Corporate Social Responsibility …Leadership in the 21st Century
Presentation by:Anne-Maree HuxleyCEO & Founder Models of Success & Sustainability1 Tulip CourtDoncaster East VIC 3109
For the LLMSIG Professional Development ConferenceAdelaide July 9, 2007
What is CSR to you?
What’s in a name?
Corporate Social Responsibility
Corporate Responsibility Responsible Business Individual Responsibility Enlightened Self Interest Universal Responsibility ESG
Corporate Citizenship Sustainability Triple bottom line Responsible business People, planet, profits Best practice corporation Corporate Social Opportunity Total Corporate Responsibility
The Australian Stock Exchange (ASX) suggests that the terms corporate responsibility, corporate social responsibility, and sustainability are used interchangeably.
Definitions
Sustainability “Development which meets the needs of the present without
compromising the abilities of future generations to meet their own needs”.
Our Common Future The Brundtland Report
United Nations World Commission on Environment and Development, 1987
Corporate Social Responsibility “The ethical behaviour of a company towards society. …management
acting responsibly in its relationship with other stakeholders who have a legitimate interest in the business AND OR
CSR is the continuing commitment by business to behave ethically and to contribute to economic development while improving the quality of life
of the workforce and their families as well as of the local community and society at large”.
World Business Council for Sustainable Development
Definitions cont’d
“To stimulate innovative ways of thinking and to support implementation of change in order to achieve growth and wealth
creation for all, whilst meeting the needs of environmental and social renewal through sustainable global business and ethical trading”.
Sharon Jackson – Carlton CSR / Associate Faculty Cranfield University UK
Some say the dynamic behind CSR is that everyone wants to make money and everyone wants to go to heaven.
CSR is an attempt to reconcile these seemingly conflicting desires.
David Grayson, Adrian Hodges: “Everybody’s Business”
Is CSR about how a company spends it’s money?
Or how it makes it’s money?
What is the real cost of doing business?
And who bears that cost?
MOSS definition
Corporate Social Responsibility (CSR) describes a company's approach to managing their business processes to maximise their positive impact on stakeholders both within the company and in wider society.
CSR aims to deliver bottom-line benefits and value creation through responsible business practice.
CSR is not cheque book philanthropy plus PR.
CSR at it’s best is:
Aligned with corporate ambition
Integrates business processes
A reflection of corporate and employee values
“70% of global CEOs agree that social responsibility is vital
for the profitability of any company”
PWC / World Economic Forum
“70% of global CEOs agree that social responsibility is vital
for the profitability of any company”
PWC / World Economic Forum
CSR
Marketplace Workplace Community Environment
CSR has 4 key impact areas
CSR is a journey…
The key to success – build it in, don’t bolt it on!
… “And that’s the key … the business strategy. A contract between the corporation and civil society founded on principles of trust with integrity delivered through integrated business strategy – that’s a real CSR that will make a difference. Not just philanthropy; not just volunteering; not just compliance; not just good community activity; not even sustainable environmental practices at their best or human rights evident in employment and customer service…”
Lord Michael Hastings: Helped establish the CSR Academy in UK -
Former Head BBC’s CSR division now Global Head Corporate Citizenship
KPMG
What is the business case for CSR?
We are global citizens Growing lack of trust in business Increased social and environmental problems – too big just for
governments eg BITC, LCF Globalisation - increasing trade – we must be competitive Markets growing faster than social and political structures Scale of business (Now more corporations than countries in the top
100 economies) Technology - growth of the internet and available data Increase of NGOs (non-governmental organisations) Risk Management – Hardies, HIH, Enron, AWB, Nike Corporate terrorism and product tampering Flu Pandemic Climate Change
Societal Expectations on CSR vs Industry CSR Performance Ratings
Total 21 Countries, 2001-2005 ©Globescan
Human traffickingBlood diamondsOil warsWater wars
Famine…Poverty…
Weather extremes in our region
Photo: Darren Seiler Photo: Greenpeace
The Ten Hottest Years on Record Have Occurred in the Last 16 years
19982002200320062004199719991995 20052001
SOURCE: US National Oceanic and Atmospheric Administration: National Climate Data Center
Melbourne CBD?
What might future generations inherit?
Photo: Fairfax photos
Sydney CBD?
If global warming continues, we can expect catastrophic consequences
Deaths Heat waves and intensity
Disease Drought and wildfires
More than a million species worldwide could be driven to
extinction by 2050.
“There is no doubt we can solve this problem and we must. Global warming is not just an environmental issue – it’s now a moral issue.”
Al Gore – Former US Vice-President
The economics of climate change
Currently 1% of GDP
If not action, could disrupt economic and social activity on a similar scale to that of the great wars and the economic depression of the first half of the 20th century that would be difficult or impossible to reverse.
If no change – cost between 5 – 20% OF THE GLOBAL GDP NOW AND FOR EVER.
Source: Stern Report
Staff shortages – unhappy workers
For the decade between 2020 and 2030, the labour market in Australia will shrink from the 170 000 new employees per annum we enjoy today, down to a mere 13,000 per annum. If we do not find a way to engage and reward employees, business will struggle to perform.
Are companies most important assets safe?
A Proven Business Case
Building the Reputation Goodwill
Licence to operate
Building the People Recruitment
Retention
Development
Building the Business Risk Management
Cost Avoidance
Innovation and learning
Access to capital
Financial performance
Corporate Social Opportunity
Introduction of new health and well-being businesses $80 billion franchise industry in Aust
OPSM - Employer of Choice
Toyoto – new hybrid technology
Westpac saved:
- $50 million in employee turnover by the introduction of
flexible leave policies
- $2.5m in lost injury time
- Cut green house emissions by 35%
IAG – reduced risk and helped the community
Corporate Social Opportunity at it’s best. Interface case study.
Interface has a goal is to be the first fully sustainable corporation, with a zero foot print by 2020 but to reach it’s goal, Interface, which operates in 100 countries with more than 5200 staff, had to completely rethink its business philosophy and redesign its entire production systems and processes globally.
LCF SOCIAL AGENDA
BASIC EDUCATION“EVERY HEALTHY CHILD, A READER!”
ACCESS QUALITY SURVIVAL
InfrastructureReading Program
LCF ROADMAP 2006
BRIGADA ESKWELA
LIBRARY HUBS
STORYBOOK DRIVE/ BRIGHT MINDS READ
LCF SOCIAL AGENDA
EDUCATIONCAPABILITY-
BUILDINGHEALTH &
SOCIAL SERVICES
ACCESS QUALITY SURVIVALHEALTH CARE
DELIVERYINFORMATION
SYSTEM
Scholarships= 24
Infrastructure = 8
School Buildings
Management Technology = 5
CurriculumDevelopment/InstructionalMaterials = 8
TeacherTraining = 9
Reading Program =12
Info. & Comm.Technology = 16
Fairs/Competitions = 2
Financial Support = 2
Livelihood = 1
Tutorials/Bridge Programs
FeedingProgram
Immunization
School-basedScience & Math
clubs
Curriculum Dev’t/Teachers Training/
IT/InstructionalMaterials
LCF ROADMAP 2006
Library Hubs
Science/computerlaboratories
The Virgin Earth Challenge is a prize of $25m for whoever can demonstrate to the judges' satisfaction a commercially viable design which results in the removal of anthropogenic, atmospheric greenhouse gases so as to contribute materially to the stability of Earth’s climate.
Some companies are also addressing societal issues their industry have caused…
Dove Campaign for Real Beauty www.campaignforrealbeauty.com.au
Pro Age All ages, all colours all shapes Self esteem Challenging “harmful beauty stereotypes” and images of unattainable
beauty
“A person's physical appearance shouldn't be defined by outmoded, even oppressive societal expectations”
Dr Robert Butler International Longevity Centre
“The biggest gripe is stereotypes they encounter and their invisibility in the media that surround them… they tend to see women who take enormous
pains to remove any visible signs of age or the signs have been erased in the photographs. They see people playing by old rules: mourn your youth or mimic it. What ever you do don’t reveal the
dirty secret of your age” Dr Nancy Etcoff- Harvard University
“If you want to build a business to last, you will take Corporate Social Responsibility seriously. Talented employees demand it, informed customers expect it, long-term investors will require it. Embedded in the business, CSR can be a source of creativity and innovation, leading to new products and services, access to new or under-serviced markets, or even new business models.
Smart businesses know they will not have all the CSR answers themselves. They will learn from each other and from stakeholders in business”.
David Grayson OBE,CBEDirector, Business in the Community (UK)Principle BLU and Strategic Rail Authority
Co-Founder Project North East. Co-Author Every Body’s Business
& Corporate Social Opportunity
Is it time to make CSR / ESG / Sustainability a greater part of your life and or business?
What can and will you do?
Prerequisites
Professor Jerry Porras – Stanford University (Author “Successful Habits of Visionary Companies” suggests they all have 1 thing in common….B-HAGS
Innovation - new ways of thinking to effect positive change
Will and tenacity to make the hard decisions, investments and sacrifices
What could you personally could do to make a differenced as an individual?
If you can see it – you can create it….
Never doubt that a small group of thoughtful committed people can change the world; indeed it is the only thing that ever has.
Margaret Mead
"If you think you're too small or insignificant to make a difference, you've obviously never slept with a mosquito"
Anita Roddick - Founder of
The Body Shop
Thank you…
Questions?
Presentation notes will be found at www.moss.org.au – past events.