Posted by: ianrumsby | September 11, 2007

Tick Tock

Whilst world leaders were busy committing to a soft-core in-principle agreement on effective climate management in Sydney, I took the opportunity to escape the security cordons and luke-warm promises to go on a bit of a corporate responsibility crusade myself. It has been a rewarding and revealing week in equal measure.

Brendan May, Weber Shandwick’s International Corporate Sustainability and Responsibility Director joined me for a whistle stop tour of four Asian cities in 5 days (yes, we offset our carbon emissions). During that time we spoke to more than 500 people from some of the world’s most well known companies. Brendan is not only a passionate speaker, as former CEO of the Marine Stewardship Council he also knows his stuff. Add to that the fact that he’s an A-List travel companion and we had the makings of a fascinating week before we had even left Sydney.

First stop Singapore and it quickly became evident just how keen organisations are to embrace corporate responsibility. Whilst acknowledging the fact that much of their existing efforts sit squarely in the philanthropy camp, my sense is that the Asian business community knows there’s much more to it and is looking for counsel and direction on what to do and how to do it. It was the same story elsewhere. As the demon of unmanaged industrialisation, it was particularly reassuring to see how enthusiastic Chinese companies were to address the issue with a healthy level of pragmatism.

And this is exactly how it should be. Whilst governments paw through the arguments for and against effective climate management in the face of alleged economic Armageddon, businesses need to take the initiative if we are going to make real inroads. The extractive industries are a good example of how it can be done. BHP Billiton and Rio Tinto are at the top of the pile, seeing sustainable best practice as a licence to operate as well as a reputational imperative. And let’s be sure of one thing – they’re not doing it because they’re feeling all warm and fuzzy about the world.

Both organisations recognise the fact that good citizenship is interwoven with effective reputational management and (in the most part) operating cost efficiencies. Moreover, the financial community simply won’t invest in organisations that flout public opinion or operate in a way that affords zero confidence in future commercial opportunity. The Dow Jones Sustainability Indexes, Social Investment Forum and FSTE4Good Index Series are making serious inroads in the way organisations think about raising capital on the back of a viable long-term investment proposition promise. It’s the same for the service sector too. Who’d seriously want to invest in an organisation rife with workplace relations or ethical marketing malpractice?

This speaks to a bigger point. Good corporate citizenship is not simply about more effective environmental management. An organisation that wants to truly embrace the reputational opportunity that comes with CSR needs to look carefully at three other areas of its business impact: marketplace, workplace and the community. The ethical steps it takes in marketing its products and services to its customer base is as important as the impact its operations have on the environment. Likewise its own workplace practices as well as those of its suppliers are central to sustainable best practice.

And supply chain management is at the hub of the due diligence process that is, itself, a prerequisite to any form of communication. If you’re not conducting sufficiently robust audits on your suppliers then don’t be surprised when the Responsibility police come knocking at the door. And if your communications is a triumph of spin over substance, then you deserve everything you get.

Despite the current level of noise and bluster, the CSR debate is really just beginning. For communication practitioners who are serious about providing smart and intelligent counsel this means they need to get their collective heads around the issue, quick-smart. Those who play around the edges will devise neat little campaigns that wax lyrical about the value of employees painting schools. For the rest of us, it’s about facilitating a culture of change within companies that makes good corporate citizenship the very ethos of successful organisations. We have a long way to go. And the reputational clock is ticking.


Leave a response

Your response:

Categories