Corporate Social Responsibility …Leadership in the 21st Century

Presentation by:Anne-Maree HuxleyCEO & Founder Models of Success & Sustainability1 Tulip CourtDoncaster East VIC 3109

For the LLMSIG Professional Development ConferenceAdelaide July 9, 2007

What is CSR to you?

What’s in a name?

Corporate Social Responsibility

Corporate Responsibility Responsible Business Individual Responsibility Enlightened Self Interest Universal Responsibility ESG

Corporate Citizenship Sustainability Triple bottom line Responsible business People, planet, profits Best practice corporation Corporate Social Opportunity Total Corporate Responsibility

The Australian Stock Exchange (ASX) suggests that the terms corporate responsibility, corporate social responsibility, and sustainability are used interchangeably.

Definitions

Sustainability “Development which meets the needs of the present without

compromising the abilities of future generations to meet their own needs”.

Our Common Future The Brundtland Report

United Nations World Commission on Environment and Development, 1987

Corporate Social Responsibility “The ethical behaviour of a company towards society. …management

acting responsibly in its relationship with other stakeholders who have a legitimate interest in the business AND OR

CSR is the continuing commitment by business to behave ethically and to 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

Definitions cont’d

“To stimulate innovative ways of thinking and to support implementation of change in order to achieve growth and wealth

creation for all, whilst meeting the needs of environmental and social renewal through sustainable global business and ethical trading”.

Sharon Jackson – Carlton CSR / Associate Faculty Cranfield University UK

Some say the dynamic behind CSR is that everyone wants to make money and everyone wants to go to heaven.

CSR is an attempt to reconcile these seemingly conflicting desires.

David Grayson, Adrian Hodges: “Everybody’s Business”

Is CSR about how a company spends it’s money?

Or how it makes it’s money?

What is the real cost of doing business?

And who bears that cost?

MOSS definition

Corporate Social Responsibility (CSR) describes a company's approach to managing their business processes to maximise their positive impact on stakeholders both within the company and in wider society.

CSR aims to deliver bottom-line benefits and value creation through responsible business practice.

CSR is not cheque book philanthropy plus PR.

CSR at it’s best is:

Aligned with corporate ambition

Integrates business processes

A reflection of corporate and employee values

“70% of global CEOs agree that social responsibility is vital

for the profitability of any company”

PWC / World Economic Forum

“70% of global CEOs agree that social responsibility is vital

for the profitability of any company”

PWC / World Economic Forum

CSR

Marketplace Workplace Community Environment

CSR has 4 key impact areas

CSR is a journey…

The key to success – build it in, don’t bolt it on!

… “And that’s the key … the business strategy. A contract between the corporation and civil society founded on principles of trust with integrity delivered through integrated business strategy – that’s a real CSR that will make a difference. Not just philanthropy; not just volunteering; not just compliance; not just good community activity; not even sustainable environmental practices at their best or human rights evident in employment and customer service…”

Lord Michael Hastings: Helped establish the CSR Academy in UK -

Former Head BBC’s CSR division now Global Head Corporate Citizenship

KPMG

What is the business case for CSR?

We are global citizens Growing lack of trust in business Increased social and environmental problems – too big just for

governments eg BITC, LCF Globalisation - increasing trade – we must be competitive Markets growing faster than social and political structures Scale of business (Now more corporations than countries in the top

100 economies) Technology - growth of the internet and available data Increase of NGOs (non-governmental organisations) Risk Management – Hardies, HIH, Enron, AWB, Nike Corporate terrorism and product tampering Flu Pandemic Climate Change

Societal Expectations on CSR vs Industry CSR Performance Ratings

Total 21 Countries, 2001-2005 ©Globescan

Human traffickingBlood diamondsOil warsWater wars

Famine…Poverty…

Weather extremes in our region

Photo: Darren Seiler Photo: Greenpeace

The Ten Hottest Years on Record Have Occurred in the Last 16 years

19982002200320062004199719991995 20052001

SOURCE: US National Oceanic and Atmospheric Administration: National Climate Data Center

Melbourne CBD?

What might future generations inherit?

Photo: Fairfax photos

Sydney CBD?

If global warming continues, we can expect catastrophic consequences

Deaths Heat waves and intensity

Disease Drought and wildfires

More than a million species worldwide could be driven to

extinction by 2050.

“There is no doubt we can solve this problem and we must. Global warming is not just an environmental issue – it’s now a moral issue.”

Al Gore – Former US Vice-President

The economics of climate change

Currently 1% of GDP

If not action, could disrupt economic and social activity on a similar scale to that of the great wars and the economic depression of the first half of the 20th century that would be difficult or impossible to reverse.

If no change – cost between 5 – 20% OF THE GLOBAL GDP NOW AND FOR EVER.

Source: Stern Report

Staff shortages – unhappy workers

For the decade between 2020 and 2030, the labour market in Australia will shrink from the 170 000 new employees per annum we enjoy today, down to a mere 13,000 per annum. If we do not find a way to engage and reward employees, business will struggle to perform.

Are companies most important assets safe?

A Proven Business Case

Building the Reputation Goodwill

Licence to operate

Building the People Recruitment

Retention

Development

Building the Business Risk Management

Cost Avoidance

Innovation and learning

Access to capital

Financial performance

Corporate Social Opportunity

Introduction of new health and well-being businesses $80 billion franchise industry in Aust

OPSM - Employer of Choice

Toyoto – new hybrid technology

Westpac saved:

- $50 million in employee turnover by the introduction of

flexible leave policies

- $2.5m in lost injury time

- Cut green house emissions by 35%

IAG – reduced risk and helped the community

Corporate Social Opportunity at it’s best. Interface case study.

Interface has a goal is to be the first fully sustainable corporation, with a zero foot print by 2020 but to reach it’s goal, Interface, which operates in 100 countries with more than 5200 staff, had to completely rethink its business philosophy and redesign its entire production systems and processes globally.

LCF SOCIAL AGENDA

BASIC EDUCATION“EVERY HEALTHY CHILD, A READER!”

ACCESS QUALITY SURVIVAL

InfrastructureReading Program

LCF ROADMAP 2006

BRIGADA ESKWELA

LIBRARY HUBS

STORYBOOK DRIVE/ BRIGHT MINDS READ

LCF SOCIAL AGENDA

EDUCATIONCAPABILITY-

BUILDINGHEALTH &

SOCIAL SERVICES

ACCESS QUALITY SURVIVALHEALTH CARE

DELIVERYINFORMATION

SYSTEM

Scholarships= 24

Infrastructure = 8

School Buildings

Management Technology = 5

CurriculumDevelopment/InstructionalMaterials = 8

TeacherTraining = 9

Reading Program =12

Info. & Comm.Technology = 16

Fairs/Competitions = 2

Financial Support = 2

Livelihood = 1

Tutorials/Bridge Programs

FeedingProgram

Immunization

School-basedScience & Math

clubs

Curriculum Dev’t/Teachers Training/

IT/InstructionalMaterials

LCF ROADMAP 2006

Library Hubs

Science/computerlaboratories

     

The Virgin Earth Challenge is a prize of $25m for whoever can demonstrate to the judges' satisfaction a commercially viable design which results in the removal of anthropogenic, atmospheric greenhouse gases so as to contribute materially to the stability of Earth’s climate. 

Some companies are also addressing societal issues their industry have caused…

Dove Campaign for Real Beauty www.campaignforrealbeauty.com.au

Pro Age All ages, all colours all shapes Self esteem Challenging “harmful beauty stereotypes” and images of unattainable

beauty

“A person's physical appearance shouldn't be defined by outmoded, even oppressive societal expectations”

Dr Robert Butler International Longevity Centre

“The biggest gripe is stereotypes they encounter and their invisibility in the media that surround them… they tend to see women who take enormous

pains to remove any visible signs of age or the signs have been erased in the photographs. They see people playing by old rules: mourn your youth or mimic it. What ever you do don’t reveal the

dirty secret of your age” Dr Nancy Etcoff- Harvard University

“If you want to build a business to last, you will take Corporate Social Responsibility seriously. Talented employees demand it, informed customers expect it, long-term investors will require it. Embedded in the business, CSR can be a source of creativity and innovation, leading to new products and services, access to new or under-serviced markets, or even new business models.

Smart businesses know they will not have all the CSR answers themselves. They will learn from each other and from stakeholders in business”.

David Grayson OBE,CBEDirector, Business in the Community (UK)Principle BLU and Strategic Rail Authority

Co-Founder Project North East. Co-Author Every Body’s Business

& Corporate Social Opportunity

Is it time to make CSR / ESG / Sustainability a greater part of your life and or business?

What can and will you do?

Prerequisites

Professor Jerry Porras – Stanford University (Author “Successful Habits of Visionary Companies” suggests they all have 1 thing in common….B-HAGS

Innovation - new ways of thinking to effect positive change

Will and tenacity to make the hard decisions, investments and sacrifices

What could you personally could do to make a differenced as an individual?

If you can see it – you can create it….

Never doubt that a small group of thoughtful committed people can change the world; indeed it is the only thing that ever has.

Margaret Mead

"If you think you're too small or insignificant to make a difference, you've obviously never slept with a mosquito"

Anita Roddick - Founder of

The Body Shop

Thank you…

Questions?

Presentation notes will be found at www.moss.org.au – past events.