Creating Cultures for Better Business Andy Corley Managing Director, Quadralene Sally Hibbert Professor of Consumer Behaviour Defining Impacts & Priorities for Better Business Establish scope/boundaries of assessment (e.g. geographic, business unit) Map impacts within the control of the company against value chain Select indicators & collect data Define priorities The route to better business? • 81% Fortune 500 companies & all FTSE 100 companies report on corporate sustainability • Increasingly aligned with corporate strategy & evidence that adoption of sustainability perf. measurement social & environmental performance • Does it produce a compliance mindset? • What is the ethical culture within the business? (i.e., what are the criteria/focus of ethical reasoning) Moral reasoning in business Amoral (selfinterested culture) Limited morality (instrumentalist culture) Broader morality (moralist culture) Commonly called… Managerial egoism Enlightened selfinterest Moral purism Moral orientation Follows rules to avoid punishment Conforms to expectations/ fulfils duties Follows justice principles, creative sharedvalue solutions None Shareholders & ‘useful’ others All primary & secondary stakeholders Relevant stakeholders Successful corporate cultures are linked to strong core values about how to treat employees, customers, suppliers, and others — that is, stakeholders (Barney, 1986: 656). Why? e.g. Employees Amoral (selfinterested culture) Limited morality (instrumentalist culture) Commonly called… Managerial egoism Enlightened selfinterest Moral purism Moral orientation Follows rules to avoid punishment Conforms to expectations/ fulfils duties Follows justice principles, creative sharedvalue solutions Employee behaviour Task accomplishment Work group collaboration Empowered employees, full participation Broader morality (moralist culture) The future of work? (PwC 2014) The future of work? (PwC 2014) Companies care: Green world Companies seek likeminded individuals Talent is attracted to company values & culture Firms focus upon total reward, incl. performance & citizenship behaviours The future of work? (PwC 2014) Small is beautiful: Orange world Connect to suppliers of key skills via technology; contract specific tasks Talent attracted by firm’s reputation in skills networks Contract based pay for projects is the norm Where is your business on the ‘moral reasoning continuum’? What does it mean for these relationships? What are the implications for the business? B What? A How? I Culture eats strategy for breakfast Peter Drucker Hedgehog Concept What you are deeply passionate about What drives your economic engine What you can be the best in the world at From ‘Good to Great’ J. Collins et al Inattention to Results Avoidance of Accountability Lack of Commitment Fear of Conflict Absence of Trust The five dysfunctions of a team – Patrick Lencioni
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