More than a feeling?
Beyond CSR? Business, poverty and social justice Conference
May 22, 2006
London, UKMichael Blowfield What we know about the impact of CSR
More than a feeling?
Beyond CSR? Business, poverty and social justice Conference
May 22, 2006
London, UK
Michael Blowfield What we know about the impact of CSR
What does CSR do?
Making the earth more sustainable? Restoring trust in corporations? Reducing poverty? Upholding international human rights? Limiting corporate malfeasance? Increasing business profitability? Reducing corruption and improving public governance?
“The most manifest sign of wisdom is continued cheerfulness”
– de Montaigne
‘The cocoa trade is a European success story.’ ‘Cocoa trading is an efficient tool to overcome poverty and to reach the United Nation’s Millennium Development Goals.’ - Nestlé Major companies buy cocoa from developing countries
Poor producers benefit from huge European chocolate market
However …
… industry does not collect comprehensive data about cocoa producers
… industry has no clear methodology to quantify its impact
Major companies buy fairtrade produce from developing countries
Poor producers benefit from large European fairtrade market ‘Fairtrade is a European success story.’ ‘Fairtrade is an efficient tool to overcome poverty and to reach the United Nation’s Millennium Development Goals.’ – Traidcraft/IFAT
Some limitations
Range of issues
Who identifies the issues
Lack of systemic footprint analysis
Failure to identify key impacts
Falsification of information
Who verifies the information
Economic consequences trump ethical motivations
‘… if corporate responses to social misery are evaluated only in terms of their instrumental benefits for the firm and its shareholders, we never learn about their impact on society, most notably on the intended benefits of [corporate responsibility] initiatives.’
(Margolis & Walsh) What we want companies to tell us …
what companies want,
what they are doing to achieve those ends, and
whether we can believe what they claim.
(Mitnick)
Framework for understanding what we are being told
Big picture information
Environmental impact
Social impact
Economic impact
Framework for understanding what we are being told
Big picture information ‘When growth was easier, this idea of simply ignoring critics was okay. [But] as the share price slows, you have to get to the point [where you take social and environmental issues seriously].’
Lee Scott, CEO, Wal-Mart Business case
Framework for understanding what we are being told
Big picture information Improved knowledge about how to monitor labour conditions amongst suppliers;
Improved knowledge about what to monitor, and what the elements are of the chains (e.g. that there are homeworkers and smallholder farmers as well as large factories and commercial farms who are parts of the supply chain);
Raised awareness of labour rights issues;
Influence on legislation (e.g. ETI played an important role in the UK Gangmasters’ Act);
Increased overall level of monitoring of overseas’ suppliers; and
Enhanced capacity of companies and others to implement voluntary labour standards. Business case
Business attitudes, awareness and practices
Framework for understanding what we are being told
Big picture information Business case
Business attitudes, awareness and practices
Impact on other stakeholders
Framework for understanding what we are being told
Big picture information Business case Business attitudes, awareness and practices Impact on other stakeholders Impact on CSR
Framework for understanding what we are being told
Big picture information Business case Business attitudes, awareness and practices Impact on other stakeholders Impact on CSR
Where to next?
Emerging initiatives
Enhanced Analytics Initiative
Social Footprint
TrueVa
Is it in anyone’s interest?
Defining the magic number
Michael Blowfield More than a feeling? What we know about the impact of CSR
Beyond CSR? Business, poverty and social justice Conference
May 22, 2006
London, UK
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