join the APATITY December 2011

1. join the APATITYDecember 2011

2. BUSINESS INDICATORS FOR MONITORING PERFORMANCE OF ENGINEERING COMPANIES FOLLOWING THE APPROACH OF CORPORATE SOCIAL RESPONSIBILITY This paper was prepared by: Veronika Kaiserova Peter Sakal Gabriela Hrdinova Apatity, December 2011

3. STRATEGIC MANAGEMENT OF COMPANIES (1/2) is defined as top level of managing the companies is responsible for success or failure of enterprise on the market measure and evaluate the performance of enterprise as a whole, influence the efficiency of company express the mission, vision and direction of enterprise for future success Strategic management of companies 3/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

4. STRATEGIC MANAGEMENT OF COMPANIES (2/2) properly defined strategy provide with the competitive advantage at the market to define best strategy of enterprise help more business tools, e.g. BCG or GE matrix and market analysis is supporting also by the IT systems - using the BSC is implementation of strategy more effective from recently times needs to be significantly oriented to CORPORATE SOCIAL RESPONSIBILITY and SUSTAINABLE DEVELOPMENT Strategic management of companies 4/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

5. 1 BALANCED SCORE CARD (1/2) Can be characterized as: a tool for strategic business management how to define its market position tool for monitoring global efficiency of company put together combination of financial and other/non financial indicators to create BSC in high quality take a long time and requires continuously improvement reason for implementing the BSC model within the enterprise is to achievecompetitivemarket advantage can be supported by IT systems – for easily creating and managing Principle of creating the BCS model is to define and evaluate 4 business perspectives: FINANCIAL, CUSTOMERS, INTERNAL PROCESSES AND KNOWLEDGE/GROWTH of respective enterprise. 1 Balanced Score Card 5/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

6. 1 BALANCED SCORE CARD (2/2) The Customer Perspective - recentmanagementphilosophy has shownanincreasingrealizationoftheimportanceofcustomerfocus and customersatisfaction in anybusiness Learning& GrowthPerspective- includesemployeetraining and corporateculturalattitudesrelated to bothindividual and corporateself-improvement FinancialPerspective- monitor and measure standard financial indicators that provide with the view of the financial health of company BusinessProcessPerspective - refers to internalbusinessprocesses. Metricsbased on thisperspectiveallowthemanagers to knowhowwelltheirbusinessisrunning, and whetheritsproductsandservicesconform to customerrequirements 1 Balanced Score Card 6/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

7. 2 SUSTAINABLE DEVELOPMENT (1/6) was astheforerunnerofcomplexsystemindicatorswithin CSR initiative and itis a patternofrecourceuse, thataims to meethumanneedswhilepreservingtheenvironmentso thattheseneedscanbe met notonly in thepresent, butalsoforgenerations to come • sustainabledevelopmenttiestogetherconcernforthecarryingcapacityofnaturalsystemswiththesocialchallengesfacing humanity • thefieldofsustainabledevelopmentcanbeconceptuallybrokenintothreeconstituentparts: environmental, economicand social sustainability. 2 Sustainable development 7/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

8. 2 SUSTAINABLE DEVELOPMENT (2/6) ENVIRONMENTAL sustainability is the process of making sure current processes of interaction with the environment are pursued with the idea of keeping the environment as pristine as naturally possible based on ideal - seeking behavior. An "unsustainable situation" occurs when natural capital (the sum total of nature's resources) is used up faster than it can be replenished. Sustainability requires that human activity only uses nature's resources at a rate at which they can be replenished naturally. 2 Sustainable development 8/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

9. 2 SUSTAINABLE DEVELOPMENT (3/6) SOCIAL sustainability encompasseshuman rights, labor rights, and corporate governance. In commonwithenvironmental sustainability, socialsustainabilityisthe idea thatfuturegenerationsshouldhavethesame or greateraccess to socialresourcesasthecurrentgeneration ("inter-generationalequity"), whilethereshouldalsobeequalaccess to socialresourceswithinthecurrentgeneration ("intra-generationalequity"). Socialresourcesincludeideasasbroadasother culturesand basichumanrights. AlsowecanspeakofSustainableHumanDevelopmentthatcanbeseenasdevelopmentthatpromotesthecapabilitiesofpresentpeoplewithoutcompromisingcapabilitiesoffuturegenerations 2 Sustainable development 9/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

10. 2 SUSTAINABLE DEVELOPMENT (4/6) • ECONOMIC sustainability • isthe term used to identifyvariousstrategiesthatmakeitpossibletoutilizeavailableresourcestobestadvantage. The idea is to promoteusageofthoseresourcesthatisbothefficient and responsible, and likely to providelong-tembenefits. In thecaseof a businessoperation, economicsustainabilitycallsforusingresources so thatthebusinesscontinues to function over a numberofyears, whileconsistentlyreturning a profit. In most scenarios, themeasureofeconomicsustainabilityispresented in monetaryterms. Theworthofassets and resources in financialfiguresiscommon, asisidentifyingtheamountofreturngenerated by theefficientuseofthoseresources. 2 Sustainable development 10/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

11. 2 SUSTAINABLE DEVELOPMENT (5/6) • World Business Council for Sustainable Development - 10 messages by which to operate: • Businessisgoodforsustainabledevelopment and sustainabledevelopmentisgoodforbusiness. • Businesscannotsucceed in societiesthatfail. • Povertyis a keyenemy to stablesocieties. • Access to marketsforallsupportssustainabledevelopment. • Good governance isneeded to makebusiness a part ofthesolution. • Businesshas to earnitslicencetooperate, innovate and grow. • Innovationand technologydevelopment are crucial to sustainabledevelopment. • Eco-efficiency– doing more withless - isatthecoreofthebusinesscaseforsustainabledevelopment. • Ecosystemsin balance – a prerequisiteforbusiness. • Cooperationbeatsconfrontation. More see at: http://www.wbcsd.org/home.aspx 2 Sustainable development 11/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

12. 2 SUSTAINABLE DEVELOPMENT (6/6) • How to achieve the sustainable development in corporates environment? • TO DEFINE NEW BUSINESS STRATEGY – facing the sustainable aspects in each area (social, environment and economic) • CHANGE THE INTERNAL COMPANY CULTURE AND COMMUNICATION • RESPECT PEOPLE AND DEVELOP THEM – take into account individualities and personal interests of people • DEFINE THE ETHICAL PRINCIPLES and set the professional behaviours • SUPPORT THE INDIVIDUAL APPROACH of each employee toward their duties • KEEP FINDING OUT THE WAYS HOW TO CONTINOUSLY IMPROVE the business processes, technologies and decreasing impact to the external environment 2 Sustainable development 12/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

13. 3 CORPORATE SOCIAL RESPONSIBILITY (1/3) Throught the CSR initiative TEXT ESTE DOPLNIM 3 Corporate social responsibility 13/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

14. 3 CORPORATE SOCIAL RESPONSIBILITY (2/3) CSR description + pic. TEXT ESTE DOPLNIM 3 Corporate social responsibility 14/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

15. 3 CORPORATE SOCIAL RESPONSIBILITY (3/3) CSR description + pic. TEXT ESTE DOPLNIM 3 Corporate social responsibility 15/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

16. 4 INDICATORS FOLLOWING THE CSR (1/3) the CSR Fig: CSR indicators in the enterprise’s conditions /example (1/2) 4 Indicators following the CSR 16/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

17. 4 INDICATORS FOLLOWING THE CSR (2/3) Fig: CSR indicators in the enterprise’s conditions /example (2/2) 4 Indicators following the CSR 17/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

18. 4 INDICATORS FOLLOWING THE CSR (3/3) CSR aspects and indicators within implementation should be: individually adjusted based on internal conditions of each company exactly and limiting defined to be measurable a assessable communicated toward all related parties permanently maintaining and improved time considered and changed by the external local conditions 4 Indicators following the CSR 18/21 of topic: Business indicators for monitoring performance of engineering companies following the approach of corporate social responsibility Apatity, December 2011

19. Thank you for your attention! Contacts: veronika.kaiserova@stuba.sk peter.sakal@stuba.sk gabriela.hrdinova@stuba.sk

20. This contribution was supported by the Slovak Research and Development Agency under the contract No. LPP-0384-09: ,,Koncept HCS modelu 3E vs. koncept Corporate Social Responsibility(CSR)’’. This paper also deals with our practices in the field of SD and describes submitted KEGA project called “Sustainable corporate social responsibility”.

21. BIBLIOGRAPHY [1] BUSSARD, A., MARČEK, E., MARKUŠ, M., BUNČÁK, M. Spoločensky zodpovedné podnikanie – Prehľad základných princípov a príkladov. Bratislava: Nadácia Integra, 2005, 112 strán. [2] Kaplan, Robert S. – Norton, David P.: Thebalancedscorecard: translatingstrategyintoaction. Harvardbusiness Press. 1996. pages 322. ISBN 0-87584-651-3 [3] SAKÁL, P., HRDINOVÁ, G. a kolektív autorov. Logistika výkonného podniku. 13. kapitola: „Spoločensky zodpovedné podnikanie výkonných podnikov“. Trnava: SP SYNERGIA, 2009. 633 s. ISBN 978 -80-254-5754-2. [4] Smith, Ch., Rees, G.:EconomicDevelopment, 2nd edition. Basingstoke: Macmillan. 1998. ISBN 0-33372-228-0 [5] Stivers, R.: TheSustainable Society: Ethics and EconomicGrowth. Philadelphia. 1976.Westminster Press. [6] Meadows, D.H., D.L. Meadows, J. Randers, and W.W. Behrens:TheLimits to Growth. UniverseBooks, New York, NY. 1972. ISBN 0-87663-165-0 [7] Daly, H. E.. Towards a Steady State Economy. San Francisco: Freeman. Daly, H. E. 1991. Steady-StateEconomics (2nd ed.). Washington, D.C.: Island Press. 1973 [8] Sen, A.K.: “Theends and meansofsustainability’, keynoteaddressattheInternationalConference on Transition to sustainability, Tokyo, May 2000 [9] Anand, S., Sen, A.K.: ‘Sustainablehumandevelopment: concepts and priorities’, Office ofDevelopmentStudiesDiscussionPaper, No. 1, UNDP, New York. 1996 [10] Boulanger, Paul-Marie(2008). "Sustainabledevelopmentindicators: a scientificchallenge, a democraticissue. ''S.A.P.I.EN.S.'' '''1''' (1)". Sapiens.revues.org. http://sapiens.revues.org/index166.html. Accessed on: 2011-10-21 [*] http://www.susdev.gov.hk/html/en/sd/index.htm Accessedon: 2011-10-21 [**] www.industrymasters.com Accessedon: 2011-10-21 [***] http://www.epa.gov/sustainability/ Accessedon: 2011-10-21