Corporate Citizenship 2.0: How Businesses Are Reinventing CSR Management

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Corporate Citizenship 2.0 How Businesses
Are Reinventing CSR Management Stephen
Jordan Executive Director Business Civic
Leadership Center October 2, 2008
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Whats Wrong With CSR?

• Cost Center/Overhead
• Businesses Arent Philanthropies
• Cant Measure Value
• What Other People Want, not the Company
• Bad Connotations

Particularly in a time of crisis
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And It Pays to Cheat

• The Prisoners Dilemma
• Why should I trust the other guy?
• Why should I do more than the other guy?
• Dont I gain an advantage?
• Desperate times call for desperate measures

But isnt this short-sighted?
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We Need to Think About This Differently

• Can We Say That CSR is
• Enlightened Self-Interest
• Enterprise Sustainability Management
• Intangible Asset Management
• Organizational Trust
• Stakeholder Relations
• Corporate Eco-System Management
• Annuity Stream Optimization
• Long-Term Development

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How Do Companies Make Money?

• Sales (outputs) gt inputs
• So
• Grow sales
• Cut costs
• Improve the productivity of your assets
• And then do it againbetter

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What Threatens This?

• Inside Company
• Morale, Selfishness, Criminality
• In Community
• Crumbling infrastructure, poor education, etc.
• NIMBY
• Among Stakeholders
• Public attitudes, perceptions
• Trends, tastes
• Regulations
• Pressure and Advocacy

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External Threats

• Inequality rooted in lack of opportunity
• Resentment
• Future Workforce?
• Community Relations
• Protectionism
• Both at home and abroad
• Disasters
• Proliferation of needs as resources become scarce

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Opportunities

• The spread of the Information Revolution
• Changing nature of public-private relations
• Rise of the civil society sector
• Growing recognition of interdependence

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Other Issues

• The World is Fractal
• Have to decide between places
• Political Jurisdictions Are Outmoded
• Municipalities vs. Regions
• Analytical Frameworks Need to Be Updated
• 1970s still live on
• Different Groups Want Different Things
• Some Folks Like the Status Quo
• Business Has a Perception Problem

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Think Long-Term Development

• Risk Reduction
• Market Creation
• Workforce Development
• Transaction Cost Reduction
• License to Operate

• Avoid Scandals
• Invest in inner cities and emerging markets
• Invest in K-12
• Build up trust

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Management Consequences

• Increasing Importance of Stakeholder Relations
• Increasing Importance of Reputation Management
• Increasing Importance of Ethics Management
• An Institutional Revolution

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Tools

• Think like an investor
• Portfolio Management
• Multiple Investment Filters
• Maximize Multiple Investment Objectives
• Practice division of labor
• Joint ventures vs. Complementary commitments
• Social networks help!
• Invest in design and strategy
• Reach out to stakeholders

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Metrics

• Intangible Assets
• Increase Good Will Increase Stock Price
• Organizational Productivity
• Employee Morale, Recruitment, Retention
• Transaction Costs
• License to operate, NIMBY avoidance
• Market Development
• Supply Chain Development
• Business Resilience and Recovery

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A Look At The Future

• People Management
• Global Migration and Mobility
• Community competitiveness?
• Globalization
• Infrastructure Resilience Sustainability
• The Next Administration?
• Where will public attitudes go?
• What to do about future scandals?

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In Conclusion

• CSR is
• Enlightened Self-Interest
• Enterprise Sustainability Management
• Annuity Stream Optimization
• Intangible Asset Management
• Organizational Trust
• Stakeholder Relations
• Corporate Eco-System Management
• Long-Term Development

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Thank You.
www.uschamber.com/bclc