CSR, Trust and the New Morality A return to the past?...Buying products and services from ethical...
Transcript of CSR, Trust and the New Morality A return to the past?...Buying products and services from ethical...
CSR, Trust and the New Morality
A return to the past?
Trajectory Trends Breakfast March 2016
2
Introduction
THE ISSUE
Defining CSR
The academic perspective –
meta-analysis of multiple
studies
Margolis (Harvard), Efenbein
(Berkeley/Washington) and
Walsh (Michigan)
2007 and 2009 analyses
based on 167 and 214 studies
respectively
Overall conclusion –
CSR generates a 13%
uplift in company
performance
5
Pre-recession: Green is Everything
‘Traditional’ ethical concerns drive ‘green’
CSR agenda and consumer spending
Recessionary concerns:
Malfeasance, Cock-ups & Scrutiny
Myriad organisational scandals drive / caused
by consumer focus on corporate practice
Business Priorities
Environment as Priority
33%
21%
11%
0%
5%
10%
15%
20%
25%
30%
35%
2003 2010 2015
% Mentioning
Top 5 Issues, 2015
Corporate Tax Avoidance – 35%
Executive Pay – 34%
Workers being able to speak out – 20%
Exploitative labour – 19%
Bribery and corruption – 19%
Source: Ipsos Mori, 2015; n=997
The Question
VW Emissions Scandal
Back to the future?
Google Tax Deal
More of the same?
THE CONTEXT
The unlikely rise of trust
+17% trust in multinational business leaders 2014-15
+9% trust in national business leaders 2014-15
Why?
Source: Trajectory Global Foresight, 2015; n = 501
Fragile Recovery
-9.0%
-8.0%
-7.0%
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526
Total GDP, quarterly change after pre-recession
peak
80s recession
90s recession
Great Depression
Current downturn
2.4%GDP Growth in 2016,
OBR Forecast
November 2015
2.0%GDP Growth in 2016,
updated OBR
Forecast March 2016
“The Social Responsibility of Business is to
increase its profits”
Milton Friedman, New York Times Magazine 1970 (available online)
The New Morality in 2016
New Morality
2016
Demand for
Authenticity
New
Seriousness
‘Don’t know, don’t care’
approach to global issues
High(er) trust
Changing scandals Improving economic
environment
Continued
Austerity
External warning
signs
Ethical and Price concerns
7%
19%
15%
23%
29%
26%
27%
20%
15%
9%
7%
3%
0% 20% 40% 60% 80% 100%
Buying products and services
from ethical companies
Getting the cheapest price
when shopping
Very much like me Like me Somewhat like me
A little like me Not like me Not at all like me
Source: Trajectory Global Foresight, 2015; n = 501
42%
22% 22%
THE FUTURE
A complicating factor
“The 20th-century corporation… was sustained by deep interdependencies with its populations.
That market form intrinsically valued its populations of newly modernizing individuals as its source of employees and customers; it depended upon its populations in ways that led over time to institutionalized reciprocities.
The ‘five dollar day’ was emblematic of this systemic logic, recognizing as it did that the whole enterprise rested upon a consuming population.”
Big other: surveillance capitalism and the
prospects of an information civilization Shoshana Zuboff, 2015
Big Data and CSR
Working Communities
The Ethical Employee
36% would work harder if their
company benefitted society
42% want to work for an
organisation that has a positive
impact on the world
62% of millennials want to work for
a company that makes a positive
impact
Global Tolerance, 2016
Fragmentation
Public Service CSR
The future of CSR
• Will ‘green’ issues ever dominate CSR agendas again?
• Is a fragmented CSR agenda asking too much of organisations?
• How can a business’s CSR programmes be communicated?
• Does greater trust increase the efficacy of CSR messages?
• What are the implications of a conflict between an organisations
employees and its customers?
• Is there any chance of a reciprocal relationship when it comes to
data?
Next Breakfast – 28th April
Whatever happened to the BRICs?
Thank You
Trajectory Ltd
Cargo Works
1-2 Hatfields
London SE1 9PG
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Tom Johnson, Directortom@trajectorypartnership.comwww.trajectorypartnership.com