Answer questions 1-4 briefly zoom to see better view of the articles CHAPTER 16 Managing Leadership

Answer questions 1-4 briefly zoom to see better view of the articles
CHAPTER 16 Managing Leadership and Inhuence Processes $13 udure as a business,” declared Browne, “depends on a top-three priority in their CEOs agendas Jandls ech of us, everywhere, every day, taking person esponsibility for the conduct of BPs business. Critics, Among energy executives, 31 percent list sustainability however, were skeptical. Some characterized the initia as a top-three priority (versus 22 percent overall, and formally embedded in their business practices tive as greenwashing. and the global environmental 6 percent report that it's number one (versus 3 percent) as greenwashing,.” and the global environmental 6 percent report organization Greenpeace gave Browne an award for Forty-three percent of energy executives say that sus- st Impression of an Environmentalist.”U.S. Senator Diane Feinstein admits that, until the incidents in Texas and Alaska, she had been fooled: “I thought finally there was an oil company that has a sense of con- science. I no longer think that tainability is built into their business practices (versus 29 percent). “Except among energy companies, adds ckinsey,. “reporting practices are relatively poor considering the impact of sustainability on business How had BP managed to make things even worse, efforts. land).. the role of sustainability in reputation-building reputational speaking, in the wake of Deepwater Horizon? Mostly by putting its energy into legal maneu- rate leaders report that investing in sustain At the same time, however, 55 percent of corpo- abil ng instead of goodwill building. First, BP challenged the ruling of federal judge Carl Barbier that cent identify reputation building as the number-one helps their companies build reputation, and 36 per- t had made “profit-driven decisions” amounting to reason for investing in gross negligence” before the oil spill. t also disputed Young (EY, a global professional-services firm, identifies reputation among that are constantly at risk (placing it in the same class the government's estimate of the amount of oil spilled into the Gulf and then appealed Barbier's compromise igure. In December 2014, after a two-year legal battle, as business continuity and the right to operate). More the U.S. Supreme Court upheld two lower-court rulings and more, says EY. “the corporate sustainability that BP had to abide by an agreement to settle cleanup has thus turned to “risk reduction and conversation mitigation,”especially corporate policy in disclosing and administrator. In February 2015, when Barbier finally sustainability-related risks to investors and other per barrel (for a total of $9.57 billion), BP challenged corporate disclosure policy is “top mana a court-appointed nuled that BP should pay the maximum fine of $4,300 stakeholders. According to EY, the best measure of EPA's authority to set the fine and announced that engagement' in the process. In order for sustainabil. Citing a poll in which 70 percent of Americans wed by law, one Louisiana environmentalist ity to be part and parcel of a company's risk manage- we are considering all of our legal options. agreed that BP should be fined the maximum amount Leon Kaye, “buy-in has to start at the board and declared that Americans aren't fooled by. .. five years fo of shenanigans to drag out this court case. It was time Finally, research conducted by MIT Sloan Manage- added an EPA official, for BP to “step out of the shadow of lawyers, quit spinning and arguing, and just that leadership from the top is crucial among compa- ment plan,” adds strategic communications specialist executive level, where such strategies are ment Review and The Boston Consulting Group shows nies that “perceive sustainability issues as significant and thoroughly address them”: Seventy percent of accept full responsibility At this point, it may or may not come as a surprise that, according to a poll conducted by the global con- these firms reported that sustainability is permanently outing firm McKinsey& Co., “senior executives in the on their top-management agenda, as compared to energy industry” surpass top managers in most other only 39 percent of firms overall. Using criteria that industries when it comes to “taking an active approach include both “sustainability strategy” and “leadership managing sustainability.” Their motivations maycommitment, the study distinguished between Walkers”-companies that walk the talk by identify- ing and addressing significant sustainability con- teflect bottom-line conc cites “the potential for regulation and increasing natural-resource constraints”-but their approach to sustainability (and cens”-and Talkers” (those who do so “to a far lesser degree”. Among Walkers, 70 percent identified sus- tainability as “a permanent item on their company's social responsibility in general) reflects a higher level of commitment According to McKinsey, for example, companies are most engaged with sustainability if… sustainability is senior management to-do list,” as opposed to only 24 percent of Talkers. Two-thirds of Walkers reported