December, 2012
AGENDA
What is CSR Why CSR Business Benefits
Human Resources Risk Management Brand Differenciation License to Operate
It is a form of corporate selfregulation, integrated into a business model. CSR is now a main-stream approach to busines
CSR Definition 1
European Union : [CSR is] a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
CSR Definition 2
World Business Council for Sustainable Development : We define CSR as business commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life.
CSR Definition 3
The Kennedy School of Government (Harvard University), CSR Initiative :
The term [CSR] is often used interchangeably with others, including corporate responsibility, corporate citizenship, social enterprise, sustainability, sustainable development, triple-bottom line, corporate ethics, and in some cases corporate governance. Though these terms are different, they all point in the same direction: throughout the industrialized world and in many developing countries there has been a sharp escalation in the social roles corporations are expected to play.
What is CSR
An idea whereby companies integrate economic, social, and environmental concerns in their business operations
Exchange Rates Consumer Confidence Interest Rates
Economic
Governance
Climate Change
Waste
Environment Social
Regulation / Policy
Corruption Communities
Labour / Workplace
France
South Africa
Australia
License to Operate
Would lead to :
Higher retention Better work culture Branding USP
These can draw unwanted attention from regulators, courts, governments, and media
Building a culture of doing the right thing can offset these risks
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CSV acknowledges trade-off between short term profitability and social / environmental goals. Focuses on competitive advantage from building a social value preposition into corporate strategy.
Where CSR
Community initiatives in :
Education Healthcare Livelihood generation Environment
Value
Benefits
Shared value (Business, institutions, community) Promotes competitiveness and innovation Promotes sustainable business model Integrates business into community Develops Human Capital Incorporated into business strategy
Complianc
Mitigates operational impact Mitigates operational risk Supports external relationships Corporate Philanthropy & Sponsorship Short term benefits / not always sustainable Limited funds available Limited impact; budget allocated among many charities Corporate competencies / assets are not fully utilized Misalignment between business and social responsibility strategies / functions Results in minimum business and social impact of Programs
Risk Mitigation
HR Impact Proactive Compliance
Brand Building
License to Operate
Higher Valuations
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