Sustainably Responsible Leadership and Innovation Building Competence Crossing

Sustainably Responsible Leadership and Innovation Building Competence. Crossing Borders. Prof. Dr. Mathias Schüz mathias. schuez@zhaw. ch / 01. 03. 2016

Questions to Answer … 1. Why do we need sustainably responsible leaders when being innovative? 2. What does sustainable responsibility mean? 3. Which responsibilities does an enterprise have to fulfill? 4. Which capabilities should responsible leaders develop in order to be more responsibly innovative? 2

What is innovation? According to Peter Drucker innovation is more than invention! Innovation • Creates wealth through new products or services • Turns societal needs into business opportunities • Produces profitability Innovation has a mental, social and technical-economic aspect Source: Mathias Schüz: Grundlagen ethischer Unternehmensverantwortung. Zürich: vdf. Hochschulverlag der ETH 2013.

Why do we need Innovation? Coping with Dynaxity Crises, Worldproblems, Needs Break-Down of Currencies Global Debts Destruction of Climate Crises Ecosystems Change Population Growing Explosion. Surveillance Expectations Society Economic Migration Increasing Flows of Transparency Refugees Declining Ressources Source: Mathias Schüz: Grundlagen ethischer Unternehmensverantwortung. Zürich: vdf. Hochschulverlag der ETH 2013.

Why do we need sustainably responsible leaders? Transparency, Stakeholder Expectations, Declining Resources Authorities NGOs Whistleblower Examples: • Hydro Dams in Rain (LOHAS-)Consumers Suppliers Aktivisten Forests (e. g. . Sawarak or Amazonas) • Shell’s «Brent Spar» • Zurich Airport Expansion • VW Emission Scandal Radical Transparency (e. g. Petrobras or Siemens) • Responsibility for the Supply Chain (e. g. Nike vs. Apple) • Socially Responsible Investors Investing (SRI) • LOHAS-Bewegung Increasing Stakeholder Expectations Medien Employees New. Technologies: Google, Facebook, Twitter, Youtube, Avaaz, Declining Resources Social Justice Uneven Availability of Energy Raw Material Air/ Soil Quality Rain Forests Innovative Ideas Food Security Biodiversity Climate Protection Drinking Water Visions/ Strategies Source : following to Izeusse Dias Braga, CCO of Petrobras, 2012 1 March 2016 Examples: • Dealing with Corruption Enhancing Capabilities of Responsible Leaders, Prof. Dr. M. Schüz 5 Examples: • Mining of Rare Earths (e. g. Glencore) • Genetically Modified Organism (GMO) (e. g. Monsanto) • Marketing of Drinking Water (e. g. Nestlé)

Is VW’s Emission Scandal the result of an Click to add title irresponsible innovation? http: //www. theatlantic. com/business/archive/2015/09/ volkswagen-scandal-cheating-emission-virginiaepa/407425/ http: //money. cnn. com/2015/09/ 22/investing/volkswagenscandal-stock/ 10 th of November 2015 http: //money. cnn. com/2015/09/22/investing/volkswagen-scandal-stock/ International Business and Management, Prof. Dr. M. Schüz 6

Example for Transparency: VW’s Emission Scandal – Click to add title Irresponsible innovative problem-solution „Frankly spoken, it was a technical problem. We made a default, we had a … not the right interpretation of the American law. And we had some targets for our technical engineers, and they solved this problem and reached targets with some software solutions which haven’t been compatible to the American law. That is the thing. And the other question you mentioned — it was an ethical problem? I cannot understand why you say that. “ Matthias Müller, CEO Volkswagen Group 10 th of November 2015 International Business and Management, Prof. Dr. M. Schüz 7

Overview : 1 March 2016 Enhancing Capabilities of Responsible Leaders, Prof. Dr. M. Schüz 8

What does „responsibility“ mean? Subject S = e. g. Corporation ges jud ses cau is responsible to for Authorities responds to which Consequences question? A 1, 2 …n C 1, 2 … m 1 March 2016 Enhancing Capabilities of Responsible Leaders, Prof. Dr. M. Schüz 9

Click Howto faradd do title enterprises perceive authorities‘ claims? Goods, Services, Reputation, Values (chances for whom? ) Output filter Behavior STRUCTURE Organisation STRATEGY Goals Vision/ Mission/ Limited Input Resources/ Authorities‘ claims Input filter Management Output Entropy, Waste, Mistrust (risks for whom? ) Culture & Identity/ Virtues resp. Vices Underworld – Shadow-Side How do enterprises react to the environmental Context? Through responding to the stakeholders‘ demands as far as they are „able to respond“ to feedbacks from the environment cf. : OSTO-Model of Hanna 1988, Rieckmann 1982 10

Click to respond add title to stakeholders‘ demands systemically? How to Adaptive or non-adaptive to Self-affirming feedback (narcisstics) Quality feedback (technics) Stakeholder feedback (ethics) Ecological feedback (aesthethics) Virtual feedback of future generations (pronoetics) 11

Click add title of Organizations Deepto. Structure Formal aspects rationale, visible aspects Underworld: affective, hidden aspects • • • • Planning Organizational chart Job description Guidelines, handbooks etc. Distribution of power Personal connections Values Attitudes Personal Needs Expectations like Power Games Personal Motivations Corporate Culture Hidden Agendas Self-enrichment Strategies Informal aspects from: Vahs, Organisation, 2004, p. 108 The Iceberg Phenomenon of Organizations 10 th of November 2015 International Business and Management, Prof. Dr. M. Schüz 12

Triple Corporate Responsibility Source: Mathias Schüz 13

How far can corporate responsibility reach? Source: Mathias Schüz 14

What does „Sustainability “ mean? Globally accepted definiton of the Brundtland-Commission: “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. ” Source: Our Common Future – Towards Sustainable Development, chap. 2, World Commission on Economic Development (WCED) or Brundtland Commission, 1987 http: //www. un-documents. net/ocf-02. htm. I

What Does „Sustainability“ Mean? Meaning and questions to sustainability: “Sustainable development should satisfy current requirements so that future generations are not disadvantaged. ” ? 02. 12. 2020 Prof. Dr. Mathias Schüz: Business Ethics ? 16

Click add„sustainable title What to does corporate responsibility“ mean? Sustainable corporate responsibility is the skillful use of valuable responses satisfying the following requirements: requirements of the natural environment requirements of the social environment requirements of the economical environment 1. 2. 3. 4. 1 March 2016 Is my action or decision economically useful? Is my action socially acceptable? Is my action ecologically sensible? Is my action sustainably benefitial for future generations? Enhancing Capabilities of Responsible Leaders, Prof. Dr. M. Schüz 17

Click to add title Sustainability and Responsibility 02. 12. 2020 How to link „Corporate Responsibility“ and „Sustainability? “ Sustainability is the time dimension of responsibility (responding to future generations) Necessity of Sustainable Corporate Responsibility! Prof. Dr. Mathias Schüz: Business Ethics 18

A New for Sustainable Corporate Responsibility Click to. Model add title Corporate Social Responsibility = Business Ethics 19

A New for Sustainable Corporate Responsibility Click to. Model add title 20

Competences of responsible leaders THE VISIONARY 1 THE COORDINATOR 1 Competence of „Knowing-Why“ 3 Serves the ideas, does the right things, integrates the parts into the whole based on: Spiritual/ Aesthetic/ Intuitive Intelligence (SQ) 5 Competence of „Knowing-Whom“ 3 Serves the people, respects the stakeholders as partners based on: Emotional/ Ethical/ Social Intelligence (EQ) 4 THE DOER 1 Competence of „Knowing-How“³ Serves the objectives, does the things right based on: Cognitive Intelligence (IQ) 21

Survey of 41 Top-Leaders: Reasons for their Success Source: Angela Serratore, 2012 22

Click to add Skills title Managerial THE VISIONARY 1 THE COORDINATOR 1 Competence of „Knowing-Why“ 3 Serves the ideas, does the right things, integrates the parts into the whole based on: Spiritual/ Aesthetic/ Intuitive Intelligence (SQ) 5 Competence of „Knowing-Whom“ 3 Serves the people, respects the stakeholders as partners based on: Emotional/ Ethical/ Social Intelligence (EQ) 4 Innovative Solutions through structure and process organisations Technics: Finding efficient means to an end! Tasks of Management: Doing the things right! THE DOER 1 Competence of „Knowing-How“³ Serves the objectives, does the things right based on: Cognitive Intelligence (IQ) 23

Click toofadd Survey 41 title Top-Leaders: Statements for Interpersonal Skills Source: Angela Serratore, 2012 24

Capabilities of the Coordinator THE COORDINATOR 1 Competence of „Knowing-Whom“ 3 Serves the people, respects the stakeholders as partners based on: Emotional/ Ethical/ Social Intelligence (EQ) 4 Innovative Solutions fostered by heterogene groups, blocked by homogene groups due to self-enforcing feedbacks 25

Click to add Survey of 41 title Top-Leaders: Statements for Reflective Skills Source: Angela Serratore, 2012 26

Capabilities of the Visionary Being Sensible For … Innovative Solutions through grasping opportunities by the forlock intuitively … THE VISIONARY 1 Competence of „Knowing-Why“ 3 Serves the ideas, does the right things, integrates the parts into the whole based on: Spiritual/ Aesthetic/ Intuitive Intelligence (SQ) 5 „God Spot“ in Temporal Lobe, asking ultimate questions, according to neurologist Ramachandran, UCL, 1997 27

Typestoofadd Leaders Click title 28

Example: Capability Profile of an Innovator Click to add title 29

Purpose: Balancing Click to add title the Dimensions of SCR Source: M. Schüz , Grundlagen ethischer Unternehmensverantwortung, Zürich: vdf-Hochschulverlag 2013. 30

Conclusion: Click to add title Innovations have to be taken sustainably responsible in order to support manking solving our world-problems, thus to respond …: • to technical feedback [right – wrong] • to ethical feedback [good – evil] • to aesthetical feedback [meaningful – meaningless] • to pronoetical feedback [chancy – risky]. 31

Final It is better to start slowly than not to move … Click Note: to add title A snail moves endlessly faster than men standing still! Thank you very much for your attention! Any Questions? 32