Wayne Dunn presents on Defining Social Investment and CSR at the Inter-American Foundation’s...

Defining Social Investment and CSR

Executive Seminar on Social Investment and Corporate Social Responsibility (CSR)

Port au Prince, Haiti

October 22, 2002

A History of Creating Innovative Partnerships

www. waynedunn. com

info@waynedunn.com

Wayne Dunn

Hugh Wilkinson

www.waynedunn.com; info@waynedunn.com

Presentation Outline & Objectives

Define CSR and social investment;

Discuss rationale and driving forces for CSR and social investment;

Develop understanding of relevance of CSR to Haitian business community;

Review some examples of CSR/SI activities;

Questions and discussion.

What is CSR?

Corporate Social Responsibility (CSR)

is a concept whereby companies integrate

social and environmental concerns into

their business mission and operations, and

in their interactions with stakeholders.

What is CSR?

CSR is not, per se, about ―charity‖ or

―philanthropy‖

A key dimension of CSR is about private

companies recognizing that being good

corporate citizens is ‗good for business‘.

CSR is about the commitment by business to:

CSR is about companies having a “Triple Bottom Line”

• Make a profit, prosper financially, and contribute to

economic development

…but also, to:

• Behave ethically and contribute to social development

by improving the quality of life of the workforce and their

families, as well of the local community and society at

CSR & “The Triple bottom line”

Financial

Responsibility

Environmental

Responsibility

Corporate Social Responsibility

(Sustainable Development)

Social

Responsibility

Diagram

Triple Bottom Line

VALUES Environmental

Financial

Social

Why focus on social performance?

“In a transparent, globalized world, economic performance, environmental performance and social performance hang together. Business is realizing that it has become an integral part of society and now has wide-ranging responsibilities… shareholder value and social responsibility support each other‖ Göran Lindahl, President and CEO Asea Brown Boveri (ABB) ―Our commitment to community development ―represent(s) an added cost, but is an essential investment in our future…(and) should help us to achieve greater profitability‖. Jay Taylor CEO Placer Dome

―Social responsibility is a matter of hard-headed business logic‖ John Browne, CEO BP-Amoco

CSR: not just for the big firms

Companies big and small

can make significant

contributions to social

development

And: CSR does not

necessarily require a

financial investment.

“By working together to mobilize sustainable investment in the Least Developed Countries, government, business and civil society give hope and opportunity to the world’s poorest”

Kofi Annan

UN Global Compact Secretary-General

CSR is a Global Phenomena

CSR is about Working in Partnership

CSR Is:

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;

Civil Society

Gov’t

Donors

Companies

Beyond Beads and Trinkets

Beyond Beads ‗n‘ Trinkets

A new model for doing business:

To create business value and ―corporate sustainability‖, companies must work with other stakeholders (government, civil society, donors)

to create meaningful development value.

• Rural Development

• Community Health

• Enterprise Development

• Microfinance

• Infrastructure Support

Why is CSR happening?

Globalized world is demanding more of business.

Global media – The CNNization of the world – remote local issues direct to television screens

Proliferation of NGOs – 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

Social Development

Projects

NGOs IFIs Donors

Communities

Private

companies

Governments

The Business Case: CSR Driving Forces

Pressure: a response to

external forces (i.e.— NGOs,

governments, customers,

shareholders and

communities); and to internal

forces (i.e.- employees)

Values: The core beliefs of the

company

Strategy: Enhancement of an

organization‘s long-term

business goals.

Ford Foundation

Diagram

Pressure: Governments

Governments – both North and South - are

increasingly demanding social and

environmental accountability from foreign

investors, and from domestic enterprises.

“Beyond beads and trinkets”

Pressure: NGOs, Communities

How would you like these people showing

up at your annual meeting?

Pressure: Shareholders

‗Socially conscious‘ shareholders

Social Investment Funds (Socially responsible

investment refers to making investment decisions

based on a company‘s social and environmental

practices and on their corporate values and ethics).

The Financial Markets

– Dow Jones Sustainability Index

– FTSE Sustainability Index

What is “Social Investment”?

Socially responsible investment, which refers to incorporating investment decisions with social and environmental concerns

… different from:

Socially directed investment, which is aimed at companies participating in specific social development projects.

Pressure: Consumers, Customers

CSR = Business Value

Business Value

Improved competitive advantage

Enhanced Brand equity / corporate image

Reputational Capital (with customers,

financiers, business community, and with

the public.

In global economy, brand image and

reputation are among a company’s most

valued assets.

Improved financial performance

The Hill and Knowlton's Corporate Reputation

Watch 2002 survey targeted executives in Europe

and North America and found that good corporate

reputation is becoming an essential tool to

increase sales, profitability and competitiveness.

Supply Chain and CSR

Companies increasingly sourcing raw

materials, inputs for their products from

‗socially responsible‘ suppliers

Example: A Haitian manufacturer gains a

competitive advantage with its overseas buyers

because of its socially responsible practices.

CSR: The Development Case

– Poverty Alleviation

– Community Health

– Rural Development

– Environmental Issues

– Local Capacity

Development

– Infrastructure Support

Some Results

Industry leadership

Brand equity/ corporate

image enhanced

Increased employee

satisfaction, loyalty,

Increased sales and

customer and loyalty

Greater opportunity for

growth

Access to/and cost of

capital

Stronger institutions

Economic development

Greater political stability

Community health

Rural development

Education and literacy

Sustainable development

and poverty alleviation

Good values create VALUE ($$$)

Business Results Development Results

Quotes from the World Summit

UN Secretary General Kofi Annan ―lasting and

effective answers can only be found if business –

working together with other actors including

government and civil society– is fully engaged ‖

Prime Minister Chretien (Canada) ―Building

creative and innovative partnerships to promote

sustainable development is a defining theme of

our global agenda‖

Some Examples

Placer Dome Care Project

Poverty alleviation

Community health

Capacity development

HIV/AIDs

Eldorado Gold - Kisladag

Poverty alleviation

Environmental rehabilitation

Rural development

Capacity development

Original objective – mitigate the social and economic

impacts of retrenchment and assist 70% of family units

to become economically active

Innovative rural development and HIV/AIDS program,

delivered at community level across 3.5 million sq km

of southern Africa

– Extensive involvement of women and families

– Pioneered new 13 step process with extensive counseling,

training and support. (Process is being copied by other

development programs in the region)

HIV/AIDS program won

prestigious Development

Innovation Award at World

Bank Development

Marketplace

– Over 2,400 development

projects from 122 countries

CSR can create real

development value

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)

CSR Partnerships

Preceding examples all involved partnerships Care Project – Southern Africa (CIDA Inc., World Bank)

Kisladag - Turkey (CIDA Inc.)

Developmental impacts (health, poverty, etc.) increased through collaboration between private sector and ODA agencies such as CIDA.

CSR in Venezuela

In 1999, Statoil Venezuela entered into a project in partnership with the local office of the United Nations Development Programme, the local chapter of Amnesty International, and a branch of the Venezuelan judiciary to train judges around the country.

Banking and CSR

Support for Micro finance

Promoting private sector by lending to small

enterprises is considered a social responsibility as

well as a commercial opportunity.

– Unibank (Haiti)

– Grameen Bank (Worldwide)

– Citibank initiatives (Worldwide)

CSR in Chile

Pollos Ariztía, a large chicken producer near Santiago.

Company president Manuel Ariztía has taken a lead role in improving education including professional teacher development.

CSR and Columbia

Holcim's Columbian subsidiary, Cementos Boyacá, has

developed a project to help to improve the living standards

of rural communities within the area of influence of the

cement-manufacturing facility in Nobsa.

About 90 girls and boys, selected with the agreement of

their parents, come from farming and mining communities

in which Cementos Boyacá is active. The center's aim is

to educate and train the youth of the region so that they

are not forced to leave it.

CSR and Social Investment: Some Key terms

Good Corporate citizenship

Social Entrepreneurship

Sustainability

Community relations

Business Integrity and CSR

Credibility

CSR/SI Information Resources

See list of CSR websites, resources (handout)

Summary

CSR can and does create bottom line business

value, as well as development value Win-Win!

CSR = sustainability for business (growth & profit)

CSR/ODA/community partnerships = sustainable

development for the environment, for social and

economic development, and for poverty alleviation

Wayne Dunn & Associates

Global leader in CSR and sustainable development

Assessment of CSR and sustainable development initiatives

Increasing value from existing CSR investments

Strategic CSR plans, strategies and partnerships

Design and management of socially directed investments and projects

Development and implementation of CSR communication strategies

Wayne Dunn & Associates Ltd 2457 Bakerview Road

Mill Bay, BC Canada V0R2P0

Tel +1.250.743.7619 Fax: +1.250.743.7659

www.waynedunn.com

info@waynedunn.com

Wayne Dunn presents on Defining Social Investment and CSR at the Inter-American Foundation’s...

Business

Transcript of Wayne Dunn presents on Defining Social Investment and CSR at the Inter-American Foundation’s...

Social Life of Cities: Social investment & placemaking

THE DEVELOPMENT OF A SOCIAL INVESTMENT MARKETsocialbusinessint.com/...a-Social-Investment-Market...INVESTMENT IS BEING USED “Social investment has enabled us to reduce our overheads

Investment Management: An Overview of the Foundation’s ... · The Foundation’s investment portfolio is made up of diversified pools managed by specialized investment managers.

Social Return on Investment Evaluation...Social Return on Investment Evaluation Report for Impact Arts August 2011 Social Research |Social Innovation Social Enterprise Social Evaluation

CORPORATE SOCIAL INVESTMENT - Oliver Wyman · was Vodafone Foundation’s social investments (£475 MM). The Deutsche Bank Impact Investment Fund (£10 MM) is a fund investing via

SHRM Foundation’s Effective Practice Guidelines Series HRM ... · PDF fileSHRM Foundation’s Effective Practice Guidelines Series HRM’s Role in Corporate Social and Environmental

New Social Entrepreneurs - Community-Wealth.orgcommunity-wealth.org/sites/clone.community-wealth.org/files/... · the New Social Entrepreneurs who, ... develop the Foundation’s

Turn Giving into Long-Term Funding Investment Services · review market activity in the Foundation’s investment accounts. • Activity in these accounts is handled by 15 external

Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding

Social Investment Funds

Investment for social value, fergus lyon, social investment for 21st century

SOCIAL RETURN ON INVESTMENT EVALUATION OF WOMEN’S … · Social Return on Investment Evaluation Women’s Property Initiatives commissioned a Social Return on Investment (SROI)

Investment Management: An Overview of the Foundation’s ...

The EveryLife Foundation’s Social Media Fundraiser: How to run an effective online fundraising campaign.

Real Estate Investing: A Private Foundation’s Approach Presented by: D. Ellen Shuman Vice President & Chief Investment Officer Carnegie Corporation of.

Developing an Income Strategy with Social Impact with a... · Social Return Social Investment Social & Financial Return Investment Financial Return Social investment is the provision

Your Social Investment

SOCIAL EXPLAINED INVESTMENT INVESTMENT INVESTMEN ...

National Ataxia Foundation’s

Social Investment Workshop