The Key Drivers of Sustainability in the Age of Responsibility

1. The book ‘The Age of Responsibility’ written by Wayne Visser, clearly shows that a 2^nd generation movement of corporate social responsibility is replacing the old and traditional corporate sustainability and responsibility. The new generation significantly goes beyond the kind of approach that treats CSR as philanthropy or public service and relations. The new CSR is more interactive and stakeholder driven model. The book is one of the greatest works of the author which reflects the state of the world, people and business who are responsible for a change in our lives (Visser, 2011). The book has been considered as a personal description of Wayne’s relationship and connection with the Corporate sustainability and responsibility. Wayne says that both the traditional as well as the new movement have their own pros and cons, best and worst, positive and negatives. The primitive CSR may be just a smokescreen that covers up the irresponsible behavior systematically. On the other hand, the new or the evolved CSR might serve just as a Band-Aid to the gaping or hemorrhaging economy, planet and society. The most positive side of the new kind of CSR is, it is uplifting towards a better future.

The effects of transition after the post –industrial revolution is being supported or being sped up by the new kind of CSR. Among few of the drivers in The Age of Responsibility are environmental degradation and the impacts of climate change, the companies which are damaging the environment cannot hide themselves, sustainability is a major component of the business strategy and competitiveness (Visser,2011). Most of the companies are taking sustainability seriously because the natural goods and services which are underpinning the economy of the world are being destroyed by various business models. The future of planet is getting intensified and pressurized. Hence the companies are now recognizing the declination of the natural systems which can also create bottom lines and subsequent risks for the business .This shift in the market has happened because of the rapid degradation of the natural resources mainly due to the pollution created by the industries. The companies have well –understood that the considerations of sustainability in each of their decisions have relation with their fiduciary responsibility towards the earth and the nature.

Since the consumers are willing to pay price for sustainability which also determines their buying behavior, companies have to consider the sustainability aspect in their operations. The companies when do not focus on their CSR values lose the competitive edge in the market. The poverty, equality and sustainability are completely interconnected(Visser,2011). A latest study conducted by Unilever suggests that one third of the customers prefer buying from brands based on the environmental and social impact they leave. It has also been found that more than $966 billion opportunities are there for those brands which are clear at their sustainability credentials.  Hence, consequently, they have visible impact on the business competitiveness and customer relationships. In a nutshell, the bottom lines, boardrooms and corporate reputations are highly bolstered by the sustainable approaches of the organizations. Society is demanding those companies which respond actively to broader societal challenges.

2. According to Wayne, there is a difference between responsibility and responsiveness. In The Age of Responsibility, the author has appropriately described that responsibility might have the same Latin root ‘responsus’, the meanings are different. While responsibility stands for the morality or the sense of acting in response to a particular matter, being responsive refers to acting in a positive or desired way or the quick react to something. As suggested by Wayne, being responsive means responding positively at the time of crisis. The responsiveness can be expressed by the CSR activities by the companies(Visser,2011). The CSR responses can be catalyzed by economic, environmental, social industrial and health-related crises. It is when the companies go beyond and above of what is expected from them socially and environmentally. They get engaged in the corporate social responsibilities. There are so many examples of corporate social responsibilities such as reducing the carbon footprint in order to mitigate the climate change issues. The improvement in the labor policies are also supportive of embracing the fair trade. The engagement in the charitable activities and volunteering with the community is another example of entertaining CSR. The organizations also can change the corporate policies in order to benefit the environment. Another example would be making socially and environmentally conscious investments. Taken for instance, the Coca –Cola company continues to make efforts to reduce the environmental issues. In the year he company realized that their delivery trucks exhale 3.7 million metric tons of greenhouse gases. They realized it and made changes in their supply chain with the goal of reducing the carbon footprints by 25 % by 2020. For another instance, most of the CSR response are of philanthropic kind. In the year 2001, Argentina suffered from the economic crisis which proved to be a remarkable turning point in the CSR values. It initiated debates regarding the role of business in alleviating poverty. Another example is the HIV/AIDS in the south Africa which also had the effects galvanizing CSR. There are ample examples of industrial accidents, human rights fiascos or the natural disasters and corporate governance which have impacted the CSR values of the companies of those regions.

The Importance of Companies Being Responsive in the Age of Responsibility

According to Wayne, CSR 2.0 is nowhere but focused on ‘global commons’, ‘innovative partnership’ and ‘stakeholder involvement’. It includes real –time reporting, diverse stakeholder panels and social entrepreneurship. It is identifying a shift from the centralized to the decentralized, a change in the scale from the marginal to the mainstream and also a change in the application from the exclusive to the shared. Since the author claims that CSR, as governance and ethics system has failed, the new CSR 2.0 is based on five principles and among them scalability is one of the most important components that form the basis for a new DNA model of responsible business(Visser,2011). This new DNA base is built around four elements such as god governance, value creation, environmental integrity and societal contribution. For example, Walmart’s conversion to organic cotton and Tata’s Nano Car can be considered as scalable initiatives of those companies. This is what responsiveness is defined as in the work of Wayne Visser. This new set of principles are useful for the businesses which are redefining its role in the society.

3. According to Wayne, the term ‘glocal ‘is a portmanteau of two terms, local and global.  The word had originally come from the Japanese word ‘dochakuka’ that means global localization. The word dochakuka came to be used by the business people in the early 1980s. It became a marketing strategy. The basic concept that lies underneath the word ‘glocal’, is think globally and act locally. Wayne further supports the idea of Goethe in this regard(Visser,2011). As Goethe has pointed out, if people are seeking comfort in the whole, they must learn to discover the whole even in the smallest parts.

I would apply the concept on the variety of food and beverage products. I will serve green and aromatic teas in Beijing, porridge and burgers for breakfast and lunch in Shanghai and provide carbonated fruit drinks in Shenzan. In this way I will carve out a strong market share in the global business. The adaptation to the local climate and taste, values and attitudes is the real glocalization of a particular product. Since the political economic and social interdependencies are making the world more global, the local markets are losing their luster and importance. However, it is good that global and local are trying to be merged together to satisfy the tastes of different markets and people.

It is true that glocalization was designed to help the multinational corporations can get hold of the local markets, it is equally true that the local markets also can grab the market share in the regional economies. Hence, they end up going global themselves. It is quite unique that a local business offers of a culture or country can provide the best brand differentiation value for the SMEs. The brand narrative can become the media of sustainability and scalability for small businesses. The local companies are taking over the regional markets more than the multinationals. The competitions are growing between fast growing local companies. It has been found that the local economies are more effective than other multinationals in the emerging markets in competition. Taken for example, Unilever has hold of the ice cream market of china only 7 % whereas the local companies have grabbed the market share of more than 19%.The china based companies of laundry detergent and home appliances have overtaken the multinationals. Similarly, in the Indian market the local e –commerce companies such as Flipkart have dominated Amazon and eBay. With the help of glocalization, the local brands reduce the dependency on the foreign markets and enhance the employment rates. The local resources usage also reduces the production and consumption rates. People do rely on the local brands more and they are considered as more ethical and sustainable. Apart from all these, glocalization is supportive of customer engagement, talent development, social value and creating regulatory and institutional environment.

Reference

Visser, W. (2011). The age of responsibility: CSR 2.0 and the new DNA of business. John Wiley & Sons.