Ireneusz Bielski Grzegorz Hoppe Marek Sikora The value system as a starting point of creating a modern company Shaping Ethics in Academia and Society: Practices in the Baltic Sea Region
Introduction Lame walking path overtake healthy that it descends. [Francis Bacon] The scientific and technical progress in Poland and other Baltic Sea countries is unsatisfactory. Apart from objective conditions, there are also psychological obstacles for changing and accepting new facts, as this often threatens to undermine the established system of values (as a remnant of the previous political system). At the same time, in some countries of the Baltic region, after the geopolitical changes, could be seen fascination with the Western culture and an unreflective acceptance of the analytical patterns that existed in Western Europe.
Stereotypes in thinking This creates a climate that facilitates keeping of stereotypes in thinking and can be a hindrance to any innovative activity. The ease of building such obstacles is a result of a general lack of innovative climate, a low media activity in shaping such a climate, and lack of an educational system.
Considering a growing number of positions where creativity is needed, "... the obvious task is the educational system - the task of equipping children before they work for themselves, in original, creative minds, in addition to the high level of knowledge that will also be necessary" [Jay 1996]. Educational system The basis of achieving success of any venture is qualification, a thorough knowledge of the subject, a continuous improvement in various forms and the internal state of the creators, largely determined by environmental conditions. In this field, the Polish educational system fails in a very visible way. Schools and colleges do not teach knowledge structures and independent thinking but pass on the knowledge the students need to remember for the next exam. They are taught how to answer questions, but they do not learn the "art of asking questions", which is the basis of progress.
Innovation in the education system In the near future, knowledge will become the only resource, while all others will be degraded to the role of complementary factors [Drucker 1994]. Preparing societies for acceptance of the inevitability of change and the need for permanent implementation of innovation also requires innovation in the education system.
Innovation in the education system This system should meet two basic objectives: to prepare staff, especially in technical and economic sciences, for innovation and processing, not reproducing the surrounding reality, to raise the awareness of innovation of the whole society, which over time should lead to the elimination of the barriers of creativity of individual innovators. However, after nearly 1700 years, university graduates entering business practice still have to act according to Aristotle's description: "What we should do, having learnt, we learn just while doing it."
There is nothing more difficult to carry out nor more doubtful of success nor more dangerous to handle than to initiate a new order of things. [Machiavelli]. Model of Business Maturity Growth Internalization I 3 Absorption I 2 I 1 A 3 A 1 0 A 2 U 1 U 2 Usage U 3 D 3 D 1 D 2 C 1 C 2 Degree of Maturity of the Organization Creating New Knowledge Science (Universities and Institutes of Knowlegde) Impact of the Environment In a cyclical process after absorption of new knowledge, it is analyzed, classified and after assessment of compatibility and acceptance is incorporated into existing resources internalisation, creating new knowledge, which is used in development processes (experience), contributes to increase the maturity of the company.
Ethics as a foundation Whatever you can do or dream you can, begin it [J.W. Goethe]. A difficult phase of implementing change requires consistency and patience, while anticipating success. However, any abandonment in this sphere is unethical. Ethics should be the foundation of any organization's activities. Ethical responsibility can improve business performance and prevent or reduce the cost of any conflict. Ethical conduct is also personal values and sense of responsibility, willingness to treat others as equal, honesty and commitment. These values should be exposed at the stage of knowledge acquisition. Accordingly, each University should develop and respect its own code of ethics for all teachers, as the patterns observed during the course of study are transferred directly to the business by the graduates.
"10E" model To avoid the negative effects of unethical behaviour, it is proposed to use the "10E" model (Empathy, Ethics, Ecology, Efficiency, Elastisity, Economic, Aesthetics, Emotions, Erystics, Eclecticism) which takes into account a broadly understood concept of a corporate social responsibility and the philosophical core of this model is based on ethics and empathy.
In a free economy, there is one and only one obligation to the society related to economic activity to use resources and engage in profitmaking activities, if it is within the rules of the game, which means free competition without making up and cheating [Friedman 1962]. Ethics An ethical company is a trustworthy company where participants of a network value system and other stakeholders can bestow on the organization, and this can be interpreted as the perceived credibility of the organization, estimated by dimensions of transparency, honesty, competence, friendliness and reliability, based on personal experience, reputation, and compliance with the values [Pirson 2008].
Ethics These features, exhibited in action while formulating the strategy, benefit with expected, positive attitudes of employees marked with a high commitment, connected with trust, easy formation and development of cooperative relationships, leading to implementing strategic tasks on the level exceeding expectations.
It takes many good deeds to build a good reputation, and only one bad one to lose it. [Benjamin Franklin] It takes 20 years to build a reputation and five minutes to ruin it. [Warren Buffett] Modern organization Every modern organization is forced to define its knowledge transfer policy and showcase its achievements for the purpose of creating one of the most important intangible assets that it can have - the image of a company in a social setting. This also applies, and perhaps even to, educational institutions (Universities) in particular. Meanwhile, management science was bogged down in the 1980s at Porter's value chain. This model has a debatable value, which is confirmed by Joan Magretta [2014], who "explains" how to interpret Porter's value chain. However, some authors perceive this model as a new theory of competitive advantage, and even as a new theory of strategic management [Borowski 2013].
In a view of the high dynamics of the business environment, other models of various management schools have also become outdated (also lost their value). Therefore, it is proposed to modify the existing M.E. Porter five forces analysis and a model of an excellent company, previously presented as 7S McKinsey s one.
Modified model of forces shaping the attractiveness of the sector The decision to enter the sector is based on a comprehensive analysis of the sources of profitability: the current state of competition in the market (competition repleteness), substitutability and bargaining power of customers and suppliers included in the Porter model and barriers to entry and exit not included in the model.
Modified model of forces shaping the attractiveness of the sector The threat of the emergence of new competitors, so far considered as the fifth power of the Porter model, is therefore the result of the operation of five forces rather than the fifth component of the sector's attractiveness model. So the model in a new shape is proposed.
Model "10S" Enriched analyses, apart from applying in the area of strategy creation, can even lead to redefining their own business model. It is also possible to use a well-known 7S model by Mc Kinsey, which is enriched with sensibility, (understood as an ability to perceive signals generated by various units from the corporate environment), and is suitable for applying it in the process of creating a perfect business.
Management must foster the morale of its employees. He suggests that: "real talent is needed to coordinate effort, encourage keenness, use each person s abilities, and reward each one s merit without arousing possible jealousies and disturbing harmonious relations." [H. Fayol] Model "10S" In addition, more than 100 years ago, H. Fayol proposed 14 components of a model organization, among which Esprit de corps is particularly important a factor almost absent in most corporations.
Ingredients creating excellent business model "10S" Thanks to incorporating it, along with CSR into the company's philosophical core, a contemporary version of the 7S model is created, suitable for applying in the process of creating a perfect business in a dynamic environment.
Summary Opportunities for creating and exploiting competitive advantages built in areas not observed by competitors, in an effective, long-term ways, have only organizations operating or at least aware of the existence of a larger, than the standard, number of dimensions. One of the most important spheres in the post-crisis environment is business ethics, which involves the construction and maintenance of a shared values system.
Summary Opportunities for the creation and effective, long-term exploitation of competitive advantages built in areas not observed by competitors, have only organizations that are aware of the existence of larger, more standard dimensions. Accordingly, it is suggested to include a new model "10S" (modification of the model 7S Mc Kinsey) and 10E into the analytical standards. In these models a special attention is paid to the importance of ethics in running a business.
Ireneusz Bielski, PhD Grzegorz Hoppe, PhD Thank you for your attention Marek Sikora, PhD m.sikora@utp.edu.pl Shaping Ethics in Academia and Society: Practices in the Baltic Sea Region