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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

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slide1

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

slide2

Consequences of Actions

rdeshpande@hbs.edu

LP 2011

slide3

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

slide4

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

slide5

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

slide6

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

slide7
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