Week 1
Old world management
Unprofessional practices that do not live up to the management’s potential to serve and
better the world.
Unprofessional management practice: managerial practice not conducted in the service of
society and the planet or without professional conduct.
Links managerial practices and problems:
- Practices of continuous company growth -> produce more than the earth can
support.
- Consumerist marketing overconsuming.
- Low-cost production exploitive abuse labour.
- Take-make-waste waste.
- Quarterly reporting short-term.
- Exploiting resources collapsing ecosystems.
- Shareholder-value based management other stakeholders of lower importance.
- High-level pay economic inequality.
- Paying women less than man gender inequality.
- Strategic human resources management poverty and unemployment.
- Globalized supply chain management collapse local industries and climate change.
- Financial costs and value ignorant social and environmental cost/value.
Transition world management
Subversive management that eliminates inadequate management theories and practices
and promotes new theories and practices aligned with the needs of the troubled world we
live in.
Transitions revolutionary systematic changes emerging from the co-evolution of economic,
technological, social, cultural and ecological changes.
New world management
Management profession in service of the world. Done by actively identifying old-world
management practices and introducing the respective new-world alternatives.
Drivers of professional management
1. Main stakeholders are increasingly expecting managers to contribute to society and
the world through their companies.
2. Governments are increasing legislative pressure.
3. Civil society demands a change in management practices to address the world’s
pressing issues.
, 4. There are many business opportunities in professional management: popular,
cost-saving and reduces risk.
5. Because of the internet and social media, it is almost impossible to hide
unprofessional management.
6. Professional management practices in service of society and planet are increasingly
institutionalized.
Barriers, inhibitors and criticisms
- Friedman argument: the only managerial responsibility is to make profit.
- Question the motivation of managers.
- Tensions and paradoxes between old-world and new-world management.
- Greenwashing: creating a misleading impression of social, environmental, and ethical
performance.
Recommendations for a new-world management:
1. Work serves higher purpose, management must orient itself in theory and in practice
to achieve noble, socially significant goals.
2. Embed the ideas of community and citizenship, there is a need for processes and
practices that reflect the interdependence of all stakeholders.
3. Reconstruct philosophical foundations. To build organizations that are more than
merely efficient, we will need to draw lessons from such fields as biology, political
science and theology.
Dimensions of Professionalism
- Ethics: refers to moral dilemmas in determining right and wrong in corporate
governance scenarios. right decision in moral dilemma, conduct embraces ethical
behaviour and moral excellence.
- Responsibility: maintenance of relationships with stakeholders, conduct fulfills
stakeholder responsibilities and serves stakeholder value optimization.
- Sustainability: also known as triple bottom line, refers to the social, environmental,
and economic issues that affect future generations.
,SDGs
SDG1: No Poverty
SDG2: Zero Hunger
SDG3: Good Health and Well-Being
SDG4: Quality Education
SDG5: Gender Equality
SDG6: Clean Water and Sanitation
SDG7: Affordable and Clean Energy
SDG8: Decent Work and Economic Growth
SDG9: Industry, Innovation and Infrastructure
SDG10: Reduced Inequalities
SDG11: Sustainable Cities and Communities
SDG12: Responsible Consumption and Production
SDG13: Climate Action
SDG14: Life Below Water
SDG15: Life On Land
SDG16: Peace Justice and Strong Institutions
SDG17: Partnership For The Goals
Manager’s transitional role
Three broad change mechanisms:
- managers have the power to change the organization in their respective spheres of
influence
- if the business is successful in transforming to more professional ways, other
businesses are likely to follow
- overall economic system of industries and single companies impacts society
, Institutional work work realized to either maintain the ‘old normal’, to change it, or to create
an entirely ‘new normal’.
Professional management conduct
- asks whether management is carried out ethically, responsibly and sustainably
- centred on whether and how management practices serves society and the Earth
Responsible Business Management
Planning, organizing, leading and controlling are the four main management processes, and
the idea of responsible management is to make this process sustainable, responsible and
ethical.
- Sustainability management is the managing of the triple bottom line, thus, by
optimizing economic, social and environmental factors
- Responsibility management is about stakeholder value optimization
- Ethics management is concerned with moral excellence
Old world management
Unprofessional practices that do not live up to the management’s potential to serve and
better the world.
Unprofessional management practice: managerial practice not conducted in the service of
society and the planet or without professional conduct.
Links managerial practices and problems:
- Practices of continuous company growth -> produce more than the earth can
support.
- Consumerist marketing overconsuming.
- Low-cost production exploitive abuse labour.
- Take-make-waste waste.
- Quarterly reporting short-term.
- Exploiting resources collapsing ecosystems.
- Shareholder-value based management other stakeholders of lower importance.
- High-level pay economic inequality.
- Paying women less than man gender inequality.
- Strategic human resources management poverty and unemployment.
- Globalized supply chain management collapse local industries and climate change.
- Financial costs and value ignorant social and environmental cost/value.
Transition world management
Subversive management that eliminates inadequate management theories and practices
and promotes new theories and practices aligned with the needs of the troubled world we
live in.
Transitions revolutionary systematic changes emerging from the co-evolution of economic,
technological, social, cultural and ecological changes.
New world management
Management profession in service of the world. Done by actively identifying old-world
management practices and introducing the respective new-world alternatives.
Drivers of professional management
1. Main stakeholders are increasingly expecting managers to contribute to society and
the world through their companies.
2. Governments are increasing legislative pressure.
3. Civil society demands a change in management practices to address the world’s
pressing issues.
, 4. There are many business opportunities in professional management: popular,
cost-saving and reduces risk.
5. Because of the internet and social media, it is almost impossible to hide
unprofessional management.
6. Professional management practices in service of society and planet are increasingly
institutionalized.
Barriers, inhibitors and criticisms
- Friedman argument: the only managerial responsibility is to make profit.
- Question the motivation of managers.
- Tensions and paradoxes between old-world and new-world management.
- Greenwashing: creating a misleading impression of social, environmental, and ethical
performance.
Recommendations for a new-world management:
1. Work serves higher purpose, management must orient itself in theory and in practice
to achieve noble, socially significant goals.
2. Embed the ideas of community and citizenship, there is a need for processes and
practices that reflect the interdependence of all stakeholders.
3. Reconstruct philosophical foundations. To build organizations that are more than
merely efficient, we will need to draw lessons from such fields as biology, political
science and theology.
Dimensions of Professionalism
- Ethics: refers to moral dilemmas in determining right and wrong in corporate
governance scenarios. right decision in moral dilemma, conduct embraces ethical
behaviour and moral excellence.
- Responsibility: maintenance of relationships with stakeholders, conduct fulfills
stakeholder responsibilities and serves stakeholder value optimization.
- Sustainability: also known as triple bottom line, refers to the social, environmental,
and economic issues that affect future generations.
,SDGs
SDG1: No Poverty
SDG2: Zero Hunger
SDG3: Good Health and Well-Being
SDG4: Quality Education
SDG5: Gender Equality
SDG6: Clean Water and Sanitation
SDG7: Affordable and Clean Energy
SDG8: Decent Work and Economic Growth
SDG9: Industry, Innovation and Infrastructure
SDG10: Reduced Inequalities
SDG11: Sustainable Cities and Communities
SDG12: Responsible Consumption and Production
SDG13: Climate Action
SDG14: Life Below Water
SDG15: Life On Land
SDG16: Peace Justice and Strong Institutions
SDG17: Partnership For The Goals
Manager’s transitional role
Three broad change mechanisms:
- managers have the power to change the organization in their respective spheres of
influence
- if the business is successful in transforming to more professional ways, other
businesses are likely to follow
- overall economic system of industries and single companies impacts society
, Institutional work work realized to either maintain the ‘old normal’, to change it, or to create
an entirely ‘new normal’.
Professional management conduct
- asks whether management is carried out ethically, responsibly and sustainably
- centred on whether and how management practices serves society and the Earth
Responsible Business Management
Planning, organizing, leading and controlling are the four main management processes, and
the idea of responsible management is to make this process sustainable, responsible and
ethical.
- Sustainability management is the managing of the triple bottom line, thus, by
optimizing economic, social and environmental factors
- Responsibility management is about stakeholder value optimization
- Ethics management is concerned with moral excellence
