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MM4513Corporate Social ResponsibilityPart 6 Corporate Responsibilityto Community

Week 11Community Responsibility in Practice

Dr. Michael Chow

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Previous Class

How do we define community?Why should Businesses be involved with thecommunity?How do Businesses manage community issues:donation, volunteering, philanthropy, alliances,etc.Globalization and Community Engagement byBusinessesFuture of community engagement byBusinesses

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T his Class

1. Reality Check: the Post Financial T sunami Era2 . Fundamental: the ³corporate´ in ³CSR´, who is

in charge of what and why?3 . Positioning of Community in the Stakeholder

Map4. What is the ³Community´?5. Corporate and Community: how matching are

they?6. T owards a New Frontier 7. References

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1. Reality Check:the Post Financial T sunami Era

Substantial $ loss (and more to be realized)Efficiency & Effectiveness of the Financial

System challenged, what next?Bail-out banks making huge profits, withunthinkable bonus to their top executivesand traders, shame or shine?Nations are ³exposed´, e.g. ³PIIGS´

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1. Reality Check:the Post Financial T sunami Era

International tension, finger-pointing,attention-distraction, etc.

Economics-Politics-Environment becomesa messy web At core, it is about Ethics, more precisely,the LA CK of Ethics

A time of unprecedented T RUS T Deficit inthe world

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2 . Fundamental:T he ³Corporate´ in the ³CSR´

Who carries managerial responsibility for CSR?Who are tasked to deliver CSR?How much is the CSR budget and where does itcharge to?What are the KPIs for CSR?Ideally, 2 main characteristics:

a distinct CSR function led by a senior enough executivewith adequate mandate from the top & resourcesCSR components well integrated to business model (theultimate)

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3 . Positioning of Stakeholder Groups

Recall: the typical major stakeholder groups are«

What are the likely top 3 stakeholder groups to a corporate?What position does ³Community´ rank in a

corporate¶s CSR stakeholder map? WHY?However, Strong Characteristics of Community are«

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3 . Positioning of Stakeholder Groups

Investor

Employee

Supplier Environment

Regulator

Consumer

Community

Business

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4. What is the Community? (HK context)

Key players: heavily government-subsidized social service organizations(NGOs), charities, government, semi-government/public institutes, ³independent´NGOs, trade associations, ³service´-oriented groups (e.g. Lions Club, Rotary,JCI, JA, etc.), foundations, etc.Who are in charge of these key players,what are their background and mandate?

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4. What is the Community? (HK context)T ypical engagement activities:

direct donation,corporate volunteering,³mentoring´,elderly home visit,English teaching,financial literacy

awareness,

sports events,work life balance,inclusion,female/women

concern/participation,Environmental initiatives

³Casual´ day

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4. What is the Community? (HK context)

Outcomes:awareness/capability building to recipients,direct help to recipients,showing ³care and concern´ (show µgood´),staff engagement,recruitment edge/stories,

Awards, etc.KPIs from these engagement activities, e.g.publicity, awards, social report, and?

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5. Corporate and Community:How matching are they?

Ideology:$ vs Goodwill,

Elite vs Grassroot,Plenty vs NeedyRole Inter-play:

Giver and T aker?Hijacker and Hostage?Partner?

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5. Corporate and Community:How matching are they?

Direction: Create Common Platform andFocus on Common Language

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6. T owards a New Frontier:Business-SE Collaboration

SEBusiness Social Charities

Love$

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6. T owards a New Frontier:Business-SE Collaboration

Social/Environ.Issue

Social Mission

Business ApproachBusiness

CSRSE

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6. T owards a New Frontier:Business-SE Collaboration

Social Enterprise (SE): social mission withbusiness approach, founder/leader typically are³entrepreneurial´/social changer-maker (e.g.

ASHOKA, Grameen)Common Platform for CSR and SocialEnterprise, interact at common concerned socialarea(s) with agreeable business approach

Corporate to ³out-source´ relevant CSR work toselected SEs thus expanding and upgradingtheir CSR portfolio

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6. T owards a New Frontier:Business-SE Collaboration

Selected SEs, because they practice businessapproach with financial sustainability in mind,may ³cost´ the sponsoring Corporate less moneyfor the same volume of achievement (littleadditional financial need for pure recurring items)Example, in China, many Social Foundations/platform organizations are active incubatingstart-up/grow-up SEs (e.g. You Change, Narada,NPI, etc.) Scenario only started 2 -3 years ago.

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6. T owards a New Frontier:Business-SE Collaboration

British Embassy in China, Skills for SocialEnterpreneur T raining, 2 00 9 -2 011, targets totrain 700+ social entrepreneurs in China

aloneE.g. micro-financing, specialized training for the needy, elderly association, sciencetraining for youngsters, handcrafts, womendevelopment, fair trade, rural development,etc.

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7. References:Local/Regional Perspectives

Community Business (HK-based/focused)CSR Asia (HK-based/Asia-focused)

ASrIA (Association for Sustainable & ResponsibleInvestment in Asia)HKCSS

HKCSS-HSBC Social Enterprise Business Center

CSR Publication: http://www.hkcss.org.hk/sdp/csrpulseSEF (Social Enterprise Forum, HK-based/focused)NPI (Non Profit Incubator, China-based/focused)

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7. Reference: Global ³Ranking´W orld¶s Most Ethical Companies , Ranking since 2 007T he research-based Ethisphere Institute is aninternational think-tank dedicated to the creation,advancement and sharing of best practices in business

ethics, corporate social responsibility, anti-corruption andsustainability (NY-based).7 Criteria: Corporate Citizenship and Responsibility;Corporate Governance; Innovation that Contributes tothe Public Well Being; Industry Leadership; Executive

Leadership and T one from the T op; Legal, Regulatoryand Reputation T rack Record; and Internal Systems andEthics/Compliance Programhttp://ethisphere.com/about-ethisphere/

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T o Conclude

1. Reality Check: the Post Financial T sunami Era2 . Fundamental: the ³corporate´ in ³CSR´, who is

in charge of what and why?3 . Positioning of Community in the Stakeholder

Map4. What is the ³Community´?5. Corporate and Community: how matching are

they?6. T owards a New Frontier 7. References

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Q &AStay in T ouch

dr.michael@cougars.com.hkwww.cougarscsr.comwww.cougars.com.hk

T hank-You