Presentation on theme: "Corporate Social Responsibility"— Presentation transcript:
1 Corporate Social Responsibility StabsabteilungWirtschaftspolitikCorporate Social Responsibility& Diversity Managementby Andreas SchneiderAustrian Economic Chamber
2 Historical Development of CSR 1950´s: First scientific discussions on CSR in USA.1953 Bowen: “Social responsibility of businesses has to orientate on social expectations and values.”1970’s: Companies seen as a part of the society have also rights and duties as others and in order to benefit from nonmonetary social achievements they should act responsible. Due to ethical reasons they should take the responsibility on their impacts on the society. Basic-idea for CSR.since mid of 90´s discussions in Europe (esp. GB, GER & F)2001 Green Paper European CommissionParalell discussion on sustainability1987: Brundtland Report – “sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs”1992: Conference in Rio1999: World Economic Forum in Davos – Kofi Annan appeals for a Global Compact for human rights, working standards and environmental protection2002: Johannesbourgh – Rio follow up
3 CSR Historical Development & Evolution XXI Century: Modern understanding of CSREnvironmental1970SocialEconomicGlobalization“There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game” (Milton Friedman 1970)
4 Background of CSR: Globalisation National states are still important but no longer omnipresent rule-enforcers and monopolists of ‚public goods‘
5 What is CSR ? Definitions No common definition in scientific literatureEU-Green paper (2001) defines CSR as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”World Business Council for Sustainable Development (2000) defines CSR as “the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society to improve their quality of life.”CSR is a wide and crossover-concept
6 What is CSR ? Vision for the Society: „Sustainable Development“ Managementtool for the Economy: Corporate(Social) Responsibility = Corporate SustainabilityCivil SocietyPoliticsCompaniesCorporate ValuesCitizensCorporate GovernanceCorporate CitizenshipCustomersEthical ResponsibilitiesObjective: economic success with social responsibility
7 The future -3 dimensions in balance Managing the Future with CSRenvironmenteconomysocietySustainably successful economic development needs an intake environment and social peace.Longterm solutions to environmental problems are possible only within a healthy economy and healty society in the presence of reduced poverty.The realisation of societal values and an acceptable balance between north and south as well as fortunate and less fortunate is best achievable in the presence of global economic growth and sound environmental fundamentalsThe future -3 dimensions in balance
8 Sustainable econicical ecological & social advantage risk minimationvalue increasingsometimes also a reduction of costsStrenghtening its´ marketpositionBetter Imageeconomical responsibilityEcolocial responsibilitynew cultur within corporationsmore confidenceSocial responsibilitybetter working conditionsmotivated staffUniqueness (unique selling position - USP)„Benefit instead of Profit“
9 The Pyramid of CSR – the more the better for all of us Win – Win SituationCSR as MissionNot “doing good while doing bad”
10 5 Steps of CSR-Engagements “Some organizations look even further ahead and think about metastrategy: the future role of business in society and the stability and openness of global society itself.”5. Step: Be a good corporate citizen„Wir müssen dafür sorgen, dass sich alle engagieren.“4. Stufe: Strategische Ausrichtung3. Stufe: CSR als Managementaufgabe„Es bringt uns einen Wettbewerbsvorteil.“„So ist eben das Geschäft.“2. Step: Erfüllung der Forderungen1. Step: Defensive„Wir tun nur das was notwendig ist, aber nicht mehr.“„Es ist nicht unsere Aufgabe, das in Ordnung zu bringen.“Source: Zadek 2004, S. 127
11 Corporate Social Responsiblity – two directions of strategies growing public pressuredefensiveinvestive- principle of legality- avoidance of negative publicity- Compliance strategies- strategic management- competitive advantages through integration of economic and social objectives- Citizenship strategies
12 CSR and Sustanability within the Company PassiveUnternehmen wartet ab, bis sich der Druck von Seiten der Anspruchsgruppen erhöht.Kein aktiver ZugangReaktiveÖkologische und gesellschaftliche Risken, die den Wert oder Ruf des Unternehmens beschädigen könnten, werden verhindert-Risiko-minimierungAktiveDas Unternehmen erkennt, dass CSR und Nachhaltigkeit Chancen am Markt bieten. Neue Produkte, Technologien und Geschäftsfelder entstehen. Intern entwickeln sich Organisation und Management auf innovative Weise weiter.InnovationProaktiveDas Unternehmen gestaltet mit seinen Anspruchsgruppen zukunftsfähige Formen des Wirtschaftens. Daraus resultiert eine enge Beziehung zu den Stakeholder, was dem Unternehmen Wettbewerbsvorteile verschafftInnovation and responsibilityNutzen & Praxis
14 Stages of Corporate Citizenship Stage 0: CompliantStage 1: EngagedStage 2:InnovativeStage 3: IntegratedStage 4: TransformingCitizenshipConceptJobs, Profits & TaxesPhilanthropy, Environmental ProtectionResponsible to StakeholdersSustainability or Triple Bottom LineChange the GameStrategic IntentLegal ComplianceReputationBusiness caseValue PropositionMarket Creation or Social ChangeLeadershipLip Service,Out of TouchSupporter,In the LoopSteward,On Top of ItChampion,In Front of ItVisionary,Ahead of the PackStructureMarginal:Staff drivenFunctionalOwnershipCross-Functional CoordinationOrganizational AlignmentMainstream:Business DrivenIssues ManagementDefensiveReactive,PoliciesResponsive, ProgramsPro-Active,SystemsDefiningStakeholder RelationshipsUnilateralInteractiveMutual InfluencePartnershipMulti-Organization AlliancesTransparencyFlank ProtectionPublic RelationsPublic ReportingAssuranceFull Exposure
16 Stakeholders and Issues and Consequences Stakeholder: “an individual, community or organisation that affects, or is affected by, the operations of a company / NGO. Stakeholders may be internal (e.g. employees) or external (e.g. customers, suppliers, shareholders, financiers, the local community). For strategic planning and acting it is necessary to know the different groups of stakeholders as accurately as possible and in order to meet their needs and impact on the company to analyze their aims and the relationship to the companyTransparencyIncreasing Importance of Reputation ManagementIncreasing Importance ofStakeholder RelationsEnvironmentSourcingSuppliersCustomersEconomic DevelopmentDiversityCommunities & Interest GroupsShareholdersCSRPartnershipsHuman RightsEmployeesGovernmentsEthicsSustainable DevelopmentAn Institutional RevolutionIncreasing Importance of Ethics ManagementWork-life
18 Das ist beim KAUF von PRODUKTEN - Durch-schnittliche Note Importance of ethical production for the decision of buying the productDas ist beim KAUF von PRODUKTEN -Durch-schnittliche Note1,41,52,6Quelle: IMAS-Repräsentativumfrage 2004
19 CSR within the Austrian Economic chamber as an employer Being an example for members:Education schemes for employees,life work balance,health at work,works council,corporate volunteering,social sponsoringActive Diversity managementSustainable procurement, energy saving investmentsExpanding stakeholder dialogue etc.Etc.
21 What do we mean by diversity? Recognising diversity means understanding how people’s differences and similarities can be mobilised for the benefit of the individual, the organisation and society as a whole.Complying with legislation is only a first step. By looking at how the diversity of people can be mobilised to create value and advantage, they can take another step to becoming “organisations of choice”. Many people now recognise that valuing and pursuing diversity is vital for organisations and individuals.But having a diverse workforce does not automatically translate into positive benefits. Diversity must be effectively managed to reap the diversity “dividend”.
22 What are possible benefits of managing diversity effectively? Recent research shows how creating and managing a diverse organisation can provide real benefits.Diversity management strategies can help to create a link between the internal and external aspects of the work of an organisation. Whilst each organisation needs to work out its own priorities, these benefits can include:> Attracting, recruiting and retaining people from a wide “talent” base.> Reducing the costs of labour turnover and absenteeism.> Contributing to employee flexibility and responsiveness.> Building employee commitment, morale and “discretionary effort”.> Managing better the impact of globalisation and technological change.> Enhancing creativity and innovation.
23 Diversity Management: The Business Case VolkswagenThe Global Business Coalition on HIV/ Aids (NY) appreciated the Information an Trainingprogramme of VW in combating Aids in South Africa with the”Business Exellence in the Workplace” Award.
24 Intentions on interest management K. Thomas My interestCommands!(EGO)competeagreecolaborateI am not interested(INDIFFERENT)avoidletNo interest on others pointDeeply interested on others point
25 Thank you for your attention! Andreas SchneiderAustrian Chamber of Commerce (WKÖ)
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