Business is the “Monastery” of the 21st Century
Manila, Philippines – July 17, 2008
Around the world, more and more key opinion leaders from all sectors of society are reconsidering the rights, roles, responsibilities, and relationship of business to society.
This was revealed by Dr. Bradley Googins, Executive Director of the Boston College Center for Corporate Citizenship, during the CSR Conference 2008 held in Makati City.
Leading companies have already begun to change their governance, accountabilities, performance models, and modes of engagement with society to reflect social and environmental concerns.
“While these changes exist at the margin – the movement is still developing and its consequences and outcomes are still unclear,” Googins said.
Googins revealed that a new social contract is emerging wherein businesses and civil society are increasingly becoming central players in societal upheavals.
Several factors were behind this new social contract, namely: globalization, which has led to the growth of business’ power and influence; the declining capacity of government to address social changes; and the increase in independent sector/NGOs as proxies for the public interest.
“Of the 100 largest economies in the world, 51 are corporations; only 49 are countries, based on a comparison of corporate sales and country GDPs,” Googins said.
More than profits, social and environmental issues are redefining the business models of corporations around the world. More and more, transparency, ethics, governance, the environment and other buzzwords that used to be the exclusive preserve of civil society and government are creeping into corporate boardrooms.
“Companies are beginning to leverage their assets and influence for the social good and at the same time beginning to recognize it as good business,” he added.
Businesses are also recognizing that helping communities help themselves, more than philanthropy, is a more effective way of fighting social and environmental ills.
Googins also said that while CSR is already accepted in the boardroom, most companies are still in the early stages of involvement which are still reactive, such as compliance to government regulations and engagement in communities and causes (still bordering on philanthropy).
Very few companies have advanced to the “transformational” stage – such as Walmart – which has leveraged on its influence with suppliers and customers to create impact in its environmental advocacy.
Googins also added that winning CSR strategies should involve three core components: how companies engage key stakeholders to address key social issues (community involvement); how they ensure that the core functions of business create values and do not harm the society (operations); and how businesses align commercial activities to create value to the society and company (products and services).
At the ASEAN level, CSR is gradually moving from its historical focus on business philanthropy to a broader set of activities that integrate the practice of CSR into the core strategy of the organization, according to Dr. Filemon Uriarte Jr., executive director of the ASEAN Foundation.
Drawing from experiences of five ASEAN countries, Dr. Uriarte noted that the “state of CSR (in the region) is still in early stages but development indicates encouraging signs.”
Dr. Uriarte draws three major conclusions from several studies done on CSR in the region, which can also be used worldwide:
(1) A profitable or competitive business climate and wealth accumulation are necessary preconditions to initiate CSR;
(2) CSR culture in Asian business derives from spiritual and philosophical underpinnings; and
(3) CSR requires a legal framework that promotes openness, partnerships and democratization.
Around the world, more and more key opinion leaders from all sectors of society are reconsidering the rights, roles, responsibilities, and relationship of business to society.
This was revealed by Dr. Bradley Googins, Executive Director of the Boston College Center for Corporate Citizenship, during the CSR Conference 2008 held in Makati City.
Leading companies have already begun to change their governance, accountabilities, performance models, and modes of engagement with society to reflect social and environmental concerns.
“While these changes exist at the margin – the movement is still developing and its consequences and outcomes are still unclear,” Googins said.
Googins revealed that a new social contract is emerging wherein businesses and civil society are increasingly becoming central players in societal upheavals.
Several factors were behind this new social contract, namely: globalization, which has led to the growth of business’ power and influence; the declining capacity of government to address social changes; and the increase in independent sector/NGOs as proxies for the public interest.
“Of the 100 largest economies in the world, 51 are corporations; only 49 are countries, based on a comparison of corporate sales and country GDPs,” Googins said.
More than profits, social and environmental issues are redefining the business models of corporations around the world. More and more, transparency, ethics, governance, the environment and other buzzwords that used to be the exclusive preserve of civil society and government are creeping into corporate boardrooms.
“Companies are beginning to leverage their assets and influence for the social good and at the same time beginning to recognize it as good business,” he added.
Businesses are also recognizing that helping communities help themselves, more than philanthropy, is a more effective way of fighting social and environmental ills.
Googins also said that while CSR is already accepted in the boardroom, most companies are still in the early stages of involvement which are still reactive, such as compliance to government regulations and engagement in communities and causes (still bordering on philanthropy).
Very few companies have advanced to the “transformational” stage – such as Walmart – which has leveraged on its influence with suppliers and customers to create impact in its environmental advocacy.
Googins also added that winning CSR strategies should involve three core components: how companies engage key stakeholders to address key social issues (community involvement); how they ensure that the core functions of business create values and do not harm the society (operations); and how businesses align commercial activities to create value to the society and company (products and services).
At the ASEAN level, CSR is gradually moving from its historical focus on business philanthropy to a broader set of activities that integrate the practice of CSR into the core strategy of the organization, according to Dr. Filemon Uriarte Jr., executive director of the ASEAN Foundation.
Drawing from experiences of five ASEAN countries, Dr. Uriarte noted that the “state of CSR (in the region) is still in early stages but development indicates encouraging signs.”
Dr. Uriarte draws three major conclusions from several studies done on CSR in the region, which can also be used worldwide:
(1) A profitable or competitive business climate and wealth accumulation are necessary preconditions to initiate CSR;
(2) CSR culture in Asian business derives from spiritual and philosophical underpinnings; and
(3) CSR requires a legal framework that promotes openness, partnerships and democratization.