CSR: Am I My Brother’s Keeper?Giving “Your” Voice To Values

John L. Keifer, JD MBABrazilian Executive Seminar

August 2011

In B-schools and Beyond, Ethics Matter, but the 'Bottom Line' Trumps

(Posted on Huffington Post: 07/20/2012 6:14 pm)

Back Story

• What is it?• What does it add?

Back Story

• What have we come to learn about human happiness!

• What neuroscience teaches us about how humans make decisions!

• What we now know about why we know the right thing to do (even if we do not do it)!

Back Story

• What have we come to learn about human happiness!

• What neuroscience teaches us about how humans make decisions!

• What we now know about why we know the right thing to do (even if we do not do it)!

Dr. Martin Seligman, University of Pennsylvania Institute of Positive Psychology

Lessons

• Life satisfaction truly does come from providing services to others!– The feeling of self-worth and satisfaction are

honest feelings that lasts and gives us a sense of wellbeing (Plato’s concept of Eudemonia)!

• Not all metrics can be stated in numeric or dollar terms when judging costs and benefits!– Doing “wrong” takes its toll on us psychologically!– Doing for others has its “rewards” too!

Back Story

• What have we come to learn about human happiness!

• What neuroscience teaches us about how humans make decisions!

• What we now know about why we know the right thing to do (even if we do not do it)!

Our Decision Process

• It was generally believed by social scientist that-- – people are generally rational; and, – emotions explain most of the occasions when people

depart from rationality.

• Nobel Laureate Daniel Kahneman (a cognitive psychologist) traced systematic errors in thinking to the machinery of cognition itself rather than the corruption of thought by our emotions.

Our Decision Process

• Kahneman’s discussion of heuristics (intuition) and biases has permeated many fields including economics, medicine, law, philosophy, finance, statistics and even military strategy.

• Some popular renderings include:

How Then Are Human Decisions Made?• Neuroscience, added by Functional MRI imaging, has

taught us—• Thought and decision making are not the same thing

necessarily.• Decisions can originate both consciously and

subconsciously. • The actual process of human decision making (our

CPU) lies in our lymbic system.• Our lymbic system lacks any ability to articulate

“reasons.”

Back Story

• What have we come to learn about human happiness!

• What neuroscience teaches us about how humans make decisions!

• What we now know about why we know the right thing to do (even if we do not do it)!

Doing Unto Others• Isocrates: “Do not do unto others what would

anger you if done unto you.” [dates from ancient Babylonia]

• Immanuel Kant: “Act only accordingly to the maxim whereby you can at the same time will that it should become universal law.”

• Jeremy Bentham: “The moral worth of an act is determined by its utility in providing happiness or pleasure as summed among all beings.

“The Story of the Good Samaritan”Luke 10: 25-37

Is This Unique To Humans?• Fransiscus Bernardus Maria de Waal, PhD, is a Dutch primatologist and ethologist.

He is the Charles Howard Candler professor of Primate Behavior in the Emory University psychology department in Atlanta, Georgia.

Reciprocity(fairness)

Empathy(compassion)

“The Story of the Good Samaritan”Luke 10: 25-37

On one occasion an expert in the law stood up to test Jesus. “Teacher,” he asked, “what must I do to inherit eternal life?” “What is written in the Law?” he replied. “How do you read it?”

Luke 10:25-37

He answered, “‘Love the Lord your God with all your heart and with all your soul and with all your strength and with all your mind’; and, ‘Love your neighbor as yourself.’” “You have answered correctly,” Jesus replied. “Do this and you will live.”

Luke 10:25-37

But he wanted to justify himself, so he asked Jesus, “And who is my neighbor?” In reply Jesus said: “A man was going down from Jerusalem to Jericho, when he fell into the hands of robbers. They stripped him of his clothes, beat him and went away, leaving him half dead. A priest happened to be going down the same road, and when he saw the man, he passed by on the other side.

Luke 10:25-37

So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10:25-37

The next day he took out two denarii and gave them to the innkeeper. ‘Look after him,’ he said, ‘and when I return, I will reimburse you for any extra expense you may have.’”

Luke 10:25-37

“Which of these three do you think was a neighbor to the man who fell into the hands of robbers?” The expert in the law replied, “The one who had mercy on him.” Jesus told him, “Go and do likewise.”

Luke 10:25-37

On one occasion an expert in the law stood up to test Jesus. “Teacher,” he asked, “what must I do to inherit eternal life?” “What is written in the Law?” he replied. “How do you read it?”

Luke 10:25-37

• On one occasion an expert in the law stood up to test Jesus. “Teacher,” he asked, “what must I do to inherit eternal life?”

• “What is written in the Law?” he replied. “How do you read it?”

Luke 10:25-37

• He answered, “‘Love the Lord your God with all your heart and with all your soul and with all your strength and with all your mind’; and, ‘Love your neighbor as yourself.’”

Luke 10:25-37

• He answered, “‘Love the Lord your God with all your heart and with all your soul and with all your strength and with all your mind’; and, ‘Love your neighbor as yourself.’”

Luke 10:25-37

He answered, “‘Love the Lord your God with all your heart and with all your soul and with all your strength and with all your mind’; and, ‘Love your neighbor as yourself.’” “You have answered correctly,” Jesus replied. “Do this and you will live.”

Luke 10:25-37

• But he wanted to justify himself, so he asked Jesus, “And who is my neighbor?”

Luke 10:25-37

• But he wanted to justify himself, so he asked Jesus, “And who is my neighbor?”

Luke 10:25-37

In reply Jesus said: “A man was going down from Jerusalem to Jericho, when he fell into the hands of robbers. They stripped him of his clothes, beat him and went away, leaving him half dead. A priest happened to be going down the same road, and when he saw the man, he passed by on the other side.

In reply Jesus said: “A man was going down from Jerusalem to Jericho, when he fell into the hands of robbers. They stripped him of his clothes, beat him and went away, leaving him half dead. A priest happened to be going down the same road, and when he saw the man, he passed by on the other side.

Luke 10:25-37

In reply Jesus said: “A man was going down from Jerusalem to Jericho, when he fell into the hands of robbers. They stripped him of his clothes, beat him and went away, leaving him half dead. A priest happened to be going down the same road, and when he saw the man, he passed by on the other side.

Luke 10: 25-37

In reply Jesus said: “A man was going down from Jerusalem to Jericho, when he fell into the hands of robbers. They stripped him of his clothes, beat him and went away, leaving him half dead. A priest happened to be going down the same road, and when he saw the man, he passed by on the other side.

Luke 10:25-37

• So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10:25-37

So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10: 25-37

So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10:25-37

So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10:25-37

So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10:25-37

So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10:25-37

So too, a Levite, when he came to the place and saw him, passed by on the other side. But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, brought him to an inn and took care of him.

Luke 10:25-37

The next day he took out two denarii and gave them to the innkeeper. ‘Look after him,’ he said, ‘and when I return, I will reimburse you for any extra expense you may have.’”

Luke 10:25-37

“Which of these three do you think was a neighbor to the man who fell into the hands of robbers?”

Luke 10:25-37

“Which of these three do you think was a neighbor to the man who fell into the hands of robbers?” The expert in the law replied, “The one who had mercy on him.”

Luke 10:25-37

“Which of these three do you think was a neighbor to the man who fell into the hands of robbers?” The expert in the law replied, “The one who had mercy on him.” Jesus told him, “Go and do likewise.”

“One cannot define one’s neighbor; one can only be a neighbor.”

Heinrich Greeven, German Theologian and University Professor

Some Research Results

Players on the BBC game show "The Weakest Link" were statistically far less likely to vote against the person standing to either side of them compared to players positioned across the stage. The study lends support to a proximity theory of human relations that suggests we're hardwired to support those closest to us -- literally.

Under conditions in which they couldn't reach consensus over whom to eject, players went out of their way not to vote their immediate neighbors off the show. The less obvious the bad egg, the more reluctant the players were to finger the people beside them -- a pattern Goddard calls "neighbor-avoidance effect.“ What about Hitler?

http://www.theatlantic.com/health/archive/2012/07/protecting-the-joneses-the-weakest-link-is-also-the-farthest-away/259879/#.UARgthIsLjM.email

Which Approach Is More Compelling?

• Orphan children number in the thousands and I am asking for your help and assistance by providing 30 dollars per month to support one such child.

• Would you pay 30 dollars per month to provide Maria, an orphan born with AIDS, a better life?

Conclusions

• Empathy and compassion, and reciprocity and fairness, are part of our humanity.

• There is no such thing as rationality in the traditional sense. Decision making is a far more complex physiological and psychological event than suggested by a simple cost/benefit analysis.

The Art of Distancing Oneself(It’s Above My Pay Grade)

Who’s Your Neighbor• Ben & Jerry’s (B&J) and LaSoul Bakery (employer of

recovering alcoholics and addicts).• Supplied B&J with Apple Pie Frozen Yogurt• Its owner, Rev. James Carter, was able to get bank loan,

based on B&J business, to expand his capacity to supply the new demand and hire more recovering employees.

• Within 2 years, the demand for Apple Pie Frozen Yogurt waned, B&J dramatically reduce its orders from LaSoul and one year later, Ben & Jerry’s canceled all remaining orders.

Who’s Your Neighbor?

• Carter left with debt of $500,000 and little viability.

• The question is: whether Ben & Jerry’s acted in a manner consistent with their image of being a socially responsible company?

Giving Voice to Values

• Rushworth Kidder suggests that most ethical dilemmas fall into four categories or patterns: – “Truth versus loyalty” (conceal deceptive sales

practice)– “Individual versus community” – “Short term versus long term” – “Justice versus mercy”

Some typical rationalizations:• Expected or Standard Practice: “Everyone does this,

so it’s really standard practice. It’s even expected.” • Materiality: “The impact of this action is not

material. It doesn’t really hurt anyone.” • Locus of Responsibility: “This is not my

responsibility; I’m just following orders here.”• Locus of Loyalty: “I know this isn’t quite fair to the

customer but I don’t want to hurt my reports/team/boss/company.”

Counter Considerations• Thinking in the long run as well as the short run. • Considering the situation in terms of the group and

the firm’s wider purpose, rather than in terms of the immediate transaction alone. For example, what behavior enables them to serve their customers best; to manage themselves most efficiently; to manage themselves in the most honest manner; to align incentives of the firm, the sales team and the customers, etc.?

Counter Considerations• Consider the assumed definition of “competitive advantage.” This

definition sometimes seems to follow the old joke about two lawyers pursued by a bear in the woods. One lawyer says to the other, “We’ll never be able to outrun that bear,” and the other replies, “I don’t have to outrun that bear; I just have to outrun you.” Implicit in this view of competitiveness is the assumption that the point of business is conquest, narrowly defined as outrunning the competitors (whether they are external or internal). This model often results in shortsighted, narrow conceptions of managerial purpose. It can be valuable to suggest an alternative model for competitiveness, based upon overall and long-term excellence, rather than merely “outrunning” the competition. This conception can also allow for consideration of how we achieve results, as well as whether we do so.

Counter Considerations• Positioning oneself as an agent of “continuous improvement” as

opposed to the source of complaint. For example, how can we improve this system of incentives and goals to maximize performance while discouraging “gaming” the system?

• Positioning oneself as a source of actionable alternatives rather than “thou shalt not’s:”

• Pointing out addictive cycles that can cause greater and greater pressures and risks, leading to larger and larger values conflicts.

• Considering who we need and can attract as an ally in our efforts. • Considering the costs to each affected party and looking for ways

to recognize and mitigate these in order make our arguments more appealing.

Being Pragmatic

• Neither an idealist or an opportunist be!• Think of morality, ethics, fairness, justice in

directional terms, not as a destination (the myth of human perfection)!

• Belonging, believing and behaving– The case of the American Association of Scientists

and their efforts to develop an common oath

Giving “Your” Voice to Values

• What are the reasons and rationalizations that you need to counter or address?

• What is at stake for the key parties including those with whom you disagree?

• What levers can you use to influence those with whom you disagree?

• What is the most powerful and persuasive response to the reasons and rationalizations you need to address?

CSR: Am I My Brother’s Keeper?Giving “Your” Voice To Values

John L. Keifer, JD MBABrazilian Executive Seminar

August 2011

In B-schools and Beyond, Ethics Matter, but the 'Bottom Line' Trumps

(Posted on Huffington Post: 07/20/2012 6:14 pm)