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Read an excerpt of this book! Add to Wishlist. USD Sign in to Purchase Instantly. Overview This book argues that organizations, corporations, and governments have the abilities and resources to drive deep systemic change, yet fail to evoke change strategies that can significantly improve the social fabric of our global environment.

It actively engages the reader in a conversation that reviews, evaluates, and challenges these issues juxtaposed to current strategies and resulting positions regarding business ethics, social responsibility, our view towards humanity, and the role of leaders. Provocative in its voice and message, this book demonstrates how more robust contributions can lead to effective change. It speaks to academics and students of change management, social responsibility, and business ethics, as well as the organizations and communities who stand to make a positive difference in the world. Product Details About the Author.

Over the course of her consulting career she has worked extensively with entrepreneurial firms, government agencies, non-profit organizations, social service, religious organizations, and the corporate business sector. Average Review. Write a Review. Related Searches. Still, several features are common to efforts that have achieved some success:.

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Success in creating a climate for responsible and ethically sound behavior requires continuing effort and a considerable investment of time and resources. A glossy code of conduct, a high-ranking ethics officer, a training program, an annual ethics audit—these trappings of an ethics program do not necessarily add up to a responsible, law-abiding organization whose espoused values match its actions.

But an integrity strategy is broader, deeper, and more demanding than a legal compliance initiative. Broader in that it seeks to enable responsible conduct. Deeper in that it cuts to the ethos and operating systems of the organization and its members, their guiding values and patterns of thought and action. Above all, organizational ethics is seen as the work of management. Corporate counsel may play a role in the design and implementation of integrity strategies, but managers at all levels and across all functions are involved in the process.

During the past decade, a number of companies have undertaken integrity initiatives. They vary according to the ethical values focused on and the implementation approaches used. Some companies focus on the core values of integrity that reflect basic social obligations, such as respect for the rights of others, honesty, fair dealing, and obedience to the law. Other companies emphasize aspirations—values that are ethically desirable but not necessarily morally obligatory—such as good service to customers, a commitment to diversity, and involvement in the community. When it comes to implementation, some companies begin with behavior.

Other companies focus less on specific actions and more on developing attitudes, decision-making processes, and ways of thinking that reflect their values. The assumption is that personal commitment and appropriate decision processes will lead to right action. Martin Marietta, NovaCare, and Wetherill Associates have implemented and lived with quite different integrity strategies.

In each case, management has found that the initiative has made important and often unexpected contributions to competitiveness, work environment, and key relationships on which the company depends. Martin Marietta Corporation, the U. At the time, the defense industry was under attack for fraud and mismanagement, and Martin Marietta was under investigation for improper travel billings. Managers knew they needed a better form of self-governance but were skeptical that an ethics program could influence behavior.

The corporate general counsel played a pivotal role in promoting the program, and legal compliance was a critical objective.

Leadership for Global Systemic Change : Beyond Ethics and Social Responsibility -

In its original conception, the program emphasized core values, such as honesty and fair play. Over time, it expanded to encompass quality and environmental responsibility as well. Today the initiative consists of a code of conduct, an ethics training program, and procedures for reporting and investigating ethical concerns within the company.

It also includes a system for disclosing violations of federal procurement law to the government. A corporate ethics office manages the program, and ethics representatives are stationed at major facilities. The audit and ethics committee of the board of directors oversees the steering committee. Its network of representatives serves as a sounding board, a source of guidance, and a channel for raising a range of issues, from allegations of wrongdoing to complaints about poor management, unfair supervision, and company policies and practices.

In , it investigated cases. The ethics office also works closely with the human resources, legal, audit, communications, and security functions to respond to employee concerns. Shortly after establishing the program, the company began its first round of ethics training for the entire workforce, starting with the CEO and senior executives. Now in its third round, training for senior executives focuses on decision making, the challenges of balancing multiple responsibilities, and compliance with laws and regulations critical to the company.

Ethical conduct and support for the ethics program are also criteria in regular performance reviews. Today top-level managers say the ethics program has helped the company avoid serious problems and become more responsive to its more than 90, employees. The ethics network, which tracks the number and types of cases and complaints, has served as an early warning system for poor management, quality and safety defects, racial and gender discrimination, environmental concerns, inaccurate and false records, and personnel grievances regarding salaries, promotions, and layoffs.

By providing an alternative channel for raising such concerns, Martin Marietta is able to take corrective action more quickly and with a lot less pain. In many cases, potentially embarrassing problems have been identified and dealt with before becoming a management crisis, a lawsuit, or a criminal investigation. Company executives are also convinced that the program has helped reduce the incidence of misconduct.

When allegations of misconduct do surface, the company says it deals with them more openly. On several occasions, for instance, Martin Marietta has voluntarily disclosed and made restitution to the government for misconduct involving potential violations of federal procurement laws. In addition, when an employee alleged that the company had retaliated against him for voicing safety concerns about his plant on CBS news, top management commissioned an investigation by an outside law firm.

Although failing to support the allegations, the investigation found that employees at the plant feared retaliation when raising health, safety, or environmental complaints. The company redoubled its efforts to identify and discipline those employees taking retaliatory action and stressed the desirability of an open work environment in its ethics training and company communications.

Although the ethics program helps Martin Marietta avoid certain types of litigation, it has occasionally led to other kinds of legal action. In a few cases, employees dismissed for violating the code of ethics sued Martin Marietta, arguing that the company had violated its own code by imposing unfair and excessive discipline. Still, the company believes that its attention to ethics has been worth it. The ethics program has led to better relationships with the government, as well as to new business opportunities.

By opening up communications, the company has reduced the time spent on redundant audits. Some managers compare their new ways of thinking about ethics to the way they understand quality. They consider more carefully how situations will be perceived by others, the possible long-term consequences of short-term thinking, and the need for continuous improvement.

Today employees think their number-one objective is to be thought of as decent people doing quality work. NovaCare Inc.

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But in , when the company was called InSpeech, the only sentiment shared was mutual mistrust. Senior executives built the company from a series of aggressive acquisitions over a brief period of time to take advantage of the expanding market for therapeutic services.

However, in , the viability of the company was in question. After months of soul-searching, InSpeech executives realized that the turnover rate was a symptom of a more basic problem: the lack of a common set of values and aspirations. CEO John Foster recognized the need for a common frame of reference and a common language to unify the diverse groups. Based on the results, an employee task force drafted a proposed vision statement for the company, and another employees suggested revisions. The purpose—meeting the rehabilitation needs of patients through clinical leadership—is supported by four key beliefs: respect for the individual, service to the customer, pursuit of excellence, and commitment to personal integrity.

Each value is discussed with examples of how it is manifested in the day-to-day activities and policies of the company, such as how to measure the quality of care. To support the newly defined values, the company changed its name to NovaCare and introduced a number of structural and operational changes.

Field managers and clinicians were given greater decision-making authority; clinicians were provided with additional resources to assist in the delivery of effective therapy; and a new management structure integrated the various therapies offered by the company. At NovaCare, executives defined organizational values and introduced structural changes to support those values.

The introduction of the vision, purpose, and beliefs met with varied reactions from employees, ranging from cool skepticism to open enthusiasm. It gave us a goal that everyone aspired to, no matter what their place in the company. But, over time, managers became more adept at explaining and using them as a guide. After reviewing the beliefs, the managers abandoned the idea. NovaCare managers acknowledge and company surveys indicate that there is plenty of room for improvement. While the values are used as a firm reference point for decision making and evaluation in some areas of the company, they are still viewed with reservation in others.

And recently acquired companies have yet to be fully integrated into the program. The values reorientation also helped the company deal with its most serious problem: turnover among health care providers.

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Moreover, recruiting new clinicians became easier. Barely able to hire 25 new clinicians each month in , the company added in and 2, in Wetherill Associates, Inc. The company explicitly rejects the usual conceptual boundaries that separate morality and self-interest. Instead, they define right behavior as logically, expediently, and morally right. Managers teach employees to look at the needs of the customers, suppliers, and the community—in addition to those of the company and its employees—when making decisions. WAI also has a unique approach to competition. We just do what we have to do to serve the customer.

Artificial incentives, such as sales contests, are never used to spur individual performance. Nor are sales results used in determining compensation. Instead, the focus is on teamwork and customer service. Managers tell all new recruits that absolute honesty, mutual courtesy, and respect are standard operating procedure. Newcomers generally react positively to company philosophy, but not all are prepared for such a radical departure from the practices they have known elsewhere. No lying? I lie for a living! WAI is known for informing suppliers of overshipments as well as undershipments and for scrupulous honesty in the sale of parts, even when deception cannot be readily detected.

Employees—equal numbers of men and women ranging in age from 17 to 92—praise the work environment as both productive and supportive. WAI is a small company founded by 34 people who shared a belief in right action; its ethical values were naturally built into the organization from the start. Still, the company has developed its own training program and takes special care to hire people willing to support right action. For WAI, the challenge will be to sustain its vision as the company grows and taps into markets overseas. Creating an organization that encourages exemplary conduct may be the best way to prevent damaging misconduct.

In the end, creating a climate that encourages exemplary conduct may be the best way to discourage damaging misconduct. Only in such an environment do rogues really act alone. Lynn S. Paine is the John G. March—April Issue Explore the Archive. Still, several features are common to efforts that have achieved some success: The guiding values and commitments make sense and are clearly communicated.

Employees at all levels take them seriously, feel comfortable discussing them, and have a concrete understanding of their practical importance. This does not signal the absence of ambiguity and conflict but a willingness to seek solutions compatible with the framework of values. Company leaders are personally committed, credible, and willing to take action on the values they espouse. They are not mere mouthpieces. They are willing to scrutinize their own decisions.

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Consistency on the part of leadership is key. Waffling on values will lead to employee cynicism and a rejection of the program.