Corporate Citizenship: Doing Well by Doing Good

1. Corporate Citizenship: Doing Well by Doing Good Dr Gill Coleman Director, New Academy of Business Bristol, England

2. The New Academy • Independent business school established in 1995 by Anita Roddick of The Body Shop. • Mission: to help build a future that is more just, enterprising and sustainable. • Produce educational activities and resources • Work with companies, entrepreneurs, educators, activists, and policy makers on social, ethical and environmental issues in business

3. Why am I here right now? • A rising agenda concerned with Corporate Citizenship • The move away from a being a solely European/North American debate • From top-down,centralised, policy-led to bottom-up,devolved, activity-based

4. What is Corporate Citizenship? “the practice of a corporation’s direct responsibilities – to employees, shareholders, customers, suppliers, and to the communities where it conducts business and serves markets.” Laurie Regelbrugge, CIVICUS

5. “Whatever else corporate social responsibility is about, it is not about charity, neither is it a public relations exercise for enterprise. It is about intelligent self-interest—which also brings benefit to society.” Viscount Etienne Davignon Chairman of the Societe Generale de Belgique

6. The UN International Year of the Volunteer • More than 3000 volunteers in 131 countries • New Academy/UNV project on ‘Enhancing Business Community Relations’ in the Philippines, India, Ghana, Nigeria, South Africa and Lebanon

7. The UN Global Compact “Let us choose to unite the power of markets with the authority of universal ideals. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations” Kofi Annan, Secretary-General of the United Nations

8. Nine Principles covering Human Rights, Labour Standards, Environment, drawing on already-established international conventions • Launched in July 2000 • Now more than 500 companies committed, and regional compacts so far established in the Philippines, Brazil, Latvia and Poland

9. Companies engage by the CEO writing to the S-G, expressing support and committing to: - publicly express their support - inform stakeholders - incorporate commitment into Annual Report - provide annual statement of progress and lessons learned

10. Meanwhile, new demands on Business • Global marketplace means increased levels of competitiveness: the ‘race to the bottom’ • Increased transparency and an active NGO movement • Interconnected economies and economic downturn

14. Building business advantage Minimalist: compliance with legislation Strategic: Citizenship integrated into business Minimal Discretionary: philanthropic approach

15. Benetton and the IYV “Colors is a bi-monthly magazine that talks to young people all around the world… In this campaign, Benetton deals with a subject that is typical of its communication strategy and, once again, talks about ‘real people’, touching on important issues for a civilised society.”Company press release

17. Unilever: the Marine Stewardship Council (MSC) • Company identity:“Relationships are strongest when built on trust” • MSC established 1998 as an independent non-profit organisation • Unilever commitment to source all its fish from sustainable fisheries by 2005

18. “This safeguards the future of the resource, which makes good commercial sense – it ensures the industry’s investment in fishing and processing assets, and market development is protected”

19. Pasig: River of Life, Philippines Part of the company’s defined Water Sustainability Initiative Key resource in Metro Manila Step-by-step measures to clean the river, in conjunction with local partners Ensuring its own operations do not pollute Partnering with neighbours to help them not to pollute Encouraging wider participation and support for Clean River Zone

20. UBS, AG • “At UBS, corporate social responsibility means more than just a few discrete practices or occasional gestures motivated by public relations. We believe in proactively managing social issues and in setting the standards that will shape business activity in the future” • Establishing specialist ‘Eco’ products, and enhanced Business Principles for own operations

21. World Business Council on Sustainable Development • A coalition of 150 international companies united by a shared commitment to sustainable development via the three pillars of economic growth, ecological balance and social progress. • “The business case is also an entrepreneurial position: it looks to the next point on the business curve – the point at which business can be more competitive”

22. Shifting sources of value: Human capital Physical capital Intellectual capital Social capital

23. In practice at the local level: • Offering resources – volunteers, equipment, skills and know-how – to help fulfil social and environmental tasks • Starting small, and starting where you are • Combining with those expert in social and environmental interventions to achieve shared goals – partnerships • Looking for win-win opportunities

24. Philippines Business for Social Progress Survey Best Practices: • Scholarship programmes for disadvantaged students • Practical technical or vocational training offered to school students at company facilities • Donation of materials for education and community groups • Employee involvement

25. Possible business benefits • Trust, relationships, name, brand, reputation • Enhancing company value-base (Collins and Porras, Built to Last) • Increasing employee motivation and commitment • Discovering more about stakeholders, especially those you don’t understand

26. Corporate Citizenship opportunities • Ways of getting things done in a complex environment • Helping create a stable situation in which business can operate – shared interests • Opportunity for building internal capacity, learning new ways to operate • Creation of social capital