Corporate Social Responsibility Management

1. CSR Corporate Social Responsibility Management Mr.Somwang Witayapanyanond 23 April,2013

2. Introduction to Corporate Social Responsibility

3. Why CSR? • Moral Obligation Human duty • Sustainability For a long life business • License to operate Acceptance from all stakeholder • Reputation Brand name, awards, create share values

4. CSR view points • C: Corporate Company (small , medium , large ), Big City, Non profit Organization (for social objectives) • S : Social People in all stakeholder. Near (customer , employee , community , ecology areas), Far ( competitors ,population , world) • R : Responsibility Ethics (no exploit, fairly), environment, safety, health, quality of life, economics, ecology, natural resources.

5. Scope of CSR • Total supply chain • From raw material to goods until end of product life cycle

6. CSR definition Organization operation, response to internal and external , with balancing among economics , social and environment as competitiveness and sustain development.

7. CSR property • License to operate • Long term action • Reputation • Crisis prevention from economic, creative, conflict, disaster • Share holder VS social (conflicts of interests)

8. CSR input • Money & materials • Machine & Manpower • Knowledge • Mental

9. CSR check points • Customer Loyalty • Sale increase • Continuous production • Proud and Cohesive Employee • Reputation • Government relation • Return of good license action • Never been attacking • Better social climate • NGO friendly • Barrier decrease

10. CSR Driving Public service (health,environment, education,safety,life) Politic CSR Social Economic Company Other benefit balancing & sharing New Technology Competitor Business survive Globalization Oversea Coming

11. CSR Management process Think Planning CSR Management Evaluation Organization Check Who Leading Do

12. CSR people Government Company Non profit Organization Community Local authority Family

13. Social responsibility • Network • Other corporate • Human right • Tax pay • Anti- corruption • Social ethics

14. Social problems and Issues • Global warming (CO2) • Alternative energy (Food areas VS Energy area) • Environment (Forestry VS Disaster) • High age > 60 years >10% (high take care) • Labour welfare • Corruption (high price products) • Poverty • Life science (health)

15. Classification of CSR • Process • Level • Resources • Activity • Development • Form • Work unit

16. CSR : process classification • CSR-after-process Social activity after work time • CSR-in-process Added CSR in supply chain in work time ,environment ,transparency ,etc • CSR-as-process None profit organization, government office • CSR-as-enterprise Social enterprise, take opportunity from injustices in social and want to change. • CSR-as-Business Take the social problems to business, instrument for clean air, non toxic food , recycle from waste.

17. CSR : Level classification • Economic Responsibility • Legal Responsibility • Ethical Responsibility • Philanthropic Responsibility Phil Ethical Legal Economic

18. CSR : Resources classification • Corporate-driven CSR Use profit from corporate and share to help social suffering • Social-driven CSR Use profit from social when buy product and service, and declare the money per unit to help social suffering

19. CSR : Activity classification • Cause promotion Non money(knowledge, work force , equipment) and money to help social problems • Cause-related marketing Donate from the goods or service by % of sale in time interval through non profit organization • Corporate social marketing Social behavior change to good health , safety, environment • Corporate philanthropy Give money as reactive by social request. Not to align the company vision. • Community Volunteering As employee interest and company support for community project • Socially responsible Business practice Business social responsibility every process and help social to built-up quality of life

20. CSR : Development classification • Generation 1st Donate Activity for reputation and acceptance 2nd adapt business for social in process as strategic 3rd CSR built-up in country level and government • Version V 1.0 community relation org. Channel of donation , company image v 2.0 global common, innovative partnerships, stakeholder involvement • Stage S1 : profit return to social S2 : Setting organization structure support CSR S3 : Strategic CSR internal & external S4 : Integrated and network

21. CSR : Form classification • Responsive CSR Good corporate citizen, negative impacts reduction from business, reactive treatment , as standards and legal, value image • Strategic CSR Proactive , linkage to social need, differentiation, support competitiveness in long term, base on break even. • Creative CSR Art of CSR, Social Cohesiveness , common value as social, collaborative Responsive Strategic Creative

22. CSR : Work units classification • Private CSR Create share value in long term • Public CSR Government, Industrial council, public policy, CSR standards, activity much more level than private. • People CSR NGOs, foundations, community group, create social values in life and environment

23. Community responsibility • Support • Labour • Environment Impacts • Openness • Local culture • Life together with peace

24. Environment • Nature • Forestry • River • Air • Ecology • Land • Human Made • Culture

25. Corporate Social Responsibility Guideline

26. CSR Guidelines • Business compass for social Good manage , justice , human right, customer care, social development, environment& quality of life, social innovative ,CSR reporting • Social responsibility standardization Good governance , human right, labour, environment , fairness, customer, community involvement and development • ISO 26000 Accountability , transparency , Ethical, stakeholder interest, Law, international norm, human right • OECD : Guideline for multinational enterprises Employment & relation, environment, combating bribery, customer interest, science & technology, competition, taxation • UN Global compact Human right (support, inspect) , labour (freedom, non force, no child employ) , environment (support, up-quality, develop envi-friendly) , anti-corruption (all types)

27. Social Responsibility Integration

28. Social responsibility Integration Corporate Social Responsibility Good Governance Business Ethics Sustainable Development Social Enterprise

29. Key of success of Social Enterprise • Innovative (find some new for success) • Tenacity (challenge) • Passionate (strong belief) • Expertise (deeply in problems) • Infectiousness (idea spreader) • Focused (change in target) • Resourcefulness (skill in all resource collection) • Goal oriented (measurable results ) • Leader (can inspire others) • Ecstasy (quality of life upgrade for others)

30. Sustainable Development • Money possibility • Environment friendly in all stages of work • Minimize negative impacts to community • Prevent and support to forestry, areas , local resources • Develop areas in low impact area • Maximize the transportation utilization for social • Minimize waste , reused promote • Energy conservation • Water efficiency • Support poverty can receive benefit

31. The Tripple Bottom Line Environment Help Balance Sustain Social Equal Economic

32. Competitive Advantage Of CSR

33. Competitive advantage Factors Quality • Competitive advantage • Low cost • Differentiate Efficiency Customer response Differentiate Speed , reliability , service , design , features , technology , personality , relationship Innovation

34. Main Organization Capability for competitive advantage Competitive Strategic Competitive advantage Main Capability Organization Capability Value chain analysis Sustainability Competitive Performances -value -rare -cost to imitate -non-substitutable -organization Resources -tangible -intangible

35. Strategic Leadership in CSR

36. CSR Strategic Leadership Functions Plan : Goal Imagine & Inspire Vision CSR Leader Alignment Social Architecture Organizing : Design for CSRin structure & culture Evaluating : Collaboration To win the goal Trust Leading : Belief and buy-in

37. Strategic CSR

38. CSR Strategic Approach • Obstructionist Approach ….Low Level no responsibility , illegal • Defensive Approach minimum legal and ethics • Accommodative Approach As balance stakeholder, do as request • Proactive Approach ….High Level Learning, finding for all stakeholder needs and supports

39. Strategic Management Process Quantity & Quality External Factorsanalysis Measure & Evaluation Vision and Mission Strategic Implement Strategic Setting Long Term Objectives Internal Factorsanalysis Behaviors

40. CSR Strategic Target • Innovative Target The new, technology improve • Excellence Target The good, the best, complete , perfect • Altruism Target The helpful, quality of life, happiness, safety • Heroism Target The effective of power, wining, number one

41. CSR Initiatives

42. CSR Initiatives Cause Promotion Cause-Related Marketing Corporate Philanthropy CSR Initiatives Corporate Social Marketing Community Volunteering Socially Responsible Business Practice

43. Cause promotion Initiative Non money(knowledge, work force , equipment) and money to help social problems • Social problems issues Poverty, health, forest fire smoke, global warming, natural disaster • Support needs Support at cause of social problems with care, persuasive : data collection, time, money and non-money donation, participation • Key of success Related to customer and community, employee engage, local as owner, identify, continuous improvement

44. Cause-related marketing Initiative Donate from the goods or service by % of sale in time interval through non profit organization • Social problems issues No house people, special disease case, children education , disaster • Support needs Specific money amount, %of sale, % profit, as time frame • Key of success Issue selection many stakeholder concerns, select goods corresponding to social, research the idea and adapt for more attractive, less document concerns, transparency, clear objectives and condition with non-profit organization

45. Corporate social marketing Initiative Social behavior change to good health , safety, environment ,or quality of life • Social problems issues Non smoke, energy conservation, zero waste, AIDS- diabetes - cancer protection, accidents, fire fighting, non toxic food/agriculture, pollution solving, forest re-habitation , • Support needs Employee and sub-contractors, community • Key of success Issue selection many stakeholder concerns, employee volunteer, need consults to advice, long term activity, finding the key of behavior change, try to link with business or work

46. Corporate philanthropy Initiative Corporate Give money as reactive by social request. Not to align the company vision. • Social problems issues Social activities • Support needs Cash donation, grants, scholarships, health checks, mental consults, channel of distribution for OTOP, machine support, • Key of success Issue consideration, no in the same point of government support, measure the effective and stakeholder satisfaction,

47. Good Supporting Principle • Philanthropy Give without return : objects (money , material) , mental (cheerful , caring) , wisdom (knowledge) • Communication Good conversation, say facts • Usefulness Make it better, in nature and quality of life. • Connecting Formal and Informal, face to face, continuity

48. Community Volunteering Initiative As employee interest and company support for community project • Social problems issues As community and employee interesting • Support needs Employee and contractors volunteer, time compensation, community needs, • Key of success As for sustainable, linkage to company vision, volunteer, limited to expense budgeting, communication,

49. Socially responsible Business practice Initiative Business social responsibility every process and help social to built-up quality of life • Social problems issues Safety, environment, energy, hazardous, toxic vegetable, Fatty, fit and firm, family care, disable, quality of life • Support needs Consultants, local authorize, government officers concerns, • Key of success Openness, do as talk,

50. Organization Architecture For CSR