Sustainable by Design?

Sustainable by Design?

Lessons in Circularity From Seventh Generation

Blog by Wayne Visser

Part 11 of 13 in the Age of Responsibility Blog Series for CSRwire.

The CSR 2.0 principle of circularity has roots in life cycle assessment, cleaner production, sustainable consumption and cradle to cradle concepts. In The Age of Responsibility, I explore various well known multinational examples, from Interface’s carpets and Nike’s Considered Design shoes to Coca-Cola’s water neutral initiative and Tesco’s carbon neutral programme. But there are also smaller, more nimble companies, like Seventh Generation, that are able to go much further much faster. What can we learn from these companies that are intentionally sustainable ‘by design’?

Seventh Generation, an American household cleaning products business started more than twenty years ago by Jeffrey Hollender, took inspiration for its name and philosophy from the Iroquois Confederacy (a council of Native American Indian tribes), which included the admonition that ‘in our every deliberation, we must consider the impact of our decisions on the next seven generations’. From the beginning, this meant thinking in a circular way about the impact of their products.

To begin with, this meant swimming upstream. ‘When Seventh Generation told executives at the old Fort Howard Paper Company that we wanted to market bathroom tissue made from unbleached recycled fibre, they laughed,’ recalls Hollender. Despite such early resistance, however, Seventh Generation has remained steadfast in its commitment to ‘becoming the world’s most trusted brand of authentic, safe, and environmentally-responsible products for a healthy home.’ And indeed, it now has an impressive catalogue of cradle to cradle designed products, and has been doing extremely well, showing strong growth even through the recession.

However, ensuring that Seventh Generation lives up to their promise of authenticity is something that requires constant vigilance. For example, in March 2008, the company was ‘exposed’ by the Organic Consumers Association for having detectable levels of the contaminate 1,4-dioxane in their dish liquid. In fact, Seventh Generation’s product was declared the safest of those available and they had been working with suppliers for more than 5 years to remove it. They have since eliminated the contaminate completely, but, as Hollender later declared ‘our effort was simply not good enough. Our real mistake was to exclude consumers and key stakeholders from our ongoing dialogue about dioxane. In short, we flunked the transparency test.’

Of course, the very foundation of transparency is information and the most basic kind is a full list of product ingredients, which, unbelievably, is not required by US law for household products. Consequently, Seventh Generation launched a ‘Show What’s Inside’ initiative, which included an educational website and an online Label Reading Guide, downloadable to shoppers’ cell phones, which helped them interpret labels at the point of purchase, especially any associated risks. As Hollender and Bill Breen report in their book, The Responsibility Revolution (2010), not long after, SC Johnson launched a cloned version called ‘What’s Inside’. ‘That’s just what we had hoped for,’ declared Hollender and Breen. ‘When a $7.5 billion giant like SC Johnson puts its brawn behind ingredient disclosure, it’s likely that the rest of the industry will follow, regardless of what the regulators do.’

Despite its green image, Seventh Generation also  …

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Cite this blog

Visser, W. (2011) Sustainable by Design? Lessons in Circularity from Seventh Generation, Wayne Visser Blog Briefing, 15 December 2011.

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Myths About CSR in Developing Countries

Myths About CSR in Developing Countries

Blog by Wayne Visser

Part 10 of 13 in the Age of Responsibility Blog Series for CSRwire.

Are conceptions and models of CSR developed in the West appropriate for developing countries? I first tackled this question by setting out what I believe to be 7 popular myths about CSR in developing countries. 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.

  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. Developed countries lead on CSR
  6. Codes can ensure CSR in developing countries
  7. CSR is the same the world over

Let’s look at these myths each briefly in turn.

Myth 1 – Economic growth is not compatible with CSR.

What the Index for Sustainable Economic Welfare and Genuine Progress Index show is that GDP growth and quality of life move in parallel until social and environmental costs begin to outweigh economic benefits. According to this ‘threshold hypothesis’ (coined by Chilean barefoot economist, Manfred Max-Neef), most developing countries have yet to reach this divergence threshold. For them, economic growth and the expansion of business activities is still one of the most effective ways to achieve improved social development, while environmental impacts are increasingly being tackled through leapfrog clean technologies.

Myth 2 – Multinationals are the biggest CSR sinners.

On the ground in most countries, multinationals are generally powerful forces for good, through their investment in local economies, creation of jobs, upgrading of infrastructure, provision of basic services and involvement in community development and environmental conservation. There are always exceptions, of course, and these should be named and shamed. But they shouldn’t overshadow the overall positive role of big companies in developing countries. The cumulative social and environmental impacts of smaller companies, which operate below the radar of the media and out of reach of the arm of the law, are typically far larger than that of the high profile multinationals.

Myth 3 – Multinationals are the biggest CSR saviours.

Not only do large companies have limited influence over government policy, but most multinationals, despite large capital investments, provide only a minuscule proportion of the total employment in developing countries. The real potential saviours are small, medium and micro enterprises (SMMEs), including social enterprises, which are labour intensive and better placed to effect local economic development. If the social and environmental impacts of these SMMEs can be improved, the knock on benefits will be proportionally much greater than anything that multinationals could achieve on their own. This is why the work CSR for SMEs by Anuhuac University in Mexico and Forum Empresa in Latin America is so encouraging and important …

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Related websites

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[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. (2011) Myths About CSR in Developing Countries, Wayne Visser Blog Briefing, 8 December 2011.

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The Future Faces of CSR Activism

The Future Faces of CSR Activism

Blog by Wayne Visser

Part 9 of 13 in the Age of Responsibility Blog Series for CSRwire.

The third principle of Transformative CSR, or CSR 2.0, is responsiveness. (We explored creativity and scalability in the last two posts). 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.

Platforms for transparency – The role of CSOs as agitators for, and agents of, greater transparency seems set to continue. For example, in Senegal, Benin, and Guinea, CSO intervention has been critical in the development of a free press. And in India, Karmayog allows citizens to report specific instances of bribery and corruption on a live, public website.

Brokers of volunteerism – As companies increasingly see the benefits of volunteerism (greater job satisfaction, productivity, commitment and loyalty), CSOs are increasingly becoming people-brokers, as sources of projects for employee volunteers. For example, the Voluntary Workcamps Association of Ghana (VOLU) coordinates volunteers to help with the construction of schools, reforestation and AIDS campaigning.

Champions of CSR – While some CSOs remain sceptical about CSR, in many countries they are the main agents for promoting CSR. For example, in Iran, a group of CSOs have joined forces with the UNDP to promote CSR through targeted training for managers under the umbrella of the UN MDGs. And in Senegal, CSR awareness has grown mainly due to a CSO called La Lumière in Kédougou.

Advisors of business – A combination of genuine expertise, valuable perspectives and a crunch on funding means that many CSOs are turning to consultancy, working with and advising companies not only on specific social and environmental issues, but also more generally on sustainability and responsibility. For example, in Hungary, as opposed to the traditional role of watchdog, many CSOs engage in consultancy on CSR.

Agents of government – The phenomena of GONGOs (government organised NGOs), GINGOs (government-inspired NGOs), GRINGOs (government regulated/run and initiated NGOs) and PANGOs (party-affiliated NGOs) are becoming more widespread, no longer just seen in China. Even where governments are not setting up or running the CSOs, they are supporting them as key …

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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 blog

Visser, W. (2011) The Future Faces of CSR Activism, Wayne Visser Blog Briefing, 1 December 2011.

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Could Less Consumer Choice Be A Good Thing?

Could Less Consumer Choice Be A Good Thing?

Blog by Wayne Visser

Part 8 of 13 in the Age of Responsibility Blog Series for CSRwire.

So you buy fairtrade or eco-friendly products, and you think that is a good thing, right? Think again. What if so-called ‘ethical consumers’ are the very ones standing between us a sustainable future?

I’m crazy, right? Maybe, but here is why I say it. By creating a premium-priced, niche market for ‘ethical consumption’, companies have been able to present a responsible front to the world, while leaving the vast majority of their products – which are, by implication, less ethical, less responsible, less sustainable – unquestioned and unchanged. At the same time, a small group of usually well-to-do Western consumers have been able to ease their conscience by feeling that they are making a positive difference.

Now let me be clear. I am not against organic or fairtrade or eco-friendly products per se. That would be insane. Clearly, there are groups of producers – usually poor farmers in the Third World – that have benefited from these initiatives. What I am against is the voluntary nature and premium pricing of sustainable and responsible products. The combination of these two factors has ensured that, with one or two exceptions, these products have never gone to scale. As compared with the total and ongoing impacts of mainstream shopping habits, ethical consumption, laudable as it is, has remained marginal at best and totally insignificant at worst.

The UK’s Sustainable Consumption Roundtable says, ‘we know that there is a considerable gap – the so-called ‘value-action gap – between people’s attitudes, which are often pro-environmental, and their everyday behaviours.’ We know the ‘value-action’ gap is partly explained by price and availability of alternatives, but there’s something else. Context matters as well.

To illustrate this, Timothy Devinney, author of The Myth of the Ethical Consumer, reports on a very interesting experiment he conducted while researching his book. The experiment took place at a coffee shop in central Sydney, Australia, over a period of several weeks. This coffee shop displayed a large and prominent sign indicating the products available, their prices and active specials. To this was added, quite obtrusively, another special, indicating: We have Fair Trade coffee! No extra charge. Just ask.

Here’s what he found. Unprompted, with only the sign to notify them of the availability of the ‘ethical’ alternative, less than 1% of customers bothered to ask for Fair Trade coffee, even though it was free. ‘When they prompted customers with a reminder that the ‘ethical’ alternative was available, the number of customers opting for the Fair Trade option rose to 30%. They then went a step further and took the customer’s privacy away: each time the clerk prompted a customer with the Fair Trade option, we ensured there was someone standing next to that person at the counter. In this situation, the number of ‘ethical consumers’ rose to 70%.

This is a hugely important lesson: If we want to achieve scalability of sustainable and responsible products and services, we cannot leave it to the passive choices of customers. Context is critical, and a little bit of peer pressure goes a long way. But do we really want to resort to public embarrassment to achieve scalability?  …

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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 blog

Visser, W. (2011) Could Less Consumer Choice Be A Good Thing? Wayne Visser Blog Briefing, 24 November 2011.

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The Creative Destruction Revolution

The Creative Destruction Revolution

Blog by Wayne Visser

Part 7 of 13 in the Age of Responsibility Blog Series for CSRwire.

One of the key theories on creativity is creative destruction. The concept is most associated with Joseph Schumpeter, following his 1942 book Capitalism, Socialism and Democracy, in which he described creative destruction as ‘the process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one … [The process] must be seen in its role in the perennial gale of creative destruction; it cannot be understood on the hypothesis that there is a perennial lull.’

The idea, of course, is much older. In Hinduism, the goddess Shiva is simultaneously the creator and destroyer of worlds. In modern times, the German sociologist Werner Sombart described the process in 1913, saying ‘from destruction a new spirit of creation arises; the scarcity of wood and the needs of everyday life … forced the discovery or invention of substitutes for wood, forced the use of coal for heating, forced the invention of coke for the production of iron.’ Even Marx and Engels had a go at describing the process in their Communist Manifesto, stating that ‘constant revolutionizing of production, uninterrupted disturbance of all social conditions, everlasting uncertainty and agitation distinguish the bourgeois epoch from all earlier ones. … All that is solid melts into air.’

The idea of melting solids is very similar to the metaphor used by sustainability and social enterprise thought-leader, John Elkington, to explain the disruptive changes going on in the world. In an interview with him, he explained: ‘What happens in an earthquake? The land become thixotropic; what was solid suddenly becomes almost semi-liquid. I think we are headed towards a period where the global economy goes into a sort of thixotropic state. Key parts of our economies and societies are on a doomed path really, and I think that’s unavoidable. I think we’re heading into a period of creative destruction on a scale that really we haven’t seen for a very long time, and there are all sorts of factors that feed into it.  The entry of the Chinese and Indians into the global market, quite apart from things like climate change and new technology.

As to what this means for business, Elkington believes that ‘all of these pressures are going to mobilise a set of dynamics which are unpredictable and profoundly disruptive to incumbent companies, so some companies will disappear. I think most companies that we currently know will not be around in fifteen to twenty years, which is almost an inconceivable statement. But periodically this happens and there’s a radical bleeding of the landscape. We’ll find this sort of reassembly going on. Over a period of time we’re going to have some fairly different products, technologies, business models coming back into the West, and I think it’s going to be quite exciting, but quite disruptive.’

We see all kinds of examples of creative destruction in corporate sustainability and responsibility. For virtually the whole of the 20th century, the biggest companies in the world were the oil and motor giants – companies like Exxon, BP, General Motors and Toyota. But the 21st century, with  …

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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_creative_destruction_wvisser.pdf”]Pdf[/button] The Creative Destructive Revolution (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. (2011) The Creative Destruction Revolution, Wayne Visser Blog Briefing, 17 November 2011.

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What Can Web 2.0 Teach Us About CSR?

What Can Web 2.0 Teach Us About CSR?

Blog by Wayne Visser

Part 6 of 13 in the Age of Responsibility Blog Series for CSRwire.

By May 2008, it was clear to me that the evolutionary concept of Web 2.0 held many lessons for CSR. At the time, I declared: ‘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.

Web 1.0

  • A flat world just beginning to connect itself and finding a new medium to push out information and plug advertising.
  • Saw the rise to prominence of innovators like Netscape, but these were quickly out-muscled by giants like Microsoft with its Internet Explorer.
  • Focused largely on the standardised hardware and software of the PC as its delivery platform, rather than multi-level applications.

CSR 1.0

  • A vehicle for companies to establish relationships with communities, channel philanthropic contributions and manage their image.
  • Included many start-up pioneers like Traidcraft, but has ultimately turned into a product for large multinationals like Wal-Mart.
  • Travelled down the road of “one size fits all” standardisation, through codes, standards and guidelines to shape its offering.

Web 2.0

  • Being defined by watchwords like “collective intelligence”, “collaborative networks” and “user participation”.
  • Tools include social media, knowledge syndication and beta testing.
  • Is as much a state of being as a technical advance – it is a new philosophy or way of seeing the world differently.

CSR 2.0

  • Being defined by “global commons”, “innovative partnerships” and “stakeholder involvement”.
  • Mechanisms include diverse stakeholder panels, real-time transparent reporting and new-wave social entrepreneurship.
  • Is recognising a shift in power from centralised to decentralised; a change in scale from few and big to many and small; and a change in application from single and exclusive to multiple and shared.

So what will some of these shifts look like? In my view, the shifts will happen at two levels. At a macro-level, there will be a change in CSR’s ontological assumptions or ways of seeing the world. At a micro-level, there will be a change in CSR’s methodological practices or ways of being in the world.

Macro Shifts

The macro-level changes can be described as follows: Paternalistic relationships between companies and the community based on philanthropy will give way to more equal partnerships. Defensive, minimalist responses to social and environmental issues are replaced with proactive strategies and investment in growing responsibility markets, such as clean technology. Reputation-conscious public-relations approaches to CSR are no longer credible and so companies are judged on actual social, environmental and ethical performance (are things getting better on the ground in absolute, cumulative terms?) …

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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 blog

Visser, W. (2011) What Can Web 2.0 Teach Us About CSR? Wayne Visser Blog Briefing, 10 November 2011.

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Can We Break the Spell of CSR Curses?

Can We Break the Spell of CSR Curses?

Blog by Wayne Visser

Part 5 of 13 in the Age of Responsibility Blog Series for CSRwire.

Looking back, we can see that the 1990s were the decade of CSR codes and standards – from EMAS and ISO 14001 to SA 8000 and the Global Reporting Initiative. But these were just a warm up act compared to the last 10 years, when we have seen codes proliferate in virtually every area of sustainability and responsibility and all major industry sectors. So much so that in the A to Z of Corporate Social Responsibility, we included over 100 such codes, guidelines and standards – and that was just a selection of what it out there.

This spawning of CSR codes and standards is typical of Strategic CSR, emerging from the Age of Management. At its heart, this is the drive to relate CSR activities to the company’s core business (like Coca-Cola’s focus on water management) by turning these into formal management systems, with cycles of CSR policy development, goal and target setting, programme implementation, auditing and reporting.  All good and well, but where does this leave us?

My belief is that Strategic CSR – like its predecessors Defensive, Charitable and Promotional CSR – has brought us to a point of crisis. Specifically, all these approaches are failing to turn around our most serious global problems – the very issues CSR purports to be concerned with – and may even be distracting us from the real issue, which is business’s role causal role in the social and environmental crises we face. This failure is due to what I have called the three Curses of CSR 1.0, namely that it is incremental, peripheral and uneconomic. Let’s look at these briefly in turn.

Curse 1: Incremental CSR

One of the great revolutions of the 1970s was total quality management, conceived by American statistician W. Edwards Deming and perfected by the Japanese before being exported around the world as ISO 9001. At the very core of Deming’s TQM model and the ISO standard is continual improvement, a principle that has now become ubiquitous in all management system approaches to performance. It is no surprise, therefore, that the most popular environmental management standard, ISO 14001, is built on the same principle.

There is nothing wrong with continuous improvement per se. On the contrary, it has brought safety and reliability to the very products and services that we associate with modern quality of life. But when we use it as the primary approach to tackling our social, environmental and ethical challenges, it fails on two critical counts: speed and scale. The incremental approach to CSR, while replete with evidence of micro-scale, gradual improvements, has completely and utterly failed to make any impact on the massive sustainability crises that we face, many of which are getting worse at a pace that far outstrips any futile CSR-led attempts at amelioration.

Curse 2: Peripheral CSR

Ask any CSR manager what their greatest frustration is and they will tell you: lack of top management commitment. Translated, this means that CSR is, at best, a peripheral function in most companies. There may be a CSR manager, a CSR department even, a CSR report and a public …

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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 blog

Visser, W. (2011) Can We Break the Spell of CSR Pretenders? Wayne Visser Blog Briefing, 3 November 2011.

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Exposing the CSR Pretenders

Exposing the CSR Pretenders

Blog by Wayne Visser

Part 4 of 13 in the Age of Responsibility Blog Series for CSRwire.

“Industrialism created a limitless appetite for resource exploitation, and modem science provided the ethical and cognitive license to make such exploitation possible, acceptable, and desirable” – Vandana Shiva

Can Big Tobacco ever be responsible? British American Tobacco (BAT) have engaged in extensive stakeholder consultation exercises and, since 2001, their businesses in more than 40 markets have produced Social Reports, many of which have won awards from organisations as diverse as the United Nations Environment Programme, PriceWaterhouseCoopers and the Association of Certified Chartered Accountants. BAT has also been ranked in the Dow Jones Sustainability Index, the FTSE Ethical Bonus Index and Business in the Community (BITC) Corporate Responsibility Index, and they funded Nottingham University’s International Centre for CSR.

Yet this is the industry where, in 1994, the CEOs of 7 of America’s largest tobacco companies[1] testified before the House Subcommittee on Health and the Environment of Congress, all denying that cigarettes are addictive. They lied under oath. And this is the business that, according to the World Health Organization, kills more than AIDS, legal drugs, illegal drugs, road accidents, murder and suicide combined.’ Of everyone alive today, 500 million will eventually be killed by smoking, and while 0.1 billion people died from tobacco use in the 20th century, ten times as many will die in the 21st century. Isn’t responsible tobacco an oxymoron?

Of course, it’s not just Big Tobacco. What about Big Oil? This is the industry that set up and funded the Global Climate Coalition (GCC) to lobby against the emerging consensus of climate science and policy development until it was embarrassed into disbanding in 2002. A 2007 report by the Union of Concerned Scientists, entitled Smoke, Mirrors & Hot Air, documented how ExxonMobil adopted the tobacco industry’s disinformation tactics, as well as some of the same organisations and personnel, to cloud the scientific understanding of climate change and delay action on the issue. According to the report, ExxonMobil funnelled nearly $16 million between 1998 and 2005 to a network of 43 advocacy organisations that seek to confuse the public on global warming science.

Or what about BP? In 2000, the company reportedly spent $7 million in researching the new ‘Beyond Petroleum’ Helios brand and $25 million on a campaign to support the brand change. Greenpeace concluded at the time that ‘this is a triumph of style over substance. BP spent more on their logo this year than they did on renewable energy last year’. Antonia Juhasz, author of The Tyranny of Oil (2008), is similarly sceptical, claiming that at its peak, BP was spending 4% of its total capital and exploratory budget on renewable energy and that this has since declined. That’s even before we factor in the Texas City refinery explosion in 2005, or the catastrophic Gulf spill in 2010, or BP’s ongoing investments in the Alberta tar sands. Isn’t sustainable oil a contradiction?

While many of these examples – and I could cite countless more, from automotive, agricultural, chemicals and other industries – are a little more than the familiar toxic mix of old-fashioned dirty lobby tactics, many companies today in engage in far more subtle and seemingly plausible campaigns of misdirection – investing in environmental management systems, producing  …


[1] Philip Morris U.S.A., RJ Reynolds Tobacco Company, U.S. Tobacco, American Tobacco Company,  Lorillard Tobacco Company, Liggett Group, Brown and Williamson Tobacco Company

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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_csr_pretenders_wvisser.pdf”]Pdf[/button] Exposing the CSR Pretenders (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. (2011) Exposing the CSR Pretenders, Wayne Visser Blog Briefing, 27 October 2011.

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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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Is Philanthropy a Smokescreen?

Is Philanthropy a Smokescreen?

Blog by Wayne Visser

Part 3 of 13 in the Age of Responsibility Blog Series for CSRwire.

“I believe it is my duty to make money and still more money and to use the money I make for the good of my fellow man, according to the dictates of my conscience.” —John D. Rockefeller Sr.

The Rockefeller story is a good one to introduce the Age of Philanthropy, not only because of John D.’s iconic status as a tycoon and philanthropist, but also because his life and views on charity embody much of the philanthropic attitudes that still prevail today in business. At the heart of the Age – and its chief agent, Charitable CSR – is the notion of giving back to society. Rather interestingly, this presupposes that you have taken something away in the first place. Charitable CSR embodies the principle of sharing the fruits of success, irrespective of the path taken to achieve that success. It is the idea of post-wealth generosity, of making lots of money first and then dedicating oneself to the task of how best to distribute those riches, by way of leaving a legacy.

In 1970, the respected US economist Milton Friedman published an article in the New York Times Magazine (13 September) entitled ‘The Social Responsibility of Business is to Increase Profits’. In it, he called the ‘doctrine of social responsibility’ a ‘fundamentally subversive doctrine in a free society’ and argued that ‘there is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits, so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud’. As such, he came to define one end of the spectrum of opinion on CSR: the purist, stockholder (or shareholder) view, a view which was once again given an airing in the Wall Street Journals’ ‘The Case Against Corporate Social Responsibility’ article on 23 August 2010. Despite his hard-line view, Friedman does allow some concessions, saying:

“It may well be in the long run interest of a corporation that is a major employer in a small community to devote resources to providing amenities to that community or to improving its government. That may make it easier to attract desirable employees, it may reduce the wage bill or lessen losses from pilferage and sabotage or have other worthwhile effects. Or it may be that, given the laws about the deductibility of corporate charitable contributions, the stockholders can contribute more to charities they favour by having the corporation make the gift than by doing it themselves, since they can in that way contribute an amount that would otherwise have been paid as corporate taxes.”

Although Friedman calls this ‘hypocritical window-dressing’ when done under ‘the cloak of social responsibility’, he concedes that these practices may be justified if they contribute to shareholders’ interests. Hence, he is setting out an early version of what today is more popularly called ‘strategic philanthropy’ – the practice of social responsibility only when it is aligned with corporate profitability. …

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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)

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Visser, W. (2011) Is Philanthropy a Smokescreen? Wayne Visser Blog Briefing, 20 October 2011.

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