Business Case Studies, Executive Interviews, Simon L Dolan on Building Ethical Organizations

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Interview with Simon L Dolan on Building Ethical Organizations
August 2009 - By Dr. Nagendra V Chowdary


Prof. Simon L Dolan
Professor of Human Resource Management and International Organizational Behaviour, Esade Business School.
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  • For the benefit of our readers and business ethics teachers across the globe, can you please share your delivery approach to business ethics / honesty and fairness in organizations course? Is there a bestway to sensitize and sterilize the managers and would-be managers on corrupt business ethics practices?
    in esade, we do not teach directly a class called ‘business ethics’. I do teach, however, values and culture reengineering classes. I have modules in all my classes, (i.e. managing people or managing human resources) on ‘managing by values’. And during these modules i am trying to let people identify their core values and see if these are alligned with the culture of their corporations. I am also convinced that teaching values while using entertaining yet precise tools, makes students (or managers) understand the concept better, empathize with it, and hopefully retain the message for a long time. So, i use games and simulations. I have developed over the years very interesting tools. In a typical setting i then ask my mba students (or executives when i teach the executive education seminars) to use the structured exercise and identify their core values (what is important to them) and that of the companies they work or have worked for. Then there is a very interesting dialogue and debate on what happens or can happen if your core values and your organization are incongruent; what can happen if the values will be shared and be congruent? I found out that when i draw a parallel between a larger organization and a tiny microscopic one that all students know (i.e. a family, and a couple), students’ eyes become wide open. They see for the first time that incongruences in values amongst an organization of two people (a couple) or a larger one produces the same negative results. For example, most students confirm that they will not stay and will not enjoy being in a relationship if the two do not share the same core values. I had developed a concept, a methodology and tools to assess the core values (see for example in: www.mbv suite.com) and now i do the same with a new tool which is less sophisticated but very enjoyable to use: it is a card game on values, that i labelled: the value of values card game. The results are excellent, and these generate a dialogue and also a plan for action. The consequences following the dialogue after identification of the value gap is amazing. Sometimes people realized that they need to leave the organization in order to be happier and more productive; in other cases they engage in a plan to reengineer the culture and reduce the gap. The methodology is well explained in our book (dolan et al: Managing by Values: Corporate Guide to Living, Being Alive and Making a Living in the 21st Century, palgrave macmillan, 2006)

  • Recently, Jon M Huntsman wrote an interesting book, Winners Never Cheat: Everyday Values We Learned as Children (But May Have Forgotten), wherein he chronicles the story of Huntsman Corp’s extraordinary perseverance in doing the business the ethical way. Why don’t we see more of such companies and what, according to you should be done to see more of such companies?
    I can assure you that we will see many more cases like this in the future. There is only one problem: some companies that do not cheat and reallymanage by values, see their culture as giving them a competitive advantage and they do not always wish to get the media attention. I had helped dozens of companies across the globe change their culture and develop their management by values of philosophy; many of them ask me not to reveal their experience or identity. They see it as a competitive advantage. I can divulge the information in my classes, but not in the media. This is a pity. However, once we get into a critical mass where many companies will follow this route, we will hear more and more about the positive experiences. What does it mean? When you open any gossip magazine in any country, you will notice many more negative stories, about divorce, scandals, deaths, tax evasion, etc. Very rarely you will find articles about a football or movie star that lives happily and is not involved in scandals. I hope that you can see the analogy. In addition, the scientific community is also beginning to pay attention to the positive impact of values and value congruency. In the last issue of the journal of applied psychology, there is a fantastic paper on the value of value congruence (edwards and cable, 2009: 94(3): 657-677). This is an excellent breakthrough in the right direction.

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