The New Rules of Corporate Conduct: Rewriting the Social Charter

(Hardback)

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Corporations operate under the terms of a largely unwritten, constantly changing social chartera dictum as forceful as their written legal charter. Wilson explores the rules that are beginning to govern corporate performance, rules that arise from society's ever changing values and expectations. Provoking these changes are four formative forces: the power shift from the public to private sector; globalization; economic restructuring; and, the transforming technologies of the computer and communications revolution. The rules emerging from them will dictate higher standards and changed behavior in seven crucial areas of corporate conduct. Wilson argues that corporate social responsibility is no longer a peripheral public relations activity. Rather, it is an integral part of corporate strategy. Trends may seem to be running in corporations' favor, but the same trends also place greater responsibility and higher public expectations on corporations. The next decade, says Wilson, is likely to be a critical testing time for democracy, market systems, and by extension the private corporation. His book is a detailed analysis of the seven new rules and what their impact will be on U.S. and ultimately world corporations. Wilson concludes his book with a detailed agenda of needed, and workable, corporate responses to the new rules and cites the initiatives that many corporations are already taking to live by them. The seven new rules of conduct that corporations will have to observe, sooner rather than later. (1) Legitimacy: to earn and retain social legitimacy the corporation must define its mission in terms of social purpose, rather than the maximization of profit. (2) Governance: the corporation must be thought of, managed, and governed as a community of stakeholders, not as the property of investors. (3) Equity: corporations must strive to achieve greater perceived fairness in the distribution of economic wealth and the treatment of stakeholder interest. (4) Environment: corporations will have to integrate the practice of restorative economics and sustainable development into the mainstream of their business strategy (5). Employment: they must rewrite the employment contract, addressing the values of the new work force. (6) Public-Private Sector Relationships: corporations must work with governments to achieve a viable and publicly accepted redefinition of their societal roles and responsibilities. (7) Ethical Conduct: corporations will have to elevate and monitor the level of ethical performance to earn the trust which is the foundation of sound relations with stakeholder groups. Is all this impossible Not at all says Wilson, and he documents how many of America's most successful companies are operating in whole or in part by these rules already, and how others have begun doing so with immediate positive results.

Reviews

.,.".[A] penetrating analysis of the historic drama now unfolding.... Don't miss this book if you hope to understand the future of big business."-William Halal George Washington University
.,."Ian Wilson articulates the changing social expectations for corporations and ways in which corporate leaders can address them. The subject is very timely--driven by strong forces which include the rise of capitalism, ... globalization, economic restructuring and dramatic advances in information technology. [It] is a well-structured and thoughtful book, ... and it closes with a clear action agenda to help guide behavior."-Daniel G. Simpson Vice President, Strategy & Planning The Clorox Company
"A thoughtful book with a wide-ranging perspective.... Written not only for planning experts but for any manager concerned about the inflection points that will determine success or failure in the next century."-Warren Bennis Distinguished Professor of Business Administration, University of Southern California
"Ian Wilson provides a capstone of his long and distinguished career in corporate strategy. The result is... a clear and relevant guidepost for senior decisionmakers dealing with an ambiguous and uncertain business environment."-Murray Weidenbaum Founder and Chairman of the Center for the Study of American Business
"Ian Wilson's masterful book will surely become a classic text for future generations of business leaders...[and] will be an eye-opener for those who believe that a corporation exists only to make a profit for its shareholders. [H]e spells out the new rules in clear, concise terms."-Edward Cornish President, World Future Society
"It is a most thoughtful exposition of the changing corporate environment.... The first comprehensive treatment of the major challenges facing corporate management in the immediate years ahead.... I commend it heartily."-Reginald H. Jones Former CEO of General Electric
Broad-gauge, provocative, and thoughtful futures-thinking at its best. Recommended.-Future Survey
Like everything else in this timely book, the final how-to section combines astute analysis, genuine insights, and real wisdom. Looking at it from the perspective of my own 30-plus years of working with planners in business, the book can go a long way to help plug existing gaps in corporate and strategic planning. Wilson's prescriptions carry the weight of his long and broad experience in helping organizations of just about every size and nationality. Add his wisdom and his eloquence, and you have what is indeed an authoritative and very useful book for top executives.-Strategy and Leadership
Overall, an excellent summary of the historc context, based largely on the extensive publications that have been published in the past decade. The relevant issues associated with the need for change and the general direction of enlightened policies are thoroughly discussed. Generally full of good sense and important messages.-Book Reviews
"Broad-gauge, provocative, and thoughtful futures-thinking at its best. Recommended."-Future Survey
"Overall, an excellent summary of the historc context, based largely on the extensive publications that have been published in the past decade. The relevant issues associated with the need for change and the general direction of enlightened policies are thoroughly discussed. Generally full of good sense and important messages."-Book Reviews
"Like everything else in this timely book, the final how-to section combines astute analysis, genuine insights, and real wisdom. Looking at it from the perspective of my own 30-plus years of working with planners in business, the book can go a long way to help plug existing gaps in corporate and strategic planning. Wilson's prescriptions carry the weight of his long and broad experience in helping organizations of just about every size and nationality. Add his wisdom and his eloquence, and you have what is indeed an authoritative and very useful book for top executives."-Strategy and Leadership

Author Bio

IAN WILSON is an international management consultant, author, and authority on scenario planning and strategic management./e Principal of Wolf Enterprises, a consultancy in San Rafael, California, he started his career in England and later joined General Electric (GE) in the United States There, he was a member of the strategic planning staff, established GE's pioneering Business Environment Analysis component, and then became a public policy advisor to GE's Chief Executive Officer. Later, as a senior management consultant with SRI International, he worked with senior management teams in a variety of industries.