Principles of responsible management : glocal sustainability, responsibility, and ethics

PRINCIPLES OF RESPONSIBLE MANAGEMENT offers an international, scientifically sound, and strictly practice-related perspective. It is the first official textbook of the United Nations for the Principles for Responsible Management Education (PRME) academic network, and a reference book for companies of the United Nations Global Compact Initiative. It is a primary text for traditional business and society, business ethics, corporate social responsibility, and sustainability courses, or may serve as a practitioner handbook. Contributors are renowned academic professionals in their respective chapter topics as well as distinguished business practitioners who contribute highly relevant practice cases. The focus of the book is on the main issues encountered in the three aspects of responsible sustainability, responsibility, and ethics. Preface 10 About PRME and CRME 16 Brief Contents 17 Contents 18 Ch 1: Context: Drivers, Actors, Subjects 22 1-1: The Context of Responsible Management 23 1-2: Subjects and Actors of Responsible Management 25 1-3: The Megatrend and Its Drivers 29 1-4: Barriers, Inhibitors, and Criticisms 33 Principles of Context: Drivers, Actors, Subjects 38 Exercises 39 Pioneer Interview with Bjorn Stigson 40 Practitioner Profile: Narine Arustamyan 41 Sources 42 Ch 2: Management: Basics and Processes 44 2-1: Responsible Management 46 2-2: Management Basics and the Evolution to Prime Management 46 2-3: The Responsible Manager 56 2-4: The Responsible Management Process 60 Principles of Management: Basics and Processes 68 Exercises 68 Pioneer Interview with Jonas Haertle 69 Special Perspective: How to Become a Big Bang Being? 70 Ten Steps in the Journey toward Becoming a Big Bang Being 70 Sources 71 Ch 3: Sustainability: Managing for the Triple Bottom Line 73 3-1: Business Sustainability: Managing for the Triple Bottom Line 74 3-2: Origins of Business Sustainability 76 3-3: Concepts of Sustainability 82 3-4: Economic Development versus Sustainable Development 87 3-5: Managing Business Sustainability 91 Principles of Sustainability: Managing for the Triple Bottom Line 96 Exercises 97 Pioneer Interview with John Elkington 98 Practitioner Profile: Judith Ruppert 99 Sources 100 Ch 4: Responsibility: Managing for Stakeholder Value 104 4-1: Business Responsibility: Managing for Stakeholder Value 105 4-2: Origins of Business Responsibility 106 4-3: Concepts of Business Responsibility 110 4-4: Responsibility Management as Stakeholder Management 118 Principles of Responsibility: Managing for Stakeholder Value 125 Exercises 126 Pioneer Interview with Edward Freeman 127 Practitioner Profile: Sudhir Kumar Sinha 127 Sources 129 Ch 5: Ethics: Managing for Moral Excellence 133 5-1: Ethical Business and Ethics Management 134 5-2: Origins of Business Ethics 135 5-3: Basic Concepts of Business Ethics 139 5-4: Domains of Business Ethics 145 Principles of Ethics: Managing for Moral Excellence 168 Exercises 168 Pioneer Interview with Linda K. Trevino 169 Practitioner Profile: John C. Lenzi 170 Sources 172 Ch 6: Strategy: Responsible Competitiveness 176 6-1: Strategy and Responsible Management 177 6-2: The Goal: Responsible Competitiveness 180 6-3: Phase 1: Formulating the Mission, Vision, and Strategic Objectives 181 6-4: Phase 2: Analyzing the Strategic Environment 183 6-5: Phase 3: Crafting the Strategy 190 6-6: Phase 4: Executing and Evaluating Strategy 196 Principles of Strategy: Responsible Competitiveness 199 Responsible Strategy Checklist 200 Exercises 200 Pioneer Interview with Mark Kramer 201 Practitioner Profile: Cansu Gedik 202 Sources 203 Ch 7: Entrepreneurship: Value-Added Ventures 207 7-1: Social Entrepreneurship and Responsible Management 208 7-2: Goal: The Value-Added Venture 210 7-3: Phase 1: Understanding Social Entrepreneurship and Social Innovation 210 7-4: Phase 2: Envision Your Pathway 219 Principles of Entrepreneurship: Value-Added Ventures 232 Checklists: Social Entrepreneurship and Responsible Management 233 Exercises 234 Pioneer Interview with Mark Kramer 234 Practitioner Profile: Doru Mitrana 235 Special Perspective: Sustainable Innovation Primer 236 Sources 237 Ch 8: Organization: Responsible Infrastructure 241 8-1: Responsible Management and Organizational Theory 243 8-2: The Goal: Responsible Infrastructure 244 8-3: Phase 1: Understanding the Organization 244 8-4: Phase 2: Creating Structures for Responsible Business: Restructuring the Organization 248 8-5: Phase 3: Developing the Organization Responsibly 259 Principles of Organization: Responsible Infrastructure 268 Responsible Organization Checklist 269 Exercises 269 Pioneer Interview with Simon Zadek 270 Practioner Profile: Thomas Hugli 271 Special Perspective: Classic Organization Theories and Their Relevance for Responsible Management 272 Exercises 278 Sources 278 Ch 9: Operations: Responsible Enterprise Excellence 281 9-1: Operations and Responsible Management 283 9-2: Goal: Responsible Enterprise Excellence 283 9-3: Phase 1: Describe the Process 285 9-4: Phase 2: Be Efficient through Lean Enterprise Methods 295 9-5: Phase 3: Be Effective through Quality Management 300 9-6: Breakthrough Improvement through Six Sigma Innovation and Design 306 Principles of Operations: Responsible Enterprise Excellence 311 Responsible Operations Management Checklist 311 Exercises 312 Pioneer Interview with Sandra Waddock 312 Practitioner Profile: Cecilia Del Castillo 314 Sources 316 References 318 Ch 10: Supply Chain: Responsible Supply and Demand 320 10-1: Responsible Management and the Supply Chain 321 10-2: The Goal: Responsible Supply and Demand 322 10-3: Phase 1: Understanding the Supply Chain 323 10-4: Phase 2: Managing inside the Supply Chain 332 10-5: Phase 3: Closing the Loop 339 Principles of Supply Chain: Responsible Supply and Demand 344 Responsible Supply Chain Management Checklist 345 Exercises 345 Pioneer Interview with Michael Braungart 346 Practitioner Profile: Marine Rodriguez Azuara 347 Sources 349 Ch 11: Human Resources: HR-RM Symbiosis 351 11-1: Human Resources and Responsible Management 352 11-2: The Goal: HR-RM Symbiosis 353 11-3: Phase 0: Understanding the HR-RM Interdependent Relationship 354 11-4: Phase 1: Recruitment 360 11-5: Phase 2: Training and Development of Employees 363 11-6: Phase 3: Performance Management 370 11-7: Phase 4: Compensation, Benefits, and Employee Well-Being 375 11-8: Phase 5: Employee Relations and Communications 378 Principles of Responsible Human Resources: HR-RM Symbiosis 380 Responsible Human Resources Management Checklist 380 Exercises 381 Pioneer Interview with Liz Maw 381 Practitioner Profile: Erika Guzman 383 Sources 384 References 385 Ch 12: Marketing and Communication: Stakeholder Goodwill 387 12-1: Marketing, Communication, and Responsible Management 388 12-2: The Goal: Stakeholder Goodwill 390 12-3: Phase 1: Ensuring Effective Integrated Marketing Communication 391 12-4: Phase 2: Applying Responsible Management Marketing and Communication Tools 402 12-5: Phase 3: Customizing Stakeholder Communication 410 Principles of Marketing and Communication: Stakeholder Goodwill 414 Responsible Marketing Communication Checklist 414 Exercises 415 Pioneer Interview with Philip Kotler 415 Practitioner Profile: Adela Lustykova 416 Special Perspective: Web Communication 1.0, 2.0 and 3.0 417 Sources & Notes 420 Ch 13: International Business and Management: Glocally Responsible Business 423 13-1: Responsible Management and International Business 424 13-2: The Goal: Glocally Responsible Business 426 13-3: Phase 1: Understanding the Glocal Business Context 426 13-4: Phase 2: Assessing the Responsible International Business 436 13-5: Phase 3: Mapping International Business Activity 442 13-6: Phase 4: Responsibly Managing in a Globalized Business 452 Principles of International Business and Management: Glocally Responsible Business 457 Responsible International Business and Management Checklist 458 Exercises 458 Pioneer Interview with Geert Hofstede 459 Practitioner Profile: Laura Clise 460 Special Perspective: Comparing Globalization Superpowers and Their Politically Responsible Business Infrastructure 462 Sources 464 Ch 14: Accounting and Controlling: Stakeholder Accountability 467 14-1: Accounting and Responsible Management 468 14-2: The Goal: Stakeholder Accountability 470 14-3: Phase 0: Understand the Basics of Accounting 471 14-4: Phase 1: Identify the Account and Gather Data 475 14-5: Phase 2: Evaluation and Elaboration of the Data 480 14-6: Phase 3: Reporting 487 14-7: Phase 4: Management Control 495 Principles of Accounting and Controlling: Stakeholder Accountability 498 Responsible Accounting Checklist 498 Exercises 499 Pioneer Interview Michael Braungart 499 Practitioner Profile: Daniel Ette 500 Sources 502 References 505 Ch 15: Finance: Responsible Return on Investment 506 15-1: Responsible Financial Management 507 15-2: The Goal: Responsible Return on Investment (RROI) 509 15-3: Phase 0: Understanding Financial Management 510 15-4: Phase 1: Financing Responsible Business 514 15-5: Phase 2: Capital Budgeting and Programming Internal Activities 524 15-6: Phase 3: Results and Governance 534 Principles of Finance: Responsible Return on Investment 539 Responsible Financial Management Checklist 540 Exercises 540 Pioneer Interview with Robert Costanza 541 Practitioner Profile: Francisco Acuna Mendez 542 Special Perspective: Microfinance 543 Special Perspective: Islamic Banking 544 Sources 545 Subject Index 548 Name Index 571 WCN:,02-300 WCN: 02-300 This volume offers an international, scientifically sound, and strictly practice-related perspective. It is the first official textbook of the United Nations for the Principles for Responsible Management Education (PRME) academic network, and a reference book for companies of the United Nations Global Compact Initiative. It is a primary text for traditional business and society, business ethics, corporate social responsibility, and sustainability courses, or may serve as a practitioner handbook. Contributors are renowned academic professionals in their respective chapter topics as well as distinguished business practitioners who contribute highly relevant practice cases. The focus of the book is on the main issues encountered in the three aspects of responsible management: sustainability, responsibility, and ethics -- Publisher description Part I: BASICS.1. Context: Drivers, Actors, Subjects.2. Management: Basics and Processes.Part II: DOMAINS.3. Sustainability: Managing for the Triple Bottom Line.4. Responsibility: Managing for Stakeholder Value.5. Ethics: Managing for Moral Excellence.Part III: PLANNING.6. Strategy: Responsible Competitiveness.7. Entrepreneurship: Value-Added Ventures.Part IV: ORGANIZING.8. Organization: Responsible Infrastructure.9. Operations: Responsible Excellence.10. Supply Chain: Responsible Supply and Demand.Part V: LEADING.11. Human Resources: HR-RB Symbiosis.12. Marketing and Communication: Stakeholder Goodwill.13. International Business and Management: Glocally Responsible Business.Part VI: CONTROLLING.14. Accounting and Controlling: Stakeholder Accountability.15. Finance: Responsible Return on Investment.