Corporate Social Responsibility

1

• Corporate Social Responsibility

2

• Corporate Social Responsibility
• Ethics
• Corporate Citizenship
• Corporate accountability
• Sustainability

3

• CSR
• Achieving commercial success in ways that honor
  ethical values and respect people, communities
  and the natural environment

4

• CSR
• Addressing the legal, ethical, commercial and
  other expectations society has for business and
  making decisions that fairly balance the claims
  of all key stakeholders

5

• CSR includes issues related to
• Business ethics
• Community investment
• Environment
• Governance
• Human rights
• Marketplace

6

• Business Importance
• Improved Financial Performance
• Reduced Operating Costs
• Enhanced Brand Image and Reputation
• Increased Sales and Customer Loyalty

7

• Business Importance (cont.)
• Increased Productivity and Quality
• Increased Ability to Attract and Retain Employees
• Reduced Regulatory Oversight
• Access to Capital

8

• Key Developments
• Increased Stakeholder Activism
• Proliferation of Codes, Standards, Indicators and
  Guidelines
• More Sophisticated Shareholder Engagement
• Accountability Throughout the Value Chain

9

• Key Developments (cont.)
• Transparency and Reporting
• Growing Government Interest and Action
• Convergence of CSR and Governance Agendas
• Growing investor Pressure and Market-Based
  Incentives

10

• Key Developments (cont.)
• Advances in Information Technology
• Pressure to Quantify CSR Return of Investment

11

• External Standards
• AccountAbility
• The Global Reporting Initiative
• Social Accountability 8000
• United Nations Global Compact
• Organization for Economic Cooperation and
  Development Guidelines for Multinational
  Enterprises

12

• External Standards (cont.)
• The Caux Round Table (CRT)
• The Global Sullivan Principles
• The Keidanren Charter for Good Corporate Behavior
• APEC Business Code of Conduct

13

• Implementation Steps
• Mission, Vision, Values Statements
• Cultural Values
• Corporate Governance
• Management Structures
• Strategic Planning
• General Accountability
• CSR Reporting
• Use of Influence

14

• Leadership Examples
• Chiquita Brands International, Inc
• Starbucks Coffee Co
• BQ
• Novo Nordisk A/S

15

• Interface, Inc
• Our Goal to be the first company that, by its
  deeds, shows the entire industrial world what
  sustainability is in all its dimensions People,
  process, product, place, and profitsby 2020and
  in doing so we will become restorative through
  the power of influence.

16

• Interface, Inc (cont.)
• Our Vision Interface will become the first
  name in commercial and institutional interiors
  worldwide through its commitment to people,
  process, product, place and profits. We will
  strive to create an organization wherein all
  people are accorded unconditional respect and
  dignity one that allows each person to
  continuously learn and develop. We will focus on
  product (which includes service) through constant
  emphasis on process quality and engineering,
  which we will combine with careful attention to
  our customers needs so as always to deliver
  superior value to our customers, thereby
  maximizing all stakeholders satisfaction. We
  will honor the places where we do business by
  endeavoring to become the first name in
  industrial ecology, a corporation that cherishes
  nature and restores the environment. Interface
  will lead by example and validate by results,
  including profits, leaving the world a better
  place that when we began, and we will be
  restorative through the power of our influence in
  the world

17

• Business and Corporate Accountability

18

• Business Importance
• Improved financial performance
• Heightened public credibility
• Reduced costs
• Increased attractiveness to investors
• Improved relationship with shareholders

19

• ..more than 80 of investors would be willing
  to pay more for the shares of a well-governed
  company than for a poorly governed company with
  comparable financial performance.
• (From a 2000 survey of 200 large institutional
  investors conducted by McKinsey Co., the World
  Bank, and Institutional Investors regional
  institutes)

20

• Business Importance (cont.)
• Early identification of potential liabilities
• Marketplace advantages
• Improved overall management
• Improved organizational effectiveness
• Decreased risk of adverse publicity

21

• Key Developments
• Growth of CSR
• Increased demand for transparency
• Growth in sustainable reporting
• Greater government regulation
• Increased shareholder activism
• Proliferation of social and environmental
  reporting standards
• Increased media attention

22

• Implementation Steps
• Set objectives
• Review company materials
• Review management systems
• Engage board of directors
• Define and engage stakeholders
• Develop formal internal and external
  communication mechanisms
• Engage in continuous improvement

23

• Green Product Design

24

• Business Importance
• Decreased costs increased profits
• Decreased production time
• Customer satisfaction
• Customer retention
• Recognition
• Proactive preparation for regulation

25

• Key Developments
• Take-back laws and extended product
  responsibility
• Updates to existing regulations affecting product
  design
• Industry/government voluntary initiatives
• Industry/NGO collaboration
• Restricted materials lists

26

• Business Importance
• Decreased costs and increased profits
• Decreased production time
• Customer satisfaction
• Customer retention
• Recognition
• Proactive preparation for regulation

27

• Key Developments
• Take-back laws and extended product
  responsibility
• Updates to existing regulations affecting product
  design
• Industry/government voluntary initiatives
• New systems of commerce
• Restricted materials list
• Academic programs

28

• External Standards
• Eco-labeling/enviromental certification
• ISO 14000
• Restrictions on use of hazardous materials
• EU directive 94/62 on packaging and packaging
  waste
• Product-specific mandates ond voluntary efforts

29

• Implementation Steps
• Develop business strategies to capture value from
  lifecycle thinking
• Practice full-cost accounting
• Explore reuse options for materials and products
• Develop markets for green-designed products
• Establish ground rules for product design
• Perform analysis during product design and
  development

30

• Leadership Examples
• Proctor Gamble (PG)
• Volvo
• Electrolux

31

• Sustainable Business Practices

32

• Sustainable Development
• Meeting the needs of the present without
  compromising the ability of future generations to
  meet their own needs.
• (UN Commission on Environment and Development)

33

• Business Importance
• Access to capital
• New Market development
• Asset retention
• Brand image and customer retention
• Innovation

34

• Key Developments
• Increase in sustainability reports
• Growth of markets concerned with sustainable
  products and services
• Strategic partnerships
• Financial markets
• Government-Industry partnership initiatives

35

• Sustainable goals and indicators
• Milestones
• Are we moving towards our destination or heading
  in the opposite way

36

• Economic Vitality
• Goal An economy that is competitive, diverse,
  and attractive to business that maintains and
  expands assets and capital that provides a
  variety of entry-, middle-, and high-level jobs
  and that promotes the well-being of a community
  and its workforce

37

• Economic Vitality Indicators
• Per capital Income
• Why do we care?
• Economic well-being one of three axes of
  sustainability
• Disposable income a measure of economic well
  being
• Having the option to make choices a good thing

38

• Unemployment
• Why do we care?
• Unemployment affects individual and indicates the
  health of the economy
• Communities with high unemployment have increased
  crime, domestic violence, substance abuse
• Less tax revenue available as resource against
• social problems

39

• Productivity of Labor
• Why do we care?
• Measures the value of output relative to the
  resources used to produce it.
• Higher incomes and living standards
• More or resources available for reinvestment in
  growth and the ability to remain competitive

40

• 4. Share of Households Below Poverty Line
• Why do we care?
• High poverty rates impose costs on welfare
  systems and slow economic growth of community
• Poverty usually occurs along with poor health,
  decreased economic opportunity, higher crime
  ratesreduce quality of life

41

• Energy Efficiency
• Why do we care?
• Measures the output of our economy relative to
  the amount of energy used.
• Major input into productive activity and
  consumption
• More efficiency, lower environmental cost

42

• Equity
• Goal A more equitable distribution of the
  positive and negative products of civilization in
  the community. This includes fair access to
  healthy environments, good healthcare, quality
  education, governmental decision-making, economic
  opportunity, and natural and cultural amenities

43

• 6. Why do we care?
• A society in which everyone feels a welcome and
  equal participant, where people take ownership,
  will be more sustainable better able to grow,
  evolve, adapt

44

• Racial disparities in Infant Mortality
• Why do we care?
• High infant mortality is sign that pregnant women
  and newborns are not receiving adequate nutrition
  and medical care
• Racial disparity shows inequity in access to care
• Infant health care crucial to lifelong mental
  health and physical development

45

• Strong Community, Culture, Recreation
• Goal Create or enhance within communities a
  positive sense of local identity and individual
  belonging, which promotes respect among
  neighbors, increases everyones feelings of
  safety and security, and provides abundant
  cultural and recreational opportunities

46

• Newspaper Circulation
• Why do we care?
• Reading newspaper fosters community awareness and
  encourages people to take ownership and engage
  with their community
• Newspapers provide information to enable people
  to get involved with local decision-making and
  disputes

47

• Crime Rate
• Why do we care?
• Crime is indicator of deeper social and economic
  issues.
• Increase crime rate may result from decrease in
  job opportunity, economic stagnation, inadequate
  education, or inadequate policing.

48

• 10. Open Space
• Why do we care?
• Protects natural environment by providing habitat
  for wildlife.
• Absorbs rainfall, minimizing risk of floods and
  sedimentation of waterways
• Provides recreation on land and water
• Protecting space while it is still relatively
  inexpensive, ensures room for parks and natural
  areas against development

49

• Quality Education
• Goal A quality, lifelong education equally
  accessible to all, whereby individuals learn to
  be critical thinkers and engaged citizens with an
  understanding of and respect for the systems that
  support civilization (social, economic,
  environmental) and which provides students with
  the knowledge and skills necessary for employment
  and personal fulfillment.

50

• High School Graduation Rates
• Why do we care?
• Demands for highly skilled, trained, educated
  employees has steadily increased
• High school education minimum in the labor market
• Requirement for accessing various forms of higher
  education and training
• Useful measure of what will be availabe to young
  people later in life

51

• Student/Teacher Ratio
• Why do we care?
• Used to assess potential for student/teacher
  interaction and communication
• Reasonable proxy for establishing average class
  size and student-teacher interaction

52

• Standardized Test Scores
• Why do we care?
• Performance on test provides understanding of how
  many students are acquiring basic skills in
  reading, math, writing.
• Indication of whether students are being educated
  well enough to meet needs.

53

• Higher Education
• Why do we care?
• Strong education systems create large educated
  labor easing location of high tech industries
• Strong education systems help to prevent
  emigration of students from region

54

• Good Government
• Goal A community system of governing that is
  efficient, effective, trustworthy, and
  responsible to citizens and their needs and that
  actively promotes good citizenship and effective

55

• Voter Turnout
• Why do we care?
• Basic measure of how many of us are exercising
  the right to self-government
• Indicator of collective awareness of community
  government

56

• Decent Housing
• Goal A variety of desirable housing options for
  a community members, at every income level

57

• Affordability of Rental Housing
• Why do we care?
• An essential element in the well-being of
  community members and economic success
• Lack of affordable housing hinders economic
  growth, making it difficult for firms to maintain
  labor force
• High cost of housing hinders economic growth

58

• Home Prices vs. Income
• Why do we care?
• Homeownership offers degrtee of security through
  financial equity
• Establishes residents as long-term stakeholders
  in the community
• Homeowners more likely to invest in physical
  improvements and social programs to cohere the
  community

59

• Trends in New Housing
• Why do we care?
• Indicator sheds light on where new housing is
  being built urban, suburban, rural- to monitor
  suburban sprawl considered a significant threat
  to sustainability
• Monitor range of community housing choices and
  prices

60

• Healthy People
• Goal The highest opportunity for community
  members to be healthy, with access to
  high-quality health care and minimized exposure
  to health risks

61

• Life Expectancy
• Why do we care?
• Reflects the health and well-being of community
  population and relative access to resources that
  help keep people alive.
• Longer lives can adversely impact the environment
  and requires responsible sustaiinable decision
  making

62

• Infectious Diseases
• Why do I care?
• Need control to counter catastrophic effect on
  public health, social institutions, the economy
• Social cohesion diminished if poor or minorities
  suffer more from infectious disease than middle
  class whites

63

• Asthma
• Why do we care?
• Common respiratory condition often triggered by
  environmental conditions as ozone concentrations,
  care exhaust, dust mites, roaches, rats, mice,
  tobacco smoke.
• More a problem for low-income families and
  children unable to avoid such conditions
• Asthma linked to other sustainability issues of
  poverty and environmental health

64

• Occupational Safety and Health
• Why do we care?
• Key fundamental rights that reflect values and
  define social aspects of sustainability
• As basic right, problems impose economic costs on
  affected households and community
• Injuries raise insurance rates, cost of doing
  business, cost of goods and services

65

• Efficient Transportation and Land Use
• Goal A choice of efficient, convenient, safe,
  and affordable transportation and land use
  options, providing access to jobs, shopping,
  recreational centers, schools, airports, and rail
  centers

66

• Need for Road and Bridge Repairs
• Why do we care?
• Accumulated road and bridge repairs is indicator
  of whether the communitys economy, heavily
  dependent on transportation, is being sustained.
• Increase in repairs suggests heading for physical
  and economic bottlenecks and a constraint on the
  ability of freight and people to move through the
  community

67

• Vehicle Miles Traveled Per Capita
• Why do we care?
• VMT is a measure of transportation system
  development increase imposes costs, including
  time lost from traffic congestion
• Economic competition compromised by delayed
  workers, consumers, goods
• Vehicles significant source of pollution

68

• Workplace Transportation Options
• Why do we care?
• Tracks location of new office complexes according
  to accessibility to public transit and personal
  vehicle
• Location of development of major employment
  centers today is key to steering land use
  patterns tomorrow

69

• Natural and Ecological Integrity
• Goal Preserve and restore communitys
  ecosystems and the full complement of species
  that chare the community.

70

• Loss of Freshwater Wetlands.
• Why do we care?
• One of the key components of environmental
  sustainability and acts as natural filter for
  ground water supply, reducing the need for
  expensive investments in water purification
• Natural flood protection
• Habitat for migrating birds and other wildlife
• Incubators for sport and commercial fisheries

71

• Nesting Water Bird Populations
• Why do we care?
• Birds at the top of the food chain and indicators
  of general health of the ecosystem they inhabit
• Because reproductive systems sensitive to con
• contamination, good indicators of pollution
• Aquatic ecosystems filter pollution and sediments

72

• River Health
• Why do we care?
• Level of dissolved oxygen (DO) in the river
  systems is widely-used indicator of water quality
  and ability of rivers to support aquatic and
  human life.
• Measure of how well community is sustaining
  natural systems in face of development.

73

• Marine Water Quality
• Why do we care?
• Quality of shellfish habitat way to track overall
  quality of coastal ecosystems
• Share of shellfish habitat deemed safe for
  harvesting by public officials is simple
  indicator of water quality and ecosystem health

74

• Protected Natural Resources
• Goal Maintain the community natural resource
  base

75

• Total Energy Consumption
• Why do we care?
• Changes in energy price or supply have direct
  impact on all sectors of the economy.
• Energy production and consumption create
  pollution in form of greenhouse gases, toxins,
  and radioactive waste.
• Fossil fuels are non-renewable and therefore, our
  energy system is likely unsustainable.

76

• Farmland
• Why do we care?
• Farmland recharges our groundwater, provides
  habitat for wildlife, protects soil

77

• Ocean and Bay Beach Closings
• Why do we care?
• Highly visible events that can drive away
  potential visitors and reduce revenues generated
  by coastal tourism.
• Closings usually due to storm water runoff,
  elevated levels of bacteria or floating debris,
  failures in sewage collection and treatment
  systems resulting in unsustainable conditions for
  community health and economy.

78

• Preserved and Developed Land
• Why do we care?
• Rapid urbanization cuts into open space needed
  for recreation, agriculture species habitat
• Maintaining a balance among conflicting land uses
  is key element of sustainability

79

• Minimal Pollution and Waste
• Goal Minimize the generation and accumulation
  of pollution and waste maximize the use of
  efficient, clean, and sustainable energy sources
  and increase consumer choices for ecologically
  friendly products.

80

• Greenhouse Gas Emissions
• Why do we care?
• US is the largest emitter of greenhouse gases,
  23 contribution from 5 of its population

81

• 35. Drinking Water Quality
• Why do we care?
• A community that cannot provide water to its
  citizens, due to either natural or human
  contamination, cannot be sustained.

82

• Solid Waste
• Why do we care?
• Buried or burned solid waste can lead to ground
  water pollution, poor air quality, land
  contamination, and other forms of environmental
  degradation.
• Political and social battles over where to locate
  and how to pay for waste disposal facilities have
  been historically contentious

83

• Air Pollution
• Why do we care?
• This indicator shows the number of days on which
  ground level ozone, particulate matter, or carbon
  monoxide was measured to be at unhealthy levels
  somewhere in the community.
• Many health problems are associated with poor
  indoor air quality, which is often not measured
  in any systematic way.