Management, but with responsibility

Citius, altius, fortius. The higher, faster, further of sport seems to be one of the central maxims for many companies. For management teams around the globe, the aim is to continually increase turnover and profits, whatever the cost.

In top-class sport today, top performances can almost always only be achieved with aids – and far too often unauthorized props are used. The diesel scandal is not the only indication that it is no different in many areas of the economy. Existing compliance rules and CSR guidelines apparently do not lead to a company or its management team rejecting economic doping from the outset.

In my opinion, this is due to a traditional understanding of the concept of management and the resulting practice, the core question of which was: “What is most beneficial?”. This has led countless managers to focus on the application and implementation of techniques and knowledge. However, the question of whether all this is right or wrong is neglected or not even asked in this understanding. Today, however, it is more necessary than ever. After all, the financial damage caused by the software manipulation of diesel engines runs into the billions. And the loss of trust and image of companies is enormous. At the moment, it is not possible to calculate whether and how this intangible loss can be compensated for.

Managers who think and act responsibly should therefore turn to a new understanding of management in order to protect their own company. The concept of “responsibility” is of central importance here. Responsibility must be transformed into a binding responsibility towards employees, partners, suppliers and society. The term “responsible management” has become established in the academic world, which is understood to mean corporate management that also and especially focuses on the motivations and needs of people. Responsible management of this kind is not a revolution. Rather, I see it as an evolutionary, integrative approach to combining ethics and business – and going a significant step further than compliance and traditional CSR currently do.

Responsible management means profit orientation instead of maximization. In other words, a move away from efficiency towards effectiveness. Responsible management also requires the participation of stakeholders in all processes. Feedback loops are created along the entire supply chain, including with suppliers and employees. This creates a discourse that enables criticism and self-criticism, which leads to a continuous learning process.

In this understanding, innovation is driven by the requirement that it is socially relevant. And: entrepreneurial decisions must be comprehensible from the outside at all times, which requires maximum transparency in communication.

In the spirit of “Do good and talk about it”, lobbying for responsible management in the respective industry or with politicians is also part of this redefinition.