Nicholas Santos, S.J. Gene R. Laczniak [Marquette University, Wisconsin, U.S.A.]

1. The Integrative Justice Model for Impoverished Markets: A Framework for 21st Century Business Leadership Development in the Jesuit Tradition Nicholas Santos, S.J. Gene R. Laczniak [Marquette University, Wisconsin, U.S.A.] 12th Annual CJBE Conference Leading Others and Developing Leaders for Business in the 21st Century July 16-19, 2009 Rockhurst University, Kansas City, Missouri

2. 4 Pillars of Jesuit Leadership • Self-awareness • Understanding one’s strengths, weaknesses, values, and worldview • Ingenuity • Confidently innovating and adapting to embrace a changing world • Love • Engaging others with a positive, loving attitude • Heroism • Energizing oneself and others through heroic ambitions Chris Lowney, Heroic Leadership

3. The 5th pillar of Jesuit Leadership • Concern for the poor and marginalized • Care for widows, prostitutes, orphans • Care for refugees and indigenous people • Fighting for the rights of workers • Providing healthcare and education for the poor • Advocacy

4. 5 key themes of Jesuit Business Education • the development of the moral and spiritual character of the manager, • the responsibility to use one's managerial skills for the benefit of "others," • a concern for the welfare of employees in the manager's organization, • a focus on the social impact of business and organizational decisions, and • a special concern for the poor and marginalized frequently left out of the economy. Kirk O. Hanson (2008), “Business Ethics in Action: Jesuit Business School Strategies for Engaging Business Executives,” Paper delivered at the joint conference of the IAJBS and CJBE at Fordham University, July 20-23.

5. Business in the 21st century A major trend in the first decade of the new millennium • Business engagement with impoverished customers particularly in emerging economies; characterized as the bottom or base of the pyramid market • Business models • Academic literature • Conferences • Incorporation of BoP courses in business curricula

6. The Integrative Justice Model (IJM) • Normative ethical framework for marketing to impoverished market segments • Constructed using the normative theory building process in philosophy proposed by John Bishop (2000) • Integrates the notion of “fairness” or “equity” in marketing transactions as developed in different strands of thought in moral philosophy and management theory • Uniqueness of the IJM: well-grounded, logical, consistent, and systematic model

7. Frameworks covered • Virtue Ethics • Ross’ Theory of Duty • Habermas’ Discourse Theory • Kant’s Categorical Imperative • Rawlsian Theory • Classical Utilitarianism • Sen’s Capability Approach • Stakeholder Theory • Triple Bottom Line Approach • Sustainability • Socially Responsible Investing • Service-Dominant Logic of Marketing • Catholic Social Teaching

8. Key Elements of the IJM (value inputs) • Authentic engagement with consumers, particularly impoverished ones, with non-exploitative intent • Co-creation of value with customers, especially those who are impoverished or disadvantaged • Investment in future consumption without endangering the environment • Interest representation of all stakeholders, particularly impoverished customers • Focus on long-term profit management rather than short-term profit maximization

9. IJM elements – Theoretical support

10. Sample derivation of IJM element: “Authentic engagement with non-exploitative intent” • 2nd formulation of Kant’s categorical imperative decrees, “never treat a person as means to an end merely”. • The “difference principle” of John Rawls implies that actions, policies and procedures not make those least well off, worse off. • One of Ross’ “prima facie” duties is beneficence which suggests rendering aid to those in need whenever reasonable. • Stakeholder theory recognizes the claims of all those affected by the organization not to bear the cost of negative externalities caused by the actions of the firm. • The 3BL measurement of company performance includes “social sustainability “ as part of its business model; sustainable exchange is typically fair to both parties. All of these frameworks are suggestive of treating consumers, especially vulnerable ones, with fairness and without exploitation.

11. An Integrative Justice Model for Impoverished Markets VALUE INPUTS • Authentic engagement with consumers, particularly impoverished ones, with non-exploitive intent • Co-creation of value with customers, especially those who are impoverished or disadvantaged • Investment in future consumption without endangering the environment • Interest representation of all stakeholders, particularly impoverished customers • Focus on long-term profit management rather than short-term profit maximization IMPOVERISHED MARKET SEGMENTS BUSINESS FIRM EXCHANGE TRANSACTIONS OUTCOMES • Long-term relationships • Customer empowerment • Sustainable business initiatives • Creation of a fairer marketplace Santos & Laczniak, “Marketing to the Poor,” Journal of Public Policy & Marketing, Spring (2009)

12. The IJM as a leadership framework • Key elements of the IJM complement core elements of conventional models of economic growth with a long-term sustainability perspective that lays special emphasis on marginalized and impoverished constituents • In postulating a normative ideal, the IJM implicitly informs the distinctiveness of courses taught at Jesuit Business Schools • Internal strengths to help attain the ideal: • International network of business schools • A strong and vibrant social apostolate sector

13. Developing leaders for business • It is also true that without leadership, which is sensitive to justice and service, an unjust social order (e.g. consumer exploitation, ruthless price manipulation, inefficiency, waste and labour exploitation) can destroy the social value of the business sector and alienate individual workers. • The challenge, therefore, is a moral one. Business can be good or bad. However, as a social institution it cannot be ignored, nor treated merely as “an economic engine” without value choices. • “Jesuit education is a critical instrument in developing leaders of the social and economic institutions which shape societies.” André L Delbecq (1983), “Business Schools in Jesuit Education: FOUR REFLECTIONS.”

14. Thank you