Ameliorating your corporate social. Dr. Sybille Buchwald-Werner

Transcription

1 Ameliorating your corporate social responsibility strategy starting with NPD Dr. Sybille Buchwald-Werner

2 Module 7A Ameliorating your corporate social responsibility strategy starting with NPD CSR strategies today and tomorrow Strategic long term advantages of sustainable, bioethical NPD Access and benefit sharing (ABS) definition and implementation challenges Vital Solutions GmbH Company presentation 2

3 If you ask people about CSR? Employees: Sustainability Charity/ donated to poor countries Stakeholder / Investor: We develop products for the future to maintain and improve living standards all over the word. Consumer: Vital Solutions GmbH Company presentation 3

4 CSR strategies today and tomorrow 1,2 Sponsoring Donation Collaboration + NGO Sustainability Environmental protection Pro Bono initiatives Philanthropic Targets Socio-economical development: increased transparency new legislations, standards higher level of individual responsibility in the general public triggering donation increase public demand for information from corporations about their performance visibility & measurability of economical consequences companies react on external effects without legal force voluntarily/ mandatorily Uncoordinated initiatives of feed good PR cost Systematic strategy aligned to business objectives & core competences Vital Solutions GmbH Company presentation 4

5 Three dimensions of CSR 3 III) Donations II) Indirect effects I) Enterprise direct effects Vital Solutions GmbH Company presentation 5

6 Three dimensions of CSR 2, 3 I) Enterprise and its direct external consequences ~ internal effects linked to performance indicators, like water consumption, emissions, investment in innovative products & technologies e.g. Nestle Ice crème, Toyota Prius, McDonald Salads II) Indirect consequences/ co-responsibility, like co-responsibility for supplier or distributor performance e.g. Supplier codex, Coca-Cola vending machines, Wal-Mart metal supply, III) Donation & organizational support to philanthropic targets within business area. Activities are not suitable to balance direct/ indirect negative effects e.g. Novus partnership with Vitamin Angels, DSM Sight and Life Malnutrition and to achieve a higher Quality of life - CSR opens up business opportunities, innovation and competitive advantage. It is part of the overall enterprise strategy linked to performance indicators. Target is to maximize benefits for the society & the company Vital Solutions GmbH Company presentation 6

7 Three dimensions of CSR 2, 3 Novus International and Vitamin Angels Partnership between Vitamin Angels and Novus International Strongly aligns with Novus corporate vision: to help feed the world affordable, wholesome food and achieve a higher quality of life. Novus International has sponsored the zinc supplementation within the Thrive to Five program Humanitarian program providing minerals to children in order to relieve severe diarrhea Program Ongoing at Eldoret, Kenya Vital Solutions GmbH Company presentation

8 Strategic advantages of sustainable, bioethical NPD Even corporations, which consider themselves to be socially-conscious and innovative classify NPD and CSR activities often as cost drivers and not as strategic measures to generate opportunities, innovations and competitive advantages. NPD includes several internal departments and cooperation with external supply and research companies as well as, in case of open innovation partnerships, potential customers. Therefore NPD is the perfect platform from which to analyze the CSR aspects of a new product and, during the development process, to target the identified internal and external effects. The results will be CSR principles for future product specifications and supply chain. Vital Solutions GmbH Company presentation 8

9 NPD & CSR - beneficial effects for the company and involved societies ABS: Genetic resources Traditional knowledge Set up of a sustainable supply chain, fair trade, carbon foot print Safety & Quality Standards Legislations NPD & CSR Technologies Energy & Water usage Utilization of natural resources Packaging Disposal HR Capacity building Technology transfer Standard of living Human rights codex Product functionality Consumer value e.g. to support wellbeing & health Marketing Consumer information Pricing Fair value chain Vital Solutions GmbH Company presentation 9

10 ABS definition and implementation challenges 4,6,7 The Convention on Biological Diversity (CBD), under the United Nations, has 3 objectives: (First discussion during the Earth Summit in Rio) 1) the conservation of biological diversity 2) the sustainable use of its components 3) the fair & equitable sharing of benefits arising out of the utilization of genetic resources and associated traditional knowledge. = ABS (access & benefit sharing) CBD have formalized ABS through the Bonn Guidelines on Access to Genetic Resources and Fair and Equitable Sharing of Benefits Arising out of their Utilization (adopted in 2002) To date, the guidelines have only voluntary status and execution depends on national law Vital Solutions GmbH Company presentation 10

11 ABS definition and implementation challenges 4,6,7 Genetic resources - traditional knowledge opportunities ABS is going to help the creation of economic incentive for conservation and the sustainable use of local biodiversity. Nevertheless, the commercial development of genetic resources is time consuming, costly and a risky business. Guidelines have to be implemented which respect the rights of the owner of the genetic resource or traditional knowledge, without raising unrealistic expectations of revenue. At the same time, the investment of the industry partner who invests in initial research with a low probability of success has to be honored, rather than looking for innovation options with a less complex cooperation environment. Collaborations with NPGs or governmental institutions can be beneficial. Vital Solutions GmbH Company presentation 11

12 ABS success stories Vital Solutions GmbH Company presentation 12

13 Global food & drink launches organic, ethical or organic claim Source Mintel GNPD Vital Solutions GmbH Company presentation Seite 13

14 CSR - evolution of business organizations 3 New Social Enterprises Traditional Enterprises + CSR NPOs Vital Solutions GmbH Company presentation 14

15 CSR - evolution of business organizations New Social Enterprises Traditional Enterprises + CSR NPOs NPOs are still very important to ensure agricultural development and to initiate innovation and basis research to be follow up by industry. Vital Solutions GmbH Company presentation 15

16 CSR NPD Conclusiones Corporate social responsibility can be summarized as meeting the needs of the present without compromising the ability of future generations to meet their needs. NPD is an excellent starting point for the establishment of a CSR strategy which targets internal and external effects linked to the product development and the later supply chain. The corporation can establish and implement CSR performance indicators during the NPD process and in parallel influence the mindset of the stakeholders, employees and potential customers towards the support of activities which are beneficial for the business as well as for the community. Vital Solutions GmbH Company presentation 16

17 Thank you for your attention! Vital Solutions GmbH Hausinger Strasse 4-8 D Langenfeld Dr. Sybille Buchwald-Werner Phone: +49 (0) Fax: +49 (0) Mobile: +49 (0) All information given in this presentation reflects our current knowledge and interpretation of relevant legislation and legal practice. Vital Solutions GmbH Company presentation 17

18 Reference [1] Strategy & Society, Michael E. Porter, Mark R. Kramer, HBR Spotlight [2] Building your CSR business strategy [3] The perspective of social business for CSR strategy, Keiko Yokoyama [4] Union for ethical biotrade [5] iisd [6] ABS Africa [7] Bonn guidelines Vital Solutions GmbH Company presentation 18