CSR

The new standard for enterprising in the 21st century

RSM alumni Willem Lageweg7 february 2007 CSR Netherlands

Contents

CSR is about innovation and ethics

Who and what is CSR Netherlands

Reasons, motives and advantages of CSR

Practical examples

New markets and products due to CSR

Beyond CSR

Important moments in the history of CSR

1973 Club of Rome

1987 The Brundtland report

2000 SER-report ‘Winst van waarden’

SER-advice for CSR

‘De corporation creates value in three areas (triple bottom line)’- People- Planet- Profit

Stakeholder dialogue

Transparency and responsibility

CSR

Planet

PeopleProfit

The corporation of the 21st century

Problem sharing/business ethics

People, planet and profit are not always in line

Code of conduct

Make cases and dilemmas discussable

Ethical assessment method

Commission Ethics headed by a member of the board of directors

Importance of internal communication

“with great power comes great responsibility”

Some ethical issues faced by Rabobank

The financing of soya cultivation in the tropical rainforests of Brazil

Real estate transactions by customers with a questionable reputation

Financing coffee shops

Wealthy Arab customer who does not want to be helped by a woman

Female employees with head scarfs

CSR is innovation!

Process innovation

Product innovation

New markets

Finance innovation

Marketing and communication innovation

Governance innovation

Etc.

• National CSR network (sharing knowledge, experiences etc.)

• More than 275 partners (companies, NGO’s, consultants etc.)

• Focus: stimulating CSR among entrepreneurs (especially SME’s)

• The national CSR portal (www.mvonederland.nl)

CSR Netherlands

Our ambition

CSR from niche to

mainstream

Programs at several levels

Sector (cooperation with trade organizations)

Regional (cooperation with chambers of commerce and municipalities)

International (country studies/toolkits)

Supply chain

Business issues (marketing, procurement, transparency, HR, communication, etc.)

Cooperation with trade organizations

Cooperation with chambers of commerce

Starters tips

www.internationaalondernemen.nl/MVO(China, India, Russia, Brazil, South Africa, Indonesia)

Leaflets about CSR and specific business items (transparency, procurement, marketing, HRM etc.)

Our ecological footprint

In 2050 we need two planet Earths to feed and serve human kind

Ecological footprint per person

USA 9,5 ha

The Netherlands 4,4 ha

Afghanistan 0,1 ha

World average 2,2 ha

Available 1,8 ha

CO2-emission

temperature

Many reasons for the rise of CSR

Recalcitrant/repositioning governmentsInformation society and global villageHealthy lifeCompetitive powerLabor participation and qualityLivabilityPoverty, inequality, human rightsEtc.

Three motives for CSR

Because we have to

Because it pays

Because we should

CSR pays

CSR: because it pays (2)

Reduction of costs

Image and differentiation advantage (public; labor market; consumer market; government)

Company pride and – loyalty employees

New products and new markets

The new ‘level playing field’

Market for CSR (1)

Cultural creatives, a market segment that is growing and has purchasing power

Amounts up to 15-25% of the market (> 1.6 million customers)

Important items: authenticity, ecology, non-discrimination, non-materialistic and livability

Key elements cultural creatives

CC NL

Willingness to pay more 86 53

Worried about behavior of large corporations

97 76

Interested in exotic cultures and their traditions

91 66

Market for CSR: small first movers

Market for CSR: mainstream

Strategic value

CSR in the world of SME’s

Van Dorp InstallatiesKlostermann installatietechniekDrukkerij WeddingEosta groothandel groente en fruitEcostyle meststoffen en gewasbeschermingValid Express koeriersdienstenGulpener bierGubba internetshopCamping ThyenkampDagblad Trouw

CSR in SME’s (2)

Antropia congrescentrumHappy shrimp farm (garnalenteelt)Bouwcarrousel sloopbedrijfWillems bouwbedrijfHermadix coatings2012 architectenGreen Wheels autoverhuurBrennels kledingWindunieVan Udenhout autodealer

CSR – media

An integrated approach

CommunicationInvestment and Fiance

strategie

Vision & Mission

Norms & ValuesProductsDistribution

HRMInternal policies

strategie

‘walk your talk’

walk your talk

CSR and the Rabobank

verantwoording afleggen; openheid; overleg en dialoog; sponsoring; issue-management

kantoorsluitingen; service in zorgcentra; kantoren in belastingparadijzen; microkredieten inontw.landen

energie- en afvalbeleid;inkoopbeleid (mensenrechten; duurzame producten)

diversiteit; ARBO; employability; sabbatical leaves; beloningsregelingen; lease auto’s

gedragscode per productcategorie; criteria voor kredietverlening; starters; nieuwe Nederlanders; intensieve veehouderij; dierenwelzijn; mensenrechten; beleggen; groenfondsen; fiscaliteit

fusies en allianties; landenbeleid (mensenrechten);3 beleidskompassen (klant, medewerker, financieel); winstbestemming

communicationInvestment and fiance

visie & missie

normen & waarden(o.a. 26 codes)

Products and servicesDistribution

HRMInternal policies

strategie

walk your talk

Current CSR topics (1)

CSR in core business ( PM Philips has already 2 billion euros sales of green products)

Production chain agreements/ sustainable purchasing

(PM Government to 100% sustainable procurement by 2010) Climate neutral

(PM Interface climate neutral in 2020)

New partnerships (PM Super de Boer/ Stichting Natuur en Milieu and OxfamNovib: Mc

Donalds and Greenpeace)

Current CSR topics (2)

Consumer information (convenience and pleasure)

(PM I chose deliberately products form Unilever, Campina and Friesland Dairy Foods)

Transparency/responsibility (PM Banks and investors demand more and more CSR-information)

Leadership (PM Hans Weijers from Akzo)

CSR part of the rewarding system (PM Shell, Rabobank)

Future of CSR

From:

Reputation and risk management (control)

To:

New products and new markets (innovation)

Shareholder Value Model

Examples of ‘new’ CSR markets

Sustainable energy (wind, sun, biomass, etc)Climate neutral productionSustainable designing, building and installationSustainable transport (Greenwheels, hybrid cars, OV bikes, etc)

Consultancy services (strategy, engineers, accountants, communication, training, etc)Sustainable tourism and recreationHealthy and fair foods and drinks Financial services (investments, savings, cards, micro credits, etc)

Call by CSR pioneers in SME sector

Put sustainability and innovation at the top of

our national agenda

Towards a new national Delta plan

The Netherlands in 2010

Frontrunner in sustainability* and innovation

* people, planet en profit Nederland nu nr 15 (2003: nr 6)

CSR

The new standard for enterprising

in the 21st century

Proposition 1

In 2010 the ecological footprint is the most important criterion to judge the CSR performance for especially the larger companies

Proposition 2

Product chain management and climate neutral production are for the larger business community strategically the most important CSR topics for the next few years

Proposition 3

In the next few years people and planet indicators will be as important for the bonuses and other forms of variable elements in the rewarding system as pure financial and commercial results

Proposition 4

The expression CSR will no longer be used after 2010. CSR is a regular part of mainstream business at that moment