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Don Brown on Corporate Social Responsibility and the teachings of Bahai faith at Vancouver Island University
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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