My second of three parts on strategies to develop authentic CSR came out on Environmental Leader yesterday. Here's a link to the first on looking at Transparency.
Here's the lead-in:
This three part series is designed to inspire dialogue around the values of Authentic CSR. “Authentic” is not used as a precondition for “ethically better.” Rather, it is used as an internal strategic gauge/guide – i.e. what does successful CSR look like when driven by your company rather than some perceived public leaning or external standard. I argue that there are noble distractions (such as 3rd party certifications) of CSR, and that the distractions carry unnecessary costs and exposures that are detrimental to both corporate financial and sustainability goals.
There are upwards of 700 3rd party certifications or ‘trustmarks’ designed to validate marketing, operational or materiality claims. Consumers are asked to navigate this din of ecolabels. In theory, trustmarks exist to make sustainable consumption more accessible, but they are so ubiquitous that they create a kind of white noise that end up cannibalizing their own intent. This white noise is as prevalent for business as it is consumers. For corporations, 3rd party certifications offer external bars that may ultimately be distracting from businesses.
One way in to this discussion is to understand that the cultural condition that creates the necessity for these marks is actually the absence of two other conditions.
1. Absolute trust
2. A functioning panopticon
“Absolute trust” has not exactly been the hallmark of capitalism. From Robber Barron industrialists to ENRON, the narrative of capitalism is littered with abuse and obfuscation. How else to explain government intervention in CEO salaries, FTC Greenguides, the EPA, plummeting consumer trust and rising consumer expectations? And while ethical business is part of the new social entrepreneurialism, it may in fact be too high an expectation – a false footing – for the “rest of business.” 3rd party certifications were created as a stand-in for corporate-consumer trust.
Classically, the panopticon is a type of prison building structure designed to allow an observer to watch all prisoners without the prisoner knowing if they are being watched or not. In the panopticon, everyone assumes they are being watched so everyone behaves. More modernly, panopticon is a metaphor for technology – a deployed set of observational structures (updates, tweets, check-ins, links and predictive behaviors)… Perhaps we are closer to a functioning panopticon than we think…
But for now, business has the tool of the ecolabel to work with as both measure and measurement of its commitments to CSR principles. So how do these well-intended external standards become noble distractions to the business of business and sustainability?
Certifications like USDA Organic, FSC, Cruelty Free, FairTrade, Good Housekeeping, etc., exist for businesses to legitimize their claims. In this scenario, they become representations of a trust you do not enjoy. But they are also marketing shortcuts – a quick identifier for the consumer that you have achieved some (any) standard. But they are standards set outside of your organization. At best, they serve to benchmark your company against your competitors (have vs. have not). At worst, they are distractions from core measurements set from within the company that could help the company achieve better-aligned sustainability goals.
Read the full article here.
One more to go for this series: Cause Marketing