Editorial CSR is for life, not just a news cycle

STEVENGISLAM |

CSR is for life, not just a news cycle

As the EU announces a clampdown on greenwashing, IE’s Steven Gislam takes aim at the false claims, PR stunts, and lazy corporate sponsorships that may seem like good PR, but are doing more harm than good to business among an increasingly media savvy public

2020 was something of a trauma. It was a year that just kept on unfurling surprises and setbacks with such a flair for the dramatic that scriptwriters everywhere should be taking notes. Amid all this, many other events were almost eclipsed by the pandemic. While understandable, it led to a situation where events that would normally be big news, did not receive the coverage that they may have otherwise. But it doesn’t mean that they went unnoticed.

One such event came in Western Australia in May when Rio Tinto expanded an iron ore mine, and in doing so destroyed the Juukan Gorge, a 46,000-year-old site sacred to the local indigenous population (page 18). The blast proved to be a catalyst, causing outrage in the media, as subsequent revelations emerged and, ultimately, CEO Jean-Sébastien Jacques had to resign.

Not that long ago, incidents like that in Juukan Gorge could have gone largely unnoticed, perhaps remaining confined to the mid-sections of a left-leaning broadsheet. But the lesson that the mining giant should have learned is that those times are over. The torrent of negative publicity and the amount of public compassion for the continued plight of Australia’s indigenous communities serve to illustrate that.

The point is not to name and shame Rio Tinto per se. It is not the only multi-national accused of damaging heritage sites, local communities, or the environment. The point is that public tolerance for such behaviour is wearing thin and with each of these incidents, mistrust of corporations, industry and capitalism grows. We only need to look at Qanon and the storming of the Capitol building to see that it can lead to some dark places.

In 2021, public values and priorities are changing as the world becomes more connected and information is disseminated faster and farther. Something occurring in a remote Australian mountain range can quickly make waves on the other side of the world. Incidents like Juukan Gorge do not go unnoticed any longer, even with a distracted media.

As the post-war boomers settle into retirement, a new generation is emerging and making its voice heard, not just through protest, social media, or outright hacktivism, but also through investment.

This new breed of investors are the capitalists of the interconnected age, who put their money where their values are. The global investment community knows that the tide is turning, and its piqued interest in environmental, social, and governance (ESG) issues is reaching a tipping point. Investment firms have already begun applying pressure on industry and business leaders to make sustainable practices a priority for the sake of both their companies’ bottom lines.

Simply paying lip service to social injustices or environmental destruction also doesn’t cut it anymore either. The public is savvier now, and if a PR investment is perceived as insincere, it loses credibility – and can even backfire.

Take BAE Systems’ sponsorship of Pride events in the UK. While it is undeniably a sign that society has come a long way on LGBTQ+ rights and acceptance, it did not go unnoticed that the arms company draping itself in the rainbow flag in Britain, was simultaneously and silently exporting billions of dollars of weapons to countries like Saudi Arabia, where homosexuality is punishable by death.

On one hand, it’s good PR, and great for employee morale, but it can also appear disingenuous. Critics of the BAE sponsorship said the money would have been better spent on donations to NGOs and charities working directly with LGBTQ+ people in Saudi itself, where it is far more urgently needed. Because, if the oppressed people whom a company is claiming to stand with are not benefitting from such action, then who is?

It doesn’t stop at the end of the rainbow either. Last November, Geneva-based commodity trader Trafigura announced in self-congratulatory tones the signing of a deal with the government in DR Congo to improve conditions for those working at “artisanal” mining sites. The company will invest in strictly-controlled, safe mining zones in exchange for supplies of cobalt – a precious metal vital in the manufacture of laptops, smartphone and EV batteries.

This development was received with hefty cynicism by many Congolese, who are acutely aware of how companies like Trafigura created the problem in the first place.

From a Congolese perspective, the news might look like this: “In a country ravaged by poverty, war and still suffering the effects of Belgian misrule, the boom in demand for cobalt in developing countries has created a situation where world’s poorest are scrabbling through the earth in search of a metal to be used in a product that they cannot afford. Enter Trafigura, a white saviour atop a white stallion, offering such wild, decadent luxuries as basic working conditions and increased safety – for cobalt, of course.”

As an analogy, it is like someone bulldozing your house down, then handing you a tent to sleep in and expecting you to be grateful, whilst pulling the copper wiring out of the rubble.

The old response to negative publicity was to weather the storm and wait until it blows over. In a way, this is still true, but it doesn’t account for the cumulative effect that the continued trickle of such stories has on public confidence in industry as a force for good in the world.

Progressive businesses looking to make it to the other side of the energy transition need to demonstrate that they are in step with changing public attitudes. Using the #BLM hashtag, rainbow flagging a corporate logo, or bandying around words like “eco-friendly”, “sustainable”, or “environmentally-conscious” are not enough on their own. If multinationals and businesses wish to regain public trust, these words must be backed up with actions and avoid accusations of hypocrisy. n

Comment

3 Editorial CSR is for life, not just a news cycle

Focus on 3D printing

6 WASP unveils world’s first 3D printed habitat TECLA could be construction sector’s green disruptor 8 3D Printing news The latest from the industry

Focus on Construction & Engineering

10 Water-filled glass can “revolutionise building design” Dr Gutai’s glass-full approach to home heating 12 Construction & Engineering news The latest from the industry

Focus on Energy & Utilities

14 Lockdown energy use “a glimpse into the future” EnAppSys chief says we can learn from 2020’s lockdown 16 Energy & Utilities & Sustainability news The latest from the industry

Focus on Metals & Mining

18 Destructive mining practices a “loss for humanity” RMF says Juukan Gorge destruction is “another wake-up call” 20 Metals, Metalworking & Mining news The latest from the industry

VOL 31/1

News

22 Winning business New contracts and orders in industry 24 Linking up Combining strengths 26 Moving On Relocations and expansions across Europe 27 Technology spotlight Advances in technology

Featured in this issue…

28 CERAN greases – Performance that pays off! Total Lubricants 30 Driving automotive towards Bio-Based solutions EU’s Biomotive project is cleaning up the sector

Agriculture

33 At the cutting edge AGCO Above: LNS Group p75 Below: ALUTECH p78

Automation, Robotics & AI

36 Digital partner for sustainability and efficiency Schneider Electric 40 Smooth move Vanderlande

Automotive & Heavy Vehicles

44 Reliable automotive partner OE Industry 48 Electrified strategy in motion Groupe PSA

Construction & Engineering

51 Saving time, keeping safe Casa Noastra 54 Toys for children and adults COBI 58 Brake systems for rolling stock DAKO-CZ

Food & Beverage

62 Refrigeration technology for the world’s retailers Epta

Home Appliances, Furniture & HVAC

66 Re-inventing the headset GN Jabra 70 Furniture born from passion DFM

Metals, Metalworking & Mining

75 The specialist for machine tool peripherals LNS 78 Quality put to the test ALUTECH Above: Coats p85 Below: Procter & Gamble p88

Paper, Printing & Packaging

82 A strategy for sustainable growth Sofidel Group

Textiles, Home & Personal Care

85 Improving the fabric of life Coats 88 Pillar of strength Procter & Gamble (P&G)