July 4, 2012
Tania Ellis, author of "The New Pioneers", sees a new trend in sustainability, which she calls CSR 2.0. Here, social responsibility is integrated into the strategy and all stakeholders are engaged. It provides a better bottom line even in times of crisis.
THEME: CSR 2.0
By Lars Rasmussen
The financial crisis has created a competitive race when it comes to Corporate Social Responsibility (CSR). The companies that have not worked in an integrated way with their CSR and business strategy have had to cut back on their efforts. On the other hand, the companies that have managed to find a business sense with their social responsibility have come through the crisis stronger. Therefore, CSR is maintained in these companies.
- Both supporters and skeptics have been right, says Tania Ellis, author, speaker and owner of the consulting company TANIA ELLIS - The Social Business Company.
- The skeptics have been right that those who have not worked in an integrated manner have had to cut back, and it is quite natural when there is less profit to give away. But the supporters were also right, because those who have worked with CSR for a longer time, so that it has become part of their brand and services, find it more difficult to separate things. Once you brand yourself on CSR, it rings hollow if you cut back on it in times of crisis, she says.
The work with CSR takes place both internally and externally. Internally in relation to the employees, when it comes to the physical/psychological working environment and the spacious labor market. Externally, it is about i.a. The CO2 balance or other environmental aspects, responsible supplier management or cooperation with educational institutions and sports clubs.
- The best have asked themselves: What are our biggest challenges in the next 5-10 years, and how can a CSR effort help, explains Tania Ellis.
- If, for example, the deliveries have been of fluctuating quality, then responsible supplier management could make sense. Or if the challenge is to attract and retain the best talent, then it is about creating an attractive workplace with a good working environment, she says.
Tania Ellis mentions DONG as a good example. They have a statutory target to reduce the use of fossil fuels, so they have realized that they have to engage customers. Therefore, DONG offers to help find opportunities for energy savings with customers, which at the same time means that a larger part of consumption moves to green energy. DONG calls this concept climate partnerships, which benefit both DONG, the customers and the environment.
Another example is the low-cost mobile company "Call me". It has been running a "Talk properly" campaign, all while competitors have continued to beat the lowest prices.
- "Call me" has started from the fact that their business is about communication, and therefore they have tackled the bad tone in the public space, says Tania Ellis.
- It is about bullying at school, bullying at workplaces and a poor mental working environment, all of which lead to a reduced quality of life. By making the good tone their mainstay, "Call me" experienced an influx of customers during the campaign period, and they received emails from customers who said they were proud of them. How often does that happen, she asks rhetorically.
"Call me" has seen schools order "speak properly" badges, which has generated a debate about what good tone is. The company engages customers by making it possible to take an oath on the campaign page or on the Facebook page that you will contribute to the good tone. For each promise, "Call me" has put DKK 5-10 into a fund, which schools can apply to work for a better tone.
The "Speak Properly" campaign has had a measurable impact less than a year after the first ideas were conceived. Tania Ellis has acted as a sparring partner in phases of the project, and she praises "Call me" for the implementation.
- A CSR effort that is linked to the business foundation can, as with "Call me", create customer access and probably also higher customer loyalty and higher employee loyalty, notes Tania Ellis.
"The challenge is to make CSR present in the entire organization."
The challenge is to make CSR present throughout the organization. Tania Ellis has a favorite example of a front runner who has succeeded.
The American carpet group Interface with branches around the world – also in Denmark – are pioneers in sustainability. They integrated sustainability as part of the company's transformation process in 1995, and it is a core part of the culture. Everyone knows that they work for sustainable solutions. Everyone contributes in their own way. The designers find sustainable materials for their rugs. The production department seeks to save on resource consumption. In the bookkeeping department, they work paperless, the transport department constantly optimizes the routes, and the engineers work on technical solutions that minimize costs.
- Interface has the goal of reducing their footprint on the environment to 0 by 2020. They have presented this to the employees and received support for it, says Tania Ellis.
- The personnel managers themselves say that people do not work at Interface to make carpets but to work sustainably, she says.
Is it an employee trend?
- Specific. All else being equal, the vast majority choose a workplace where sustainability is valued. Especially in the new generation, they get into it. There is more juice and power in leaving a positive mark on society than simply working for a profit for the owners. It's attractive to be part of a bigger story, believes Tania Ellis.
Tania Ellis talks about a social megatrend. Others call it a global consciousness movement. It is about a trend that is based on ethics, responsibility, sustainability and meaning.
The wave started in the 60s with peace movements and the fight for human rights and equality. Back then a minority stood out, but today the wave has changed and achieved a critical mass, so you can see an effect everywhere.
- You see it with the conscious consumer and in relation to growth in fair trade and ecology, says Tania Ellis.
In just 20 years, the market for CSR-conscious investments has grown 5000 percent, and it's not just to save the world.
- The investors have followed suit. In just 20 years, the market for CSR-conscious investments has grown 5000 percent, and it's not just to save the world. It's pure risk management, because you can't afford to be irresponsible today, she says, citing BP as an example of how wrong it can go.
Tania Ellis sees it as a trend that fast food companies are being dragged to court for contributing to obesity, and the car industry for being responsible for pollution.
The Internet has helped push that development, because consumers know more than ever before and can control much more. Knowledge obliges, and social media provides tools for everyone to do something about it. Companies that do not live up to the demands of ethical consumers can have major problems because the information spreads rapidly in social media. No one has to go through the big established media or NGOs anymore.
- Around the world, you also see that more private citizens want to make a difference in voluntary work. It is the new way of showing surplus, because we have reached a saturation point in relation to material prosperity. It does not bring happiness and joy in itself, whereas being able to make a difference to others gives meaning. It means something to us as people, Tania Ellis assesses.
According to Tania Ellis, Danish companies in particular are not particularly good at communicating their CSR efforts. She believes there are typically three reasons for this.
- Either it's so natural for the company that they don't think about it being CSR. Or they live by the motto, those who live quietly live well - because if you go along with it, you risk that someone will follow suit. Or they think it's a private matter, explains Tania Ellis.
She recognizes that communication about CSR is a delicate balance that can easily be misunderstood as a marketing ploy.
- If you simply put the task in marketing and make a PR stunt out of it, there is a risk of backlash. On the other hand, it can have a long-term effect if it is integrated in all departments. The more integrated the effort is, the more credible the company is, Tania Ellis estimates.
- It is important to communicate it along the way and not wait until everything is in place, because it never succeeds. In addition, the world changes quickly, so what is sustainable today may be the opposite tomorrow, she says.
For example, bioethanol was almost seen as the salvation of the world when it came out, but over time it turned out that food prices rose because the crops were used for fuel.
In relation to supplier management, it is known that you cannot protect yourself 100 percent. The advice is therefore to communicate openly and honestly by telling what the company's intention is and how far you are. At the same time, you can invite the outside world to help.
- If you discover, for example, child labour, in CSR 1.0 you would have interrupted the cooperation with the supplier, but today with CSR 2.0 we think more nuanced and consider whether it is not better to accept that the families need the children to work, and then in instead collaborate with the supplier to set a framework for the children's working hours and at the same time ensure they have time for school, says Tania Ellis.
What is CSR?
CSR 1.0 was about companies taking on social responsibility, and in most cases it took the form of philanthropy. The company's focus was the core business, and if it made a profit, the company sponsored the local sports club or gave money to a good cause.
In CSR 2.0, companies work more strategically with social responsibility, so that sustainability and a good mental working environment are an integral part of the business.
CSR 2.0 is a more sustainable solution for both the company and the cause.
In his book “The New Pioneers” and on www.taniaellis.com Tania Ellis describes a basic model for persistently working with sustainability. She calls the model "The Four Cornerstones of Sustainable Business Success", which in English all begin with C.
Tania Ellis' own company, TANIA ELLIS – The Social Business Company (formerly Inspiratorium), which was founded in 2003, works with CSR 2.0 itself by, for example, collaborating with student organizations that focus on social responsibility. Here, Tania offers, among other things, up with lectures. In relation to recruitment, the company takes in many interns, student assistants and people in activation.
- We don't take everyone, but those who are passionate about CSR, says Tania Ellis.
- Many have got jobs afterwards because they have gained an insight into the field, they are clarified with what they want and can do, and they have gained a huge network.
The Social Business Company has a small core team of 5-6 people with Tania Ellis herself, a permanent consultant in Denmark, a Norwegian business partner and a business partner in Singapore.
In 2006, the book The New Pioneers, written by Tania Ellis, was published.
In 2010, she renewed it for an international perspective, "The New Pioneers".
www.taniaellis.com
www.thenewpioneers.biz
Last updated 21 September 2022
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