Corporate Social Responsibility

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Corporate Social Responsibility
Stabsabteilung Wirtschaftspolitik
Diversity Management
by Andreas Schneider Austrian Economic Chamber
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Historical Development of CSR

• 1950s First scientific discussions on CSR in
  USA.
• 1953 Bowen Social responsibility of businesses
  has to orientate on social expectations and
  values.
• 1970s Companies seen as a part of the society
  have also rights and duties as others and in
  order to benefit from nonmonetary social
  achievements they should act responsible. Due to
  ethical reasons they should take the
  responsibility on their impacts on the society.
  Basic-idea for CSR.
• since mid of 90s discussions in Europe (esp. GB,
  GER F)
• 2001 Green Paper European Commission
• Paralell discussion on sustainability
• 1987 Brundtland Report sustainable
  development meets the needs of the present
  without compromising the ability of future
  generations to meet their own needs
• 1992 Conference in Rio
• 1999 World Economic Forum in Davos Kofi Annan
  appeals for a Global Compact for human rights,
  working standards and environmental protection
• 2002 Johannesbourgh Rio follow up

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CSR Historical Development Evolution
XXI Century Modern understanding of CSR
Environmental
Social
1970
Economic
Globalization
There is one and only one social responsibility
of business to use its resources and engage in
activities designed to increase its profits so
long as it stays within the rules of the game
(Milton Friedman 1970)
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Background of CSR Globalisation
National states are still important but no longer
omnipresent rule-enforcers and monopolists of
public goods
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What is CSR ? Definitions

• No common definition in scientific literature
• EU-Green paper (2001) defines CSR as a concept
  whereby companies integrate social and
  environmental concerns in their business
  operations and in their interaction with their
  stakeholders on a voluntary basis
• World Business Council for Sustainable
  Development (2000) defines CSR as the commitment
  of business to contribute to sustainable economic
  development, working with employees, their
  families, the local community and society to
  improve their quality of life.
• CSR is a wide and crossover-concept

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What is CSR ?
Managementtool for the Economy Corporate(Social)
Responsibility Corporate Sustainability
Vision for the SocietySustainable Development
Civil Society
Politics
Companies
Corporate Values
Citizens
Corporate Governance
Corporate Citizenship
Customers
Ethical Responsibilities
Objective economic success with social
responsibility
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The future -3 dimensions in balance
Managing the Future with CSR

• Sustainably successful economic development needs
  an intake environment and social peace.

• Longterm solutions to environmental problems are
  possible only within a healthy economy and healty
  society in the presence of reduced poverty.

• The realisation of societal values and an
  acceptable balance between north and south as
  well as fortunate and less fortunate is best
  achievable in the presence of global economic
  growth and sound environmental fundamentals

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Sustainable econicical ecological social
advantage

• risk minimation

• value increasing

• sometimes also a reduction of costs

• Strenghtening itsmarketposition

• Better Image

economicalresponsibility
Ecolocial responsibility

• more confidence

• new cultur within corporations

Social responsibility

• better working conditions

• motivated staff

• Uniqueness(unique selling position - USP)

Benefit instead of Profit
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The Pyramid of CSR the more the better for all
of us
Win Win Situation CSR as Mission Not doing
good while doing bad
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5 Steps of CSR-Engagements
Some organizations look even further ahead and
think about metastrategy the future role of
business in society and the stability and
openness of global society itself.
5. Step Be a good corporate citizen
Wir müssen dafür sorgen, dass sich alle
engagieren.
4. Stufe Strategische Ausrichtung
Es bringt uns einen Wettbewerbsvorteil.
3. Stufe CSR als Managementaufgabe
So ist eben das Geschäft.
2. Step Erfüllung der Forderungen
Wir tun nur das was notwendig ist, aber nicht
mehr.
1. Step Defensive
Es ist nicht unsere Aufgabe, das in Ordnung zu
bringen.
Source Zadek 2004, S. 127
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Corporate Social Responsiblity two directions
of strategies
- strategic management - competitive advantages
through integration of economic and social
objectives - Citizenship strategies
- principle of legality - avoidance of negative
publicity - Compliance strategies
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CSR and Sustanability within the Company
Nutzen Praxis
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Spheres of InfluenceEconomic, Political,
Social, Ecological
Economic Businesses Economizing Values
Political Government Power-aggrandizing values
Social Civil Society Relationship values
Ecological Natural Environment Ecologizing
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Stages of Corporate Citizenship
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Corporate Citizenship from Top to Bottom
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Stakeholders and Issues and Consequences
Stakeholder an individual, community or
organisation that affects, or is affected by, the
operations of a company / NGO. Stakeholders may
be internal (e.g. employees) or external (e.g.
customers, suppliers, shareholders, financiers,
the local community). For strategic planning and
acting it is necessary to know the different
groups of stakeholders as accurately as possible
and in order to meet their needs and impact on
the company to analyze their aims and the
relationship to the company
Transparency
Increasing Importance of Reputation Management
Increasing Importance of Stakeholder Relations
Environment
Sourcing
Suppliers
Customers
Diversity
Economic Development
Communities Interest Groups
Shareholders
CSR
Partnerships
Employees
Human Rights
Governments
Ethics
Sustainable Development
An Institutional Revolution
Increasing Importance of Ethics Management
Work-life
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Stakeholders in a hierarchial relation?
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Importance of ethical production for the decision
of buying the product
Das ist beim KAUF von PRODUKTEN -
Durch-schnittliche Note 1,4 1,5 2,6 2,6
Quelle IMAS-Repräsentativumfrage 2004
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CSR within the Austrian Economic chamber as an
employer

• Being an example for 300.000 members
• Education schemes for employees,
• life work balance,
• health at work,
• works council,
• corporate volunteering,
• social sponsoring
• Active Diversity management
• Sustainable procurement, energy saving
  investments
• Expanding stakeholder dialogue etc.
• Etc.

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Diversity Management as important part of CSR
www.stop-discrimination.info
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What do we mean by diversity?

• Recognising diversity means understanding how
  peoples differences and similarities can be
  mobilised for the benefit of the individual, the
  organisation and society as a whole.
• Complying with legislation is only a first step.
  By looking at how the diversity of people can be
  mobilised to create value and advantage, they can
  take another step to becoming organisations of
  choice. Many people now recognise that valuing
  and pursuing diversity is vital for organisations
  and individuals.
• But having a diverse workforce does not
  automatically translate into positive benefits.
  Diversity must be effectively managed to reap the
  diversity dividend.

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What are possible benefits of managing diversity
effectively?

• Recent research shows how creating and managing a
  diverse organisation can provide real benefits.
• Diversity management strategies can help to
  create a link between the internal and external
  aspects of the work of an organisation. Whilst
  each organisation needs to work out its own
  priorities, these benefits can include
• gt Attracting, recruiting and retaining people
  from a wide talent base.
• gt Reducing the costs of labour turnover and
  absenteeism.
• gt Contributing to employee flexibility and
  responsiveness.
• gt Building employee commitment, morale and
  discretionary effort.
• gt Managing better the impact of globalisation and
  technological change.
• gt Enhancing creativity and innovation.

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Diversity Management The Business Case
Volkswagen The Global Business Coalition on HIV/
Aids (NY) appreciated the Information an
Trainingprogramme of VW in combating Aids in
South Africa with theBusiness Exellence in the
Workplace Award.
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Intentions on interest management K. Thomas
My interest Commands! (EGO)
compete
agree
colaborate
I am not interested (INDIFFERENT)
avoid
let
No interest on others point
Deeply interested on others point
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Thank you for your attention! Andreas
Schneider Austrian Chamber of Commerce
(WKÖ) andreas.schneider_at_wko.at