Michael Solomon, founder of SEE Companies, explains why it is in the best interests of businesses with social ambitions to shout about what they do and how they do it.

Identifying responsible business practice is difficult. Firstly, there is little agreement on what constitutes ‘responsible’.

Secondly, more and more companies claim to be operating responsibly. Given that many such companies are perceived to be unethical or active in controversial industries, this creates confusion. For example:

• BP, the world’s second largest oil company, recently assigned a budget of $150 million to communicate its ‘green credentials’

• Nestlé, the UK’s most boycotted company, converted approximately 0.03% of its annual coffee purchases to Fairtrade coffee in order to launch Nescafé Partners’ Blend

• Business in the Community has ranked British American Tobacco, Barclays, Tesco and BNFL in its 2006 ‘Top 100 companies for corporate responsibility’

Today, the majority of people find it is impossible to differentiate between companies committed to operating responsibly and those simply trying to look good. Clarity is needed to provide real choice for consumers and to empower companies seeking to conform to the highest standards of responsible business practice.

In short, companies committed to best social, environmental and ethical business practices need to be easily identified. To this end, SEE Companies has created the SEE Stamp and SEEcompanies.com.

Demonstrably SEE businesses (i.e. those pursuing SOCIAL, ENVIRONMENTAL and ETHICAL returns in tandem with financial returns) such as The Natural Store, howies and paperback have chosen to list themselves on our website to communicate their values and SEE commitments. They are motivated by enlightened self-interest, given the level of confusion on SEE issues and the ongoing erosion of SEE corporate standards, these companies want to differentiate as being genuinely committed to the very highest standards of SEE responsibility.

Such differentiation increases the value of these companies’ goods and services. It enables them to pursue their primary purpose, that is the delivery of high-quality goods and services with value added for the consumer through clear and demonstrable SEE ambitions.

This added SEE value makes, for example, Cafédirect’s Fairtrade coffee preferable to Nestlé’s Fairtrade coffee. The growing number of us who want to factor SEE issues into our consumption choices will derive greater utility or satisfaction from the Cafédirect product, even when accounting for a slightly higher price.

Nestlé is not a SEE enterprise. It has not adopted a new business model. Its launch of a Fairtrade instant coffee was most likely motivated by its search for profitable new markets and a need to cite some ethical credentials. This is a company that enjoys £40bn revenues annually. While a drop in the ocean to Nestlé, the £1m budget set for promoting its Fairtrade credentials threatens the very existence of businesses built for the sole purpose of growing the Fairtrade movement.

Similarly, SEE enterprises promoting environmental technology will never compete with BP’s ability to buy ad space and present itself in whatever shade of green it thinks is appropriate. BP is no SEE enterprise and many regard its eco-credentials as highly questionable. But with $6bn profit falling into its lap every three months, it also needs to maintain public approval.

I believe, because of this tokenism, companies are increasingly held in low regard. Tragically, business as usual is conducted against a backdrop of global warming, resource depletion, species extinction, worldwide poverty and an ever widening gap between rich and poor.

And often, the various activities pursued under the aegis of corporate social responsibility (CSR) often perpetuate distrust because they are so limited in their ability to address real issues that they appear derisive. CSR activities which amount to little more than PR stunts do not demonstrate business responsibility, indeed they are more likely to demonstrate the very opposite.

As with CSR, socially responsible investment (SRI) also fails to do what it says on the tin. Paul Hawken’s 2004 study of practically every SRI fund in the world illustrates the point well. Of the 602 funds the comprehensive study identified, Exxon Mobil was held by 40 funds, Halliburton was held by 23 funds and Monsanto was held by 19 funds. Are these companies that you consider to be socially responsible?

CSR and SRI are parts of a failing system. A system where corporations offload huge costs onto both society and the environment while using their power and influence to persuade us that, really, they are trying hard to be part of the solution. The problem is that companies gain advantage from, and are rewarded for, both externalising costs and abusing the information advantage they have over other stakeholders. Using their know how and financial strength they can manipulate public perception.

We owe a great debt of gratitude to trail blazing SEE enterprises that produce goods and deliver services while pursuing a more-than-just-profits mission. SEE enterprises have been instrumental in creating markets for genuine ethical alternatives. Markets that are now growing rapidly, both in terms of the number of consumers coming to them and in the variety of goods and services on offer.

The danger is that having pioneered the ethical marketplace, SEE enterprises will now be reduced to a historical footnote if returns-focused multi-nationals are allowed to muscle in and dilute SEE standards. What is needed is credible corporate responsibility: real transparency on all material social, environmental and ethical issues. To do this, and establish SEE added value, companies need to say what they do and do what they say as clearly and loudly as possible.

This is precisely what we have developed the SEE Stamp for. It denotes transparency on SEE issues. Accredited businesses are licensed to display it on their packaging and all other marketing materials.

The SEE Stamp is accredited only to companies prepared to undergo the most comprehensive and public examination of SEE business activities in existence. To secure accreditation, a company must:

• Answer the SEE Questionnaire – 50 tough questions on a range of SEE issues

• Satisfy SEE Companies’ strict accreditation criteria, guaranteeing all information:
? is accurate, complete and current
? will be updated as necessary


• Publish its answers on SEEcompanies.com for public scrutiny, comment and rating

In addition to their answers to the SEE Questionnaire, accredited companies are able to publish other information about their businesses on SEEcompanies.com including their mission, values or beliefs.

SEEcompanies.com it is the backbone of the SEE Stamp. Companies use their website listing to describe what they do, how they do it and to detail the ways in which they are committed to SEE responsible business practices. Assuming that people will not compromise and make do with SEE-lite options, real SEE business may yet prevail.

The SEE Stamp will be launched in September this year. You can read more about SEE Companies at www.seecompanies.com