Corporate Social Responsibility: Introduction Social Responsibility: ... Ethics People Contribution ... Corporate Social Marketing Supporting behavior change campaigns. 4

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    Corporate Social Responsibility:Introduction & Definitions

    Suthisak KraisornsuthasineeAssistant Professor

    Faculty of Commerce & AccountancyThammasat University

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    Introduction: CSR

    The Dawn of the CSR EraDrivers of CSRBenefits and ChallengesCSR Definitions and ScopeIssues & Initiatives of CSRFrom Principles to PracticeFuture of CSR: On the Way to ISOOrganizations promoting CSR

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    The Dawn of the CSR Era

    85% of (140 Chief Executives of U.S. based MNCs)believe that sustainable development will be even moreimportant to their business model in five years than it istoday.

    Recent Survey adm inistered byPriceW aterhouseCooper

    International Institute of Sustainable Development

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    The Dawn of the CSR Era

    Overall, respondents see CSR as becoming aneven more important part of business practice fiveyears from now, and will make crucial an necessarycontributions for the betterment of people and theenvironment.

    Business for Social Responsibility and Dutch Ministry of Economic Affairs

    Survey adm inistered atThe European Conference on CSR (Maastricht, Novem ber 7-9, 2004) &

    The BSR Annual Conference (New York, Novem ber 9-12, 2004)

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    Drivers of CSR

    The shrinking role of governmentDemands for greater disclosureIncreased customer interestGrowing investor pressureCompetitive labor marketsSuppliers relations

    Business and Sustainable Development (BSD Global)

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    Benefits of CSR

    Increased sales and market share.Strengthened brand positioning.Enhanced corporate image and clout.Increased ability to attract, motivate, and retainemployees.Decrease operating costs.Increased appeal to investors and financialanalysts.

    Kotler and Lee, 2005

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    and Challenges

    Choosing a social issues.Selecting an initiative to address the issue.Developing and implementing program plans.Evaluation.

    Kotler and Lee, 2005

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    What is CSR?

    Variety of Terms

    Corporate Social Responsibil

    Corporate Citizenship

    Corporate ResponsibilitySocial Responsibility

    Corporate Philanthropy

    Global Citizenship

    Organizational Social Responsib

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    Definitions: Concept

    Philip Kotler & Nancy Lee (2005)

    a commitment to improve communitywell-being through discretionary businesspractices and contributions of corporateresources.

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    Definitions: Practice

    WBCSD (World Business Council forSustainable Development)

    The continuing commitment by business tobehave ethically and contribute tosustainable economic development whileimproving the quality of life of the workforceand their families as well as of the localcommunity and society.

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    Definitions: Practice

    BSR (Business for Social Responsibility)

    achieving commercial success in ways thathonor ethical values and respect people,communities, and the natural environment.

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    CSR ?




    CSR ?CSR ?

    CSR ?

    CSR and Sustainable Developm ent

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    & Ethics


    ContributionTo DevelopmentEnvironment



    e Ci



    Corporate Citizenship

    Corporate Citizenship


    & Ethics

    Local and global environmental qualityCleaner production processesEco-efficiencyEnvironmental Technology

    Product & worker safetyLabor standards

    Human rightsEqual opportunity and access

    Corporate Values and purposeTransparency and accountability

    Tacking corruption

    Enterprise developmentCommunity Investment


    Digital Divide

    The World Economic Forum, 2002

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    Issues: by Value Chain

    CSR The WBCSDs Journey

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    Issues: by Social Ratings

    KLD Social Rating CriteriaCommunityCorporate GovernanceDiversityEmployee RelationsEnvironmentHuman RightsProducts

    KLD Research & Analytics Inc.

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    Cause PromotionsSupporting social causes through promotionalsponsorships

    Cause-related MarketingMaking a contribution or donating apercentage of revenues to a specific causebased on product sales or usage.

    Kotler and Lee, 2005

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    3. Corporate Social MarketingSupporting behavior change campaigns.

    4. Corporate PhilanthropyMaking direct contribution to a charity orcause.

    Kotler and Lee, 2005

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    Community VolunteeringProviding volunteer services in the community.

    Socially Responsible Business PracticesAdopting and conducting discretionarybusiness practices and investments thatsupport social causes.

    Kotler and Lee, 2005

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    From Principles to Practice

    Framework for CSRProvide Leadership

    - Articulate purpose, principles and valuesinternally and externally;

    - Promote business case internally;- Engage the financial sector;- Enter the debate on globalization and the role of

    business in development;

    The 2002 World Economic Forum & BSD Global

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    From Principles to Practice

    Define what it means for your company

    - define the issues;- Agree on companys spheres of influence;- Identify key stakeholders;

    The 2002 World Economic Forum & BSD Global

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    From Principles to Practice

    Make it happen

    - put corporate citizenship on board agenda;- establish internal performance, communication,

    incentive and measurement systems;- engage in dialogue and partnership;- encourage innovation and creativity;- build the next generation of business leaders;

    The 2002 World Economic Forum & BSD Global

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    From Principles to Practice

    4. Be Transparent about it- Agree what and how to measure;- Develop a program for external reporting;- Be realistic.

    The 2002 World Economic Forum & BSD Global

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    Future of CSR: On the Way to ISO

    The International Organization forStandardization (ISO) decided to developstandard for ISO in 2002

    1st Discussion in 2004

    2nd international meeting to draft thestandard in September 2005

    in Bangkok

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    Organizations promoting CSR

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    Thank you for your attention

    Q & A Session

    Corporate Social Responsibility:Introduction & DefinitionsIntroduction: CSRThe Dawn of the CSR EraThe Dawn of the CSR EraDrivers of CSRBenefits of CSRand ChallengesWhat is CSR?Definitions: ConceptDefinitions: PracticeDefinitions: PracticeScopeScopeIssues: by Value ChainIssues: by Social RatingsInitiativesInitiativesInitiativesFrom Principles to PracticeFrom Principles to PracticeFrom Principles to PracticeFrom Principles to PracticeFuture of CSR: On the Way to ISOOrganizations promoting CSRThank you for your attention


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