1. Implementation of CSR strategies in business operations Birgit Errath, Senior Advisor, IBLF birgit.errath@iblf.org

2. 2 International Business Leaders Forum International Business Leaders Forum (IBLF) IBLF puts business at the heart of sustainable development Independent, not-for-profit organisation Set up over 15 years ago Promotes Responsible Business Leadership Works with business, government and civil society in partnerships Promotes the value of cross-sector collaboration Global reach - building on experience since early 90s Supported by over 100 of the world’s leading businesses and reaches millions of employees worldwide Aim to Challenge, Connect, Change

3. A business case for CSR / CR? Can there be a business case for a concept that people define so differently? Or is it rather a case for a set of action? Is it a mix between a “business case” and doing the “right” thing? Is it about good management? At what level should the business case be defined, ie. company, sector, national? A business case cannot be found, it has to be built!

4. Value drivers for the individual company Source: IMD Study, 2003 (1096 questionnaires, 9 countries, 8 sectors)

6. Corporate responsibility - spheres of influence and stakeholders ENABLING ENVIRONMENT regulations, legislation, fiscal incentives, voluntary guidelines and codes of conduct, public opinion, institutional structures, financing mechanisms, research, training and capacity- building, media, etc. COMMUNITY -Stakeholder dialogue -Partnerships -Employee engagement -Sponsorships -Donations WORKPLACE: -Business standards -Employment creation -Labour standards -Health and safety -Skills training -Diversity and equality -Workplace health MARKETPLACE: -Integrity -Quality -Safety -Reliability -Customer relations SUPPLY CHAIN: -Standards -Shared values

7. Three levels of CR (corporate responsibility) Strategic Philanthropy ComplianceMedium to High Operational Impact Fundamental Strategic and Operational Impact Innovation Sustainable Business Models Provide funding and skills Little Strategic or Operational Impact

8. Philanthropy to support the competitive context Context for strategy and rivalry Demand conditions Related and supporting industries Factor conditions Availability of high quality inputs: human resources capital resources physical infrastructure administrative infrastructure information infrastructure scientific infrastructure natural resources (ie. water) Presence of capable, locally based suppliers Presence of clusters instead of isolated industries Presence of sophisticated and demanding local consumers Presence of Local policies and Incentives (IP rights, encouragement of investment..) Presence of open local competition Source: Harvard Business Review, Porter/Cramer, 2002

9. Sphere of influence context Workplace Marketplace Community / policy Factor conditions The Cisco Networking Academy: web-based curriculum to train students in network administration SCJohnson: “Sustainable Racine” – turn location into a more attractive place to live and work Coca Cola/WWF: preserve fresh water basin, cut water usage in supply chain Demand conditions Apple Computer: donating equipment to schools Related and supporting industry American Express: funding of Travel and Tourism Academies BP supporting SME development centers Context for strategy and rivalry WEF Partnering against corruption intiative

10. Vision results enablers Reporting Resources Processes Innovation Policies Strategy Leadership Empowerment Impact on value chain Impact on people Impact on society The Global Compact Performance Model 4 Levels of Integration Vision what organization do we want to become? Are we Built to Last? Enablers Who will get us there and by which means and practices? Results what improvement and impact will we make? Reporting how do we measure and communicate our achievements?

12. Thank you for your attention