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Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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local firms wanting to bid for, and win, contracts with oil
companies. To date, over one thousand local companies are
registered with CAE, and over 10 percent have completed
EHS (environmental health and safety) certification. Chevron
recently sponsored a business plan competition for small
firms with the winners awarded contracts.
Operating in this kind of milieu, company executives have
to work with counterparts in other firms, international NGOs,
myriad small, local businesses, plus regional officials and a
national government to arrive at agreeable policies and
practices. Are you prepared for this?
Supporting communities?
Chevron has for years been fighting a lawsuit that Texaco,
acquired by Chevron in 2000, dumped more than 18 billion
gallons of toxic wastewater into the Ecuadorian Amazon
rainforest from 1964 to 1992, leaving local people suffering
from an epidemic of cancers, as well as miscarriages and
birth defects. In Ecuadors courts, some 30,000 indigenous
villagers and campesinos were awarded a $9.5 billion judgment in a class action suit after 20 years of legal battles.
Chevron thereupon countersued 47 villagers (named as plaintiffs), and New York-based human rights attorney Steven
Donziger, who had advised them in their winning claim, on
grounds of conspiracy to extort the company.
On March 4, 2014, a U.S. District Court ruled that the $9.5
billion Ecuadorian judgment was a product of fraud, bribery,
and racketeeringand dismissed it. But this is not the end of
the story: cases filed in Canada, Brazil, and Argentina have
yet to be adjudicated and the NGO Amazon Watch is now
trumpeting the ruling as a mockery of justice on its
chevrontoxico.com website. How does an executive make
the case that Chevron (or any other company) supports local
communities in a toxic environment like this?
Renewable energy?
Industry analyst Antonia Juhasz reports that BP holds the
record for the highest percentage of expenditures oil companies commit to renewables (peaking at 6.5 percent in 2008
before BP sold off its U.S. wind business and some solar
operations to help pay for the Gulf cleanup). Chevron and
Shell follow at highs of 2.5 percent. But since 2008, Chevrons
spending on renewables has dropped annually and was less
than 0.5 percent in 2013. A May 29 2014, Business Week
article entitled Chevron Dims the Lights on Green Power
reports that the company has sold off or closed many of its
renewable business units. Why the pullback? It turns out that
renewal energy investment isnt nearly as profitable as
hydraulic fracturing (aka fracking).
In todays cynical and social-media saturated environment,
whenever your company touts its good intentions, somebody is
bound to turn on you. Chevrons We Agree campaign was
targeted by the activist group The Yes Men, which teamed up
with the Rainforest Action Network and Amazon Watch to erect
a fake website proclaiming that Chevron agrees oil companies should fix the problems they create and clean up
their messes. These protest groups then announced an online
contest for print, web, and TV ads satirizing what they termed
Chevrons greenwashing Hundreds of submissions poured in
and were posted online and even pasted up in cities nationwide. The fake ads variously featured oil spills (oil companies
should stop pretending they care), downtrodden locals (oil
companies should stop poisoning children) and even Lord of
the Rings Golem slavering over oil (we wants it, we needs it,
must have the precious). One contestants advert read simply, Chevron must think were stupid!
To its credit, Chevron eschewed a litigious response to this
brand-jacking but also never answered its critics with full
disclosure facts and figures, warts and all about its
community investments, environmental performance,
spending on renewables, distributions of profits, and the
like. What should a business leader do?
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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Transforming executives into corporate diplomats: The power of global pro bono service
companies now operate in a complex ecosystem of diverse
expectations and interests. Global capitalism has brought
unprecedented wealth, power, and influence to corporations
and traditional boundaries between government, business and
civil society are shifting across the globe. In this new operating
environment, the private sector faces heightened expectations to actively participate in and contribute more of its
talents and treasure to the sustainability of society. Ernst &
Youngs CEO James Turley remarks: Companies have, in general, wanted a freer hand, in terms of government regulation
and restrictions on their business activities. But with that freer
hand comes an obligation. You cant ask for one and not deliver
the other. An Indian company chairman puts it this way:
With great power comes great responsibility.
Todays challenges cannot be ignored by any sector of
society. Critical social and environmental issues plague the
entire increasingly interconnected planet. In the last decades,
the gap between the average per-capita GDP (gross domestic
product) in the 20 richest and poorest countries has doubled,
and income inequality within developed economies has grown
precipitously. More than 2 billion people lack adequate sanitation facilities, and more than one billion lack access to clean
water. On the environmental side, besides the effects of global
warming, one in four mammal species is in serious decline, fish
stocks are eroding, the worlds wetlands and forest cover are
declining markedly, and desertification puts some 135 million
people worldwide at risk of being driven from their lands.
How should private enterprise respond? The public clearly
expects business to take more responsibility for at least some
of these issues. The polling firm GlobeScan asks the public
annually whether companies are not at all, somewhat,
or completely responsible for various aspects of business
operations and their impact on society. The findings indicate
that large majorities in 21 countries hold companies completely responsible for the safety of their products, fair
treatment of employees, responsible use of raw materials,
and for not harming the environment. These are, of course,
operational aspects of firms and well within their control. But
in addition, some 40 percent holds companies completely
responsible for reducing human rights abuses, shrinking the
rich-poor gap, and solving social problems. Many more hold
business at least partially responsible on these matters.
Responsible leadership is required not only for business to
meet its obligations in this new context, but also to retain its
license to operate and to grow. Many firms express their
commitments to society through their corporate social
responsibility (CSR) and sustainability programs. Some firms
are revising their codes of conduct, adopting sustainable
practices, and engaging their employees in their community
service programs; others are forming board and management
level CSR committees, measuring their environmental and
social performance, and issuing public reports. Select firms
have integrated staff functions responsible for CSR-type
issues and are moving responsibility and accountability
into lines of business. And a vanguard is taking CSR to
market by offering products and services that aim explicitly
to both make money and make a better world.
Multiple interests
Surveys find that the great majority of business leaders
acknowledge responsibilities to multiple stakeholders. This
includes not only fiduciary responsibilities to shareholders,
but also obligations to employees, customers, suppliers,
business partners, communities, and others that are
touched by corporate behavior. Before launching its ecomagination strategy, General Electric invited stakeholders
(including customers, suppliers, and environmentalists) to
two-day dreaming sessions where they envisioned life in
2015 and what they would want from GE. Reflecting on this,
CEO Jeff Immelt said, Success in tomorrows markets
means working with stakeholders to understand, predict,
and shape our future environment and ways of living.
Tackling important problems together will require teamwork and respect.
In turn, growing legions of NGOs that represent varied
stakeholders are operating at the nexus of business and
society. Over 200,000 new citizen groups have been formed
around the world since the mid-1980s, and global NGOs have
been rising in numbers, scale, and scope. Amnesty International, for example, has nearly two million members in every
country where multinational corporations do business, and
the World Wildlife Fund has over five million. Both of these
groups, as well as Oxfam, Greenpeace, and thousands more,
have forced companies to account for their economic, social,
and environmental inaction or misdeeds.
Complex issues
Throughout the world, there are growing social movements
concerning consumer protection, investor rights, employee
well-being, and the health of the planet that embody economic power and carry with them the possibility of regulation
and legal remedy for harms. Who in business would have
imagined, say, 20 years ago, that a corporation would be held
responsible for how employees are treated in a poor, faraway
land working in a factory the company doesnt even own?
Nike learned this the hard way when reports of physical and
sexual abuse of workers, salaries below minimum wage, and
an exploitative quota system surfaced from its Vietnamese
and Indonesian suppliers. Today it is widely known that
consumers, investors, and the public at large will punish
bad corporate behavior.
On this point, Don Tapscott, co-author of The Naked
Corporation, has documented the emergence of stakeholder webs composed of NGOs and citizen activists as well
as other parties with relevant interest and/or expertise that
coalesce around social issues and corporate conduct. These
parties scrutinize firms and move into action at the whiff of
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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Multi-party governance
Complex and interdependent economic, social, and environmental problems call for complex solutions. Organizations
from different sectors and industries bring unique and essential assets to the work of social change. Multi-party governance arrangements include stakeholder networks, publicprivate partnerships, and transnational collaborations. In
different configurations, business, government, and nonstate actors have joined forces to reduce corruption, promote sustainable business practices, tackle water shortages,
encourage healthier eating habits, address climate change,
and promote peace in troubled lands.
The Extractive Industries Transparency Initiative (EITI),
for instance, is a collaboration that includes BP, Chevron,
Exxon Mobil, Shell, Rio Tinto, Total, and other major oil and
gas providers. EITI specifically aims to reduce the embezzlement of oil and natural resource revenues and allow others to
monitor and influence governmental spending priorities by
promoting the transparent reporting of payments. First Lady
Michelle Obamas Lets Move! Campaign and the Partnership
for a Healthier America, in turn, targets improved diet and
exercise for kids and includes the largest U.S. foods and
beverage companies, food retailers and restaurants, the
main food industry associations, as well as the National
School Lunch Program.
This new diplomatic context can have a substantial impact
on the ways companies do their business. At one time, Nike
could manage its array of interests, issues, and institutional
arrangements through a handful of staff in its public affairs
and corporate responsibility functions. Today Hannah Jones,
vice president of sustainable business & innovation at Nike,
leads over 140 people in developing eco-innovations like
recyclable shoe design and Nikes Reuse-a-Shoe campaign
and in outreach efforts that include organizing the First
Womens National Slumsoccer Championship campaign
in over 40 countries.
Nike has assigned over a hundred managers with governance responsibilities inside and outside the company and has
involved thousands of its employees in multi-stakeholder
partnerships. These efforts include collaborations with footwear, apparel, and fabric companies to inspect and ensure
the safety and health of workers in their supply chains;
partnerships with other businesses and NGOs in the Textile
Exchange, Sustainable Apparel Coalition, and several organic
certification schemes; and involvement with the United
Nations in its human rights agenda. Broadly speaking, while
each of these ventures involves different issues and interests,
what the companies and the employees engaged in them
have in common is that they are practicing corporate diplomacy.
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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Transforming executives into corporate diplomats: The power of global pro bono service
learning is a particularly apt experience for learning about
ones self. Engaging in service in poor communities, or with
NGOs or small businesses far from the commercial mainstream of the U.S. and Europe, exposes business leaders to
unfamiliar social, political, and economic conundrums and to
a new set of leadership challenges. These provide a rich mix
of stimuli to leaders seeking a personal footing in a global
environment. This can also aid them in gauging personal
leadership strengths and weaknesses, and in understanding
what does and does not work in different contexts. This kind
of learning is of course enhanced when leaders have structured opportunities to reflect on their experiences.
Second, business leaders are being encouraged to develop
their interpersonal skills to work effectively with people of
different ethnic, racial, and socio-economic backgrounds and
from different cultures. Service learning promotes greater
understanding of the other. It is well established that
human relations develop and deepen as people see themselves in another person and see another in themselves.
Working and serving alongside others forges such cross-connections and can enhance a leaders ability to understand and
empathize with others. This naturally has relevance to leaders dealings with global staff, as well as with the mix of
stakeholders they encounter in corporate diplomacy. Connecting with others of a different background yields leadership lessons on ethnic and socio-cultural diversity. In this
light, Earley and Peterson regard cultural intelligence as
essential to global executives.
Global service learning assignments typically put participants into a multicultural milieu where they are dealing with
people who may have very different outlooks, motivations,
and goals. Executives, lacking formal power in this context,
have to learn to listen openly to different points of view,
explore what is behind them, and exercise a deft diplomatic
touch in the face of potential conflicts. In this context, a strong
case can also be made for team based service as it can help
multicultural groups to simultaneously improve their own
teamwork and serve diverse communities more effectively.
Third, leaders are being urged to apply their business
acumen to the scramble of fast-paced changes in the world
around them and, in particular, to come to grips with the
social, moral, and environmental impact of their global
organizations. This means, among other things, becoming
global citizens and developing a point of view about the
role of business in society. On these counts, exposure to the
dilemmas and tradeoffs posed when trying to do business
responsibly in, say, an emerging market or lax legal environment can broaden and deepen a leaders experience pool. It
can also continuously challenge and inform their self-picture
as leaders in their firms.
Global service learning assignments expose people to
complex social problems whose very definition is value-laden
and where private enterprise may, in many instances, be
deemed one source of the problems at hand. This naturally
stretches executives who have to interact with and explain
themselves to people uninformed about or even critical of
their business and organization. It can also open up the eyes
and thinking of executives and give them a better understanding of and feel for working with diverse stakeholders.
Henry Mintzberg and Jonathan Gosling make the case that
hands-on engagement with the social complexities of global
enterprise helps executives to develop a worldly mindset.
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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to identify local partners and projects that provide maximum impact for employees and local communities and that
complement a companys culture, mission, and goals for a
global pro bono service program. NGO implementing partners serve as a cultural bridge between corporations and
local institutions, fostering an atmosphere of trust that is
critical to working relationships in emerging markets, yet
difficult to establish without a longstanding local presence
and knowledge of development challenges (see Box 2 on
NGO partners).
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
+ Models
Transforming executives into corporate diplomats: The power of global pro bono service
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
+ Models
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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Transforming executives into corporate diplomats: The power of global pro bono service
corporate lives. The customer who recommends us; the
neighbor who speaks on our behalf; the politician who is
more open to a point of view; the employee who enthusiastically and proudly sports the corporate brandall of these
are examples of advocacy-in-action. Such advocacy requires
long-term commitment and authentic relationships that are
built on trust. One of the most effective and economical ways
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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SELECTED BIBLIOGRAPHY
Background readings on pro bono service and global corporate volunteering include G. Hills and A. Mahmud, Volunteering for Impact: Best Practices in International Corporate
Volunteering (Boston: FSG Social Impact Advisors, 2007); P.
H. Mirvis, K. Thompson, and C. Marquis, Preparing next
generation business leaders, in R. Burke and M. Rothstein
(Eds.), Self-Management and Leadership Development,
(Cheltenham, UK: Edgar Elgar, 2010); and N. M. Pless, T.
Maak, and G. K. Stahl, Developing global leaders through
international service learning programs: the Ulysses experience, Academy of Management Learning & Education,
2011, 10(2) 237260.
On the contours of global pro bono programs, see P. H.
Mirvis, K. Thompson, J. Gohring, Toward next generation
leadership: global service, Leader to Leader, 2012, 24
(Spring) 2026; also IBMs Corporate Service Corps: A New
Model for Leadership Development, Market Expansion and
Citizenship http://www.ibm.com/ibm/responsibility/corporateservicecorps/.
On diplomatic and responsible leadership competencies,
see the classic by H. Nicolson, Diplomacy (Cambridge; Oxford
University Press, 1938). See also M. Gitsham, Developing the
Global Leader of Tomorrow (PRME, EABIS, Ashridge, 2008);
and J. Gosling and H. Mintzberg, The five minds of a manager
Harvard Business Review 2003 (November) 19. Christopher
Pinney and the Hay Group profiled attributes of successful
CSR and governance professionals in Leadership Competencies for Corporate Citizenship (Boston: Boston College Center for Corporate Citizenship, 2009). They highlight personal
maturity, peripheral vision, visionary thinking, a systems perspective, collaborative networking, strategic influence, and
the capacity to drive change as key leadership attributes in this
arena. In turn, a study of 10 companies found that leaders in
firms at advanced stages of sustainability were far more likely
than counterparts in less advanced firms to question assumptions about their business, make creative connections
between their strategy and the interests of society, and apply
Philip Mirvis is an organizational psychologist whose studies and private practice concern large-scale organizational change, characteristics of the workforce and workplace, and business leadership in society. An advisor to
companies and NGOs on five continents, he has authored 12 books, including The Cynical Americans (social trends),
Building the Competitive Workforce (human capital investments), Joining Forces (human dynamics of mergers), To
the Desert and Back (business transformation case), and recently, Beyond Good Company: Next Generation
Corporate Citizenship. Mirvis was recognized as Distinguished ScholarPractitioner by the Academy of Management. He teaches in executive education programs in business schools around the world (Tel.: +1 978 356 8742;
pmirv@aol.com).
Stephen Hurley is managing director of Solutions Insights, Inc., a consulting and training company that works with
both for-profit companies and nonprofit organizations to improve their ability to deliver greater and more
sustainable value to their respective customers and other target audiences. Over the past 6 years, Hurley has been
working with PYXERA Global in implementing a benchmarking survey that evaluates how companies have
developed, implemented and continue to manage international volunteer programs. This unique survey is
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010
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Transforming executives into corporate diplomats: The power of global pro bono service
11
conducted on an annual basis. In addition, he has an ongoing working relationship with VEGA, a consortium of
organizations that focus on mobilizing skilled-based volunteers to address international economic development
issues and challenges. Prior to establishing Solutions Insights, Hurley spent more than 15 years with Arthur D.
Little, Inc. (ADL), formerly one of the worlds leading management consulting companies as a senior consultant in
the International Economics and Development practice. He is also a professor at the Hult International Business
School, where he teaches M.B.A.-level international marketing and solutions marketing courses (Tel.: +1 781 686
1607; shurley@solutionsinsights.com).
Amanda MacArthur is vice president of global pro bono and engagement at PYXERA Global, MacArthur leads the
organizations Global Pro Bono and MBAs Without Borders programs, as well as The Center for Citizen Diplomacy. In
this capacity, she designs and implements corporate social responsibility programs for the public and private sector
focused on skills-based volunteerism in emerging markets, leadership development, and sustainable economic
impact. Most recently, she played a key role in designing IBMs Corporate Service Corps, while overseeing Global Pro
Bono programs for PepsiCo, Pfizer, FedEx, and several others (+1 202 530 7690; amacarthur@PYXERAGlobal.org).
Please cite this article in press as: P.H. Mirvis, et al., Transforming executives into corporate diplomats: The power of global pro bono
service, Organ Dyn (2014), http://dx.doi.org/10.1016/j.orgdyn.2014.08.010