Thinking About CSR in Practice: learnings from decades in the trenches

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Lecture delivered to the McGill Institute for the Study of International Development’s Executive Program on Corporate Social Responsibility Strategy and Management, Accra, Ghana, Nov 6, 2013

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Thinking About CSR in Practice: learnings from decades in the trenches

  1. 1. THINKING ABOUT CSR IN PRACTICE thoughts, tools and examples Corporate Social Responsibility STRATEGY AND MANAGEMENT An Executive Education Program Accra, Ghana Nov 4-8th, 2013 Wayne Dunn Professor of Practice in CSR McGill | Institute for the Study of International Development wayne@waynedunn.com Tuesday Nov 5th, 2013
  2. 2. Who is Wayne • • • • Accidental Academic ~25 years of CSR related experience 60+ projects involving about 30+ countries Global background but African focus in last decade • Still learning (sometimes painfully!)
  3. 3. Lecture Overview • Discuss and try out some practical tools and approaches (Think Abouts) for assessing and understanding CSR in the field • • • • Relationship Value Sustainability Social Value Return on Investment Value Proposition • • • • • Partners Value Creation Communications Metrics CSR as a Catalyst • Group Work • Industry Social License discussion
  4. 4. 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
  5. 5. Definitions Corporate Social Responsibility (CSR), Sustainable Development, Social programs, Community Relations Terms are often used interchangeably Definition “CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well of the local community and society at large” Corporate Social Responsibility (Sustainable Development) WBCSD Diagram Financial Responsibility Social Responsibility Environmental Responsibility
  6. 6. Another Definition of CSR Corporate Social Responsibility (CSR) is defined as value creation for business that simultaneously yields more profit and greater social impact, resulting in powerful transformations and opportunities for growth and innovation in both business and society.
  7. 7. CSR in the OLDEN DAYS Policies & Good Intentions Solving Social Problems
  8. 8. CSR in the OLDEN DAYS (cont) Community Relations Management ?Results? Plan Framework System
  9. 9. United Nations Global Compact announced by the then UN Secretary-General Kofi Annan in an address to The World Economic Forum on January 31, 1999, and was officially launched at UN Headquarters in New York on July 26, 2000 “By working together to mobilize sustainable investment in the Least Developed Countries, government, business and civil society give hope and opportunity to the world’s poorest” “lasting and effective answers can only be found if business – working together with other actors including government and civil society– is fully engaged” Kofi Annan
  10. 10. CSR, No Matter How you Slice It
  11. 11. CSR is about value creation not Need to balance interests Charity Value for People Value for Communities Value for Shareholders Value for Governments CSR is a SHARED RESPONSIBILITY
  12. 12. 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 • No one size fits all • CSR programs and activities can be examined along many dimensions
  13. 13. 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 Other
  14. 14. Some Key Dimensions to Think About Relationship • • • • Highly Asymmetrical – Donor/Client Somewhat Asymmetrical Symmetrical Will it/should it change over time?
  15. 15. Some Key Dimensions to Think About Value Proposition • • • • What Value Gets Created – For Who? Who else might benefit? Avoid Zero-Sum situations when possible Education example • • Who benefits Partners / Costs / Value • $50k for 10 seats - $100k = 25 seats
  16. 16. Some Key Dimensions to Think About Value Sustainability • Does the initial investment continue to provide value beyond the investment timeframe • • Community Event Local Supply Chain
  17. 17. Some Key Dimensions to Think About Social Value Return on Investment • Not every dollar invested in CSR creates the same level of social value
  18. 18. Millennium Development Goals Framework for Public/Private development collaboration • Poverty • Health • Education • Equality • Environment Common ground between private sector CSR investments/activities with ODA/Govt priorities
  19. 19. 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)? • PNG AIDS/CIDA Inc.
  20. 20. Some Key Dimensions to Think About Shareholder Value Creation • What’s in it for the company?
  21. 21. Group Work What do we do now? Case Study
  22. 22. 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?
  23. 23. More Key Dimensions to Think About Metrics • Can you manage it if you can’t measure it? • What metrics would you measure/monitor? • Why?
  24. 24. CSR as a Catalyst • CSR projects can act as a catalyst to bring key partners to the table • Why do this? • Increases available resources (financial, human, organizational, political) • Increases sustainability • Reduces risk
  25. 25. CSR as a Catalyst • HIV/AIDS in PNG
  26. 26. CSR Math 1+1=3 (or more)
  27. 27. Social License • Industry Social License • Corporate Social License • Project/Site Social License
  28. 28. Industry Social License • Oil Sands - Alberta • Uranium Mining – Saskatchewan • American chefs signing up to boycott Canadian seafood because of the seal hunt • Nov 4, 2013 - Newfoundland bans fracking pending more research
  29. 29. Think Abouts • • • • • • 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) Question With all the work that has happened – Why does CSR remains such an issue
  30. 30. 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
  31. 31. Extra Slides for Handout The following are extra slides that readers may find useful
  32. 32. 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
  33. 33. 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.
  34. 34. 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?
  35. 35. 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?
  36. 36. 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
  37. 37. Other Think Abouts • Value Sustainability • Social Value Return on Investment • Communications • Metrics • CSR as a Catalyst
  38. 38. 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

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