Zh.S.Belyaeva CORPORATE SOCIAL RESPONSIBILITY IN ENERGY INDUSTRY Ekaterinburg, 2015

Lecture 4_ Managerial CSR context– responsible leadership and business ethics 1.CEO responsible leadership 2.Business Ethics and CSR Regulations 3.Challenges for Energy Industry

(c)L. Ledoux,2011

Ethical issues for business Product safety standards Advertising contents Working environment Unauthorized payments Employee’s privacy Environmental issues

Sustainable Business Strategy Axes

Integrate CSR Globally Incorporate values to make it part of an articulated belief system Act worldwide on those values –Cause-related marketing –Cause-based cross sector partnerships Engage with stakeholders –Primary stakeholders –Secondary stakeholders

Business Ethics Development The cultural context influences organizational ethics Top managers also influence ethics The combined influence of culture and top management influence organizational ethics and ethical behaviors

The Evolving Context for Ethics From domestic where ethics are shared To international where ethics are not shared when companies: –Make assumptions that ethics are the same –Ethical absolutism—they adapt to us –Ethical relativism—we adapt to them To global which requires an integrative approach to ethics

Emergence of a Global Business Ethic Growing sense that responsibility for righting social wrongs belongs to all organizations Growing business need for integrative mechanisms such as ethics –Ethics reduce operating uncertainties –Voluntary guidelines avoid government impositions Ethical conduct is needed in an increasingly interdependent world — everyone in the same game Companies wish to avoid problems and/or be good public citizens

Ways Companies Integrate Ethics Top management commitment in word and deed Company codes of ethics Supply chain codes Develop, monitor, enforce ethical behavior Seek external assistance

External Assistance with Ethics Industry or professional codes Certification programs, e.g., ISO 9000 Adopt/follow global codes –Caux Round Table Principles –SEDEX

Comparison of European and American Energy Companies

Company environmental impact

Questions and Discussion