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Corporate Social Responsibility & Diversity Management by Andreas Schneider Austrian Economic Chamber StabsabteilungWirtschaftspolitik.

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Presentation on theme: "Corporate Social Responsibility & Diversity Management by Andreas Schneider Austrian Economic Chamber StabsabteilungWirtschaftspolitik."— Presentation transcript:

1 Corporate Social Responsibility & Diversity Management by Andreas Schneider Austrian Economic Chamber StabsabteilungWirtschaftspolitik

2 Historical Development of CSR 1950´s: First scientific discussions on CSR in USA Bowen: Social responsibility of businesses has to orientate on social expectations and values. 1970s: 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 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) Globalization Environmental Economic Social XXI Century: Modern understanding of CSR 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 Customers What is CSR ? Corporate Governance Managementtool for the Economy: Corporate(Social) Responsibility = Corporate Sustainability Objective: economic success with social responsibility Companies Vision for the Society: Sustainable Development Citizens Civil Society Politics Corporate Values Corporate Citizenship Ethical Responsibilities

7 The future -3 dimensions in balance 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 Managing the Future with CSR

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

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 Es ist nicht unsere Aufgabe, das in Ordnung zu bringen. Wir tun nur das was notwendig ist, aber nicht mehr. So ist eben das Geschäft. Es bringt uns einen Wettbewerbsvorteil. 1. Step: Defensive 2. Step: Erfüllung der Forderungen 3. Stufe: CSR als Managementaufgabe 4. Stufe: Strategische Ausrichtung 5. Step: Be a good corporate citizen Wir müssen dafür sorgen, dass sich alle engagieren. 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. Source: Zadek 2004, S. 127

11 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 Corporate Social Responsiblity – two directions of strategies

12 CSR and Sustanability within the Company PassiveUnternehmen 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 Economic : 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 IntentLegal ComplianceReputationBusiness caseValue PropositionMarket Creation or Social Change LeadershipLip Service, Out of Touch Supporter, In the Loop Steward, On Top of It Champion, In Front of It Visionary, Ahead of the Pack StructureMarginal: Staff driven Functional Ownership Cross-Functional Coordination Organizational Alignment Mainstream: Business Driven Issues Management DefensiveReactive, Policies Responsive, Programs Pro-Active, Systems Defining Stakeholder Relationships UnilateralInteractiveMutual InfluencePartnershipMulti-Organization Alliances TransparencyFlank ProtectionPublic RelationsPublic ReportingAssuranceFull Exposure

15 Corporate Citizenship – from Top to Bottom

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

17 Stakeholders in a hierarchial relation?

18 Importance of ethical production for the decision of buying the product Quelle: IMAS-Repräsentativumfrage 2004 Durch- schnittliche Note 1,4 1,5 2,6 Das ist beim KAUF von PRODUKTEN -

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 peoples 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 theBusiness Exellence in the Workplace Award.

24 Intentions on interest management K. Thomas compete let avoid colaborate My interest Commands! (EGO) No interest on others pointDeeply interested on others point agree I am not interested (INDIFFERENT)

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

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