Offshore konference : CSR-workshop

Transcription

1 Offshore konference : CSR-workshop

2 Agenda 1. CSR: from fashionable concept to competitive parameter (20 min.) 2. CSR from a strategic perspective (10 min.) 3. CSR in energy projects a method to identify issues (15 min.) 4. Group work: Relevance of CSR for your business (30 min.)

3 Corporate Social Responsibility The voluntary integration by companies of social, ethical, and environmental concerns into their business operations Translates into: A respectful HR policy and a decent working environment A clear and responsible environmental policy Product safety Honesty and integrity in business transactions Commitment to and involvement in the local community

4 UN Global Compact: The international political standard for CSR 10 principles on: Human rights Labour rights Environment Anti-corruption Reasons to join: Legitimacy (universal) Flexibility Process-oriented, management systems Local GC networks, dialogue with stakeholders

5 CSR: From fashionable concept to daily reality in business Increased international division of labour Public attention B2B requirements (importers, large business customers) Expectations from young, well-educated employees New legal requirements Competitive parameter: 1. Risk management and branding 2. Development of business model and products (innovation) 3. HR

6 Business case illustrated: Business benefits for Hewlett Packard suppliers. Case study from China Hewlett Packard conducted 150 supplier audits in 2007 Uses Electronics Industries Code of Conduct (EICC) Stanford University, USA, visited 2 major suppliers in China in 2008: - AU Optronics (Suszhou, 17,000 people) - Flextronics (Zhuhai, 48,000 people)

7 Quick wins for AU Optronics and Flextronics Risk management New opportunity A supplier of choice Environmental investments Saving energy per unit Lower production costs Health and safety program for workers Lower accident rates Fewer lost work days and lower health care costs

8 Challenges for AU Optronics and Flextronics in working with CSR Living up to national legislation and EICC involves some costs (but remember costs if you don t!) Difficult to meet overtime demands in law and in EICC Continued problems with corruption

9 Worker facilities Health and safety Environmental investments Long-term benefits for AU Optronics and Flextronics apart from keeping HP as a customer! Higher retention of workers Lower attrition costs Lower injury and sickness rates Productivity gains New green products Cost savings and profits from new products

10 CSR sensitivity: The closer to consumers, the more CSRsensitive the product will be (how much do you notice it?) Food items, health Clothes and textiles Household items House, apartment Energy The local community Machines and machine parts Raw materials Other B2B items

11 Strategic CSR: Possible Outcomes Impact for business: Maximize the freedom to operate: Keeping high standards of operations, compliance & delivery From cost to growth: CSR as a cost or risk mitigating effort to CSR as strategic goal that brings in new revenue Information: from visibility to transparency Relationships with stakeholders: from containment to engagement

12 Strategic CSR because it can operate in a framework of relevance for the business ROI Strategic CSR Social Investment Philanthropy ALIGNMENT WITH BUSINESS OBJECTIVES In deciding CSR investment, focus more on initiatives that are more towards social investments and strategic CSR. Business objectives = achieving targets/ goals as well as mitigating possible risks Concentrate on having less rather than more through strategic initiatives that have genuine impact in the strategic CSR arena.

13 Stakeholders Management Influence/Access Identify/Know Stakeholders Educate/Learn Inform/Learn

14 Reputation Management requires not only good business performance but the effective management of stakeholder perceptions P P x = R Performance Perception Reputation Financial Performance Revenue Growth Earnings Growth Margins Market Share Growth New Customers Balance Sheet Strength Cash Flow ROE / ROI Shareholder Value Product Quality Product Innovation Business Innovation Product quality Stewardship & HSE Corporate Responsibility Reward and Recognition Community Our Story News Flow Behaviors Product Safety & Quality Transparency Focus Quality of Communication Quality of Engagement Strength of Relationships Articulation of Vision Corporate Conduct Governance & Ethics Corporate Culture Competitive Awareness Access Knowledge Recommendation Consideration Influence Sales

15 But you need to manage expectations building reputation and engagement takes time Reputation Effective management will take 3-5 years Firstly develop the strategy and establish appropriate structures, capacity & capability Establish key stakeholders & their objectives & align your own Then embed & leverage your positioning In the interim, pursue a range of issues, initiatives and sector strategies to maintain momentum Build the foundations Leverage & grow Embed & consolidate Time

16 CSR is dealing with risks and opportunities Analyses Planning Action Value propositions

17 CSR: Much more than reactive risk management. Think proactively! Proactively means: 1) Cover your risks 2) Anything you can do extra that would make sense in a business perspective? 3) Think about innovation, branding, and marketing 4) Focus your efforts and work long-term

18 Mater and Novo: CSR business model & indirect marketing Mater Responsible production of home accessories in Jaipur married to highend design and sales in New York, London, etc. Constant CSR upgrading of Indian partner Novo Creating awareness of diabetes in India and building capacity in the public sector no handout of products Indirect marketing: People know the name and buy the product

19 CSR is about relations to stakeholders Employees Investors Customers Competitors Company NGOs Media Community Government- Central / State/ local

20 MFA/TC s five service categories Value-chain CSR Relations to other external stakeholders Integrating CSR in business strategy CSR in the organisation Political-social analysis

21 CSR products illustrated CSR upgrading of good business partners Case (Nordlux): TC helped the lamp producer Nordlux make CSR analyses and plans of action for 6 suppliers in China and 1 in Vietnam TC is now undertaking a second round of CSR inspections in China Objective is to help Nordlux and its suppliers stay in business with its European B2B customers through BSCI certification TC will not undertake the certification, but help the suppliers prepare for it Challenge: Proper implementation

22 CSR in regard to your business 5 points for consideration: What are your business objectives? Go back to slide 3 to think about CSR in everyday terms What can CSR do for your business in regard to: Risk management: Do you have internal CSR issues? Do you have CSR issues in the value chain? Who are your other external stakeholders? Are there risky political-social issues in the countries you are working in?

23 CSR in regard to your business continued: Once your basic risks are covered, what can CSR do for your business in regard to: Your overall business strategy: objectives and targets Your different strategies in support of it: Product development, sourcing/procurement, production, quality assurance, HR, sales and marketing, customer services and support, branding, communication/public affairs, etc. Consider and manage any new risks because of your CSR initiatives Remember that less can be more: focus and work long-term!

24 Group work: Your own business Choose person to de-brief plenary Use work-sheet Explain your perspective to the others also dilemmas Discuss main points for each business Conclude

25 THANK YOU!! CSR HAS COME TO STAY PUT ON A SMILE AND MAKE IT PART OF YOUR WORKING LIFE. YOU WILL LEARN TO LOVE IT!