Csr Models

8/11/2019 Csr Models

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Corporate Social Responsibility

CSR Management System


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What is difference ?

and


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Stage 1:CSR

non-

existent

Stage 4:Sustainability

Intrinsic

business

strategy/Activity:

Still CSR ??

Stage 3:

Strategic CSR:

Strategy

complimentingbusiness activity

Stage 2:

CSR non-strategic:

- Philanthropy

- Donations

- Volunteering, etc.

Evolution of CSR:

Ethical/

Philanthropic

Good for BusinessCSR

COMPLIMENT

NOT

CONTRADICT

CSR is a business strategy:

CSRManagement

System

?


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CSR implementation on-going

Continuous adaptation to changing

Driving Forces

Corporations CSR

CSR Drivers:

2. Globalization

1. Social

Expectations

Class 1

Class 1


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Framework for Strategic Integration:

3 + 1=

3 Steps + 1 Continuous Action

Step 1 ???


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Step 1: Analysis

1. CSR Audit Gap Analysis

2. Stakeholder Process (See Class 2)

- Stakeholder Analysis

- Stakeholder Dialogue

3. CSR-SWOT

Step 1: Analysis


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1. CSR Audit

As-is Analysis

Goal:Assess the whole picture

Basis for Gap Analysis

Step 1: Analysis


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ExternalDivers/Motivation

Re-active vs. Pro-activeNike, Gap, BP, Starbucks ??

What about Nestle???

LINK
http://www.youtube.com/watch?v=QV1t-MvnCrAhttp://www.youtube.com/watch?v=QV1t-MvnCrAhttp://www.youtube.com/watch?v=QV1t-MvnCrAhttp://www.youtube.com/watch?v=QV1t-MvnCrA


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ISO for CSR

ISO 26000: Launched November 1st, 2010 !

Guidance standard on social responsibility

1. CSR AuditStep 1: Analysis


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1. CSR Audit:

I I I

Internal Intelligence Investigation:

Step 1: Analysis

Which departments responsible for

CSR issues ?


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1. CSR Audit

CSR Departments

- Communications/PR

- Marketing- Human Resources

- (Senior) Management

Which department typically most reactive

or slow on take-up ?

Step 1: Analysis


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1. CSR Audit

How would you do an Audit

???

Step 1: Analysis


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1. CSR Audit

How?Method:

Internal:1. Desk-top study: Document Analysis

2. Executive, Management & Staff Interviews

External:

3. Reputation surveys, benchmarking, CSR Reports (GRI,

AccountAbility Rating)

Step 1: Analysis
http://www.globalreporting.org/Home


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Step 1: Analysis


2. Stakeholder Process

- Identification of Issues

- Selection of Stakeholder

- Prioritization of Stakeholders


3. CSR-SWOT

Stakeholder

Analysis

Step 1: Analysis

See Class 2!


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- Identification of Issues

- Selection of Stakeholder

- Prioritization of Stakeholders


Stakeholder

Analysis

Step 1: Analysis

Significance:

More adaptiveto External

Drivers (Social Expectations &Globalization)

Corporations CSR

CSR Drivers:

2. Globalization

1. SocialExpectations

Shareholder

Model

drive management1. Separation of responsibilities

between private & public sectors

2. Fiduciary Duty of Management

Board to Shareholders: Profit

Shareholder Model:

Inflexible to change

Stakeholder Model:

Adaptive to change

Class 1

Class 2


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However:

Step 1: Analysis

Ethical/

Philanthropic

Good for BusinessCSR

COMPLIMENT

NOT

CONTRADICT

CSR is a business strategy:

Summary:Stakeholder Process: Good for business and Stakeholders

1. Stakeholder Analysis:

Step 1: Identification of Issues

Step 2: Selection of Stakeholders

Step 3: Prioritization (mapping)

2. Stakeholder Dialogue

Formulation of CSR Strategy

Stakeholder

Process

High Priority:

Manage Closely

Medium Priority:

Keep Satisfied

Medium Priority:

Keep Informed

Low Priority:

Monitor(Minimum effort)

PowerofStakeholder

Interest of Stakeholder(e.g. Automotiveindustry productsafety, climatechange

Tobacco Industry )

Stakeholder Mapping

?

Can Stakeholder Approach

compliment business model?

Or too much focus on

Stakeholders distractionof finding CSR programs that

compliment business

activities ???

Class 1Class 2

Outsourcing

CSR:

Risking

hodgepodge of

un-coordinated

CSR activities

andphilanthropic

activities?

What do youthink?


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Does Kramer & Porter Inside-

Out/Outside-In Model work better ??Step 1: Analysis

Arguments for CSR

Philanthropic: Clich, but basic truth!

Company Society

Relevance in strategic aspect of CSR:

Strategy should focus on compatibility, NOT on friction

Healthy Society needs well

functioning companies!!

(Jobs, taxes, goods & services)

Company needs:

Tangible Benefits:

Infrastructure, police, employees

& customers

Intangible Benefits:

Water, fresh air, facilitating

investment through functioning

government

Source: Strategy and Society, Porter & Kramer

Inside-Out:Impact on Society

Outside-In:

Impact on Competitive Positioning

Class 1


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Step 1: Analysis

Impact of Society on

Company

Impact of Company on

Society

CSR

How does this compares with Stakeholder Model ?


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Step 1: Analysis





3. CSR-SWOT

Step 1: Analysis

And/or

Kramer & Porter:

Inside-Out/Outside-In Model


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Step 1: Analysis





3. CSR-SWOT

Step 1: Analysis

And/or

Kramer & Porter:

Inside-Out/Outside-In Model


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3. SWOT

CSR-SWOT Analysis:

- Putting it all together

- Linkage to next part

Step 1: Analysis


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Step 1: Analysis

Step 2 ???


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2. CSR Strategy

Strategy to complimentbusiness activity

CSR is BusinessStrategy(see EU Definition !)

1st Step??

Step 2: CSR Strategy


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1. Policy formulation

2. CSR Structure

3. Staffing Plan

4. Budget



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1. Policy Formulation

- Priorities

- Core Values

- Formulation of Policy Statement



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2. CSR Structure

3. Staffing Plan

4. Budget



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2. CSR StructureChoose structural framework

- Size- Corporate structure

- Sectors involved

... geographic locations, risk areas, commitment

- New or improved structure?



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What is important for an effective

Structure ?



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Cross-Functional


Why so important in CSR ?


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2. CSR Structure:

CSR iscross-functional:

- Environment

- Government

- Communities

- Employees

- Supply Chain

- Customers- Shareholders

7 Stakeholder

Groups


Stage 3:

Evolution of CSR:


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2003:

Embedding


Stage 1:

CSR

non-existent

Stage 4:

CSR

Intrinsicbusiness

strategy/

activity

??

Stage 3:

Strategic CSR:

Strategy

complimenting

business activity

Stage 2:CSR non-strategic:

- Philanthropy

- Donations

- Volunteering, etc.

Classes2 to 4

CSR Sustainability

?


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Framework for Strategic Integration

Integrating sustainability into companys:

at all levels of the organization

= Embedding

- Values

- Culture

- Operations

- Business decisions



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2. CSR Structure:

Mechanisms for involving functional areas, departments, etc.

Roles and responsibilities of each employee and/or group(committee) involved with CSR efforts

(Board committee, executive committee, specific CSR

committee, etc.)



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Increasing level of CSR commitment

Source: Designing a CSR Structure, BSR


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2. CSR Structure

3. Staffing Plan

4. Budget



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3. Staffing Plan

Identify CSR-specific staff roles and responsibilities at the

different levels.


Daimlers Corporate Governance Structure


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Step 2: CSR StrategyDaimler s Corporate Governance Structure

How would you design Daimlers CSR

Structure?


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DaimlersSustainability

Governance

Structure

(P. 16)

Step 2: CSR

Strategy

1. Key

Stakeholder

Groups

Which ones??

2. Cross-

FunctionalityNotice:

Integration

Core

Business

Activity

S 2 CSR S


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Centralized, de-centralized ?

Top-down, bottom-up ?


DaimlersSustainability

Governance

Structure

(P. 16)

Step 2: CSR

Strategy

1. KeyStakeholder

Groups

Which ones??

2. Cross-


Integration

St 2 CSR St t


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Step 2: CSR Strategy Daimlers EnvironmentalStructure p.19

Life-cycle

Analysis

Bottom-up, Top-down ?

St 2 CSR St t


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Daimlers CSR Structure

Hybrid


Daimler:St 2 CSR St t


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Daimler:

Committed to CSR ?Step 2: CSR Strategy

Daimlers

Sustainability

Governance

Structure

(P. 16)

Step 2: CSR

Strategy

1. Key

Stakeholder

Groups

Which ones??

2. Cross-


Integration

Daimlers CSR StructureSt 2 CSR St t


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a e s CS St uctu eWhere is Daimler (Page 16)?



Step 6: Daimlers CSR Structure

St 2 CSR St t


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Step 6: Daimler s CSR StructureWhere is Daimler(Page 13)?

Board of Management

Sustainability Board



Daimlers CSR StructureSt 2 CSR St t


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Centralized or de-centralized ?Step 2: CSR Strategy

?

Daimlers CSR StructureStep 2: CSR Strategy


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Sustainability Office

p gy



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Mobiles CSR StructureStep 2: CSR Strategy

Step 2: CSR Strategy - Subsidiary of KBC (Belgium, Flemish)


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Step 2: CSR Strategy Subsidiary of KBC (Belgium, Flemish)

- Required CSR in 2005

- Communications Intern tasked



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2006: Allocated budget: New CSR Policy:

1. Professional Business Ethics

2. Employeesand their families3. Attitude to the environment

4. Care for the community(CSR-led sponsorship)

What evolutionary stage of CSRstrategic, non-strategic?


How to manage CSR?


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How to manage CSR?



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2007: CSR Expert Task Force (ETF):1. Head of External Communications

2. Head of Retail Segment Marketing

3. Head of PSB Retail Segment4. Head of Human Resources

5. Head of Legal

6. Head of Public Affairs

7. Head of Marketing Communications (with an advisory vote power)

8. CSR Officer

9. CSR Manager

Main focus area of ETF ?




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2007: CSR Expert Task Force (ETF):

Main focus areas:

- Risk Management & Compliance

- PR, Communications & Marketing


2007: CSR Expert Task Force (ETF)


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2007: CSR Expert Task Force (ETF)

ETF =CSR Manger

+Problem ?

2008: Country Team Sustainability


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y y

Committee (CTSC)

CTSC =CSR Manger

+



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2008: Country Team Sustainability

Committee (CTSC):1. CEOof SOB Pojiovna

2. PSB and Direct Banking Business Senior executive director

3. Corporate banking Senior executive director

4. Corporate Office Director

5. External Communication Director

6. CSR Manager




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CSR Expert Task Force

1. Identifies

risks, proposes

strategies

2. Votes on

general

budget

components(Budget: 0.5% net profit)

Country Team Sustainability Committee (CTSC)

3. Votes on

specific

programs

Implementation by CSR Team

CSR

Manager


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4. Budget

Assess budget structure and size

Typically, CSR Budget in EE Companieswhat percentage of net profit?

More effective if tied with PR Budget!



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Step 1: Analysis

Step 2: Strategy

Step 3 ???


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f S


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3 + 1

=

3 Steps + 1 Continuous Action ?

Continuous: Building Senior Vision & Support


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Building Senior Vision & Support

Especially if

Re-active (or not -active):

- Get clear CSR Mandate- Educate Board, CEO and employees

- Build Board & CEO level support

- Strengthen company-wide support




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Building Senior Vision & Support

its all about (internal) communication!

- Workshops

-Training- Personal Contact

- Etc.

Gradual Process, building on success.

Co t uous u d g Se o s o & Suppo t



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Step 3:

Implementation1. Monitoring &

Reporting



2. CSR Structure

3. Staffing Plan

4. Budget

Step 1: Analysis

1. CSR Audit

2. Stakeholder Process- Stakeholder Analysis

(Identification, Selection and

Prioritization)

- Stakeholder DialogueOR

Kramer & Porter

Inside-Out/Outside-In

Model

3. SWOT


Building Senior Vision and Support

Csr Models

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