All about CSR for coaches


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Workshop presentation - Opening Meeting (Speaker: Olivier Delbard)

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All about CSR for coaches

  1. 1. CITIZEN ACT Opening MeetingWorkshop coach: The CSR challenge Wednesday, February 2nd 2011 Olivier Delbard Associate Professor ESCP Europe
  2. 2. 1. The origins of CSR (1/3)1.1 The U.S. Conception of the social responsibility of businesses – The Protestant Ethic – The rise of the corporation and its rights and duties in society • The need for an « economics of responsibility, developed and embodied in our business ethics » (Clark, 1916) • Philanthropy as a « natural » practice – The notion of « interested groups »èstakeholders today • Frank Abrams, Standard Oil’s Board Chairman, in 1951: « the role of management is to maintain an equitable and working balance among the claims of the various directly interested groups... stockholders, employees, customers and the public at large – The modern corporation as a driver for societal improvement, distinct from legislation
  3. 3. 1. The origins of CSR (2/3)1.2 The concept of sustainable development and the gradual involvement of businesses around the world The landmark definition (1987)• "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs."• (Brundtland report, « Our common Future »)  A new conception of Time (Long term and short term) and Space (local and global)  The need for a new development model
  4. 4. 1. The origins of CSR (3/3)First, a response to mounting environmental challenges: – Overintensive use of natural resources (water, forests, land, fossil fuels) • The ecological footprint • The exhaustion of non renewable resources • The risk of irreversibility ⇒ Negative impacts: • Pollution (air, water, soil, etc.) & waste • Biodiversity • Environmental risks & Health hazards•The climate change challengeThen, in the wake of globalization, the emergence of major global social andsocietal issues: – The widening gap between the poorest and richest • The poverty challenge – Demographics and migratory flows – Work conditions and human rights – Local development – Corruption, bribery and lobbying The emergence of sustainability issues for businesses: how can companiescontribute to meeting the global and local sustainable development challenges?CSR AS BOTH SUSTAINABILITY AND THE ANGLO-SAXON PHILANTHROPY-BASEDAPPROACH
  5. 5. 2. CSR and sustainability today1) 3 levels of corporate responses• Level 1: Philanthropy – The U.S. approach: the societal commitment of firms• Level 2: Search for compliance – A « reactive » attitude, triggered by legal and/or other external pressures • 2.a: Legal and regulatory constraints • 2.b: External pressures (customers, sector, etc.)• Level 3: Proactive strategy – CSR as a tool of corporate strategy, embedded in the activites of the firm • The Business case: Turning constraints into business opportunities – CSR and competitive advantage (Michael Porter) • The European approach to CSR
  6. 6. From community involvement to strategic CSR
  7. 7. CSR as both a global and local concept – Global: the emergence of an international framework of soft law • The U.N. Global Compact • The OECD Guidelines • The GRI sustainability reporting guidelines • The ISO 26000 standard – Local: • The local political, cultural & regulatory environment
  8. 8. The E.U. Definition of CSR•A concept whereby companies integrate social and environmental concernsin their business operations and in their interaction with their stakeholders ona voluntary basis.  (Commission Green Paper 2001 “Promoting a EuropeanFramework for Corporate Social Responsibility”, COM(2001)366 Final)•CSR covers social and environmental issues, in spite of the English termcorporate social responsibility;•CSR is not or should not be separate from business strategy and operations:it is about integrating social and environmental concerns into businessstrategy and operations;•CSR is a voluntary concept;•an important aspect of CSR is how enterprises interact with their internaland external stakeholders (employees, customers, NGOs, public authorities, etc.)
  9. 9. 2 interconnected principles 1) The triple bottom line • CSR as performance: how to measure it? Indicators, reporting? How to improve non financial performance? How to aggregate it to financial performance? 2) The stakeholder approach • Implications on governance • New stakeholders, new relations: example of civil society (NGOs, local populations) and suppliers Four main types of corporate motivations for CSR (Porter and Kramer, 2006) • The moral appeal • Sustainability • The license to operate • Risks and reputation
  10. 10. 3. The scope of CSR•Environmental issues – How to deal with externalities? • Inputs and outputs/ Impacts The sustainability vision: reducing the negative impacts supply chain, product/service life cycle•(Internal) social issues – Human resources policies • Diversity management, motivation, employability… – HSE (health, security, environment)•Societal issues – The « license to operate » – Local development & territorial impact – Ethics and politics • Transparency, corruption, lobbying, etc.
  11. 11. 4. CSR and the banking industry•A few specificities – On the environmental side: direct vs indirect impacts – The importance of compliance: how to link it to CSR – Ethics and CSR: the aftermath of the financial crisis – The human capital factor: HRM and CSR•For a multinational banking group – Global CSR strategy vs local realities • Convergence and diversity!
  12. 12. 5. To conclude•CSR and sustainability as: – Innovation drivers – New responsibilities for a company (in this case, a global banking group) – Imagining the future (from the perspective of the younger generations) – Enhancing the meaning of work and life in society•A few bibliographical references: – Porter M.E. & Kramer M.R.: « CSR Strategy and Society », Harvard Business Review, 84(12), 2006. – Zadek S., The Civil Corporation, London, Earthscan, 2001. – The Oxford Handbook of Corporate Social Responsibility, Crane A. et al, Oxford University Press, 2008. – Visser, W. & Tolhurst N., The World guide to CSR : A country
  13. 13. Thank you!