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Synthesis:
• SD is not just a call to preserve the environment
and the future generations
• It promotes the ways and means to achieve it :
• A political change in the decision-making processes
of companies, local and national governments.
• An enlargement of the decision-makers liability by
increasing transparency and easing prosecution
• [It recalls the right of the South to pursue its
development too].](https://image.slidesharecdn.com/mge-s2-rse-s1-e-slideshare-160213165833/85/CSR-Origin-stakes-and-strategies-27-320.jpg)
Uploaded byFrançois Mangin
CSR: Origin, stakes and strategies
This document outlines a course on corporate social responsibility (CSR) and business ethics, focusing on sustainability challenges and stakeholder engagement. It details course objectives, schedules, and key topics such as the roles of businesses in society, responsible business models, and the political and legal components of sustainable development. It emphasizes the importance of CSR in transforming business practices and enhancing accountability in decision-making processes.
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CSR: Origin, stakes and strategies
- 1. samedi 13 février2016 1 1 11 CORPORATE SOCIAL RESPONSIBILITY & BUSINESS ETHICS Session 1: Facing the Sustainability challenges: Corporate Social Responsibility François MANGIN 2015-2016
- 2. samedi 13 février2016 2 2 22 Session 1 Facing the Sustainability challenges: Corporate Social Responsibility
- 3. samedi 13 février2016 3 3 33 Course learning objectives By the end of this course, students are expected to be able to: Distinguish between CSR, Sustainable Dvlpt (SD) and Ethics In a given situation, identify the stakeholders, analyze their stakes, positions, and resources and to propose a engagement strategy Present and explain the major tools and frameworks used to implement more responsible and sustainable ways of doing business Make a CSR/SD diagnosis of a company in its industry and propose the major lines of an action plan Explain the new sustainable and responsible Business Models Use a thoughtful approach to dealing with unethical situations in business; Present the key CSR issues currently on the national and international agenda ; Critically assess companies’ CSR strategies and outcomes
- 4. samedi 13 février2016 4 4 44 Course schedule 1. The responsibilities of Business towards Society, and Sustainable Development 2. Stakeholders, controversies and lobbying 3. Simulation 4. Labor conditions 5. Consumer issues and Fair operating practices 6. Ethics: how to face unethical situations 7. Environmental impact and Eco-design 8. Sustainable and responsible Business models 9. The challenges of developing less developed countries 10. Simulation
- 5. samedi 13 février2016 5 5 55 Session 1 Facing the Sustainability challenges: Corporate Social Responsibility
- 6. samedi 13 février2016 6 6 66 Session 1 Learning objectives By the end of the session, each student is able to:: Situate CSR in the history of Business and Society relationships Explain the political and legal components of Sustainable Development Explain how CSR is linked to Sustainable Development Explain the differences between European and American visions of CSR Present the areas where the responsibility of a company can be engaged Explain the CSR Business Case Use a Virtue Matrix to position and qualify the CSR/SD policy of a company or a industry
- 7. samedi 13 février2016 7 7 77 Introductory Case Study Who are the stakeholders? What are their stances and on which grounds do they defend them?
- 8. samedi 13 février2016 8 8 88 Stakeholders Vedanta Orissa Government Local Communities Indian government NGO Medias OCDE « Peoples » Indian Supreme Court Shareholders CSR Rating Agency Investors Financial press
- 9. samedi 13 février2016 9 9 99 Worth to note: • Non-economic impacts • Activist groups and supporters • Complaint filed before OCDE NCP • Legal actions • Involvement of financial institutions – CSR research & rating agency – Responsible Investors Project withdrawal
- 10. samedi 13 février2016 10 10 1010 Session 1 outline 1. Business in Society: a increasingly challenged legitimacy 2. Sustainable Development: challenging the established decision-makers 3. Corporate Social Responsibility: changing the corporation to make development more sustainable 4. Areas of Corporate Social Responsibility 5. Corporate CSR policies
- 11. samedi 13 février2016 11 11 1111 1 Business in Society: a increasingly challenged legitimacy
- 12. samedi 13 février2016 12 12 1212 1970: Milton Friedman The manager is the agent of the individuals who own the corporation His unique responsibility is to make as much money as possible while conforming to the law and to the ethical custom. He has no expertise nor legitimacy to take decision in other fields than running his company Social Responsibility is the responsibility of the government Responding to CSR demands from pressure groups that didn’t succeed in electoral competition would be non democratic
- 13. samedi 13 février2016 13 13 1313 North American approach (Carroll)
- 14. samedi 13 février2016 14 14 1414 Recent illustration • Annual General Meeting 2011 • CEO de Margerie answers a question on the Joslyn tar sands field in Alberta (Canada) asked by an Athabasca Chipewyan first nation representative • Link
- 15. samedi 13 février2016 15 15 1515 The capitalist system is under siege. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community. The legitimacy of business has fallen to levels not seen in recent history. 2011: Michaël Porter
- 16. samedi 13 février2016 16 16 1616
- 17. samedi 13 février2016 17 17 1717 Synthesis: • CSR origins lie in the USA where some questions arose about the missions of the corporation and of its executives. • But the US tradition restricted the corporate social engagement to voluntary philanthropic activities. • Criticisms against the negative impacts of corporate operations threat its legitimacy and put pressure on this too limited approach.
- 18. samedi 13 février2016 18 18 1818 2 Sustainable Development: challenging the established decision-makers
- 19. samedi 13 février2016 19 19 1919 Global challenges Micro-level causes
- 20. samedi 13 février2016 20 20 2020 Causes of the unsustainable development? No consideration of the long-term and distant impacts of decisions Accounting Finance No consideration of the advocates of the interests affected by the unsustainable development Lack of transparency
- 21. samedi 13 février2016 21 21 2121 Sustainable Development Development that balances economic, social and environmental stakes and thus preserves the future of the future generations by: • Implementing new ways of making decisions by addition of non-economic criteria and by engagement with new stakeholders • Increasing the accountability of decision-makers by organizing data transparency as well as by modifying the legal environment to allow the prosecution of decision-makers
- 22. samedi 13 février2016 22 22 2222 Stakeholder A person, group, organization: • whose interests are affected by the decision • that has an influence on the decision-making process
- 23. samedi 13 février2016 23 23 23 Rio Declaration Participative and transparent decision making process Risk analysis Impact studies
- 24. samedi 13 février2016 24 24 24 Rio Declaration Implement legal Frameworks 3 Principles – Responsibility – Precaution – Polluter Pays
- 25. samedi 13 février2016 25 25 2525 Precautionary Principle The lack of sound scientific data, considering the present state of art, should not delay the adoption of effective and proportionate measures aiming at risk prevention against environmental, health or nutrition hazards.
- 26. samedi 13 février2016 26 26 2626 Polluter Pays Principle Those who produce negative externalities should bear the costs of managing them to prevent damage to human health or the environment. Defined by OCDE in 1972 Part of UE Treaties (1987)
- 27. samedi 13 février2016 27 27 2727 Synthesis: • SD is not just a call to preserve the environment and the future generations • It promotes the ways and means to achieve it : • A political change in the decision-making processes of companies, local and national governments. • An enlargement of the decision-makers liability by increasing transparency and easing prosecution • [It recalls the right of the South to pursue its development too].
- 28. samedi 13 février2016 28 28 2828 3 Corporate Social Responsibility: changing the corporation to make development more sustainable
- 29. samedi 13 février2016 29 29 2929 To achieve sustainable development, a top priority: Involve the business (in the whole world)!
- 30. samedi 13 février2016 30 30 3030 Legal levers (hard law & soft law) Obligations Interdictions Liabilities and indictments Decision criteria & Decision making pocesses Governance
- 31. samedi 13 février2016 31 31 3131 Soft law instruments (guidelines, codes of conduct) which : • Aim to modify or to guide behaviors by the voluntary adhesion of the participants ; • Do not have any legally binding force and do note create legal rights or obligations; • Are elaborated and designed in a formalized way, very similar to the process used for the rules of law. From French Conseil d’État, Étude annuelle 2013
- 32. samedi 13 février2016 32 32 3232 From the soft to the hard law Legal Obligation JurisprudenceIndividual Pledge Voluntary adhesion to a Pact or Covenant Voluntary Frameworks & Guidelines
- 33. samedi 13 février2016 33 33 3333 Hard law & soft law: an example CSR/SD Reporting Publishing the CSR/SD impacts and the actions to prevent and to attenuate them Mandatory for the large then the middle-sized companies… but no prescription of specific guidelines to do it Ruled mandatory by the EU… since 80% of the targeted companies still willingly do it
- 34. samedi 13 février2016 34 34 3434 Economic levers Modify prices Taxes Create New Markets Subsidizes Public Investments
- 35. samedi 13 février2016 35 35 3535 Innovations Management tools Technologies Business Models
- 36. samedi 13 février2016 36 36 3636 Visions of CSR Definition Core issues Means for action Legal enforcement? National law? Treaties and International Principles & Declarations? Frameworks Guiding actions Comparing outcomes
- 37. samedi 13 février2016 37 37 3737 What is CSR? • “Corporate Sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social developments.“ • CSR is a guiding vision that can help companies maintain their license to operate in an increasingly globalized world. • d
- 38. samedi 13 février2016 38 38 3838
- 39. samedi 13 février2016 39 39 3939
- 40. samedi 13 février2016 40 40 4040 What is CSR? • CSR is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large. • “A sustainable business is one that delivers value for investors, customers, and employees; improves the living standards of its employees and the communities it touches; makes wise use of natural resources; and treats people fairly.” • d
- 41. samedi 13 février2016 41 41 4141 European approach of CSR « the responsibility of enterprises for their impacts on society » European Commission, 2011 “Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing “more” into human capital, the environment and the relations with stakeholders” European Union, 2001
- 42. samedi 13 février2016 42 42 4242 Corporate Social Responsibility A process driven in close collaboration with the stakeholders, To integrate social, environmental, ethical, human rights and consumer concerns into their business operations and core strategy, with the aim of: • maximizing the creation of shared value for their owners/shareholders and for their other stakeholders and society at large; • identifying, preventing and mitigating their possible adverse impacts
- 43. samedi 13 février2016 43 43 4343 International Conventions & Agreements between signatory states Guidelines for the Business
- 44. samedi 13 février2016 44 44 4444 Standard ISO 26000 Mandatory further reading on Moodle "Mieux comprendre la norme ISO 26000" in: Lecomte & Adary: L’ISO 26000 en pratique : Faire de la responsabilité sociétale un levier de performance pour l’entreprise , Dunod, 2012 • First international framework proposed for the design and implementation of the corporate CSR/SD policy • A voluntary and non certifiable standard – No certification by a third party certification body – Preventing the risks of CSR/SD-based trade discrimination (towards Southern countries products & services)
- 45. samedi 13 février2016 45 45 4545 Corporate social responsibility The responsibility of an organization for the impacts of its decision and activities on society and the environment, through transparency and ethical behavior that: • Contribute to sustainable development, including health and welfare of society • Takes into account the expectation of stakeholders • Is in compliance with applicable law and consistent with international norms of behavior • Is integrated throughout the organization and practices in its relationship
- 46. samedi 13 février2016 46 46 4646 Synthesis: • CSR is the lever used to change and transform business practices towards more sustainability • CSR expectations are more or less demanding depending the country and its national culture regarding Business & Society • Even if the soft law approach is still dominant, legal constraints increase: • Criminal and civil liability (scope, fines & damages) • Accountability requirements
- 47. samedi 13 février2016 47 47 4747 4 Areas of Corporate Social Responsibility
- 48. samedi 13 février2016 48 48 4848 Principles & Methodology • Accountability – being answerable for decisions and activities and their impacts on society, the economy and the environment – to the organization's governing bodies, legal authorities and, more broadly, its stakeholders • Defining the Scope of action – Explicit the specific CSR of the company – Identify company’s stakeholders and sphere of influence
- 49. samedi 13 février2016 49 49 4949 Sphere of influence « Area where, by its political, contractual or economic relationships, a company is able to affect the decisions or activities of companies, organizations or individuals. » Area of power: the company's ability to guide the behavior and the activity of other actors, without jeopardizing their legal autonomy
- 50. samedi 13 février2016 50 50 5050 Human rights Labour Environment Anti-corruption Human rights Labor Practices Environment Society Economic Products Human rights Labor Practices Environment Community involvement Consumers Operating practices Governance A larger and larger scope…
- 51. samedi 13 février2016 51 51 5151 … that gets very specific Consumers
- 52. samedi 13 février2016 52 52 5252 … and requires more and more accurate and quantitative data Society
- 53. samedi 13 février2016 53 53 5353 Case: impacts et influence of large retailers Human Rights Labor conditions Environment Communities Consumers Operating practices Governance
- 54. samedi 13 février2016 54 54 5454 Synthesis: • CSR is not simply about environmental management and philanthropy. • The whole company is impacted, including its core business activities. • Its responsibility can extend as far as the influence that the company can exert on other companies and other organizations.
- 55. samedi 13 février2016 55 55 5555 5 Corporate CSR policies
- 56. samedi 13 février2016 56 56 5656 CSR impacts on the company OpportunitiesThreats Protests against business practices Lawsuits, Fines & Damages New constraints Costs increase New segments & markets Differentiation /competitors New Business Models Sales increase and lower costs
- 57. samedi 13 février2016 57 57 5757 Compliance • Meeting new constraints • Managing new risks Commitment • Reducing externalities • Creating new sustainable and responsible markets and business models Two perspectives
- 58. samedi 13 février2016 58 58 5858 Compliance Commitment Up to what level? At what cost? … For all competitors?
- 59. samedi 13 février2016 59 59 5959 Level playing field Situation where all the competitors are playing by the same set of rules, with equal opportunities and constraints. • Eliminate the risk of social or environmental « dumping » by competitors not subjected to the same rules and constraints • Prevent unfair competition
- 60. samedi 13 février2016 60 60 6060 Business Case Documented argument that justifies the company’s involvement in a project • Cost of investment • Operating costs • Expected benefits and returns
- 61. samedi 13 février2016 61 61 6161 Top 3 reasons for CSR
- 62. samedi 13 février2016 62 62 6262 The CSR Business Case Image & Réputation Consumers and purchasers Employees and applicants Investors Local and national government Business B to B (responsible purchasing) B to C (responsible consumers) Green Business Risque Anticipating new risks, complaints and jurisprudences and regulations License to operate Finance Better risk management Attracting responsible investors Competitive Advantage Innovation aimed towards rupture, reconfiguration, efficiency and frugality Differentiation and strategic shift
- 63. samedi 13 février2016 63 63 6363 The CSR Business Case Mandatory further readings on Moodle Interview de Paul Polman, CEO Unilever, sur le changement climatique.
- 64. samedi 13 février2016 64 64 6464 Stakes and Impacts Assessment Choice of areas for action Projects Objectives Indicators Implementation Control and Outcomes’ Measurement Communication and CSR Reporting The strategic process Stake- holders Stake- holders
- 65. samedi 13 février2016 65 65 6565 A responsible retailer? Vidéo Mandatory further readings on Moodle Interview de Serge Papin, PDG Système U sur les enjeux RSE de la grande distribution.
- 66. samedi 13 février2016 66 66 6666 The company and its CSR: The Virtue Matrix Rational Commitment Radical Activism Social mimetism Legal ComplianceRisk management Commitment Martin R (2002) : "The Virtue Matrix: Calculating the Return on Corporate Responsibility".; HBR
- 67. samedi 13 février2016 67 67 6767 Why using the Virtue Matrix? To analyze and position CSR strategies • Position at a given time – For a company • Position the CSR policy for each ISO 26000 core issue • Position the CSR policy for each country where the firm is operating – For an industry • Position the industry’s competitors – For a CSR/SD issue or for a country • Position each company, each industry or each core issue • Dynamics of positions – Companies or industries – CSR/SD actions/tools: from commitment to compliance
- 68. samedi 13 février2016 68 68 6868 CSR/SD policies positioning Rational Commitment Social Diversity Eco-design Psychosocial risks Dialogue with NGOs Radical Activism Production relocalization Responsible Supply Chain Human Rights Sustainable Business Models Social Imitation Disabled employees Carbon emission assessment Gender Equaility Green sponsoring Legal Compliance Workplace safety Illegal employment Environmentally-sensitive facilities Risk management Commitment
- 69. samedi 13 février2016 69 69 6969 Trivialization and Regulation Rational Commitment Radical Activisme Social imitation Legal ComplianceRisk management Commitment
- 70. samedi 13 février2016 70 70 7070 Synthesis: • Facing CSR/SD challenges, a company can choose different positionings on each issue, considering the specificities of its industry and its operational activities. • A genuine CSR/SD policy is based on: • a strong commitment on major CSR/SD issues • an actual dialogue with stakeholders • Feedback and corrective loops in case of CSR/SD dysfunction or alert
Editor's Notes
- #2 MAJ du 11/01/2016 21h45 Corrections Maria Castillo
- #20 Des problèmes dont les dimensions dépassent désormais celles d’une seule nation et peuvent mettre en danger des pans entiers de l’humanité et de la civilisation actuelle Issus des comportements et des décisions de dizaines de millions d’acteurs: chefs d’entreprises, élus locaux et nationaux, consommateurs, citoyens Vouloir corriger les effets macros nécessite d’agir au niveau micro: celui des décisions et surtout des critères de décision.
- #21 Opacité Aux USA une douzaine d'Etats américains ont proposé ou adopté des lois criminalisant la dénonciation de pratiques cruelles envers les animaux dans les élevages et abattoirs. Avec quelques différences selon les Etats, ces législations interdisent de filmer ou de prendre des photos secrètement au sein de fermes d'élevage et de postuler pour un emploi dans l'un de ces établissements sans divulguer des liens avec des groupes de défense des animaux – un délit punissable d'un an d'emprisonnement et de 1 500 dollars d'amende en Utah. Elles contraignent aussi les ONG à livrer les vidéos dénonçant des abus aux autorités dans les 24 ou 48 heures qui suivent leur réalisation. Le plus extrême de ces textes, en Arkansas, va même jusqu'à proposer d'interdire à quiconque d'autre que les autorités d'enquêter sur les animaux. En savoir plus sur http://www.lemonde.fr/planete/article/2013/04/11/filmer-la-cruaute-envers-les-animaux-devient-un-crime-aux-etats-unis_3157361_3244.html#AEsBVcvKy8X94oeV.99
- #23 Opacité Aux USA une douzaine d'Etats américains ont proposé ou adopté des lois criminalisant la dénonciation de pratiques cruelles envers les animaux dans les élevages et abattoirs. Avec quelques différences selon les Etats, ces législations interdisent de filmer ou de prendre des photos secrètement au sein de fermes d'élevage et de postuler pour un emploi dans l'un de ces établissements sans divulguer des liens avec des groupes de défense des animaux – un délit punissable d'un an d'emprisonnement et de 1 500 dollars d'amende en Utah. Elles contraignent aussi les ONG à livrer les vidéos dénonçant des abus aux autorités dans les 24 ou 48 heures qui suivent leur réalisation. Le plus extrême de ces textes, en Arkansas, va même jusqu'à proposer d'interdire à quiconque d'autre que les autorités d'enquêter sur les animaux. En savoir plus sur http://www.lemonde.fr/planete/article/2013/04/11/filmer-la-cruaute-envers-les-animaux-devient-un-crime-aux-etats-unis_3157361_3244.html#AEsBVcvKy8X94oeV.99
- #24 Principe 10 La meilleure façon de traiter les questions d'environnement est d'assurer la participation de tous les citoyens concernés, au niveau qui convient. Au niveau national, chaque individu doit avoir dûment accès aux informations relatives à l'environnement que détiennent les autorités publiques, y compris aux informations relatives aux substances et activités dangereuses dans leurs collectivités, et avoir la possibilité de participer aux processus de prise de décision. Les États doivent faciliter et encourager la sensibilisation et la participation du public en mettant les informations à la disposition de celui-ci. Un accès effectif à des actions judiciaires et administratives, notamment des réparations et des recours, doit être assuré. Principe 17 Une étude d'impact sur l'environnement, en tant qu'instrument national, doit être entreprise dans le cas des activités envisagées qui risquent d'avoir des effets nocifs importants sur l'environnement et dépendent de la décision d'une autorité nationale compétente
- #25 Principe 13 Les États doivent élaborer une législation nationale concernant la responsabilité de la pollution et d'autres dommages à l'environnement et l'indemnisation de leurs victimes. Ils doivent aussi coopérer diligemment et plus résolument pour développer davantage le droit international concernant la responsabilité et l'indemnisation en cas d'effets néfastes de dommages causés à l'environnement dans des zones situées au-delà des limites de leur juridiction par des activités menées dans les limites de leur juridiction ou sous leur contrôle. Principe 15 Pour protéger l'environnement, des mesures de précaution doivent être largement appliquées par les Etats selon leurs capacités. En cas de risque de dommages graves ou irréversibles, l'absence de certitude scientifique absolue ne doit pas servir de prétexte pour remettre à plus tard l'adoption de mesures effectives visant à prévenir la dégradation de l'environnement. Principe 16 Les autorités nationales devraient s'efforcer de promouvoir l'internalisation des coûts de protection de l'environnement et l'utilisation d'instruments économiques, en vertu du principe selon lequel c'est le pollueur qui doit, en principe, assumer le coût de la pollution, dans le souci de l'intérêt public et sans fausser le jeu du commerce international et de l'investissement.
- #32 Dans le domaine économique, les partisans de l’autorégulation mettent souvent en avant la vertu de règles définies par les acteurs concernés eux-mêmes, qui feraient appel à leur esprit de responsabilité, alors que les règles imposées par les pouvoirs publics susciteraient chez leurs destinataires une volonté de contournement
- #35 Exemples Écotaxe: susciter une réallocation des choix de transport par la taxe tout en finançant des transports plus durables Création des marchés: droits d’émission carbone
- #36 Teasing sur ce qui sera vu en cours [ou non] Outils: ACV, Ecoconception, [Comptablilté verte…] Technologies: [smart-grid pour un équilibrage local de la production/consommation d’électricité], innovation frugale Business models: éco circulaire, éco de la fonctionnalité…
- #45 L’iSO Regroupe les orga. de normalisation de 163 pays Normes internationales ISO « documents de référence apportant des solutions à des problèmes récurrents, élaborés par consensus » d’application volontaire élaborées par une démarche participative ouverte et transparente (experts + consultation de parties prenante + enquête publique dans certains pays (dont France) décidées par consensus international Types de normes: Définitions Spécifications (caractéristiques et performances) Méthodes d’essais Organisation ne font pas systématiquement l’objet d’une certification (attestation de conformité par un tiers) Vote ISO 26000 Contre: Cuba, Etats-Unis, Inde, Luxembourg, Turquie Abstention: Algérie, Allemagne, Australie, Autriche, Bengladesh, Hongrie, Islande, Iran, Macédoine, Nouvelle-Zélande, Viet-Nam Pour: Chine
- #51 Indiquer SANS DEVELOPPER que le Global Compact est un engagement volontaire, le GRI un référentiel volontaire pour les entreprises qui publient un rapport sur leurs actions RSE/DD et l’ISO un référentiel volontaire pour la définition de politiques RSE.
- #66 Questions: Quels sont les enjeux RSE/DD de la grande distribution alimenttaire en France? Quels sont les enjeux sur lesquels Casino ne semble-pas s’investir?
- #69 Positionnement à contextualiser selon les pays