ExtrAgility Governance: AI Powered Corporate Social Responsibility (CSR) aligned with Sustainable Development Goals (SDGs) and International Organization Standards (ISO)
Professor Thomas Hormaza Dow introduced ExtrAgility (defined as a ‘phi’ Φ-Shaped Skill within the context of Business Agility) as a concept that represents a holistic skill set, extending beyond traditional business agility to embrace Corporate Social Responsibility (CSR) and Sustainable Development Goals (SDGs). This approach encourages businesses to integrate sustainability and social responsibility into their core strategies, pushing them to consider not just internal efficiency and interdepartmental collaboration, but also their impact on society and the environment. ExtrAgility is about aligning business operations with broader societal and environmental goals, making companies not just centers of economic activity but also agents of positive change in the world.
ExtrAgility represents a significant departure from traditional business thinking in several key ways:
- Beyond Profit Focus: Traditional business thinking has predominantly centered on profit maximization as the primary objective of any commercial enterprise. This focus prioritizes short-term financial gains often at the expense of social and environmental considerations. In contrast, ExtrAgility integrates Corporate Social Responsibility (CSR) and Sustainable Development Goals (SDGs) into the strategic core of business operations, emphasizing the importance of creating economic value that is also socially responsible and environmentally sustainable.
- Holistic Approach to Stakeholder Engagement: Traditional models often consider stakeholders in terms of their direct impact on business operations and profitability, such as customers, employees, and shareholders. ExtrAgility broadens this perspective to include a wider array of stakeholders, including communities, the environment, and future generations, acknowledging the interconnectedness of business activities with global social and environmental systems.
- Strategic Integration of CSR and SDGs: While traditional business strategies might treat CSR and sustainability as separate or peripheral concerns, often addressed through discrete initiatives or corporate philanthropy, ExtrAgility positions these elements as central to the strategic planning and operational execution. It advocates for a seamless integration of sustainability and social responsibility into every aspect of business decision-making.
- Adaptive and Responsive Business Models: Traditional business thinking tends to favor stability and predictability, often leading to rigid business models and strategies that resist change. ExtrAgility, on the other hand, encourages businesses to be adaptive, responsive, and innovative, not only in reaction to market dynamics but also in anticipation of and response to social and environmental challenges.
- Long-term Orientation: Traditional business models often emphasize short-term results, driven by quarterly earnings reports and immediate market pressures. ExtrAgility promotes a long-term orientation, recognizing that true sustainability and social impact require a commitment to long-term goals and the patience to invest in strategies that may take longer to yield financial returns but ultimately lead to more sustainable and equitable outcomes.
- Systemic Thinking: Traditional business thinking can be characterized by a focus on optimizing individual parts of the organization, often in isolation. ExtrAgility, however, encourages systemic thinking, understanding the business as part of a larger ecosystem. It emphasizes the need for solutions that address the root causes of social and environmental issues, rather than just mitigating symptoms.
Artificial Intelligence (AI) Complementarity with Sustainable Development Goals (SDGs) and International Organization Standards (ISO)
Extragility—a concept that integrates business agility with Corporate Social Responsibility (CSR) and Sustainable Development Goals (SDGs)—emerges as a pivotal strategy for forward-thinking organizations. One of the hallmarks of Extragility is its inherent compatibility and synergy with both the United Nations’ SDGs and the globally recognized ISO standards for operational excellence.
| SDG Number | SDG Title | ISO Standard(s) | AI Complementarity |
| SDG 1 | No Poverty | ISO 20400: Provides guidelines for sustainable procurement. ISO 37001: Specifies requirements to help organizations combat bribery. | AI managed under ISO/IEC 42001 can be used to create economic opportunities and improve resource access, potentially reducing poverty. |
| SDG 2 | Zero Hunger | ISO 20400, ISO 22000, ISO 26000, ISO 34101 Encourages ethical purchasing and sets requirements for food safety management systems, impacting food security and sustainable cocoa production. | AI systems can optimize food production and distribution chains, helping to combat hunger, governed to ensure ethical and sustainable implementation. |
| SDG 3 | Good Health and Well-being | IWA 18, ISO 11137, ISO 37101, ISO 7153 Framework and requirements for health services, sterilization of healthcare products, and materials for surgical instruments. | Promotes the safe and effective use of AI in healthcare to enhance disease prediction, diagnosis, and treatment, ensuring data privacy and security. |
| SDG 4 | Quality Education | ISO 21001, ISO 29993 Management systems for educational organizations and learning services outside formal education. | AI technologies can support personalized learning and accessibility, improving global education outcomes under ethical governance. |
| SDG 5 | Gender Equality | ISO 26000 Provides guidelines on social responsibility, including gender equality. | Ensures AI systems do not perpetuate gender biases and promotes gender equality through inclusive and fair AI practices. |
| SDG 6 | Clean Water and Sanitation | ISO 24518, ISO 24521, ISO 30500 Crisis management of water utilities, management of on-site domestic wastewater services, and non-sewered sanitation systems. | AI can optimize water management and infrastructure projects, governed to ensure these technologies are used responsibly to improve water access and quality. |
| SDG 7 | Affordable and Clean Energy | ISO 17225, ISO 50001, ISO 52000, ISO 9806 Specifications for solid biofuels, energy management systems, energy performance of buildings, and test methods for solar thermal collectors. | AI can enhance energy efficiency and renewable energy management, governed by ISO/IEC 42001 to ensure ethical development and use. |
| SDG 8 | Decent Work and Economic Growth | ISO 37001, ISO 45001 Anti-bribery and occupational health and safety management systems. | AI fosters innovation and competitiveness, supporting sustainable economic growth and employment opportunities under responsible governance. |
| SDG 9 | Industry, Innovation, and Infrastructure | ISO 44001, ISO 50501, ISO 50503, ISO/TR 37152, ISO/TS 37151 Collaborative business relationship and innovation management systems, metrics for smart community infrastructures. | Promotes responsible AI applications in industrial innovation and infrastructure, ensuring sustainable and resilient infrastructures with advanced AI technologies. |
| SDG 10 | Reduced Inequalities | ISO 26000 Provides guidance on social responsibility, promoting non-discrimination and equal opportunity. | Ensures AI accessibility and does not exacerbate inequalities, contributing to reduced inequalities within and among countries. |
| SDG 11 | Sustainable Cities and Communities | ISO 37101, ISO 37120, ISO 37122, ISO 37123 Sustainable development management systems for communities, indicators for city services and smart cities. | AI helps develop smart cities and sustainable communities, with governance frameworks ensuring these technologies enhance urban life without compromising ethical standards. |
| SDG 12 | Responsible Consumption and Production | ISO 14020, ISO 15392, ISO 20245, ISO 20400 Environmental labels and declarations, sustainability principles in building construction, cross-border trade of second-hand goods, sustainable procurement. | AI optimizes production lines and supply chains for efficiency and sustainability, governed to ensure responsible deployment. |
| SDG 13 | Climate Action | ISO 14000, ISO 14001, ISO 14064, ISO 14080, ISO Guide 84, ISO/TS 14067 Environmental management systems, greenhouse gas emissions quantification and verification, guidelines for combating climate change. | AI is critical in modeling climate change impacts and optimizing mitigation and adaptation strategies, governed to ensure responsible use. |
| SDG 14 | Life Below Water | ISO/TC 8 standards, ISO/TC 234 standards Standards for ship and marine technology, fisheries and aquaculture. | AI technologies monitor and protect ocean health, governed by frameworks ensuring sustainable and ethical use. |
| SDG 15 | Life on Land | ISO 14055, ISO 38200 Provides guidelines to combat land degradation and desertification. Ensures traceability in the wood supply chain, promoting sustainable forest management. | AI assists in monitoring biodiversity and managing natural resources, ensuring the ethical use of AI in these critical areas. |
| SDG 16 | Peace, Justice, and Strong Institutions | ISO 19600, ISO 37000, ISO 37001 Compliance management systems, guidance for governance of organizations, anti-bribery management systems to increase transparency and accountability. | AI enhances public services and governance, with ISO/IEC 42001 ensuring transparency, accountability, and ethical use in public administration. |
| SDG 17 | Partnerships for the Goals | New Rights Pilot Programmes Enhances participation of countries in ISO standards development, focusing on sectors like tourism, food products, and conformity assessment. | ISO/IEC 42001 facilitates partnerships by setting a global standard for AI management, promoting collaboration across borders to achieve all SDGs through ethical AI use. |
All Together Now: Unified Organizational Deployment
Deepening Departmental Interdependencies in the Pursuit of Extragility: A Comprehensive Strategy
The successful implementation of Extragility—a concept that synergizes business agility with Corporate Social Responsibility (CSR) and Sustainable Development Goals (SDGs)—is contingent upon a strategic orchestration of departmental functions and expertise. This integrative approach necessitates not merely the alignment of departmental objectives with Extragility principles but also a profound collaboration and interdependency across the organizational spectrum. Here, we delve into the nuanced dynamics of departmental interdependencies, illustrating with comprehensive examples how each department can contribute to and benefit from the holistic adoption of Extragility.
Leadership and Strategy
Integration and Vision Casting: The C-suite and strategic planning departments play a pivotal role in embedding Extragility into the corporate DNA. They must ensure that the mission, vision, and strategic objectives reflect a commitment to CSR and sustainability. This leadership stance sets a precedent for interdepartmental collaboration by establishing clear Extragility goals that inform departmental strategies.
Example: A strategic initiative could involve setting a corporate-wide goal to reduce carbon emissions by 30% over the next five years. Achieving this would require the concerted effort of Operations (to optimize energy use), Supply Chain (to select greener suppliers), and Product Development (to design more energy-efficient products).
Marketing and Sales
Communicating Value and Engaging Customers: Marketing and Sales departments must articulate the value of the organization’s CSR and sustainability initiatives, tailoring messages to resonate with the evolving expectations of consumers who prioritize sustainability. Their strategies should leverage insights from and collaborate closely with Product Development to ensure that sustainability is a key value proposition of the products offered.
Example: Marketing campaigns can showcase the lifecycle analysis of products, highlighting reduced environmental impact, while Sales teams can be trained to articulate these benefits, demonstrating how choosing these products helps customers meet their own sustainability goals.
Operations and Supply Chain
Operational Efficiency and Ethical Sourcing: Operations and Supply Chain are crucial in translating Extragility principles into practice. By collaborating on initiatives such as waste reduction, energy efficiency, and ethical sourcing, these departments can significantly impact the organization’s sustainability footprint.
Example: Operations could implement an energy management system certified by ISO 50001, while Supply Chain works to establish a supplier code of conduct that mandates environmental and social standards. Together, these departments ensure the operational practices support Extragility objectives.
Human Resources
Culture Building and Capability Development: Human Resources (HR) must cultivate a culture that values and practices Extragility, embedding CSR and sustainability into the fabric of corporate life. This includes developing training programs that equip employees with the knowledge and skills to contribute to Extragility goals, as well as implementing hiring practices that prioritize candidates with a proven commitment to sustainability.
Example: HR can launch leadership development programs focused on sustainable business practices, ensuring that future leaders are equipped to navigate the complexities of CSR. Additionally, employee engagement initiatives, such as volunteer days focused on environmental conservation, can reinforce the company’s commitment to sustainability.
Finance and Procurement
Investing in Sustainability and Responsible Purchasing: The Finance and Procurement departments have a critical role in allocating resources in a way that supports the Extragility agenda. This includes investing in sustainable technologies and practices, as well as ensuring that procurement policies prioritize sustainable and ethically produced goods and services.
Example: Finance could allocate a portion of the capital budget to invest in renewable energy sources, while Procurement establishes partnerships with suppliers committed to reducing their environmental impact, thereby ensuring that financial and purchasing decisions contribute to the Extragility goals.
Product Development and Innovation
Sustainable Product Innovation: The Product Development and Innovation teams are at the forefront of creating offerings that align with Extragility principles. Through collaboration with Marketing, Sales, and Operations, these departments can ensure that new products are designed for sustainability, from the selection of materials to the end-of-life recyclability.
Example: Product Development can work on designing products that use recycled materials, are energy efficient, and are easily disassembled for recycling, while also engaging with Operations to ensure that the manufacturing process minimizes waste and energy use.
IT and Data Analytics
Leveraging Technology for Sustainability: IT and Data Analytics departments can provide the technological backbone necessary for monitoring, reporting, and enhancing Extragility initiatives. By implementing systems that track sustainability metrics and leveraging data analytics to identify areas for improvement, these departments enable a data-driven approach to CSR and sustainability.
Example: IT can deploy a cloud-based platform to track real-time energy consumption across global operations, while Data Analytics uses this data to identify inefficiencies and recommend areas for energy-saving improvements.
Conclusion
Departmental interdependencies outlined herein underscores the comprehensive collaboration required to actualize Extragility. Through strategic alignment, shared objectives, and collaborative efforts, organizations can effectively embed CSR and sustainability into every facet of their operations, transforming the ethos of business agility into a powerful engine for societal and environmental stewardship.
References
Hormaza Dow, T. (2022, April). Comparative website structural study and proposal of intragility, interagility and extragility as contextual framework to guide an adaptive business agility path [MBA Project]. Laval University, Faculty of Business Administration (FSA), Quebec, Canada. Through this framework, Dow emphasizes that businesses can and should play a critical role in fostering sustainability and social responsibility alongside their economic objectives.
International Organization for Standardization & International Electrotechnical Commission. (n.d.). ISO/IEC JTC 1/SC 42 – Artificial Intelligence. Retrieved from https://www.iso.org/committee/6794475.html
United Nations. (2015). Transforming our world: the 2030 Agenda for Sustainable Development. Retrieved from https://sdgs.un.org/2030agenda
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