Thinking About CSR in Practice: thoughts, tools and examples
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Lecture delivered to the McGill Fasken Executive Program on Corporate Social Responsibility Strategy and Management, May 6-10, Cape Town South Africa. Professor Wayne Dunn, McGill University: Institute for the Study of International Development
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Thinking About CSR in Practice: thoughts, tools and examples
- 1. THINKING ABOUT CSR IN PRACTICE thoughts, tools and examples Corporate Social Responsibility STRATEGY AND MANAGEMENT An Executive Education Program Cape Town, South Africa May 6th – 10th, 2013 Wayne Dunn Professor of Practice in CSR McGill: Institute for the Study of International Development wayne@waynedunn.com Friday May 10th 2013
- 2. Lecture Overview • Discuss and try out some practical tools and approaches (Think Abouts) for assessing and understanding CSR in the field • Industry Social License discussion • Relationship • Value Sustainability • Social Value Return on Investment • Value Proposition • Partners / ODA • Value Creation • Communications • Metrics • CSR as a Catalyst
- 3. Session Objectives • To provide tools and insights for assessing and understanding CSR projects and initiatives? • To help participants be able to think about CSR in a more systematic manner. • To introduce the concept of Industry Social License
- 4. CSR in the OLDEN DAYS Policies & Good Intentions Solving Social Problems
- 5. CSR in the OLDEN DAYS (cont) Community Relations Management Framework Plan ?Results? System
- 6. CSR, No Matter How you Slice It
- 7. How to think about CSR more Systematically • Frameworks and systematic approaches to CSR is still an evolving area, despite a lot of progress over the last 15 years (But,There are no experts!) • We are all learning • No one size fits all • CSR programs and activities can be examined along many dimensions • 3 examples and then look at some of the ways to think about them
- 8. Cameco in Northern Saskatchewan 10.6 16.7 $22.8 $27.9 $44.5 $44.1 $74.5 $93.3 0 10 20 30 40 50 60 70 80 90 100 1991 1992 1993 1994 1995 1996 1997 1998 PurchasesinCAD$Millions Year Cameco Northern/Aboriginal Purchases 1991 - 1998 By 2011 Cameco’s northern procurement evolved into a Northern Preferred Supplier Program that has purchased over $1 billion in goods and services from local vendors and suppliers in northern Saskatchewan since 2004. In 2011 - over $390 million to northern businesses, who provided 74% of all services to its northern mines Labour contracts can work (or not)
- 9. Eldorado Gold in Turkey Doubling of agriculture outputs (crops and livestock Huge changes in literacy, school finishing, girl child education, etc. Changes in Livestock and Products Uşak Province 2006-2012 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 Cattle (hd) Milk (t) Sheep (hd) Red meat (t) Poultry meat (t) 2006 2012
- 10. CSR is more than just social value http://www.corporateknights.com/article/tech-savvy-pepsico
- 11. Some Key Dimensions to Think About Type of Activity • Grants and Donations • Community Social & Development • Training and Education • Local Institutional Development • Local Infrastructure • Employment • Procurement • Community Health • Environment / Natural Capital • Other
- 12. Some Key Dimensions to Think About Relationship • Highly Asymmetrical – Donor/Client • Somewhat Asymmetrical • Symmetrical • Will it/should it change over time?
- 13. Some Key Dimensions to Think About Value Proposition • What Value Gets Created – For Who? • Avoid Zero-Sum situations when possible Value Sustainability • Does the initial investment continue to provide value beyond the investment timeframe Social Value Return on Investment • Not every dollar invested in CSR creates the same level of social value
- 14. Some Key Dimensions to Think About Partners • Who/what benefits from success of this initiative? • What sort of partners would fit with this initiative? (if any) • What value would they receive? Create? (for project and for company)? Shareholder Value Creation • What’s in it for the company?
- 15. More Key Dimensions to Think About Communications • What about this project should be communicated? • Why? How/Where? Risks? Rewards? • What is the CSR equivalent of Greenwashing? Metrics • What metrics would you measure/monitor? • Why?
- 16. CSR and Official Development Assistance (ODA) Millennium Development Goals The Millennium Development Goals (MDGs) are eight international development goals that were officially established following the Millennium Summit of the United Nations in 2000 All 193 United Nations member states and at least 23 international organizations agreed to achieve these goals by the year 2015
- 17. CSR as a Catalyst • CSR projects can act as a catalyst to bring key development partners to the table • Why do this? • Increases available resources (financial, human, organizational, political) • Increases sustainability • Reduces risk • ODA Agencies increasingly interested in
- 18. CSR as a Catalyst for ODA OECD has excellent data (http://www.oecd.or g/dac/stats/recipient charts.htm)
- 20. Social License • Industry Social License • Corporate Social License • Project/Site Social License
- 21. Industry Social License • Oil Sands - Canada • Uranium Mining – Saskatchewan
- 22. Think Abouts Question With all the work that has happened – Why does CSR remains such an issue • Relationship • Value Sustainability • Social Value Return on Investment • Value Proposition • Partners • Value Creation • Communications • Metrics • CSR as a Catalyst • Management Framework • Social License (Project, Corporate, Industry)
- 23. CSR, No Matter How you Slice It
- 24. Session Objectives • To provide tools and insights for assessing and understanding CSR projects and initiatives? • To help participants be able to think about CSR in a more systematic manner. • To introduce the concept of Industry Social License
- 25. In our younger days!
- 27. Extra Slides for Handout The following are extra slides that readers may find useful. The outline a simple method that has been used for gathering and organizing information to help plan and manage CSR projects/activities
- 28. Gathering & Organizing Information on CSR Activities ABC CSR Program Description Short description of the program Objective Stated and/or understood objectives Type of Activity • Grants and Donations • Community Social & Development • Training and Education • Local Institutional Development • Local Infrastructure • Employment • Procurement • Community Health • Other
- 29. Responsibility & Management What dept./position is responsible for the program? How is it currently managed and how does the management integrate with other corporate management systems? Does the success/failure of this program affect the manager’s annual evaluation? How? Consultation and History What, if any, local involvement was there in the design and development of the program? Any other notes on history – when it started, how it came about, successes, failures, developments, etc.
- 30. Budget Current budget including how it is derived (i.e. 3% of something). Also any recent or expected changes to the budget. Value Proposition What groups, individuals, stakeholders benefit from this activity, directly and indirectly? Is there a way to help more to benefit from it? Partners Are there any partners that aren’t covered in the value proposition discussion? How are partners involved? What are their roles and responsibilities? Are they capable of meeting them?
- 31. Community Benefits What are the benefits to the community? Can they be quantified? How? Company Benefits What are the benefits to the company? Can they be quantified? How? Other Beneficiaries Are there other benefits from the program? Who benefits? How? Can they be quantified? How?
- 32. Success Indicators, Metrics, Measuring & Monitoring How is the program measured and monitored? Does it connect to management and corporate objectives? Is the program’s success linked to the management evaluation program? What other, if any, success indicators are there? How is the program reported? To who? Frequency
- 33. Other Think Abouts • Value Sustainability • Social Value Return on Investment • Communications • Metrics • CSR as a Catalyst
- 34. For Additional Information Wayne Dunn Professor of Practice in Corporate Social Responsibility McGill University | Institute for the Study of International Development wayne@waynedunn.com Desk: +1.250.743.7619