Environmental and social campaigners in many respects are like
entrepreneurs – brilliant at spotting a gap and ruthless at exploiting
it. They share other characteristics too: an ability to achieve their
ends with minimal resources and a tendency to move onto the next big
thing before boredom strikes. Freewheeling strengths, however, can
foster the sense that rules are for others to follow.
Sustainability reporting is a minor, but revealing, example: it seems
companies are expected to disclose their social and environmental
impacts, while non-governmental organizations are not.
NGOs were quick to demand that companies begin reporting on their
non-financial performance, and business responded. But they were
quicker still to dismiss sustainability reporting as another
manifestation of greenwash. There are certainly examples that are
largely cosmetic, but many of the companies singled out for opprobrium
are more deserving of a ‘good first effort, needs to do better’ rating
than outright dismissal. Producing a non-financial report is not easy,
as Amnesty International, the only NGO to attempt one so far, is
discovering.
More serious is the practice of constantly moving the goalposts. This
is a very effective way of prodding companies to do better, and has
arguably been the single most effective tool used by pressure groups to
improve corporate environmental performance over the last three
decades. But if not done with forethought, it can conceal a lack of
strategic thinking, a common failing of cash-strapped organizations.
Too often, NGOs seem to think that as far as they are concerned,
different standards apply. The Catholic Agency for Overseas
Development, for example, has lately been promoting the 12 ‘golden
rules’ of sourcing gold written by Oxfam America and Earthworks (see page 5). Companies are complaining that these rules were drawn up with minimal business consultation.
If the intention is to outline aspirations for the industry, that is
fair enough; but companies are being asked to confirm that their
current operations satisfy this wish list. NGOs often stress the value
of cross-sectoral initiatives, yet sauce for the goose it seems, is not
sauce for the gander.
NGOs and companies alike share a need to balance ideals and
practicalities. NGOs are aware of this necessity, illustrated when the
European Commission attempted to persuade them to sign up to a
multi-stakeholder forum that was supposed to have played a vital part
in the future direction of policy – but was in fact biased towards
industry interests. They sensibly withdrew. Companies, too, require
similar room for manoeuvre. A common standard of accountability is
needed for NGOs and business alike.
