Corporate Social Responsibility

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Corporate Social Responsibility Class 3 CSR
Management System Syllabus developed by Jens
Trummer
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Agenda CSR Management System
Reading 1. Daimler 360, Facts on
Sustainability, 2010 For those interested in
more detailed information - Designing a CSR
Structure, Business for Social Responsibility,
2002 - CSR An Implementation Guide for
Business, IISD
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Class 3 CSR Management System CSR LAB
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What is difference ? and
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2 Types of Business Models 1. Sustainable
Business Model CSR??? 2. Business Model
with CSR Programs
CSR Management System
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Evolution of CSR
Stage 3 Strategic CSR Strategy complimenting
business activity
CSR Management System
Stage 4 Sustainability Intrinsic business
strategy/ Activity Still CSR ??
Stage 1 CSR non-existent
Stage 2 CSR non-strategic - Philanthropy -
Donations - Volunteering, etc.
?
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CSR Management System needs Framework
for Strategic Integration TOOL to
compliment core business activities
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Framework for Strategic Integration - Theory
of Practice - No one size fits all - Not
necessarily chronological - Must be adaptive
Why?
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CSR implementation on-going Continuous
adaptation to changing Driving Forces
Class 1
Class 1
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Framework for Strategic Integration 3 1 3
Steps 1 Continuous Action Step 1 ???
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Step 1 Analysis
Step 1 Analysis 1. CSR Audit ? Gap Analysis 2.
Stakeholder Process (See Class 2) - Stakeholder
Analysis - Stakeholder Dialogue 3. CSR-SWOT
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Step 1 Analysis
1. CSR Audit As-is Analysis Goal Assess the
whole picture Basis for Gap Analysis
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Step 1 Analysis
1. CSR Audit - CSR definition - 4 key criteria
??? - Existing CSR policies, standards, values,
Corporate Motivation

Nalco - Understand current CSR commitments,
external standards used - Structures Current
departments, functional areas,
cross-functionality - CSR issues currently being
addressed - Stakeholder Overview of current
stakeholder dialogue - Current CSR programs
and activities
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External Divers/Motivation Re-active vs.
Pro-active Nike, Gap, BP, Starbucks ?? What
about Nestle???
LINK
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Step 1 Analysis
1. CSR Audit Internal Drivers/Motivation -
Honest (self-) analysis - Philanthropic and
/or(??) business incentives
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Step 1 Analysis
1. CSR Audit - CSR definition - Existing CSR
policies, standards, values, Motivation -
Understand current CSR commitments, external
standards used - Structures Current
departments, functional areas,
cross-functionality - CSR issues currently being
addressed - Stakeholder Overview of current
stakeholder dialogue - Current CSR programs
and activities
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Step 1 Analysis
1. CSR Audit Which CSR programs are not
necessarily referred to as CSR ?
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Step 1 Analysis
1. CSR Audit - ISO 14001/EMAS - Health and
Safety (SA 8000) ISO for CSR ???
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Step 1 Analysis
1. CSR Audit
ISO for CSR ISO 26000 Launched November 1st,
2010 ! Guidance standard on social responsibility
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Step 1 Analysis
1. CSR Audit - CSR definition - Existing CSR
policies, standards, values, Motivation -
Understand current CSR commitments, external
standards used (e.g. ISO 14001, SA 8000) -
Structures Current departments, functional
areas, cross-functionality - CSR issues
currently being addressed - Stakeholder Overview
of current stakeholder dialogue - Current CSR
programs and activities
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Step 1 Analysis
1. CSR Audit I I I Internal Intelligence
Investigation
Which departments responsible for CSR issues ?
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Step 1 Analysis
1. CSR Audit CSR Departments -
Communications/PR - Marketing - Human Resources -
(Senior) Management Which department typically
most reactive or slow on take-up ?
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Step 1 Analysis
1. CSR Audit - CSR definition - Existing CSR
policies, standards, values, Motivation -
Understand current CSR commitments, external
standards used (e.g. ISO 14001, SA 8000, ISO for
CSR ???) - Structures Current departments,
functional areas, cross-functionality - CSR
issues currently being addressed - Stakeholder
Overview of current stakeholder dialogue -
Current CSR programs and activities
Which stakeholders almost all companies
irrespective of existing CSR strategy???
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Step 1 Analysis
1. CSR Audit How would you do an Audit ???
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Step 1 Analysis
1. CSR Audit How? Method Internal 1.
Desk-top study Document Analysis 2. Executive,
Management Staff Interviews External 3.
Reputation surveys, benchmarking, CSR Reports
(GRI, AccountAbility Rating)
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Step 1 Analysis
Step 1 Analysis 1. CSR Audit ? Gap Analysis 2.
Stakeholder Process - Stakeholder Analysis
Components ??? - Stakeholder Dialogue 3.
CSR-SWOT
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Step 1 Analysis
Step 1 Analysis 1. CSR Audit ? Gap Analysis 2.
Stakeholder Process - Identification of
Issues - Selection of Stakeholder -
Prioritization of Stakeholders - Stakeholder
Dialogue 3. CSR-SWOT
See Class 2!
Stakeholder Analysis
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Step 1 Analysis
2. Stakeholder Process - Identification of
Issues - Selection of Stakeholder -
Prioritization of Stakeholders - Stakeholder
Dialogue
Stakeholder Analysis
Significance More adaptive to External Drivers
(Social Expectations Globalization)
Class 2
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Step 1 Analysis
Outsourcing CSR Risking hodgepodge of
un-coordinated CSR activities and philanthropic
activities? What do you think?
However
Class 2
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Does Kramer Porter Inside-Out/Outside-In Model
work better ??
Step 1 Analysis
Class 1
Inside-Out Impact on Society
Outside-In Impact on Competitive Positioning
Source Strategy and Society, Porter Kramer
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Step 1 Analysis
CSR
Impact of Society on Company
Impact of Company on Society
How does this compares with Stakeholder Model ?
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Step 1 Analysis
Class 2
Both ways?
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Step 1 Analysis
Step 1 Analysis 1. CSR Audit ? Gap Analysis 2.
Stakeholder Process - Stakeholder Analysis
- Stakeholder Dialogue 3. CSR-SWOT
And/or Kramer Porter Inside-Out/Outside-In
Model
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Step 1 Analysis
Step 1 Analysis 1. CSR Audit ? Gap Analysis 2.
Stakeholder Process - Stakeholder Analysis
- Stakeholder Dialogue 3. CSR-SWOT
And/or Kramer Porter Inside-Out/Outside-In
Model
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Step 1 Analysis
3. SWOT CSR-SWOT Analysis - Putting it all
together - Linkage to next part
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Framework for Strategic Integration Step 1
Analysis Step 2 ???
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Step 2 CSR Strategy
2. CSR Strategy Strategy to compliment business
activity CSR is Business Strategy (see EU
Definition !) 1st Step??
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Step 2 CSR Strategy
Step 2 CSR Strategy 1. Policy formulation 2.
CSR Structure 3. Staffing Plan 4. Budget
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Step 2 CSR Strategy
1. Policy Formulation - Priorities - Core
Values - Formulation of Policy Statement
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Step 2 CSR Strategy
1. Policy Formulation - Formulation of
Strategy How long before public starts
identifying CSR strategy with company ?
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Step 2 CSR Strategy
Step 2 CSR Strategy 1. Policy formulation 2.
CSR Structure 3. Staffing Plan 4. Budget
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Step 2 CSR Strategy
2. CSR Structure Choose structural framework -
Size - Corporate structure - Sectors
involved ... geographic locations, risk areas,
commitment - New or improved structure?
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Step 2 CSR Strategy
What is important for an effective Structure ?
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Step 2 CSR Strategy
Cross-Functional
Why so important in CSR ?
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Step 2 CSR Strategy
2. CSR Structure CSR is cross-functional -
Environment - Government - Communities -
Employees - Supply Chain - Customers -
Shareholders
7 Stakeholder Groups
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Step 2 CSR Strategy
2003 Embedding
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Step 2 CSR Strategy
Framework for Strategic Integration Integrating
sustainability into companys at all
levels of the organization
- Values - Culture - Operations - Business
decisions
Embedding
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Step 2 CSR Strategy
2. CSR Structure Mechanisms for involving
functional areas, departments, etc. Roles and
responsibilities of each employee and/or group
(committee) involved with CSR efforts (Board
committee, executive committee, specific CSR
committee, etc.)
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Increasing level of CSR commitment
Source Designing a CSR Structure, BSR
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Step 2 CSR Strategy
Step 2 CSR Strategy 1. Policy formulation 2.
CSR Structure 3. Staffing Plan 4. Budget
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Step 2 CSR Strategy
3. Staffing Plan Identify CSR-specific staff
roles and responsibilities at the different
levels.
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Step 2 CSR Strategy
Daimlers Corporate Governance Structure How
would you design Daimlers CSR Structure?
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Step 2 CSR Strategy
Daimlers Sustainability Governance Structure (P.
16)
1. Key Stakeholder Groups
???
2. Cross- Functionality
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Step 2 CSR Strategy
Daimlers Sustainability Governance Structure (P.
16)
Core Business Activity
Which ones??
1. Key Stakeholder Groups
2. Cross- Functionality Notice Integration
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Step 2 CSR Strategy
Centralized, de-centralized ? Top-down, bottom-up
?
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Step 2 CSR Strategy
Daimlers Environmental Structure p.19
Bottom-up, Top-down ?
Life-cycle Analysis
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Step 2 CSR Strategy
Daimlers CSR Structure Hybrid
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Step 2 CSR Strategy
Daimler Committed to CSR ?
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Step 2 CSR Strategy
Daimlers CSR Structure Where is Daimler (Page
16)?
Increasing level of CSR commitment
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Step 2 CSR Strategy
Step 6 Daimlers CSR Structure Where is Daimler
(Page 13)?
Board of Management
Sustainability Board
Increasing level of CSR commitment
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Step 2 CSR Strategy
Daimlers CSR Structure Centralized or
de-centralized ?
?
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Step 2 CSR Strategy
Daimlers CSR Structure
Sustainability Office
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Step 2 CSR Strategy
Mobiles CSR Structure
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Step 2 CSR Strategy
- Subsidiary of KBC (Belgium, Flemish) - Required
CSR in 2005 - Communications Intern tasked
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Step 2 CSR Strategy
2006 Allocated budget New CSR Policy 1.
Professional Business Ethics 2. Employees and
their families 3. Attitude to the environment 4.
Care for the community (CSR-led sponsorship)
What evolutionary stage of CSR strategic,
non-strategic?
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How to manage CSR?
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Step 2 CSR Strategy
2007 CSR Expert Task Force (ETF) 1. Head of
External Communications 2. Head of Retail Segment
Marketing 3. Head of PSB Retail Segment 4. Head
of Human Resources 5. Head of Legal 6. Head of
Public Affairs 7. Head of Marketing
Communications (with an advisory vote power) 8.
CSR Officer 9. CSR Manager Main focus area of
ETF ?
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Step 2 CSR Strategy
2007 CSR Expert Task Force (ETF) Main focus
areas - Risk Management Compliance - PR,
Communications Marketing
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2007 CSR Expert Task Force (ETF)
ETF CSR Manger
Problem ?
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2008 Country Team Sustainability Committee (CTSC)
CTSC CSR Manger
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Step 2 CSR Strategy
2008 Country Team Sustainability Committee
(CTSC) 1. CEO of CSOB Pojištovna 2. PSB and
Direct Banking Business Senior executive
director 3. Corporate banking Senior executive
director 4. Corporate Office Director 5. External
Communication Director 6. CSR Manager
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Step 2 CSR Strategy
Country Team Sustainability Committee (CTSC)
2. Votes on general budget components (Budget
0.5 net profit)
CSR Manager
1. Identifies risks, proposes strategies
CSR Expert Task Force
3. Votes on specific programs
Implementation by CSR Team
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Step 2 CSR Strategy
Step 2 CSR Strategy 1. Policy formulation 2.
CSR Structure 3. Staffing Plan 4. Budget
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Step 2 CSR Strategy
4. Budget Assess budget structure and size
Typically, CSR Budget in EE Companies what
percentage of net profit? More effective if tied
with PR Budget!
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Framework for Strategic Integration Step 1
Analysis Step 2 Strategy Step 3 ???
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Step 3 Implementation
Step 3 Implementation Goal Long-Term
Integration Embedding CSR management system into
processes and programs
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Reporting Monitoring Communication
Management Tool
See Class 4
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Framework for Strategic Integration 3
1 3 Steps 1 Continuous Action ?
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Continuous Building Senior Vision Support
Building Senior Vision Support Especially
if Re-active (or not -active) - Get clear
CSR Mandate - Educate Board, CEO and employees -
Build Board CEO level support - Strengthen
company-wide support
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Continuous Building Senior Vision Support

• Building Senior Vision Support
• its all about (internal) communication!
• - Workshops
• Training
• - Personal Contact
• - Etc.
• Gradual Process, building on success.

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Framework for Strategic Integration
Step 3 Implementation 1. Monitoring Reporting
Step 2 CSR Strategy 1. Policy formulation 2.
CSR Structure 3. Staffing Plan 4. Budget
Step 1 Analysis 1. CSR Audit 2. Stakeholder
Process - Stakeholder Analysis (Identification,
Selection and Prioritization) - Stakeholder
Dialogue OR Kramer Porter Inside-Out/Outside-In
Model 3. SWOT
Building Senior Vision and Support