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February 25, 2010June 17, 2012

Corporate Sustainability and the Individual

Corporate Sustainability and the Individual:

Understanding What Drives Sustainability Professionals as Change Agents

Paper by Wayne Visser and Andrew Crane

Abstract

This paper looks at what motivates sustainability managers to devote their time and energies to addressing social, environmental and ethical issues. It is rooted in the literature on the role of individuals as change agents for corporate sustainability, in particular in their capacity as environmental or social ‘champions’. The paper presents in-depth research among sustainability managers, providing a rich, nuanced understanding of different types of sustainability change agents. It identifies four such types – Experts, Facilitators, Catalysts and Activists – and uncovers the pivotal role of values, inspiration, expertise, empowerment, strategic thinking and social contribution as sources of meaning for these purpose-inspired managers. The findings deepen our understanding of the psychological dimensions of corporate sustainability management, and provide a useful tool for improving individual and team performance, enhancing recruitment and retention of sustainability talent, and developing more effective organisational leadership for sustainability.

Keywords

corporate social responsibility, corporate sustainability, change agents, environmental champions, meaning in life, psychology, sustainability managers, values

Introduction

As social, environmental, and ethical issues like persistent poverty, climate change, financial market instability and economic globalisation continue to move up the geo-political and economic agendas, corporate sustainability is increasingly touted as a timely and necessary response by business (Dunphy et al., 2003; Shrivastava, 1995; Zadek, 2004). Viewed in this way, sustainability can be thought of as a conceptual framework and practical mechanism for creating change that results in improved social, environmental and ethical conditions (Van Marrewijk, 2003).

Attention to corporate sustainability has tended to focus on how change can be achieved at the organisational level (Benn, et al. 2006; Dunphy et al., 2003). By contrast, comparatively little research exists on the role of the individual as a change agent for sustainability (Sharma, 2002). What literature there is on corporate sustainability and the individual level typically focuses on four areas: 1) The importance of values congruence between managers/employees and organisational values (Fryxell and Lo, 2003; Hemingway and Maclagan, 2004; Van Marrewijk and Werre, 2002); 2) the instrumental association between individual concern, knowledge and commitment and corporate social and environmental responsiveness (Bansal and Roth, 2000; Keogh and Polonsky, 1998); 3) narrative accounts by sustainability managers of corporate ‘greening’ (Fineman, 1997; Georg and Fussel, 2000; Starkey and Crane, 2003); and 4) the role of sustainability managers as champions, entrepreneurs or agents of change in their organisations (Andersson and Bateman, 2000; Prakash, 2001; Walley and Stubbs, 1999).

This literature brings insights to our understanding of individuals within a corporate sustainability context by highlighting the importance of ‘intangibles’ like values, attitudes and beliefs in driving corporate sustainability, the crucial role of education and awareness in achieving behaviour change, the scope and necessity for managerial discretion in making change happen, the power of corporate culture in shaping a consensus ‘story’ on sustainability, and the pivotal role of leadership support for sustainability. However, the literature also shows certain limitations. We still know little about what drives individuals to be sustainability managers, how this affects such individuals, and what they seek to achieve from their actions on a personal level. Moreover, the notion of sustainability champions …

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Cite this article

Visser, W. & Crane, A. (2010) Corporate Sustainability and the Individual: Understanding What Drives Sustainability Professionals as Change Agents, SSRN Working Paper Series, 25 February 2010. First published on SSRN at: http://ssrn.com/abstract=1559087

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February 2, 2010June 23, 2012

Kenya 2010 Notes

02 February 2010

Last week, I was hosted by Ufadhili Trust to deliver a 2 day workshop on CSR in Nairobi, Kenya. As I was last in Kenya 20 years ago when I attended an AIESEC African Leadership Development Seminar, it was wonderful to return and compare my impressions.

The biggest changes have been political. In 1990, Daniel Arap Moi was still president (from 1978 to 2002) and ruled a one-party state with an iron hand. My impression back then was of relative stability, but no great sense of prosperity or advancement. I recall that the hotel we stayed at on the coast in Mombasa had a water-cut and the security guard carried a bow and arrow. Also, it took 9 hours to drive the 440 km of pot-hole ridden road between Nairobi and Mombasa.

Today, Kenya has a multi-party democracy under President Mwai Kibaki, although the disputed 2007 general election (and post-election violence) has led to a coalition government in which Raila Odinga shares power as Prime Minister. Apart from changes in politics, the economy is stronger (despite unemployment estimated at 40%) and the roads are noticeably improved.

In fact, the roads sparked one of the first lively debates in the workshop. Why? Because they are built by Chinese contractors. The “Chinese in Africa” topic is a real hot potato, and fascinating from a CSR perspective. The Chinese are bringing massive business investment to Africa (especially in infrastructure), but at what cost? They are accused of low labour, ethical and environmental standards, as well as taking away local employment.

I don’t fully buy the “evil China” story (and I fear a new xenophobia is taking hold around the world), for a number of reasons. First, I would far rather see investment in infrastructure than development aid going to Africa. Second, the Chinese government is starting to show concern about its tarnished reputation abroad, so I expect pressure and standards to rise in the coming decade. And third, the Chinese are not all about low costs and poor standards. They have an incredible work ethic and high productivity level, which I believe introduces healthy competition and challenges attitudes of entitlement in countries like Kenya.

The other theme that emerged strongly in the workshop was corruption, although there was less “fight” in this debate. I almost sensed a feeling of resignation among most of the participants. How do you fight a disease that – like cancer – is so endemic in government, business and society at all levels?

One refreshing voice in this debate was Ken Njiru, Executive Director of Uungwana Resource Institute and one of the leading proponents of business ethics in Kenya. He believes that corruption needs to be branded in the public and business consciousness as “ushenzi”, which means “barbaric”, “primitive” or “backward”. This is contrasted with “uungwana”, which means “civilised” or “advanced” or “righteous”.

As far as general CSR goes, Kenya is still mostly stuck in the PR/philanthropy mode. However, there are inspiring examples of CSR 2.0 practice, such as Vodafone/Safaricom’s M-PESA scheme, which allows the unbanked to transfer money by mobile phone text. Similarly, Equity Bank, which has successfully targeted the poorest sectors of society and now, with 4.1 million accounts, makes up over 52% of all bank accounts in Kenya.

I look forward to watching how Kenya can continue to develop and inspire, both within Africa and the world, as it takes its CSR agenda forward. Thank you to Director Mumo Kivuitu and everyone at Ufadhili. Keep up the great work!

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January 23, 2010June 23, 2012

Turkey 2010 Notes

23 January 2010

Last week, I visited Istanbul, where I was speaking on a panel at the 3rd International Corporate Governance Conference. The topic was corporate governance and competitiveness and the panel was chaired by Judge Mervyn King, author of the King Report on Corporate Governance in South Africa.

Although I have previously shared a panel with Mervyn King (at an event during the 2002 World Summit on Sustainable Development), this time I also had the chance to interview and have dinner with him, which was a treat. I like his quiet, thoughtful yet authoritative demeanour and it was great to get some insights into the mind behind the King Code.

I’m not sure Istanbul quite lives up to its travel promo blurb of being ‘the most inspiring city in the world’ – perhaps because of the wet, chilly weather this time of year, and perhaps because I have been spoiled by my other travels. But it certainly is a city with a rich, long and significant history.

It is hard not to be impressed by its great mosques, but what I liked the most were the church-mosque hybrids. The remnants of the opulent rule of the Sultans (including the 86 carat diamond I saw in the palace) are full of glitz and glamour, but failed to move me.

The food is of course delicious – my favourite was haloumi wrapped and char grilled in vine leaves, although their baklava and Turkish delight were also, well, delightful. Next time, I hope to visit some of the archaeological sites beyond the city in the outer regions of Anatolia.

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December 26, 2009June 23, 2012

Tunisia 2009 Notes

26 December 2009

I recently returned from a pre-Christmas break in Tunisia. I stayed in the coastal city of Sousse, but also took a 2-day trip to southern Tunisia. The barren landscapes – terraced, rocky and flat – are spectacular and often otherworldly (hardly surprising that they were chosen as the backdrop for various scenes in Star Wars: The Empire Strikes Back).

The desert itself – as we discovered on our one hour camel ride into the Sahara – has a surreal tranquillity. In terms of history, El Jem’s coliseum is impressive, dating back to the 3rd century and seating 30,000 (second only to Rome’s 45,000). Culturally, the troglodyte cave dwellings are fascinating and aesthetically beautiful, capturing a simple purity not often seen anymore. The salt-pan flats, where we watched a rain-drizzled sunrise, are breathtaking in their vast empty white expanse.

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November 21, 2009June 23, 2012

Germany 2009 Notes

22 November 2009

Berlin is a city of surprises to savour, full of delights to discover. Sadly, this was an ‘all work and no play’ trip. Even so, I am struck by two things.

First, the sense of renewal. Because so much new building and deliberate investment in regeneration took place after the fall of the wall, the city has an ultra-modern façade. Glass architecture proliferates, giving an impression of light and space.

This is reinforced by the actual existence of space. Apparently, as Berlinwas essentially an island city, with little opportunity to travel beyond its borders, its citizens treasured the open natural spaces all the more. As a result, post-unification, these open spaces have been vehemently protected.

The second impression is of the avant garde. Graffiti covers much of the city, but has apparently been embraced as art. (Another theory is that the city is bankrupt and can’t afford to clean it up). Besides the graffiti, the city is liberally sprinkled with sculptures, museums and theatres. It’s almost as if the years of oppression and suppression have seeded its opposite – the darkness and claustrophobic replaced by light and space; the rules and restrictions exchanged for artistic freedom and expression.

These may be superficial impressions and unfounded insights, but if nothing else, they have whet my appetite to return and explore more thoroughly.

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November 21, 2009June 23, 2012

Armenia 2009 Notes

21 November 2009

Armenia has a proud and long history, being the first country to be a state-declared Christian nation (in 301 AD). It has all the characteristics of a small nation (3 million) that has suffered many conflicts and yet managed to hold onto its identity.

Both Armenia andGeorgia retain the imprint of their communist past, but the people seem to have (for the most part) moved on. It’s almost as if the building still stands, but has been completely renovated and redesigned. The State is most visible now in the excessive presence of the traffic police, as if the exercising of authority had to find an outlet somewhere.

In the short time I was there, I had a chance to explore the Cascades – a real treat for a scultophile like me. Here too, there are stories. One is of a flower-seller who every day used to give free blooms to the beautiful women who passed on the street. As a tribute to his generosity, when he died, the city erected a statue of him.

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November 21, 2009June 23, 2012

Georgia 2010 Notes

21 November 2009

How privileged I am. Here I am in the old town of Tbilisi on a glorious day inGeorgia. The air is bitingly fresh and the sky is blue. The city is like a colourfully painted crypt, discovered amidst the rubble of socio-political conflict and economic uncertainty. Many people are poor, and yet there is a rich heritage of traditions, art and history.

Georgia seems to me a country struggling to emerge from the shadow of the world. There is a beauty here, and warmth, but the sun is shining on other places and nobody notices. Tourism is massively underdeveloped and yet holds vast potential.

Georgia is full of stories to delight. Tbilisi itself – which means ‘warm’ – is founded on a legend about a king who was hunting with his falcon. The pheasant he caught fell into the sulphur hot springs and by the time it was retrieved, it was cooked and ready to eat. So he ordered that a town be established around the springs.

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October 2, 2009June 17, 2012

When Corporations Rule the World

Chapter by Wayne Visser

Extract from The Top 50 Sustainability Books

Key Ideas

We have been seduced by ‘corporate libertarianism’, which demands that all political, economic, and civic barriers to the free reign of corporate interests be removed.
The result of this unhealthy power in corporate hands is ecological destruction, the loss of civil freedoms, the erosion of democracy and community disintegration.
Although the current corporate globalization represents a failure of governments, it is more fundamentally a failure of the global capitalist economic system.
Instead, we should be striving for ‘democratic pluralism’, which requires a “pragmatic, institutional balance between the forces of government, market, and civic society.”
We are on the cusp of an Ecological Revolution, which puts people ahead of corporations, local communities ahead of global trade and nature ahead of money.

Synopsis

When Corporations Rule the World suggests that the promises of the global economy are based on a number of myths: that growth in GNP is a valid measure of human well-being and progress; that free unregulated markets efficiently allocate a society’s resources; that growth in trade benefits ordinary people; that economic globalization is inevitable; that global corporations are benevolent institutions that if freed from governmental interference will provide a clean environment for all and good jobs for the poor; and that absentee investors create local prosperity.

Korten believes that these myths are finally being unmasked and challenged by an Ecological Revolution that calls us “to reclaim our political power and rediscover our spirituality to create societies that nurture our ability and desire to embrace the joyful experience of living to its fullest.” He argues that instead of concentrating on increasing economic growth and GDP, we should concentrate on ending poverty, improving our quality of life, and achieving a sustainable balance with the Earth.

In order to achieve this goal of “sustainable well-being for all people”, Korten believes that we need a multilevel system of nested economies with the household as the basic economic unit, up through successive geographical aggregations to localities, districts, nations, and regions. Each level would seek to function as an integrated, self-reliant, self-managing political, economic and ecological community.

A corporations of the future needs to show that it is “committed to investing in the future; providing employees with secure, well-paying jobs; paying a fair share of local taxes; paying into a fully funded retirement trust fund; managing environmental resources responsibly; and other wise managing for the long-term human interest. Such companies are a valuable community asset, and in a healthy economy, they pay their shareholders solid and reliable – but not extravagant – dividends over the long term.”

The Guiding Principles for an Ecological Revolution include environmental sustainability, economic justice, biological and cultural diversity, subsidiarity (where the economy serves human needs, not the needs of money, corporations or governments), intrinsic responsibility (internalising externalities), and common heritage (of the planet’s environmental resources and the accumulated human knowledge) …