Introducing corporate social responsibility

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Introducing corporate social responsibility

• Institute of Public Relations
• 29th April 2003

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Robert Colmer
Shell International Chairman IPR CSR Network
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CSR

• . "Corporate Social Responsibility is the
  continuing commitment by business to behave
  ethically and 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
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CSR Different the world over?

• "CSR is about capacity building for sustainable
  livelihoods. It respects cultural differences and
  finds the business opportunities in building the
  skills of employees, the community and the
  government" from Ghana
• CSR is about business giving back to society"
  from the Philippines.

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And of course Brussels

• The European Commission defines corporate social
  responsibility as essentially a concept whereby
  companies decide voluntarily to contribute to a
  better society and a cleaner environment.
• (Source European Commission, Green Paper July
  01)

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What issues does CSR address?

• CSR includes a wide variety of different issues,
  including some or all of the following depending
  on your definition.
• Workplace issues (training, equal opportunities,
  etc.)
• Human rights
• Impact on the community
• Reputation, branding and marketing
• Ethical investment
• Environment
• Ethics and corporate governance
• Health and safety

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Profits or Principles?

• Does There Have to Be a Choice?

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What is the role of Business?
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Milton Friedman

• The Business of Business Is Business

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The Changing World
Engage Me!
Tell Me
Show Me

• Trust Me

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"Two in three citizens want companies to go
beyond their historical role of making profit,
paying taxes, employing people and obeying all
laws they want companies to contribute to
broader societal goals.The Millennium Poll on
Corporate Social Responsibility, September 1999
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Sustainable Development

• The Bruntland Commission defined sustainable
  development as "development that meets the needs
  of the present without compromising the ability
  of the future to meet its own needs"

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Shells Experience
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Brent Spar disposal
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and the Nigeria issue
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A changed society impact on business
Impact on Purchase
1997 24 Very Important and 46 Fairly Important
2002 44 Very Important and 42 Fairly Important
Source Mori Key Findings on Corporate
Responsibility 2002
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Shell General Business Principles - Summary
Objectives Energy business high performance
long-term, playerResponsibilities 1.
Shareholder 2. Customers 3. Employees 4.
Business associates 5. Society Economic
Principles Profitability Market economy
Investment criteria Business Integrity Honest,
integrity, fairness no bribes, no employees
conflict of interests, accountability
audits.Political Activities 1. Companies
operate responsibility within local laws no
political payments will speak out on
legitimate matters of social/economic concern.
2. Employees Can engage in political
activities.HSE Continuous improvement,
targets, reporting, a part of the business.The
Community Involvement in social matters not
just businessCompetition Free enterprise
within legal frameworkCommunication Open,
honest.
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The benefits of Corporate Social
ResponsibilityImproved financial performance
Better risk and crisis management Reduced
operating costs Increased worker commitment
Enhanced brand value and reputation Good
relations with government and communitiesLong-ter
m sustainability for your company and society A
licence to operate Long-term return on
investments Increased productivity
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The Role of Government and Legislation

• Voluntary social and environmental practices of
  business, going beyond companies' existing legal
  obligations, can play a major role in filling the
  governance gap in a creative and innovative way.
  CSR is thus not a substitute, but a complement to
  hard law.
• Pascal Lamy, EU Commissioner

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Communication Challenges

• Stay on message

• Keep communicating don't retreat in to the
  bunker

• Be honest and open transparency is vital

• Use assurance systems which demonstrate you are
  living up to your principles

DONT JUST SAY IT DO IT
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I believe very strongly that in the end if a
corporation is perceived by society and that
includes our customers and employees as not
being a useful contributor to society, that can
be a real threat to its existence.

• Mark Moody-Stuart
• Chairman of Business Action for Sustainable
  Development

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Shell and CSR
Corporate Community Investment
Corporate Responsibility
Indirect Influence
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The Emergence of Business Standards - Critical
developments in Corporate Governance Early
Industrialised Country OECD trends
C21st
Social Concerns
90s
Corruption
80s
Supply Chain
70s
Environment
Quality Consumers
Widening Scope of Reporting Requirements
60s
Labour, Health Safety
Codes Compliance Voluntary standards -
Voluntary Codes/ Regulation - audit - compliance
- public reporting ...
Financial Management
C20th
Emerging pressures for Standards Transparency
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Doing Business or Doing Good?

• Do Good Business

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The IPR CSR Grouphttp//www.ipr.org.uk/csr/