Archive for Corporate Citizenship

Good Business

shake_hands.jpgDr. Wilhelm captured the stage again as key note speaker after the dinner (btw an excellent one, don’t get me started on this). Funny enough, he quoted a NEPAD executive’s speech from the opening session of the Bonn IBF conference from the beginning of the week. And, he ends with a brief but true demand: Do business, but do it in a good and profitable way.

Comments

Boston CCC: reframing the role of business

googins.jpgIt’s conference week: I could not avoid attending the 2nd International Conference on CSR in Berlin. As they’ve got WLAN available, I will try to blog it - forgive me for any misunderstandings or wrong perception and interpretation of ideas - mistakes are all mine.

There’s Bradley Googins starting just now. He’s a former student of Brandeis, of all things (disclaimer: me too…), and now runs the Boston College Center for Corporate Citizenship. His focus is change, or the way in how it has been speeded up lately. His take on the private sector is, to recognise the changing role of business - and the changing of the role of government. Not that this in itself would be particularly new, but he has just finished a research study with 25 CEOs of MNCs, posing his frame in front of them and asking, if there are implications of this towards a much needed change in leadership within businesses.

Googins’ main point: Businesses can no longer afford to be bystanders in the process. They already do take sides. Isn’t that a bit like “It is not possible not to communicate” or Mary Anderson’s background to “Do no harm”: “presence is not neutral. It influences the context”, I thought.
CSR is at a very early stage in capturing the necessity to adopt to the responsibilities they de facto have: while 51 of the 100 largest “bodies” (in regards to value and GDP) are companies and 49 states, they have only adopted to the compliance issues introduces, while not seizing the opportunities this responsibility.

Googins presents a survey (can’t read source) on the trust of different players citizens bring towards all three sectors. NGOs rated highest, corporations at the very bottom end.

He points to the growing inequities on our planet and then, aptly connection, to fat cat pay rises, and closes this critical remark with some more positive some examples that show opportunities, such as SC Johnson (?) and the ecomagination campaign by GE. And, he adds that he perceives the new GRI G3 as a very promising step forward.

A McKinsey Study (2005) looked at the CEOs perspectives and tactics for the future. They have four issues: Increasing transparency, implementing internal CSR policies, engaging stakeholders, industry coalitions for self regulation.

Then there’s a real compliment for “German” corporations: They seem to by far outperform US companies in regards reporting (only 18% of US companies - sample: the largest 200 companies worldwide - report on their CSR activities, the percentage of German companies doing this is much higher… didn’t get the figure). However, he does not discuss whether or not this is mainly a PR exercise - leading on to an at first sight quite funny chart, connecting the to-do’s of companies within a sort of mindmap cloud.

He goes through the stages of corporate citizenship (CC), starting from donations and philanthropy up to Business Practices, naming Starbucks, HP, AMD - and their quest for the “sweet spot” i.e. business case in CC. His earlier mentioned CEO survey was quite a surprise: when talking with (and taping) CEOs, they seemed to have more time than Googins originally thought: actually always more than an hour. Quite amazing, I thought, especially since their word is weighted on gold scales by shareholders and the investment community, who has nothing else to do…
New Reality emerging:

1. Business perspective is moving from shareholder to stakeholder (a quote by Sam Palmisano, Chairman and CEO IBM), but still: Milton Friedmans quote of “The business of business is business” remains the paradigm of Wallstreet.

2. Deregulation comes at a price: the benefits of economic prosperity can only be harnessed, whenever the responsibility that is connected to the opportunity which in turn is the reason for pushing towards deregulation.

3. Short-term thinking does not provide solution for long-term problems.

Creating a soft landing to Globalisation means to use the positive contributions economy brings to society - and, of course, the secret of success is to do what one aims for and wants to be good at without generating envy in the world around. It is this that creates the demand for business leaders that recognise their importance in and value to society.

Update: Googins’ keynote.

Comments