Международная Школа Бизнеса (мшб) ibs-plekhanov Тематический модуль Этика бизнеса
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| On greenery, M&S reckons that British consumers divide into four broad groups. About one in ten is passionately green and will go out of their way to shop accordingly. At the other end of the spectrum one-quarter are not interested. In-between are those who care but want green consumption to be easy, and those who are vaguely concerned but don't see how they can make a difference . In M&S's view, that represents an opportunity: three-quarters of British consumers are interested in the green theme in some way. But even the keenest ethical consumer faces complicated trade-offs, and sometimes the apparently obvious ethical choice turns out to be the wrong one. Surely it must be greener for Britons to buy roses from the Netherlands than ones air-freighted from Kenya? In fact, a study at Cranfield University showed the carbon footprint of the Dutch roses to be six times as large because they had to be grown in heated greenhouses. Consumers are right to be suspicious of the ethical claims made for many products. A recent study of the labels of 1,018 products in big stores in North America by TerraChoice, an environmental marketing agency, found that almost all of them were guilty of some form of “greenwashing”. They did not tell outright lies, but nor did they tell the whole truth. A conditional shade of green Joel Makower, the executive editor of GreenBiz.com, says that, given a choice, most consumers will be happy to choose the greener product—provided it does not cost any more, comes from a trusted maker, requires no special effort to buy or use and is at least as good as the alternative. “That's a high hurdle for any product,” he notes. So shoppers will still flock to shops that sell cheap products of decent quality, without asking how these are made. They will often buy more if a product is attractively presented, never mind that the packaging may be wasteful. And when companies try to do the right thing, consumers will not always go along with them. Airlines that invite their customers to buy carbon offsets have seen only minimal uptake. The lesson for companies is that selling green is hard work. And it is no good getting too far ahead of the customer. Half a step ahead is about right, according to Stuart Rose, the chief executive of M&S. Much more, and you won't sell. Any less, and you won't lead. WORD LIST
HOME ASSIGNMENT – read the article “Why “how” matters more than ever”, write out topical vocabulary, enumerate reasons which make companies reframe their orientation in the 21st century, write a summary of 150 words. Unit 4 1. Discussion Work in pairs. Discuss the following questions with your partners.
2. Text and Text Assignments Why 'How' Matters More than Ever New columnist Dov Seidman says human connections are key in a hyper-connected world—no matter whether you're a doughnut maker or a doctor by Dov Seidman In the 21st century, how we do what we do matters more than what we do. Products and services remain vital, but they now take a backseat to human connection. This principle is central to thriving in our hyper-connected world, and I believe it applies to all levels of human endeavor and business interactions. Consider Ralph, a New York City doughnut maker, who captured the attention of blogger Jason Kottke. When Kottke handed a dollar bill to Ralph in exchange for a 75¢ glazed donut, Ralph pointed to a pile of change scattered on the counter and yelled "Next!" Kottke downed his doughnut while marveling that all of the customers who followed him either gave Ralph exact change or made their own change, as he had done. It seemed to Kottke that Ralph was serving an extraordinary number of customers. Kottke confirmed his hunch by visiting other doughnut vendors nearby. On average, the competitors spent twice as much time with each customer—and served half as many. Ralph's innovative business approach—in economic terms, he reduced his transaction costs by substituting trust for the labor of making change—serves as an important illustration. Ralph could not differentiate his business based on his baking skills; his doughnuts are good, but so are those baked by his competitors. Nor could he win on price or doughnut-baking efficiency because the doughnut makers across the street could match him on both of these counts as well. Efficiently baking delicious, competitively priced doughnuts is necessary, but no longer sufficient to thrive. So, Ralph found a way to "outbehave" his competitors by using trust to forge a deeper connection with his customers. Evolving Our Networks of Association Like Ralph, each one of us has daily opportunities to innovate in how we connect and collaborate with customers, colleagues, and other stakeholders. Moving from a "what" mindset to "how" one requires a major shift in perspective, because individuals and businesses have been pursuing "what" for hundreds of years. But if we intend to thrive, rather than merely survive, in the 21st century, we need to reframe our orientation. First, we now live in a hyper-connected world. Communications technology has joined us together across time, distance, culture, and country faster than we have developed frameworks to understand one another. How do you write an e-mail to someone if you do not know whether he treats a cow as a sacred object or lunch? In a connected world, it's essential to create strong connections with others—to reach out, build trust, enlist others in a vision, and share passions. To thrive in a hyper-connected world, we need to evolve our networks of association. Second, hyper-connectivity has created hyper-transparency. The quantum leap in our access to information about almost everything has dramatically changed the playing field in almost every way, in life and business. No longer can we shade the truth, fib a little on our résumé, or tell one customer one thing and another something else. It has become too easy to compare notes, check backgrounds, and subpoena e-mails. As individuals and organizations, we no longer control the story that is written about us. Looking at More, Looking Deeper Instead, we can only control how we behave, which is the primary influence on how our story is told by others. Think how easy it is to peer into the inner workings of a company today. Chat rooms, online forums, instant access to financial reports and transactions, 24-hour news coverage from around the globe; almost nothing goes unreported. Because there is more to look at, we want to look deeper. For companies, simply having a vision and mission no longer suffices because people can see whether our behavior is consistent with our vision and mission. As a result, we have begun to judge people and companies in different ways. We now expect a higher level of transparency from everyone and every company. To thrive in a hyper-transparent world, we have to learn to be "actively transparent," to turn the specific conditions of the age to our advantage. Third, our flattened, hyper-connected world has limited previous modes of competitive differentiation. Almost every product, service, or process a company creates—our "whats"—can be reverse-engineered by competitors. So many of our whats are quickly becoming commodities. Every company answers the phone on two rings. Numerous manufacturers—not just Dell—have moved to just-in-time inventory. Human Conduct: The Next Frontier The hows of human conduct are to the 21st century what process reengineering was to the last. When business leaders realized that the soft and subjective aesthetic of quality was in fact hard and quantifiable, we began measuring inefficiencies at every level of production, and everyone got good at quality. So good that it, too, became a commodity. To thrive today, we can no longer differentiate ourselves based on what we sell to the customer—or the processes we use. Instead, we need to differentiate based on the connections we establish and the experiences we create that engender trust and loyalty. Human conduct—how we do what we do—represents the next frontier of powerful differentiation. The qualities that many once thought of as "soft"—trust, integrity, honesty—are now the hard currency of business success and the ultimate drivers of efficiency, productivity, and profitability. Connections can reduce supply-chain risk, enhance customer experience, help executives exert greater influence over a highly decentralized global workforce, and ultimately lower costs and boost revenues. Just ask the University of Michigan Health System and the University of Illinois Medical Center at Chicago, two pioneers among a growing number of medical institutions using an innovative way of connecting (or reconnecting) with customers: letting doctors apologize to patients when they make mistakes. Both medical providers achieved hard business benefits from their revolutionary departure from the traditional "deny and defend" response to physician error. Since the policies that allow doctors to apologize began, The New York Times reports, malpractice lawsuits have decreased by 50% at the University of Illinois Medical Center and by nearly 70% at the University of Michigan. Or ask Ralph, who found a way to increase his sales volume and reduce his person-to-person service time while building customer loyalty. Ralph learned what we all need to learn: Shifting our focus from what to how has extremely beneficial consequences. Ex. 1 Skim through the text and answer the questions.
Ex. 2 Read each statement carefully and decide whether it is true or false. If it is false, tell why, or explain how the statement can be changed so that it will be true.
3. Vocabulary Word list
Ex. 1. Discuss your word list, definitions and examples with your team members. Ex. 2. Complete the sentences using active vocabulary.
5. Discussion and Team Work Your group is given an opportunity to organize a business enterprise of the 21st century. Do not forget that ‘how we do matters more than what we do’. a) Select the company’s name. (A company name should inspire confidence and project a professional image. Choose a name that you can be proud of.) b) Develop the mission and the vision of the company. c) Select your company product.
Present the results of your work in class. HOME ASSIGNMENT: 1. Read the article “Hugging the tree-huggers” 2. Make up word list on topical vocabulary (word – translation- definition- example) 3. Write an answer (100 words) to the question “Why so many companies are suddenly linking up with eco groups.” 4. Find ‘green ads’ and be ready to discuss their effectiveness. Unit 5 Class work: Thoughts to ponder:
By Diane Brady MARCH 12, 2007 THE ENVIRONMENT
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