4 - Can Csr Be the Driver of Change - Jonathon Hanks

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    Incite Sustainability

    Session 4: Consumer Rights and Corporate Social ResponsibilityCan CSR be the driver of change?

    Jonathon Hanks

    Incite Sustainability (www.incite.co.za)

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    Session 4: Consumer Rights and Corporate Social ResponsibilityCan CSR be the driver of change?

    Session 4 - Aims

    Can CSR really be the driver ofrenewed trust between consumers and business?

    Are consumers really interested in CSR and is it really changing business behaviour?

    Is a CSR approach sufficient to deliver sustainable development on a global level?

    How can consumer groups inspire and empower consumers to achieve sustainability?

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    While trust in business is understandably low

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    we nevertheless need to recognise

    and harness the power of business

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    To do so, we need to appreciate what drives business

    We should acknowledge that there is only one bottom line in business, and

    that to suggest otherwise results in the issue being marginalised

    Terms like triple bottom line

    (TBL) and environment, social

    and governance (ESG) have

    played their roles as booster

    rockets and willfall awayas

    new forms of integrated

    accounting and reporting take

    over.

    John Elkington et al(2010).

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    SUSTAINABILITY

    An approach to creating value that sustains or enhances the

    systems on which that value depends.

    We need to embrace this thinking that is informing the

    shift globally to integrated reporting

    It is becoming increasingly apparent that the success or failure

    of organisations is dependent on their ability to create or

    sustain value without depletingthe capital assets financial,

    human, manufactured, social or natural on which that

    value depends.

    South African Discussion Paper on Integrated Reporting

    Financial andmanufactured capital

    Human and social capital

    Natural capital

    www.theiirc.org

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    CreatingShared Value, Harvard Business Review; Michael E.Porter and Mark R. Kramer, Feb 2011

    We need to embrace this thinking that is informing the

    shift globally to integrated reporting

    This shift is reflected in the concept of shared value: creating economic value in a way

    that also creates value for society by addressing its needs and challenges

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    We need to encourage (and challenge) progressive business leaders

    who recognise the link between societal and economic value

    Success will require completelynew business models.

    It will demandtransformational innovation in product and

    process technologies

    Interestingly too, the challenge is likely to encourage a much

    more collaborative form of capitalism.

    Paul Polman, CEO Unilever(2010).

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    acknowledging the role (and limitations) of C/SR initiatives

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    We need to lobby for progressive policy reform by government

    incite |nst|

    verb [ trans. ]

    encourage or stir up (unlawful behaviour)

    urge or persuade (someone) to act in an unlawful way: he incited loyal subjects to rebellion

    Addressing the system flaws

    Systematic under-pricing of the true costs and risks of

    our activities

    Pervasive application of the worst sort of business and

    ecological values characterised by a profligate and

    hedonistic approach to economic life

    The tendency of markets to privatise gains and

    socialise losses

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    And we should acknowledge the responsibilities (and significant

    challenges) for the consumer movement

    The situation we face has arisen not from the old working class

    vice of excessive copulation, but from the modern middle class

    vice ofexcessive consumption

    In practice green consumerism has failedto induce significant

    inroads into the unsustainable nature of production and

    consumption and is unlikely ever to do so

    By shifting responsibility on to individuals and reinforcing the

    sacrosanct nature of consumer lifestyles, green consumerismthreatens to entrench the very attitudes and behaviours that

    have given us global warming.

    Clive Hamilton

    I

    = P xA

    xT

    EnvironmentalImpactis a function ofPopulation, Affluence andTechnology

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    Empowering Tomorrows Consumers

    Empowering consumers forinteresting times

    Source: The NaturalStep (2004) andErwin Laszlo (2006 ) amended

    Transition

    2012 -

    We are here

    Breakdown:

    Runaway warming?

    Escalating violence?

    Large-scale extinctions?

    Breakthrough:

    Global co-operation

    Radical innovation

    Economy operates

    increasingly within

    ecological limits

    Transformation?

    2020 -

    Breakpoint

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    A closing thought

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    Thank you

    Jonathon Hanks Director Incite [email protected]