The Age of Responsibility: Towards CSR 2.0

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1 The Age of Responsibility: Towards CSR 2.0 Dr Wayne Visser Director, Kaleidoscope Futures Senior Associate, Cambridge Programme for Sustainability Leadership

2 Sustainable Development Gap Source: Global Footprint Network, UNDP

3 Business Response: CSR DNA Code Value Creation Good Governance Societal Contribution The CSR DNA Model Goal Economic development Institutional effectiveness Stakeholder orientation Key Indicators Capital investment Beneficial products Inclusive business Leadership Transparency Ethical conduct Philanthropy Fair labour practices Supply chain integrity Environmental Integrity Sustainable ecosystems Ecosystem protection Renewable resources Zero-waste production

4 Progress: Stages of CSR Defensive The Age of Greed CSR 1.0 Charitable The Age of Philanthropy Promotional The Age of Marketing Strategic The Age of Management Transformative The Age of Responsibility CSR 2.0 Source: W. Visser, The Age of Responsibility, 2011

5 Failure of CSR 1.0 INCREMENTAL PERIPHERAL UNECONOMIC Source: W. Visser, The Age of Responsibility, 2011

6 CSR 1.0 and CSR 2.0 Source: W. Visser, The Age of Responsibility, 2011

7 CREATIVITY SCALABILITY RESPONSIVE- NESS GLOCALITY CIRCULARITY Principles of CSR 2.0 A LITTLE WORLD WTO Source: W. Visser, The Age of Responsibility, 2011

8 Forecast #1 for CSR in 2020 CSR 1.0 CSR 2.0 By 2020, we will see most large, international companies having moved through the first four types or stages of CSR (defensive, charitable, promotional and strategic) and practicing, to varying degrees, transformative CSR, or CSR 2.0.

9 Forecast #2 for CSR in 2020 Codes & standards Product innovation By 2020, reliance on sustainable business codes, standards and guidelines will be seen as a necessary but insufficient. Companies will be judged on how innovative they are in using their products and processes to tackle social and environmental problems.

10 Prediction #3 for CSR in 2020 Ethical consumers Choice editing By 2020, self-selecting ethical consumers will become less relevant as a force for change. Companies strongly encouraged by government policies and incentives will scale up their choice editing and cease offering less ethical product ranges, thus allowing guilt-free shopping.

11 Forecast #4 for CSR in 2020 Sponsorships Partnerships By 2020, cross-sector partnerships will be at the heart of all CSR approaches. These will increasingly be defined by business bringing its core competencies and skills (rather than just its financial resources) to the party.

12 Forecast #5 for CSR in 2020 Local solutions Glocal solutions By 2020, companies practicing sustainable business will be expected to comply with global best-practice principles, such as the UN Global Compact or the Ruggie Human Rights Framework, but simultaneously demonstrate sensitivity to local issues and priorities.

13 Forecast #6 for CSR in 2020 Take-makewaste Circular production By 2020, progressive companies will be required to demonstrate full life-cycle management of their products, from cradle to cradle, with goals of zero-waste, carbon-neutral and waterneutral production, with mandated take back schemes for products.

14 Forecast #7 for CSR in 2020 GRI & Rankings GASP & Ratings By 2020, some form of Generally Accepted Sustainability Practices (GASP) will be agreed upon, with consensus principles, methods, approaches and rules for measuring and disclosing sustainable business. Also, a set of credible CSR rating agencies will have emerged

15 Forecast #8 for CSR in 2020 Selfregulation Coregulation By 2020, many of today s sustainable business practices will be mandatory requirements. However, CSR will remain a voluntary practice an innovation and differentiation frontier for those companies that are either willing and able, or pushed and prodded to lead

16 Forecast #9 for CSR in 2020 Corporate reporting Product reporting By 2020, corporate transparency will take the form of publicly available sets of mandatory disclosed ESG data down to a product level plus web 2.0 collaborative feedback platforms, WikiLeaks-type whistleblowing sites and product rating applications.

17 Forecast #10 for CSR in 2020 Centralised departments Decentralised specialists By 2020, CSR will have diversified back into its specialist disciplines and functions, leaving little or no sustainable business departments behind, yet having more specialists in particular areas and more employees with knowledge of how to integrate CSR issues into their functional areas.

18 IMPACT PARTNERSHIP LEADERSHIP INNOVATION TRANSFORMATION Steps to CSR 2.0 Implementation Re-design Re-structure Re-align Re-define Re-assess Source: W. Visser, The Quest for Sustainable Business, 2012

19 What Have We Got to Lose? CSR FORUM 2013

20 Thank You! Good luck! CSR International & Wayne Visser CSRint & KaleidoFutures & WayneVisser CSR International & Wayne Visser csrinternational & WayneVisser