What is CSR? Claus Aabling, Project Manager (CSR), Danish Federation of SMEs

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1 What is CSR? Claus Aabling, Project Manager (CSR), Danish Federation of SMEs Textile East Africa Project Nairobi, September 18th, 2012

2 Agenda Exercise International definition of CSR Which disciplines and activities lie within the field of CSR Small exercise your company

3 Exercise 4 groups, discuss and write down (15 minutes): What is CSR in your understanding? There are no wrong answers, list down all the terms and practices that you believe is included under the term `CSR 1 person from each group to present the findings (5 minutes each)

4 The CSR jungle Stakeholder management Sustainable development Social compliance ISO Western imperialism Labelling schemes Climate change Environmental impact assessment Fair Trade Responsible investments WRAP ISO Responsible supply chain management GOTS certified Stakeholder dialogue Triple bottom line Ethical Trade Strategic CSR Labour rights Business ethics Oeko-Tex The political consumer Corporate legitimacy Human rights Anti-corruption Child labour Environmental management systems Public private partnerships SA8000 Community involvement Organic cotton Green wash Certification Responsible procurement Occupational health & safety Ethical consumerism BSCI CO2 mitigation UN Global Compact Value based management Gender balance Capacity building NGO involvement Employee Branding

5 How do we define CSR in the European / international context? First EU definition: a concept whereby companies integrate social and environmental concerns in their business operations and in interaction with their stakeholders on a voluntary basis Commission of the European Communities, Green paper (2001): Promoting a European framework for corporate social responsibility

6 How do we define CSR in the European / international context? New EU definition: the responsibility of enterprises for their impacts on society maximising the creation of shared value for their owners/shareholders and for their other stakeholders and society at large identifying, preventing and mitigating their possible adverse impacts EU Commission 2011: A renewed EU strategy for Corporate Social Responsibility

7 How do we define CSR in the European / international context? From the international development academia:...it may be more useful to see CSR as an umbrella term for a variety of theories and practices all of which recognize the following: (a) that companies have a responsibility for their impact on society and the natural environment, sometimes beyond legal compliance and the liability of individuals (b) that companies have a responsibility for the behavior of others with whom they do business (e.g. within supply chains); and that (c) business needs to manage its relationship with wider society, whether for reasons of commercial viability, or to add value to society. Blowfield & Frynas 2005

8 A practical understanding of CSR which we will work with CSR is about preventing negative impact and promoting positive impact related to: 1. Social issues (labour rights, human rights, including health and safety) 2. Environmental issues 3. Business integrity (e.g. anti-corruption) it is connected to core business activities the responsibility is within the company s sphere of influence (stakeholders)...csr can be based on ethical or strategic considerations or both

9 A practical understanding of CSR which we will work with Though the starting point for some companies may be below legal compliance...compliance to law is not enough!!!

10 A practical understanding of CSR which we will work with

11 Group discussion In terms of serving EU markets: Which 4 CSR categories would be most relevant to work with for your company? Why?