www.philosophie-management.comwww.philosophie-management.com

What are innovators

responsible for ?

Responsibilization & Innovation

1. What means “responsible for” ?

2. What means “innovation” ?

What are innovators responsible for ?

EC’s proposal

“We must take

shared responsibility,

without being forced to lay blame

nor claim full control”

Source: Taking European Knowledge Society Seriously, p. 16

What means “responsible for” ?

Hart’s view

1. Responsibility of role

2. Causal responsibility

3. Subject responsibility

4. Responsibility-capacitySource: Hart : Punishment & Responsibility

What means “responsible for” ?

Plural & fragmented concept

No coherent system

Source: Toddai

What means “responsible for” ?

1. Ethic of conviction vs. Ethic of responsibility

2. Simple vs. Complex responsibility

3. Punishment vs. Guarantee

4. Assigned vs. Constructed

5. “We” vs. “I” as subjects of responsibility

Social vs Technological ?

Example of Innovative Steam Engine :

assimilation of existing knowledge & cross-fertilization of ideas

1. Watch making (control mechanisms)

2. Brewing (Boilers)

3. Cannon (Piston barrels)

4. Social changes

Mutual shaping of the social & technical

in processes of innovation

What means “innovation” ?

From a conventional view of innovation

towards a model of social innovation ?

What means « innovation » ?

People Challenge

Process Goal

1. Precautionary principle ?

Responsibilization & Innovation

2. Co-regulation ?

3. From CSR to CSO ?

4. Socratic dialogue ?

www.philosophie-management.comwww.philosophie-management.com

ledoux.laurent@gmail.com

Dynamic – How CSR is evolving in a globalized eco ?

2001

GlobalCompact

corporatesbecome world citizens

Time

“Coherency”of the

coregulation system

Corporates’emancipationfrom states

Politizationof comsumption

Voluntaryadoption of codes

of conducts

Growthof surveillance

& social controls’web

Empowermentof 3rd parties byStates & Judges

Proliferationthrough reputation

& transparency

Transfer of States’ duties to

corporates

Regulatory innovatio

n process

Highly stylised process*:

in reality these trends

overlap each otherHighly stylised process*:

in reality these trends

overlap each other

«Formally»

but self-fulfillin

g

prophecy«Formally»

but self-fulfillin

g

prophecy

EffectivelyEffectively

* Source: “Responsabilité sociale des entreprises et co-régulation”, by Berns & al, 2007

2003

Nikevs. KaskyConsumers’

CSR concernslegally recognized

SoftSoft

HardHard

Evolution today?

From CSR to CSO

7

Step 7: Measuringand reporting

Step 1: Identifyingthe Triggers

Step 2: Scopingwhat matters

Step 3: Making thebusiness case

Step 4: Committing to action

Step 5: Integratingand gatheringresources

Step 6: EngagingStakeholders

7 steps to CSO

Responsibility : the condition of our humanity

Potential sources to support ethical decision-making

Codes of conducts &Mission statements

Legalduties

Heuristics(«sleep-test» rules)

Moral or ethicalprinciples

Institutional structureFixity & consistency

Individual processesAdaptability & responsiveness

Results“Doing good”

Principles“Doing right”

VirtueEthics

(Aristotles, Gilligan,…)

DevelopmentEthics

(Etzioni, Covey,…)

DeontologicalEthics

(Kant, Rawls,…)

TeleologicalEthics

(Bentham, Mill,…)

A framework for ethical theories

Source: Fisher & Lovell (2003); adapted by LL

The Texas Instrument Ethics Quick Test (2001)

Is the action legal?

Does it comply with TI values?

If you do it, will you feel bad?

How will it look in the newspaper?

If you know it’s wrong, don’t do it!

If you’re not sure, ask.

Keep asking until you get an answer.

Ask yourself these questions concerning the decision you wish to take

4. Light-of-day test. Would I feel good or bad if others (friends, family, colleagues) were to know of my decision and action?

5. Virtuous mean test. Does my decision add to, or detract from, the creation of a good life by finding a balance between justice, care and other virtues?

Deontological ethics

6. Veil of ignorance/Golden Rule. If I were to take the place of one of those affected by my decision and plan would I regard the act positively or negatively?

7. Universality test. Would it be a good thing or a bad thing if my decision and plan were to become a universal principle applicable to all in similar situations, even to myself?

Development ethics

8. The communitarian test. Would my action and plan help or hinder individuals and communities to develop ethically?

9. Self-interest test. Do the decision and plan meet or defeat my own best interests and values?

Teleological ethics

11. Utilitarian test. Are the anticipated consequences of my decision and plan positive or negative for the greatest number?

12. The discourse test. Have the debates about my decision and plan been well or badly conducted? Have the appropriate people been involved?

3. Hedonistic or intuitive test. Does my decision correspond with my gut feeling and my values? Does it make me feel good?

Corporate credos & mission statements

Legal duties

2. Organisational test. Is my decision in accordance with my organisation’s rules of conduct or ethics

1. Legalist test. Is my decision in accordance with the law?

Virtue ethics

+/- Veto

Respect of ethical principles

Heuristics

10. Consequential test. Are the anticipated consequences of my decision and plan positive or negative?

12 tests filter to decideTrigger

* Synthesis based on the texts from André Comte-Sponville, Marcel Conche & François Jourde

* Synthesis based on the texts from André Comte-Sponville, Marcel Conche & François Jourde

Economic, technical & scientific orderPossible vs. Impossible

(Natural and rational Law)

Economic, technical & scientific orderPossible vs. Impossible

(Natural and rational Law)

Juridical & political orderLegal vs. Illegal

Juridical & political orderLegal vs. Illegal

Moral orderRight vs. Wrong

(Universal or universalisable duties)

Moral orderRight vs. Wrong

(Universal or universalisable duties)

limits

limits

limitscompletes

Ascending hierarchy forindividuals

Ascending hierarchy forindividuals

Ethical orderGood vs. Bad

(Self, subjective or relative Will)

The 4 orders & the tensions between individual & group

Descending hierarchyfor groups

Descending hierarchyfor groups

WisdomsWisdomsSpiritualities

Metaphysics(secular or religious)

SpiritualitiesMetaphysics

(secular or religious)

possibly induces

Time

Content richness of

the CSR concept

Source : Jean Pasquero (2005), adapted by LedouxSource : Jean Pasquero (2005), adapted by Ledoux

PhilanthropyGrants & corporate patronage

SollicitudeEmployees’ needs

Environmental nuisance limitPriority given to the environment

Classical eco.

(18th century)

Traditional eco.

(19th c.)Beg. of 20th c.

1960’s

Social responsiveness« Societal management » system

Ethical rectitudeCodes of conduct

Performance reportingTriple balance sheet

Citizen participationProactive «engagement»

1970’s 1990’s Beg. of 21th c.

Dynamic – How has the CSR concept evolved so far?

Efficient management(Technical skills)

8 components of CSR nowadays

Evolution so far?

Low-Income

Markets(base of the pyramid)

Wealthy

Emerging Middle Class

800

1,500

4,000

>$15,000

$1,500-15,000

<$1,500

Purchasing Power parity in U.S. Dollars

Population in Millions

Source: Adapted from CK Prahalad and S. Hart (with assistance from Ted London), 2002. “The Fortune at the Bottom of the Pyramid”. Strategy= Business, 26 (2002): 54-67.

Motivation – Base of the global pyramid?

Strategy:Clean technologyDevelop sustainablecompetencies for the future

Business benefits:Innovation & Repositioning

Strategy:Base of the PyramidDev. a strategy to meet the base’s needs

Business benefits:Growth & Trajectory

Strategy:Risk prevention for populat.Mimimize waste & toxic emissions from bus. proc.

Business benefits:Cost & Risk reduction

Strategy:“Guidance Produit” (Product Stewardship)Integrate stakeholders’ views in bus. processes

Business benefits:Reputation & Legitimacy

Drivers• Clean Tech. • Footprint• «Disruption»

Drivers• Pollution• Consumption• Waste

Drivers• Population• Poverty• Inequalities

Drivers• Civil society• Transparency• Connectivity

NurturingInternalcapabilities

Engaging external

constituencies

Managing today’s business

Building tomorrow’s opportunities

Motivation – 4 axes of a sustainable business strategy?

Source: Adapted from S. Hart and M. Milstein, 2003. “Creating Sustainable Value” Academy of Management Executive, 17(2) (2003): 56-69

“Sustainable”

strategy

“Sustainable”

strategy

Are ethics or corporates instrumentalized?

Protestantethos

Protestantethos

Birth of

modernCapitalism

Birth of

modernCapitalism

Time

According to Benjamin Barber in «Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole», 2007; See also Anne Salmon’s analysis in « Ethique et ordre économique : une entreprise de séduction », 2002

Where do we go?

ConsumeristCapitalism

ConsumeristCapitalism

PromotionOf a childish ethic

PromotionOf a childish ethic

Post-capitalistEthic

Post-capitalistEthic

Rise of the post-capitalist economy

Rise of the post-capitalist economy

?Progressist

ethosProgressist

ethos

Expansion of

industrial Capitalism

Expansion of

industrial Capitalism

Step 7: Measuring and reportingFocusHow to measure and report on issues identified in the following steps. How to track the progress of actions identified and agreed to be necessary during progression through the seven steps.

OutputsIdentification of what data to measure and reportA summary of actions requiredA framework for tracking progress on agreed actions

Step 1: Identifying the TriggersFocusHow a combination of changes in the external environment and heightened expectations from stakeholders cause triggers that impact business. How these triggers can pave the way for a revision of business strategies and operational practices.

OutputsIdentification of potential triggers caused by CSR factors in the external environmentIdentification of potential triggers prompted by stakeholders An assessment of the likely impact of these triggers on the businessting

Step 6: Engaging StakeholdersFocusHow to engage stakeholders in the shaping and delivery of business strategies

OutputsAn assessment of how proposed strategies impact stakeholders, and vice versaIdentification of the roles required of stakeholders to enable implementation of the strategiesIdentification of the necessary actions needed to ensure the desired roles are undertaken

Step 2: Scoping what mattersFocusHow to assess the potential impact of key triggers on business strategies. How to generate revised strategies.

OutputsIdentification of potential business strategiesA revision of the strategies in light of stakeholder impacts and inputsFurther refinement of the strategies taking into account current market and operational issuesA ranking of the strategies based on possible importance for the business

Step 5: Integrating and gathering resourcesFocusHow to integrate aspects of CSR and other operational requirements that emerge from reviewing business strategies. Consideration of resource implications.

OutputsAn assessment of resources needed to implement proposed strategies and operational changesIdentification of resource gaps and potential sources

Step 3: Making the business caseFocusHow to build the business case for the proposed business strategies, informed by the marketing mix, organisational considerations and by overall corporate goals and business drivers.

OutputsAn analysis of the impact of the strategies on revenues & costs, informed by marketing mix & organisational considerationsAn analysis of the alignment between proposed strategies, key business drivers and corporate goalsAn assessment of how the proposed strategies fit with organisational cultureA ranking to identify the most attractive strategies

Step 4: Committing to actionFocusThe implications of and for proposed strategies in light of organisational values, leadership style and governance arrangements.

OutputsAn assessment of the implications of proposed actions on corporate values and leadership – and vice versa An assessment of the implications for governance and management arrangements An identification of appropriate public commitments to be made and communications signals to be given

7 steps to CSO