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Corporate Social Responsibility

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The management implementation process is ... There are many definitions of corporate social responsibility. ... Human rights Equality and diversity Corporate ... – PowerPoint PPT presentation

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Title: Corporate Social Responsibility


1
Frameworks for Implementing TBL Programs
Presentation to National Executive Forum on
Public Property April 29, 2004 Toronto, ON
By George Khoury
2
Presentation
  • About the Conference Board
  • What is CSR, SD and TBL
  • Why organizations should pay attention
  • TBL Framework examples
  • Reporting trends and outlook
  • CR Assessment Tool

3
About the Conference Board
  • The Conference Board builds leadership capacity
    for a better Canada by creating and sharing
    insights on economic trends, public policy, and
    organizational performance

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Sustainability
  • to meet the needs of the present without
    compromising the ability to meet the needs of the
    future
  • Ecological focus. More recently, social aspects
    considered through TBL

7
Corporate Social Responsibility
  • Most definitions of CSR address two fundamental
    aspects of business practice
  • 1. a companys relations with its stakeholders
  • 2. a companys engagement with, and impacts on
    society, environment and the economy

www.conferenceboard.ca
8
Why Should Companies bother
  • It is good for business to be good
  • Changing public expectations
  • Evolving role of business

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10
Business Case for CSR
  • Value Creation
  • Reputation
  • Competitiveness
  • Employee Relations
  • Risk Management

11
Why Should Companies bother
  • It is good for business to be good
  • Changing public expectations
  • Evolving role of business

12
To Be Socially Responsible a Large Company Has to
Go Well Beyond What Laws Require (Canada 2002)
Depends/DK/NA (5)
Strongly disagree (3)
Somewhat disagree (13)
Strongly agree (35)
Somewhat agree (43)
13
Expectations are high
14
Why Should Companies bother
  • It is good for business to be good
  • Changing public expectations
  • Evolving role of business

15
Role of Companies Who should be Responsible
for (Canada 2002)
Source Corporate Social Responsibility Monitor
2002, Environics International
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17
Global Economies
Country/ GDP/Sales Corporation ( millions)
Country/ GDP/Sales Corporation ( millions)
1. U.S.A. 8,708,870 2. Japan 4,395,083 5. U.K. 1,3
73,612 11. Mexico 474,951 14. Australia 389,691 23
. General Motors 176,558 24. Denmark 174,363 25. W
al-Mart 166,809
27. Ford Motor Co. 162,558 28. DaimlerChrysler 159
,985 29. Poland 154,146 31. Indonesia 140,964 37.
Mitsui 118,555 38. Mitsubishi 117,765 40. GE 111,6
30 42. Portugal 107,716
Sources Ranking based on corporate sales data
from Fortune, July 31, 2000, and GDP data from
the World Bank Development Report 2000 Mori
Research for Royal Dutch/Shell, 2000 Everybodys
Business Managing Links and Opportunities in
Todays Global Society.
18
Why CSR in a Public Sector Context?
  • Shifting boundaries
  • Locality of issues and importance of local
    government
  • Importance of social, environmental and economic
    in decision-making
  • Communicating to stakeholders

19
What Does CSR Mean in a Local Government Context?
  • Objective - widening and deepening of CSR
  • How
  • Agent of change
  • Catalyst of change

20
Agent of Change
  • Issues
  • Philanthropy and Community involvement
  • Volunteering
  • Workplace health and safety (working conditions)
  • Human rights
  • Equality and diversity
  • Corporate ethics (ethical business practices)
  • Stakeholder engagement
  • Sustainability (balancing eco dev with soc/
    envir issues)

21
Catalyst of Change
  • Issues
  • Public-private partnerships (PPP)
  • Procurement (contracting/ purchasing)
  • Public consultation / Stakeholder engagement
  • Pension fund advocacy

22
From Why to How
  • Confusion in the marketplace
  • Need for process clarity
  • Focus on outcome is key

23
Triple Bottom Line
  • The development of an integrated framework to
    achieve CSR and SD is known as the Triple Bottom
    Line approach

24
TBL Reporting and Implementation Framework
  • Reporting Process
  • Services to community (external indicators)
  • Internal management (internal indicators)
  • Implementation Process
  • Evaluation of the potential environmental,
    economic and social impacts associated with
    proposed projects or actions being considered by
    Council

25
External Indicators
  • Community indicators
  • Economic Total city investment in Business
    incubation programs (target x)
  • Social Rate of participation/engagement of
    residents in city funded community and cultural
    events/activities (target x)
  • Environmental Total reduction of residential
    waste to landfill (target x)

26
Internal Indicators
  • Economic Achievement of financial plan targets
  • Social Overall employee satisfaction
  • Environmental Total reduction of energy
    consumption attributable to Council buildings

27
Company CSR/SD Reports
Dofasco Inc. (steel)
TransAlta Corp. (utilities)
Royal Bank (financial services)
Suncor Energy (oil gas)
28
More Canadian Companies are Reporting
  • One Hundred companies reporting in 2002 v/s 57 in
    2000
  • Top Canadian reporters include
  • Suncor
  • VanCity
  • Hydro-Quebec
  • Crown corporations are reporting more
  • Government catching up Stratos 2003

29
The Canadian Reporting Landscape
  • Research
  • CBOC Survey
  • Stratos Survey
  • Key Findings
  • Range of issues being reported on Environmental
    reporting still leads the pack
  • Some movement towards integrated SD/ Triple
    Bottom Line reporting
  • Feeling their way--Gradual/ incremental
    approach to investment in reporting
  • Not sure of how to navigate Code/ Standard
    landscape

30
CSR Reporting Key Success Factors
  • Corporate commitment to transparency and
    accountability
  • Internal champion to drive the reporting
    process
  • High internal awareness of the business case for
    CSR and TBL reporting
  • Dedicated human resources - Get the right people
    to do the job
  • Timeliness of information
  • Regularity of reporting - You cant stop
    reporting
  • Strong internal management frameworks and
    information systems - accurate, clear, consistent
    and meaningful data
  • Stakeholder dialogue and involvement in the
    definition and development of KPIs
  • Continuous improvement- build learning
    organizations

31
Shells SD Management Framework
32
Developing a Report Critical Questions
  • Are stakeholders (internal/external) interested
    in the reports content? Is the content relevant?
  • Can the report be understood by a non-technical
    audience?
  • How can they benchmark good practice?
  • Is the report believable?
  • Are robust management/data collection/
    information systems in place to support
    reporting?
  • Is the business case clear? What level of system
    development/reporting structure is most
    appropriate given your company size/operations?

Reports need to talk to issues that are close to
the reader
33
Reporting Framework
  • Mostly individualized reports/websites, but
    increasing alignment with international standards
    such as GRI, AA1000, Global Compact
  • BUTmethodological issues around standardization
    vs company-specific issues
  • CBOC CSR Benchmarking Framework

34
The Corporate Responsibility Assessment
Tool (CR AT)
35
Key Benefits
  • Enables comprehensive self assessment against
    leading international CR benchmarks
  • Centralized data base can easily generate custom
    reports for key external stakeholders eg MJRI
  • Resource centre provides ongoing assistance for
    continual self improvement

36
CR Assessment Tool Design
  • Integrated framework, simplifies and digests
  • Encourages and supports continual improvement
  • Benchmarking and reporting capability
  • Dynamic stakeholder consultative process to
    ensure relevance

37
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38
Pop up window for underlying codes
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User Feedback
The Co-operators Group Limited The tool prompted
me to think about areas I might not of
otherwise. I like the fact that once you got
used to the tool it was easy to
navigate. Petro-Canada A good comprehensive
electronic check list that will provide a useful
internal gap analysis as well as a comparison
against external codes
47
THANK YOU
  • khoury_at_conferenceboard.ca
  • Tel 613-526 3280 ext 308
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