maureen c. shaw world congress – orlando, fl 20051 corporate social responsibility – an...

Maureen C. ShawWorld Congress – Orlando, Fl 2005 1

Corporate Social Responsibility – An International Imperative

XVIIth World Congress on Safety and Health

Orlando, FloridaSeptember 21, 2005

Maureen C. Shaw, President & CEOIAPA (Industrial Accident Prevention

Association)207 Queens Quay West, Suite 550

Toronto, Ontario M5J 2Y3 www.iapa.ca

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Maureen C. Shaw, President & CEOIAPA (Industrial Accident Prevention Association)

1-800-406-IAPA (4272) www.iapa.ca

Corporate Social Corporate Social ResponsibilityResponsibility

– – An International ImperativeAn International ImperativeSeptember 21, 2005September 21, 2005


A World where risks are controlled because everyone believes

suffering and loss are morally, socially and

economically unacceptable

A World where risks are controlled because everyone believes

suffering and loss are morally, socially and

economically unacceptable


•88 years of health & safety

•225 committed, skilled employees

•100 consultants / specialists

•900 Volunteers

•88 years of health & safety

•225 committed, skilled employees

•100 consultants / specialists

•900 Volunteers“Alone we can do so little;

together we can do so much.”

Helen Keller

“Alone we can do so little; together we can do so much.”

Helen Keller


•Consulting & Technical Services

•Training and education

•Integrated Management System

•Over 100 products and services

•Consulting & Technical Services

•Training and education

•Integrated Management System

•Over 100 products and services

“Divide each difficulty into as many pieces as is feasibleand necessary to solve it.”

Rene Descartes

“Divide each difficulty into as many pieces as is feasibleand necessary to solve it.”

Rene Descartes


•Collaborating Centre – ILO-CIS / WHO

•National/International collaboration

•A focus on young and new workers

•Centre of Health & Safety Innovation

•Collaborating Centre – ILO-CIS / WHO

•National/International collaboration

•A focus on young and new workers

•Centre of Health & Safety Innovation “Coming together is a beginning; Keeping together is progress;

Working together is success.”

Henry Ford

“Coming together is a beginning; Keeping together is progress;Working together is success.”

Henry Ford


More than 6,000 people die every day because of the work they do for a living

2.2 million global work related fatalities every year (estimated for year 2001)

Diseases related to work cause the most deaths among workers, hazardous substances cause 438, 489 deaths annually

268 million accidents per year worldwide

World economic losses are equal to 4% of world’s GNP

Estimated Global Occupational Losses

International Labour OrganizationReports:

Source: ILO World Day for S&H at Work 2005: A Background Paper


Corporate Social Responsibility is not the latest bullet or business fad, it is not a

philanthropic idea. It is an international imperative for

both business and the countries we are operating in.


LEADERSHIP INTEGRITY RESPECT COMMITMENT RELATIONSHIPS

IT’S ABOUT RESPONSIBLE CITIZENSHIP

Corporate Social Responsibility in a globalized industrial world is about making the business investment and the community promise sustainable for the company and for the communities we operate in, its people and environment. It demands responsible governance-based principles of:


In “the good old days”, corporate social responsibility meant a gently paternalistic

attitude toward employees, discreet donations towards worthy causes and the company name

on little league hockey or soccer sweaters. Those were the days, assuming they ever really

existed, when growth was good. The Conference Board of Canada asserts that corporate social

responsibility has now become “a vital part of a long-term, comprehensive approach to business

success.”

Traditional Attitudes


Traditional Corporate

Responsibilities

Ensuring Health, Safety, Wellness

& Security of Employees

Management of Natural Resources

Conservation

Minimizing Waste

Recycling

Minimizing Pollution

Compliance with

Regulations & Legislation

Based on European Sustainable Cities Report

Traditional Corporate Responsibilities


Corporate Community &

Workplace Leadership Imperatives

Sharing Best Practices

Mentoring Concern for

Individuals Colleagues & Neighbours

Social Responsibility to

Community & Workplace Activities

Support of Cultural Heritage

Political Influence Locally

NationallyMaureen C. Shaw - IAPA

Leadership Imperatives


“Work is an indispensable basis of society, and furthermore the process of work should be optimized by guaranteeing decent working

conditions for all.”“The goal of the global community should be to guarantee a universal minimum level in working conditions and in occupational safety and health for all working people with the help of global strategies. The goal should be especially, to protect the most vulnerable groups, such as children, migrant workers, disabled people, aging workers, women and illiterate workers.” Dr. Professor Jorma Rantanen, Finnish Institute of Occupational Health

Corporate International Imperatives


Traditional / LegalStructure of Corporations

The legally defined mandate of today’s corporation is to pursue relentlessly and without exception, its own self interest, regardless of the often harmful consequences it might cause to others.

Currently, the most widely-used model in business is the stockholder model, championed by Milton Friedman who said “the business of business is business” .. Basically, profits are everything.


The obstacle to making any significant, broad-based progress in improving

factory health and safety conditions, not to mention wages, hours,

harassment and discrimination in the global economy, is not a lack of guidelines or management CSR

command-and-control systems, or certification schemes. The real

obstacles are:


Lack of political will by corporations to refrain from taking advantage of vulnerable countries and desperate workers.

Lack of political will and perhaps lack of genuine options, on the part of governments in the developing world to enforce regulations and establish new ones.

Lack of resources (financial, informational and political) of sweatshop workers – to know what their rights are, to know how to protect themselves on the job, and to be able to “operationalize” such knowledge.


Ten Drivers of CSR

Reputation and brand management Business risk management Employee recruitment, motivation and retention Access to capital Learning and innovation Cost savings and operational efficiency

In 2002, the Conference Board of Canada examined the rationale behind social responsibility initiatives among Canadian companies. The National Corporate Social Responsibility Report “Managing Risks, Leveraging Opportunities” identifies nine common drivers that are the motivators:


Competitiveness and market positioning

Social licence to operate

Improved relations with regulators

Organizational transformation and continued improvement

Ten Drivers of CSR (Cont’d)


Corporate Citizenship

A diversified technology, media and financial services company with 300,000 employees and customers on more than 100 countries.

An environment, health and safety (EHS) management system that applies to all GE businesses

A consistent expectations of EHS performance at all locations

A standardized compliance auditing and task management that provide consistent reporting and measurement

A supplier compliance program

General Electric (G.E.)General Electric (G.E.)



Dofasco is Canada’s most successful steel producer and a global industry leader with operations in Monterrey, Mexico

For 91 years they have focused on building enduring relationships with customers, shareholders, employees, suppliers and communities.

Committed to the principles of sustainability and corporate social responsibility.

DofascoDofasco



Dofasco is listed on the Dow Jones Sustainability World Index, one of only 13 Canadian Companies. “Sustainability-driven companies achieve their business goals by integrating economic, environmental, and social growth opportunities into their strategies.

Dofasco has been recognized as a top 50 employer in Canada. Received the National Quality Institute Healthy Workplace Award in 2002.

Dofasco (cont.)Dofasco (cont.)



Canada’s largest independent nuclear generating station with 3,600 employees

Achieved 9.6 million hours without an acute lost-time injury

Its corporate values statement reads in part “We will… Always place nuclear safety as the overriding priority Accept personal responsibility for our own and others’

conventional and radiological safety Always take into account the environmental implications of

what we do Always place safety before commercial gain Strive for continuous improvement in safety awareness and

performance

Bruce PowerBruce Power


“Reputation is not yours. Someone else gives it to

you based on your performance.”

Duncan Hawthorne, President & CEO

Bruce Power


While the achievements of the previous organizations are unique to each of them they are not operating in isolation. Many factors and forces are working to help businesses to assume greater CSR. New corporate models:New corporate models: Virtue Matrix corporate model

New International Standards:New International Standards: ISO 26000 social responsibility guidelines

New Legislation:New Legislation: Canadian Bill C-45

New corporate Initiatives:New corporate Initiatives: Canadian CEO Health and Safety Leadership Charter

Growing Support


Leverage Corporate CSR Opportunities

Governance and management practices Human resources management Environment, health and safety Community investment and involvement, and Human rights

Understand the footprint your organization leaves in the world around you the following framework:


Understand your optionsUnderstand your options

Figure out what you can do better. Conduct a cost / benefit analysis of doing things better versus just staying the course and build a strategic plan.

State your intentionsState your intentions

Create a social responsibility policy or adapt existing vision, mission and value statements to reflect your organizational commitment. Involve your best people in the process and demonstrate top-level commitment



Set ExpectationsSet Expectations

Shift organizational efforts from achieving to exceeding the minimum standards set by regulatory agencies. Identify, establish and work towards more ambitious corporate standards of performance

Create your own marketsCreate your own markets

Stimulate commerce and development at the bottom of the World’s economic pyramid – the position of most workers in developing countries.



100

2,000

4,000

Population in millions

$20,000 plus

$2,000-20,000

Less than $2,000

The World Pyramid

Purchasing power Purchasing power in US dollarsin US dollars

Most companies target consumers of the upper tiers of the economic pyramid completely overlooking the business potential at its base – the people at the bottom of the pyramid make up a colossal market

Most companies target consumers of the upper tiers of the economic pyramid completely overlooking the business potential at its base – the people at the bottom of the pyramid make up a colossal market


Set ExpectationsSet Expectations

• Shift organizational efforts from achieving to exceeding the minimum standards set by regulatory agencies. Identify, establish and work towards more ambitious corporate standards of performance.

Create smart partnershipsCreate smart partnerships

• Work with industry groups and/or other organizations to create and promote voluntary standards. Share your own successes with others. Seek out organizations that can help you achieve your social responsibility goals.



Encourage greater accountability at all levels of Encourage greater accountability at all levels of societysociety

Workplaces have to show responsibility, but so do individuals, communities, institutions and governments.

More transparency and accountabilityMore transparency and accountability Just being socially responsible is no longer enough.

Corporations have to make the process visible and accountable. Voluntary reporting is a core component of CSR.



“In organizations, real power and energy is generated through

relationships. The patterns of relationships and the capacities to form them are

more important than tasks, functions, roles, and position.”

Margaret Wheatly Leadership and the New Science


1. Bakan, Joel, The Corporation: the Pathological Pursuit of Profit and Power, Penguin Canada, 2004.

2. GE 2005 Citizenship Report, http://www.ge.com/en/citizenship.

3. Martin, Roger, "The Virtue Matrix," Harvard Business Review on Corporate Responsibility, Harvard Business School Publishing Corporation, 2003.

4. Garrett Brown, article to be published in Industrial Safety Hygiene News, September 2005

5. The National Corporate Social Responsibility Report: Managing Risks, Leveraging Opportunities, Conference Board of Canada, http://www.conferenceboard.ca/documents/607-04NationalCSR-RPT.pdf.

6. Prahalad, C.K. and Allen Hammond, "Serving the World's Poor, Profitably," Harvard Business Review on Corporate Responsibility, Harvard Business School Publishing Corporation, 2003.

References

““A World where risks are controlled because everyone believes A World where risks are controlled because everyone believes suffering and loss are morally, socially and economically suffering and loss are morally, socially and economically unacceptable.”unacceptable.”

Jennifer Quintal – Age 9

Maureen C. ShawNSC – Orlando, Fl 2005

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