Corporate Integrity : A Toolkit for Managing Beyond Compliance

by Kennedy-Glans, Donna; Schulz, Robert

• ISBN13: 9780470835692
• ISBN10: 0470835699
• Edition: 1st
• Format: Hardcover
• Copyright: 2005-04-29
• Publisher: Wiley

Summary

How good companies build a culture of integrityIn the present environment of corporate governance brought on by high-profile executive scandals, this book makes a strong case for encouraging business leaders to manage beyond compliance. Achieving the bare minimum of compliance isn't enough. By making corporate responsibility and integrity a strategic priority-rather than something companies are forced to comply with-companies can realize tangible financial returns and benefits. This book provides practical advice, effective tools, and time-tested best practices for approaching corporate integrity strategically and managing an integrity program on a day-to-day basis.There is a growing realization that compliance with the rules is only a minimum standard of performance, and an increasing demand from stakeholders at every level - shareholders, employees, customers along the entire supply chain, consumers, advocacy groups, and the local community at large - for more transparency and accountability from corporations.But most businesses have little experience and few tools to deal with the urgent demand to increase corporate responsibility. Corporate Integrity provides practical tools and proven processes to manage complex integrity dilemmas and support implementation: Explains how to create a culture of integrity in your organization and how to motivate the appropriate corporate behaviors. Coverage includes: How to assess and measure integrity; how to align corporate integrity commitments and actions; how to design and implement dependable and strategic corporate accountability systems and processes; how to develop corporate integrity standards and report on them, and much more. Includes a wealth of practical business tools and best practices that readers can apply to improve the level of corporate integrity in their own company. Features three detailed case studies and numerous other examples that illustrate corporate integrity dilemmas and solutions in action. Shows how managing corporate responsibility strategically and proactively can go beyond a mere public relations exercise to foster a corporate "win" in the court of popular opinion and in the marketplace. Bridges the gaps between corporations, governments, employees, interest groups, and consumers. Offers tools and solutions that apply to both for-profit corporations and non-profit organizations.

Author Biography

Donna Kennedy-Glans’s expertise is drawn from more than twenty years of experience as a lawyer and business executive, representing large international corporations struggling to manage integrity dilemmas at head office and on the ground. Ms. Kennedy-Glans has pioneered and implemented best practices in the field of business integrity in over thirty countries. More recently, she advises the voluntary sector on integrity, and bridges relationships between the private and voluntary sectors (www.integritybridges.com). She is a frequent speaker and workshop presenter at events and conferences around the world.

Dr. Bob Schulz is a professor of strategic management at Haskayne School of Business at the University of Calgary, where he has coached business leaders and trained future business leaders for three decades. Dr. Schulz’s award-winning teaching/learning style focuses on bridging academic theory and practical application. As a strategic planning consultant, he has worked closely with senior leaders in both the public and private sectors.

Table of Contents

Preface	xix
Acknowledgments	xxvii
Introduction
PART 1: NEW FRONTIERS IN MANAGING CORPORATE INTEGRITY	5	(138)
New Frontiers in Managing Corporate Integrity	7	(18)
What Does Integrity Mean?	7	(1)
Where Are We? How Did We Get Here? Where Are We Going?	8	(2)
Where Are We?	8	(1)
How Did We Get Here?	9	(1)
Where Are We Going?	10	(1)
Managing to Compliance	10	(1)
Managing Business Integrity Beyond Compliance	11	(1)
What Motivates Compliance and Beyond Compliance Management?	12	(1)
The Business Case for Beyond Compliance Management of Corporate Integrity	13	(6)
Proactive Management or Reactive Tactics?	19	(1)
The Downside to Reactive Responses	19	(2)
The Upside to Proactive Strategies	21	(1)
Managing New Frontiers in Corporate Integrity	21	(2)
Business Tools to Navigate the New Management Frontiers	23	(2)
Frontier 1: Understanding Perspectives Related to Integrity and Corporations	25	(12)
Business Integrity: An Inside Look	26	(1)
Business Integrity Guidelines Are Not a Recent Phenomenon	27	(1)
The Integrity Ladder	27	(7)
The Critical Link Between Corporate Integrity and Accountability	34	(1)
Little Protection Behind the Corporate Veil	34	(1)
There Is a Need to Talk about Corporate Motivation	35	(2)
Frontier 2: Clarifying the Roles and Responsibilities of Corporations	37	(28)
Conflicting Perspectives on Corporate Roles	38	(2)
Polarization of Opinion on the Role of Corporations	40	(1)
Boundary Questions	41	(1)
Integrity Dilemmas	42	(1)
Dilemma: Corporate Conflict of Interest	43	(1)
Dilemma: Balancing Stakeholder Expectations	44	(2)
Dilemma: Operating in Legal Vacuums	46	(2)
Dilemma: Allocation and Sharing of Benefits of Investment	48	(1)
Dilemma: Dual Standards	49	(2)
Dilemma: Corporate Complicity	51	(3)
Navigating Frontier 2	54	(1)
Defining Corporate Roles Beyond Compliance	54	(2)
Business Tools: Stakeholder Grid and Impact Assessment Tool	56	(2)
Focus on Community Stakeholders	58	(7)
Frontier 3: Aligning Corporate Integrity Values, Commitments, and Action within Individual Corporations	65	(22)
The Integrity Grid	66	(3)
The Weakest Link	69	(1)
Motivation for Valuing Business Integrity	70	(2)
Creating the Measuring Stick	72	(2)
Corporate Culture: Process or Rules?	74	(1)
Depth and Breadth of Corporate Engagement	75	(3)
Layers of Corporate Talk on Integrity	78	(1)
Corporate Walk Rests on Corporate Vision	79	(2)
Steps to Proceed with Documentation of Corporate Commitments on Business Integrity	81	(3)
Managing Alignment between Integrity Commitments and Practices	84	(3)
Leadership	84	(1)
Education, Training, and Awareness Raising	85	(1)
Critical Need for Accountability	86	(1)
Frontier 4: Explaining Differences Between Corporations Regarding Integrity Values, Commitment, and Action	87	(38)
What Are the Motivators?	87	(2)
Where Are We? Where Do We Want to Go? How Do We Get There?	89	(12)
Where Are We?	92	(4)
Where Do We Want to Go?	96	(1)
How Do We Get There?	97	(4)
Business Tools	101	(13)
Permeation of Change Model	101	(5)
Adapted Best Practices Tool	106	(3)
Benchmarking Practice	109	(1)
Community Investment Strategy Tool	110	(4)
Regulatory and Contractual Commitments to Communities	114	(1)
Voluntary Commitments to Community Investment	115	(3)
Philanthropic Investments	118	(1)
Understanding Community Stakeholders	118	(3)
Succession of Business Integrity Vision	121	(1)
Raising the Floor on Business Integrity	122	(3)
Frontier 5: Evaluating a Corporation's Accountability for Business Integrity and Measuring Integrity Differences Between Corporations	125	(18)
Business Integrity Accountability Cycle	126	(14)
Corporate Management Systems	126	(7)
Functional Accountability	133	(2)
Performance Measurement and Monitoring Systems	135	(3)
Verification Systems	138	(1)
Independent Verification	139	(1)
Benchmarking	140	(1)
Reporting Systems	140	(3)
PART 2: PROCESS FOR MANAGING CORPORATE INTEGRITY AND SCENARIO APPLICATIONS	143	(124)
Process for Proactive Management of Corporate Integrity	145	(7)
Proactive Management or Reactive Tactics	145	(1)
Embedding Business Integrity Practices through Scenario Training	146	(1)
Framework to Apply Business Tools: Evaluation and Decision-Making Framework for Managing Business Integrity	147	(3)
Community Participation Dilemmas	150	(2)
Scenario A: Applying Business Integrity Tools to a Business Development Opportunity for a European-based Investor in Vietnam, an Emerging Market Economy	152	(39)
Corporate Background	153	(1)
Evaluation and Decision-Making Framework for Managing Business Integrity	154	(1)
Navigating Frontier 1 in Corporate Integrity: Understanding Perspectives Related to the Integrity of Corporations	154	(1)
Phase 1A: Assessing Integrity Commitments and Actions (Historical) of Individual Departments within ABC Corporation	154	(3)
Phase 1B: Plotting ABC Corporation's Departments on the Integrity Ladder	157	(3)
Navigating Frontier 2: Defining the Proper Role of Corporations	160	(1)
Phase 2A: Applying the Stakeholder Grid and Impact Assessment Tool	160	(3)
Phase 2B: Anticipating Stakeholders' Expectations of ABC Corporation and Potential Dilemmas Arising from Project Impacts and Stakeholders' Expectations	163	(3)
Potential Dilemma A-1: Differing Perspectives on ABC Corporation's Role in Advocating for Transparent Business Practices and Enforcement of Laws in Vietnam	163	(1)
Potential Dilemma A-2: Different Perspectives on the Role of ABC Corporation in Supply Chain Issues	164	(1)
Potential Dilemma A-3: Different Stakeholder Perspectives on the Role of ABC Corporation in Building Local Capacity and Balancing Stakeholder Expectations	165	(1)
Phase 2C: Creating Opportunity for Innovation with Multidepartment Brainstorming to Identify Feasible Alternatives	166	(2)
Multidisciplinary TaskForce Analysis of Potential Dilemma A-1: The Role of ABC Corporation in Advocating Transparent Business Practices and Enforcement of Laws in Vietnam	166	(1)
Multidisciplinary Task Force Analysis of Potential Dilemma A-2: Define ABC Corporation's Response to Supply Chain Issues	167	(1)
Multidisciplinary Task Force Analysis of Potential Dilemma A-3: How Will the Company Reconcile Competing Expectations for Local Benefits?	168	(1)
Navigating Frontier 3: Aligning Corporate Integrity Values, Talk, and Walk	168	(1)
Phase 3A: Identifying ABC Corporation's Corporate Commitments to Business Integrity That May Be Relevant to the Three Identified Integrity Dilemmas	169	(1)
Phase 3B: Plotting the Departmental Integrity Talk and Corporate Integrity Talk on the Integrity Ladder	170	(3)
Phase 3C: Plotting Departmental Integrity Commitments, Departmental Integrity Actions, and Corporate Integrity Commitments on Integrity Grid	173	(8)
First Plotting on Integrity Grid: Departmental Commitments and Departmental Actions before Stakeholder Grid and Impact Assessment Process	173	(4)
Second Plotting on Integrity Grid: Departmental Commitments and Departmental Actions after Stakeholder Grid and Impact Assessment Process	177	(4)
Navigating Frontier 4: Understanding Differences Between Corporations Regarding Corporate Values, Commitments, and Action	181	(6)
Stage 1: Identifying Business Integrity Best Practices	183	(2)
Stage 2: Assessing Best Practices Based on Risk/Impact and Ease of Implementation	185	(1)
Stage 3: Selecting Best Practices for ABC Corporation and Determine Implementation Strategy	186	(1)
Navigating Frontier 5: Accountability	187	(1)
Phase 5A: Clarifying Accountabilities with the Business Integrity Accountability Cycle	187	(1)
Phase 5B: Implementing Responsive Strategies and Monitoring Outcomes	188	(1)
Phase 5C: Continuous Improvement	189	(1)
Observations for ABC Corporation: Impacts of Reactive or Proactive Management of Business Integrity	189	(2)
Scenario B: Application of Business Integrity Tools to Private Company Opportunity for a Family Farm Corporation in Canada, a Developed Market Economy	191	(30)
Corporate Background	191	(1)
Evaluation and Decision-Making Process for Managing Business Integrity	192	(1)
Navigating Frontier 1 in Corporate Integrity: Understanding Perspectives Related to the Integrity of Corporations	192	(1)
Phase 1A: Assessing Integrity Commitments and Actions of Individual Shareholders of Family Farm Corporation	193	(2)
Phase 1B: Plotting Family Farm Corporation's Shareholders on the Integrity Ladder	195	(1)
Navigating Frontier 2: Defining the Proper Role of Corporations	196	(1)
Phase 2A: Applying Stakeholder Grid and Impact Assessment Tool	197	(2)
Phase 2B: Anticipating Stakeholders' Expectations of Family Farm Corporation and Potential Dilemmas Arising from Project Impacts and Stakeholders' Expectations	199	(2)
Phase 2C: Creating Opportunity for Innovation: Brainstorming to Identify Feasible Alternatives	201	(2)
Innovation Outcomes by Shareholders re: Potential Dilemma B-1	201	(1)
Innovative Outcomes by Shareholders re: Potential Dilemma B-2	202	(1)
Navigating Frontier 3: Aligning Corporate Integrity Values, Talk, and Walk	203	(1)
Phase 3A: Identifying Family Farm Corporation's Corporate Commitments to Business Integrity That May Be Relevant to the Two Identified Integrity Dilemmas	204	(1)
Phase 3B: Plotting Shareholder Integrity Commitments and Corporate Integrity Commitment on the Integrity Ladder	204	(1)
Phase 3C: Plotting Shareholder Integrity Commitments and Shareholder Integrity Actions on the Integrity Grid	205	(7)
First Plotting on Integrity Grid: Shareholder Commitments and Shareholder Actions before Stakeholder Grid and Impact Assessment Process	206	(2)
Second Plotting on the Integrity Grid: Shareholder Talk and Shareholder Walk after Stakeholder Grid and Impact Assessment Process	208	(4)
Navigating Frontier 4: Understanding Differences between Corporations Regarding Corporate Values, Commitments, and Action	212	(1)
Phase 4 in the Evaluation and Decision-Making Framework for Business Integrity Management	213	(4)
Stage 1: Identification of Business Integrity Best Practices	214	(2)
Stage 2: Assessment of Best Practices	216	(1)
Stage 3: Select Best Practices for Family Farm Corporation and Determine Implementation Tactics	217	(1)
Navigating Frontier 5 in Business Integrity: Accountability	217	(1)
Phase 5A: Business Integrity Accountability Cycle	218	(1)
Phase 5B: Implementing Responsive Strategy and Monitoring Outcomes	219	(1)
Phase 5C: Continuous Improvement	219	(1)
Observations for Family Farm Corporation: Impacts of Reactive or Proactive Management of Business Integrity	219	(2)
Scenario C: Applying Business Integrity Management Tools to Community Stakeholders	221	(46)
Corporate Background	221	(1)
Evaluation and Decision-Making Process: Focus on Managing Community Participation	222	(2)
Navigating Frontier 1 in Corporate Integrity: Understanding Perspectives Related to the Integrity of Corporations in Responsiveness to Community Stakeholders	224	(1)
Phase 1A: Assessing Integrity Commitments and Actions (Historical) of Individual Departments within DEF Corporation	224	(4)
Phase 1B: Plotting DEF Corporation's Departments on the Integrity Ladder	228	(3)
Navigating Frontier 2: Defining the Proper Role of Corporations in Relation to Community Stakeholders	231	(1)
Phase 2A: Applying the Stakeholder Grid and Impact Assessment Tool to Key Community Stakeholders in the Gas Development Project and Assessing Potential Stakeholder Impacts	231	(4)
Phase 2B: Anticipating Stakeholders' Expectations of the Corporation, and Identifying Potential Integrity Dilemmas Arising from Project Impacts and Expectations of Community Stakeholders	235	(2)
Phase 2C: Creating Opportunity for Innovation with Multidisciplinary Brainstorming to Identify Feasible Options to Manage Dilemmas	237	(3)
Navigating Frontier 3: Aligning Corporate Integrity Values, Talk, and Walk in Relation to Community Participation	240	(1)
Phase 3A: Identifying DEF Corporation's Commitments to Community Participation	241	(1)
Phase 3B: Plotting Departmental/Divisional Commitments to Community Participation and Corporate Commitments to Community Participation on the Integrity Ladder	241	(2)
Phase 3C: Applying the Integrity Grid	243	(8)
First Plotting on Integrity Grid: Department Commitments and Department Actions before the Stakeholder Grid and Impact Assessment Process	244	(3)
Second Plotting on Integrity Grid: Department Commitments and Department Actions after the Stakeholder Grid and Impact Assessment Process	247	(4)
Navigating Frontier 4: Understanding Differences between Corporations Regarding Corporate Values, Commitments, and Action on Community Participation	251	(1)
Phase 4A: Applying the Community Investment Strategy Tool	252	(3)
Phase 4B: Applying the Permeation of Change Model	255	(1)
Phase 4C: Applying the Adapted Best Practices Tool	256	(4)
Stage 1: Identifying Business Integrity Best Practices in Relation to Community	256	(3)
Stage 2: Assessing Best Practices Based on Risk/Impact and Ease of Implementation	259	(1)
Stage 3: Selecting Best Practices for DEF Corporation and Determining Implementation Tactics	259	(1)
Phase 4D: Benchmarking Practices	260	(1)
Navigating Frontier 5: Accountability for Community Participation	261	(1)
Phase 5A: Clarifying Accountabilities with the Business Integrity Accountability Cycle	261	(2)
Phase 5B: Implementing Responsive Strategy for Community Participation	263	(1)
Phase 5C: Developing Continuous Improvement	263	(4)
Observations for DEF Corporation: Impacts of Reactive or Proactive Management of Business Integrity	263	(4)
PART 3: THE ROAD AHEAD FOR CORPORATE INTEGRITY	267	(24)
The Horizon: The Finish Line Is Still Moving	269	(22)
The Incentive: Carrots or Sticks?	269	(2)
The Stick as Motivator	271	(4)
Corporate Watchdog Culture	271	(1)
Regulating Corporate Behaviors	271	(1)
Stakeholder Wrath	271	(4)
The Carrot as Motivator	275	(5)
Corporate Recognition and Reward Strategies	276	(1)
Regulatory Incentives	276	(1)
Stakeholder Engagement and Voluntary Action Models	277	(3)
Evaluating the Benefits of Alliances	280	(1)
Integrity Frontiers	281	(7)
Revenue Allocation: Local Benefit Issues	281	(2)
Debt Forgiveness by Corporations	283	(1)
Allegations of Corporate Complicity in Human Rights Violations	283	(1)
Corporate Liability for Business Integrity Commitments	284	(1)
The Long Arm of Corporate Liability	284	(1)
Accountability of Not-for-Profit Organizations	285
Shareholder Activism	283	(3)
Industry Self-Regulation	286	(1)
Attempts to Integrate Social Impacts into Project Assessments	286	(1)
Cultural and Regional Context	287	(1)
Managing Integrity Frontiers Beyond Compliance	288	(3)
Appendix: Business Tools	291	(16)
Integrity Ladder	292	(3)
Stakeholder Grid and Impact Assessment Tool	295	(1)
Integrity Grid	296	(3)
Permeation of Change Model	299	(1)
Adapted Best Practices Tool	299	(2)
Benchmarking Practices	301	(1)
Community Investment Strategy Tool	302	(2)
Business Integrity Accountability Cycle	304	(1)
Evaluation and Decision-Making Framework for Managing Business Integrity	304	(3)
Index	307