CSR in SMEs - part 2

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www.eoi.es CSR in SMEs - part 2 IMSD / CSR in SMEs PROFESSOR daniel truran - @dtruran - [email protected]

description

the second of a three part course offering ideas and insights into how SMEs can successfully implement and embed CSR / responsible behaviours, conducive to a meaningful and successful enterprise.

Transcript of CSR in SMEs - part 2

Page 1: CSR in SMEs - part 2

www.eoi.es

CSR in SMEs - part 2

IMSD / CSR in SMEs

PROFESSORdaniel truran - @dtruran - [email protected]

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ebbf.org / Daniel Truran www.eoi.es

In the last class we ...

introduced SMEs, new kinds of SMEs, specific traits of SMEs and their new “local” environment

what is and what can be the impact of SMEs (positive and negative)

what drives SMEs to be responsible (passive and active drivers)

introduced the “love brand” and new purchasing patterns - advocacy

three examples of CSR application, specially useful in times of crisis(Warby Parker, Young Italian Industrialist pen cases, Giada Dall’O)

role play and other examples of stakeholder dialogue in an SME

IMSD / CSR in SMEs

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why do you think that employeesshould be the first focus point of CSR in SMEs ?

EnterpriseEnterpriseEnterprise

Sh

are

ho

lders

EmployeesCustomers

EnvironmentC

om

mu

nit

iesSuppliers

IMSD / CSR in SMEs

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“love brand”& advocacy

positiveadvocacy

making the promise delivering the promise

creating emotional engagement

IMSD / CSR in SMEs

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketingmaking the promise

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketingmaking the promise

delivering the promise

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

making the promise

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

making the promise delivering the promise

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

making the promise delivering the promise=

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

making the promise delivering the promise=

walk into a shop / make a phone call

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

delivering the promise

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

making the promise delivering the promise

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IMSD / CSR in SMEs

EmployeesCultureValuesBehaviours

CompanyCultureValuesBehaviours

Owners’ priorities and values

CompanyMarketing

making the promise delivering the promise!

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just to be clear - what do we mean by “values” ?Live Our Values - Our values serve as a compass for our actions and

describe how we behave in the world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

IMSD / CSR in SMEs

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just to be clear - what do we mean by “values” ?Live Our Values - Our values serve as a compass for our actions and

describe how we behave in the world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

http://warbyparker.com ‘s core values

IMSD / CSR in SMEs

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Warby Parker’s way of applying its values: do good ... to their suppliershttp://www.warbyparker.com/tv

making stakeholders feel part of the company

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Our unconscious part of mind and personality

Values

made evident by visible

Behaviours

IMSD / CSR in SMEs

MAKING the promise

DELIVERING the promise

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You see behaviours

They derive froma person’s values, mental models, mind, personality

IMSD / CSR in SMEs

what is one of your “core” values?

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You see behaviours

They derive froma person’s values, mental models, mind, personality

IMSD / CSR in SMEs

what is one of your “core” values?

which of your behaviours reflects this core value?

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The way work is usually thought about. . .

A BStep 1 Step 2 Step 3 Step 4

As Is State

To Be State

John Scherer - scherercenter.com

IMSD / CSR in SMEs

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The way work is usually thought about. . .

A B• Objectives, budgets, systems, wire diagrams, benchmarks, etc.

• Flow charts, tracking systems and progress reports used to ensure success.

• ‘The hard stuff’.

Step 1 Step 2 Step 3 Step 4

As Is State

To Be State

John Scherer - scherercenter.com

IMSD / CSR in SMEs

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Meanwhile, a crucial piece of reality is omitted. . .

‘The Hard Stuff’

BTo Be State

AAs Is State

John Scherer - scherercenter.com

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Meanwhile, a crucial piece of reality is omitted. . .

‘The Hard Stuff’

BTo Be State

AAs Is State

Below the Waterline

The Human WorldJohn Scherer - scherercenter.com

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1 lorry load of shampoo bars would be enough for 800,000 washes but it would take 15 lorry loads of liquid shampoo to do the same job!

But it’s not just the actual plastic packaging that we need to think about.

Compared to bottled liquid products, which are full of water and are heavy, bulky, and inefficient - our naked products are concentrated, weigh less and are easy to transport. Just look at the environmental impact of delivering these to shops:

With solid shampoo bars you save on the environmental cost of producing and disposing of plastic packaging AND reduce the pollution caused by transporting heavy and uneconomical packaged goods!

And now we’ve said it, there’s no taking it back! there, we’ve said it.

(unpackaged) products. We believe that when it comes to reducing our impact on the environment, reducing packaging should be high on everyone’s list of priorities.Just take a look at this: So already that’s 3 less empty bottles to get rid of!

1 Lush Shampoo Bar ( ) lasts as long as…

3 bottles ( ) of liquid shampoo

At Lush our goal is to make our products as effective, fun and luscious as possible, whilst making sure that they are kind to animals and the environment.That’s why we have always loved to fill our shops with whole ranges of ‘naked’

IMSD / CSR in SMEs

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170. Because it values what I value and it has a good time doing it.. Not only has my awareness of natural ingredients and synthetics increased it has changed other aspects of my life and I seem to have changed the way I eat shop, buy clothing ect.. Thanks Lush!

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180. Lush stands for everything I stand for, not many companys does that! I can proudly talk about the products and fell god about it! I never pretend to like the products, I really dolove them! :)

170. Because it values what I value and it has a good time doing it.. Not only has my awareness of natural ingredients and synthetics increased it has changed other aspects of my life and I seem to have changed the way I eat shop, buy clothing ect.. Thanks Lush!

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180. Lush stands for everything I stand for, not many companys does that! I can proudly talk about the products and fell god about it! I never pretend to like the products, I really dolove them! :)

170. Because it values what I value and it has a good time doing it.. Not only has my awareness of natural ingredients and synthetics increased it has changed other aspects of my life and I seem to have changed the way I eat shop, buy clothing ect.. Thanks Lush!

189. it has positive impact on world (directly cosmetic) indirect global consciousness. Leading edge in ideas and care for the nature and the people

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194. its the best place in the world to work, not the easiest but definitely the best. Its an honest company with high ethics and I am proud to tell people what I do for a living.

180. Lush stands for everything I stand for, not many companys does that! I can proudly talk about the products and fell god about it! I never pretend to like the products, I really dolove them! :)

170. Because it values what I value and it has a good time doing it.. Not only has my awareness of natural ingredients and synthetics increased it has changed other aspects of my life and I seem to have changed the way I eat shop, buy clothing ect.. Thanks Lush!

189. it has positive impact on world (directly cosmetic) indirect global consciousness. Leading edge in ideas and care for the nature and the people

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92%

88%

80%

80%

71%

70%

63%

60%

54%38%

25%

22%13%

DoctorsTeachers

ProfessorsJudges

Clergy/PriestsScientists

TV PresentersPolice

Ordinary person in the streetTrade Unions

> BUSINESS LEADERS <JournalistsPoliticians

Who do you trust most?IMSD / CSR in SMEs

http://www.ipsos-mori.com/researchpublications/researcharchive/poll.aspx?oItemId=15&view=wide

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The sense of purpose

Lush was set up:

- for the owners to produce stuff they liked- to influence- to make a profit

IMSD / CSR in SMEs

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challenging conversationsare not only allowed but encouraged:

Ethics Officer - 4 x 4 vs bicycle

Employ Activists

IMSD / CSR in SMEs

at Lush

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EBBF Presentation : J.Patterson : Sept.19, 2008

coherence between values and behavioursCorporate

ValuesOrganization

Practices Success Habits Taboos1.We value respect for the individual

▲Structured and objective accountability▲Recognition of whole person, work-life balance▲Career growth and growth opportunities based on capability

▲Respect others opinions and perspectives▲Listening for understanding▲Punctuality

▲Discrimination or personal attack based on personal prejudices / sex / race / age▲Destructive gossip and rumour-mongering ▲Lack of / Delays in feedback

2.We value our ability to create and exceed high client expectations

▲Walk away from business if it is not in the best interest of the client ▲Commitment to customer communication ▲Documented client satisfaction measures

▲Learn client’s business▲Constantly seek new ways to deliver value to clients▲Operate from the clients perspective

▲“No problem” when there is one / Hiding bad news▲By-passing laid out processes and standards▲Sharing confidential information3.We value

honesty, integrity, and open and caring communication

▲Regular forums for decision making, resolving issues and thinking through future company development.▲Organization-wide communication on priorities, performance and results

▲Speak from the perspective of the listener ▲Talk directly to those concerned about any subject or matter of concern▲Give regular and timely

▲Not dealing with people who do not perform ▲Not speaking up in meetings▲Saying one thing and doing another

see here interview with CEO of KANBAY: http://ebbf.org/ebbforg/john_patterson.html

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How can core values be made to “stick” in people’s minds and behaviours?

Bonus Schemes - show what is important

Reporting should reflect these “success habits” and “the taboos”

IMSD / CSR in SMEs

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"...a global enterprise that allows individuals to their double objective

Bahá'í International Community’s Contribution to the 18th Session of the United Nations Commission on Sustainable Development - 2010

Visions and broader Objectives

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"...a global enterprise that allows individuals to their double objective

Bahá'í International Community’s Contribution to the 18th Session of the United Nations Commission on Sustainable Development - 2010

fully develop their potentialities

Visions and broader Objectives

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"...a global enterprise that allows individuals to their double objective

Bahá'í International Community’s Contribution to the 18th Session of the United Nations Commission on Sustainable Development - 2010

fully develop their potentialities

and contribute to improving the wider community”

Visions and broader Objectives

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Purpose makes you successfuldrives motivation, engagement, “love”

you enter the board meeting of a sparkling drinks company:

IMSD / CSR in SMEs

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Purpose makes you successfuldrives motivation, engagement, “love”

you enter the board meeting of a sparkling drinks company:

Be world leader in sales

IMSD / CSR in SMEs

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Purpose makes you successfuldrives motivation, engagement, “love”

you enter the board meeting of a sparkling drinks company:

Be world leader in sales

Quench the world’s thirst

IMSD / CSR in SMEs

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purpose, meaningful purpose, shared purpose,

is what will drive people and stakeholders, making yours, a highly successful organization

If you want to build a boat, do not instruct the men to saw wood, stitch the sails, prepare the tools and organize the work, but make them long for setting sail and travel to distant lands. Antoine De Saint-Exupéry

IMSD / CSR in SMEs

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the issue: an over 30% of turnover of high end talented engineers

enter Rüdiger Fox - CEO

reduced in one year to under 20% of turnover

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the issue: an over 30% of turnover of high end talented engineers

enter Rüdiger Fox - CEO

reduced in one year to under 20% of turnover

HOW ?

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the issue: an over 30% of turnover of high end talented engineers

enter Rüdiger Fox - CEO

reduced in one year to under 20% of turnover

HOW ?

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What are you producing?engineer’s answeran infrared breaking system made up of ... highest quality ...

the issue: an over 30% of turnover of high end talented engineers

enter Rüdiger Fox - CEO

reduced in one year to under 20% of turnover

HOW ?

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What are you producing?engineer’s answeran infrared breaking system made up of ... highest quality ...

Altran engineers’ new answer:a new system that saves lives

the issue: an over 30% of turnover of high end talented engineers

enter Rüdiger Fox - CEO

reduced in one year to under 20% of turnover

HOW ?

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now think and create a “new” purpose for your SME

what new products and services would serve that new purpose?

choose a real SME

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now think and create a “new” purpose for your SME

what new products and services would serve that new purpose?

choose a real SME

create a meaningful purpose

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now think and create a “new” purpose for your SME

what new products and services would serve that new purpose?

choose a real SME

create a meaningful purpose

deliver that promise

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http://www.youtube.com/watch?v=l7Ql2F4rU5Y

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How to apply CSR in SMEs - social (people)

small cleaning company from Lyon paying for its employees to learn to read and write

higher productivity levels and greater client satisfaction because its employees are more motivated and enjoy more self-respect

IMSD / CSR in SMEs

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> Working conditions: QOL (quality of life)

> Work-life balance

> Health and Safety

> Labor practices

> Skill development

> Community involvement

How to apply CSR in SMEs - social (people)

small cleaning company from Lyon paying for its employees to learn to read and write

higher productivity levels and greater client satisfaction because its employees are more motivated and enjoy more self-respect

IMSD / CSR in SMEs

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How to apply CSR in SMEs - environmental (planet)

a group of Maltese hotels that are built to minimise their impact on the island's environment and its natural resources.

helping to safeguard the very future of the tourism industry on which it depends.

IMSD / CSR in SMEs

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> Waste reduction

> Pollution avoidance

> Recycling

> Reducing materials, energy, water

> Lower packaging costs

> Certification

How to apply CSR in SMEs - environmental (planet)

a group of Maltese hotels that are built to minimise their impact on the island's environment and its natural resources.

helping to safeguard the very future of the tourism industry on which it depends.

IMSD / CSR in SMEs

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How to apply CSR in SMEs - economic (profit)

small video production company from rural Wales that makes a point of recording and creating videos for its local community

helping to regenerate the social and economic fabric of an isolated rural area

IMSD / CSR in SMEs

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> Responsible supply chain management

> Product safety

> Ethical advertising

> Cause-related marketing

> Quality

> Fair pricing

How to apply CSR in SMEs - economic (profit)

small video production company from rural Wales that makes a point of recording and creating videos for its local community

helping to regenerate the social and economic fabric of an isolated rural area

IMSD / CSR in SMEs

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IMSD / CSR in SMEs

How to identify areas of action

Stakeholder’s Interest

Com

pany

’s In

fluen

ce

particularly relevant to SMEs limited

capabilities

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Add 3rd element: relevanceto company’s area of competence.

IMSD / CSR in SMEs

Stakeholder’s Interest

Com

pany

’s In

fluen

ce

e.g. High Tech company offering courses to stakeholderse.g. Food production company offering sustainable packaging

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What kind of leadership is required for successful CSR in SMEs ?

IMSD / CSR in SMEs

www.eoi.es

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Who is the world leader of all times that inspires you most?

IMSD / CSR in SMEs

www.eoi.es

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Everyone’s favourite leader / leadershipIMSD / CSR in SMEs

www.eoi.es

Ghandi

Madre Teresa di Calcutta

Martin Luther King jr.

Nelson Mandela

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Everyone’s favourite leader / leadershipIMSD / CSR in SMEs

www.eoi.es

Ghandi

Madre Teresa di Calcutta

Martin Luther King jr.

Nelson Mandela

“Religion is one of the most important forces in the world. Whether you are a Christian, a Muslim, a Buddhist,

a Jew, or a Hindu, religion is a great force, and it can help one have command of one's own morality, one's own

behavior, and one's own attitude.”

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Everyone’s favourite leader / leadershipIMSD / CSR in SMEs

www.eoi.es

Ghandi

Madre Teresa di Calcutta

Martin Luther King jr.

Nelson Mandela

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Everyone’s favourite leader / leadershipIMSD / CSR in SMEs

www.eoi.es

Ghandi

Madre Teresa di Calcutta

Martin Luther King jr.

Nelson Mandela

What are the characteristics of a

Values Based Leader ?

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CSR in SMEs:It all boils down

Common Shared Purpose

Leaders who can implement values

A structure and reporting (next lesson)

vision

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CSR in SMEs: It all boils down implementing a vision

We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.

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CSR in SMEs: It all boils down implementing a vision

We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.

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CSR in SMEs: It all boils down implementing a vision

We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.

What did Martin Luther King say?

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CSR in SMEs: It all boils down implementing a vision

We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.

What did Martin Luther King say?

I have a nightmare?

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We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.

I HAVE A PLAN

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We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.

I HAVE A PLAN

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We therefore need a vision of the future, not only of the future we want to avoid but the future we want to create.

I HAVE A PLAN