Tonight, I have been given the intriguing title - "Are we losing the plot on Corporate Social Responsibility?" This title begs several questions such as:

- What is "the plot?" - improving business performance? Anti-business / anti-globalisation? Backdoor regulation? A clever attempt by the West to introduce new non-tariff barriers to trade to stop India, China and others from growing so fast?
- Whose plot is it? - Enlightened businessmen and women? Governments? NGOs? North? South?
- Is it the same plot the world over and irrespective of business size or sector?

I have tried to argue tonight:

- CSR / Responsible Business is not just about Corporate Community Involvement but about core business operations;
- That it is not just the latest management fad but a paradigm shift;
- Relevant to all businesses large and small, around the world- although the specific topics will vary from sector to sector and country to country;
- But currently: responsible business is all too often a bolt-on to business operations rather than built-in to business purpose and strategy;
- If genuine and properly integrated, it can lead to more Creativity and Innovation and lead to new Corporate Social Opportunities;
- But the commitment has to be genuine;
- And there is not always going to be a business case - sometimes, it will be about doing the right thing - making the ethical choice.

We lose the plot if / when:

- Business and stakeholders ignore these crucial points
- We think that CCI excuses core lapses eg a business claims to be responsible because it supports environmental ngos but is an inveterate polluter; or claims to be a responsible business because it provides schools - but does not help its own staff to learn and upskill
- Or we think that CSR is a substitute for getting the business basics right - how a business provides goods and services, how it treats its staff, suppliers, business partners etc
- We exaggerate the benefits to business and society if business is only treating as bolt-on rather than being built-in to business purpose and strategy
- It is suggested that CSR is a panacea for all business and societal ills - a recent book by an American academic - David Vogel - "The Market for Virtue" usefully debunks the exaggerated claims made for CSR - although I think he errs on the pessimistic side sometimes
- There are unrealistic expectations of the role of business, whilst ignoring what the public and voluntary sectors need to do
- Or if we imagine that we have all the answers - some aspects of Responsible Business are settled but many are cutting-edge dilemmas: just to take three stories in the news this week -Yahoo and Google going into China; Child Labour; supermarkets / corner stores. All these involve competing stakeholder claims and it is unclear where the responsible business practice lies.

Additionally, I think we "lose the plot" if the organisations championing Responsible Business are not credible with business and don't empathise / understand the complexity and challenges of running a business in today's Global, connected, knowledge, economy. That is why I believe my organisation - BITC has been successful -and why it is so important in India that business organisations like the CII and Chambers like the Indian Merchants treat the promotion of Responsible Business as a core part of your operations.

OPTIMIST

I am though by nature, an optimist. The glass is half-full rather than half-empty. Attention to Responsible Business is far in advance in Quality & Quantity versus 5, 10 years ago. The sheer logic of environmental and social pressures is going to create more and more marketplace issues for Responsible Business. That is crucial because without the ingenuity and can-do spirit of business, we will not be able to tackle the environmental and social problems we face, fast enough and well enough.

For the full speech, please see : speeches / 2006 / February 17th

© David Grayson February 2006