The Integrative Justice Model for
Impoverished Markets:
A Framework for 21st Century Business Leadership
Development in the Jesuit Tradition
Nicholas Santos, S.J.
Gene R. Laczniak
[Marquette University, Wisconsin, U.S.A.]
12th Annual CJBE Conference
Leading Others and Developing Leaders for Business in the 21st Century
July 16-19, 2009
Rockhurst University, Kansas City, Missouri
4 Pillars of Jesuit Leadership

Self-awareness


Ingenuity


Confidently innovating and adapting to embrace a changing world
Love


Understanding one’s strengths, weaknesses, values, and worldview
Engaging others with a positive, loving attitude
Heroism

Energizing oneself and others through heroic ambitions
Chris Lowney, Heroic Leadership
The 5th pillar of Jesuit Leadership

Concern for the poor and marginalized





Care for widows, prostitutes, orphans
Care for refugees and indigenous people
Fighting for the rights of workers
Providing healthcare and education for the poor
Advocacy
5 key themes of Jesuit Business Education
1.
2.
3.
4.
5.
the development of the moral and spiritual character of the
manager,
the responsibility to use one's managerial skills for the benefit of
"others,"
a concern for the welfare of employees in the manager's
organization,
a focus on the social impact of business and organizational decisions,
and
a special concern for the poor and marginalized
frequently left out of the economy.
Kirk O. Hanson (2008), “Business Ethics in Action: Jesuit Business School Strategies for Engaging Business Executives,”
Paper delivered at the joint conference of the IAJBS and CJBE at Fordham University, July 20-23.
Business in the 21st century
A major trend in the first decade of the new millennium





Business engagement with impoverished customers particularly in
emerging economies; characterized as the bottom or base of the
pyramid market
Business models
Academic literature
Conferences
Incorporation of BoP courses in business curricula
The Integrative Justice Model (IJM)

Normative ethical framework for marketing to impoverished market
segments

Constructed using the normative theory building process in
philosophy proposed by John Bishop (2000)

Integrates the notion of “fairness” or “equity” in marketing
transactions as developed in different strands of thought in moral
philosophy and management theory

Uniqueness of the IJM: well-grounded, logical, consistent, and
systematic model
Frameworks covered
1.
Virtue Ethics
8.
Stakeholder Theory
2.
Ross’ Theory of Duty
9.
Triple Bottom Line Approach
3.
Habermas’ Discourse Theory
10.
Sustainability
4.
Kant’s Categorical Imperative
11.
Socially Responsible Investing
5.
Rawlsian Theory
12.
Service-Dominant Logic of
6.
Classical Utilitarianism
7.
Sen’s Capability Approach
Marketing
13.
Catholic Social Teaching
Key Elements of the IJM (value inputs)
1.
Authentic engagement with consumers, particularly impoverished
ones, with non-exploitative intent
2.
Co-creation of value with customers, especially those who are
impoverished or disadvantaged
3.
Investment in future consumption without endangering the
environment
4.
Interest representation of all stakeholders, particularly impoverished
customers
5.
Focus on long-term profit management rather than short-term profit
maximization
IJM elements – Theoretical support
IJM element
Theoretical derivation
Authentic engagement with consumers, particularly
impoverished ones, with non-exploitative intent
•Catholic Social Teaching [common good, human dignity, solidarity]
•Kant’s Categorical Imperative [1st and 2nd formulation]
•Ross’ Theory of Duties
•Service-Dominant Logic of Marketing
•Virtue Ethics
Co-creation of value with customers, especially those who are
impoverished or disadvantaged
•Catholic Social Teaching [human dignity, subsidiarity]
•Habermas’ Discourse Theory
•Kant’s Categorical Imperative [3rd formulation]
•Service-Dominant Logic of Marketing
Investment in future consumption without endangering the
environment
•Catholic Social Teaching [common good, human dignity]
•Classical Utilitarianism
•Sen’s Capability Approach
•Service-Dominant Logic of Marketing
•Sustainability Perspective
Interest representation of all stakeholders, particularly
impoverished customers
•Catholic Social Teaching [common good, subsidiarity]
•Classical Utilitarianism
•Habermas’ Discourse Theory
•Kant’s Categorical Imperative [2nd formulation]
•Rawls’ Difference Principle
•Service-Dominant Logic of Marketing
•Stakeholder Theory
Focus on long-term profit management rather than short-term
profit maximization
•Catholic Social Teaching [common good]
•Classical Utilitarianism
•Service-Dominant Logic of Marketing
•Socially Responsible Investing
•Triple Bottom Line
Sample derivation of IJM element:
“Authentic engagement with non-exploitative intent”
•
•
•
•
•
2nd formulation of Kant’s categorical imperative decrees, “never treat a person as
means to an end merely”.
The “difference principle” of John Rawls implies that actions, policies and
procedures not make those least well off, worse off.
One of Ross’ “prima facie” duties is beneficence which suggests rendering aid to those
in need whenever reasonable.
Stakeholder theory recognizes the claims of all those affected by the organization
not to bear the cost of negative externalities caused by the actions of the firm.
The 3BL measurement of company performance includes “social sustainability “ as
part of its business model; sustainable exchange is typically fair to both parties.
All of these frameworks are suggestive of treating consumers, especially
vulnerable ones, with fairness and without exploitation.
An Integrative Justice Model for Impoverished Markets
VALUE INPUTS
•
•
•
•
•
Authentic engagement with consumers, particularly impoverished ones, with non-exploitive intent
Co-creation of value with customers, especially those who are impoverished or disadvantaged
Investment in future consumption without endangering the environment
Interest representation of all stakeholders, particularly impoverished customers
Focus on long-term profit management rather than short-term profit maximization
BUSINESS
FIRM
EXCHANGE TRANSACTIONS
IMPOVERISHED
MARKET
SEGMENTS
OUTCOMES
• Long-term relationships
• Customer empowerment
• Sustainable business initiatives
• Creation of a fairer marketplace
Santos & Laczniak, “Marketing to the Poor,” Journal of Public Policy & Marketing, Spring (2009)
The IJM as a leadership framework



Key elements of the IJM complement core elements of conventional models
of economic growth with a long-term sustainability perspective that lays
special emphasis on marginalized and impoverished constituents
In postulating a normative ideal, the IJM implicitly informs the
distinctiveness of courses taught at Jesuit Business Schools
Internal strengths to help attain the ideal:


International network of business schools
A strong and vibrant social apostolate sector
Developing leaders for business



It is also true that without leadership, which is sensitive to justice and
service, an unjust social order (e.g. consumer exploitation, ruthless
price manipulation, inefficiency, waste and labour exploitation) can
destroy the social value of the business sector and alienate individual
workers.
The challenge, therefore, is a moral one. Business can be good or bad.
However, as a social institution it cannot be ignored, nor treated
merely as “an economic engine” without value choices.
“Jesuit education is a critical instrument in developing leaders of the
social and economic institutions which shape societies.”
André L Delbecq (1983), “Business Schools in Jesuit Education: FOUR REFLECTIONS.”
Thank you