1. ChallengesofCorporate Social ResponsibilityDr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

2. Learning ObjectivesAt the end of this course, participants should beable to do the following:Identify the relevance of CSRAscertain the right model of CSR for a firmDevelop effective implementation path for CSRResolve the challenges of CSR Initiatives andcraft appropriate CSR strategy 3. What is CSR?Corporate Social Responsibility is a conceptwhereby companies integrate social andenvironmental concerns in their businessoperations and in their interactions with theirstakeholders on a voluntary basisSource: European Commission 4. Corporate Social Responsibility is the continuingcommitment by business to behave ethicallyand contribute to economic developmentwhile improving the quality of life of theworkforce and their families as well as of thelocal community and society at largeSource: World Business Council for Sustainable Development 5. Social responsibility (is the) responsibility of anorganisation for the impacts of its decisions andactivities on society and the environmentthrough transparent and ethical behaviour that isconsistent with sustainable development and thewelfare of society; takes into account theexpectations of stakeholders; is in compliancewith applicable law and consistent withinternational norms of behaviour; and isintegrated throughout the organisation.Source: ISO 26000 Working Group on Social Responsibility 6. Freidman Versus RussellMilton Friedman indicated that the one and only onesocial responsibility of a business is to use itsresources and engage in activities designed toincrease its profits, as long as it stays with the rulesof the game, which is to say, engages in open andfree competition without deception or fraud.Kirk Russell insisted that every right is married to aduty, every freedom owns a correspondingresponsibility. Hence, there cannot be genuinefreedom unless there exists also genuine order in themoral realm and in the social realm. 7. CSR is about building Trust Trust in the brand Trust in performance of the product Trust in the company to do the right thing Trust in you as an employerSource: Carrie Johnson, Corporate Social Responsibility 8. Major Elements of CSR 9. Dimensions of CSR Internal Dimension: This focuses onorganisational practices with respect tointernal stakeholders that should be alignedto corporate social responsibility standards. External Dimension: This focuses on anorganisations practices towards externalstakeholders which should be in accordancewith international standards of businesspractices. 10. Internal Dimension 11. External Dimension 12. There is no way to avoid paying serious attention tocorporate citizenship: The costs of failing are simplytoo highThere are countless win-win opportunitieswaiting to be discovered: Every activity in a firmsvalue chain overlaps in some way with social factors everything from how you buy or procure to howyou do your research yet very few companies havethought about this. The goal is to leverage yourcompanys unique capabilities in supporting socialcauses, and improve your competitive context at thesame time. The job of todays leaders is to stop beingdefensive and start thinking systematically aboutcorporate responsibility.- Michael Porter, Professor, Harvard Business School 13. Corporate Responsibilities 14. Four Phases of CSR Corporate Social Stewardship (1950s 1960s) Corporate Social Responsiveness (1960s 1970s) Corporate/ Business Ethics (1980s 1990s) Corporate/ Global Citizenship (1990s 2000s) 15. Models of CSRPosition Responsible to ActionMinimalist(Premodern)Stockholders/Owners Maximizes ProfitSelf-Interested(Premodern)Stockholders/Owners/Cost controllersFocus on services thatenhance profit andcorporate growthSocial Contract(Modern)Entities with socialand legal contractCommitment to socialservicesStakeholderManagement(Postmodern)Entities that influencedirection and fortuneDeployment ofresponsive strategiesStakeholderStewardship(Postmodern)The whole society Solutions for socialproblems 16. Features of Minimalist CSR Model Premises- Shareholders dominance- Legal bond Critique- Every other model disturb profit- Other models are socialist 17. Features of Self-Interested CSR Model Premises- promote philanthropy- reputation Critique- Minimalist is too rigid 18. Features of Social Contract CSR Model Premise- Power and responsibility are always together- Organisation is a moral entity- Existence of contract with society Critique- Minimalist and Self-Interested are focusedon profit 19. Features of StakeholderManagement CSR Model Premise- Focuses on primary and secondarystakeholder groups Critique- The social contract model is too vague 20. Stakeholder Groups 21. Features of Stakeholder StewardshipCSR Model Premise- Concerned about tertiary stakeholders- Focuses on high ideals- Provide for non- beneficiary entities- Cleave to trust Critique- Stakeholder management model is not veryambitious 22. Issues of Trust and Change in Models of CSRModel Participants Change Issues TrustMinimalist Investors/Stockholders,Owners/managersHyper competition,globalisationGrowth of trust dependson extent of performancecompared to expectationSelf Interested Program advocates,owners/managersCompetition, upgrading ofreputationGrowth of trust dependson extent of projectedcorporate reputationSocial Contract Owners/managers, Entitiesthat engage in contractwith firmFlexibility,internationalizationGrowth of trust dependson how well the legal andsocial contracts aresustainedStakeholder Management Primary and SecondaryStakeholders,Owners/managersInformation management,public inquestGrowth of trust dependson level of inclusiveness indecision-making processesStakeholder Stewardship Representatives of tertiarystakeholders,owners/managersDemands for tertiarystakeholders,environmental activismGrowth of trust dependson success of negotiatedagreements between thecorporation andrepresentatives of tertiarystakeholders 23. Factors that Promote CSRGlobalizationAdvances in CommunicationSustainable developmentGovernanceLeadershipCompetitive AdvantageConsumerismAdvocacyEthical Culture 24. CSR versus LawOrganizations tend to choose between legalcompliance mentality and ethical compliancementality.Legal compliance mentality focuses on observance oflaws pertaining to health and safety, environmentalprotection, bribery and corruption, taxation,consumers, corporate governance, workers andhuman rights.Ethical Compliance mentality directs proactive activitiestowards furthering sustainable development and CSRengineered innovation while acting in pursuit ofbusiness excellence 25. CSR Implementation FrameworkWhat? (Task Delineation) How? (Checkpoints on the journey)1. Conduct a CSR assessment Assemble a CSR team Develop a working definition of CSR Identify legal requirements Review corporate documents, processes and activities, and internal capacity Identify and engage key stakeholders2. Develop a CSR strategy Build support with CEO, senior management and employees Research what others are doing, and assess the value of recognized CSR instruments Prepare a matrix of proposed CSR actions Develop ideas for proceeding and the business case for them Decide on direction, approach, boundaries and focus areas3. Develop CSR commitments Do a scan of CSR commitments Hold discussions with major stakeholders Create a working group to develop the commitments Prepare a preliminary draft Consult with affected stakeholders4. Implement CSR commitments Develop an integrated CSR decision-making structure Prepare and implement a CSR business plan Set measurable targets and identify performance measures Design and conduct CSR training Establish mechanisms for addressing problematic behaviour Create internal and external communication plans Make commitments public5. Assure and report on progress Measure and assure performance Engage stakeholders Report on performance, internally and externally6. Evaluate and improve Evaluate performance Identify opportunities for improvement Engage stakeholdersSource: Paul Hohnen, Corporate Social Responsibility, An Implementation GuidePlanDoCheckImprove 26. CSR StrategyThis is a firms road map for accomplishing itsobligations in corporate social responsibilitiesand should consider factors such asstakeholder interests, competitors CSRinclinations, priority areas, acceptableapproach and process for ascertainment ofperformance. 27. Common Mistakes in CSR Lack of vision Scale of change Sub-strategic management Risk/opportunity roles Selective hearing Maintaining old structures One World approaches Uneven approaches Non-participative management Failure to see CSR as innovationSource: Anders & Winst Company 28. Factors to Consider inbusiness case for CSR Areas in which a company can build competitive advantage Short and Long term goals Benefits Higher cost efficiency for organisational activities Risk of each opportunity Influence of stakeholders Areas of great gain Cost of implementation Implications of programme 29. We believe that the leading global companiesof 2020 will be those that provide goods andservices and reach new customers in waysthat address the worlds major challenges including poverty, climate change, resourcedepletion, globalization, and demographicshifts.- Niall Fitzgerald, Former CEO & Chairman, Unilever 30. International CSR InitiativesPosing Challenges to Firms United Nations Global Compact World Summit on Sustainable Development OECD Guidelines on Multinational Enterprises ISO 26000 ISO 9001 ISO 14001 OHSAS 18001 OECD Principles of Corporate Governance Social Accountability 8000 Global Reporting Initiative World Business Council for Sustainable Development Environmental and Social Standards of International Finance Corporation International Labour Standards of International Labour Organisation Equator Principles Principles for Responsible Investment United Nations Human Rights Instruments Transparency International Business Principles Voluntary Principles on Security and Human Rights 31. Ghana Business CodeIts a private sector led initiative developed incollaboration with a development partner forimplementation of UN Global CompactPrinciples. In the course of aligning the 10Principles of UNGC to local standards inGhana, a new product containing 55 pointprescriptions was established as GhanaBusiness Code. 32. Examples of Ethical Compliance toChallenges of CSR Jebsen & Jessen stopped producing chainsaws inorder to stop contributing to deforestation. Toyotas commitment to champion zero emission byproducing Prius hybrid petrol/electric model. 33. ExerciseThe high level of advocacy for corporate socialresponsibility influenced Maris & Patty toconsider development of CSR strategy. Thefirm manufactures batteries with variouschemicals that contribute to environmentalhazards within its host community. What shallbe your recommendation appertaining to itsCSR strategy, implementation and focus. 34. Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertisein HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing,Interim Management, CSR, Leadership, Project & Programme Management, Cost Management,Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, CloudComputing, eLearning & International Business. He holds proprietary rights of various systems. He iscurrently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; SpecialAdvisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Boardof GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training),Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of ManagementConsultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; TurnaroundProject Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels;Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles),Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, RefinedShipping; Director of Programmes & Governing Council Member, Institute of Business Development,Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member ofStrategic Planning and Implementation Committee, Chartered Institute of Personnel Management ofNigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke AkintolaUniversity of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost ManagementJournal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board ofDirectors (Several Organizations). He holds Doctoral Degree in Management, Master of BusinessAdministration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He isan author & widely featured speaker in workshops, conferences & retreats. He was involved indeveloping Specialist Masters Degree Course Content for Ladoke Akintola University of Technology(Nigeria) and Jones International University (USA). He holds Interim Management Assignments onBoards of Companies as Non-Executive Director. 35. Thank You