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Corporate Social Responsibility

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Presentation on theme: "Corporate Social Responsibility"— Presentation transcript:

1 Corporate Social Responsibility
Stabsabteilung Wirtschaftspolitik Corporate Social Responsibility & Diversity Management by Andreas Schneider Austrian 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 Commission Paralell discussion on sustainability 1987: 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 Rio 1999: World Economic Forum in Davos – Kofi Annan appeals for a Global Compact for human rights, working standards and environmental protection 2002: Johannesbourgh – Rio follow up

3 CSR Historical Development & Evolution
XXI Century: Modern understanding of CSR Environmental 1970 Social Economic Globalization “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 literature EU-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 Sustainability Civil Society Politics Companies Corporate Values Citizens Corporate Governance Corporate Citizenship Customers Ethical Responsibilities Objective: economic success with social responsibility

7 The future -3 dimensions in balance
Managing the Future with CSR environment economy society Sustainably 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 fundamentals The future -3 dimensions in balance

8 Sustainable econicical ecological & social advantage
risk minimation value increasing sometimes also a reduction of costs Strenghtening its´ marketposition Better Image economical responsibility Ecolocial responsibility new cultur within corporations more confidence Social responsibility better working conditions motivated staff Uniqueness (unique selling position - USP) „Benefit instead of Profit“

9 The Pyramid of CSR – the more the better for all of us
Win – Win Situation CSR as Mission Not “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 Ausrichtung 3. Stufe: CSR als Managementaufgabe „Es bringt uns einen Wettbewerbsvorteil.“ „So ist eben das Geschäft.“ 2. Step: Erfüllung der Forderungen 1. 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 pressure defensive investive - 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
Passive Unternehmen wartet ab, bis sich der Druck von Seiten der Anspruchsgruppen erhöht. Kein aktiver Zugang Reaktive Ökologische und gesellschaftliche Risken, die den Wert oder Ruf des Unternehmens beschädigen könnten, werden verhindert- Risiko-minimierung Aktive Das 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. Innovation Proaktive Das Unternehmen gestaltet mit seinen Anspruchsgruppen zukunftsfähige Formen des Wirtschaftens. Daraus resultiert eine enge Beziehung zu den Stakeholder, was dem Unternehmen Wettbewerbsvorteile verschafft Innovation and responsibility Nutzen & Praxis

13 Spheres of Influence: Economic, Political, Social, Ecological
Businesses: Economizing Values Political Government: Power-aggrandizing values Social Civil Society: Relationship values Ecological Natural Environment: Ecologizing

14 Stages of Corporate Citizenship
Stage 0: Compliant Stage 1: Engaged Stage 2: Innovative Stage 3: Integrated Stage 4: Transforming Citizenship Concept Jobs, Profits & Taxes Philanthropy, Environmental Protection Responsible to Stakeholders Sustainability or Triple Bottom Line Change the Game Strategic Intent Legal Compliance Reputation Business case Value Proposition Market Creation or Social Change Leadership Lip Service, Out of Touch Supporter, In the Loop Steward, On Top of It Champion, In Front of It Visionary, Ahead of the Pack Structure Marginal: Staff driven Functional Ownership Cross-Functional Coordination Organizational Alignment Mainstream: Business Driven Issues Management Defensive Reactive, Policies Responsive, Programs Pro-Active, Systems Defining Stakeholder Relationships Unilateral Interactive Mutual Influence Partnership Multi-Organization Alliances Transparency Flank Protection Public Relations Public Reporting Assurance Full Exposure

15 Corporate Citizenship – from Top to Bottom

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 company Transparency Increasing Importance of Reputation Management Increasing Importance of Stakeholder Relations Environment Sourcing Suppliers Customers Economic Development Diversity Communities & Interest Groups Shareholders CSR Partnerships Human Rights Employees Governments Ethics Sustainable Development An Institutional Revolution Increasing Importance of Ethics Management Work-life

17 Stakeholders in a hierarchial relation?

18 Das ist beim KAUF von PRODUKTEN - Durch-schnittliche Note
Importance of ethical production for the decision of buying the product Das ist beim KAUF von PRODUKTEN - Durch-schnittliche Note 1,4 1,5 2,6 Quelle: 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 sponsoring Active Diversity management Sustainable procurement, energy saving investments Expanding stakeholder dialogue etc. Etc.

20 Diversity Management as important part of CSR

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
Volkswagen The 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 interest Commands! (EGO) compete agree colaborate I am not interested (INDIFFERENT) avoid let No interest on others point Deeply interested on others point

25 Thank you for your attention!
Andreas Schneider Austrian Chamber of Commerce (WKÖ)

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