The Great Reset and the Hyperconnected World in the Post COVID-19 Era

Dr. ASLI VAROL

 

It has turned out that current political systems, ways of doing business and social conditions are not conducive to build a healthier, more equal and more prosperous future. The COVID-19 pandemic has also shown that humanity is not ready to respond immediately to such a global crisis. However, the effects of the climate crisis and environmental degradation have caused economic and environmental challenges around the world. As a result of all these devastating effects, the foundations of a new initiative were laid to improve the condition of our planet.

Great Reset: “One path will take us to a better world”

The Great Reset that aims rebuild the world economy after the COVID-19 pandemic was introduced in May 2020 by Charles, Prince of Wales, and Klaus Schwab, Chairman of the World Economic Forum. Great Reset aims to overcome the challenges of the COVID-19 pandemic by creating opportunities. If these opportunities are used well, a greener, more equal and more sustainable world will be created. At the virtual Davos Summit in January 2021, the concept of the Great Reset focused on how economies will recover after the COVID-19 outbreak and how to rebuild lost confidence and optimism.

As stated in the book titled “COVID-19: The Great Reset”, “We are now at a crossroads. One path will take us to a better world: more inclusive, more equitable and more respectful of Mother Nature” (Schwab and Malleret, 2020: 190).  That’s why Klaus Schwab, Chairman of the World Economic Forum, proposes to the “Great Reset” of capitalism for a healthier, more equitable and prosperous world economy in post-COVID-19 era. Thus, it is aimed to be more sustainable and resilient against the worsening conditions with global crises such as COVID-19 and climate change. If the economic crisis caused by COVID-19 is not intervened in a timely manner, worse consequences will occur and the world will become more fragile than it is today. Schwab emphasizes that preventing this negative scenario can be achieved by promoting stakeholder capitalism, building a flexible, equitable and sustainable system based on “environmental, social and governance” (ESG) criteria, and utilizing the innovations brought by the Fourth Industrial Revolution.

There is no optimistic picture of a return to normal after the COVID-19 outbreak. Schwab and Malleret state that some pundits talk about the period “before coronavirus” and “after coronavirus”. This warns about the arrival of radical changes (Schwab and Malleret, 2020: 11-12). The private sector has important duties in ensuring the adaptation to these radical changes. The private sector should take the lead in cultivating a sense of sustainability in societies in order to protect the resources of our planet and to overcome the new crises that may arise with the least damage.

Companies could lay the foundations for a better future with sustainable business practices within the framework of the Paris Agreement and the Sustainable Development Goals. Companies have the power to gather the whole world around common goals to turn the effects of COVID-19 into opportunities. Building a better economic system and healthier societies can only occur when companies achieve stakeholder capitalism. While the COVID-19 pandemic was experiencing its toughest period, companies actively worked in vaccine development and distribution, ventilator production and all processes in the fight against the pandemic. Therefore, companies that have been so effective in overcoming the COVID-19 crisis will continue to be the most important stakeholders in the construction of the post-COVID-19 era.

Hyperconnectivity and Fourth Industrial Revolution                                                             

The macro reset will occur in the context of the three dominant secular forces that shape our world today: interdependence, velocity, and complexity. These three forces will affect everyone, more or less, wherever they are in the world (Schwab and Malleret, 2020: 19). It is necessary to act quickly and jointly to build a sustainable economic and social system through the Great Reset.

The tremendous progress of globalization and technological progress over the last few decades represents that the world is now “hyper-connected”. An interdependent world is a deeply systemic interconnected world where all risks affect each other through a complex web of interactions. Under these conditions, it is understood that an economic risk will not be limited to the economic field or that an environmental risk will have reflections on risks of different nature such as economic, geopolitical, etc. (Schwab and Malleret, 2020: 19-20). To overcome these risks, it is necessary to build a new economic and social system that is flexible, sustainable and inclusive. In this new system, the business world should make maximum use of the opportunities offered by the Fourth Industrial Revolution. 

Schwab states that the fourth industrial revolution has four main effects on business across industries (Schwab, 2016: 54):

o        “customer expectations are shifting

o          products are being enhanced by data, which improves asset productivity

o     new partnerships are being formed as companies learn the importance of new forms of      collaboration, and

o         operating models are being transformed into new digital models.”

The business world could transform the ways of doing business by considering these four effects. Large companies are the leading stakeholders in the construction of a sustainable common future. In this sense, the business world has a great responsibility. Companies must work with all other stakeholders to improve the health and well-being of our planet. 

Business Leaders Must Take Action

With its speed and breadth, the Fourth Industrial Revolution has connected billions of people with mobile devices, bringing the unlimited possibilities of providing unprecedented processing power, storage capabilities and knowledge access. Emerging technology breakthroughs that cover wide-ranging fields such as artificial intelligence (AI), robotics, internet of things (IoT), autonomous vehicles, 3D printing, nanotechnology, biotechnology, materials science, energy storage and quantum computing are opening the doors of a new era (Schwab, 2016).

Companies and business leaders will lead the process of adapting societies to this stunning digital revolution. It is certain that business leaders will have a great impact on directing the society. Companies will be the main drivers of an inclusive and sustainable global economic system that targeted through the Great Reset.

References 

Schwab, Klaus (2016): The Fourth Industrial Revolution, World Economic Forum, Cologny/Ceneva.

Schwab, Klaus, Thierry Malleret (2020): COVID-19: The Great Reset, World Economic Forum, Forum Publishing, Geneva.

The Three Dimensions of Nuclear Diplomacy

Dr. Aslı VAROL 

You must be active in nuclear diplomacy, if you do not expect a solution from a promising group on nuclear activities for our planet, as in Amin Maalouf’s latest novel “Nos frères inattendus*”.

Nuclear diplomacy is critical to a sustainable future. The use of nuclear energy has military, political, economic and environmental dimensions. Nuclear energy plays a role in ensuring peace and security in the world, in energy transformation and in increasing the use of clean energy. For this reason, it is a fact that nuclear diplomacy will be needed more in order to manage nuclear relations in the global arena.

Nuclear diplomacy, which has been dealing with nuclear weapons especially since the Second World War, has gained new dimensions today due to the effects of the climate crisis and the necessity of energy transformation. It is possible to talk about three dimensions of nuclear diplomacy: non-proliferation of nuclear weapons and nuclear disarmament, peaceful use of nuclear energy, and emphasizing the importance of nuclear energy in environmental governance to mitigate the effects of the climate crisis.

Non-proliferation of Nuclear Weapons and Nuclear Disarmament

Possession of nuclear weapons provides a strong position in the international arena. Because, nuclear weapons have a deterrent effect. Especially in the post-World War II period, the nuclear arms race gained momentum in the international arena. Various efforts have been made to prevent this arms race.

The Treaty on the Non-Proliferation of Nuclear Weapons (NPT), as a worldwide treaty aimed that non-proliferation, was opened for signature in 1968 and entered into force in 1970. On 11 May 1995 the Treaty was extended indefinitely. The purpose of the NPT is to prevent the proliferation of nuclear weapons and weapons technology, to promote cooperation in the peaceful uses of nuclear energy, and to advance the goal of nuclear disarmament. A total of 191 States participated in the NPT, including five nuclear-armed States. This treaty forbids all signatories to possess or acquire nuclear weapons, with the exception of the United Kingdom, China, France, Russia, and the United States.

The NPT defines “a nuclear-weapon State is one which has manufactured and exploded a nuclear weapon or other nuclear explosive device prior to 1 January 1967” (United Nations, 1968). These states are China, France, Russia, the United Kingdom, and the United States. All other states are non-nuclear-weapon states under the Treaty. NPT basically stands on three main pillars. These are nonproliferation, the peaceful use of nuclear energy, and disarmament.

The Treaty on the Prohibition of Nuclear Weapons (TPNW) was accepted at the 193-member UN General Assembly on 7 July 2017 with the approval of 122 countries and opened for signature on 20 September 2020 (United Nations, 2017). Despite the opposition of nuclear power countries such as the USA, Russia and China, this treaty, which was opened for signature, aims to destroy nuclear weapons all over the world and to ban new ones. The Treaty on the Prohibition of Nuclear Weapons, the first international treaty to ban nuclear weapons, required 50 countries’ commitments not to develop, test, manufacture, acquire or stockpile nuclear weapons under any circumstances. Honduras became the 50th country to sign the treaty on 24 October 2020. 90 days after Honduras' ratification, this first international treaty banning nuclear weapons entered into force. The United States, Russia, the United Kingdom, China, France, India, Pakistan, North Korea, and Israel, as the nuclear weapons states, did not sign the treaty. On the other hand, although Japan suffered great damage from nuclear weapons in the war, the Japanese government did not sign this treaty.

 

However, Japan continues to make commitments to global nuclear disarmament and nonproliferation initiatives. It is also seen that the new prime minister of Japan advocated nuclear disarmament. Japan must advance in nuclear diplomacy on two issues: managing its relations with its nuclear-powered neighbors and signing and ratifying the TPNW. More broadly, Japan should balance its diplomatic relations with its nuclear-powered neighbors China, North Korea, South Korea and Russia, and sign and ratify the TPNW.

In this context, Japan should not jeopardize its relations with China due to the recent tensions between China and Taiwan. Japan has also recently shown its willingness to make diplomatic efforts between the US and Iran to return Iran to the nuclear deal. As it is understood, Japan wants to act together with its alliance partner, the USA, for nuclear disarmament and ensuring regional security in the Middle East. In this case, Japan should use nuclear diplomacy in order not to put its relations with Russia, a nuclear power state, into crisis.

In the last decade the nuclear diplomacy activities of the USA, especially with Iran and North Korea, have been placed on the world agenda as non-proliferation of nuclear weapons. As it is known, former US President Trump and North Korean leader Kim Jong-un met for the first time in Singapore in June 2018. At this meeting, an agreement was reached on the denuclearization of the Korean Peninsula and the establishment of lasting peace. The two leaders met once again in Hanoi in February 2019. However, this summit was short-lived and ended without a deal. Then, on June 30, 2019, Trump and Kim Jong-un met in the demilitarized zone between North and South Korea and decided to continue the nuclear negotiation process. Working-level meetings between the United States and North Korea, held in Sweden in October 2019, ended after North Korea claimed that the United States was maintaining its old attitudes and stances. President Biden’s administration, on the other hand, expresses its willingness to resume diplomatic relations with North Korea. However, it is clear that whether Washington will continue with diplomacy for the denuclearization of the Korean Peninsula will be determined by the attitude of the Pyongyang administration.

The Biden administration, at the same time, is taking a positive stance to lift sanctions against Iran, which was initiated during the Trump era, and to revive the Iran nuclear deal. However, in order to ensure this, the USA imposes the precondition of withdrawing Iran’s nuclear activities to the previously agreed level. As it is known, a deal was signed in 2015 between Iran and the USA, China, France, Germany, Russia and the UK on the regulation and supervision of the nuclear activities of the Tehran administration. However, in 2018, US President Trump withdrew from the deal and started to impose sanctions on Iran again.

The US shows that it is ready for dialogue and negotiation with Iran. However, the US still states that if diplomacy fails, other options will be considered. In this process, Israel also states that losing time in the negotiations caused Iran to continue its nuclear program.

At the press conference after the G-20 Summit in Rome, the US President Biden, about their meeting with the leaders of the United Kingdom, Germany and France on Iran's nuclear program, said that “We came together to reiterate our shared belief that diplomacy is the best way to prevent Iran from getting a nuclear weapon and discussed how best to encourage Iran to resume serious good faith negotiations” (Wintour, 2021).

Pakistan continues to be an important stakeholder in nuclear diplomacy. Pakistan maintains its commitment to non-proliferation and practices responsible nuclear diplomacy. Since Pakistan became a nuclear weapon state, Pakistan’s nuclear diplomacy has been practiced on the principles of restraint and responsibility. As it is known, the reason why Pakistan had nuclear weapons was to ensure its own security in response to the threat of its neighbor India. However, Pakistan opted to stay out of the developing nuclear arms race in South Asia.  Pakistan seeks to encourage the international community to develop consensus on nuclear weapons control and disarmament through nuclear diplomacy. At the plenary meeting of the Conference on Disarmament (CD) in Geneva in June 2020, Pakistan expressed its concerns about nuclear disarmament. Pakistan has set an eleven-point roadmap to build a global consensus on non-proliferation. It is also a fact that Pakistan’s nuclear diplomacy and efforts to prevent the proliferation of nuclear weapons are accepted (Bano, 2020).

Peaceful Use of Nuclear Energy

Limiting the use of nuclear energy due to armament concerns is an obstacle for countries that want to invest in nuclear energy. Countries have to consider nuclear energy while creating new energy policies for clean energy transformation. However, while countries create new energy policies for clean energy transformation, they may be exposed to international pressure when they include nuclear energy in their energy mix. To overcome this international pressure, nuclear diplomacy must work to promote the use of nuclear for peaceful and environmental purposes.

Collaboration with the IAEA is required within the framework of the NPT principles to ensure the development of the use of nuclear technology for peaceful purposes. In cases where nuclear energy will not be converted into explosives and will be used for industrial investments, this cooperation should be ensured between states, the private sector and international organizations. However, nuclear explosions are used in large construction and technology projects. These explosions are non-military explosions. Nuclear energy is needed in different sectors. In this context, states and multinational companies should convince the international community that nuclear energy is necessary to develop a country's production and infrastructure when environmental and safety control is ensured.

The Importance of Nuclear Diplomacy in Environmental Governance

Energy targets today and in the future should aim to achieve zero emissions to mitigate the effects of climate change. In order to increase the use of clean energy, renewable energy and nuclear energy should be included in the energy mix instead of coal energy. In this context, energy policies that encourage nuclear energy along with wind and solar energy should be established while exiting coal energy.

Biden administration is decisive to fight climate crisis. The Bipartisan Infrastructure Deal’s more than $65 billion investment, as the largest investment in clean energy transmission and the electric grid in American history, proves this ambition. With this investment, the US aims to upgrade its energy infrastructure to facilitate the expansion of renewable energy. The US is investing in demonstration projects and research centers for next-generation technologies such as advanced nuclear reactors, carbon capture and clean hydrogen (The White House, 2021).

After the earthquake in Japan in 2011 and the nuclear disaster at the Fukushima nuclear power plant due to the tsunami that occurred after the earthquake, the sensitivity regarding the safety of nuclear power plants became evident in diplomatic relations. Countries have started to monitor each other's nuclear activities more closely. On the other hand, environmental organizations are concerned about nuclear waste. However, experts state that the storage of spent nuclear fuels in water pools has been practiced safely for a long time in every country. As it is known, the waste nuclear fuel pool in the nuclear facility, which was damaged in Japan due to the earthquake and tsunami, had approached the boiling point and the radiation hazard had created fear.

Dialogue between states and non-state actors needs to be strengthened in discussions on the environmental and human health effects of nuclear energy. The high cost of nuclear energy is another matter of discussion. In the fight against the climate crisis, the share allocated to nuclear energy is requested to be transferred to renewable energy. Against this, The World Nuclear Association and IAEA emphasize that nuclear energy has an important role in the fight against the climate crisis.

The World Nuclear Association states that the panel under COP26 emphasized “Nuclear a vital tool in achieving decarbonisation”. Nuclear power is the world’s second largest source of low-carbon electricity today and is an established and reliable technology for many countries (World Nuclear Association). According to the IAEA special report “Nuclear Energy for a Net Zero World”, “Nuclear energy is key to achieving global net zero objectives, working in partnership with renewable energy sources and other low carbon options, as part of a sustainable energy system to decarbonize electricity and non-electric energy production. Many nations opt for nuclear energy to meet their climate objectives, and uptake by countries is increasing” (IAEA, 2021).

In the energy transformation necessary to combat the climate crisis, carbon-free nuclear energy is positioned alongside wind and solar energy. On the other hand, the transition to nuclear energy is also criticized negatively due to the high investment cost and the risks associated with nuclear facilities. Nuclear diplomacy needs to be carried out in a multi-stakeholder manner in the global arena in order to turn negative opinions into positive aspects in this dimension. The interests and concerns of all stakeholders should be taken into account in creating the most correct energy mix for the future of our planet.

 

* Amin Maalouf, “Empedokles’in Dostları (Nos frères inattendus)”, Translation: Ali Berktay, First Edition, Yapı Kredi, Istanbul, 2021.

                                                                                                       

 

References

Akimoto, Daisuke (2020): “What is the Future of Japan’s Nuclear Diplomacy?”, The Diplomat, March 31, 2020, https://thediplomat.com/2020/03/what-is-the-future-of-japans-nuclear-diplomacy/.

Bano, Sher (2020): “Pakistan’s Nuclear Diplomacy: Commitment Towards Non-Proliferation”, Modern Diplomacy, September 14, 2020, https://moderndiplomacy.eu/2020/09/14/pakistans-nuclear-diplomacy-commitment-towards-non-proliferation/.

 

IAEA (International Atomic Energy Agency) (2021): “Nuclear Energy for a Net Zero World”, Vienna, September, 2021, https://www.iaea.org/sites/default/files/21/10/nuclear-energy-for-a-net-zero-world.pdf.

The White House (2021): “Fact Sheet: The Bipartisan Infrastructure Deal Boosts Clean Energy Jobs, Strengthens Resilience, and Advances Environmental Justice”, November 08, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/08/fact-sheet-the-bipartisan-infrastructure-deal-boosts-clean-energy-jobs-strengthens-resilience-and-advances-environmental-justice/.   

United Nations (1968): “Treaty on the Non-Proliferation of Nuclear Weapons (NPT)”, https://www.un.org/disarmament/wmd/nuclear/npt/text/.  

United Nations (2017): “Treaty on the Prohibition of Nuclear Weapons”, United Nations General Assembly, A/CONF.229/2017/8, https://undocs.org/A/CONF.229/2017/8.

Wintour, Patrick (2021): “US would only quit Iran nuclear deal if Tehran were to renege, Biden pledges”, The Guardian, 31 Oct 2021, https://www.theguardian.com/world/2021/oct/31/us-iran-nuclear-deal-tehran-joe-biden-pledge.

World Nuclear Association (2021): “Nuclear a vital tool in achieving decarbonisation, panel says”, 05 November 2021, https://world-nuclear.org/wnn-climate-change-news/wnn-nuclear-a-vital-tool-in-achieving-decarbonisat.aspx.

 

Strengthening Climate Diplomacy to Prevent Climate Migration

Dr. Aslı VAROL

In order to build the future, it is necessary to prevent the devastating effects of climate change on a global scale. In other words, if we want to have a future, we must fight climate change. Unless people change their way of life and industries change their way of production, it is very difficult to achieve the goal of “a better future”. Climate change cannot be reduced to just an increase in temperature values. Climate change affects all ecosystems on the planet as a whole. Increase in temperatures causes that decrease in water resources, environmental degradation, desertification, droughts, water scarcity, wildfires, rising sea levels, flooding & declining biodiversity.

According to the “United Nations Framework Convention on Climate Change” (UNFCCC), climate change is “a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods” (United Nations, 1992). As it is understood, human activities cause climate crisis. 

Climate Migration

Climate change should not be considered only as an environmental problem. With its devastating effects, the climate crisis is directly related to the future of the planet.

According to the Germanwatch Global Climate Risk Index 2021, the most affected countries in 2019 were Mozambique, Zimbabwe and the Bahamas, followed by Japan, Malawi and the Islamic Republic of Afghanistan (Eckstein, Künzel, Schäfer, 2021). The World Bank’s “Groundswell Part II: Acting on Internal Climate Migration Report” reveals that over 216 million people could move within their countries by 2050 across six regions (Clement et. al, 2021).

Climate migration is increasing worldwide. It ranges from Pacific Islanders moving inland to immigrants in African countries whose livelihoods have been destroyed by desertification and land degradation. Immigration, which can be seen at the southern border of the United States or in the Mediterranean, has quickly become a pressing issue for foreign policy makers who are often unprepared in the wake of migration crises (Chazalnoël and Ionesco, 2020).

Global Cooperation and Building Coalitions 

Today, migration due to climate change emerges as a foreign policy issue. Because, not only those living in underdeveloped countries but also those living in developed countries face the problem of displacement due to climate change. The displacement of people due to climate change will lead to the continuation of the global terrorist threat and to an increase in human trafficking.

The Groundswell Report, which presents scenarios and analyzes for three regions, East Asia and the Pacific, North Africa, Eastern Europe and Central Asia, offers four policy recommendations that could reduce by 80 percent the number of people who will have to migrate due to climate change (Clement  et. al, 2021): 

o   “Cut global greenhouse gases now to reduce the climate pressures that drive internal climate migration. 

o   Embed internal climate migration in far-sighted green, resilient, and inclusive development planning.

o  Plan for each phase of migration, so that internal climate migration as an adaptation strategy can result in positive development outcomes. 

o   Continue to invest in improving understanding of internal climate migration to inform well-targeted policies.” 

In this sense, governments and companies should consider all management and business processes within the framework of the Paris Agreement and the United Nations Sustainable Development Goals. First of all, it should be aimed to reduce the emission rates in the industrial area. In addition, a mindset should be created on the transition to a low-carbon economy.

Environmental, social and economic recovery will be achieved when states, companies, international organizations, non-governmental organizations and societies demonstrate their determination to tackle the climate crisis together. And also tackling the climate crisis offers several opportunities. Transition to a low-carbon global economy, achieving sustainable development goals and innovation will be important gains in the fight against climate change.

Pacific States’ Climate Diplomacy

Pacific states are a remarkable example of climate diplomacy. All Pacific states have put vulnerability to climate change high on their agenda (Goulding, 2015: 202). In the Pacific states, political groupings and interstate coalitions that reflect the state’s climate policy or are bargaining tools play a role in climate diplomacy. Leaders of Pacific states have attached importance to Pacific coalitions and political groupings in order to make the Pacific voice more heard on climate change at the global level (Carter: 2015: 206).

Pacific Island States have an innovative approach to climate diplomacy. Coalitions in the Pacific prefer to reach citizens directly rather than lobbying in climate diplomacy. They also benefited from public diplomacy and e-diplomacy applications to reach a global audience. At the same time, professional negotiation and public relations firms have been worked with for the training of coalition members in the Pacific region. Public relations firms ensured that the key messages of the coalitions are communicated in a timely and effective manner in traditional and social media. However, since 2009 a group of independent former diplomats, international lawyers and international relations experts has also been working with these blocs in the Pacific to provide diplomatic support, advice and technical assistance on the 'legal form' for the climate regime (Carter, 2015: 216-217).

Climate change doesn’t just mean temperature rises. Global warming causes many negative consequences globally. Climate change brings adverse effects such as drought, melting of glaciers, rising sea levels, floods, forest fires, and reduction of biodiversity. On the other hand, climate change also causes negative consequences such as migration of people affected by climate change, economic deterioration, and prevention of access to education and health services. These are the effects of climate change on economic, social and political fields.

Discussion and Conclusion 

The necessity of multilateralism in the fight against the climate crisis is clearly seen. Because climate change is a global problem that transcends borders and threatens our planet. National and international measures should be taken to prevent climate migration. Governments, companies, non-governmental organizations, universities and various initiatives from around the world must work together and fulfill their responsibilities as stakeholders on the planet. For this, global cooperation and coalitions led by states should be established. Climate diplomacy should be conducted through these formations. It should be admitted that local communities, especially those who had to migrate from their settlements, have a lot to say. Global pressure must be exerted on public and private sector organizations that are causing the climate and environmental crisis through interstate coalitions.

  

References

 

Carter, George (2015): “Establishing a Pacific Voice in the Climate Change Negotiations”, The New Pacific Diplomacy, ed. by Greg Fry & Sandra Tarte, Pacific Series, Australian National University Press, Australia, 205-220.

 

Chazalnoël, Mariam Traore, Dina Ionesco (2020): “A Climate Crisis and a World on the Move: Implications for Migration Management,” September 30, 2020, https://diplomacy21-adelphi.wilsoncenter.org/article/climate-crisis-and-world-move-implications-migration-management.

 

Clement, Viviane, Kanta Kumari Rigaud, Alex de Sherbinin, Bryan Jones, Susana Adamo, Jacob Schewe, Nian Sadiq, Elham Shabahat (2021): Groundswell Part 2: Acting on Internal Climate Migration, The World Bank, Washington, DC.

 

Eckstein, David, Vera Künzel, Laura Schäfer (2021): “Global Climate Risk Index 2021: Who Suffers Most from Extreme Weather Events? Weather-Related Loss Events in 2019 and 2000-2019”, Briefing Paper, Jabuary 2021, Germanwatch, Germany.

 

Goulding, Nicollette (2015): “Marshalling a Pacific Response to Climate Change”, The New Pacific Diplomacy, ed. by Greg Fry & Sandra Tarte, Pacific Series, Australian National University Press, Australia, 191-204.

 

United Nations (1992): “United Nations Framework Convention on Climate Change (UNFCCC)”, https://unfccc.int/resource/docs/convkp/conveng.pdf.

 

 

 

Nachhaltigkeitskommunikation

Dr. Aslı VAROL

Nachhaltigkeitskommunikation hat eine viel breitere Perspektive als Unternehmenskommunikation. Nachhaltigkeitskommunikation basiert auf der Einhaltung nachhaltiger Entwicklungsziele für eine bessere Zukunft. Daher, Unternehmen müssen Wert für alle ihre Stakeholder schaffen und ihre Verantwortung gegenüber allen ihren Stakeholdern erfüllen. Mit anderen Worten, Investitionen in die Beziehungen zu Interessengruppen als neue Anlageform sollten als Investitionen in Nachhaltigkeit definiert werden. Unter der Voraussetzung, dass die Entwicklung des Verständnisses von Nachhaltigkeit, die Schaffung von Werten für alle Stakeholder, das Wohlergehen sowohl für die Wirtschaft als auch für die Gesellschaft erhöht.

„Das Richtige zu tun“ 

Viele Unternehmen streben nach einem Geschäftsansatz, der nicht nur die Einhaltung von Gesetzen und Vorschriften sicherstellt, sondern auch die Verpflichtung hat, „das Richtige zu tun“ (UN Global Compact & Linklaters LLP, 2019). Nachhaltigkeitskommunikation sollte zeigen, dass Unternehmen das Richtige tun. Unternehmen bringen durch Nachhaltigkeitskommunikation zum Ausdruck, dass sie ihrer Verantwortung gegenüber ihren Stakeholdern nachkommen. In diesem Zusammenhang ist es wichtig, die Stakeholder in den Entscheidungsprozess einzubeziehen. Nachhaltigkeitskommunikation ermöglicht es Unternehmen, ihre unternehmerischen Nachhaltigkeitsagenden gegenüber den Stakeholdern auszudrücken. Die Nachhaltigkeitskommunikation informiert die Stakeholder über die Nachhaltigkeitsaktivitäten der Organisationen.

Die Bedeutung der Nachhaltigkeitskommunikation für die Erreichung des Stakeholder-Kapitalismus

Nachhaltigkeitskommunikation sollte eine aktive Rolle bei der Verwirklichung des Stakeholder-Kapitalismus spielen. Denn Nachhaltigkeitskommunikation zielt darauf ab, sich mit allen Stakeholdern in Bezug auf unternehmerische Verpflichtungen zu engagieren.

Nachhaltigkeitskommunikation stellt die Interaktion der Organisation mit ihren Stakeholdern sicher (Bhatia, 2020). Denn Nachhaltigkeitskommunikation ist die Kommunikationsarbeit des Engagements von Organisationen im Bereich Nachhaltigkeit. Die Nachhaltigkeitskommunikation zeigt ihren Stakeholdern, wie weit Unternehmen bei der Erreichung ihrer Ziele für eine nachhaltige Entwicklung fortgeschritten sind.

Die Nachhaltigkeitsberichterstattung ist einer der Kernbestandteile der Nachhaltigkeitskommunikation. Organisationen geben ihre Nachhaltigkeitsaktivitäten durch Corporate Social Reports bekannt. Darüber hinaus zeigen Nachhaltigkeitsberichte auch die Fortschritte von Organisationen bei der Erreichung ihrer Nachhaltigkeitsziele. Nachhaltigkeitskommunikation ermöglicht es, den Stakeholdern die Bemühungen von Organisationen für den Planeten und die Menschen zu erklären, insbesondere in Zeiten der Unsicherheit und Krise. Nachhaltigkeitskommunikation zeigt den Zweck von Unternehmen im Bereich Nachhaltigkeit auf und stellt fest, dass Unternehmen Wert für ihre Stakeholder schaffen wollen.

  

Literaturverzeichnis

Bhatia, Mack (2020): “The Importance of Communication in Sustainability & Sustainable Strategies”, Feb 17, 2020, https://www.thesustainability.io/importance-of-sustainability-communication-and-sustainability-strategies.

UN Global Compact & Linklaters LLP (2019): “Guide For General Counsel On Corporate Sustainability Version 2.0”, Linklaters LLP, UC Berkeley School of Law, UN Global Compact,  September 2019.

 

The Role of Stakeholder Capitalism in Corporate Foreign Policy

Dr. Aslı VAROL

On the 50th anniversary of the World Economic Forum (WEF), a new manifesto on stakeholder capitalism was put forward by WEF founder Klaus Schwab. The basis of the 2020 Davos Manifesto is the original Davos Manifesto of 1973. According to the Davos Manifesto of 1973, businesses should serve the interests of whole society, not just their shareholders. This means “stakeholder capitalism”. Unlike 1973, the 2020 Davos Manifesto provides vision for current issues such as fair taxation, zero tolerance for corruption, executive pay and respect for human rights in the broader context of stakeholder capitalism. At its 2020 Annual Meeting in Davos on January 21-24, the World Economic Forum proposed renewing the concept of stakeholder capitalism to tackle income inequality, social division and the climate crisis (World Economic Forum, 2020).

 

“Statement on the Purpose of a Corporation”, announced by the Business Roundtable in August 2019, is another important statement on stakeholder capitalism. In this text, Business Roundtable emphasizes that: “Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.” (Business Roundtable, 2019).

 

Recently, Schwab and Vanham have described the stakeholder capitalism in “Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet”. According to the authors stakeholder capitalism is “a form of capitalism in which companies do not only optimize short-term profits for shareholders, but seek long term value creation, by taking into account the needs of all their stakeholders, and society at large” (Schwab and Vanham, 2021).

Foreign affairs carries out communication activities that will improve the corporate relations with states, societies, national and international non-governmental organizations, other organizations in the sector, global initiatives and various institutions (Varol, 2020). In this context, foreign affairs should take into account stakeholder capitalism while establishing corporate foreign policy in order to establish long-term relationships with stakeholders. Considering the interests, needs, priorities and relationships of international stakeholders is essential to formulating an appropriate corporate foreign policy.

There are four key stakeholders to ensure that both people and the planet prosper. These stakeholders are governments (countries, states, and local communities), civil society (unions, NGOs, schools, universities, action groups etc.), companies (private sector), and the international community (international organizations such as the UN and regional organizations such as the European Union or ASEAN) (Schwab and Vanham, 2021).

Businesses should consider the impact of their activities and decisions on stakeholders (Varol, 2019). In this context, the purpose of a company is serving the interests of all its stakeholders, including consumers, employees, suppliers, communities, shareholders. In the globalized world, businesses must interact with all their stakeholders. For this reason, businesses should create corporate foreign policies that aim to develop long-term relationships with stakeholders in the global area.

Global Corporate Citizenship and Corporate Foreign Policy

Multinational companies serve all their stakeholders. However, they also act for our global future together with governments and civil society as a stakeholder. Because in the context of global corporate citizenship, companies must work together with other companies and stakeholders to improve the state of our planet (Schwab, 2019).

 

Companies, operating in the international arena or want to expand their investments and business operations towards the international arena, should establish a corporate foreign policy. It should be accepted that an effective foreign policy will provide political, economic, social and cultural gains to companies in the global area. Because corporate foreign policy will determine the scope and direction of corporate diplomacy activities. For this reason, companies should develop a sustainable corporate foreign policy consistent with their business objectives (Varol, 2020).

Stakeholder Capitalism and Interdependence

As Schwab and Vanham stated that today’s stakeholder model is global. Because economies and societies are more closely interconnected than 50 years ago, and the interests of the system are global. The two main stakeholders of the stakeholder model, planet and human, are also fundamentally global. But first of all, the health of the planet must be protected. Because the health of the planet depends on the sum total of decisions made by actors around the world. We need to protect our planet for future generations. Therefore, every stakeholder must take responsibility. The planet is the central stakeholder of the global economic system and its health must be optimized with decisions made by all other stakeholders (Schwab and Vanham, 2021: 176). 

We are in a period that the necessity of stakeholder capitalism is emerging. Stakeholder capitalism is not just for the shareholders of a company; expresses the goal of creating value for all stakeholders. Interdependence is important in stakeholder capitalism. The well-being of one stakeholder depends on the well-being of the other stakeholder. In this framework, all stakeholders must fulfill their responsibilities for the common good. Perhaps the biggest effect of globalization is that it increases interdependence. In order to be prepared for risks and crises, all stakeholders should work for each other’s well-being.

COVID-19 has once again reminded of global interdependence. Schwab and Vanham express that unless everyone is well on the planet, no one will be safe and well. With the widespread spread of Internet technology, people around the world are becoming aware of the plight of people elsewhere. In this case, the importance of global equality is also emphasized (Schwab and Vanham, 2021).

Increasing interdependence brings with it the need for transparency. Because companies must always be transparent in order to receive support from their stakeholders in new crisis and post-crisis uncertainty.

Interdependence requires considering other actors in corporate foreign policy. It is clear that policies aimed only the interests of the organization will not bring long-term success and profit. For this reason, companies need to create a consistent and sustainable corporate foreign policy by considering both their shareholders and all other stakeholders. Businesses must reveal their global corporate citizenship identities in the most accurate way for the health and well-being of the planet.

Conclusion

Companies must create value for all their stakeholders, and this is the core of stakeholder capitalism. Therefore, companies must develop new strategies to achieve stakeholder capitalism. With another words, a new strategic approach is required to achieve stakeholder capitalism. Recently, WEF, Business Roundtable, Bank of America have emphasized the need to rethink stakeholder capitalism. In addition, creating value for all stakeholders in times of crisis and uncertainty is an important way to achieve company sustainability.

Today, it is clearly spoken that being only profit-oriented will not bring more long-term business success. Therefore, a business approach that takes into account the needs and expectations of all stakeholders is required. This necessary business approach is “stakeholder capitalism”. Today, the business world has had to face various global issues such as the climate crisis, financial crises, the COVID-19 pandemic, increasing economic inequality, migration and the threat of terrorism. Therefore, considering stakeholder capitalism in corporate foreign policy is not a choice for companies, it is actually a necessity.

 

References

 

Business Roundtable (2019): “Statement on the Purpose of a Corporation”, August 19, 2019, https://opportunity.businessroundtable.org/ourcommitment/.

Schwab, Klaus, (2019): “Davos Manifesto 2020: The Universal Purpose of a Company in the Fourth Industrial Revolution”, 02 Dec 2019, https://www.weforum.org/agenda/2019/12/davos-manifesto-2020-the-universal-purpose-of-a-company-in-the-fourth-industrial-revolution.

  

Schwab, Klaus, Peter Vanham, (2021): Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet, World Economic Forum, Wiley, New Jersey.

Varol, Aslı (2019): Tüm Boyutlarıyla Kurumsal Sosyal Sorumluluk, Cinius, Istanbul.

Varol, Aslı (2020): Kurumsal Diplomasi, Cinius, Istanbul.

World Economic Forum (2020): “Stakeholder Capitalism: A Manifesto for a Cohesive and Sustainable World”, 14 Jan 2020, https://www.weforum.org/press/2020/01/stakeholder-capitalism-a-manifesto-for-a-cohesive-and-sustainable-world/.