CSR In China: An Overview

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In this presentation, given to a roundtable of 25 senior executives, I discussed some of the China centric trends that are catalyzing maturing in CSR. Followed by

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CSR In China: An Overview

  1. CSR in China: Trends<br />
  2. About Me<br />Develop long term capacity within the various actors (NGO, MNC, academic, gov’t, and citizen) to create stable/ sustainable solutions<br /><ul><li>Provide a platform where civil sector professionals can share best practices
  3. Conduct research, study problems, assess program, & create partnerships
  4. Work with social entrepreneurs and NGO leaders to develop capacity
  5. On campus research, develop student leaders, clubs, mentorships, internships</li></ul>Established in 2004, Hands On China’s mission is connecting people – both locals and foreigners in Shanghai who want to become involved as volunteers in community activities with local charities who need assistance.<br /><ul><li>Coordinates volunteer opportunities for active professionals, according to their availability and personal interests
  6. Support project partners with direct donations, fundraising planning and execution, community project design/implementation
  7. Design and manage a variety of community relations programs for private sector partners in Shanghai – CorpWorks!</li></ul>Developed the project based class Sustainability and Responsible Leadership<br /><ul><li>To institutionally support society by leveraging its students, faculty, alumni
  8. Improve student awareness of the social and environmental challenges in China
  9. Teams will conduct research, develop external partner, & present business plan</li></li></ul><li>The China Context<br />Clean Energy<br />Carbon offsets<br />Green Jobs<br />Managed Resources<br />Populations & Labor<br />Consumer Safety<br />Urbanization<br />Food & Agriculture<br />Landfills & eWaste<br />Overpackaging<br />Healthcare<br />Traffic and Transport<br />Healthcare<br />
  10. CSR & Sustainability<br />Labor Scandal<br />Immediate Impact<br /><ul><li>Domestic and International press coverage
  11. 45,000 investigators sent to Shanxi
  12. Public acknowledgement of system failure and call for change by party</li></ul>Product Recalls<br />Immediate Impact<br /><ul><li>International witch hunt and tit-for-tat
  13. Economic impact to Chinese manufacturers
  14. Questions at home about products surface</li></ul>Taihu Lake<br />Immediate Impact<br /><ul><li>Environmental awareness took a quantum leap
  15. Domestic / International press coverage
  16. National support and sympathy for affected</li></ul>Immediate Impact<br /><ul><li> 24/ 7 news coverage – with citizen journalists first to report (twitter)
  17. Intense corporate pressure to donate and manage messaging carefully
  18. First time many firms experienced the “mass” media</li></ul>5.12 Earthquake<br />Milk Scandal<br />Immediate Impact<br /><ul><li>24/7 Full press coverage on TV, newspaper, blogs, &twitter
  19. Public awareness of problems with food industry, and call for changes
  20. Ongoing investigative reporting into other areas / other companies</li></li></ul><li>How Stakeholders are Changing<br />What makes a stakeholder change?<br />Change in Mission<br />Increased Awareness<br />Timing / Urgency<br />Change in Relationship<br />Change in Power Structure<br />Pressure from their stakeholders<br />Collaboration with other stakeholders<br />Role of technology<br />Rating <br />Agency<br />Industry Assoc<br />Investors<br />Government<br />Competitor<br />Suppliers<br />Customers<br />Organization<br />General Public<br />Distributors<br />Employees<br />Customers<br />Founders<br />Media<br />NGO<br />Community<br />
  21. Abbott Case Study<br />The Facts:<br /><ul><li>Product recall was initiated for contaminated milk powder
  22. Source of contamination was US manufacturing site
  23. Limited to few batches
  24. Batches were sold in the United States, Puerto Rico, Caribbean
  25. Unlicensed sales of product has been found in China
  26. Recalls for affected areas are in place, but not in China</li></ul>Questions:<br />Who are the relevant stakeholders for Abbott?<br />What is the impact of a “Crisis” on their analysis?<br />Should Abbott view the Chinese consumer as a stakeholder?<br />How should exposure to Chinese consumers be managed?<br />The Options:<br />Offer a limited recall to consumers with legitimate receipt<br />Offer a China wide recall, regardless of source<br />
  27. Organizational Trends <br />China Foundation<br />Global<br />International NGO<br />Program Partner<br />Program Partner<br />Program Partner<br />BU<br />BU<br />BU<br />BU<br />BU<br />BU<br />BU<br />Globalized Programming:<br />Era of centralized / disengaged programming: <br /><ul><li>Partnerships chosen at global level
  28. Partnerships reflected global issues of interest
  29. Little local ownership</li></ul>Programs that were chosen were at a global level and, regardless of program effectiveness, isolated local offices from programs.<br />Global HQ<br />China HQ<br />Localized Programming<br />Era of decentralized/ engaged programming: <br /><ul><li>Entrance of locally chosen program partners
  30. Alignment of issues at the regional level that tie to global level
  31. High local ownership / engagement</li></ul>Global firms (and their foundations) began developing capacity internally to locally source project partners as a means to create more stable programs that have greater buy in locally<br />China HQ<br />Corning <br />BU<br />Local Organization<br />Local Partner<br />Local Partner<br />Local Partner<br />
  32. Local Trends<br />Pre 5.12 Giving:<br />Era of Philanthropy on Demand: <br /><ul><li>Quid Pro Quo Giving
  33. Holiday giving</li></ul>Clear rules about giving: How much to give, who to give it to, when, who would be in attendance, and which camera to smile at<br />Post 5.12 Giving<br />Era of Engaged Philanthropy: <br /><ul><li>Citizen involvement embraced
  34. Accountability and transparency required</li></ul>Rules about giving had changed as the expectations surrounding philanthropy had changed<br />
  35. Changing Partnerships<br />
  36. Having an Impact<br />Move past awareness to knowledge<br /><ul><li>Understand the issues that are important to key stakeholders (government, employee, and citizen)
  37. Understand the role that your firm plays as a stakeholder within the community within that issue.</li></ul>Develop a focus around a clear strategy<br /><ul><li>Align focus and strategy around a single topic, or a few topics (at most), and develop a strategy that will lead to the highest measure of impact.
  38. Align segmented (international, national and grassroots) programs and partnerships </li></ul>Identify, and work with, partners who align with strategy and have greatest opportunity for impact<br /><ul><li>Longer term programming is preferred
  39. Equitable financial arrangements that keep partner engaged</li></ul>Look beyond the donation. Look for depth of partnerships<br /><ul><li>NGOs need more than money.
  40. Corporations have more to give than money</li></ul>Stop Trying to Compete. Engage<br /><ul><li>Look to develop programs (innovative or not) that work
  41. Good programs will brand themselves</li></li></ul><li>Good CSR Brands Itself<br /><ul><li>CSR doesn’t have to be sexy
  42. CSR doesn’t have to be innovative
  43. CSR doesn’t have to win awards
  44. Needs to align to core values
  45. Needs to be long term
  46. Needs to be communicated effectively
  47. Needs to be effective</li></li></ul><li>“In the end, environmental, social and economic sustainability cannot be separated. A sustainable planet must include a sustainable human civilization – resilient human systems that respect the complicated relationships among poverty, human rights, economic development, environmental health, and human success” <br />- Institute for the Future, 2008<br />Richard Brubaker<br />Founder and Managing Director, Collective Responsibility<br />Founder and Executive Volunteer, HandsOn China<br />Adjunct Professor, Sustainability and Responsible Leadership, CEIBS<br />rich@collectiveresponsibility.org<br />www.collectiveresponsibility.org<br />

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