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Corporate Social ResponsibilityCorporate Social Responsibility- yesterday, today, tomorrow- yesterday, today, tomorrow

Magnus Emfel

The Academy for Worklife Ethics

www.etikakademin.se

ESCOBALT December 13, 2006

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The Academy’s mission

Contribute to competence development in the area of worklife ethics– Academic research and related activities.– Awareness raising, participate in the public debate – Meeting place (e.g. Dialogue forums, courses, seminars,

conferences) for professionals and other stakeholders.

Values base– Humanistic perspective.– Ethics as an individual responsibility for the common good. – Insight and progress through dialogue.

Trustees

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1. CSR yesterday1. CSR yesterday2. CSR today2. CSR today3. CSR tomorrow3. CSR tomorrow

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The emergence of CSR

CSRCSR

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CSR Pioneer’s

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1. CSR yesterday1. CSR yesterday2. CSR today2. CSR today3. CSR tomorrow3. CSR tomorrow

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CSR definitions and concepts

Corporate Social Responsibility (CSR)

Corporate Responsibility (CR)

Social Responsibility (SR)

Corporate Citizenship

Sustainable Development

Code of Conduct

Triple Bottom Line

People Planet Profit (PPP)

Socially Responsible Investing (SRI)

Corporate Governance (CG)

Fair Trade

Social Accounting

Balanced Need Scorecard

Fullständig redovisning

etc…

”… 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 as of the local community

and society at large."

World Business Council for Sustainable Development

CSR: Meeting Changing Expectations, 1999

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Perspectives on CSR

Businessdevelopment

Globalization

Innovation

Philantrophy

Competencedevelopment

Recruiting

Internalculture

Increase revenues

New markets

Branding

Logistics

Public demand

Charity

EfficiencyProduction

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CSR in the business community

Adidas about social and environmental affairs:– ”Leadership, in social and environment terms, means that:

'We are dedicated to socially responsible, safe and environmentally sustainable practices in the company and its supply chain, and to enhancing the value of our brands…”

BP about climate change:– ”Our goal is no damage to the environment; our

challenge is to achieve this while continuing to deliver energy products that support growth and social development around the world.”

Unilever about sustainability– ”We are committed to contribute to sustainable

development. We see this as a hard-edged commercial imperative because we will only be able to maximise shareholder value and prosper in the long-term if we operate in a much more sustainable way.”

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CSR strategy and positioning

Public/legalrequirements

1Meet minimumpublic/legal and

marketrequirements.

2Exceed and drive

public/legalrequirements.

4Exceed and drivepublic/legal and

marketrequirements.

3Exceed and drive

marketrequirements.

Marketrequirements

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CSR support vs. criticism

Pro CSR:

Saves money

Increases producitivity

Increases revenue

Not just a slogan but a way of doing business

Basis for stock valuation

Indicator for well-managed company

New business opportunities

Strategic issue for the Board of Directors

Anti CSR

Limits the market economy’s ability to deliver higher standards of living

Deterioration of the economy

Stems from business critical NGOs

Ignores profitability

Guilt attributing

”threatens prosperity in poor countries as well as rich. It is likely to reduce competition and economic freedom and to undermine the market economy.”

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New CSR standard: ISO 26000

Environment

Human rights

Labour practices

Organisational governance

Fair business practices

Community involvement and social development

Consumer issues

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ISO 26 000, core issues and subjects

Environment – Pollution prevention– Prevention of global warming– Sustainable consumption and land use– Preservation and restoration of

ecosystems and the natural environment

– Respect for future generations

Human rights– Civil and political rights– Economics, cultural and social rights– Fundamental labour rights – Community rights– Labour practices

Labour practices– Occupational health and safety– Dignified working conditions– Human resources development– Worker as a human being

Organisational governance– Inclusiveness– Ethical conduct– Disclosure of information– Respect for rule of law– Accountability

Fair business practices– Promotion of ethical and transparent

activities – Promotion of free competition– Application of fair and ethical supply

and after-supply practices– Respect for intellectual and other

property rights, and respect for users’ interests

– Fight against corruption

Community involvement and social development

– Development impacts – Community involvement– Society development– Philanthropy

Consumer issues– Providing consumers with accurate

and adequate information – Provision and development of socially-

beneficial services and products– Provision and development of safe and

reliable products and services – Protection of consumers’ privacy

www.iso.org

www.sis.se

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CSR resources and support

Amnesty Business Group www.amnestybusinessgroup.se

Business for Social Responsibility www.bsr.org

Business in the Community www.bitc.org.uk

CSR Europe www.csreurope.org

CSRwire www.csrwire.com

Earth Charter Initiative www.earthcharter.org

European Social Investment Forum www.eurosif.org

Global Compact www.globalcompact.org

Global Reporting Initiative www.globalreporting.org

1% for the planet www.onepercentfortheplanet.org

Social Venture Network www.svneurope.com

World Business Council for Sustainable Development www.wbcsd.org

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1. CSR yesterday1. CSR yesterday2. CSR today2. CSR today3. CSR tomorrow3. CSR tomorrow

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Agriculture

Health

Consumption

Energy

Mobility

Markets of the Future

World Resources Institute, United Nations Environment Program and World Business Council for Sustainable Development:

”Tomorrow’s Markets. Global Trends and Their Implication for Business” (2002)

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External driving forces

Socially Responsible Investing, SRI

… is investing that is mindful of the impact those investments have on society. SRI traditionally combines investors' financial objectives with their concerns about social, environmental, ethical (SEE) and governance (G) issues.

European Social Investment Forum(www.eurosif.org)

€ 1 trillion

European SRI market (2006)

www.eurosif.org

$ 31 trillion

Carbon Disclosure Project (2006)

www.cdproject.net

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Sustainable business strategies

Seeking opportunities and managing risk.

Forum for the Future (U.K.), Centre for Sustainable Investment and Henderson Global Investors

“Assessing business sustainability” (2002)

Industries of the future

Gatekeepers Sensitive Controversial Extreme

Renewable energy

Finance Pharmaceuti-cals

Automobiles Alcohol

Education Retail Construction Chemicals Tobacco

Mass transport Leisure Engineering Mining Gambling

Health care Telecomms Forestry Fossil fuels Nuclear

Waste management

Media Food and beverage

Air travel Military

Water

Opportunity Risk

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Pioneers for the Future

Interface Carpets (1973): – World leader in floor tiling.– 40% market share.– Imitates the closed loop of nature’s

eco-system.– Market cap 2006, Nasdaq: $ 823 million.

Evergreen Solar (1994): – Worlds largest manufacturer of modules

for photovoltaic energy production. – $ 3 million invested 1996 – Market cap 2006, Nasdaq: $ 585 million.

Toyota Motor Co. (1937)– Hybrid vechicle market leader since 1997 – >20 000 hybrid cars/year in Europe.

… or maybe the Hypercar?– Hydrogen fuel cells, ultralight construction.– 3-5 times better fuel economy

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Triple Logic Business: Switchpower

www.switchpower.se

A clean alternative for everyone.

www.triplelogic.se

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-13 "... CSR can be much more than a cost,

a constraint, or a charitable deed - it can be a potent source of innovation and

competitive advantage."

Michael E. Porter & Mark R. Kramer, Harvard Business Review, December 2006

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-13 -Thank you!-Thank you!

Magnus Emfelmagnus.emfel@etikakademin.se, +46 708 585 505

The Academy for Worklife Ethics

www.etikakademin.se