Introduction
Exhausted soils, polluted waters, and unbreathable air signal a dangerous global breakdown.
Animals, fish and fowl die unnatural deaths. All over the planet, unseasonable weather
prevails. Nature swings increasingly out of balance. The human race needs to change
its ways, or disappear.

In attunement with the human urge to perpetuate life, there is emerging a new worldwide
"civil society". The new social configuration consists of individuals and non-governmental
groups that are speaking out to protect the environment and people everywhere from
exploitation. A socially responsible and well-informed citizenry not only wants, but
is demanding, a say in talks between governments and corporations about business activities
in the worldwide marketplace. The new civil society seeks to participate with governments
and corporations in the process of "globalization".

Concurrently, issues such as environmental damage, exploitation of laborers, animal welfare
and food safety are forcing governments and business to come up with policies reflecting
social responsibility. More and more companies are discovering the new language of the
21st century, a planetary tongue containing the significant expression "social responsibility".
Enterprises committed to social responsibility work not only for economic profit, but also
for the greater good of the planet and its peoples. There is a new triplicity in the making
between profits, planet, people.

One essential ingredient of socially responsible entrepreneurship is "transparency",
openness and dialogue with all concerned parties. Transparency, as well as other aspects
of socially responsible entrepreneurship, was examined in the Netherlands at the "Second
National Sustainability Congress".

The 2nd National Sustainability Congress, organized by the Center for Knowledge
Communication (CKC) and the DHV Consultancy group, was sponsored by VROM,
the Dutch Ministry of Housing, Spatial Planning and the Environment, ING Bank, Samson,
and SNS Asset Management. The daylong event took place at the Theater and Congress
Center Het Spant in Bussum, a countryside town not far from Amsterdam.

All 250 places for the congress were sold out weeks before the 13 March gathering date,
indicating the surge of interest in "socially responsible entrepreneurship". The organizational
committee has already announced that the Third National Sustainability Congress, slated
for 19 March 2002, will again take place in Het Spant.

During the 2001 congress, organized around the theme "Changing Responsibilities
for Companies, Government, and Ngo's", national and international speakers addressed
various aspects of sustainable entrepreneurship and corporate social responsibility.
Speakers represented business, governmental, and non-governmental organizations.
Although participants included both males and females from all age groups, and
despite the innovative character of the congress theme, all but two of the speakers
were older, white-skinned men. Most of the participants, including the women,
apparently felt most at home in the traditional grey and black business outfits.
A few men bridged a fashion divide by wearing blue jeans topped by sports
jacket and tie.

Words of Welcome
The morning session began with words of welcome by the chairman for the day,
G.H.J. Keijzers. Mr. Keijzers is Professor of Durable Entrepreneurship at the
European Institute for Business Ethics at the prestigious University of Nyenrode,
the Netherlands.

According to Professor Keijzers, socially responsible entrepreneurship is the future
of business life. We are living in uncertain times with new markets, new developments,
and new technologies bringing new roles to be played by corporations. People have to
lookahead with an eye to sustainable development and anticipate new ways to reduce costs
and renew marketing profiles. It is urgently important to stimulate socially responsible
entrepreneurship.

Advising the Dutch Government
After his introductory remarks, Professor Keijzers called on Dr. H.H.F. Wijffels,
Chairman of SER, the Social-Economic Board that advises the Dutch Government.
Dr. Wijffels initiated the morning session by talking about the advice on social
entrepreneurship given by SER to the Dutch government.

Dr. Wijffels stated that interest for socially responsible entrepreneurship is growing,
on multiple levels, in the worlds of government and business. When the concept
of sustainability is placed in its social context, he said, new perspectives for social
development can be found. Policies in the last century had as their goal to create
as much affluence as possible. To continue on in the old way will lead to the further
downfall of social and ecological quality. A higher level of consciousness is needed
to give better ideas on how to proceed in a more sustainable manner.

The Brundtland Commission, set up by the Dutch government in 1987, created quality
standards for social development. The three focal points that form the basis for the future
are economic growth, stronger social cohesion, and an improved ecological system.
At the present there is no balance in the triplicity.

The civil society movement will increasingly test its leaders. A good example of this
development can be seen in the new generation of social and non-governmental organizations
that protect the rights of all varieties of life forms. The ngo's, as they gain more wealth and
power, are exercising social responsibility by putting more pressure on the corporate world.

Consumers Becoming More Responsible
Citizens as individuals -- as consumers, employees, and investors -- are asking companies
to take aespons more rible attitude to the planet and its peoples. A new value and norm
pattern, effecting markets and preferences, is manifesting. Entrepreneurs, sensitive to
this development, are becoming more “modern” in their business approach.

Today’s consumers want a good profile of the company from which they buy products.
This need has an interactive effect on all markets; as part of this process, individuals and
social organizations are having more impact on business practices.

The civil society is manifesting. There is coming into existence a triplicity of corporations-
government-ngo’s. As ngo’s become more dominant, government will no longer hold
the monopoly on serving the interests of society. The decision will have to be made
whether it is better to let this development be regulated by the market itself or
by governmental intervention.

The Government's Task
According to Dr. Wijffels, socially responsible entrepreneurship is a positive process
thatis not benefited by governmental regulations or instructions. It is hard to put legislation
onto developments that are moving beyond minimal norms. The pulling force comes
from private interaction. Yet the government has a task to serve as an instrument for
its citizens. This task can be divided into three aspects:
1. “master of the market”: the government has to create minimal norms within which
individuals and organizations can maneuver;
2. the government itself has to show exemplary behavior in the marketplace, in line
with the code of the Organization for Economic Co-operation and Development. The OECD
has made guidelines for multinational companies that state clearly what governments expect
from them in relation to various aspects of sustainability.
According to SER, the Dutch government has to exemplify itself the socially
responsible behavior it would like to see from business organizations. For example, SER has
proposed to include in the annual “Prinsjesdag” speech, along with the usual economic data,
the aspects of people and planet. On Prinsjesdag, traditionally the third Tuesday in
September, the Dutch Government presents its policies in various fields for the coming year
in the annual "state of the nation" message. The Minister of Finance estimates the financial
costs for the year and states how the expenditures will be met. The reigning Dutch monarch,
in her or his function as a member of the Dutch government, delivers the spech to the Dutch
Parliament. Now SER suggests that the costs to people and planet also be included in the
government's presentation;
3. the government needs to become a better partner in social cooperation with ngo’s.

Contemporary entrepreneurship has to be characterized by transparency; company policies
and activities have to become more "visible". Legislation will not effectively stimulate
the communication process; it would have only symbolic meaning. SER maintains that
the Dutch government, in a natural way, has to help corporations come to a better reporting
of their activities. Organizations should be stimulated to take their own initiatives
toward increased transparency.

Dutch Ministry of Economic Affairs Pleased with SER
G. Ybema, State Secretary for the Ministry of Economic Affairs, conveyed the standpoint
of the Dutch government on the SER advice to the congress. Mr.Ybema had also spoken
at the First National Sustainability Congress in 2000. As a coordinating member
of the government, Mr.Ybema is responsible for developments in socially responsible
entrepreneurship. To begin with, he stated his approval of the SER advice. He found
the analysis very valuable, and the recommendations practical. The advice remains a concept,
however, because the Dutch Parliament has not yet accepted it.

Mr. Ybema went over the broad lines of the SER concept in the government's view.
Whether socially responsible entrepreneurship will become more manifest or not, he stated
in a friendly tone, “depends on you”. It is “up to you”, the people, declared Mr.Ybema looking
into the audience. Socially responsible entrepreneurship is a structural phenomenon, he said;
socially responsible entrepreneurship is neither a temporary fashion nor something “luxe”;
it is lasting. It belongs to the economic process taking place in the society at large.

Social Responsibility of Economic Benefit
Mr. Ybema shares the SER standpoint that socially responsible concerns should belong
to the core tasks of every corporation. Social responsibility has proven to be economically
beneficial to companies; economic benefit will naturally lead to more interest from
the business world. Because of the various advantages, opportunities are increasing
for socially responsible enterprises to obtain necessary investment capital. In London,
already early in 2001, four FTSE indexes on sustainability were introduced to the stock market.
The total invested amount of sustainable savings and investments has increased tenfold in the
last 12 years.

A research study conducted among corporate businesses showed that social responsibility
has taken root in corporate life. Of the companies surveyed, 51% are active in the field
of social responsibility (e.g. environment, donations to and sponsoring of good purpose,
non-profit foundations, human resource policies); 87% considered social responsibility
to be moderately or considerably important; 12% of the respondents think social responsibility
will have a positive effect on the turnover; 46% expect an increase in social responsibility.
Notably, 66% of the companies do not want to publicize their involvement in social responsibility.

Less Legislation, More Stimulation
In agreement with the SER opinion, Mr. Ybema said that every socially responsible enterprise
is different and has to be treated individually. Policies should fit within the scope of each
individual enterprise. Every organization has to "bloom in its own way". The government,
therefore, should not get too involved with legislation but should stick to a stimulating role.
Government can have a high involvement in the development of social trends without
interfering in the natural, positive process of their unfoldment.

When it comes to social responsibility within Europe, told Mr. Ybema, England
and the Netherlands are the most ambitious countries. In line with the SER advice,
he believes that the Dutch government could initiate the following activities:

1. improve the distribution of information so that current initiatives will better fit
together; set up an information center to create a structure for the information
network. Information has to “spread like an oil spot”;
2. stimulate transparency and openness of companies: “what you do and how you do it”.
At the moment, 35% of large companies report on their socially responsible activities;
with small companies the percentage drops to 17%. While encouraging openness, Mr.
Ybema is not an advocate of mandatory reporting;
3. strengthen the awareness, within corporations, of social responsibility, perhaps with
the help of trade unions;
4. anchor social responsibility within the government. One suggestion is to create a
guideline for investments made by the government itself (implementing OECD
guidelines);
5. improve the possibilities for legal proceedings against Dutch companies operating in
foreign countries. “Catch the rotten apples,” as Mr. Ybema said. In January 2001, the
Dutch government passed a law making punishable the bribery of foreign
functionaries; another suggestion is to make punishable, under Dutch law, the
environmental crimes committed by Dutch companies abroad.

All in all, Mr. Ybema considers the SER advice to be good advice. Socially responsible
entrepreneurship should be actively and creatively stimulated. He is determined to stay
in continuous dialogue with institutions, organizations, governments, and consumer groups
because “together we can do it”.

Reactions to SER from Government, Big Business, Ngo’s
After Mr. Ybema’s talk came reactions to the SER advice and the cabinet’s standpoint
from drs. A.G. Koenders, member of the Dutch Parliament (PvdA); drs. A.J.J. Kemps,
Director of Amnesty International in the Netherlands, and drs. F.J.M.C. Tummers,
Chairman of Unilever Netherlands.

Motivations essential
Mr. Koenders, a member of the Dutch Parliament for the PvdA, the formerly socialist-
oriented Dutch Workers’ Party, stated that the core of socially responsible entrepreneurship
is not with the government but with the corporations themselves: “Their motivations are
essential”. Social responsibility should be at the core of entrepreneurship in all its aspects.
Socially responsible entrepreneurship is a social trend, and Mr. Koenders believes
that it should not be impeded by governmental interference in the form of legislation.
The government should, nonetheless, create a “license to operate” (positive action)
in the marketplace. The dialogue between business and government has to be furthered.

Mandatory Reporting of Social Responsibility
Current developments make entrepreneurs a little bit like politicians themselves, he said.
Social responsibility is “made to measure” within each organization; corporations,
therefore, should take their own responsibility. He too mentioned transparency, the
reporting of company activities; "transparency" was a much-used term during the congress.

According to Mr. Koenders, the government can take actions to stimulate the transparency
process by requiring reports on social responsibility. Mandatory reporting should remain,
however, the only form of legislation. With mandatory reporting, the government acts
in its role as stimulator and contributes to the creation of a level playing field. Reporting
makes possible the supervision and inspection of companies by a third party, such as the
OECD. Mr. Koenders agreed with the idea of creating a quality center that would structure
the information lines.

Mr. Koenders noted the growing trend for companies to take responsibility both
for their actions and for the effects of their actions on the society at large. Companies
owe this socially responsible attitude to consumers. The government should not limit
theself-regulating process of companies by extensive legislation; a soft law, such as
reporting, should remain the only form of legislation.

Ngo's: SER Advice Not Sufficient
Drs. A.J.J. Kemps, Director of Amnesty International Netherlands, started by saying
that 35 organizations have created a platform in which the rules of the game for socially
responsible entrepreneurship are defined. According to these organizations, which include
the Dutch Consumers’ Union, church organizations, and many other ngo’s, the SER advice
is not sufficient.

Ngo's Want More Governmental Control
To begin with, the triplicity of government, the corporate world, and the ngo’s remains
out of balance. The ngo’s have too small a part. Information provided by business
organizations does not always seem correct; there is no control over what is claimed.
The Dutch research bureau Edelman conducted a survey which showed that the Dutch public
does not necessarily subscribe to the opinions of the government and the corporations.
Consumers have a strong need for more reliable product information so that they can make
responsible decisions. Because of these survey results, Mr. Kemps believes that
self-regulation is simply not enough. Some regulations from the government are required.
There needs to be a higher level of control, especially at the international level.

Bigger Role for Ngo's
Ngo’s will get a bigger role by taking a more active approach towards social responsibility.
They need to:

1. provide information; especially the smaller ngo’s will become more dominant by
forcing business companies to take positive,socially responsible actions. The
information center will be a valuable tool for consumers, allowing them to make more
responsible choices;
2. lobby at the government level for better legislation, for example, in the form of
mandatory regulations. The government itself should take on an exemplary function.

Mr. Kemps also said that the role of business in the marketplace has to be based not only
on competition, but as well on contact and dialogue. We all have to bring more responsibility
into this world.

The Core Business of Unilever
Drs. F.J.M.C. Tummers, Chairman of Unilever Nederland, began his presentation by referring
to the remarks of previous speakers. First he declared that he is a businessman, and wants
to remain a businessman, not become a politician. Further he said clearly that entrepreneurship
in itself does not have a social nature. The Chairman of Unilever disagreed with the SER advice
that social responsibility is the core business of an organization. Mr. Tummers said that
the core business of Unilever is not social responsibility. The core business is making products
for consumers; how this is done is the societal aspect.

According to Mr. Tummers, sustainability is more than the socially-accepted concept;
it is “all the things you do in the interests of your own business. Altruism is not the core”.
Sustainability is always a part of management, because it is in the corporation's own interest;
it guarantees continuity and should thus not be mistaken for altruism.

Unilever Against Mandatory Reporting
Mr. Tummers does not agree with the call for required reporting of a company’s social
responsibility. In his clear and direct way of speaking, the Unilever Chairman declared:
“Business does not like laws like this”. And since the definition of "best practice"
is not clear, reporting can lead to confusion. When reporting becomes obligatory and
captured in regulations, people will simply write reports that comply with the minimal rules;
this will have a negative effect on the taking of initiatives. Transparency is indeed needed,
but the key to unravel this is in a mutual dialogue.

Mr. Tummers further warned against that arrogance which encourages Westerners to impose
their norms onto countries in developing areas. Westerners have to take account of local
practices and needs. Transparency is about searching for practical solutions while not seeing
everything through your own nation’s glasses. There has to be taken into consideration:
how can we work with norms and values different than our own. Rather than leave a country
because you do not like its ways, often it is more beneficial to the local society to stay,
and try to influence changes from within the country's existing structures.

Worlds in Conflict
After the morning coffee break, Mr. Ybema, Mr. Kemps, and Mr. Tummers exchanged
thoughts on the responsibilities and role of the government, ngo’s, and the business world.
Mr. Koenders had obligations elsewhere. Ms. M. Janssen Groesbeek, Dutch freelance
journalist and author of the book Maatschappelijk Ondernemen ("Social
Entrepreneurship") led the discussion.

Among the questions discussed: what is the "bottom line", the deciding or crucial factor,
on whether or not to bring in legislation to regulate the social responsibility of companies?

Mr. Keijzers thought that legislation is important only when it serves a functional purpose
and is not just to fulfill social norms. To this Mr. Ybema added that, in the Netherlands,
there is an uncontrollable tendency for legislation. This leads to a certain kind of hypocrisy
since also a policy of tolerance exists.

"In the Netherlands," stated Mr. Ybema, "we spring in fast to make regulations, but
keeping them is something different." Rather than jump in with regulations, he thought that
government should stimulate the process and allow "regulations" to come naturally. Socially
responsible entrepreneurship is a process, he said, and should have the freedom to develop
in a natural way. Government should only make legislation that has a supportive character.

Mr. Kemps expressed his amazement at the government's lack of invitations to organizations
to participate in policy making. He said that no ngo’s were involved in formulating the SER
advice. Mr. Tummers responded by stating that Unilever tries to maintain contacts with ngo's
on a daily basis. He said that ngo's, however, do not seem willing to commit themselves
in any way to commercial companies. He pleaded for a better mutual understanding,
less fear, and a more open dialogue.

When the floor was opened to questions from the audience, a representative of the Max
Havelaar Foundation took the microphone. The Max Havelaar Foundation is a Dutch
non- profit organization that offers trade opportunities, at good terms, to farmers and workers
in disadvantaged parts of the Third World.

The Max Havelaar representative began by "congratulating" Mr. Tummers for "making it
so clear that government regulations are necessary, especially in developing countries".
The remark brought an immediate hush upon the hall. The audience fell completely silent,
and there came a tension in the air that was quite noticeable after the previously lighter
atmosphere. The Max Havelaar representative went on further to criticize the opportunistic
attitudes of multinational corporations like Unilever. These companies, he declared,
have a responsibility to uphold certain basic norms and values.

More Understanding Needed
Mr. Tummers, obviously able to abide words bitter to the corporate ear, in all calm responded
that human rights are about respecting life. There are so many cultural differences
between peoples it would be arrogant to impose our Western ideas on other countries.
We should keep an open dialogue, create a greater understanding for the specific needs
of people in third world countries.

Mr. Kemps thought that this approach to be insufficient as it can lead to a credibility crisis.
Without an independent control and legislation, companies will not have equal standards.
He thought it important to make codes for external reporting.

Mr. Ybema expressed his view that more and more companies will make public their socially
responsibility efforts. Based on his travels abroad, he believes that our Western moral opinions
are not necessarily beneficial for others. There are no such things as easy solutions, he said,
especially referring to child labour.

According to Dr. Wijffels, we as a society are in a continuous process of becoming
more "civilized" in all of our actions, including business dealings. He believes the “level playing
field” to be a misconception; socially responsible pioneers must be given the space
to operate, and not get crowded out of the field by lawgivers. Also he said that ngo’s
suffer from a lack of self-confidence. He pleaded for a modern view of government that
asks for more self-initiatives from business companies.

Need for Business Accountability
Just before lunch, the Congress heard from one of the only two women on the speaker's list,
Ms. K. Sexton, Chief Executive of AccountAbility for the Institute for Social and Ethical
Accountability in London. She spoke in English on important developments in the field
of instruments for sustainable enterprises, such as AA1000, SA8000, GRI. These
"instruments" are new business standards by which to promote international social
accountability for individuals and group members.

AccountAbility, with a secretariat based in the United Kingdom, was founded in 1996
as an international membership organization. On its website, the organization describes itself
as committed to strengthening the social responsibility and ethical behavior of the business
community and non-profit organizations, and aims at improving the accountability and
performance of organizations worldwide. AccountAbility addresses this aim by promoting
social and ethical accounting, auditing and reporting, and developing standards and
certification for professionals in the field. The institute has over 400 members in 40 countries
and is experiencing an ever-growing international interest in the field of AccountAbility.

Need for New Business Standards
Why is there a need for business standards, especially new standards? asked Ms. Sexton
rhetorically. There are four main reasons, she said, going on to speak about providing
guidance, filling in gaps in old technical standards, and delivering systems with legitimacy.
Further, there are needs for specialized management techniques and for bringing logic
into the complexity of sustainable development. These needs emerge from continuing dialogue
and engagement with the involved parties.

Ms. Sexton discussed the Social Accountability 8000 Standard (SA8000), developed
bythe Institute for Social and Ethical Accountability, which gives new standards to deliver
in performance. The SA8000 creates a standard and verification system for the human
workplace.

With the current IT revolution and the globalizing marketplace, image and brands are
becoming more important; management, therefore, needs guidance in social accountability.
The ISEA provides guidance for management with its standard for global reporting initiative
(GRI).

Performance Enhancer
Ms. Sexton stated it is necessary for an organization to recognize its responsibilities,
and to discharge effectively its tasks, while engaging with its shareholders. Every
organization is accountable in different ways: "Much depends on where and how
a corporation does what it does." In short, Ms. Sexton said that ISEA takes high principles
and puts them into something visible, as standards. "Improved accountability is a performance
enhancer."

Ms. Sexton stated that she does not like the term "social responsibility" because it tends
to glorify companies. In the end, all is about accountability. Accountability asks
for three aspects: transparency, responsiveness, compliance.

A Lively Lunch with More Food for Thought
After a concentrated morning of lectures and discussions, the participants were clearly ready
for the buffet luncheon that was served in an informal and relaxed atmosphere.

The Sun Conscious editorial team found two available places at a table; over the meal,
words were shared with luncheon neighbors. The dining atmosphere was considerably
enlivened, however, when Mr. Ybema joined the table.

With the arrival of Mr. Ybema what had previously been a collection of individual talks
now become a round table conversation. In this informal setting, the Dutch State Secretary
for Economic Affairs expressed his thoughts about the difficulty of legislation on socially
responsible entrepreneurship, the creation of standards for the business world, and sustainable
development in general. From his extensive travels abroad, Mr. Ybema seemed
to have gained quite some knowledge about cultural differences and the need to respect these.

"Together We Can Do It"
When the lunch ended, and we all stood up to return to the lecture hall, Surya Green quipped
to Mr. Ybema: "Where shall we send the 25,000 guilders each?" Mr. Ybema laughed
heartedly, as did the others at the luncheon table. Everyone had apparently seen the morning
newspapers: the day before, on 12 March, at a special luncheon held in The Hague,
nearly 50 people had paid a fee of 25,000 Dutch guilders (around US$ 10,212) to spend
30 minutes at the dining table with the ex-USA President Bill Clinton.

Mr. Clinton had spoken in the Netherlands at an exclusive luncheon held at the Crown Plaza
Promenade Hotel in The Hague. For three-quarters of an hour, Mr. Clinton addressed
350 business people. The event cost 3,000 guilders (around US$ 1200) for each participant,
and was closed to the press. The contents of Mr. Clinton's speech were not made public.

"What did Mr. Clinton speak about, and did he mention sustainability?" Surya Green asked
Mr. Ybema at lunch during the Sustainability Congress. The previous evening's Dutch TV
news had shown the State Secretary emerging from the Hague lecture.

"Yes, sustainability was one of seven points Clinton made in his talk mentioning the future
of Europe," responded Mr. Ybema. He also told that Clinton was traveling to various
other cities on the Continent, apparently presenting the same speech.

Besides giving a general talk in The Hague, Mr. Clinton also gave a selected number
of persons the opportunity to sit with him for 30 minutes. For two hours during the luncheon,
the ex-president divided his time at four tables, each consisting of 12 persons. Whoever
could pay the hefty luncheon tab had the privilege to share "conversational intimacy"
with the ex-president.

Mr. Ybema is not a President Clinton, but he does hold a significant position in the national
government of his home country. Further, he does seem to be a man of his word, and honesty
is an important necessity for socially responsible entrepreneurship. During the informal lunch
at the Sustainability Congress, Mr. Ybema acted on his statement made earlier that morning
from the speaker's podium, that he is "determined to stay in continuous dialogue" with
institutions, organizations, governments, and consumers “because together we can do it”.

Bridging the Digital Divide
After lunch, back in the concentrated atmosphere of the lecture hall, two leaders from
the world of ICT and Internet gave their vision on the “digital divide” between North and South,
“haves” and “have-nots”. Each spoke about the responsibility of the "haves" to bridge
this divide by letting the "have-nots" also participate in the benefits of the new economy.
The first speaker was J.G.P. Baan, chairman of the Noaber Foundation, part of the
Vanenburg Group in the Netherlands.

Noaber Foundation
Mr. Baan told that the aim of the Noaber Foundation is to stimulate welfare in emerging
countries by means of ICT projects. In addition, Noaber seeks to stimulate cooperation
in specific segments of the Dutch health care sector. The foundation's mission is expressed
in the slogan: "The Challenge for Innovation in Care and Welfare." Noaber tries to give
practical solutions in a pragmatic way. Through innovative projects the foundation attempts
to raise the living standard of underprivileged groups.

"Noaber", told Mr. Baan, is an old word from his home region in the Netherlands, the Twente
province. The word literally means "neighbor"; the foundation aims to help its global
neighbors with the use of ICT. More and more the network economy has to do with people
and not with dollars, said Mr. Baan, adding, "I never saw a smiling dollar".

Mr. Baan commented that it is very fashionable these days to talk about the digital society.
But what does this mean when, for example, only one percentage of the Chinese people
has access to the Internet? And when half of the world's peoples have never in their lives
made a phone call? He noted that sustainability on a worldwide level is hard to find.

The new economy, based upon ICT and Internet, has given a boost to globalization. The last
few years have seen an immense increase in wealth worldwide, but the gap between rich and
poor has widened even more. Research on wealth sharing in the new economy in the USA
has shown that the rich have profited most from the economic boost. This is the most
serious problem: "All the economic growth is going to the top end."

Helping Neighbors in the World
With the aid of color slides and his Twents sense of humor, Mr. Baan described several
Noaber projects addressing the digital divide. They include digital archiving for theYad
Vashem Holocaust Museum in Jerusalem together with a donation of US $1 million
for the computerization. "E-peace in Jordan, a privatization of the peace process",
was set up by Noaber in cooperation with the Van Leer Foundation of the Netherlands:
“Software Horizons" was created in Jordaan to provide well-trained people with IT knowledge
for the area. Also he mentioned the project "Charidim and JBE software" in Jerusalem,
giving orthodox Jewish people a technical training in an orthodox technical college.

Other Noaber projects to help people suffering from lack of participation in the digital divide
include "Speech View", the use of computer technology to optimize speech reading
for deaf people; there is also a computer project helping blind people.

Making a Difference
During a lively presentation in which he explained how Noaber is "making the world a little
bit better", Mr. Baan made the point that an organization does not have to be large-sized
in order to make an impact. Every organization, no matter how small, can make a difference
in the lives of others.

EZiba.com
Dick Sabot, Professor Emeritus of Economics at Williams College, Massachusetts, USA,
next took the congress stage in his role as co-founder of the Internet companies Tripod.com
and eZiba.com. He began his lecture, in the American language, by complimenting his Dutch
hosts by saying that the Netherlands holds a leadership role when it comes to sustainability.
In this respect, when he thinks of the Netherlands: "I think of sustainability in world
development, the entrepreneurial spirit, taking advantage of world possibilities, and the
harness of capital for social uses." Mr. Sabot finds no contradiction in the Netherlands
between the entrepreneurial spirit and sustainability.

Internet is Interactivity
Then Mr. Sabot referred to the David and Goliath bible story to compare his first Internet
company, Tripod.com, with the Internet company Pathfinder.com. Both Internet sites
offered personal-publishing tools and services. Pathfinder was established in March 1995
by Time Warner, which invested about 50 million US dollars in the site; Tripod was started
at the same time by Professor Sabot and some of his students. To turn Pathfinder
into a "Top Ten" website, Pathfinder spent $3-$4 million per month while Tripod spent
only a few thousands monthly. In the end, Pathfinder went out of business while Tripod
became very successful.

"To succeed on Internet," summed up Mr. Sabot, "it is essential to take advantage
of the new medium. You cannot do radio on TV, which is what Time-Warner did."
One cannot simply adopt the techniques of radio and TV to Internet: "Interactivity is
the core of the new medium."

After having sold Tripod for a large sum of money, Mr. Sabot went on to become
co-founder of eZiba.com. EZiba is an online emporium offering for sale high-quality
handcrafted products from around the world. The website thrives on the trend that Mr. Sabot
calls “the democratization of good taste”; unlike a company like Ikea which sells large quantities
of the same items for the mass market, eZiba offers products made in limited numbers.
Said Mr. Sabot: people want products that are authentic and unique, and eZiba
"serves this need".

The founder of eZiba explained that his company fits the classification of "socially
responsible" because it "levels the playing field for people in developing countries",
generates employment, drives prices up for local workers, and gives skilled crafts people
access to the US market. He sees eZiba as "a non-profit, private sector Peace Corps".

Mr. Sabot also spoke of the eZiba non-profit foundation, established with pledges
of founders’ stock. The foundation is working to preserve cultural diversity which,
says founder Sabot, may be as important to the planet as maintaining biodiversity.
EZiba Foundation sends tech people around the world to share their IC knowledge.
To fulfill the good purposes of the eZiba foundation, said Mr. Sabot, a profitable
enterprise is needed and that is eZiba.com.

First Generation Internet Sites
At the moment, quite a number of Internet companies are going bankrupt and disappearing.
This fits in with Mr. Sabot's observation that the first phase of the Internet revolution is over
and the second phase is starting: "Amazon and etoys are some of the disasters among
the first generation sites."

The first generation of Internet sites was characterized by product databases in the public
domain. "The problem was that there were low barriers for Internet entry, and many sites
wound up offering the same products," explained Mr. Sabot, using as examples
the numerous sites selling the same books. The first generation was characterized by intense
price competition, low gross margins, a “land grab game”, and reckless marketing expenditures.
In the end, this led to low gross margins and high marketing costs, making for long delayed
profitability.

Second Generation Sites
On the other hand, second generation Internet companies have a proprietary product database,
high barriers to entry, limited price competition, modest marketing expenditures, and a
high proportion of repeat customers. On line since November 1999, Eziba incorporates the
second generation aspects and is rated in the top ten of the web's most reliable sites. Eziba
is "moving rapidly towards profitability," said Mr. Sabot, "and, if highly profitable,
we think that Eziba will be able to deliver our ecological goals as well."

"Attractive Face of Globalization"
Mr. Sabot explained that eZiba does business with craftsmen who use renewable resources
to make environmentally sound products, including “recyclable art”. He mentioned chairs
decorated with bottle caps, baskets made from surplus phone wire, and bracelets made from
safety pins and beads by Aids-infected women in South Africa. In short, eZiba "represents
the attractive face of globalization… a benefit to people in the poor countries….a counter
example of the negative aspects of globalization".

Questions from the Audience
After the lectures, both Mr. Baan and Mr. Sabot took questions from the audience.
One person wanted to know whether the new technology offers an effective substitute
for physical traveling. Mr. Baan responded that, in the first phase, people travel more
because they like to taste real cultures and touch people. Eventually, he thought,
people will travel less and enjoy their own environment more. Mr. Sabot, saying that
travel increases with income, noted that the new technology is an effective substitute.

Someone else in the audience commented that multinational corporations are very large
and inflexible, whereas the new technology seems to ask for small and flexible enterprises.
The questioner wanted to know: is there a role for multinational companies in the field
of new sustainable ventures?

Mr. Baan responded that the pioneers in this field will probably all be of smaller size.
"Multinationals are like dinosaurs: you cannot make them fly, but you can teach them
to be more adaptable."

New Attitude Required
Mr. Sabot commented that, when it comes to the entrepreneurial spirit, there is a
radical difference between the USA on the one hand and Europe and Japan on the other.
"The innovative capacity of the USA is admired by the world; in Europe, the Netherlands
is leading in this category," he said. "But in Europe you need better exit strategies for risk
takers. In the USA one can fail; in Europe one is scarred by failing. America is the land
of second and third chances, and that has to be here too." He said that a new attitude
is required by all Europeans: Europe and Japan need a cultural change if they want
to become a part of the second revolution.

Parallel sessions
The last part of the day's program commenced after the afternoon coffee break with
two parallel sessions. The one was entitled "Companies for the Neighborhood".
It seems that a growing number of companies have become actively involved, using their own
network and personnel, in social programs for socially and economically weak neighborhoods.
The session explored how companies, even when they are not located in the areas themselves,
and have no direct economic interest with them, can fulfill a worthwhile role in helping to better
the livability of weak neighborhoods. Participating in the discussion were A. Voets from the
non-profit foundation De Wijk is van ons Allemaal ("The Neighborhood belongs to All of
Us"), H. van Luit, Managing Director of EMI in Uden, the Netherlands; Ms. R.I. Verdies,
Head of Financial Administration for the ABN AMRO Bank, Amsterdam; and E.
Mandersloot from the non-profit Foundation Social Adventures.

Initiatives on National Level
The Sun Conscious team chose to attend the session: "Between the Neighborhood
and the World, Initiatives on National Level". The first speaker was J. Berends,
head of the department for Environment and Product Safety in the Dutch chemical company
DSM. DSM, operating in 39 countries in over 120 locations, has a product line that
includes chemicals for industry, for mainstream medicine, and for processed foods
(preservatives and taste and smell enhancers).

DSM and Sustainability
Mr. Berends said that whether a company is sustainable or not is a question that can
only be answered by third parties, not by the company itself. Getting ready to celebrate
its 100th birthday in 2002, he pointed out, DSM can thus be seen by others as a
sustainable company.

DSM follows the policy of maintaining one set of company norms and values all over
the world since that is most practical for its working methods. To maintain continuity,
said Mr. Berends, it is important, however, to make necessary changes on a regular basis.

DSM has a pilot project called “DSM and Sustainability”. The study focuses mainly on
the planetary aspect of the three sustainable "p's" (people, planet, profit). The project
researches the possibilities for combining profitable economic growth with the effective use
of natural resources while contributing to the social environment. Questions that the project
attempts to answer are: what is the significance of sustainability for DSM and how much impact
does it have on the company; how much attention does management give to this issue; what is
the influence of sustainability on company strategy?

Sustainability focal points for DSM include reducing refuse matter, improving risk control
for dangerous chemical substances, improving energy and material efficiency, reducing injury
to the environment, improving logistics, and making an annual "Responsible Care Progress
Report".

The pilot study was undertaken after a benchmark test, to see where DSM stands
in comparison to other companies, showed that it had a rating of "average". There were
enough possibilities for improvement, and it was decided to undertake the pilot study.
Mr. Berends quite openly admitted that DSM still needs to make considerable progress
on environmental care.

The pilot study included the recommendation that DSM become a member of the World
Business Council for Sustainable Development and strive to be included in the Dow Jones
Sustainable Group Index. There were other recommendations for DSM to address
sustainability in a more explicit manner in its business strategy, and to make use
of the knowledge about sustainable entrepreneurship from preferred customers.
There was also mentioned the combining of "enivronmental effects with economical effects",
meaning that the company should try to be financially healthy in ways that also
diminish ecological costs. This would allow the company to make an active and needed
contribution to improving the environment.

It was concluded that sustainable entrepreneurship is process-oriented and can be taught
by practical applications, demands open communication and the ability to learn by trial and error,
and can make a considerable impact on creating a higher degree of company value.

Nutreco: Agriculture is No Island
A. Dijkhuizen, Business Group Manager of Nutreco, also gave a well-organized, fact-filled
presentation. Nutreco is a Dutch-based company working in the field of agriculture
(breeding, specialist feed ingredients and services, compound feed and meat processing) and
aquaculture (fish feed, farming and processing). The company is active in 20 countries
and has over 11,000 employees.

Mr. Dijkhuizen agreed with the former speaker, Mr. Berends, that social responsibility
is not new in business life, but is now getting more attention. Increased prosperity
in the Netherlands has meant better salaries for workers and better investments as well as
higher costs for agricultural input. Increased volume and efficient work methods have met
these increased costs. Yet, "agriculture is no island," said Mr. Berends. More people,
of course, have become more aware of the interconnectedness of agriculture with all aspects
of society since the animal diseases of Mad Cow and Foot and Mouth have been spreading
in Europe and around the world.

For Nutreco, sustainability includes maintaining the environment, animal welfare,
and food safety. These points are incorporated in Nutreco's "Sustainability Mission";
they have to be incorporated into the company's policy while keeping costs reasonable.

Mr. Dijkhuizen also said it is the customer-consumer who will decide the speed
at which policies on sustainability will be incorporated into the business world.
Wanting to "walk in front of the development within its market", Nutreco aims to become
a reliable partner within the whole scope of the product cycle. The company is especially
concerned with food safety. The needs of the consumer, however, have to be in balance
with the interests of the Nutreco stakeholder.

Important to "say what we do and do what we say”
Mr. Dijkhuizen further spoke about the need for openness and transparency. A pilot project
has shown that socially responsible entrepreneurship gives a company a unique opportunity
to distinguish itself from competitors. For the first time, Nutreco has written a social
and environmental report. More than ever it is important to “say what we do and do
what we say”.

Mr. Dijkhuizen compared the complete product scope of a company with a bicycle,
the traditional Dutch sustainable vehicle. On this bicycle the consumers are steering,
the government and ngo's are situated on the rear carrier (giving a license to produce),
and all those involved in the product cycle make up the frame.

Plenary Session
After the lectures there was a plenary session with Mr. H. Kleeven, Manager
of the Sustainable Return Fund of ING Investment Management, and Mr. G.F.C.
van der Kamp, General Manager of SNS Asset Management. Both companies
are Dutch banks. Ms. M. Janssen Groesbeek led the informative session.

Parting words
After an intense day in the emerging world of sustainability, all participants streamed back
to the reception hall where orange juice drink and wine were served as parting refreshments.
Representatives from corporate business, non-governmental organizations, and government
ministries informally exchanged final words of the day with each other. As well were
exchanged business cards. Sustainability will also spread by networking and interconnecting.

The Congress left one with the hope that governments and companies, used to the
business norms of the 20th century based on the greatest economic profit, can indeed
make the transition into true "socially responsible entrepreneurship". Yet it remains
to be seen whether governments and companies, while they continue to focus on profits,
will voluntarily put the same attention on protecting the environment and all laborers
from misuse. It is time, long overdue, for values and norms of higher consciousness
to replace those based on human greed and worship of God Money. The new business
triplicity of profits- planet-people has to come into balance.

In the 21st century, the responsible entrepreneurs will be those individuals, companies,
and governments which know that the profits for people and the planet far exceed
those of economic gain. People who speak of social responsibility will have to
take the responsibility to manifest their words in deeds of social benefit.

©Surya Green 2000-2010