Professional Documents
Culture Documents
Responsibility
Managing for
Responsibility
A Sourcebook for
an Alternative Paradigm
Editors
Radha R. Sharma, Merrill Csuri, and
Kemi Ogunyemi
Managing for Responsibility: A Sourcebook for an Alternative Paradigm
10 9 8 7 6 5 4 3 2 1
Keywords
Context of Management Education, Corporate Governance, CSR,
CSR Tools for Financial Institutions/SMEs, Ethics for Sustainable
Organizations, Ethics in Business, Goal Setting and Decision making,
vi ABSTRACT
Index237
Preface
Managing for Responsibility: A Sourcebook for an Alternative P aradigm
was conceptualized by me in 20132014 during my tenure at HHL
Graduate School of Management, Germany. This was the result of my
for sharing their knowledge, research, and practice in the chapter contrib-
uted by them and sparing their time for enriching peer review. I thank my
coeditors, Ms. Merrill Csuri, former Manager, PRME Secretariat, New
York and Dr. Kemi Ogunyemi, Director, Christopher Kolade Centre for
Research in Leadership and Ethics, Lagos Business School, Nigeria, for
their support in this endeavor. I express sincere thanks to Oliver Laasch
for his continued support at critical stages of the book publication. I am
grateful to Charlene Kronstedt, Director, Production and Rob Zwettler,
Executive Acquisitions Editor, Business Expert Press, USA for pushing
the publication of this volume. Exeter team have done intense work and
Isincerely thank them.
I sincerely thank Professor Dr. Andreas Pinkwart, Dean and Rector;
Dr. Axel Baisch, Chancellor, and Mr. Frank Hoffmann, Director, Interna-
tional Relations, HHL Graduate School of Management, Germany, and
Management Development Institute (MDI), Gurgaon, India, its Board
of Governors, Acting Director, C.P. Shrimali for providing conducive
academic environment to work on this PRME project involving several
countries across continents. My family has been my pillar: Chandresh,
my husband and my children, Anu-Vishwa, Swati, and Abhinav; I cannot
thank them enough for their love, encouragement, and support enduring
my prolonged preoccupation with development of this research book.
Radha R. Sharma
January, 2017
Acknowledgments
Mr. Jonas Haertle, Head PRME Secretariat at UN Global Compact,
New York, USA
Prof. Dr. Andreas Pinkwart, HHL Graduate School of Management,
Germany
Prof. Mary Gentile, GVV, University of Virginia, USA
Prof. Agata Stachowicz-Stanusch, Silesian University of Technology,
Poland
Prof. June Qian, Tsinghua University, China
Dr. Michael Pirson, Fordham University, USA
Dr. Ben Teehankee, De Salles University, Philippines
Mr. P.S. Narayan, Head, Sustainability, Wipro Ltd., India
Prof. Wolfgang Amann, HEC Paris, Qatar
Prof. Raghu Ram Tata, XLRI Jamshedpur, India
Prof. Ranjini Swamy, Goa Institute of Management, India
Dr. Mitsuhiro Umezu, Keio University, Japan
Dr. Nirja Mattoo, SP Jain Institute of Management, India
Prof. Ernst von Kimakowitz, Humanistic Management Network,
Switzerland
Prof. Shailesh Gandhi, Indian Institute of Management, Ahmadabad,
India
Prof. Claus Dierksmeier, Global Ethic Institute, Germany
Prof. Subhashis Ray, XIM, Xavier University, India
Prof. Rakesh Chaudhary, IILM, New Delhi, India
Prof. Osmar E. Arandia Prez, Universidad Cristbal Coln, Mexico
Prof. Shiban Khan, EBS University of Business, Germany
Interview with Professor
R.Edward Freeman
It is a privilege seeing you receive another Lifetime Achievement Award
at Berlin since this honor was conferred upon you at Philadelphia a year
ago. I have a few questions which are pertinent in the present context of
management education:
Question: From your rich experience how you would like to define the
role of a manager in stakeholder assessment (stakeholder identification
and stakeholder prioritization)? How could management students be
prepared for this role?
Response: I dont divide up managing for stakeholders into these discrete roles.
I especially dislike separating prioritization out since it gives the impression
that there are trade-offs to be made among stakeholders. I continue to think
that the main insight of the stakeholder view is that stakeholder interests
are joint. And, that great companies are built when managers recognize the
jointness of stakeholder interests and stop making tradeoffs.
Response: I used to talk about balancing stakeholder interests but I prefer the
metaphor of harmonizing their interests. In music harmony refers to different
notes (stakeholder interests) that sound good when played together. Balance
again is more of a trade-off metaphor.
xiv Interview with Professor R.Edward Freeman
Response: I am skeptical of the rule, but maybe it will have some good effects.
I would encourage companies to figure out how they can be community
builders and put their efforts into that stakeholder.
Radha R. Sharma
guides the initiative has received further support from the Graduate Man-
agement Admission Council, the African Association of Business Schools
(AABS), the Latin American Business School Council (CLADEA), CEE-
MAN, representing management schools in transforming markets, and
the Association of Asia-Pacific Business Schools (AAPBS). As such, the
initiative represents a multilateral effort to embed social responsibility and
sustainability into management education institutions and core areas of
education, research, and organization or operations (www.unprme.org).
Similar to the UNGC, which expects signatory companies to com-
mit to 10 principles of responsible business, the PRME initiative offers
principles for business and management schools to follow, and provides
an environment for information sharing and learning. The initiative
stresses the importance of continuous improvement along six (plus one)
principles of transparency in the form of regular Sharing Information on
Progress (SIP) reports (www.unprme.org).
To embrace the increased demands of more sustainable future and
societal expectations of managers, the rst three principles focus on a shift
in business education:
Purpose: We will develop the capabilities of students to be future gen-
erators of sustainable value for business and society at large and to work
for an inclusive and sustainable global economy. (Principle 1)
Values: We will incorporate into our academic activities and curric-
ula the values of global social responsibility as portrayed in international
initiatives such as the United Nations Global Compact. (Principle 2)
Method: We will create educational frameworks, materials, processes,
and environments that enable effective learning experiences for responsi-
ble leadership. (Principle 3)
The fourth principle addresses the relationship of knowledge gen-
eration and the businesses role in and interaction with society and the
natural environment:
Research: We will engage in conceptual and empirical research that
advances our understanding about the role, dynamics, and impact of
corporations in the creation of sustainable social, environmental, and
economic value. (Principle 4)
With the mission of preparing responsible managers and enabling
them to deal with complex global problems, Partnership and Dialog were
4 MANAGING FOR RESPONSIBILITY
1
Sharma (2015) presented Competency Framework & Competency Modelling
for Principles of Responsible Management Education at the 6th PRME Asia
Forum on Towards Responsible Management Education in support of Sustain-
able Development Goals during November 2728, 2015.
At the 75th Academy of Management (AOM) Conference, Sharma
(2015) made a round table presentation on emotional and social intelligence
competencies during professional development workshop on Responsible
Knowledge about
PRME principles
Skills or behavior for
VISIBLE
promoting PRME principles
HIDDEN VALUES
MOTIVE
TRAITs
the individual (Figure 1.1) and influence his or her behavior. These are
described above.
Sustainable Development
Developing others
Conflict management
Transparency
Partnership and dialogue with stakeholders
References
Godemann, G., J. Haertle, C. Herzig, and J. Moon. 2013. United
Nations Supported Principles for Responsible Management Education:
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Godemann, J., J. Bebbington, C. Herzig, and J. Moon. 2014. Higher Education
and Sustainable Development. Accounting, Auditing & Accountability Journal
27, no. 2, pp. 21833.
McCabe, A.C., W.R. Ingram, and M.C. Dato-on. 2006. The Business of Ethics
and Gender. Journal of Business Ethics 64, no. 2, pp. 10116.
McClelland, D.C. 1973. Testing for Competence Rather Than for Intelligence.
American Psychologist 28, no. 1, pp. 114.
PRME (Principles for Responsible Management Education). 2015. www.
unprme.org/ (accessed September 2015).
Sen, A. 2001. Amartya Sen on Justice, How to Do It Better. www.economist.
com/node/14164449 (accessed September 10, 2015).
Sharma, R.R., and R.E. Boyatzis, eds. 2011. Special Issue on Managerial
Competencies. Vision-The Journal of Business Perspective 15, no. 2.
10 MANAGING FOR RESPONSIBILITY