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Dynamics of Trust Study Guide Towards a Culture of Ethical Leadership

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Dynamics of Trust Study Guide Towards a Culture of Ethical Leadership TRUST AND INTEGRITY IN THE GLOBAL ECONOMY DYNAMICS OF TRUST STUDY GUIDE TOWARDS A CULTURE OF ETHICAL LEADERSHIP Developed by Initiatives of Change DYNAMICS OF TRUST STUDY GUIDE The Global Economy Context - p3 Module 4: Eight Cs of Trust - p25 Introduction: Towards Peak Performance - p4 Module 5: Inner Reflection for Inspired Leadership - p29 Module 1: Core Principles and Values of Trust - p6 Module 6: Questions for Reflection - p31 Module 2: The Dynamics of Trust Framework - p7 About Initiatives of Change - p32 Module 3: Five Business Principles of Trust - p10 Further Resources - p33 Appendix - p38 2 THE GLOBAL ECONOMY CONTEXT The global economy is all pervasive, fuels the appalling gap between the world’s where we thought we were in charge (of affecting the daily lives of everyone on the rich and poor, including the extremism of a people and of nature, for instance), is being planet in one way or another. It provides all handful of the world’s richest people who replaced by something new. ‘The “new” is the goods and services for our daily lives. It have the same wealth as the poorest half of borderless, global, digital… interconnected includes our jobs, incomes, education, skills, the global population—3.5 billion people— in a completely new, radical complexity.’ housing, health care, economic wellbeing and the top one per cent of the world’s (Swedish businessman Göran Carstedt, and a degree of human and social security wealthiest people owning more than the quoted in Great Company, 2015.) for the billions of people around the world. rest of the 99 per cent of the world’s The business community, including big It includes the purchasing choices we population. The global economy has lifted corporations, social and ethical enterprises, make about our food and clothing and millions out of poverty. Yet its injustices too employee owned companies, and other their origins; the road, rail and air transport easily fuel the humiliations and anger that alternative economic models, from Benefit we use; our carbon footprint and our lead to violence and extremism. Corporations to Community Interest energy use affecting climate change. The Companies, and banks all play a crucial global economy affects the quality of the We need a global economy of human role in addressing global challenges and air we breathe, the water we drink—and wellbeing and the common good. disparities and meeting human need. the plastic we throw away. It includes the These challenges require a new type of information technology and social media In addition to the fundamental challenges inner leadership from every individual, we use, provided by some of the world’s towards building social stability and an to deal with the changes the world faces. largest corporations. It includes the taxes equitable society, the world also faces As is shown in the real life stories in this we pay—or fail to pay due to tax evasion increases in complexity and speed of document, the decisions made by one and offshore tax havens. the required changes. This is manifest, individual can have a positive ripple effect It includes unjust gender discrimination for instance, in developments ranging on society as a whole. The ethical values and the excessive wealth gap between from mapping the human genome to the and decision-making that underpin our boardroom pay and average pay inside large impact of Artificial Intelligence, driverless organizations can generate the basis of organizations—prompting a backlash from vehicles and carbon-free energy sources. trust needed for them to meet their full institutional investors. The global economy The ‘old’ industrial, mechanical worldview, obligation and contribution to the world. 3 INTRODUCTION: TOWARDS PEAK PERFORMANCE This Study Guide is based on the reflection and putting these values into • make ethical decisions, including action values expressed at the annual summer practice. TIGE encourages the motivations points. conferences on Trust and Integrity in of care and moral commitment in business It can thus help in managing reputational the Global Economy (TIGE), held in the and economic life, in order to address risk, smooth supply chains, satisfy all Swiss Alpine village of Caux for over a economic and environmental imbalances stakeholders and allow organizations, and decade, and in the national programmes and tackle the root causes of poverty and the people in them, to operate at their peak of TIGE. It also draws on the track record inequality. performance. of Asian business values conferences This Study Guide aims to help you held at the Initiatives of Change centre and your organization to operate at peak in Panchgani, India, organized by Caux performance, thanks to the relationships Initiatives for Business (CIB). Ethical of trust that are built in the workplace and leadership training, under the title Heart between all stakeholders. It is designed of Effective Leadership, has been held in to help companies and organizations to Panchgani over many years. This training has be resilient and regenerative by assessing successfully supported some of the biggest their commitment to trust and integrity global companies in overcoming corrupt in policies and processes outlined in the practices. Years of experience in facilitating various modules. It helps to prepare their training courses have led individuals from future fitness for business. the business community and all economic players to explore a journey of personal The Study Guide helps you to: transformation, leading to organizational • stimulate discussion on human and global change. relationships of trust in the workplace and TIGE, as a global community, aims to between all stakeholders practise trust and integrity in public and • identify where there may be gaps private life. Its methodology is through • improve a commitment to the values of shared experience, story-telling, personal integrity which build trust 4 HOW TO USE THIS STUDY GUIDE The Study Guide is in six modules: positive change for themselves. 1. Core Principles and Values The Study Guide includes a number of 2. Framework: The Dynamics of Trust references to, and case studies of, trust and 3. Five Pillars of Trust: Integrity; integrity applied in practice. Most of these Sustainability; Cooperation; Purpose; are told in the book Great Company: trust, Stewardship integrity and leadership in the global economy 4. Eight Cs of Trust: Contracts; Covenant; by Michael Smith, published by Initiatives of Competence; Character; Conscience; Change, 2015 (ISBN 978-1-85239-047-1). Calling; Courage; Change. The book also acts as a resource and 5. Taking time for self-reflection: the the page references for each case study source of inspired leadership are given in this text, indicated in bracket: 6. Questions for reflection and discussion. (GC). The case studies are also included in the Appendix of the download version of After each module you will find questions this Study Guide found on the IofC website: to reflect upon for your situation in your www.uk.iofc.org/tige current context. At the end in Modules 5 We recommend that, for maximum and 6 you will find questions related to your benefit, all the modules in the kit are used overall experience. in sequence. The Study Guide is designed to prompt group discussions and inner reflection, in a workshop/training context. The Study Guide may also be used by individuals to reflect on their experience of trust and integrity in their personal and work environment and how they can make a 5 MODULE 1: CORE PRINCIPLES AND VALUES OF TRUST Below are the Core Principles and Values our consciousness and awareness, our live by moral and ethical standards. Inner that have been the guideline for many years contribution to society and the true governance is informed by the values of of trust and integrity trainings. purpose of our organizations. honesty and integrity, including the stance Techniques for inner reflection are against corruption; purity of motive in Core Principles and Values introduced in Module 5. defining true purpose for ourselves and • Change in the world starts with change our organizations, beyond just the profit in individuals’ motivations and behaviours: Story telling has proved to be a great lever motive and towards contribution to society; to encourage not just Corporate Social in personal transformation. Research has equity and mutual interest across all Responsibility but also Personal Social shown that story telling supports the brain stakeholders—a sense of stewardship and Responsibility (PSR). in absorbing and maintaining information service; and love for people, planet, peace, • The aim is to practise trust and integrity more easily. Over the last decades the prosperity and future generations. Using in public, organizational and private life. The stories of positive changes in the global these values one can identify current gaps methodology is through shared experience, economy, presented in this Study Guide, in one’s living, explore the questions of life story-telling, personal reflection and putting have been drawn from around the world. purpose; and how to use one’s personal values into practice. They show how individuals have initiated gifts to serve people and the world. • The way we do things is as important as change based on their desire to make a The stories also show how a change in what we do. difference. individual behaviour based on inner wisdom • The journey begins with encouragement These stories are inspiring examples has a positive, lasting impact on society
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