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Promotion of Corporate Social Responsibility November 23, 2004 Tomosaburo Yano METI

Promotion of Corporate Social Responsibility November 23, 2004 Tomosaburo Yano METI. Contents. 1. CSR is Old Song & New Song 2. Benefit for Enterprises 3. CSR and ISO 4. Asian Leadership. CSR ＝ Old & New Song (Coporate Social Responsibility). ＣＳＲ is an Old Song.

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Promotion of Corporate Social Responsibility November 23, 2004 Tomosaburo Yano METI

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  1. Promotion of Corporate Social Responsibility November 23, 2004 Tomosaburo Yano METI

  2. Contents 1. CSR is Old Song & New Song 2. Benefit for Enterprises 3. CSR and ISO 4. Asian Leadership

  3. CSR＝Old & New Song(Coporate Social Responsibility)

  4. ＣＳＲ is an Old Song ● “Good for Sellers, Good for Buyers, Good for the People” from Ohmi Merchants’ Way “Three-Sided Good” in 1600s ● “Economy without Morals is Crime, Morals without Economy is Talking in Sleep” from Sontoku Ninomiya, a great thinker of the 1800s ● “Your work is not yours for yourself. Your work is the People’s work which the People gives you to do” from Konosuke Matsushita, Founder of Panasonic

  5. Tradition of CSR among Japanese Ｆirms ●Human-centered management －Employees as the single most precious resource 　 ・practice lifelong employment 　　　・provide education & training while respecting individual desire and preferences 　－Manager and labor work together in efforts to improve labor environment and conditions ⇒resulting in smaller income gap between employers and employees

  6. Core Value of Japanese Society ●“Wa” at the core of human-centered management － The Japanese core value of “Wa”, which might be translated as “harmony”, permeates Japanese society － It dictates that we must live in harmony with each other as well as with the community and nature

  7. Corporate Social ResponsibilityFrom shareholders to stakeholders Bottom line of enterprise Economic efficiency Social Fairness Environmental preservation Evaluation of enterprise performance

  8. Triple Bottom Line Fairness Society Economy Sustainable growth Balance Coexistence Environment

  9. Why is CSR Important Now ? ● Enlargement of size of enterprises and globalization of corporate activity -> Business enterprises exert influence upon society ● Expansion of communication beyond national borders plus IT revolution -> "Credibility and trust" of enterprises is a central issue ● Various stakeholders have influential opinions -> Increasing influence of NGO’s opinions ● Frequent scandals involving business enterprises enhance interest in corporate ethics ● Rise of investors who emphasize CSR as an investment criterion (SRI: Socially Responsible Investment)

  10. Government Investors Regulation Procurement Suppliers and business partners Financial organizations Supply chain Consumers Employees Business enterprises Customer Employment Local community and NPO Labor Union Environment (Source) The Japan Research Institute, Limited; CSR Archives HP Relationship between Business Enterprises and Stakeholders

  11. Benefit for Enterprises 　“3R for CSR” • Responsible • Reliable • Respectable

  12. ●Credibility and Reputation • To realize continual and stable growth of organization • To ensure credibility from society • To fuse with local community (corporate citizen) ●Competitive Advantage • To increase corporate competitive advantage in the global market • To ensure SRI (social responsible investment) ●Risk Management • To provide effective compliance techniques • To cope with risk to managers due to stockholders' representative action (Source) KEIZAI DOYUKAI (Japan Association of Corporate Executives), The Corporate White Paper / 2003 etc.

  13. Factors to Build CSR in Business ％ (Source) World Economy Forum / CEO Survey, 2002

  14. Shift to Knowledge-based Economy Environment Intangible asset Tangible asset ＣＳＲ Brand value Good reputation of organization Employees’ satisfaction Executives’ planning capability

  15. Different Expectations of CSR ＜Human relation＞ ＜Corporate as community＞ ＜Corporate Citizen ＞ ＜Social cohesion＞ Interests depend on regions, religions and customs.

  16. CSR is an Investment for Tomorrow • Sustained and Stable growth of organization • Securing credibility from society • Improvement of corporate compatibility in global market • Providing effective compliance techniques • Reconciliation with Corporate citizenship • Securing of SRI

  17. CSR and ISO

  18. General meeting To be held once a year ISO Organization chart Council 18 member nations Central Secretariat consisting of 165 persons including Secretary General Committee on conformity assessment(CASCO) Technical Management Board (TMB) Committee on developing country matter(DEVCO) Advisory Group on CSR Technical Committee (TC) Committee on consumer Policy(COPOLCO) Sub-committee (SC) <148 member nations> Working Group (WG)

  19. CSR Standards of Developed Countries • Australia AS 8003 (Corporate social responsibility) • Canada PLUS 9018 (Corporate social responsibility) • France SD21000 (Development of corporate social responsibility) • Japan ECS 2000 (Corporate ethics compliance standard) • Japan Keidanren Implementation Guideline (Japan Business Federation) • Spain PEN (Ethics - corporate ethics management system) • Thai TLS8001 (Thai Labour Standards- Thai CSR : Requirement) • U.K. AA 1000 (Social and ethical accountability) • U.K. SIGMA (Sustainable - management guideline) • U.S. EOA (Corporate activity management system) • U.S. SA 8000 (Social accountability)

  20. International Statement on CSR • OECD multinational corporate guideline(1976/revised in 2000） • ILO/Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy(1977/1987/2000 addition) • Guideline for Corporate Behavior at the Caux Roundtable Meeting(1994） • United Nation’s Global Compact(2000） • ＧRI Guideline(2000/revised in 2002） ★CSR was discussed at G8 Evian Summit (June 2003)

  21. Discussion of ISO/SR April 2001: ISO Council (Proposal from Israel) May: COPOLCO Plenary (Launch the CSR Feasibility Study) May 2002 : COPOLCO/CSR Final Report September:ISO Council (establishment of SAG) January 2003: The 1st SAG meeting (Toronto) February: The 2nd SAG meeting (Geneva) July: The 3rd SAG meeting (São Paulo) January 2004: The 4th SAG meeting (Munich) April:The 5th SAG meeting (Chicago) Completion of Report → TMB

  22. ISO/SR Conference, Stockholm, 21-22 June, 2004

  23. Future Development of ISO/SR Standard June 2004 :ISO/SR Conference (Stockholm) June :TMB (establishment of WG) September :TMB (Chair & Secretary: Sweden and Brazil) October :NWIP voting March 2005 :First Meeting of WG (Brazil) 2007 :Issue ISO/SR Guideline

  24. ISO Working Group on SR • Membership: 6 experts per ISO member bodies. 2 representatives from each intl. & broadly-based regional liaison orgs • Chair: Mr.Jorge Emanuel Reis Cajazeira, Suzano Pulp & Paper, of Brazil. • Secretary:Mr.Eduardo Campos De Sao Thiago, ABNT official, of Brazil & Ms.Kristina Sandberg, SIS official, of Sweden. • Timeframes : 3 Years • First meeting(Foreseen): 1st Q of 05, in Brazil

  25. Asian Leadership Let’s take the challenge of making our own international standard !

  26. Participation in ISO/SR/WG ● Asian area -is a key region in production and consumption in the world. -should participate energetically in the process of standard development to create own international standard. - most enlarge its existing network to share our experience and knowledge on SR.

  27. Japan’s Statement Social responsibility,as the overall relationship of the corporation with all of its stakeholders, is the most significant issue the world is facing. ISO work will thus lead us into a new global phase. Japan is eager to contribute to broadening awareness of ISO/SR and development of supporting tools such as regional seminars, and exchange of experience in best practice and SR implementation.

  28. AP-COPOLCO Ｗorkshop on CSR AP-COPOLCO, a regional community of Asia and Pan-Pacific countries chaired by Japan, is planning to have a workshop on SR next December, in order to have talks with developing countries that potentially would have difficulty with regular participation in face-to-face meetings by this means, we hope to ensure broad input. AP-COPOLCO plans to establish the SR Forum to expand awareness of SR. Contact: sekiguchi@jsa.or.jp

  29. CSR International Symposium The Institute for International Studies and Training (IIST, Japan) will hold an International Symposium on CSR supported by METI as a part of the Project of APEC Human Resources Development. • Date: Wednesday, January 19, 2005 • Place: Keidanren Hall, Tokyo • Participants: APEC Member countries and regions • Contact: inaba@iist.or.jp JICA/AOTS/APEC Training Seminars JICA (Japan International Cooperation Agency), AOTS (Association for Overseas Technical Scholarship), APEC provide several opportunities to study on CSR in their training programs for developing countries.

  30. Work together toward 2007 ●CSR is a complex and broad range of issues: business ethics, human rights, environment management, community development and more. ●Japan would be happy to help the WG provide the opportunity to get everyone involved in the ISO process so that all the participants can have their own international standard on SR. “Businesses are run by People for People”

  31. THANK YOU Contact Tomosaburo Yano METI/JISC Phone :+81-3-3501-9283 Fax :+81-3-3580-8631 E-mail:yano-tomosaburo@meti.go.jp Yutaka Okamoto Mihoko Sakurai JSA Phone :+81-3-5770-1569 Fax :+81-3-5770-1636 E-mail:misakura@jsa.or.jp

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