What can Web 2.0 teach us about CSR?

By Dr. Wayne Visser

Quest for CSR 2.0 Series No.6

By May 2008, it was clear to me the evolutionary concept of Web 2.0 held many lessons for corporate social responsibility. 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" standardization, 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?).

Although CSR specialists still have a role to play, each dimension of CSR 2.0 performance is embedded and integrated into the core operations of companies. Standardized approaches remain useful as guides to consensus, but CSR finds diversified expression and implementation at very local levels. CSR solutions, including responsible products and services, go from niche ‘nice-to-haves’ to mass-market ‘must-haves.’ And the whole concept of CSR loses its Western conceptual and operational dominance, giving way to a more culturally diverse and internationally applied concept.

Micro Shifts

How might these shifting principles manifest as CSR practices? Supporting these meta-level changes, the anticipated micro-level changes can be described as follows: CSR will no longer manifest as luxury products and services (as with current green and fair-trade options), but as affordable solutions for those who most need quality of life improvements. Investment in self-sustaining social enterprises will be favored over cheque-book charity. CSR indexes, which rank the same large companies over and over (often revealing contradictions between indexes) will make way for CSR rating systems, which turn social, environmental, ethical and economic performance into corporate scores (A+, B-, etc., not dissimilar to credit ratings), which analysts and others can usefully employ to compare and integrate into their decision making.

Reliance on CSR departments will disappear or disperse, as performance across responsibility and sustainability dimensions are increasingly built into corporate performance appraisal and market incentive systems. Self-selecting ethical consumers will become irrelevant, as CSR 2.0 companies begin to choice-edit; i.e., cease offering implicitly ‘less ethical’ product ranges, thus allowing guilt-free shopping.

Post-use liability for products will become obsolete, as the service-lease and take-back economy goes mainstream. Annual CSR reporting will be replaced by online, real-time CSR performance data flows. Feeding into these live communications will be Web 2.0 connected social networks, instead of periodic meetings of rather cumbersome stakeholder panels. And typical CSR 1.0 management systems standards like ISO 14001 will be less credible than new performance standards, such as those emerging in climate change that set absolute limits and thresholds.

As our world becomes more connected and global challenges like climate change and poverty loom ever larger, businesses that still practice CSR 1.0 will (like their Web 1.0 counterparts) be rapidly left behind. Highly conscientised and networked stakeholders will expose them and gradually withdraw their social licence to operate. By contrast, companies that embrace the CSR 2.0 era will be those that collaboratively find innovative ways tackle our global challenges and be rewarded in the marketplace as a result.

Source

Welcome to this international dialogue, Quest for CSR 2.0, with Dr Wayne Visser, pioneering author, academic and social entrepreneur. The dialogue, hosted by CSRwire Talkback, is based on his groundbreaking book, The Age of Responsibility: CSR 2.0 and the New DNA of Business. For the next several weeks, Dr Visser will summarize the main points and key lessons of each chapter of his book, exploring why CSR 1.0 has failed, the 5 Ages and Stages of CSR, the 5 Principles of CSR 2.0 and how to make change happen. Readers will be invited to share their views on each posting. This exciting new series is co-published by CSRwire and CSR International.

Original link on CSRwire

CSR Wire review of The Age of Responsibility

A Review of 'The Age of Responsibility' by Wayne Visser

Review by CSRwire Contributing Writer Elaine Cohen

The Age of Responsibility: CSR 2.0 and the New DNA of Business is possibly Wayne Visser's greatest work yet. It is deeply reflective of the state of the world, society, business and people who change our lives. It is as much an intimately personal account of Wayne's evolving relationship with Corporate Sustainability & Responsibility as it is a guide to the way these concepts have emerged to drive practices - which have in some ways made a positive difference in the world, but failed spectacularly in other ways to harness the power of capitalism into a force for positive impact.

In many ways Wayne's view of the state of CSR today is rather depressing. Wayne writes: "At worst, CSR in its most primitive form may be a smokescreen covering up systematically irresponsible behaviour. At best, even the most evolved CSR practices might be just a band-aid applied to a gaping wound that is haemorrhaging the lifeblood of the economy, society and the planet." At another level, it is quite uplifting: "We are on the brink of the post-industrial revolution and we need to decide whether we will be accomplices in slowing that transition, or catalysts in speeding us towards a better future."The core message, however, is that CSR as we know it has failed to create a demonstrable improvement in the quality of social, economic and ecological life. For CSR to succeed, it needs to transform itself into something new, CSR 2.0.

Wayne Visser's 9th book on CSR, The Age of Responsibility, is cleverly structured walking us through the "Ages and Stages" of the CSR movement. There are five ages according to the author:

The Age of Greed: characterized by "bigger is better" and shareholder rule in which unfettered growth is fueled by the concept that "greed is good" and that corporations who make more money (for shareholders) actually benefit society.

The Age of Philanthropy: characterized by the concept that business should give back to society, personified by John D. Rockefeller, Bill Gates and Warren Buffett and categorized byMatthew Bishop and Michael Green as "philanthrocapitalism."

The Age of Marketing: characterized by the concept that reputation and brand matter most, leading to CSR for PR gains, with a good measure of greenwashing thrown in.

The Age of Management: characterized by the alignment of CSR with business strategy and adoption of voluntary codes and industry standards. Embedding CSR is the name of the game.

The Age of Responsibility: characterized by what Wayne Visser calls "CSR 2.0, or Systemic CSR, based on a new set of principles." The Age of Responsibility has been heralded by iconic leaders such as Anita Roddick of The Body Shop, Ray Anderson of Interface and Yvon Chouinard of Patagonia. CSR 2.0 also makes use of the new social media era as business begins to "redefine its role in society."

CSR 2.0 is based on five principles - creativity, scalability, responsiveness, glocality and circularity. Each principle is explained in turn and a host of examples are provided to ensure we understand it can be done. Vodafone's M-PESA service for mobile-phone banking in Africa is an example of creativity.Tata's Nano car and Wal-Mart's conversion to organic cotton are scalable initiatives; while GSK, the pharma giant, showed responsiveness by creating a patent pool for developing drugs for neglected diseases. Glocality is about ensuring the right local solutions, such as the experience of SC Johnson in Kenya who reformulated cleaning products to adapt to local consumer conditions. Circularity takes us in the direction of cradle-to-cradle and examples can be seen from Patagonia, Nike and Timberland, as well as Tesco's promise to be carbon neutral by 2050.

Getting to CSR 2.0 requires inspired, committed and capable people who understand their role in leading change to make the new promise of CSR 2.0 a reality. The final part of The Age of Responsibility is a lesson on change and includes a Change Matrix which plots the many change agents who have emerged to date to advance CSR and several change models that can assist our thinking as we aspire to make it happen.

Wayne Visser distils four types of CSR change agents within the community of CSR professionals: the Expert (whose motivators are projects, systems and technical excellence); the Facilitator (who shares knowledge and creates opportunities); the Catalyst (who initiates change and gives strategic direction) and the Activist (whose motivation is related to broader social and environmental issues in the world). The point is that motivation for change in business organizations comes in different forms and driving change successfully requires recognition of individual motivators and organizational context. At the heart of it all are individuals and their actions.

What is rather unique and appealing about this book is that it is not simply an erudite chronicle of the evolution of CSR together with a nicely packaged solution to all CSR's inadequacies. The appeal is the sense you are actually working through the dilemmas and challenges at each step of the way with the author, who ultimately asks whether working in Corporate Sustainability & Responsibility is a good answer to his life's question: Is advancing CSR truly a worthy enough cause for us to devote our energies to? Or is it a hollow shell that provides capitalism with a softer face but doesn't make any substantive difference to the way businesses work?

From Wayne's early beginnings as a strategy analyst with Cap Gemini, through leadership with KPMG's Sustainability Services in South Africa and then back to academia to pursue a Ph.D., Visser has grappled with the manifestations of the ages and stages of CSR in a way that reflects his deep sense of personal responsibility to make a difference. This journey has led him to develop a vision of a new CSR, which is more holistic and "judged by its success in improvements in the overall socio-cultural, economic and ecological system." In the forward to the book, the Age of Responsibility protagonist Jeffrey Hollender writes: "The hour may be late and the clock loudly ticking, but the story of responsible business is not over yet. There's still room for a happy ending. And the time has come to write it for ourselves."

We should all read this book. We are all potential change agents. We are all part of the problem and part of the solution. We are all living in World 2.0, where CSR 2.0 can become a reality. We are all likely catalysts in the Age of Responsibility.

About Elaine Cohen

Elaine Cohen is a Sustainability Consultant and Reporter at Beyond Business and blogger on sustainability reporting and author of CSR for HR: A necessary business partnership to advance responsible business practices.

This commentary is written by a valued member of the CSRwire contributing writers' community and expresses this author's views alone.