Management consulting

Communication. Clients need help to spread information about corporate citizenship to senior executives, their peers, employees and external stakeholders. Each audience will require different messages and different communication vehicles. Understanding and implementing communication approaches is therefore a critical dimension of a consultant’s skill set.

23.5Consulting in specific functions and areas of business

In the previous two sections, we have viewed consulting in corporate responsibility in its totality, emphasizing its strategic and general management nature and the need to treat it as a core dimension of the business. We have dwelt on these questions because of their relative novelty and importance to companies and consultants that want to make a good start. Indeed, a fragmented and haphazard approach, merely reacting to external influences and requirements as they occur, is not one that we recommend. It is in the interest of every business to have an overall view of all its activities and relationships where questions concerning social responsibility may arise, a fair assessment of both its economic and social performance, a framework for dealing with these questions, and a basic policy to which decision-makers can refer in handling particular issues.

In practice, however, most questions of ethics and responsible behaviour are addressed in connection with specific decisions. For example, company policy may well adhere to the principle of ethical advertising in general terms, but applying that principle consistently requires considerable understanding of consumer psychology (including child psychology, cultural sensitivities, etc.) in addition to the knowledge of general corporate policies and ethical advertising. There are various elements and issues of ethics and social responsibility in product liability and quality, intellectual property, productivity, supplier selection, competition practice, recruitment and staffing, personnel management, staff education and training, management of employee pension funds, safety and health protection – indeed in virtually everything that a business does or chooses not to do.

There is, however, a fundamental implication for consultants. Corporate responsibility generalists will probably focus on broader, interdisciplinary and strategic issues, especially when companies start taking their social responsibilities seriously and need assistance with general orientation, concepts, assessment, relationships, strategies and policies. Conversely, in specific technical fields and functions, there is likely to be little scope for these generalist approaches. Some consultants may find a niche for themselves by specializing, for example, in advice on ethical advertising. However, all consultants intervening in special fields and areas of business should be aware of the general framework and principles of corporate responsibility, and versed in the social and ethical aspects of their special fields of intervention. The same

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applies to managers. This is the only way to implement corporate citizenship company-wide, beyond a simple declaration of general business principles.

23.6 Future perspectives

Currently, there is a clear trend to a continued “bull market” for corporate social responsibility and citizenship. Protests against globalization, the prominence of international economic and business forums, and the threat of global catastrophes such as HIV/AIDS or the greenhouse effect have created new expectations for the role and performance of business that are unlikely to disappear. The social performance of manufacturing and service companies will increasingly affect their brands. “The next big thing in brands is social responsibility. Brands are becoming an effective weapon for holding even the largest global corporations to account.”11

Consultants are uniquely positioned to make an impact in this arena. Many of the most interesting developments, research and thinking come from consultants or organizations that integrate theory and practice. At the same time, the competitive landscape of consultants poses risks for managers. There is anecdotal evidence of an apparent proliferation of consultancies, some of which appear to be selling a new conception of the wheel. Corporate citizenship is an immature field, and consultants therefore have a unique opportunity to come up with new approaches and services, and to influence organizational development in profound ways, shaping strategies and structures and pointing the way ahead for the years to come. With this potential, there are no clear moorings. Managers who follow a strategy of buying well-known brand names may find a safe choice but may also find solutions that are disappointing.

At its core, the social role, impact and responsibility of business is about an expanded vision of business performance. In this respect we have the experience of other concepts and movements to draw upon. Quality, at one point, seemed alien and impossible to measure. Environmental management once seemed out of place, but has made great strides. Human resource and human capital development used to seem foreign but has become fundamental. Corporate social responsibility looms on the horizon as one of the next transformative management movements. Consultants have a unique opportunity to drive and shape the agenda.

1 “The core element of corporate responsibility concerns business activity itself – the function of business in society is to yield adequate returns to owners of capital by identifying and developing promising investment opportunities and, in the process, to provide jobs and to produce goods and services that consumers want to buy. However, corporate responsibility goes beyond the core function of conducting business.” (OECD Web site, www.oecd.org//daf/investment/corporate-responsibility/faq.htm, visited on 4 Apr. 2002.)

2 Formerly the Valdez Principles (CEREs stands for “Coalition of Environmentally Responsible Economies”).

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3OECD Web site (op. cit.), and OECD: Corporate responsibility: Private initiatives and public goals (Paris, OECD, 2001).

4See www.ilo.org, visited on 4 Apr. 2002.

5See www.globalreporting.org, visited on 4 Apr. 2002.

6OECD Web site (op. cit.).

7See www.bc.edu/bc-org/avp/csom/ccc/index.html, visited on 4 Apr. 2002.

8See www.bsr.org, visited on 4 Apr. 2002.

9S. Waddock and C. Bodwell: From TQM to TRM: The emerging evolution of total responsibility management approaches (Geneva, ILO, 2001).

10The discussion on motivating drivers and stages of development is from: S. Rochlin and J. Boguslaw: Integrating business and development: Winning management strategies (Boston, MA, The Boston College, 2001).

11The Economist, 8 Sep. 2001, p. 30 (quoting a corporate identity consultant Wally Olins).

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The use of consultants by small enterprises is now an established trend in business. As activities relating to the conduct of business become more complex, the need for outside assistance usually increases. Managers of smallscale enterprises who want to remain competitive need to consider using consultants as they would use other support services, such as bankers, lawyers, accountants and trade associations.

Consultants can play an important role in economic development by assisting people to set up small enterprises. For new entrepreneurs, the start-up phase is the most difficult; consequently, more and more consultants focus on this important aspect of enterprise development. Consultants and small-business development centres often arrange training for entrepreneurs who intend to initiate new enterprises.

Existing small enterprises use consultants mainly to solve specific operational problems. The duration of the consultancy will depend on the specific problem but most consultancies can be accomplished within a few months. Longer consultancies may be required if the problem concerns expanding business operations. Expansion takes time and the consultant may be involved periodically for one or two years.

Each stage of business establishment and growth brings new challenges and opportunities for the small-scale entrepreneur. New entrepreneurs have to be prepared for the additional demands that the business will make on their time, and to balance their working time with time for their family and for social pursuits. This can be particularly difficult for women entrepreneurs, as they often have responsibility for child care and household management.

Within economic policies pursuing structural adjustment, trade liberalization and privatization, the small-enterprise sector is now recognized as the key area to supply job opportunities and to provide goods and services. As a result, there has been an upsurge in consulting assignments to meet these new demands. This, in turn, has introduced a new dimension to the economic and social development field, i.e. the development of resource personnel to advise

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