Post on 19-Dec-2015
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THE AUTHENTIC ENTERPRISE Putting $$$ on Green
Roger BoltonAPCO Worldwide
Zicklin Center for Corporate IntegrityCorporate Communications International Baruch CollegeNovember 7, 2008
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“All business in a democratic society begins with public permission and exists by public approval.”
“All business in a democratic society begins with public permission and exists by public approval.”
ARTHUR W. PAGE
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THE WORLD IS CHANGING
Arthur W. Page Society White Paper:
“The Authentic Enterprise”
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THE WORLD IS CHANGING
Rapidly changing context for global business
At stake:
Ability to manage relationships
Competition over identity
DRIVERS OF CHANGE
Arthur W. Page Society White Paper:
“The Authentic Enterprise”
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DRIVERS OF CHANGE
Stakeholder Empowerment
Globalization
DigitalNetwork
Revolution
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GLOBALIZATIONInternational Corporation
Multinational Corporation
Globally Integrated Enterprise
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GLOBALIZATION
The “Flat World” is reshaping the corporation.
Shifting from hierarchical, monolithic, multinational …
… to horizontal, networked and globally integrated.
Operations are componentized, virtualized and distributed over an ecosystem of business relationships.
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THE DIGITAL NETWORK REVOLUTION
Web 2.0
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108 million blogs, increasing by 175,000 daily
Nearly one billion camera phones worldwide
Second Life – 14 million people, 80 countries
YouTube – 100 million videos/day
THE DIGITAL NETWORK REVOLUTION
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STAKEHOLDER EMPOWERMENT
Common interests
Expertise
Access to information
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STAKEHOLDER EMPOWERMENT
A new “planetary conversation is building dynamic new communities. It’s a global dialogue powered by new technologies.”
-- Ray Kotcher, CEO of Ketchum
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STAKEHOLDER EMPOWERMENT
COMPANY
EMPLOYEES
ACADEMICCOMMUNITY
GOVERNMENT MEDIA
INVESTORS CONSUMERS
LOCALCOMMUNITY
NGOs
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STAKEHOLDER EMPOWERMENT
COMPANY
EMPLOYEES
ACADEMICCOMMUNITY
GOVERNMENT MEDIA
INVESTORS CONSUMERS
LOCALCOMMUNITY
NGOs
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DRIVERS OF CHANGE
Implications for enterprises:
Threats … Influential new stakeholders Demands for transparency Less control over messaging, segmentation Risks to brand and reputation Regulatory activism
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DRIVERS OF CHANGE
Implications for enterprises:
And opportunities … To reach stakeholders To advance policy interests To build brand To enhance reputation
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THE AUTHENTIC ENTERPRISE
Arthur W. Page Society White Paper
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THE AUTHENTIC ENTERPRISE
In this dynamic and radically open environment, a company must answer:
What business are we in? What markets do we serve? What differentiates us? What do we value? What will endure?
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In place of the voice of “authority”, stakeholders demand proof of authenticity
In place of the voice of “authority”, stakeholders demand proof of authenticity
The enterprise must be grounded in a sure sense of what defines and differentiates it (mission, values, principles, beliefs).
And those definitions must dictate consistent behavior and actions.
THE AUTHENTIC ENTERPRISE
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A CALL TO ACTION
Arthur W. Page Society White Paper:
“The Authentic Enterprise”
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To be authentic an enterprise must:
Define and instill company values
Build and manage multi-stakeholder relationships
Enable its people with “new media” skills and tools
Build and manage trust
A CALL TO ACTION
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THE VALUE OF VALUES
Arthur W. Page Society White Paper:
“The Authentic Enterprise”
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THE VALUE OF VALUES
Our Credo
We believe our first responsibility is to the doctors, nurses and patients,
to mothers and fathers and all others who use our products and services.
In meeting their needs everything we do must be of high quality.
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THE VALUE OF VALUES
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THE VALUE OF VALUES
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Top down Bottom up Formal Informal Part of the vernacular
THE VALUE OF VALUES
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STAKEHOLDER RELATIONSHIPS
Arthur W. Page Society White Paper:
“The Authentic Enterprise”
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Aetna in the 90s
Put customers and shareholders first Strong form managed care
– Referrals
– Pre-authorizations
– Denials
– “Mother, may I?”
STAKEHOLDER RELATIONSHIPS
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Anti Managed Care Backlash
Physicians, patients rebelled Federal Patients’ Bill of Rights (PBOR)
State mandates Jay Leno and David Letterman Helen Hunt and Jack Nicholson,
“As Good As It Gets”
STAKEHOLDER RELATIONSHIPS
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New CEO - A Doctor New values – The Aetna Way Balance the needs of ALL constituents New approaches:
– Disease management
– MedQuery
– CDHC Settle lawsuit
STAKEHOLDER RELATIONSHIPS
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The New York TimesMay 23, 2003
STAKEHOLDER RELATIONSHIPS
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“The once notoriously stingy and fiercely unpopular company is now frequently cast as the country's most physician-friendly insurer.”
BusinessWeek, Jan. 4, 2006By Jessi Hempel and Diane Brady
STAKEHOLDER RELATIONSHIPS
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How do you build relationships with disparate stakeholders?
Be transparent Listen Look for common ground Be willing to change
STAKEHOLDER RELATIONSHIPS
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ENABLE NEW MEDIA SKILLS
Arthur W. Page Society White Paper:
“The Authentic Enterprise”
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Personal experiences with company’s employees 2 1 1 1 2 1 1 1.3
Analysts or professional organization opinions 1 2 3 2 1 2 2 1.9
Opinions of colleagues, peers, or friends 3 3 2 3 5 4 3 3.3
What companies are doing for others in your industry6 8 4 7 4 3 6 5.4
Company websites 5 6 5 8 3 5 10 6.0
White papers, research, or case studies 4 4 6 4 7 9 8 6.0
Articles in magazines or newspapers 7 9 10 9 8 6 4 7.6
Online sources, not directly from the company 10 7 7 6 9 8 7 7.7
Tradeshows, conferences, industry forums, events 8 5 9 5 6 10 11 7.7
Influence Source Brazil Ger Spain Italy India Sing JapanAverage
Rank
News stories on TV or radio 11 11 12 12 10 7 5 9.7
Advertising 9 10 11 10 11 11 9 10.1
Direct marketing (e-mail or mail) 12 12 8 11 12 12 12 11.3
Biggest Influence on Opinion about IBM
ENABLE NEW MEDIA SKILLS
IBM Survey of executives in seven countries
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We continue to advocate IBMers' responsible involvement today in this new, rapidly growing space of relationship, learning and collaboration.
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• In the spring of 2005, IBMers used a wiki to create a set of guidelines for all IBMers who wanted to blog. These guidelines aimed to provide helpful, practical advice – and also to protect both IBM bloggers and IBM itself, as the company sought to embrace the blogosphere. The guidelines were endorsed by IBM, posted internally and then shared publicly by our bloggers. Since then, IBMers by the tens of thousands have relied on these guidelines when blogging, as well as when engaging in many other forms of online publishing, discussion and interaction.
• Now, three years have passed, and many new forms of social media have emerged. So this spring we turned to IBMers again, to re-examine our guidelines and determine what, if anything, needed to be modified. The result has been one new guideline, regarding online social networks, and a broadening of the existing guidelines’ scope to include other forms of “Web 2.0” social media.
1. Know and follow IBM’s Business Conduct Guidelines.2. 2. Blogs, wikis and other forms of online discourse are individual interactions, not corporate communications. IBMers are personally
responsible for their post. Be mindful that what you publish will be public for a long time – protect your privacy.3. Identify yourself – name and, when relevant, role at IBM – when you discuss IBM or IBM-related matters. And write in the first person.
You must make it clear that you are speaking for yourself and not on behalf of IBM.4. If you publish a blog or post to any website outside of IBM and it has something to do with work you do or subjects associated with
IBM, use a disclaimer such as this: “The postings on this site are my own and don’t necessarily represent IBM’s positions, strategies or opinions.”
5. Respect copyright, fair use and financial disclosure laws.6. Don’t provide IBM’s or another’s confidential or other proprietary information. Ask permission to publish or report on conversations
that are meant to be private or internal to IBM.
Community-updated blogging guidelines to be inclusive of all forms of social computing: blogs, social networks, wikis, virtual worlds, etc.
2008 IBM Social Media Guidelines
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Inside out Outside in R&D Internal consensus
ENABLE NEW MEDIA SKILLS
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BUILDING TRUST
Arthur W. Page Society White Paper:
“The Authentic Enterprise”
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“Trust no one.”
-- The Wall Street Journal
BUILDING TRUST
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1890 – Sherman Act
1897 – ICC
1906 – FDA
1914 – Clayton Act
1934 – SEC, FCC
1970 – OSHA, EPA
1972 – CPSC
2002 – SOX
BUILDING TRUST
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Emerging “social contract”
1889 – Carnegie, “Gospel of Wealth”
1931 – Berle and Dodd, Harvard Business Review
1960 – Packard – “a contribution to society.”
1970 – Friedman – “Profits.”
1975 – Filer Commission
BUILDING TRUST
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Emerging “social contract”
Quality products and services at reasonable prices
Steady employment in a healthy and safe environment
Support for community institutions
BUILDING TRUST
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Breaking the contract
1980s – Leveraged buyouts, re-engineering, outsourcing, short-termism, executive compensation
1987 – Gecko – “Greed is good.”
BUILDING TRUST
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Enron WorldCom HealthSouth TYCO HP MSO UnitedHealth
– Lay & Skilling– Ebbers & Fastow– Richard Scrushy– Dennis Kozlowski– Patricia Dunn– Martha Stewart– Bill McGuire
BUILDING TRUST
Breaking the contract
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BUILDING TRUST
USAToday/Gallup, December 11, 2006.
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Trust in Institutions to Operate in Society’s Best Interest
Armed forces +43% NGOs +27% Education system +26% Health system +17% Trade unions/labor +2% Legal system -2% Global companies -9%
Accenture The Business of Trust, World Economic Forum Voice of the People Forum
* Net Rating = % trust - % distrust
BUILDING TRUST
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DRIVERS OF CHANGE
0
10
20
30
40
50
60
Me Acad. Doc NGO CEO Blog
U.S. Credible SpokespersonsSource: Edelman Trust Barometer
2008
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Corporate philanthropy
Cause marketing
Environmental responsibility
Good labor standards
BUILDING TRUST
Corporate Social Responsibility
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Focus on the core contribution that the enterprise makes to society
Align business objectives with the public interest
BUILDING TRUST
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BUILDING TRUST
Aetna Chairman’s Initiatives
• Genetic testing
• Disparities in health care
• Care at the end of life
• Depression management
GE Ecomagination
ITT Global Water Leadership
GM Volt
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THE AUTHENTIC ENTERPRISE
Arthur W. Page Society White Paper
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“All business in a democratic society begins with public permission and exists by public approval.”
“All business in a democratic society begins with public permission and exists by public approval.”
ARTHUR W. PAGE
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How do you get “public permission” and “public approval?”
By being an authentic enterprise …
… that operates in the public interest – doing the right thing for all stakeholders –
... and does it consistently – up and down the entire organization.
THE AUTHENTIC ENTERPRISE
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Join the dialogue at Page Turner:
http://www.awpagesociety.com/awp_blog/
http://www.awpagesociety.com
THE AUTHENTIC ENTERPRISE
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THE AUTHENTIC ENTERPRISE Putting $$$ on Green
Roger BoltonAPCO Worldwide
Zicklin Center for Corporate IntegrityCorporate Communications International Baruch CollegeNovember 7, 2008