Theory U and CSR 2.0

Theory U and CSR 2.0:

Alignment of two conceptual approaches to create profound innovation and transformative change in corporate sustainability and responsibility

Paper by Jeroen A. Van Lawick van Pabst & Wayne Visser

Abstract

Wayne Visser’s CSR 2.0 Model provides a compelling vision of how business can create transformative improvements in society and the environment. Otto Scharmer’s Theory U describes how profound personal and collective change really happens. This paper explores how these two conceptual approaches can be aligned, thus providing insights into how to create the profound innovation and transformative change needed in the realm of corporate sustainability and responsibility.

Key words

Corporate sustainability and responsibility, systemic CSR, transformative CSR, CSR 2.0, Theory U, U-process, leadership, business, adoption, transformative change.

1. The radical and novel nature of CSR 2.0

CSR 2.0, or radical CSR, provides a compelling vision for transforming the role of business in society. Essentially it advocates a paradigm shift in which the purpose of business is redefined: CSR or sustainability-related activities are no longer simply another means towards a narrow, shareholder-focused commercial end. Rather, CSR becomes a purpose in and of itself. It is an end-state in which business’s interactions with society and the earth are inherently sustainable and responsible. Companies only provide products and services that enhance our wellbeing, without sacrificing the environment or human dignity [1]. CSR 2.0 becomes transformative by shifting the organizational perspective from isolation (us versus them, business versus society) to relationship: operations connected to and serving society and the world. The essence of sustainability is about honoring and advancing such relations, among ourselves, within ourselves and with the earth [2]. These three dimensions of interconnectivity in turn address the triple crises of social, spiritual and ecological disintegration [3].

CSR 2.0 is instructive as it helps us to see how organizations typically move through ‘ages and stages’ from greed-centered, philanthropic, marketing and strategic approaches to a more sustainable way of working and living; a journey that eventually leads to a transformative approach to CSR. Boundaries in our thinking become more fluid or diminish and our thinking becomes more inclusive. For instance, we stop thinking about business and CSR as separate categories; the essence of doing business, of innovation and of sustainability merge. In the process, renewed relationships are formed. CSR 2.0 is also innovative, proposing five principles (creativity, scalability, responsiveness, glocality and circularity) as a coherent base for a new model of sustainable and responsible business, in which governance and leadership are integrated with value creation, societal contribution and environmental integrity [1].

CSR 2.0 reflects the most advanced stage of CSR practice,  shifting from a cost-perspective on CSR to perceiving CSR as an opportunity [4]. However, most corporations still operate from the mindset that embracing CSR/sustainability is a market-savvy way to improve reputation and brand, or at least “that it does no harm to financial performance” [4]. Dominance of short-term thinking, shareholder-value and financiers’ power are still deeply ingrained in the corporate and collective way of thinking and doing.

A few exceptions do exist, such as Unilever CEO Paul Polman, who plans to help 1 billion people improve their health and wellbeing, halve the environmental footprint of its products and source 100% of its agricultural raw materials sustainably [5]. Another example is the emerging Economy of  …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/06/paper_theoryu_csr2_wvisser.pdf”]Pdf[/button] Theory U and CSR 2.0 (paper)

Related pages

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/corporate-sustainability-responsibility”]Page[/button] Corporate Sustainability & Responsibility (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1947221″]Link[/button] Social Science Research Network (website)

Cite this article

Van Lawick van Pabst, J.A. & Visser, W. (2012) Theory U and CSR 2.0: Alignment of two conceptual approaches to create profound innovation and transformative change in corporate sustainability and responsibility, SSRN Working Paper Series, 22 February 2012. Published on SSRN at: http://ssrn.com/abstract=2009341

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Changing the World, One Leader at a Time

Changing the World, One Leader at a Time

Blog by Wayne Visser

Part 12 of 13 in the Age of Responsibility Blog Series for CSRwire.

We face a crisis of leadership. Our global challenges loom large and clear, but we seem to lack leaders who can make change happen at a scale and speed that match the size and urgency of the problems we face. In an attempt to understand this leadership impasse, I’ve done some research with the University of Cambridge’s Programme for Sustainability Leadership on how change happens. In this blog, I’ll briefly outline some of our conclusions.

Let’s start with what kind of change we’re talking about. Jim Collins, author of Good to Great, observes that companies that went from being ‘good to great’ did not rely on revolutions, dramatic change programmes or wrenching restructurings. ‘Rather, the process resembled relentlessly pushing a giant flywheel in one direction, turn upon turn, building momentum until a point of breakthrough, and beyond.’

So we’re talking about catalysing and scaling up change. And for this change to be successful, leaders need to foster and entrench new values, culture, incentives, rules and resources. In Accenture and the UN Global Compact’s 2010 survey, 54% of CEOs felt that a cultural tipping point on sustainability is only a decade away—and 80% believe it will occur within 15 years, so perhaps we are nearing a moment of infectious change. Meanwhile, at the organisational level, leaders must catalyse change for sustainability through a suite of actions, including innovation, empowerment, accountability, closed-loop practices and collaboration.

We found that effective sustainability leaders are good at promoting creativity in business models, technology, products and services that address social and environmental challenges. Sustainability leaders also implement structures and processes for good governance, transparency and stakeholder engagement.

Accountability does not have to be all about structures and controls however. Collins believes great leaders foster a culture of discipline, saying ‘When you have disciplined people, you don’t need hierarchy. When you have disciplined thought, you don’t need bureaucracy. When you have disciplined action, you don’t need excessive controls’. According to Jeffrey Immelt, CEO of G.E., ‘Enron and 9/11 marked the end of an era of individual freedom and the beginning of personal responsibility. You lead today by building teams and placing others first. It’s not about you.’

The best sustainability leaders adopt principles of cradle-to-cradle production, internalising externalities and extending these principles to the supply chain. Sustainability leaders also build formal cross-sector partnerships, as well as innovative and inclusive collaborative processes such as social networking (Web 2.0). Betty Sue Flowers, co-author of Presence, poses the challenge as a question, saying, ‘We know a lot about heroic action because that’s in the past of leadership. But how do you have leadership in groups across boundaries, multi-nationally?’

At the people level, leaders catalyse change for sustainability by providing a compelling vision, encouraging long term thinking, making strategic investments and promoting intergenerational equity. Immelt says ‘every leader needs to clearly explain the top three things the organization is working on. If you can’t, then you’re not leading well.’ Ray Anderson, the late CEO of Interface, saw this as a process of inclusion, saying …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/06/blog_change_leader_wvisser.pdf”]Pdf[/button] Changing the World, One Leader at a Time (blog)

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 blog

Visser, W. (2012) Changing the World, One Leader at a Time, Wayne Visser Blog Briefing, 12 January 2012.

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Sustainability Leadership

Sustainability Leadership:

Linking Theory and Practice

Paper by Wayne Visser & Polly Courtice

Abstract

The paper aims to create a clearer understanding of the nature of sustainability leadership and how it can contribute to transformational change. It does this by locating sustainability within the leadership literature, defining the concept of sustainability leadership, and presenting a model of sustainability leadership in practice. The model was tested with a sample of senior business leaders and refined in line with their feedback. The model presents insights on sustainability leadership in three areas: context, individual characteristics, and actions. The model is illustrated using quotes from senior business leaders that are focused on sustainability in their organisations.

Introduction

This paper is based on research conducted by the University of Cambridge Programme for Sustainability Leadership (CPSL), which works with business, government and civil society to build the capacity of leaders, both to meet the needs of their stakeholders and to address critical global challenges. The paper is an attempt to create a clearer understanding of the nature of sustainability leadership and how it can contribute to transformational change.

The Model of Sustainability Leadership that we have developed was corroborated by interviews with the following business leaders, conducted in 2010: Neil Carson, CEO of Johnson Matthey; Ian Cheshire, CEO of Kingfisher; Jeffrey Immelt, CEO of General Electric; Philippe Maso, CEO of AXA; Jan Muehlfeit, Chairman of Microsoft Europe; Truett Tate, Group Executive Director: Wholesale, for Lloyds Banking Group; José Lopez, Executive Vice President: Operations and GLOBE of Nestle; and Sandy Ogg, Chief Human Resources Officer for Unilever. The paper and the model are illustrated by extensive quotations from these interviews.

Definitions and Theories of Leadership

De Vries (2001) reminds us that the Anglo-Saxon etymological root of the words lead, leader and leadership is laed, which means path or road. The verb means to travel. Thus a leader is one who shows fellow travellers the way by walking ahead. He also suggests that leadership – which focuses on the effectiveness of strategy – is different to management – which deals with the efficiency of operations.

Ian Cheshire (2010), CEO of Kingfisher, says “leadership is about getting people to go where they wouldn’t have gone on their own”. Rather more flamboyantly, management guru Tom Peters (1989) suggests leadership is about “discovering the passion, persistence and imagination to get results, to be able to find the Wow factor and to be able to think the weird thoughts necessary to learn and thrive in a disruptive age”.

The element of transformational change in Peters’ definition makes it particularly relevant to sustainability. We have a working definition of leadership, as follows:

“A leader is someone who can craft a vision and inspire people to act collectively to make it happen, responding to whatever changes and challenges arise along the way.”

In addition to definitions, there are also various theories on leadership and while it is not our intention to provide an exhaustive review of these, they do set a frame for sustainability leadership. Hence, we can distinguish three main approaches to understanding leadership …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/06/paper_sustainability_leadership_wvisser.pdf”]Pdf[/button] Sustainability Leadership (paper)

Related pages

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/corporate-sustainability-responsibility”]Page[/button] Corporate Sustainability & Responsibility (book)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://www.cpsl.cam.ac.uk/”]Link[/button] Cambridge Programme for Sustainability Leadership (website)

[button size=”small” color=”blue” style=”tick” new_window=”false” link=”http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1947221″]Link[/button] Social Science Research Network (website)

Cite this article

Visser, W. & Courtice, P. (2011) Sustainability Leadership: Linking Theory and Practice, SSRN Working Paper Series, 21 October 2011. Published on SSRN at: http://ssrn.com/abstract=1947221

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The Nature of CSR Leadership

The Nature of CSR Leadership:

Definitions, Characteristics and Paradoxes

Paper by Wayne Visser

In CSR circles, we see the task of creating a more equitable and sustainable world as both a serious challenge and an enormous opportunity. We are convinced that without bold and effective leadership – at a political, institutional and individual level – we will fail to resolve our most serious social and environmental crises. We will also miss out on the vast business opportunities presented by society’s transition to a sustainable economy.

Over the past few years, in response to these global challenges and opportunities, we have seen more and more evidence of CSR leadership emerging, albeit not nearly enough. In order to better understand what makes these leaders effective catalysts for positive change, I have been conducting research with the University of Cambridge Programme for Sustainability Leadership (CPSL), mainly focused on individual leaders in business. In this short paper, I present some of our initial findings and conclusions.

What is Leadership?

Our first step in understanding CSR leadership was to go back to the basics and ask, What is leadership? There are of course numerous existing definitions (see for example Box 1). However, the definition we developed at CPSL is that a leader:

Someone who can craft a vision and inspire people to act collectively to make it happen, responding to whatever changes and challenges arise along the way.

There are also various theories on leadership and while it is not our intention to provide an exhaustive review of these, they do set a frame for CSR leadership. Hence, we can distinguish three main approaches to understanding leadership:

  1. The Trait/Style school, which focuses on the characteristics or approaches of individual leaders;
  2. The Situational/Context school, which focuses on how the external environment shapes leadership action; and
  3. The Contingency/Interactionist school, which is about the interaction between the individual leader and his/her framing context.

To these can be added the rather more practical tenets of leadership as described by Goffee and Jones (2009):

  1. Leadership is relational.  It is something you do with people, not to people.  Put simply, you cannot be a leader without followers.  Like all relationships, it needs to be monitored and cultivated.
  2. Leadership is non-hierarchical.  Formal authority or a title doesn’t make you a leader.  Leaders can be found at all levels.
  3. Leadership is contextual.  You need to size up and tap into what exists around you and then bring more to the party.

What is CSR Leadership?

These general perspectives on leadership establish the foundation for our more specific enquiry into the nature of CSR leadership. Based on our review of the academic literature, together with CPSL’s experience working with senior leaders over the past 20 years, we distilled the following simple definition: A CSR leader is someone who inspires and supports action towards a better world …

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/05/paper_csr_leadership_wvisser.pdf”]Pdf[/button] The Nature of CSR Leadership (paper)

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.cpsl.cam.ac.uk”]Link[/button] Cambridge Programme for Sustainability Leadership (website)

Cite this article

Visser, W. (2011) The Nature of CSR Leadership: Definitions, Characteristics and Paradoxes, CSR International Paper Series, No. 4.

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Leadership

Leadership

Prose by Wayne Visser

~ Leadership is the ability to inspire individuals to act for the common good ~

What is your definition of a good leader?
Who are the people that persuade you to serve some greater cause, to pursue some larger goal, to believe in some higher ideal?
 
We are all under the influence of leadership – our lives are touched by political leaders, business leaders, community leaders, religious leaders and thought leaders.
But what makes some leaders better than others?
Why do we choose to follow one and not another?
 
It is tempting to think of leadership in terms of charisma.
We can all think of celebrated leaders who exude a certain dynamic quality, whose combination of enthusiasm and confidence is infectious.
It is almost as if we are drawn to these leaders because their positive energy rubs off on us.
There is a halo effect that leaves us feeling uplifted, optimistic, buoyant.
We believe in them because they so clearly believe in themselves.
 
But not all those with charisma are leaders, and not all leaders are charismatic.
Some leaders secure our loyalty because we believe in the cause which they represent, and we can see that they are dedicated to serving that cause.
They don’t need to convince us of their greatness, merely to persuade us of their effectiveness.
We are not looking so much for them to be superstars as fellow believers, people in power who share our passion for making a difference in this life, for putting wrongs right in the world.
We believe in them because they believe in our cause.
 
But what of leaders who are neither charismatic nor missionaries?
There is a quiet, unassuming kind of leadership which is built on earned respect.
Some leaders lead by personal example.
They demonstrate the mastery of their given field or a human quality which we seek to emulate.
We believe in them because they reflect our ideals.
They are our role models.
 
Others enjoy our support because it is clear that they have our best interests at heart.
These are the servant leaders among us, those rare individuals who put aside their personal ambitions in order to facilitate the development of others.
We believe in them because they believe in us.
 
In each case, we are inspired by leadership.
Leaders enable us to achieve together what would have been impossible alone – for leadership is the art of synergy.
 
Leaders allow us to see possibilities that were not on our horizon – for leadership is the gift of visioning.
Leaders encourage us to stretch to reach our potential – for leadership is the practice of empowerment.
Leaders dedicate themselves to fulfilling the needs of their followers – for leadership is the calling of service.
 
We are all leaders and followers in different spheres of our lives.
As parents, we lead our children; as teachers, we lead our students; as managers, we lead our staff; as captains, we lead our teams; as volunteers, we lead our communities.
 
Yet to be good leaders, we must be good followers also.
For leadership is founded on empathy.
And for every situation in which we rise as natural leaders, there is another in which others are better placed to lead.
 
A true leader is humble, for they know that the mantle of leadership is a privilege bestowed on them by their followers.
At the same time, a leader who hides their talent from the world serves no one.
 
Where do your leadership abilities lie?
In what way can you serve and inspire others today?
Don’t be shy.
You know what to do – just take the lead.
 

Wayne Visser © 2005

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[button size=”small” color=”blue” style=”download” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2012/08/prose_waynevisser_leadership.pdf”]Pdf[/button] Leadership (prose)

Related pages

[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.waynevisser.com/books/seize-the-day”]Page[/button] Seize the Day (book)

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