Corporate Social Responsibility - yesterday, today, tomorrow

1. Corporate Social Responsibility- yesterday, today, tomorrow ESCOBALT December 13, 2006 Magnus Emfel The Academy for Worklife Ethics www.etikakademin.se

2. The Academy’s mission • Contribute to competence development in the area of worklife ethics • Academic research and related activities. • Awareness raising, participate in the public debate • Meeting place (e.g. Dialogue forums, courses, seminars, conferences) for professionals and other stakeholders. • Values base • Humanistic perspective. • Ethics as an individual responsibility for the common good. • Insight and progress through dialogue. • Trustees

3. 1. CSR yesterday2. CSR today3. CSR tomorrow

4. The emergence of CSR CSR

5. CSR Pioneer’s

6. 1. CSR yesterday2. CSR today3. CSR tomorrow

7. Corporate Social Responsibility (CSR) Corporate Responsibility (CR) Social Responsibility (SR) Corporate Citizenship Sustainable Development Code of Conduct Triple Bottom Line People Planet Profit (PPP) Socially Responsible Investing (SRI) Corporate Governance (CG) Fair Trade Social Accounting Balanced Need Scorecard Fullständig redovisningetc… CSR definitions and concepts ”… the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large." World Business Council for Sustainable Development CSR: Meeting Changing Expectations, 1999

8. Perspectives on CSR Increase revenues Globalization Public demand Logistics Innovation Businessdevelopment Branding Charity New markets Recruiting Philantrophy Production Efficiency Competencedevelopment Internalculture

9. CSR in the business community • Adidas about social and environmental affairs: • ”Leadership, in social and environment terms, means that: 'We are dedicated to socially responsible, safe and environmentally sustainable practices in the company and its supply chain, and to enhancing the value of our brands…” • BP about climate change: • ”Our goal is no damage to the environment; our challenge is to achieve this while continuing to deliver energy products that support growth and social development around the world.” • Unilever about sustainability • ”We are committed to contribute to sustainable development. We see this as a hard-edged commercial imperative because we will only be able to maximise shareholder value and prosper in the long-term if we operate in a much more sustainable way.”

10. 4 Exceed and drivepublic/legal andmarketrequirements. 2 Exceed and drivepublic/legalrequirements. 1 Meet minimumpublic/legal andmarketrequirements. 3 Exceed and drivemarketrequirements. CSR strategy and positioning Public/legalrequirements Marketrequirements

11. Pro CSR: Saves money Increases producitivity Increases revenue Not just a slogan but a way of doing business Basis for stock valuation Indicator for well-managed company New business opportunities Strategic issue for the Board of Directors Anti CSR Limits the market economy’s ability to deliver higher standards of living Deterioration of the economy Stems from business critical NGOs Ignores profitability Guilt attributing ”threatens prosperity in poor countries as well as rich. It is likely to reduce competition and economic freedom and to undermine the market economy.” CSR support vs. criticism

12. New CSR standard: ISO 26000 • Environment • Human rights • Labour practices • Organisational governance • Fair business practices • Community involvement and social development • Consumer issues

13. Environment Pollution prevention Prevention of global warming Sustainable consumption and land use Preservation and restoration of ecosystems and the natural environment Respect for future generations Human rights Civil and political rights Economics, cultural and social rights Fundamental labour rights Community rights Labour practices Labour practices Occupational health and safety Dignified working conditions Human resources development Worker as a human being Organisational governance Inclusiveness Ethical conduct Disclosure of information Respect for rule of law Accountability Fair business practices Promotion of ethical and transparent activities Promotion of free competition Application of fair and ethical supply and after-supply practices Respect for intellectual and other property rights, and respect for users’ interests Fight against corruption Community involvement and social development Development impacts Community involvement Society development Philanthropy Consumer issues Providing consumers with accurate and adequate information Provision and development of socially-beneficial services and products Provision and development of safe and reliable products and services Protection of consumers’ privacy www.iso.org www.sis.se ISO 26 000, core issues and subjects

14. CSR resources and support • Amnesty Business Group www.amnestybusinessgroup.se • Business for Social Responsibility www.bsr.org • Business in the Community www.bitc.org.uk • CSR Europe www.csreurope.org • CSRwire www.csrwire.com • Earth Charter Initiative www.earthcharter.org • European Social Investment Forum www.eurosif.org • Global Compact www.globalcompact.org • Global Reporting Initiative www.globalreporting.org • 1% for the planet www.onepercentfortheplanet.org • Social Venture Network www.svneurope.com • World Business Council for Sustainable Development www.wbcsd.org

15. 1. CSR yesterday2. CSR today3. CSR tomorrow

16. Markets of the Future Consumption Health Energy Mobility Agriculture • World Resources Institute, United Nations Environment Program and World Business Council for Sustainable Development: ”Tomorrow’s Markets. Global Trends and Their Implication for Business” (2002)

17. External driving forces Socially Responsible Investing, SRI • … is investing that is mindful of the impact those investments have on society. SRI traditionally combines investors' financial objectives with their concerns about social, environmental, ethical (SEE) and governance (G) issues. European Social Investment Forum(www.eurosif.org) € 1 trillionEuropean SRI market (2006) www.eurosif.org $ 31 trillionCarbon Disclosure Project (2006) www.cdproject.net

18. Sustainable business strategies Seeking opportunities and managing risk. Risk Opportunity • Forum for the Future (U.K.), Centre for Sustainable Investment and Henderson Global Investors“Assessing business sustainability” (2002)

19. … or maybe the Hypercar? • Hydrogen fuel cells, ultralight construction. • 3-5 times better fuel economy Pioneers for the Future Interface Carpets (1973): • World leader in floor tiling. • 40% market share. • Imitates the closed loop of nature’s eco-system. • Market cap 2006, Nasdaq: $ 823 million. Evergreen Solar (1994): • Worlds largest manufacturer of modules for photovoltaic energy production. • $ 3 million invested 1996 • Market cap 2006, Nasdaq: $ 585 million. Toyota Motor Co. (1937) • Hybrid vechicle market leader since 1997 • >20 000 hybrid cars/year in Europe.

20. Triple Logic Business: Switchpower A clean alternative for everyone. www.triplelogic.se www.switchpower.se

21. "... CSR can be much more than a cost, a constraint, or a charitable deed - it can be a potent source of innovation and competitive advantage." Michael E. Porter & Mark R. Kramer, Harvard Business Review, December 2006

22. -Thank you! Magnus Emfel magnus.emfel@etikakademin.se, +46 708 585 505 The Academy for Worklife Ethics www.etikakademin.se