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The Company as a key factor in its teritory

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The Company as a key factor in its teritory

  1. 1. The companyas a key actorin its territoryFabiana Leal, Camille LeDu, MarynneLemasson, AuréliaLonchamp, HocineMaïz, Aurore Pak, ClairePerron
  2. 2. 2Introduction Thecompany as a key actor in its territory: how can your company work on its social responsibility and contribute to local development ? Focuson Corporate Social Responsibility (CSR)concept and its direct implications
  3. 3. 3 The Company is a key actor (passive)  Aim of a company : generate economic activity for survival We see: inputs & outputs but we should also see transactions  Positive & negative impacts over its stakeholders and environment (territory and outside) even if it is « notSource: BMW voluntary » = passive implication
  4. 4. 4The Company has to be anactive actor Increase of societal challenges has made ‘being active’ a « must-have »:  Acting beyond the law  Involve stakeholders and business operations  Philanthropy/charity might have led to scandals (money to cover evil actions)  Need to combine both and to show responsibility
  5. 5. 5CSR can be the solution CSR: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” Think global, act local Concept which appeared in the 1930s and now supported by international organisation 3 pillars : Economic – Environmental –Social
  6. 6. 6CSR and local communities Some companies involve in several project : CSR strategy Canon involves in different fields and one is Local FOCUS Source: Canon
  7. 7. 7CSR actions towards localcommunities Action can take different forms: Corporate giving, Social sponsoring, Corporate citizenship, … It requires an organisational structure: Local grants systems, Corporation foundation, public-private partnerships, … Challenge: which CSR is adapted to each company?
  8. 8. 8BEING PART OF THELOCAL ENVIRONMENTCSR at the heart of the business: the example ofPacita Juan (Philippines)
  9. 9. 9General background Pacita Juan’s company:  Small-sized company, 17 years old  Coffee production Context:  Coffee production down, bad quality (local farmers paid too low)  Will to promote local products Challenge:Conciliate quality, local production & sustainable business model
  10. 10. 10Concrete actions  Going organic  Educating the local farmers  Offering a 10% premium to farmers  Diversification of her business
  11. 11. 11The other businesses ECHO: market place for farmer wives (artisan) + free advice BINALO: re-using banana leaves from local producers LeBistroVert: restaurant promoting local ingredients Key words: educating, sustainability, core business, local root
  12. 12. 12CSR as a competitiveadvantage Stakeholders involvment  way to differentiate:  Going organic = cost savings  Lower priced coffee to end-user  Building trust: long-term, sustainable relation with producers By telling people: awareness and positive word-of-mouth
  13. 13. 13Return On Investment Not philanthropy  must have business sense (short-term concrete returns) Good ROI because of the good quality of the product $20.000 to shift from former to organic production: secured investment Strong system – financial stability : did not suffer from the 2008 financial crisis Profitable company  diversification
  14. 14. 14Non-financial returns PJ gave hope to local people Encouraging people Virtuous circle : employees are feeling well  better efficiency at work = win/win situation
  15. 15. 15Key points PacitaJuan sells an experience more than a product: added value When CSR is fully part of the business: non financial returns are significantly important and measurable (part of the business) Yet: must be linked to the core business
  16. 16. 16Win/win = Reconciliation
  17. 17. 17GOING OUT OF THE CORECOMPETENCESAn added value for the company: the example ofSakhalin Energy (Russia)
  18. 18. 18About Sakhalin CSR in a transnational company : Sakhalin  Belongs to Gazprom  Oil and gas production  Sakhalin Island Sakhalin CSR Strategy:  Objectives: no net loss of biodiversity  Concrete actions (animals, people…)
  19. 19. 19Corporate philanthropy tocontribute to localdevelopment Corporate philanthropy is concerned with the improvement of the competitive context; benefiting both the company and society while CSR should preferrably be linked up to the core business of the company Companies use philanthropy to gain significant advantage (reputation, social capital, business development)
  20. 20. 20Philanthropy approaches2 different ways:  Supporting community foundations  Donate technical or management advice
  21. 21. 21CSR fields of application Market Fields of Workforce Environment application Society
  22. 22. 22Being responsible and havingpositive financial performance Studyfrom Business and Society Review (1999)  better performance of companies that are involved in ethics codes Study from University of Southwestern Louisiana (1996)  publicity about unethical corporate behaviour lowers stock prices
  23. 23. 23Win/win = Reconciliation
  24. 24. 24AN OBLIGED PROCESS INTODAY’S MARKET PLACECSR, a business and a duty
  25. 25. 25Image building, undoubtedly CSR: « must have » or « need-to-have »  Big companies : rule to have CSR  SME: CSR inseparable from daily businessA competitive advantage  Attracts potential employees  Lowers turnover rate  Added value for customers (facilitates BDP)  ‘Feel-good factor’ for all the stakeholders Factor of differentiation
  26. 26. 26Communication: not a luxury, buta necessityWHY TO COMMUNICATE? No communication:  Sincerity or no CSR commitment at all? Do communicate:  Show-off, risk of green washing, or duty to make sensitive?
  27. 27. 27A need to communicateGO BEYOND THE LAW: free to act or react Educate Make sensitive Show the example Promote local resources and competencies Need to adopt a GLOCAL approach
  28. 28. 28CSR today Different CSR actions for different companies, in different areas Different uses of CSR for different purposes :  Competitive advantage : concrete financial vs. non financial elements  Ethical and socially-conscious Reconciliation of interests as the key
  29. 29. 29CONCLUSION
  30. 30. 30Reconciliation with localcommunities Assess core capacities of the company Assess interests of the stakeholders within the local community  Recognize and Respect Perform Reconciliaton of interests to find the optimal form of CSR (win-win situation) Realise and Root the CSR practices : implement and make it sustainable
  31. 31. 31ConclusionThe ‘right’ CSR process should follow thisscheme, however: Loss of CSR initial essence: creation of a trend Virtuous circle of hypocrisy, but how to make it relevant and sustainable? Moreover, CSR can have backwards so need close assessments Is CSR enough to face our society’s challenges?
  32. 32. The companyas a key actorin its territory….Fabiana Leal, Camille Le Du,Marynne Lemasson, AuréliaLonchamp, Hocine Maïz,Aurore Pak, Claire Perron

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