1. CITIZEN ACT Opening MeetingWorkshop coach: The CSR challenge Wednesday, February 2nd 2011 Olivier Delbard Associate ProfessorESCP Europe

2. 1. The origins of CSR (1/3)1.1 The U.S. Conception of the social responsibility of businesses The Protestant Ethic The rise of the corporation and its rights and duties in society The need for an economics of responsibility, developed and embodied in our business ethics (Clark, 1916) Philanthropy as a natural practice The notion of interested groupsstakeholders today Frank Abrams, Standard Oils Board Chairman, in 1951: the role of management is to maintain an equitable and working balance among the claims of the various directly interested groups... stockholders, employees, customers and the public at large The modern corporation as a driver for societal improvement, distinct from legislationwww.citizenact.com 3. 1. The origins of CSR (2/3)1.2 The concept of sustainable development and the gradual involvement of businesses around the world The landmark denition (1987) "Sustainable development is development that meets the needs of the presentwithout compromising the ability of future generations to meet their own needs."(Brundtland report, Our common Future) A new conception of Time (Long term and short term) and Space (local and global) The need for a new development model www.citizenact.com 4. 1. The origins of CSR (3/3)First, a response to mounting environmental challenges: Overintensive use of natural resources (water, forests, land, fossil fuels) The ecological footprint The exhaustion of non renewable resources The risk of irreversibility Negative impacts: Pollution (air, water, soil, etc.) & waste Biodiversity Environmental risks & Health hazardsThe climate change challengeThen, in the wake of globalization, the emergence of major global social andsocietal issues: The widening gap between the poorest and richest The poverty challenge Demographics and migratory ows Work conditions and human rights Local development Corruption, bribery and lobbyingThe emergence of sustainability issues for businesses: how can companiescontribute to meeting the global and local sustainable development challenges?CSR AS BOTH SUSTAINABILITY AND THE ANGLO-SAXON PHILANTHROPY-BASEDAPPROACH www.citizenact.com 5. 2. CSR and sustainability today1)3 levels of corporate responsesLevel 1: Philanthropy The U.S. approach: the societal commitment of rmsLevel 2: Search for compliance A reactive attitude, triggered by legal and/or other external pressures2.a: Legal and regulatory constraints2.b: External pressures (customers, sector, etc.)Level 3: Proactive strategy CSR as a tool of corporate strategy, embedded in the activites of the rmThe Business case: Turning constraints into business opportunities CSR and competitive advantage (Michael Porter)The European approach to CSR www.citizenact.com 6. From community involvement to strategic CSRwww.citizenact.com 7. CSR as both a global and local concept Global: the emergence of an international framework of soft law The U.N. Global Compact The OECD Guidelines The GRI sustainability reporting guidelines The ISO 26000 standard Local: The local political, cultural & regulatory environmentwww.citizenact.com 8. The E.U. Denition of CSRA concept whereby companies integrate social and environmental concernsin their business operations and in their interaction with their stakeholders ona voluntary basis. (Commission Green Paper 2001 Promoting a EuropeanFramework for Corporate Social Responsibility, COM(2001)366 Final)CSR covers social and environmental issues, in spite of the English termcorporate social responsibility;CSR is not or should not be separate from business strategy and operations:it is about integrating social and environmental concerns into businessstrategy and operations;CSR is a voluntary concept;an important aspect of CSR is how enterprises interact with their internaland external stakeholders (employees, customers, NGOs, public authorities, etc.)www.citizenact.com 9. 2 interconnected principles 1) The triple bottom line CSR as performance: how to measure it? Indicators, reporting? How toimprove non nancial performance? How to aggregate it to nancialperformance? 2) The stakeholder approach Implications on governance New stakeholders, new relations: example of civil society (NGOs, localpopulations) and suppliers Four main types of corporate motivations for CSR (Porter and Kramer, 2006) The moral appeal Sustainability The license to operate Risks and reputationwww.citizenact.com 10. 3. The scope of CSREnvironmental issues How to deal with externalities? Inputs and outputs/ Impacts The sustainability vision: reducing the negative impacts supply chain, product/service life cycle(Internal) social issues Human resources policies Diversity management, motivation, employability HSE (health, security, environment)Societal issues The license to operate Local development & territorial impact Ethics and politics Transparency, corruption, lobbying, etc. www.citizenact.com 11. 4. CSR and the banking industryA few specicities On the environmental side: direct vs indirect impacts The importance of compliance: how to link it to CSR Ethics and CSR: the aftermath of the nancial crisis The human capital factor: HRM and CSRFor a multinational banking group Global CSR strategy vs local realities Convergence and diversity! www.citizenact.com 12. 5. To concludeCSR and sustainability as: Innovation drivers New responsibilities for a company (in this case, a global bankinggroup) Imagining the future (from the perspective of the younger generations) Enhancing the meaning of work and life in societyA few bibliographical references: Porter M.E. & Kramer M.R.: CSR Strategy and Society, HarvardBusiness Review, 84(12), 2006. Zadek S., The Civil Corporation, London, Earthscan, 2001. The Oxford Handbook of Corporate Social Responsibility, Crane A. etal, Oxford University Press, 2008. Visser, W. & Tolhurst N., The World guide to CSR : A country www.citizenact.com 13. Thank you!