What does globally responsible leadership mean to me

By Luis Ruiz Saldarriaga Student of MBA Program at Centrum Catlica Business School, Per

Abstract Corporate Social Responsibility is not a recent issue, even not this century matter. In the 70s decade of the past century, Milton Friedman gave us all an approach of what CSR could be. His article appeared in New York Times on September 13, 1970 was the beginning of the nowadays most controversial vision of what enterprise behavior should be. But what Milton Friedman tried to explain in his article, was written in a very different economic context. Todays economic life is totally different, because of the globally way that companies doing business. This special context adds a great complexity to CSR issue, because now is not a single nation problem but an international problem too. Different laws, local stakeholders behavior and habits, local government regulations and relationships turn the initial problem into another one with multiple inputs. In this essay I am trying to resume what CSR is, my personal understanding of that, and what should be the behavior of companies in a global economic context.

What is your personal understanding of global responsible leadership? Global responsible leadership is an initiative for changing the current enterprise behavior, making it sustainable thru the time and socially legitimized. It bases its proposal by the development of future generations of leaders both social and global responsible that lead the world gradually to a new welfare state. This initiative is a response for the current economic model which has increased the economic inequality in the world. But, how can it be possible? First of all, a change of mind and behavior is required for society in general and corporate culture in order to find the social common good. Three special areas have to be revised and redefined in the current model A revision of the final objective of the firm is a first step for this initiative. Traditionally, we have thought that the first goal of the firm is the economic and financial performance. That is as very short-term vision and cannot be taken as the final objective, but as a transition to a bigger objective instead that should be the common good and society improve not only in the economic activity but in other domains of the human activities too. In that sense, the

objectives of the firm have to be put in concordance and aligned with the objectives of the related society. Another important issue to be taken into account is how this new style of leadership social responsible can incorporate ethic into the organization as guidance of the behavior and decision making of the firm. Ethics should lead firm decisions in order to legitimize them and foster social improvement. Finally, new social responsible leaders have to foster new relationships between the firm and the social stakeholders, such as government, religious entities, educational entities, etc. It is important to open new communications channels between the firm and the related community in order to improve those relationships and having a feedback from those stakeholders of the firm behavior. By the points of view explained above, my conclusion is that global responsible leadership is an initiative which objective is a change of mind of society in general not only for the firm and its directors but for the rest of the stakeholders that are part of the society too. And this can be possible by giving shape to a new leadership style, social responsible and social legitimized.

Please describe the meaning of integrity for an organization doing international business. The original concepts of CSR have been evolving constantly. A few years ago, before the globalization phenomenon, most specialists had the position that a social responsible company must simply follow local rules and laws established by government in which the company was operating. However, globalization have given us new perspectives of how business have done now and we have to recognize that in several cases transnational companies undermining the ability of some local governments to implement laws related with labor practices, environment protection or even taxation policies. In that sense, the globalization process has allowed the development of new roles inside the society as a response for some bad practices of large transnational companies. One of those roles for example, is the civil society taking various forms, such as NGOs, national civil associations, etc. working as balance entities when the lack of influence of national governments over transnational companies appeared. This social function has allowed that large companies start to intensify their CSR commitment to the point that their initiatives can interfere with local entities functions. In conclusion, the concept of integrity for companies doing international business has to be understood inside the context of CSR initiative and is not sufficient for transnational companies respecting local government laws and policies. Fortunately, we are witness of a growing commitment of the large companies and transnational organizations with CSR

initiative. Integrity in my concept should have four aspects to be considered, based on the stakeholders theory. The first aspect to have in account is the responsibility of the firm with their shareholders mainly considered as the basic goal of the firm. The second aspect is related with responsibility of the firm with stakeholders such as providers, government and even the competitors, including some institutions of the civil society such as universities, NGOs, civil associations, etc. The third aspect is the responsibility of the firm with the environment. Finally, the fourth aspect is the responsibility of the firm with the related community, understood as the relationship between the firm and the community in which is present. The two last aspects (environment and related community) are the most important nowadays and they are what give sustainability and social legitimacy.

What do you expect of this event and what can you contribute out of your personal experience? First of all, I strongly believe that this would be a great opportunity to know the personal position about the CSR issue and responsible leadership meaning of other business school students from other countries. For example, would be interesting knowing the point of view of a student from a developed country that certainly should be different with my personal position in order to make a comparison in my position of a student from an emergent economy. Unequivocally should have differences not only for the different economic realities but for cultural reasons and ways of thinking too. Another reason is that Daimler as a member of Globally Responsible Leadership Initiative (GRLI) has certainly the authority about what should be the right way for global organizations in order to become into a social responsible corporation. Its advances in that way are no doubt about enriching experiences to share, especially for the audience that will be present, social responsible leaders in formation. Finally I have to say that in my position of an executive of a transnational company belonging to the retail industry, with over 18 years of professional experience, my contribution for this initiative will be focused on give a point of view of the retail business practices and how all experiences in CSR could be applied inside the company I work for. Furthermore, as a social responsible leader in formation all the experiences collected in the event will contribute for my personal CSR initiative commitment.

REFERENCES Scherer, A. G., (2007) and Palazzo, G. Globalization and corporate social responsibility. Zurich: Oxford University Press. Williams, C. (2001). Corporate Social Responsibility in an Era of Economic Globalization. California: UC Davis. Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. New York: The New York Times Magazine. Taylor, B. (2006). Learning for tomorrow: Whole Person Learning. London: Oasis Press. De Woot, P. (2005). Should Prometheus be bound? Basingstoke: Palgrave Macmillan. Globally Responsible Leadership Initiative.(2005). A call for engagement. European Foundation for Management Development.