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Corporate And Social Responsibility In The ITC Downturn


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CSR is especially important in an economc downturn. It gives a compny a opportunity to demonstrate its commitment to specific groups of stakeholder and understant the needs of future customer types.

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Corporate And Social Responsibility In The ITC Downturn

  1. 1. Corporate And Social Responsibility Strategies In The ITC Downturn Martin Hingley, Managing Director, ITCandor Limited Contact:
  2. 2. Agenda – CSR In The ITC Downturn • Defining Corporate and Social Responsibility (CSR) • Who Owns the Strategy? • Classifying Four Types of Stakeholder • Typical Activities in 2009 • Beyond Green IT And Recycling – The Arrival Of The Disposal Channel • Why is CSR Important in the Downturn? • Conclusions – How to Modify Your CSR Strategy ITC Analyst Report 2
  3. 3. Defining ‘Corporate and Social Responsibility’ • “An organization’s strategy to behave ethically and contribute to ecological and economic development – directed at specific types of stakeholders, who fall into classes of clients, staff, communities and the environment” • Non-financial elements a company’s strategy • Beyond mere compliance legal requirements of national and international legislation • Doing something extra to help specific stakeholders • Often linked to sustainability and environmental concerns ITC Analyst Report Source:/Notes: 3
  4. 4. Own Owns The CSR Strategy? • CSR is often associated with the founders of an Organisation (e.g. ‘The HP Way’) • Typically a Board-Level strategy • Different departments take responsibility by Stakeholder – HR for Staff and Communities – Manufacturing for Staff and Contract workers – Customer support for Clients – Manufacturing and Logistics for The Environment • The Company’s CEO is usually ultimately responsible ITC Analyst Report 4
  5. 5. Four Types Of CSR Stakeholder All CSR Activities are 4. The Environment Designed to Meet the Needs of Four Types 3. Communities of Stakeholder: 2. Clients 1.Staff – the company’s employees 1. Staff or contractors (not directors or owners) Owners 2.Clients – consumers or The organisations buying Company the company’s offerings Shareholders 3.Communities – locations or underprivileged groups (sexual, ethnic or class) 4.The Environment – the biosphere (human, animal and plant) ITC Analyst Report 5
  6. 6. Typical 2009 CSR Activities Carbon Carbon Recycling Trading Trading 4. The 2. Clients Environment Alternative Reverse Energy Logistics Carbon Usage Supply Audit Chain Power Ethics NGO Efficiency Engagement Family Community Alignment Project Economic Development Diversity Programmes 3. Communities 1. Staff Charity Minority Donation Employment Flexible Philanthropy Working Hours ITC Analyst Report 6
  7. 7. Beyond Green IT And Recycling – The Arrival Of The Disposal Channel Sell Distribution End Of Life 1st Customer Recycler Ship 2nd Customer Resell Re- Finished Goods purpose Nth Customer Manufacturer Assemble Recover Scrap Component Manufacturer Component N Manufacturer Raw Recycled A Landfill Material Material Component Manufacturer Process B ITC Analyst Report 7
  8. 8. Vendors are Currently Immersed in CSR Activity • Microsoft – The Gates Foundation curing AIDS/HIV in Africa, Unlimited Potential for Emerging Countries • IBM – IGF Bridge Finance for ARRA and other Government Re- Generation Projects, Ghanese IT/Business Professional development, with the Feminist Press to encourage more women in Science, with an EU consortium on memory loss in aging populations, the ‘Nutritious Rice Project’, with IBEC for rural American broadband access • HP – Privacy and Data Protection, Supplier Code of Conduct, Global Citizenship report ITC Analyst Report 8
  9. 9. Why is CSR Important in the ITC Downturn? • Governments are investing in alternative energy – Smart Grids, solar, wind, wave and nuclear • ‘Cash for clunkers’ to stimulate manufacturing • Train and road transformation projects • News ways to handle unemployment needed • Stronger EU legislation- Reduction Of Hazardous Substances (ROHS) and Waste Electrical and Electronic Products (WEEE) for instance • Nordic Swan, Green Angel and Energy Star Certifications • The US Obama Presidency is catching up on environmental activities • UK politician expense claim scandal demonstrates the power of ‘downturn puritanism’ ITC Analyst Report 9
  10. 10. Conclusions – How to Modify Your CSR Strategy • Define your chosen stakeholders • Look to introduce Unique (not ‘Best’) Practices to differentiate • Keep CSR activities ahead of legislation • Don’t treat CSR like a normal product or service • Link CSR activities to future client groups • Contact – (+447791104555) ITC Analyst Report 10