This document provides an overview of corporate social responsibility (CSR). It begins by outlining the agenda, which includes defining CSR, trends driving CSR, challenges, and opportunities. It then discusses differing definitions of CSR and emphasizes a strategic definition. Key trends driving greater CSR adoption are identified as declining trust in business, millennial values, consumer preferences, growth of socially responsible investing, and increasing NGO influence. Challenges include regulatory complexity, consumer indifference, perceived high costs, and critics of CSR. However, the document also outlines opportunities in developing new products and markets, strengthening brand equity, professional services, risk mitigation, and continuous innovation.
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Describes the failure of corporate social responsibility (CSR 1.0) due to the Triple Curse, and introduces Wayne Visser's model of CSR 2.0, including its 5 Principles and 4 DNA Codes. Prof/Dr Visser is CEO of CSR International
A presentation looking at trends, drivers, actions, strategy and business ethics, why they matter, who does them well and what the business case is today
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Corporate social responsibility is a critical issue for most organizations and their top management. Corporate social responsibility is a focal point and has strategic impact on companies in all different industries.
To what extent Corporate Social Responsibility (CSR) Impact on Firm Performance?
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Corporate social responsibility
1.
2. Roadmap for Today
What is CSR?
What are the trends driving CSR?
What are the big challenges on the CSR front?
What and where are the opportunities?
3. How would you define CSR?
Philanthropy?
Employee volunteerism?
PR?
Transparent reporting?
Sponsorships?
Workplace
diversity?
Human rights?
Risk
management?
Sustainable development?
Corporate governance?
Business ethics?
Employee treatment?
Environmental impact?
Safe products? Solving social
problems?
Borrowed from presentation by Dr. Kellie McElhaney, Haas School of Business
4. The many definitions of CSR
A business approach that creates long-term shareholder
value by embracing opportunities and managing risks deriving
from economic, environmental and social developments.
Dow Jones Sustainability Index
A concept whereby companies integrate social and
environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary basis.
European Commission
Using the power of business to create a better world.
Net Impact
Borrowed from presentation by Dr. Kellie McElhaney, Haas School of Business
5. Think Strategically – A Better CSR Definition
Dr. Kellie McElhaney, Founder of the Center for
Responsible Business at Haas, defines strategic
CSR as :
“Strategic corporate social responsibility is a
business strategy that is embedded in day to day
business operations, supports core business
objectives, and leverages core competencies
to create business value and positive social
change.”
6. CSR Internationally
CSR varies across countries due to societal norms,
legislative requirements, relations between business
and government and customer demands
Generally speaking, CSR – as we know it – is strongest
and most present within the US and Europe
More prevalent within companies based in developed
countries, though it is likely practiced across borders
10. Us, the Millennial Generation, Care
77% of recruits consider social commitment when
choosing an employer
97% of “generation Yers” seek a job that “allows me
to have an impact on the world”
How many of you seek to make an impact?
Source: 2006 Golin/Harris International survey
Source: Harris Interactive Poll
Ideas borrowed from presentation by Dr. Kellie McElhaney, Haas School of Business
11. Consumers Care
Rise in consumer awareness
and preference
Successful product lines and
brands showing returns:
Clorox Greenworks
Method
Patagonia
Fair trade coffee
Natural Marketing Institute, LOHAS
Trends Database 2008, Pre-Conference
Presentation
12. Socially Responsible Investing (SRI)
SRI considers the financial and societal performance
of investments
Currently $2.7 trillion of the $25.1 trillion under
management in the US (324% growth since 1995)
Demonstrated competitive performance versus the
S&P 500 over the last two decades
Though empirical evidence demonstrates a
correlation between CSR and financial performance,
causation has been difficult to prove
13. Non-Governmental Organizations (NGOs)
and Others
Power and reach of NGOs increasing
Environmental and social activism growing through
household name NGOs and emerging NGOs
Greenpeace
Environmental Defense Fund
Fair Labor Association (FLA)
World Wildlife Fund (WWF)
Web 1.0 and Web 2.0
15. Regulatory Restrictions
Patchwork of international environmental and social
laws, protocals and treaties
Kyoto Protocol, Copenhagen Climate Conference,
European Emissions Trading Scheme, RGGI, US Clean
Air and Clean Water Acts
International Labor Organization, diverse working
standards
Government incentives for green jobs, investments,
cleantech
16. Consumer Indifference (?)
Bridging the gap between consumer statements and
actions – is price the only bottom line?
Educating the consumer – why do your company’s
CSR efforts make your product better?
Effectiveness versus goodness
Changing behavior remains the largest consumer
challenge
17. (Perceived) Cost Challenges
Overcoming the no-sum mindset: economic
performance versus environmental/social performance
Are CSR efforts a cost center or revenue driver?
Operational Improvements
Regulatory compliance
Stakeholder management
Opportunity Costs
Just Good Business
Alignment with corporate strategy
Responsible investment with positive NPVs
18. Critics and their arguments
The Friedman Doctrine: the social responsibility of
business is to increase profits
CSR is spending other peoples’ money
CSR dilutes government actions to address large-scale
social and environmental challenges
CSR is a sideshow to the core operations of a
company
23. Risk Mitigation Continuous Innovation
Address corporate “black
eyes”
Engage stakeholders and
vocal critics; minimize brand
damage and customer loss
Stay ahead of the curve –
regulations, societal
expectations, activists
Reduce litigation (and the
threat of)
Use CSR as a driver for
operational efficiency
Anticipate consumer
demands
Attract top talent
Opportunities Continued…
Editor's Notes
LOHAS consumers are early adopters, influential amongst family and friends, less price sensitive and brand loyal.
Naturalites are “zealous about their personal health and use many healthy and natural CPGs”. Less committed to holistic sustainability.
Conventionalists have interest in environmental products, are involved with environmental groups and legislation, represent CSR product potential.
Drifters care but don’t always make the choices. Likely constrained by money, concerned with ability to make an impact as an individual.
