Corporate Citizenship

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Corporate Social Responsibility and Corporate Citizenship

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Corporate Citizenship

  1. 1. PMAP Learning Session on Corporate Social Responsibility (CSR) Profiting from Sustainable Business Practices People Management Association of the Philippines (PMAP) Cagayan de Oro City Chapter A Learning Session on CORPORATE SOCIAL RESPONSIBILITY 30 April 2013
  2. 2. “Perhaps the most beautiful power plant in the Philippines….” CSR: Profiting from Sustainable Business Practices
  3. 3. CSR: Profiting from Sustainable Business Practices Six A’s of Learning  Attitude  Attendance  Active Participation  Adaptation  Application  AHA!
  4. 4. CSR: Profiting from Sustainable Business Practices  We reap what we sow.  It is in giving that we receive.  Do good. Do it well.  Not enough to do good, communicate it.  When better is better than best.  Choose what is right. You will not go wrong. We can handle the truth
  5. 5. Why promote Corporate Social Responsibility (CSR)? CSR: Profiting from Sustainable Business Practices
  6. 6. CSR: Profiting from Sustainable Business Practices  Profit  Value  Progress Development The Purpose of Business
  7. 7. CSR: Profiting from Sustainable Business Practices  Business as a means to achieve human development  Profit is one indicator of sustainability  Business creates solutions  Enhance quality of life  Making the world a much better place. The Business of Development
  8. 8. • Corporate style of Governance? • Social Enterprise? PROFIT: Business Unusual Services must also be profitable.
  9. 9. CSR: Profiting from Sustainable Business Practices Profit with Honor “We believe that CSR encompasses not only what the company does with its profits, but also how it makes them.” - Joy Pamintuan Chief Finance Officer STEAG State Power Inc.
  10. 10. Providing a solution? Creating a problem? Fundamentally Flawed
  11. 11. CSR: Profiting from Sustainable Business Practices Social Development Economic Development Environmental Protection Sustainable Development Interdependent & Mutually Reinforcing Pillars “Meeting the needs of the present without compromising the ability of future generations to meet their own needs.” - UN
  12. 12. CSR: Profiting from Sustainable Business Practices
  13. 13. CSR: Profiting from Sustainable Business Practices
  14. 14.  Why CSR?  From “Is there a role for Business…” to “What is the role of Business in addressing social issues?”  From “How to help Government deal with public problems?” to “Are there market solutions to public problems?” Main Questions
  15. 15. Value Proposition: CSR is good for business. • Corporate Giving • Philanthropy Social Investment • Poverty Reduction • Human Development CSR “The Higher Purpose” makes business sense.
  16. 16. The whole essence of business should be responsibility. Our companies need meaning and purpose, or why should they live at all? —Tachi Kiuchi, former president, Mitsubishi Electronics
  17. 17. What do these critical incidents tell us? • Guimaras Oil Spill • Manila Bay Pollution • Flashfloods • Cherry Hills Tragedy • Industrial Fatalities • Mining Explosions • Chronic diseases of employees and surrounding communities due to emissions and effluents • Sea tragedies • Undocumented cases re dismissal of employees with TB
  18. 18. CSR: Profiting from Sustainable Business Practices • International protocol • Operational efficiency • Environmental requirements of local suppliers/ business partners • Industry codes of conduct • Consumer activism • Community monitoring and protests • International development advocates/ organizations • Requirements of international market Mounting pressures for responsible practices
  19. 19.  Beyond creating shareholder value, companies are expected to solve social problems too!  A changing set of expectations on corporate accountability.  Making a distinctive contribution to society. ELEVATED ROLE OF BUSINESS CSR: Profiting from Sustainable Business Practices
  20. 20. CSR: Profiting from Sustainable Business Practices FORMAL explicit expectations, usually laws–tax, Regulations (SEC) SEMI FORMAL implicit expectations global labor, environment standards industry norms & codes FRONTIER issues that overtime become expectations of business The CHANGING Social Contract
  21. 21. CSR has evolved and redefined our view towards the business CSR: Profiting from Sustainable Business Practices
  22. 22. Broadcast and compress for seamless delivery CSR CONCEPT HAS EVOLVED INTO CC Embedding CSR into the core business practices CSR Social Investment CC Social Investment PLUS Responsible Business Practices Corporate Citizenship
  23. 23. CSR & Corporate Citizenship The Triple Bottom Line Business Goals Social Develoment Environment Protection A business principle that promotes the interests of business alongside the development of the communities, sustainability of the environment and the improvement of the quality of life of the Filipinos. (Philippine Business for Social Progress) CSR: Profiting from Sustainable Business Practices
  24. 24. CSR: Profiting from Sustainable Business Practices Resource TransferGiving and Philanthropy Community Relations Direct involvement in community based projects Business / industry practices Codes of conduct, value chain management SOCIAL INNOVATION STRATEGY (Market Solution to Public Needs and Problems) Forming the Corporate Response
  25. 25. CSR: Profiting from Sustainable Business Practices The Business Case of CSR It is a business approach that creates long term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments. - Dow Jones Sustainability Index
  26. 26. CSR: Profiting from Sustainable Business Practices  Acting with integrity builds trust, trust builds reputation, and reputation builds value  Winning and maintaining the trust of stakeholders is a major competitive advantage  CSR is one of the key areas in which companies build trust The Business Case of CSR
  27. 27. CSR: Profiting from Sustainable Business Practices CSR builds trust and integrity “The most trusted businesses are those that align profit and purpose for social benefit” - Edelman Trust Barometer
  28. 28. CSR: Profiting from Sustainable Business Practices Operating on a base of trust Product and Quality now include social and environmental integrity The Asia Pacific Reputation Pyramid, Edelman
  29. 29. Businesses must adapt to the changing nature of trust CSR: Profiting from Sustainable Business Practices
  30. 30. CSR: Profiting from Sustainable Business Practices Comparison of Shareholder Return Over a Six-Year Period Socially Responsible Organizations Prosper Source: “The 100 Best Companies to Work For,” Fortune. Percentage of Shareholder Return
  31. 31. CSR: Profiting from Sustainable Business Practices  CSR as a function may disappear when its absorbed into all aspects of business and make it a part of every employee’s responsibilities.  CSR programs impact on reputation have increased in both scope and importance.  Primary motivations for CSR are  Reputation (88%)  Competitive Positioning and Social Consciousness (71%) Profits and CSR are closely linked
  32. 32. CSR: Profiting from Sustainable Business Practices  CSR is either very or extremely important to the companies mission (86%)  Media and government feedback are important in assessing CSR programs  Top CSR issues: Environment (96%); Health (68%); Education (59%); Labor (50%); Safety (11%) Profits and CSR are closely linked
  33. 33. CSR: Profiting from Sustainable Business Practices Trust Taxes Paid by Non-CSR Companies Global Respondents… EU North America Latin America Asia Refused to buy their products or use their services. 83% 85% 79% 74% Refused to work for them. 46% 51% 37% 59% Refused to invest in them. 72% 80% 61% 65% Actively demonstrated or protested against them. 24% 14% 42% 23% Source: Edelman Trust Barometer, survey of 2800 college-educated people in 18 countries.
  34. 34. LOGO CSR Makes Good Business Sense Increase retention. Reduce recruitment & training costs Able to attract the best and the brightest, especially amongst graduates Cost savings and income produced through improved employee morale and productivity A Business Case for CSR CSR: Profiting from Sustainable Business Practices
  35. 35. Business Challenges CSR: Creative and Responsible Solutions Unleashing the Human Potential When CSR is embedded in mainstream business strategy it becomes a mechanism for unlocking human potential. CSR: Profiting from Sustainable Business Practices
  36. 36. CSR: Profiting from Sustainable Business Practices Preferred Neighbour  Nice  Good  Responsible Business Case of CSR
  37. 37. CSR: Profiting from Sustainable Business Practices  Perform basic economic function  Minimize the social costs imposed on society  Help solve social problems.  Make social investments to strengthen society’s infrastructure.  Support public policies that are in the public interest Beyond the “social” of CSR
  38. 38. CSR: Profiting from Sustainable Business Practices  CSR builds trust  Improves Reputation  Enhances operational efficiencies and cost savings.  Builds effective and efficient supply chain relationships.  Makes our employees proud.  More robust social license to operate (and lead)  Improved relations with regulators. Bottomline: The CSR ‘Aha’ Effect
  39. 39. CSR: Profiting from Sustainable Business Practices 1.Taking account of social impact 2.Credibility is dependent on delivery, not rhetoric 3.HR is responsible for key systems and processes 4.HR people have relevant knowledge and skills 5.Managing trust and risk raises fundamental issues about how people are managed 6.Employees as key CSR stakeholder HR People as Champions of CSR
  40. 40. CSR: Profiting from Sustainable Business Practices  Employee engagement is not simply the mandate of HR  People leadership rests with all departmental managers  Employee engagement is a shared responsibility  HR can be the key organizational partner to ensure that what the organization is saying publicly aligns with how people are treated within the organization. Integrating CSR in the company’s DNA
  41. 41. CSR: Profiting from Sustainable Business Practices Sustainable Human Resource Management is the contribution HRM can make to sustainable development. CSR – HR = PR
  42. 42. CSR: Profiting from Sustainable Business Practices Employee Engagement Brings CSR to Life They are Committed to CSR They see & feel the benefits They understand the reasons behind CSR They know about CSR July 14, 2013 CSR: Profiting from Sustainable Business Practices
  43. 43. Corporate Responsibility – achieving BUSINESS goals alongside the development of PEOPLE and communities, and the protection of the ENVIRONMENT Helping Build a Brighter Future: Our Commitment to Sustainability Triple Bottom Line Approach
  44. 44. Expressions of Corporate Citizenship A. Care for our Business B. Care for our employees and our communities C. Care for our Environment
  45. 45. Taking Care of the People • People in the Workplace (Our Employees) • People in our communities (Our Neighbors)
  46. 46. Our responsibility framework is built around the philosophy of caring for our people and the community in which we live and work. •Healthy, safe and secured work environment •Fair rewards and incentives system •Promoting work-life balance •Continuing workplace improvement •Employee engagement For our employees
  47. 47. Our Safety and Security Performance Lost Time due to accident Zero (>3m SMH) Occupation related Illnesses and Diseases Zero Accident resulting to injury (minor) 1 (2011) Accident resulting to property damage (minor) 1 (2010) Secure Man-Hours 100% (since Jan 2011)
  48. 48. For Our Host Communities We endeavor to be a good citizen and aspire to be the neighbor of choice
  49. 49. Community Development Programs 1. Social Empowerment through Education (SEEd) Program 2. Livelihood and Economic Enterprise Development (LEED) Program 3. Water, Sanitation and Health (WaSH) Program 4. Enhancing Governance in Local Development (EGoLD) Program 5. Fostering Rural Electrification and Energization (FREE) Program
  50. 50. Social and Environmental Recognition 2010 Best CSR Program (PHIVIDEC Industrial Authority) 2012 Superior Environmental Performance Award DENR Philippine Environmental Partnership Program 2012 Gawad Kaligtasan at Kalusugan (GKK) Award Department of Labor and Employment
  51. 51. Being responsible makes a lot of business sense • More value to the shareholders • Satisfied Customer • More robust social license to operate • Highly motivated, loyal and productive workforce
  52. 52. CSR: Profiting from Sustainable Business Practices Bottom line benefits of incorporating CSR in the corporate DNA 1 CSR is the right thing to do. 2 HR as key player or partner in CSR3 In Conclusion
  53. 53. • Philanthropy • Marketing • Applied to only one part of the business • A substitute for excellent products and services • A substitute for effective framework and execution • A substitute for profitability IN A NUTSHELL: CSR IS NOT
  54. 54. CSR goes beyond the “LOOK GOOD” and “FEEL GOOD” CSR: Profiting from Sustainable Business Practices
  55. 55. “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local communities, and society at large.” ~ World Business Council for Sustainable Development
  56. 56. CSR: Profiting from Sustainable Business Practices
  57. 57. PMAP Learning Session on Corporate Social Responsibility (CSR) Profiting from Sustainable Business Practices People Management Association of the Philippines (PMAP) Cagayan de Oro City Chapter A Learning Session on CORPORATE SOCIAL RESPONSIBILITY 30 April 2013

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