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The Long Tail of CSR

The Long Tail of CSR:

Achieving Scalability in Corporate Sustainability and Responsibility

Article by Wayne Visser

I recently read The Long Tail, by Chris Anderson and it started me thinking: What is the Long Tail of CSR? The Long Tail – named after the extended tail of a statistical distribution curve – is the idea that selling less to more people is big business. It’s the business model that has spawned the most successful companies of the Web 2.0 age. The Long Tail questions the conventional wisdom that says success is about generating ‘blockbusters’ and ‘superstars’ – those rare few products and services that become runaway bestsellers.

Anderson sums up his message by saying that:

  1. the tail of available variety is longer than we think;
  2. it’s now within reach economically; and
  3. all those niches, when aggregated, can make up a significant market.

He also notes that this Long Tail revolution has been made possible by the digital age, which has dramatically reduced the costs of customised production and niche distribution.

There are three enablers of successful long tail businesses, according to Anderson:

  1. democratising the tools of production (e.g. digi-cams, content editing software, blogging tools);
  2. democratising the tools of distribution (e.g. Amazon, eBay, iTunes, Netflix); and
  3. connecting supply and demand (e.g. Google, blogs, Rotten Tomatoes).

So how might this apply to CSR? To me, the Long Tail of CSR is all about extending the reach of CSR, and improving its ability to satisfy specific social and environmental needs. Let’s use Anderson’s enablers as a framework for thinking about this …

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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)

Cite this article

Visser, W. (2008) The Long Tail of CSR: Achieving Scalability in Corporate Sustainability and Responsibility, CSR International Inspiration Series, No. 5.

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CSR Myths

CSR Myths:

Popular Misconceptions on Corporate Sustainability and Responsibility

Article by Wayne Visser

In an article published by Ethical Corporation, I set out to explode 7 myths about corporate sustainability and responsibility (CSR). Most of these myths exist as a result of the feeding frenzy that inevitably occurs every time the media has hunted down and sunk its teeth into one or other juicy story of corporate exploitation. The myths are also sustained, however, by whole legions of largely well-intentioned people who have vested interests in promoting their particular brand of the truth about CSR. The 7 myths are:

  1. Economic growth is not compatible with CSR
  2. Multinationals are the biggest CSR sinners
  3. Multinationals are the biggest CSR saviours
  4. Developing countries are anti-multinational
  5. CSR is the same the world over
  6. Developed countries lead on CSR
  7. Codes can ensure CSR …

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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_myths_wvisser.pdf”]Pdf[/button] CSR Myths (article)

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[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/business-frontiers”]Page[/button] Business Frontiers (book)

Cite this article

Visser, W. (2008) CSR Drivers: The Forces Shaping Corporate Sustainability and Responsibility, CSR International Inspiration Series, No. 3.

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CSR Drivers

CSR Drivers:

The Forces Shaping Corporate Sustainability and Responsibility

Article by Wayne Visser

In doing research for my chapter CSR in Developing Countries, published in The Oxford Handbook of CSR, I identified 10 drivers for Corporate Sustainability and Responsibility (CSR), which I summarise below.

National (or internal) drivers refer to pressures from within the country and include:

  • Cultural tradition
  • Political reform
  • Socio-economic priorities
  • Governance gaps
  • Crisis response
  • Market access

International (or external) drivers tend to have a global origin and include:

  • International standardization
  • Investment incentives
  • Stakeholder activism
  • Supply chain …

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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_drivers_wvisser.pdf”]Pdf[/button] CSR Drivers (article)

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[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=”tick” new_window=”false” link=”http://www.waynevisser.com/books/the-world-guide-to-csr”]Link[/button] The World Guide to CSR (book)

Cite this article

Visser, W. (2008) CSR Drivers: The Forces Shaping Corporate Sustainability and Responsibility, CSR International Inspiration Series, No. 3.

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CSR Change Agents

CSR Change Agents:

Experts, Facilitators, Catalysts and Activists

Article by Wayne Visser

In research conducted for my PhD on CSR, I identified four types of Corporate Sustainability and Responsibility (CSR) change agents: Experts, Facilitators, Catalysts and Activists.

Each type represents a constellation of attributes. It is expected that any individual CSR change agent will embody elements of all of these types, but that the relative influence of each type will differ per individual. Hence, the dominant type can be thought of as a centre of gravity for each CSR change agent’s work, i.e. the mode of operating in which they feel most comfortable, fulfilled or satisfied …

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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=”tick” new_window=”false” link=”http://www.waynevisser.com/books/the-age-of-responsibility”]Link[/button] The Age of Responsibility (book)

Cite this article

Visser, W. (2008) CSR Change Agents: Experts, Facilitators, Catalysts and Activists, CSR International Inspiration Series, No. 2.

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CSR 2.0: The New Era

CSR 2.0:

The New Era of Corporate Sustainability and Responsibility

Article by Wayne Visser

The field of what is variously known as CSR, sustainability, corporate citizenship and business ethics is ushering in a new era in the relationship between business and society.

Simply put, we are shifting from the old concept of CSR – the classic notion of “Corporate Social Responsibility”, which I call CSR 1.0 – to a new, integrated conception – CSR 2.0, which can be more accurately labelled “Corporate Sustainability and Responsibility”.

The allusion to Web 1.0 and Web 2.0 is no coincidence. The transformation of the internet through the emergence of social media networks, user-generated content and open source approaches is a fitting metaphor for the changes business is experiencing as it begins to redefine its role in society. Let’s look at some of the similarities …

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[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)

Cite this article

Visser, W. (2008) CSR 2.0: The New Era of Corporate Sustainability and Responsibility, CSR International Inspiration Series, No. 1.

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Corporate Social Responsibility

Corporate Social Responsibility:

An Agenda for the Future

Article by Wayne Visser

This article deals with the crucial debate that is beginning to emerge about corporate social responsibility (CSR), which acknowledges that the sophistication of stakeholder challenges and corporate responses has gone up a gear, but questions whether CSR itself is too little too late, or even a red herring.

Developing the Agenda

Geographically, there has been a recent emphasis on the challenges of corporate citizenship in the developing world, including issues of the Millennium Development Goals (MDGs) and the “Bottom of the Pyramid” concept about servicing lower income markets, and CSR in the Pacific Rim, the Middle East, Eastern Europe and Africa. We think this focus accurately portrays the current shift in CSR concerns towards the global South, where despite the scale and urgency of development needs, determining the best way for business to respond to poverty remains extremely complex.

Although the Asian tsunami disaster in December 2004 focused attention on humanitarian relief efforts, which many companies contributed to, it is also encouraging to see corporate leaders engaged in a wider discussion about how normal business influences the poor and disadvantaged around the world and what business models could be more supportive of development. However, our analysis is that current debates about the opportunities for corporate contributions to the MDGs often lack a full understanding of processes of “development”.

Much of the profitable business with lower-income markets involves products such as mobile phones, not the provision of basic nutrition, sanitation, education and shelter, so the current expansion of profitable business in the global South does not necessarily imply poverty reduction. In addition, the type of development that is promoted by marketing consumer products to the poor can be questioned, and claims about empowering people by providing means for them to consume cannot be taken at face value. The environmental impacts of changing consumption patterns also need to be looked at, without assuming that such problems will be solved just through technical and financial advancement. And we need to assess, if more foreign companies do come to serve lower income markets, might they not displace local companies and increase the resource drain from local economies?

Exploring Relationships

How large corporations might bring their financial, technical and management resources to help local entrepreneurs improve and scale their businesses, and avoid exploitative local middlemen, is important to explore and will become a significant part of the corporate responsibility agenda. However, exploitative North-South supply chains, tax avoidance, and anti-competitive practices are fairly typical of international corporations, undermining their economic contribution to development. These economic issues have been overlooked by mainstream work on corporate responsibility, and we suggest such economic issues will become more central in future.

From an institutional perspective, various relationships in the CSR debate have been critically examined, especially the status and acceptability of partnerships between business and NGOs on the one hand, and business and the UN on the other. This examination reflects a sharp rise in the demand for organisations to demonstrate their accountability and transparency, not only business, but NGOs and intergovernmental organisations as well. The ethics of institutional engagement is …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/07/article_lifeworth_review_wvisser.pdf”]Pdf[/button] Corporate Social Responsibility (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/business-frontiers”]Page[/button] Business Frontiers (book)

Cite this article

Adapted from: Visser, W. & Bendell, J. (2005) Introduction. Lifeworth Annual Review of Corporate Responsibility.

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Corporate Citizenship

Corporate Citizenship:

Is South Africa World Class?

Article by Wayne Visser

At the 2003 World Economic Forum, a global CEO survey on corporate citizenship was launched, representing companies with headquarters in 16 countries (including South Africa) and covering 18 industries. The report of findings identified ten key messages for engaging successfully with the corporate citizenship agenda. In this article, I use these ten messages as a framework for questioning South Africa’s progress in the corporate citizenship field. I also subjectively score South Africa on each issue, based on their relative global performance.

The Power of Personal Leadership

The global CEO survey highlighted the important role of the chief executive as a champion of corporate values and a consensus builder on issues of corporate citizenship. Who are South Africa’s corporate citizenship executive champions? Who has taken it upon themselves to be an active campaigner for business’ contribution to society? South Africa certainly had such leaders in the past. For example, Pick ‘n Pay Chairman, Raymond Ackerman, was one of the 50 global executives that formed the Business Council for Sustainable Development and issued its report entitled Changing Course: A Global Business Perspective on Development and the Environment to the 1992 Earth Summit.

But who has taken over the mantle? There certainly seems to be several contenders from the Anglo American stable: Perhaps someone like Michael Spicer, former Executive Director: Corporate Affairs and Executive Vice President of Anglo American plc, and now Chief Executive of the South Africa Foundation? He has taken high profile positions on corporate citizenship issues and seems to embody a heartfelt commitment. Or the tireless efforts of Chairman of Anglo’s Chairman’s Fund, Clem Sunter, who has championed both the HIV/Aids and sustainable development causes? Or do we look to Anglo’s Chairman, Sir Mark Moody Stuart, who managed Shell’s difficult transition towards embracing sustainability?

Who are the others? South Africa needs business leaders who are vocal champions for corporate citizenship. I am not referring to CEOs who simply embrace the rhetoric in their annual reports, but to individuals who are personally committed to the cause of social upliftment and ecological protection – leaders who lead the corporate citizenship movement from the front, with passion. We all need something to believe in, and our corporate leaders are in the unique position of being able to create a vision of how we can make a difference in South Africa. Who will stand up and be counted?

My score for South Africa: 5/10

Strength in Collective Action

The global CEO survey stresses that although personal leadership matters, there is also strength in collective leadership, especially when it comes to addressing public policy issues, industry-wide concerns, national development challenges, or global issues that are beyond the remit or capacity of any one company, but vital to long term commercial success. What is South Africa’s track record of collective action? This seems to me to be one of the areas in which South Africa has excelled, and may be regarded as truly world class (Fourie & Eloff 2005) …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/07/article_citizenship_sa_wvisser.pdf”]Pdf[/button] Corporate Citizenship (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/corporate-citizenship-in-africa”]Page[/button] Corporate Citizenship in Africa (book)

Cite this article

Visser, W. (2005) Corporate Citizenship: Is South Africa World Class? The Corporate Citizen, Trialogue: Johannesburg.

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Revisiting Carroll’s CSR Pyramid

Revisiting Carroll’s CSR Pyramid:

An African Perspective

Article by Wayne Visser

This article has two primary objectives: 1) To use Archie Carroll’s Corporate Social Responsibility (CSR) Pyramid to illustrate the nature of CSR in Africa; and 2) To use the context of Africa to demonstrate the limitations of Carroll’s CSR Pyramid as a framework for understanding CSR. Anglo American is used as a case study to illustrate the debate.

The African Context

The debate over Africa’s future has taken centre stage recently, with the publication of Our Common Interest, the report of the UK’s Commission for Africa. The report calls for improved governance and capacity building, the pursuit of peace and security, investment in people, economic growth and poverty reduction, and increased and fairer trade. It is not hard to see that business has a key role to play in this transformation process, with much of its contribution capable of being to be framed in terms of CSR.

Despite generally negative press, there has been significant progress on the continent over the past decade. Fifteen countries, including Uganda, Ethiopia and Burkina Faso, have been growing on average more than 5% per year since the mid-1990s. And foreign direct investment (FDI) rose to $8.5 billion in 2004, up from $7.8 billion the previous year. At the same time, Africa’s new generation of leaders, through initiatives like the New Partnership for Africa’s Development (NEPAD), the African Union and the East African Community, are taking responsibility for development.

Nevertheless, Africa remains a marginal region in global terms: With 12% of the world’s population (around 750 million people) in 53 countries, Africa accounts for less than 2% of global gross domestic product (GDP) and FDI, and less than 10% of FDI to all developing countries. Of the 81 poorest countries prioritised by the International Development Association, almost half are in Africa. And even within Africa, there is highly skewed development, with the largest ten economies accounting for 75% of the continent’s GDP.

The extent of the challenge for CSR in Africa becomes even clearer when we are reminded of the scale of social needs that still exist, despite decades of aid and development effort: Life expectancy in Africa is still only 50 years on average (and as low as 38 years in some countries), Gross National Income per capita averages $650 (and drops as low as $90 in some countries) and the adult literacy rate is less than 20% in some countries. At the current pace of development, Sub-Saharan Africa would not reach the Millennium Development Goals for poverty reduction until 2147 and for child mortality until 2165; and as for HIV/Aids and hunger, trends in the region are heading up, not down.

The Role of Business

The track record of big business in Africa is mixed at best. There is certainly no shortage of examples of corporate complicity in political corruption, environmental destruction, labour exploitation and social disruption, stretching back more than 100 years. Equally, however, there is …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/07/article_africa_pyramid_wvisser.pdf”]Pdf[/button] Revisiting Carroll’s CSR Pyramid (article)

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[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/corporate-citizenship-in-africa”]Page[/button] Corporate Citizenship in Africa (book)

Cite this article

Adapted from: Visser, W. (2005) Revisiting Carroll’s CSR Pyramid: An African Perspective. In Corporate Citizenship in a Development Perspective, edited by Esben Rahbek Pedersen & Mahad Huniche, Copenhagen: Copenhagen Business School Press.

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Sustainable Business Futures

Sustainable Business Futures:

Setting the Global Agenda for Corporate Responsibility and ‘Ubuntu’ Capitalism

Article by Wayne Visser

Within the space of a decade, South African business has moved from being pariahs of the world to leaders in the global corporate responsibility movement. This section highlights the significant progress which has been made by the private sector, as well as the potential for South Africa to continue to shape a new agenda for capitalism across seven key dimensions.

Legal Reform

Building on the ANC’s Reconstruction and Development agenda (which in turn was based on the Freedom Charter), human rights, sustainable development and corporate transparency became enshrined in the 1996 constitution and embedded in what is widely regarded as some of the most progressive legislation in socio-economic and environmental development in the world. For example, the environmental rights now enshrined in the Bill of Rights are hailed worldwide.

While many countries still rely on outdated legislation, the wave of reform over the past decade in South Africa has resulted in brand new statutes on ecological responsibility (e.g. the National Environmental Management Act), occupational health and safety (e.g. the Mine Health and Safety Act), investment in human capital (e.g. the Employment Equity Act), governance (e.g. the Promotion of Access to Information Act), ethics (e.g. the Prevention and Combating of Corrupt Activities Act) and socio-economic development (e.g. the Broad-based Black Economic Empowerment Act).

By inextricably linking social, economic and ecological development in its legal framework, South Africa is showing the world that the old conflicts between environmental conservation, social development and economic growth can be resolved by adopting a new model of integrated sustainable development. The foundation for improved quality of life has therefore been laid and in the next 10 years in South Africa we can expect to see:

  • Civil society demonstrating increasingly healthy activism to bring about environmental and social justice;
  • Government continuing to enact and refine progressive legislation and to enhance its enforcement capacity; and
  • Business becoming the primary vehicle for ensuring that integrated sustainable development is delivered on the ground.

Corporate Governance

When the Institute of Directors in Southern Africa (IoD) published the King Report on Corporate Governance in South Africa in 1992, it was the first of all the governance codes in the world to stress the importance of wider stakeholder interests beyond narrow shareholder demands. This global thought leadership was once again demonstrated when, in its revised King Report in 2002 (King II), the IoD included a whole chapter on sustainability reporting, including extensive referencing to two leading-edge international standards, the Global Reporting Initiative’s Sustainability Reporting Guidelines, and Accountability’s AA1000 framework.

The King II requirement that “every company should report at least annually on the nature and extent of its social, transformation, ethical, safety, health and environmental management policies and practices” has already paid dividends. Surveys by KPMG show that 85% South Africa’s top 100 listed companies in 2003 were already reporting on sustainability-related issues, compared with only 48% in 1997. This remarkable progress is assisted by the fact that the Johannesburg Securities Exchange has made compliance with King II a listing requirement.

In King II, therefore, we see that South Africa’s progressive legislation is backed up by a voluntary …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/07/article_ubuntu_capitalism_wvisser.pdf”]Pdf[/button] Sustainable Business Futures (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/corporate-citizenship-in-africa”]Page[/button] Business Frontiers (book)

Cite this article

Visser, W. (2004) Sustainable Business Futures: Setting the Global Agenda for Corporate Responsibility and ‘Ubuntu’ Capitalism. In South Africa 2014: The Story of Our Future, edited by Bret Bowes, Guy Lundy & Steuart Pennington, SA Good News: Johannesburg.

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Corporate Sustainability in South Africa

Corporate Sustainability in South Africa:

A Ten Year Review

Article by Wayne Visser

What have ten years of democracy meant for the corporate sustainability agenda? This section looks back at what have been the main catalysts for change since 1994, the trends where substantial progress has been made and the key areas where companies still lag international best practice.

Catalysts for Change

Legislative Reform

The wave of legislative reform initiated by the post-apartheid government fundamentally changed the landscape of corporate sustainability. Between 1994 and 2004, approximately 60 entirely new or substantively revised statutes were introduced which had direct implications for corporate management of safety, health, environment, socio-economic development, labour, governance and ethics issues. Some of these, such as employment equity and black economic empowerment, reflected the aspirations of the ANC’s pre-election Reconstruction and Development Programme (RDP) agenda, while others, like sustainable development and corporate governance, strongly echoed international trends.

Globalisation

At the same time, South Africa’s re-entry onto the international staged forced many companies to raise their sustainability standards to meet global market expectations. As a direct result, there was a substantial increase in environmental management certification and sustainability reporting, as companies like BHP Billiton, Anglo American and Old Mutual, which became Fortune 500 companies, and SABMiller, Lonmin and Dimension Data, which became FTSE 250 companies, quickly upped their game to conform to the corporate governance requirements of the New York and London stock exchanges and the corporate sustainability requirements of various social and environmental investment indexes.

Stakeholder Activism

Newly empowered by the law and supported by international NGOs, South African civil society also became visibly more active in challenging companies on the basis of the public’s social and environmental constitutional rights. Cases in which companies became the target of such stakeholder activism included the likes of Thor Chemicals, AECI, Caltex, Iscor, WasteTech-Enviroserv, Sasol Mining, Cape plc, Gencor, Anglo American, De Beers and GlaxoSmithKline. Not surprisingly, there has been a parallel trend among companies of improved public transparency, increased stakeholder involvement and active pursuit of public-private partnerships.

Codification

Given these pressures to demonstrate their corporate sustainability, South African companies have followed the international trend of codification, i.e. adopting standards and guidelines as a form of voluntary self-regulation on social, ethical and environmental issues. The codes which have had the most impact include ISO 14001 (for environmental management), the King Code (for corporate governance) and the Global Reporting Initiative (for sustainability reporting), while the influence of other frameworks like those on social accountability (e.g. AA 1000, SA 8000) and general corporate citizenship (e.g. the Global Compact, the OECD Guidelines for Multinationals) have been more limited.

Trends

Over the last decade, corporate sustainability has steadily broadened from an initial focus on philanthropy and environmental management towards including health, safety, labour, community and broader socio-economic issues. By the time Trialogue surveyed the top companies in 2004, 100% regarded corporate citizenship (reflecting the contemporary broad definition of corporate sustainability) as a priority, with 52% giving absolute priority status and 32% high priority.

Corporate Philanthropy

Trialogue estimates that the total expenditure on corporate social investment (CSI) in South Africa  …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/07/article_sustainability_sa2004_wvisser.pdf”]Pdf[/button] Corporate Sustainability in South Africa (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/corporate-citizenship-in-africa”]Page[/button] Corporate Citizenship in Africa (book)

Cite this article

Visser, W. (2004) Corporate Sustainability in South Africa: A Ten Year Review. 2004 KPMG Survey on Integrated Sustainability Reporting in South Africa, KPMG: Johannesburg.

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