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A Test for Future-Fitness

A Test for Future Fitness:

Make it Safe, Smart, Shared, Sustainable and Satisfying

Article by Wayne Visser

Are you fit for the future? Will your product, organisation, community, city or country survive and thrive in 10, 20, 50 or even 100 years?

We live in a world that is changing faster and challenging us more than ever before. Great progress has been made in lifting people out of poverty, advancing scientific frontiers, connecting the globe with technology and making knowledge more accessible. At the same time, there are disturbing trends of increasing inequality, catastrophic destruction of ecosystems and loss of species, pervasive corruption, increasingly volatile and dangerous climate change, waves of forced migration and floods of refugees, a rise of religious extremism and the omnipresent threat of terrorism.

The question is: how can we – as individuals, businesses, communities and policy-makers – prepare for the future? How can we maximize our chances of success, not only by being ready, but also by helping to shape the future that we desire? I think it helps to view future-fitness in two ways: in terms of alignment – i.e. fitting, like a jigsaw piece, into the bigger picture of an emerging world; and in terms of agility – i.e. building up the kind of fitness that allows quick reflexes and strong performance in response to future conditions.

The biggest trends in society and our most enduring ideals suggest that there are five key criteria for future-fitness: our products, organisations, communities, cities or countries must be safe, smart, shared, sustainable and satisfying? These 5-Ss of Future-Fitness are summarised in the table below and then briefly defined in the subsequent sections …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/10/inspiration_future_fit_wvisser.pdf”]Pdf[/button] A Test for Future Fitness (article)

Related pages

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

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Visser, W. (2012) A Test for Future Fitness: Make it Safe, Smart, Shared, Sustainable and Satisfying, Kaleidoscope Futures Inspiration Series, No. 1.

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Family Friendly Enterprise

Family Friendly Enterprise:

Slovenia leads the way

Article by Wayne Visser

An International Sustainable Business column for The Guardian

Only 14% of employees in the UK (compared with a 21% global average) are fully engaged in their work and one in four (24%) are not satisfied with their job, according to a Towers Watson global workforce survey. Furthermore, nearly one in three (30%) do not feel engaged by their employer.

This is no trivial matter. Gallup estimates the cost of employee disengagement to the UK economy to be somewhere between £59.4bn and £64.7bn. Part of this cost is sickness-related absence; engaged employees in the UK take an average of 2.7 sick days per year, compared with 6.2 for those who could be described as disengaged.

The Centre for Mental Health estimates that employers loose around £8.4bn a year this way. However, nearly double this amount (£15.1bn a year) is due to productivity loss from people not feeling well in the workplace, so-called presenteeism.

Turn the trend around, however, and there are big upsides to having an engaged workforce. Research by the Corporate Leadership Council suggests that engaged employees are 87% less likely to leave their organisation. According to the IES/Work Foundation, if companies increased investment in workplace engagement by 10%, they would increase profits by £1,500 per employee per year. That is because engaged employees generate 43% more revenue than disengaged ones and highly engaged organisations have the potential to reduce staff turnover by 87% and improve performance by 20%.

Given these statistics, it is hardly surprising that issues of wellbeing in the workplace are on the rise. In the UK, Business in the Community (BITC) promotes this agenda through their Workwell campaign, while globally the Great Place to Work Institute partners with more than 5,500 organisations with around 10 million employees to conduct the largest annual set of workplace culture studies in the world.

According to their research, employees believe they work for great organisations when they trust the people they work for, have pride in what they do and enjoy the people they work with.

Great Place to Work’s annual surveys and awards give kudos and some PR-driven reputational payback for companies that are investing in workplace wellbeing. For example, Microsoft topped the leader board in 2011 for the best multinational to work for globally, as well as in Europe.

“For us that means greater creativity, greater productivity and, ultimately, continued success as a market leader,” says Michel Van der Bel, managing director for Microsoft UK says. Kimberly Clark scored top in Latin America and the Admiral Group leads in the UK. Importantly, Great Place to Work also recognises large national companies and small and medium-sized enterprises.

Awards are one way to recognise best practice. Another is certification of management systems, which tends to encourage greater embedding of the values in the organisation. One place where this is happening is Slovenia, where the Ministry of Labour, Family and Social Affairs, in partnership with auditing firm The Ekvilib Institute, has run a family friendly enterprise certification scheme since 2007 …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/10/article_slovenia_wvisser.pdf”]Pdf[/button] Family Friendly Enterprise (article)

Related websites

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

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Visser, W. (2012) Family Friendly Enterprise: Slovenia Leads the Way, Wayne Visser Blog Briefing, 1 October. First appeared in The Guardian.

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Practising Social Responsibility Without the CSR Label

Practising social responsibility without the CSR label

Article by Wayne Visser

An International Sustainable Business column for The Guardian

Mexico’s small and medium sized enterprises account for more than 99% of the four million businesses in the country, generate 52% of GDP and provide 72% of employment. The government’s business accelerator programme supports these SMEs by funding institutions that can help the sector grow by improving competitiveness, business opportunities and market scalability.

One such business accelerator is the IDEARSE Center at Anahuac University in Mexico City. The centre’s business model for SME acceleration is built around CSR, incorporating environmental impacts, human rights, self-regulation, social impacts and community involvement and stakeholder engagement.

More remarkable still is that, by working with the supply chains of big brands such as Sony, Coca-Cola and Cemex and having trained more than 150 SMEs since 2007, the SMEs achieved sales growth of between 5% and 37% and jobs growth of between 5% and 19%. At the same time SME performance across all six CSR areas has improved between 23% and 46%. These numbers debunk several popular myths, most notably that CSR is not relevant, too expensive or not incentivised for SMEs. Let’s look more closely at these myths.

Is CSR relevant for SMEs?

The issue of relevance largely hinges on whether you adopt a very literal and narrow interpretation of CSR. Laura Spence, director of the Royal Holloway, University of London’s Centre for Research into Sustainability, says that the terminology of CSR is both inaccurate (as small firms are unlikely to be corporations) and off-putting jargon for SMEs.

“Also since CSR practice is often associated with reporting, SMEs don’t stand a chance. They are unlikely to have external financial reports, let alone the time resources or need to produce a glossy CSR report,” says Spence.

So first, we need to get the labels and definitions right. The IDEARSE centre, for example, describes CSR as “a permanent and continuous commitment, voluntarily adopted by the business, to respond to the economic, social and environmental impacts of its activities, and to guarantee the sustainable and human development to all its stakeholders.” No doubt, it helps that CSR in Spanish (responsabilidad social empresarial or RSE) translates more accurately as socially responsible ‘enterprise’.

Explicit or implicit CSR?

The second issue – whether CSR is too costly – is a real concern, but once again, it depends what we mean by CSR. Work by CSR academics Dirk Matten and Jeremy Moon distinguish between explicit and implicit CSR. Explicit CSR refers to many of the formalised practices we associate with large corporates, such as CSR codes, standards, managers, systems, reports and audits. These are resource intensive and mostly not feasible for SMEs …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/09/article_mexico_wvisser.pdf”]Pdf[/button] Practising Social Responsibility Without the CSR Label (article)

Related websites

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2012) Practising Social Responsibility Without the CSR Label, The Guardian, 12 September 2012.

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Water Footprints

Water Footprints:

Lessons from Kenya’s floriculture sector

Article by Wayne Visser

An International Sustainable Business column for The Guardian

There are flowers to fit every occasion. But if you are celebrating World Water Week (26-31 August), you might want to think twice. A single rose – grown in Kenya, as many of the world’s cut flowers are – takes around 10 litres of water to produce, with the so-called water footprint, or virtual water export, of Kenya’s floriculture industry having more than doubled over the past 15 years, mostly to supply the Netherlands (69%), the UK (18%) and Germany (7%).

This notion of virtual water – the water embedded in the things that we trade – is gaining visibility as awareness of our global water crisis increases. I remember first getting to grips with the idea a few years ago when I interviewed Fred Pearce, author of When the Rivers Run Dry, for the University of Cambridge Top 50 Sustainability Books project. According to his calculations, to get us through the day, it takes about a hundred times our own weight in water.

Of course, water footprints are not the only impacts we find in our global supply chains. There are issues of labour rights, climate change, transparent governance, biodiversity loss and economic development, to mention but a few. The challenge is to manage and minimise the negative impacts. This is where I believe the example of Kenya’s cut-flower industry can help us to tease out some hard-won lessons, starting with the story behind the Horticultural Ethical Business Initiative (HEBI).

The seeds of the HEBI process were sown in November 1999 when local civil society organisations mounted a successful campaign against workers’ rights violations in Cirio Delmonte, one of Kenya’s largest pineapple growers. The success of this campaign raised concerns in the flower industry, prompting stakeholders to develop the Kenya Standard on Social Accountability and a Voluntary Private Initiative to oversee its implementation.

However, the real impetus for HEBI came from the pressure exerted by transnational alliances of NGOs and consumer groups. The Kenya Women Workers Organisation (KEWWO) was funded by the UK-based Women Working Worldwide (WWW) to gather evidence of the Ethical Trade Initiative Base Code violations. Their report catalogued various unacceptable conditions, from pesticide poisoning to sexual harassment and rape, and spurred a campaign dubbed Produce Safely or Quit. At the same time, the Kenya Human Rights Commission issued a three month ultimatum to flower producers to improve working conditions, failing which they would go international in their campaign.

When the Ethical Trading Initiative (ETI) was alerted to these serious labour rights violations in 2002, several of their corporate and NGO members visited Kenyan flower producers. In fear of losing their most significant market, Kenyan stakeholders came together for the first time to lay the groundwork for the formation of HEBI. What I find particular interesting is that the Horticultural Ethical Business Initiative (HEBI) did not arise from a vacuum of voluntary codes. On the contrary, there were already seven different international ethical codes being applied. However, they seemed to lack effectiveness and credibility …

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[button size=”small” color=”blue” style=”download” new_window=”http://www.waynevisser.com/wp-content/uploads/2012/08/article_kenya_wvisser.pdf”]Pdf[/button] Water Footprints (article)

Related websites

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2012) Water Footprints: Lessons from Kenya’s Floriculture Sector, The Guardian, 20 August 2012.

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Future Trends in CSR

Future Trends in CSR:

The Next 10 Years

Article by Wayne Visser

Looking to the future, what is needed – and what is just starting to emerge – is a new approach to CSR, which I call Systemic CSR, or CSR 2.0. This is a purpose-driven, principle-based approach, in which business seeks to identify and tackle the root causes of our present unsustainability and irresponsibility, typically through innovating business models, revolutionizing their processes, products and services and lobbying for progressive national and international policies. I have identified 10 trends:

Trend 1 – In the future, we will see most large, international companies having moved through the first four types or stages of CSR (defensive, charitable, promotional and strategic) and practicing, to varying degrees, transformative CSR, or CSR 2.0.

Trend 2 – In the future, reliance on CSR codes, standards and guidelines like the UN Global Compact, ISO 14001, SA 8000, etc., will be seen as a necessary but insufficient way to practice CSR. Instead, companies will be judged on how innovative they are in using their products and processes to tackle social and environmental problems.

Trend 3 – In the future, self-selecting ‘ethical consumers’ will become less relevant as a force for change. Companies – strongly encouraged by government policies and incentives – will scale up their choice-editing, i.e. ceasing to offer ‘less ethical’ product ranges, thus allowing guilt-free shopping.

Trend 4 – In the future, cross-sector partnerships will be at the heart of all CSR approaches. These will increasingly be defined by business bringing its core competencies and skills (rather than just its financial resources) to the party, as Wal-Mart did with its logistics capability in helping to distribute aid during Hurricane Katrina.

Trend 5 – In the future, companies practicing CSR 2.0 will be expected to comply with global best practice principles, such as those in the UN Global Compact or the Ruggie Human Rights Framework, but simultaneously demonstrate sensitivity to local issues and priorities. An example is mining and metals giant BHP Billiton, which have strong climate change policies globally, as well as malaria prevention programmes in Southern Africa.

Trend 6 – In the future, progressive companies will be required to demonstrate full life cycle management of their products, from cradle-to-cradle. We will see most large companies committing to the goal of zero-waste, carbon-neutral and water-neutral production, with mandated take-back schemes for most products.

Trend 7 – In the future, much like the Generally Accepted Accounting Practices (GAAP), some form of Generally Accepted Sustainability Practices (GASP) will be agreed, including consensus principles, methods, approaches and rules for measuring and disclosing CSR. Furthermore, a set of credible CSR rating agencies will have emerged.

Trend 8 – In the future, many of today’s CSR practices will be mandatory requirements. However, CSR will remain a voluntary practice – an innovation and differentiation frontier – for those companies that are either willing and able, or pushed and prodded through non-governmental means, to go ahead of the legislation to improve quality of life around the world.

Trend 9 – In the future, corporate transparency will take form of publicly available sets of mandatory disclosed social, environmental and governance data – available down to a product life cycle impact level – as well as Web 2.0 collaborative CSR feedback platforms, WikiLeaks type whistleblowing sites and product rating applications (like the GoodGuide iPhone app).

Trend 10 – In the future, CSR will have diversified back into its specialist disciplines and functions, leaving little or no CSR departments behind, yet having more specialists in particular areas (climate, biodiversity, human rights, community involvement, etc.), and more employees with knowledge of how to integrate CSR issues into their functional areas (HR, marketing, finance, etc.)

Collectively, these trends reflect a scenario …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/12/inspiration_csr_trends_wvisser.pdf”]Pdf[/button] Future Trends in CSR (article)

Related pages

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2012) Future Trends in CSR: The Next 10 Years, CSR International Inspiration Series, No. 11.

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The Future of CSOs

The Future of CSOs:

The Many Faces of CSR Activism

Article by Wayne Visser

The third principle of Transformative CSR, or CSR 2.0, is responsiveness. Some of the most important players in the responsiveness game – especially through cross-sector partnerships – are civil society organisations (CSOs, which I prefer rather than the term NGOs).

Reflecting on how this sector is changing in the face of increased calls for responsiveness, I have distinguished 10 ‘Paths to the Future’ for CSR activism. I believe that CSOs acting in the CSR space will increasingly be:

  1. Platforms for transparency – Undertaking investigative exposes & hosting disclosure forums;
  2. Brokers of volunteerism – Providing project opportunities for employee volunteers;
  3. Champions of CSR – Raising awareness and increasing public pressure for CSR;
  4. Advisors of business – Offering consulting services to business on responsibility;
  5. Agents of government – Working with or on behalf of regulatory authorities;
  6. Reformers of policy – Pressuring for government policy reforms to incentivise CSR;
  7. Makers of standards – Developing voluntary standards & inviting business compliance;
  8. Channels for taxes          Receiving and deploying specially earmarked tax revenues;
  9. Partners in solutions – Partnering with business/government to tackle specific issues; and
  10. Catalysts for creativity – Creating social enterprises & supporting social entrepreneurs.

Let’s explore these ‘future faces’ of CSR activism in a little more detail below, drawing on examples from around the world of CSOs emerging roles …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/04/inspiration_future_csos_wvisser.pdf”]Pdf[/button] The Future of CSOs (article)

Related pages

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2011) The Future of CSOs: The Many Faces of CSR Activism, CSR International Inspiration Series, No. 10

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The DNA Model of CSR 2.0

The DNA Model of CSR 2.0:

Value Creation, Good Governance, Societal Contribution and Ecological Integrity

Article by Wayne Visser

I believe that CSR 2.0 – or Transformative CSR (I also sometimes call it Systemic CSR, Radical CSR or Holistic CSR, so use whichever you prefer) – represents a new holistic model of CSR. The essence of the CSR 2.0 DNA model are the four DNA Responsibility Bases, which are like the four nitrogenous bases of biological DNA (adenine, cytosine, guanine, and thymine), sometimes abbreviated to the four-letters GCTA (which was the inspiration for the 1997 science fiction film GATTACA). In the case of CSR 2.0, the DNA Responsibility Bases:

  • Value creation;
  • Good governance;
  • Societal contribution; and
  • Environmental integrity

Hence, if we look at Value Creation …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/04/inspiration_dna_model_csr_wvisser.pdf”]Pdf[/button] The DNA Model of CSR 2.0 (article)

Related websites

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

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Visser, W. (2011) The DNA Model of CSR 2.0: Value Creation, Good Governance, Societal Contribution and Ecological Integrity, CSR International Inspiration Series, No. 9.

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The Ages and Stages of CSR

The Ages and Stages of CSR:

From Defensive to Transformative Corporate Sustainability & Responsibility

Article by Wayne Visser

I have found it useful to view the evolution of business responsibility in terms of five overlapping economic periods:

  1. The Age of Greed;
  2. The Age of Philanthropy;
  3. The Age of Marketing;
  4. The Age of Management; and
  5. The Age of Responsibility

Each of which typically manifests a different stage of CSR, namely:

  1. Defensive CSR;
  2. Charitable CSR;
  3. Promotional CSR;
  4. Strategic CSR; and
  5. Transformative CSR.

My contention is that companies tend to move through these ages and stages (although they may have activities in several ages and stages at once), and that we should be encouraging business to make the transition to Transformative CSR in the dawning Age of Responsibility. If companies remain stuck in any of the first four stages, I don’t believe we will turn the tide on the environmental, social and ethical crises that we face. Simply put, CSR will continue to fail  …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/04/inspiration_ages_stages_csr_wvisser.pdf”]Pdf[/button] The Ages & Stages of CSR (article)

Related websites

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

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Visser, W. (2010) The Ages and Stages of CSR: From Defensive to Systemic Corporate Sustainability and Responsibility, CSR International Inspiration Series, No. 8.

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The Rise and Fall of CSR

The Rise and Fall of CSR:

Three Curses of CSR 1.0 and Five Principles of CSR 2.0

Article by Wayne Visser

Despite its seemingly impressive steady march of progress in the past decades, CSR has failed. Furthermore, we are witnessing the demise of CSR, which will continue until its natural death, unless it is reborn and rejuvenated.

CSR has undoubtedly had many positive impacts, for communities and the environment. Yet, its success or failure should be judged in the context of the total impacts of business on society and the planet. Viewed this way, on virtually every measure of social, ecological and ethical performance we have available, the negative impacts of business have been an unmitigated disaster, which CSR has completely failed to avert or even substantially moderate.

Why has CSR failed so spectacularly to address the very issues it claims to be most concerned about? This comes down to three factors – the Triple Curse of Modern CSR, if you like:

  1. Incremental CSR
  2. Peripheral CSR
  3. Uneconomic CSR

To get beyond these curses, we need a revolution that will, if successful, change the way we talk about and practice CSR and, ultimately, the way we do business. I call this new approach, CSR 2.0, where CSR stands for Corporate Sustainability and Responsibility. There are five principles that make up the DNA of CSR 2.0:

  1. Creativity
  2. Scalability
  3. Responsiveness
  4. Glocality
  5. Circularity

Making a positive contribution to society is the essence of CSR 2.0  …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/04/inspiration_rise_fall_csr_wvisser.pdf”]Pdf[/button] The Rise and Fall of CSR (article)

Related websites

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Page[/button] The Age of Responsibility (book)

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Visser, W. (2010) The Rise and Fall of CSR: The Three Curses of CSR 1.0 and the Five Principles of CSR 2.0, CSR International Inspiration Series, No. 7.

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The Future of CSR Codes

The Future of CSR Codes and Standards

Article by Wayne Visser

In this piece, I look at the lessons we have learned so far (both positive and negative) and what part CSR codes and standards play in an emerging New Governance model. Let me start with what I think we’ve learned about CSR codes and standards over the past 30 years or so.

  • Codes can be a useful activist tool
  • Codes can help to generate consensus
  • Codes can embed incremental improvement
  • Codes can change industry sectors

There are also downsides to CSR codes and standards, which we have come to realise.

  • Codes create auditing and reporting fatigue
  • Codes create confusion in the market
  • Codes can be a mask for irresponsibility
  • Codes are no substitute for regulation

With the usual caveats that the future is unpredictable, it does seem to me that there are several trends in CSR codes and standardsthat indicate the direction of their evolution.

  • Principle-based codes will consolidate
  • Process-based codes will struggle
  • Performance-based codes will strengthen
  • Sector-, product-, issue- and geography-based codes will expand

My fundamental belief is that CSR codes and standards will not disappear, because they form part of an emerging new form of governance, based on a multi-stakeholder approach …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/04/inspiration_csr_codes_wvisser.pdf”]Pdf[/button] The Future of CSR Codes (article)

Related websites

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/the-a-to-z-of-corporate-social-responsibility”]Page[/button] The A to Z of Corporate Social Responsibility (book)

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Visser, W. (2009) The Future of CSR Codes and Standards, CSR International Inspiration Series, No. 6.

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