Background information for 3rd year students of the Faculty of Accounting, Finance and Marketing, University of Aruba, project: Corporate Social Responsibility (Aruba).

1. National Integrated Strategic Plan (NISP) Developingthe Aruban economy through sustainable entrepreneurship March 1st , 2011 Edward Erasmus MA

3. Explain some concepts

5. Getting started… Three key questions… What is sustainability? What is corporate social responsibility (CSR)? Why is CSR so important nowadays for business and social development? In your own words…….

6. Sustainable Development “Development which meets the needs of the present, without compromising the ability of future generations to meet their own needs.” - The Brundtland Commission Report

7. Why is sustainability important? Today, we are painfully beginning to learn that environmental resources are limited and are quite sensitive to everything that we do. We are starting to experience the effects of the actions of generations that came before us. To make sure that future generations will not experience worse, we need to be aware of the ideals and requirements of sustainability.

8. “We are living on this planet as if we had another one to go to.” - Terri Swearingen

9. Sustainability: key actors…. Government Community/NGO’s Businesses

10. Neither government, nor NGO’s, instead… Empirical research reveals that entrepreneurs are the key drivers of innovation and social progress. “…they [entrepreneurs] act as engines of growth, harnessing opportunity and innovation to fuel economic advancement.” [Skoll Foundation, 2009]

11. Corporate Social Responsibility(maatschappelijk verantwoord ondernemen) Also known as: sustainable entrepreneurship …..the integration of business operations and values, whereby the interests of all stakeholders including investors, customers, employees, the community and the environment are reflected in the company's policies and actions.

12. Why practice CSR? Companies have learned the hard lesson that without a sustainable society, there is no sustainable business…. So in instead of focusing on short-run financial returns…. Companies focus on contributing to long-term societal well-being in which everybody can develop and grow….

13. Some CSR success stories Reduced packaging materials for products Reengineered its logistics by rerouting trucks and save 100 million miles Helped save $200 millions in costs, while reducing fuel consumption (and emission) and lowered disposal costs to landfills

14. Some CSR success stories By investing in employees wellness programs, the company helped save $250 million is health care costs

15. Nos Aruba 2025 Abodicidi awe, nos Aruba dimañan National Integral Strategic Plan (NISP)

17. 35% of workers not born on Aruba

18. 70% of economy tourism-driven

19. Challenge to the environment, culture, identity

20. High quality of life for all citizens at stake

21. Carrying capacity question

24. We respect and live within the natural resources and limits of our island.

25. We must achieve a diversified and dynamic economy (beyond tourism).

26. We honor our culture and values

28. The Sustainability Challenge….

30. Sustainable, high value, responsible and balanced tourism;

31. Improved flexibility, efficiency, productivity and equity of markets and economy;

32. Opportunities for new business ventures both within and outside existing industries;

34. Nation of Innovation

35. International Financial Center (IFC)

36. Sustainable TourismShared goal: to focus on agendas and opportunities to promote sustainable economic growth and diversification…

37. Some aspiration quotes for 2025 “Increased quality of life based on a balance in the socio-economic sustainability...” “Smart people + smart ideas = nation of innovation” “The financial sector has become the 2nd largest GDP driver of Aruba…” “Un Aruba Dushi Pa Biba ta un Aruba Dushi pa Bishita”

39. Quality of life

40. Spatial planning

41. Financial sustainability

42. Innovative economic environment

43. High-developed human capital

44. Sustainable technology & ICT

45. Sustainable society

46. New economic pillar

47. Advanced infrastructure

48. Highly educated people

49. Excellent int’l network

50. Create vision sustainable tourism

51. Tourism environment

52. Quality physical infrastructure

53. Enriched visitor experience

54. Travel facilities

56. Developing a nation of innovation = Smart people + Smart ideas

57. Enabling the international financial center

58. Sustainable tourism developmentStrategies Increased quality of life High productivity Innovation-friendly environment Aruba in 2025 High-end tourism destination Well-developed new economic pillars Sustainable society (synergy & ‘win win’)

59. Focus of Strategic Economic Growth Promoting capital-intensive and technology-driven activities. Increase efficiency in the labor force and develop/ attract highly skilled workers in such sectors as services, transshipment and/or assembly of high-value, time sensitive goods. New industries should be in harmony with the tourist industry where the quality of the environment and the attractiveness of the island will attract both tourists and visitors to combine business and relaxation when visiting Aruba.

60. Focus of Strategic Economic Growth The growth in the tourism industry should match the needs of the local population (education, labor, social, infrastructure, environment and culture) A diversified and balanced constellation of accommodation

61. Key elements for sustainable economic growth Highly educated workforce Regulations Spatial planning Innovative mindset Efficient & non-bureaucratic government Foreign Investment Platform Awareness programs Incentives Adequate social safety net Sustainable economic growth Improved infrastructure High level of productivity Focus on quality tourism (curbed hotel rooms) Technological know-how Marketable global brand Healthy community Safe and secure environment Excellent international networks/relations Tax treaties and TIEA

62. Entrepreneurship on Aruba

63. Aruba entrepreneurs Competition oriented (no differentiation) Comfort zone (same products on same market) Fear of trying out new things Lack of stimuli Technically challenged (so much more out there)

64. Aruban entrepreneurial reality Too much of the same….

65. Basic conclusion A change in the fundamental entrepreneurial thinking on Aruba should happen quickly, otherwise the small and medium business sector will autodestruct itself through far-going cannibalization… Innovation and sustainable entrepreneurship is the key…

66. “Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” - Barack Obama

68. Waste Separation Plant (Barcadera Free Zone)

69. Project solar panels (Parke Arikok)

70. Hotels are requesting ‘green certification’

73. Internet-based services (e-business)

74. Financial services

75. Export-oriented activities (goods & services)

76. Sustainable food supply

77. Healthcare

78. Culture (?)

80. Examples of business opportunities RETAIL SOLAR AND WIND ENERGY Provision of domestic solar and wind energy solutions LEARNING, RESEARCH & DEVELOPMENT FACILITIES Multi-functional institutions providing high quality and demand-driven learning, research and development programs to the benefit of the community

82. Entrepreneurs and the business community are the key drivers for innovation and progress.

85. QUESTIONS?

86. THANK YOU I wishyou all a pleasantday