CSR: Business CaseQuestions 4&8 : (Van Houtum)

• Anjad Qusaibaty /0886998 • Manon Solberg /0887927• Daan Mannaerts /0887932

Table of Content

• What are the general arguments for CSR?

• Should companies only invest in CSR if they can make a business case for action?

• What was the CSR business case behind VH activities?

• Also Question 8!

General Arguments for CSR• It is in business’s long-term

enlightened self-interest…

General Arguments for CSR• Warding off government

regulations!

General Arguments for CSR• Businesses have the resources, so let

them try!

General Arguments for CSR• Pro-acting is better than reacting!

General Arguments for CSR• The public strongly support CSR

Business case for CSR?

“the ‘business’ justification and rationale; that is, the specific benefits to businesses in an economic and financial (‘bottom-line’) sense that would flow from CSR activities

and initiatives”. (Carroll & Shabana, 2010)

Should companies only invest in CSR if they can make a business case for

action?

Ethical and philanthropic responsibilities?

Business case for CSR

Narrow view of CSR Business case:

CSR CFP

Example: Using alternative energy source that immediately reduce costs.

Business case for CSR

Broad view of CSR Business case:

CSR CFP

Example: safe environment for employees= less injuries/less absenteeism/productivity=money

Benefits/mediating

variables and situational

contingencies

VH Business case for CSR CSR activities Benefits Link CRS-CFP

ISO 9001 - Operational effectiveness. - Risk reduction and management. - Organizational growth.

Indirect

ISO 14001 - Operational effectiveness. - Direct financial impact.

Direct (less energy

consumption=less costs)

The Satino Service concept:

5 promises/ 5 guarantees

- Operational effectiveness. - Organizational growth.

Indirect

AKZO system - Healthy environment for Employees. - Operational effectiveness. - Risk reduction and management.

Indirect

Empowering Employees/ creating ownership/training/

increasing awareness

- Employees’ satisfaction, motivation, loyalty &healthy environment.

- Risk reduction and management. - Operational effectiveness.

Indirect

CSR activities Benefits Link CSR-CFP

VH Business case for CSR

CSR activities Benefits Link CRS-CFP

Empowering Employees/ creating ownership/training/

increasing awareness

- Employees’ satisfaction, motivation, loyalty &healthy environment.

- Risk reduction and management. - Operational effectiveness.

Indirect

Open communication

- Operational effectiveness. - Business opportunity (unexpected): cow

towel.

Indirect.

Community Involvement

- Brand reputation Indirect.

Cradle-to-cradle - Risk reduction and management. - Operational effectiveness. - Brand value and reputation (unexpected). - Business opportunity and growth (black

Satino).

Indirect.

CSR activities Benefits Link CSR-CFP

• The four CSR arguments proposed by Kurucz et al. (2008):1. CSR benefits in terms of cost and risk

reduction.2. the effects of CSR on competitive

advantage.3. the effects of CSR on company

legitimacy and reputation.4. the role of CSR in creating win–win

situations for the company and society.

Business-case arguments for

CSR practices

• Cost and risk reduction: Reducing the risk of injuries avoiding the potential risk of bad publicity: working

conditions and the used materials.

Business-case arguments for

VH CSR practices

• VH reputation: Good publicity/ awards

Business-case arguments for

VH CSR practices

• VH competitive advantage: more favorable for the customers (The Satino

Service concept) unique differentiating market position with its Black

Satino products.

Business-case arguments for

VH CSR practices

• VH Win-Win situations:

Business-case arguments for

VH CSR practicesWin- Win situations

Van Houtum Employees Reducing sickness, absenteeism, and staff

turnover. pleasant working climate and atmosphere

Van Houtum Customers Increasing the market share and being more

favorable for customers. High quality of products and services/

Increased satisfaction. Environmental friendly products (promoting

the image of the customers). Van houtum Society

Brand image and reputation. environmental friendly products others (e.g. school playground)

All these activities are eventually very

beneficial for the company bottom-line!

Learn from Van Houtum!

• Created a competitive advantage by implementing CS&R

• Strongly focus on the important stakeholders that were involved to create a sustainable business

• By letting employees be involved and participated within business operations, the organization now consists of loyal and productive employees

Learn from Van Houtum!

• The constant focus to improve the service and quality resulted in loyal customers.

• The organization was able to reduce their waste which created a sustainable production process. This process can also be implemented in other organizations to reduce waste management and to save costs on the long term.

References

• Carroll, A. B., 1991. The pyramid of corporate social responsibility:. Business Horizons, July-August.pp. 39-48.

• Carroll, A. B. & Shabana, K. M., 2010. The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice. International Journal of Management Reviews, 12(1), pp. 85-105.

• Kurucz, E., Colbert, B. and Wheeler, D. (2008). The business case for corporate social responsibility. In Crane, A., McWilliams, A., Matten, D., Moon, J. and Siegel, D. (eds), The Oxford Handbook of Corporate Social Responsibility. Oxford: Oxford University Press, pp. 83–112.