CEO Briefing on CSR - Zambia Chamber of Commerce and Industry

Presented by

Wayne DunnProfessor of Practice in CSR (McGill University)

President & Founder, CSR Training Institutewayne@csrtraininginstitute.com

CEO Breakfast DiscussionOn Corporate Social Responsibility

Sponsored ByZambia Chamber of

Commerce & IndustryLusaka, Zambia

June 7, 2016

Why Me? Who is Wayne?

• Professor of PRACTICE in CSR, McGill University• Saskatchewan Farm Boy• Accidental Academic• 2 seasons diamond drilling (Gold/Uranium)

• 25+ years of practical, global CSR experience• About 100 projects (programs, policies, strategy, relationships, innovation, etc.) Many

very complex (e.g., industry HIV/AIDS strategy in South Africa and Papua New Guinea). Some great successes, at least one social license failure.

• Over 40 countries spanning all continents (urban, rural, indigenous, traditional, etc.)• 15+ years of African experience• Numerous awards (1st private sector winner of World Bank Development

Innovation Award, Stanford Case Study, etc.)• Developed McGill | ISID Executive Program on CSR Strategy &

Management• Trained hundreds of executives, leaders and practitioners in CSR Strategy

and Practice• Consulted across industries, geographies and sectors on CSR, sustainability,

strategy and operations

Outline

• Where business meets society and environment

• The world has changed, and HOW!

• Growing societal expectations

• Business Responses – the 4 eras of CSR

• Multi-sector partnership framework

• Discussion

Don’t get stuck on languageIt is ‘under development’

• Corporate Social Responsibility (CSR)

• Sustainability

• Corporate Responsibility

• Social Responsibility

• Environment, Social and Governance (ESG)

• Shared Value

• Social Investment

• Local content

• Social License

• …… and more …..

Where business meets society and environment

Business

Society

Environment

• Rapidly evolving

• Dynamic

Lots can happen where business meets society and environment

Business

Society

Environment

• Value Creation

• Value Destruction

• Value Preservation

• Opportunities

• Innovation

• Partnerships

• Opposition

• Destruction

Has the World Changed?

1990s• NGOs

• Communications

• National Governments

• Business

• Technology

Today• NGOs

• Communications

• National Governments

• Business

• Technology

Society expects more ANDhas more power to force change

The world has changed

• Isolated world gave more power and influence to large institutions (government, business, etc.)

• More focus on local issues, standards and expectations

• Globalized inter-connected world • Emerging global standards and norms• Increased democratization of power and

influence

• Anywhere is everywhere

Increasing societal expectations and influence

0

50

100

150

200

250

300

1975 1980 1985 1990 1995 2000 2005 2010 2015

Soci

etal

Exp

ecta

tio

ns

& In

flu

ence

Applies to organizations of all types, but especially business

*directionally indicative data derived from SWAG analysis

Social value imperativeapplies across industry, sector & geography

Evolution of CSRCSR: Beads & Trinkets Era

Framework

Plan

?Results?

System

CSR: Throwing Money Era

Policies & Good Intentions

Solving Social Problems

Charity & Philanthropy Era

• CSR is about philanthropy and charity

• Done on the margins of business

• Unrelated to core business activities and operations

• Not necessarily about business or shareholder value

• All about giving back to society, about caring and sharing

•Altruism is the game

Impact & Value Optimization Era

Business

Society

Environment

• Society

• Environment

• Business

• It’s OK to have a strong focus on self-interest

• Selflessness is not sustainable

What’s in it for…

Impact & Value Optimization Era

• All about value alignment• Business

• Society

• Environment

CSR Value Optimization Strategy

Where to start

• Societal Needs?

• Environmental Needs?

• Far too often organizations only look outside to society and environment to plan CSR strategy and programs

• Results• Positive external impacts on society and environment• Disconnect with core business value• Philanthropic/Charity focus• Weak internal business case• Marginalization of CSR team• Not sustainable

CSR Value Optimization Strategy

What about

• Business Needs?

• What are your core business issues• What keeps your CEO awake at night

• What does your CFO worry about

• What are your HR Challenges

• What worries your CTO

• Engineering, Operations, etc.

Business Pain Points

CSR Value Optimization Strategy

• Business issues & needs

• Societal issues & needs

• Environmental issues & needs

Zambia Sugar

• Preferential local procurement

• Smallholder Development

• Support to Education• Wellness, Sports,

Recreation• Water

SAB Miller

“We understand that our profitability depends on healthy communities, growing economies and the responsible use of scarce natural resources. We integrate these issues into our business”• Accelerate growth and social development through our

value chains• Secure shared water resources for our business and

local communities• Create value through reducing waste and carbon

emissions• Support responsible, sustainable use of land for

brewing crops

Walmart

• Supply chain value (external pressures & reduce costs)

• Organic/sustainable (marketing & merchandising)

Social value investments of business

• Education

• Health

• Poverty alleviation

• Gender equality

• Environment

• Partnerships

• Equity & justice

Global Development FrameworkCollective Social Responsibility

The Millennium Development Goals (MDGs) are eight international development goals that were officially established following the Millennium Summit of the United Nations in 2000

All 193 United Nations member states and at least 23 international organizations agreed to achieve these goals by the year 2015

General framework for governments, international and multi-lateral agencies, NGOs, etc

Global Development Framework II

Adopted unanimously by the United Nations in a Special Assembly

September 2015

Global development framework elements

• Education

• Health

• Poverty alleviation

• Gender equality

• Environment

• Partnerships

• Equity & justice

Notice any similarities?

Global development framework• Education

• Health

• Poverty alleviation

• Gender equality

• Environment

• Partnerships

• Equity & justice

Social value investments of business • Education

• Health

• Poverty alleviation

• Gender equality

• Environment

• Partnerships

• Equity & justice

Natural Partnerships Unnatural Partners

Increasing mandatory and voluntary compliance

• ICMI - International Cyanide Management Institute (ICMI)

• Conflict Free Gold Standard

• Voluntary Principles on Security and Human Rights

• EITI

• Global Reporting Initiative

• Voluntary Principles

• ICMM Guidelines

• IFC Performance Standards

• Equator Principles

• ILO

• Sustainable Development Goals

• Accountability

• Carbon Disclosure Project

• Many, many more

Global Standards and Norms

Global Development Framework II

Adopted unanimously by the United Nations in a Special Assembly

September 2015

SAB Miller Reporting

Reporting to the SDGsWaterManagement

Supply Chain EntrepreneurTraining

HealthAwareness

1. Poverty

2. Hunger

3. Health &Wellbeing

4. Education

5. Gender

6. WaterSanitation

7. Affordable, clean Energy

8. Economic growth

9. Industry, innovation, infrastructure

Don’t get stuck on languageIt is ‘under development’

• Corporate Social Responsibility (CSR)

• Sustainability

• Corporate Responsibility

• Social Responsibility

• Environment, Social and Governance (ESG)

• Shared Value

• Social Investment

• Local content

• Social License

• …… and more …..

CSR Value Continuum©

• Helps to understand aggregate of project/corporate CSR activities.

• CSR includes a range of activities from Philanthropy through to synergistic value alignment (and a well-rounded and developed program would have activities along the continuum)

• Continuum of value distribution through to value creation

• Shared Value should be created on all CSR projects, not just those at far right. Level and amount of shared value/value creation changes but all are about value and shared value

Value Distribution

Value Creation

• Education• Health• Poverty alleviation• Gender equality• Environment• Partnerships• Equity & justice

© CSR Training Institute 2013

All Good - All the way

it’s all shared value Every CSR investment and activity

should create value for the company & for one or more stakeholders.

How do you experience these issues

• Consultation (formal/informal, history, structure, FPIC, closure)

• Access to land (who/how approved)

• Benefit sharing (what’s in it for everyone)

• Permits & approvals (who approves? when? how?)

• Environmental monitoring (Who monitors? Trust, Communication, Local Involvement)

Summary• Where business meets

society and environment

• The world has changed, and HOW!

• Growing societal expectations

• Business Responses – the 4 eras of CSR

• Multi-sector partnership framework

• Discussion

Thank you for listeningQuestions & Follow-up

Wayne DunnProfessor of Practice in CSR, McGill UniversityPresident & Founder, CSR Training Institutewayne@csrtraininginstitute.comwww.csrtraininginstitute.com