Leading Corporate Citizens: Vision, Values, Value Added

458 Pages·2008·29.39 MB·English

by  Sandra Waddock

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Leadership through Vision, Values, and Responsibility C
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Leading Corporate Citizens, 3/e, by Sandra Waddock explores the insight, P
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vision, values, and learning that it takes to add enough values to a company so
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that it becomes a leading corporate citizen. This innovative text operates at three A
levels of leadership: individual, organizational, and societal. The premise is that T
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businesses operate successfully in society when they respect and are responsible C C O R P O R A T E
to stakeholders. I
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New Coverage and Contents: E C I T I Z E N S
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The text is thoroughly revised with updated cases, opening vignettes, and S

footnotes to refl ect the dynamic landscape of corporate citizenship. v
is vision, values, value added
Chapter One includes a new section on Stakeholder Responsibility and more io
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coverage in the Corporate Responsibility and Citizenship section.
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In Chapter Three a new section on Stages of Corporate Citizen replaces a
Organizations and Moral Development, and a new case on IBM was added. lu
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Chapter Eight added a new section on Social Entrepreneurship and the Bot- ,

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tom of the Pyramid Strategies and a new section on Global Core Principles of a
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Leading
Corporate
Citizens
Vision, Values, Value Added Third Edition
S andra Waddock
Boston College
Carroll School of
Management
Boston Burr Ridge, IL Dubuque, IA New York San Francisco St. Louis
Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City
Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
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LEADING CORPORATE CITIZENS: VISION, VALUES, VALUE ADDED
Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221
Avenue of the Americas, New York, NY, 10020. Copyright © 2009, 2006, 2002 by The McGraw-Hill
Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed
in any form or by any means, or stored in a database or retrieval system, without the prior written
consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other
electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers
outside the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 DOC/DOC 0 9 8
ISBN 978-0-07-338152-7
MHID 0-07-338152-7
Vice president and editor-in-chief: Brent Gordon
Publisher: Paul Ducham
Managing developmental editor: Laura Hurst Spell
Editorial assistant: Jane Beck
Executive marketing manager: Rhonda Seelinger
Project manager: Kathryn D. Mikulic
Lead production supervisor: Michael R. McCormick
Design coordinator: Joanne Mennemeier
Media project manager: Suresh Babu, Hurix Systems Pvt. Ltd.
Cover design: Brittany Skwierczynski
Typeface: 10/12 Times New Roman
Compositor: Hurix Systems Pvt. Ltd.
Printer: R. R. Donnelley
Library of Congress Cataloging-in-Publication Data
Waddock, Sandra A.
Leading corporate citizens : vision, values, value added / Sandra Waddock.—3rd ed.
p. cm.
Includes index.
ISBN-13: 978-0-07-338152-7 (alk. paper)
ISBN-10: 0-07-338152-7 (alk. paper)
1. Social responsibility of business. 2. Values. 3. Human ecology. 4. Common good.
5. Citizenship. I. Title.
HD60.W33 2009
658.4’08—dc22
2008039640
www.mhhe.com
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Leading
Corporate
Citizens
Vision, Values, Value Added
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wwaadd8811552277__ffmm__ii--xxxxiiii..iinndddd iiii 1100//1100//0088 33::0000::3344 PPMM
For Ben
With love,
Mom
Chestnut Hill, MA 2008
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Brief Table of
Contents
Foreword xiii PART THREE
Acknowledgments xvii Leading Corporate Citizens
and Their Stakeholders 181
6 Stakeholders: The
PART ONE
Relationship Key 183
A Context for Leading
7 Managing Responsibility
Corporate Citizens 1
and Corporate
1 Leading Corporate
Citizenship 227
Citizenship: Vision, Values,
8 Investment and
Value Added 3
Assessment for Corporate
2 The Three Spheres of
Citizenship 251
Human Civilization 37
9 Sustainability and the
Global Village 291
PART TWO
Leading Corporate PART FOUR
Citizenship: Vision, Values, Leading Corporate Citizens
Value Added 83 into the Future 325
3 Personal and Organizational 10 Global Standards/Global
Vision 85 Village 327
4 Values in Management 11 Values Added: Global
Practice: Operating with Futures 367
Integrity 123
12 Leading Global Futures:
5 Value Added: The Impact of The Emerging Paradigm
Vision and Values 155 of Leading Corporate
Citizenship 397
vi
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Contents
Foreword xiii Thinking Systemically about Ecology:
The Natural Step Framework 26
Acknowledgments xvii
NOTE 1.2: The Natural Step’s
Four System Conditions for
Sustainability 28
PART ONE The Need for Balance 29
Leading Challenges: A New Paradigm
A CONTEXT FOR LEADING
for Corporate Citizenship 30
CORPORATE CITIZENS 1
Chapter 2
Chapter 1
The Three Spheres of Human
Leading Corporate
Civilization 37
Citizenship: Vision, Values,
Intersecting Spheres of Human
Value Added 3
Civilization, Nature, and Associated
Corporations: Citizens of the (Natural Value 40
and Human) World 4 NOTE 2.1: Frederick’s Business Value
Stakes and Stakeholders 7 Clusters 41
Stakeholder Relationships and The Role of National Ideology 43
the Public Responsibilities of Individualism 44
Management 8 Communitarianism 44
Stakeholder Responsibility 11 Impact of Ideology 45
Corporate Responsibility and The Need for Both/And 46
Citizenship 11 The Economic Sphere 47
CASE 1.1: Boss Hog 12 The Capitalist Market System Today
Stakeholder Relationship and in the Past 48
Management 14 The Public Responsibilities of the
Understanding the Spheres Corporation 51
of Influence: The Ecological Rethinking Public
Underpinning 16 Responsibilities 52
Systems Thinking: The Need to CASE 2.1: Wal-Mart: Admired
Integrate the Environment 18 Competitor or Global Bully? 53
NOTE 1.1: Systems Thinking 20 The Political Sphere 56
Natural Ecology: The Biological Basis The Common Good 56
for Citizenship 22 Why Government? 58
CASE 1.2: Starbucks’s Moving Targets: The Shifting Public Policy Agenda 61
Sustainability, Fair Trade, and The Civil Society Sphere 67
Supplier Relations 23 Bowling Alone 68
vii
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viii Contents
Civility and Society 69 Vision and Change: Transforming
Globalization’s Impacts 70 Organizations 110
Organizing Enterprise in the Stages of Corporate
Economic Sphere 72 Citizenship 112
Business Organization in the Economic CASE 3.2: IBM: Integrating
Sphere 72 Vision and Values into Business
Governmental Organization in the Practice 114
Political Sphere 72 Leading Challenges: Development and
Nongovernmental Organizations the Vision Thing 117
(NGOs) in the Civil Society
Sphere 73 Chapter 4
Blurring Boundaries 74
Values in Management Practice:
CASE 2.2: Mattel’s Sad Holiday 75
Operating with Integrity 123
Leading Challenges: Ecology,
Competition, and Collaboration 77 The Earth Charter 123
Preamble 123
The Challenges Ahead 123
PART TWO
Universal Responsibility 124
LEADING CORPORATE Integrity: Honesty and
CITIZENSHIP: VISION, Wholeness 124
VALUES, VALUE ADDED 83 Values and Integrity 125
Citizenship: Vision and
Chapter 3 Process 127
Enterprise Strategy: What Do We
Personal and Organizational
Stand For? 128
Vision 85
Values That Enhance Internal
Vision, Values, Value Added 86 Operations 129
What Is Vision? 86 Values That Enhance
Visions Create Meaning and Foster Integrity 132
Purpose 87 Stakeholder Relationships as
Why Vision? 88 Practice: Implementing Constructive
Visionary Leaders 89 Values 135
Individual Awareness and Living Values 137
Reflection: Development in Multiple Negotiating Dilemmas 137
Domains 90 CASE 4.1: Google’s “Don’t Be Evil”
Transformation: From Managers into Dilemma 138
Leaders 91 Virtue and Character for Leading
Development and Leading Corporate Corporate Citizens 143
Citizens 93 Managing: Ethical at the Core 143
Developmental Theories 93 CASE 4.2: FedEx: Living
Developing Personal Vision 105 with Values—Strategically 144
Visionary Corporate Citizens 106 Cultural Difference: Leading
CASE 3.1: Green Carpets for a Corporate Citizens around the
Sustainable World 107 World 147
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Contents ix
Leading Challenges: Operating with Primary Stakeholder
Integrity 149 Relationships 187
Owners 187
Chapter 5 Employee Relationships 190
Value Added: The Impact of Customer Relationships 194
Suppliers, Distributors, Allies, and
Vision and Values 155
Partners 197
Value Added 156 Critical and Particular Secondary
Making a Decision to Operate with Stakeholders 200
Integrity 157 Public Affairs: Government and
Responsibility and “Publics” Relationships 200
Performance 160 CASE 6.1: Firms of Endearment
Vision and Value Added 160 Love Their Stakeholders—
Social and Financial And It Shows in the Bottom
Performance 161 Line 201
Stakeholder Relationships and Community Relationships 209
Performance 162 CASE 6.2: “Make It Better” at The
CASE 5.1: Treating Employees Well: A Timberland Company 213
Winning Strategy at Costco 167 Leading Challenges: Stakeholders and
Environmental Management, Leadership 216
Sustainability, and
Performance 172 Chapter 7
CASE 5.2: Pollution Prevention Managing Responsibility and
Pays at 3M 174
Corporate Citizenship 227
Social Capital and
Performance 175 Quality Management:
Leading Challenges: Making the The Link to Responsibility
Value-Added Connection 176 Management 228
Responsibility Management (RM):
The Key to Leading Corporate
PART THREE
Citizenship 229
LEADING CORPORATE Inspiration: Vision
CITIZENS AND THEIR Setting and Leadership
STAKEHOLDERS 181 Commitment 230
Stakeholder Engagement
Chapter 6 Processes 231
Foundational Values 232
Stakeholders: The Relationship
Responsibility, Vision, and Leadership
Key 183
Commitments 235
Building Sustainable Stakeholder Integration: Changes in Strategies and
Links 184 Management Practices 236
Organizing for Relationship: Strategy 236
Boundary-Spanning Building Human Resource
Functions 185 Capacity 237
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