A CCL Research White Paper
Globally Responsible
Leadership
A Leading Edge Conversation
By:
Laura Quinn, Ph.D.
Alessia D’Amato, Ph.D.
Globally Responsible Leadership
Center for Creative Leadership, CCL®, and its logo are registered trademarks owned by the Center for Creative Leadership. © 2008 Center for Creative Leadership. All rights reserved.
O V E R V I E W
THE LEADERSHIP CHALLENGE:
In the current business environment,
the challenge is “no more business as
usual.” Increasing pressures of global-
ization, demanding and diverse stake-
holders, the war for talent, scarce
resources, and increased risks and
opportunities, are causing leaders to
ask if there is a better way to cope
with complexity. Leaders all over the
world are embedding Global
Responsibility in the fabric of their
business to deal with these chal-
lenges. Corporate Responsibility and
Sustainability represent a new com-
petitive business advantage and one
of the most powerful drivers for
growth and innovation in today’s
organizations.
CHARACTERISTICS OF THIS WHITE PAPER:
Questions and answers on:
What leadership practices enable
organizations to develop direc-
tion, alignment and commitment
for Global Responsibility?
How can Global Responsibility
perspectives and practices be
developed?
What challenges do leaders face
in using a Global Responsibility
framework?
What organizational systems and
strategies have been implemented
to foster responsible growth and
innovation?
PROPOSED OUTCOMES OF READING THIS
WHITE PAPER
Develop an understanding and
application of CCL’s breakthrough
research on the leadership develop-
ment needs for globally responsible
leaders.
Deepen organizational awareness of
leadership beliefs and practices for
making Global Responsibility
part of current and future business
models.
Identify how to develop as a leader
with emphasis on providing long-
term vision and strategic leadership
addressing social, environmental
and economic issues.
Gain insight on the new role
leadership plays in today’s
organizations.
Understand how to support global-
ly responsible leadership and how
to integrate it with other organiza-
tional development efforts.
Gain insight into the changing
nature of the business leadership
environment and how leadership for
Global Responsibility contributes to
shaping a high performance leader-
ship culture.
Understand the importance of
building a learning environment
for globally responsible leadership
development to deal with impend-
ing and future organizational
challenges and sustainable
business development.
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Center for Creative Leadership, CCL®, and its logo are registered trademarks owned by the Center for Creative Leadership. © 2008 Center for Creative Leadership. All rights reserved.
Globally Responsible Leadership
C E N T E R F O R C R E AT I V E L E A D E R S H I P
CONTENTS
Executive summary
Corporate Global Responsibility and the
Role of Leadership: A Leading-Edge Conversation
Leadership Practices for Global Responsibility:
Setting Direction, Creating Alignment, Maintaining Commitment
Practice 1: Developing Vision, Strategy and Policies
Practice 2: Support from Top Management
Practice 3: Operationalizing
Practice 4: Engaging across Boundaries
Practice 5: Communication System and Practices
Practice 6: Empowerment and Development
Practice 7: Performance and Accountability
Practice 8: Ethical Actions
Corporate Responsibility and the Role of Leadership:
Implications for Action
Globally Responsible Leadership Assessment
Author Biographies
Acknowledgments
4
5
6
7
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10
12
14
16
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Globally Responsible Leadership
Center for Creative Leadership, CCL®, and its logo are registered trademarks owned by the Center for Creative Leadership. © 2008 Center for Creative Leadership. All rights reserved. 4
E X E C U T I V E S U M M A R Y
Globally responsible leadership
asks business organizations to
pay attention to the impact their
operations have on the planet –
requiring a systemic view and
addressing diverse economic,
social and environmental issues.
It also brings vitality and new
opportunities to an organization
through innovation, talent
engagement and cost savings.
Unfortunately, not much is under-
stood about how leaders and organi-
zations deal with the expanded and
integrated principles of globally
responsible leadership (GRL). This
white paper reports on the leadership
practices, policies, strategies and sys-
tems of companies recognized for
their GRL efforts. Specifically, it
reports on eight core leadership
domains that successfully enable
global responsibility:
1. Developing globally responsible
vision, strategies and policies
2. Operationalizing global
responsibility
3. Consistent support of top
management
4. Communicating global
responsibility
5. Engaging with stakeholders and
across boundaries
6. Empowering employees to act
responsibly
7. Establishing performance and
accountability processes
8. Pursuing ethical actions for global
responsibility
Given our learning so far, the follow-
ing are considerations for any organi-
zation embarking on the path to glob-
al responsibility:
Leadership practices play a signifi-
cant role in establishing how an
organization’s culture supports – or
hinders – global responsibility
efforts.
Since leadership does play such an
important role in an organization’s
ability to have successful global
responsibility outcomes, develop-
ment of leadership competencies
and capabilities is critical, both at
the individual and organizational
levels.
Leadership for global responsibility
goes beyond setting a vision and
goals. The central point is action to
create alignment and to maintain
commitment, such as: configuration
of resources, development of sup-
porting policies, implementation of
globally responsible decision-mak-
ing criteria, setting personal exam-
ples, stakeholder engagement and
alliances, and development of a
globally responsible mindset.
The journey to global responsibility
involves challenges most organizations
have never experienced. Facing these
challenges requires leaders to be agile,
think in new ways, ask the right ques-
tions and be comfortable not having
all the answers.
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Center for Creative Leadership, CCL®, and its logo are registered trademarks owned by the Center for Creative Leadership. © 2008 Center for Creative Leadership. All rights reserved.
There are many ways to describe global responsibility – such as corporate
social responsibility, sustainability, corporate citizenship, corporate stew-
ardship, and the triple bottom line (people-planet-profit). Going beyond
labels or definitions, the idea of global responsibility suggests businesses
have a duty and a strategic interest in innovation and in integrating the
interests of their stakeholders into all aspects of their business operations.
Businesses are more than just profit-seeking entities. They have a vested interest in
generating positive outcomes and limiting any detrimental impact. While the
“what” of global responsibility is well defined, little is known about “how” to
implement the triple bottom line effectively or how to identify the relevant leader-
ship practices. Conceptual approaches also offer no recognition of the individual
or organizational challenges encountered when implementing a globally responsi-
ble strategy or when developing a culture of responsibility. Many organizations
find that the right kind of leadership is a key challenge when developing workable
global responsibility strategies, redesigning organizational systems and processes,
and/or forging the required culture change in support
of global responsibility. As a company begins to
move toward globally responsible operations
worldwide, it will need to develop and
implement a new or more adaptive busi-
ness model that addresses how the
organization sets direction, creates
alignment, and maintains commit-
ment to its responsibility goals.
This white paper presents eight
domains of leadership practices that,
when sufficiently developed and car-
ried out throughout the organization,
supply the ground work for successful
implementation of global responsibility
initiatives. This figure presents the eight
categories, explained in full in the following
pages.
5
Globally Responsible Leadership
C O R P O R AT E G L O B A L R E S P O N S I B I L I T Y A N D T H E R O L E O F L E A D E R S H I P :
A L E A D I N G - E D G E C O N V E R S AT I O N
What leadership practices enable organizations to develop direction, alignment and
commitment for global responsibility?
What challenges do leaders face in using global responsibility framework?
What organizational systems and strategies have been implemented to foster
responsible growth and innovation?
SUMMARY OF KEY QUESTIONS
Top
management
support
Ethical
actions
Engaging
across
boundaries
Empowerment
& development
Operation-
alizing GR
Performance
development &
accountability
Communication
Developing
vision, strategy
and policies
THE EIGHT CATEGORIES OF LEADERSHIP
PRACTICES FOR GLOBAL RESPONSIBILITY
D
ir
ec
ti
on
Com
m
itm
ent
Alignment
LEADERSHIP
PRACTICES
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Globally Responsible Leadership: Practice 1
Ground the vision for global responsibility in a company’s values, core busi-
ness strengths and external demands. Craft a strategy that enables busi-
ness opportunity and social/environmental good. Develop specific policies
that support the strategy.
Grounding the vision for global responsibility in a company’s values, core business
strengths and external demands sets the foundation for the global responsibility
journey. The elements of vision, strategy, and policy are closely intertwined, and it
takes resilience and continuity to set these new directions effectively. First, to build
global responsibility, a company needs a long-term vision that goes beyond “being
green” or “doing good.” This vision should be rooted in the core business of the
firm, take into account its strengths, and focus and recognize the demands of a
variety of stakeholders. The vision is a joint effort that takes into account demands
and knowledge from across the organization’s leadership team. Creating a vision
helps order and prioritize the many potential activities a company undertakes.
Once a compelling, globally responsible vision is developed, strategies are crafted
to achieve the vision. Some strategies enable business opportunity, social good,
and environmental protection. In addition, these strategies often go above and
beyond compliance or what is required by law and include long-term goals.
Developing specific policies that support global responsibility serves to link vision
and strategy to organizational systems and day-to-day operations. A dynamic,
organizational vision and far-reaching globally responsible strategies require new
rules for operating and a new understanding of how systems work and processes
link together.
Organizations purposefully employ a process of small but steady steps towards
the achievement of key goals. Furthermore, creation of a formal vision statement,
strategies, and policy does not always precede socially responsible actions and
projects. Companies can develop formal strategy after becoming familiar with the
global responsibility lexicon made visible through various media and emphasized
by various interest groups.
The implementation of basic practices is the push factor for more integrated and
advanced leadership for global responsibility. In other cases, the visibility and
demand for global responsibility will drive social assistance or environmental
action, which in turn will encourage integration into the business model and will
support the creation of strategies and policies for prioritizing possible directions.
D E V E L O P I N G V I S I O N , S T R AT E G Y A N D P O L I C I E S
Practices: Screen for global responsibility in investments, acquisitions and partner-
ships. Set globally responsible goals on various levels throughout the organization.
Start with a dual bottom line and move towards a triple bottom line. Create a spirit of
exceeding compliance standards.
Integrated into: Mission statement, company vision statement, official procedures and
documents, strategic business plan, balanced scorecard, activities outside the core
business
DEVELOPING VISION, STRATEGY AND POLICIES
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Globally Responsible Leadership: Practice 2
In order for global responsibility to have impact, top management
support is vital. Senior leaders – and the executive team – must
show active and consistent support for the organization’s globally
responsible strategies and efforts.
Top management support sets the tone for an organizational transformation, often
including major change processes. It takes visible top management support and
sustained commitment from executives to convince others in the organization that
a move towards global responsibility is not just a
response to current fashion, but a continuous and
strategic reorientation that is worth the effort. While
change can also come from the bottom up, it is clear
that to make a systemic change, top management sup-
port is vital. This support is shown in actions that cre-
ate visibility and awareness of global responsibility
inside the company and in the provision of hard
resources for responsibility efforts. It is also shown
through consistency, which makes the difference in
whether global responsibility is seen as a real business
commitment or as simply “the flavor of the day.” Top
management support proves particularly relevant
when challenges arise – such as rising costs and
decreasing revenues, difficulties with sustained stake-
holder engagement and client acceptance of globally
responsible policies.
S U P P O R T F R O M T O P M A N A G E M E N T
Practices: Allocate adequate resources. Create a dedicated position. Brand globally
responsible efforts. Maintain continuous global responsibility efforts. Participate in
globally responsible programs and events.
Integrated into: Investment decisions, strategic planning, regular briefings, executive
speeches, internal newsletters, awards, and recognition, celebrations, global responsi-
bility programs
TOP MANAGEMENT SUPPORT
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Integrate globally responsible actions across business functions and
locations.
To move from vision and strategy to operation, actions need to be integrated
across business lines and locations. The challenges an organization faces across
locations and business lines are too diverse to be dealt with by the same tools or
actions. Yet to make a difference, some high-level integration is necessary to
ensure the common vision will be enacted in all geographies and at all levels. As
one global human resources manager said:
“There was a necessity to make a link between our company statement, the code of
conduct and … some key performance indicators, which are really showing with
numbers that we are doing what we have written on nice paper. So I had meetings
with all the HR managers all around the world and we came out with 45 key per-
formance indicators, which we then reduced to five for the current reporting cycle.
Each of the five is in the report to ensure we are really doing this. All plants, each
site, has to deliver according to the goal they set for themselves. For example, for the
area of training … we want to have the action plan – and the training session for
the people actually held.”
To further integrate global responsibility into the business, local specification of
efforts that make sense in the particular geography is a plus. In other words, from
the same mission or common goal, different leadership practices are needed
across different geographies with a tangible local/regional value.
In order to make global responsibility effective operationally, it also is necessary to
integrate efforts with specific job responsibilities. Doing so enables the workforce
at all levels to make sense of the organization’s focus on global responsibility and
to act accordingly.
Globally Responsible Leadership: Practice 3
O P E R AT I O N A L I Z I N G
Practices: Incorporate global responsibility into everyday processes and procedures.
Develop a logo/symbol. Specify local goals. Integrate goals globally. Translate materi-
als into necessary languages.
Integrated into: Strategic planning, global and local operations, job descriptions,
supply-chain management
OPERATIONALIZING GLOBAL RESPONSIBILITY
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Globally Responsible Leadership: Practice 4
Develop and implement a set of leadership practices for global
responsibility that will engage internal and external stakeholders. Create
effective partnerships and networks.
Leadership practices that reach across boundaries and engage stakeholders promote
the triple bottom line (people-planet-profit). Global responsibility requires leaders to
work across personal boundaries of social identity, internal boundaries of level and
function, and external boundaries of organization, country or region.
Leaders who engage across boundaries develop relationships with diverse stake-
holders culture and systems to approach stakeholders. These stakeholders are not
limited to employees of the organization, but include vendors, suppliers, customers,
members of the community, the press and non-profit organizations. Relationships
are established with these groups to understand the impact the organization has on
them as well as the influence the stakeholders have on the organization. In the best
stakeholder relationships, there is a sharing of power and influence, created by
processes of dialogue and inquiry that is ongoing and continues even when differ-
ences occur.
In this global society, national, international, multinational and global companies
are a conglomeration of different realities. There can be different standards and
needs for global responsibility across levels, divisions, country subsidiaries and cul-
tures. The dialogue among stakeholders is advanced by bridging these differences
and boundaries. Ownership and responsibility for stakeholder engagement
becomes a core leadership practice. Commitment is maintained when coalitions are
clearly established and overcome difficulties that may arise. Diverse challenges are
seen as opportunities. These include internal stakeholder
engagement, difficulties in raising global responsibility
awareness outside a headquarters location, variable stan-
dards in developing countries, and difficulties in making
global responsibility something that is shared at every level
in the organization. Development of training programs can
partially address and overcome such organizational
obstacles.
In summary, the concept of global responsibility requires
organizations to focus on their impact beyond the traditional
“walls” of the organization.
E N G A G I N G A C R O S S B O U N D A R I E S
Practices: Conduct 360-surveys with all stakeholders. Hold “visitor’s” days.
Encourage two-way communication with all stakeholders. Make organizational efforts
and goals publicly visible.
Integrated into: Community involvement programs, government liaisons, industry-
specific lobbying, partnerships and collaboration
ENGAGING ACROSS BOUNDA
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