Thursday, February 11, 2010

CSR quest: Wayne Visser in the hot seat

In January, our sometime collaborator and co-editor of the A-Z of CSR, Wayne Visser set off on a 12 month, 22 country ‘CSR quest’ to talk and learn about how companies can help tackle the world’s most pressing social and environmental problems. Crane & Matten talked to him about what he hopes to achieve and what’s in his luggage.

C&M: So, what is the CSR quest and why are you doing it?

WV: In my mind it’s a bit like the Holy Grail. Is CSR (corporate social responsibility) something that we should be chasing after, and what actually is a company’s social responsibility? My experience so far is that it means completely different things in different countries. So I want to explore this variety and then capture and share some of the innovative CSR practices that are going on out there.

But why pack up all your stuff and go on the road for a year? Couldn’t you have just sent some emails?

You can only do so much with email and internet forums. Unless you meet and engage face-to-face, you don’t really capture the learning. Also, companies are just not achieving the transformative change that we need to solve the world’s problems. This is my attempt to help turn the tide.

But is flying all over the world the most responsible way of promoting social responsibility?

There’s merit to that criticism. I’m trying to make the trip neutral through carbon offsets. But I wouldn’t be doing the trip if I didn’t think the benefits outweighed the costs – and that includes the environmental costs. I’m hoping it has a multiplying effect. If you look at the impact Al Gore had on climate change awareness, it wouldn’t have happened if he’d just stayed home.

How much difference do you expect to see in terms of how companies practice CSR in different countries?

I’m learning about the various cultures and how cultural context affects CSR – in terms of religion, history, etc. And I’m particularly targeting developing countries, where the need for CSR is greatest. Often it’s where the need is greatest that the real innovation happens. So I’m looking out for some of those kinds of differences too.

Do you think you’ll be anywhere long enough to see any real differences?

I’m under no illusions that it’s anything other than a snapshot. It’s my personal wandering adventure, so it will inevitably be ad hoc. But just by interacting on the ground and meeting people face to face you do get a good sense of what’s going on.

You’ve just been to Turkey and Kenya – was there anything that struck you in those countries?

In Kenya, what was really exciting was M-Pesa, which is an initiative that has now empowered a whole country (where 80% of people don’t even have a bank account) to access financial services through mobile phones. That’s an example of where need can drive innovation. Turkey was still surprisingly immature with respect to CSR. But it has got hold of the corporate governance agenda and is promoting itself as a bit of a hub for corporate governance in the region, especially in the Middle East.

How are you going to go about sharing all the things that you pick up along the way?

I’m conducting workshops for various host institutions (universities, CSR associations and the like) and sharing what I’ve found. I’m also posting blogs and short videos of interviews that I conduct in each country. And I’m keeping a diary, so a CSR Quest book is a possibility some time in the future.

What if no one tunes in?

It will probably grow in momentum as it goes on. I have existing networks and outlets through Facebook, Twitter, Ning, so you never know what the impact of these things will be. Besides, I would do it even if only 1 person was listening; it’s a personal journey as much as anything.

You’re putting everything on the internet for free and you’re giving free talks – so how exactly are you financing the trip?

With difficulty! It’s all self-funded. I’m organizing more substantial workshops for some of the host institutions, and those are paid-for. But it’s very uncertain. I’ve got the tickets booked but its not all set-up – I’m relying on the power of the web and the networks to keep it going. So all offers to help are welcome!

You’re one month in now – how are you liking being on the road?

I gave up my flat, so I’m essentially homeless now, living out of a suitcase. It’s a mixture of tiring and unsettling, and invigorating and stimulating. As soon as I’m interacting with people on the ground it’s extremely rewarding. It’s already been worthwhile, so even if the rest of the tour would falter, I’d still feel it had been a success.

How big is that suitcase?

Just one quite large suitcase and the bag for the computer and the camera. So two bags. It’s not quite hand luggage but it’s not much.

Is there anything that you’re sorry that you had to leave behind?

Not yet. But I may regret going light on the clothes. I’ve just got one suit and 3 shirts. And I’m having to do a lot of underwear washing in the shower!

Crane and Matten are currently based in Amsterdam and Toronto respectively. Any plans on dropping in on us?

I hope so. I plan to finish the tour with a North American leg, but I’m not planning on coming to Amsterdam at the moment. If after 10 or 12 months I get an invitation and I’m up for more, who knows? By then, though, I may well need to put my feet in concrete for a while.

You can follow Wayne’s CSR Quest on the CSR International blog at www.csrinternational.org or http://csrinternational.blogspot.com/ or contact him directly on wayne@csrinternational.org

Airport photo copyright Idle Type. Reproduced under Creative Commons Licence. Wayne Visser photo courtesy of Wayne.

Wednesday, February 3, 2010

More on Google's growing political influence

When we reported yesterday on Google's recent spat with China we pointed to the growing political influence and power that the company was wielding. Anyone that takes on the Chinese Government must be pretty sure their political muscle.

One of our readers helpfully pointed us to a story by Chris O'Brien that ran in the Mercury News over the weekend, which throws more light on this trend, indicating how Google's spend on lobbying in Washington DC had mushroomed in recent years. O'Brien writes:

"In just five years, the search engine giant has gone from almost no presence in Washington to spending more money on lobbying than all but one other Silicon Valley company in 2009. And in the past three months, Google topped all other valley spenders."
The charts produced by the Mercury News show just how steep this curve has been, and how its lobbying expenditures are even starting to catch up with its fellow technology giants Microsoft and IBM:


The fact of Google's activities in DC is hardly surprising, but it is nice to get some detail behind the company's changing political status .... and to see just how much the company now sees policy makers as a key stakeholder. In a companion piece, O'Brien also takes a look at the changing face of the types of issues Google is lobbying on, and at some of the revolving doors between Google and the US government in terms of staffing. As he makes clear though, this is pretty much par for the course for a major multinational corporation - the point is not that Google is different (as it often likes to claim) but that it is essentially much the same. The big difference though is the speed of change, and the readiness with which Google has equipped itself for dealing with its political context - or as economists like to call it, the 'non-market environment'.

When we looked into our crystal ball at the beginning year, it looked likely that 2010 would be a pivotal year for Google in terms of corporate responsibility issues. There is every chance that with its growing power and the major impact it is having on industries such as media and publishing, a backlash could easily start to take off. However, the behind the scenes lobbying and the putative game-changing in China suggest that Google is reading the signs and seeking to head-off the critics before they can build up momentum. Getting this one right could be critical.


Figure copyright Mercury News

Tuesday, February 2, 2010

Google vs China: upping the ante on industrial espionage


One of the big business ethics stories of the last month has been Google's announcement in mid January of a 'new approach to China' following reported attacks on the company's IT infrastructure from inside the country. Google's announcement spoke of targeted attacks on the email accounts of known human rights activists, both within and outside China, as well as other security breaches of Google and 'at least 20 other large companies'. Whilst the announcement of this degree of hacking would have been cause for concern, the explicit link to the surveillance of advocates of human rights in China was positively incendiary. Google was not just talking about regular industrial espionage here but about state-sponsored spying for political purposes. So suddenly the company had launched itself into a diplomatic row - albeit one between a company and a government - rather than its usual commercial scrapes.

The announcement didn't just make the headlines because of Google's allegations though. The company dropped another huge bomb by declaring that it would no longer continue to operate a censored version of its search engine in China - despite being required to by the Chinese authorities. 'Over the next few weeks' the company announced, 'we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.'

Since the furor over Google's announcement blew up a couple of weeks ago, numerous commentators have offered their view on what's going on. Many have focused on Google's ongoing troubles in securing in market leadership in China, (suggesting that the human rights concerns have been used as a smokescreen behind which to withdraw gracefully from a commercial failure), while some have presented it as a belated switch to principled behavior. Some have even reckoned that Google is using the publicity around the announcement to build awareness and brand loyalty in China. Working out the motivations of the company in picking such a huge fight in one of the world's most important markets is never going to be easy.

Three things that have particularly stood out for us though in all this are these, and we think they offer some salutary lessons for the brave new world of business ethics that is starting to emerge.

1. Google the 'political corporation'. Google clearly feels big enough and powerful enough to pick a fight with one of the most powerful governments in the world.... over human rights. On the one hand, this is great in that it means that we don't have to just rely on the government to protect our human rights. Some big companies (whatever their motivations may be) may also be willing to do some of the heavy lifting from time to time (at least when when it suits them). In some of our writings, we've refereed to this as the corporate administration of citizenship rights (yes, not the catchiest phrase we'll admit, but it does the job). On the other hand, isn't this an issue that national governments - especially the US Government - should be leading on, rather than, as Hilary Clinton did, simply backing-up Google once it has broken cover. Still, whatever one thinks about this Google is clearly feeling big and important ... and perhaps also starting to feel the heat that comes with such size. It could just be getting in quick before the ethical backlash over its mammoth reach begins in earnest. With its fingers in all kinds of free speech, privacy and intellectual property issues, Google is fast becoming the essential political corporation of the 21st century.

2. One step forward, two steps back for the Global Network Initiative. The global what??! If you've not heard of it, well you're not alone. In the latest bout of Google vs China, the initiative hardly even scored a mention in the media storm. However, the GNI was launched back in 2008 to much fanfare, and was promoted as the new approach that internet companies were going to deal with censorship issues after getting their knuckles rapped by the US government for bowing to the Chinese government's demands. Well, the 'new approach' before the latest new approach of course. As a partnership between Google, Microsoft, Yahoo and a score of NGOs and academic institutions, the GNI held out considerable promise for delivering a more responsible approach to a tricky ethics problem that frankly, was not going to go away fast. Fast forward to January 2010 and GNI advocates could well point to Google's announcement as proof that the initiative is starting to have a significant effect. After all, one if its members is making a major song-and-dance about its commitments to internet freedoms. The trouble is though, no one at Google thought to mention the GNI, or suggested that it played a role in its decision. More worryingly, one of Google's main partners in the initiative, Microsoft, publicly criticized the company for it stand in China. Oops, hardly a hallmark of a strong partnership.

3. Industrial espionage goes up a level. First, spies worked for governments, just like in the old movies. Then they worked for companies ... in fact just like in the (new) movies, such as the 2009 Julia Roberts' release Duplicity. But some of the big news stories now in industrial espionage involve both companies and governments. It's a kind of semi-industrial espionage. The Google story was just the latest and best known incident of this government-business espionage, but clearly its becoming an increasingly prominent feature of the contemporary business landscape. Just this last weekend, the Sunday Times in the UK reported on a leaked British security service document accusing China of bugging, bribing, and blackmailing UK business executives in an attempt to secure commercial secrets. Notably though, here the warning came not from a multinational corporation, but from the national security service (the irony of MI5 warning against spying was not lost on many of the newspapers' readers who commented on the story). Either way though, as these incidents suggest, the stakes being played in industrial espionage have been significantly raised. The question, of course, is how best to respond ... and whether governments or companies should be leading the line.


Photo by Mykl Roventine. Reproduced under Creative Commons Licence

Thursday, January 21, 2010

Cruising to the quake?

In the aftermath of the Haiti earthquake last week a very interesting discussion on CSR has arisen. While thousands of people are suffering, lacking medical care, let alone shelter or food, cruise ships from all over the (developed world) keep arriving in Haiti, albeit it not in the direct earthquake stricken zone around Port-Au-Prince.
Many newspapers reported about this and the debate whether it is good taste, let alone ethically sensitive, to have people dining and wining in the resort of Labadee while 160 kms to the South people have hardly anything to eat for their naked survival. The case raises a typical dilemma for business ethics which shows how important moral imagination and a sound command of ethical theories can become for a company.
Royal Caribbean International, one of the companies whose ships still dock in Haiti, takes a clear utilitarian stance on this. Their CEO was quoted saying:

"My view is this -- it isn't better to replace a visit to Labadee ... with a visit to another destination for a vacation. Being on the island and generating economic activity for the straw market vendors, the hair-braiders and our 230 employees helps with relief while being somewhere else does not help. People enjoying themselves is what we do. People enjoying themselves in Labadee helps with relief. We support our guests who choose to help in this way, which is consistent with our nearly 30-year history in Haiti."

Indeed, cruise liners bringing business to the island is resulting in the ‘greatest good for the greatest number’, compared to them stopping it or going elsewhere. But it seems to be more a question of fairness and equity, which raises the eyebrows of some commentators. In some ways, the strongest argument comes from what we refer in our book to as the ‘postmodern’ view on ethical questions, as one blogger put it:
"To me it's like going to a funeral and singing and dancing around the casket."
Yesterday in the Canadian News they showed thousands of people sitting in the port of the capital but unable to leave the country because of lack of fuel. Watching a white cruise ship with a nine hole golf course swiftly gliding by is not what these people need right now. Maybe the fact that people ‘enjoy’ themselves in poor countries is a problem in the first place. The earthquake just makes this unfair and unequal distribution of wealth on the globe just that little bit more visible. Even on a normal day in Haiti, there is still this grotesque gap between luxury on the ships versus abject poverty starting meters away from the fence of the resort in Labadee. Why else would one need to guard it by armed security even on a normal day?

For companies such as RCI these are no easy times. But they are in the moral maze of solving this dilemma, as it were by default. And one cannot say they are not trying, having also pledged $1m in food relief which they will deliver with the help of a local NGO. Engaging in blogs, working with local players and to find a pragmatic solution on the ground, reflects some lessons in discourse ethics. At the end of the day, RCI's behavior just reflects the demands of their stakeholders, most notably their customers: only very few of RCI’s customers are reported to have cancelled their cruises...
(We would like to thank our colleague Nancy Sutherland at Schulich for alerting us to this story.)

Monday, January 11, 2010

Avatar – or the perils of stakeholder dialogue

Let’s admit it, Crane and Matten so far haven’t ventured too far into the Science Fiction genre in the movies they picked for the book and their classes. This might change though now with James Cameron’s (the guy who made ‘Titanic’) latest movie ‘Avatar’.

Before we go on, it’s fair to say that it takes the (nerdy?) eyes of a business ethics professor to see all sorts of things in this piece of celluloid which we don’t think has been the prime intention of its creators. In the main, this film (watch it in an IMAX, if at all possible) is a wonderful visual experience, with beautiful 3D-shots of fantastic landscapes, fairytale animals and a really stunning screenplay. No wonder then the film has netted US$1.3bn in the first two weeks at the box office and is already the second highest box office hit in history. It is 225 minutes of forgetting everything and just being swept away in a dream-world – what a fun it would be to ride these magic birds and fly through a universe of translucent flowers, bewitched trees and flying islands of jungle landscape…

This said then there are a number of things worth commenting on from a business ethics perspective. First and foremost, the human invaders of the planet ‘Pandora’, where those native ‘Nav’is’ are living is no one less than an evil mining corporation in its pursuit of the precious, energy yielding mineral ‘Unobtainium’. Unfortunately, the mineral is buried beneath the monstrous tree which is the main living space of the Nav’i tribe. This is funny in itself. No longer governments or galaxies are clashing here – no, it’s a private corporation, helped by a monstrously armored crowd of private security contractors.

But the scientists of the corporation have devised means to communicate with the aliens: they have developed a machine which allows some humans to assume the body of the aliens and enter their territory with the mission of convincing the natives to leave their living space. As things go however, the main hero of the film, after entering the world of the Nav’i, gets to like them just a bit too much, falls in love with one her warrior princesses and ultimately changes sides. In some ways one could say, a botched approach to stakeholder dialogue.

Now this has happened before. Quite a number of CSR activists, NGO leaders and other antagonists of global capitalism had their initial career in business and changed through exposure to its impacts on the environment, indigenous populations etc. It also shows that approaches to stakeholders which just intend some manipulation of those groups, are ultimately doomed to fail. And that’s where the movie goes on to, until the final battle sets the humans back and sends them to where they had come from.

Don’t get us wrong; none of this we think is what the film is really about. And that’s ultimately a weak point of the movie – in our view. The story is just too full of distracting details. That includes the somewhat awkward love story, the references to imperialism, the Iraq war, global terrorism, opaque religious symbolism, or the general anti-technology message – in a film, no less, which delivers this message through the most advantaged technology which cost some $250m to produce.

So its mostly fun to watch, and entertaining is what the film does really well. Or, as David Denby put it in The New Yorker: “The movie’s story might be a little trite, and the big battle at the end between ugly mechanical force and the gorgeous natural world goes on forever, but what a show Cameron puts on!”