subordinates;buy influence -social and political Dom inion(“hacendado”;“patron”ideal)Standards Ideal Stakeholders Benchm arks Suggested M exican Business Value P yram id O utcomes Sm all entrepreneurial m iddle class;w ide gaps in w ealth/incom e;capital flight;w eak civil society;low social capit
19、al;high m istrust Consumers compliant;accept product as offered Personal discretion Honor;respect O w nership prerogatives Position;title 1617CRT Principles for Business;fiduciary ideal SAIP 49 cell matrix Employees colleagues in common effort Owners/Investors sustained returns;good corporate govern
20、ance;transparency Suppliers buy on quality Competitors compete on quality and innovation Community pay returns on social capital;sustainability Honor;Respect for human dignity Standards Ideal Stakeholders Benchmarks Proposed M exican Business Value Pyramid Outcomes Economic growth with social justic
21、e Consumers valued clients;service orientation 18192021Outcomes Just and prosperous community;City upon a hill;Adult maturity;Build for the future Government of the people;By the people;For the people;Citizenship;Patriotism;Rule of Law;Democracy;Equality of opportunity;Truth subject to verification
22、The Moral Sense Self-interest considered upon the whole;Humility in the face of experience Standards Benchmarks The American Ethic Economic growth;Moral capitalism;Personal savings;Strong institutions;High levels of participation;Well educated populace;Low aversion to risk;Dense social capital;Stron
23、g sense of personal responsibility;Tolerance;Integrity;Transparency;Accountability;Powers of judgment;Patience;Open Social Architecture Civic participation;Strong civil society;Excellence in education;Work ethic;Respect for all;Meet fiduciary responsibilities Principles 22Outcomes Entitlement to des
24、ires;No authority over self;No moral sense;Authenticity define the elect Sensual pleasure;Freedom of thought;Material comfort;No social standards for behavior;Truth revealed Infantile Individualism(perfectibility of humanity)Standards Benchmarks The Left Moral relativism;Society subservient to gover
25、nment;Class warfare;Philosophical nihilism;Culture of addiction;Co-dependency;Reality TV;Internet porn;Shallow culture;Let government do it;Socialism;Closed social architecture Feminism;Equality of results;Wealth transfers;Government subsidies;Political correctness;Multiculturalism;GLBtism;Weak law
26、enforcement Principles 23Outcomes Aggressive individualism;Only self and God/Nature;God loves those who win;Wealth defines the elect Financial success;Authority of family and church;Freedom from government;Work ethic;Self-reliance;Truth revealed Survival of the Fittest under God/Natural Law Standard
27、s Benchmarks The Right Income equality;Corporate scandals;Brute capitalism;“Money”and insider politics;Suburbs;Consumerism;Low taxes;Small governments;Shallow culture;High risk aversion;Closed social architecture Low taxes;Personal wealth;Regulation of sexual conduct;Political correctness;Private sc
28、hools;Networks of personal Principles 24Rent Seeking;Insider Favoritism;Buy Obedience;Use Police State for Security Insider Networks;Capture of State Functions;Monopolies&Cartels;No Accountability Employees Indentured Retainers Owners/Investors Families;Political Insiders;No Corporate Governance Sup
29、pliers Price Takers;Low Quality Competitors Removed by Government Fiat Communities Maximum Externalization of Costs;Corruption of Politics Social Dominance Principles Ideal Stakeholder Benchmarks Standards Crony Capitalism Outcomes Mafia-style Administration;Kleptocracy;Large Scale Transfer of Wealt
30、h to Elite Families Customers Capture with Monopolies&Cartels;Price at Monopoly Premium 25Maxim ize$irrespective of consequences to others ROI Employees layoff 20%a year;lock in 401(k)stock Owners/investors “aggressive”accounting;conceal liabilities Suppliers squeeze and bully Competitors collude or
31、 destroy Communities Maximize externalities;seek government favoritism;no transparency Greed;Social Darw inism Principles Ideal Stakeholder Benchmarks Standards The Irresponsible Corporation ENR ON Outcome Destruction of equity investm ent Financial loss for employees,creditors,suppliers Consumers c
32、aveat emptor Total compensation Stock price 26CRT Principles for Business CRT Self-Assessment Process Customers Chapter 7 Emp loyees Chapter 8 Owners/Investors Chapter 9 Suppliers Chapter 10 Competitors Chapter 11 Corporate Action Managem ent Decision Making Outcomes World Religions(Kyosei,Human Dig
33、nity,Stewardship)Sustain Inform Elaborate and Quantify Stakeholder Benchmarks Focus Accountable for Success Feedback M oral Capitalism Communities Chapter 12 Ideal Principles Standards 2728Conclusion:CSR Management will be most successful when CSR norms are integrated with axial principles of a nati
34、onal culture29The Cultures and Axial Principlesof Southeastern Europe:The past controlling the presentWe live our lives walking back and forth on the Value Sediments left by History30Value Sediments Left by ConflictLiving At the intersection of value empires:Between Rome and warrior tribes Between S
35、lavs and Ural-Altaics Between Roman Catholicism and Eastern Orthodoxy Between Islam and Christianity Between Turks and Slavs(with Albanians as well)Foreign Rule from Venice,Budapest,Vienna,Istanbul Smaller Imperial visions:Greater Serbia,Greater Bulgaria,Greater Romania31Value Sediments left by Fami
36、ly Structure Dinaric family system the Kuca(Dinko Tomasic,Personality and Culture in Eastern European Politics,G.W.Stewart,NY 1948)Patrivilocal house cycle with complexity(Karl Kaser,Introduction:Household and Family Contexts in the Balkans,The History of the Family,Vol.1,No.4 1996)32 Daughters-in-l
37、aw and granddaughters-in-law come to live with husbands family;multigenerational household cycle Sons stay together as an economic/social unit;paternal property(the ocevina)not divided with marriage or death,but only after generations when the family group divides.Kuca ruled by the Starjesiva domine
38、ering head male elder “Where the elder is not obeyed,God does not help.”“The young to obey;the elder to command.”33Family Dynamics within the Kuca Oscillation between overindulgence in affection and over strictness in punishment Ambivalence between love/hatred;submission/defiance Desire for self-max
39、imization coupled with keen resentment of accepting dictation from others Frequent conflicts:Father/son&Parent/child34One Consequence:Too good an opinion of oneself;pride can become quite boundless Desire to win a place of their own in the world can lead to unjustified personal and national claims35
40、Second Consequence:Alternate between activity and passivity Lack of emotional balance Hope and Despair equally excessive36Third Consequence:Rivalry and Antagonism Cunning manipulation of others admired Submission yet waiting to exert own power Mistrust from fears of disloyalty on the part of others“
41、He who does not trust will not be duped.”“Woe to him who trusts a man.”“He who has force has justice.”“Force is stronger than a kind word.”“He who knows how will gain double.”37Value Sediment Left by History Power is not accepted as automatically legitimate Determination to preserve core values agai
42、nst rulers National/linguistic/ethnic/religious sub-cultures in the region most important for sustaining individual identity and family solidarity38Turning Lead into Gold Every value has its good and bad aspects What is a strength can become a weakness What is a weakness can become a strength Yin/Ya
43、ng approach to the flow of power and circumstance39 Self-assertion side of Dinaric family pattern Keen Awareness of self and values held dear by self Deep respect for importance of values Search for value-based solutions in the face of power,cruelty and cynicism40Positive CSR Management Orientations
44、:Predisposition to please customers,to innovate,to seek quality Role as favored suppliers in global supply chains Provide employees with opportunities to excel Employees willing to step up to challenges if they get personal freedom and recognition Emphasis on training and workforce development Respo
45、nd avidly to competition in free market setting Concern for quality of life in local community Resistance to abuse of political authority41Less Positive CSR Management Orientations Less concern for quality of public goods provided by the state Less concern for far-off environmental issues Mistrust o
46、f investors,partners,suppliers Mistrust of government Need to be powerful and arbitrary in dealing with customers and employees,rivals and outsiders42CSR Management Advantages in Southeastern Europe Value Sediments:Recognition of importance of individual achievement use this to promote human capital formation Education Training Inventions and innovations Hard work Easy ability to articulate thoughts and feelings Respond quickly to opportunities43
