1. Sustainable management Metropolia, Business Ethics IP week
6 CSR and Sustainable Development

2. Can CSR deliver SD?
To what extent does CSR deliver Sustainable Development?
John Elkington
Author of ‘Cannibals With Forks’, 1998
Inventor of Triple Bottom Line
"Is it progress if a cannibal uses a fork?"
Triple Bottom Line = People, Planet, Profit

3. CSR delivers SD? World Economic Forum 2006 annual summit:
“Get ready for radical disruption of markets, societies and ecosystems”
Visited by 735 CEO’s
CSR: It is about capacity to thrive and survive in a very different operating environment
According to business itself (WEF)

4. Corporate Social Responsibility
Responsibility towards:
Consumers
Employees
Environment
Business partners (chain responsibility)
Lecture of today

5. CSR: Responsibility towards:
Consumers (John F. Kennedy, 1962)
The right to be safe
The right to be informed
The right to choose freely
The right to be heard
Employees (ILO standards, 175 member states)
Freedom of association
Elimination of all forms of forced/compulsory labour
Abolition of child labour
Elimination of discrimination (in employment and occupation)
Consumers: Speech of John F. Kennedy to the U.S. Congress 1962, later called The Consumer Bill of Rights.
ILO. (2009, June 12). Rules of the Game: a brief introduction to International Labour Standards (Revised edition 2009). Publication, . Retrieved December 29, 2009, from

6. CSR: Responsibility towards:
Environment:
Environmental legislation
Direct regulation (strict + sanctions)
Indirect regulations (pay according to pollution)
Market corrections
Consumers ‘vote with their wallets’
Corporate self-direction
Individual self regulation
Collective self regulation (FSC, MSC)
Environmental convenants
Direct regulation does not stimulate business to go beyond standards
Indirect regulations promotes more innovation
Environmental covenant is a voluntary yet binding agreement between the government and industry
Goodstein, E. S. (2007). Economics and the Environment (5th ed.). Wiley.

7. Chain responsibility
Upstream: You are (partly) responsible for behavior of your suppliers, or at least you support continuation of behavior.
E. g. produced by child labor
Downstream: You are (partly) responsible for behavior of your customer, or at least you facilitate behavior.
E.g. waste disposal of your product

8. Expectations of society
Chain Responsibility
Expectations of society
supplier
producer
wholesaler
retailer
consumer

9. Transparency in CSR As part of disclosure policy
Comparable and in addition to annual reporting
Use Key Performance Indicators (KPI’s) in Social and Environmental matters
Invite 3rd parties to check and benchmark
Responsive to issues, ongoing discussions, and honesty about progress.

10. Stages of CSR Stage 1 Elementary Stage 2 Engaged Stage 3 Innovative
Integrated
Stage 5
Transforming
Citizenship concept
Jobs; profits; taxes
Philanthropy; environment protection
Stakeholder management
Sustainability/Triple Bottom Line
Change the game
Strategic Intent
Legal compliance
Maintain license to operate
Make business case
Integration of value and values
Create new markets/social change
Leadership
Minimal
Supportive
On top of the issues
Ahead of the curve
Visionary
Issues Management
Defensive
Reactive
Responsive
Proactive
Defines the issues
Stakeholder Relationships
Unilateral
Interactive
Mutual influence
Alliances and Partnerships
Multi organizational
Transparency
Enough to protect flanks
Public relations
Public reporting
Assurance
Full disclosure

11. Assignment 5
Find a company listed in Fortune Global 500 (2012), with a recent ( ) CSR report.
Check for Global Reporting Initiative CSR reports the site Corporateregister.com

12. Assignment 5 Quality of CSR
Check the CSR report on quality
Since how long do they report (and yearly)?
What kind of GRI standard/level?
Is it 3rd party audited/checked?
Do they make use of (universal) standards? Like ISO, Fair Trade, labels, LEED, etc.
What kind of framework for CSR is used? (Global Compact, Agenda 21, Earth Charter, etc.)
Are there other quality markers you can think of?

13. Assignment 5; CSR strategy
In what stage is your CSR company?
Check for the 6 factors at which stage the company is. Give overall conclusion.