Corporate Social Responsibility. Corporate Social Responsibility Corporate Social Responsibility Ethics Ethics Corporate Citizenship Corporate Citizenship.

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<ul><li> Slide 1 </li> <li> Corporate Social Responsibility </li> <li> Slide 2 </li> <li> Corporate Social Responsibility Corporate Social Responsibility Ethics Ethics Corporate Citizenship Corporate Citizenship Corporate accountability Corporate accountability Sustainability Sustainability </li> <li> Slide 3 </li> <li> CSR: Achieving commercial success in ways that honor ethical values and respect people, communities and the natural environment </li> <li> Slide 4 </li> <li> CSR: Addressing the legal, ethical, commercial and other expectations society has for business and making decisions that fairly balance the claims of all key stakeholders </li> <li> Slide 5 </li> <li> CSR includes issues related to: Business ethics Business ethics Community investment Community investment Environment Environment Governance Governance Human rights Human rights Marketplace Marketplace </li> <li> Slide 6 </li> <li> Business Importance: Improved Financial Performance Improved Financial Performance Reduced Operating Costs Reduced Operating Costs Enhanced Brand Image and Reputation Enhanced Brand Image and Reputation Increased Sales and Customer Loyalty Increased Sales and Customer Loyalty </li> <li> Slide 7 </li> <li> Business Importance: (cont.) Increased Productivity and Quality Increased Productivity and Quality Increased Ability to Attract and Retain Employees Increased Ability to Attract and Retain Employees Reduced Regulatory Oversight Reduced Regulatory Oversight Access to Capital Access to Capital </li> <li> Slide 8 </li> <li> Key Developments: Increased Stakeholder Activism Increased Stakeholder Activism Proliferation of Codes, Standards, Indicators and Guidelines Proliferation of Codes, Standards, Indicators and Guidelines More Sophisticated Shareholder Engagement More Sophisticated Shareholder Engagement Accountability Throughout the Value Chain Accountability Throughout the Value Chain </li> <li> Slide 9 </li> <li> Key Developments: (cont.) Transparency and Reporting Transparency and Reporting Growing Government Interest and Action Growing Government Interest and Action Convergence of CSR and Governance Agendas Convergence of CSR and Governance Agendas Growing investor Pressure and Market- Based Incentives Growing investor Pressure and Market- Based Incentives </li> <li> Slide 10 </li> <li> Key Developments: (cont.) Advances in Information Technology Advances in Information Technology Pressure to Quantify CSR Return of Investment Pressure to Quantify CSR Return of Investment </li> <li> Slide 11 </li> <li> External Standards: AccountAbility AccountAbility The Global Reporting Initiative The Global Reporting Initiative Social Accountability 8000 Social Accountability 8000 United Nations Global Compact United Nations Global Compact Organization for Economic Cooperation and Development Guidelines for Multinational Enterprises Organization for Economic Cooperation and Development Guidelines for Multinational Enterprises </li> <li> Slide 12 </li> <li> External Standards (cont.): The Caux Round Table (CRT) The Caux Round Table (CRT) The Global Sullivan Principles The Global Sullivan Principles The Keidanren Charter for Good Corporate Behavior The Keidanren Charter for Good Corporate Behavior APEC Business Code of Conduct APEC Business Code of Conduct </li> <li> Slide 13 </li> <li> Implementation Steps: Mission, Vision, Values Statements Mission, Vision, Values Statements Cultural Values Cultural Values Corporate Governance Corporate Governance Management Structures Management Structures Strategic Planning Strategic Planning General Accountability General Accountability CSR Reporting CSR Reporting Use of Influence Use of Influence </li> <li> Slide 14 </li> <li> Leadership Examples: Chiquita Brands International, Inc Chiquita Brands International, Inc Starbucks Coffee Co Starbucks Coffee Co B&amp;Q B&amp;Q Novo Nordisk A/S Novo Nordisk A/S </li> <li> Slide 15 </li> <li> Interface, Inc Our Goal: to be the first company that, by its deeds, shows the entire industrial world what sustainability is in all its dimensions: People, process, product, place, and profitsby 2020and in doing so we will become restorative through the power of influence. </li> <li> Slide 16 </li> <li> Interface, Inc (cont.) Our Vision: Interface will become the first name in commercial and institutional interiors worldwide through its commitment to people, process, product, place and profits. We will strive to create an organization wherein all people are accorded unconditional respect and dignity; one that allows each person to continuously learn and develop. We will focus on product (which includes service) through constant emphasis on process quality and engineering, which we will combine with careful attention to our customers needs so as always to deliver superior value to our customers, thereby maximizing all stakeholders satisfaction. We will honor the places where we do business by endeavoring to become the first name in industrial ecology, a corporation that cherishes nature and restores the environment. Interface will lead by example and validate by results, including profits, leaving the world a better place that when we began, and we will be restorative through the power of our influence in the world </li> <li> Slide 17 </li> <li> Business and Corporate Accountability </li> <li> Slide 18 </li> <li> Business Importance: Improved financial performance Improved financial performance Heightened public credibility Heightened public credibility Reduced costs Reduced costs Increased attractiveness to investors Increased attractiveness to investors Improved relationship with shareholders Improved relationship with shareholders </li> <li> Slide 19 </li> <li> ..more than 80% of investors would be willing to pay more for the shares of a well-governed company than for a poorly governed company with comparable financial performance. (From a 2000 survey of 200 large institutional investors conducted by McKinsey &amp; Co., the World Bank, and Institutional Investors regional institutes) </li> <li> Slide 20 </li> <li> Business Importance (cont.): Early identification of potential liabilities Early identification of potential liabilities Marketplace advantages Marketplace advantages Improved overall management Improved overall management Improved organizational effectiveness Improved organizational effectiveness Decreased risk of adverse publicity Decreased risk of adverse publicity </li> <li> Slide 21 </li> <li> Key Developments: Growth of CSR Growth of CSR Increased demand for transparency Increased demand for transparency Growth in sustainable reporting Growth in sustainable reporting Greater government regulation Greater government regulation Increased shareholder activism Increased shareholder activism Proliferation of social and environmental reporting standards Proliferation of social and environmental reporting standards Increased media attention Increased media attention </li> <li> Slide 22 </li> <li> Implementation Steps: Set objectives Set objectives Review company materials Review company materials Review management systems Review management systems Engage board of directors Engage board of directors Define and engage stakeholders Define and engage stakeholders Develop formal internal and external communication mechanisms Develop formal internal and external communication mechanisms Engage in continuous improvement Engage in continuous improvement </li> <li> Slide 23 </li> <li> Green Product Design </li> <li> Slide 24 </li> <li> Business Importance: Decreased costs &amp; increased profits Decreased costs &amp; increased profits Decreased production time Decreased production time Customer satisfaction Customer satisfaction Customer retention Customer retention Recognition Recognition Proactive preparation for regulation Proactive preparation for regulation </li> <li> Slide 25 </li> <li> Key Developments: Take-back laws and extended product responsibility Take-back laws and extended product responsibility Updates to existing regulations affecting product design Updates to existing regulations affecting product design Industry/government voluntary initiatives Industry/government voluntary initiatives Industry/NGO collaboration Industry/NGO collaboration Restricted materials lists Restricted materials lists </li> <li> Slide 26 </li> <li> Business Importance: Decreased costs and increased profits Decreased costs and increased profits Decreased production time Decreased production time Customer satisfaction Customer satisfaction Customer retention Customer retention Recognition Recognition Proactive preparation for regulation Proactive preparation for regulation </li> <li> Slide 27 </li> <li> Key Developments: Take-back laws and extended product responsibility Take-back laws and extended product responsibility Updates to existing regulations affecting product design Updates to existing regulations affecting product design Industry/government voluntary initiatives Industry/government voluntary initiatives New systems of commerce New systems of commerce Restricted materials list Restricted materials list Academic programs Academic programs </li> <li> Slide 28 </li> <li> External Standards: Eco-labeling/enviromental certification Eco-labeling/enviromental certification ISO 14000 ISO 14000 Restrictions on use of hazardous materials Restrictions on use of hazardous materials EU directive 94/62 on packaging and packaging waste EU directive 94/62 on packaging and packaging waste Product-specific mandates ond voluntary efforts Product-specific mandates ond voluntary efforts </li> <li> Slide 29 </li> <li> Implementation Steps: Develop business strategies to capture value from lifecycle thinking Develop business strategies to capture value from lifecycle thinking Practice full-cost accounting Practice full-cost accounting Explore reuse options for materials and products Explore reuse options for materials and products Develop markets for green-designed products Develop markets for green-designed products Establish ground rules for product design Establish ground rules for product design Perform analysis during product design and development Perform analysis during product design and development </li> <li> Slide 30 </li> <li> Leadership Examples: Proctor &amp; Gamble (P&amp;G) Proctor &amp; Gamble (P&amp;G) Volvo Volvo Electrolux Electrolux </li> <li> Slide 31 </li> <li> Sustainable Business Practices </li> <li> Slide 32 </li> <li> Sustainable Development: Meeting the needs of the present without compromising the ability of future generations to meet their own needs. (UN Commission on Environment and Development) </li> <li> Slide 33 </li> <li> Business Importance: Access to capital Access to capital New Market development New Market development Asset retention Asset retention Brand image and customer retention Brand image and customer retention Innovation Innovation </li> <li> Slide 34 </li> <li> Key Developments: Increase in sustainability reports Increase in sustainability reports Growth of markets concerned with sustainable products and services Growth of markets concerned with sustainable products and services Strategic partnerships Strategic partnerships Financial markets Financial markets Government-Industry partnership initiatives Government-Industry partnership initiatives </li> <li> Slide 35 </li> <li> Sustainable goals and indicators Sustainable goals and indicators Milestones Are we moving towards our destination or heading in the opposite way </li> <li> Slide 36 </li> <li> Economic Vitality Goal: An economy that is competitive, diverse, and attractive to business; that maintains and expands assets and capital; that provides a variety of entry-, middle-, and high-level jobs; and that promotes the well-being of a community and its workforce </li> <li> Slide 37 </li> <li> Economic Vitality Indicators 1. Per capital Income: Why do we care? Economic well-being one of three axes of sustainability Economic well-being one of three axes of sustainability Disposable income a measure of economic well being Disposable income a measure of economic well being Having the option to make choices a good thing Having the option to make choices a good thing </li> <li> Slide 38 </li> <li> 2. Unemployment Why do we care? Unemployment affects individual and indicates the health of the economy Unemployment affects individual and indicates the health of the economy Communities with high unemployment have increased crime, domestic violence, substance abuse Communities with high unemployment have increased crime, domestic violence, substance abuse Less tax revenue available as resource against Less tax revenue available as resource against social problems social problems </li> <li> Slide 39 </li> <li> 3. Productivity of Labor Why do we care? Measures the value of output relative to the resources used to produce it. Measures the value of output relative to the resources used to produce it. Higher incomes and living standards Higher incomes and living standards More or resources available for reinvestment in growth and the ability to remain competitive More or resources available for reinvestment in growth and the ability to remain competitive </li> <li> Slide 40 </li> <li> 4. Share of Households Below Poverty Line Why do we care? High poverty rates impose costs on welfare systems and slow economic growth of community High poverty rates impose costs on welfare systems and slow economic growth of community Poverty usually occurs along with poor health, decreased economic opportunity, higher crime ratesreduce quality of life Poverty usually occurs along with poor health, decreased economic opportunity, higher crime ratesreduce quality of life </li> <li> Slide 41 </li> <li> 5. Energy Efficiency Why do we care? Measures the output of our economy relative to the amount of energy used. Measures the output of our economy relative to the amount of energy used. Major input into productive activity and consumption Major input into productive activity and consumption More efficiency, lower environmental cost More efficiency, lower environmental cost </li> <li> Slide 42 </li> <li> Equity Goal: A more equitable distribution of the positive and negative products of civilization in the community. This includes fair access to healthy environments, good healthcare, quality education, governmental decision- making, economic opportunity, and natural and cultural amenities </li> <li> Slide 43 </li> <li> 6. Why do we care? A society in which everyone feels a welcome and equal participant, where people take ownership, will be more sustainable better able to grow, evolve, adapt A society in which everyone feels a welcome and equal participant, where people take ownership, will be more sustainable better able to grow, evolve, adapt </li> <li> Slide 44 </li> <li> 7. Racial disparities in Infant Mortality Why do we care? High infant mortality is sign that pregnant women and newborns are not receiving adequate nutrition and medical care High infant mortality is sign that pregnant women an...</li></ul>

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