CSR Main Concepts - ECRC

1 CSR main Concepts CSR Fad or reality Basic Information Quotations from Practitioners What CSR is all about? Basic Information Reading CSR main Components Basic Information Case Studies Triple Bottom Line Basic Information Readings Quotations Increased Importance of CSR Basic Information Case Studies Data Benefits of CSR Basic Information Case Studies Readings Socially Responsible Investment Basic Information Readings Case Studies Data CSR Fad or Reality? We have to choose between a global market driven only by calculations of short-term profit, and one which has human face.

2 Between a world which condemns a quarter of the human race to starvation and squalor, and one which offers everyone at least a chance of prosperity, in a healthy environment. Between a selfish free-for-all in which we ignore the fate of the losers, and a future in which the strong and successful accept their responsibilities, showing global vision and leadership. Kofi Annan, UN Secretary-General January 1999 Leaders, opinion makers and practitioners from the private and public sector, civil society, international organizations, and media from all over the world are finding themselves increasingly exposed to the below mentioned types of questions and dilemmas.

3 Is CSR a new flavor of the month? Is the business of business business? Companies should focus on making profits while government should regulate companies to be responsive to social and environmental Is Milton Friedman right? There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits. Is Professor Arlich Steger from IMD right?Companies should aim for responsible shareholder-value optimization : their first priority should be shareholders long-term interests, but with that constraint, they should meet whatever social or environmental goals the public expects of them.

4 Is the dilemma: When money and morality clash, what should a company do? a real one? Selected Quotations by CSR Practitioners Business CSR is not a cosmetic; it must be rooted in our values. It must make a difference to the way we do our business. -- Phil Watts, Group Managing Director Royal Dutch/Shell Group Corporate citizenship is our global commitment, Our knowledge and our solutions create a better world. -- Siemens AG, HQ in Germany AT&T understands the need for a global alliance of business, society and the environment.

5 In the 21st century, the world won t tolerate business that don t take partnership seriously, but it will eventually reward companies that do. -- C. Michael Armstrong, Chairman & CEO, AT&T Civil Society Social responsibility is neither a fad nor an optional extra. The interest in it is reflective of a deeper change in the relationship between companies and their stakeholders, including consumers. Faith in the benefits of profits to consumers has halved since the Seventies, as a viable basics of a relationship, that faith has been replaced by a desire to see companies acting as active and responsible citizens.

6 Healthy business requires a healthy community, and should be contributing to its creation and maintenance. -- Steward Lewis, Measuring Corporate Reputation, 1999 Global corporate social responsibility entails managing effectively the company s actual and potential environmental and social impact on the communities in which the firm operates and on society as a whole. -- David Grayson, President of Business in the Community in Great Britain The principles for global corporate responsibility call on companies to base their corporate policies on a vision of themselves as one of many stakeholders in the global community and to set high standards of conduct in relation to their employees, the environment, and the communities in which they operate.

7 -- Reverend David Schilling, Director of Global Corporate Accountability Programs for the New York based Center of Corporate Responsibility. International Organizations Companies are realizing that it is in their business interest to do the right thing everywhere they operate. Global firms are keenly aware that their long-term investment goals can only be achieved within a stable, healthy and free of social and financial environment. But companies alone cannot solve the challenges associated with social responsibility.

8 They must work in cooperation with governments, civil society groups, development institutions, and citizens. World Bank Corporations have a social responsibility and moral duty to use the power of markets to make globalization a positive force for all United Nations View on corporate responsibility has contributed to mounting pressure on business to demonstrate its social accountability, especially those multinationals which operate in politically and environmentally sensitive regions of the world The World Business Council for Sustainable Development I believe that it is part of building good sustainable business to help establish safe, secure, stable and peaceful societies.

9 Business thrives where society thrives -- Peter Sutherland former Director-General of the WTO, Co-chairman of BP-Amoco, Chairman of Goldman Sachs International Media Our position as the world s leading media and entertainment company could not have been reached- and could not have been sustained-solely from business success. It rests equally on our tradition of social responsibility and community involvement. At the core of this enterprise is the determination to make a difference as well as a profit.

10 -- Gerald Levin, Chairman and CEO, Time Warner, Inc. What is CSR All About? Although the concept of CSR has been developing since the early 1970s, there is no single, commonly accepted definition of CSR. Below we provide some examples of CSR definitions. "CSR is defined as operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. CSR is seen by leadership companies as more than a collection of discrete practices or occasional gestures, or initiatives motivated by marketing, public relations or other business benefits.