People. Planet. Profit.
Just a slogan?
20th Lismullin Leadership Forum
Friday, April the 27th
Compensation Programs
Required and Expected by the society
-New infrastructures for local population
- New services (e.g. school bus)
- Formal priority in hiring locals
- Ad hoc educational programs
- Green Projects (reforesting)
20th Lismullin Leadership Forum
Friday, April the 27th
Compensation Programs: Example 1
Alpha is an European multinational firm. By law it is required to manage
about 30 different compensation programs per year. During a consulting
project, it was discovered that the CEOs’ of 12 national subsidiaries have
independently undertaken other 15 different compensation programs.
Alpha spends on average 14 million euro/year in compensation programs
plus the equivalent of 4 full time employees. It was discovered that these
programs are not taken seriously by top and middle management.
Money and HRs are invested without serious careful analysis…
“This is a lot of money… what’s the best thing that a company like us
should do?”
20th Lismullin Leadership Forum
Friday, April the 27th
Compensation Programs: Example 2
Main features
Crest length (m)
505
Maximum height(m)
123
Concrete volume (m³)
700.000
Excavation volume (m³)
560.300
Spillway maximum discharge (m³/s)
Total Cost (million euro)
20th Lismullin Leadership Forum
Friday, April the 27th
5.000
500
Questions
-It seems that AES' CSR perspective is changing. How? Why? (see page 12-13 and
exhibit 5)
- Given their new experience and their particular geographical positioning, should they
change their CSR perspective/strategy?
- What should be most important things for a firm working in emerging countries? The
environment, poverty, both? Other things?
- AES decided to decentralize the CSR decisions of Orissa Project, was that a proper
decision? What are pros and cons associated with such decision?
- What would you do ? PC+ social projects? PC+ scrubbers & burners or insisting with
the CFB? Please, find a good argument to sustain your point of view!
20th Lismullin Leadership Forum
Friday, April the 27th
Some Cognitive Problems: Liminality
What happens if you move from … to … ?
Problems in understanding the “rules of the game”
1. Decision Making
2. Negotiation
3. Qualitative and quantitative analyses
Liminality: cognitive confusion that occurs when a person moves from
a place to another and the two have very different social norms
20th Lismullin Leadership Forum
Friday, April the 27th
Compensation Programs: Selection Criteria / 1
Space/Nearness
Effectiveness
PC+ social
CFB
CFB
PC+ social
Time
20th Lismullin Leadership Forum
(Local) Necessity
Friday, April the 27th
Compensation Programs: Selection Criteria / 2
Space/Nearness
Effectiveness
+
+
+++
++
-
+++
Time
20th Lismullin Leadership Forum
-
+
(Local )Necessity
Friday, April the 27th
Compensation programs
Internal references
(strategic plan, values,
mission, etc.)
- Cost benefit (internal vs. External)
- Time vs. space neareness
- Necessity vs. Effectiveness
- Relatedness to business activities
- Etc.
Criteria
Noise…
Optimal
Compensation
Program
Stakeholders
(Needs, expectations )
20th Lismullin Leadership Forum
Friday, April the 27th
Positioning in the global market
29 countries on five continents
132 generation plants
$14 billion annual revenues
A global workforce of 27,000
20th Lismullin Leadership Forum
Friday, April the 27th
Take aways
1. CSR positioning: +opportunities & + strategic problems
2. Geo diversification: replication strategies
3. Geo diversification: attention to liminality
4. Criteria for stakeholder engagement
As always… Thanks !!!
20th Lismullin Leadership Forum
Friday, April the 27th
Techn Appendix:
1. Large number of combustibles (not only
coal)
2. Low emission of nitric oxides and the
possibility of removing sulfur in a simple
manner by using limestone as bed
material.
20th Lismullin Leadership Forum
Friday, April the 27th