Corporate Social Responsibility

1
Corporate Social Responsibility Corruption
Presented by Wayne Dunn wayne_at_waynedunn.com
Chatham House London, U.K. 24-April-06
2
Overview

• So What Is CSR?
• Where Did It Come From?
• What Does it Look Like?
• How Does It Provide a Sustainable Competitive
  Advantage?
• Questions and discussion.

3

• Definition
• CSR 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 of
  the local community and society at large

Source World Business Council on Sustainable
Development
4
CSR is about

• Companies working in partnership with communities
  and others to address
  problems
• Companies promoting good values to their
  employees, suppliers, customers, partners
• Companies investing in social and economic
  development
• Companies being good corporate citizens

5
CSR Drivers/Corruption Challenges

• Globalized world is demanding more of business
• Global media The CNNization of the world
  remote local issues direct to television screens
• Proliferation of NGOs and CBOs direct, well
  organized and financed support to communities
• Internet and other communications innovations
  direct communications from remote projects to
  worldwide audience
• Global Democratization increased attention to
  local issues

6
CSR Drivers/Corruption Challenges (cont)

• Emergence of Global Standards
• Equator Principles World Bank/IFC Environment
  and Social Standards adopted by private banks
• Socially conscious shareholders
• Social Investment Funds
• The Financial Markets
• Dow Jones Sustainability Index (http//www.sustain
  ability-index.com/)
• FTSE Sustainability Index (FTSE4Good)http//www.f
  tse4good.com/
• Domini 400 Social Index (DSI) http//www.domini.c
  om/

7
Social License

• An emerging phenomena
• In addition to more traditional state issues
  licenses and regulatory approvals
• Based on the principle that communities and local
  interests have a valid role in determining
  whether or not a project will proceed
• Communities have inserted themselves into the
  regulatory approval/permitting process and can
  easily disrupt operations that they disapprove of

8
Placer Dome Care Project

• South Africa, Mozambique, Botswana, Lesotho and
  Swaziland
• Poverty alleviation
• Community health
• Industry leadership
• Capacity development
• HIV/AIDS

9
Eldorado Gold - Kisladag Project

• Strategic approach to use mining project to
  facilitate sustainable rural development
• Development of agriculture related industries and
  infrastructure
• Increased involvement of women
• Improved grazing and land management (reduce
  desertification)

10
Porgera, Papua New Guinea

• Working to leave behind a sustainable community
• Development of local, non-mine related, business
• Creation of local infrastructure to support a
  sustainable community after the mine leaves
• National HIV/AIDS PPP Strategy
• Innovative closure planning

11
Sustainable Competitive Advantage

• Triple bottom line (financial, social and
  environmental performance)
• Support sustainable development
• Deal with a variety of stakeholders
• Inter-connected projects with global markets and
  impacts
• Transparent decision making processes
• Broader access to investors and capital
• Management of Reputational Capital

12
The New Reality of Business
13
Competitive Advantage Choices
?
Social Responsibility Ethical Behaviour
Bribery Corruption
14
Competitive Advantage Choices
The Sustainable Competitive Advantage
Bribery Corruption
Social Responsibility Ethical Behaviour
15
Overview

• So What Is CSR?
• Where Did It Come From?
• What Does it Look Like?
• How Does It Provide a Sustainable Competitive
  Advantage?
• Questions and discussion.

16
Question and Answer
Wayne Dunn wayne_at_waynedunn.com