Social Networking for Social Concerns

Last Thursday I went to the NYC launch of GOOD magazine and spent an hour or so feeling totally overwhelmed by the thousands of cool people it attracted - and somewhat intrigued but the awesome artwork at the Emergency Arts venue. It was fun, but it seemed too crowded to actually meet anyone.

But on my way out, someone suggested sharing a taxi - and that someone turned out to be Alex Saltzman, a slightly-older-than-average undergrad at Princeton University, which happens to be my alma mater. He and his friends were behind the Worm Poop post I made a few weeks ago, and are currently engaged in creating a social networking website for socially-, environmentally- and ethically- oriented members of "Generation Y" (defined as those currently aged 18-25).

The site is called Rethos, and it's still under development. The name is derived from "ethos" but is supposed to connote something of a re-emergence or a re-definition of social values, presumably by this new and more activist-oriented generation that grew up in the post-9/11 climate of terrorism and war.

I thought the idea was great, though I have to admit that I'm becoming frustrated by the separate bubbles of communities being created in this area. Harvard has it's own closely-networked group of leading lights that show up at the same conferences and executive education programs. Net Impact is a similar thing for the under-35s of the business world. Starting Bloc is like an undergrad version of Net Impact. And GOOD magazine is appealing to hip and activist-oriented twentysomethings - perhaps just slightly older than the Rethos / Starting Bloc crowd, but not business-y the way Net Impact is.

There's a real need for these group to not only network among themselves, but also across ages and disciplines. The Harvard crowd constantly laments the fact that the same people have been talking about the same things for several years now, with few (or no) rising leaders in sight. And the business-types of Net Impact recognize that they need to reach upper management and to also connect with other sectors - for example in bringing NGO issues to light. And yet, these different groups don't seem to have the time or the means to meet each other.

A social networking site that could somehow connect all these groups, and encourage concrete action among them, would be an amazing resource.

It's not always about business

I was talking to Andy Savitz the other day, and I mention his name because he just came out with a book called The Triple Bottom Line that has debuted to great acclaim - and that's evidence he has some sensible things to say on the topic of CSR (or whatever we now call it).

He made the point - not a radical or new one - that there are some problems in the world that are not best left to business. In particular, sometimes the role of government is actually quite useful in solving social and environmental problems. Or at least is should be.

To that end, anyone who cares about these problems (pollution, poverty, and all that) should not only spend some time ranting at corporations and making sure they shop/invest/work in responsible ones, but should also put some energy into engaging in the political process.

I know. One more thing to do. But he's right - it's important. Which is why I dragged myself a whole 2 blocks today to vote in the Democratic primary for governor of Massachusetts - only to find out that I've failed to register in my not-so-new-anymore neighborhood. But now I know, and knowing is half the battle, and I have my mail-in registration card. When it's time for the real gubernatorial vote, I'll be ready.

And the one thing I want to encourage today is that everyone else who cares about these same issues should engage at least a minimal-to-average level in the political process (with more engagement being even better). And even the bare minimum should include voting.

If, like me, you found it really hard to get excited about sub-national candidates, check out this tool and see if you end up engaged sheerly for the entertainment value:
http://www.boston.com/news/special/bigarticles/campaign_finance/page2.html

Happy voting!

Down with "CSR"

I think it's finally happened. I'm ready to abandon the term "Corporate Social Responsibility."

In the mid-90s, the "CSR" term hadn't yet taken hold. Once it did, it felt like the field was more unified and more accepted. The bandwagon had a name, and so I was more able to join it.

Sure, the term has its weaknesses - I've heard criticisms of all three words:

• Corporate (what about other institutions? and the role of government?)
  
• Social (and the environment? what about internal stakeholders?)
  
• Responsibility (shouldn't we talk about opportunity instead? and how about going above-and-beyond?)

But I've stuck by the CSR term, because I like that various groups had rallied around it. Over the past year, however, those at the top of the field seemed to be shying away from it. Now, perhaps the people using it are a different sort of people.

The clincher was this line from a New York Times article yesterday ("Capitalism With Heart"):

"It sounds like the 'corporate social responsibility' mantra used by executives trying to be hip -- and impress young trophy wives' friends -- by financing politically correct boondoggles with shareholders' money."

That wasn't really what I had in mind.

So, what's the next big term? The article I just mentioned uses the term "Compassionate Capitalism" - and if you read it in the New York Times, it must be real and it must be big, right? (I only wish I were entirely joking).

That may, in fact, be the best term on offer. There are the advantages of looking not just at what companies do, but at how our entire market system works to either further or hinder the greater good. And compassion has a wide connotation - social, environmental, ethical, etc. Finally, if liberals can get past the connotation of "compassionate conservativism" (a big if) then this term might help bring the red states to the cause-formerly-known-as-CSR.

So, do we have a winner?

Other candidates: corporate citizenship, conscious capitalism, sustainability, corporate social opportunity.
Subsets: business ethics, philanthropy, socially responsible investing, corporate governance, environmentalism, bottom of the pyramid.

Executive Excesses

In an article available at SocialFunds.com, outsized CEO salaries are put into perpective in an article called "The Ratio of Greed: Numbging Numbers of Executive Excess."

Among the key metrics cited:

• CEO-to-worker pay: 411-to-1
• Since 1990 (adjusted for inflation): CEO pay rose almost 300 percent, profits increased a little over 100 percent; average worker pay rose 4 percent; the minimum wage decreased almost 10 percent
  
• If average workers had experienced the same raises as CEO's, they would be making $108,000 intead of $28,000 and minimum wage would be $22.61 instead of $5.15.

Hottest Eco-Model

In Grist Magazine's first-ever superlatives, Summer Rayne Oakes was annointed the Hottest Eco-Model; according to Grist, "the choice was easy; she pretty much owns the category."

Oakes started out as an activist and a scientist, and (since she was born gorgeous) decided that modeling might be the best way to communicate her messages to a mainstream audience. She only models organic or recycled clothing, but opts for whatever is sexy rather than stereotypical ponchos and clogs.

Reading about Oakes reminded me of yesterday's post, in which the SSIR lamented a lack of revealed preferences (i.e. though buying behavior) by consumers who are ostensibly interested in environmental and social issues. That article mentioned lackluster results so far of the [Red] brand, created and marketed by U2's lead singer Bono.

Let's hope that Oakes can make ethical consumerism sexy where Bono seems to be struggling. Check her out (pun intended) at:
http://www.summerrayneoakes.com/home.htm

Two weeks ago in CSR

I was away on business last week, but here is the (belated) summary of last week's news:

Global Happenings

Malaria Adversely Affects Over 70 Percent of African Business
07/27 Voice of America
A new study says over 70 percent of African business are adversely affected by malaria, with nearly 40 percent reporting serious consequences. The report – Business and Malaria: A Neglected Threat – was released Thursday by the Global Health Initiative of the World Economic Forum.

Hong Kong Smog Hurts Business
08/28 Wall Street Journal
The smog hanging over Hong Kong is threatening more than the views of its famous setting: Air pollution is making the city less attractive to foreign investors and is driving some executives out.

Behind the Loom
Sep/Oct Utne Magazine
Rugmark is a six-country international nonprofit whose smiling rug label has been assuring customers since 1995 that their purchases didn't cost any kids their childhoods. Each label carries a number that can be traced back to its origin loom in India, Pakistan, or Nepal.

Green News

TerraPass launches partnership with Expedia
08/28 TerraBlog
Expedia and TerraPass have partnered in a program to offer carbon-offsetting Flight TerraPasses to travelers when they buy plane tickets.

Dual-Fuel Vehicles Open Mileage Loophole for Carmakers
08/31 New York Times
As car companies promote E-85 as an alternative to gasoline, they are benefiting at the same time from a loophole that allows them to receive credits toward environmental standards when they sell flexible-fuel vehicles.

Fill Up On Corn If You Can
08/31 New York Times
To assess just how efforts to help E-85 catch on were going, a New York Times reporter drove through the region where its popularity is greatest. He found that despite all the good will, success is far from assured.

How green is your Apple? E-waste
08/26 The Economist
Not very, according to Greenpeace. Disposing of computers, monitors, printers and mobile phones is a large and growing environmental problem.

Employment, Investing, Consuming

Green Century Equity Fund Seeks Shareowner Okay to Continue Tracking Domini Social Index
08/30 SocialFunds.com
The fund also announced its intention to lower the expense ratio for the fund with aim of enlarging the fund’s investor base.

How Insurers Are (and Are Not) Tackling Climate Risk
08/30 SocialFunds.com
A new report from Ceres identifies almost 200 activities recently introduced by insurers to address climate change, but calls for further industry action.

The Future of Labor Unions: People of Color and Women
09/01 Diversity Inc
Can labor unions survive? Not if their leaders don't represent them.

Fulla Flap
Sep/Oct Utne Magazine
A Muslim Barbie has her own trendy accessories and cultural baggage.

'Small-Marts' take on Wal-Mart
08/30 Fortune Magazine
Small, local groups nationwide are fighting back against big business and helter-skelter globalization.

CSR Strategy and Education

New publication guides small businesses on a better business journey
08/29 Business in the Community
The UK Small Business Consortium launched a guide to help small and medium sized businesses find their way on a better business journey.

Communicating business responsibility - Learning a new language
08/31 Ethical Corporation
Company chiefs need to do more than just give the speeches prepared by their corporate responsibility departments. They need to properly engage with their stakeholders and not just pay lip service.

Business and short-termism - Why investor taxation is the solution
08/11 Ethical Corporation
The Business Roundtable (together with the CFA Centre for Market Integrity) just released a report that finally takes seriously the problem of short-termism that plagues American business and finance. The Conference Board published a similar report in April. It’s about time.

Regulation

California Plan To Cut Gases Splits Industry
09/01 New York Times
California is once again at the forefront of the nation's environmental policy, with a far-reaching pledge to curb carbon emissions by 2020. But the deal struck between Democratic legislators and the Republican governor, Arnold Schwarzenegger, has divided businesses and industries in California.

California businesses face cap on greenhouse gas output.
09/01 Financial Times
Businesses in California began to grapple with the need to reduce their greenhouse gases yesterday following a deal on legislation that would mean mandatory caps on emissions for energy-intensive industries in the state.

Congressman aims to eliminate SUV tax breaks
08/30 MarketWatch
Tax breaks benefiting buyers of sports-utility vehicles fly in the face of a good energy policy and are costing American taxpayers billions of dollars a year, according to a report from Rep. Edward Markey.

Fowl Play
08/04 Forbes
If you can't nail a polluter for stinking up the countryside, go after him over a disclosure technicality. Is this fair?

Corporations in the News

India: Behind The Scare Over Pesticides In Pepsi And Coke
09/04 BusinessWeek
Fearless researchers nail two big, bad American multinationals selling toxic soda to India's masses? Get Bollywood on the line! But are these companies being unfairly targeted because they're outsiders?

Comment: BP is deserving of censure, but not a vendetta
09/01 Financial Times The fiasco in Alaska could spell serious trouble for BP, as the US Congress begins hearings. It is easy to cheer them on and urge them to take drastic actions against this corporate wrong doer. We should move beyond this knee-jerk reaction.

How Many Lightbulbs Does it Take to Change the World? One. And You're Looking At It.
Sept. Fast Company
For years, compact fluorescent bulbs have promised dramatic energy savings--yet they remain a mere curiosity. That's about to change.

Reports out this week

• SAS Group: http://www.sasgroup.net/SASGROUP_IR/CMSForeignContent/2005eng.pdf

• The Ministry of Defence (UK) has published its second Sustainable Development Annual Report, which can be found at: www.mod.uk/DefenceInternet/AboutDefence/WhatWeDo/HealthandSafety/DSC/DsandcEnvironmentSustainableDevelopmentDocumentLibrary.htm

• Ford Motor Company releases 2005/6 Sustainability Report: http://www.ford.com/go/sustainability

"The Other CSR"

There's an amazing article in the Fall 2006 Stanford Social Innovation Review - it's called "The Other CSR" because in this case CSR stands for Consumer Social Responsibility.

The article deals with the fact that we as consumers spend a lot of time bitching about what companies do wrong, and we answer surveys saying we'd choose and even pay a premium for ethically-produced goods and services - but the good intentions stop there. In making purchases, people go for the cheaper product and forget about all those complicated and expensive social issues.

This is something I've been harping about endlessly for the past few years, but SSIR does a much better job of it. If you read one CSR article this week, make it this one: http://www.ssireview.org/articles/entry/the_other_csr/

New Master's program

I've often bemoaned the continuing lack of graduate degrees in CSR, but here's a one (online) program with degrees in both Social Enterprise and in Corporate Social Responsibility:
http://www.mes-d.net/Html/index.html

Please note that you can toggle to the English-language version using the link on the upper right-hand side.