The Evolution of CSR

Transitioning to a New Paradigm

What is happening in Our World?

Environmental DegradationClimate Change

Poverty

Pollution

Are these symptoms of an overriding problem?

The Sources of My Presentation

• Science – current views on the global economy

• Religion – The Bahá’í Faith

• Personal Life and Work Experiences – private/public/non profit sectors – first world/third world and middle east countries

My Presentation• The current state of the world and the

underlying root cause of the many issues facing our global society

• A vision of a prosperous, peaceful world promised in the Bahá’í Writings

• A model of Business in this new paradigm

We are entering the most challenging tumultuous and disruptive period in human history moving

from an era of change to a change of era.

Growing Economic Inequality

The wealth of the richest 85 people in the world =

The wealth of half the world’s population – 3.5 Billion people

The State of Our Global Economy

Capitalism creates increasing income inequality that is unsustainable

Deeper systemic questions can and must be asked, not just a return to business as usual but with a moral veneer. … without a rethink of how we use materials in our linear ‘take-make-dispose’ economy, elements such as gold, silver, indium, iridium, tungsten and many others vital for industry could be depleted in five to fifty years.

Capitalism’s model of economic growth is unsustainable in a finite world.

Our Fundamental Challenge

Capitalism is economically, environmentally and socially unsustainable.

It has contributed to the personal freedom, social prosperity and scientific progress of a significant minority of the earth’s people

It is impotent to deal with the needs of today’s global society.

What is its root cause, its driving force?

Where do we go from here?

The Root Cause:

Unsustainable Economic growth due to our insatiable desire for material goods Our value of material commodities:

Beyond our real material needsDefines our social identity and status Has become even our purpose in life

Materialism

The Root Cause: Materialism

Materialism:… the root cause of such apparently unrelated problems as the pollution of the environment, economic dislocation, ethnic violence, spreading public apathy, the massive increase in crime, and epidemics that ravage whole populations. Recovery requires … a fundamental change of moral consciousness and behaviour.

Bahá’í 2001 Publication Century of Light:

Materialism:… a kind of universal religion claiming absolute authority in both the personal and social life of humankind. The goal of human life is, or ought to be, the satisfaction of material needs and wants.

The Fundamental Paradigm Shift – From Me to We

We are all interdependent members of one human family occupying one common

homeland, the planet earth - The Oneness of Humanity

The Oneness of Humanity – A Global Human Value

For the Individual

It presents a perspective which harmonizes with that which is immanent in human nature.It induces an attitude, a dynamic, a will, an aspiration, which facilitate the discovery and implementation of practical measures.

It introduces a fundamental change of life purpose from acquisition of material goods to working for the betterment of the world.To setting the common good above private interest.To doing that which profits oneself and others.

It does not negate individual freedom or initiative but calls for a wider loyalty, for a larger aspiration than any that has animated the human race… Its watchword is unity in diversity.

The Oneness of Humanity – A Global Human Value

The current capitalist economic system is morally and intellectually bankrupt.The challenges facing humanity are global and require a new world order of global governance.

It is a spiritual truth revealed by Bahá’u’lláhIt is a social reality confirmed by human science. Anthropology, physiology, psychology, recognize only one human species…

For Society

Acceptance of the oneness of mankind is the first fundamental prerequisite for the reorganization and administration of the world as one country, the home of humankind. Universal acceptance of this spiritual principle is essential to any successful attempt to establish world peace.

The Oneness Of Humanity calls for no less than:

The reconstruction and demilitarization of the whole civilized world –

A world organically unified in all the essential aspects of its life,

•Its political machinery,

•Its spiritual aspiration,

•Its trade and finance,

•Its script and language,

Yet infinite in the diversity of the national characteristics of its federated units.

World Unity

Global Governance –The next stage in the evolution of civilization

An elected world legislature, will enact laws to benefit all races and peoples

A world executive, backed by an international Force, will carry out the decisions arrived at by the world legislature, and will safeguard the organic unity of the whole commonwealth.

A world tribunal will adjudicate and deliver its compulsory and final verdict in all and any disputes that may arise between the various elements constituting this universal system.

a world commonwealth in which all nations, races, creeds and classes are closely and permanently united, and in which the autonomy of its state members and the personal freedom and initiative of the individuals that compose them are definitely and completely safeguarded.

The Global EconomyThe economic resources of the world will be organized, its sources of raw materials will be tapped and fully utilized, its markets will be coordinated and developed, and the distribution of its products will be equitably regulated.

Economic barriers and restrictions will be completely abolished

Destitution on the one hand, and gross accumulation of ownership on the other, will disappear.

There will be a uniform and universal system of currency

The Vision of Global Prosperity

… The enormous energy dissipated and wasted on war, whether economic or political, will be consecrated to such ends as will extend the range of human inventions and technical development,

• to the increase of the productivity of mankind,

• to the extermination of disease,

• to the extension of scientific research,

• to the raising of the standard of physical health,

• to the sharpening and refinement of the human brain,

• to the [sustainable] exploitation of the unused and unsuspected resources of the planet,

• to the prolongation of human life,

• and to the furtherance of any other agency that can stimulate the intellectual, the moral, and spiritual life of the entire human race.

The Local Economy

Progressive taxation collected at the community level

Redistribution of revenues to those in need in the community “no one will be left destitute.”

Voluntary giving of the rich to the poor

Community-based cooperative development

Implementation of disruptive technologies – renewable energy, 3 Dimensional print manufacturing

Local agriculture production – reclaiming the commons & land sharing

The Industrial EconomyAbolition of strikes and lockoutsProfit sharing - 20-25% to workersRecognition of the interdependence of capital and labourFrom free trade to fair tradeFrom built to break to built to lastFrom externalization of costs to extended producer

responsibilityFrom: To:

Circular EconomyZero waste manufacturing

Repair, Reuse, Recycle, Return

The Business Model - Paradigm Shift

From: Profit Driven

To make money

To get ahead

Ends justify the means

Maximize profits

Profitability Market Status

To: Principle Centered

To make a better world

To serve the common good

Honesty, trustworthiness, fairness, integrity….

Sustainable Win-Win-Win

Sustainable/worthwhile Services, Corporate Conduct

Purpose

Sustainability

Conduct

Relationship

Success

Core Business PrinciplesPurpose:

Work for the betterment of the world

Leadership: Set the common good above private interest

Conduct: Consciously adhere to human virtues

Sustainability: Do what will profit you and others

Decision Support: Consult as the means of decision-making

Our Most Significant Opportunity

Each of us has the freedom to choose what and how much we consume.

Each of us has the free will to determine our own moral attitudes and behaviour.

Our Greatest Challenge

Many of us co-operating together can change the world.

Individually we make little difference…

BUT

Individual ActionsSpiritual:

Investigate the Source of this vision: The Bahá’í FaithAdhere to human virtues – our innate higher natureWork for the betterment of the worldUnderstand that what we buy, how much we buy and where we buy are moral choices

Social and Economic:Invest locally Buy locallyParticipate and co-operate locallyAccess, generate, apply and diffuse knowledge

Ecological:Reduce, Repair, Reuse, Recycle, and Return

Live within our means - “Moderation in all things”

Individual Economy:A Fundamental Change of Consciousness

From: Material Beings

To satisfy material needs & wants

Self Interest

Material Acquisitions/ Social Status

To: Spiritual Beings

To work for the betterment of the world

Set the common goodabove self interest

Service and Virtue

Purpose

Relationship

Success

It is unlawful to beg, and it is forbidden to give to him who beggeth.

… it is incumbent on every one to engage in crafts and professions, for therein lies the secret of wealth

We have exalted your engagement in such work to the rank of worship…

Achieving the Vision

O ye rulers of the earth!... Now that ye have refused the Most Great Peace, hold ye fast unto this, the

Lesser Peace…

Global Governance: The political and social unity of humanity

DisarmamentUniversal educationElimination of prejudiceEquality of women & menWorld languageStandard weights & measures

Elimination of National rivalriesHarmony of Science & ReligionReconciliation of religionsFreedom of the press The Internet

Discussion

What actions can we take now to create a sustainable economy for our future generations?

7 Levels of Corporate ConsciousnessRichard Barrett: Corporate Transformation Tools

7. Service to humanity - unity

6. Making a difference - inclusion

5. Meaning - internal cohesion

4. Transformation - learning, growth

3. Self-esteem - systems/processes performance

2. Relationships - to support the organization

1. Survival - pursuit of profit/shareholder value

Comparison of Capitalist and Principle Centered Enterprises

Purpose: To make a better world, money is a means

Purpose: Create wealth, make money as an end

Decision: Team: Consult as equals

Decision: Personal: Competing self interests

Sustainability: Balance service, social, economic, environmental, personal

Sustainability: Maximize profits, Shareholders ROI above all else

Leadership: Service, improve the condition of all

Leadership: Control, authoritarian, compete

Identity: Service entities Identity: Economic entities

Principle-Centered Capitalist

Core Enterprise Principles

Leadership Principle:

Set the common good above private interest

Change of Consciousness –Drop the “authoritarian power struggles, competing self-interests” and replace it with “co-operatively improving the condition of all”

Core Enterprise Principles

Conduct Principle: Consciously adhere to human virtues: truthfulness, trustworthiness, compassion, perseverance, etc.

Change of Consciousness –

Drop the “ends justify the means” and replace it with: “the means are as important as the ends”

Core Enterprise Principles

Sustainability Principle: Do what will profit you and others.5 Dimensions:

–Economic –Environmental –Service –Personal–Social

Drop “for-profit”, “not-for-profit” and become “sustainable”

Core Enterprise PrinciplesEconomic Sustainability: 1. Operational 2. Developmental 3. Equity

Profit is a measure of value added contribution, a means of self-financed growth, but not an end in itself BTL p. 57

“… in a truly great company, profits and cash flow become like blood and water to a healthy body: They are absolutely essential for life, but they are not the very point of life.” GTG p. 194

Core Enterprise Principles

Environmental Sustainability: Live in balance with the natural world

Service Sustainability:Continually upraise the quality of human life

Personal Sustainability:Enable individual material, physical, emotional, intellectual and spiritual sustainability

Social Sustainability:Contribute to the well-being and sustainable development of the community

Core Enterprise Principles

The Decision Support Principle: Consult as the means of decision making

Conduct of Consultation Sessions

Fundamental Change of Consciousness -Drop authoritarian balancing of self-interests and replace it with: consultation as the means of decision making