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	<title>21st-century PR issues › Paul Seaman &#187; risk</title>
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	<description>I am a PR and love my trade. Nevertheless PR requires a reality check. We&#039;re about helping clients speak honestly, even robustly. People who run things have a lot of explaining to do in the next few years, so PR is crucial. I want a lively debate and I hope you’ll make it so.</description>
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		<title>Reset for nuclear PR</title>
		<link>http://paulseaman.eu/2011/03/reset-for-nuclear-power/</link>
		<comments>http://paulseaman.eu/2011/03/reset-for-nuclear-power/#comments</comments>
		<pubDate>Thu, 17 Mar 2011 12:57:32 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[Crisis management]]></category>
		<category><![CDATA[Energy issues]]></category>
		<category><![CDATA[Crisis]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">http://paulseaman.eu/?p=16462</guid>
		<description><![CDATA[The media says Fukushima is awful because it is worse than Three Mile Island (TMI), even if it&#8217;s nowhere near as bad as Chernobyl. But the case for nuclear power survived TMI and Chernobyl, so it can easily survive Fukushima. In fact, even with its accidents, nuclear energy is still worth the cost and it remains the [...]
Related posts:<ol>
<li><a href='http://paulseaman.eu/2011/03/media-suffers-a-fukushima-meltdown/' rel='bookmark' title='Media suffers a Fukushima meltdown'>Media suffers a Fukushima meltdown</a></li>
</ol>]]></description>
			<content:encoded><![CDATA[<p>The media says Fukushima is awful because it is worse than Three Mile Island (TMI), even if it&#8217;s nowhere near as bad as Chernobyl. But the case for nuclear power survived TMI and Chernobyl, so it can easily survive Fukushima. In fact, even with its accidents, nuclear energy is still worth the cost and it remains the safest of all the major energy sources. Here are some PR messages we need to get out&#8230;<span id="more-16462"></span></p>
<p>I know that the worst case &#8220;media-generated scenario&#8221; for Fukushima goes on getting worse every day, nevertheless, we ought to be bold. Indeed, dammit, I&#8217;ll risk being cocky. Nuclear PR professionals – but also disinterested intelligent bystanders – need to communicate in a relaxed, mature and non-defensive tone:</p>
<ul>
<li><strong>Fabulous new-improved nuclear plant will suffer calamity of some sort at some point.</strong></li>
<li><strong>Media fallout is the biggest nuclear hazard.</strong></li>
<li><strong>People work hard to increase their risk of cancer.</strong></li>
<li><strong></strong><strong><strong>Nuclear has been pretty safe so far, and better than the greenest source.</strong></strong></li>
<li><strong><strong></strong></strong><strong>We can have it all &#8211; nukes, coal, oil, hydro, wind, wave, solar and every other alternative energy source you can envisage.</strong></li>
</ul>
<p>See talk tracks, proof points and soundbites below&#8230;</p>
<p><strong><strong>&#8220;Fabulous new-improved nuclear plant will suffer calamity of some sort at some point.&#8221;</strong></strong></p>
<p>There&#8217;s no reason why nuclear spokespeople should say otherwise. They can even add that whilst science, engineering and risk analysis suggests it is extremely unlikely, the extremely unlikely will as likely as not turn into some kind of reality. But so what? Particle physics meets sod&#8217;s law, like everything else.</p>
<p>The point that nuclear PRs need to repeat is this: we will go on getting better at developing nuclear technology. We shall go on getting better at creating nuclear plant suited for the environment in which they are located. Fukushima is the same age of technology as Chernobyl and TMI and they provide us with lessons for the future.<br />
<strong></strong></p>
<p><strong>&#8220;Media fallout is the biggest nuclear hazard.&#8221;</strong></p>
<p>For a few days or weeks some population (like today&#8217;s Tokyo) will face some uncertainty. The media will make it as bad as possible. Maybe that&#8217;s the point. Almost all the media have talked nonsense about Three Mile Island and Chernobyl since they happened. As the media&#8217;s eclipse of Japan&#8217;s earthquake and Tsunami victims in preference for speculation over Fukushima reveals, it&#8217;s like a disease with these people.</p>
<p><strong>&#8220;People work hard to increase their risk of cancer.&#8221;</strong></p>
<p>Maybe things will go wrong and they&#8217;ll face an actual higher cancer risk from nulcear power as well as today&#8217;s &#8220;merely&#8221; feared one. But the most concerned type of citizen already works hard to create increased cancer risk: they diet and jog and meditate so as to live longer. After all, longevity is their biggest cancer risk (and almost everyone else&#8217;s too), and, in the nuclear age, we are living longer lives than ever, thanks to nuclear medicine and obsessive lifestyle anxiety.</p>
<p><strong>&#8220;Nuclear has been pretty safe so far, and better than the greenest source.&#8221;</strong></p>
<p>Regardless of Windscale, Three Mile Island, Chernobyl and now (with luck) Fukushima, nuclear energy <a href="http://gabe.web.psi.ch/pdfs/PSI_Report/ENSAD98.pdf" target="_blank">has an unsurpassed safety record</a> among the major electricity-generating sources. For instance, there have been 0.006 fatalities per GWe year of nuclear electricity produced compared to 15 times as many fatalities per GWe year for natural gas; and 1000 times as many fatalities per GWe year for coal, oil and hydropower.</p>
<p>Here&#8217;s a few examples for hydropower. In China around 170,000 people died when Banqiao and Shimantan burst in 1974; almost 30,000 immediately and the rest because of latent effects. A decade earlier Europe also had its fair share of similar accidents. In 1959, 400 people died in France when the Fréjus reservoir ruptured; and in 1963, 2000 died in Italy because of crumbling ground at the Vajont reservoir.</p>
<p>We shouldn&#8217;t forget the explosion on the Piper Alpha oil platform killed 167 people in 1988. BPs recent problems must be fresh in all our minds, too.</p>
<p>If the scale of a potential accident rules out an industry&#8217;s right to exist, then what are we to make of Bhopal, India, in 1984? A Union Carbide chemical plant there killed three thousand people when 40 tons of toxic methyl isocyanate gas leaked and contaminated the surrounding environment. But we all know that the chemical and pharmaceutical industries benefits many more people than they harm.</p>
<p>I&#8217;m not trying to spread fear here about other energy and industrial sources. All energy is bottled force. The entire energy industry has mostly handled its controlled release responsibly. But the evidence suggests that nuclear technology is low risk. Windscale killed nobody. Three Mile Island killed nobody and left no measurable long-term carcinogenic risks in its wake.</p>
<p>Meanwhile, we should remind the world that the Chernobyl accident killed around 50 people in 1986. Most of its exclusion zone is now being dismantled and being re-settled and farmed again safely. Though as many as 9, 000 people (4, 000 of those among the 6 million most affected population) might die a slightly premature death from Chernobyl-related cancers. However not only is that worst-case outcome unlikely, we shall never know because that statistic cannot be measured among the many millions of people it encompasses.</p>
<p>The biggest risk from nuclear energy is people&#8217;s fear of it. In the aftermath of Chernobyl, unfounded fear and anxiety was the most damaging consequence of the accident investigators could discover (see <a href="http://paulseaman.eu/2010/04/chernobyls-death-toll-interrogated/" target="_blank">here</a> for a full interrogation of Chernobyl&#8217;s death toll). But that fear is something the media helps generate.</p>
<p>Hence, the media also must learn from its past mistakes. It, too, must face up to its responsibility to protect the public. A little less hype and scaremongering over Fukushima would make a most welcome start. The next step would be to have an honest debate about risk and energy policy. That&#8217;s something nuclear PR can help facilitate.</p>
<p><strong> &#8220;We can have it all.&#8221;</strong></p>
<p>However, we can have nearly everything: nuclear (with the odd calamity); oil and gas (with more frequent calamities; bought from dictators and religious fundamentalists); solar (might become seriously lovable and economic quite soon); wind (not always, and not where you&#8217;d like it); hydro (big hazards; plenty of enemies); conservation (if we can be bothered to live like cavemen). It&#8217;s all possible, and all has real risk or drawback, including (variously) fear, guilt, patience, or tedium. Which do we prefer? Which most solves the global warming problem?</p>
<p>Well, clearly nuclear energy has fewer greenhouses gases than coal, oil and gas. Green alternative energy sources provide far from proven technological solutions, at greater cost than nuclear energy. Moreover they have to yet to show that they are adequate to the task of replacing coal, oil, gas and nuclear energy. The least risky route of all would be if our governments hedged their bets and adopted a mixed bag of solutions (read all of the above).</p>
<p>Related posts:<ol>
<li><a href='http://paulseaman.eu/2011/03/media-suffers-a-fukushima-meltdown/' rel='bookmark' title='Media suffers a Fukushima meltdown'>Media suffers a Fukushima meltdown</a></li>
</ol></p>]]></content:encoded>
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		<slash:comments>9</slash:comments>
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		<title>Media suffers a Fukushima meltdown</title>
		<link>http://paulseaman.eu/2011/03/media-suffers-a-fukushima-meltdown/</link>
		<comments>http://paulseaman.eu/2011/03/media-suffers-a-fukushima-meltdown/#comments</comments>
		<pubDate>Sun, 13 Mar 2011 14:22:17 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[Crisis management]]></category>
		<category><![CDATA[Energy issues]]></category>
		<category><![CDATA[Crisis]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">http://paulseaman.eu/?p=16456</guid>
		<description><![CDATA[Nobody can be anything but shocked by the devastating impact of the earthquake and Tsunami on Japan. The scenes were on a scale hardly envisaged by a Hollywood disaster movie. Yet that&#8217;s no excuse for the media&#8217;s seeming loss of nerve and perspective over the troubles at Fukushima nuclear power plant. Clearly, the pictures of the [...]
No related pages.]]></description>
			<content:encoded><![CDATA[<p>Nobody can be anything but shocked by the devastating impact of the earthquake and Tsunami on Japan. The scenes were on a scale hardly envisaged by a Hollywood disaster movie. Yet that&#8217;s no excuse for the media&#8217;s seeming loss of nerve and perspective over the troubles at Fukushima nuclear power plant.<span id="more-16456"></span></p>
<p>Clearly, the pictures of the reactor building&#8217;s side walls and ceiling exploding that we all saw live on TV were startling. But it was obviously not a nuclear explosion. As Malcolm Grimston, associate fellow at Chatham House in London, <a href="http://www.mirror.co.uk/news/top-stories/2011/03/13/countdown-to-the-fukushima-blast-115875-22985879/" target="_blank">remarked</a>:</p>
<blockquote><p>&#8220;Thankfully, although the explosion was spectacular, it wasn’t devastating and it seems the force was not sufficient to breach the reactor’s metal shell.&#8221;</p></blockquote>
<p>Of course, the authorities in Japan rightly evacuated around 170 000 people from a twenty kilometer radius from the plant.<a href="http://paulseaman.eu/wp-content/uploads/2011/03/The-Sunday-TimesSunday-March-13-2011.jpeg"><img class="alignright size-full wp-image-16457" title="The Sunday Times,Sunday, March 13 2011" src="http://paulseaman.eu/wp-content/uploads/2011/03/The-Sunday-TimesSunday-March-13-2011.jpeg" alt="" width="116" height="178" /></a> But that was a precautionary move, not one born out of panic. There was some mildly radioactive steam and or hydrogen that needed venting from the plant. It was wise to remove people from its vicinity while the gas dispersed harmlessly into the atmosphere.</p>
<p>To put all this in perspective, the authorities have rated the incident so far at 4 on the 0-7 international scale of severity. The 1986 Chernobyl disaster was rated 7, with the official death toll being just under 50, though as many as 4,000 could die eventually as a consequence of that accident. The 1979 Three Mile Island accident was rated 5. Notably in that case nobody was killed or seriously injured, and no long term health consequences are expected.</p>
<p>Sure, the recent earthquake and Tsunami have pushed the safety defences at Fukushima to the limit. We don&#8217;t know yet whether the two troubled reactor cores at Fukushima &#8220;merely&#8221; suffered fuel damage, a partial meltdown or the near full meltdown that occurred at Three Mile Island. But we can say with some certainty that that lack of knowledge is not that important. It took years before we knew the full extent of the meltdown at Three Mile Island. That&#8217;s because it is not possible to poke one&#8217;s head, or even a camera, into the reactor core until it cools down and the radiation levels allow it.</p>
<p>There is something very credible and laudable about Japan&#8217;s safety-first nuclear culture at work in Fukushima. They have flooded their reactors with seawater &#8211; which effectively destroys them &#8211; to make 100% sure that they cool down harmlessly; the main threat being hydrogen and steam explosions caused by the reactor&#8217;s heat.</p>
<p>The picture emerging from Fukushima is &#8220;reassuring&#8221;. The onsite and offsite consequences &#8211; no deaths and just a few injuries and some dispersal of mildly radioactive gas &#8211; have been limited. That&#8217;s what a safety case and the regulatory authorities demand from a nuclear plant&#8217;s in-depth multi-layered defences.</p>
<p>It is my view, that the Japanese handling of this nuclear incident at Fukushima - whether they made mistakes or not &#8211; will validate the safety case for old nukes.</p>
<p>So there&#8217;s something very skewed, overblown even, about the media&#8217;s reporting on Japan&#8217;s earthquake and Tsunami disasters: we know there are tens of thousands of people dead, hundreds of thousands more homeless or stranded, yet everybody is talking excessively about a troubled nuclear plant that has not and most likely will not kill anybody.</p>
<p>However the media were playing up to stereotypes over Japan&#8217;s nuclear troubles. There&#8217;s a rich history associated with nuclear scaremongering, not least because the public has an appetite for horror stories.<a href="http://paulseaman.eu/2010/04/three-mile-island-bbc-gets-it-wrong/" target="_blank"> At Three Mile Island in 1979 the meltdown</a> occurred at the outset of the shutdown. The media and politicians then spent weeks terrorizing the world as they speculated about the terrible impact of a meltdown that had been so undramatic that nobody noticed it had happened already with little consequence.</p>
<p>As I have reported extensively on this online review, while Chernobyl was an horrific disaster, it was no where near as bad as the doom-mongers claimed &#8211; see <a href="http://paulseaman.eu/2010/04/chernobyls-death-toll-interrogated/" target="_blank">here</a> <a href="http://paulseaman.eu/2011/01/how-chernobyl-myths-became-official/" target="_blank">here</a> and <a href="http://paulseaman.eu/2010/04/chernobyl-and-the-media-case-studies/" target="_blank">here</a>.</p>
<p>So the western nuclear industry now has a major PR challenge on its hands. The challenge will be to convince the world that core meltdowns do happen and that the evidence shows that they don&#8217;t matter much (Chernobyl being a unique case). That calls for some straight and upfront risk management communication, one that can show that new nukes are even more reassuringly safe than old ones.</p>
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		<slash:comments>22</slash:comments>
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		<title>England never stood a chance with FIFA. Good.</title>
		<link>http://paulseaman.eu/2010/12/england-never-stood-a-chance-with-fifa-good/</link>
		<comments>http://paulseaman.eu/2010/12/england-never-stood-a-chance-with-fifa-good/#comments</comments>
		<pubDate>Fri, 03 Dec 2010 12:21:30 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[Political spin]]></category>
		<category><![CDATA[Zurich]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">http://paulseaman.eu/?p=15508</guid>
		<description><![CDATA[Britain&#8217;s David Cameron just spent three days schmoozing the unschmoozable FIFA bigwigs. But did he and Prince William really delude themselves that their assorted PR team, powerpoint presentations and charm could bring the 2018 World Cup to England? Let&#8217;s hope not. My countryfolk are screaming foul. Oh dear, they were always dreaming. They never stood [...]
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			<content:encoded><![CDATA[<p>Britain&#8217;s David Cameron just spent three days schmoozing the unschmoozable FIFA bigwigs. But did he and Prince William really delude themselves that their assorted PR team, powerpoint presentations and charm could bring the 2018 World Cup to England? Let&#8217;s hope not.<span id="more-15508"></span></p>
<p>My countryfolk are screaming foul. Oh dear, they were always dreaming. They never stood a chance. It is possible that England&#8217;s governing Football Association thought that PR could influence the outcome. The Russians showed them what nonsense that was. They lost the technical and commercial bids and the wider PR campaign. Yet they won the vote to host the World Cup because they were offering what FIFA craves. The Russians probably also focused almost exclusively on the private views of the 22 committee members, rather than FIFA&#8217;s public rhetoric.</p>
<p>Never mind any possibility of corruption&#8217;s persuasive powers, there were sound reasons for Russia&#8217;s win. FIFA&#8217;s President Sepp Blatter has long been intent on spreading football&#8217;s influence across the globe. As the BBC reported:</p>
<blockquote><p>Russia wrapped things up with their Fifa member Vitaly Mutko pointing out that eastern Europe has never previously hosted the World Cup.</p>
<p>&#8220;Twenty one years ago the Berlin Wall was broken,&#8221; said Mutko. &#8220;Today we can break another symbolic wall and open a new era in football together.</p>
<p>&#8220;Russia represents new horizons for Fifa, millions of new hearts and minds and a great legacy after the World Cup, great new stadiums and millions of boys and girls embracing the game.</p>
<p>&#8220;Russia&#8217;s economy is large and growing, and Russia&#8217;s sports market is developing markedly.&#8221;</p></blockquote>
<p>The last World Cups have been in Japan and South Korea (2002) and South Africa (2010). The next ones will be in Brazil (2014), Moscow (2018) and then Middle East (2022). The fact that Russia and Qatar were high-risk choices should provoke a &#8220;so what&#8221; response. Risk is a challenge to overcome and not a reason for inaction or rejection.</p>
<p>Actually, wouldn&#8217;t a good liberal, kindly, globalising, civilised view be that it is exactly right that FIFA&#8217;s choices fell as they did? Russia (which has for centuries half-yearned to be Europeanised) and Qatar (which has for several years been an invaluable Western-bridgehead to the Moslem world) are the very places where football may be a benign influence. Indeed, why not argue that football mostly thrives in Westernised countries, but can be a force for culture and good in more backward countries just as it is in Manchester&#8217;s Moss Side?</p>
<p>The British footballing establishment&#8217;s moan that FIFA is bent, or at least manipulatively dishonest, reeks of sour grapes. It is a statement of the blindingly obvious. But given what goes on from the FA downwards in Britain&#8217;s domestic game, claiming moral superiority whiffs of cynical hypocrisy.</p>
<p>Meanwhile, anybody who blames the British media for FIFA&#8217;s rejection of England&#8217;s bid is looking for scapegoats. The BBC&#8217;s <em>Panorama</em>&#8216;s controversial last-minute report on FIFA&#8217;s &#8220;wrong doings&#8221; lacked substance and was far from convincing and very possibly libelous. However,The Sunday Times did cleverly catch two of FIFA&#8217;s World Cup selection committee openly selling votes for cash. But so what? England was already defeated. In this battle, winning never depended upon the media&#8217;s support.</p>
<p>The question, then, is why did prime minister David Cameron expose himself to inevitable humiliation on the world stage? There are a couple of linked possible explanations. Clearly, he would have quite liked to host the World Cup. Presumably, it would have helped pay for the 2012 Olympic infrastructure losses. He may have lusted after the competition&#8217;s ability to bring his people together around a vision of sporting glory at Wembley Stadium: but that would have been a dream, too, surely? We might have proven ourselves good losers and warm hosts: as South Africa did. Indeed, it may well be that we rise to similar opportunities during the Olympics. Let&#8217;s hope so.</p>
<p>The only explanation I can propose is that at home David Cameron was in a no-lose situation. Backing the bid, and going down with the ship, gave him a chance to modify his Top Toff Tory, Squire Cameron, image: he was at one with us oiks, at small cost to his pride. (Ditto, the heir to the throne, by the way.)</p>
<p>We have to hope that Britain&#8217;s Foreign Office and its spy network had enough inside information to advise David Cameron wisely about the FIFA process (if not he could have asked me). Hence, it is doubtful that defeat came as a complete shock, even if the lack of even minimal support did.</p>
<p>It is time that people got real about football. It is the last bastion of the politically incorrect and skullduggerous old world. It gets away with it because it is a game that provokes passion precisely because it does not obey the real world&#8217;s rules. If Cameron and Barack Obama, who wailed that the rejection of the US bid was a mistake, had remained cool and stood aloof, Russia&#8217;s and Qatar&#8217;s victories would not have been half so consequential politically, indeed they could have been welcomed gracefully.</p>
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		<title>Voodoo PR versus &#8220;Voodoo Academia&#8221;</title>
		<link>http://paulseaman.eu/2010/08/voodoo-pr-versus-voodoo-academia/</link>
		<comments>http://paulseaman.eu/2010/08/voodoo-pr-versus-voodoo-academia/#comments</comments>
		<pubDate>Fri, 27 Aug 2010 17:27:15 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[CSR reality check]]></category>
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		<guid isPermaLink="false">http://paulseaman.eu/?p=14462</guid>
		<description><![CDATA[Richard Edelman&#8217;s Voodoo Academia replies to Professor Aneel Karnani of the University of Michigan’s Business School&#8217;s The Case Against Corporate Social Responsibility. But who&#8217;s voodooing whom? Here&#8217;s the essence of Professor Karnani&#8217;s case: &#8220;Companies that simply do everything they can to boost profits will end up increasing social welfare. In circumstances in which profits and social welfare [...]
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			<content:encoded><![CDATA[<p>Richard Edelman&#8217;s <a href="http://www.edelman.com/speak_up/blog/archives/2010/08/voodoo_academia.html" target="_blank">Voodoo Academia</a> replies to Professor Aneel Karnani of the University of Michigan’s Business School&#8217;s <a href="http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748703338004575230112664504890.html" target="_blank">The Case Against Corporate Social Responsibility</a>. But who&#8217;s voodooing whom?<span id="more-14462"></span></p>
<p>Here&#8217;s the essence of Professor Karnani&#8217;s case:</p>
<blockquote><p>&#8220;Companies that simply do everything they can to boost profits will end up increasing social welfare. In circumstances in which profits and social welfare are in direct opposition, an appeal to corporate social responsibility will almost always be ineffective, because executives are unlikely to act voluntarily in the public interest and against shareholder interests.&#8221;</p></blockquote>
<p>Here&#8217;s the essence of Mr. Edelman&#8217;s reply:</p>
<blockquote><p>&#8220;[Edelman's case studies] demonstrate that contrary to Karnani’s assertion, the decision isn’t whether to run an effective, “smart” business or a socially responsible, engaged one. Performance with purpose (a term used by PepsiCo CEO Indra Nooyi) is not an either/or proposition.&#8221;</p></blockquote>
<p>Now, as it happens, Richard Edelman makes a good point. But he also misses it completely. The core social purpose of a corporation is to provide whatever goods or services it is in business to deliver &#8211; be that street cleaning, cigarettes, incubators, medicines, machine guns or bubble gum. Mr Edelman, in contrast, believes that a smart business is an engaged one with a purpose. Engaged in what else other than what it does, I ask.</p>
<p>Mr. Edelman tries to explain it with three examples drawn from his client base:</p>
<p><a href="http://www.edelman.com/speak_up/blog/" target="_blank"></a></p>
<blockquote><p><a href="http://www.edelman.com/speak_up/blog/" target="_blank"></a><a href="http://www.edelman.com/speak_up/blog/" target="_blank">&#8220;Unilever’s Omo Detergent adopted the “</a><a href="http://www.filterforgood.com/">Dirt is Good</a>” campaign &#8211; aligning with the brand’s business proposition by asserting that “every child has the right” to be a child and get dirty. After fielding new academic research highlighting the importance of outside play for the physical and social development of children and engaging parents, governments and NGOs to take action, the campaign triggered real social change – Vietnamese schools agree to assess national provisions for school recess while the brand commits to build 100 playgrounds over three years.&#8221;</p></blockquote>
<p>He&#8217;s shooting himself in the foot. Unilever&#8217;s campaign has self-interest at its core. The aim here is to produce more dirty children that will require the use of more of its product to clean up the mess. Moreover, from my experience as a parent, kids don&#8217;t need much encouragement to get their clothes dirty or to play outside (try stopping them).</p>
<p>He tells us how the <a href="http://www.filterforgood.com/">Clorox Brita’s FilterForGood campaign</a>:</p>
<blockquote><p>&#8220;&#8230;inspires consumers – and communities – to take a personal pledge and even engage in (planet) healthy competition with others to reduce their bottled-water use, as well as informs them about other environmentally-friendly decisions that each can personally make.&#8221;</p></blockquote>
<p>In essence, he&#8217;s positioning his client&#8217;s &#8220;healthy product&#8221; against the bottled water industry&#8217;s and mains suppliers&#8217; supposedly environmentally unfriendly or unhealthy alternatives. That is, for as long as Brita remains a client and come the day Edelman represents, say, <a href="http://www.thenibble.com/reviews/main/beverages/waters/san-pellegrino.asp" target="_blank">San Pellegrino</a>, or has to convince us that a utility produces a product fit to drink straight from the tap. This should warn us that the &#8220;public interest&#8221; Mr. Edelman favours is often just the selfish interests of his clients.</p>
<p>Then, if those two weak cases weren&#8217;t enough, he adds:</p>
<blockquote><p>&#8220;<a href="http://www.refresheverything.com/">The Pepsi Refresh Project</a>, partnering with NGOs and experts, is directly crowd sourcing ideas from consumers to foster innovation in social good – awarding more than $20 million this year to fund local community initiatives and ideas that refresh the world.&#8221;</p></blockquote>
<p>Regardless of the trendy crowd sourcing, that&#8217;s just a classic &#8211; old-style &#8211; brand marketing and awareness-raising campaign. It is, actually, a very low budget one for a company with $9.4 billion in revenues.</p>
<p>One wonders why Mr. Edelman didn&#8217;t mention another esteemed client: Ryan Air. It is one which is likely to accuse Professor Karnani of being soft rather than harsh in his defence of profit. Ryan Air states unambiguously that shareholder value comes before its staff, customers, partners and suppliers. Ryan Air has little time for stakeholder PR or for CSR, except as the butt of jokes. Here&#8217;s <a href="http://blogs.wsj.com/source/2010/08/04/bumpy-ride-ahead-for-ryanairs-new-pr-firm/" target="_blank">the brief that Edelman</a> pitched for:</p>
<blockquote><p><span style="font-size: 12.7315px;">“Wanted: PR firm who is able to LOL at the advertising gags, and doesn’t mind poking fun at expensive airports, rivals, prime ministers … and even popes! No precious, sensitive, politically correct or clock-watching publicists need apply. Long hours, stamina and patience of St. Christopher, the patron saint of travel, are all prequisites.”<a href="http://paulseaman.eu/wp-content/uploads/2010/08/OB-JL694_ryanai_G_20100804080057.jpeg"><img class="size-medium wp-image-14529 alignright" title="AFP/Getty Images Irish low-cost airline Ryanair recently used a photograph of Zimbabwe’s President Robert Mugabe to illustrate its comparison of rival easyJet’s punctuality with that of Air Zimbabwe. The move came 10 days after Ryanair paid out undisclosed libel damages to easyJet’s founder." src="http://paulseaman.eu/wp-content/uploads/2010/08/OB-JL694_ryanai_G_20100804080057-300x200.jpg" alt="" width="281" height="187" /></a><br />
</span></p></blockquote>
<p>Now, don&#8217;t get me wrong. I&#8217;m not against corporations acting responsibly or managing their risks properly. I accept Ryan Air is an outlier; though it is one which has moved an entire industry&#8217;s behaviour in its direction. It is just that most CSR is shallow dishonest nonsense that sails close to propaganda, as BP&#8217;s Beyond Petroleum clearly did.</p>
<p>It is precisely such transparent charades and double-speak that generates the disabling cynicism that undermines public confidence in modern institutions. So there&#8217;s something refreshing about Professor Karnani&#8217;s bluntness and Ryan Air&#8217;s Michael O&#8217;Leary&#8217;s loud mouth.</p>
<p>Of course, in one sense there&#8217;s a bit of voodoo coming from both Mr. Edelman and Professor Karnani. The problem with deciding between profit-first or profit-with-purpose is that they are difficult to separate. Firms live within society and have all kinds of unavoidable obligations to fulfill as they produce profit.</p>
<p>One has to ask some tough questions about Mr. Edelman&#8217;s motivation, however. His main concern seems not to be the public good as much as helping firms restore their credibility and by so doing avoid state interference in their affairs. He says:</p>
<blockquote><p>&#8220;We are at a very important moment in the relationship between business and society. The catastrophic economic events of September 2008 undermined the confidence in the private sector’s ability to self-regulate. Bankruptcies of centerpiece companies in the global economy, such as GM, plus reputation issues for leaders in finance (Goldman Sachs), energy (BP) and transport (Toyota) have called into question the values of corporate leaders. In the race for public credibility, it is fortunate for business that its prime regulator, government, is not seen as a worthy replacement as the leader in the dance.&#8221;</p></blockquote>
<p>My beef is not with what Mr. Edelman wants to achieve; a free and mostly self-regulated market place. It is with how he believes that he can win public acceptance for it. I rebel, as do most people who are moderately sceptical of corporate humbug, to his pandering to the more infantile elements of this discussion; you know, the audience who cannot (supposedly) be told the truth because it would destroy their illusions.</p>
<p>So, I&#8217;d like to leave you with what I think is an effective demolition of Mr. Edelman&#8217;s style of PR, by quoting Professor Karnani&#8217;s robust expose of it:</p>
<blockquote><p>&#8220;Executives are hired to maximize profits; that is their responsibility to their company&#8217;s shareholders. Even if executives wanted to forgo some profit to benefit society, they could expect to lose their jobs if they tried—and be replaced by managers who would restore profit as the top priority. The movement for corporate social responsibility is in direct opposition, in such cases, to the movement for better corporate governance, which demands that managers fulfill their fiduciary duty to act in the shareholders&#8217; interest or be relieved of their responsibilities. That&#8217;s one reason so many companies talk a great deal about social responsibility but do nothing—a tactic known as greenwashing.&#8221;</p></blockquote>
<p>Exactly!</p>
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		<title>&#8220;UN exonerates Shell in Niger Delta&#8221;</title>
		<link>http://paulseaman.eu/2010/08/un-exonerates-shell-in-niger-delta/</link>
		<comments>http://paulseaman.eu/2010/08/un-exonerates-shell-in-niger-delta/#comments</comments>
		<pubDate>Mon, 23 Aug 2010 18:38:49 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[CSR reality check]]></category>
		<category><![CDATA[Energy issues]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">http://paulseaman.eu/?p=14369</guid>
		<description><![CDATA[According to The Guardian&#8217;s John Vidal, the UN is set to report that Shell is responsible for just 10% of the oil spilt in Nigeria&#8217;s Niger Delta region over the last 40 years. Time to lay off Shell, or time to wheel out conspiracy theories?  Here&#8217;s what Vidal says: &#8220;A three-year investigation by the United Nations [...]
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			<content:encoded><![CDATA[<p>According to <em>The Guardian&#8217;</em>s John Vidal, <a href="http://www.guardian.co.uk/environment/2010/aug/22/shell-niger-delta-un-investigation" target="_blank">the UN is set to report</a> that Shell is responsible for just 10% of the oil spilt in Nigeria&#8217;s Niger Delta region over the last 40 years. Time to lay off Shell, or time to wheel out conspiracy theories? <span id="more-14369"></span></p>
<p>Here&#8217;s what Vidal says:</p>
<blockquote><p>&#8220;A three-year investigation by the <a title="More from guardian.co.uk on United Nations" href="http://www.guardian.co.uk/world/unitednations">United Nations</a> will almost entirely exonerate <a title="More from guardian.co.uk on Royal Dutch Shell" href="http://www.guardian.co.uk/business/royaldutchshell">Royal Dutch Shell</a> for 40 years of <a title="More from guardian.co.uk on Oil" href="http://www.guardian.co.uk/environment/oil">oil</a> pollution in the Niger delta, causing outrage among communities who have long campaigned to force the multinational to clean up its spills and pay compensation.&#8221;</p></blockquote>
<p>Of course, he slips in that Shell paid for the research (though it was environmentalists who campaigned to make &#8220;polluters&#8221; pay for such reports). He quotes Nnimmo Bassey, chair of Friends the Earth International and director of Environmental Rights Action, saying: </p>
<blockquote><p>&#8220;It is incredible that the UN says that 90% is caused by communities. The UNEP assessment is being paid for by Shell. Their conclusions may be tailored to satisfy their client. We monitor spills regularly and our observation is the direct opposite of what UNEP is planning to report.&#8221;</p></blockquote>
<p>But it beggars belief that a 100-strong multi-national team of UN investigators could be bribed or influenced by a research budget of $10 million from Shell. The report, it seems, will find that the majority of the spillage and environmental degradation was caused by locals, as Vidal reports, &#8220;illegally stealing oil and sabotaging company pipelines,&#8221; a practice known as bunkering.</p>
<p>I have plenty of reservations. The main one is the casual assumption by so many journalists that there is a handy split (let alone a 90/10 split) between &#8220;the communities&#8221; or &#8220;communities&#8221; and Shell. The official report is not yet out, but it is clear to me that the distribution of blame cannot credibly be split 90/10. That&#8217;s because Shell, however influential, is just one of many players in the region in the oil business. For a start it is partnered with the state oil company. On the &#8220;other&#8221; side, too, there are myriad complex relationships between every sort of &#8220;official&#8221; power, the &#8220;communities&#8221;, and criminal gangs.</p>
<p>There&#8217;s no doubt in my mind, however, that criminality both at a local level (from gangs to corrupt officials) and at a national governmental level (within the oil ministry and its state-run companies) must take most of the blame for the region&#8217;s plight.</p>
<p>Here&#8217;s what Mike Cowing, the head of a UN team, told Vidal by email:</p>
<blockquote><p>&#8220;UNEP is not responsible for allocating responsibility for the number of spills being found in Ogoniland. Rather, we are focusing on the science. The figures referred to are those of the ministry of the environment and the department of petroleum resources.</p>
<p>&#8220;This is a Nigerian issue, not a UNEP issue. However, I would add that from our extensive field work throughout Ogoniland we have witnessed, on a daily basis, very large scale bunkering operations.</p>
<p>&#8220;It&#8217;s very controversial. We cannot say whether a particular spill is from one cause or another. Our observation is that there is a serious [bunkering ] problem. I am being seen to be siding with the oil companies, but I am not.</p>
<p>&#8220;We were provided with the official spill site list. This is given by the oil companies themselves but is endorsed by the [government] agencies. We are not on the side of the oil companies.&#8221;</p></blockquote>
<p>According to Vidal, the UN team took 1,000 soil and water tests, and other investigations were carried out, and hundreds of communities consulted.  This scoping of the extent of the problem will most likely form the basis for focusing the clean up effort that Shell looks set to fund also.</p>
<p>Will this work? I think it might, up to a point. But on the ground it is most likely doomed to fail. That&#8217;s because the scale and complexity of the problem in a region of 30 million people is beyond Shell, and currently beyond the Nigerian government&#8217;s ability to solve.</p>
<p>It was always simplistic (and mostly entirely without foundation) of the likes of <a href="http://www.amnesty.org.uk/news_details.asp?NewsID=18292" target="_blank">Amnesty International to accuse Shell</a> of human rights abuses and causing mass poverty on top of the pollution in the region.</p>
<p>However, the UN report looks set to give Shell what it badly needs: a shield to defend itself in the West against the nonsense it has suffered from campaigners over many years. That&#8217;s got to be good for its reputation and PR. The rest of the solution rests with the Nigerian people.</p>
<p>Having said that, the question remains about just how honest Shell is going to be about the realities it faces on the ground. Those are realities which should urge Shell to set realistic expectations, or risk the issue blowing up in its face at a later date on a greater scale, the way it did for BP with its Beyond Petroleum charade.</p>
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		<title>HP, Hurd, soft porn &amp; the morality game</title>
		<link>http://paulseaman.eu/2010/08/hp-hurd-soft-porn-the-morality-game/</link>
		<comments>http://paulseaman.eu/2010/08/hp-hurd-soft-porn-the-morality-game/#comments</comments>
		<pubDate>Mon, 16 Aug 2010 09:25:49 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[Crisis management]]></category>
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		<guid isPermaLink="false">http://paulseaman.eu/?p=13813</guid>
		<description><![CDATA[What happened to Mark Hurd at HP was the stuff of Hollywood. Michael Moore or Oliver Stone to the fore? There was no upside to HP&#8217;s reputation from ridding itself of Mark Hurd. The Economist described HP as Hurdless chickens. Wall Street pulled the rug on the share price. Shareholders looked on bewildered as, as [...]
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			<content:encoded><![CDATA[<p>What happened to Mark Hurd at HP was the stuff of Hollywood. Michael Moore or Oliver Stone to the fore?<span id="more-13813"></span></p>
<p>There was no upside to HP&#8217;s reputation from ridding itself of Mark Hurd. <em>The Economist </em><a href="http://economist.com/blogs/schumpeter" target="_blank">described HP as Hurdless chickens</a>. Wall Street pulled the rug on the share price. Shareholders looked on bewildered as, <a href="http://search.ft.com/search?queryText=moral+hazards&amp;ftsearchType=type_news" target="_blank">as the FT reports</a>, transparency turned to opacity as the Board lost its nerve. Now let&#8217;s review how this might make a movie.</p>
<p>Married and slightly nerdy CEO gets obsessed with an events contractor, B-movie actress and former soft-porn star. He buys her dinner more times than he ought. She claims she was sexually harassed and hires a top lawyer with a nose for publicity.</p>
<p>The CEO gets cleared of the charge by the company. But he has difficulty explaining the more than $10k (perhaps $20k) he claimed on expenses to entertain her. He gets told to jump ship. As a result, HP&#8217;s share value drops by around $13 billion. That would be the opening scene. Then would come the flashback.</p>
<p>Mark Hurd&#8217;s predecessor knocks billions off HP&#8217;s share price after her fraught merger with Compaq proves nigh on disastrous. The Board that once backed Carly Fiorina decides to ditch her, but the news leaks. Yet only fellow Board members were in the know. So she orders private detectives to spy on the Board to uncover the traitor. Before they can report, Carly&#8217;s fired.</p>
<p>However, the chairman of the Board continues with the investigation (widened to include senior executives), which stoops to lies and deceit and unethical borderline legality. When the rest of the Board discovers how the culprit was identified, members resign in protest and the chairman is forced out. From then on, whenever somebody knocks on their front door, they fear that they&#8217;re being bugged by a colleague (the film would portray their spouses&#8217; paranoia).</p>
<p>Carly&#8217;s merger antics alone mean that from day one, Mark Hurd is CEO of a company with a psychologically damaged and neurotic Board. The breaking of the spying story and near-implosion of the Board, just deepen his problems. But against the odds, he restores HP&#8217;s fortunes, winning widespread praise for the turnaround.</p>
<p>To top it all the temptress in the story proves to have a heart (surely that&#8217;s a heart on her sleeve?). She weeps and says she never wanted him fired. She backs up his defence and says that they never had intercourse. The audience weeps with her on behalf of their fallen hero.</p>
<p>What can we learn from this mess?</p>
<p>Above all, the scandal at HP is more about a failure of corporate governance, team-building and trust, than it is about Mark Hurd&#8217;s peccadilloes. The major issue for the Board was trust, and the issue of Hurd&#8217;s seemingly falsified expenses.</p>
<p>Contrary to popular opinion, corporate governance is not about CSR and personal ethics so much as about improving corporate performance. It is about making the right operational choices. It is about protecting shareholder interests and about assessing strategies to ensure that corporate assets are used properly to achieve corporate purposes. <a href="http://econonomist.co/blogs/schumpeter" target="_blank">As Larry Ellison has pointed out</a>, HP&#8217;s Board has clearly failed to do its job.</p>
<p>The <a href="http://www.apcoworldwide.com/" target="_blank">PR consultants at APCO</a> recommended, rightly, that the Board should proactively make a full disclosure of the &#8220;scandal&#8221;. However, they wrongly advised that Hurd should be sent packing. They produced mock scandalous headlines of what the media might say if Hurd was not ousted. This scared the risk-adverse, emotional Board. In APCO&#8217;s favour, however, they probably knew better than anyone else just how broken were the internal relations at the top of HP (leadership requires trust to function). This was no ordinary crisis.</p>
<p>The Board was like a rabbit caught in headlights. It first froze, then panicked. Not for the first time it collectively put personal feelings before the company&#8217;s interests.</p>
<p>Meanwhile, Wall Street punished the Board and the company for firing Hurd.</p>
<p>But what about Mark Hurd&#8217;s role in all this? His comment about his resignation (cue $40 million pay off) was revealing. He said:</p>
<blockquote><p>&#8220;I did not live up to the standards and principles of trust and integrity that I have espoused at HP&#8221;</p></blockquote>
<p>So, he knew that he broke the bonds of trust at HP, and that he was guilty of hypocrisy on the morality front. So here&#8217;s my guidelines for how to avoid such moral hazards in future:</p>
<p>• Don’t let PRs sell the politically correct narrative of your personal life.</p>
<p>• Don’t use personal virtues as a shield to promote your professional ones.</p>
<p>• Headlines about your personal virtues are hostages to fortune.</p>
<p>• Avoid the temptation to indulge in moral outbursts on any topic.</p>
<p>• Don’t bring your personal life to work or include it in your PR.</p>
<p>• Those who live by the sword die by it.</p>
<p>• Don’t lecture anyone (especially not your staff) about personal morality.</p>
<p>• Always assume that everything always gets into the media in the end.</p>
<p>• The public love sinners and winners. It loathes saints.</p>
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		<title>WBCSD&#8217;s Vision 2050 is myopic</title>
		<link>http://paulseaman.eu/2010/07/wbcsds-vision-2050-is-myopic/</link>
		<comments>http://paulseaman.eu/2010/07/wbcsds-vision-2050-is-myopic/#comments</comments>
		<pubDate>Thu, 08 Jul 2010 15:56:55 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[CSR reality check]]></category>
		<category><![CDATA[Energy issues]]></category>
		<category><![CDATA[Political spin]]></category>
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		<category><![CDATA[Sustainable]]></category>
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		<guid isPermaLink="false">http://paulseaman.eu/?p=13309</guid>
		<description><![CDATA[Here&#8217;s a thought. Is the World Business Council for Sustainable Development&#8217;s Vision 2050anything more than a PR survival plan for today&#8217;s big companies seeking a long-term and popular licence to operate? Vision 2050 advocates that big business solves mankind&#8217;s major social and environmental problems in partnerships with government and society. The aim is to produce [...]
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			<content:encoded><![CDATA[<p>Here&#8217;s a thought. Is the <a href="http://www.wbcsd.org/web/projects/BZrole/Vision2050-FullReport_Final.pdf" target="_blank">World Business Council for Sustainable Development&#8217;s </a><em><a href="http://www.wbcsd.org/web/projects/BZrole/Vision2050-FullReport_Final.pdf" target="_blank">Vision 2050</a></em>anything more than a PR survival plan for today&#8217;s big companies seeking a long-term and popular licence to operate?<br />
<span id="more-13309"></span></p>
<p><em>Vision 2050</em> advocates that big business solves mankind&#8217;s major social and environmental problems in partnerships with government and society. The aim is to produce enough food, clean water, sanitation, shelter, mobility, education and health to provide for 9 billion humans.</p>
<p>Here&#8217;s some of what they think needs doing over the next forty years to make a sustainable planetary society possible:</p>
<blockquote><p>&#8220;These include incorporating the costs of externalities, starting with carbon, ecosystem services and water, into the structure of the marketplace; doubling agricultural output without increasing the amount of land or water used; halting deforestation and increasing yields from planted forests: halving carbon emissions worldwide (based on 2005 levels) by 2050 through a shift to low-carbon energy systems and improved demand-side energy efficiency, and providing universal access to low-carbon mobility.&#8221;</p></blockquote>
<p>The <a href="http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&amp;MenuId=NjA&amp;doOpen=1&amp;ClickMenu=LeftMenu" target="_blank">WBCSD</a> explains that:</p>
<blockquote><p>&#8220;As part of this transformation, <em>Vision 2050 </em>calls for a new agenda for business: to work with government and society worldwide to transform markets and competition. New rules for markets will reframe environmental challenges as economic challenges, driving innovation and competition in the direction of sustainability and away from resource- and energy-intensive production. Rationalizing prices to include such externalities as climate and biodiversity impacts will make corporate environmental efficiency a true competitive advantage across all industries and regions.&#8221;</p></blockquote>
<p>How to interrogate this stuff from an independent PR perspective? Sceptically, I suggest.</p>
<p>Big business likes this stuff because it sounds and even is virtuous. It has the merit of turning all kinds of uncertainties into market opportunities. I certainly warm to <em>Vision 2050&#8242;s</em> commitment to raising productivity (output) by improving land usage and making better use of genetically modified organisms. I can also see the logic of accepting political realities and in proactively helping governments turn costly externalities into profit-centres.</p>
<p>It&#8217;s worth noting, though, that this means that externalities and social desirables become goods and services which have a state-subsidy or state guaranteed price.</p>
<p>The problem is that state planning risks making the future of the world dependent on the short-term political thinking politicians are prone toward, which is the very opposite of what <em>Vision 2050</em> aims to achieve. Certainly, WBCSD hopes that governments will map the paths to achieve pre-advertised and pre-announced priced services (the ex-externalities), which is something that may or may not happen.</p>
<p>Yet, when the state is required to map out the big things it wants to happen, won&#8217;t it be natural (as the WBCSD knows well) that big firms will be able to gear up to deliver it quicker and better than small firms? Won&#8217;t government find itself talking with the big firms which can deliver big stuff?</p>
<p>For instance, BP may have cocked-up in the Gulf of Mexico, but a small firm couldn&#8217;t have even begun to get the deal. If you electrify cars, the trains, build new track, put in huge windfarms or solar arrays, deliver new low-pollution chemical plants etc, etc, almost all the sustainability deliverables get delivered quicker by giant firms. So the big problem-makers become the big problem-solvers. Yummy. Trebles all round. And a PR victory to boot, you would think. Perhaps, says I, but it is a short term and limited one. Here&#8217;s why.</p>
<p><em>Vision 2050 </em>assumes that in the future the world will have to cutback on carbon dioxide usage to combat global warming. However, what if we could either <a href="http://www.inhabitat.com/2008/06/09/device-sucks-co2-from-the-atmosphere/" target="_blank">suck the carbon from the atmosphere</a> or clean it up effectively as we go at little cost? With the former solution we could turn-reverse global warming and keep using fossil fuels. With the latter solution we could make use of all the fossil fuel resources we desire for as long as they are available without making AGW any worse than it already is (evidence suggests there are still huge reserves of gas, oil and coal waiting to be exploited).</p>
<p>Moreover, if the nuclear fusion technology comes on tap in the next 40 years then our energy usage could increase in intensity almost without limit forever. Energy production might remain centralized with the emergence of fusion. It would also make desalination possible on a grand scale; ending all worries about water shortages in a world that is two thirds covered by oceans. We already know how to build gas pipelines over distances of thousands of miles to deliver energy to our homes, so building a global water-pipe network should not be beyond us (something states might legislate for but might not pay for; while the market might be able to sustain the entire costs because it is profitable to do so).</p>
<p>By making best use of nuclear fission, solar and wind technology, this might facilitate the trend toward greater decentralized energy provision that environmentalists demand and <em>Vision 2010</em> supposes: that is until fusion  - or something else &#8211; replaces them all (again subsidies might help, and they might not, and special pleading might not be attractive to taxpayers either).</p>
<p>My point is not to favour this or that solution over some other possible solution. My point is that innovation creates new industries, new possibilities and paradigms. Another issue is that the WBCSD <em>Vision 2050 </em>is in the business of<em> </em>envisioning. In that regard, I accept that the BCSD has identified all sorts of problems which are up ahead, and it may be right that government has a role in fixing them, helped by big business. My concern is only that we should be careful when big business signs up for a green agenda, but only because it&#8217;s neat and now it suits them.</p>
<p>Regardless, they may still be right. But I suspect they&#8217;d be quick to argue, whatever the reality was, for legislation, controls etc, which make their life more mappable. That doesn&#8217;t make them wrong, but it takes away some of their virtue, which they so boldly lay claim to. In any case, they may &#8211; as I fear &#8211; wrap us in all sorts of expensive taxpayer action which turns out misguided and which leads to its own backlash that undermines their credibility and reputations for honesty, integrity and insight.</p>
<p>The future is almost certainly unpredictable. And perhaps my most important point of all is that we should instead be encouraging new risk-takers to emerge to solve today&#8217;s and tomorrow&#8217;s problems. Such risk takers are as likely as not to be competitors to today&#8217;s major solution providers. They will make best use of scientific and technological breakthroughs to challenge the existing order. Such innovation and innovators rarely emerge from partnership relationships (cosy clubs) but unfold as the work of disruptive entrepreneurs, as the railways, automobile, IT, internet and bio-pharmaceutical industries did.</p>
<p><em>Vision 2050</em> does have PR potential, certainly for spin. It also has potential for making progressive progress through the promotion of partnerships, even if its difficult to know in which field. What grates on me is the self-interested certainty that is embedded in the content and tone of <em>Vision 2050. </em> At the very least I counsel that however well intentioned <em>Vision 2050</em> is, I don&#8217;t think it is a sustainable plan over the next 40 years given the nature of the unknown unknowns &#8211; such as politics, serendipity and competition &#8211; that are as likely as not to tear the plan&#8217;s assumptions to shreds.</p>
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		<title>Will BP&#8217;s regulators share the blame?</title>
		<link>http://paulseaman.eu/2010/06/will-bps-regulators-share-the-blame/</link>
		<comments>http://paulseaman.eu/2010/06/will-bps-regulators-share-the-blame/#comments</comments>
		<pubDate>Wed, 02 Jun 2010 15:02:45 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[Crisis management]]></category>
		<category><![CDATA[Energy issues]]></category>
		<category><![CDATA[accountability]]></category>
		<category><![CDATA[Crisis]]></category>
		<category><![CDATA[reputations]]></category>
		<category><![CDATA[responsibility]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">http://paulseaman.eu/?p=12765</guid>
		<description><![CDATA[Who&#8217;s to blame for the blowout in the Gulf? It&#8217;s a fair bet that the corporations involved will get stuck with most of the opprobrium. But I&#8217;m more inclined to blame the regulators and their masters, the politicians. What&#8217;s BP to say about its plight? I&#8217;d say the big thing is for them to stress that, [...]
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			<content:encoded><![CDATA[<p>Who&#8217;s to blame for the blowout in the Gulf? It&#8217;s a fair bet that the corporations involved will get stuck with most of the opprobrium. But I&#8217;m more inclined to blame the regulators and their masters, the politicians. What&#8217;s BP to say about its plight? I&#8217;d say the big thing is for them to stress that, with luck, they&#8217;re here for the long haul. They want to fix the problem, clean up the mess, learn the lessons and go on aiming to be the &#8220;best in class&#8221;. The rest of the truth will need to be told by third parties. <span id="more-12765"></span></p>
<p>BP is on a knife-edge. They can&#8217;t seem attractive (and suitably penitent) whilst blaming others, and yet they are not alone in causing the accident in the Gulf. (Leave aside that they&#8217;ve got a gaffe-prone CEO who says that he wants things to go well because <a href="http://www.huffingtonpost.com/2010/06/01/bp-ceo-tony-hayward-video_n_595906.html" target="_blank">&#8220;I&#8217;d like my life back&#8221;</a>. A severe shortage of pre-accident media training there, I fear.)</p>
<p>But in time &#8211; and that time isn&#8217;t yet, not by a long chalk &#8211; BP may well find itself able and required to discuss (first in private with sympathetic mature journalists and opinion-formers) where other parcels of blame lie.</p>
<p>It may well be that Transocean or Halliburton or others are culpable in some degree, perhaps even greatly. But how about those nice regulators who are the thin line between corporate greed and the fragile public and planet?</p>
<p>I am pretty sure that if there&#8217;s blame to be spread, the regulator is as much at fault (or as innocent) as BP or other firms. Indeed, I am inclined to think that the regulator is more to blame based on what I&#8217;ve learned from the circumstances behind all of the disasters I&#8217;ve ever studied. I&#8217;ll return to this another time, but from Titanic to Three Mile Island, I&#8217;m struck by how technological failure has flowed from regulatory failure rather than greed. I mean that very often &#8211; most often &#8211; the private sector fails when the public sector thinks it&#8217;s doing fine and has signed-off on its behaviour. (The modern financial failures are examples of this, by the way.)</p>
<p>So I reason that it was more the regulator&#8217;s job to drive, own, the &#8220;what-if&#8221; process than BP&#8217;s. It isn&#8217;t exactly BP&#8217;s job to be gungho and alpha-male. But, certainly, in the modern highly-regulated and accountable world the corporation is in a proper and allowed tension with its regulators. Indeed, I hold the view that regulators are rather feeble in hardly ever accepting a proper share of responsibility.</p>
<p>Unless BP has purposely pulled the wool over our eyes, something I doubt, or didn&#8217;t carry out its agreed obligations, which remains possible, I think BP ought to be cut a good deal more slack than it actually will be.</p>
<p>It looks likely that BP was operating in the Gulf of Mexico at the edge of technology&#8217;s capabilities in a high risk environment. (<a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/05/27/AR2010052702988.html" target="_blank">Krauthammer in the Washington Post argues</a> that&#8217;s because of green prejudice, a nice argument I won&#8217;t pursue.) If it turns out that BP&#8217;s bad luck was to have an accident that no regulator or operator on earth had made allowances for then BP has the makings of a sound defence.  Though, paradoxically, even if that&#8217;s proven true, that&#8217;s an argument which can&#8217;t be pressed too loudly in polite society without risking a backlash.</p>
<p>There&#8217;s little doubt, then, that the blame will stick with the corporations (it may widen from BP as Shell fears <a href="http://shellcsr.com/home/content/media/news_and_library/press_releases/2010/niger_remediation_14052010.html" target="_blank">here</a>). That&#8217;s not least because regulators and the politicians will wriggle out of it and the media will prefer to hound BP and the other corporations to hounding the regulators and governments. That&#8217;s unless, and I&#8217;m dreaming here, the balance of third party opinion comes down on BP&#8217;s side.</p>
<p>I<span style="font-style: normal;"> am almost sure &#8211; and far from happy about it because I believe BP should say what it knows or believes to be true &#8211; that there is very little BP can say today credibly in public. It cannot exonerate itself to any degree without appearing to avoid responsibility. It is up against quite deep human prejudices and tastes.</span></p>
<p>People love disaster and villainy. That&#8217;s why certain accidents have had mythic narrative power which no amount of good evidence can shift.  The Titanic, Three Mile Island, Chernobyl and Exxon Valdez, are powerful cases where the very names have stuck emblematically in our minds. Their very mention comes with the clutter of preconceived ideas about class, capitalism, corporations, technological over-reach. BP will, presumably, now join that list. Like the others, it will probably be a good example of an operation which went on to do good work whilst exploiting plenty more technology. But it will serve as an example of bad-intentions and hubris.</p>
<p>It is just possible that this event will sink BP. But that would make it truly unique (even the owners of the Titanic didn&#8217;t go under).</p>
<p>Away from the hype, the financial market will look at this issue in a wholly cash manner. What will the accident cost? Will BP face difficulty getting US or other licences? Yes, this might well be a transformative event for the entire petroleum industry. But the market may think that BP is becoming case-hardened in a big-time way.</p>
<p>Therefore the outcome of the whole affair provides BP with an opportunity to take pole-position in the battle to reshape the industry&#8217;s worldwide image. After all, the world remains as dependent as ever on petroleum, so there&#8217;s a lot of mutual self-interest out there. There&#8217;s also a lot of cognitive dissonance. Plenty of firms feel forced to align their reputations with tragedies, real and very often imagined, as if they were responsible for them, but still do good business regardless. Some of my colleagues &#8211; cynically, perhaps &#8211; call that hit on the company&#8217;s reputation the price of securing a licence to operate.</p>
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		<title>Briefing for PRs on E2.0&#8242;s brave new world</title>
		<link>http://paulseaman.eu/2010/05/briefing-for-prs-on-e2-0s-brave-new-world/</link>
		<comments>http://paulseaman.eu/2010/05/briefing-for-prs-on-e2-0s-brave-new-world/#comments</comments>
		<pubDate>Fri, 21 May 2010 20:25:42 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[Media issues]]></category>
		<category><![CDATA[PR issues]]></category>
		<category><![CDATA[accountability]]></category>
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		<category><![CDATA[decentralized]]></category>
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		<category><![CDATA[risk]]></category>
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		<category><![CDATA[values]]></category>
		<category><![CDATA[Web 2.0]]></category>

		<guid isPermaLink="false">http://paulseaman.eu/?p=12578</guid>
		<description><![CDATA[There&#8217;s been lots of talk in PR circles about value networks and the network society. Here I take a closer look at what the fuss is all about and issue a note of caution and a call to moderate the hype. Utopian PRs have been dreaming about &#8220;one world, people and planet” in which all the [...]
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			<content:encoded><![CDATA[<p>There&#8217;s been lots of talk in PR circles about value networks and the network society. Here I take a closer look at what the fuss is all about and issue a note of caution and a call to moderate the hype.<span id="more-12578"></span><a href="http://www.wprf2010.se/2010/05/20/let-the-paradigm-shift-begin/" target="_blank"></a></p>
<p><a href="http://www.wprf2010.se/2010/05/20/let-the-paradigm-shift-begin/" target="_blank">Utopian PRs have been dreaming</a> about &#8220;one world, people and planet” in which all the barriers between various publics come tumbling down. They envisage a connected world in which the lines of demarcation between internal, boundary and external stakeholders dissolve as they connect transparently and interactively in a value chain that links interdependent companies to their consumers and markets.</p>
<p>But such views ignore some major issues.</p>
<p>One is that in an open digitally-connected world, there&#8217;s more need than ever to conspire &#8211; organise, ghettoise, corral &#8211; to keep things confidential and hidden behind closed walls.</p>
<p>Indeed, we will see the kind of problem which Freedom of Information rules can produce: a clever, covert, closed decision making in which everything which really matters is centripetally driven to a cabal. (Remember the government of Tony Blair?)</p>
<p>Arguably, the more open things become and the more control bosses relinquish to networks, the more restrictions they will have to impose on those who operate in them. This might, paradoxically, lead to even tighter control on commercially sensitive information than exists today. It might lead corporates to adopt a civil service mantra of only releasing information on a need to know basis.</p>
<p>Another issue that the utopian PR camp ignores is competition. Companies forging various so-called value networks (I&#8217;ll argue later that PRs should avoid using the term) are as likely as not to form lots of them. They are as likely as not to value some more than others and to find themselves involved in contradictory and conflicting chains.</p>
<p>This will lead to lots of tension and uncertainty within corporates and institutions, such as government service providers, as they are forced to choose between their various product ranges, service offerings and partnership relationships, according to either their broader interests or their ability to sustain them. The resolution of such problems, or issues, will remain driven from the centre, from the top, by corporate or institutional bosses concerned with strategy.</p>
<p>Moreover, because of competition, PRs at either end of a chain, not to mention the middle, might find themselves pulling in different directions and unable to always align their interests, messages and narratives. There is no reason to believe that just because we introduce new tools into the workplace that real-world tensions, politics and commercial interests, will evaporate. We should, I warn, avoid falling into the <a href="http://en.wikipedia.org/wiki/Technological_determinism" target="_blank">technological determinism</a> trap.</p>
<p>My point is that we should not think that corporations are about to relinquish control to horizontal or flat digital networks. We should not kid ourselves that top-down management and communication are about to die out. Neither should we imagine, as the PR utopians do, that existing internal silos, lines of responsibility and accountability, will be or should be altered very much by commercial Web 2.0 applications.</p>
<p>Here&#8217;s what <a href="http://www.bigpotatoes.org/updates/" target="_blank">Norman Lewis</a>, Managing Partner at Open Knowledge UK, had to say on this when he commented on my piece <em><a href="http://paulseaman.eu/2009/09/theres-no-social-media-revolution/" target="_blank">There&#8217;s no social media revolution</a></em>:</p>
<blockquote><p>&#8230; it&#8217;s definitely the case that social media like any other technology does not alter the realities of the business world. (I very much like your points about the chaos that would ensue in a company if everyone could relate to sales, customers etc). This is based upon the naive hippie prejudice that enterprises can become democracies run in the interests of employees empowered to act like free agents.</p></blockquote>
<p>Another of the problems that&#8217;s being overlooked by utopian PRs is how social media usage in the personal sphere is maturing. They seem to have missed the point that the major stumbling block for social media of all kinds is privacy, trust and control over personal data. It would seem that social media users are emerging from the blindly heady immature days of the early adoption period and starting to ask tough questions. Anybody really interested in this would do well to read <a href="http://news.bbc.co.uk/2/hi/technology/10128476.stm" target="_blank"><em>Facebook challenged by ambitious upstarts</em></a> on BBC online.</p>
<p>So already in the personal usage of Web 2.0, privacy and transparency are emerging as issues which are tempering how it is used. But in the commercial sphere the risks and drawbacks are fairly clear from the very beginning. While knowledge-sharing, collaboration and instant feedback and decision-making all have great appeal, in fact IP, confidential information and in-house knowledge lie at the heart of commercial value. The open information flows between various players presents itself both as an opportunity and as a risk.</p>
<p>But there&#8217;s even more reason for PRs not to get over-excited about Web 2.0&#8242;s ability to transform the workplace as utopian PRs do when they talk about paradigm shifts. Some believe that Michael Porter&#8217;s value chain model has <a href="http://www.wprf2010.se/the-stockholm-accords/glossary/" target="_blank">already been replaced</a> &#8211; or almost so &#8211; &#8220;by fuzzy (and not linear) and immaterial (rather than material) networks that normally disintegrate the distinction between internal and external publics.&#8221; But the truth is that Web 2.0&#8242;s commercial applicability is in its infancy and has yet to make a great impact.</p>
<p>The point the utopians miss is how much experimentation will be required to ascertain where and how to make Web 2.0 and social media applications work best in the corporate and public sector domain given the virtual impossibility of measuring their benefits accurately. But don&#8217;t get me wrong. I favour innovation and risk. I decry our current risk-adverse culture. I look forward to seeing more Web 2.0 applications introduced by business and institutions to deliver products and services. I don&#8217;t doubt for a moment that they can boost productivity and add great value.</p>
<p>This leads me to flag an event which I think PRs should attend, and to use it to explain why I think PRs shouldn&#8217;t use the terms networked society and value networks: <em><a href="http://enterprise2forum.it/en" target="_blank">International Forum on Enterprise 2.0</a> &#8211; </em>Milan June 9 &#8211; 10.</p>
<p><span style="font-weight: normal;">The term Enterprise 2.0 was coined by Andrew McAfee, professor at Harvard Business School (Technology and Operations Management Unit). He defined it thus: </span></p>
<blockquote><p>&#8220;&#8230;the use of platforms of social software in an emerging way inside the organization or between the organization, their partner and their client.&#8221;</p></blockquote>
<p>The three building blocks which constitute E2.0 are:</p>
<blockquote>
<ul>
<li><strong>Social software</strong>: instruments which enable people to be in contact and collaborate together creating an online community of practice;</li>
<li><strong>Platforms</strong>, or rather, digital environments:  co-created interactive collaboration spaces that are visible to all users at all times;</li>
<li><strong>Emergence</strong>: the capacity to make visible the application structure and basic patterns of interactions between people.</li>
</ul>
</blockquote>
<p>As the event&#8217;s website explains, in McAfee&#8217;s words:</p>
<blockquote><p>“Enterprise 2.0 technologies make the intranet similar to what the web is already: an online platform, continuously evolving, defined by the spread of independent user actions.&#8221;</p></blockquote>
<p>I find the definitions and explanations provided by the International Forum&#8217;s organisers very useful. I&#8217;ve been arguing for some while that for PRs the terms &#8220;network society&#8221; and &#8220;values network&#8221; lack specificity and are confusing because they are in-house IT-speak. What the utopian PRs forget is that PR is and always will be about communicating with publics via networks and that society is nothing but networks personified. Moreover, all human networks are united by common interests and, or, values.</p>
<p>For those PRs wanting to get up to speed on social computing and E2.0 (both terms are useful and convey specific meaning in a PR context), I strongly recommend the following experts who explore &#8211; from different perspectives &#8211; this emerging field:</p>
<blockquote>
<ul>
<li><a href="http://www.socialenterprise.it/">The Social Enterprise</a> – Italian blog on Enterprise 2.0</li>
<li><a href="http://andrewmcafee.org/blog/">The Business Impact of Information Technology (IT)</a> &#8211; Andrew McAfee</li>
<li><a href="http://blogs.zdnet.com/Hinchcliffe/">Enterprise Web 2.0</a> &#8211; Dion Hinchcliffe</li>
<li><a href="http://futures-diagnosis.com/">Futures Diagnosis</a> &#8211; Norman Lewis</li>
</ul>
</blockquote>
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		<title>Let&#8217;s interrogate Shell&#8217;s CSR in Nigeria</title>
		<link>http://paulseaman.eu/2010/05/lets-interrogate-shells-csr-in-nigeria/</link>
		<comments>http://paulseaman.eu/2010/05/lets-interrogate-shells-csr-in-nigeria/#comments</comments>
		<pubDate>Tue, 18 May 2010 10:03:54 +0000</pubDate>
		<dc:creator>Paul Seaman</dc:creator>
				<category><![CDATA[Crisis management]]></category>
		<category><![CDATA[CSR reality check]]></category>
		<category><![CDATA[Energy issues]]></category>
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		<guid isPermaLink="false">http://paulseaman.eu/?p=12442</guid>
		<description><![CDATA[Note: This piece needs to be treated with care. I was the victim of a sophisticated hoax. I apologize to anybody who was mislead. But I&#8217;m leaving the post here as a spoof of a spoof. It shows how even if the anti-Shell campaigning trickesters got their way, it would not address the problems in [...]
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			<content:encoded><![CDATA[<p><strong>Note: This piece needs to be treated with care. I was the victim of a sophisticated hoax. <strong>I apologize to anybody who was mislead. But </strong>I&#8217;m leaving the post here as a spoof of a spoof. It shows how even if the anti-Shell campaigning trickesters got their way, it would not address the problems in Nigeria in a sensible or realistic manner but would actually make things worse. </strong></p>
<p>Yesterday &#8220;<a href="http://shellcsr.com/home/content/media/news_and_library/press_releases/2010/niger_remediation_14052010.html" target="_blank">Shell&#8221; (go to hoax press release) </a>said it was going to clean up the Niger Delta, compensate local communities for past injuries, and institute a local stakeholders&#8217; program that will help lift the region out of poverty. That sounds like good news. But what if the real victim is the truth?<span id="more-12442"></span></p>
<p>There was something very panicky about what Shell called its visionary remediation plan for Nigeria. The press release partly explained the company&#8217;s motivation thus:</p>
<blockquote><p>&#8220;The expected hurricane of regulation and policy change across industry, resulting from the negligent practices [in the Gulf of Mexico] by one pair of companies especially, means that all of us need to try to push harder in the interests of long-term survival. Shell will therefore distinguish ourselves by being the first oil company in history to cease taking risks with important delta ecosystems.&#8221;</p></blockquote>
<p>But Shell has no more idea what caused the accident in the Gulf of Mexico than does BP. There&#8217;s been some discussion as to likely causes at a Senate hearing (dubbed the blame game by President Obama) but there&#8217;s been <a href="http://www.washingtonexaminer.com/nation/texas-governor-perry-cautions-against-speculation-on-oil-spill-defends-act-of-god-comment-92791754.html" target="_blank">no conclusive evidence</a> revealed that negligence sparked the accident. It is highly indecent, opportunistic and disrespectful of a rival for Shell to say or suggest otherwise right now.</p>
<p>Let&#8217;s get back to Nigeria. There is a blinding omission in Shell&#8217;s picture of its work in the Niger Delta. It has completely ignored the truth of the damage it is supposed to have done. Instead, it has scapegoated itself. It has seemed to accept responsibility for stuff it didn&#8217;t do. Maybe the &#8220;truth and reconciliation&#8221; work it is funding will start to reveal the rights and wrongs of all the parties in Nigeria, but I frankly doubt it. This is a pity. Nigerians have the right to know the truth about their country&#8217;s workings.</p>
<h5>Poverty won&#8217;t be dented much</h5>
<p>Shell proposes to spend $8 billion over the next two years followed by $1 billion per year over the following ten years to clean up the Niger Delta. That&#8217;s a region in which more than 30 million people live. So there&#8217;s no way that an investment of $2.50 per person per week for two years, followed by $0.62 for ten is going to lift the region out of poverty.</p>
<p>Such an expenditure might help clean up the Niger Delta. Equally (perhaps more than likely) it might not. Shell promises to use locally-sourced suppliers and staff in a region in which it was and remains responsible for just a small proportion of the overall oil pollution, and in which it has little power to tackle the problem of leaks at source. Moreover, the Niger Delta is the most corrupt region in one of the world&#8217;s most corrupt countries (<a href="http://allafrica.com/stories/200911190063.html" target="_blank">the world&#8217;s 130th most corrupt state</a>, and falling) as I recently explained in my personal account, <a href="http://paulseaman.eu/2010/01/csr-its-not-the-same-in-lagos-as-in-london/" target="_blank">CSR: it&#8217;s not the same in Lagos</a> as in London.</p>
<p>Shell also said yesterday that it proposes to establish a $4 billion fund earmarked for compensation for perceived injustices in the Niger Delta caused by its operations since 1958. In describing its intentions, Shell borrowed emotive language from post-apartheid South Africa. It talked about creating a $45 million &#8221;truth and reconciliation process&#8221; fund, which will assess and award reparations. That&#8217;s likely to create a feeding frenzy centred on locals involved in the fund in which those that win bank in Zurich, and those that lose reach for their guns and head back to the Niger Delta&#8217;s creeks.</p>
<p>To glimpse the trouble Shell might encounter, we need only examine how hard it has been for Pfizer to handover around $30 million worth of compensation to 100 or so <a href="media.pfizer.com/files/news/trovan_fact_sheet_final.pdf " target="_blank">so-called victims</a> of its meningitis-related drugs trial in the north of Nigeria. Unlike Pfizer, however, Shell possesses no <a href="http://www.compassnewspaper.com/NG/index.php?option=com_content&amp;view=article&amp;id=47348:pfizer-trovan-test-victims-in-dilemma-over-compensation-&amp;catid=43:news&amp;Itemid=799" target="_blank">DNA data-bank</a> of the people affected by its activities (regardless of the evidence, Pfizer has been unable to convince the other side of who is entitled to compensation and who is not).</p>
<h5>China seeks to replace Shell</h5>
<p>But there was also some more weird stuff wrapped up in yesterday&#8217;s press release from Shell. I say weird because it strikes me as unreal, and therefore as untrustworthy. Shell promised to:</p>
<blockquote><p>&#8220;&#8230;cap oil production at current levels until 2015, and then to gradually reduce production to 10 percent of current levels by 2050, while compensating for this reduction through the development of renewable energy sources.&#8221;</p></blockquote>
<p>Yet Nigeria has just concluded a deal with the Chinese to construct three oil refineries at a cost of $23 billion. It is clear from this that Nigeria is dreaming of an oil-filled future, not one based on renewables. But this deal might explain Shell&#8217;s warped CSR strategy, as the <a href="http://online.wsj.com/article/SB10001424052748703460404575243892823004542.html" target="_blank">WSJ says</a>:</p>
<blockquote><p>&#8220;For the Nigeria government, the deal represents a victory of sorts over U.S. and European oil companies, which have long turned a deaf ear to Nigerian government calls to operate refineries in the country because of the poor financial returns.&#8221;</p></blockquote>
<p>The real prize for China is getting its hands on Nigeria oil reserves. To do so it needs to displace the Western companies already established there with their rights to exploit the resource. So that perhaps explains why Shell took the bold step yesterday to cease:</p>
<blockquote><p>&#8220;&#8230;deepwater drilling off the coast of Nigeria until the conclusion of a full independent safety review by our local government partners with international oversight.&#8221;</p></blockquote>
<p>This will, as Shell explained in its release, ensure that it has a secure long-term licence to operate in the region (assuming it jumps this self-made hurdle). This pro-active move might well strengthen Shell&#8217;s grip on the Nigerian market in the face of stiff competition. It might well explain Shell&#8217;s CSR flannel. But yesterday&#8217;s announcement is not so easily dismissed. Hidden away, low down in the release was this very significant global commitment to create:</p>
<blockquote><p>&#8220;&#8230;local stakeholder program [s] that gives decision-making and veto capacity over new and ongoing projects to communities affected by Shell and SPDC projects worldwide, pending more formal control at the level of local government.&#8221;</p></blockquote>
<p>Exactly how this will be implemented is not explained. Whether Shell would really give, say, the spokespeople of 500 000 local Ogoni tribes people in the Niger Delta region the right of veto, when it has the support of the Nigerian government representing 150 million citizens, remains to be seen.</p>
<h5>Lending Goodluck a hand?</h5>
<p>There&#8217;s a new President in Nigeria. Goodluck Jonathan&#8217;s chances of remaining President come the next Presidential election depend in large part upon whether or not he can secure peace in the conflict-ridden Niger Delta region from where he hails. So one suspects Shell has a two-pronged approach. Its latest strategy looks like a ruse to see off Chinese competition and to curry favour with the new President. As I see it, Shell simply decided that its survival in Nigeria depended upon it helping to fund the peace process through its CSR initiative.</p>
<p>Much of yesterday&#8217;s announcement came wrapped in today&#8217;s obligatory language of sustainability:</p>
<blockquote><p>&#8220;The unique geology underlying these deltas have sustained our shareholders very well, but we must not let that kind of sustainability come at the the expense of the biodiversity, carbon absorption and O2 production that are their true worth.&#8221;</p></blockquote>
<p>But Nigeria&#8217;s economic future and sustainability depends upon oil revenue. The sustainability of Western economies also in large part depends upon continued oil supply. China&#8217;s future economic growth depends upon cheap energy much of which it hopes to obtain from Africa.</p>
<h5>Some home truths</h5>
<p>Sure, nobody can doubt that the Niger Delta needs cleaning up and that Shell should have stopped gas flaring years ago, which it announced it was ceasing immediately. Sure, it is also welcome news that Shell now proposes to exploit the surplus gas instead to provide free energy to local people. Sure, nobody can argue with a commitment to protect the region&#8217;s biodiversity. Actually, though, Shell has wanted to reduce gas flaring for many years and for several years (I cannot speak for the very recent history) its investment was bedevilled by the failure of its Nigerian government partners to cough up their share.</p>
<p>The issue I&#8217;m exploring right now, however, is what&#8217;s really driving Shell&#8217;s new strategy.</p>
<p>We immediately meet the oldest problem in discussing CSR. When a firm claims to be interested in environment and society, does it matter if these are cloaks for its own self-interest? Is it morally and strategically sort of OK for firms to claim an interest in being virtuous when, after all, it happens that the wider human and planetary good happens to flow alongside their own advantage?</p>
<p>I would not want you to think I am too much of a purist. Hypocrisy and humbug are often valuable. We need lots of sleeping dogs to have their peace.</p>
<p>But when a firm announces a CSR programme, half-way sensible people start digging (it&#8217;s better than running straight for the doors). Maybe we&#8217;ll never know what Shell&#8217;s motives really are. One casualty of the CSR process is honesty: outsiders will never now know what Shell is really thinking. We have to speculate.</p>
<h5>Using Nigeria as a poster child</h5>
<p>My main guess is this: Shell has decided that it will turn the Niger Delta into a poster child. It will do a very great deal to buy itself a good global reputation by its work there.</p>
<p>I believe that Shell&#8217;s imprudent comments on the Gulf of Mexico disaster reveals boardroom-level angst about the likely consequences of the spill for the entire petroleum industry. That will have tempted the company to over-hype the virtue of its CSR spend in Nigeria and throw into the mix some loose global commitments to listen more to stakeholders.</p>
<p>There must also be a very big Nigerian dimension. It takes very little cynicism to speculate that locally, regionally and nationally in Nigeria, these new CSR schemes have been designed to do some quite shabby or at any rate covert and unseen work whilst flying the CSR banner.</p>
<p>So I can&#8217;t help feeling that Shell&#8217;s response is a self-interested and cynical abuse of CSR and all that it should stand for.</p>
<h5>Peter Voser puts his foot in it</h5>
<p>There is something comic in hearing CEO Peter Voser say:</p>
<blockquote><p>&#8220;At long last the words &#8216;stakeholder&#8217; and &#8216;sustainable&#8217; will actually mean something. CSR-ND means planning not just for short-term profits, but for what actually matters, including the viability of the planet itself.&#8221;</p></blockquote>
<p>It&#8217;s as though he&#8217;s admitting that CSR has been hogwash so far, and this time it isn&#8217;t, honest injun. But maybe his successor, and his successor&#8217;s successor, will be making similar declarations that CSR is at last the real clean, saintly, truthful thing.</p>
<p>Shell&#8217;s stunt may work on most levels. The Niger Delta may be a slightly nicer and happier place. Shell may secure its place in Nigeria&#8217;s tortuous political economy. The firm may acquire a global bloom at tolerable cost. It may be able to feel better about itself.</p>
<p>I still think it matters to say that corporate culture is polluted when the necessary, expedient and self-interested are dressed-up as outward looking, transformative and virtuous. I don&#8217;t know how much narrow self-interest and canny show-boating lies behind this new strategy of Shell&#8217;s, but my guess is that there&#8217;s a fair bit of it. Anyone interested in the well-being of Shell, but especially of Nigeria, ought to keep watching and inquiring.</p>
<p>Maybe we should be asking Shell to archive its discussions on this CSR programme, and promise to publish them in 30 years. In the interests of intellectual and moral sustainability, you understand.</p>
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