Upon Commencement, University of California, Berkeley
Haas School of Business Eiji Hagiwara BetterPlacePilot.blogspot.com
EWMBA 293 May 16, 2008 Independent Study – CSR (( Dr. Kellie Mc Elhaney ))
Use of Internet Websites and Work Flow System for Managing CSR Activities: Accelerating Collaboration Among Corporation, NPOs, and Citizens Globally.
a) For keeping up with social needs of our increasingly complex society, NPOs and corporate volunteers may be more efficient in addressing social issues than governments:
i) Tax incentives for corporate donation to support NPO and other organization contributing to address social issues is in order.
ii) Implementation of various measures, such as a network of Internet workflow system, to unify and optimize outcome of efforts among NPO, CSR participants, volunteers and governments is in order.
iii) Citizens and corporations need to express opinions and lobby legislatures.
b) Continuing development of employees is essential for competing effectively in the industry, for avoiding adverse effect on compliance and for increasing corporate performance.
Those of us who live in prosperous and peaceful society have debts to pay to those who sacrificed lives for world peace. Contributing to society through CSR and other activities to address social issues is the least we can do.
The plan to build and perpetually operate unified web-based system to shape public policies is a starting point for making the world the better place. Our society is facing numerous complex issues and the governments are unable to keep up with ever changing demands of the society.
Politicians, Executive Branch and Agencies select their own agenda based on inputs from their constituencies. Actions catering to the needs to corporations providing monetary supports to political action committees and interest groups are given priorities in most cases, however, legislative actions catering to social issues and less advantaged citizens are not taken by politicians or agencies unless significant pressures from the public results from media coverage on issues.
To efficiently and systematically shape public policies and organize action plan, a well-designed network of web based workflow system can be used as a platform to collect information from people in needs, NPO/NGO, academia and so on.
Going forwards, the use of Internet technologies such as Software as a Service (SaaS) to drive collaboration and to match resources and needs will be essential.
Without use of these Internet technologies, it is difficult if not impossible to complete “Innovation Value Chain” of CSR activities and maximize outputs of CSR efforts and efficiencies of coordination between CSR contributors, volunteers, NPO/NGO and the government.
New tax incentive system would be essential in order to drive efforts to alleviate social issues, for example. In some cases, volunteers and NPOs may be more efficient than governments in serving the needs thus a new way to reallocate profits generated by corporations on decentralized basis need to be explored so more grass root activities can be explored. As we have seen from collapse of Soviet Union, centralized planning and distribution system of traditional government cannot keep up with ever changing demands of the society or provide necessary motivation to people to participate in growing the economy.
Understanding of basic Macroeconomics theory on key drivers for economic growth and knowledge on the history of CSR and current trend of CSR activities (Business case as a Strategic CSR) could provide valuable guidance to anyone exploring to participate in CSR and other volunteer activities.
After mid 1980’s, supply of products and services have far exceeded the demand in developed countries. Employees and the management a like need to gain clear idea on how to compete effectively as corporations need to be profitable in order to allocate resources to CSR activities thus internal training programs to employees on various subjects such as corporate strategy, marketing, operations, leadership and so on would be highly desirable.
The knowledge of organizational behavior (OB) theories and how employee motivations affect corporate performance are helpful when shaping CSR policies and eco system. To assist understanding in OB area, introductions to related research material will be discussed in this paper.
We have seen many books and papers from academia and others regarding problems we have in society. What we need now is web based organization with various working group to draw up action plans to build web based system which allows seamless collaboration for shaping public policies, combat social issues, allocate funding, introduce new legislation and so on. Many open source software projects are managed on the web without ever having face-to-face meetings. Prospects on how to SaaS companies like Google, CollabNet and Salesforce.com can take a leading role in building web-based consortium like communities to kick off these projects are provided in detail. Code name “W3C on Steroid” (W3C = wide world web consortium)
At the end of this paper, insights on how corporations, parents and educators could encourage employees and young generations to contribute to make the world a better place are discussed: Those of us living in peaceful society have debts to pay to those who have sacrificed lives for world peace.
The author of Supercapitalism, Robert Reich, describes that corporation’s effort to generate more profit results in moving R&D facilities or production facilities overseas. Walmart chooses to give inadequate medical benefits to employees as investors expects corporation to generate profits and consumers buys product at Walmart only if the products are price competitive. In chapter 6 of this book, Robert Reich explains that the public and politicians may expect corporations to make voluntarily donation to worthy cause but corporations do not have a license to use shareholder’s money to serve public purpose.
Robert Reich goes on to explain that since only people, rather than corporations, can be citizens, only people should be allowed to participate in democratic decision-making. Robert Reich also mentions that perhaps giving $1000 tax credit to each citizen for donation to organization which would use the money to represent citizen’s value such as higher minimum wage, cleaner environment and so on. Robert Reich explains that corporations are too influential on what goes onto the agenda as corporations have to fight against unfavorable public policy implementation.
Through interest groups and lobbyists, corporations are making every effort to influence what goes on to the agenda for yearly legislative decision-making. Executive office and legislatures do not really have any time to address social issues and issues resulting from widening inequality in earning between executives running corporations and employees, workers or unemployed no matter how much such topics were debated during campaign. Once politicians are elected into the office, none of them seems to have time to put social issues on the agenda as politicians have to keep happy, interest groups and corporations, which have elected politicians through monetary contributions.
The Whitehouse, legislators and agencies, based on inputs from the media, lobbyists and interest groups, shapes public policies in USA. Chairman of Senate and House of Representative committees decides what goes onto the agenda every year. After numerous hearing and inquiries, the drafts of the bill are referred to subcommittees, Full Committees, floor action and so on. Most of the time, draft of the bills are separately discussed in the Senate and House of Representatives and any conflicts are sorted out in the Conference Action before the bills are sent to the President.
It takes one Million people showing up at Washington Monument Mall for politician to take any legislative action on civil rights and years of discrimination before equal rights employment laws are implemented. It has taken 30 years and $3 per gallon gasoline pricing for politician to pass higher automobile gas mileage requirement in Energy Bill 2007. Even those issues which finally gets on agenda end up in mediocre laws due to conflict with incentive programs which is already in place on state’s level on alternative energy, opposition by interest group representing power utilities for one size fit all mandate on use of alternative energy and loop holes, extra mileage credit for having flexible-fuel vehicles which can accept 15% ethanol gasoline, given to automobile manufacturers. (Government Policy Process; Energy Independence and Security Act of 2007. (The Energy Bill 2007), Eiji Hagiwara, Term Paper Washington Campus Jan 27, 2008)
IMPORTANCE OF USE OF WEB BASED CONCENSUS BUILDING WORK FLOW SYSTEM TO SHAPE PUBLIC POLICIES: Traditional media may be biased and blogosphere and internet forums could play important role in public policy process.
Citizens need to express opinions, academia and industry interest groups needs to provide data, analysis and opinions, the media need to continuously make report on new findings and different view points. Internet technologies must be used to collect opinions, archive documents for review by the public and facilitate discussion for the purpose of reaching consensus in our society on various subjects..
Participatory Technology Assessment arrangement is how public consensus is build for acceptance products using new technologies such as nanotechnology used for cosmetic and bio engineered agriculture products. Without inputs from scientists, doctors and academia who are expert in the relevant field, it is difficult to reach decision. Legislators, bureaucrats and citizens are not capable of making decision based on one sided explanation from various industry group interest groups which are trying to create new markets. Perhaps, similar approach can be taken to build consensus on how to deal with social issues and to shape public policies.
In case of Energy Bill 2007, legislators only had 11 month to draft the bill, collect feed back from the public. At the end, the bill had ended up not being very effective due to conflicts in green energy incentive programs, loop holes on gas mileage mandate and proposed one size fit all mandate on percentage of renewable energy used by the utilities. Even though the public may expect the government to implement tax incentive to help new alternative energy industry grow, the legislatures failed to fund this effort by eliminating tax break given for oil and gas exploration as Bush administration and many of the Republican politicians did not want to offend the oil and gas industries. If web based consensus building system were in place to collect expert opinion, better public policies could have been shaped and more effective energy bill could have been introduced.
Even though the traditional media such as TV network, news papers and magazines play important role in shaping public policies in certain situation, the owners, editors and advertisers can influence what is reported in the media as seen in yellow journalism and sensational journalism in the past. When asked why news papers, and magazine do not print opposing opinion side by side, Mr. Ron Elving, Senior Washington Editor of Washington News, had mentioned that the opinion which are printed on the top page is what the news paper company agrees to and the opposing opinion is usually published on 10th page or so. It would be difficult for the readers to make analysis when information are presented in biased manner.
Mr. Ron Elving also explained that Internet Portal Sites and Blogosphere will play more role in the public policy process. (Mr. Ronald D. Elving “The Role of the Media in the Public Policy Process” Washington Campus Lecture, Jan 11th 2008)
As we have seen from Democratic Party debates in early 2008, each candidate had only one minute of airtime each to explain his or her stance on various issues. One minute is simply not enough to explain analysis of the situation, root cause of the problem, alternatives we may have, pro and cons of each of alternatives and candidate’s ideas and opinion on how to make change happen. Tens of millions of US citizen had to watch debate on TV for hours see debates that do not prove that any of the candidates have done necessary research and have drawn up action plans which work and lead to changes. As mentioned above, politicians usually totally ignore what were promised doing the campaign. Using the Internet websites, th Blogsphere and other Internet technologies to shape public policies through consensus building among the voters, academia, industries, NPOs and politicians would provide everyone involved opportunities to present opinions. Such system could also increase number of policymaking legislators can handle by automating some of the process through some interface to workflow system of Senate and HR committees.
(Diagram showing concept of “Consensus Community” by Mr. Soichiro Takagi of NTT Data is shown in the exhibit .
CRASH COURSE ON CSR: History, current trend and future opportunities.
CSR covers vast topics and ideal way to participate are different for each corporation and its employees. Without first gaining some basic knowledge of CSR related topics, it would be difficult to communicate with each other or make proper decision. In order to assist peer to peer training, relevant frame works together with URL for references is presented in Appendix titled “Crash Course on CSR”.
To make CSR efforts effective, it is advisable to involve in training and decision making process within an organization, at least one person who has received structured training on CSR (One week executive courses, half semester CSR/ Business Ethics Class), self study based on structured syllabus. In case the organization lacks such personnel, it is advisable to involve outside consultant with expertise in this field or similar services from Business Schools.
NEW WAY TO FUND NPO AND CSR VOLUNTEER EFFEORT / SOCIAL PROJECTS: Tax incentive system on global basis / using Mission Investment Intermediaries.
As explained above, federal and local governments are no longer effective in meeting numerous complex needs of the society thus Internet network must be built for consensus & policy making and accelerating collaboration and funding efforts.
Legislators are too busy catering to corporations and interest groups which have provided funding during the elections. So our society is increasing more reliant on volunteers and social entrepreneurs to solve social issues.
Corporation’s willingness on how much to spend on CSR efforts is up to the management’s ability to convince shareholders that CSR activities enhances corporate image and long term shareholder value or CSR activities enhances social value and as result and ability to obtain shareholder’s authorization on monetary and human resources spend on CSR activities.
So, without new tax incentive system for corporate giving, only companies with founders still running the company can aggressively spend to solve social issues or to participate in philanthropic activities.
Since the government is inefficient and incapable, tax incentive should be given for corporate donation to support NPOs. NPOs are resourceful and very capable in organizing volunteers, running projects and set up infrastructures in cost effective manner.
Increasing funding to drive NPO’s effort and corporate giving is essential and effective ways to fund these efforts are;
i) Implementing higher tax incentive system for direct investment / donation.
ii) Using intermediaries for cause based investment.
and iii) Using international organization such as Unicef for international projects.
Giving more tax incentive to corporations could drive effectiveness of activities of CSR and NPOs but since US government is required to balance the budget, appropriate source of tax revenue need to be found. The Whitehouse webpage on “Fiscal Discipline, managing for results”, interestingly do not have any new news release since Jan. 23 2007 State of the Union Address, suggests preventing spending on unnecessary Earmarks under link titled “Reforms to Spend Tax Dollars Wisely”.
Any tax incentives to promote CSR activities and donations could lead to reduced tax revenue thus corporate and individual tax need to be raised for upper tax bracket and or tax incentives for oil and natural gas exploration and other earmarks must be terminated.
It is important to note that CSR activities and donation could ignite economic growth if resources are spend on “Capital, population growth, Education, technology/ productivity increase, network externalities, etc.” (Macroeconomics theories. (Refer to separate paper titled “Crash Course on CSR”. Hagiwara 2008)
Rather than relying on bureaucrats, legislators or the Whitehouse to come up with new tax incentive system for donations and corresponding tax increase for new tax revenue source, the public, academia, media and others need to use web based discussion forum to draw up feasible plan and to shape public policies.
Well to do people may be willing to accept higher tax if these folks are allowed to make tax-free contribution for social causes. Most human beings feel very satisfied for doing good things for the society.
Page 14-15, A guide to tax incentive for corporate giving.
Matching Gift, Awards and Business Gift Programs:
Finding local or global social projects to make social conscious investment could be time consuming for corporation and individual and could impair the drive to contribute and use up precious resources. Use of Mission Investment Intermediaries would provide efficient way to find investment opportunities.
Cooch and Kramer explains that by combining technology assistant grants (Government grants to fund certain technology development), accepting below market returns, funders can help intermediaries create market rate funds to attract even non philanthropic investors and provide credibility to intermediaries.
Suppose corporations or individuals wanted to make donation to combat issues outside his or her own country. Making donation through international organization that is registered in USA also would enable donors to take tax deduction.
Can I receive a tax deduction for a donation to a nonprofit overseas?
If you want to take a deduction for your donation, be sure to donate to a charity registered in the United States. That doesn’t mean you can’t give to an organization that has an international scope, such as CARE or Save the Children. You just have to make sure the charity is registered in the U.S. if you want to take the deduction. ))
Perhaps, the United Nations is most famous international organization. As listed here the United Nations Foundation has collaborative relationship with various organizations, which are contributing through technologies, cause- marketing travel service and so on. These techniques on collaborations and eco system creation could provide good benchmark for social entrepreneurs.
In Africa and other region, political unstableness are causing poverty due to destruction of infrastructure, lack of opportunity for employment and education for refugees.
Sum up: what affects econimic growth
- Capital K (accumulated assets in the society? or monetary investments into such ?)
- Population groweth L ( Labor )
- Education level
- Technological progress
- Learning by doing and knowledge spill overs:
- technological externarities
- Network externalities
- Stable political and social institutions
((Macroeconomics in the Global Economy Spring 2006 EWMBA201B 31B and 32B.
Page 88, Class Slide #2 Professor Galina Hale UC Berkeley ))
Through monetary donations to Unicef and other organizations, food and other necessities may be brought to troubled region however, attempt to bring dictators and military regimes to resolve conflicts must be strengthened if poverty and inhumane living conditions are to be resolved. UN must be doing its part to remove issues but those of us living in peaceful and prosperous countries must do our part by asking our political and academic leaders to take part in combating conflicts in the troubled countries. Making donation to send food and medicine alone without removing root cause of the problem such as unstable political institution would be like trying to fill leaking pot with water. Civil war and other conflicts can quickly destroy schools and work place and deprive people from receiving education and earnings.
For economic growth, investments into technologies to make workers more productive are important. Construction equipment, web based work from system and other productivity enhancing investment need to be explored.
Making capital investment to build factories and providing employment increases income and discretionary spending and is another important way to bring economic growth to developing countries.
Prof Aneel Karnani explains that private companies can help alleviate poverty if, rather than exporting commodity goods to developing countries, factories are build in those countries and jobs are created. Prof Karnani warns that micro finance for small farm and housewives sawing machine would make things worse as economy of scale and productivity increase can be achieved through organizing larger operation with entrepreneur with management capability.
(The Mirage of Marketing to the Bottom of Pyramid: How the private Sector Can Help Alleviate Poverty. Aneel Karnani Calif. Management Review Vol49 No4 Summer 2007)
TREATING EMPLOYEES FAIRLY AFFECTS CORPORATE PERFORMANCE: CSR from Organizational Behavior Point of View:
At class reunion lectures in Sept, 2005, George A. Akerlof, Professor of Economics and Nobel Prize recipient for Lemon Theory, was asked what his current research theme is. Prof. Akerlof replied that his new research is on how corporations treat employees properly affects economic performance of corporations.
Akerloff explains that identity is more important than monetary rewords. In another words, being part of military, soldiers determines how each behaves and feel rewarded.
Motivation of employee affects economic output of corporations. (Akerloff 2007) This research theme is interesting from CSR’s perspective.
Treating employees fairly is one of important CSR topic. Life-work balance which may mean that employer should not make employees overwork (too much overtime), should allow employees to take all of paid vacation days, provide employees with opportunities to acquire new skills and knowledge. The reality in certain country such as Japan is that some employees are overworked to death, not allowed to take vacation days entitled and training programs such as company sponsored graduate studies promised during recruitment may be scaled down without proper explanation.
Nikkei Business magazine had reported that some temp workers, many of which are Japanese Brazilian with work permit, at automotive part manufacturers in Aichi prefecture area are not given worker’s comp insurance and has been suffering great deal financially. In another incidence, foreign workers of Japanese multi-function copying machine got injured due to her work which required repetitive heavy lifting of assembled parts. This worker also were not given worker’s compensation insurance as the temp staff company did not provide the insurance.
If these workers had been full time employee of the major auto company or copy machine manufacture, the worker would never be asked to perform same repetitive work for months or allowed to work without worker’s compensation insurance coverage. We see articles about CSR on newspapers and magazines and corporations prints thick CSR or sustainability reports so there is no doubt that corporation’s top managements are aware of what is expected of them in regards to treating employees, temp workers, and worker of subcontracting firms.
Walmart may expect consumer electronics product supplier to audit subcontractor’s factories in Asia for child labor and harsh working environment. Perhaps, it is about time even consumers in other countries ask auto manufacturers and copy machine manufacturers to audit working conditions of subcontractor’s work as it seems that any regulation which may exist not enforced.
Before listing up more example on why it is important to treat employees fairly in terms of CSR, brief explanation on condition of economic environment of many companies in developed countries and examples of CSR related scandals need to be given.
Before late 1980s, demand for product and service have exceeded supply. So, companies were able to conduct business with adequate profit margins. However, after late 1980s, companies were faced with over capacity of production and services in the industry while demand failed to grow. Companies need to transform themselves through fostering of employee’s creativity. (( Mr. Perter Georgescu. Author of Source of Success. )) http://www.gsb.stanford.edu/news/headlines/cldr_georgescu.shtml
In the Microeconomics theory, as more suppliers enter the market, the long term equilibrium of sales price become lower to the point that profit of every company becomes zero and except for a few companies, most suppliers will exit the market. ( Professor Megan Busse, Fall 2005 UC Berkeley) Prof. George Akerlof explained during UC Berkeley class reunion in Sept 2005 that this theory is true unless “there is innovation” to allow companies to charge more for the product and services. ( avoiding commoditization )
Not every company in the world can cope with overcapacity and globalization through timely implementation of competitive strategy. When profitability deteriorates, companies tend to implement measures, which are against corporate social responsibility. Holding off hiring fulltime employees, not paying employee overtime, not giving worker’s compensation insurance to temp workers, price fixing, bribing government officials are some of the examples of compliance violations that are frequently reported in the newspapers in Japan.
In most of these cases, employees and the management a alike have not received structured business training on corporate strategy and unable make prompt actions; selling unprofitable divisions to other company in the industry, acquiring other companies to utilized each others product line and sales channel and so on. If the management is unable to transform the company to compete effectively in the industry, it is likely that middle management managers implements measures which may be illegal on their attempt to reducing cost.
Ghoshal and Bartlett, in their book The Individual Corporation, explains that the employees need be empowered with implementing plans to make their companies competitive and their education. Top management supports employees’ entrepreneurial initiatives and ensure employability through growth of business. S.Ghoshal & C.A.Bartlett, The Individualized Corporation, A Harperbusiness Book,1997,p.287
The study conducted by Yamaura on how employees decides to attend graduate schools revealed that even though employees individually feel that structured training at graduate school would be essential to differentiate themselves and to do better job at work, availability of appropriate educational institution in proximately and work place culture affects decision to enter graduate school. Yamamura’s interviewee have indicated that unless the employees is sent to graduate school on company sponsored program, going to graduate school would be taken as if employee is putting priority on studying over work and being away from work for 2 years to attend graduate school in forties would be to terminate carrier advancement at work. Yamamura concludes that such work place culture hampers the decision to study at graduate school.
This research by Yamamura on possible reason hampering employee’s decision to attend graduate school and Ghashal and Bartlett’s analysis stating that employees must deliberately learn and are responsible for making the company competitive suggest that encouraging employees to learn by attending graduate school may prevent companies from having compliance issues. In another words, graduate school level training could give employees sufficient knowledge to effectively draw up a plan and execute transformation and maintain adequate profitability so company’s survival do not need to depend on measures having compliance issues.
In USA, perhaps close to one hundreds of universities offer part time MBA courses in which classes can be taken in the evenings and on weekends. Companies such as Intel and Cisco support employees through $7000 a year tuition reimbursement. There are many Executive-MBA programs in which full time employee go to class four days straight every three to four weeks. The applicant for Executive MBA is required to submit a supporting letter from employee stating that employee will be excused from work related commitment Thursday and Friday every three weeks for 18 months.
In USA, thousands of employees take these part time graduate school studies without leaving employment. Acquired knowledge on corporate strategy, business ethics and other subject areas give part-time students new perspective and skill to contribute more effectively in the work place.
An example of management’s support for employee’s studies at graduate school is evidenced by comments by Mr. Paul Otellini, CEO Intel Corporation.
“The Evening & Weekend MBA Program at the Haas School of Business gives Intel employees the opportunity to enhance their leadership and management skills while they continue to work. Over the years, many Intel employees have been able to earn Berkeley MBA degrees while advancing their own careers and benefiting the company.”
Yamaura’s research states that availability of close by graduate school affects decision investment into graduate level studies. In addition to management’s support and favorable work place culture, attempt to make graduate studies more accessible to those interested would be essential if the corporation were to benefit from employees enhanced capabilities. In USA, company support policies on attainment of additional degree from accredited educational institutions are clearly spelled out in the employee’s handbook of reputable multinational companies. However, in countries such as in Japan, company sponsored programs may have age restriction ( such age discrimination is possibly illegal in USA ), detail of support for non company sponsored accredited degree program is practically non-existent and, as Yamaura’s research reveled, many face unfavorable work place culture, perhaps due to jealousy from seeing small percentage of employee being admitted to graduate schools. Perhaps such unfavorable workplace culture can not be overcome unless top management express that benefits for both company and employees exist and expand support for graduate level support.
Providing employees with structured business education would not only enable employees to draw up plans to make the companies more competitive but also increase employability of the employees.
Going back to CSR implication on correlation between treating employees fairly and corporate performance, many companies in Japan sees giving female employees flexible work hours during pregnancy and not pressuring pregnant employees to resign from work as forefront of “work-life balance” initiative. Only handful of companies such as Nomura Research Institute (a Japanese system integration and consultation company) specifically describe support for employee’s educational advancement in CSR report.
As “Maslow’s hierarchy of human needs” explains, for employees to enter into activities for continued development and for being creative (self fulfillment), physical, safety, social and ego needs to be fulfilled first. Being forced to resign from high paying job in order to attend full time graduate level studies, facing jealousy or unsupportive workplace culture (accusation of putting education first over work) hurts employee’s desire to maintain reputation, respect of associates and status. Frequent reshuffling of organizational structure that could affect status may also hurt employees’ activities for continued development.
Maslow’s law supports finding of Yamamura on correlation of individual’s willingness to invest in graduate studies while working under supportive work place culture and finding of Bartlett & Ghoshal (1997) that companies which tries to benefit from continued development of employee have supportive environment for employee learning.
BLOCKS OF LEARNING:
Its is frequently said that companies must be profitable so money can be spent on CSR activities. As already mentioned in this paper, actions by corporation based on knowledge from Macroeconomics, Microeconomics, Organizational Behavior, Business Ethics, Competitive Strategy, Leadership, Innovation Management, Corporate Finance, and other discipline are necessary for companies to transform themselves to remain competitive. If the total objective is to have coherent CSR strategy, these discipline areas are building blocks necessary to achieve the objective.
It is advisable that each company identify building blocks that are integral and essential part of the structure for making the company profitable and provide necessary learning opportunities to employees.
As knowledge from many discipline areas is necessary to prevent CSR related mishaps, with assistance from academia, corporations have opportunities to draw a roadmap for making necessary learning more accessible to employees. Perhaps, mini MBA like distance learning program together with some certification need to be developed so even those without undergraduate business degree or MBA can benefit from structured program. ( Management qualification Test in Japan; http://www.mken.info/ )
Most business schools have business ethics as mandatory core classes. After 8 lectures totaling 32 hours and more than 20 case studies and a couple of papers, students gain understanding that, without exception, business ethics have priority over profitability. Those without such intensive training may feel that unless there is specific regulation against contemplated action, it is permissible to proceed with the action. If there is any business ethics issue, there is no point pursing the contemplated business activities any farther.
Although, business ethics issues are not covered in separate “Crash Course on CSR” (Hagiwara 2008), anyone one in charge of CSR training or CSR strategy development should have received structured training in business ethics and CSR. Interactive Q&A session must complement, any e-learning or self study on CSR in corporate setting as hastily developed CSR programs would be detrimental to employee’s motivation on the long run. Perhaps, peer to peer training instructor can be designated in the way similar to “Black Belts” in Six Sigma Quality Control program.
Compliance issues such as price fixing, bundling, discrimination, etc. are frequently being taught using e-learning system but Q&A session with a lawyer or inside legal council would greatly enhance understanding. Reading the material or taking e-learning alone do not give employees chance to exercise learned judgement.
Aviation Instructor’s Handbook.indb
Basic Levels of Learning: ROTE, Understanding, Application, Correlation
(Flight Instructor’s Handbook 2008 Page 2-13 Federal Aviation Administration)
Figure 2-10. Learning is progressive and occurs at several basic levels.
Aviation Instructor’s Handbook.indb
Figure 2-11. The affective domain (attitudes, beliefs, and values) contains five educational objective levels
(Flight Instructor’s Handbook 1999 Page 1-9 Federal Aviation Administration)
Inefficiencies of having too many charities, NPOs:
According to Charitynavigator.org, some CEO of charities earn $300K per year and some spend 80% of donated money on expenses thus only 20% goes to the needed. Perhaps, there are way too many charities.
Consolidation of NPOs, sharing of best practices, adoption of productivity tools such as SaaS and web based accounting system are all essential to drive scale of economy. Rating of 5000 charities shows inefficiency of many charity organizations. http://www.charitynavigator.org/
UK has alternatives entity structure to NPO and charities. Perhaps, USA and other countries can analyze to see if similar corporate entity system would work.
Designing a global program to combat global warming acceptable to every country may be impossible:
Mandating certain rule may not provide solution to combat the problem? Using incentive to shape the market place and to prompt everyone to participate would be better way to approach the issue. Developing countries are not willing to invest in expensive equipments to make society more energy efficient or replace old polluting coal burning power plants with the latest technology based power generators.
Perhaps, environment conscious investment fund from developed country needs to acquire electric power plants in China and Russia and replace old equipment with new equipments. French electric utility has 99% market share and ready to spend over $9 Billion in M&A. Perhaps, government fund from Middle East could join up on this effort.
Reference; Egoist’s Dilemma: A DEA Game Solution Ken Nakabayashi, phD thesis
Management of corporation needs to set “Statement of Principle” to show to stakeholders that in addition to strategic CSR efforts (business case), the company encourage employees to take part in social led cause CSR. Without such expression of principal or road map for corporate citizenship, employees and stakeholders cannot have clear understanding on the intent of the corporations.
Parents need to educate young generation to spend less time watching undesirable parade of programs on TV and to spend more time researching, discussing how each can contribute.
Just as Software as a Service provide productivity increase to corporations and results in economic growth similar to industrial revolution (trains, steam engines), unified web based work flow system must be used to coordinate CSR activities and mange innovation value chain to reach where resources are needed.
CSR.ORG, University CSR Centers are encouraged to raise enough endowment and cover yearly expense through endowment fund management, so the know-how, contents, lecture video can be offered to society on wider scale. (at no charge)
Saleforce.com, Google and other SaaS companies are encourage to link their system together to drive free flow of information and creating buzz in the world.
I hope the effort to put this Essay and Crash Course on CSR will result in new global grass roots movement on collaboration utilizing unified web system to make the world a better place.
(The Energy Bill 2007), BetterPlacePilot, Term Paper Washington Campus Jan 27, 2008)
Leadership Communication Speech BetterPlacePilot 2006
The last one mile of world peace – Solving conflicts and create economic growth
Shaky political institution causes poverty, conflicts and civil wars. Parents, teachers and professors are urged to join students to start new movement, “The last one mile of world peace” on cyber space. Those of us living in a peaceful society have debts to pay to those who sacrificed lives for world peace.
Crash Course on CSR – Suggested Topics for Peer to Peer Crash Course
Idea on CSR initiatives Revised Oct. 18th 2007 BetterPlacePilot 2007
Description: Website – Assist CSR activities of corporations around the world
( Initial group term paper proposal for Innovation classes Fall 2007, UC Berkeley )
Core members 10 persons
Avoiding fraud, deception, conflict of interest, discrimination, etc.
Providing public goods (e.g. community development activities, funding schools, etc.)
Ethical decisions in (1) seem hardly controversial (just focusing on profits while abiding by law and general customs is not enough. There are situations where this is clearly wrong—so we cannot do without ethical judgments)
What seem ethical decisions in (2) might violate shareholders’ rights to decide by themselves how much charity they want to do.
Use of unified Internet Work Flow System to accelerate collaboration among corporations, NPO, governments and citizens globally.
Many companies around the world are trying to shape their CSR strategies. The efficiency in managing the knowledge and idea sharing among employees and communication among NPOs and other corporations can be improve dramatically by using Internet websites and work flow system. Explanation on how the Internet can help match demand and supply efficiently on real time basis and examples on how the Internet can help people to contribute in CSR activities are provided in this paper.
Use of IT technologies can certainly improve efficiencies of CSR effort, however, it is not only necessary for participants of CSR activities including those who provide guidance, support and supervision understands underlying Macroeconomics theories, Organizational Behavior and other theories which could affect the outcome of the efforts but also have a mechanism to share and teach the theoretical details so activities to shape CSR strategy and on going CSR efforts will be successful and makes differences in our world.
CSR covers so many topics and each organization are free to choose its CSR strategy, however, it would be beneficial for all participants to review how CSR activities will have been evolving and new trend in CSR activities. Adherence to human rights and compliance issues are first generation CSR activities. Programs to insure that corporate activities will not harm the environment and sustainability of the earth can be considered as second generation CSR activities. Making a business case in order to improve corporate performance can be considered as third generation CSR activities. Summary of these trend and suggested readings and URL links to related websites are provided separately as a guidance for those who may be new to CSR activities. (“Crash Course on CSR” Hagiwara 2008)
CSR activities could assist economic growth on global basis, alleviate poverty, increase standard of living and solve many social issues. The purpose of this paper is to provide some basic information on trend of CSR activities not only to employees and management of corporations but to parents, students and other organization which could contribute to make the world the better place.
Merit of Use of IT System for CSR activities ( Internet websites and SaaS for real time demand and supply matching and improving communication ):
Internet technologies have changed how people communicated and conduct business.
The most notable merit of the Internet website is that real time demand and supply matching capability. eBay and other local classified ads websites can match those who have products and services to offer with those who would like to acquire them. This capability can certainly be applied to CSR activities of organizations around the world if a single website can be created or data bases of multiple websites can seamlessly exchange information and queries.
Next notable merit and recent trend in the Internet technology based business is improvement in productivity through use of a work flow system such as “Software as a Service (SaaS). With the Internet connection and a browser (a software for viewing Internet websites) being ubiquitous, software for enterprise applications are beginning to be offered through SaaS architecture.
Salesforce.com (SFA), NetSuite (ERP, CRM, eCommerce), RightNow (CRM for call centers), CollaboNet (Collaborative software development platform), BlueRoads ( Tiered Channel Management SaaS), Innotas ( Project management and IT portfolio management SaaS), ReadenNetworks (eCommerce for enterprise services) and OpSource ( SaaS application hosting ) are some of well known SaaS providers.
Macro Economics theories states that investment into technology improves efficiency of outputs per worker. According to Dr. Shinya Akamine, CEO of BlueRoads and the founder of Postini, use of SaaS is particularly beneficial when collaboration and data sharing are necessary with participants on the other side of corporate firewalls. In such scenarios, participants can start collaborating right after the user ID is issue whereas permission to access a server within corporate security firewall can be tedious if not impossible.
Internet technologies such as XML data bases, RSS (mechanism to receive updated info on interested web sites), Blogs, SNS, WikiPedia in addition to well known capability of hyper linking to other websites offers variety of ways interested CSR activity participants to seek information on other CSR participants with common interest, with capability for delivering products or services to the beneficiaries.
Though possibilities for using the Internet technologies seems unlimited in theories, the website and the workflow system needs to be developed so desired functionality and intuitive user interface can be delivered even to new users.
Though use of SaaS or other browser based work flow system can dramatically improve efficiency in communication, data sharing, data analysis, project management and other collaborative efforts only if everyone involved is on one system, demand and supply matching and other collaborative efficiencies can not be provided if participants of CSR activities are using different SaaS system which can not seamlessly exchange information and queries with other sites.
( Refer to diagram below, “Open Innovation, Innovation Value Chain” )
Which organization and companies can be founding member to launch the effort, “PROJECT CYBER CSR PLATFORM / W3C on steroid”.
Salesforce.com provides its work flow system free of charge to NPO with less than 10 employees. Subscribers to Salesforce.com can choose to make selected information available to other subscribers (outside his or her organization) of Salesforce.com. The problem is that no all corporation and larger NPO can afford to subscribe to Salesforce.com for all employees involved in CSR activities at US$150 per month per employee.
Possible scenario for having all participants to use a perpetually operated single system for CSR activities would be to pool funding from philanthropic organization and CSR related donation so ongoing subscription to Salesforce.com service can be provided or convince Google and others to provide a website and work flow system to support global CSR and philanthropic activities.
Perhaps SaaS companies like Google, CollabNet and Salesforce.com can take a leading role in building web-based consortium like communities (“W3C on Steroid to accelerate CSR activities”) Salesforce.com is known for “IdeaExhange” in which comments from customers are collected on so improvements in the functionality can be developed quickly. Google is known to have “Innovation Ecosystem” in which media companies, mash up creators, ISV, open source software developers, contents providers improves functionality and usefulness of Google’s platform. (HBR April 2008 Page 62) CollaboNet’s Subversion, open source software version control software has close to one million users without ever having face to face meeting. According to CollaboNet’s management, web based forum and work flow system is used to manage all proposals, action items, source code repository. CollaboNet have been paying payroll of five employees who work as facilitator to so the discussion and work sharing are executed efficiently.
CSR.ORG and other organization need to pay their expenses through membership fee and consultation service so CSR.ORG’s expertise, white papers and other know-how are not available to the public. Only members of CSR.ORG have access to contents of CSR.ORG. In the Web 2.0 in which wisdom of the clouds and volunteers take successful CSR model globally, knowledge sharing may be in order.
Unified web based work-flow system as a platform to drive “Open Innovation” and strengthen weak link in the “Innovation Value Chain”.
CSR related links
M Porter HBS CSR Value Chain
Lending program for Green Building in USA:
The Current Trend of Green Building in the US –
From The Perspective of The Rating System and Social Responsible Investment
Development Bank of Japan Representative Office in Los Angeles Office March 2005 Ellen Nishizaki
SunMicrosystem’s CSR activities on the Home Page:
UN Website Listings for CSR activities alva
The Center for Global Partnership (CGP) was established within the Japan Foundation* in April 1991 with offices in both Tokyo and New York.
Paper on visit to NCRP, Washington DC / training on how to raise funding for NPO / in Japanese
NCRP National Committee for Responsive Philanthropy WDC
Committed to making organized philanthropy more responsive to socially, economically and politically disenfranchised people.
NPO can change the society? 1994 Japan Philanthropy Association
Global Giving, portal site for finding project when making donation.
Jumbuck World’s largest mobile community operator
Tasaka explains that companies that are loosing competitiveness are dealing with security level of Maslow’s Law and could not possibly involve themselves in proactive self-fulfilling CSR activities.
（ On Page 8 of 27 page PDF, Contribution to society by corporation – Prof Hiroshi Tasaka
Tasaka explains that Japanese corporation need to provide professionally satisfying work to employees and even if capable employees leaves the company for another job, these employee’s contribution in other companies should be taken as CSR contribution to the society.
Japan Society Prof Hiroshi Tasaka CSR innovation for contributing to
Added Dec 3rd 2009:
Tokyo Tech Institute Using technology to drive social innovation
Case study from Finland:
Kellie A. McElhaney, Ph.D. Adj. Asst. Professor & Executive Director
New Book, Just Good Business
Added Jan 16 2010:
Stanford GSB The power of social technology Cass Syllabus
Reading Material, Prof Jennifer Aaker’s web page
How Pres Obama used social media to win Presidential Race:
See Name of advisors from Google, Facebook, Intel and so on.
Center for Responsible Business, Haas UC Berkeley
- GSBGEN 358: The Power of Social Technology (PoST)
In the past year, a dizzying number of people have written about (and blogged about, tweeted about…) the mechanics of using Facebook, Twitter, email and YouTube, yet none addresses one of the biggest desires of individuals and corporations: how to leverage the incredible power of the new social technology to make a difference. (No offense to the dancing cats and exploding Pepsi bottles.). Thus the goal of the class is simple: to help you harness social technology in support of a clear single, focused goal – and in so doing cultivate social good. To do so, we’ll travel with the Obama campaign as they use social technology to create political change, with Kiva as they foster economic justice by making micro-loans easily available, and with for-profits like eBay and Nike as they illustrate how social good and profit-making to go hand in hand. We’ll gain insight from leaders from Facebook, Twitter, and Google, learn a framework to structure your thinking and your action, and provide a PoST Toolkit that will get you started on using all the most important social technology tools. Ultimately, this course demonstrates that you don’t need money or power to ignite seismic social change. We’ll show you how with energy, focus, and a good wireless connection, anything is possible.
– Obama and the Role of Social Technology 2010 (1) (2)
– Kiva and The Power of Stories 2009 (1)
– Using Social Media to Save Lives 2009 (1) (2) (3)
- GSBGEN 542: How to Tell a Story
“Tell me the facts and I’ll learn. Tell me the truth and I’ll believe. But tell me a story and it will live in my heart forever.” How do you tell a story? This question becomes important for leaders of companies, who often only need to act as an editor – shaping the stories told by employees and customers – to align with shared vision. And it becomes important as you craft a marketing campaign. A good story is not enough. It must be well told. In this seminar, we will break down the basic elements of story-telling, elucidate the power of the verbal as well as the visual, and discuss how story-telling helps build brands and organizations. For the final project, you will create tell a story about (a) your organization, (b) your brand, or (c) you. By creating powerful stories and then communicating them in your own uniquely human way, you’ll see how causes, careers and businesses can gain momentum.
– How to Tell a Story caselet A
– How to Tell a Story caselet B
– How to Tell a Story - Madarin Translation
– How to Tell a Story - abridged (www.casium.fr)
Breakthroughs in Shared Measurement and Social Impact
Mark Kramer, Marcie Parkhurst, Lalitha Vaidyanathan
The social sector’s ability to solve complex social problems is limited by traditional approaches to grantee performance and outcome measurement. By focusing on individual grants and nonprofit initiatives, these measurement approaches neglect the reality that no single organization alone can solve the scale of today’s major social challenges. Our research highlights 20 examples of social enterprises that have developed innovative and coordinated web-based approaches to reporting performance, outcome and impact measurements over multiple social enterprises and stakeholders.
Exhibit 3 Ways to fund social projects / using intermediaries
Aggregating Impact: A Funder’s Guide to Mission Investment Intermediaries
Nov 2007 Sarah Cooch and Mark Kramer FSG / Social Impact Advisors
Social Venture Paper in Japanese