Corporate Citizenship: Doing Well by Doing Good

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Corporate Citizenship Doing Well by Doing Good

• Dr Gill Coleman
• Director, New Academy of Business
• Bristol, England

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The New Academy

• Independent business school established in 1995
  by Anita Roddick of The Body Shop.
• Mission to help build a future that is more
  just, enterprising and sustainable.
• Produce educational activities and resources
• Work with companies, entrepreneurs, educators,
  activists, and policy makers on social, ethical
  and environmental issues in business

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Why am I here right now?

• A rising agenda concerned with Corporate
  Citizenship
• The move away from a being a solely
  European/North American debate
• From top-down,centralised, policy-led to
  bottom-up,devolved, activity-based

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What is Corporate Citizenship?

• the practice of a corporations direct
  responsibilities to employees, shareholders,
  customers, suppliers, and to the communities
  where it conducts business and serves markets.
•  
• Laurie Regelbrugge, CIVICUS

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• Whatever else corporate social responsibility is
  about, it is not about charity, neither is it a
  public relations exercise for enterprise. It is
  about intelligent self-interestwhich also brings
  benefit to society.
•  
• Viscount Etienne Davignon
• Chairman of the Societe Generale de Belgique

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The UN International Year of the Volunteer

• More than 3000 volunteers in 131 countries
• New Academy/UNV project on Enhancing Business
  Community Relations in the Philippines, India,
  Ghana, Nigeria, South Africa and Lebanon

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The UN Global Compact

• Let us choose to unite the power of markets with
  the authority of universal ideals. Let us choose
  to reconcile the creative forces of private
  entrepreneurship with the needs of the
  disadvantaged and the requirements of future
  generations
• Kofi Annan, Secretary-General of the United
  Nations

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• Nine Principles covering Human Rights, Labour
  Standards, Environment, drawing on
  already-established international conventions
• Launched in July 2000
• Now more than 500 companies committed, and
  regional compacts so far established in the
  Philippines, Brazil, Latvia and Poland

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Companies engage by the CEO writing to the S-G,
expressing support and committing to -
publicly express their support - inform
stakeholders - incorporate commitment into
Annual Report - provide annual statement of
progress and lessons learned
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Meanwhile, new demands on Business

• Global marketplace means increased levels of
  competitiveness the race to the bottom
• Increased transparency and an active NGO movement
• Interconnected economies and economic downturn

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Building business advantage
Minimalist compliance with legislation
Strategic Citizenship integrated into business
Minimal
Discretionary philanthropic approach
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Benetton and the IYV
Colors is a bi-monthly magazine that talks to
young people all around the world In this
campaign, Benetton deals with a subject that is
typical of its communication strategy and, once
again, talks about real people, touching on
important issues for a civilised
society.Company press release
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Unilever the Marine Stewardship Council (MSC)

• Company identityRelationships are strongest
  when built on trust
• MSC established 1998 as an independent non-profit
  organisation
• Unilever commitment to source all its fish from
  sustainable fisheries by 2005

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• This safeguards the future of the resource,
  which makes good commercial sense it ensures
  the industrys investment in fishing and
  processing assets, and market development is
  protected

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Pasig River of Life, Philippines
Part of the companys defined Water
Sustainability Initiative Key resource in Metro
Manila Step-by-step measures to clean the river,
in conjunction with local partners Ensuring its
own operations do not pollute Partnering with
neighbours to help them not to pollute Encouraging
wider participation and support for Clean River
Zone
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UBS, AG

• At UBS, corporate social responsibility means
  more than just a few discrete practices or
  occasional gestures motivated by public
  relations. We believe in proactively managing
  social issues and in setting the standards that
  will shape business activity in the future
• Establishing specialist Eco products, and
  enhanced Business Principles for own operations

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World Business Council on Sustainable Development

• A coalition of 150 international companies united
  by a shared commitment to sustainable development
  via the three pillars of economic growth,
  ecological balance and social progress.
• The business case is also an entrepreneurial
  position it looks to the next point on the
  business curve the point at which business can
  be more competitive

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Shifting sources of value
Human capital
Physical capital
Intellectual capital
Social capital
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In practice at the local level

• Offering resources volunteers, equipment,
  skills and know-how to help fulfil social and
  environmental tasks
• Starting small, and starting where you are
• Combining with those expert in social and
  environmental interventions to achieve shared
  goals partnerships
• Looking for win-win opportunities

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Philippines Business for Social Progress Survey
Best Practices

• Scholarship programmes for disadvantaged students
• Practical technical or vocational training
  offered to school students at company facilities
• Donation of materials for education and community
  groups
• Employee involvement

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Possible business benefits

• Trust, relationships, name, brand, reputation
• Enhancing company value-base (Collins and Porras,
  Built to Last)
• Increasing employee motivation and commitment
• Discovering more about stakeholders, especially
  those you dont understand

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Corporate Citizenship opportunities

• Ways of getting things done in a complex
  environment
• Helping create a stable situation in which
  business can operate shared interests
• Opportunity for building internal capacity,
  learning new ways to operate
• Creation of social capital