Everywhere. Seems like everywhere I look, more and more is being written about corporate social responsibility (CSR).
I just googled "corporate social responsibility" and was given 1,890,000 results in just 0.15 seconds.
Read this in Andy Rooney's "voice": "I can't help but wonder if there
would have been more links, or better links, if Google had just taken a
second or two longer in their search."
Two weeks ago the Economist had a special feature on the subject (read Marcy Scott Lynn's blog for a thoughtful take on this feature). Information Week even posted an article on the topic recently.
What's the Difference between Global Corporate Citizenship and CSR?
I just googled "corporate global citizenship" and was given 20,700 results in .12 seconds.
Ok, that's one difference. :-)
Within this search there was a link to the World Economic Forums' Global Corporate Citizenship Initiative. This led me to an article in Foreign Affairs by Klaus Schwab, the Founder and Executive Chairman of the World Economic Forum.
A few quotes:
"Many business leaders today consider it critical to engage with shareholders, the communities in which their companies operate, and others affected by and interested in what they do."
Ok...not new news to anyone around here....but read on....
"The diverse activities needed to respond to these expanded duties are widely referred to by the catchall phrase "corporate social responsibility"....blanketing these various responsibilities with the single term "corporate social responsibility" is an oversimplification that has led to a great deal of confusion."
Uh oh....that may be getting controversial...yet, there is more...
"It is necessary to distinguish between the different types of corporate activities, so that the work companies do to engage in society is fairly recognized and appreciated....a better understanding of engagement requires separate definitions for corporate governance, corporate philanthropy, and corporate social responsibility as well as for an emerging element: corporate social entrepreneurship..."
Aaahhh....here comes the zinger:
"...a new imperative for business, best described as 'global corporate citizenship,' must be recognized. It expresses the conviction that companies not only must be engaged with their stakeholders but are themselves stakeholders alongside governments and civil society."
To some that may seem like a tall order. I for one believe it is spot on. It suggests much more than an inwardly focused, reports-driven, arms-length engagement obsessed with "the world in and around the corporation". Instead this means you engage both internally and externally with stakeholders, partners, and citizens to tackle the serious problems that matter most on a global scale.
Like a good neighbor--without getting personal--you get involved to make positive change.
My Vote is for "and"
Klaus Schwab goes on to develop his argument and framework providing these definitions for his "five core concepts":
- Corporate Governance: the development and implementation of internal programs to promote ethics, moral standards, and socially acceptable practices.
- Corporate Philanthropy: cash contributions; grants; donations, including salary-sacrifice programs and the giving of products; services; and investments.
- Corporate Social Responsibility (CSR): addresses the wider financial, environmental, and social impact of all that a company does.
- Corporate Social Entrepreneurship: the transformation of socially and environmentally responsible ideas into products or services.
- Global Corporate Citizenship (GCC): goes beyond the concepts of corporate philanthropy, including social investing; corporate social responsibility; and corporate social entrepreneurship in that it entails focusing on "the global space," which is increasingly shaped by forces beyond the control of nation-states.
Klaus Schwab advises that "when engaging in global corporate citizenship, companies should get involved in areas and ways in which they can contribute meaningfully." It is a long term investment practice, that involves addressing a particular global problem with thought leadership and/or concrete action.
I like that. Thought leadership......and.....or.....concrete action.
My vote is for "and".
Klaus' Final Thoughts
Schwab ends his article with three points:
- Corporations must engage on global issues while understanding that the business community cannot solve them on their own;
- Global corporate citizenship must align with a company's specific capabilities and with its business model and profit motive to be meaningful and effective; and
- Global corporate citizenship should never be undertaken from a defensive or apologetic position.
So...we must collaborate, and its imperative to align with corporate strategy. Got it. Klaus' third point is significant as it asserts citizenship should be an enlightened activity. It recognizes the role corporations play in the global community. It is kinda like an uber-ying-yang-sustainability-thingy where what's good for the planet is good for business and vice versa.
And not only is that a good thing, but it is the right thing to do.
So What do I Think?
Some have tried to convince me that CSR and GCC are really the same thing.....or that GCC is unclear and lacks the certainty and direction of CSR.
To this I say: "no way!"
GCC has always seemed bigger than CSR. Not better....not more important....just bigger.....broader.
Where CSR is a reporting function that provides guidelines on how a corporation and its employees should engage within the communities in which it operates, GCC takes the long view and addresses the serious questions that impact the sustainability of the enterprise and the planet. It respects the interdependence that exists between the corporation and the global community. One can't last very long without the other. And when driven by this view, the corporation that practices GCC engages in changemaking through thought leadership and/or action (remember...I voted for "and")....and it recognizes that this can only happen through collaboration and engagement.
So..... Pick a serious global cause. Speak out...provide concrete action. Collaborate.
Hmmmm....sounds kinda like: Innovate. Act. Share. :-)
For Sun, our commitment to GCC and CSR---indeed each of the five core concepts Klaus describes---remains steadfast and resolute. Always has been....always will be.
P.S. Sorry no pics this entry.
