Sunday, December 30, 2007

The Challenges of Today's CSR 3.0

We are in the early stages of an era that I like to call "corporate responsibility 3.0."

The first and longest stage of modern corporate responsibility was characterized by companies developing codes of corporate conduct, CSR initiatives and socially responsible investing (SRI). It was, in essence, a feeling out period to determine whether corporate responsibility had staying power.

CSR 2.0 was ushered in by Sarbanes-Oxley and was largely a response to well-documented scandals, abuse and corporate misbehavior.

In today's new era of CSR 3.o, the corporate sector faces the challenge of independence. Consumers and customers are increasingly independent-minded in their purchasing decisions. Investment capital is increasingly independent as private equity plays a larger role. And new regulatory mandates have convinced shareholders that public companies need to be guided by independent directors with little connection to the companies.

As higher profits abound in some sectors--energy, financial services, and technology, more companies will have to figure out how to make their contributions to society consistent with the new requirements of CSR 3.0.

(c) 2008 Adonis E. Hoffman

Saturday, December 29, 2007

Do Not Discriminate

"The divide of race has been America’s constant curse. Each new wave of immigrants gives new targets to old prejudices. Prejudice and contempt, cloaked in the pretense of religious or political conviction are not different. They have nearly destroyed us in the past. They plague us still. They fuel the fanaticism of terror. They torment the lives of millions in fractured nations around the world. These obsessions cripple both those who are hated and, of course those who hate, robbing both of what they might become."

William Jefferson Clinton,42nd President of the United States


Discrimination can be an insidious and hidden practice within any organization. Executives in many companies can engage in subtle forms of bias without any specific intent to do harm or discriminate against an individual or group of people. Simple carelessness or ignorance can perpetuate a climate of discrimination.

Well, how do you know you or your company might be discriminating? If your boardroom, executive suites, or senior managers all tend to look alike, this is a strong indication that there might be discrimination in your organization. Even if you have a measure of diversity, if key assignments or major projects, or prime territories tend to be allocated to a certain group of individuals, you may have a problem.

The important thing to remember about discrimination is how easy it is to do. There is a certain human tendency to gravitate toward the familiar, the known, and the comfortable. In a business context, you must guard against your natural tendency to favor like-minded people from like-minded backgrounds.

Even in casual or jocular conversation it is important to demonstrate a respect for all persons. Avoid jokes touching on race, ethnicity, gender, physical condition, religion, sexual orientation.

(c) Adonis E. Hoffman, 2008