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
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