A New Decade, and New Challenges in CSR?

One of the more interesting arguments voiced by critics of the corporate social responsibility movement is that many of industry's opponents can never be entirely satisfied, and that companies that clearly care about their images and take pains to communicate their commitment to CSR are simply painting targets on their backs.

It's an argument I've never found particularly convincing: it assumes that the only possible motivation for CSR is cosmetic; that good reputation is defined by the ability to avoid controversy; that all controversies are created equal; and that members of the public are too stupid to tell the difference between a well-meaning but flawed organization and an organization with no interest in the social impacts of its activities. I don't think any of those assumptions is accurate.

Still, I'd be interested to learn how the public relations folks at Shell, a company that takes CSR very seriously, feel about the recent attention of Amnesty International, which has launched what the Financial Times describes as "its biggest ever campaign against a single company" over Shell's alleged role in human right abuses in Nigeria (where the company has had some issues in the past.)

According to the FT: "There are signs from Amnesty and beyond that the heat is being turned up again and that companies must brace themselves for greater scrutiny. 'Things are getting more pressured,' admits the top corporate responsibility executive for one U.K. company with global operations, who declines to be named.'"

I'm not sufficiently familiar with the Shell story to know whether Amnesty or the company is right--I'm not sure it's possible to know without spending several months on the ground in Nigeria--but there are a couple of lessons that public relations professionals should take from this story, and that's the first one: if you're going to defend the company's activities, you need to spend some time in the operational realm, and see for yourself what's going on, rather than taking the word of line managers and communicating via some sort of lawyer-devised companyspeak.

The social media age means that consumers expect a more personal form of communication, and PR people should be able to answer a simple, basic question: "What's it really like out there?"

The second (as I've written in the past) is that companies don't get to choose whether the issues raised by groups like Amnesty, or the expectations they reflect, are "legitimate." I once--many years ago--heard a Shell executive explain that those who believed the company should intervene with the government of Nigeria to prevent human rights abuses were being "unreasonable" and that their attacks on the company were therefore "illegitimate."

That's no longer a call the company gets to make. If the company believes in the benefits of a good reputation, and if it believes a stakeholder group has the power and influence to make its life more difficult, then the views of that stakeholder group have to be taken seriously.

And finally, the argument that Shell's Andrew Vickers appears to be making in the FT article--that human rights standards are different in places like Nigeria ("we're not operating in the North Sea")--is no longer viable: companies will and should be held to the same standards globally; if something is clearly unethical or unacceptable in New York or London or Amsterdam, it's unethical and unacceptable in the developing world too.

Comments
Paul Seaman's Gravatar Paul, the international oil industry based in Nigeria is probably the most ethical component of the nation's economy. However they are not there as imperialists so there are limits to how much they can do to run their business as if they were based in Godalming in Surrey, England. But I agree with you that Shell has done a poor job of explaining the realities of its operations in Nigeria. I advocate that Shell should be more robust in answering its critics and in defending its good record there (and, yes, I agree that it would help if their UK spokespeople spent more time Nigeria and less in London).

As to CSR, if Western companies must prove that they match in Africa exactly the same standards as in the UK, they might as well all withdraw from most African countries completely (common standards are simply not a reasonable expectation because of the prevailing social fabric). Withdrawal would be immoral, backward and catastrophic, however. That's why Shell needs to be more honest than it has been about the real challenges it faces in Nigeria without pretending that it is comfortable with all the compromises it must make to function. Meanwhile, Shell's critics would do better to support Nigerians who want to improve their democracy (while being made aware that some locals attacking Shell are not all that they appear to be to Amnesty International) than in attacking inward investment and the standard bearers of the best CSR practice in the country.
# Posted By Paul Seaman | 1/4/10 7:47 PM
Peter L Walker FCIPR's Gravatar CSR - Lord how we pontificate on these three misunderstood, misinterpreted and misrepresented initials. Whatever Corporate (Social) Responsibility was in the early 70s when The Centre for Corporate Responsibility was established at Harvard or in the late 70s when IBM: BOC; Xerox: BP; Cadbury and Pilkington came together to fund its UK counterpart, life has changed and we, the public relations world need to change too.

Corporate (Social) Responsibility is an intrinsic part of managing risk not reputation. number 3 or four on any international investment risk insurers check list is CSR. Why - well the simple analysis is that businesses that have a clear and structured approach to corporate responsibility takes its responsibilities for the operational management of its social, political, environmental and commercial risks seriously and empowers and encourages its management to act to ensure the long term sustainability of their operations and the communities in which they operate.

Stands to reason that sort of approach lowers the risk of investment and enhances the rate of long term return on that investment. Does the professional in public relations have a role to play? Yes probably. but not if we continue to see CSR as a reputation enhancer and public relations as 'pr' and some sort of media relations manipulation.

Up to now we seem to have left the field open to the accountancy based management consultancy firms who produce and support the structured tools and methodologies for operating management that business needs.

As for the post of Chief Reputation Officer - sorry there isn't a vacancy - that's the role and responsibility of the Chief Executive at board level and the plant or enterprise general manager at operational level. At BAT it used to be part of the Chief Executives contract of employment. Go check out the Harvard Business Review annual poll every chief executive officer spends more than 60 per cent of his or her time on public relations. Check out Drucker circa 1957 the figures were the same then so nothing new here.

It may be a too much to ask but could we focus on the thought that public relations practice is a management function and more important it is a function of management, all management.

CSR, was is and always will be one of the most effective tools for managing operational risk don't take it from me take it from the people that insure international investment projects.
# Posted By Peter L Walker FCIPR | 1/5/10 10:28 AM
Paul Seaman's Gravatar Paul, I have tackled the issues you've raised in your post here:

CSR: it’s not the same in Lagos as in London

http://paulseaman.eu/2010/01/csr-its-not-the-same-...
# Posted By Paul Seaman | 1/6/10 7:07 AM
Paul Seaman's Gravatar Three British people and a Colombian have been seized in Nigeria's oil-rich Delta region, security sources say. Paul, do you still want to advocate that Shell be held accountable for the same standards in Lagos as in Godalming, Surrey, UK?

http://news.bbc.co.uk/2/hi/africa/8453915.stm
# Posted By Paul Seaman | 1/12/10 10:03 AM
fake watches's Gravatar A New Decade, and really New Challenges in CSR. It's true that one of the more interesting arguments voiced by critics of the corporate social responsibility movement is that many of industry's opponents can never be entirely satisfied.
# Posted By fake watches | 1/29/10 7:02 AM
Designed and Hosted by: Online Corp This blog is running version 5.9.1.002. Contact Holmes Report.com