NationalValues&CorporateSocialResponsibilityStephenB.Young,GlobalExecutiveDirectorCauxRoundTablePortoroz,SloveniaApril4,20081NationalValues&1TheChallenge:WhataretheculturalfoundationsforCSRManagement?DoesCSRManagementfitwithinanationaldevelopmentstrategy?2TheChallenge:2WhatisCSRManagement?Businessdecision-makingthatincludesanticipationandmeasurementofawiderangeofconsequencesIncorporatesculturalandmoralperspectivesintothefinancialmetricsofsuccessfulfirmsNormativestandardsderivedfromglobalperspectives(CauxRoundTable,UNGlobalCompact,GRI,SA8000)3WhatisCSRManagement?3WhatisNationalCulture?Customs,habits,values,prioritiesthatcreateapsychologicalcomfortzoneforindividualsPredispositionsanddispositionsofpersonalcharacterCoreconcepts–axialprinciples-expressedinlanguageandapprehendedthroughlanguageuse4WhatisNationalCulture?4WhatAreAxialPrinciples?Coreprinciplesabouthumanpurposeandrealitythatinfluencemanyattitudes,behaviors,andexpectationsofrightandwrong,goodandbad,closeandfarCultureshaveuniqueaxialprinciplesAxialprinciplesshapenationalcharacterAxialprinciplesareexpressedinlanguagebutcarriedoutinbehavior5WhatAreAxialPrinciples?5 FromNormativitytoFacticity (JurgenHabermas)6 FromNormativitytoFacticit77Other-RegardingTheMoralSenseSelf-RegardingSelf-InterestConsidereduponthewholeSelf-InterestNarrowlyconsideredBasicphysicalandEgoneedsSelfInterestVirtue8SelfInterestVirtue89StewardshipServiceTheMoralSenseExploitationPowerforcommongood;Ethicalleadership;KyoseiFearPoweronlyforselfDysfunctionalLeadershipDominion99StewardshipServicePowCosmosTheBasicSelf10CosmosTheBasic10VirtueSelfinterest11VirtueSelfinterest11121213

Mutuality/Reciprocity“Jen”/“Shu”SocialOfficeofBusiness;lordlords;ministerministers;fatherfathers;sonsons;CRTPrinciplesPersonalresponsibility;concernforconsequences;achievegoalsCRTArcturusSustainedSocialJustice&WealthCreationCustomersQualityEmployeesAgentsOwners/InvestorsFiduciary;TransparencySuppliersShareRisksCompetitorsCompeteonquality;NofixedmarketsCommunityNoCorruption;GoodEnvironmentProposedChineseBusinessValuePyramid13Mutuality/Reciprocity“1414151516161717

18181919202021212222232324242525262627272828Conclusion:CSRManagementwillbemostsuccessfulwhenCSRnormsareintegratedwithaxialprinciplesofanationalculture29Conclusion:29TheCulturesandAxialPrinciplesofSoutheasternEurope:ThepastcontrollingthepresentWeliveourliveswalkingbackandforthontheValueSedimentsleftbyHistory30TheCulturesandAxialPrincipValueSedimentsLeftbyConflictLivingAttheintersectionofvalueempires:BetweenRomeandwarriortribesBetweenSlavsandUral-AltaicsBetweenRomanCatholicismandEasternOrthodoxyBetweenIslamandChristianityBetweenTurksandSlavs(withAlbaniansaswell)ForeignRulefromVenice,Budapest,Vienna,IstanbulSmallerImperialvisions:GreaterSerbia,GreaterBulgaria,GreaterRomania31ValueSedimentsLeftbyConfliValueSedimentsleftbyFamilyStructureDinaricfamilysystem–theKuca(DinkoTomasic,PersonalityandCultureinEasternEuropeanPolitics,G.W.Stewart,NY1948)Patrivilocalhousecyclewithcomplexity(KarlKaser,Introduction:HouseholdandFamilyContextsintheBalkans,TheHistoryoftheFamily,Vol.1,No.41996)32ValueSedimentsleftbyFamilyDaughters-in-lawandgranddaughters-in-lawcometolivewithhusband’sfamily;multigenerationalhouseholdcycleSonsstaytogetherasaneconomic/socialunit;paternalproperty(theocevina)notdividedwithmarriageordeath,butonlyaftergenerationswhenthefamilygroupdivides.KucaruledbytheStarjesiva–domineeringheadmaleelder“Wheretheelderisnotobeyed,Goddoesnothelp.”“Theyoungtoobey;theeldertocommand.”33Daughters-in-lawandgranddauFamilyDynamicswithintheKucaOscillationbetweenoverindulgenceinaffectionandoverstrictnessinpunishmentAmbivalencebetweenlove/hatred;submission/defianceDesireforself-maximizationcoupledwithkeenresentmentofacceptingdictationfromothersFrequentconflicts:Father/son&Parent/child34FamilyDynamicswithintheKucOneConsequence:Toogoodanopinionofoneself;pridecanbecomequiteboundlessDesiretowinaplaceoftheirownintheworldcanleadtounjustifiedpersonalandnationalclaims35OneConsequence:35SecondConsequence:AlternatebetweenactivityandpassivityLackofemotionalbalanceHopeandDespairequallyexcessive36SecondConsequence:36ThirdConsequence:RivalryandAntagonism

CunningmanipulationofothersadmiredSubmissionyetwaitingtoexertownpowerMistrustfromfearsofdisloyaltyonthepartofothers“Hewhodoesnottrustwillnotbeduped.”“Woetohimwhotrustsaman.”“Hewhohasforcehasjustice.”“Forceisstrongerthanakindword.”“Hewhoknowshowwillgaindouble.”37ThirdConsequence:37ValueSedimentLeftbyHistoryPowerisnotacceptedasautomaticallylegitimateDeterminationtopreservecorevaluesagainstrulersNational/linguistic/ethnic/religioussub-culturesintheregionmostimportantforsustainingindividualidentityandfamilysolidarity38ValueSedimentLeftbyHistoryTurningLeadintoGoldEveryvaluehasitsgoodandbadaspectsWhatisastrengthcanbecomeaweaknessWhatisaweaknesscanbecomeastrengthYin/Yangapproachtotheflowofpowerandcircumstance39TurningLeadintoGold39Self-assertionsideofDinaricfamilypatternKeenAwarenessofselfandvalueshelddearbyselfDeeprespectforimportanceofvaluesSearchforvalue-basedsolutionsinthefaceofpower,crueltyandcynicism4040PositiveCSRManagementOrientations:

Predispositiontopleasecustomers,toinnovate,toseekqualityRoleasfavoredsuppliersinglobalsupplychainsProvideemployeeswithopportunitiestoexcelEmployeeswillingtostepuptochallengesiftheygetpersonalfreedomandrecognitionEmphasisontrainingandworkforcedevelopmentRespondavidlytocompetitioninfreemarketsettingConcernforqualityoflifeinlocalcommunityResistancetoabuseofpoliticalauthority41PositiveCSRManagementOrientLessPositiveCSRManagementOrientationsLessconcernforqualityofpublicgoodsprovidedbythestateLessconcernforfar-offenvironmentalissuesMistrustofinvestors,partners,suppliersMistrustofgovernmentNeedtobepowerfulandarbitraryindealingwithcustomersandemployees,rivalsandoutsiders42LessPositiveCSRManagementOCSRManagementAdvantagesinSoutheasternEuropeValueSediments:RecognitionofimportanceofindividualachievementusethistopromotehumancapitalformationEducationTrainingInventionsandinnovationsHardworkEasyabilitytoarticulatethoughtsandfeelingsRespondquicklytoopportunities43CSRManagementAdvantagesinSNationalValues&CorporateSocialResponsibilityStephenB.Young,GlobalExecutiveDirectorCauxRoundTablePortoroz,SloveniaApril4,200844NationalValues&1TheChallenge:WhataretheculturalfoundationsforCSRManagement?DoesCSRManagementfitwithinanationaldevelopmentstrategy?45TheChallenge:2WhatisCSRManagement?Businessdecision-makingthatincludesanticipationandmeasurementofawiderangeofconsequencesIncorporatesculturalandmoralperspectivesintothefinancialmetricsofsuccessfulfirmsNormativestandardsderivedfromglobalperspectives(CauxRoundTable,UNGlobalCompact,GRI,SA8000)46WhatisCSRManagement?3WhatisNationalCulture?Customs,habits,values,prioritiesthatcreateapsychologicalcomfortzoneforindividualsPredispositionsanddispositionsofpersonalcharacterCoreconcepts–axialprinciples-expressedinlanguageandapprehendedthroughlanguageuse47WhatisNationalCulture?4WhatAreAxialPrinciples?Coreprinciplesabouthumanpurposeandrealitythatinfluencemanyattitudes,behaviors,andexpectationsofrightandwrong,goodandbad,closeandfarCultureshaveuniqueaxialprinciplesAxialprinciplesshapenationalcharacterAxialprinciplesareexpressedinlanguagebutcarriedoutinbehavior48WhatAreAxialPrinciples?5 FromNormativitytoFacticity (JurgenHabermas)49 FromNormativitytoFacticit507Other-RegardingTheMoralSenseSelf-RegardingSelf-InterestConsidereduponthewholeSelf-InterestNarrowlyconsideredBasicphysicalandEgoneedsSelfInterestVirtue51SelfInterestVirtue852StewardshipServiceTheMoralSenseExploitationPowerforcommongood;Ethicalleadership;KyoseiFearPoweronlyforselfDysfunctionalLeadershipDominion529StewardshipServicePowCosmosTheBasicSelf53CosmosTheBasic10VirtueSelfinterest54VirtueSelfinterest11551256

Mutuality/Reciprocity“Jen”/“Shu”SocialOfficeofBusiness;lordlords;ministerministers;fatherfathers;sonsons;CRTPrinciplesPersonalresponsibility;concernforconsequences;achievegoalsCRTArcturusSustainedSocialJustice&WealthCreationCustomersQualityEmployeesAgentsOwners/InvestorsFiduciary;TransparencySuppliersShareRisksCompetitorsCompeteonquality;NofixedmarketsCommunityNoCorruption;GoodEnvironmentProposedChineseBusinessValuePyramid13Mutuality/Reciprocity“5714581559166017

61186219632064216522662367246825692670277128Conclusion:CSRManagementwillbemostsuccessfulwhenCSRnormsareintegratedwithaxialprinciplesofanationalculture72Conclusion:29TheCulturesandAxialPrinciplesofSoutheasternEurope:ThepastcontrollingthepresentWeliveourliveswalkingbackandforthontheValueSedimentsleftbyHistory73TheCulturesandAxialPrincipValueSedimentsLeftbyConflictLivingAttheintersectionofvalueempires:BetweenRomeandwarriortribesBetweenSlavsandUral-AltaicsBetweenRomanCatholicismandEasternOrthodoxyBetweenIslamandChristianityBetweenTurksandSlavs(withAlbaniansaswell)ForeignRulefromVenice,Budapest,Vienna,IstanbulSmallerImperialvisions:GreaterSerbia,GreaterBulgaria,GreaterRomania74ValueSedimentsLeftbyConfliValueSedimentsleftbyFamilyStructureDinaricfamilysystem–theKuca(DinkoTomasic,PersonalityandCultureinEasternEuropeanPolitics,G.W.Stewart,NY1948)Patrivilocalhousecyclewithcomplexity(KarlKaser,Introduction:HouseholdandFamilyContextsintheBalkans,TheHistoryoftheFamily,Vol.1,No.41996)75ValueSedimentsleftbyFamilyDaughters-in-lawandgranddaughters-in-lawcometolivewithhusband’sfamily;multigenerationalhouseholdcycleSonsstaytogetherasaneconomic/socialunit;paternalproperty(theocevina)notdividedwithmarriageordeath,butonlyaftergenerationswhenthefamilygroupdivides.KucaruledbytheStarjesiva–domineeringheadmaleelder“Wheretheelderisnotobeyed,Goddoesnothelp.”“Theyoungtoobey;theeldertocommand.”76Daughters-in-lawandgranddauFamilyDynamicswithintheKucaOscillationbetweenoverindulgenceinaffectionandoverstrictnessinpunishmentAmbivalencebetweenlove/hatred;submission/defianceDesireforself-maximizationcoupledwithkeenresentmentofacceptingdictationfromothersFrequentconflicts:Father/son&Parent/child77FamilyDynamicswithintheKucOneConsequence:Toogoodanopinionofoneself;pridecanbecomequiteboundlessDesiretowinaplaceoftheirownintheworldcanleadtounjustifiedpersonalandnationalclaims78OneConsequence:35SecondConsequence:AlternatebetweenactivityandpassivityLackofemotionalbalanceHopeandDespairequallyexcessive79SecondConsequence:36ThirdConsequence:RivalryandAntagonism

CunningmanipulationofothersadmiredSubmissionyetwaitingtoexertownpowerMistrustfromfearsofdisloyaltyonthepartofothers“Hewhodoesnottrustwillnotbeduped.”“Woetohimwhotrustsaman.”“Hewhohasforcehasjustice.”“Forceisstrongerthanakindword.”“Hewhoknowshowwillgaindouble.”80ThirdConsequence:37ValueSedimentLeftbyHistoryPowerisnotacceptedasautomaticallylegitimateDeterminationtopreservecorevaluesagainstrulersNational/linguistic/ethnic/religioussub-culturesintheregionmostimportantforsustainingindividualidentityandfamilysolidarity81ValueSedimentLeftbyHistoryTurningLeadintoGoldEveryvaluehasitsgoodandbadaspectsWhatisastrengthcanbecomeaweaknessWhatisaweaknesscanbecomeastrengthYin/Yangapproachtotheflowofpowerandcircumstance82Tu