Yesterday I had a conversation with Colin Walker who is General Manager of Terumo.
Most of you are likely not familiar with Terumo - they are a leading organisation working in the health industry - their head office is based in Japan. Terumo’s main customer base is within hospitals and the Australian Red Cross Blood Service.
I asked Colin what responsible leadership means to him...
Colin said responsible leadership primarily involves setting the personal example when it comes to behaviour and the many rules and regulations that are set by government, head office and society.
As a leader you need to follow a code of conduct. More so, you need to champion it, taking the lead and encouraging others to follow your example. This begins at the induction of a new employee where Colin discusses the Terumo code of conduct and the ethical framework underpinning it. He also describes how the company code of conduct works in alignment with the medical industry code of conduct.
Colin is the local representative for the Terumo code of conduct and also was involved in the creation of the industry code of conduct.
Colin agrees that responsible leadership covers a lot of areas. These include, for example, looking after employee safety through conforming with OH&S legislation, an obligation that is also written into the Terumo code of conduct. Responsibility to staff and the company must be at the forefront of every manager’s focus. However, Terumo has the underlying philosophy of contributing to society through healthcare. This brings about a patient focussed approach where every interaction with a doctor or nurse is based on the needs of the patient.
Processes can be put in place to help guide everyone, though in the end it comes down to people being responsible for their own actions. If leadership is set at the highest level, others have a direction and example to follow and this makes it easier for them to be responsible about what they do.
People should be given authority to follow through with their own ideas, thoughts and direction. They can add a lot to philosophies and direction portrayed by their leaders. By following responsible leaders they add to the value of the organisation whilst following their leader’s example.
Customers also should have authority to direct the course of business by giving feedback. When engaging with customers, staff should be given authority to make executive decisions within the confines of their authority that are in the best interests of the customer.
This does not mean providing the cheapest price. It refers to providing an agreement valued by both parties that is in the best interests of the customer whilst also fair and providing value to the business.
Relating to society, responsible leadership ensures the business is in touch with society - as a corporate citizen whilst also ensuring sustainability issues are maintained. Currently Terumo are looking at their own head office property in Australia which has lighting designed to turn on across the office, when all rooms are not necessarily used continuously. The alternative is to re-wire the office which is an expense that needs to be considered if they plan to stay at their present location in the long term.
Colin cited a couple of examples of when responsible leadership has gone wrong - like the David Jones story recently in the media. Society in general has finely tuned social and moral antennae and companies that ignore these do so at their own peril. Doing the right thing (being responsible) may not be easiest path to follow but it usually pays dividends in the long run.
Finishing up, Colin summarised that Responsible Leadership is conveyed across a whole gamut of areas and definitions. Senior leaders need to be holistic with their thoughts and communications in order to be a truly responsible leader.
Leaders need to decide whether they are going to follow certain paths into the future as their own staff and society are regularly looking at what they are doing.
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