Twitter / WayneVisser

Saturday, 19 February 2011

The Age of Responsibility Launches in the UK

My new book was published yesterday. Here are a few details. :)


Book details

Title: The Age of Responsibility: CSR 2.0 and the New DNA of Business
Author: Wayne Visser
Publisher: John Wiley & Sons
ISBN:  978-0-470-68857-1
Hardcover, 408 pages
February 2011

Back cover text

Business is doing more than ever before to tackle issues like climate change, poverty, human rights and corruption. So why are things are getting worse, not better? Why are environmental and social trends still headed in the wrong direction?

Wayne Visser argues that traditional approaches have failed, leaving business stuck in the Ages of Greed, Philanthropy, Marketing and Management. Using Web 2.0 as a metaphor, he shows how business needs to radically transform if we are to ever reach a true Age of Responsibility. The required systemic approach is dubbed CSR 2.0 and characterised by five key principles: creativity, scalability, responsiveness, glocality and circularity.

Citing more than 300 cases to illustrate ‘the good, the bad and the ugly’ of corporate sustainability and responsibility, the book describes how the new DNA of business is fast being decoded in the areas of value creation, good governance, societal contribution and environmental integrity.

Having set out a compelling vision of the future, The Age of Responsibility describes how to get there by exploring change at the societal, organisational and individual level. Readers are left not only informed, but also inspired to make a difference. 

This book is the most challenging and exciting account of the future of business that you’re likely to read all year.

How to Order

Direct from the publisher's website - available 18 February 2011
From Amazon (UK) - available 18 February 2011
From Amazon (USA) - available 19 April 2011

Thursday, 17 February 2011

The Age of Responsibility (journal article)

The Age of Responsibility:
CSR 2.0 and the New DNA of Business
By Wayne Visser
Journal of Business Systems, Governance and Ethics 5(3): 7-22. November 2010
Special Issue on Responsibility for Social and Environmental Issues

Abstract

This paper argues that CSR, as a business, governance and ethics system, has failed. This assumes that success or failure is measured in terms of the net impact (positive or negative) of business on society and the environment. The paper contends that a different kind of CSR is needed if we are to reverse the current direction of many of the world’s most pressing social, environmental and ethical trends. The first part of the paper reviews business’s historical progress over the Ages and Stages of CSR: moving through the Ages of Greed, Philanthropy, Marketing and Management, using defensive, charitable, promotional and strategic CSR approaches respectively. The second part of the paper examines the Three Curses of Modern CSR (incremental, peripheral and uneconomic), before exploring what CSR might look like in an emerging Age of Responsibility. This new CSR – called systemic or radical CSR, or CSR 2.0 – is based on five principles (creativity, scalability, responsiveness, glocality and circularity) and forms the basis for a new DNA model of responsible business, built around the four elements of value creation, good governance, societal contribution and environmental integrity.

Quote

It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Charles Stamp

Taking Stock on CSR

My starting point for any discussion on CSR – by which I mean corporate sustainability and responsibility, but choose whichever label you prefer (corporate social responsibility, corporate citizenship, sustainability, business ethics) –is to admit that CSR has failed. The logic is simple and compelling. A doctor judges his/her success by whether the patient is getting better (healthier) or worse (sicker). Similarly, we should judge the success of CSR by whether our communities and ecosystems are getting better or worse. And while at the micro level – in terms of specific CSR projects and practices – we can show many improvements, at the macro level almost every indicator of our social, environmental and ethical health is in decline.

I am not alone in my assessment or conclusion. Paul Hawken stated in The Ecology of Commerce (1994) that ‘if every company on the planet were to adopt the best environmental practice of the “leading” companies, the world would still be moving toward sure degradation and collapse.’ Unfortunately, this is still true. Jeffrey Hollender, founder and CEO of Seventh Generation, agrees, saying: ‘I believe that the vast majority of companies fail to be "good" corporate citizens, Seventh Generation included. Most sustainability and corporate responsibility programs are about being less bad rather than good. They are about selective and compartmentalized "programs" rather than holistic and systemic change’ (Hollender & Breen, 2010).

In fact, there are no shortage of critics of CSR. Christian Aid (2004) issued a report called ‘Behind the Mask: The Real Face of CSR’, in which they argued that ...

Continue reading (download the full article)

Copyright 2010 Wayne Visser

Sunday, 13 February 2011

Author Interview by Beckoning for Change (B4C)



Beckoning for Change (B4C): What inspired “The Age of Responsibility” book?

Wayne Visser (WV): It was a combination of concern and inspiration – concern that, despite the tremendous growth of corporate sustainability and responsibility (CSR) activities over the past 20 years, most of the world’s social, environmental and ethical problems are still getting worse, not better; and inspiration, because through my work and travels in 50 countries, I have seen many promising glimpses of what a new, creative, more effective business approach might be, which I call CSR 2.0. So I wrote the book to warn against complacency and to share exciting new best practices. Our challenges are too big and urgent to waste more time using outdated thinking, broken models and ineffective strategies. Creativity means letting go of the past and creating the future.

B4C: What have you learned in the process of setting up CSR International and delving into the CSR realm?

WV: The biggest lesson from setting up the thinktank CSR International has been a realisation of how much momentum this movement on corporate sustainability and responsibility has gathered and how truly global it has become. In less than 2 years, we have grown to include more than 2,000 members from 95 countries, and the website gets 150,000 page hits a month. As a result, we are looking at setting up a CSR International Institute of Professionals, to recognise those who are working so tirelessly to make a positive difference through business. What excites me is both the scale and diversity of participation. It means that there are thousands, if not millions of people focusing their creative energies on solving some of the world’s most difficult problems, and sharing what they are learning along the way.

B4C: How do you define freedom?

WV: Freedom is the ability to make choices about my life in a way that does not harm or disrespect others. Am I able to choose my work, my friends, my quality of life? Do I have a choice in expressing opinions, selecting a lifestyle and creatively expressing myself? The great the choice I have in these matters, the greater my freedom and dignity. However, it is important that my freedom does not make others less free. As I have written in the book, if we enjoy the right to freedom, it is because we accept our responsibility not to harm or harass others. On the other hand, responsibility becomes onerous when choice is removed from the equation, when we do not realise our freedom to act differently, when we forget that we are allowed to say no.

B4C: What other concepts are required in a sustainable equation of freedom?

WV: At the heart of a sustainable concept of freedom is reciprocity and respect. Should I be free to accumulate excessive wealth, when large portions of our society remain trapped in poverty? Should I be free to exploit nature or people in order to fuel my own acquisitive greed or consumptive lifestyle? Clearly, these are corrupt acts of freedom; freedom that acts like a cancer cell in the body. I should be free to pursue my highest and truest potential, but only if that enriches, rather than impoverishes, nature and society. My freedom should contribute to the common wealth of experiences, resources and aspirations.

B4C: How do you think your work aspires to contribute to this concept and the notion of collective freedom?

WV: My work is about showing that a more sustainable and responsible future is something we can actively choose and work towards. We are not condemned to a world of pollution and poverty, of conflict and destruction. These are problems that we have created and that we can solve collectively. But this requires a shift in societal norms to embrace values that limit the abuse of power, that cherish life and diversity, and that realise that the long term gains of collective responsibility far outweigh any short term sacrifices required to get there. We know that the market – and its primary institution, business – do not operate in a vacuum. They will shift when we all choose to prioritise fairness and happiness over profits and material consumption.

B4C: Do you think that corporate social responsibility (CSR) initiatives can have an impact on collective freedom and human rights issues?

WV: Without a doubt. Already, we have seen norms changing, as evidenced in frameworks like the UN Global Compact and the emerging work on business and human rights by Professor John Ruggie. We have seen Bottom of the Pyramid (BOP) strategies and the Grameen microfinance approaches being adopted by business, and spurring a wave on innovation in the provision of finance, goods and services for the poor. We have seen the improvement in labour conditions in the supply chains of many of the world’s largest companies, like Gap and Nike. And through these and many other CSR-related initiatives, the world’s collective freedom – especially the ability of the world’s poor to choose a better life – is being enhanced. On the other hand, the freedom of many of nature’s diverse and exquisite species to survive and thrive has been tragically diminished.

B4C: How can CSR be authentically implemented? What are the obstacles? How do corporations overcome them?

WV: For CSR to be authentically implemented, companies must revisit the purpose of business. Is it to make profits, to enrich executives, and to pander to fickle shareholders or market analysts? Or is it to improve society by providing useful, safe, healthy, delightful and environmentally sustainable products and services? So long as the purpose of business is narrowly defined in terms of economics, companies will always be caught in a web of short-term, self-enrichment and CSR will always be something peripheral, incremental and at odds with the company’s main drivers. The biggest obstacle to CSR, therefore, is the narrow expectations we place on business. Corporations can overcome this through bold and innovative leadership. But more importantly, we must collectively broaden and deepen our expectations of business and then apply the necessary carrots and sticks to help companies to ‘shapeshift’ their corporate purpose.

B4C: Do you have an example of a company that meaningfully contributed to freedom and social change?

WV: There are many examples. Unilever has been very progressive on sustainability issues – helping to launch initiatives like the Marine Stewardship Council and Roundtable on Sustainable Palm Oil – and is now planning to double in size, bringing life-improving products to a billion people, while halving their environmental footprint. Nestle is working hard at creating “shared value” through improvements in water, nutrition and rural development among the communities they serve. Wal-Mart is planning to make sustainability mainstream by creating responsible products that are affordable (rather than premium priced, as they currently are), while creating zero waste and using 100% renewable energy.  All of these companies and many more are creating social change while enhancing people’s ability to make choices that will improve their lives, communities and nature.

B4C: What is the current status of CSR?

WV: Most companies tend to be stuck in one of what I have defined as four Ages and Stages of CSR: defensive CSR in the Age of Greed, charitable CSR in the Age of Philanthropy, promotional CSR in the Age of Marketing, or strategic CSR in the Age of Management. Collectively, I call these approaches CSR 1.0, because they have failed to turn around our most serious problems, or to make the net impact of business positive. However, a few companies are starting to demonstrate a more systemic CSR in the Age of Responsibility, which addresses the root causes of our problems and which I call CSR 2.0. This includes demonstrating the five principles of CSR 2.0, which I explore in the book, namely creativity, scalability, responsiveness, glocality (balancing global and local needs) and circularity (cradle-to-cradle production). The examples I cite are the innovators, but we need many more if we are to shift to CSR 2.0 and bring about a tipping point into the Age of Responsibility.

B4C: In the next decade, what are the trends and priorities in CSR?

WV: We can expect to see a mainstreaming of responsible and sustainable products, largely due to choice editing by large companies or governments. Pure philanthropy will increasingly shift towards seeding and supporting social enterprises. We will see far more emphasis on measuring and judging companies social, environmental and ethical impacts, rather than just their activities. We can expect more collaborative approaches to solving difficult problems, especially using Web 2.0 tools like wikipreneurship and crowdsourcing. Information about the impacts of products will also become more easily and intuitively available, embedded in barcodes and accessible through smart phone technologies. In addition, we will see a far more complex governance system, with a web of regulation, voluntary codes, social compacts and unwritten norms shaping corporate behaviour.

B4C: As individuals and consumers, what role do we have in this bigger picture?

Ultimately, all change starts with individuals. We are all change agents in our own right. The challenge is to focus our efforts in ways that we can be most effective. My research suggests that there are four types of change agents: experts, facilitators, catalysts and activists. For some, their biggest impact will come through contributing specific knowledge and expertise, others will empower people (colleagues, children, friends, etc.) to make a difference; some will influence organisations, while others will exert social pressure through civil society involvement. Our buying choices will also create change, but we need to be more demanding. We should not accept having to pay more for sustainable and responsible products. We have to work for changes that will make doing the right thing the easiest and most sensible choice in the world.

B4C: How can artists, as global citizens with immense power to create communities, collaborate with corporations to bring about change and freedom?

Artists must tell the stories which reflect and shape our collective consciousness. They must penetrate the superficial veneer of fashion and materialism and peer into society’s heart and soul. Artists have the crucial task of animating – making visible and vital – our deepest concerns and our greatest hopes about business. Only through the honesty of the artist can we accurately perceive the state of our world and the performance of our companies. Are we sick? Are we corrupt? Are we fulfilled? Are we adding to the sum of life, or subtracting from it? Where is the beauty? Where are the acts of caring? The power of art is to engage us emotionally – as workers, as customers, as parents, as children, as humans. We cannot think our way out of our current crises. We have to act. And we will only act if we are motivated by strong feelings, whether they are our horror and anger over injustice and exploitation, or our passion and inspiration over the innovative possibilities for a better world. Artists can remind us that we dream the world into existence – through business and in myriad other ways – and that we have the freedom to shape our collective dreams, and thereby to create a life-affirming destiny for the planet and its people.

Saturday, 5 February 2011

Business (quote)

Business's true quest is a noble one - to serve the needs and aspirations of humanity and become a playground for creativity in the search for meaning.

(1993)

Copyright 2010 Wayne Visser

Friday, 4 February 2011

The Age of Greed (book extract)

In my view, the Age of Greed began when the first financial derivatives were traded on the Chicago Mercantile Exchange in 1972 and peaked when Lehman’s collapse in 2008. It was a time when ‘greed is good’ and ‘bigger is better’ were the dual-mottos that seemed to underpin the American Dream. The invisible hand of the market went unquestioned. Incentives – like Wall Street profits and traders’ bonuses – were perverse, leading not only to unbelievable wealth in the hands of a few speculators, but ultimately to global financial catastrophe.

The word ‘greed’ – from the old English grædig – has etymological roots that relate to ‘hunger’ and ‘eagerness’. This is similar to the older word, avarice, coming from Old French and Latin (avere), meaning ‘to crave or long for’. Those are characteristics that Larry had in spades. The Greek word for greed – philargyros, literally ‘money-loving’ – also has a familiar ring in the Lehman's story. The trouble is that capitalism in general, and the American Dream in particular, has tended to interpret this as a healthy trait. Traders at Lehman Brothers didn’t believe he was being unethical, or doing anything wrong. They were playing the game – extremely well – and being rewarded handsomely.

Perhaps we would do well to revive the German root of the word for greed (habsüchtig), which means ‘to have a sickness or disease’, for greed acts like a cancer in society, an essentially healthy cell in the body, which becomes selfish and ultimately destroys its host. The enabling environment is as important as the greedy cell itself. After all, as I argued in my book, Beyond Reasonable Greed, a certain measure of selfishness is natural, but it needs to be moderated by norms, rules and cultural taboos that keep its destructive tendencies in check.

It is worth reminding ourselves what the consequences of those destructive tendencies can mean in the lives of millions of ordinary people. The financial cost of cleaning up after the global financial crisis – which ultimately gets translated into a tax burden on the public – was estimated by the IMF in August 2009 at £7.1 trillion, enough to finance a £1,779 handout for every man, woman and child on the planet. The gargantuan sum includes capital injections pumped into banks in order to prevent them from collapse, the cost of soaking up so-called toxic assets, guarantees over debt and liquidity support from central banks.

And then there is the human cost of unemployment. In January 2010, the International Labour Organisation released figures showing that global unemployment rate for 2009 was 6.6%, which translates into 212 million people, an increase of almost 34 million over the number of unemployed in 2007. In the US alone over 100,000 businesses filed for bankruptcy in 2008 and 2009. At the same time, the World Bank estimates that the financial crisis will left an additional 50 million people in extreme poverty in 2009 and some 64 million in 2010 relative to a no-crisis scenario, principally in sub-Saharan Africa and Eastern and South-Eastern Asia.

The Age of Greed was not something ‘out there’. It was not the preserve of a few rogue traders. We were all caught up in its web. It is in fact a multi-level phenomenon, incorporating executive greed, banking greed, financial market greed, corporate greed and ultimately the greed embedded in the capitalist system. These different facets of greed are each explored in turn in the sections to follow ...

---
For more information and ongoing updates, follow the The Age of Responsibility Blog

Copyright 2010 Wayne Visser

Thursday, 3 February 2011

Carpe Diem (poem)

We would all love to "seize the day", but alas, it slips from our grip before we have a chance ...

CARPE DIEM

Sages through the ages wisely say:
Carpe Diem – seize the dawning day!
Oh, would that I could assuage that thirst
But the day conspires to seize me first!

With the hurry and scurry
Of home’s frantic flurry
And the hustle and bustle
Of work’s tangled tussle

With the knocks and blocks
Of life’s surprise shocks
And the names and games
Of love’s fickle flames

Alas! It’s not the day that I seize
But the feathers floating in the breeze
And the jetsam drifting on the tide
That I cling to for my daily ride

(2006)

Download Carpe Diem

Copyright 2010 Wayne Visser

Wednesday, 2 February 2011

Answers (quote)

"Searching for answers in life presumes that we even know the questions."

(1992)

Copyright 2010 Wayne Visser

Tuesday, 1 February 2011

Corporate Social Responsibility in Management Research (journal article)

Corporate Social Responsibility in Management Research:
Focus, Nature, Salience and Sources of Influence
By Andy Lockett, Jeremy Moon and Wayne Visser
Journal of Management Studies 43:1 January 2006

ABSTRACT

In this paper we investigate the status of corporate social responsibility (CSR) research within the management literature. In particular, we examine the focus and nature of knowledge, the changing salience of this knowledge and the academic influences on the knowledge. We present empirical evidence based on publication and citation analyses of research published from 1992 to 2002. Our results demonstrate that, for CSR research published in management journals, the most popular issues investigated have been environmental and ethics; the empirical research has been overwhelmingly of a quantitative nature; the theoretical research has been primarily non-normative; the field is driven by agendas in the business environment as well as by continuing scientific engagement; and the single most important source of references for CSR articles was the management literature itself.

INTRODUCTION

In this paper we investigate the state of corporate social responsibility (CSR) knowledge, particularly its changing nature, salience and sources of influence. Although CSR is addressed by many disciplines, we focus on the management literature. As CSR has become an increasingly salient feature of business and its environment, to which managers are expected to respond, it has acquired status within management education and research (Pfeffer and Fong, 2004; Starkey et al., 2004). We therefore examine the CSR literature within leading management journals. ...

Continue reading (download full article)

Copyright 2010 Wayne Visser