This blog is about the relationship between organizations and the people who work for them. And, it’s dedicated to the millions of people around the world who go to work every day wanting to do a great job.
Corporate social responsibility
Looking for our own revolutionary ‘spring’!
It’s been quite a week! A week that is making me scratch my head and wonder and brings me back to a topic I’ve written about here at least once before.
Michael and I are very lucky to live in Montreal for many reasons, but one of them is that there is a lot going on here in terms of institutional sustainability.
A friend of mine, Milla Craig, is leading the nascent Finance and Sustainability Initiative. This is a “cross-section of finance and sustainability experts and professionals focused on transforming the traditional business model and enabling the finance community, business leaders and government institutions to make and value socially and environmentally responsible investments.” This is a good thing.
And, the David O’Brien Centre for Sustainable Enterprise has recently launched the Sustainable Investment Professional Certification. The certification program will introduce finance professionals to a new way of thinking about investing. A way to ensure sustainable investment by understanding potential future risks to business from an environmental, social, and governance point of view. This is a good thing.
As a member of Concordia University’s extended community, I participated in a recent David O’Brien Centre Corporate Roundtable earlier this week. The room was full. The perspectives widely varied – academic, corporate, entrepreneurial, NGO, volunteer. But everyone in the room was interested in questions of sustainability and how they might contribute positively to changing the world [my words]. This is a good thing
Dr Peter Brown from McGill started off the discussion with a brief presentation. The topic was ‘Degrowth’. There will be an international conference here on the topic next year. The premise is that growth as the underlying motivation for our current economic system is the main factor driving the decline of the environment. Though we didn’t go there, I’m sure that we could also argue that organizations that focus on growth as their primary motivation will increase social and governance risk as well.
Now here’s what I found most interesting and perplexing. As a student studying Biology in the mid-70s I read “Limits to growth”. The case was compelling. So here I am 40 years later. I asked Dr Brown what had changed since then. He said: “We have more evidence.” This is a bad thing.
So, how do we move from research and raising awareness to system wide action, fast? How do we take the energy, focus and action of the grass roots sustainability movement to move our political and economic systems. Do we need our own revolutionary ‘spring’?
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Losing the spark.
I’ve been thinking a lot about this this week. I’ve been recruiting and interviewing and orienting interns and volunteers for a roof top garden project I’ve been working on for the past couple of years. It’s turning into a pretty significant urban farming project in the heart of Montreal’s most commercial area on 6,200 square feet of our church hall’s roof. We want to create a sustainable business by selling part of our production so we can give the rest [hopefully most] of it away.
And here’s the thing. Talking about the project just gets people excited. And I mean everybody. My barista. My relatives, friends, clients, neighbours. Old people. Young people and pretty much everyone in between. Gardeners and non-gardeners. It’s easy to care about and talk about. And guess what people are interested. They want to figure out if, when, and how they can help. And every hurdle that comes up [and believe me there are many], there’s someone there with a way to get over it, around it, under it. It’s just amazing the energy the project attracts.
When I’m working on client projects it is rare to feel the same way. The things we find ourselves trying to share with employees are hard, or somehow become hard, to talk about and even harder to have people care about. Somewhere we lose the spark.
Have you ever noticed that? Is there anything we can learn from grass roots projects? If so, what do you think it is?
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Getting grassroots
This week I’ve spent a lot of time with people who are part of grassroots movements of one sort or another. And, I started to think about whether there was anything we can learn from grassroots movements like these that are making important and fundamental societal and environmental change?
It started last Friday with a fabulous evening – the Equitas host family dinner – spent with 3 of the 130 Human Rights educators who are here in Montreal for the International Human Rights Training Program. A Cambodian working on a peace and reconciliation program in a world where some citizens fear reprisals in the wake of Khmer Rouge convictions. A Brazilian Human Rights lawyer who devotes time to an NGO working on local Human Rights issues. And a children’s rights activist from The Gambia. Each of them committed to changing their society from the bottom-up. They come here to learn. They will go home to share and act. And they will change their world one action, one person at a time.
Then, because I have a crazy idea of building a rooftop garden – my field of dreams – on our Church hall, I’ve started meeting local people in the community who are working on related projects. They are working on food security, urban farming, creating a sustainable university campus and greening the downtown. They are students at Concordia who are piloting a sustainable business growing herbal tea to supply a student run and operated tea shop at the Loyola campus. They are professionals working with local action groups to green some of the most debilitated parts of the downtown. There’s one young man who went to jail for an action he took to change a regulation in The Plateau. And guess what they did. And, they are profs and grad students working on urban farming projects. It’s amazing. They are changing our urban landscape one planter at a time. It is amazing what’s going on just outside our door.
What do these movements have in common?
- They are “natural and spontaneous” movements
- They are driven by passion for the ‘cause’.
- They operate outside of “traditional power structures”
- They use “traditional power structures” to raise awareness and funds.
- They rely on informal networks to share information and resources.
- Their projects start small and local but with the clear intention of leading to big and sustainable change.
- They pilot and learn and share and pilot again.
- They build pride in the work and the community.
What do you think? Is there anything we can learn from grassroots movements that we can apply to institutional change initiatives?
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What makes a good code of conduct?
Virtually every organization of any size has a written code of conduct. I’d really never thought about them much but, in the course of doing research for two posts for this blog I’ve ended up checking out Rio Tinto’s, British Petroleum’s and the Canadian Forces among others.
I was reminded that a good code of conduct is about more than the content of a written code. It’s about “the way we do things around here”. It’s about the behaviours employees see at work every day. It’s about the institutional stories that are told both formally and informally.
That said, all this often starts with a written code. So, here are some preliminary thoughts on what I think makes a good code of conduct:
- It’s written to help all employees behave in a way that is consistent with the authentic values of the organization and in line with national and international laws and regulations.
- It’s written from an employee’s point of view and not just the organization’s. The Code is about more than maintaining the organization’s reputation. It’s about employee pride in their organization, their team and their own work.
- It’s “virtually universal in … application”. There’s no guessing about who the code applies to [all executives, managers, non-managers, business partners]. No guessing about when the code applies or doesn’t. No gray zone. No exceptions.
- It clearly defines acceptable actionable behaviours and operating practices. It is written simply and is easy to understand. Plain English. No management speak or legalese.
- The number of behaviours are relatively few, easy to remember and act on. The consequences – both positive and negative – for the institution and the individual are clear.
- It includes relevant scenarios and mini-cases that bring the values and the behaviours to life for employees and can be used as the basis for discussion.
- It is supported by a process[earlier post]. that ensures employees are introduced to the code of conduct on day-one as part of their orientation to the organization and their work. There are regular opportunities to discuss the implications of the code in their day-to-day decisions and actions with their immediate supervisor and to ask questions, provide feedback. There are ways to report suspected violations without fear.
What do you think? Is this list complete?
Do you have any examples that you think are particularly good? Why are they good?
When was the last time your executive spent time thinking about the code of conduct and its implications in terms of their day-to-day work?
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Sometimes the words do matter
Twice in the course of preparing posts I’ve found myself looking at Codes of Conduct [the first time]. In writing my post earlier this week, I found myself reading the Canadian Forces Code of Conduct. What I found was certainly not what I expected. It is clearly written, and behaviour focused. It’s virtually free of jargon and legal language.
So, today I thought I’d go back and check out British Petroleum’s Code of Conduct and compare to see if there’s anything we can learn.
Before I go any further, let me say that BPs Code of Conduct is pretty representative of most Corporate Codes of Conduct I’ve ever seen. Neither better or worse. Obviously the Canadian Forces are not in business. They have 1000s of years of military experience behind their Code of Conduct. And, I think it’s because of this that the following comparison may be instructive. Here’s what I found [italics are mine]:
British Petroleum |
Canadian Forces |
Our commitment to integrityFocus on the company and feels like PR. What does integrity look like?
|
Code of Conduct for CF PersonnelFocus on employee behaviour and feels like a practical tool. Conduct is easy to picture. |
Length and general description: |
|
| 84 pages describing topic areas and including Q&A | 28 pages + 66 pages with behaviour-based lesson plans = 95 pages |
| Management speak and jargon | Plain English |
Message from the top: |
|
| Yes – letter from the group chief executive | No |
Table of contents |
|
| Yes | No |
Introduction |
|
| 10 pages on “Our commitment to integrity”Presents context , describes “Your personal commitment”, and describes how to ask questions and raise concerns | 3 pages on scope, why, the Law of Armed Conflict, etcPresents context for the Code of Conduct
|
Organization |
|
| 6 topics [e.g. Employees], supported by 21 sub-topics [e.g.Fair treatment and equal employment opportunity] | 11 very concrete behaviours |
Why a code of conduct?: |
|
| The BP code of conduct stands for a fundamental BP commitment – to comply with all applicable legal requirements and the high ethical standards set out in this code – wherever we operate. To help us meet this commitment, the code defines what BP expects of its businesses and people regardless of location or background. It provides both guidance in key areas and references to more detailed standards, instructions and processes for further direction. | Operational missions often require CF members to make decisions under considerable stress and in times of confusion. Moreover, the course of action one elects to make during operations can have serious consequences. Decisions must often be made very quickly. Compliance with this simple Code of Conduct helps to ensure that split second decisions are consistent with the Law of Armed Conflict and Canadian law. |
Who’s it for?: |
|
| All employees must adhere to the principles and requirements contained in this code and should consult the code for guidance when acting on behalf of BP. | This publication briefly outlines the Code of Conduct applicable to all Canadian
Forces personnel taking part in all military operations other than Canadian domestic operations. |
What’s in and what’s out?: |
|
| The code cannot describe every law, regulation or BP requirement that may apply to you. The company has additional standards, instructions and processes to further implement the principles in the code. Make sure you know the rules that do apply to you.Employees need to figure out which ones apply. | The CF Code of Conduct consists of eleven rules which capture the essence of the law of Armed Conflict. This Code does not in any way replace or alter the existing treaties and conventions to which Canada is a party. Actually, it represents a summary of the Law of Armed Conflict. It is designed to assist you, your commanders and your fellow members of the armed forces to achieve legitimate military objectives while ensuring operations are carried out in accordance with the Law of Armed Conflict. You must, therefore, know and faithfully comply with these eleven rules.The rules are all there. |
Consequences for failure to comply? |
|
| Failure to do so is taken very seriously and may result in disciplinary action up to and including dismissal.
All head |
Failure to do so is contrary to the direction of your government; can adversely affect the successful completion of your military mission; dishonours you and your country; and ultimately can leave you or your subordinates open to prosecution.
Head and heart. Calls on personal, professional and national pride. |
What differences/similarities do you see? What are the implications from a culture point of view? Is there anything we can learn?
How does your organizational Code of Conduct stack up?
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Actions speak louder than words
This week, British Petroleum [BP], under Tony Hayward’s leadership, failed to make any progress in stopping or even slowing the flood of oil in the Gulf of Mexico. Five weeks after the explosion on the Deepwater Horizon oil platform the crisis is now described as perhaps the largest man-made disaster in history.
In the same week, the Canadian military leader of Canada’s mission in Afghanistan, Brigadier-General Daniel Ménard, was removed from his post after rumours of an affair with a soldier in his command.
The military responded quickly and unequivocally. Ménard is now back in Canada awaiting a hearing and potential court-martial. The allegations alone were serious enough to remove him from his post.
Back at BP, Tony Hayward, continues to run the company despite:
- The explosion of the Deepwater Horizon on April 20, 2010 that killed 11 people and began the uncontrolled oil spill in the Gulf
- Rumours that the explosion happened because the company had not invested in a relatively inexpensive remote control shut off device due to budget constraints
- The fact that the oil spill now threatens some of the most important and fragile ecosystems in North America along the coasts of Louisiana, Mississippi, Alabama, Texas, and Florida and the livelihood of millions of people. Today, on the first day of hurricane season, the potential threat to people and the environment has just increased. The current and potential costs are incalculable.
- The lack of an actionable crisis plan. Now over 5 weeks later it is very clear that the company did not anticipate an accident of this magnitude or have plans in place. Every attempt [and there have been many] to stop the flow of oil is a new and so far failed experiment.
- The fact that the direct costs to the company of responding to the spill is now reported to be at $1B
- Today’s news that BPs stock plunged 17% – Investors will pay – and that the company’s very survival is at stake. If this happens, over 80,000 employees and their families will be directly affected. The direct social and economic costs to the supply chain and everyone in and around the communities where BP operates will be huge.
In the case of the Canadian Military morale may be affected by this revelation about a man they respected and trusted to lead in a critical and dangerous theatre of operation, but they will have no doubt that the institution values the lives of the people on the mission and in the communities they are there to protect over the image of the institution or the reputation of the commander.
What about the 80,000 employees at BP?
These are extreme examples, but I’d love to hear from you. What actions are speaking louder than words in organizations you know? What impact does that have?
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Spin is still in
Today’s article titled “Air Canada raises number of stock options for execs” raised my hackles. Not because of the specific case, but what this story really tells about the state of communications today. We talk in our bubble about transparency and authenticity, but almost daily reports tell another story.
In this case, the company’s shareholders decided to quadruple the shares available for stock option plans for senior executives. And, you can imagine that if the stock option plan at Air Canada had been wildly out of whack with the market there would certainly be a business case for doing this. You can imagine that getting and keeping good leadership in an industry as challenged as the airline industry isn’t easy. And you can even imagine that total potential compensation is the key attractor for senior executives.
And then, the CEO said: “There will be no change in compensation plans for senior executives.” What? If increasing the number of available stock options doesn’t change compensation plans then why are they doing it?
Now, I’m not naïve. The company has negotiated an agreement with their union that says there will be “no change in compensation plans of senior executives.” And, I understand that going back and renegotiating with them on this point might not be an option. But, falling back on a statement that is technically accurate without being true is just not right.
Every time any CEO does this they [and their leadership teams] lose credibility. Every employee and every person reading the article knows that the total potential compensation for senior executives has most certainly changed.
What do you think? Do you think spin is still in? And if so, where do you stand?
Do you see this kind of thing in your organization? If you’d been at the table when the decision to announce this change was made, what advice would you have given?
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Not all jobs are in cubicles
It’s easy to forget when you’re working in an office at HQ that not all jobs are in cubicles.
When I first began working at Alcan [now Rio Tinto Alcan] our then CEO, Jacques Bougie, insisted on beginning every talk with employees by talking about health and safety starting with the stats for the last quarter. As the newly appointed Director, Internal Communications, I thought this was simply a terrible way to begin every talk. I was wrong. He was right.
The recent explosion of the BP oil rig Deepwater Horizon and the deaths of 11 workers reminds us that every day men and women around the world go to work at dangerous jobs. Some very dangerous jobs.
The “Deaths on the Job Report” for 2010 reports that for the USA alone “In 2008, 5,214 workers were killed on the job—an average of 14 workers every day—and an estimated 50,000 died from occupational diseases. More than 4.6 million work-related injuries were reported, but this number understates the problem. The true toll of job injuries is two to three times greater—about 9 to 14 million job injuries each year.”
What role do you play in communicating health and safety information to your employees, your customers? Your shareholders? What role should you play?
The real work of your institution may be happening in places without cubicles, without internet access, maybe even without computers. By workers who farm, chop trees, provide patient care in hospitals, pack groceries, load container trucks, bottle beer, or teach in classrooms. Who may or may not be literate? And if they are may or may not be speaking French or English as their first language. Their cultures and their lives may be vastly different than yours.
How well do you and your executive understand their employees experience of their work and the organization they work for? What are the implications for how well they/you can do your job?
When was the last time you went and spent time with people on the front line? What was that experience like? If not, why not? If so, when will you do it again?
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Getting back to basics – Who? Why?
Last week there was news that four Rio Tinto executives had been convicted of taking bribes and stealing commercial secrets. They’d plead guilty to the bribery charges and denied the industrial espionage charges. They will serve from 7 to 14 years in a Chinese prison. All four have since been fired from the company.
Rio Tinto is by all accounts a good company. It has a Code of Conduct that is well communicated – direct, easy to understand, all employees must read it when they join the organization, and attend annual sessions to understand what it means for them in their jobs. It’s also publicly available on their website.
Rio Tinto is a company that benchmarks and follows best practice. The communication of the Code of Conduct certainly falls into that category. [Full disclosure in a past life I was an employee of Alcan now a division of Rio Tinto]
So what happened? Is this just a case of “bad apples”? Maybe. But for the purpose of discussion let’s explore what could happen if we wanted to communicate a Code of Conduct and followed bench marked best practice without asking ourselves two basic questions – Who are we communicating with? And why?
Let’s start with who? Answer: All employees.
Next question: Who are all employees? Answer: Well they are managers and miners. And, in a global company like this one they’re from cultures and/or working in industries where the Code of Conduct is nothing new and in cultures and/or working in industries where the Code of Conduct is asking for a radical change in behaviour.
Why are we communicating the Code of Conduct? Answer: Something like to ensure appropriate [according to the law, our values, etc.] and consistent behaviour of all our employees.
From a communications point of view now I think it gets really interesting. If you’re from and working in the West, the Code of Conduct is for the most part guidance and a reminder of behavioural norms that are well known and understand. So reading it when you start your job and meeting with your colleagues once a year to discuss for an hour or so would probably do the job.
But, if you’re from, and working in, Africa the code of Conduct may represent a radical change of behaviour that goes against cultural norms. And if you’re from the West working in Africa you may be comfortable with the behaviours described in the Code of Conduct but how do you get the job done without following cultural norms especially if you’re working in an industry where the competition is?
There’s not a one-size fits all solution to communicating even something as straight forward as a Code of Conduct. So what does this mean for Communications? How do we become more than message pushers?
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