CSR
Upcoming SlideShare
Loading in...5
×
 

CSR

on

  • 1,794 views

CSR

CSR

Statistics

Views

Total Views
1,794
Views on SlideShare
1,791
Embed Views
3

Actions

Likes
0
Downloads
224
Comments
0

1 Embed 3

http://www.slideshare.net 3

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • 9 years ago: General Theme Conference Intensive workshops - 28 hours together In preparation, booklet on CSR and Business Success. Special revised edition prepared for this meeting.

CSR CSR Presentation Transcript

  • AN INTRODUCTION TO CORPORATE RESPONSIBILITY AIESEC EuroXPro 2006 Prague 21 March 2006 George Starcher, President, European Baha’i Business Forum
  • PURPOSE of this session : . . . to further your understanding of corporate responsibility (CR) and to apply some of the basic concepts
  • STRUCTURE OF THIS PRESENTATION • 1. What is Corporate Responsibility (CR)? • 2. The “shareholder” vs “stakeholder” concepts • 3. How do companies put this concept into practice? • 4. What motivates companies to engage in CR? • 5. The business case for CR. • 6. SMEs are different. • 7. Applying the concepts: What can I, We (NCs), They (AI)… do to deepen our understanding of CR?
  • 1. WHAT IS CORPORATE RESPONSIBILITY? • Definition 1: European Commission • “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”
  • 1. WHAT IS CORPORATE RESPONSIBILITY? • Definition 1: European Commission • “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” • Definition 2: World Business Council for Sustainable Development • “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 community and society at large.”
  • Definition 3: AIESEC business taking an active role in addressing Ò economic, social, and environmental issues at both global and local community levels.Ó
  • CR is often used interchangeably:  Corporate Social Responsibility  Business Ethics  Sustainability  Sustainable Development  Triple Bottom Line  Business in Society Stakeholder management 
  • 2. STAKEHOLDER MANAGEMENT • Stakeholders are those parties impacted by the corporation and upon whom its ultimate success depends. • Who are the major stakeholders in addition to investors? Employees (managers, employees, families, retirees)  Customers (direct and indirect)  Business partners (suppliers, joint ventures, alliances)  Communities (regional, national, local)  Environment 
  • Enterprise eco system: The stakeholder concept Partners Cu sto s m ee er y plo s m E Enterprise Enterprise En rs v plie iro Sup nm en Communities t
  • 3. HOW DO COMPANIES PRACTICE CSR? First, several generalizations: CR is fundamentally a vision or philosophy about the purpose • and role of business in society. • Practices vary by company, CEO, culture, and tradition. • CR is a journey and a process of continuous improvement. • CR is an investment in building an image and reputation. • CR makes good business sense. •
  • CR is not:  Synonymous with Business Ethics  Limited to community involvement  Exclusive of environmental sustainability  Paternalism Taking over the role of government 
  • Employees / Workplace Quality of Life • m
  • Employees / Workplace  Quality of life  Human resource policiesH u  Responsible restructuring  Human rights  Diversity  Job creation  Training and education  Health and wellness  Harassment
  • Customers/consumers Ethical marketing  Products and Services  Customer service  Responsible procurement  Audits  Cause related marketing 
  • Suppliers Codes of conduct Supply chain management and monitoring Human rights Labour standards (ILO) Minority Vending Fair Trade
  • Community Involvement Volunteerism  Education  Poverty alleviation  Philanthropy 
  • Environment Life-cycle management  Greening the supply chain  Pollution  Public procurement  Eco-Efficiency (recycling, consumption, ..) 
  • Related issue areas Business Ethics Codes of conduct Ethical audits and training Governance Mission/vision/values Corporate culture Internalizing costs Regulation Government Civil
  • WHAT DRIVES ETHICAL DECISIONS ? REGULATION ETHICAL ECONOMIC
  • 4. WHAT MOTIVATES COMPANIES TO BE RESPONSIBLE?  Business success and competitiveness  Competitive advantage (ex: Cooperative Bank UK)  Ethical reasons: doing the right thing  Fad, peer group pressure  License to operate  Social purpose/mission
  • Examples: Wal-Mart: increase fuel efficiency of trucks by 25% over 3 years (eco-efficiency) Wal-Mart: audit supplier factories and reward them for environmental goals and cut emissio Danone: closing factory in Mexico without layoffs or job loss (responsible restructuring) Starbucks UK: employees volunteering on Christmas Day to support local homeless shelter; raising money for local causes (community involvement)
  • 5. THE BUSINESS CASE FOR CR • Hundreds of studies and articles indicate a correlation between good social and environmental practices and financial results, e.g.: CR vs share price performance  • Good HR practices vs ROI  • Low pollution vs PE ratios  • Quality vs market share  • Community involvement vs employee motivation  •
  • 5. THE BUSINESS CASE FOR CR • Hundreds of studies and articles indicate a correlation between good social and environmental practices and financial results, e.g.: CR vs share price performance  • Good HR practices vs ROI  • Low pollution vs PE ratios  • Quality vs market share  • Community involvement vs employee motivation  • . . . but clear proof of cause and effect remains elusive.
  • Nevertheless it is generally accepted that responsible practices do impact competitiveness in a number of convincing ways:  Enhancing the ability to attract, retain and motivate employees  Reducing costs  Increasing revenues  Building external reputation and brand image Protecting the companyÕs Ôlicense to operateÕ 
  • 5. SMEs ARE DIFFERENT • “CSR” is meaningless to SME owner/managers  The word “corporate” turns them off.  as does “social responsibility” to entrepreneurs preoccupied with their own survival and cash flow.
  • Yet five major drivers lead entrepreneurs to act responsibly: •The values of the owner/manager •Cost savings (ex eco-efficiency) •Supply chain/customer requirements •Potential to increase revenue •Attraction, retention and motivation of employees
  • Certain types of SMEs are more responsible  Enterprises with explicit social missions  Women owner/managers  Youth entrepreneurs  Family-owned businesses (legacy)  Cooperatives
  • Women deal differently with stakeholders o With employees: more meaningful work o With customers: greater loyalty and satisfaction o With suppliers: longer relationships With local communities: more volunteering o
  • 6. LOOKING AHEAD • CR will become more common practice. • Public expectations of business will increase as the government role continues to diminish. • There will be increasing demands for more transparency: “don’t tell me, show me”. • Audits and annual social reports will become common, even mandatory in some countries • CR will become a more strategic concern for management and be decentralized to business units • New scandals involving business and government officials will focus increased attention on business ethics.
  • • New models will emerge for allocation of costs and benefits among companies, customers, and society. • Raw material shortages and environmental degradation will limit growth and job creation. • Treatment of employees will become even more important to win the “war for talent.” • Business will seek more partnerships with government and NGOs to address major issues.
  • Sustainability • 1987 Brundtland Commission: “the ability to meet today’s global economic, environmental and social needs without compromising the opportunity for future generations to meet theirs.” • Dow Jones Sustainability Group Indes (DJSGI): “a business approach to creating long-term shareholder value by embracing opportunities and risks deriving from economic, environmental and social developments.”” • Michael Hopkins: Sustainable development means improving the quality of human life while living within the carrying capacity of supporting ecosystems.”