Social Responsibility: The Unexpected Change of Paradigm

1. Social Responsibility:The Unexpected Change of Paradigm Towards a new Curriculum Mazen F. Rasheed, Michael von Gagern, Muhammad Sharafat Waheed The National Commercial Bank Chair for Corporate Social Responsibility, King Saud University, Riyadh

2. Business Responsibility for: Profit – People – Planet A New Challenge for Managers And how Universities may want to Respond: • What is new? • How does it affect the Educational Institutions? • What can the University do?

3. Business Responsibility for: Profit – People – Planet • What is new? 1.1 The Change of Paradigm in Business 1.2 The New Competence Needed

4. 1.1 The Change of Paradigm in Business • From Profit only to People, Planet, and Profit • From Hidden Agendas to Transparency • From Covering up to Accountability • From Legal to Legitimate • From Shareholders to Stakeholders • From the Product to the Supply Chain • From Local to Global, One World, The Seven Migrants (Air, Water, Resources, Products, People, Ideas, Epidemics)

5. The Seven Problematic Migrants • Air • Water • Resources • Products • People • Ideas • Epidemics)

6. 1.2 The New CompetenceNeeded

7. 1.2 THE NEW COMPETENCE NEEDED

8. 1.2 The New Competence Needed

9. 2. How does it affect the Educational Institutions? 2.1 Vision of University Leadership

10. 2. HowdoesitaffecttheEducationalInstitutions? 2.2 Communication of Vision

11. 2. How does it affect the Educational Institutions? 2.3 Student Awareness of University SR The concepts of CSR and USR are relatively new to the University establishment. It is therefore not astounding that Universities, even if they have a vision of institutional renewal according to SR principles have not yet been very successful in communicating this vision to their students. But what about student involvement in actual SR activities?

12. 2. How does it affect the Educational Institutions? 2.3.1 Environment

13. 2. How does it affect the Educational Institutions? 2.3.2 Community

14. 3. What can the University do? 3.1 Create Awareness through Communication of Vision, Implementation and Student Involvement We will not go into the details of the tools, procedures and performance measurement of all the steps involved in these important tasks. This will be done in a later stage of the project. 3.2 Curricular Renewal as a point of departure Let us look at one crucial task, which combines some of these steps: the curriculum

15. Finance/ Accounting/Control Responsibilities Strategy / Business Development Business Informsatics / BPM Accountability Responsibilities Responsibilities Accountability Transparency Accountability Transparency Transparency People Planet Profit Ethics / Politics Responsibilities Accountability Transparency Transparency Accountability Responsibilities Operations / Quality Management Transparency Transparency Accountability Responsibilities Transparency Accountability Responsibilities Economics Accountability Marketing Responsibilities HR / Organizational Behavior

16. The Round Table of CSR Management Issues The discussants of this round table agree on the corner stones for this new Mgt. Approach: • A Strong Sense of Responsibility • Technical and Moral Accountability • A True Commitment to Transparency

17. Corner Stones of CSR According to ISO Standard 26000 Responsibility derives from sources of influence like: • ownership and governance; • economic relationship • legal/political authority • public opinion • An organization's influence may depend on a number of factors, including physical proximity, scope, length and strength of the relationship.

18. Corner Stones of CSR According to ISO Standard 26000 Accountability „state of being answerable for decisions and activities to the organization's governing bodies, legal authorities and, more broadly, its stakeholders“ ISO 26000, p. 13

19. Corner Stones of CSR According to ISO Standard 26000 Transparency: Information should be • Complete and address all significant activities and impacts • Understandable i.e.provided with regard for the knowledge and the cultural, social, educational and economic background of those who will be involved in the communication. • Both the language used, and the manner in which the material is presented, including how it is organized, should be accessible for the stakeholders intended to receive it • responsive to stakeholder interests • Accurate, i.e.factually correct and with sufficient detail • Balanced and fair and should not omit relevant negative information concerning the impacts of an organization's activities • Timely; out of date information can be misleading. • Accessible specific issues should be available to the stakeholders concerned.

20. All the core subjects, but not all issues, have relevance for every organization. An organization should review all core subjects to identify which issues are relevant. To start the identification process, an organization should, where appropriate: • list the full range of its activities; • identify stakeholders • identify the activities of the organization itself and of the organizations within its sphere of influence.

21. All the core subjects, but not all issues, have relevance for every organization. • The decisions and activities of suppliers and contractors can have an impact on the social responsibility of the organization • Determine which core subjects and issues might arise when the organization and others within the sphere of influence and/or the value chain carry out these activities, taking into account all applicable legislation.

22. All the core subjects, but not all issues, have relevance for every organization. • Examine the range of ways in which the organization's decisions and activities can cause impacts on stakeholders and on sustainable development • Examine the ways in which stakeholders and social responsibility issues can impact the decisions, activities and plans of the organization;

23. All the core subjects, but not all issues, have relevance for every organization. • Identify all issues of social responsibility that relate to day-to-day activities as well as those that arise only occasionally under very specific circumstances. • One way of doing this is to review the typical advanced MBA Curriculum (as follows)

24. Strategy / Business Development

25. HR / Organizational Behavior

26. Finance / Accounting / Control

27. Business Informatics / BPM

28. Operations / Quality Management

29. Marketing

30. Ethics / Politics

31. Concluding Remarks The existing values and culture of an organization can have a significant effect on the ease and pace with which social responsibility can be fully integrated throughout the organization. For some organizations, where the values and culture are already closely aligned to those of social responsibility, the process of integration may be quite straightforward. In others, some parts of the organization may not recognize the benefits of social responsibility and may be resistant to change. Systematic efforts over an extended period may be involved in integrating a socially responsible approach in these areas.It is also important to recognize that the process of integrating social responsibility throughout an organization does not occur all at once or at the same pace for all core subjects and issues. It may be helpful to develop a plan for addressing some social responsibility issues in the short term and some over a longer period of time. Such a plan should be realistic and should take into account the capabilities of the organization, the resources available and the priority of the issues and related actions

32. Concluding Remarks ctd. • Systematic efforts over an extended period may be involved in integrating a socially responsible approach in these areas. • It is also important to recognize that the process of integrating social responsibility throughout an organization does not occur all at once or at the same pace for all core subjects and issues. • It may be helpful to develop a plan for addressing some social responsibility issues in the short term and some over a longer period of time. • Such a plan should be realistic and should take into account the capabilities of the organization, the resources available and the priority of the issues and related actions

33. End Thank you for Listening