SOCIAL RESPONSIBILITY AS A NEXT STEP IN DEVELOPMENT OF SYSTEMIC BEHAVIOR

TOWARD SYSTEMS SOLUTIONS OF SYSTEMIC PROBLEMS OF TODAY

DDr. Matjaž Mulej, Professor Emeritus (systems and innovation theory; social

responsibility)University of Maribor and

IRDO Institute for the Development of social responsibility, Maribor, Slovenia

E-mail: matjaz.mulej@um.si

The Selected problem and Viewpoint of Dealing With it Here

Many models of (corporate) social responsibility :-Good models, but enjoying a poor response of practitioners and politicians-Beyond charity a new socio-economic order

Against the neoliberal economic theory‘s global monopolies‘ - the most one-sided and short-term, but globally influential principles and criteria = extremely dangerous for existence of the current civilization:

Briefly about the global conditions requiring social responsibility - 1

• The world war III is here, just not in Europe (Ukraine?)(war on terror, 30/60 wars, 60 millions of refugees, ..)• Less than 750 out of 30 million studied organizations

control 80% of the world market;• 85 (eighty five) persons out of seven billion people own

as much property as the other 3.5 billion people own collectively, while the 85 persons most probably have no economic need for their property;

Briefly about the global conditions requiring social responsibility - 2

the share of the richest few percent is higher than ever after the global economic crisis of early 1930s,

Incomes of managers have grown twentyfold and in banks even more, while the employees in the western countries earn no more or even less that decades ago

Briefly about the global conditions requiring social responsibility - 3

The fourth phase of the development of the basis of competitiveness is here for the richer 15 percent: after ownership of the natural resources, investment in their better exploitation, and after the innovation phase, the affluence phase is dominatingan easy and rich life, but it kills ambition to work hard in order to have everything necessary, the real needs are covered, while the fictitious needs - some market and ruin a lot of nature

Briefly about the global conditions requiring social responsibility - 4

• The multinationals are governing over government, claiming even their right to be reimbursed, if they must take care of the health of nature and humans,

• As a result, the nature and the society are so badly damaged that NASA etc. project a very dangerous future: in only two decades the world population might be decimated

Briefly about the global conditions requiring social responsibility - 5

• The entire global amount of debts (of governments, enterprises, banks and households) has grown to 286% of the entire global GDP (Japan:400%; China 217%; USA 233%);

• All millionaires make 0.2% of humankind today, while persons with less than six USD/day were 85% of the global population before the current crisis, already;

• Etc.

Briefly about the global conditions requiring social responsibility - 6

These dangerous conditions one-sided and short-term behavior along with global influence, benefiting 1% of humans = lack of systemic behavior

Application of systemic – requisitely holistic behavior – via social responsibility – this is our suggestion for the way from this terrible global socio-economic crisis.

Ludwig von Bertalanffy

General Systems Theory against the over-specialization,

Sees no bright future unless humans become citizens of entire world rather than of single countries and care for the entire nature rather small pieces of it only

The notion system covers holism/wholeness rather than a narrow specialization

Norbert Wiener

created his Cybernetics in interdisciplinary creative cooperation – of the interdependent professionals

Both LvB and NW are poorly considered now, which causes very dangerous consequences for humankind and its natural preconditions of survival

The law of requisite holism

• Specialisation – limited to an individual chosen aspect: fictitious holism and realism causing (dangerous) oversight of a part of facts

• Requisite holism – a dialectical system of all essential and only essential viewpoints: less dangers for overlooking the crucial facts, and doable in practice

• Total holism – a system of completely all viewpoints, no oversights, but undoable in practice, including in creative inter-disciplinary cooperation (team-work)

The law of requisite holism in practice

The best global practices, which implicitly apply RH:- Collins, Porras, 1997; Collins, 2001; Collins 2005: visionary companies + good to great- Creech, 1994: cooperating, not one-sidedly commanding- Mondragon co-operatives (e.g. in Dyck, Mulej, 1998)- Florida's The Rise of Creative Class (2002): 3T- Sachs‘s The Price of Civilization (2011) - ISO 26000 etc. EU, 2011- Managers: long-term pay basis

Social responsibility (SR) – a crucial non-technological IIDP

a very long economic growth cycle 2008- crises SR: - Charity: old, obsolete, partial, a small part of SR- EU 2001: end of abuse, on a free-will basis- EU 2011: responsibility for impact on society

- A type of systemic (i.e. requisitely holistic) thinking- Precondition for world peace- ISO 26000: ./.HOMO ETHICUS times are to come

ISO 26000: 7 contents, 2 linking concepts:

1. Governance, management, organization2. Labor practices 3. Environment4. Fair business practices 5. Customers6. Human rights 7. Broader community

2 linking concepts:

1) Interdependence

2) Holism

SR Principles (ISO 26000)

(1) Accountability, (2) Transparency, (3) Ethical behavior*, (4) Respect for stakeholder interests, (5) Respect for the rule of law, (6) Respect for international norms of behavior, and (7) Respect for human rights.

*Ethical behavior = values of honesty, equity & integrity =- concern for people, and the environment and- commitment to address the impact of one‘s activities and decisions on stakeholders' interests.

Informal application of (D)ST by SR = non-technological innovation

Two concepts of SR connect all topics, all principles and all participants of the process of any work:•Interdependence, and•Holistic approach (= RH).

EU (2011): SR = way out from the crisis; support for economic reasons; member states and big enterprises urged to be role-models of SR = systemic behavior

UNO: similar (Global Compact) etc.

Seven steps of the procedure of introduction and diffusion of social responsibility into the

organization - 1

1. The relationship of an organization's characteristics to social responsibility,

2. Understanding the social responsibility of an organization,

3. Practices for integrating social responsibility throughout an organization,

Seven steps of the procedure of introduction and diffusion of social responsibility into the

organization - 2

4. Communication on social responsibility, 5. Enhancing credibility regarding social responsibility, 6. Reviewing and improving an organization's actions and practices related to social responsibility, and 7. Voluntary initiatives for social responsibility.

SR supports

competitive advantage, reputation, capacity to - attract and retain coworkers or members, customers or users, &keep -moral, ambition and productivity of employees, -favorable views of investors, owners, donators and financiers, as well as -relations to enterprises, government bodies, media, suppliers, and social community

In economic terms, SR prevents troubles experienced by coworkers and other business,

personal and societal partners Strikes, Cancel contracts, Have poor health, Be absent from work due to careless handling of row

materials, especially poisonous ones, and Other ruining of the natural environment that is a

precondition for human existence; etc. Opportunity costs and benefits – hardly in accounting

In economic terms, SR prevents troubles experienced by coworkers and other business,

personal and societal partners - 2

Economics of needs is replacing economics of greed and consumerism,which ruins the current civilization and its natural preconditions

by monopolies caused by (abuse of) neoliberalism.

ISO 26000 on holism and interdependence

»An organization should look at the core subjects holistically, that is, it should consider all core subjects and issues, in 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.« Interdisciplinary cooperation vs. over-specialization

Systems theory: a semi-hidden background of SR and innovation

“The Action Plan [First Action Plan for Innovation in Europe, 1996, based on Green Paper on Innovation, 1995] was firmly based on the ‘systemic’ view, in which innovation is seen as arising from complex interactions between many individuals, organizations and environmental factors, rather than as a linear trajectory from new knowledge to new product. Support for this view has deepened in recent years (EU, 2000)”.

Suggestions for action toward SR - 1

• Thus, the problems of survival of humankind are hidden more in values, culture, ethics, and norms, than in scientific knowledge

• Education should go in the direction ‘knowledge-cum-values’ rather than knowledge alone,

Suggestions for action toward SR - 2

• Practitioners should require, and get, professionals with – Ethic of interdependence, – Capacity of and deep devotion toInterdisciplinary creative cooperation rather than

individualism with over-specialization, and The rather broad and long-term criteria of efficiency and

effectiveness

Suggestions for action toward SR - 2

Happiness of humankind and survival of humankind are the basic unavoidable goals, profit is one of several tool supportive of these goals.

The alternative is the end of the current civilization, nothing less. This is why systemic solutions to systemic problems are urgent.

Strategy of promotion & implementation of SR

- Consumers – less/no greed, just real needs, pressure &- Organizations: (1) suppliers, (2) customers, (3) public awareness makers and users, (4) pressure &- Nations: support competition and fight monopolies: the best in SR, Business Excellence & Innovation – may supply public sector - & world-wide democracy- Scientists, educators, media: knowledge, VCEN

Some conclusions

Two concepts of SR connect all topics, all principles and all participants of the process of any work:•Interdependence, and•Holistic approach (= RH).

EU (2011): SR = way out from the crisis; support for economic reasons; member states and big enterprises urged to be role-models of SR = systemic behavior

UNO: similar (Global Compact) etc.

THANK YOU FOR WORRY & ACTION! ./.

Action or wait & see tactic?

Survival of humankind requisite holism involvement of many in interdisciplinary cooperation businesses and politicians alone with current K&V = not enough

New EU etc. initiatives = the way out from the blind alley of the current civilization by non-technological innovation

The short-term dilemma: SR with or without war (global)

STOP HATING YOUR (GRAND)CHILDREN!

THANK YOU FOR WORRY & ACTION!