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CSR at government level in Denmark
By Victor Kjær, Deputy Director General, Danish Business Authority
April 23rd, 2012
Agenda
CSR in Denmark on business level The policy approach to CSR in Denmark The Danish national action plan for CSR 2012-15:
Responsible Growth How have Danish companies benefited of stategic
CSR (2 cases)
Facts & figures - CSR in Danish companies • 77 % work with CSR• 65 % do not have a CSR policy and/or strategy• 55 % do not communicate on CSR• 56 % experience barriers for working with CSR. Most
common barriers are lack of time and resources as well as lack of strategic prioritisation
• 31 % do not have knowledge about internal benefits and 48 % do not have knowledge about external benefits of working with CSR
• 64 % have not obtained financial returns from their CSR activities
• Less than 25% are addressing human rights issues• Less than 10% are engaging in multi-stakeholder dialogue
(Source: Danish Government Centre for CSR , February 2010)
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Is there a business case? (Supply push)
Goldman Sachs study (2005): Companies applying strategic CSR outperfom competition by: •Up to 25% better than market in general. •Up to 72% better than branch competitors.
McKinsey / Carbon Trust (2008): About risc and the challenges of climate change:•Companies in certain sector risc loosing up to 65% of their market value (e.g. aluminium og automobiles).•Companies in other sector may increase their market value by up to 85% (e.g. construction industry).
Harvard meta-analysis (Joshua D. Margolis et.al., 2008):•Posistive correlation between Corporate Social Performance and Financial Performance (modest but statistically significant). Equally important: No negativ effect on profits from CSR).
CSR in the Danish Ministry of Business and Growth
Danish Business Authority
Ministry of Business and Growth
Division for Business Control and Legislation:
CSR team
Mediation and Grievance
Institution for Responsible
Business Conduct
Danish Council for CSR
Milestones (selected)
CSR Compass: IT tool (2003-05)
People and Profit: Awareness raising and training
project (2005-07)
First Danish Action Plan for CSR, 2008-10
Danish Council for CSR (2009-)
Mandatory reporting on CSR (2009)
New Danish Action Plan for CSR, 2012-15:
Responsible Growth
What we are doing
• Promoting CSR (tools, guidelines, conferences,
campaigns etc.)
• Coordination of governmental initiatives
• Dialogue with stakeholders (EU, companies,
organisations)
• Preparation of bills for Parliament
• Secretariat for the Danish Council for CSR
Tools: The CSR Compass
Tools: The Climate Compass
Branding: DanishResponsibility.dk
Legislation: Mandatory reporting on CSR
The largest 1,100 companies are required to report on their policies on corporate social responsibility in their annual report – or state that they do not have CSR policies:
1. The company’s CSR policies, including any standards, guidelines or principles for social responsibility it employs, 2. How the company translates its CSR policies into action, including any systems or procedures used, 3. The company's evaluation of what has been achieved through CSR initiatives during the financial year, and any expectations it has regarding future initiatives.
Legislation: Mandatory reporting on CSR
2009: 89 % provide information on CSR. 43% report on CSR for the first time.
2010: 87 % provide information on CSR. 7% report on CSR for the first time.
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Three stages of CSR
Compliance Medium to High Strategic and
Operational Impact
Fundamental Strategic and Operational Impact
InnovationSustainable Business Models
Provide funding and skills
Little Strategic or Operational Impact
Business-driven/strategic CSRCSRas
ValueCreation
CSR as
Risk Management
CSRas
Corporate Philanthropy
What this is about…
http://www.youtube.com/user/Erhvervs#p/u/18/GiOGbz3G6wU
Danish Action Plan for CSR- Responsible Growth
Launched March 2012 by
Minister of Business and Growth Ole SohnFocussing on creation of shared value for businesses and society through innovative partnerships between private sector, public sector, and civil society
- e.g. green business models, inclusive labour market, ethical trade, and responsible public procurement.
Focus areas in Responsible Growth
1. Respect for international principles
2. Responsible growth through partnerships
3. Increased transparency
4. Using the public sector to promote an good
framework for responsible growth
1. Respect for international principles
• Mediation and Grievance Institution for Responsible Business Conduct
• International conference on Business and Human Rights – Principles to practice (May 7th- 8th, 2012)
• Training and guidance in responsible business conduct
2. Responsible growth through partnerships• Partnerships for Responsible Growth
• e.g. by strengthening of SMEs’ work with strategic CSR (workshops, training etc.) in partnership with local authorities and business associations
• Promotion of responsible growth through Danish business activities in developing countries
• New green business models
3. Increased transparency
• Reporting on human rights and climate
• Country by country reporting in the extractive industries and the logging of primary forests
• CSR Awards
• Promotion of sustainable consumption
4. Using the public sector to promote an good framework for responsible growth• Promotion of responsible conduct within the public
sector
• Guidelines for responsible public procurement
• Strategy for intelligent public procurement
• Promotion of marginalised groups’ access to the labour market
Case 1: Slow steaming by Maersk Line
The big Danish shipping company Maersk Line are reducing the consumption of bunker fuel to 10.7 million tonnes in 2010, down from 13.8 million in 2007, by slow steaming.
http://www.youtube.com/watch?v=ZMbfclvIfOw&feature=plcp&context=C49694daVDvjVQa1PpcFO1479-e4TR2doox0Te__9I-lrQND_FEE8%3D
Case 2: CSR in toy industry
The worst thing to a European toy producer would be to discover that suppliers are using child labour.
The Danish toy company Top Toy are working with suppliers to ensure good working conditions and safe products.
http://www.youtube.com/watch?v=O4lBOU0URmE&feature=plcp&context=C4959e65VDvjVQa1PpcFO1479-e4TR2cIUxdlUyp3DnCxZokQelNg%3D
