For the CEO and Board, the challenge is to have a clear map of their businesses
impact on and interactions with society
Its about proactively managing the company’s role in society rather than having
others do it for you
What differences does globalization makes
Globalization
To date globalization has been achieved at the cost of a big increase in inequality
and with insufficient regard to its negative environmental impacts
For companies operating internationally the reaction of different societies will be a
key determinant in shaping the markets of the future
Globalization has magnified the social impacts of business
Business will need to be able to source its raw materials and manage its
manufacturing sustainably at a time when natural resources are under pressure
It is estimated that current use of agriculture will leave 5 percent of world’s land barren by
2025
Water shortages which currently affects 20 percent of world’s population in 30 countries
are expected to rise to 30 percent of the world’s population in 50 countries by 2025
Millennium Ecosystem Assessment-2005
Millennium Ecosystem Assessment conducted by business, government and international institutions under the
aegis of the United Nations
It examined the linkages between human well-being and ecosystems through the lens of “ ecosystem services” –
These are the benefits we get from the environment: food, water, timber, erosion regulation, climate control etc
Of the 24 ecosystem services assessed only 4 were increasing, 5 were stable and 15 were in decline
However generous or creative the philanthropic activity of the company is, it can
not substitute for the impact of doing business in a responsible and sustainable way
Voluntary contributions pale into insignificance in comparison with the impact of
core business activities
Role of Business in Society: Social Impacts
Company’s role in society
Board should review the following five areas while evaluating the company’s
role in society
1. Companies “ foot print” in society
2. Values governance and employee engagement
3. Strategy and marketing development
4. Industry priorities
5. Consistency of corporate relations and communications
Checklist for CEO and Board
Check that your own house is in order, own operations and throughout the
value chain.
Understand your company’s footprint- your impact on society and the
environment
Has your company joined-up corporate governance and corporate
responsibility
Have all employees been engaged in delivering the standards of social,
economic and environment performance
Has the social and environmental footprint of the company been incorporated
into corporate strategy development
Is the development and marketing of brands, products and services meeting the
needs of consumers as citizens
What are the industry priorities-environmental, social and economic- and what
are company’s corresponding strategies
Do your corporate communications offer society the opportunity to form a
well-founded view of your company
Do you engage with your stakeholders and listen to their concerns and
expectations
Interlocking Agenda: overlapping interests of
different groups in Society
Framework of engagement with society
How to build trust?
‘walking the talk’ on social and environmental commitments
Making performance transparent and accounting for what is and what is
not achieved
Demonstrating through a willingness to work in partnership that the
company is alive to the issues of globalization and willing to pay its part in
addressing them
Board Checklist- Actions and Measures
HUL- Different approaches to addressing
social issues
LIFEBUOY- SWASTHYA CHETANA
Aims to educate 200 million people about basic hygiene habits- including hand
washing by soap
Good example of a marketing programme with social benefits
PROJECT SHAKTI