CSR The new standard for enterprising in the 21 st century RSM alumni Willem Lageweg 7 february 2007 CSR Netherlands

Contents CSR is about innovation and ethics Who and what is CSR Netherlands Reasons, motives and advantages of CSR Practical examples New markets and products due to CSR Beyond CSR

Important moments in the history of CSR 1973 Club of Rome 1987 The Brundtland report 2000 SER-report ‘Winst van waarden’

SER-advice for CSR ‘De corporation creates value in three areas (triple bottom line)’ - People - Planet - Profit Stakeholder dialogue Transparency and responsibility

CSR Planet People Profit The corporation of the 21 st century

Problem sharing/business ethics People, planet and profit are not always in line Code of conduct Make cases and dilemmas discussable Ethical assessment method Commission Ethics headed by a member of the board of directors Importance of internal communication “with great power comes great responsibility”

Some ethical issues faced by Rabobank The financing of soya cultivation in the tropical rainforests of Brazil Real estate transactions by customers with a questionable reputation Financing coffee shops Wealthy Arab customer who does not want to be helped by a woman Female employees with head scarfs

CSR is innovation! Process innovation Product innovation New markets Finance innovation Marketing and communication innovation Governance innovation Etc.

National CSR network (sharing knowledge, experiences etc.) More than 275 partners (companies, NGO’s, consultants etc.) Focus: stimulating CSR among entrepreneurs (especially SME’s) The national CSR portal ( CSR Netherlands

Our ambition CSR from niche to mainstream

Programs at several levels Sector (cooperation with trade organizations) Regional (cooperation with chambers of commerce and municipalities) International (country studies/toolkits) Supply chain Business issues (marketing, procurement, transparency, HR, communication, etc.)

Cooperation with trade organizations

Cooperation with chambers of commerce

Starters tips

(China, India, Russia, Brazil, South Africa, Indonesia)

Leaflets about CSR and specific business items (transparency, procurement, marketing, HRM etc.)

Our ecological footprint In 2050 we need two planet Earths to feed and serve human kind

Ecological footprint per person USA 9,5 ha The Netherlands 4,4 ha Afghanistan 0,1 ha World average 2,2 ha Available 1,8 ha

CO 2 -emission temperature

Many reasons for the rise of CSR Recalcitrant/repositioning governments Information society and global village Healthy life Competitive power Labor participation and quality Livability Poverty, inequality, human rights Etc.

Three motives for CSR Because we have to Because it pays Because we should

CSR pays

CSR: because it pays (2) Reduction of costs Image and differentiation advantage (public; labor market; consumer market; government) Company pride and – loyalty employees New products and new markets The new ‘level playing field’

Market for CSR (1) Cultural creatives, a market segment that is growing and has purchasing power Amounts up to 15-25% of the market (> 1.6 million customers) Important items: authenticity, ecology, non- discrimination, non-materialistic and livability

Key elements cultural creatives CCNL Willingness to pay more8653 Worried about behavior of large corporations 9776 Interested in exotic cultures and their traditions 9166

Market for CSR: small first movers

Market for CSR: mainstream

Strategic value

CSR in the world of SME’s Van Dorp Installaties Klostermann installatietechniek Drukkerij Wedding Eosta groothandel groente en fruit Ecostyle meststoffen en gewasbescherming Valid Express koeriersdiensten Gulpener bier Gubba internetshop Camping Thyenkamp Dagblad Trouw

CSR in SME’s (2) Antropia congrescentrum Happy shrimp farm (garnalenteelt) Bouwcarrousel sloopbedrijf Willems bouwbedrijf Hermadix coatings 2012 architecten Green Wheels autoverhuur Brennels kleding Windunie Van Udenhout autodealer

CSR – media

An integrated approach Communication Investment and Fiance strategie Vision & Mission Norms & Values ProductsDistribution HRM Internal policies strategie ‘walk your talk’ walk your talk

CSR and the Rabobank verantwoording afleggen; openheid; overleg en dialoog; sponsoring; issue-management kantoorsluitingen; service in zorgcentra; kantoren in belastingparadijzen; microkredieten in ontw.landen energie- en afvalbeleid; inkoopbeleid (mensenrechten; duurzame producten) diversiteit; ARBO; employability; sabbatical leaves; beloningsregelingen; lease auto’s gedragscode per productcategorie; criteria voor kredietverlening; starters; nieuwe Nederlanders; intensieve veehouderij; dierenwelzijn; mensenrechten; beleggen; groenfondsen; fiscaliteit fusies en allianties; landenbeleid (mensenrechten); 3 beleidskompassen (klant, medewerker, financieel); winstbestemming communication Investment and fiance visie & missie normen & waarden (o.a. 26 codes) Products and servicesDistribution HRM Internal policies strategie walk your talk

Current CSR topics (1) CSR in core business ( PM Philips has already 2 billion euros sales of green products) Production chain agreements/ sustainable purchasing (PM Government to 100% sustainable procurement by 2010) Climate neutral (PM Interface climate neutral in 2020) New partnerships (PM Super de Boer/ Stichting Natuur en Milieu and OxfamNovib: Mc Donalds and Greenpeace)

Current CSR topics (2) Consumer information (convenience and pleasure) (PM I chose deliberately products form Unilever, Campina and Friesland Dairy Foods) Transparency/responsibility (PM Banks and investors demand more and more CSR-information) Leadership (PM Hans Weijers from Akzo) CSR part of the rewarding system (PM Shell, Rabobank)

Future of CSR From: Reputation and risk management (control) To: New products and new markets (innovation)

Shareholder Value Model

Examples of ‘new’ CSR markets Sustainable energy (wind, sun, biomass, etc) Climate neutral production Sustainable designing, building and installation Sustainable transport (Greenwheels, hybrid cars, OV bikes, etc) Consultancy services (strategy, engineers, accountants, communication, training, etc) Sustainable tourism and recreation Healthy and fair foods and drinks Financial services (investments, savings, cards, micro credits, etc)

Call by CSR pioneers in SME sector Put sustainability and innovation at the top of our national agenda

Towards a new national Delta plan The Netherlands in 2010 Frontrunner in sustainability* and innovation * people, planet en profit Nederland nu nr 15 (2003: nr 6)

CSR The new standard for enterprising in the 21 st century

Proposition 1 In 2010 the ecological footprint is the most important criterion to judge the CSR performance for especially the larger companies

Proposition 2 Product chain management and climate neutral production are for the larger business community strategically the most important CSR topics for the next few years

Proposition 3 In the next few years people and planet indicators will be as important for the bonuses and other forms of variable elements in the rewarding system as pure financial and commercial results

Proposition 4 The expression CSR will no longer be used after CSR is a regular part of mainstream business at that moment