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Along the Road to Corporate Social Responsibility
Over the past decade there has been a growing awareness of the role that corporate enterprises can play in promoting public good. Pressures from a variety of stakeholders--customers, employees, investors, activist organizations, to name a few--have led many businesses to adopt more responsible practices relative to the environment, employee welfare, community economic impact, and a range of other issues. And there is growing evidence that practicing corporate social responsibility (CSR) may actually benefit a company's bottom line. For instance, in its "Introduction to Corporate Social Responsibility," San Francisco-based Business for Social Responsibility cites evidence of increased financial performance, reduced operating costs, and enhanced brand image among a number of other benefits corporations derive from socially responsible practices.
Given the multi-national operations of so many modern corporations, it is inevitable that corporate social responsibility has taken on global dimensions. Recently, The Sophist caught up with Dan Gertsacov, general manager of Forum EMPRESA, and one of the leaders of the growing global CSR movement. Forum EMPRESA, headquartered in São Paulo, Brazil, works to strengthen and help establish national and regional business organizations committed to social responsibility. We asked Dan to tell us more about the organization's work and his views on corporate social responsibility.
Sophist: Why is there a need for an organization like Forum EMPRESA?
Dan Gertsacov: Although the increase in hemispheric trade and economic integration have brought the Americas closer together and generated many tangible benefits, serious questions have also been raised about the social and environmental impact of this trend and its contribution to the increased stratification of our societies. During this period of time, privatization and lack of confidence in government has diminished the role of the public sector and an emerging independent sector has begun to recognize the possibilities and value of collaborative efforts with the business community.
If we are to achieve economic prosperity, social justice, and environmentally sustainable systems of commerce throughout the hemisphere, we need to transform many traditional business practices so that companies generate employment and profits in ways that benefit the broader society. This involves developing, disseminating, and supporting new business models that enable companies to be successful via a triple bottom line approach to their economic, social, and environmental impacts.
Forum EMPRESA and its member organizations have been created to focus on supporting these new business models, so that a culturally appropriate definition of corporate social responsibility can be defined throughout the hemisphere, by local business and community leaders.
Sophist: How do you and your members work with the private sector to achieve your mission? Is the private sector receptive?
Dan: We designed Forum EMPRESA as a hemispheric network of national business organizations promoting corporate social responsibility, providing information, products and services to affiliated companies and facilitating cross-sector collaboration. EMPRESA works with more than 2,000 affiliated companies throughout the region, making it easier for these companies to understand social responsibility issues, standards, and best practices throughout the Americas. Although we believe we are still at the beginning of a trend towards a mainstream engagement with these issues, Forum EMPRESA's affiliated members currently have combined revenues that account for more than 20 percent of the gross domestic product of the western hemisphere.
Sophist: How is the world or how are the Americas different 5, 10, 20 years from now as a result of EMPRESA's work?
Dan: Today, of the world's 100 largest economies, 51 are individual corporations. This trend will most likely only increase into the future. We believe that we are laying the groundwork so that there will be local resources available for companies--whether small or large, national or multinational--that will be able to be commercially successful in ways that demonstrate respect for ethical values, people, communities, and the environment.
Sophist: What is your main advice to those who want to promote corporate social responsibility?
Dan: I have three pieces of advice:
- Don't reinvent the wheel. There are already many organizations out there that focus on promoting CSR, either as a whole or in the different aspects that the concept envelops. For information, resources, and ideas to understand the field, its aspects, and the main players, visit our Web site (http://www.empresa.org/) or, for English-only information, our U.S.-based member, Business for Social Responsibility (http://www.bsr.org/).
- Decide if you will be the carrot or the stick. There are many ways to affect change within companies, with each having its positives and negatives. The role that Forum EMPRESA and its partners play is one of a resource to help companies understand and engage these issues, but there are as many or more groups, such as Greenpeace and even more militant groups, who are also effective in influencing corporate behavior. One is not any better than the other, but rather both are important and necessary.
- Practice what you preach. Before hoping to promote these issues, you need to understand how you can implement the change that you seek from companies. If your organization has an effective volunteer program or recycling effort or diversity initiative, that is the best place to start from in preaching to others. As Gandhi once said, "You must be the change you want to see in the world."
Sophist: Do you see the Internet and e-learning as important tools for achieving the goal of corporate social responsibility? How are they most helpful?
Dan: We believe the Internet and e-learning are incredibly important tools to help us accomplish our work; they, however, are just tools, and, just as a hammer or a screwdriver, can only be effective as the people who are utilizing them. Technology has provided an access to information and resources that was once unimaginable, but this will never replace the importance of personal relationships and leadership. That being said, given the hemispheric nature of our work, we intend to use the Internet and e-learning as much as we can to achieve the kind of society and economy that will be sustainable for the generations that follow us.
The Sophist invites you to share your thoughts about corporate social responsibility and the roles that nonprofits can and do play in encouraging sustainable, responsible business. Send your thoughts to sophist@isoph.com.
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