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Tuesday, February 23, 2010

Reassurance, Responsibility and the Toyota Impact

Good CSR insight - and life-saving tips! - on how to mitigate a Toyota-style disaster by my esteemed associate, Tom Peyton, Managing Director of CSR specialist firm, Enact Consulting.

We seem actively to promote fear in today's society; everybody is at it and there are few sources of advice or reassurance as to what to do when that emergency strikes. I remember being told by a US Ambassador, in one of those places where bombs used to go off occasionally, not to wash the car because it was then obvious if someone had tampered with it. It was a simple assurance that some of the risks were actually within my control. You may well ask what all this has to do with Toyota, but bear with me.....

I was, until last month, the very contented owner of  Toyota Avensis. Fortunately, it's too old to be suspected of having an accelerator fault but, nevertheless, it makes you think! Toyota has built a fantastic reputation for reliability over the years and it is well deserved. But now it's in tatters; was there anything they might have done to prevent this, once the fault had become apparent? If we consider this from a Corporate Responsibility angle, what is the most important thing to do?

Respond appropriately and reassure your customers. The recall is appropriate, but the reassurance is missing. The recall is expensive, while the reassurance is actually the cheap and easy piece. Did Toyota owners need to flood garages with enquiries, lawyers commence class actions and the press go stratospheric? Or are we just being scared irrationally once more? No, they did not and yes, we are - because the actions are quite simple.

With all the recalls, you won't get your car fixed for a while. So: do you stop driving? It might help climate change, but it won't solve your transport problem. Would you like some advice, just in case that unlikely occurrence happened to you? I think you might, because it gives you some measure of control over the situation. Clearly you will still need to get the car checked, but life doesn't have to come to a grinding halt in the meantime.

Having read more of the press coverage than is good for me, I have yet to find any advice as to what to do in an emergency. Neither the press, our over-indulgent nanny state nor our esteemed motoring organisations have announced any guidelines on what to do if it happens to you. Why not? Are they scared to advise in case they get it wrong and then find themselves to blame? Is this being responsible?

Actually, after some searching, I found that Toyota provide the answer as FAQ19 on their website. Perhaps a little more prominence might help. Like headline stuff! It would have saved them money, (not the key consideration, I agree), and helped defuse what became a crisis. Most importantly, it would have immediately addressed their customers concerns; your concerns. This is the CR aspect and it's really very simple. It's also just plain good business.

Because it really is very simple:
  • Check your mirror
  • Put your emergency brake lights on
  • Put car in neutral (expect a horrid noise)
  • Switch off
  • Move to the side of the road - and coast to a halt!
It worked for me 25 years ago when my accelerator cable jammed on the M6. It was a Chrysler!

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Wednesday, October 7, 2009

Saving the Soul of Private Enterprise: A Fit Place for Religion?

This week I went to the Hexagon Theatre in Reading to hear The Soweto Gospel Choir. The music was powerful, authentic - and spiritually moving. Now, I recognize that I risk contention by bringing religion into my blog. I'm not sure it's appropriate. Should I even tackle it in a business context? As the evening progressed, my twin-tracking mind convinced me I must. For it was in that cocoon of kinship and celebration where I realized there is room - and necessity - for spirituality at work.

The irony of me initiating an evening to hear South African churchfolk sing divine praise was not lost on my oldest friend whom I had invited. For over 20 years she and I have sparred over our beliefs: she, a staunch Christian and avid defender of the faith, me rather on the agnostic side, finding my inspiration less in a single omnipotent entity but more in the wonder of nature that surrounds us (cif: William Wordsworth, Tintern Abbey)

I am also a Myers Briggs ENTJ type. I tend to rely on tangible evidence and facts to reach conviction and judgement and this rather disposes me towards Darwinian Theory versus monotheism.

Faith, in whichever form it takes, presents a further conundrum alongside corporate practice. Many would argue (not least in the current economic climate) that the demon of wealth acquisition cannot be reconciled easily with the virtues of religion and spirituality; that the fervour with which enterprise leaders have worshipped at the altar of personal profit has irreversibly corrupted the heart and reputation of private enterprise at the expense of its people. Examples are too numerous to include here. Think Robert Maxwell, the Guinness four, fraud scandals at Enron and Parmalat, Robert Madoff. Some might argue the entire global banking hierarchy.

According to the 2009 Edelman Trust Barometer which surveyed 4,500 upper income, highly educated people across 20 countries, nearly two thirds (62%) said they trust corporations less than they did a year ago.

Yet the soul of corporate enterprise is redeemed by shining examples of other business leaders whose religious grounding has moulded the spirit and direction of their companies, the successful stewardship of their people and of the communities in which they operate. Here I am not referring to Corporate Social Responsibility (CSR) which is, in any case, a reporting requirement. No. This is about the intimate religious conviction of business leaders whose core values and behaviours present no moral compatibility issue with wealth generation.

For instance Gary Grant, owner of The Entertainer - Britain's largest independent chain of toy stores - became a Christian in 1991. He refuses to open his 48 stores on Sundays recognizing it as a sacred day. Yet, whilst banning "occultist" Harry Potter and Halloween products from shelf probably contributed to the collapse of pre-tax profits last year, sales in the first half of this year have rocketed to 33% with record annual profits anticipated.

World-leading food giants Kelloggs and £10bn UK confectioner Cadburys (a recent take-over target of Kraft Foods) each trace their present day success to their strong Quaker origins. While Reverend Graham Cracker, wishing to supplant sexual appetite with the creation of a bland food diet back in 1829, invented the namesake cracker which remains a staple food today - mercifully with little known side-effect!

Whilst heading EMEA communications at imaging monolith, Kodak, I had the privilege to be mentored by a  Board member. He was a very spiritual person, a man with massive empathy but no less efficient at work; a supreme facilitator and arbiter always keen to share knowledge and nurture others' growth. He exuded calm and serenity and regularly took time out in monastic retreats. Likewise, I have witnessed the galvanising charm of a Fortune 500 leader of a profitable, multi-billion dollar business division lead change and motivate people to follow. He was also a lay preacher.

The skill leaders need to inspire people to embrace change and perform against all odds appears to be the fine business art of persuasion. Aristotle attributed this to the three key elements of Ethos (credibility, trust), Pathos (empathy) and Logos (logic/words) [1].  Yet beyond words, how can empathy be achieved - and therefore trust - without a fundamental understanding of the human condition? How can business leaders understand the motivational needs of employees facing workplace uncertainty unless they first reconnect with themselves as a fellow human creation?

Sometimes, to get to that place, we must make room for silent contemplation; to gain perspective on the personal and professional constraints, pressures and acquired (mal)practices that skew our everyday judgement and pollute our social interactions.

With that in mind, I asked a community of Linked In professionals from hedge fund management, commodity and currency markets, right through to organisational change and development, how they sought spiritual balance in the workplace. The response I got from 40 separate individuals was revealing. Whilst there was plenty of lively commentary around the carnal delights of chocolate, the spiritual importance of family and friends, the need for hobbies and exercise and the satisfaction of voluntary work, over 50% of respondents directly referenced their reliance on prayer, religious faith and meditation. Indeed I was moved to receive many personal prayers.

And whilst some pioneering companies like Google, Vodafone and Virgin Atlantic are offering employees the chance for "sleep pod" or prayer room meditation in the workplace, they remain a minority. Beyond simple work:life policy measures, perhaps organisations should be more creative to integrate the spiritual and faith needs of employees within the actual workplace; to unlock the innate potential and wellbeing of many people who, it seems, find additional motivation beyond the simple lure of material reward.

In the event it seems religion and the workplace may, after all, be an ideal union.

[1] James Borg, Persuasion: The art of influencing people, 2nd edition 
Image: 'Like Drifting Spirits', Getty Images (photographer: Paul Grand, www.flickr.com/photos/paulgrand/)

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