Can corporate social responsibility survive through recession?

In recession, people are actually less forgiving of bad behaviour, writes Philip Monaghan.

All film-lovers will recall the famous scene in Butch Cassidy and The Sundance Kid: our anti-heroes stand at the cliff edge with the prospect of either jumping off into the rapids below or being caught by the chasing posse to face a firing squad. The Sundance Kid (Robert Redford) hesitates, saying he is scared to leap because he cannot swim. Butch Cassidy (Paul Newman) laughs out loud, pointing out that he need not worry – the jump from the cliff will kill them anyway. Both men make the jump and survive.

Many corporate leaders face a similar leap of faith when it comes to integrating sustainable development into their business strategies. Barclays, BP, Enron, Lehman Brothers and NewsCorp all have or had corporate social responsibility (CSR) programmes in place, many of which have been lauded. Barclays and BP have rightly been praised in the past for their leadership roles in the Equator Principles (to enable environmental and social considerations in project financing) and the Extractive Industries Transparency Initiative (to counter bribery and corruption) respectively. Yet the Barclays interest-rate manipulation scandal in 2012 and the BP deepwater horizon spill in 2006 show that despite these best intentions a culture of "making a quick buck" at someone else’s expense can be extremely hard to shake. This has only had disastrous consequences for shareholders and wider society, but led to the ongoing existence of both companies been called into question at one point or another.

So what is the problem? Is CSR still merely a periphery activity in companies despite the hula? Does short-term gain always trump long-term value? Or is it just a few rogue actors within a company bringing the rest down, which is impossible to 100 per cent safeguard against? Maybe. Or perhaps it is because corporate planners and risk evaluators are simply looking at the wrong thing: their resiliency strategy needs rewiring. Misguided business executives assume they can ride out the storm from any high-stake gamble, including an illegal one. Their hunch is that they will not caught because they are smarter than everyone else. That even if they do get caught the market will forgive them if they continue to deliver good investor returns. And that people have short memories. Yet this is a very narrow approach to resiliency, one that is focused on being able to resist immediate shocks and fails to understand the complex system in which a single entity operates. Survival is also about the ability to learn and transforming. During a global recession, people's tolerance of bad corporate behaviour is much lower and their memories much longer. So the political uproar and ferocity of the regulator response on both sides of the Atlantic is no surprise (and hopefully any new supervision will include an overhaul of how credit rating agencies evaluate non-financial risk too).

If CSR is to be relevant for a post-recession world from 2015 onwards, it needs to become infused with resiliency thinking. CSR advocates now stand at the cliff edge at a time of great uncertainty. They can turn back or make another great leap of faith to shape a more responsible capitalism. Not an easy choice by any means, but the right choice for shareholders and society alike.

News Corp, one of many companies with a CSR program. Photograph: Getty Images

Philip Monaghan is founder & CEO of Infrangilis (a consultancy and think-tank on resiliency strategies). He is the acclaimed author of the books Sustainability in Austerity (2010) and How Local Resilience Creates Sustainable Societies (2012).

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Diane Abbott tweeting the fake lesbian quote won’t detract from Theresa May’s gay rights record

The shadow home secretary tweeted a quote about lesbians which can’t be traced to the Prime Minister.

Diane Abbott has deleted her tweet of a quote that’s been whizzing around Twitter, supposedly attributed to Theresa May.

The meme suggests that the Prime Minister, when a councillor in Merton and Wimbledon in the Eighties, once said: “Curbing the promotion of lesbianism in Merton’s schools starts with girls having male role models in their lives.”


Twitter screengrab

But there is no evidence available to prove that May ever said this. The quotation was investigated by Gay Star News and BuzzFeed when it started being shared ahead of the election. Just like Dan Hannan's pictures from his country walk and erm, pretty much every pro-Leave politician suggesting the NHS would get £350m extra a week after Brexit, Abbott’s tweet was a bad idea. It’s good she deleted it.

However, this doesn’t take away from Theresa May’s poor track record on gay rights, which has been collated by PinkNews and others:

1998: She voted against reducing the age of consent for gay sex.

1999: She voted against equalising the age of consent, again.

2000: She voted against repealing Section 28, and Vice has uncovered an interview she did in her forties with a student paper when she said “most parents want the comfort of knowing Section 28 is there”, referring to the legislation stopping “the promotion of homosexuality in schools”.

2000: She did not show up to another vote on making the age of consent for gay people equal to the one for straight people.

2001: She voted against same-sex adoption.

2002: She voted against same-sex adoption, again.

2003: She did not vote on repealing Section 28.

2004: She missed all four votes on the gender recognition bill. (But she did vote in favour of civil partnerships this year).

2007: She missed a vote on protecting gay people from discrimination (the part of the Equality Act that would prevent b&bs and wedding cake makers discriminating against gay people, for example).

2008: She opposed IVF for same-sex couples, voting in favour of a child needing a “father and mother” before allowing a woman to have IVF treatment.

Since then, May has softened her stance on gay rights, apologised for her past voting record, and voted in favour of same-sex marriage. “I have changed my view. If those votes were taken today, I would take a different vote,” she said.

But your mole can think of at least one politician who’s always been on the right side of history regarding gay rights. Diane Abbott.

I'm a mole, innit.