2. CORPORATE SOCIAL RESPONSIBILITY Companies voluntary integrate care for social issues and environment in their business activities. CSR is good only as a strategic choice

3. 1970s - transnational ethic consumerism  Nestlé (powdered  milk),  Nike (child labor),  L’Oreal (animal experiments),  McDonald’s (symbol of globalization)

5. Tanker Exxon Valdez 1989. polluted Alaska bay 250 000 sea birds kild, 300 seals, 250 eagles, 22 whales Billions eggs of salmons and herrings passive economic damage 2.8 billion dollars Penalty for polution 1,1 billion dolars

6. DEVELOPMENT OF CSR 70’s – Corporate Social Responsibility 1980 - International Union for Conservation of Nature releases the "World Conservation Strategy” 1994 - The term Triple Bottom Line 1998 – United Kingdom – minister for CSR 2000 – Global Compact

8. CLIMATE CHANGE

9. The governance of the corporation is now as important in the world economy as the government of countries James Wolfensohn President, The World Bank Group Corporate Governance

10. Triple bottom line

11. The concept of TBL demands that a company's responsibility lies with stakeholders rather than shareholders. In this case, "stakeholders" refers to anyone who is influenced, either directly or indirectly, by the actions of the firm stakeholdersshareholders

12. COMPANY NGO’sGOVERNMENT LOCAL AND REGIONAL AUTHORITIES INTERNATIONAL INSTITUTIONS MEDIA PROFESSIONAL ORGANIZATIONS EDUCATIONAL INSTITUTIONS BUSINESS ASSOCATIONS OWNERS SHAREHOLDERS INVESTORS UNIONS CSR – CHALLENGE OF COMMUNICATION WITH STAKEHOLDERS

13. DIALOGUE WITH GOVERNMENT COMMUNITY BUSINESS PARTNERS BASIC BUSINESS ACTIVITES INFLUENCE OF BUSINESS = risk or oportunity? Izvor: Amnesty International i Prince of Wales Business Leaders Forum (1999)

14. GLOBAL COMPACT (UN) Strategic policy initiative for businesses respecting ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption 135 countries 6000 signatories CROATIA – 79 signatories Annual reportings

15. Precautionary approach Greater environmental responsibility Environmentally friendly technologies Environmental Principles Rio Declaration on Environment & Development

16. Make sure corporations are not complicit in human rights abuses Support and respect human rights within business sphere of influence Human Rights Principles Universal Declaration of Human Rights

17. Freedom of association and collective bargaining Elimination of forced & compulsory labour Abolition of child labour Labour Principles ILO Declaration on Fundamental Principles and Rights at Work Elimination of discrimination

18. Businesses should work against all forms of corruption, including extortion and bribery. Anti-Corruption Principle United Nations Convention Against Corruption

19. OUR PARTNERS BUSINESS COUNCIL FOR SUSTAINABLE GROWTH CROATIAN CHAMBER OF ECONOMY NGO’S UNIONS UNIVERSITIES CONSUMERS ASSOCIATIONS COMPANIES BANK ASSOCIATIONS MEDIA LOCAL ASSOCIATIONS GOVERNMENT

20. WHAT DO WE DO? GREEN OFFICE WORKSHOPS FOR COMPANIES VOLUNTARY ACTIONS CSR INDEX – ANNUAL AWARD TRANSFERING KNOWLEDGE TO SME ASSISTANCE WITH REPORTING

21. GREEN OFFICE PROJECT USING OFFICE EQUIPMENT IS MORE EXPENSIVE THAN BUYING IT HEATING <1-2 DEGREES = 5% SAVINGS <5 DEGREES = 15% SAVINGS PRINTERS – TWO SIDE PRINTING, RELOADING CATRIDGE BETTER PRINTERS – SAVINGS UP TO 45% IN 5 YEARS SAVING BULBS – SAVINGS UP TO 70% IN 4 YEARS COMPUTERS ON STAND BY…

22. GAINS FROM CSR 11 OF 16 BIGGEST CROATIAN COMPANIES ARE GLOBAL COMPACT SIGNATORIES BETTER IMAGE SKILLED AND EDUCATED EMPLOYEES HIGHER MOTIVATION LOWER RISKS SUSTAINABILITY ENERGY SAVINGS

23. GOOD PRACTICES IN CROATIA HIGH PENALTIES FOR ENVIROVMENT ENDANGER HIGH PENALTIES FOR CORRUPTION EMPLOYERS HAVE TO PROVE THAT THEY DIDN’T DISCRIMINATE WORKERS COLLECTIVE AGREEMENTS GOOD PRACTICES FROM FOREIGN COMPANIES CORPORATIVE PHILANTROPHY EDUCATION FOR EMPLOYEES

24. GOOD EXAMPLES – human resources DROGERIE MARKT – 14 salaries the most desirable employer DUKAT – 3 years education for young employees (plus CSR educiation) education of managers (plus CSR education) IT education for workers, tehnical skills, languages cooperation with Agronomics university – education of subcontractor in milk production internal transfer of knowledge

25. GOOD EXAMPLES – human resources BELUPO Reward “Employer – partner” 1,500 euros for parturient woman Financing students of pharmacy Education of managers, career development, teambuilding

26. Corporate Social Responsibility?

27. GOOD EXAMPLES – PHILANTROPY ZABA, T-HT ADRIS FOUNDATION KNOWLEDGE AND INOVATIONS (EDUCATION OF STUDENTS) CREATIVITY (ARTISTS CREATIVITY) ECOLOGY AND HARITAGE (ENVIRONMENT PROTECTION) DONATING HUMANITARIAN PROJECTS AND HELPING CHILDREN WITHOUT PARENTS

28. GOOD EXAMPLES - ENVIRONMENT VETROPACK STRAZA Modern SANITARY DUMP (1997.) The only purification machinery for all glass waste in Croatia (1999.) News glass furnaces – reducing CO2 emission Since 2003. revenue from selling secundary waste is bigger than expenses for waste charge

29. GOOD EXAPLES – HUMAN RAIGHTS AND SOCITEY PROGRESS SMS Flexibility to needs and iniciatives of local communities Employing of marginalized groups (invalids, single parents, older workers) Fund for young people without parents Revitilazing of after-war communities

30. Case Study: Ethical Dilemmas Scenario One – patriotism vs. price? You are the managing director of a retail company (supply of children’s jackets for resale). You have received a quote from a Iraqi company for 5 dolars per jacket and from an Albania-based company for 3 per jacket. Your company has a reputation for being very patriotic and buying locally. Which of the quotes would you recommend that your head buyer accept?

31. Case Study: Ethical Dilemmas Scenario Two – labour practices vs. price? Your chief buyer has received a quote from a Iraqi company for 5 dolars per jacket and from a unknown Pakistan-based company for 3 dolars per jacket. However, the Iraqi News Agency has recently reported on problems with child labour in the Pakistan garment industry. Your company has a reputation for excellent workplace practices. Which of the quotes would you recommend that your head buyer accept?

34. THANK YOU!!!