Social media can be used effectively by organizations to fulfill their social contract with stakeholders and promote sustainability. When sustainability is an objective, social media acts as an excellent mechanism to communicate this to extended stakeholders who expect socially and environmentally responsible behavior. Companies can use social media for transparency, communication, and co-creation around sustainability goals and initiatives. This engagement improves the social contract and allows organizations to participate in the greater good while also earning business benefits at low cost to the environment.

1. Insights
Fulfilling the Social Contract through Social Media
- Simon Towers, Ananthalakshmi V. V.
In their enthusiasm to be part of the Facebook universe, most organizations are mistaking the means of social media for
the end itself. However, even a very quick analysis tells that social media success isn’t a happy accident arising from a
Twitter following, but rather, the outcome of a well-planned strategy designed to fulfill a business objective. When that
objective is sustainability, social media acts as an excellent mechanism of delivery of the “social contract”, that unwritten
agreement by which organizations are bound to their extended stakeholders carrying implicit expectations of socio-
ecologically correct corporate behavior. Indeed, when organizations use social media to fulfill this obligation, they come
full circle, because this is where it all starts; this is the playground of customers, advocacy groups and larger communities
spreading environmental awareness, promoting sustainable practices and pressuring businesses to own up to their social
responsibilities. In other words, honor their social contract.
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2. The full impact of sustainable initiatives can only be realized through wider
and spread-out participation. Therefore, organizations must not stop at
becoming more sustainable, but instead, spread awareness of their goals
among customers, partners and other stakeholders. Social media is the perfect
vehicle for communicating with and educating the community and even other
companies on how they can contribute to saving the environment by acting
There are many ways in which
and consuming more responsibly. Chevron is doing precisely this – besides
organizations can use social media
showcasing its socially responsible side – by vocalizing its strong support for
to promote sustainability, ethical
community initiatives on its website.
business practices, environmental
consciousness and socially Conversations on sustainability issues can also evolve into innovation and co-
responsible behavior. Foremost is creation partnerships. Patagonia gets store customers to vote on how the stores
transparency. On social channels, must spend some of their environmental grants budgets. CFS, the financial co-
companies can come face to face operative from the U.K., advises customers on investing ethically. Amsterdam’s
with their stakeholders to engage Schiphol Airport has set up an innovation platform focused on sustainability
in honest, two -way dialog devoid in partnership with some universities and research institutions. And Pepsi has
of corporate speak. Sporting diverted its Super Bowl advertising budget into a portal where it invites people
goods manufacturer Patagonia is to come forward with sustainable project ideas that they’re willing to execute
a shining example of this as it lays (and Pepsi is willing to fund).
bare its processes and policies for
A company’s image is not created within its four walls anymore. Consumer
public inspection.
sentiment travels fast and furiously on social networks, to make or break
reputation in a matter of days. Who can forget that it was opinion mobilized on
social media, which forced Bank of America to retract its draconian debit card
fee? It is critical that organizations monitor social channels to understand how
their actions, including efforts at sustainability, are being perceived by the public,
so that they can take timely remedial measures if necessary.
By facilitating transparency, communication and co-creation in social media,
what companies are actually doing is improving engagement, which is the
core of the social contract. The beauty of social media is that it not only allows
Their website “The Footprint stakeholders to make their expectations known but also to engage in their
Chronicles”, features among fulfillment. To pro sustainability companies, social media offers a way to come
other things, the complete life closer to customers, participate in the greater good, raise their sustainability
cycle of Patagonia products – quotient and also earn business benefits. At low cost, and more importantly, at
from sourcing to processing to no cost to the environment.
transportation to delivery and the
Unfortunately, most organizations haven’t yet made the connection between
impact on the environment – as
their social contract and social media, and are merely caught up in putting
well as its paper procurement and
the latter to some, even any, use. They need to recognize both – social media’s
consumption practices, sustainable
influence over their own sustainability and sustainability agendas and its power
approach to building design, and
to help them meet their social obligations. Even organizations that are social
numerous programs in support of
media savvy on many fronts, such as employee engagement, haven’t consciously
environmental causes.
used their platforms to focus attention on sustainability. It is imperative to
make them see how integral the social media mechanism is to stakeholder
engagement and sustainability strategy en route to fulfillment of the social
contract.
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3. About the Authors
Simon Towers
Associate Vice President and Group Manager- Center of Innovation for Tomorrow’s Enterprise, Infosys Labs
Dr. Simon Towers is the GM/AVP and Head of the Center of Innovation for Tomorrow’s Enterprise, part of
Infosys Labs. He and his family are based in Bangalore.
After completing a DPhil at Oxford University and post-doctoral work at Edinburgh University, Dr. Towers
has spent most of his career in industrial research for companies such as Hewlett-Packard and Adobe
Systems in the UK and California’s bay area. However, driven by a strong desire to see the fruits of his
research make it into products, he has also spent significant parts of his career in product groups for
Hewlett-Packard and Microsoft. Most recently, prior to joining Infosys, he was part of a startup company.
He has a number of patents and numerous conference and journal publications.
In his current role at Infosys, Dr Towers heads the Center of Innovation for Tomorrow’s Enterprise. This
organization is the home for seven research institutes that drive the research behind Infosys’s corporate
initiative of Building Tomorrow’s Enterprise. In addition, the center undertakes research on co-creation as
an approach to innovation and drives Infosys-wide initiatives to enhance the internal culture of innovation.
Ananthalakshmi V. V.
Principal Technology Architect, Infosys Labs, Infosys Limited
Ananthalakshmi has 14 years of industry experience. She is currently a Research anchor for the ‘Sustainable
Tomorrow’ theme under Building Tomorrow’s Enterprise campaign. Ananthalakshmi also leads the IT
Modernization and Sustainability tracks at Infosys Labs.
She specializes in software architecture and solution design for different industry domains.
Ananthalakshmi will blog on Sustainability, energy management, and Information and Communication
Technology (ICT) for Sustainability.
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4. About Infosys
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© 2012 Infosys Limited, Bangalore, India. Infosys believes the information in this publication is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges
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