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Corporate Social Responsibility


Starbucks Coffee Co. B&Q. Novo Nordisk A/S. Interface, Inc ' ... women and newborns are not receiving adequate nutrition and medical care ... – PowerPoint PPT presentation

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Title: Corporate Social Responsibility

  • Corporate Social Responsibility

  • Corporate Social Responsibility
  • Ethics
  • Corporate Citizenship
  • Corporate accountability
  • Sustainability

  • CSR
  • Achieving commercial success in ways that honor
    ethical values and respect people, communities
    and the natural environment

  • CSR
  • Addressing the legal, ethical, commercial and
    other expectations society has for business and
    making decisions that fairly balance the claims
    of all key stakeholders

  • CSR includes issues related to
  • Business ethics
  • Community investment
  • Environment
  • Governance
  • Human rights
  • Marketplace

  • Business Importance
  • Improved Financial Performance
  • Reduced Operating Costs
  • Enhanced Brand Image and Reputation
  • Increased Sales and Customer Loyalty

  • Business Importance (cont.)
  • Increased Productivity and Quality
  • Increased Ability to Attract and Retain Employees
  • Reduced Regulatory Oversight
  • Access to Capital

  • Key Developments
  • Increased Stakeholder Activism
  • Proliferation of Codes, Standards, Indicators and
  • More Sophisticated Shareholder Engagement
  • Accountability Throughout the Value Chain

  • Key Developments (cont.)
  • Transparency and Reporting
  • Growing Government Interest and Action
  • Convergence of CSR and Governance Agendas
  • Growing investor Pressure and Market-Based

  • Key Developments (cont.)
  • Advances in Information Technology
  • Pressure to Quantify CSR Return of Investment

  • External Standards
  • AccountAbility
  • The Global Reporting Initiative
  • Social Accountability 8000
  • United Nations Global Compact
  • Organization for Economic Cooperation and
    Development Guidelines for Multinational

  • External Standards (cont.)
  • The Caux Round Table (CRT)
  • The Global Sullivan Principles
  • The Keidanren Charter for Good Corporate Behavior
  • APEC Business Code of Conduct

  • Implementation Steps
  • Mission, Vision, Values Statements
  • Cultural Values
  • Corporate Governance
  • Management Structures
  • Strategic Planning
  • General Accountability
  • CSR Reporting
  • Use of Influence

  • Leadership Examples
  • Chiquita Brands International, Inc
  • Starbucks Coffee Co
  • BQ
  • Novo Nordisk A/S

  • Interface, Inc
  • Our Goal to be the first company that, by its
    deeds, shows the entire industrial world what
    sustainability is in all its dimensions People,
    process, product, place, and profitsby 2020and
    in doing so we will become restorative through
    the power of influence.

  • Interface, Inc (cont.)
  • Our Vision Interface will become the first
    name in commercial and institutional interiors
    worldwide through its commitment to people,
    process, product, place and profits. We will
    strive to create an organization wherein all
    people are accorded unconditional respect and
    dignity one that allows each person to
    continuously learn and develop. We will focus on
    product (which includes service) through constant
    emphasis on process quality and engineering,
    which we will combine with careful attention to
    our customers needs so as always to deliver
    superior value to our customers, thereby
    maximizing all stakeholders satisfaction. We
    will honor the places where we do business by
    endeavoring to become the first name in
    industrial ecology, a corporation that cherishes
    nature and restores the environment. Interface
    will lead by example and validate by results,
    including profits, leaving the world a better
    place that when we began, and we will be
    restorative through the power of our influence in
    the world

  • Business and Corporate Accountability

  • Business Importance
  • Improved financial performance
  • Heightened public credibility
  • Reduced costs
  • Increased attractiveness to investors
  • Improved relationship with shareholders

  • ..more than 80 of investors would be willing
    to pay more for the shares of a well-governed
    company than for a poorly governed company with
    comparable financial performance.
  • (From a 2000 survey of 200 large institutional
    investors conducted by McKinsey Co., the World
    Bank, and Institutional Investors regional

  • Business Importance (cont.)
  • Early identification of potential liabilities
  • Marketplace advantages
  • Improved overall management
  • Improved organizational effectiveness
  • Decreased risk of adverse publicity

  • Key Developments
  • Growth of CSR
  • Increased demand for transparency
  • Growth in sustainable reporting
  • Greater government regulation
  • Increased shareholder activism
  • Proliferation of social and environmental
    reporting standards
  • Increased media attention

  • Implementation Steps
  • Set objectives
  • Review company materials
  • Review management systems
  • Engage board of directors
  • Define and engage stakeholders
  • Develop formal internal and external
    communication mechanisms
  • Engage in continuous improvement

  • Green Product Design

  • Business Importance
  • Decreased costs increased profits
  • Decreased production time
  • Customer satisfaction
  • Customer retention
  • Recognition
  • Proactive preparation for regulation

  • Key Developments
  • Take-back laws and extended product
  • Updates to existing regulations affecting product
  • Industry/government voluntary initiatives
  • Industry/NGO collaboration
  • Restricted materials lists

  • Business Importance
  • Decreased costs and increased profits
  • Decreased production time
  • Customer satisfaction
  • Customer retention
  • Recognition
  • Proactive preparation for regulation

  • Key Developments
  • Take-back laws and extended product
  • Updates to existing regulations affecting product
  • Industry/government voluntary initiatives
  • New systems of commerce
  • Restricted materials list
  • Academic programs

  • External Standards
  • Eco-labeling/enviromental certification
  • ISO 14000
  • Restrictions on use of hazardous materials
  • EU directive 94/62 on packaging and packaging
  • Product-specific mandates ond voluntary efforts

  • Implementation Steps
  • Develop business strategies to capture value from
    lifecycle thinking
  • Practice full-cost accounting
  • Explore reuse options for materials and products
  • Develop markets for green-designed products
  • Establish ground rules for product design
  • Perform analysis during product design and

  • Leadership Examples
  • Proctor Gamble (PG)
  • Volvo
  • Electrolux

  • Sustainable Business Practices

  • Sustainable Development
  • Meeting the needs of the present without
    compromising the ability of future generations to
    meet their own needs.
  • (UN Commission on Environment and Development)

  • Business Importance
  • Access to capital
  • New Market development
  • Asset retention
  • Brand image and customer retention
  • Innovation

  • Key Developments
  • Increase in sustainability reports
  • Growth of markets concerned with sustainable
    products and services
  • Strategic partnerships
  • Financial markets
  • Government-Industry partnership initiatives

  • Sustainable goals and indicators
  • Milestones
  • Are we moving towards our destination or heading
    in the opposite way

  • Economic Vitality
  • Goal An economy that is competitive, diverse,
    and attractive to business that maintains and
    expands assets and capital that provides a
    variety of entry-, middle-, and high-level jobs
    and that promotes the well-being of a community
    and its workforce

  • Economic Vitality Indicators
  • Per capital Income
  • Why do we care?
  • Economic well-being one of three axes of
  • Disposable income a measure of economic well
  • Having the option to make choices a good thing

  • Unemployment
  • Why do we care?
  • Unemployment affects individual and indicates the
    health of the economy
  • Communities with high unemployment have increased
    crime, domestic violence, substance abuse
  • Less tax revenue available as resource against
  • social problems

  • Productivity of Labor
  • Why do we care?
  • Measures the value of output relative to the
    resources used to produce it.
  • Higher incomes and living standards
  • More or resources available for reinvestment in
    growth and the ability to remain competitive

  • 4. Share of Households Below Poverty Line
  • Why do we care?
  • High poverty rates impose costs on welfare
    systems and slow economic growth of community
  • Poverty usually occurs along with poor health,
    decreased economic opportunity, higher crime
    ratesreduce quality of life

  • Energy Efficiency
  • Why do we care?
  • Measures the output of our economy relative to
    the amount of energy used.
  • Major input into productive activity and
  • More efficiency, lower environmental cost

  • Equity
  • Goal A more equitable distribution of the
    positive and negative products of civilization in
    the community. This includes fair access to
    healthy environments, good healthcare, quality
    education, governmental decision-making, economic
    opportunity, and natural and cultural amenities

  • 6. Why do we care?
  • A society in which everyone feels a welcome and
    equal participant, where people take ownership,
    will be more sustainable better able to grow,
    evolve, adapt

  • Racial disparities in Infant Mortality
  • Why do we care?
  • High infant mortality is sign that pregnant women
    and newborns are not receiving adequate nutrition
    and medical care
  • Racial disparity shows inequity in access to care
  • Infant health care crucial to lifelong mental
    health and physical development

  • Strong Community, Culture, Recreation
  • Goal Create or enhance within communities a
    positive sense of local identity and individual
    belonging, which promotes respect among
    neighbors, increases everyones feelings of
    safety and security, and provides abundant
    cultural and recreational opportunities

  • Newspaper Circulation
  • Why do we care?
  • Reading newspaper fosters community awareness and
    encourages people to take ownership and engage
    with their community
  • Newspapers provide information to enable people
    to get involved with local decision-making and

  • Crime Rate
  • Why do we care?
  • Crime is indicator of deeper social and economic
  • Increase crime rate may result from decrease in
    job opportunity, economic stagnation, inadequate
    education, or inadequate policing.

  • 10. Open Space
  • Why do we care?
  • Protects natural environment by providing habitat
    for wildlife.
  • Absorbs rainfall, minimizing risk of floods and
    sedimentation of waterways
  • Provides recreation on land and water
  • Protecting space while it is still relatively
    inexpensive, ensures room for parks and natural
    areas against development

  • Quality Education
  • Goal A quality, lifelong education equally
    accessible to all, whereby individuals learn to
    be critical thinkers and engaged citizens with an
    understanding of and respect for the systems that
    support civilization (social, economic,
    environmental) and which provides students with
    the knowledge and skills necessary for employment
    and personal fulfillment.

  • High School Graduation Rates
  • Why do we care?
  • Demands for highly skilled, trained, educated
    employees has steadily increased
  • High school education minimum in the labor market
  • Requirement for accessing various forms of higher
    education and training
  • Useful measure of what will be availabe to young
    people later in life

  • Student/Teacher Ratio
  • Why do we care?
  • Used to assess potential for student/teacher
    interaction and communication
  • Reasonable proxy for establishing average class
    size and student-teacher interaction

  • Standardized Test Scores
  • Why do we care?
  • Performance on test provides understanding of how
    many students are acquiring basic skills in
    reading, math, writing.
  • Indication of whether students are being educated
    well enough to meet needs.

  • Higher Education
  • Why do we care?
  • Strong education systems create large educated
    labor easing location of high tech industries
  • Strong education systems help to prevent
    emigration of students from region

  • Good Government
  • Goal A community system of governing that is
    efficient, effective, trustworthy, and
    responsible to citizens and their needs and that
    actively promotes good citizenship and effective

  • Voter Turnout
  • Why do we care?
  • Basic measure of how many of us are exercising
    the right to self-government
  • Indicator of collective awareness of community

  • Decent Housing
  • Goal A variety of desirable housing options for
    a community members, at every income level

  • Affordability of Rental Housing
  • Why do we care?
  • An essential element in the well-being of
    community members and economic success
  • Lack of affordable housing hinders economic
    growth, making it difficult for firms to maintain
    labor force
  • High cost of housing hinders economic growth

  • Home Prices vs. Income
  • Why do we care?
  • Homeownership offers degrtee of security through
    financial equity
  • Establishes residents as long-term stakeholders
    in the community
  • Homeowners more likely to invest in physical
    improvements and social programs to cohere the

  • Trends in New Housing
  • Why do we care?
  • Indicator sheds light on where new housing is
    being built urban, suburban, rural- to monitor
    suburban sprawl considered a significant threat
    to sustainability
  • Monitor range of community housing choices and

  • Healthy People
  • Goal The highest opportunity for community
    members to be healthy, with access to
    high-quality health care and minimized exposure
    to health risks

  • Life Expectancy
  • Why do we care?
  • Reflects the health and well-being of community
    population and relative access to resources that
    help keep people alive.
  • Longer lives can adversely impact the environment
    and requires responsible sustaiinable decision

  • Infectious Diseases
  • Why do I care?
  • Need control to counter catastrophic effect on
    public health, social institutions, the economy
  • Social cohesion diminished if poor or minorities
    suffer more from infectious disease than middle
    class whites

  • Asthma
  • Why do we care?
  • Common respiratory condition often triggered by
    environmental conditions as ozone concentrations,
    care exhaust, dust mites, roaches, rats, mice,
    tobacco smoke.
  • More a problem for low-income families and
    children unable to avoid such conditions
  • Asthma linked to other sustainability issues of
    poverty and environmental health

  • Occupational Safety and Health
  • Why do we care?
  • Key fundamental rights that reflect values and
    define social aspects of sustainability
  • As basic right, problems impose economic costs on
    affected households and community
  • Injuries raise insurance rates, cost of doing
    business, cost of goods and services

  • Efficient Transportation and Land Use
  • Goal A choice of efficient, convenient, safe,
    and affordable transportation and land use
    options, providing access to jobs, shopping,
    recreational centers, schools, airports, and rail

  • Need for Road and Bridge Repairs
  • Why do we care?
  • Accumulated road and bridge repairs is indicator
    of whether the communitys economy, heavily
    dependent on transportation, is being sustained.
  • Increase in repairs suggests heading for physical
    and economic bottlenecks and a constraint on the
    ability of freight and people to move through the

  • Vehicle Miles Traveled Per Capita
  • Why do we care?
  • VMT is a measure of transportation system
    development increase imposes costs, including
    time lost from traffic congestion
  • Economic competition compromised by delayed
    workers, consumers, goods
  • Vehicles significant source of pollution

  • Workplace Transportation Options
  • Why do we care?
  • Tracks location of new office complexes according
    to accessibility to public transit and personal
  • Location of development of major employment
    centers today is key to steering land use
    patterns tomorrow

  • Natural and Ecological Integrity
  • Goal Preserve and restore communitys
    ecosystems and the full complement of species
    that chare the community.

  • Loss of Freshwater Wetlands.
  • Why do we care?
  • One of the key components of environmental
    sustainability and acts as natural filter for
    ground water supply, reducing the need for
    expensive investments in water purification
  • Natural flood protection
  • Habitat for migrating birds and other wildlife
  • Incubators for sport and commercial fisheries

  • Nesting Water Bird Populations
  • Why do we care?
  • Birds at the top of the food chain and indicators
    of general health of the ecosystem they inhabit
  • Because reproductive systems sensitive to con
  • contamination, good indicators of pollution
  • Aquatic ecosystems filter pollution and sediments

  • River Health
  • Why do we care?
  • Level of dissolved oxygen (DO) in the river
    systems is widely-used indicator of water quality
    and ability of rivers to support aquatic and
    human life.
  • Measure of how well community is sustaining
    natural systems in face of development.

  • Marine Water Quality
  • Why do we care?
  • Quality of shellfish habitat way to track overall
    quality of coastal ecosystems
  • Share of shellfish habitat deemed safe for
    harvesting by public officials is simple
    indicator of water quality and ecosystem health

  • Protected Natural Resources
  • Goal Maintain the community natural resource

  • Total Energy Consumption
  • Why do we care?
  • Changes in energy price or supply have direct
    impact on all sectors of the economy.
  • Energy production and consumption create
    pollution in form of greenhouse gases, toxins,
    and radioactive waste.
  • Fossil fuels are non-renewable and therefore, our
    energy system is likely unsustainable.

  • Farmland
  • Why do we care?
  • Farmland recharges our groundwater, provides
    habitat for wildlife, protects soil

  • Ocean and Bay Beach Closings
  • Why do we care?
  • Highly visible events that can drive away
    potential visitors and reduce revenues generated
    by coastal tourism.
  • Closings usually due to storm water runoff,
    elevated levels of bacteria or floating debris,
    failures in sewage collection and treatment
    systems resulting in unsustainable conditions for
    community health and economy.

  • Preserved and Developed Land
  • Why do we care?
  • Rapid urbanization cuts into open space needed
    for recreation, agriculture species habitat
  • Maintaining a balance among conflicting land uses
    is key element of sustainability

  • Minimal Pollution and Waste
  • Goal Minimize the generation and accumulation
    of pollution and waste maximize the use of
    efficient, clean, and sustainable energy sources
    and increase consumer choices for ecologically
    friendly products.

  • Greenhouse Gas Emissions
  • Why do we care?
  • US is the largest emitter of greenhouse gases,
    23 contribution from 5 of its population

  • 35. Drinking Water Quality
  • Why do we care?
  • A community that cannot provide water to its
    citizens, due to either natural or human
    contamination, cannot be sustained.

  • Solid Waste
  • Why do we care?
  • Buried or burned solid waste can lead to ground
    water pollution, poor air quality, land
    contamination, and other forms of environmental
  • Political and social battles over where to locate
    and how to pay for waste disposal facilities have
    been historically contentious

  • Air Pollution
  • Why do we care?
  • This indicator shows the number of days on which
    ground level ozone, particulate matter, or carbon
    monoxide was measured to be at unhealthy levels
    somewhere in the community.
  • Many health problems are associated with poor
    indoor air quality, which is often not measured
    in any systematic way.
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