EC LCCGE Debate on Initiatives 29 06 09
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Ethical Corporation and the LCCGE hosted a roundtable debate on global CSR initiatives, standards and guidelines, June 2009. See www.ethicalcorp.com/initiatives for more research findings.
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EC LCCGE Debate on Initiatives 29 06 09
- 1. Global voluntary initiatives Welcome to the Ethical Corporation and the LCCGE’s first small discussion group Global voluntary initiatives, standards & guidelines 29 June 2009
- 2. Global voluntary initiatives Why is this topic important for CSR? Too many initiative options? A new breed of organisations Cross-initiative membership Teething problems Rapid growth in membership More developed understanding of social and environmental issues expulsion
- 5. Global voluntary initiatives Key findings: SNAPSHOT & TRENDS
- 6. Global voluntary initiatives Key findings: TRENDS
- 13. Global voluntary initiatives GUIDE TO INDUSTRY INITIATIVES IN CORPORATE SOCIAL RESPONSIBILITY Your guide to selecting the right multistakeholder initiative for your company If you would like internal training, or to be added to our mailing list, please send me an email at Pam.Muckosy@ethicalcorp.com or visit www.ethicalcorp.com/training
Notes de l'éditeur
- Common characters among all we analysed and spoke to include: wide range of corporate members, contain mechanisms for integrating perspectives from civil society, strive to develop a coherent, collective approach, include a work plan, and create tools and processes (such as codes of conduct, indicators, standards, protocols, verification, certification, and reporting mechanisms).
- CSR Managers we talk to are asking these questions. Very little research and guidance exists to help companies decide whether or not to join an initiative, which to join, and how to get the most from it. The ECI’s researchers have been conducting research to help answer these questions. However, today, we are interested in discussing these issues with you, and debating those tough-to-ask questions about multi-company initiatives.
- “For an initiative to be successful, it must define roles for each partner, so they work with one another.” [#4: report section 2]
- Self-regulation by corporates? Or a new form of multistakeholder regulation that is more flexible, accountable, & adaptive to changing environmental conditions and social concerns? “ Initiatives offer the possibility to create blueprints for change, allocating responsibilities among key actors, including governments, civil society and the private sector…where new trends and ideas are incubated and take root.” However, our research finds that most initiatives are now trying to be a ‘1-stop shop’ for companies seeking to make a positive impact.
- SNAPSHOT OF THE SECTOR: see printed chart for which initiatives has each symbol. These have led to a number of TRENDS that we are likely to see continue: Multidimensional focus – all-in-one initiative Focus on root causes – therefore, more attn to poverty, as demonstrated by rise in microfinance initiatives. I.e. BCI looks at blockages in the system (VCA). Problem: lack of sufficient production. Blockage: producer access to financing. Solution: MF. Momentum from the south, especially Latin America and Asia Measurement – a focus on targets Decentralisation – or based in the south, or more representative steering committee. I.e. Round Table on Responsible Soy Audit fatigue, initiative fatigue – hense the focus on root causes. Peter McAlister, ICI says that social and enviro audits generally reveal patterns, but that data is rarely informed by local factors. NGO limits and corporate frustrationss – as discussed: speed, ineffective structure (?), NGOs want greater local understanding and participation True multistakeholder, including more involvement from development agencies and local governments. Use of certification as a competitive advantage. I.e. indication of this in the coffee sector.
- 1. Organisations that manage industry initiatives provide a forum for dialogue on difficult and sensitive topics. 2. Economies of scale in CSR: industry-based initiatives develop and share common tools that are time-consuming to create. 3. Initiatives help companies to address local and global societal priorities. 4. Initiatives help communities implement their values and impact society in a positive way. 5. Initiatives bridge an operational divide between corporate stakeholders, community and government. 6. Stakeholder engagement is easier and more time-effective in groups. 7. Initiatives provide a common vocabulary and framework for discussion. 8. Initiatives help companies to think about the long-term issues. 9. Initiatives can provide access to public funding for structural changes within the industry, within supply chains or regions. 10. CSR organisations serve as portals to disseminate information on CSR issues that are critical to a specific industry in a coordinated manner. 11. CSR initiatives can build capacity through training among broad groups, such as supply chains. 12. Initiatives set common benchmarks of what is and is not acceptable through codes and/ or principles. 13. Initiatives develop common systems for monitoring, verification, certification and reporting. 14. Initiatives can build consumer confidence and manage risk to reputation better than a single company can. 15. Initiatives can provide opportunities to build consensus. Add case examples.
- Growth – Bonnie Nixon Gardiner, Direcotro of enviro sust’y at HP: “trade-off between growth and agility”. Many members makes dec-making cumbersome. - Anne Lindsay, CAFOD: “Industry initiatives have a window of opportunity to establish credibility and show commitment and results. This window of opportunity is beginning to close.” Credibility – simply self policing – as suggested by the fundamental question on slide 2 Staying current – most have a flexible framework and processes that allow them to adapt, but if consensus is required, adaptation is unlikely. Inclusivity & free riders – ie. Alyson Warhurts: “An industry-based initiative is only as strong as its weakest member.” Therefore, many organisations have begun kicking out members. I.e. ETI suspended Levis, the Global Compact removed over 600 members. Transparency & Traceability – as highlighted, only 10% promote traceability. Also, very few initiatives make their membership fees and responsibilities publically accessible. Intermediary buyers with 4C pay as low as 3.50 Euros. Consistency – lack of lesson sharing and cooperation…all-in-one initiatives…therefore meet today. I.e. the ETP integrates the ETI’s Base Code, Environmental and Community provisions and is supported and enriched by relevant national laws and collective bargaining agreements. Addressing local context - but problems vary by location Weak institutions in emerging markets Territoriality – who gets credit? Who is the spokesperson Conflict resolution – major increase in need for mediation and arbitration according to Harvard’s Jane Nelson. I.e. IFC has played a major role in mediating conflicts with the EPs. This is often beyond the capability of the initiative’s secretariat. Managing expectations – I.e. A lesson the BCI has learned is that members want to move quickly, but they prioritise relationship development and collecting baseline information. I.e. EICC (John Gabriel) stated that “The metrics [for progress] is years, not months…The electronics industry is used to moving very quickly. But launching a socially responsible supply chain is a long-term proposition.” Conflicting corporate culture – EICC has found strong differences between political orientation of the founders, also between the relative age of the companies, and the degree of flexibility.
- Effectiveness: governance, transparency, resources, ease of use and implementation, robustness and relevance.
- “For an initiative to be successful, it must define roles for each partner, so they work with one another.” [#4: report section 2]