Sustainable Enterprise Vs. CSR Group 4Paul Marra

Marc MikhaelRiette Visser

Corporate Social Responsibility refers to the notion that business organizations should make some direct contribution to the resolution of broad social and environmental problems.

What is CSR?

Community Expectation Blurring of public/private distinction

-Government-Business

Managing Risk ‘New’ form of differentiation, value creation Avoidance of Government regulation Reactive

Who Drives CSR?

Corporations cause a number of social/environmental problems-They have a responsibility to solve them?-They have a responsibility to prevent further problems

arising?

All corporate activities have impacts, companies cannot escape responsibility for those impacts

Some social/environmental issues represent business opportunities and/or it is ‘good business’ to be seen as socially responsible

FINDING A MIDDLE GROUND… JUST DOING ENOUGH!

Ethical Considerations

What is sustainable enterprise? Long-term consumer and employee

value by creating a "green" strategy aimed toward the natural environment

Stakeholders and investors see value creation opportunities and cost reduction opportunities in the strategic use of sustainability concepts, practices and innovation – FT definition

Keeps sustainability in mind when considering all parts of business operations

What is sustainable enterprise? Tries to supply environmentally

friendly products and services to its consumers

Companies who maintain a triple bottom line (economic, social and environmental)

Previously an aspect of CSR Social responsibility and ecological

sustainability ‘How much less unsustainable are

we?’ Very difficult for a business to be 100%

sustainable Balance between Eco-Stability, Eco-

equity and Eco-effectiveness

Differences between Sustainable Enterprise and CSR

Reactive Short sighted Non-core business (branch)

Image focused No additional ROI Ethically questionable

Proactive Long-term outlook

Core business Sustainability as mean to

profitability

Creates competitive advantage Ethical

Industry Outlook

Mike Barry, director of sustainable business at Marks & Spencer, the UK retailer, described their successful Plan A strategy launched in 2007 as a recognition that “the days of corporate social responsibility are over” and that CSR has been replaced by the larger and more strategic idea of sustainable business.

The aim of Plan A is to make Marks & Spencer the world's most sustainable retailer.  The strategy involves 180 commitments to achieve by 2015.  the retailer is working with customers and suppliers to deal with climate change, cut waste, use sustainable raw materials, trade ethically, and help customers to adopt healthier lifestyles. [1]

Thank You!

Questions?