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NGO & Corporate Collaboration: How Far Does It Go?

In the field of issues management, it’s common knowledge that some corporations now “partner” with NGOs on various issues of “social concern.” That term “social concern” is often one that is defined by the NGO, rather than the corporation, by the way. So now, instead of an NGO and a corporation fighting tooth and nail over an environmental issue, for example, they work together toward a “common goal.” Okay. That seems all warm and fuzzy, on the surface. But let’s dig a little deeper into the nature of this “partnership.”

Yellow Pay SignIn a situation like this, what’s that “common goal?” For the NGO, the goal would be the achievement of, perhaps, a social agenda objective that they have pursued for years, often via an adversarial relationship with the corporation. For the corporation, what’s the goal? What motivates the corporation to take on such a “strange bedfellows” relationship? Well, as a recent article in the Christian Science Monitor commented, corporations often approach NGOs to partner on a common project so that those same NGOs don’t turn around in the future and spread bad press about the corporation. A “common goal?” Seems more like a protection racket.

Imagine this scenario. Corporation X is concerned that future bad press could negatively impact their expected future revenues. So, to preclude the threat of negative press, an implicit threat at least, the brass at X dial up their historical foes at NGO Z and play let’s make a deal. The brass over at Z aren’t going to say, “Hey X, thanks for calling, but no thanks.” No. Z’s ship just came in. The pressure that the folks at NGO Z have been applying to Corporation X all of these years has just paid off.

Didn’t I see a scene something like this in at least one episode of The Sopranos?

Now, when the NGOs and the corporations get together like this, at least according to the previously mentioned Christian Science Monitor article, no money changes hands. The article stated that the NGO doesn’t receive any fees from the corporate partner. But isn’t there an exchange of value here? Isn’t this somewhat like a scene from The Sopranos? Let’s look at it this way.

The Sopranos Example – Paulie, grey slicked-back side wings and all, goes into a shop and “tells” the proprietor that the shop could “have some trouble” in the future. This “implicit threat” means that the shopkeeper might lose some of his or her “expected future revenues.” But, Paulie and his problem-resolution specialists can “protect” the shop and make that trouble “disappear,” for some consideration of course. In this Sopranos example, that consideration is money.

Paulie and his problem-resolution specialists get what they were looking for, i.e., they reach their direct objective. The shopkeeper avoids that “implicit threat” and gets to keep his or her future revenue stream.

The NGO Z/Corporation X Collaboration Example – The presence of NGO Z represents an “implicit threat” to Corporation X, the threat of future negative publicity. Corporation Z recognizes that this “trouble” is possible. The presence of this “implicit threat” means that Corporation X might lose some of their “expected future revenues.” But, the problem-resolution specialists of Corporation X realize they can “protect” the corporation and make that problem “disappear,” for some consideration exchanged of course. In this NGO Z/Corporation X example that consideration is collaborating with NGO Z to allow NGO Z to achieve one of their social agenda objectives.

The Corporation Z problem-resolution specialists get what they were looking for, i.e., they get to keep their future revenue stream. NGO Z gets what they were looking for, i.e., they achieve their direct objective of “social concern,” which, of course, is defined by them.

Weird, isn’t it?

And once this “partnership” is established, where is the line drawn? How far does this relationship go?

In The Sopranos Example, Paulie keeps returning to the shopkeeper saying there are always “other” troubles on the horizon and that an increased payment is needed to keep those troubles away.

In The NGO Z/Corporation X Collaboration Example, the management of Corporation X realizes that there is always the possibility that NGO Z could spread bad press, regardless of how much or how well they work together on any selected project. What happens after that project is complete? Corporation X knows that NGO Z will always have “other” future projects of “social concern” on their horizon.

Are these NGO/corporate collaborations a good way to run a company?

How far does it go?

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Could Slacktivism Be the Next Big Thing?

In the digital world, most everyone keeps their eye out for what will be the “next big thing.” Usually it’s a technology, either hardware or software. Lately Google’s been hitting it hard and heavy on the forecasted next big thing stage, Google Wave and Droid.

But I’ve been thinking lately that the next big thing in the online world might be a movement, rather than a technology. And that movement I have in mind is “slacktivism.”

What’s slacktivism? The word itself is a portmanteau of “slacker” and “activism.” Thus, the meaning becomes clear. For further edification, let’s take a definition from the UrbanDictionary.com. They define slacktivism as:

One of those feel-good internet campaigns that doesn’t actually help anybody or has political impact. It’s your way of pretending to care while sitting on your butt in front of a computer playing WoW. Also used for people who want to get a million people on their page by before bettering themselves (sic) or the world instead of just doing it.

Other than the grammar or typo error there in the last sentence, the UrbanDictionary.com is clearly saying that slacktivism is something like what we could call “armchair activism.” It’s being an “activist” without actually being one, although you could still wear the black tee shirt and/or beret while sitting at your computer.

Black laptop computerSlacktivism is a way for people to make themselves feel like they are advocating for a social cause, while actually committing little or no time or money to the effort. It’s, for the most part, a feel-good activity. Not only does slacktivism make individuals feel good about themselves when they sign up to be a friend, fan, or follower on the page of a cause’s website or social network or Twitter page, but the act of slacktivism impresses others with the individual’s “social awareness.” That impression, of which the individual is aware, further adds to the individual’s ego gratification.

I don’t think we need any social psychology references to support these assertions. It’s all pretty much backed by common sense acquired from our years of experience with the human condition. So, given the ease of slacktivism as measured against its psychological benefits, it would follow that many people would sign-up online for an activist’s cause, and not really add much to the activist effort in the process. To test my theory, let’s have an example.

On Tuesday, January 19, 2009 which is the day on which I wrote this post (Yes, I know it’s dated January 28th, but thanks to the magic of the Word Press scheduling function such miracles are possible.), I went to the Greenpeace.org/usa site and clicked on the link to their Facebook fan page. When I went to their Facebook fan page, I noticed that, on that date, Greenpeace USA had 41,728 fans. I wanted to see how “active” these individuals might be, so to test my slacktivism theory, I scrolled down to the Greenpeace USA “Causes” box and clicked on “See Greenpeace USA’s Total Impact.”

For those unfamiliar with Facebook fan pages and causes, following is a brief explanation. Any organization, or company for that matter, may sign-up on Facebook for a “fan page.” On the fan page, the organization can gather fans and communicate, interactively, with them through text and pictures. The organization, and individuals can do this on Facebook also, may then sign-up for “Causes” pages, which are pages featuring a particular charitable organization’s agenda. On the Cause page, the organization can then accumulate “members,” who can be different and/or the same people as on the fan page, and solicit donations for the featured cause.

When I clicked through on Greenpeace USA’s “Total Impact” link, I was taken to their page which summarizes the four Greenpeace causes they feature via Facebook: Climate Rescue, Greenpeace Organizing Term, Kleercut, and STOP the Whale Hunt. Clicking through on each cause listed revealed the following activity and support:

  • Climate Rescue – 473 members for this cause with $0 contributed.
  • Greenpeace Organizing Term – 574 members with $25 contributed.
  • Kleercut – 1,202 members with $40 contributed.
  • STOP the Whale Hunt – 153,941 members with $23,756 contributed.

Until I got to the Whale Hunt cause, I thought slacktivism was going to make the Greenpeace/Facebook contributions endeavor a total bust. The Whale Hunt cause showed 153,941 members with almost $24,000 in donations. But that means that on average each Whale Hunt member contributed only about 15 cents.

Perhaps after signing up for the Whale Hunt cause, most of those 153,941 members, feeling good about themselves, went back to playing World of Warcraft (WoW).

Slacktivism? Is it the next big thing?

At least judging by this test case, yes, I think my theory holds.

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The Marketplace Is Not Stupid

From much of my reading, I can see that the power of the NGO (non-governmental organization) is increasing. With regard to how that power affects business, my research shows that over the past decade NGO-influenced corporations are now becoming the norm rather than the exception. And from the projections I’ve read, it appears that that influence will only become greater over the next decade.

Silver pound coinsTo go along to get along with this trend, multi-national corporations (MNCs) are moving, seemingly together as if in lock step, to establish corporate social responsibility (CSR) programs in order to meet the demands and expectations of NGOs, whether it be on environmental, social, labor, or cultural issues. And to help them craft their CSRs, MNCs now regularly collaborate with NGOs, bringing NGOs to the table as trusted advisors and de facto consultants. And when MNCs do this, which is increasingly often, they seem to do it with a “mea culpa” attitude.

Mea culpa attitudes belong only on the truly guilty. MNCs don’t give themselves enough credit. They suffer from a poor self-image. Paraphrasing Jessica Rabbit, “MNCs aren’t ‘bad.’ They’re just drawn that way.” Their “We’re so guilty” attitude is unjustified. MNCs should not sit themselves in a corner.

Yes, it’s true that MNCs are guilty of doing some “bad” things. Aren’t you? MNCs are operated by humans. Imperfect humans who make mistakes. But I fear their mea culpa is overdone because most, if not all, MNCs indeed do more “good” than “bad.” One doesn’t need to perform extensive quantitative analysis to realize this.

If the MNCs were not doing more good than bad, then such behavior would be obvious to the marketplace, which is not stupid contrary to the belief of many activists. The marketplace is not stupid. We can use the activist’s own thought process to address this issue. Ask any activist how “stupid” the marketplace was in electing Barack Obama to the White House and the majority response will prove this point. So, if the “bad acts” of any MNC outweighed the “good acts” performed to support the economy and society, then the marketplace would know that; the people would “vote” with their dollars, numbering the days of any wayward MNC.

Given this automatic economic voting mechanism, where “election day” for the MNC is every day, is the current and projected level of NGO influence upon MNCs really justified? Which party receives more legitimization?

Yes, MNCs make mistakes. I accentuated the obvious above. MNCs are operated by humans. But so are NGOs. NGOs are run by humans, imperfect humans. NGOs, as well-intentioned as most probably are, are not exempt from making mistakes, and performing “bad acts,” whether by accident, or by intention, or by just plain ignorance. But how is the influence of these imperfect organizations counter-balanced? Unlike MNCs, NGOs are not subject to the same automatic regulatory mechanism of the “vote.” NGOs are not subject to the same daily “election day” as are the MNCs. The motivations and the acts of the NGO are not examined and evaluated with the same frequency as are those of the MNC. Neither are the acts of the NGO supported with the same number of votes from the public.

For example, according to their IRS Form 990, a publicly-available document filed by all non-profit organizations operating within the United States, for the fiscal year ending in 2008 both the Rainforest Action Network (RAN) and the Friends of the Earth (FOE), two of the most powerful environmental advocacy groups in the world (read that as NGOs), received less than $5 million each in revenue, i.e., fewer than 5 million votes of support. Each. (You may see these documents by going to Guidestar.org and searching on each NGO.) You can plainly see how this vote tally would compare to the annual vote tally of any MNC with which any NGO might collaborate or against which any NGO might compete.

Yet, the MNCs embrace these largely uncontrolled NGOs. NGOs. Organizations who do their best to compete daily for the image of the corporations they target (Note: I deal with this concept of corporate image competition in my newest and forthcoming book, Insidious Competition – The Battle for Meaning and the Corporate Image. Due out Spring 2010). Organizations who by the number of votes collected possess far less legitimatization than do the MNCs who do their best to incorporate NGO agendas. Organizations who pride themselves on “democratic” principles and acting for the “public good.”

Show me the votes. Show me the democracy. Without legitimization, how do these collaborations make sense?

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Will the Baby Boom Create More Activism?

Today I came across an interesting idea in World Out of Balance by Paul Laudicina. Yes, I’ve mentioned this book before. It’s been a while since last mentioned and that’s because I’m reading it slowly. This one I read while I Nordic Track in the morning, so I might do only about ten pages at a time, and some days I listen to the radio while working out. So progress in this book is slower than normal. But my reading strategy on this book is not because it is not interesting. Quite the contrary. Here’s one intriguing thought that came from my reading of this book.

bear with signFrom pages 148 to 149 Paul presents an interesting concept: that there will be an increase in activism because of the Baby Boom. He doesn’t say it in quite this way, but he does say that because of the aging of the U.S. population that there will be a decrease in the number of employees working for the American government. Paul hypothesizes, from the perspective of the publication year of 2005, that these retiring employees would likely not be replaced at a rate that would equal the attrition. The reason he gives is that government employment is not as attractive as that in the private sector, and that because of this handicap the attrition rate may exceed the replacement rate.

Of course, that viewpoint was from 2005, before the stuff hit the fan in Fall 2008. Currently, with government being one of the few employment sectors that is expanding its hiring, Paul’s theory may not be entirely sound. Yet, analyzing from a current perspective, there are valid take-aways that may be had from this line of reasoning. Paul’s theory relates to the quantity of government workers, but he says little to nothing about the quality. Having worked for the federal government at one time, I could say something about the quality of federal workers. But that’s material for a different post. For now, let’s extend Paul’s thinking into present circumstances.

Because the aging U.S. population will cause more and more employees to retire from the ranks of federal employment, there will be progressively fewer experienced workers to carry out the regulatory mandates set down by the feds. Right now, because of government’s mania to hire more workers, the issue isn’t so much about the quantity as it is about the quality, i.e., the experience factor.

So, my point is that due to the Baby Boom the quality of federal regulatory enforcement may likely decrease because less experienced employees would need to takeover for those with decades of experience in regulatory matters. And if there are fewer experienced regulators, then businesses might be less likely to adhere to federal regulations than if the feds were fully staffed with experienced regulators.

How does this problem create more activism? Well, when activists see this situation, and believe me they won’t miss this, there would likely be an increase in their efforts. Activists and NGOs would increase their efforts to regulate business because those activists and NGOs would see that the feds weren’t staffed to do a “quality” job.

Thus, going forward with Baby Boom retirements which are now in progress, businesses should “gird their loins” and ready themselves for increased actions from advocacy groups.

It’s all in the demographics. And those numbers don’t lie.

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Activism or Just Keeping Your Mouth Shut?

An opinion article about childhood obesity and activism recently appeared in the The Daily Camera, the daily newspaper for Boulder, Colorado.

A little self-control makes the world go 'round?

The article was written by  J. Justin Wilson, who is the Senior Research Analyst at the Center for Consumer Freedom, (CCF) a nonprofit coalition supported by restaurants, food companies and consumers to promote personal responsibility and protect consumer choices. Hmmm . . . could this organization be considered an activist organization themselves? Well, certainly if they are representing the interests of a particular business sector. Although, what I like in that description of the CCF is the promotion of “personal responsibility” as their stated primary goal. More of that sort of “PR” would do us all well.

In the article Justin refers to selected activist initiatives aimed at getting some state legislators to tax certain sugary foods, soft drinks in particular. Many of the usual arguments are made in Justin’s article. Such as this one, which for me personally is a bit hard to swallow. (pun intended) He cites no scientific link between soft drinks and childhood obesity. From his article:

There is no scientific consensus that sugary drinks are a unique cause of obesity. A scientific review published last year in the American Journal of Clinical Nutrition evaluated the evidence of 12 major studies and found virtually no association between the consumption of sugar-sweetened beverages and children`s weight. And an October study found no association between soda consumption and youth weight gain over a 5-year period.

I suppose the key term in that quote is “unique cause.” And you can argue from here to Sunday about whether or not there is a scientific cause underlying this particular issue. Perhaps the children studied don’t drink soda, although that idea seems almost as far-fetched as the idea that there is no association between sugar-sweetened soda and weight gain. (If that indeed is true, I going to drink myself silly with Coca-Cola.)

But that’s where I think Justin went wrong in his argument. He chose the scientific path as the main basis to support his argument. Science doesn’t always a good argument make, and I believe that is especially so when one is representing an activist group, er uh . . . excuse me, a non-profit coalition of businesses that supports personal responsibility. I feel that Justin’s argument would have been better made by hammering home as the central thrust of his article the principle of personal responsibility, because after all that’s the declared objective of his organization. Although in the article he did turn briefly to the idea of personal responsibility, his discussion of this form of “PR” was too late in the article and the point was not made nearly powerfully enough. I think he missed his chance here.

Well, hold on, now. Perhaps he didn’t make personal responsibility the central theme of the article because that is something kids have very little of. No kid is going to eschew soda for milk if given any opportunity. Or how about some parental responsibility and asking mom and dad to “just say no” when it comes to serving the kiddy bubbly? How about “pounding on” that personal responsibility point a lot more and asking for some shut mouths when it comes to soda consumption?

Oh, just a second. That’s right. There’s no “unique cause” between weight gain and soft drinks, even though if you “pound down” about five cans of the average soda you will have taken in enough calories for about a third of a pound of fat. (again, puns intended)

Could this be a case of activist vs. activist? With each of them bringing their own scientists into the battle? (You bring your test tube and I’ll bring mine.) A case of dueling DIYS (do-it-yourself-science)? Or is this simply an example of a lost opportunity to argue hardily that personal responsibility and keeping your mouth shut in the presence of soda is the best argument made against a trend of activism bent on taxing everything that moves?

You decide.

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Free Food is Next on the NGO Agenda

Remember back in the 1990s, when Hillary-Care was being bandied about as a program to provide free medical care for all Americans. During that debate I thought it was only a matter of time until someone went further and started pushing, seriously, for a program advocating free food for all. Perhaps we’ve reached that point.

Natural Light Collection uiPer an article at GlobalGovernanceWatch.org, the Food and Agricultural Organization of the United Nations recently produced a five volume guide entitled the Methodological Toolbox on the Right to Food, the contents of which are very interesting. Let’s discuss how the implementation of this publication’s call-to-action could lead to free food and, with it, economic instability in the food industry and perhaps social uncertainty.

The article on the Global Governance Watch site states that, since the United Nation’s founding in 1948, it has been a goal of the UN that individuals worldwide have the right to an adequate standard of living. In the United States, we call this the “pursuit of happiness.” Global Governance Watch (GGW) also says that in 1999, the United Nations clarified this position with General Comment 12 of the UN’s International Covenant on Economic, Social and Cultural Rights:

. . . the right to adequate food is realized when every man, woman and child, alone or in community with others, has the physical and economic access at all times to adequate food or means for its procurement.

As I interpret this quote, its key idea is that governments create an environment where individuals have economic access to food or access to its means of procurement. Very reasonable. In simplified terms, we can call that access a politically-supported environment where those who want a job can have a job so that they can economically access and procure, i.e., buy, food. Again, you have the right to the pursuit of happiness. I support that wholeheartedly.

But GGW reports that in 2005, the game began to change at the United Nations because in that year the General Assembly passed a resolution calling:

upon States to implement legal and political strategies to ensure that the right to food was not compromised.

Hmm.  That’s a bit of a shift in thinking, isn’t it?

GGW says that for the UN to give “traction” to General Comment 12 and the 2005 resolution, the UN produced the aforementioned Methodological Toolbox on the Right to Food. The Toolbox was recently published (October 23, 2009) and in its website article about the Toolbox, GGW calls specific attention to the first of the five Toolbox volumes. The first volume is entitled “A Guide on Legislating for the Right to Food. In its synopsis of the Guide, GGW interprets the Guide as saying that:

. . . States must incorporate the right to food into national constitutions . . . (and) they must establish a “framework” law on the right to food, which sets out obligations for state authorities and private actors and establishes “necessary” institutional mechanisms to enforce right to food legislation and policies.

(The mention of States here is taken to be member states of the United Nations.)

Right now, I’ll make a very astute comment, one I’m sure is very often used within academic circles and by political consultants, as well.

“Are you kidding me?”

The United Nations wants to butt into our, the American, constitution to guarantee a right to food? And the UN wants to force the participation of “private actors,” let’s read that as companies, to participate in that right to food?

What appears to be happening here is that the United Nations wants us to recast that phrase, “the pursuit of happiness,” one so engrained in our national consciousness, into a new phrase, something like “the guarantee of happiness.”

Let’s put the national sovereignty issues aside. I’ll leave those to the political scientists to hash out. Right here in this blog, I deal with business issues and how they are affected by social trends and particularly by activists and NGOs. NGOs like the UN. And one of those business issues is that it should be clear to anyone with at least a basic understanding of economics, capitalist economics that is, that a free food policy could be disastrous.

If food companies are forced to participate in a “right to food” rather than a “right to economic access,” serious repercussions will be felt within that industry, compromising the food supply for all. Such actions, although very charitable and humanitarian in their intent, would actually be counterproductive. Here’s the scenario.

Let’s say there is a legal demand on food companies to make a portion of their production available at no charge. If food companies must provide a significant portion of their output for free, doing so will force prices to rise on the food for which the companies will be remunerated. The result of this scenario would be that there would be less food consumed.

The decrease in food consumption would begin with paying customers on the lower end of the income scale. As food prices rise, to cover production and distribution of the food for which the company receives no compensation, lower income consumers would not be able to absorb the increases. They would buy less food, and indeed most likely join the ranks of individuals receiving the free food, thereby increasing the proportion of the market which receives the free food. This increase in free food recipients would raise food prices further.

Spiraling increases of food prices would occur, with the paying market segment becoming smaller and smaller and, accordingly, profits becoming smaller and smaller or non-existent. At some point the food company would decide to exit the progressively unprofitable market or go bankrupt. The exit of the food company would necessitate other food companies to feed the defunct company’s non-paying consumers, for free of course, and the cycle would repeat. Food companies would fall progressively, like dominos.

And as the food companies fall, unless supported by government subsidies which presents different economic problems, “food fights” may begin. Not fights with food. Fights for food.

No. Although this idea the UN has might seem like an altruistically good idea, in practicality the concept of free food, like free health care, only brings negative results and exacerbates the problem it was intended to solve in the first place.

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To Trust or Not to Trust, That’s the Question.

In a recent article in Ad Age Digital, Judy Shapiro discusses the oft-ballyhooed Web 3.0 and what it actually means. She boils it down to a semantic web type of environment where intelligent agents are bounding about on the social web for you bringing you information recommended by others.

rock-inscribed-with-the-word-trust-l1She raises the question of how reliable that information will be if it’s brought to you by a paid “digital butler” rather than a trusted friend. Touché, Judy. That’s the essence of the social web. To have information passed to you by that friend you’ve come to trust. Not a digital butler than does your mercenaric bidding.

Too much today do people in social networks allow “friends” in that aren’t really friends. If you do that, well, then you really can’t trust highly those sources of information that they bring to you. Such a circle of friends might be analogous to that mercenaric digital butler, except they don’t get paid. Now that’s not to say that can’t become true friends; perhaps they can. But it’ll take time, likely more time than that required for making a friend in the physical world.

So, I’ll agree with Judy that until the trust factor increases, Web 3.0 might be elusive. Perhaps we can all make it less elusive by tending our friends-garden a little more closely.

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