A 2 minute lesson on employee engagement for sustainability ... that will make you smile

Everyone knows that getting employees engaged in sustainability initiatives is tough. This fun little video shows why so many efforts go wrong and how "green jujitsu" offers green champions a better way forward. It's not saying anything new to anyone that has been in the field a while, but it gets the message across really well in less than two minutes ... and its great advice for getting started in employment engagement. As Gareth Kane from Terra Infirma, who put the video together says, "It's deliberately lightweight, but it carries an important message - ditch the eco-cliches and put yourself in your colleagues' shoes."

 


 Here's the original link on Youtube which tells you a little more about the green jujitsu approach - essentially using your employees strengths, habits and interests as an opportunity rather than a threat.  

The top 5 CSR trends for 2013

For years now we have summed up the main events of the past year in our end-of-the-year post. Before we are too far into the New Year we thought we should also ratchet up the game a little by sharing our two cents on what the future might hold in store for the world of CSR. In doing so we are partly inspired, partly informed by other players in the CSR world, such as ethical corporation magazine, BSR or just means, albeit our outlook is neither as gloomy nor as rosy as some of our colleague’s. Here is what we think business should watch out for in 2013 when it comes to CSR:

Trend 1: Governments are back!

One of the basic tenets of the CSR movement in business has been it being voluntary and meeting social expectations above and beyond the law. Well, that sounded good and no doubt many companies have done well in this regard. But after four years of ongoing (and new) financial crises all over the world and some of the more recent scandals it is also fair to say that business has enjoyed a rather long leash over the last decades, thanks to deregulation and globalisation. The fallout of the tax evasion scandal in the UK or the BP disaster in the US however have shown that governments are no longer all that happy to just take ethical business behaviour on trust alone. It’s no longer just carrots – the sticks are back out. After four years of virtually no prosecution of any Wall Street bankers responsible for the financial crisis, Obama has just appointed a former star prosecutor as the head of the SEC – for many a sign of a more ambitious control of Wall Street. And it is not just in the US where a second term president can now (hopefully) govern without too much concern for special interests. At this week’s Davos meetings UK Prime Minister David Cameron – the self declared most ‘pro business leader’ you could find – announced more coordinated efforts within the G8 to clamp down on the blatant tax evasion we have witnessed in the past.

What does this mean for CSR? In some ways it is good news for those companies who are serious about their CSR. After all, if ethical behaviour is just voluntary, the more responsible ones face those ‘first mover disadvantages of CSR’: if you are the only one that does not bribe, that does pay taxes or decent wages in Africa – your competitors will get the contracts, lower their costs and outcompete you. Companies therefore in some ways have an interest in levelling the playing field through regulation. The smart ones have understood this and rather than lobbying against it understand that they can be part of the solution. An example for a promising initiative in this context is the ‘Council of Clean Capitalism’ set up by the Canadian CSR magazine Corporate Knights which brings businesses together in creating a broader regulatory system that incentivizes responsible behaviour at a systemic level.

Trend 2: Make-or-Break on Climate Change!

Cancun, Copenhagen, Durban, Doha – the spate of UN Climate Change Conferences aimed at finding a successor of the Kyoto Protocol have so far led to nothing and are considered by many as a sick joke. Much of it to the ‘credit’ of business hampering and obstructing progress in many ways, as a recent study exemplifies. This said though, it does not mean that Climate Change is off the agenda for business. On the opposite, in accordance with Trend 1 above, we see that many national (i.e. Australia), regional (i.e. California) or even municipal (i.e. the C40) jurisdictions are moving on the topic with, yes, regulatory systems, be it cap-and-trade, carbon tax or other approaches.

For business this is not necessarily the best outcome. While global agreements provide a long term framework for adapting to the issue business now is confronted with a patchwork of approaches, systems and jurisdictions. With considerable regulatory activism in the area this enhances uncertainty and risk. This will be exacerbated by the fact that events like Hurricane Sandy (causing even Mike Bloomberg to acknowledge climate change as real!) make the effects of climate change more palpable. This area of CSR is just going to be a major issue on the 2013 agenda.

Trend 3: Beware of CSR Fatigue!

In a recent book just published some of our colleagues talk about ‘The end of CSR’. While we are not buying this line totally, it cannot be overlooked that CSR fatigue is spreading far and wide. Not only has CSR been totally ‘incorporated’ and has become a mainstream practice for most large businesses, it has also not prevented the scandals we had the opportunity of talking about. After all, most of the culprits in those incidents, including the major banks at the heart of the financial crisis, all have very much to tell us on their websites about the wonderful things they are doing in the CSR, sustainability or corporate citizenship area.

One trend then we can observe and which will continue to shape CSR practices is a move towards the core value creation of business. This may not be as comprehensive as Unilever’s ‘Sustainable Living Plan’ but it will certainly shape CSR instruments. The latest ‘G4’ revision of the reporting guidelines by the GRI, for instance, will move CSR related reporting away from being a separate ‘side show’ to becoming an integrated part of the financial reporting of companies. This trend will also be exacerbated from the regulatory side (see Trend 1 above): the SEC has recently adopted a rule to disclose the use ofconflict minerals for companies, which given the track record of this type of SEC rulings, will have significant impacts on the way companies implement responsible supply chain practices. While we don’t necessarily expect an avalanche of regulation here the trend is likely to become stronger in 2013.

Trend 4: The Action is Moving South!

In the 2013 ranking of Global 100 Most Sustainable Companies in the World, launched in Davos this week, the number two is the Brazilian Natura Cosmeticos. And they are just one of five Brazilian companies who made it into the top 100. For us this is indicative of a trend. The so-called ‘developing’ world is no longer  just an awkward backwater whose role in the CSR arena was at best to cause many companies in the Global North to clean up their supply chains. It is increasingly where the action is. Entire new areas of CSR, such as social innovation or social entrepreneurship have been initiated from the Global South. Think only of Mohammad Yunus and the Grameen Bank, which can be seen as a symbol of this movement. But we also see it at other levels. Indian and Chinese governments have long moved into initiatives to regulate and incentivize CSR for their companies. And we have also seen in 2012 that the story of Chinese multinationals moving into Africa as the new robber barons is likely not to go on forever: Chinese companies are facing exactly what Western companies were exposed to some years ago – with the Chinese government issuing the first Guidance for Social Responsibility for Chinese companies abroad in 2012.

Trend 5: Watch Social Media!

OK, somehow social media has come of age a little and we would be the last to pull that rabbit out of the hat in 2013 and sell it as the hottest new thing in town. In some quarters the cacophonic ubiquity of social media has led to its self defeat to the degree that some have even lamented in the past year its ineffectiveness in drawing attention to corporate scandals such as Apple in China.

The biggest change then is not the that social media is used in the CSR context, but that as a tool it has now passed the ‘hump’ on the adoption curve: it is no longer just for youngsters; rather 57% of those 50 to 64 years of age and even 38% of those over 65 are now engaged on at least one social network. From a CSR perspective this means that no longer a little blog or discussion forum to engage with the usual suspects of young activists, journalists or students is the future. Rather, the main channels of engagement and communication for business are changing. We talked about CSR fatigue above, and it is here where we will see the most significant changes in the way companies communicate. It is moving ‘from stats to stories’. Rather than putting out the annual alibi report document, social media amplifies the communication of real life impacts, of how people are affected, the need for discussion rather than one-way information, and the absolute imperative of time. CSR communication is not just putting out a report once a year, but it is about informing on a regular basis, close to events, with responses and updates in real time. The good news then is that social media will be less linked to activism or campaigns – but beware: the thirst for information facilitated by social media asks for more ongoing and regular engagement in CSR and will expose business to a much more direct and visible scrutiny by the general public.

Image by ND Strupler, reproduced under the Creative Commons License

GE, IBM and Ford still top performers in sustainability communications using social media

We're pleased to feature a guest blog today from Matthew Yeomans, a leading expert on social media in the area of sustainability and CSR. We asked him to tell us a little more about the Social Media Sustainability Index, an impressive report that he recently authored on the state of social media sustainability communication among major international companies. Read what he has to say, and then download the free report in full over at the SMI website. It's full of practical tips on how to communicate effectively about sustainability using social media - and of course there's a top 100 list to pore over at your leisure.

"One year ago, we published the inaugural Social Media Sustainability Index, a trawl through 287 major companies in North America and Europe to identify who was using social media tools and thinking to communicate sustainability. At the time we found just 60 companies that were devoting any real time or dedicated resources to that mission.

Fast-forward to the end of 2011 and a new landscape of social media sustainability has emerged. In researching our new report, The SMI-Wizness Social Media Sustainability Index, we identified at least 250 major corporates that are engaged in some form of social media sustainability comms and more than 100 have a blog, YouTube, Facebook or Twitter channel dedicated to talking about sustainability. Those dedicated 100 form the basis of our new Index.

Even as the volume of social media sustainability content has increased, the standout leaders of our Index – GE, IBM, Ford, PepsiCo, BBVA and Allianz – are the same as last year. This we believe is a testament to good social media practice in that none of these leaders consider social media sustainability through the prism of a campaign mentality. Indeed the top companies in our Index all have built upon the editorial platforms and community engagement they had established in 2010.

The social media sustainability leaders also demonstrate that companies who are committed to making their business more sustainable – be it through improved energy efficiency, lowering emissions, policing their supply chains, pioneering ethical sourcing and promoting equitable working environments – have a distinct advantage in social media communications. That’s because they have a good and believable story to tell, and good storytelling remains the most valuable currency in social media. Here are some of the ways the smartest companies are using social media, not just to communicate their sustainability stance, but also to involve the public in building a better world:

• Homage to compelling reportage: Hiring experienced filmmakers, writers and reporters to tell a complicated story well like IBM and Allianz
• Crowdsourcing: Tapping the public for big innovative ideas like General Electric
• Crowdfunding: Enabling collaborative fundraising and donations like BBVA and Bendigo and Adelaide Bank
• Bold alliances: Teaming with established NGOs, charities and conserva- tion watchdogs to support common goals and raise awareness like Levi’s
• Leveraging community: Tasking your massive online following to build a better future through campaigns, contests like PepsiCo
• Platforms not campaigns: Building an ongoing social media sustain- ability communications vehicle like Danone
• Making technology accessible and digestible: Creating content that shows how sustainability technology and initiatives matter to the general public like Philips and Sony
• The wisdom of your crowd: Collaborating with fans to break taboos and challenge the status quo like Kimberly-Clark

These stand out leaders in this year’s Social Media Sustainability Index all have a few things in common. They fully embrace their newfound power to publish and provide useful, regular, transparent and creative content for their social media communities.

It just so happens that we think those qualities are exactly what companies need if they are to succeed in social media communications. And so they form the bedrock of how we have ranked and rated the 100 companies that make the Index."

You can download the entire Index at: http://socialmediainfluence.com/SMI-report/

This post was first published on SMI. Graphic copyright SMI Wiziness

Top 10 Corporate Responsibility Stories of 2011

It's that time of year again when we consider the big news events around corporate responsibility during the past twelve months. It has undoubtedly been a significant year, with some stories potentially having a huge impact on future corporate responsibility practice or government policy. Nuclear accidents, protests galore, high level corruption - there's been a lot of ugliness again this year. But sometimes you've got to go down before you can go up. Let's hope 2011 will be looked back on as the year that business finally woke up to the new realities of corporate responsibility.

1. Fukushima nuclear disaster
As with the BP oil leak in 2010, no corporate responsibility story dominated the media in the same way that Fukushima did. And for good reason. The world's second worst nuclear disaster (after Chernobyl) slammed home just how risky the nuclear industry could be. Tokyo Electric Power (TEPCO), the company operating the plant, has had to shoulder a lot of the blame for its shoddy risk management, poor planning and siting, falsified safety records, governance procedures, and lots more besides. Its now mired in debt, awaiting either nationalization or a government bail-out. Japanese regulators meanwhile failed in providing adequate oversight, in large part due to overly cosy relations with the energy industry. Not surprising then that Fukushima also had huge impacts more broadly, most notably in a massive swing away from nuclear in the clean energy debate. Germany for one has made a 180 degree switch away from nuclear. Really this was the mother of all corporate responsibility disasters in 2011.

2. The 'Occupy' movement
Starting with Los Indignados in Spain, gradually hitting the headlines with Occupy Wall Street, and then turning into a global phenomenon, the Occupy Movement thrust social equity and democracy into the corporate responsibility debate like never before. We've had anti-capitalism protests before, but the Occupy Movement took a much more focused aim at the titans of the financial sector, and kept an unlikely conversation going for months. The challenges the unruly movement posed for business may not always have been crystal clear, but they've struck such a chord with the general public, and even among senior business leaders, that they can't just be ignored. Demands for tax justice, banking regulation, and more controls on corporate political influence have all received a fillip by the movement. Who know's? Maybe in time, the legacy of Occupy for corporate responsibilty may even surpass that of Fukushima.

3. News International phone hacking scandal
Few corporate responsibility stories can claim the scalp of an entire business, but the closing of the UK newspaper the News of the World, and the arrest of its editor, Rebekah Brooks, in July of 2011 showed just how significant the phone hacking story surrounding News International had become. When the story also took the scalp of the UK's most senior police officer, and landed veteran media mogul Rupert Murdoch in a Parliamentary inquiry, the reverberations were felt near and far. We like our journalists to pursue truth. But when they cross the line and illegally tap the private phones of bereaved families, it's clearly time for a clean up in the media. On the bright side, the story was broken, and vigorously investigated over several years, by the Guardian newspaper. So while we may not trust journalists all that much any more (if we ever did), the story also demonstrated the importance of a strong and independent media as a corporate responsibility watchdog.

4. FIFA's corruption own-goal
2011 was a bad year for integrity in sport. The Pakistani cricket betting scandal, the Sumo wrestling bout-fixing revelations, the Penn State University football coaching sex abuse case, the continued flow of scandals convulsing the Chinese Football Association and the Turkish Football Federation - few sports or countries have managed to come out looking clean. But rising above them all has been the FIFA corruption story, which more than any other sporting corruption story of 2011, demonstrated not just how deeply ingrained corruption is in sport but even how much it is embedded in sporting management and administration. The scandal has been rumbling on at least since 2010 when allegations about bought votes in the 2018 and 2022 World Cup hosting competition started pouring in. After bribery allegations, resignations, and an unopposed re-election of beleaguered FIFA chair Sepp Blatter, the organization finally looked to be getting itself back on track with an internal inquiry and a life-ban for the President of the Asian Football Confederation. But FIFA's proposed roadmap for tackling its integrity problems fell far short of the root and branch surgery that was necessary, and the recent withdrawal of Transparency International from the reform process demonstrates that the FIFA leadership still don't understand the basic principles of ethics management. Students of corporate responsibility need no better case study of how to get it all so wrong.

5. Raj Rajaratnam's insider trading trial
No list of corporate responsibility stories is complete without a big fish being caught. In 2010 we saw the sacking of HP CEO Mark Hurd for expense claims fraud. This year, we had a two-for-price-of-one bonanza with the trial of former hedge fund boss Raj Rajaratnam giving us a guilty verdict, 11 years in jail and a $10m fine for insider trading .... plus the charging of his friend and former McKinsey head Rajat Gupta with securities fraud for passing on insider information to Rajaratnam. As the New York Times said: "it was the longest-ever prison sentence for insider trading, [and] a watershed moment in the government’s aggressive two-year campaign to root out the illegal exchange of confidential information on Wall Street."

6. UBS and the not so 'rogue' trader
Another big story of personal ethical failure was the revelation back in September that UBS trader Kweku Adoboli had managed to lose the company a staggering $2.3bn in authorized trading. With a loss that big, this one makes the list on scale alone. But the real story here was not so much the ethical failings of Adoboli himself (though that clearly was one of the issues at play here), but the failure of UBS to manage the problem before it got out of hand, and the inherent risk-taking at the heart of the financial services industry. In desperate need to repair its flagging reputation, UBS subsequently accepted the resignation of its CEO and installed a new leader with a mandate to move into less risky and less complex investment banking.

7. Twitter revolutions and Blackberry riots
You know when your reputation is in good shape when you get associated with progressive political revolutions like the Arab Spring. After a government telecom crackdown in Egypt, companies like Twitter and Google found themselves center stage in the flourishing revolution. Switch to the ever declining fortunes of Canadian tech pioneers RIM and their Blackberry device, and all you get is an association with mindless looting in London. But whichever way you cut it, 2011 will indelibly be marked as the year that tech companies realized that for better or worse, social protest - and government response to protest - was an inevitable part of their business. Message to CR department: write a policy.

8. Michael Porter's popularization of 'Creating Shared Value'
It was certainly not the most popular article among CSR commentators, but Porter and Kramer's piece in the January issue of the Harvard Business Review on 'Creating Shared Value' has probably done more to get corporate responsibility issues into the boardroom than anything else written this year. Sure, it's simplistic, derivative, and takes cheap shots at a version of CSR that most us don't even recognize. But it's also compelling, endearingly positive, and says a lot of things that most of us have been trying to say for years without anyone taking much notice. Plus it couldn't be more prescient with its "capitalism is under siege" motif. Oh, and Michael Porter said it. So it must be true. Take it from us, CSV is here to stay.

9. Facebook's privacy adventures
There was little doubt back in January that Facebook would probably be hitting a whole bunch of corporate responsibility snags during the year. Once you get so big and popular, it is inevitable that the critics will start sharpening their knives. Greenpeace pushed hard on the coal powered energy issue and eventually scored a well-earned success. But the big issue dogging Facebook in 2011 was privacy. The tech giant wasn't alone since privacy and security continued to afflict a number of companies especially with the shift to cloud computing. But Facebook's privacy battles stand out simply because they affect so many of us and therefore mark the front line of the personal privacy battles with tech companies and regulators. Remarkably, despite a surge of criticism the company initially managed to stave off too big a hit on its business during the year. But last month's settlement with US regulators saw Facebook accused of "unfair and deceptive practices" and resulted in the company facing an extraordinary obligation to submit to independent privacy audits for the next 20 years. And late in December the Irish data protection commissioner gave Facebook 6 months to comply with a raft of new privacy measures for all of its non US and Canadian users. As a result the company has started adopting a far more conciliatory tone with its critics but the road ahead will be marked by yet more battles as we gradually move to some kind of a post-privacy future.

10. The tar sands failed ethical makeover
The year started with the Canadian Environment Minister seeking to make the seemingly indefensible case that the tar sands were an ethical source of oil because they came from a democratic country that respected human rights. The argument was designed to influence US and European policy makers in the run up to critical energy decisions during 2011 such as the controversial Keystone XL Pipeline plan which was designed to bring oil sands crude directly into the US, and the European Commission's deliberations over whether to label tar sands oil as a "dirty fuel" due to its higher carbon intensity. So far the Canadian government and the oil sands producers have failed to win the argument with the Keystone decision being postponed by President Obama and the EC approving the dirty fuel label, which also then attracted further backing from a similar initiative in the State of California. Recently the story has spiraled into the more absurd territory of a banana boycott. The announcement by fruit company Chiquita to reduce their use of tar sands oil in its fleet sparked a concerted campaign by Ethicaloil.org to boycott Chiquita for discriminating against Canada's "ethical oil". You couldn't make this stuff up.

Looking at the two stories book-ending our top ten - the seriousness of a world of nuclear disaster and increasingly dirty sources of conventional energy (such as the tar sands and gas fracking) - not to mention the erosion of privacy, a crisis in capitalism and the never ending scourge of corruption that populate the middle order, it is clear that the corporate responsibility stakes have never been higher. Next year promises to be more of the same.

Photo by IAEA Imagebank. Reproduced under Creative Commons Licence

Why is communication such a big deal for CSR?

Corporate social responsibility often provokes a lot of debate. But one thing that most people seem to be agreed on is the necessity of good communications. Of course, what makes for "good" communications is not so clear cut. Should companies engage in dialogue and debate with their stakeholders? How do you communicate "authentically" with consumers around social issues? And what do employees expects or want in terms of internal communication around CSR? These are some of the questions occupying minds rights now, so it has been interesting to spend the last couple of weeks exploring some of the challenges around the intersection of CSR and communication, both from a research and practice perspective. Not that this has necessarily brought me any closer to the right answers, but I think it has helped a lot in clarifying what the right questions might be.

Last week I keynoted the 1st International CSR Communication conference in Amsterdam, NL, a primarily research conference that also featured a lot of practitioner participants. This was preceded by a doctoral workshop on CSR and communication research where budding PhD students sought to test out their ideas, theories, and methods with experienced researchers like myself and Mette Morsing from Copenhagen Business School. Then, this week I keynoted another pretty unique conference - a mixed practitioner/research conference in Copenhagen on CSR and social media titled "Social media for social purposes".

Suddenly it seems that the communications challenges in CSR are getting a lot of attention. Certainly they are beginning to attract a lot of research activity, whether from management researchers, communications scientists, or media analysts. There is some really interesting stuff happening out there, much of it making use of the new online data that is all around us. I've been impressed by some of the datasets that are being put together using Tweets, blogs, YouTube videos, media articles, and a variety of online texts and reports. The possibilities of analyzing "big data" around online CSR communication are growing all the time. But also, it is clear that we need more than just huge amounts of data - we also need to be asking the right questions.

Consider this. McDonald's, which has been a pioneer in blogging about its CSR practices through its Values in Practice blog, has recorded the following stats from January - November 2011:

Number of posts: 16.
Average number of comments per post: 0.5
Average number of tweets per post: 1.2
Average number of Facebook likes per post: 3.1
Average number of shares per post: 3.8

Now consider this. McDonald's has more than 11m people who have "liked" the company's main Facebook page. That's a lot of people who don't seem to be much interested in what is happening over at their CSR blog. Clearly something is up. CSR experts are saying that companies need to engage in dialogue with their stakeholders. So are McDonald's stakeholders actually not interested in dialogue? Is the way the company is communicating not relevant for them? Is the company blocking interacting on some way or is one way communication actually effective here?

As I say, we don't really have the answers to these sorts of questions yet, but the field is moving fast and through network, discourse, and sentiment analysis, for example, researchers are getting a better understanding of how and why people respond to CSR communications in particular ways.... and what this all means for the society we live in today. There is a long way to go, but it looks like its going to be an exciting and informative journey.

AC

Photo by joshfassbind. Reproduced under Creative Commons licence

Corporate responsibility infographics - the good, the bad and the ugly

Data visualization, or the creation of "infographics", has been gradually seeping into the corporate responsibility world. And its no surprise. When their designers get it right, infographics can tell you an important story in a wonderfully accessible way using cool, hard facts. But when they get it wrong, it's just, well..... a mess. Too much data and it is confusing; too little and it risks being banal. And using the wrong data can simply discredit the whole enterprise from the beginning.

So what does a good corporate responsibility infographic actually look like then? We've been taking a good look at the craze for infographics, and picked out some of the best and the worst that relate to corporate responsibility issues. There are more and more appearing every day, so we're not claiming to provide anything like an exhaustive review, but here are a few examples that we think give a good flavor of the potential and pitfalls of turning business ethics into pictures. And if you don't agree with us, then please tell us why in the comments field ..... or better still, create an infographic to explain it all!

The Good

There has been a few corporate taxation infographics doing the rounds in the last couple of months. What we like about this one from onlinemba.com though is the funky design (you've gotta love that faux factory styling), the solid citations, and the clear storyline. Yes, it takes a fairly hardline anti-business stance, but it doesn't pretend the answers are obvious or simple.



Another powerful infographic is this one detailing the role that pharmaceutical companies play in influencing doctors to prescribe their medicines. We like it because although it is a little on the long side (click on the image for the full image) it tackles an important question; it is controversial without being sensationalist (again, the referencing is pretty tight), the design is smart, and it rounds out the story with advice on what you can do to make a difference. Let's call it activism meets journalism.

Of course, infographics can be a lot more than just simply static visuals. And they don't have to be critical of business! Videos, animations, music and all kinds of possibilities are out there to tell corporate responsibility stories in interesting ways. We like this one from Fortune and CNN because it offers some nice simple interactivity about something all of us care about - what makes some places better to work in than others. Based on Fortune's annual 'Best companies to work for' survey, it not only shows which companies score well, but also lets you search the kinds of words that employees use to describe their companies - the top ones being "people", "time", "family" and benefit". But some of the cross-company comparisons are really interesting. Whilst top spot holder SAS includes words like "care", "life" and "health", Goldman Sacks at 23 emphasizes words like "best", "firm", "people" and "individual". Just goes to show that what makes a firm good to work for is very much in the eye of the beholder.

The Bad


Corporate tax dodging again. But this time the infographic is less successful. Sure it has an easy to understand message, but it doesn't have the richness of data to be authoritative. For a start it doesn't cite its sources, which immediately threatens some of its credibility. Second, it doesn't look to explain any of the facts it presents, but instead relies on some slightly shonky political posturing. Good infographics should make you feel like you've read an informed newspaper article. This comes across more like a bumper sticker.


Source: US Uncut - No Cuts Until Corporate Tax Cheats Pay Up!


The Ugly


Sometimes, not even well researched corporate responsibility infographics hit the mark. Getting the balance right between telling a clear story and getting the facts on the table can be tricky. We wanted to love this incredibly informative infographic about the BP oil spill from 2010 by Carol Zuber-Mallison but frankly it just doesn't cut it like it should. It's simply too crammed with data. Sure, it tries to describe a complex situation of corporate responsibility, but if infographics are going to be successful they've got to render that complexity easily understandable in a single narrative. This tries to cover too much. Plus, given all the data, the referencing could be better. How else is anyone supposed to check the facts? So although this is an impressive effort in many respects - especially the crazily ambitious attempt to update it in real time - it's ultimately an infographic fail. Too much info, not enough graphic.

Sex, privacy and media ethics

Sex sells. And sex really sells in the media business. With their profitability in free-fall, newspaper businesses especially are always on the look out for a salacious front page story to help them grab some precious market share. Unfaithful soccer stars "playing away from home", celebrity match-ups and break-ups, trysts with prostitutes, or accusations of sexual assault are all highly newsworthy, especially at the tabloid end of the market. But recent events in the UK and elsewhere have led many to question whether the sex lives of celebrities can be afforded some degree of privacy protection from an intrusive media, or whether in the interests of press freedom, and the growing uncontrollability on online social media "reporting", they are simply fair game.

In the last few weeks the Ryan Giggs super-injunction affair in the UK has brought these issues to a head. Why all the excitement? Well until a few days ago, Giggs, one of the UK's best known soccer players, was the mysterious unnamed figure who had successfully been granted a so-called super-injunction by the English courts. The injunction had been given to protect Giggs' privacy in the wake of an attempted kiss-and-tell story by Imogen Thomas, a former reality TV star, who claimed to have had an affair with the married, and previously squeaky-clean, soccer star. It not only prevented newspapers from reporting the story but also from even referring to the injunction or the claimant.

Super-injunctions like the one granted to Giggs have become the legal instruments of choice for individuals and companies in the UK looking to prevent their activities from being reported in the press. They are granted by the courts to protect privacy under the Human Rights Act. The newspaper industry is predictably waging a war of words against them because they shackle some of the traditional freedoms that they are used to and which they rely on to act as the fourth estate. Super injunctions also raise the hackles of the public because with a price tag that starts at something like US $100,000 they appear to allow special legal treatment for the rich and famous. Moreover, as the Giggs affair and the 2009 pollution case of the oil company Trafigura have shown, the rise of social media platforms such as Twitter through which stories can be circulated outside the remit of the formal TV and newspaper industries, the limits of existing legal protections for privacy are being severely tested. Giggs' name was connected to the injunction through Twitter long before the press could report on it, raising legal questions about the culpability of Twitter and it's tweeters for being in breech of the injunction.

There are all sorts of ethical questions arising out of this, but from our point of view, it largely boils down to the question of when our sex lives should be private and when could or should they also be public knowledge? Let's sort out some of the considerations here:

1. Consent
Obviously the starting point here is consensual sex between adults. Coerced sex or sex crimes fall into an entirely different realm of privacy. The media has a legitimate right to publish in these cases provided legal protections for victims and the accused (which differ between jurisdictions) are respected. But clearly Dominic Strauss Kahn's alleged assault on a hotel chambermaid should be held to a different standard of privacy than his consensual affairs. Affairs with subordinate employees, even when supposedly consensual, might fall somewhere in the middle given the power dynamics involved.

2. Public interest
Where there is a potential public interest at stake the media also has a stronger case for investigating and publishing, such as where politicians campaigning on "family values" are accused of marital infidelities, anti-gay advocates are caught with rent boys, or legal enforcers break the law by paying for sex. A weaker but sometimes defensible case can also be made for leaders in a position of authority and trust whose trustworthiness might be questioned when extra-marital affairs come to light. The sex lives of celebrities rarely have a public interest component .... however much the public may be interested in hearing about them!

3. Privacy vs free speech
In the absence of coercion or public interest, there is much less chance of the press claiming a prima facie right to publish. Privacy (and after all sex is pretty private) will usually trump rights to speech unless free speech can lead to other public benefits. It's a matter of avoiding harm being prioritized over some fairly minimal free speech benefits.  The media may claim that the right to privacy is critically weakened in the case of marital infidelities and other ethical infractions. But even the unjust should be able to expect justice.

4. Harms and benefits
Without public interest, for the equation to fall on the side of publishing, there will often have to be some meaningful moral benefits for one or more of the parties to the "private" act. A spurned lover with an illegitimate love child for instance might be looking to tell their side of the story in the media and thereby gain some kind of apology or recompense from a celebrity. Here the ethical equation between speech and privacy should shift more convincingly towards publishing.

5. Reasonable expectation
Where the waters really get muddied is in the question of reasonable expectation. Privacy is typically attributed when there is a reasonable expectation that something will remain so. A telephone call or a conversation in a private residence should reasonably be expected to remain private, for example. That is why the UK newspaper, the News of the World, is in such hot water for it's illegal phone hacking of celebrities. These conversations took place in a reasonable expectation of privacy and should remain that way unless one of the participants chooses otherwise. But phone hacking is a case of the ethics of media tactics. A newspaper offered a story by a willing kiss-and-tell informant is very different. Here it is one of the participants looking to rewrite the "contract " of privacy established between themselves and their sexual partner. And in this case we have to ask ourselves whether soccer stars and other celebrities really have a reasonable expectation that their affairs with glamour models and reality TV stars will remain private. However much they wish it to be the case, there appears to be a lot of evidence to the contrary. Sure, this may be a case of a highly pragmatic interpretation of rights to privacy, but it's in the real world, a world of privacy for sale that we increasingly find ourselves in. Celebrities should be protected from direct intrusions into their privacy by the media. But maybe they should not be protected from their own decisions about who to be "private" with in the first place.

Photo by AtilaTheHun. Reproduced under creative commons licence

Corporate disaster relief in Japan: going beyond charity?

With global attention focusing on the rapid escalation of conflict in Libya and desperate efforts to contain the nuclear threat in Japan, it is easy for the ongoing humanitarian crisis in the wake of the Japanese earthquake and tsunami to recede from view. But with reports of the death toll now edging past 18,000, and nearly 500,000 people still living in shelters, the country is still certainly in dire need of support and assistance - and will be for some time to come. A report from the World Bank has estimated that the damage inflicted by the disaster will cost somewhere between $123bn and $235bn, the equivalent of some 2.5% to 4% of the country's GDP. Recovery could take up to 5 years, the report suggests.

Business in Japan has been significantly damaged by the quake and its aftermath. The automotive and electronics supply chain, in particular, appear to have been severely disrupted, leading to delays and shutdowns in production. But as previous disasters have shown, business can also play a major role in rescue and relief operations, as well as in subsequent rebuilding efforts. Wal-Mart famously upstaged the US government in responding effectively to the floods in New Orleans after Hurricane Katrina in 2005. In contrast, after the devastating 2008 cyclone in Burma, international companies were slow to offer assistance. Last year's Haitian earthquake generated a lot of corporate donations, as well as a fair deal of controversy around the role of companies in economic redevelopment and rebuilding projects.

Corporate involvement in disaster relief in Japan has yet to hit the headlines in any major way, primarily, as far as we can tell, because companies have been rather conservative in their responses. That's not to say that companies haven't helped raise a lot of money for the cause, because they have. According to the US Chamber of Commerce's, Global Aid Tracker, which does a pretty impressive job of keeping tabs on such things, global corporate assistance for the Japan crisis has now exceeded $158 million.  This includes 100m Yen (about US $1.2m) each from companies such as Bayer, BP, Hyundai, LG, Nikon, and others. Even higher sums - up to 5 times as much in fact - have been committed by the likes of Canon, Citigroup, Dow, GE, Mitsubishi, Nintendo, Sony, and Wal-Mart. As you can see, it's not just Japanese companies either, but global companies, especially those operating in Japan doing the giving. The Japanese Red Cross, however, appears to be the most favoured recipient.

Some companies have linked up their corporate donations with employee giving, often by matching employee donations, as a way of engaging workers in CSR initiatives. An interesting development here has been the tie-up between the CSR services company AngelPoints and Network for Good to provide a free on-line giving platform to the firm's clients. As the firm's press release puts it:

From now until the end of April, two million employees from companies such as Newell-Rubbermaid and Sterling Savings Bank will have access to a centralized online donation platform that will facilitate the immediate transfer of funds to organizations in Japan that need it most.

In fact, the on-line world has probably seen some of the more innovative responses to the disaster from the corporate community. Whilst some, such as iTunes and LivingSocial have simply enabled users to readily make donations through their sites, various Japanese gaming companies have developed cause-related game tie-ins to engage their users in contributing to relief efforts. The gaming demographic is notoriously difficult to enlist in social programmes, so it is certainly a positive sign that gaming companies are using their core products to reach out in this way. Zinga, the US company behind the hugely popular Facebook games, Farmville and Mafia Wars has followed up its Haiti giving initiative with a Farmville in-app donation vehicle which enables users to donate by buying virtual goods within the game - in this case, a daikon crop. Launched within 24 hrs of the disaster, online gamers reportedly went on to help Zinga contribute more than US $1m in just a few days. For a company with a tagline of 'connecting the world through games' (and already drawing fire for its addictive effect on young players), Zinga's ability to use social media to connect gamers around the world with major social problems is a surefire winner.

Elsewhere, there has been a disappointing lack of innovation among the corporate community in the Japan disaster relief. Providing money and in-kind goods is one thing, but what really can make humanitarian aid efforts stand out are when they leverage core corporate capabilities. Japanese manufacturing companies, with their decades of experience in just-in-time management and lean manufacturing practices, could be deploying their logistics and supply chain prowess to relief efforts. Law firms and financial services companies could be putting their skills towards helping displaced families, many of which lack earthquake insurance, sort out the legal and financial mess they have found themselves in rather than simply donating cash.  The list goes on. Short-term charity is fine as far as it goes, but companies should know that a more strategic approach to corporate responsibility has the potential to add considerably more value both to the stricken Japanese people and to themselves.

Anti-corporate activism through social media: how Greenpeace is leading the way

As events in the Middle East have shown, social media can play a critical role in connecting up protesters around a common cause. Whilst in this context the aims are political and the targets are state leaders, over in the world of business, companies are also finding themselves the unwitting subjects of campaigns fueled by social media.   And leading the way in exploiting new technology to confront companies is Greenpeace. After having claimed the scalp of Nestle last year with its viral Kit-Kat ad that prompted the company to change its sourcing of palm oil, Greenpeace has also recently rolled out its "Polluter Harmony" campaign in Canada to confront government support of oil sands companies. Last week, it claimed another victory with the US retailer Costco announcing a major sustainable seafood initiative after a Greenpeace campaign featured the company in a series of videos going through an "Ocean destroyers anonymous' program. And now, it has set its sights on the social media giant itself, Facebook.

Greenpeace is no stranger to the use of new technology in anti-corporate activism. As Ethical Corporation reports, the organization was propelled onto the world stage by its use of live video footage from its campaign ship in the mid 1990s. The organization also led the way in using YouTube videos to target companies, such as its Kimberly Clark campaign back in 2004. Since then Greenpeace has continued to exploit developments in new media to get its message across and engage people in its campaigns against big companies. For example, a 2009 campaign against an extension to Heathrow airport involved setting up a 'Join the Plot' website that enabled some 90,000 people around the world to become "beneficial owners" of land earmarked for the new runway, thereby giving them the right to be represented at any future inquiries about the extension. Plans to extend the airport were subsequently shelved by the UK Government.

The Kit-Kat YouTube spoof, which was part of a concerted campaign to stop companies sourcing from the Indonesian palm oil supplier Sinar Mas, was so successful that it made it into our top 10 stories of last year. As Greenpeace put it, “With nearly 1.5 million views of our Kit Kat advert, over 200,000 e-mails sent, hundreds of phone calls and countless Facebook comments, you made it clear to Nestle that it had to address the problems with the palm oil and paper products it buys.”  And, lo and behold, it did.

The latest campaigns have so far garnered attention, and no doubt ruffled a few feathers, but it remains to be seen what kind of success they've actually achieved. The Polluter Harmony campaign was started in the US in time for Valentine's Day 2010. This February, attention switched to Canada after the Environment Minister Peter Kent started extolling the virtues of the 'ethical' oil sands. It's a well executed campaign featuring toe curling spoof videos of big company bosses and politicians (or 'tar-crossed lovers' as the Canadian declaring their love for each other in the form of those nauseating love match clips used by online dating sites such as e-harmony. Similar in style are the Costco videos portraying the company as an initially in-denial 'ocean destroyer' who eventually completes the 6-step program on sustainable fishing and graduates from rehab. They've generated thousands rather than 10s or 100s of thousands of views, so in social media terms have not exactly taken off, but all the same have clearly been a nagging irritant for the company.

And then there's Facebook. Here the tool isn't just social media, so is the target. It's a smart piece of media planning for Greenpeace to be attacking Facebook through, well ... Facebook. The main focus is a Facebook page urging the company to 'Unfriend Coal' as a power source for its new data centre. Featuring a cute logo that uses the iconic Facebook thumbs up (and thumbs down), as well as a cheeky (or maybe just annoying) video that apes the "Story of Stuff" technique to remix the Social Network the campaign is gradually going viral. The page now has some 60,000 friends and the video has been played almost half a million times on YouTube.

But its not just the numbers we should be looking at here. The interesting things about the Greenpeace social media campaigns is the way they manage to harness the power of new technology to get people to do more than just click 'like' or watch a 2 minute video. Here's a few of the things we think they're doing right:

Using social media to get people on the ladder of participation. Joining a Facebook group doesn't represent much in terms of participation, but issues like coal, seafood, runways or toilet paper aren't all that interesting. So it's critical to make it easy for people to get involved, to get their foot on the first rung of the ladder of participation, before engaging them further. Greenpeace has been adroit at engaging .. and then educating ... through providing extensive resources, constant updating of new material, and encouraging people to go go higher up the ladder. Once people know more, there's a better chance they'll participate more and write an email, join a protest, or create their own activist videos or photos.

Mixing earnestness with wit and irony. Activist groups believe passionately in what they do. and the issues they deal with are often ugly and unpleasant. So it's no surprise that their way of communicating is  a preachy form of earnestness. But that often doesn't work with social media where attention spans are small and content is typically "lite". Greenpeace has been effective in using wit and irony in its "lower rung" communications coupled with a more earnest voice once people's interest has been pricked. That combination is something other organizations, including companies, have struggled with.

Creative imitation. Like it or not, but in terms of getting a message across about big brands, parody works. Spoof ads, Facebook icons, dating websites - Greenpeace knows how to leverage the tools and brands of big business to communicate to the public. But it does so in a creative way that helps them stand out from a busy field. As academics, we'd be tempted to call this intertextuality - where the codes or meaning of one text are transferred or re-produced in another.

Fitting social media into a broader strategy.With all the hype around social media it's easy to forget that it's just one tool among many, and just one part of a broader strategy to achieve an organization's aims. Greenpeace appears to have been successful in deploying social media as part of a social change strategy that also involves direct dialogue with companies, developing new solutions, and tackling issues at a policy level.

And a couple of things they could still do better:

End of life 'take-back'. OK, it's not the same as letting your e-waste end up poisoning someone in Africa, but the artifacts of social media also tend to stay around a long time, especially online videos and webpages. Once a company like Nestle or Costco has changed its policy, Greenpeace might want to think about what it should do with all the critical content it has left out there that is no longer an accurate picture of reality. Taking videos down from your own website is one thing, but a successful "push strategy" can leave content lurking all over the web. We like the latest Greenpeace video 'Changes' celebrating Costco's success following the 5-step program - it's a real step in the right direction - but do they have a policy on what should be done about all the rest of the stuff they've produced and disseminated?


Further integration. So far, Greenpeace has been better at creating new content than linking it all up, especially between its different campaigns and across countries. It's a difficult challenge, especially in a network form of organization like Greenpeace International, and where you're trying to talk in (at least) two different voices. But greater integration can pay-off in terms of clarifying the message and capitalizing on successes. Given how far they have come already, it doesn't look to be beyond them. Though maybe that's just another of the secrets of success in social media - the courage to give up control.

Egypt and the revolutionaries with MBA degrees

Like many of you we have been glued at times to the TV screens these last days. Seeing the masses assembling on Tahrir Square in Cairo asking for a peaceful transition to democracy in one of the biggest Arab nations is something of a watershed. For too long we in the West were just used to taking for granted that, well, if it comes to politics, the Arab world is a wholly different story. And the botched attempts to parachute ‘democracy’ into Afghanistan and Iraq seemed to underline this notion.

But now, the chips on the table seem to be mixed for a whole new round. This being a business ethics blog, lets first work through some of those issues with regard to recent developments in Egypt. Let’s look at the upshot. The current revolution would not have been possible without new media –or social networking companies. Twitter, Google, Facebook were instrumental in coordinating, organizing and network the protest movement. All of which, of course, are private companies.

We think it’s a good time to give Google some credit – especially as we have taken them to task in some of or our earlier blogs every now and then. One of their executives actually became a leader in the movement, which so far has shown little signs of a coordinated effort. Google – symbolically represented by Wael Ghonim, their marketing executive for the Middle East, has become a pivotal player in the ‘revolution’ in Egypt. The support of social media has been vital – even after the Egyptian government closed down internet communication. It was then when Twitter opened the ‘SayNow’ feature, allowing sending messages via telephone. As Ghonim pointed out himself in an interview with ABC's 60 Minutes program, much of the pressure to free him from his 12 days in solitary confinement by the Egyptian police came from his employer Google itself. All in all then, we have seen private businesses ‘enabling’ civil and political rights, much along the lines of one our most cited papers.

In a similar vein, some companies have also collected some shame. Vodafone’s network was used by the existing Egyptian authorities to send compulsory messages to their users in support of the system. Vodafone’s explanations do not sound very convincing. When has a major multinational accepted an abuse of their assets lately? Looking at the way Vodafone has managed its business so far, not at least the vociferous determination it applied to their takeover of Mannesmann in Germany years ago, their complicity in this approach sounds less than convincing. Framing themselves as a helpless victim just doesn’t wash.

Leaning back and comparing the current uprising in Egypt (and other Arab countries) to, say the fall of Communism in Eastern Europe 20 years ago, there are some remarkable differences now. Apart from such accidental leaders like Wael Ghonim – who does not intend to play a bigger role in Egyptian politics and just wants to go back to work – it really was a ‘leaderless rebellion’. No particular persons, organisations, ideologies or religious groups can be identified to have fuelled the process. Ghonim told ABC’s 60 Minutes program that ‘we don’t understand politics’. He is not a trade unionist (like Poland’s Lech Walesa), nor a writer or artist (such as the Czech Vaclav Havel), but a marketing executive with an MBA from the American University in Cairo. The MBA as a degree which provides skills for being a revolutionary? – who would have thought!

The success of the movement seems to lie in a combination of people agreeing on a minimal demand (to get rid of Mubarak) and a new set of very efficient tools (social media) to coordinate this effort. Internet and mobile communication played a pivotal role, not at least also because it allowed considerable exchange of knowledge and experience among a global group of activists in Tunisia, Serbia and the US. Pragmatism and access to new forms of information sharing seem to be the two crucial ingredients of this latest revolution.

This said, some big questions however are yet to be answered. First, will this movement spread? Today’s news from Iran, Yemen, Bahrain seem to point in this direction, but it appears that those regimes tend to be more ready and unequivocal in their resort to using force against the protesters. The second question of course points to – however spectacular the fall of Mubarak by peaceful means may be – what will succeed these regimes? To build democracy will take time and allowing people elections is just a first step. Signs are that the new Egyptian politics stays on its pragmatic course: Where else have we ever seen the revolutionaries coming back to their square of victory and, after their job of toppling the regime was done, cleaning up with broom and shovel the garbage left behind by peaceful protest?

Photo by Ahmad Hammoud. Reproduced under Creative Commons Licence

Top 10 Corporate Responsibility Stories of 2010

Mermaids protesting the BP oil spill. Photo by Johnathaneric.

 It's been a big year for corporate responsiblity. A huge oil spill, continued ructions in the financial sector, landmark decisions in the courts, and a new dawn for online companies around human rights issues. It is never easy to pick the most important stories of the year. Some get huge coverage simply because they feature big brand companies. Some hardly even scratch the public consciousness despite having major implications. In other cases, it can be difficult to determine accurately what their long-run significance will be.

But here in the Crane and Matten control room, we've put our heads together to come up with what we regards as the top 10 corporate responsibility stories of the year. These are the events that we think will have the most lasting impact on the field. But it was a hard choice - narrowly missing the cut were the 10 year anniversary of the Global Compact, the FIFA World Cup corruption scandal, Unilever's "Sustainable Living" plan, Apple's labour violations, Wal-Mart's latest announcements on sustainable agriculture, Jerome Kerviel's massive fine, and American Apparel's rollercoaster ride through 2010, among others.

But, hey, not everyone can be a "winner". So if you think we're worng, or if we've missed off your biggest story of the year, do let us know. And while you're at it, take a moment to complete our poll on the right to help us find the top stories according to our readers.Here, though, is our top 10.

1. BP's oil spill in the Gulf of Mexico
Deepwater Horizon was one of the world's largest ever oil spills, and understandably this story absolutely dominated 2010. Not only did it put a final nail in the coffin for BP's once vaunted sustainability reputation, but it heralded a major rethink about the viability of deep sea drilling. BP didn't cover itself in glory by failing to come up with a realistic remedy until far too late - and ended up picking up most of the tab, thereby putting paid to the usual assumption that pollution is simply an 'externality' of business. Really, this was the mother of all corporate responsibility crises in 2010.  

2. Google's battle for free speech
Google's withdrawal from China at the beginning of the year was a landmark decision in the battle for free speech on the web. A real clash of titans, no other story this year illustrated better the clash between government and big business around human rights issues. But Google's subsequent legal problems in Italy, where senior executives were convicted of privacy violations, demonstrated just how complicated this battle is going to be. 

3. WikiLeaks publication of the embassy cables
Who knows where this one will end up, or just what its long term significance will be for corporate responsibility? But it's hard to deny its significance as a major turning point in the fight for greater government transparency, and the contested role of the media and NGOs in bringing confidential information into the public realm. Heralded by some as the first great cyber war, the WikiLeaks maelstrom inevitably catapaulted online companies into the fray with predictably unpredictable results.   

4. Citizens United decision
The only court case to make it into the Top 10,  but according to President Obama the 5-4 decision by the US Supreme Court in Citizen's United vs Federal Election Committee "reversed a century of law" and "opened the floodgates" for corporations to play an ever greater role in US politics. According to the ruling, companies and other special interests can now spend as much as they like on influencing the outcome of elections. And why? Because despite their vast resources, companies should have rights to free speech on political matters the same as any other citizen. An historic ruling.

5. Toyota’s product safety recall
This case grabbed a lot of headlines in 2010, mostly because of the very scale of the recall and Toyota's previously unblemished safety reputation. This was a huge embarrasment for the Japanese car maker and showed up serious problems in the firm's management culture.

6. Bank bonuses 
Bank bonuses stayed in the headlines during 2010. Despite continued economic problems, huge public bailouts in Greece and Ireland, persistent unemployment, and widespread austerity measures, some banks managed to award bigger bonuses in 2010 than ever before.  No surprise that the public stayed angry with a bonus culture apparently so far removed from their day-to-day problems. But European regulators finally seemed to get the message with new guidelines released at the end of the year that looked set to dramatically change the bonus landscape across the entire continent.

Butcher in Haiti with food vouchers used to stimulate trade. Photo by DFID

7. Corporate response to the Haiti earthquake 
Few stories better illustrated the precarious role of business in international development than the corporate response to the Haiti earthquake back in January. The arrival of cruise ships full of vacationers represented for many the unacceptable face of corporate insensitivity and amoral consumerism. Yet, few denied that business had to be an essential ingredient in getting the stricken country back on its feet again. 

8. Greenpeace campaign against Sinar Mas palm oil 
Greenpeace won Ethical Corporation's campaigner of the year in 2010 for its work in combating deforestation. This was exemplified in the NGO's campaign against Indonesian palm oil producer Sinar Mas which saw them force Unilever, Nestle and others to cease buying from the company during the year. Greenpeace's spoof ad on YouTube for the Nestle chocolate bar Kit Kat went viral demonstrating how campaigners were effectively harnessing social media for anti-corporate protest. 

9. HP's termination of CEO Mark Hurd
Hewlett Packard has had its ethical ups and downs over the years, but few expected the company to follow through quite so severely when CEO Mark Hurd was found to have made fraudulent expense claims to cover up a relationship with a female contractor. Rejecting Hurd's offer to pay back the $20,000 he'd received for the claims, the highly regarded leader was ousted by the board for failing to live up to the company's code of conduct. This was an impressive commitment to ethical rules by anyone's standards. However, it angered many who thought the company was shooting itself in the foot. A tumbling stock price and Hurd's instatement at competitior Oracle showed how much pain there could be in doing the right thing.

10. India's 2G licence scandal
OK, so actually this happened in 2008, but it was only in the closing months of 2010 that the full extent of the 2G telecom spectrum licences scandal began to be revealed. In what some have called India's biggest scandal since independence, Telecommunications Minister Andimuthu Raja was forced to resign over allegations that he lost the Indian Government some $38 billion in revenues using an opaque permit system that was riven with corruption. Leaked tapes of secret phone calls with corporate lobbyists have poured oil on the fire. This could yet become India's Enron moment.

So that's our Top 10 for 2010. Doesn't make for particularly edifying reading, but it hasn't been all bad. In amongst the scandals and corruption there have been some genuine cases of ethical leadership in 2010, where companies like Google and HP have had to make some hard ethical choices that have cost them dear. No ne said corporate responsibility was easy.

Price of tap water x 2000 + plastic bottles + manufactured demand = The Story of Bottled Water

We've been meaning to write something on Annie Leonard's "Story of Stuff" online phenomenon for some time. But then we thought: why not give some real "digital natives" the opportunity to express what they think about it? So we set a challenge for a class of undergraduates at Copenhagen Business School who we knew were using our book and were about to watch some of the Story of Stuff content as part of their CSR course. Write us a review, we said, and we'll feature the best one on the Crane and Matten blog.

And so here it is - a terrific guest blog from the winner of our challenge, Camilla Marie Thiele, a bachelor’s student at CBS.

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“The Story of Bottled Water” presents a narrative of how the bottled water industry came into being by “manufacturing demand” for an unnecessary product through misleading advertisements, and how this product is effectively trashing the planet. This narrative, which is cleverly presented in animated video form with smartly drawn cartoon characters that attract the attention of adults and children alike, attempts to expose the bottled water industry and its deceptive selling practices in an effort to help us consumers see through the deception. That said, the video also points the finger at us – the consumers – who purchase these millions of litres of bottled water every year and toss them out with little regard to where those chunks of plastic pile up.

Annie Leonard, the writer and narrator, offers a compelling argument of how the bottled water industry has worked to deceive us, where that industry has strategically called into question the quality of regular old tap water and manipulated all of us into thinking that water from the tap is inferior to water from the bottle. This is part of the bottled water industry’s plot to manufacture demand with an ultimate goal of relegating tap water to just showers and washing dishes!

And, as Leonard argues, it is obvious why the bottled water industry must work to manufacture demand because it costs 2000 times more for bottled water than tap water - not to mention that tap water has been shown over and over again to be just as high quality (if not better) than bottled water. Leonard goes on to argue that this has led to the current situation where because of this manufactured demand, people around the world are spending their money on bottles of water whereas the real demand issue of access to clean tap water is grossly underfunded. And this happens while the bottled water industry is laughing all the way to the bank!

Leonard is right - that does not sound sustainable. It is time that we took back the tap.

The seven minute animated video that is “The Story of Bottled Water” is part of a wider collection of videos known as The Story of Stuff Project. Since the first The Story of Stuff video was put out in 2007, this project has become an online phenomenon clocking up over 10 million views. This figure now includes my fellow classmates and I since we viewed both the Story of Stuff and the Story of Bottled Water as part of our bachelors course in Corporate Social Responsibility at the Copenhagen Business School.

The Story of Bottled Water critically examines the environmental and social consequences of an unchallenged allegiance to consumerism by using the bottled water industry as a compelling example of the harms that can result. And it is effective because even though The Story of Bottled Water is part of an activist campaign taking on a suite of very serious issues, Leonard frames the points in a satirical and highly entertaining way. Despite - or maybe because of - the simple videos and their easy-to-understand-manner, it is a message that provides substantial food for thought for every kind of audience. And perhaps most importantly for my fellow business school students and me, The Story of Stuff provides the opportunity to really dive into the questions about the responsibilities of business, in particular the responsibility of companies that manufacture demand for products that are not even needed.

Making a product that is not needed, and then spending all of your time and energy to manufacture demand for it? Hmmmm, that sounds like a huge waste. Why don’t we call for companies to focus their time and innovative energy on meeting real demands? The world is full of a lot of really big challenges and thus there are a lot of very real demands out there that could use creative people and companies addressing them, and ultimately turn these problems into more sustainable solutions. This calls for a re-calculation of the first equation:

Real needs + innovative products + sustainable solutions = Responsible and sustainable profits.

And who knows – you might even smile on your way to the bank. So be smart and think outside of the bottle.


Camilla Marie Thiele is a bachelor’s student at the Copenhagen Business School studying Business Administration and Organizational Communication. She can be reached at cath08ae@student.cbs.dk.

The blog challenge was facilitated by Robert Strand, a PhD fellow at CBS and one of our occasional guest contributors. Thanks Robert!