«RUSSIA`S INTEGRATION INTO THE WORLD ECONOMY: THE NEW PARADIGMS OF THE ECONOMIC CULTURE ИНТЕГРАЦИЯ РОССИИ В МИРОВУЮ ЭКОНОМИКУ: НОВЫЕ ПАРАДИГМЫ ЭКОНОМИЧЕСКОЙ КУЛЬТУРЫ ...»
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ISO 26000 ON SOCIAL RESPONSIBILITY AGAINST NEOLIBERAL
ISO 26000 ПО СОЦИАЛЬНОЙ ОТВЕТСТВЕННОСТИ ПРОТИВ
НЕОЛИБЕРАЛЬНОЙ ЭКОНОМИКИДанная статья вначале обобщает выбранные ключевые особенности текущего глобального социально-экономического кризиса, вызванного неолиберализмом многих последних десятилетий после Второй мировой войны. Затем статья показывает как социальная ответственность, по-новому определенная в ISO 26000, может помочь человечеству найти выход из непроглядной тьмы неолиберализма. Последсвтия созрели для социальной ответственности, но это все еще новшество, которое требует усилий и времени, чтобы стать инновацией, т.е. чтобы быть полезной для пользователей на практике.
The paper first summarizes the selected crucial attributes of the current global socio-economic crisis, caused by neoliberalism of the many recent decades after the 2nd World War. Then we show in which way social responsibility, as newly defined in ISO 26000, can help humankind find its way from the blind-alley of neoliberalism.
Dr. Dr. Matjaz Mulej, Prof. Emeritus (Systems and Innovation Theory), University of Maribor, Slovenia, International Academy for Systems and Cybernetic Sciences (Vienna, Austria), President, IRDO Institute for Development of Social Responsibility, Maribor, Slovenia, E-mail: email@example.com Simona arotar iek, M.S., Lecturer (Human Resources Management), University of Maribor, Slovenia, Email: firstname.lastname@example.org Anita Hrast, B.A., Manager (Communicology), IRDO Institute for Development of Social Responsibility, Maribor, Slovenia, E-mail: email@example.com Dr. Zdenka enko, Ass. Prof. (Innovation Management and Systems Theory), firstname.lastname@example.org Dr. Vojko Potoan, Prof. (Organization and management), Both: University of Maribor, Slovenia, E-mail:
email@example.com This contribution is based on research project supported by the Public Agency for Research, Republic of Slovenia; contract number: 1000 – 09 – 212173.
The circumstances are ripe for social responsibility, but it is still a novelty that will need efforts and time to become innovation, i.e. be beneficial to its users in their practice.
Key words: innovation, neo-liberalism, requisite holism, social responsibility The selected problem and viewpoint of consideration of it This contribution is supposed to add something new to our contribution to the conference in Yekaterinburg in 2009 (Mulej et al, 2009). We are addressing the new circumstances and related new crucial international document – ISO 26000 on social responsibility. If its use is limited to single organization, its crucial hidden aim, which is promotion of interdependence and holistic approach might be missed. We see in interdependence and holistic approach a humakind’s way out from the current crisis, not only the old and obsolete concept of social responsibility reduced to more mutual honesty or even to charity only.
Specifics of the current global socio-economic crisis The following attributes of the international scene in 2011 must be exposed, at least.
(1) The current global socio-economic crisis differs from all of so far:
(1.1) It surfaced after a very long period without the usual crises of the market economy; this long period changed many bad habits into normal habits, especially the over-consumption.
(1.2) Practically, nearly all countries of the entire world are about bankrupt after decades of spending beyond production.
(1.3) Only 15% of humankind live on more than 6 (six) US dollars per day;
these 15% have more or less the only shopping capacity, but they prefer in a high percentage greed over need less and less.
(1.4) Long decades of technological innovation replace humans in very many jobs and cause un-employment, while shorter working time is not found politically acceptable.
(1.5) Many expensive and bureaucracy-intensive social transfers are therefore needed, while the idea of the ‘general basic income’ is not found politically acceptable.
(1.6) After the phases in which competitiveness has been based on:
(1.6.1) Ownership of natural resources;
(1.6.2) Investment aimed for owners to use these resources better;
(1.6.3) Innovation aimed for owners to use these resource even better; then the (1.6.4) Phase of affluence brought supply that is very much bigger than demand, while ambitions to work hard in order to have, and resulting demand in market, exist less and less.
(1.7) After the phase of affluence that had made people lazy and less ambitious, in history, destruction happened (e.g. the city of Rome lost population in a comparable phase - from a million to only ten thousand).
(1.8) Natural resources are now over-exploited, natural environment is badly damaged, and more billions of humans than never exist now – these three facts are not the main problems of the modern humankind’s civilization, but symptoms of the really main problem, which is one-sidedness rather than requisite holism (RH) of human behavior (made of watching, perception, thinking, evaluation, decision making, communication, and action).
(1.9) The neo-liberal economic theory made room for abuse of the concept of free market to the benefit of the monopolistic enterprises.
(1.10) Data about the dangerous destruction of humankind’s natural preconditions of survival are being collected in so many different ways that those who do not want innovation of the current practice have many chances to make innovation of human habits toward RH impossible. See Table 11.
Table 1: The selected level of holism and realism of consideration of the selected topic between the fictitious, requisite, and total holism and realism ---------------------------------------------------------------------------------------------------------Fictitious holism/realism Requisite holism/realism (a Total = real holism/realism (a (subjectively selected) (subjectively selected) essential than selected) viewpoints) (For details see: Mulej, Hrast, editors, 2010; Mulej, Dyck, editors, forthcoming).
(2) Growth has been the buzz word in the recent several decades, but growth cannot grow forever. The neo-liberal concept of the permanent growth is therefore becoming a blind alley for humankind through affluence; it lacks social responsibility, which it misunderstands and prohibits in order to let one-sided monopolies dominate the world under the label of the free market. ISO 26000 on social responsibility (ISO, 2010) provides a new framework for elaboration of an alternative to neoliberalism.
Our research (backing this contribution) is supposed to offer one possibility, exposing the two linking concepts in ISO 26000: interdependence and holistic approach. They are from systems theory/cybernetics, which unite sciences as well as all other human knowledge and related behavior, while the traditional sciences separate parts of human knowledge from each other. Separation causes important deep specialized insights and equally, or more, important immense oversights; this is what the 2008- crisis, World Wars and other humans’ failures tell us, as consequences of oversights resulting from one-sidedness of decision makers and their coworkers in practice.
Interdependence is reality in both nature and economics and social life:
The totally holistic approach would cover totally all attributes from totally all viewpoints and totally all relations between them and resulting synergies. This reaches beyond human capacity.
This is why Mulej introduced the ‘dialectical system’ (in 1974) that covers all essential viewpoints in synergy. and (with S. Kajzer) the term ‘requisite holism’ (in 1998) that covers the both necessary and sufficient information/approach.
- It makes humans reliable and honest to each other, once the practice of interdependence results in ethics of interdependence saying: ‘we need each other due to our differences with which we complete each other up and become more or even requisitely holistic in our approach’. Independence is possible and necessary in legal terms only, against abuse.
- This leads us to requisite wholeness in our work’s outcomes, therefore to success and well-being’.
(3) Neoliberalism presupposed the market will provide ethics of interdependence, which A. Smith (2010) claimed, but market’s monopolization by neoliberalism disabled market in the role of giving everybody equal positions and chances. Equally poor success was attained by the too centralistic governments (whatever they are called politically). Humans experiencing the non-monopolized, i.e. real market and law, and reaching beyond them may find the way out from the current blind alley of the current civilization. The latter is what social responsibility is all about.
Monopolies prevent market from acting as a free market from the liberal economic and social theory; thus monopolies prevent humankind’s progress toward well-being; namely:
- Five hundred corporations, out of many millions of enterprises attain 52.8% of the global GDP (Ziegler, 2011).
- Unemployment of youngsters is growing, in Spain it even reaches beyond 47% of those between 15 and 25 years of age (Slabe, 2011) and 20% in the entire population (Kuet, 2011).
- The middle class is disappearing (Brady, 2011).
- After 1995 USA saw the growth of percentage of the property in hands of one single percent of population from 37% to 70%, which makes USA a banana republic (..Rop, 2011).
- The countries‘ debts are enormous, and neoliberal economist show no viable concept how to resolve the problem; the given situation demands radical nontechnological innovation (Glavi, 2011; Kenda, 2011; Keri Svetel, 2011; piler, 2011; Usenik, 2011a; Usenik, 2011b; Vidic, 2011).
- One-sidedness of the crucial decision-makers is extremely dangerous, but usual due their lack of ethics of interdependence and related capacity to listen and hear others, especially the ones who disagree with them to complete them up (Frelih, 2011; Kovai, A., 2011; Soban, 2011; Yao, 2011).
- Benefit of the so-called progress over the recent many decades is actually fictitious and about to be down to zero, because the standard of living has no sound ground, but a ruined and survival-threatening natural preconditions of humankind’s survival and budgets, while benefit from development is used by 15% of humankind only, and the other 85% live with less than six US dollars a day (Mulej, Hrast, ed., 2010).
- Consumers are increasingly aware of the non-sense of the neo-liberal practice of greed rather than need, and carefully chose the more socially responsible suppliers;
they are also less and less shopping-addicted: under six percent in US and under one percent in Germany (Gerzema, 2010; Zgonik, 2011).
- Many enterprises tend to reduce their perception of the essence of social responsibility to charity and marketing/public relations-based donations, while they hardly report about their own social responsibility, even less so on a requisitely holistic basis (Merun, 2007).
- Social responsibility in the form of ‘the green agreement’ (Plut, 2011) and no more greed, but sufficiency along with efficiency was required and exposed as the right behavior also by the Pope, in August 2011 in Spain, too.
International bodies are quite aware of the current very dangerous global socioeconomic situation; United Nations Organization (UNO), several agencies and organizations inside UN, European Union, International Standard Organization (ISO), several associations of enterprises have been launching documents supportive of many aspects of social responsibility, anti-monopoly legislation and similar documents, but the one-sided and short-term criteria of the neo-liberal economics still tend to dominate the global economic scene. The neoliberal economics is very dangerous for humankind’s survival.
Social responsibility may find a way out from this blind-alley. Its definition in ISO 26000 was not prepared/passed by a small number of narrow theorists and politicians, but by a hugre team from 90 countries sponsored by the International standards organization (ISO, having 169 members world-wide) that is backed by businesses (ISO, 2010). Therefore, we prefer to build on it, when the topic tackles solving the current problems. ISO 26000 is not the first international standard on social responsibility. Kaker (2011) mentions: OECD Guidelines, Accountability (AA1000), Principles of UN Global Compact, Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), Social Accountability 8000 (which provides a legal basis for certification, while ISO 26000 does not). Though, ISO 26000 is the first one to introduce explicitly (1) interdependence and (2) holistic approach.
(4) In September and October 2011, when we were finalizing this part of our three-year project on social responsibility and well-being, New York saw many thousands of people protesting against attributes of behavior that are under criticism of the UNO, EU, and ISO documents on social responsibility and have been so for beyond a decade. Protests have been happening around the western world except Scandinavia. Daily press reports about them and add serious comments by serious scientists and practitioners who do not mention social responsibility in their wording, but speak for the need for it indirectly (e.g. Bokovi, 2011a, b, c; Craig, 2011; ibej, 2011a, b; Damijan, 2011; Editorial, 2011; Esih and Stepinik, 2011; Feldstein, 2011;
Friedman, 2011; Kramar, 2011; Krugman, 2011; Lynn, 2011; Rizman, 2011; Stojan, 2011; Zimmermann, 2011; several listed internet messages; etc.).
Their common denominator might read: the current capitalism, except the Scandinavian practice, depends too much on greed and one-sidedness to still work well. Data say: in 1974 CEO of a large US company was paid 35 times the average salary of a manufacturing worker, in 1990 120 times, in 2000 500 times, and in 1.000 (one thousand) times, after that time a bit less (Pyrtola, 2011); most people cannot live with this kind of capitalism even in US, and much less so around the world.
(5) Especially interesting might be the following analysis by Geofrey Sachs (it is summarized after author’s talk by Prof. S. Umpleby on 05 October 2011 in Washington D.C.)1: “Jeffrey Sachs described his new book, The Price of Civilization, at the World Bank. Lots of interesting graphs were presented. Some highlights about USA:
1. Education is the key determinant of who has a job. Funds for public education have been steadily shrinking.
2. Average male salaries have been flat since the mid 1970s. Meanwhile CEO compensation is skyrocketing.
3. On many OECD measures, such as % of GDP spent on education and research, US is in last place.
4. Due to corruption (money spent on politics, all of which is legal) the US would not qualify for a World Bank’s loan.
5. The principal cause is the doctrine of "market fundamentalism". The Republicans say: cut government spending and lower taxes on the rich. Taxes on the rich used to be 70%. The debate is now over 35% (Republicans) and 39% (Obama). The decline in education, research, and environment is due to steadily shrinking government budgets for these services.
6. The Democrats say: stimulate the economy. This is not enough. We need to reconsider how much we spend on public goods.
7. The US government debt is due to wars and private system of health care, not government spending in general. Sachs suggested a budget to restore US leadership, which seemed modest to Umpleby, given Sachs’s analysis. But the question is what is politically achievable. There might be major political changes in the US in future years. US leadership has certainly been declining for a long time. Sachs explains why is it so.« (6) What is perhaps even more dangerous is the fact that neoliberalism acts under the label of ‘a new’ liberalism. Neo-liberalism is crucially different from liberalism; at least in its current practice neoliberalism is even opposing the liberalism. Liberalism is summarized to have the following attributes, by historians:
- individual human freedom;
- the biggest well-being for the big majority of humans;
- free economic activity;
- in the longer term class-free society of free and equal individuals;
- in the shorter term middle-class society with no essential difference in property level;
- security from the self-will of government/state;
- power in synergy with responsibility;
- science, education, and art; civil society Umpleby sent this message to M. Mulej by e-mail on 07 October 2011. We thank him.
(Prunk, 2010). Thus, the discussion is not about either capitalism or socialism or communism, what ever these labels actually mean, but about social responsibility and liberalism or the end of existence of the current human civilization.
Social responsibility might help the crucial attributes of liberalism become reality, replacing neo-liberalism, by a crucial and radical non-technological innovation tackling the socio-economic relations. What should actually be innovated rather than kept?
The dead alley caused by neo-liberalist economics of the decades after World War II Social responsibility actually supports solutions to problems that result from neoliberalism, hence from one-sided management and behavior, and are very costly to repair. They show up in many forms. Some cases include:
1. Lack of non-stop invention-innovation-diffusion processes (IIDP) attaining requisite holism (RH) instead of one-sided keeping the obsolete practices of concentrating on technological innovations alone (See Table 2). Solution must include education for RH and ethics of interdependence, in practice. Extremely good experiences with RH and ethics of interdependence are visible in the practice of the ‘visionary companies’, which have been world-top for a century, on average (Collins, Porras, 1997; Collins, 2001).
Table 2: 40 basic types of inventions, suggestions, potential innovation and 'Innovation is every (!) novelty, once its users (!) find it beneficial (!) in practice (!)'.
Three networked criteria of inventions, (2) Consequences (3) On-job-duty to create suggestions, potential innovations, and of innovations inventions, suggestions, potential innovations, and innovations Radical remental exists processes) than one-sided subordination-based) than one-way commanding) working (supportive of co-operation) business partners) (supportive of cooperation in daily practice) reflecting interdependence) VCEN in our practice) contemporary VCEN in their practice) 2. Lack of IIDP reaching beyond:
2.1. Closed-in R&D toward open-innovation IIDP (Chesbrough, 2003; etc.) that enables more holism by more information and cooperation backed by interdependence;
2.2. Buying equipment for production and other work processes without one’s own IIDP, either closed or open, or both of them in combination;
2.3. Buying intangible goods such as patents, licenses, brands, models, and know-how without producing and selling them;
2.4. Industrial engineering, design-and-trial production wikth a poor cooperation and ethics of interdependence with production, marketing, other offices, and outer partner.
human/organizational/governmental reaching reaching toward transition from such passive and one-sided to creative and RH approaches to the IIDP, including all types of innovation rather than the technological ones only (Table 2). Solution must include competitiveness etc., creativity and enjoyable work of co-workers and hence their commitment to their organization, and resulting high engagement at work (Sarotar Zizek et al, 2010).
3. Lack of RH-conceived selection of ideas that are suggested for R&D and IIDP. Solution requires end of destroying the available human, technological, and financial resources into small pieces that allow for only incremental rather than radical innovations. One of 3.000 ideas becomes innovation. So does one of one hundred patents and four of one hundred IIDP-project of big companies.
4. Lack of RH-consideration of all types of innovation (Table 2). Solution requires IIDP-friendly value, culture, ethics and norms (VCEN) in the organization and in society at large. These VCEN open the door for all other IIDP.
5. Lack of RH-respect for co-workers’ and outer partners’ creativity and RH in all phases of the IIDP. Solution requires managers to innovate their management style to attain less passiveness and feeling of co-workers as subordinated employees, that their only remaining right is their right of irresponsibility (Mulej et al, 1987). The older is the experience of a one-way commanding rather than both-ways cooperating governance and manangement style, and the more recent still is this practice, the more difficult is this IIDP to attain (Belyaeva and Canen, forthcoming; Mulej, Medevedeva et al., forthcoming, in Mulej, Dyck, editors, forthcoming).
6. Lack of RH-consideration of potential future needs of potential future customers in the moment of decision to start an IIDP. For this consideration now the anthropologists, ethnologists and similar ‘soft’ scientists are found very useful because their observation methods discover more hidden attributes than the marketing and R&D methods do.
7. Lack of RH-consideration of the theory of innovative business. Solution requires consideration of all of its very many attributes and their individual and synergetic impacts on success (Mulej et al, 2008).
8. Lack of RH-consideration of all possible sources of inventions, innovations, and diffusion ways in the ‘open-innovation’ style of business. Solution requires innovation of innovation management by innovation of management (Mulej et al, 1994).
9. Lack of RH-consideration of demographic changes in society to be served.
Solution requires use of systemic thinking for the big picture to enter the scene, along with details, their interdependencies and resulting synergies, and diminish the oversights by realistic thinking and other components of behavior (Mulej et al, 1992).
10. Lack of RH-creation and control of IIDP in vision, mission, politics, strategy, policies, tasks, operations, monitoring, training, education, and rewarding, and related information acquisition and distribution. Solution requires systems thinking too (Ibid.).
11. Lack of RH-consideration of the given and potential risks related to both the routine-loving/based and IIDP parts of processes and their synergies, be these risks personal, internal/organizational, in supply- or sales-markets of human, financial, technological, informational, motivational, etc. resources. Solution requires systems thinking too (Ibid.).
12. Lack of RH-consideration of the entrepreneurial spirit, entrepreneurship, and entrepreneurship-supporting climate based on VCEN and visible in IIDP projects and their realization. Solution requires systems thinking too (Ibid.).
13. Lack of RH-based transition from the closed-innovation to the openinnovation model of the IIDP. Solution requires innovation of VCEN and knowledge (Mulej et al, 2008).
14. Lack of RH-consideration of the role of patents and other intellectual property rights. Solution requires buying and/or selling them in time rather than too late or too early, or even donated for market to emerge later on (Chessbrough, 2003).
15. Lack of RH-consideration of organization’s emissions into the natural environment. Solution requires eco-remediation, health care, disabled people care, curing of natural disasters, etc. (Hamman et al, 2010; Hrast et al, editors, 2010).
16. Lack of RH-consideration of productivity, efficiency, and effectiveness factors and resulting benefits. Solution requires reaching managerial horizons beyond narrow-minded and short-term criteria of success (Senge et al, 2008).
17. Lack of RH-work on creation and maintenance of the VCEN and knowledge as well as possibilities supporting IIDP. Solution requires a permanent daily practice of all opinion-makers and others in organizations and society at large supportive of IIDP (Mulej et al, 2008).
18. Lack of RH-work on creation and maintenance of the VCEN and knowledge as well as possibilities of interdisciplinary creative co-operation of mutually different specialists. Solution requires managers to fight one-sidedness of specialists by strategy of IIDP (Mulej et al, 2008).
19. Lack of RH-work on creation and maintenance of the VCEN and knowledge as well as possibilities of friendship. Solution requires managers’ effort for creative co-operation of mutually different specialists, to fight one-sidedness of specialists and to enable them to not feel criticized, but rather completed up, by disagreements resulting from differences in selected viewpoints (Mulej et al, 2008).
20. Lack of RH-knowledge of personal/professional attributes of all crucial coworkers. Solution requires companies to function as synergies of SME’s-like units, which enable transparency and resulting motivation in VCEN.
21. Lack of RH-understanding that the so called National Innovation System does not cover innovation (i.e. users’ benefit) and diffusion (many users’ benefit) phases, but the invention phase only, or mostly, in a best-case scenario the suggestion and potential-innovation phases are covered. Solution requires government to support IIDP and SR by having all parts of the public sector supplied only by the organizations with most innovation, SR, business excellence and total/systemic quality (Mulej, 2007b).
22. Lack of RH-assessment of, and respect for, imagination capacity of managers and co-workers. Solution requires organization of work processes that supports coworkers’ effort to reach beyond daily routine obligations (Mulej, 2008).
23. Lack of RH-consideration of, and respect for, innovation of the managerial style, organization and methods supporting democracy at work rather than one-way commanding management. Solution requires application of Tables 1 and 2.
24. Lack of RH-consideration of the fact that external focus, decisiveness, imagination and courage, and RH of inclusiveness and domain expertise belong to the dialectical system of crucial attributes of managers and their co-workers for the organization’s business to be innovative. Solution requires permanent knowledge refreshment and related VCEN (Mulej, 2007b).
25. Lack of RH-consideration of the fact that success of IIDP is rare rather than normal, but failure prevails. Solution requires the approach to the contemporary, i.e.
innovative business to attain RH, for more than only a small percentage of ideas pass from the pre-development to the development of new options, and from there to the operation phase, and finally to the replacement (of obsolete offers) phase (Mulej et al, 2008).
26. Lack of RH-consideration of the future market trends in order to prevent the going-down phase of the product or service life cycle, and hence organizational life cycle, rather than falling into the trap of “recovering from success” due to oversights. Solution requires employment of knowledge and expertise of soft-science professionals beyond marketing and engineering, such as anthropologists and ethnologists (Mulej et al, 2008).
27. Lack of RH-consideration that measurement of business/innovation results matters, but the most crucial factor is the innovation-supporting VCEN and related knowledge and resulting detection and use of possibilities. Solution requires use of opportunity cost calculation (Malik, 2010). Traditional accountancy reporting is too one-sided.
28. Lack of RH-consideration that it is the nice/great experience which is sold to customers rather than products or services, only. It causes sending customers to competitors instead of SR service. Solution requires total customer orientation (Quinn, 2006).
29. Lack of RH-consideration of the fact that organization can learn very much from good universities and institutes. Solution requires the organization to cultivate its absorption capacity and clear insight in its own needs for knowledge and VCEN to be absorbed from other organizations, of course, with an active adaptation rather than passive imitation of ‘best practices’ from other circumstances (Mulej, 2007b; Quinn, 2006; etc.).
30. Lack of RH-consideration that there is no one single best model or practice of the IIDP that fits all organizations and all social and natural environments.
Solution requires open mind and adaption capacity (Mulej et al, 2008).
31. Corruption and other abuses of business relations, resulting in image that prevents people from dealing with corrupt people; it excludes them from business life and friendship, etc. Solution requires cultivation of ethics of interdependence (Mulej, Kajzer, 1998; ISO, 2010).
32. Poor quality rather than excellence of supplies of goods, services and work, which lead to similar consequences as corruption. Solution requires cultivation of ethics of interdependence (Mulej, Kajzer, 1998; ISO, 2010).
33. Poor reliability as business and personal partners, which leads to similar consequences as above. Solution requires cultivation of ethics of interdependence (Mulej, Kajzer, 1998; ISO, 2010).
34. Bluffing or lying; both behaviors lead to similar consequences as above.
Solution requires cultivation of ethics of interdependence (Mulej, Kajzer, 1998; ISO, 2010).
35. Persuasion of potential customers into fictitious needs for products, including medicines, and fictitiously necessary packaging, etc.; it leads to similar consequences as above and greed. Solution requires cultivation of ethics of interdependence (Mulej, Kajzer, 1998; ISO, 2010).
36. Fictitious democracy (reduced to voting from time to time), in which on one hand most people feel excluded rather than invited to help and create, and on the other hand one-sided decisions are passed by ‘majority in sessions’ rather than majority in reality and the most holistic proofs. Solution requires cultivation of ethics of interdependence (Mulej, Kajzer, 1998; ISO, 2010).
37. Poor pay/wages/salaries along with enormous managers’ and owners’ incomes; it causes a poor market due to a poor buying capacity of, at least, 85% of people as well as hate on their part, like in slave-owning and feudal economies/societies. Solution requires cultivation of ethics of interdependence (Mulej, Kajzer, 1998; ISO, 2010).
38. Poor working-moral resulting from feeling that owners and bosses misuse their employees, whom they view as cost rather than as their creative basis and coworkers. This managerial attitude means that the bosses and owners prefer to manage routine work rather than knowledge and creativity. The latter two cannot be ordered, but enabled by management including SR in e.g. the form of requisitely holistically managed work relations. Solution requires cultivation of ethics of interdependence (Mulej et al, 2008; Mulej, Kajzer, 1998; ISO, 2010).
39. Fluctuation of co-workers, mostly the better ones; they are able to find other jobs. This fluctuation results in loss of their expertise along with the resulting need to spend much time and money for acquisition and training of new co-workers.
Solution requires cultivation of ethics of interdependence (Mulej et al, 2008; Mulej, Kajzer, 1998; ISO, 2010).
40. Lack of fidelity, feeling of belonging due to impression that ‘we are not coworkers, but tools rather than humans, and our only remaining right is the right of irresponsibility toward our bosses and owners’. Solution requires cultivation of ethics of interdependence and innovation of the management style (Mulej et al, 1987, 1994, 2008; Mulej, Kajzer, 1998; ISO, 2010).
41. Strikes resulting from the same feelings and their causes, including the mismanaged revenues distribution. Solution requires cultivation of ethics of interdependence and innovation of the management style (Mulej et al, 1987, 1994, 2008; Mulej, Kajzer, 1998; ISO, 2010).
42. Terrorism resulting from the same feelings in combination with nationalism and religious cover of economic and social reality. Solution requires cultivation of ethics of interdependence and innovation of the management style (Mulej et al, 1987, 1994, 2008; Mulej, Kajzer, 1998; ISO, 2010), both inside organizations and in government.
43. Resistance against novelties that should become innovations, because of the prior experience that innovation can be used to cause un-employment rather than benefit except for the owners and bosses. Solution requires cultivation of ethics of interdependence and innovation of the management style (Mulej et al, 1987, 1994, 2008; Mulej, Kajzer, 1998; ISO, 2010).
44. Medical problems due to poor modernization of technology and work place safety. Solution requires cultivation of ethics of interdependence and innovation of the management style (Mulej et al, 1987, 1994, 2008; Mulej, Kajzer, 1998; ISO, 2010).
45. Medical problems due to abuse of the economic law of external economics by causing stress, polluting air, water, and soil, etc. Solution requires cultivation of ethics of interdependence and innovation of the management style (Mulej et al, 1987, 1994, 2008; Mulej, Kajzer, 1998; ISO, 2010) and knowledge about environmental problems that are, at their roots, mental problems (Ecimovic et al, 2002).
46. Rapid growth of population, because women are not enabled to study, while the more educated women have many less children; in addition, according to Nobel-Prize-for-Peace-2007 co-winner Prof. Dr. Luka Kajfe Bogataj the growth of population and growth of energy consumption per person have together burdened the Planet Earth about forty times more over the recent two centuries (orally, 2008, at Otocec ’08 conference on excellence, in round table). Solution requires cultivation of ethics of interdependence and innovation of the management style (Mulej et al, 1987, 1994, 2008; Mulej, Kajzer, 1998; ISO, 2010).
Etc. (Based on conclusions from papers presented at Hrast, et al, editors: 2006, 2007, 2008, 2009, 2010 and 2011, and our other research).
Crucial dangerous consequences of neoliberalistic one-sidedness All the listed and similar lacks of RH and resulting failures in taking all crucial attributes in account (via a dialectical system – See Table 1) cause waste of both human and material resources instead of social responsibility (SR), because the longer-term effects are over-looked as they are called less important side-effects.
Side-effects are a wrong classification, as the above quoted data tell us; they diminish competitiveness and hence benefits for all stakeholders, including shareholders, and society at large. Both human and material resources are under-used, or wrongly used, especially the human creativity, capability, and VCEN. The usual accountancy does not show these facts, the opportunity cost calculation does.
The public data about the crisis, though, do not show the essence of the problem, but its visible consequences only. The problem did not grow on a tree; it results from human behavior that lacks SR for humans to be less selfish for selfish reasons, i.e. less short-term and narrowly oriented in their behavior than so far – in order for the current human civilization to survive. The Planet Earth can live without humans (again, like it used to live for millennia, even billions of years), but humans cannot live without a healthy Planet Earth and hence without a healthy economy (Hrast, Mulej, editors, 2010; Mulej, Hrast, et al, 2010; Mulej, 2010; quoted references; etc.).
Thus, for very economic reasons, IIDP and innovation, as its outcome, need a broader definition than a technology-related one only (see Table 2 again). The EU’s definition (EU, 1995) is broad enough, in principle, although completely enterprisebased, but not elaborated in any detail; the technological innovation only is measured.
This causes a misinformation in statistics, which make the misleading bases for governments’, businesses’, and individuals’ decisions.
Additionally, safety issues can be added. The 2011 earthquake in North-East of Japan’s central island with a number of nuclear power-plants, the following tsunami, destruction and radiation was well published in public media in March 2011. The threats of one-sidedness rather than SR in e.g. human behavior toward humankind’s natural environment, though, have so far received more attention of ecologists than of criminal justice and security scientists (Mesko et al., editors, 2011).
Quite many authors agree that the neoliberal capitalism, which has denied social responsibility (SR), and even prohibited SR of business-persons decades ago, caused the current crisis by creating ‘Bubble Economy’ with monopolism – under the label of a totally free market – that provides chances only to a small minority of population (e.g..., Rop, 2011; Bozicnik et al, 2008; Dyck, 2011; Goerner et al, 2008;
Korade, 2011; Senge et al., 2008; Stern, 2006; etc.: see references in Mulej, 2010 and Mulej, 2011, on which this contribution is partly based).
1) In less than 150 years the world-wide span of wealth (measured in national per-capita-income) has grown from 3:1 to +500:1, leaving 85% of humankind under six USD a day and hence angry and envious, or without ambitions.
2) The natural carrying capacity of the Planet Earth to support the destructive living style of the current civilization has been overburdened several decades ago.
3) The increase of standard of living after the 2nd World War has been fictitious: the huge cost of maintenance of the natural preconditions for humankind to survive has been postponed and piled up rather than covered in real time. The unavoidable renewal of these preconditions may cost more than both world-wars combined, if the action is immediate; or even 20% of the world-wide GDP, if the action is postponed for another 20 or so years.
4) The increase of standard of living after the 2nd World War has been fictitious, also, because of growing and hidden debts of countries of the so-called developed world. These debts are now made visible around the world.
5) The big depression of 1930, to which the current crisis is found quite similar, according to many authors, was not simply resolved with Keynes’s economic measures, but continued as the 2nd World War in order for humankind to resolve the problems left over after the 1st World War. Similar problems are around. And so are nuclear weapons able to destroy the Planet Earth several times; this is a crucially new situation.
6) People forgot that organizations, including enterprises and states/governments are their tools rather than authorities above people; they are tools of those in the positions of higher human authorities, only, more or less.
7) The ‘Bubble Economy’ cannot last. SR must replace it.
8) In other words, the lack of SR has destroyed the slaves-owning and feudal societies and has created room for democracy and free-market economy; but the same lack of SR is surviving, called financial, neoliberal or feudal capitalism. Legal names are different, not much else. This is why SR is so much needed and discussed today.
But the content of SR is differently understood.
Definition of social responsibility (SR) There are many millions contributions about social responsibility on webpages;
they are too many to read. Our selection shows the following situation:
• The simplest version of SR is charity, but it might only be a mask for real onesidedness rather than RH of behavior of influential persons and their organizations.
• European Union (EU, 2001) mentions officially four contents of SR (of enterprises): the point is in a free-will-based acceptance of the end of abuse of employees, other business partners, broader society, and natural preconditions of humankind’s survival, beyond law.
• In literature on business excellence one requires more – upgrading of its measures with SR (For overview see: Gorenak, Mulej, 2010).
• In further literature one sees connection between systemic thinking and SR (Cordoba, Campbell, 2008).
• A further group of references links SR with world peace (Crowther, Caliyurt, 2004).
• ISO 26000 (ISO, 2010) requires a holistic approach (based on interdependence) and includes seven content areas: (1) organization, management and governance, (2) human rights, (3) labor practices, (4) environment, (5) fair operating practices, (6) consumer issues, and (7) community involvement and development. Figure 1.
The definition of SR in ISO 26000 was not passed by theorists and politicians alone, but by the International standards organization that is backed by businesses.
Therefore, we prefer to build on it, when the topic tackles IIDP/innovation and solving the current crises.
From all these aspects, humankind badly needs IIDP, to reach SR, and to survive as the current civilization; in this connection a broader definition of innovation that reaches beyond technology is needed.
Figure 1: Social responsibility in ISO 26000: 7 core subjects linked by (1) The Breadth of Perception of Innovation in the 2008- Crises Conditions Forty years ago, in 1971, OECD provided its broad and rather realistic official definition of innovation (EU, 1995). But many still tend to limit this term to technological innovation, including the official international statistics. But:
technology alone does not create the future; it is a tool of decisive humans and their followers (Collins, 2001; Collins, Porras, 1994). If it is a tool, does either onesidedness or RH/SR in humans’ behavior show the way out from the 2008- crisis?
Data about results of the recent decades expose the dangerous impact of one-sided decision makers, and the need for RH/SR (Bozicnik, 2007; Bozicnik et al., 2008;
Harris, 2008; Senge et al., 2008; Stern, 2006; etc.). SR reflects RH and wholeness of outcomes based on a RH, rather than one-sided approach to human activities.
The official international definition of innovation does not cover technology only, but the statistical guidelines in the related Oslo Manual cover technology only:
»Innovation is the renewal and enlargement of the range of products and services and the associated markets; the establishment of new methods of production, supply and distribution; the introduction of changes in management, work organization, and the working conditions and skills of the workforce« (EU, 2000: 4).
In the current trends, innovation may not be reduced to IIDP of products and services; it must rather cover the non-technological issues, too, or even first of all.
See Table 2 again.
Innovation of VCEN tends toward SR, ethics of interdependence, sustainable future, and RH of approach leading to requisite wholeness of outcomes of the human behavior. Management style- and VCEN-related innovation is the most influential: it switches from • ‘I think and decide, you work only’, to • ‘We all think and we all work, and we all listen to each other to attain RH’ This double innovation enables other types to show up. Management, governance, and organizing must practice crucially more RH than in the concept of the Chicago School of neo-liberal economy opposing and disabling Adam Smith's liberalism and its invisible hand, briefed above (Gorenak, Mulej, 2010; Senge et al., 2008; Prunk, 2010; Toth, 2008; Smith, 2010).
The 2008- crisis was not caused in 2008; it only surfaced then, as a consequence of the neo-liberal fictitious, rather than realistic, model of omnipotent market, called ‘market fundamentalism’, causing also fictitious innovations by bankand finance- people and the break of the fictitiously working real-estate market in USA (e.g.:..Rop, 2011). This crisis is obviously much deeper: the market cannot be relied upon, because it does not work as predefined by A. Smith (Smith, 2010).
Neither can governments be reliable, if they are biased and one-sided rather than requisitely or even totally holistic in their approach (Mulej and Kajzer, 1998). Thus, they can hardly attain the requisite wholeness of their insights and other outcomes.
Though, social responsibility is a novelty that is not yet fully realized and hence in need of non-technological IIDP.
Social responsibility – potential innovation that reduces cost If we consider the cited issues with RH, we find that SR only fictitiously and in a short term (perhaps) causes uncovered and avoidable costs (opponents of SR quote costs as reasons against SR, often; see public press).
If SR is reduced to its oldest content – charity – alone, then it causes cost. But charity is only a small, although often important, part of SR inside the involvement in community and its development. Other contents matter much more, in terms of solving the current global socio-economic crises. SR’s essence is end of abuse and its replacement by honesty and reliability beyond the official law, because SR is based on interdependence as the basis of honesty and reliability. E.g.:
Costs of honest behavior replace – as an opportunity cost that is hard to see in book-keeping data – costs that are clearly visible in book-keeping data, although often indirectly, such as cost resulting from:
• Mistrust on the part of managers, coworkers, and business partners;
• Double-checking of creditworthiness of new business partners, replacing • Dissatisfaction, causing poor work;
• Strikes, resulting from dissatisfaction, be them visible or white;
• Loss and regaining of high-quality co-workers and other business partners;
• Manager’s and co-workers’ routine-loving rather than creative/innovative • Misery and poor health and illnesses (which are cured rather than • Remediation of consequences of natural disasters, terror, and wars;
Thus, SR changes the practice of ownership as defined by the – still accepted – Roman law saying that the ownership gives to the owner the right of use and abuse.
Abuse must be replaced by SR/RH based on interdependence and ethics of interdependence for humankind – and its organizations, for that matter – to survive as the current civilization. This civilization faces problems of (1) extreme division and (2) affluence. Affluence is subjective; it causes the lack of ambition to work hard in order to have more, once one has everything one feels as a (preferential) need (James, 2007). Need differs from greed that is said to mean that ‘one buys things, which one does not need in order to impress individuals for who one does not really care’. Greed supports production beyond needs, but it ruins nature (resources, waste, climate, water, air, etc.) beyond needs, too, and is detrimental, in the longer terms, at least.
Development of SR is, hence, aimed to be an innovation of human behavior toward ethic of interdependence and resulting RH – for clear business reasons.
For SR to become more than a word, a strategy of promotion of SR – as a potential innovation – might be needed (Hrast, Mulej, 2008; Mulej, Hrast, editors, 2010).
Economic-development viewpoints of the transition to social responsibility The affluence phase becomes a dead alley, once people lose ambition to work hard and create (so far they did so, in history). People therefore need:
• Either a prolonged innovation phase based on requisite holism (RH) of the invention-innovation-diffusion processes (IIDP) rather than one-sided • A new phase, a 5th one; it includes, e.g.:
• Creative happiness based on values-culture-ethics-norms (VCEN) based on practice of creative cooperation, especially the interdisciplinary one, and • Resulting ethics of interdependence and interdisciplinary creative co-operation as a permanent habit and practice, • With social responsibility (SR) replacing the content-empty phase of affluence;
• For selfish reasons, people are less selfish, short-term thinking, and narrowminded, and they apply more RH/SR, in order to survive.
In the current trends, innovation may not be reduced to IIDP of products and services; it must rather cover the non-technological issues, too, or even first of all.
Technology is an important tool, but only a tool of humans. See Table 2 again.
The 2008- crisis was not caused in 2008; it only surfaced then, as a consequence of the neo-liberal fictitious, rather than realistic, model of omnipotent market, causing also fictitious innovations by bank- and finance- people and the break of the fictitiously working real-estate market in USA). This crisis is obviously much deeper: the market cannot be relied upon, because the ‘limited competition’, i.e. monopolistic market, does not work as the market’s invisible hand predefined by A. Smith (Smith, 2010). It does not prevent abuse of those with less bargaining power. It does not make the three notions of the French revolution – freedom, equality, and brotherhood – survive. Neither can goverments be realiable, if they are biased and onesided due to one-sided monopolisation and outvoting by the winning parties rather than requisitely or even totally holistic approach of parliaments. Thus, they can hardly attain the requisite wholeness of their insights and other outcomes.
See Table 1 again.
The above briefed process of the historic changes of the basis of competitiveness has caused equally historic changes in human VCEN and usually resulting behavior. See Table 3 (Mulej, Hrast, editors, 2010).
Table 3: From scarcity via complacency to either the danger of a new scarcity
PHASE ECONOMIC BASIS FOR RELATED VCEN
DEVELOPMENT1. Ownership of Natural resources and cheap labor, Scarcity and solidarity, natural factors providing for a rather poor life of collectivism, tradition rather than 2. Investment in Foreign investment into the area’s Growing differences, local modern economic development; hardly/poor competition, individualism, technology competitiveness in international ambition to have more, be rich 3. Innovation Nation or region lives on its own Growing differences and standard based on local progress and attains a better and of living, global competition, ethic 4. Affluence People have finally become rich, Complacency, no more ambition, 5. RH creation Material wealth suffices; effort Ethic of interdependence and SR, and social aimed at spiritual wealth, healthy ambition to create, diminish social responsibility natural and social environment as differences to those caused by (SR) requisitely holistic well-being creation, including innovation The Table 3 summarizes the long-term economic development, but this process was extremely accelerated after WWII: Table 4.
Table 4: Socio-economic development after the 2nd World War: from supplying to socially responsible enterprise (N.B.: X = synergy) 1945- Covering of post-war Supply of anything; supply does Supplying 1960- Suitable price (as judged by Internal efficiency, i.e. cost Efficient 1970- Add: X quality (as judged by Add: X technical & commercial Quality 1980- Add: X range (as judged by Add: X flexibility management Flexible 2000- Add: X contribution to SD (as Add: X sustainable development Sustainable 2010- Add: X social responsibility Add: X honesty reaching requisite SR/RH Progressive persons, including progressive entrepreneurs of the world-top companies (but not sufficiently many) started perceiving the blind alley decades ago.
This resulted in the ‘Club of Rome’ and later in 1992 Rio de Janeiro United Nations Summit and several later world-wide conferences and documents aimed at sustainable rather then one-sided and short-term oriented development. In progressive companies, and later on UN and European Union proclaimed that the neo-liberal economic theory and practice had been wrong, when thih theory prohibited business-people’s social responsisibility (by saying that ‘business of business is business for profit of company owners only’). The documents on SR were cited here earlier (Kaker, 2011); they were published over the period of about a decade ago and completed up in November 2010 by ISO 26000 on social responsibility. ISO – International Standard Organization has 169 countries members;
professionals, politicians, and trade unionists from 90 countries worked on ISO for several years (ISO, 2010). Now, the new concept is here, but needs time and action to become the prevailing VCEN and practice.
Social responsibility needs the invention-innovation-diffusion process A brief summary of the essence of social responsibility (SR) as a contemporary VCEN reads:
- The lack of SR that has destroyed the slaves-owning and feudal societies and has created room for democracy and free-market economy – is surviving, called financial, neoliberal, or feudal capitalism as the power of capital-owners applying their legal right of use and abuse. Legal names are different, not much else. This is why SR is so much needed and discussed today.
- The ‘Bubble Economy’ of neoliberalism cannot last for natural and economic reasons briefed above. SR must replace it.
- But the content of SR is differently understood, as briefed above.
- The most elaborated one is the definition of SR in ISO 26000.
- Due to the lack of systemic/cybernetic behavior the practical decision making has a one-sided and therefore misinforming basis. This has lasted for the entire preindustrial, industrial and information society periods. The dangerous climate change, over-population, lack of natural resources, and destruction of nature, including waste - all result from this absence, or lack, of requisite holism. The recent decade has seen official awareness of this dangerous absence of holism: United Nations and European Union launched documents supportive of social responsibility.
Then, in 2010 the ISO 26000 went a crucial step further: it calls (1) holistic approach and (2) interdependence the two common denominators of social responsibility.
Thus, ISO 26000 is joining the EU’s demand for systems theory (EU, 2004:4) cited earlier; systems theory is the theoretical basis for holistic approach:
- Bertalanffy, the father of the General Systems Theory wrote explicitly (1968, Foreword: VII) that he had created his theory against over-specialization, which means for holism by interdisciplinary approach;
- Wiener, the father of cybernetics, practiced interdisciplinary approach of engineering and biology professionals, on a project that resulted (also) in creation of cybernetics (Mulej et al., forthcoming).
Thus, these documents on social responsibility (SR) are asking for innovation of habits for humankind to overcome its dangerous economic theory of so far – the neo-liberalistic abuse of Adam Smith’s liberalism.
Social responsibility is offering a replacement for neo-liberalism of the recent several decades in socio-economic relations, although only organizations, including the public ones, rather than governments and individuals, are mentioned explicitly.
But organizations are tools of decisive humans, including the public ones and governments.
ISO 26000 is not meant for certification, but for self-assessment and selfinnovation reaching beyond technology to crucial non-technological topics (see Table 2 again).
The economic viewpoint of social responsibility reads:
(1) SR is VCEN and strategy of requisite holism (RH) based on interdependence, not (in)dependence reduces/eliminates troubles/costs caused by lack of satisfaction causing ‚opportunity cost‘, which are difficult to see in accountancy, e.g. by:
-- strikes & poor work, hence lost production and other work;
-- lost markets, hence the need for costly effort to find and persuade new consumers;
-- lost suppliers, hence the need for costly effort to find new reliable suppliers of work, material, investment, and capital;
-- lost partners, hence the need for costly recovering of cooperation and reliability;
-- lost good image/trust, hence the need for costly building up the image again ;
-- riots, terrorism, which ruin the normal life and its infrastructure;
-- eco-remediation, because natural preconditions must exist for humans to live and be healthy, which are very costly to renew and maintain after periods of onesided destruction;
-- medication, which requires a costly health service to exist and be developed;
All these troubles, problems, and cost are caused by one-sidedness and abuse of power.
(2) SR supports (in wording in ISO 26000):
• ability to attract and retain workers or members, customers, clients or • maintenance of employees' morale, commitment and productivity;
• view of investors, owners, donors, sponsors and the financial • relationship with companies, governments, media, suppliers, peers, customers and the community in which it operates.
ISO 26000 defines also the holistic approach and interdependence (lines 896 – 900 in ISO 26000):
»An organization should look at the core subjects holistically, that is, it should consider all core subjects and issues, and their interdependence, rather than concentrating on a single issue. Organizations should be aware that efforts to address one issue may involve a trade-off with other issues. Particular improvements targeted at a specific issue should not affect other issues adversely or create adverse impacts on the life cycle of its products or services, on its stakeholders or on the value chain.« Indirectly, ISO 26000 adresses holistic approach and interdependence often with concepts such as:
• stakeholders, rather than shareholders, • accountability, rather than irresponsibility, • transparency, rather than hiding the data and information, • ethical behavior, honesty, no abuse, no discrimination, no exploitation, rather than dishonesty and abuse of power and influence, • respect for rule of law and other rules, rather than illegal activities, Two telling anecdotes from old times: (a) when you want to say something about somebody, think (1) are you sure that the to-be-said message is totally true, (2) is it bringing benefit, if you say the message, (3) is it a good rather than a bad information about the tackled person; (b) a person about who such a message was launched, asked the person who had launched this message, to visit him at home and to cut a pillow full of feathers for the wind to carry feathers everywhere; then he asked that person to recollect feathers; when the person found this pillow unrenewable, the tackled/attacked person's response was: 'So is my reputation of an honest person.' • human rights, rather than mis-treatment of coworkers and other partners, • dialogue, rather than one-way commanding and resulting one-sidedness • wider impact, rather than consideration of the very direct consequences • healthy environment, rather than spoiling the natural preconditions of In summary, this means that interdependence is considered and hence the requisite holism is attainable by interdependent persons' and topics' interaction. This brings informal systems/cybernetics thinking/behavior in action, which is what might be the crucial novelty, after decades of specialists' opposing to systems theory and cybernetics as theories and practices of the requisitely holistic behavior. Both specialization and requisite holism are unavoidable and the requisite holism can be attained by cooperation of specialists who practice ethics of interdependence (Mulej, Kajzer, 1998). Still, efforts are necessary for SR to make interdependence and requisite holism the prevailing practice and to help humankind solve the current crises and create a new socio-economic order – for survival.
Five basic lines of measures/efforts for social responsibility to replace the dangerous one-sided and short-term neo-liberalism Five basic lines of measures to be undertaken are suggested:
1. Individuals: to understand and practice, as consumers, preference of the real needs over greed, and to prefer suppliers having a well-grounded image of social responsibility. Both has started happening in USA before the 2008 crisis (Gerzema, 2010; Zgonik, 2011).
2. Organizations, both enterprises of all sizes and other: to understand and practice social responsibility as a human attribute and business strategy that prevents or diminishes, at least, cost resulting from dissatisfaction of people briefed above, and from unhealthy natural environment (e.g. in the need for eco-remediation and medication of humans and other nature; etc.).
3. Country/government: to understand and practice that the public sector, as a whole, is the biggest customer and can therefore include in its procurement preconditions the demand and unquestionnable precondition, which says that any organization from the public sector (from kindergarten to government offices and army, etc.) may be supplied only by suppliers that can prove to be the very top in the combination of (1) social responsibility, (2) innovation visible in the top business excellence and total quality of its supplies and its internal and external business practice, all way to its ‘systemic quality’ as a systemic synergy of suitable prices, pay-role, development funds, technical and commercial quality, innovativeness all way to uniqueness of its supplies, suitable range offered, sustainable care for its natural environment and other contents of social responsibility, (3) attainment of the same attributes with its own suppliers and their care for the same attributes of their suppliers, including the influential employees, managers and governors as persons in all kinds of organizations, including government and parliament.
4. International community: understand and practice efforts to add to the international law, which is not obligatory and can therefore not be enforced except by agreement, world-law especially concerning the multinational corporations, world peace, and the basic human rights, while only these three topics may be the role of the world-democracy including the world government made of very honest and socially responsible persons without abuse of their influence.
5. Scientist and educators (including public media): produce and teach VCEN and methods supportive of social responsibility as human attributes and organizational vision, politics, strategy, tactics and daily practice, not limited to enterprises.
ConclusionAmong other consequences, the economic and social theory should stop seeing the only dilemma in either market or central planning, and the engineering and natural sciences should stop seeing the only important factor in the technological innovation. The real current issue is the innovation of VCEN of the decisive persons and organizations from one-sided and short-term orientation to social responsibility with its central notions of interdependence (replacing dependence and independence relations) and (requisite) holism (replacing one-sidedness and resulting oversights and resulting failures).
‘Problems cannot be solved with the mentality that has caused them’. Hence, the 2008- crisis cannot be solved with ethics of one-sided and short-term mentality of the industrial and neo-liberal economics, which has caused the ‘Bubble Economy’ of several recent decades. Neither the market nor the government alone have assured the common benefit of all humans so far, as they were supposed to in the so-called capitalistic or communistic/socialistic and other socio-economic orders over the recent centuries. The pre-industrial mentality has neither been able to assure the common benefit that should result from the ‘invisible hand’ and/or the ‘visible hand’ of power-holders. The decisions/actions have always been made and taken by humans, making or heading organizations, be it families, enterprises, nongovernmental organizations, public institutions, or government bodies. The role of organizations is to provide for synergetic co-operation of specialists toward holism as the basis of the common benefit.
These facts make us think about humans, their responsibility, values, culture, ethic, and norms (VCEN), with a focus on entrepreneurial and business life, in this text. They make us think about an innovative change in mentality (both as a process of beneficial change and as its outcome). Thus, we come to think of combining in a synergy (a) social responsibility (SR), (b) innovation, (c) the (Dialectical) Systems Theory (as the theory of attainment of the requisite holism (RH), without which the benefit of all can hardly be yielded). This means that we do not see the (corporate) SR as a simple charity or honesty of owners and managers in their relations with their coworkers, business partners, broader society (including charity as a part of SR) and nature (as a general precondition of human survival after centuries of nature’s destruction rather than maintenance), but as a/the new socio-economic order after neo-liberalism and its ‘Bubble Economy’. The latter disregards the natural and human capacities too much to be allowed to continue destroying humankind and its natural preconditions. One must attain sustainable future to survive.
Without SR, the current civilization hardly has a chance to survive. We prefer no limitation of SR to companies: they follow influential humans’ decisions. SR is a human attribute. Interdependence makes human honest and leads from one-sidedness to holism. ISO 26000 correctly does not limit social responsibility to corporations, but includes all organizations, which means all humans, too.
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- A New American Revolution Class Warfare Accelerating, Democracy Losing Grip. By Paul B. Farrell, October 04, 2011 "MarketWatch" -- SAN LUIS OBISPO, California - Kucinich to #OccupyWallStreet: Don't Forget the War - The Wall Street Occupations and the Making of a Global Counter Culture.
Mark Naison, Fordham University. October 3, 2011 (cross-posted from Facebook) http://occupywallst.org/ - Occupy Wall St primer (Washington Post) http://www.bbc.co.uk/news/world-europe- - Anti-austerity protesters block Greek ministries (Reuters) http://www.businessweek.com/ap/financialnews/D9Q6CA3O0.htm - Spanish youth rally in Madrid echoes Egypt protests (BBC) http://www.reuters.com/article/2011/10/04/greece-idUSL5E7L40BV - Occupy Wall St - online resources for the occupation http://www.washingtonpost.com/blogs/ezra-klein/post/occupy-wall-street-aprimer/2011/08/25/gIQAbX7oHL_blog.html Unions, students join Wall Street protesters (Businessweek)
THE ROLE OF NATIONAL IMAGE IN THE GLOBAL ECONOMY: THE
CASE OF RUSSIA
РОЛЬ НАЦИОНАЛЬНОГО ИМИДЖА В ГЛОБАЛЬНОЙ ЭКОНОМИКЕ:
СЛУЧАЙ РОССИИВ данной статье рассматривается имидж страны, описывается, как он измеряется, и имидж России в прошлом. В заключении приводятся последствия, с которыми сталкивается Россия в текущей глобальной экономике.
This paper introduces the concept of country image, describes how it is measured and the country image of Russia in the past. It concludes with the implications to Russia as it faces the current global economy.
Key Words: Country-image (CI); country-of-origin (COO); branding; Russia Introduction The present government of Russia realizes that the country falls behind other developed countries, in particular, with regard to high technologies. To remedy this situation President Dmitry Medvedev initiated and promotes the Skolkovo project.