Strategic Corporate Social Responsibility

1. Strategic Corporate Social Responsibility MBA 292C.1 20 January 2010 Professor Kellie A. McElhaney

2. Today’s class • Welcome! • CSR in the News • About the Course • About the Projects

3. Professor McElhaney • Recovering banker • Professor at Haassince 2002 • Professor at University of Michigan 1995-2002 • Founding Director, Center for Responsible Business • Ranked #1 in world by Financial Times • Extensive corporate consulting: Gap, HP, Nokia, Ulster Bank, eBay, Ernst & Young, Frontline, McDonalds, Blue Cross, Statoil, Nvidia, Kimberly-Clark, Yum! Brands, Twitter, Navigant, McGraw Hill, Chevron • Research focus areas: Strategies of CSR; Branding& CSR; Women, Leadership & Sustainability • Book written called Just Good Business

4. Hannah Davies, GSI • British (but hate the rain) • 11 years’ experience in public sector marketing/communications • Transitioning to CSR (currently working in Chevron’s community engagement group)

5. Who Are You? • Name • Year • Read question on your card and cold call for answer • What gives you HOPE?

6. CSR in the News

7. CSR in the News • Haiti Earthquake Response • USA $100M • Britain $10M • AT&T $6M (all from 90999 texts) • Digicel $5M & satellite phone systems • Canada $5M • GE $2.5M • Abbott $2.5M & pharma/ nutri prods • UPS $1.2M & logistics • China $1M • Wal-Mart $600K • Burger King $50K • Deutsche Bank all commissions for one day • C&S Wholesale Grocers 115 tons of food & water • If Goldman Sachs gave 1% of ‘09 bonus pool?

8. $160 M

9. CSR in the News • Pepsi Drops Super Bowl Ads in Favor of Cause Marketing • First time in 23 years that the Bowl will not have ads promoting Pepsi • Last year Pepsi spent $33M advertising its brands during the game • This year, Refresh Project, $20M • 2-way dialogue with viewers asking them to go to web site and suggest ways Pepsi can contribute to social causes

10. CSR in the News • Post-Copenhagen (dubbed Hopenhagen) Analysis • Deadlocked, 36 hrs remaining, Secretary Clinton announced that the U.S. would contribute $100B/yr. by 202 to help LDCs reduce emissions and adapt to climate change; developed countries $100B to LDCs by 2020 • China agrees to international verification of its emission reductions • US agrees to reduce emissions 17% (05 levels) by 2020; China to reduce carbon intensity (based on GDP) 40-45% • Shift of focus to economic alliances • Markets & market mechanisms central to all efforts; using commerce & trade to create wealth, improve living standards & reduce emissions • Aid v. Commerce: Large role for private capital/ sector to replace traditionally delivered aid funding

11. CSR in the News • Green Heroes Grant Program Gives Green To Those Who Do Green • Clorox, makers of Green Works® natural cleaners, to award $60,000 in grant funding to individuals, organizations and schools that are making their communities a greener place. • To find these heroes, Clorox Greenworks, with help from Jane Goodall's Roots & Shoots, her global environmental and humanitarian youth program, is launching the 2010 Green Heroes Grant Program.

12. CSR in the News • Challenges for Reputation of Business Schools • If MBAs are all so clever, how come so many are now in disgrace? • If Robespierre were to ascend from hell and seek out today’s guillotine fodder, he might start with a list of those with three incriminating initials beside their names: MBA • We MBAs are haunted by the thought that the tag really stands for Mediocre But Arrogant, Mighty Big Attitude, Me Before Anyone and Management By Accident • You can draw up a list of the greatest entrepreneurs of recent history, from Larry Page and Sergey Brin of Google and Bill Gates of Microsoft, to Michael Dell, Richard Branson, Lak-shmi Mittal– and there’s not an MBA between them

13. What CSR News Are You Reading?

14. About CSR & This Course

15. What This Course Is: • About business strategy • Real-world, current, emergent • Fast-paced, packed in, like drinking from a fire hose • Taught using multiple methods • A unique learning experience • Experiential, hands-on, active • Something that will stay with you • A lot of work with high expectations • Fun!

16. What This Course Is Not: • Typical b-school course with HBS cases • Traditional, straight-lecture, cut and dry, neatly packaged • For the close-minded or risk-averse • Good for passive non-participators in learning • For those who like to skip classes • For those attached to their lap tops, PDAs and cell phones • Easy

17. Class Format • Overview of Class • CSR in the News • Project Issues • Lecture/ Discussion • Surprise Guests • Review Key Points

18. Topics Covered in This Class: • Components of Strategic CSR • Strategic Frameworks & Systems • CSR Reporting • CSR Communications • CSR Metrics • Corporate Philanthropy • Employee Volunteerism • CSR Tools • Corporate Green • CSR & Branding • Strategies of Change Management • CSR, Leadership & Innovation • Using Social Technology • Limitations of CSR

19. Consulting Engagement • Ability to take classroom learnings & apply them immediately • Involves “teaching” strategic CSR to companies • High profile, high visibility • Complex and critical • Connected to overall corporate strategy • Informing real practice • Multi-disciplinary • Conduits to internships and jobs….

20. Speaking of jobs…. • Supplier Responsibility Risk Assessment Intern • This is an exciting opportunity to work in a fast paced environment and assist in the development of Apple’s Supplier Responsibility (SR) program. The intern will help define the multi-factor risk assessment process that is used to screen Apple’s suppliers. We are looking for a creative, energetic problem solver with excellent analytical and programming skills and a strong work ethic. • Job Responsibilities: Screen and select reliable country risk ratings for labor & human rights and ethics Conduct research and perform data analysis to determine environmental, health and safety process risk Conduct internal research on single-source and sole-source risk Program Apple’s Supplier Risk Assessment Tool to incorporate these and other risk factors Assist in other Supplier Responsibility projects as needed • Supplier Responsibility Training Intern • This is an exciting opportunity to work in a fast paced environment and assist in the scaling of Apple’s Supplier Responsibility (SR) program. The intern will help define Apple’s approach to promoting worker and management awareness of CSR throughout its supply chain. We are looking for a creative, energetic problem solver with excellent analytical, strategic thinking, facilitation and project management skills and a strong work ethic. • Job Responsibilities: Analyze supplier data, available training content, and effective training delivery vehicles Design implementation strategy in partnership with SR capacity building manager to build on existing SR team training initiatives currently underway Assist in other Supplier Responsibility projects as needed

21. Why a Consulting Engagement? • Students retain: • 5% of what they hear in lecture • 10% of what they read and hear • 20% of what they see, read, and hear • 50% of what they discuss, see, read, and hear • 75% of what they do, discuss, see, read, and hear • 90% of what they teach to others, do, discuss, see, read, and hear

22. Anatomy of a Project • Initial Meeting • Weekly Status Reports • Letter of Engagement • Project Work Plan • “State of Project” Meeting with GSI • Interim In-Class Project Presentation • “State of Project” Meeting with Instructor • Final (oral) Presentation • Final (written) Deliverable

23. 2010 Project Bid List • 18 Rabbits • AMD & The Carbon Trust • Autodesk • Bio-Rad • eBay • Dow Chemical Company* • Driscoll’s • Microsoft (2) • Southwest Airlines (2) • Universal Giving • Gap, Inc. • Levi Strauss & Co.* • HP* • Kimberly-Clark & Waste Management* • Nelson Capital Management • Rockefeller & Co. • SAP • The Sustainability Consortium Bid sheets to Hannah’s MBA mailbox by Friday at 5 pm

24. For Monday • Project Teams Announced • Strategic CSR Defined • Read McKinsey, NYT & Kramer articles • Special Guest