CSR and ESG – in spite of the recession? Professor Hans De Geer, TI Sweden, SSERiga Tallinn, April...
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Transcript of CSR and ESG – in spite of the recession? Professor Hans De Geer, TI Sweden, SSERiga Tallinn, April...
CSR and ESG – in spite of the
recession?
CSR and ESG – in spite of the
recession?
Professor Hans De Geer, TI Sweden, SSERiga
Tallinn, April 24, 2009
Professor Hans De Geer, TI Sweden, SSERiga
Tallinn, April 24, 2009
License to operate …License to operate …
NGO’s (CSO’s)
CSR
CG
Financial markets
Politics
Business
Media
members
voters
Savers/investors
Employees
customers
…stakeholders’ expectations
InitiativesInitiatives
UN
ILO
OECDEU ICC
GRI
CAUX
Rio
ISO
Standardisation of expectationsthrough”soft regulation”
Globalcompact PRI
ActivityActivity
NGO’s (CSO’s)
CSR
CG
Financial market actors
Political actors Business
Media 1
2
3
4
BusinessBusiness
• CSR - no longer if but how• 98 % of top 150 companies in Europe addresses CSR on their website, 73 % of top 600.
• CSR – the idea that corporations have a responsibility for social and environmental issues that goes beyond their core activity, beyond ”ordinary decency” and beyond regulation
• Linked to the concepts of ”embeddedness” and ”sustainability”
• Crises,close downs and lay offs makes CSR even more demanding!
• CSR - no longer if but how• 98 % of top 150 companies in Europe addresses CSR on their website, 73 % of top 600.
• CSR – the idea that corporations have a responsibility for social and environmental issues that goes beyond their core activity, beyond ”ordinary decency” and beyond regulation
• Linked to the concepts of ”embeddedness” and ”sustainability”
• Crises,close downs and lay offs makes CSR even more demanding!
1
Arguments against CSRArguments against CSR
• CSR is just window-dressing and blue wash!
• “The business of business is business” (Milton Friedman).
• Macroeconomic waste (Dave Henderson).• Business’ first social responsibility is to be profitable and create jobs!
• CSR might lead to protectionism.
• CSR is just window-dressing and blue wash!
• “The business of business is business” (Milton Friedman).
• Macroeconomic waste (Dave Henderson).• Business’ first social responsibility is to be profitable and create jobs!
• CSR might lead to protectionism.
Arguments for CSRArguments for CSR• Production has in fact negative effects that businesses have an obligation to take care of.
• Big corporations do have resources.• Public sector failure. • CSR – the business case
– Risk management– Reputation management and brand building
– Values based leadership
• Production has in fact negative effects that businesses have an obligation to take care of.
• Big corporations do have resources.• Public sector failure. • CSR – the business case
– Risk management– Reputation management and brand building
– Values based leadership
PoliticsPolitics
• Financial crises: Unsound managing of risk in structured products >systemic dependencies >domino effects
• Politicians take the initiative back• Reregulation of markets – towards a new Bretton Woods?
• Recession: state intervention & support of failing industry
• Still: climate issues - high priority during Sweden’s EU presidency
• Financial crises: Unsound managing of risk in structured products >systemic dependencies >domino effects
• Politicians take the initiative back• Reregulation of markets – towards a new Bretton Woods?
• Recession: state intervention & support of failing industry
• Still: climate issues - high priority during Sweden’s EU presidency
2
NGOsNGOs
• NGOs - the opaque sector: lack of transparency
• From confrontation to alliances
• NGOs - the opaque sector: lack of transparency
• From confrontation to alliances
3
Financial marketsFinancial markets
• Friedman’s argument• Institutional owners• ESG issues• Growth of SRI
– 2005 - 2007: 102 % in 13 European countries (Eurosif)
– 18 % of total assets– € 2,7 quintillion– PRI as support structure
• Friedman’s argument• Institutional owners• ESG issues• Growth of SRI
– 2005 - 2007: 102 % in 13 European countries (Eurosif)
– 18 % of total assets– € 2,7 quintillion– PRI as support structure
4
Issues remain Issues remain HR
WR
E
C
Child labour increases
The supply chain:Lay offs here or there?
Climate - and water issues
Corruption increases:Greed as a system
and calls forand calls for
• The ethics of lay offs• The ethics of increasing social differences
• The ethics of risk management• The ethics of systems of remuneration
• The fight against corruption
• The ethics of lay offs• The ethics of increasing social differences
• The ethics of risk management• The ethics of systems of remuneration
• The fight against corruption