The EM & CSR Sandor Kerekes Anju Mathew and Neil Miller

Discussion objectives: Whether engaging in CSR is just a means to maintain a company’s competitive viability... or it is an end in itself? –Companies are engaging in CSR not only to gain competitive advantages but to also improve the society and environment. When operating at the corporate level a buisness advantage is prefered but down at a local level CSR focuses on needed changes, which are not necessarily business driven. Does an inherent conflict exist between social and economic objectives or can both contribute to improved competitive advantage? –Both social and economic objectives contribute to improve the companies competitive advantage.

Definition The concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis.” (European Commission) “I would argue that corporate social responsibility is a ‘mind-set’ with fundamentally different concepts of what success is, of who a company is accountable to and of what a company’s identity is. So it is only through a change in managers’ and employees’ ‘mind-sets’ that corporate social responsibility can go from being an organisational means to being an organisational ends or concern.” (Peter Pruzan of Copenhagen Business School)

EM’s role in developing and implementing the CSR strategy of the company Forecast the future trends from environmental and sustainability perspectives To take into consideration the relationship between the company and society in long term To find innovative solutions for the energy and other hot problems To evaluate the company’s strategy, to make a kind of SWOT analysis To be a change agent to help the company move in the right direction, by taking into consideration the interest of the nature and society, By implementing CSR strategies, companies are able to match international standards on environmental regulations thereby allowing access, reputations and credibility to more markets.

Implementation phase Environmental managers should be the voluntary leaders for implementation To be an interface between the company and society Lead the preparation of the CSR and sustainability report Initiate to develop performance indicators for CSR and sustainability activity To develop training for the neigbourhood reducing the risk of the operation

Sample vision and mission statements for the environmental policy at Electrolux (gives framework for the EM) We want our products, services and production to be part of a sustainable society. We are committed to: Designing products to reduce their adverse environmental impact in production, use and disposal. Reducing resource consumption, waste and pollution in our operations. Taking a proactive approach regarding environmental legislation that affects our business. Encouraging suppliers, subcontractors, retailers and recyclers of our products to adopt the same environmental principles as Electrolux. Giving appropriate weight to this environmental policy when making future planning and investment decisions. Setting targets and objectives, within the scope of the environmental management system, to achieve continual improvement and a sustainable development.