CSR 2.0. The Future of Corporate Social Responsibility. CSR International

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1 CSR 2.0 The Future of Corporate Social Responsibility CSR International

2 The evolution of responsibility 1980s Philanthropy Late 2000s Responsible Competitiveness 1970s Shareholders Early 1990s Corporate Governance Late 1990s Stakeholders Engagement Early 2000s Corporate Accountability

3 The evolution of sustainability 1980s Health & safety Late 2000s Sustainable markets Early 1990s Environmental management 1970s Quality management Late 1990s Health, safety & environment Early 2000s Triple bottom line

4 ISO 26000: Fit for the future? Principles, including: Accountability, Transparency, Ethics, Stakeholder interests, Rule of Law, International norms, Human rights Core subjects, including: Governance, Human rights, Labour, Environment, Fair operating practices, Consumer issues, Community involvement & development Integration, including: Organisational characteristics Understanding SR of organisation Communication on SR Enhancing credibility of SR Reviewing & improving SR Voluntary initiatives on SR

5 The Failure of CSR (and its rebirth) CSR 1.0 Curses Incremental Peripheral Uneconomic CSR 2.0 Principles Creativity Glocality Scalability Circularity Responsiveness Copyright CSR International / Wayne Visser 2010 Why has CSR failed so spectacularly to address the very issues it claims to be most concerned about? It is because of the Triple Curse of Modern CSR We need a revolution that will, if successful, change the way we talk about and practice CSR and, ultimately, the way we do business I call it CSR 2.0

6 Curse 1 Incremental CSR Source: ISO

7 Curse 2 Peripheral CSR Source: Greenpeace

8 Curse 3 Uneconomic CSR

9 CSR 1.0 Burying the Past

10 Web 1.0 and CSR 1.0

11 Web 1.0 and CSR 1.0 Web 1.0 Information source Advertising push Innovators like Netscape Mainstreamers like Microsoft Standardized PC hardware & software CSR 1.0 Glorified brochures Greenwash Innovators like Traidcraft Mainstreamers like Walmart Standardized CSR codes & guidelines

12 Web 2.0 and CSR 2.0

13 Web 2.0 and CSR 2.0 Web 2.0 Collective intelligence Collaborative networks User participation Social media Knowledge syndication Beta testing New philosophy CSR 2.0 Global commons Innovative partnerships Stakeholder involvement Stakeholder panels Real-time reporting Social enterprise New business model

14 Principle 1 - Creativity

15 Principle 1 - Creativity I like to support causes where "a lot of good comes from a little bit of good," or, in other words, where the positive social returns vastly exceed the amount of time and money invested Jeff Skoll, First President of e-bay

16 Principle 1 - Creativity Apple s iphone Vodaphone s M-PESA

17 Principle 2 - Scalability

18 Principle 2 - Scalability Toyota Prius Tata Nano

19 Principle 2 - Scalability Microfinance

20 Principle 3 - Responsiveness The Global Climate Coalition The Corporate Leaders Group On Climate Change

21 Principle 3 - Responsiveness TRIPS (Trade-Related Aspects of Intellectual Property Rights) WBCSD Eco-patent Commons

22 Principle 3 - Responsiveness

23 Principle 4 - Glocality Carroll s CSR Pyramid Philanthropic Ethical Legal Economic Guatemala s CSR Pyramid Policy engagement Community responsibility Family responsibility Economic responsibility

24 Principle 4 - Glocality

25 Principle 4 - Glocality Source: Marketing Responsibly, IBE/Mallen Baker, 2009

26 Principle 5 - Circularity End-of-Pipe Solutions Closed-loop Production

27 Principle 5 - Circularity Source: Marketing Responsibly, IBE/Mallen Baker, 2009

28 Principle 5 - Circularity Since 2002, we have handled over 18 million mobile phones for reuse and recycling Source: ASRC

29 CSR and Social Media Source: ASRC

30 CSR 2.0: The New DNA of Business CSR 2.0 Value Creation Good Governance Societal Contribution Environmental Integrity CSR can only be resilient if it is part of the DNA of an organisation, i.e. CSR will only survive the vagaries of fickle markets, fluctuating profits, financial crises and leadership whims if it is totally embedded in the corporate culture, strategy and governance systems Wayne Visser, 2008 Copyright CSR International / Wayne Visser 2010

31 The CSR 2.0 Model The CSR 2.0 Model DNA Code Value Creation Good Governance Societal Contribution Environmental Integrity Goal Economic development Institutional effectiveness Stakeholder orientation Sustainable ecosystems Key Indicators Beneficial products Inclusive business Transparency Ethical conduct Philanthropy Fair labour practices Renewable resources Zero-waste production Copyright CSR International / Wayne Visser 2010

32 CSR 1.0 versus CSR 2.0 Corporate Social Responsibility Philanthropic Risk-based Image-driven Specialized Standardized Marginal Western Corporate Sustainability & Responsibility Collaborative Reward-based Performance-driven Integrated Diversified Scalable Global

33 CSR 1.0 versus CSR 2.0: Shifts CSR premium Charity projects CSR indexes CSR departments Ethical consumerism Product liability CSR reporting cycles Stakeholder groups Process standards Base of the pyramid Social enterprise CSR ratings CSR incentives Choice editing Service agreements CSR data streams Social networks Performance standards

34 The Challenge Ahead for CSR 2.0 As with Web 2.0, the success of CSR 2.0 will depend on: C = CREATIVITY S = SCALABILITY R = RESPONSIVENESS 2 = GLOCALITY 0 = CIRCULARITY

35 CSR 2.0 as the new DNA of Business

36 What Have We Got to Lose?

37 Thank You! Good luck!