Corporate Social Responsibility! Success through responsibility

1. Corporate Social Responsibility!Success through responsibility Prof. Dr. B. Hekman Prof. Dr. U. Schaumann Prof. Dr. J. v. Kiedrowski

2. Outline 1 Corporate Social Responsibility in SMEs 1.1 Kundenbindung, Image und CSR 1.1 Information related to the CSR Project 1.2 What is Corporate Social Responsibility? 1.3 Fields of action within CSR 1.4 Strategic Corporate Social Responsibility 2 Introduction of CSR at the own enterprise - SME 2.1 The four phases of CSR implementation 2.2 Communicating CSR 3 Further procedure

3. Concerning the course of the projectCorporate Social Responsibility for SMEs • Workshop Part 1 • Presentation event • 29.06 - 30.06 • Introduction to the • topic CSR • Preparing the own • CSR project • Workshop Part 2 • Working phase at the • enterprise • 01.07 - 30.08 • Planning and • implementing the • own CSR project • Workshop Part 3 • Presentation event • 31.08 - 01.09 • Feedback and • contemplation of • the own CSR • project

4. Training objectives – Workshop (WS) Part 1 Workshop Part 1 • What is Corporate Social Responsibility? • What fields of activity are there in CSR? • What is understood by the strategic CSR? • How can I introduce strategic CSR at the enterprise? Workshop Part 2 • How should I implement the strategic CSR at the own enterprise? Workshop Part 3 • What experience have I gathered by the introduction of CSR? • What experiences have the remaining WS participants made? • What must I consider by my future CSR activities?

5. What is CSR? Several case studies • Corporate Social Responsibility (CSR)is often translated in Germany as „Responsible Company Management“ or „Social Responsibility of Companies“. • Under CSR the social, ecological and economic responsibility of enterprises in all the areas of business activities is understood – from the actual creation of value to the exchange relationships with: • employees, • suppliers, • customers and the • community. • CSR by Budnikowsky GmbH & Co.KG http://www.unternehmen-fuer-die-region.de/materialien/filme/budnikowsky-gmbh-cokg.html

6. Fields of activity of CSR • CSR/Responsible Company Management is manageable through consideration and formation offour different fields of activity • The starting points, topics and entry opportunities are different for each enterprise, there is no single path Market Environment Workplace Community • Product quality • Product information • Consumer protection • Excluded customer • segments • Suppliers & Purchasing • Fair dealing with • business partners • ... • Climate protection • Resource consumption • Renewable energies • Environmental burden • at the site • Environmental • consciousness of • employees • Environmental • management • … • Compatibility of • family & profession • Further training & • qualification • Equal opportunities & • diversity • Working safety • Employee participation • … • Company donations • Sponsoring • Award of contract to • social organizations • Foundations • Voluntary engagement • of employees • … Economy Ecology Sociology

7. Why CSR? – Strategic goals and demands of the stakeholders

8. Why CSR – Economic benefit of the CSR engagement (self-evaluation of surveyed companies)

9. Training task 1 What special (!) social responsibility have you already practiced as a company in one or several CSR fields of activity? What experiences have you gained thereby?

10. Training task 1:Orientation table for the identification of own CSR activities Market Environment Workplace Community What have we done in CSR already? Why are we doing this? Where are our company strengths in relation to CSR activities actually? What other CSR activities could we do?

11. Strategic aspects of CSRdifferent forms • Key question: How should a company behave specifically to give effective and efficient utterance to its social responsibility? • Answer according to the economic analysis: In order not to have to evaluate the effectiveness and efficiency of every imaginable CSR mode of behaviour again and again it is significantly more reasonable „to look up“ if the possible CSR behaviour of the enterprise a) may be integrated in the existing business model and b) may be expressed rather asreactive or rather as proactive CSR behaviour. • Proceeding from these considerations one can prepare a Four Field Matrix for the systematization of different arts of CSR. • Thereby every CSR activity can be principally planned and also checked for ist economic benefit!

12. Focus: Strategic aspects of CSRFour Field Matrix not strategic strategic in the broader sense proactive altruistic CSR strategic CSR in the proper sense Behaviour of the company ethic CSR reactive/ tactical CSR reactive low Integration in the business model high

13. Strategic aspects of CSRnot strategic CSR approaches ethic CSR: • indicates the social responsibility of the company in respect to so called stakeholders who it can potentially damage through its entrepreneurial activity (physically, mentally, economically, spiritually and emotionally). • ethic CSR is regarded as an obligation or as a social standard for the enterprise also if the profitability of enterprises is limited • actions are justified by the social contract which the enterprise as an institution has implicitly concluded with society • in practice the ethic CSR is hardly or not firmly integrated in the business model of the enterprise altruistic CSR: • indicates activities which the enterprise performs beyond social norms as „Good Corporate Citizen“. • activities which are not required per se by society corresponding to an ethic norm • in practice this approach is hardly or not firmly integrated in the business model of the enterprise

14. Strategic aspects of CSRstrategic CSR approaches reactive tactical CSR: • available when specific CSR activities with the direct relation to the value chain and to the competitive environment are implemented only after misconduct or under pressure from stakeholders proactive strategic CSR: • integral component of differentiation strategies at the level of business area or enterprise • is not evaluated as a cost position but a long-term investment • thesis: enterprises which get involved socially are rewarded by the market through increased demand • beside benefits for the society there is also the chance for the increase of effectiveness and efficiency • through the incentive of profit for the enterprise it can lead to additional prosperity of society  Sustainability marketing

15. Strategic aspects of CSRInterim conclusion • an unimaginable variety of possible activities in order to give utterance to social responsibility • choosing and performing CSR activities often fall in the area of responsibility of enterprise communications • CSR activities are only rarely linked to business processes by the organizational distance to the actual services related thereto • it contradicts to the requirement for integration of social, ecological and economic target dimensions of strategic CSR • in order to achieve strategic CSR choosing CSR activities on the basis of the own value chain

16. Training task 2 Can the CSR activities named by you be located in a value chain?

17. Training task 2 Value chain

18. Outline 1 Corporate Social Responsibility in SMEs 1.1 Kundenbindung, Image und CSR 1.1 Information related to the CSR project 1.2 What is Corporate Social Responsibility? 1.3 Fields of action within CSR 1.4 Strategic Corporate Social Responsibility 2 Introduction of CSR at the own enterprise - SME 2.1 The four phases of CSR implementation 2.2 Communicating CSR 3 Further procedure

19. Where are we standing today, what are we doing already? What do our competitors do? What does strategic CSR mean to us? What is our main business, what are our strong points? What can we distinguish ourselves with? Where is the connection to own company activities? What are legitimate interests of external players? What could interest our stakeholders? ... What employees should be involved? Who bears responsibility and what is it? How are other employees informed and involved? What are the definite goals which we want to achieve measurably? In what time period do we want to achieve them? ... Introduction of CSR at the own enterprise • 1. to orientate oneself, to understand CSR, to develop engagagement • determination of CSR location • definition of strategic CSR • deduction of CSR objectives and measures internally and externally • 2. Implementing CSR activities • forming working team • concretizing CSR measures

20. How does the corporate management signalize that it is a crucial topic for them? Was a CSR model, value explanations or a code of conduct developed? How are own actions communicated internally and externally? ... How are own objectives checked? Are customer (stakeholder) surveys performed? Is there press feedback? How does the optimization of objectives take place? How can we learn from other enterprises in networks? ... Introduction of CSR at the own enterprise • 3. anchoring CSR personally and structurally • corporate management is represented • involving and informing employees • 4. checking CSR activities • performing success checks • striving for improvements

21. Training task 3 Now plan your own CSR project with the help of CSR introductory questions! Concentrate first of all on one of the four fields of activity and please locate your activities along the value chain!

22. Outline 1 Corporate Social Responsibility in SMEs 1.1 Kundenbindung, Image und CSR 1.1 Information related to the CSR project 1.2 What is Corporate Social Responsibility? 1.3 Fields of actions within CSR 1.4 Strategic Corporate Social Responsibility 2 Introduction of CSR at the own enterprise - SME 2.1 The four phases of CSR implementation 2.2 Communicating CSR 3 Further procedure

23. CSR and the own enterprise communication • Beside concentration on sales and customer relations the publicity effect of the enterprise and the relation to the stakeholders may not be neglected. • Therefore public relations within the communication policy play a special role. • CSR-oriented public relations include the active formation of communications relations between the enterprise and the social environment with the purpose of improvement of the company image. • The underlying PR leitmotif is as follows: „Speak about what you do!“ • Critical for the success is however the evidence of responsibility undertaken by the CSR through long-term reliable action.

24. CSR and the own enterprise communication • What do you want to achieve in the external impact? (Formulate a measurable objective) • What CSR activities would you like to be described with? (See fields of actions/value chain) • Who is your CSR message oriented at? (target groups, competition, suppliers, policy, community etc.) • Who should communicate your CSR activities? (Media: newspaper, radio, persons: union, associations etc.)

25. Training task 4 Please answer the previously discussed questions related to CSR communication!

26. Outline 1 Corporate Social Responsibility in SMEs 1.1 Kundenbindung, Image und CSR 1.1 Information related to the CSR project 1.2 What is Corporate Social Responsibility? 1.3 Fields of action within CSR 1.4 Strategic Corporate Social Responsibility 2 Introduction of CSR at the own entperise - SME 2.1 The four phases of CSR implementation 2.2 Communicating CSR 3 Further procedure

27. Company representatives: By August 31: Implementation of the own CSR project at the enterprise Documentation of the own CSR project ( Work manual) Presentation of the CSR project at the next workshop meeting Support by the Hamburg University of Corporate Education Consulting within the framework of the project supervision Training task 5: Further procedure in the own CSR project • Students: • By August 31: • Implementation of the own CSR project at the enterprise • Preparing practical reflections • Documentation of the own CSR project (Work manual) • Presentation of the CSR project at the next workshop meeting • Support by the Hamburg University of Corporate Education • Consulting within the framework of PR

28. Further procedure in the project Thank you very much!