the five dimensions of csr -...
TRANSCRIPT
The Five Dimensions of CSRThe Five Dimensions of CSRAn executive seminar with Mal Warwick
Sutera Milenium Communications Matrade Exhibition & Convention Centre
Kuala Lumpur, 10 March 2008
Copyright © 2008 by Mal Warwick
Kuala Lumpur 03-08
In this session . . .In this session . . .
Three case studiesWhat is CSR?The five dimensions of CSRWhat does the future hold?Shameless self-promotion
Kuala Lumpur 03-08
Case Study 1: Case Study 1: Focus on suppliersFocus on suppliers
Kuala Lumpur 03-08
““Making a profit is no more Making a profit is no more thatha purpose of a purpose of a corporation than getting enough to eat is the corporation than getting enough to eat is the purpose of life. Getting enough to eat is a purpose of life. Getting enough to eat is a requirementrequirement of life. Lifeof life. Life’’s purpose, one would s purpose, one would hope, is something broader and more hope, is something broader and more challenging. Likewise with business and profit.challenging. Likewise with business and profit.””
—Kenneth MasonFormer ChairmanQuaker Oaks Company
Kuala Lumpur 03-08
Case Study 2: Case Study 2: Focus on employeesFocus on employees
Kuala Lumpur 03-08
““The rewards . . . come from improved The rewards . . . come from improved reputation, improved staff loyalty, motivation reputation, improved staff loyalty, motivation and retention, and from lower transaction and retention, and from lower transaction costs. But, perhaps above all, they come from costs. But, perhaps above all, they come from an improved quality of management through an improved quality of management through working more closely with all the players in working more closely with all the players in the business environment.the business environment.””
—Adrian Henriques, cited in Holliday, Schmidheiny, and Watts, Walking the Talk: The Business Case for Sustainable Development
Kuala Lumpur 03-08
Case Study 3: Case Study 3: Focus on the environmentFocus on the environment
Kuala Lumpur 03-08
““The vision shared by the many Americans The vision shared by the many Americans who are experimenting [in business] . . . Is who are experimenting [in business] . . . Is not a utopian society here on earth but the not a utopian society here on earth but the conviction that the arrangements within conviction that the arrangements within capitalism can be changed, little by little, to capitalism can be changed, little by little, to make more space for life, through make more space for life, through innovations that eventually become common innovations that eventually become common practice.practice.””
—William Greider, The Soul of Capitalism: Opening Paths to a Moral Economy
Kuala Lumpur 03-08
What is CSR?What is CSR?
Kuala Lumpur 03-08
Many names . . .Many names . . .
Corporate social responsibility (CSR)Socially responsible business (SRB)The sustainable corporationDouble bottom lineTriple bottom lineBlended value propositionA dynamic and constantly evolving concept
Kuala Lumpur 03-08
Phase 1: 1970sPhase 1: 1970sOrigins in Socially Responsible Investing (SRI)Early action on the environment (USA)Poverty eradication (global)First steps toward corporate social responsibility
Kuala Lumpur 03-08
Phase 2: 1980sPhase 2: 1980s
Double bottom lineSlow growth of CSRFounding of SVN (1987)Socially responsible business spreads
Kuala Lumpur 03-08
Phase 3: 1990sPhase 3: 1990s
World Council for Sustainable Business –Rio Conference on the Environment (1992)Founding of BSR (1992)Triple bottom line (1994)Rapid spread of SRBBlended value propositionEmergence of social enterprise
Kuala Lumpur 03-08
The Triple Bottom LineThe Triple Bottom Line
PeoplePlanetProfitA balanced, sustainable approach
Kuala Lumpur 03-08
CSR works when . . .CSR works when . . .
Management trusts and engages employeesOwners accept a long-term view Management makes decisions holistically
Kuala Lumpur 03-08
CSR CSR doesndoesn’’tt work when . . .work when . . .
Owners want to “get rich quick”Employees are treated poorlyManagement thinks resources are unlimitedCSR is viewed as corporate philanthropyor, worse, as a public relations strategy
Kuala Lumpur 03-08
The five dimensions of CSR: The five dimensions of CSR: the stakeholder modelthe stakeholder model
Companies that provide products or services that improve the quality of life in their communities
Companies that invest the profits they earn in social or environmental causes
Companies that are distinguished by the ways they operate
Three Paths to Social ResponsibilityThree Paths to Social Responsibility
Kuala Lumpur 03-08
What does the future hold?What does the future hold?
Kuala Lumpur 03-08
Changes are afootChanges are afoot
Increasing government regulationsPressure from insurance companiesChanging investor perceptionsShifting consumer attitudesLooming resource shortages
Kuala Lumpur 03-08
Figure 2.1: In your own words, what does the phrase "c orporate
soc ial responsibi l i ty" mean to you? (n=800)
16%
3%
12%
16%
23%
27%
0% 5% 10% 15% 20% 25% 30%
Don't know
More char itable donations
Responsibi l i ty to the environment
Provide quality produc ts
Commitment to communit ies
Commitment to employees
Kuala Lumpur 03-08
““Consumers, not experts, are now Consumers, not experts, are now setting the CSR agenda.setting the CSR agenda.””
——FleishmanFleishman--HillardHillard benchmark study, 2005benchmark study, 2005
Kuala Lumpur 03-08
Degrees of responsibilityDegrees of responsibility
CSR: business for profit but minimize damageSRB: evolve new business models to change the world Blurring of lines between SRB and social enterprise
Kuala Lumpur 03-08
Is CSR morally correct?Is CSR morally correct?
Why do we do what we do?Because it’s right?Because it’s profitable?Because it’s both?Are we seeking value—or values?Is there ultimately a difference?
Kuala Lumpur 03-08
Phase 4: 2000sPhase 4: 2000s
We’re still destroying the planet – and 2/3 of humanity is still poorRecognition that CSR isn’t enoughTotal Corporate Responsibility (TCR)Business must address systemic issues
Kuala Lumpur 03-08
Shameless selfShameless self--promotionpromotion
Kuala Lumpur 03-08
Kuala Lumpur 03-08
ThatThat’’s all for now!s all for now!
For more information, contact:Mal Warwick Associates2550 Ninth Street, Suite 103Berkeley, CA 94710-2551Phone +1 (510) 843-8888Email [email protected] www.malwarwick.com