Five CSR Programmes that Every Company Must Have

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For many who still only see Corporate Social Responsibility (CSR) as a "nice to have", CSR is merely a box to check with no clear strategic purpose; normally just set the budgets for annual donations and volunteering events. However, there are also some companies who are beginning to break out from the standard reasons for “investing” in CSR and realise that having a structured strategy, framework, and mindset of CSR can actually result in a positive ROI for their business.

Due to rising stakeholder expectations, increased resource constraints, and more complex regulatory environments, there is a growing trend of companies moving away from the intangible application of CSR to strategically looking at where social, environmental, and economic exposures and opportunities exist for the business itself.

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Five CSR Programmes that Every Company Must Have

  1. 1. Beyond CSR As Usual: 5 Key CSR Programs Richard Brubaker, Collective Responsibility April 2013April 5, 2013
  2. 2. Collective Responsibility About Us: Collective Responsibility is built on the fundamental principle that multiple stakeholders have an obligation and opportunity to begin working together to develop solutions to these issues. It is a process that is not focused on making quick gains, nor determined by a single "green" product line. Developing long term knowledge bases, capacity, and programs in the areas of CSR, sustainability, and civil society, Collective Responsibility is unlike traditional consulting firms, as we have managed both for profit and non-profit enterprises. We have built this platform using the same tools, capacity, and relationships to assist others in building their platforms, and it is our goal to embed these goal into other organization so that they can move beyond inspiration to action.April 5, 2013
  3. 3. Collective Responsibility About Our Work Events Training Consulting Program ManagementApril 5, 2013
  4. 4. Collective Responsibility Previous Experience 200+April 5, 2013
  5. 5. Collective Responsibility Richard Brubaker, Founder Driven by the belief that change begins with a single step, Richard Brubaker has spent the last 10 years in Asia working to engage, inspire, and equip those around him to take their first step. Acting as a catalyst to driving sustainability, Brubaker works with government, corporate, academic and non-profit stakeholders to bring together knowledge, teams, and tools that develop and execute their business case for sustainability. Rich frequently speaks on issues of social innovation & entrepreneurship, sustainability, corporate social responsibility, and leadership, and has been interviewed by more than 50 media outlets, including: CNN, CNBC, BBC, New York Times, Financial Times, China Economic Review, Inc., Fast Company, and International Herald Tribune, and he is regularly invited to speak at leadership, social innovation, and sustainability focused conferences.April 5, 2013
  6. 6. History of CSR in China Richard Brubaker, Collective Responsibility April 2013April 5, 2013
  7. 7. History of CSR in China Defined by the Times Only roles that were previously accepted for companies to contribute to society: • Obey the laws • Employee people • Make Money • Pay Taxes • Donate a little money… when you have the chance Era of Philanthropy on Demand: • Quid Pro Quo Giving • Holiday giving Clear rules about giving: How much to give, who to give it to, when, who would be in attendance, and which camera to smile atApril 5, 2013
  8. 8. History of CSR in China Historical Decision Making Globalized Programming: Global China HQ HQ BU BU Era of centralized / disengaged programming: Internatio China Foundati BU BU • Partnerships chosen at global level • Partnerships reflected global issues of interest nal NGO on • Little local ownership Program Program Program Partner Partner Partner Programs that were chosen were at a global level and, regardless of program effectiveness, isolated local offices from programs.April 5, 2013
  9. 9. Beyond CSR As Usual Growth is Good for AllApril 5, 2013
  10. 10. Moving Beyond CSR As Usual Richard Brubaker, Collective Responsibility April 2013April 5, 2013
  11. 11. Beyond CSR As Usual Fissures AppearEconomic FailuresBecome PersonalApril 5, 2013
  12. 12. Beyond CSR As Usual “CSR” Won’t Be Enough Politicians Business Leaders CitizensApril 5, 2013
  13. 13. Beyond CSR As Usual New Responsibilities Moving Past traditional definitions and appearances of “CSR” and “Sustainability” Changing Business Model  Paying full price of operations  Rebalancing risk / reward equation  Improving labor conditions and standards  Addressing issues of governance and exploitation Changing Product Portfolios  Focus on quality and safety vs. price and speed  Moving away from environmentally damaging processes  Working to improve industry standards Developing Communities  Internally and Externally  Creating core values that align with values of employees  Moving away from value system that places citizens before consumersApril 5, 2013
  14. 14. 5 Key Areas for CSR Richard Brubaker, Collective Responsibility April 2013April 5, 2013
  15. 15. Beyond CSR As Usual: 5 Areas of Focus Workplace Governance Environment Community Consumers Internal Internal Developing External Providing programs program process and programs that products/ focused on meant to programs that link firm & services to employee reduce risks minimize community consumers that wellbeing of corruption impact to through are safe and live and job / abuse in the environment volunteering & up to satisfaction firm philanthropy expectationsApril 5, 2013
  16. 16. Beyond CSR As Usual Workplace Conditions that still exist in China • China says 83,196 people lost their lives in work-related incidents last year • Factories with up to 20 beds in a room • Low end factory positions with poor working conditions, repetitive jobs, and in unfriendly environments 2007 Labor Law • Meant to remedy issues of wages, working conditions, and disputes • Little mention of the physical and mental conditions of employees Pressures and Responsibilities growing for firm • Fines for labor abuses going up • Firms are having to improve working conditions to attract and retain workers • Wages are risingApril 5, 2013
  17. 17. Beyond CSR As Usual Governance A government report from the State Council said prosecutors investigated more than 240,000 embezzlement, bribery and other cases involving official corruption from 2003 to 2009. In the past five years, more than 69,200 cases of commercial bribery involving some 16.59 billion yuan were investigated, the report said. The Communist Party leadership said China’s “harmony and stability” depended on efforts to build a clean government. - WSJ One of China’s most difficult issues: • Chinese firms looking to globalize operations are addressing (Sinopec) • Many firms look to reduce exposure through third party arrangements and tough codes of conductApril 5, 2013
  18. 18. Beyond CSR As Usual Environment At the national government level  Local leaders were warned that they must abide by national policies  SEPA and NRDC were given more power and support  National level “audits” of projects with potential for negative environmental impact At the local government level  Shutting down of factories considered low hanging fruit  Immediate tightening of all investment regulations occurred and turning away investments  An open recognition that the old days were gone/ cannot ignore environmental impactApril 5, 2013
  19. 19. Beyond CSR As Usual Community Volunteerism culture is Participating in volunteering one of the key reasons projects increases my work why I join/stay with GE. satisfaction.April 5, 2013
  20. 20. Beyond CSR As Usual Consumers The Facts: • Product recall was initiated for contaminated milk powder • Source of contamination was US manufacturing site • Limited to few batches • Batches were sold in the United States, Puerto Rico, Caribbean • Unlicensed sales of product has been found in China • China recalls ultimately allowedApril 5, 2013
  21. 21. The 5 Key Programs Richard Brubaker, Collective Responsibility April 2013April 5, 2013
  22. 22. Beyond CSR As Usual Strategic Citizenship Program Image Image Image Strategic Grant (GONGO) Employee Engagement Disaster ResponseApril 5, 2013
  23. 23. Beyond CSR As Usual Consumer Protection ProgramApril 5, 2013
  24. 24. Beyond CSR As Usual Environmental Stewardship Program Design Materials Logistics Production Retail Use Waste & TransportApril 5, 2013
  25. 25. Beyond CSR As Usual Corporate Governance ProgramApril 5, 2013
  26. 26. Beyond CSR As Usual Workplace Safety and Wellness ProgramApril 5, 2013
  27. 27. Fundamental Steps Richard Brubaker, Collective Responsibility April 2013April 5, 2013
  28. 28. Beyond CSR As Usual Steps to Success Scale: Moving past organization / intoand Awareness: Understanding the and product Engagement: Keeping Staying problem Capacity: Creating an projectson Track, and / Vision: Keeping focus, focus, Staying on programs Awareness Engagement process thatone’s rolethan one person, process recognizingKnowing where to make changes • Requires long term vision, planning, and staffing or Knowing whenbigger changes Track, and is to make • Buildingunit of long termthat is clearly defined business level issue focus accomplish? of • Deeper management understanding • What areand looking to impact possible Program you • issues,are youprogramming strengths,equipment, and • Long term a and opportunities place before kickoff Who risks, looking need for in Focusing funding plan/ vision •Investing inonprocess’s to help? R&D, and develop • people is yourrelationship between issue and •Understand REAL value add? What partnerships Scale Capacity •Working with externals (suppliers and customers) to • core businesswho are able to manage and sell Capable staff programs manage variables and expectationsApril 5, 2013
  29. 29. Beyond CSR As Usual Signs of Success 1. Clearly Align to Business Mission 2. Align with stakeholder needs, interests, and capacity 3. Leverage The Right Partnership 4. Plan for scaleApril 5, 2013
  30. 30. Case Studies Nippon Color Way of Love ProgramApril 5, 2013
  31. 31. Case Studies Nippon Love to Color Program 150+ Schools 40,000+ Students 1,000,000+ Submissions 100,000,000 Web VisitsApril 5, 2013
  32. 32. Moving Beyond Business As Usual Signs of Success 1. Clearly Aligned to Business Mission 2. Align with stakeholder needs, interests, and capacity 3. Leverage The Right Partnership 4. Plan for scaleApril 5, 2013
  33. 33. Beyond CSR as Usual Good CSR Brands Itself • CSR doesn’t have to be sexy • CSR doesn’t have to be innovative • CSR doesn’t have to win awards • Needs to align to core values • Needs to be long term • Needs to be communicated effectively • Needs to be effectiveApril 5, 2013
  34. 34. Richard Brubaker Founder, Collective Responsibility Adjunct Professor of Sustainability, CEIBS Thank You! rich@collectiveresponsibility.org @ChinaCSRApril 5, 2013

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