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A CCL Research White Paper

Globally ResponsibleLeadership A Leading Edge Conversation

By: Laura Quinn

Alessia D’Amato

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 asusual.” Increasing pressures of global-ization, demanding and diverse stake-holders, the war for talent, scarceresources, and increased risks andopportunities, are causing leaders toask if there is a better way to copewith complexity. Leaders all over theworld are embedding GlobalResponsibility in the fabric of theirbusiness to deal with these chal-lenges. Corporate Responsibility andSustainability represent a new com-petitive business advantage and oneof the most powerful drivers forgrowth and innovation in today’sorganizations.

CHARACTESTIC OF THIS WHITE PAPER:

Questions and answers on:

What leadership practices enableorganizations to develop direc-tion, alignment and commitmentfor Global Responsibility?

How leadership develop GlobalResponsibility perspectives andstrategies?

What challenges do leaders face in using a Global Responsibilityframework?

What organizational systems andstrategies have been implemented to foster responsible growth andinnovation?

PROPOSED OUTCOMES OF READING THISWHITE PAPER

Develop an understanding andapplication of CCL’s breakthroughresearch on Globally ResponsibleLeadership on the leadership devel-opment needs for current andfuture globally responsible leaders.

Deepen organizational awareness ofleadership beliefs and practices for making Global Responsibility part of current and future businessmodels.

Identify how to develop as a leaderwith emphasis on providing long-term vision and strategic leadershipaddressing social, environmentaland economic issues.

Provide insights on the new roleleadership plays in today’s organi-zations.

Understand how to support global-ly responsible leadership and howto integrate it with other organiza-tional development efforts.

Gain insight into the changingnature of the business leadershipenvironment and how leadership forGlobal Responsibility contributes toshaping a high performance leader-ship culture.

Understand the importance of building a learning environmentfor globally responsible leadershipdevelopment to deal with impend-ing and future organizational challenges and sustainable business development.



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

Practice 1: Developing Vision, Strategy and Policies

Practice 2: Support from Top Management

Practice 3: Operationalizing

Creating Alignment

Practice 4: Engaging across Boundaries

Practice 5: Communication System and Practices

Practice 6: Empowerment and Development

Maintaining Commitment

Practice 7: Performance and Accountability

Practice 8: Ethical Actions

Corporate Responsibility and the Role of Leadership:

Implications for Action

Globally Responsible Leadership Assessment

Bios

Acknowledgments

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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 andintegrated principles of globallyresponsible leadership (GRL). Thiswhite paper reports on the leadershippractices, policies, strategies and sys-tems of companies recognized fortheir GRL efforts. Specifically, itreports on eight core leadership prac-tices that successfully enable globalresponsibility:

1. Developing globally responsiblevision, strategies and policies

2. Operationalizing global responsibil-ity into the core business model

3. Enlisting the support of top management

4. Communicating global responsibility

5. Engaging with stakeholders andacross boundaries

6. Empowering employees in ensuringglobally responsible development

7. Establishing performance andaccountability processes within theorganization

8. Pursuing ethical actions for globalresponsibility

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 anorganization’s culture supports – orhinders – global responsibilityefforts.

Since leadership does play such animportant role in an organization’sability to have successful globalresponsibility outcomes, develop-ment of leadership competenciesand capabilities is critical, both atthe individual and organizationallevels.

Leadership for global responsibilitygoes beyond setting a vision andgoals. The central point is action tocreate alignment and to maintaincommitment, such as: configurationof resources, development of sup-porting policies, implementation ofglobally responsible decision-mak-ing criteria, setting personal exam-ples, stakeholder engagement andalliances, and development of aglobally responsible mindset.

The journey to global responsibilityinvolves challenges most organizationshave never experienced before. Facingthese challenges requires leaders to beagile, think in new ways, ask the rightquestions and be comfortable not hav-ing all the answers.


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 ingenerating positive outcomes and limiting any detrimental impact. While the“what” of global responsibility is well defined, little is known about “how” toimplement the triple bottom line effectively or how to identify the relevant leader-ship practices. Conceptual approaches also offer no recognition of the individualor organizational challenges encountered when implementing a globally responsi-ble strategy or when developing a culture of responsibility. Many organizationsfind that the right kind of leadership is a key challenge when developing workableglobal responsibility strategies, redesigning organizational systems and processes,and/or forging the required culture change in supportof global responsibility. As a company begins tomove toward globally responsible operationsworldwide, it will need to develop andimplement a new or more adaptive busi-ness model that addresses how theorganization sets direction, createsalignment and maintains commitmentto its responsibility goals.

This white paper presents eightdomains of leadership practices that,when sufficiently developed and car-ried out throughout the organization,supply the ground work for successfulimplementation of global responsibilityinitiatives. This figure presents the eightcategories, explained in full in the followingpages.

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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 andcommitment for global responsibility?

What challenges do leaders face in using a triple bottom line framework (people-planet-profit)?

What organizational systems and strategies have been implemented to foster responsible growth and innovation?

SUMMARY OF KEY QUESTIONS

Top management support

Ethicalactions

Engagingacrossboundaries

Empowerment& development

Operation-alizing GR

Performancedevelopment &accountability

Communication

Developing vision, strategyand policies

THE EIGHT CATEGORIES OF LEADERSHIP PRACTICES FOR GLOBAL RESPONSIBILITY

Dir

ecti

on

Comm

itment

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 businessstrengths and external demands sets the foundation for the global responsibilityjourney. The elements of vision, strategy and policy are closely intertwined, and ittakes resilience and continuity to set these new directions effectively. First, to buildglobal responsibility, a company needs a long-term vision that goes beyond “beinggreen” or “doing good.” This vision should be rooted in the core business of thefirm, take into account its strengths, and focus and recognize the demands of avariety of stakeholders. The vision is a joint effort that takes into account demandsand knowledge from across the organization’s leadership team. Creating a visionhelps order and prioritize the many potential activities a company undertakes.Once a compelling, globally responsible vision is developed, strategies are craftedto achieve the vision. Some strategies enable business opportunity, social good andenvironmental protection. In addition, these strategies often go above and beyondcompliance or what is required by law and include long-term goals.

Developing specific policies that support global responsibility serves to link visionand strategy to organizational systems and day-to-day operations. A dynamic,organizational vision and far-reaching globally responsible strategies require newrules for operating and a new understanding of how systems work and processeslink together.

Organizations purposefully employ a process of small but steady steps towardsthe achievement of key goals. Furthermore, creation of a formal vision statement,strategies and policy does not always precede socially responsible actions andprojects. Companies can develop formal strategy after becoming familiar with theglobal responsibility lexicon made visible through various media and emphasizedby various interest groups.

The implementation of basic practices is the push factor for more integrated andadvanced leadership for global responsibility. In other cases, the visibility anddemand for global responsibility will drive social assistance or environmentalaction, which in turn will encourage integration into the business model and willsupport 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, with a strategy of little steps.Start with a dual bottom line and move towards a triple bottom line. Create a spirit ofexceeding compliance expectations.

Integrated into: Mission statement, company vision statement, official procedures anddocuments, business plan, balanced scorecard, activities outside the core business

DEVELOPING VISION, STRATEGY AND POLICIES


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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, oftenincluding major change processes. It takes visible top management support andsustained commitment from executives to convince others in the organization thata move towards global responsibility is not just aresponse to current fashion, but a continuous andstrategic reorientation that is worth the effort. Whilechange can also come from the bottom up, it is clearthat 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 responsibilityinside the company and in the provision of hardresources for responsibility efforts. It is also shownthrough consistency, which makes the difference inwhether global responsibility is seen as a real businesscommitment or as simply “the flavor of the day.” Topmanagement support proves particularly relevantwhen challenges arise – such as rising costs anddecreasing revenues, difficulties with sustained stake-holder engagement and client acceptance of globallyresponsible 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 globallyresponsible efforts as the “CEO’s baby.” Maintain continuous global responsibilityefforts. Participate in globally responsible programs and events.

Integrated into: Investment decisions, strategic planning, regular briefings, executivespeeches, internal newsletters, awards, rewards and recognition, celebrations, globalresponsibility 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 integratedacross business lines and locations. The challenges an organization faces acrosslocations and business lines are too diverse to be dealt with by the same tools oractions. Yet to make a difference, some high-level integration is necessary toensure the common vision will be enacted in all geographies and at all levels. Asone of human resources global manager said:

“There was a necessity to make a link between our company statement, the code ofconduct and … some key performance indicators, which are really showing withnumbers that we are doing what we have written on nice paper. So I had meetingswith 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, eachsite has to deliver according to the goal they set for themselves. For example, for thearea of training … we want to have the action plan – and the training session forthe people actually held.”

To further integrate global responsibility into the business, local specification ofefforts that make sense in the particular geography is a plus. In other words, fromthe same mission or common goal, different leadership practices are neededacross 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 workforceat all levels to make sense of the organization’s focus on global responsibility andto act accordingly.


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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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 promotethe triple bottom line (people-planet-profit) and are one of the best allies for globalresponsibility. It requires leaders to work across personal boundaries of social iden-tity, internal boundaries of level and function, and external boundaries of organiza-tion, country or region.

Leaders who engage across boundaries develop a culture and systems to approachstakeholders at any level (e.g., with direct reports and teams/groups/departments,top management, clients and customers, suppliers or society as a whole). Theyactively reach out to the external community and build balanced relationships witha clearly stated and understood reciprocity of commitment, responsibility and bene-fit. Boundaries among stakeholders are solved to create alignment through team-work, cross-functional activities and projects. Some companies engage employeesby asking them to address striking challenges or to collaborate toward a commongoal with societal or environmental benefit. Others provide incentives for individu-als or groups that make a significant difference.

In this global society, national, international, multinational and global companiesare a conglomeration of different realities. There can be different standards andneeds for global responsibility across levels, divisions, coun-try subsidiaries and cultures. The dialogue among stakehold-ers is advanced by bridging these differences and bound-aries. Ownership and responsibility for stakeholder engage-ment becomes a core leadership practice. Commitment ismaintained when coalitions are clearly established and over-come difficulties that may arise. Diverse challenges are seenas opportunities. These include internal stakeholder engage-ment, difficulties in raising global responsibility awarenessoutside a headquarters location, variable standards in devel-oping countries, and difficulties in making global responsi-bility something that is shared at every level in the organiza-tion. Development of training programs can partially addressand overcome such organizational obstacles.

In summary, the concept of global responsibility requires organizations to focus ontheir 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+ goals publicly visible.

Integrated into: Community involvement programs, government liaisons, industry-specific lobbying, partnerships and collaboration

ENGAGING ACROSS BOUNDARIES

“First you have to talk theirlanguage, so you don’t talksustainability, you don’t talkGRI, you don’t talk whateverbecause they don’t knowwhatever it is and they don’tcare. But you just have to gook, this is a project. We wantto reduce the losses from ourfactory – and benefit theextended community bydonating the leftover produc-tion without paying extrataxes for making donations.”(CSR manager)


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Develop a communication system for global responsibility that is grounded

in the organization’s core culture and communication systems.

Leaders who excel at global responsibility develop effective practices, policies and procedures for communication, using a multitude of channels and communicating frequently. They share information about core business needs and directions, suc-cesses and challenges of responsible development, as well as its applicationthroughout the organization and across organizational boundaries.

When firms span diverse contexts and cultures, as is common in multinational andglobal organizations, communication practices must consciously reflect these dif-ferences. Effective and varied communication is initiated by leaders and managersand directed towards various stakeholder groups. Communication includes bothinformal and formal activities, verbal and written, with the strategic purpose ofmaintaining and widening organizational understanding, acceptance and commit-ment to global responsibility. As one of the person we interviewed said:

“So we try to communicate that at various levels in a top-down manner and, hope-fully, this then percolates through the organization and the managers take theresponsibility and… they take this on board and actually use it in their day to daylife.”

“We have a quarterly process to communicate other things that are happening insidethe company but also outside…. This communication session is handled by theCOO or CEO or CFO, those three people handle it, with the top 220 leaders fromacross the company, from various businesses.”

Another option is to create and implement a real-twoway communication process with people inside andoutside the organization to inform them about the com-pany’s direction for global responsibility and to ensurecommitment and create a deeply shared understandingamong stakeholder groups. The two-way leadershippractices that are important to communication includelistening, educating and an ongoing dialogue with oth-ers inside and outside the organization.

The most effective path incorporates honest communication practices that are ori-ented towards sharing or celebrating success for alignment and advancement,rather than advertising or social marketing. Using globally responsible plans andaccomplishments as a marketing tool is not seen as contributing to the strategicprogress of the company. As somebody said:

“You can do a lot of these things, but you don’t want to brag about them. If you do,it could easily create bad sentiments….”

C O M M U N I C AT I O N S Y S T E M A N D P R A C T I C E S


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C O M M U N I C AT I O N S Y S T E M A N D P R A C T I C E S ( c o n t i n u e d )

On the other hand, genuine pride in outstanding achievements that are communi-cated transparently and without bragging can contribute to a high level of align-ment inside and outside company boundaries.

Internal leadership communication practices include honesty about progress orproblems involved in implementing environmental or social goals. Articulatinghow global responsibility “translates” into the day-to-day work of each employeerepresents an important practice and challenge and is closely tied to the need tohave everyone on board. For example, communication about global responsibilityshould be included in new employee on-boarding programs and in the internalcompany newspaper.

The type and level of communication is targeted to translate globally responsiblestrategy into understandable language that can ally employees at all levels.Successful external practices include open dialogue with other companies – evencompetitors – who are walking the same path.

Practices: Frame global responsibility as a business need. Share information aboutsuccesses and challenges. Raise awareness. “Translate” between cultures and differentlevels. Encourage two-way communication.

Integrated into: Staff meetings, shareholder meetings, verbal or text-based and visualcommunication, PR/advertising, reporting, media

COMMUNICATION


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Establish systems and practices that empower employees to act in globally

responsible ways. Include global responsibility in organizational develop-

ment activities. Link all empowerment and development efforts to global

responsibility.

Designing and implementing globally responsible activities can bring a companytogether. Empowerment and development for global responsibility refers to lead-ership practices that enhance an individual’s power to perform responsibly and toindividual and organizational development that promotes the understanding andimplementation globally responsible activities.

Effective leadership practices for empowerment and development include mentor-ing, coaching and training for sustainability. Moreover, offering challengingassignments that link core business activities with the triple bottom line have clearpotential. Formal training helps employees understand and commit to people,planet and profit goals. Training is either provided as a stand-alone activity or isintegrated into other standard training activities. From one organization welearned what follows:

“We have training – three trainings in a month where I spend one hour explainingsustainability to them… so in the next three months I can be sure that every guy inthis unit will know what sustainability is and how his way of working will impactpeople and the planet.”

Nevertheless, formal training activities alone are not enough. The first step is todevelop managers who feel personally responsible for developing their subordi-nates on globally responsible systems, culture and activities. To this end, challeng-ing assignments are given to align core business activities with the triple bottomline approach. Emerging leaders express the strong need to be part of a movementto create a better world, and they bring this call into the workplace. Doing so cre-ates a unique opportunity for companies to learn, innovate and grow within aglobally responsible framework.

Learning and the development of systems thinking capabilities offer employeesand other stakeholders a way to achieve at higher levels and align with a globallyresponsible business model.

The purposeful mentoring of others is a developmental leadership practice provid-ing clear outcomes, as expressed by one of the managers we spoke with:

“It definitely depends on me and people down the line, so I have to ensure that I givethe right amount of training and time to people to speak about this kind of thing.”

E M P O W E R M E N T A N D D E V E L O P M E N T


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E M P O W E R M E N T A N D D E V E L O P M E N T ( c o n t i n u e d )

Other globally responsible leadership practices include support for responsibleactions, projects and ideas initiated from the bottom up and the delegation of deci-sion making to the lowest possible level. The “bottom-up” approach is comple-mented by empowerment on all levels. This does not mean flatacceptance of whatever is proposed, but instead the requestfor clear projects and prospects. As one manager said:

“If someone presents now a project and we cannotprove that this new process can be built in aclosed loop approach where there’s no waste, thenI can block it. I can push the people to think fur-ther and say okay come back and go back to thedrawing table and come back with somethingwhich is completely closed loop.”

It is well known that it is harder to develop organi-zations than individuals. But this fact has to be facedand overcome if the goal is to develop leadership prac-tices for global responsibility. Contextualizing globallyresponsible practices within local geographical, cultural andsocial situations will be highly successful. Activities in local subsidiaries that aresupported by headquarters through dedicated headcount and held up for compa-ny-wide acclaim can be turned into strategic innovations. In other words, diversifi-cation at times is the best strategy when backed up by a clear, company-widevision. At times subsidiary empowerment will be used to develop the whole company.

Practices: Mentor, coach and train others. Give challenging assignments. Use employ-ee surveys and feedback. Establish a question and answer session with the CEO.

Integrated into: Training and development activities.

DEVELOPMENT & EMPOWERMENT


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Manage performance to promote global responsibility and hold

individuals and groups accountable for their contributions.

Numeric measures ensure progress towards globally responsible actions. As thesaying goes, “what gets measured gets done.” Global responsibility goals, stan-dards and norms can be set at the individual, group and organizational levels. Ifglobal responsibility goals are included in employee performance developmentplans, they are much more likely to be achieved. These formal measures serve tomonitor and control performance and inform plans for the future. As one intervie-wee recounted:

“(In global responsibility)… the challenge was how to assess on which level weare…. and it was a task for our employees, for our high(er) management in (countrysubsidiary name), who had 18 working groups which have to assess at what level weare and where we want to get to...”

Managing performance to enhance global responsibili-ty efforts in a company doesn’t mean achieving certainstandards and then suspending efforts. Instead itentails a focus on continuous improvement, alwaysstriving for innovative ways to become better.Measures are seen as tools, not as ends in themselves.

Accountability is necessary and exploited to ensurethat global responsibility goals are not only set butenacted. Accountability at the individual level isachieved by incorporating responsibility targets intoperformance development processes, feedback ses-sions, regular reporting, professional development andcertifications (voluntary and required), as well asrewards and recognition. At the organizational level,audits and regular reporting help to ensure accountability.

“We choose external auditing because it’s more challenging. I think this is (a) farmore ambitious way to audit. For sure (it is) a tougher way for us because there isno mercy. Internally you can say okay we have this difficulty and these priorities,but with an outside firm they are paid for that, they have their own reputation andthere is no way for them to be gentle. They can see it like it is.”

P E R F O R M A N C E A N D A C C O U N TA B I L I T Y


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Another CEO spoke about the reporting system implemented to ensure accountability:

“At that time we were ending a reporting loop for our five-year reporting. We wereat the end of this timeframe and so there was the opportunity to start a new one andwe said stop, we want to do it as we have done it in the last year where we have thesustainable reporting. But proper. We will set Key Performance Indicators (KPI’s)for the environmental part and for the social part, so that we can have the sameKPI’s all over the company, which we can focus on and communicate.”

Accountability is the practice company leaders use to ensure integrity and respon-sibility. Globally responsible leadership is maintaining commitment by reconcilingthe demands, needs, interests and values of employees, customers, suppliers, com-munities, shareholders, nongovernmental organizations, the environment andsociety at large. A company’s track record in globally responsible accounting ismore effective when appropriate measures are included in both internal and sup-ply-chain activities and good global accountability practices are disseminated.

Though global responsibility is complex with multiple influencing factors, itrequires accountability by organizational leadership, individuals, stakeholders,customers and community members.

P E R F O R M A N C E A N D A C C O U N TA B I L I T Y ( c o n t i n u e d )

Practices: Implement a performance development process encompassing clear andmeasurable global responsibility criteria. Promote audits/measures. Seek and providetimely feedback. Set goals, standards and norms. Create a reporting system with spe-cific chapters. Define certifications (voluntary and required). Promote rewards andrecognition. Set up bonuses, celebrations and awards that are related to global respon-sibility.

Integrated into: Performance development plans, audits/measures, feedback, goals,standards and norms, reporting, certifications (voluntary and required), rewards andrecognition, bonuses, celebrations, awards

PERFORMANCE AND ACCOUNTABILITY


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The recognition that ethics and integrity are at the foundation of a leader’s

decision making contributes powerfully to stakeholder commitment to

global responsibility.

Acting with integrity sets an example inside and outside the company and indi-cates that global responsibility is taken seriously. In turn, this speeds up the inte-gration of global responsibility into a company’s business model. Ethical leadershipsets the example and convinces third parties of the importance of integrity.Leadership practices that display leaders “walking their talk” result in commitmentthroughout the organization. Also, consistency between the personal and profes-sional behaviours of leaders is central. It is seen as “the right thing to do” and setsthe company’s tone.

Leaders and managers who openly practice global responsibility in their personallife are role models for the workforce. Companies are more convinced to adoptglobally responsible actions when there are incentives to bridge personal and pro-fessional responsibility, such as being involved in charity or volunteering in socialand environmental activities. And this is even more effective when the subject ofthe activity is somehow related to the company’s core business (e.g., deliveringweekend youth training for the benefit of the community – with company toolsand knowledge and individual commitment).

Integrity and ethics are imperative at the organizational level and are reflected inparticipative decision making that includes all stakeholders. They also are reflectedin the use of decision criteria that integrate environmental, social and financial considerations and make the commitment of a company to global responsibilityvisible.

Again, at the organizational level, ethical actions refer to open book practices, theestablishment and enactment of integrity policies when dealing with suppliers andclients, and organizational consistency and honesty.

As one CEO revealed during an interview:

“We really tried to get our principles right before we tried to communicate them andalready put them partly in place so that people recognized, when we started to talkabout sustainable development, what it was about at least partly and that it wasn’tsomething new that was being had at a certain given time but was already started tobecome part of the fabric of the company.”

E T H I C A L A C T I O N S

Practices: Walk the talk. Adopt an open-book policy. Avoid greenwashing. Lead byexample. Develop consistency between private and professional behavior.

Integrated into: Leadership model, public relations, accounting

ETHICAL ACTIONS


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Activities focused on social and environmental concerns started long

before the concept of corporate responsibility became popular. When global

responsibility gained widespread recognition, corporations realized their

journey had already begun.

We have uncovered a variety of leadership practices that can help or hinder anorganization’s journey toward global responsibility. Given our learning so far, wesee the following implications for organizations:

The consistent application of the identified leadership practices will support anorganizational culture of global responsibility.

As leadership plays such an important role in this journey, the development ofindividual and organizational capacities to engage in the respective leadershippractices is critical. Companies cannot simply copy successful practices fromothers. Leadership practices that promote global responsibility are successfulwhen they resonate with a company’s vision, mission andculture.

It is the task of leadership to ensure the fitbetween globally responsible practices and com-pany characteristics. In doing so, leadership forglobal responsibility goes beyond setting direc-tion. It includes actions to create alignment andmaintain commitment.

The recognition that global responsibility is anever-ending journey rather than a destinationindicates that only innovative, continuouslyimproving leadership practices will enable organiza-tions to progress.

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 : I M P L I C AT I O N S F O R A C T I O N


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In the next phase of our effort, we created an assessment tool called the “GloballyResponsible Leadership Assessment” (or GRLA). This assessment gives organiza-tions wishing to improve and enhance globally responsible leadership a clear andconcise picture of their strengths and weaknesses. It is supported by learningdays, webcasts and other customized programs. Research results and practices areshared interactively to offercompanies support and advicealong their globally responsibleleadership journey.

Organizations interested in theGRLA can contact CCL or theauthors of this whitepaper.

L E A D I N G F O R G L O B A L R E S P O N S I B I L I T Y: A B O V E A N D B E YO N D G L O B A L LY R E S P O N S I B L E L E A D E R S H I P A S S E S S M E N T

Laura Quinn ([email protected]) is a portfolio manager at the Centerfor Creative Leadership. She is a lead trainer for the Developingthe Strategic Leader and Leadership at the Peak programs, which arefocused on CEO-level leaders. In addition to her program work,Laura is one of the Center’s experts on global and corporatesocial responsibility and manages research and program devel-opment efforts related to this topic. Laura holds a BA in busi-ness and an MA in communication from the University ofColorado. She earned a PhD in organizational communicationand leadership from the University of Texas at Austin.

Alessia D’Amato ([email protected]) is a research associate with theCenter for Creative Leadership-EMEA. Her research interestsfocus on individual and global leadership development. Alessiais a member of a number of international academic and profes-sional associations and has published in academic journals andin book series. Since joining CCL, she has been involved in theEmerging Leaders and Leadership for Global Responsibility researchprojects. She has a PhD in I/O psychology from the Universityof Bologna (Italy), a degree in organizational psychology fromthe University of Padova and a degree in research methodology from theUniversity of Essex (UK).

A U T H O R B I O S


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In addition to all those we had had the privilege to meet and interview in the course ofthis work, we would like to thank the following for their support of the project:

The CCL executive team for their ongoing support of research and investigation onthis topic.

In particular, we would like to thank the following companies for participating in thisstudy and for sharing their journey with us:

Wilh. Wilhelmsen (WW) is a global maritime industry group and a leading globalprovider of maritime services headquartered in Norway. The group has 350 offices in 70 countries, which cooperate with partners in an extensive global network. Founded in1861 in the port of Tønsberg, south of Oslo, WW has developed from a traditional ship-ping business with an emphasis on owning and operating vessels into a global supplierof maritime services. The group ranks as one of Norway’s foremost centers of maritimeexpertise and as an innovator with its focus on forward-looking technological development.

Danone Poland is part of Groupe Danone, a global leader in cultured dairy products(including yogurt, cheese, and dairy desserts). Danone Poland is the country’s leader infresh dairy, with a market share of approximately 40% (Q1, 2007). The company’s visionis to be the most trusted, responsible and life-enhancing brand in Poland, chosen by consumers every day.

Umicore is a materials technology company headquartered in Brussels, Belgium. Itsactivities are centred on four business areas: Advanced Materials, Precious MetalsProducts and Catalysts, Precious Metals Services and Zinc Specialties. Umicore’s over-riding goal of sustainable value creation is based on the ambition to develop, produceand recycle materials in a way that fulfils its mission: materials for a better life. TheUmicore Group has industrial operations on all continents and serves a global customerbase.

MRW is an international package delivery service headquartered in Barcelona, Spain.Founded in 1977, MRW has grown into the leading urgent delivery and logistics compa-ny in the Spanish and Venezuelan markets, with sales of more than 500 million. Its suc-cess is based on great service from an 800-franchise network of offices and enthusiasticemployees who are motivated by lifetime employment and “family-friendly” policies.

Dr. Reddy’s is a global pharmaceutical company headquartered in India and with apresence in more than 100 countries. It has wholly-owned subsidiaries in the US, UK,Russia, Germany and Brazil; joint ventures in China, South Africa and Australia; repre-sentative offices in 16 countries; and third-party distribution in 21 countries. Dr. Reddy’sis the first pharmaceutical company in Asia outside of Japan to be listed on the NYSE.Its aim is to help people lead healthier lives through two parallel objectives: deliveringaffordable and accessible medication to all parts of the world and discovering, develop-ing and commercializing innovative medicines that satisfy unmet medical needs.

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ABOUT THE CENTER FOR CREATIVE LEADERSHIP

Focusing exclusively on leadership education andresearch, the Center for Creative Leadership (CCL®) offerswhat no one else can: unparalleled expertise in solving theleadership challenges of individuals and organizationseverywhere. Founded in 1970 as a nonprofit, educationalinstitution, CCL helps clients worldwide cultivate creativeleadership – the capacity to achieve more than imaginedby thinking and acting beyond boundaries – through an array of programs, products and other services. Tolearn more, please contact us at the CCL location mostconvenient to you.

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