Professional Documents
Culture Documents
SMU-PPT - Day 2
SMU-PPT - Day 2
Towards ethical
▪ Regulations for promoting corporate fairness, standards
transparency and responsibility Corporate
(Chairman World Bank) Regulations-based
view
Corporate governance as an accountability structure
10 PRINCIPLES
HUMAN RIGHTS
1: Businesses should support and respect the protection of internationally proclaimed human rights;
2: make sure that they are not complicit in human rights abuses.
LABOUR
3: Businesses should uphold the freedom of association and the effective recognition of the right to collective
bargaining;
4: the elimination of all forms of forced and compulsory labour;
5: the effective abolition of child labour; and
6: the elimination of discrimination in respect of employment and occupation.
ENVIRONMENT
7: Businesses should support a precautionary approach to environmental challenges;
8: undertake initiatives to promote greater environmental responsibility; and
9: encourage the development and diffusion of environmentally friendly technologies
ANTI-CORRUPTION
10: Businesses should work against corruption in all its forms, including extortion and bribery.
Why does CSR need transparency in its political activities?
How does this shift impact or changes Business Ethics & CSR
across complex, multinational (informational and legal) political and economic ecosystems?
Digital platforms revolutionize Business Models and CSR
How?
Who?
VALUE
What?
ARCHITECTURE
VALUE • Value chain
PROPOSITION • Network value
• Clients
• Products/Services
• Prices BM specifies the origin of profit.
Focus on Profitability /
Rentabilité Économique
A business model analyses =
How much? Ratio résultat operationnel sur
the cycles of investment and
VALUE capitaux engagés
exploitation, defines the CAPTURE ROCE
source of profitability • Turnover/revenue model Return On Capital Employed
• Cost structure
describing how the firm • Capital employed
captures revenues to
BM = description for a firm of the mechanisms allowing it (through a value
transform them into profits proposition made to clients on one side and accounting for the value architecture
on the other) to capture value and turn it into profit (profit equation)
MARKET
SUPPLY
OFFER DEMAND
Productivity =
ECONOMIES OF SCALE Ratio between input per produced output unit
OF THE OFFER… WITH THE GROWTH
OF PRODUCED (OFFERED) Why does it grow with increased produced volumes?
QUANTITIES, PRODUCTIVITY GROWS Because of an economic law known as
AS AVERAGE COSTS DROP The Learning Curve = basically the more I produce
AND MARGINS GET FATTER… and less expensively I will learn to produce single unit
A disruptive (platform?)strategy
Gawer, 2017
How product markets got swept by platforms
Strong competitors had all the classic strategic advantages that should have protected them:
Strong product differentiation, trusted brands, leading operating systems, excellent logistics,
protective regulation, massive scale, huge R&D budgets (e.g. in 20 years Nokia alone spent circa 40 billion $ in R&D) Parker &VanAlstyne, 2015
Firms looked stable, profitable and entrenched (→ occupying well protected positions)
6 years later….
Apple, which in 2007 had only 4% market share in desktop operating systems,
and 0% in mobile phones, in 2013 had 92% of profits
What changed?
Real estate
owned: Ø Cars owned: Ø
ECONOMY OF SCALE
• PRODUCTION BECOMES MORE EFFICIENT AS THE VOLUME OF PRODUCED GOODS GROWS
• In supply-side economies, firms achieve market power by controlling resources and increase efficiency by
avoiding competition from Porter’s 5 forces (benefiting from higher competition typically between numerous
suppliers whose price wars draw down production costs)
Economies of scale
https://companiesmarketcap.com/
What changes… Marketing
How many
cars did
Uber own? Ø
How much
Real Estate did
Airbnb own? Ø
How much
content did
Fb produce? Ø
What changes… Digital Business Ethics & CSR
Boltanski & Thévenot (1999): A model larger than CSR
Exercise: give an example of how you arrange your home/bedroom, why it suits you
From private to public arrangement → expectations and responsibilities change the 1st situation requires no justification, the 3rd does
Thévenot, 2001: 69-75
What is the ‘reason’ of the embarrassement?
JUSTIFICATION
It is ‘unpolite’ (unconventional) to ask people we know little to justify habits and behaviors that belong to their private
sphere (e.g. home/bedroom use)
• Conduct is made accountable to other people and complies with certain conventions
Actors are responsible for evaluating what is best to do and why,
a key to organizational coordination (beyond critical situations)
• People are expected to have the pragmatic critical capacity of telling good from bad
Employees and employers often argue the legitimacy of their actions
on the base of universally accepted/valid argumentations (conventions).
Pierre Bourdieu used concepts like fields, capital and habitus to explain
critically how power works (e.g. La distinction, 1979) by
discriminating/separating tastes (attributions of worth) of/on people and
objects, like works of art, music, food, clothes, furniture…
Organizations do not fight only for resources or customers, but also for political power and legitimacy;
not only for economic, but also for social fitness (Meyer & Rowan, 1977; DiMaggio & Powell, 1983)
→ Many public situations (business, organizational coordination) can be analyzed by their need
to justify action
→ Public critique has to respect certain conventions
E.g. You can criticize my course, but probably you would
not sound credible (→ justified, legitimate) if you said
Every value and test proposes to be universally valid, or to transcend particular situations to provide a reliable
guidance towards the common good, how do actors overcome uncertainty on what value counts the most?
Different worlds propose to qualify objects, people and conducts via multiple rationalizations
of what is worthy and whose pertinent value can overcome a dispute through an ‘objective’ test
Qualified Emotionally Etiquette, good Brand Law, rights Wealth Method Healthy
objects invested manners, gifts. environment
body
Qualified actors Creative Superiors and Media Citizens Competitors, Professional Environmentalist
beings inferiors shareholders experts
Time formation Visionary Customary path Trend Perennial Short-term Long-term Future generations
moment
Examining another realistic conflict of values
5 MINUTES THEORETICAL EXPLANATION
https://www.youtube.com/watch?v=Gy0G4nmWAAE
When the time to promote you/or increase your salary comes… your
competitor, who has no formal education qualification, does not prove
particularly productive, but is the son of a famous and influential local
entrepreneur (on which the firm counts for survival)….
WHAT HAPPENED???
CAN YOU REALLY SAY IT IS ORGANIZATIONALLY WRONG?
…in the publishing house where I worked the following dilemma came up:
To make this less personal, we can also consider the possible legitimate critiques to an object like a
building (e.g. The Hotel du Lac)
The world of inspiration
MODE OF EVALUATION INNOVATION, ORIGINALITY, CREATIVENESS,
NONCONFORMITY, GRACE
A course is not good because it is not original, or the lecturer teaching style isn’t innovative or engaging
→ lack of passion, not an inspiring lecturer…
//
The Hotel du Lac is not inspiring, it is not a visionary or emotionally engaging building, it’s brutally ugly
The domestic world
MODE OF EVALUATION TRUSTWORTHINESS, ESTEEM,
REPUTATION
Test Trust
The course is not good because we do not trust the lecturer, it is not what we are used to
or familiar with, like a well reputed Tunisian lecturer, whom everyone knows personally
and whose reputation is established with local firms, institutions etc…)
//
The Hotel du Lac does not fit with the local urban landscape of Lyon’s patrimony we are accustomed to,
it is a building designed from an alien architect who disrespects our local heritage and traditions
The fame world
MODE OF EVALUATION FAME, RENOWN
The course is not good because the lecturer is not famous (does not come from a famous University), nowhere in the local or international
media can we find a trace of academic celebrity that reassures us as to the value/worth of his knowledge, research or teaching skills
//
The Hotel du Lac was not designed by an archistar, it did not the mediatic attention and fame like the Guggenheim Museum in Bilbao
The civic world
MODE OF EVALUATION COLLECTIVE WELFARE
This course is not good because it does not promote an appreciation of our public institutions and existing regulations, it fails to promote equity
and an ideal of common good favouring public welfare over private enterprise (e.g. deregulated digital platforms that harm licensed labor…
taxi?)
//
The Hotel du Lac does not embody well enough the institutional detachment that an art museum should convey as part of its perennial, stable
and official celebration of our solid cultural civic values
The market world
MODE OF EVALUATION PROFITABILITY, PRICE/COST
Test Competitiveness
This course is not good because it does not lead to a profitable business placement (e.g. a paid internship??) or does not
provide critical information that allow us to be more competitive on the job market of very well paid jobs
//
The Hotel du Lac is not good because it does not attract enough turists/visitors, investors and competitive exhibitions that
people are prepared to pay a premium price for (in relation to alternative museum offers in Tunis and elsewhere)
The industrial world
MODE OF EVALUATION TECHNICAL EFFICIENCY
Test Competence
This course is not good because it is not planned with a rigorous method, because the lecturer is incompetent and
does not possess the relevant knowledge to turn students into functional experts
//
The Hotel du Lac is not good because its spaces do not serve well the functions they were designed for, because it
was ill planned and built with such inefficiency as to require far more short term maintenance than anticipated as
its technical equipment were not engineered with reliable methods
Green
MODE OF EVALUATION TECHNICAL EFFICIENCY
This course is not good because we print papers to read instead of reading pdf files, because the lecturer is drinking from
plastic bottles and does not communicate sustainable ideas and skills to save the planet
//
The Hotel du Lac is not good because its spaces are costing a lot to maintain, because it could be replaced by a park, letting
nature regain a city space so long occupied without any purpose and to great pollution over time
SHORT VERSION FOR A DYNAMIC WORKSHOP
The sociology of critical capacity allows for more values to coexist together in
imperfect, fragile equilibria that avoid tests and overcome controversies with
temporary makeshift hybrid arrangements or thirdways mixing logics together…
SOMETIMES ACTORS DO NOT AGREE ON THE RELEVANT WORLD THAT SHOULD TEST THE
SITUATION, BUT THEY CHOOSE TO SUSPEND CRITIQUE THROUGH A MORE OR LESS
ENDURING OR FRAGILE COMPROMISE…
From debate to practice
What is the ‘right thing to do’?
Boltanski & Thévenot (1991/1987, 1999, 2006) showed how individual actors are not dopes or
puppets, but have a critical capacity, are morally skilled and manage several
justification&critique strategies or grammars
→ Many public situations (business, organizational coordination) can be analyzed by their need
to justify action
→ Public critique has to respect certain conventions
E.g. You can criticize my course, but probably you would
not sound credible (→ justified, legitimate) if you said
«Fabio’s course is bad because he isn’t funny enough…»
1) You refer to current CSR policies/practices and try to add/develop a culture of sustainability through concrete
actions
2) You recognize the ethical complexity of a problem, accounting for the stakes of business actors and society
3) You identify a group of people you can constitute within or outside your company to assign practical tasks
they would be potentially able, and motivated, to carry out
4) You sketch a governance of this project that would allow for everyone to contribute equally and appropriate
the initiative (try to lead by inspiration over CSR, not domination or imposition)
5) Following from 4, you jot down how you would make sure to get feedback on the project members and plan
somekind of calendar you could realistically see implemented with actions, and outcomes to be shared
collectively and ways to assess whether the project was successful (design some kind of objective or tangible
deliverable you dream for your leading sustainable innovation to achieve)
→ COROLLARY: Stupid people are more dangerous than opportunists, because, unless specifically and
responsibly aware of this risk/threat (see laws 1 and 4), you don’t see them coming!
A typology of behaviour for a responsible and strategic
accounting for stupidity hazards
Contribute to society who takes Successful firms, who are sustainable
? advantage of them (but extreme
altruists and pacifists may willingly,
rather than helplessly, accept a place
and show responsible leadership
Contribute to society and
in this category for moral, ethical or leverage their contributions
religious reasons into reciprocal benefits