This is the third of ebbf's three lessons given during the International Management for CSR and Sustainability MASTER course. The specific topic of this ebbf course is that of CSR in Small and Medium Enterprises. Here we showed the pace of innovation that is demanding a new way of doing business. The inspiration of ebbf members in their way of doing business or of gathering leadership lessons from recent events such as the ones in Egypt. Three ways of defining core values in a company: ebbf member Paolo Russo's way forward for a code of ethics, Denise Cumella's Lush manifesto etc. Asking the key question of the purpose of work that drives a totally new way of seeing the way we do business. The case study of Rüdiger Fox and how important and not so easy it is to stick to your values in difficult times. How to influence (and not be influenced) by the environment that we can affect. And finally the important of communicating in a way that is connected not only to what the customer wants to hear but most importantly with the values of the people working in the company and of the company itself.

1. IMSD
CSR in SMEs - part 3
April 2011
PROFESSOR
Daniel Truran

2. World and way of doing
business is changing fast
ebbf.org / Daniel Truran www.eoi.es

3. New business models
Apple’s Apps
www.ebbf.org

4. Google Introduced...
...free software
www.ebbf.org

5. ...free spaces
to help poorer start-ups
ebbf.org / Daniel Truran http://www.seats2meet.com/ www.eoi.es

6. things change quickly even in
the cement industry
e.g. cement innovation on motorway building in mobile places
www.ebbf.org

7. Structure
Flow of Communication
From Uni-Minded
Beppe Robiati To Pluri-Minded
CEO Scac
ebbf.org / Daniel Truran www.eoi.es

8. Gruppo Scac
ebbf.org / Daniel Truran www.eoi.es

9. http://www.lmmiller.com/blog/2011/02/12/general/five-leadership-lessons-from-tahrir-square/
ebbf.org / Daniel Truran www.eoi.es

10. Mubarak maintained every form of control he could imagine over his
opposition and his people. But the corollary to this absolute control is
that this creates a closed system, one that failed to process feedback
from its environment and this led to the ultimate instability.
internal / external environment
Improvement comes from the feedback loops and the process of
adaptation from these environments.
The more successful, secure or dominant the organism (person, company
or country) the higher the wall grows between it and it’s environment.
ebbf.org / Daniel Truran www.eoi.es

11. Those in power tend to believe that their followers will be lost without their guidance and control.
Tahrir Square over the past weeks has been an incredible demonstration of the power of “self-
organization.” The protesters entered Tahrir Square with no apparent leader, no organization,
and no assigned responsibilities. But, given a common purpose, they organized themselves. They
formed organization and took responsibility for checking those who entered the square to assure
they weren’t carrying weapons. They organized sanitation. They organized medical services. They
organized security and protection within the square...
The power of self-organization is present in every organization.
It is too often dismissed as a chaotic disruption to the formal lines of
authority.
Those who are “on-the-spot,” whether in a factory, a school, or on the
streets, when empowered to solve problems most often have the
capacity to self-organize.
Social media, or networked intelligence, is an enabler of self-organization.
Within companies we need to encourage the power of self-organization rather than fear its disruption.
ebbf.org / Daniel Truran www.eoi.es

12. The demonstrators had been joyously celebrating what they
believed would be his final resignation. They were horribly
disappointed. Not only did he not resign, but his speech talked
down to his “children” in the most condescending tone. He
appeared not to understand that it was families, doctors, lawyers,
workers, as well as students who had taken to Tahrir Square to
protest his rule.
Leaders lead by creating a sense of shared purpose, shared values and common
vision that can inspire their followers. Leader’s never motivate followers by
talking down to them, by expressing their own self-importance. Leaders lead by
expressing empathy and creating bonds of unity with their followers.
To the degree that you fail at this task, you fail as a leader.
ebbf.org / Daniel Truran www.eoi.es

13. The Egyptian revolution was in the making for thirty years. But, the power of
Facebook, as Google executive Wael Ghonim has explained, enabled fifty to a
hundred thousand Egyptians to collaborate instantaneously and form a
consensus to action. The power of the Internet has never been demonstrated
more clearly.
http://online.wsj.com/article/SB10001424052748703989504576127621712695188.html
Every organization survives by its ability to adapt to change in the external environment.
The ability to hear, to sense, to respond and adapt to changes taking place, only to be seen on
the Internet, will determine your ability to survive the next tipping point in your marketplace.
ebbf.org / Daniel Truran www.eoi.es

14. Never underestimate the power of purpose to unite
people in a common pursuit. No single group could have
succeeded in this revolution.
It was the power to unite diverse people in common
purpose that tore down the walls of dictatorial
authority.
That power is latent in every organization if leaders would only call upon it.
ebbf.org / Daniel Truran www.eoi.es

15. “CSR” drives success
“…significantly boost our company’s
performance during the next five years.
How? Foremost, we look to inspire our
employees’ hope in the future, to fill them with
a sense of progress and advancement in their
careers as well as their personal lives.
How we treat and teach our employees and the
sense of respect and fairness our company
projects, will instill the loyalty, motivation and
positive thinking our team needs to
accomplish our goals.”
Fasha Mahjoor - CEO of Phenomenex
ebbf.org / Daniel Truran www.eoi.es

16. Different methodologies in stating
and clarifying company values and
thus creating alignment ...
... alignment around what?
the importance of clearly stating core values
ebbf.org / Daniel Truran www.eoi.es

17. Proposal for a code of ethics
Paolo Russo
ebbf.org / Daniel Truran www.eoi.es

18. Strengthening through code
of ethics
“Our Code of Ethics aims to be a set of principles that
remarks both the identity of the organization and the values
that inspire the day by day activities of the whole group.
This code aims to be a promise of integrity for all the
stakeholders that will interact with our company,
demonstrating an extraordinary commitment to work along a
profound sense of ethical business practices.”
ebbf.org / Daniel Truran www.eoi.es

19. Benefits of code of ethics
“- to define accepted/acceptable behaviors;
- to promote high standards of practice;
- to provide a benchmark for the other members of our network
- to empower people and stimulate their motivation
- to establish a framework for professional behavior and responsibilities;
- to increase the awareness of each employees by involving them into the process;
- This code will represent an additional advantage towards our competitors
considering that intangible capital and reputation are the main assets of a
consultancy/advisory firm firm.”
ebbf.org / Daniel Truran www.eoi.es

20. Steps towards a code of ethics
“1. Understand the purpose
The main question is: what is our purpose/objective by creating this code?
2. Review your identity
Spend time to understand your identity and your mission as organization. The code of ethics comes from a deep
comprehension of the role of the company into the business community.
3. Find out what bothers people
Copying a code from another organization will not suffice.
It is important to find out on what topics employees require guidance, to be clear what issues are of concern
to stakeholders and what issues are material to your business activities, locations and sector.
MAKE A QUESTIONNAIRE TO YOUR EMPLOYEES and learn which kind of organization they would like to work for.
4. Collect the inputs and put into the framework
After the questionnaire and perhaps after discussions with the employees, it will be the time to insert all the
relevant information into the framework that you have already prepared. A good way is to match the view of
the top managers of the firm with the needs and ideas coming from the other employees.
5. Review
Plan a process of regular reviews that will take account of changing business environments, strategy, stakeholder concerns and
social expectations, new standards, and strengths and weakness in your ethical performance.”
ebbf.org / Daniel Truran www.eoi.es

21. Flow towards a code of ethics
Values, hopes, ambitions and
objectives of the leadership
board
Put the ideas Define the
Collect the ideas into the Code of Ethics
framework
Results coming Stake holders input
from the and proposals.
questionnaire to (Questionnaire)
the employees
ebbf.org / Daniel Truran www.eoi.es

22. Values’ Inspiration Wall
Work – Life balance Social responsibility in
business
Partnership of women and Value based leadership
men in all fields of work
Sustainable development Meritocracy & Integrity
Integrity and commitment Opportunity & Training
Positive consultation Client oriented
ebbf.org / Daniel Truran www.eoi.es

23. Positive Examples
let’s be as good or as better
than the “big” ones
ebbf.org / Daniel Truran www.eoi.es

24. COMPANY MANIFESTO
is another way to state what
the company and people
working there stand for
ebbf.org / Daniel Truran www.eoi.es

25. Company “manifesto”:
we believe...
ebbf.org / Daniel Truran www.eoi.es

26. “Another kind” of Manifesto
The Generation M Manifesto
Umair Haque (Harvard Business Review)
http://blogs.hbr.org/haque/2009/07/today_in_capitalism_20_1.html
Ethical production. Innovation turns a blind eye to ethics — or, worse, actively denies ethics. That's a
natural result of putting entrepreneurship above all. Buy low, sell high, create value. That's so 20th
century. Awesome stuff is produced ethically — in fact, without an ethical component, awesomeness isn't
possible. Starbucks is shifting to Fair Trade coffee beans, for example. Why? Starbucks isn't just trying to
innovate yet another flavour of sugar-water: it's trying to gain awesomeness.
Love. You know what's funny about walking into an Apple Store? The people working there
care. They don't just "work at the Apple store" — they love Apple. Contrast that with the
alienating, soul-crushing experience of trying to buy something at Best Buy — where
salespeople attack you out of greed
ebbf.org / Daniel Truran www.eoi.es

27. Website Statements
Our philosophy
Our roadmap for the future
At CEVA we have a clearly defined vision for our business. Our goal is to be the most admired
company in the supply chain industry by exemplifying Unity, Growth and Excellence in
everything we do.
To keep us focused on achieving this vision we are creating a strong and integrated business
with people at its very heart. To achieve this we have developed a series of values and brand
imperatives which help us all act in a way that will steer us on the path to meet our vision of
becoming the most admired.
ebbf.org / Daniel Truran http://www.cevalogistics.com/en/aboutus/OurStrategy/Pages/default.aspx
www.eoi.es

28. Website Statements
ebbf.org / Daniel Truran http://www.cevalogistics.com/en/aboutus/OurStrategy/Pages/default.aspx
www.eoi.es

29. Which one do you like most?
Which one is most effective in building
a values-driven = successful company?

30. We are looking at ways to
differentiate our SME and purpose is
definitely a strong way.
ebbf.org / Daniel Truran www.eoi.es

31. What is the purpose of work ?
ebbf.org / Daniel Truran www.eoi.es

32. but how can I act on a purpose,
specially if it is an ambitious
purpose?
ebbf.org / Daniel Truran www.eoi.es

33. ebbf’s vision statement
we contribute
to a prosperous, sustainable and just civilization
by promoting and applying
ethical values, personal virtues and moral leadership
in business and civil society.
How on earth do I align THAT kind of purpose to my daily working life?
ebbf.org / Daniel Truran www.eoi.es

34. Steve Hall
I’m not building only.
I’m building
a new civilization.
Mary, 35. Architect.
She choosed to use eco-materials only.
22

35. I’m not baking only.
I’m building
a new civilization.
Paul, 42. Baker.
He buys raw materials from Fair Trade only.
23

36. I’m not just selling drugs.
I’m building
a new civilization.
Ann, 30. Pharmacist.
She educates her clients about natural
healthcare.
24

37. I’m not teaching maths only.
I’m building
a new civilization.
Jennifer, 45. Professor.
She started conversations with her students
about etichs in science.
July August ’09 25

38. Personal Purpose
ebbf.org / Daniel Truran www.eoi.es

39. http://www.youtube.com/user/BarrettValuesCentre#p/u/25/cnwKEkWYug0

40. Do you bring - yourself - to work?
Mobile phone at home or at work
know your values to become stronger
more aligned and coherent
instead of work life balance enjoy a life balance
to become more successful
creating more succesful organizations
ebbf.org / Daniel Truran www.eoi.es

41. the values of a leader, the core values of a company ...
how can we talk “values” at work?
The “values game”
A post-it of “values” that you stick on the back of your “colleagues”
How did you feel reading these values?
Has anyone at work highlighted or even mentioned
the values you or your colleagues have?
ebbf.org / Daniel Truran www.eoi.es

42. Rüdiger Fox ... ten years ago in 2001

43. Easy to remain faithful
one’s values?
fast growth
Easier to stick to
your principles
by
Strenghtening
Your Sphere
peer-group competitive
thinking rivalry
Does this environment fit you?
You have a choice
&
Your people have a choice
stock-market
www.eoi.es
expectations
ebbf.org / Daniel Truran

44. Passive - be influenced by others
or active - influencing others?
fast growth
peer-group competitive
thinking rivalry
stock-market
ebbf.org / Daniel Truran expectations www.eoi.es

45. “Just” live your values
"my first and current job is to create contracts
with hotels, restaurants and all stakeholders
present in the tourism sector. From my first day
at work I always tried to be honest and
transparent with my suppliers whilst of course
always trying to achieve the financial goals of my
company. Even though combining the two was
sometimes a challenge, in the end I was rewarded
in both areas!
This happened not so long ago when the manager
of a large Italian hotel chain decided to confirm a
big contract with us, taking away share from our
Giada Dall’O competitors, he justified his decision by saying:
“in times of economic crisis such as the ones we are living now, knowing
that you can trust the people that you work with is fundamental”
ebbf.org / Daniel Truran www.eoi.es

46. How much influence can I have?
Relationship between an individual and ... the world
The whole World The whole World
Country Stake holders
Community Company
Family Department
We are all shaped by: At the same time, we also influence it. - One
- the environment, the outer circles, the deed, even one gesture, word or facial
society we live in, our culture, our family expression can have a tremendous effect on
and education are the conditions of our lives others. A manager’s department reflects
own values
ebbf.org / Daniel Truran www.eoi.es

47. IMSD / CSR in SMEs
Your assignment for Friday
Identify an SME that has applied CSR
(diverse world coverage)
describe what motivated the company to CSR
describe area of action
describe success it brought about
1 A4 page - 3 min presentation - website
email to : daniel.truran@ebbf.org
daniel.truran@learning.eoi.es
EBBF / Daniel Truran

48. Concept of - Campaigns -
time definite

49. Communicating Purpose
ebbf.org / Daniel Truran www.eoi.es

51. BASF
Will there be coherence or is it “just” a marketing exercise?
Company
Marketing
Society
Values
Personal Company
Values Values

52. ebbf.org / Daniel Truran www.eoi.es

53. A - sincere - sense of positive purpose...
... always brings success
ebbf.org / Daniel Truran www.eoi.es