VISION AS AN INSTRUMENT FOR BECOMING A SOCIALLY RESPONSIBLE ENTERPRISE (INCLUDING NATURE)

Transcription

1 VISION AS AN INSTRUMENT FOR BECOMING A SOCIALLY RESPONSIBLE ENTERPRISE (INCLUDING NATURE) Senior Lecturer M. Sc. Tjaša Štrukelj and Emeritus Professor DDr. Matjaž Mulej University of Maribor, Faculty of Economics and Business (EPF), Razlagova ul. 14, Maribor, Slovenia tjasa.strukelj@uni-mb.si; mulej@uni-mb.si Abstract Enterprise policy defines the basic, general and long-term organizational characteristics and presents an important management instrument on which development and operation of an enterprise (as institution of interest link-up people and property) depends. Enterprise policy results from vision starting point for start-up and developmental enterprise planning and also incorporates vision. In spite of the facts, that we are searching and forming and developing visions the covered period and wholeness of which are relative, in our discussion we will originate in different definitions of vision; we will try to develop planning methodology for vision, in order to direct vision towards social responsible enterprise behaviour, including the care for nature as humans crucial environment. Keywords: vision, enterprise policy, social responsibility; nature VIZIJA KOT INSTRUMENT ZA PRIBLIŽEVANJE DRUŽBENO ODGOVORNEMU PODJETJU (VKLJUČNO Z NARAVO) Povzetek Politika podjetja opredeljuje temeljne, splošne in dolgoročnejše značilnosti podjetja in je pomemben upravljalnovodstveni instrument, od katerega so odvisni razvoj, delovanje in obnašanje podjetja kot institucije interesno povezanih ljudi in premoženja. Politika podjetja izhaja iz vizije izhodišča za planiranje ustanovitve in razvoja podjetja in vizijo tudi vključuje. Kljub temu, da vizije iščemo, oblikujemo in razvijamo ter da sta časovnost in popolnost vizije relativni, bomo v našem prispevku izhajali iz različnih opredelitev vizije ter skušali razviti plansko metodologijo za njen zapis, da bi bila le-ta usmerjena tudi v družbeno odgovorno ravnanje podjetja, vključno s skrbjo za naravo kot okolje ljudi. Ključne besede: vizija, politika podjetja, družbena odgovornost The selected problem and viewpoint When one door is closed, another will open. But we so often, long and with so much regret gaze into the closed one that we can not see doors which are opening for us. Alexander Graham Bell An organization succeeds when its people, as individuals, are emotionally engaged in some way, when they believe in what their group and their organization are doing, and when the contribution they make to this organizational activity brings psychological satisfaction of some kind, something more than simple basic rewards (Stacey 2007, 63). Every organization defines its basis, general and long-term characteristics in its enterprise policy that presents important management instrument influencing development and operation of that enterprise (as institution of interest link-up people and property) (Belak 2003, 2003). Enterprise policy results from vision starting point for start-up and developmental enterprise planning and also incorporates vision. Thus this vision should include socially responsible components to motivate enterprise stakeholders toward a modern, requisitely holistic, ethics and behaviour, including the care for nature as humans environment. In spite of the facts that we are searching and forming and developing visions the period and wholeness of which are relative, in our discussion we will originate in different definitions of vision; we will link-up vision and social responsibility of an enterprise, and we will try to develop planning methodology for vision, in order to direct vision towards socially responsible enterprise behaviour. Vision The very essence of leadership is that you have vision.

2 You can t blow an uncertain trumpet. Theodore Hesburgh According to Zimmerer and Scarborough (2005, 71) the greatest political and business leaders have been visionaries. Empirically, Collins (2001) and Collins and Porras (1994) found the same. The purpose is the same: to focus everyone s attention to the same target and to inspire them to reach it as a long-term sense-making goal. The vision touches everyone associated with the company employees, investors, lenders, customers, and the community (respectively all enterprise stakeholders, N. B. authors). It is an expression of what the owner stands for and believes in. Highly successful entrepreneurs are able to communicate their vision and their enthusiasm about that vision to those around them. An organizational vision (Coulter 2005, 47) is a broad comprehensive picture of what a leader wants an organization to become. It s a statement of what the organization stands for, what it believes in, and why it exists. The vision provides a vibrant and compelling picture of the future. It presents a view beyond what the organization is to what the organization could be (Marino 1999, 20; Silvers, , in Coulter 2005, 47). Enterprises strive to achieve its (basic) vision in the long term. According to Wheelen and Hunger (2006, 13; see also 2009a and 2009b) a vision statement describes what the organization would like to become. They argue that a strategic vision (ibid, 49) is a description of what the company is able to become. According to Stacey (2007, 63) the word vision is usually taken to mean a picture of a future state for an organization, a mental image of a possible and desirable future that is realistic, credible and attractive. According to Hinterhuber (1992, 43 in Belak 2002, 74; see also Hinterhuber 2004) three factors of the vision are reality feeling, openness and spontaneity. According to Filion who distinguishes beginning, central and secondary visions (1993, 51 in Belak 2002, 73), central vision should express realistic, credible, and possible view on the product market position, desired by the entrepreneur, and on the type of an organization he/she has to develop to reach that position. A vision is a picture of the better world (Wickham 2004, 225) the entrepreneur wishes to create. The vision is the thing that draws the entrepreneur forward and gives him/her direction. The entrepreneur can, by sharing that vision, communicate the direction in which the organization must go. If the people who make up the organization see the vision and accept what it can offer, then the organization as a whole will gain a sense of direction. However, a vision only specifies an end, not a means. It indicates where the organization can go, not the path it must take. A vision leaves open the potential for a wide range of possibilities and course of action. Different courses must be judged in terms of how effective they will be in leading the organization towards the vision. Key ideas about vision summarised by Wickham (2004, 275) include: A vision is a picture of the new and better world that the entrepreneur wishes to create; Vision can be refined and articulated as a management tool; Vision can be used as the basis of a powerful leadership strategy; Visionary leadership demands communication of the vision in a way, which draws stakeholders towards the venture and motivates them to work for its success. Strategic vision (Huff et al. 2009, 7) provides a compelling image of what the company wants to become or do It sets direction, but does not give employees and others very detailed information about what should be done, by whom, how, when, with what cost and consequences, for whom, or why. Strategic vision of an altered future (ibid, 367) can be the glue that holds an organization together. The vision should describe what members of the organization are trying to do and provide an overview of how they are going about it. To the extent that employees share this vision, it provides a general framework that guides decision making. It also gives the organizations a yardstick against which they can measure their present performance. On the said empirical and theoretical basis we believe that efficiency, effectiveness and ethical behaviour (social responsibility, including care for nature) influence enterprise performance and long-term survival. The latter must be included into an enterprise vision. Vision and socially responsible enterprise It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin The concept of social responsibility (Wheelen, Hunger 2006, 56) proposes that a private corporation has responsibilities to society that extend beyond making its profit. Strategic decisions often affect more than just the

3 corporation. Managers (see ibid, 57) must be able to deal with many conflicting interests in an ethical manner to formulate a viable strategic plan (that originates in the enterprise vision, N. B. authors). Organizational vision provides an overall picture of where the organization would like to be in the future and also should reflect the organization s commitment to social responsibility and ethical decision making (Coulter 2005, 48). The lack of ethics seemed to be one of important (economic) factors that caused the (economic, social, environmental, financial) global crises And just now, if not earlier, the necessity of enterprise s social responsibility is hence more urgent and needed than otherwise. This need has to be included into the enterprise vision. It must include care for nature, of which humans are only an interdependent part. A number of highly visible global economic problems and environmental disasters (Coulter 2005, 49 1 ) have brought about a new awareness and spirit of environmentalism among strategic decision makers, who increasingly have begun to confront questions about the natural environment and its impact on organizations. This recognition of the close link between an organization s decisions and actions and its impact on the natural environment is referred to as the greening of management. As organizations become greener, we find more and more of them issuing detailed reports on their environmental performance. The Global Reporting Initiative(GRI) ( launched in 1997 as a joint initiative of the Coalition for Environmentally Responsible Economies (CERES) and the United Nations Environment Program, has the goal of enhancing the quality, rigor, and utility of sustainability reporting. To that end, GRI created its Sustainability Reporting Guidelines. Using the guidelines, hundreds of companies around the globe report their efforts in promoting environmental sustainability. Still, not all of them do it, which may mean that many do not really behave with social responsibility in their vision and practice. This may be a crucial cause of the crisis, including the dangerous data saying that now the world-wide humankind now emits in every hour four million tons of carbon dioxide in out atmosphere, cuts hectares of woods, and put 1.7 million tons of nitrites in our soil (see: Kajfež Bogataj, 2009). This is very a dangerous lack of requisite holism in practice. This is a very good reason for social responsibility to be included into an enterprise vision and we took this into the consideration in our first vision development planning methodology attempt. Our first vision development planning methodology attempt A corporate vision can focus, direct, motivate, unify, and even excite a business into superior performance. The job of a strategist is to identify and project a clear vision. John Keane Vision (David 2005, 55; see also 2008) is a possible and desirable future state of an organization that includes specific goals. Many organizations today (ibid, 9) develop a vision statement that answers the question, What do we want to become? Developing a vision statement is often considered the first step in strategic planning (development planning of an enterprise, N. B: authors). A clearly defined vision helps a company in three ways (Zimmerer, Scarborough 2005, 71): 1. Vision provides direction. Entrepreneurs who spell out the vision for their company focus everyone s attention on the future and determine the path the business will take to get there. 2. Vision determines decisions. The vision influences the decisions, no matter how big or how small, that owners, managers, and employees make every day in a business. This influence can be either positive or negative, depending on how well, i.e. requisitely holistically, defined is the vision. 3. Vision motivates people. A clear vision excites and ignites people to action. People want to work for a company that sets its sights high. Four components have been identified as important to organizational vision (Silvers in Coulter 2005, 47-48). 1. First (ibid, 47), the vision should be built on a foundation of the organization s core values and beliefs. These values and beliefs address what s fundamentally important to the organization, whether it s conducting business with requisite holism, i.e. ethically and responsibly, satisfying the customer, emphasizing quality and all aspects, or being a leader in technology. And, the vision should stress whatever those core values might be. 2. Second, the vision should elaborate a purpose for the organization. Every organization profit or not-forprofit, large or small, local or global has a purpose, and that purpose should be specified in organization s vision. In that way, all organizational stakeholders are explicitly aware of why this organization exists. 1 Global Reporting Initiative, February 25, 2004; and Kolk, A., Green reporting, Harvard Business Review, January-February 2000, pp

4 3. The third component of organizational vision is that it should include a brief summary of what the organization does. While the vision shouldn t provide explicit details of what the organization does, it should explain what it s doing to fulfil its purpose. 4. The last component of organizational vision (ibid, 48) is that it should specify broad goals. Goals provide a target that all organizational members work toward meeting. Goals also serve to unify organizational members toward a common end. An organization s vision can and should be a guiding force in every decision. Many vision statements are a single sentence. Even if the vision statement should not be short and simple, it should motivate all enterprise stakeholders. In our opinion an excellent vision statement should contain answers to the following questions we prepared and that are answering what do we want to become ask: Why this organization exists, what are the enterprise s major products or services (which needs do we satisfy with them; quality/price/newness/customer satisfaction potential); Which is our desired product market position (where on which markets does the enterprise compete; who are the enterprise customers); What are the basic/core values, beliefs and ethical (socially responsible) priorities of the enterprise; What type of the enterprise we have to develop to reach the defined attributes? All of these questions should be included; but in the vision they should not be recognised as a questionanswer path. Each and every one of them should also be realistic, possible, requisitely open, credible, attractive, and must include spontaneity. Suchlike is namely the vision that the enterprise is able to attain. Concrete picture of the future, near enough for involved persons to see its realisation and at the same time so much far away that it awakes enthusiasm for included novelties in the organization (Boston Consulting Group 1979). David (2005, 50) argues that as many managers as possible should have input into developing the vision statement. When employees and managers together shape or fashion the vision statement for an enterprise (ibid, 54), the resultant document can reflect the personal visions that managers and employees have in their hearts and minds about their own futures. Shared vision creates a commonality of interests that can lift workers out of the monotony of daily work and put them into a new world of opportunity and challenge. We agree, and believe, that this is possible only when owners /shareholders /stakeholders interests coincide with such a way and make a synergy of interest requisitely holistic and clear. Concluding remarks Where there is no vision, the people perish. Proverbs 29: 18 In spite of the facts that we are searching and forming and developing visions the period and wholeness of which are relative, in our discussion we originated in different definitions of vision. We tried to draft a planning methodology for vision, in order to direct vision towards socially responsible enterprise behaviour, including the care for nature as crucial humans environment. An organization that fails to develop a vision statement as well as a comprehensive and inspiring mission statement (David 2005, 57), loses the opportunity to present itself favourably to existing and potential stakeholders. All organizations need customers, employees, and managers, and most firms need creditors, suppliers, and distributors. The vision and mission statements are effective vehicles for communicating and reaching agreement with important internal and external stakeholders. If organizational leaders can articulate a distinct vision, organizational members may be more motivated to contribute increased levels of effort (Larwood et al. 1995; Oswald et al. 1994, in Coulter 2005, 47). Thus an enterprise vision must be transmitted throughout an enterprise. Vision is based on an entrepreneur s values (Zimmerer, Scarborough 2005, 71). They reflect in organizational culture, ethics, and norms (Potočan, Mulej, 2007). When they are oriented toward socially responsible enterprise, including the care for nature as humans environment, enterprises (and humans) have more possibilities for their long term survival. Vision, when properly used (Wickham 2004, ), is a powerful driving force for the entrepreneurial venture. However, there can only be one vision, which dominates within the venture. There is no room for an alternative. Two or more visions offering different directions within the same organization will inevitably come into conflict. An important, perhaps the most important, element in the power base of the entrepreneur is the ability to compose, articulate and control the elements of the vision that shapes and drives the venture as a whole. Wickham also argues (ibid, 556) that effective entrepreneur wants to lead the enterprise in a way that offers success to all its stakeholders and that, in the long run, the only way in which his power can be sustained. References

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