The Future Faces of CSR Activism

By Dr. Wayne Visser

Quest for CSR 2.0 Series No.9

The third principle of Transformative CSR, or CSR 2.0, is responsiveness. (We explored creativityand scalability in the last two posts). Some of the most important players in the responsiveness game – especially through cross-sector partnerships – are civil society organizations (CSOs, which I prefer rather than the term NGOs). Reflecting on how this sector is changing in the face of increased calls for responsiveness, I have distinguished 10 ‘Paths to the Future’ for CSR activism. I believe that CSOs acting in the CSR space will increasingly be:

• Platforms for transparency – Undertaking investigative exposes & hosting disclosure forums;
• Brokers of volunteerism – Providing project opportunities for employee volunteers;
• Champions of CSR – Raising awareness and increasing public pressure for CSR;
• Advisors of business – Offering consulting services to business on responsibility;
• Agents of government – Working with or on behalf of regulatory authorities;
• Reformers of policy – Pressuring for government policy reforms to incentivise CSR;
• Makers of standards – Developing voluntary standards & inviting business compliance;
• Channels for taxes – Receiving and deploying specially earmarked tax revenues;
• Partners in solutions – Partnering with business/government to tackle specific issues; and
• Catalysts for creativity – Creating social enterprises & supporting social entrepreneurs.

Let’s explore these ‘future faces’ of CSR activism in a little more detail below, drawing on examples from around the world of CSOs emerging roles.

Platforms for transparency – The role of CSOs as agitators for, and agents of, greater transparency seems set to continue. For example, in Senegal, Benin, and Guinea, CSO intervention has been critical in the development of a free press. And in India, Karmayog allows citizens to report specific instances of bribery and corruption on a live, public website.

Brokers of volunteerism – As companies increasingly see the benefits of volunteerism (greater job satisfaction, productivity, commitment and loyalty), CSOs are increasingly becoming people-brokers, as sources of projects for employee volunteers. For example, the Voluntary Workcamps Association of Ghana (VOLU) coordinates volunteers to help with the construction of schools, reforestation and AIDS campaigning.

Champions of CSR – While some CSOs remain sceptical about CSR, in many countries they are the main agents for promoting CSR. For example, in Iran, a group of CSOs have joined forces with the UNDP to promote CSR through targeted training for managers under the umbrella of the UN MDGs. And in Senegal, CSR awareness has grown mainly due to a CSO called La Lumière in Kédougou.

Advisors of business – A combination of genuine expertise, valuable perspectives and a crunch on funding means that many CSOs are turning to consultancy, working with and advising companies not only on specific social and environmental issues, but also more generally on sustainability and responsibility. For example, in Hungary, as opposed to the traditional role of watchdog, many CSOs engage in consultancy on CSR.

Agents of government – The phenomena of GONGOs (government organised NGOs), GINGOs (government-inspired NGOs), GRINGOs (government regulated/run and initiated NGOs) and PANGOs (party-affiliated NGOs) are becoming more widespread, no longer just seen in China. Even where governments are not setting up or running the CSOs, they are supporting them as key catalysts. For example, Belgian CSOs receive €3 government funding for every €1 they raised themselves.

Reformers of policy – Realizing that the ‘rules of the game’ need to change, CSOs are increasingly getting involved in legal reform. For example, in Indonesia, it was largely due to rising pressure from CSOs that the Law No. 40/2007 concerning Limited Liability Companies was introduced to make CSR mandatory.

Makers of standards – In an effort to raise the bar on voluntary action by companies, many CSOs are developing their own social and environmental codes and standards, then inviting business to comply with them. For example, in Israel, the Public Trust Organisation established The Public Trust Code, covering advertising, transparency, disclosure, service and product guarantees, honesty in contracts and privacy of information.

Channels for taxes – In some countries, the effectiveness of CSOs has earned them the ability to source tax dollars directly. For example, in Mexico, the FECHAC (Federation of the Chihuahuan Industry) is a CSO, set up after devastating floods in 1990, that is funded through a special annual tax on more than 38,000 industries. And in Romania, the 2% Law (in terms of the Fiscal Code) allows citizens to redirect 2% of personal income tax to a CSO.

Partners in solutions – Not only are CSOs collaborating with business more and more, but also with governments and multilateral agencies. For example, in South Korea, ‘Cross Sector Alliance’ is one of 5 approaches to CSR being promoted, while in Africa the New Nigeria Foundation provides a platform for mobilizing non-traditional resources through public-private partnerships. In Turkey, TUSEV promotes linkages between domestic and international CSOs and encourages CSR by putting foreign and domestic firms in contact with appropriate CSOs.

Catalysts for creativity – CSOs are increasingly expected to provide solutions, not just point out the problems, especially by launching or supporting social enterprises. For example, in Bangladesh, BRAC (formerly Bangladesh Rural Advancement Committee) has been crucial in the microcredit movement, and in Singapore, the National Trades Union Congress (NTUC) has 12 social enterprises and 4 related organisations that are owned by more than 500,000 workers.

However the future unfolds, it is clear that CSOs will be a significant player in the new landscape of responsible governance and accountability, both as a counter-balancing force and a partner to governments and business. In fact, I believe CSOs will be the responsive glue that holds society together in the turbulent years ahead.

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 & Pharmaceuticals: Big Pharma on Trial - Part 2

By Wayne Visser

This blog follows on from Part 1

It is nearly ten years later and the pharmaceutical companies are still trying to rebuild their reputations. As Mail & Guardian journalist Qudsiya Karrim reported for Inside Story in 2010: The past decade has been a public relations nightmare for big pharmaceutical companies – and deservedly so, their critics say. Activists and nongovernment organizations the world over have slated Big Pharma for putting profits ahead of people and vigorously enforcing their intellectual property rights, preventing many from gaining access to life-saving medication. It’s an ugly story told repeatedly – in the media, over dinner, at AIDS conferences and during university seminars – and it has earned the pharmaceutical industry an unmatched notoriety.

But have they learned their lesson? The latest and possibly most responsive action has been from GlaxoSmithKline (GSK). Early in 2009, CEO Andrew Witty announced a major reform in their corporate policy on drug affordability and accessibility. In particular, he said GSK will cut its prices for all drugs in the 50 least developed countries to no more than 25% of the levels in the UK and US – and less if possible – and make drugs more affordable in middle-income countries such as Brazil and India. In addition, GSK will reinvest 20% of any profits it makes in the least developed countries in hospitals, clinics and staff and invite scientists from other companies,

NGOs or governments to join the hunt for tropical disease treatments at its dedicated institute at Tres Cantos, Spain. Many NGOs remain sceptical. Michelle Childs, director of policy and advocacy for Medecins Sans Frontieres, says that in China, GSK charges over $3,000 for the antiretroviral Lamivudine in the absence of generic competition, while in Thailand, by comparison, another pharmaceutical company, Abbott, offers the Lopinavir/Ritonavir co-formulation for $500. And as for reinvesting profits, Catherine Tomlinson of the Treatment Action Campaign says, ‘Wouldn’t it simply be better to slash profits and allow for countries themselves to invest in improving health infrastructure? The GSK argument is circular: We charge so much money so that we can give you some of your own money back!’

The most interesting and radical move, however, is that Witty committed GSK to put any chemicals or processes over which it has intellectual property rights that are relevant to finding drugs for neglected diseases into a ‘patent pool’, so they can be explored by other researchers. Explaining this move, Witty said, ‘I think it’s the first time anybody’s really come out and said we’re prepared to start talking to people about pooling our patents to try to facilitate innovation in areas where, so far, there hasn’t been much progress.’ He went on to say, ‘Some people might be surprised it’s coming from a pharma company. Obviously people see us as very defensive of intellectual property, quite rightly, and we will be, but in this area of neglected diseases we just think this is a place where we can carve out a space and see whether or not we can stimulate a different behaviour.’

On this score, some critics have been cautiously supportive. ‘He is breaking the mould in validating the concept of patent pools’, said the head of Oxfam’s medicines campaign, Rohit Malpani. ‘That has been out there as an idea and no company has done anything about it. It is a big step forward. It is welcome that he is inviting other companies to take this on and have a race to the top instead of a race to the bottom.’

About the blogger

Dr Wayne Visser is the Founder & Director of CSR International and the author of 9 books on CSR, the most recent of which is The Age of Responsibility: CSR 2.0 and the New DNA of Business. He researches, writes, trains and teaches corporate sustainability & responsibility around the world, including at Cambridge University, Magna Carta College, Oxford and La Trobe Graduate Business School, Melbourne.

Source

This is an extract from Chapter 9 of The Age of Responsibility: CSR 2.0 and the New DNA of Business For more information and ongoing updates, follow the The Age of Responsibility Blog

Copyright 2011 Wayne Visser