Thursday, March 31, 2005

Running a responsible corporation

I'am aware that I've yet to mention a business yet, and I hope at least half of this blog will focus on the 'corporate' from CSR; as I firmly believe businesses can provide the responsible leadership that is required. If they can themselves be responsible, then their employees and customers, suppliers and local communities can also learn and become more responsible. One of the few things that are 99% certain in life is that everyone has (or desires) a job. If the employer provides responsible leadership, it will make a big difference, and I am sure that businesses from 1 to 1 million people, make up the majority of global employment (and have the potential to employ anyone who is currently unemployed!).

A brief aside: I would love to go on about every topic I blog about; I am sure theses exist about each individual topic, and there are man other issues that can sprout from each blog (each with their own theses); but in the interest of retaining readers, I want to encourage readers to develop their ideas and follow any other issues that occur to them on these topics. Anyway, I am sure I will return to certain topics from a different perspective in the future.

On to the topic in question. I do not want to dicuss the purpose of a corporation; but just to question how an organisation that is not directly elected or accountable (to the 'community') can best function. A corporation has many stakeholders. A succuessful corporation should ensure that all stakeholders are satsifed with its performance (some stakeholders are more important than others, depending on whose theories you believe); yet the key to a successful organisation from the viewpoint of 'responsible leadership' is how the organisation runs.

A viewpoint on CSR that I currently agree with, is that CSR is an attitude more than anything. As such this attitude should be deployed by all who make up the corporation in everything they do. What is this attitude? It is one that is fundamentally about ethics. It is about how one person's actions affect the environment (and in this case I do not mean the 'green environment', I mean the external environment -everything outside of the individual) directly and indirectly.
When a corporation is set up it should consider its inputs, outputs and processes. Its processes are important as they govern the employees' attitude. Thus the way employees communicate, the way they plan, implement, monitor and report their activities is important. How should a corporation create a conducive environment for its employees to have an attitude of responsibility?

[First it needs to be stated that every person needs to demonstrate responsible leadership; leadership is a personal atribute everyone requries, so they can lead their own life responsibly. It is not about management. It does not require having others to lead; but it often involves others.]

Well, I am no expert, but some things need to be stated clearly. A corporation needs to ensure that each person is happy with their job; that they can achieve what they wish; or higher (depending on how much of a 'motivator' you are!). A simple set of values needs to be established as the norm for how employees should operate. Simplicity is the best.

When making decisions, the relevant stakeholders in that decision need to be consulted. When making actions, the consequences of those actions need to be carefully considered. People should be valued and respected. The things people require to exist should be valued and respected.

People need to trust others; transparency and accountability form the core of any organisation. Without them no organisation can function successfully. What makes an organisation stand out is the ability to have the best inputs. From a labour perspective, this means valuing (and benefitting from) diversity and innovation. It means encouragement and reward. It means friendship. It means valuing others outside the corporation. It means valuing others inside the corporation. It means valuing others. It means respecting others. It means demonstrating responsibility.

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