Business revolution? Challenges and opportunities of CSR management

1
Business revolution? Challenges and
opportunities of CSR management

• Róbert Braun, Ph.D.
• Managing Director
• Braun Partners Bulgaria
• 30 October 2008

2
Corporate Social Responsibility What is it?

• The biggest business challenge of the 21st
  century integrating social values of
  stakeholders into business operations.
• Background
• Important changes in structure of society in the
  20th century
• New social role of companies (Milton Friedman)
• stakeholder theories
• reputational crises
• environmental challenges

3
20th century marketing-oriented company 21st
century responsibility-oriented company
4
UNDP CSR baseline study
5
CSR poll international results
Companies do not only have to care about their
shareholders/owners but also have to consider the
interests of their other stakeholders, such as
employees, local communities, customers, civil
organizations, and the environment.
n3000
6
CSR poll international results
The majority of companies in my country do not
only care about their shareholders/owners but
they consider the interests of their other
stakeholders, such as employees, local
communities, customers, civil organizations, and
the environment.
n3000
7
CSR poll in Bulgaria
n1000
8
Accountability Rating Bulgaria

• The top45 companies of Kapital100 the five
  largest financial institutions were accessed by
  international methodology, developed by
  AccountAbility and csrnetwork
• Global 100 list is published in Fortune, local
  lists for the largest companies are published in
  Bulgaria, Greece, Hungary, Russia, South Africa
  and Turkey.
• The four dimension of the evaluation
• Integration of social, environmental and broader
  economic issues into business strategy
• Management systems and governance for social,
  environmental and economic issues
• Identification and engagement of stakeholders
• Impact of company on environment, society and
  marketplace

9
The four domains of evaluation
10
Responsibility-oriented company where we are

• Beginning of the road (even in the UK)
• Only the biggest companies are on the way of
  transformation
• There are only rudimentary management instruments
• Content (environment, organic products) is still
  more important than form (processes, breaks and
  counterweights management systems)

11
Not the name, the change is important.
12
Why CSR/accountability matters stakeholder
perceptions
Reputation management - changing stakeholder
expectations - changing social/cultural
environment - revolutionary milieuSoft
revolution
13
What is soft revolution? effective CSR
SocialBranding
Reputation managementC(S)RAccountabilitySustain
abilityTransparency
Responsibility-oriented (post)modern company
14
Thank you for your attention.

• Contact
• bulgaria_at_braunpartners.hu
• http//bg.braunpartners.hu
• http//accountabilityrating.eu