Corporate Social Responsibility

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Corporate Social Responsibility An
International Imperative
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Corporate Social Responsibility An
International Imperative

• XVIIth World Congress on Safety and Health
• Orlando, Florida
• September 21, 2005

September 21, 2005
Maureen C. Shaw, President CEO IAPA (Industrial
Accident Prevention Association) 207 Queens Quay
West, Suite 550 Toronto, Ontario M5J 2Y3
www.iapa.ca
Maureen C. Shaw, President CEO IAPA (Industrial
Accident Prevention Association) 1-800-406-IAPA
(4272) www.iapa.ca
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Vision
A World where risks are controlled because
everyone believes suffering and loss are morally,
socially and economically unacceptable
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• 88 years of health safety
• 225 committed, skilled employees
• 100 consultants / specialists
• 900 Volunteers

Alone we can do so little together we can do so
much. Helen Keller
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• Consulting Technical Services
• Training and education
• Integrated Management System
• Over 100 products and services

Divide each difficulty into as many pieces as is
feasible and necessary to solve it. Rene
Descartes
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• Collaborating Centre ILO-CIS / WHO
• National/International collaboration
• A focus on young and new workers
• Centre of Health Safety Innovation

Coming together is a beginning Keeping together
is progress Working together is success.
Henry Ford
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International Labour Organization Reports
Estimated Global Occupational Losses

• More than 6,000 people die every day because of
  the work they do for a living
• 2.2 million global work related fatalities every
  year (estimated for year 2001)
• Diseases related to work cause the most deaths
  among workers, hazardous substances cause 438,
  489 deaths annually
• 268 million accidents per year worldwide
• World economic losses are equal to 4 of worlds
  GNP

Source ILO World Day for SH at Work 2005 A
Background Paper
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Corporate Social Responsibility is not the latest
bullet or business fad, it is not a philanthropic
idea. It is an international imperative for both
business and the countries we are operating in.
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Corporate Social Responsibility in a globalized
industrial world is about making the business
investment and the community promise sustainable
for the company and for the communities we
operate in, its people and environment. It
demands responsible governance-based principles
of

• LEADERSHIP
• INTEGRITY
• RESPECT
• COMMITMENT
• RELATIONSHIPS
• ITS ABOUT RESPONSIBLE CITIZENSHIP

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Traditional Attitudes
In the good old days, corporate social
responsibility meant a gently paternalistic
attitude toward employees, discreet donations
towards worthy causes and the company name on
little league hockey or soccer sweaters. Those
were the days, assuming they ever really existed,
when growth was good. The Conference Board of
Canada asserts that corporate social
responsibility has now become a vital part of a
long-term, comprehensive approach to business
success.
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Traditional Corporate Responsibilities
Based on European Sustainable Cities Report
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Leadership Imperatives
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Corporate International Imperatives
Work is an indispensable basis of society, and
furthermore the process of work should be
optimized by guaranteeing decent working
conditions for all.
The goal of the global community should be to
guarantee a universal minimum level in working
conditions and in occupational safety and health
for all working people with the help of global
strategies. The goal should be especially, to
protect the most vulnerable groups, such as
children, migrant workers, disabled people, aging
workers, women and illiterate workers.
Dr. Professor Jorma Rantanen, Finnish Institute
of Occupational Health
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Traditional / Legal Structure of Corporations
The legally defined mandate of todays
corporation is to pursue relentlessly and without
exception, its own self interest, regardless of
the often harmful consequences it might cause to
others. Currently, the most widely-used model
in business is the stockholder model, championed
by Milton Friedman who said the business of
business is business .. Basically, profits are
everything.
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The obstacle to making any significant,
broad-based progress in improving factory health
and safety conditions, not to mention wages,
hours, harassment and discrimination in the
global economy, is not a lack of guidelines or
management CSR command-and-control systems, or
certification schemes. The real obstacles are
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• Lack of political will by corporations to refrain
  from taking advantage of vulnerable countries and
  desperate workers.
• Lack of political will and perhaps lack of
  genuine options, on the part of governments in
  the developing world to enforce regulations and
  establish new ones.
• Lack of resources (financial, informational and
  political) of sweatshop workers to know what
  their rights are, to know how to protect
  themselves on the job, and to be able to
  operationalize such knowledge.

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Ten Drivers of CSR
In 2002, the Conference Board of Canada examined
the rationale behind social responsibility
initiatives among Canadian companies. The
National Corporate Social Responsibility Report
Managing Risks, Leveraging Opportunities
identifies nine common drivers that are the
motivators

• Reputation and brand management
• Business risk management
• Employee recruitment, motivation and retention
• Access to capital
• Learning and innovation
• Cost savings and operational efficiency

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Ten Drivers of CSR (Contd)

• Competitiveness and market positioning
• Social licence to operate
• Improved relations with regulators
• Organizational transformation and continued
  improvement

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Corporate Citizenship
General Electric (G.E.)

• A diversified technology, media and financial
  services company with 300,000 employees and
  customers on more than 100 countries.
• An environment, health and safety (EHS)
  management system that applies to all GE
  businesses
• A consistent expectations of EHS performance at
  all locations
• A standardized compliance auditing and task
  management that provide consistent reporting and
  measurement
• A supplier compliance program

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Corporate Citizenship
Dofasco

• Dofasco is Canadas most successful steel
  producer and a global industry leader with
  operations in Monterrey, Mexico
• For 91 years they have focused on building
  enduring relationships with customers,
  shareholders, employees, suppliers and
  communities.
• Committed to the principles of sustainability and
  corporate social responsibility.

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Corporate Citizenship
Dofasco (cont.)

• Dofasco is listed on the Dow Jones Sustainability
  World Index, one of only 13 Canadian Companies.
  Sustainability-driven companies achieve their
  business goals by integrating economic,
  environmental, and social growth opportunities
  into their strategies.
• Dofasco has been recognized as a top 50 employer
  in Canada. Received the National Quality
  Institute Healthy Workplace Award in 2002.

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Corporate Citizenship
Bruce Power

• Canadas largest independent nuclear generating
  station with 3,600 employees
• Achieved 9.6 million hours without an acute
  lost-time injury
• Its corporate values statement reads in part We
  will
• Always place nuclear safety as the overriding
  priority
• Accept personal responsibility for our own and
  others conventional and radiological safety
• Always take into account the environmental
  implications of what we do
• Always place safety before commercial gain
• Strive for continuous improvement in safety
  awareness and performance

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Reputation is not yours. Someone else gives it
to you based on your performance.
Duncan Hawthorne, President CEO Bruce Power
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Growing Support
While the achievements of the previous
organizations are unique to each of them they are
not operating in isolation. Many factors and
forces are working to help businesses to assume
greater CSR.
New corporate models Virtue Matrix corporate
model New International Standards ISO 26000
social responsibility guidelines New Legislation
Canadian Bill C-45 New corporate Initiatives
Canadian CEO Health and Safety Leadership Charter
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Leverage Corporate CSR Opportunities
Understand the footprint your organization leaves
in the world around you the following framework

• Governance and management practices
• Human resources management
• Environment, health and safety
• Community investment and involvement, and
• Human rights

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Leverage Corporate CSR Opportunities

• Understand your options
• Figure out what you can do better. Conduct a cost
  / benefit analysis of doing things better versus
  just staying the course and build a strategic
  plan.
• State your intentions
• Create a social responsibility policy or adapt
  existing vision, mission and value statements to
  reflect your organizational commitment. Involve
  your best people in the process and demonstrate
  top-level commitment

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Leverage Corporate CSR Opportunities

• Set Expectations
• Shift organizational efforts from achieving to
  exceeding the minimum standards set by regulatory
  agencies. Identify, establish and work towards
  more ambitious corporate standards of performance
• Create your own markets
• Stimulate commerce and development at the bottom
  of the Worlds economic pyramid the position of
  most workers in developing countries.

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The World Pyramid
Purchasing power in US dollars
Most companies target consumers of the upper
tiers of the economic pyramid completely
overlooking the business potential at its base
the people at the bottom of the pyramid make up a
colossal market
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Leverage Corporate CSR Opportunities

• Set Expectations
• Shift organizational efforts from achieving to
  exceeding the minimum standards set by regulatory
  agencies. Identify, establish and work towards
  more ambitious corporate standards of
  performance.
• Create smart partnerships
• Work with industry groups and/or other
  organizations to create and promote voluntary
  standards. Share your own successes with others.
  Seek out organizations that can help you achieve
  your social responsibility goals.

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Leverage Corporate CSR Opportunities

• Encourage greater accountability at all levels of
  society
• Workplaces have to show responsibility, but so do
  individuals, communities, institutions and
  governments.
• More transparency and accountability
• Just being socially responsible is no longer
  enough. Corporations have to make the process
  visible and accountable. Voluntary reporting is a
  core component of CSR.

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In organizations, real power and energy is
generated through relationships. The patterns
of relationships and the capacities to form them
are more important than tasks, functions, roles,
and position.
Margaret Wheatly Leadership and the New Science
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References

1. Bakan, Joel, The Corporation the Pathological
   Pursuit of Profit and Power, Penguin Canada,
   2004.
2. GE 2005 Citizenship Report, http//www.ge.com/en/c
   itizenship.
3. Martin, Roger, "The Virtue Matrix," Harvard
   Business Review on Corporate Responsibility,
   Harvard Business School Publishing Corporation,
   2003.
4. Garrett Brown, article to be published in
   Industrial Safety Hygiene News, September 2005
5. The National Corporate Social Responsibility
   Report Managing Risks, Leveraging Opportunities,
   Conference Board of Canada, http//www.conferenceb
   oard.ca/documents/607-04NationalCSR-RPT.pdf.
6. Prahalad, C.K. and Allen Hammond, "Serving the
   World's Poor, Profitably," Harvard Business
   Review on Corporate Responsibility, Harvard
   Business School Publishing Corporation, 2003.

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Share Our Vision -
A World where risks are controlled because
everyone believes suffering and loss are morally,
socially and economically unacceptable.
Jennifer Quintal Age 9
Maureen C. Shaw NSC Orlando, Fl 2005