Lecture on csr ISO 26000 ecosysmis
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Lecture on CSR : why does it appear now, what it entails for companies. Based on the ISO 26000
Transcript of Lecture on csr ISO 26000 ecosysmis
- 1. Lecture onCorporate SocialResponsibilityXavier Amoros Ecosysmis [email protected]
2. Business Ethics Environmentalism Corporate CitizenshipSocietal ResponsbilityCorporate Social Responsibility Sustainable Development Environmental Sustainabilityfootprint reduction Corporate Shared [email protected] 3. CSR is now ubiquitous and self-evident Leading institutions (UN, EU) summoncorporations to engage on CSR Laws require CSR reporting in some countries Most big corporations issue CSR reports anddisplay a CSR policy The International Standard Organisation(ISO) has worked out the standard ISO 26000dedicated to CSR CSR is taught in most universities, [email protected] 4. Corporate Social Responsibilitydefinition by ISO 26000 Thecorporate social responsibility goal is to contribute to sustainable development Performance of an organization vis--vis the society in which it operates and vis--vis its impact on the environment has become a critical component of measuring its overall performance and its ability to continue to operate effectivelyTitre de la prsentation - Date 5. Corporate Social Responsibilitydefinition by ISO 26000 This reflects the growing recognition of the need to ensure the balance of ecosystems, social equity and good organizational governance Organizations are subject to the terms of their various stakeholders ISO 26 000, issued in in 2010 Titre de la prsentation - Date 6. Syllabus Lecture #1 CSR : Why NOW and where it comes from Critics and beyond the critics Lecture #2 Responsibilities towards whom and about what CSR principles Lecture #3 The 7 areas of responsibilities Lecture #4 Reporting on CSR Evaluation by third [email protected] 7. Chapter 1WHY CSR NOW [email protected] 7 8. Corporations have existed for long The alleged world oldest commercial corporationthe Stora Kopparberg mining community datesback to 1347 in Sweden Capitalism emerged in Bruges, Venice, Antwerp,Florence from the 14th century onward In the US, a corporation was first defined in 1819 The first two Industrial Revolutions saw thesurge of ever bigger corporations as a leadingform of organization [email protected] 9. Capitalism is based upon the Invisiblehand philosophy Capitalism let the markets be determined bythe forces of demand and supply These forces determine What should beproduced? It should be produced for whoever can afford themarket price It creates an incentive to produce thosegoods which can create greater profits The goal of Capitalistic society has been toMAXIMIZE WEALTH for the welfare of all [email protected] 10. The purpose of a company is to createwealth and profit Every business tries to make profits for itselfand its shareholders Milton Friedman famously argued that theSOLE purpose of a business is to generateprofits for its shareholders The State has to issue the legal body interms of social and environmentalconstraints for the private [email protected] 11. The interests of Society are protected byStates and Laws Laws and regulations are expected to definethe constraints within which corporations canoperate The legal body have progressively evolved toprotect workers, all kind of stakeholders aswell as [email protected] 12. Indeed, the legal body on Environmenthas thrived in the past decades Multilateral treaties or internationalconventions National environmental and social laws Soft laws [email protected] 13. Some landmark multilateral treaties amidthe 300 passed in the recent decadesInternational Convention for the Protection of Plants (1951)Union for the Protection of New Varieties of Plants (1961)Ramsar Convention (1971) on WetlandsLondon Convention on the Prevention of Marine Pollution by Dumping of waste (1972)Convention on International Trade in Endangered Species of Flora and Fauna (1973)Bern Convention on the Conservation of European Wildlife and Natural Habitats (1979)United Nations Convention on the Lawof the Sea (1982)Convention on Biological Diversity (1992)Convention UN Framework on Climate Change (1992): A framework for the Kyoto ProtocolUN Convention on the fight against desertification (1994)Aarhus Convention or Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (1998)Stockholm Convention on PersistentOrganic Pollutants (2001)[email protected] 14. All nations have adopted environmentallaws at an accelerating rate In France: 6 laws passed before 1960 6 laws in the 60s 12 laws in the 70s 12 laws in the 80s 12 laws in the 90s 15 laws in the 00s Environmental Code in France since 2000 Environmental Protection Law of the PeoplesRepublic of China adopted on December 26, 1989 [email protected] 15. Non-binding soft laws develop as well Norms on the Environment ISO 14000: Management of Environment ISO 50000: Management of Energy Norms on social issues OHSAS 18000 SA 8000 Norms on Social Responsibility United Nations Global Compact (1999) OECD guidelines for multinational enterprises International organizations: FIDH, OIT, ISO [email protected] 16. Corporations made Society richer andhealthier Corporations helped create middle classes andstripped rural population out of poverty Corporations invested in innovation, productivityand generally emancipated the people Population growth since 1800 reflects the benefitsof wealth creationwhile life expectancy isnearing 80 years in developed countries US GDP grew tenfold in the last 50 years to reach$15.29 trillion (2011 est.) [email protected] 17. GDP has grown over tenfold in 60 years [email protected] 18. Population and life expectancy [email protected] 18 19. Corporations are central in our lives Corporations have become a majorinstitution in our society Big companies, the media and advertisingsurround us in our daily lives More than products or services, they sell us a wayof life A increasing part of our social interactionshappen through a commercial transaction We depend on them economically Most products are output by big companies The workforce is mainly salaried by companies (88%of the French in 2011, Insee)[email protected] 20. Though, do all those accomplishmentsbring satisfactory results ? If the states, the justice, the corporations, theunions play their role fairly What happened in the meantime? Why, is it not sufficient NOW to ensure agood balance between interests of societyand communities and those of [email protected] 21. Results are NOT satisfactory 60% of ecosystem services are in decline at the global, regional and local levels Inequalities get stronger in the world and 800 millions are malnourished Our economic system proves all the more vulnerable since the systemic crisis [email protected] 22. Results are NOT satisfactory Scores of scandals have repeatedly damaged the reputation of the business community Confidence from Society in the soundness of the corporate values has been severely [email protected] 23. Nature serves the human well-beingEcosystem Services Basic material Securityfor good lifeRegulating Provisioning Well beingcompontentsCultureSupportGood socialHealth relations Freedom of choice andaction201223 24. Components of human well-beingSecurityBasic material for good lifePersonal Security Adequate livelihoodsSafe access to resources Sufficient nutritious foodProtection against natural Shelter disastersAccess to goods Components of human well-beingGood social relationsHealthSocial cohesionStrengthMutual respect Feeling wellAbility to help others Access to pure air and waterFreedom of choice and actionPossibility to act and live according to ones own [email protected] 25. Nature provides services to the human well-being Air quality ClimateWater regulationErosion EcosystemWater purification and waste Services treatmentPest regulation Regulating ProvisioningPollination Natural hazards Culture Support2012 25 26. Nature provides services to the human well-beingFood: crops, livestock, capturefisheries, aquaculture, wild foodsFiber: Timber, cotton, hemp, silk, woodfuelEcosystem Genetic resources Services Biochemicals, natural medicines,pharmaceuticsRegulating Provisioning Fresh waterCulture Support2012 26 27. Nature provides services to the human well-being EcosystemServices Regulating ProvisioningSpiritual and religiousPrimary productionvalues CultureSupportSoil formationAesthetics valuesRecreation and ecotourism 201227 28. Nature provides services to the human well-being EcosystemServices Basic materialSecurityfor good life Regulating Provisioning60% of ecosystem services are in declineWell being compontentsat the global, regional and local levels Culture SupportGood socialHealth relationsFreedom of choice and action Photo credit: Yann Artus-Bertrand28 29. The decline is significantly caused bycorporate activities Corporate activities AilingDemography EcosystemServicesConsumptionpatternsDeclining human well- being [email protected] 30 30. [email protected] 31. Damaged reputation and confidence Financial deceit Destroying the ecosystems Overlooking the ethics of its customers Overexploiting workers Neglecting health concerns Manipulating vulnerable populations Being a party to criminal [email protected] 32. Accountancy fraud Financial deceit Accounting scandals arise with the disclosure ofmisdeeds by trusted executives Such misdeeds typically involve complex methodsfor misusing or misdirecting funds, overstatingrevenues, understating expenses, overstating thevalue of corporate assets or underreporting theexistence of liabilities Scandals are often only the tip of the iceberg Much abuse can be completely legal or quasi legal [email protected] 33. Accountancy fraud Financial deceitThe Enron scandal, in 2001, its bankruptcy,and the dissolution of Arthur Andersen wascaused by the use of accounting loopholesto hide billions in debt from failed dealsIn July, 2002, WorldCom filed for bankruptcyprotection, after accountancy fraudThe multinational Italian dairy and foodcorporationcollapsed in 2003 with a 14billion hole in its accounts (Europes biggestbankruptcy)And over 40 other major scandals since 2000 that showcased thefailing ethics of top executives and middle [email protected] 34. Destruction of ecosystems: Sea lifeDestruction of sea life According to the FAO,75% of the species areendangered The whole foodindustry is involved inthe sea lifedestruction, fromfisheries and thetransformationcompanies down tothe giant [email protected] 35 35. Destruction of ecosystems: Rain forestsDestruction of rainforestsU.S. agribusiness giant Cargill plays aleading role in the global palm oilmarket [email protected] 36. Corporations have thrived onunsustainable use of resources Forcedobsolescence No or low recyclingof materials Use of non-renewableresources Careless disposalof waste [email protected] 37. Exploitation of workers, direct or through suppliersShrugging off bad behavior by [email protected] 38 38. Exploitation by / through suppliers An audit of working conditions at Chinas Foxconn plant by the US Fair Labor Association revealed: Working up to 70 hours a week wayover the 49 hour legal limit in China Often working 11 days straight without aday off the IPhone factory workers are sufferingfrom poor health and safety practices [email protected] 39. Neglect or lying about products sideeffectsMelamine-laced [email protected] 40. Overlooking the morality of itscustomers - Compliciting with [email protected] 41 41. [email protected] 42 42. Just a bunch of bad apples orthe fruits of an imperfect tree ? The primacy of the profit maximization objective opened thedoor to the overlooking of other fundamental principles Respect of the Law can be reduced to a calculation of the costof being caught vs. the cost of compliance The labor cost can be reduced notwithstanding while thedecency of the working conditions The resources costs with disregard of the Nature depletion Products can be marketed regardless their use and impacts Poor and vulnerable customers can be left for their lack ofpurchasing power Amorality leads to Immorality [email protected] 43. Civil society keeps a permanent globalvigilance on corporate actionsSource: LaSer survey 2010Confidence from Society in thecorporate values has been [email protected] 44 44. Legal constraints lag behindResponsibility corporate behaviorNegativeNegativeCauses of theSolutions are featured Law enactedimpacts impacts negative impacts Project of law to banProblem solvedoccur observedare foundthe source of the impactProducts or Facts are Facts are AlternativeLawprocess are kept secret deniedsolutions is application isnot enoughwith no Scientificdebunked for put offtestedcorrectionevidence is prohibitivechallengedcostsWith Responsibility Facts are investigated withprinciples, the impacts external stakeholdersmight never happenResults lead to swift correctionsof the negative [email protected] 45. Legal constraints lag behindresponsible corporate behaviorNegativeNegative impactsSolutions are featured Law enactedimpactsobserved Project of law to ban theProblem solvedstart tosource of the impact20 000 casualtiesoccurCauses of the impacts are found1957 1960Dec., 1961Products or Facts are Facts areAlternative Lawprocess arekept secret or deniedsolutions is application isnot enough downplayed Scientific debunked for put offtested with noevidence is prohibitive correction [email protected] 46. Legal constraints lag behindresponsible corporate behaviorNegativeNegativeCauses of the negative impacts Law enactedimpactsimpactsare highlighted Problem solvedstart to observed Solutions are featuredoccur Project of law to ban the source of theimpactBefore 1991 1991Not yet1991Products or Facts are Facts and scientificLawprocess arekept secret or evidence is challenged application isnot enough downplayedput offtested with no Alternative solutions are correctiondebunked for prohibitive [email protected] 48 47. Great steps in the economic history 90s80s Globalisation of freeDeregulation market and capitalist corporations 40s 1917 Extension of planned economyPlanned economy China Welfare state in the West in USSR18th century19th C.1st Industrial Revolution2nd Industrial [email protected] 49 48. Tragic events and popular writings showcase the primacy of NatureSeveso BhopalNuclear / oil1976 1985exploitation disastersThalidomid196119991972 1962 Limits to growth, Alterglobalisation movementDDTSilent Spring, Club of Romepesticid R. CarsonThe Grapes of Wrath, Dust Bowl Extension of Communism 1939 Welfare stateLandCommunism in USSRoveruse1st Industrial 2nd Industrial RevolutionRevolutionThe life in the woods,D. [email protected] 49. Thinking of corporate role evolves towards CSR theory and commitmentUN Global UN Johannesburg 90s Compact Summit 80sGlobalisation ofCSR Deregulationcapitalist corporations ISO1984 Alterglobalisation26000Howard R. Bowen,Stakeholders theory CSRmovement1st formulation of CSRE. Freeman Europe40sExtension of Communism1917Welfare state in the West Communism in USSR Rerum Novarum, Pope Leon 1318th century19th1st Industrial Revolution2nd [email protected] 50. To know more about the genealogy ofCSR Charles Rubin,and his landmark bookThe Green Crusade [email protected] 51. CSR is a meeting point for the consensusof several groups of interestsPressure by inner stakeholders:Shareholders, staffEfforts fromcorporations to show a CSR on the Pressure by the publiccitizen behaviorcorporate opinion, rising clout ofAvoid hard regulations agenda NGOs, media, customers,Balance b/w short andinstitutionslong termsLegal constraints End the Washington consensus Vacuum left by the end of planned economy As it goes, CSR is shifting from a voluntary approach to asocietal condition of acceptability, eg. an [email protected] 52. Criticism based on economic ground Businessmen are merely agents of the shareholders There is one and only one social responsibility ofbusiness: to use its resources in activities designedto increase its profits so long as it engages in openand free competition without deception and fraud Adoption of CSR reduces competition and economicfreedom and undermine the market economy. It willtend to make people in general worse off Milton Friedman, American economist (1912-2006) was a leading opponent to the concept of social [email protected] 53. Business ethics is limited For a business to be ethical, it must act inaccordance with two fundamental principles:ordinary decency and distributive justice Ordinary decency includes honesty and fairness andexcludes lying, cheating, stealing, killing, coercion,physical violence and most illegality Distributive justice requires that rewardsshould be in proportion to the contributionmade to the business Using business resources fornon-business purposes is theft [email protected] 54. CSR would result from illegitimateNGOs pressure Unelected NGOs shape public opinion, in particularthe way they actively promote an agenda whichcombines a mixture of green and anti-business,anti-capitalist or anti-globalist thought Environmentalism in the US is heir to the antislaveryand temperance movements and thus a part of theongoing saga of evangelical reform that hascharacterized American [email protected] 55. Critics to CSR based on philosophicalargument Anglo-Saxon individualism holds that Only peoplecan have responsibilities... Business as a wholecannot be said to have responsibilities [email protected] 56. CSR: a platform for green-washing Through CSR,companies wouldpretend to change, inorder to run as usual,moved by anenlightened [email protected] 57. CSR: a PR matter R. Reich, former secretary of labour under B. Clinton, is very vocal about the fate of CSR Change in the laws would bring results more than voluntary efforts [email protected] 58. Critics of the critics The responsibility limited to the individuals is not generallyaccepted Much of Continental Europe is based upon a communitarian ethics In Asia, the idea that individuals can have ethical rights and duties in their own right, rather than responsibilities to society, can be regarded as incoherent and abhorrent Talk about the primacy of profits is a nonsensically one-sidedassumption of responsibility to the understanding ofstockholder personality as "homo economicus" The economic rationality eclipses the larger picture and all theother purposes that business is designed and managers arehired to [email protected] 59. TUTORIAL1ST [email protected] 62 60. Tutorial #1 - Content Explanation of the objectives of the Tutorials Each tutorial will be divided in 2 parts: Presentation of works made since the last tutorial Work on new topics, that will be applied in the coming homework Tutorials will enable to develop the followingcapabilities: Your understanding of the CSR stakes in a given context Your ability to reflect on the statements of a company and to have your own vision of its strengths and its room for improvement Your ability to draft a roadmap based on a maturity evaluation of a given company [email protected] 61. In the next tutorials Tutorial #2: Draw a stakeholders mapping, thesphere of influence and ones commitments Tutorial #3: Recognise the core responsibilities Tutorial #4: Evaluate the maturity of a company Tutorial #5: Reporting Tutorial #6: Roll out a [email protected] 62. Tutorial #1 - Homework to come Choose a company on which you will work andprepare to explain why you think it is of interest Companies of interest for CSR can be: Banks: BNPParibas, Crdit Coopratif, Raw materials: Chinalco, IT goods: Huawei, Apple, Foxconn, Clothing: Nike, Patagonia Prepare a synthesis of the CSR policy of thecompany: See following page This first homework is an individual one [email protected] 63. Presentation of the company Choose a company and explain why youchoose it ; For example: I made an internship there / I worked there It has a strong impact on the environment, on the population in the place where I lived Else: Define the main features of the company Activities Countries where it operates Main figures: Staff number, turnover To answer all the questions, you are advised to read through theyearly CSR report of the company (see the corporate website) [email protected] 64. Self-assessment expressNQuestions Yes / No1.Has my company established goals and means to respect the environment?2.Has my company a policy including HR policies and procedures relating to equal opportunities,integration of the handicapped and to other forms of non-discrimination ?3.Is there a charter or a code of ethics in my business ?4.Do the company integrate CSR criteria in choosing suppliers and service providers?5.My company have established a dashboard on global CSR?6.Does my company realize systematically a survey on the environmental impacts for the designof new products ?7.My company have joined the Global Compact initiative or other comparable?8.Does my company communicate regularly on the results of CSR?9.Has my company requested a certification or an external audit report on the overall approach toCSR?10. Has my company obtained certification (SA8000, OHSAS, ISO 14001 ...) for its managementsystems of its CSR? 67 65. What does the company say about itsCSR commitments On which topics does the company lay its priorities in terms ofCSR ? How do their CSR priorities overlap with their core activities ? Does the company have a vision of where it wants to be in thefuture ? If yes, elaborate this vision Does the company have a clear statement on who are itsstakeholders and what are its commitments towards them How is this company perceived by external stakeholders? Does it have an outstanding reputation in terms of CSR ? Has the company been target of smear campaign on any subject in the past ? [email protected] 66. Chapter 2CSR [email protected] 69 67. Recognizing social responsibilityIn addressing its social responsibility anorganization should understand three relationships:1. Between the organizationand society;2. Between the organizationand its stakeholders; and3. Between the stakeholdersand society [email protected] 68. The SR deeply commits the company to the relationship of with its stakeholders7 core SR questions Society and the environnementCorporation Community Human involvementrights PracticesPrinciplescontributing toConsumerLabourDialogue Sustainability issuespracticesFair operatingEnvironment Stakeholders practicesEcosysmis [email protected] 69. CSR principles (ISO 26000)Transparency Respect for Ethical behaviourhuman rights Respect forRespect forinternationalstakeholdersnorms of behaviorinterestsRespect for therule of law [email protected] 72 70. Transparency principle An organization should be transparent in itsdecisions and activities that impact onsociety and the environment An organization should disclose in a clear,accurate and complete manner, and to areasonable and sufficient degree, the policies,decisions and activities for which it isresponsible, including their known and likelyimpacts on society and the environment 71. Transparency principle This information should be readily available, directlyaccessible and understandable to those who havebeen, or may be, affected in significant ways by theorganization It should be timely and factual and be presented in aclear and objective manner so as to enablestakeholders to accurately assess the impact thatthe organizations decisions and activities have ontheir respective interests 72. An organization should be transparentregarding (1/2) the purpose, nature and location of its activities; the identity of any controlling interest in the activityof the organization; the manner in which its decisions are made,implemented and reviewed, including the definitionof the roles, responsibilities, accountabilities andauthorities across the different functions in theorganization; standards and criteria against which the organizationevaluates its own performance relating to socialresponsibility;[email protected] 73. An organization should be transparentregarding (2/2) its performance on relevant and significant issues ofsocial responsibility; the sources, amounts and application of its funds; the known and likely impacts of its decisions andactivities on its stakeholders, society, the economyand the environment; and its stakeholders and the criteria and proceduresused to identify, select and engage [email protected] 74. The principle of ethical behaviour an organization should behave ethically. Anorganizations behaviour should be based onthe values of honesty, equity and integrity These values imply a concern for people, animals and the environment, and a commitment to address the impact ofits activities and decisions on [email protected] 75. An organization should actively promoteethical behaviour by (1/3) identifying and stating its core values and principles; developing and using governance structures thathelp to promote ethical behaviour within theorganization, in its decision making and in itsinteractions with others; identifying, adopting and applying standards ofethical behaviour appropriate to its purpose andactivities and consistent with the principles outlinedin this International Standard; encouraging and promoting the observance of itsstandards of ethical behaviour; [email protected] 76. An organization should actively promoteethical behaviour by (2/3) defining and communicating the standards of ethicalbehaviour expected from its governance structure,personnel, suppliers, contractors and, whenappropriate, owners and managers; preventing or resolving conflicts of interest throughoutthe organization that could otherwise lead to unethicalbehaviour establishing and maintaining oversight mechanismsand controls to monitor, support and enforce ethicalbehaviour;[email protected] 77. An organization should actively promoteethical behaviour by (3/3) establishing and maintaining mechanisms to facilitate thereporting of unethical behaviour without fear of reprisal; recognizing and addressing situations where local lawsand regulations either do not exist or conflict with ethicalbehaviour; adopting and applying internationally recognizedstandards of ethical behaviour when conducting researchwith human subjects; and respecting the welfare of animals, when affecting theirlives and existence, including by providing decentconditions for keeping, breeding, producing, transportingand using [email protected] 78. Principle of respect for stakeholderinterests An organization should respect, consider andrespond to the interests of ALL its stakeholders. Although an organizations objectives may be limitedto the interests of its owners, members, customersor constituents, other individuals or groups may alsohave rights, claims or specific interests that shouldbe taken into account Collectively, these individuals or groups comprisethe organizations [email protected] 79. Principle of respect for stakeholderinterests An organization should: identify its stakeholders; recognize and have due regard for the interests aswell as the legal rights of its stakeholders andrespond to their expressed concerns; recognize that some stakeholders can significantlyaffect the activities of the organization; assess and take into account the relative ability ofstakeholders to contact, engage with and influencethe organization;[email protected] 80. Principle of respect for stakeholderinterests An organization should (followed): take into account the relation of its stakeholdersinterests to the broader expectations of societyand to sustainable development, as well as thenature of the stakeholders relationship with theorganization; and consider the views of stakeholders whoseinterests are likely to be affected by a decision oractivity even if they have no formal role in thegovernance of the organization or are unaware ofthese [email protected] 81. Principle of respect for the rule of law (1/3) An organization should accept that respect for therule of law is mandatory The rule of law refers to the supremacy of law and, inparticular, to the idea that no individual ororganization stands above the law and thatgovernment is also subject to the law. The rule of law contrasts with the arbitrary exerciseof power. It is generally implicit in the rule of law thatlaws and regulations are written, publicly disclosedand fairly enforced according to [email protected] 82. Principle of respect for the rule of law(2/3) In the context of SR, respect for the rule of law meansthat an organization complies with all applicable lawsand regulations. This implies that it should take steps to be aware ofapplicable laws and regulations, to inform those withinthe organization of their obligation to observe and toimplement those [email protected] 83. Principle of respect for the rule of law(3/3) An organization should: comply with legal requirements in all jurisdictionsin which the organization operates, even if thoselaws and regulations are not adequately enforced; ensure that its relationships and activities complywith the intended and applicable legal framework; keep itself informed of all legal obligations; and periodically review its compliance with applicablelaws and [email protected] 84. Principle of respect for internationalnorms of behaviour An organization should respect international norms ofbehaviour, while adhering to the principle of respect forthe rule of law It refers to all international norms andespecially Human Rights In situations where the law or its implementation doesnot provide for adequate environmental or socialsafeguards, an organization should strive to respect, asa minimum, international norms of behaviour In countries where the law or its implementationconflicts with international norms of behaviour, anorganization should strive to respect such norms to thegreatest extent possible [email protected] 85. Principle of respect for internationalnorms of behaviour In situations where the law or its implementation is inconflict with international norms of behaviour and wherenot following these norms would have significantconsequences, an organization should, as feasible andappropriate, review the nature of its relationships andactivities within that jurisdiction. An organization should consider legitimate opportunitiesand channels to seek to influence relevant organizationsand authorities to remedy any such conflict. An organization should avoid being COMPLICIT in theactivities of another organization that are not consistentwith international norms of behaviour [email protected] 86. Understanding complicity Complicity has both legal and non-legalmeanings In the legal context, complicity has beendefined in some jurisdictions as being partyto an act or omission having a substantialeffect on the commission of an ILLEGAL actsuch as a crime, while having knowledge of,or intent to contribute to, that illegal act Complicity is associated with the concept ofaiding and abetting an illegal act or omission [email protected] 87. Understanding complicity In the non-legal context, complicity derives frombroad societal expectations of behaviour In this context, an organization may be consideredcomplicit when it assists in the commission ofWRONGFUL acts of others that are inconsistent with,or disrespectful of, international norms of behaviourthat the organization, through exercising duediligence, knew or should have known would lead tosubstantial negative impacts on society, theeconomy or the environment. An organization may also be considered complicitwhere it stays silent about or benefits from suchwrongful [email protected] 88. Principle of respect for human rights An organization should respect human rights andrecognize both their importance and universality An organization should: respect and, where possible, promote the rights set out in the International Bill of Human Rights; respect the universality of these rights, that is, that they are indivisibly applicable in all countries, cultures and situations; in situations where human rights are not protected, take steps to respect human rights and avoid taking advantage of these situations; and in situations where the law or its implementation does not provide for adequate protection of human [email protected] 89. Chapter 3RECOGNISING SOCIALRESPONSIBILITY THE [email protected] 92 90. Chapter 3 - Responsibility towards whomand about what Who are the stakeholders: Definitions and typology Stakeholders mapping The sphere of influence How to relate to the stakeholders Stakeholders panel NGOs Suppliers And others Listen, consult, inform, offer and [email protected] 91. Who are the stakeholders ? Stakeholders are the people and groups whohave an interest in the decisions andactivities of an organisation The narrow definition conventionally includethe economic stakeholders: clients, owners,suppliers But impacts appear to happen on a muchbroader range of [email protected] 92. Purpose of dialogue with stakeholders Discern the interests worn by Stakeholdersto assess their consideration by theorganization based on dialogue Have the point of view of its stakeholders inorder to make decisions being informed ofthe possible consequences of its decisionson stakeholders Exercise the duty of influence Strengthen the acceptability of the company [email protected] 93. Stakeholders dialogue is a starting point for social acceptability StakeholdersResponsible dialogue behaviourWeakCorporate acceptability StrongPersona non-grata Lambda companiesBusiness in the spotlight Failure to obtain license to Right to operate: Positive and fast outcome ofoperateAuthorization / requests to public authorities concession Non-renewal of Financing facilitiesconcession Neutrality of citizens and Civil actions to obstructpublic authorities: Granting of better conditionsthe activity, sabotage Neither favor nor to operate Boycott of customers obstacle Informal benefits: Access to Smear campaign Ability to deploy its information, contacts ... Difficulty in recruiting normal activity Strong appeal of the company Trials (customers, partners, employees, suppliers)96 94. Thinking of corporate role evolves towards CSR theory and commitment UN Global UN Johannesburg90s Compact Summit80sGlobalisation of CSRDeregulationcapitalist corporationsISO 1984 CSR Alterglobalisation 26000Howard R. Bowen, Stakeholders Europe movement1st formulation of CSR theory E. Freeman40sExtension of Communism 1917Welfare state in the WestCommunism in USSR Rerum Novarum, Pope Leon 13 18th century19th 1st Industrial Revolution2nd IndustrialRevolution [email protected] 97 95. Stakeholders management: Key to theCorporate Performance0: What is stakeholders theory300: What are stakeholders (skip until430)505: Stakeholders are people Business ðics fit togetherStakeholders management leads to SocialResposbility per se940: Stakeholders & value creation (!)1105: Value creation opportunities4430: Building Trust47: Who do people trust ? [email protected] 96. Stakeholders mapping Shareholders CompetitorsNGOsMediaValue chainSupply chainPartnersOrganisation Employees, ClientsConsumers Suppliers unions End of life Has an impact on RegulatorsConsumerMutual impactsassociations Strength of the impactsAdministrations Communities 99 97. Value chain / Supply chain A VALUE CHAIN is a representation of thevarious steps that are involved in producinggoods, starting with raw materials andending with the delivered product, with afocus on the economic added value at eachstep A SUPPLY CHAIN is another representationof the various steps from raw materials to thedelivered product, while narrowing its focuson the logistical steps [email protected] 98. Various ways to segment onesstakeholdersSocial sphereInternal stakeholdersPubic sphereMarket stakeholdersEconomic sphereExtensive stakeholdersTrade and scientificsphere Direct stakeholders Strategic stakeholders Indirect stakeholders With a moderate influenceWith low [email protected] 99. Stakeholders mapping Shareholders CompetitorsNGOsMediaValue chainSupply chainPartnersOrganisation Employees, Clients Consumers Suppliers unionsSubsidiaries End of life RegulatorsConsumerInternal stakeholdersassociationsAdministrationsMarket stakeholdersCommunitiesFuture NatureExtensive stakeholdersgenerations102 100. Stakeholders mapping Shareholders CompetitorsNGOsMediaValue chainSupply chainPartnersOrganisation Suppliers Employees,ClientsConsumers unionsSubsidiaries Retailers End of life RegulatorsConsumerSocial sphereassociations Pubic sphereAdministrations Communities Economic sphereFinancialTrade communityorganisationsTrade and scientific sphere103 101. Stakeholders mapping Shareholders CompetitorsNGOsMediaValue chainSupply chainPartnersOrganisation Suppliers Employees,ClientsConsumers unionsSubsidiaries Retailers End of life RegulatorsConsumerDirect stakeholdersassociationsAdministrationsIndirect stakeholdersCommunitiesFinancialTrade communityorganisations104 102. Stakeholders mapping: Defining thesphere of influence Shareholders CompetitorsNGOs Media Sphere ofinfluenceValue chainSupply chain PartnersOrganisation Suppliers Employees,ClientsConsumers unionsEnd of lifeStrategic Regulators Consumerstakeholders Communities associations AdministrationsWith a moderateinfluenceWith low influence 105 103. Identify its sphere of influence to exert itsfull influence What is the sphere of influence of thebusiness? It includes stakeholders that an organizationconsiders capacity to be influenced by itsmessages, actions and decisions Corporate Social Responsibility urges to useits influence wherever it leads others to moreresponsibility Within its sphere of influence, the company MUSTuse its influence, if it can, to encourage themaximum players to implement best SR practicesTitre de la prsentation - Date 104. The high number of stakeholders callsfor tools of dialogue ShareholdersNGOsMedia > 500 000Dozens HundredsValue chain Supply chainPartners OrganisationSuppliers Employees,ClientsConsumersunions> 50 000 100 000 Millions RegulatorsConsumerCommunities associations DozensAdministrationsThousands 107 105. Titre de la prsentation - Date 106. Focus on usual strategic stakeholders Stakeholders panels NGOs Suppliers Local communities Shareholders Administrations Customers - [email protected] 107. Panels of stakeholders With the panels, the company bringstogether a selection of stakeholders todiscuss issues of CSR at a given moment, one or several times per year The issues must be previously identified: aparticular topic (water management, biodiversity)or all of the topics covered in the companys CSRstrategy These forums of viewpoints, even divergent,can help move from a mode of confrontationto a relationship of trust [email protected] 108. Objectives of the panels Collect expectations and critical opinions onthe CSR strategy or report Examine some aspects of the companyspolicies, actions or performance, and Produce one or a series of results,comments, recommendations on which thecompany has committed or may commit Anticipate possible threats that may occur inthe future [email protected] 109. Opportunities for stakeholders in panels Let know their expectations and activities to companiesand in particular to their top management Mode of dialogue that goes beyond the simplecommunication because of the confidentiality clause Can highlight challenges of sustainable development andinfluence the business strategy Facilitates exchanges between stakeholders and createnew forms of collaboration between stakeholders Arouse the interest of management on certain topics andinduce [email protected] 110. Opportunities for companies in panels Brings together the concerns of its stakeholders inone place Confront positions between the different spheres ofinfluence and encourage a greater culture ofdialogue, even internally Defuse conflicts with stakeholders, spot in advancethe reputation risks and reduce controversy Shows that the company wants a sustainable futurewith its stakeholders and broach all issues Free choice of partner for each [email protected] 111. Risks for companies in panels More exposed to potential attacks because itsactivities are subject to constant monitoring anddialogue is by no insurance against NGO campaigns Risk that stakeholders develop a collective voiceagainst the company which would be greater thanthe individual positions Bring together experts can raise new topics Risk of an unmanageable stakeholder Put on the same level all the stakeholders, thoughunequal weight and with lack of issues prioritization [email protected] 112. Stakeholders panel at Lafarge 2 panels bring a critical Members meets 3 times aperspective on Lafarges year to developCSR efforts: recommendations The stakeholders panelconcerning: since 2003 the managements The advisory panel onsustainable development biodiversity, since 2006 approach and the companys They work with the Exec environmental and socialCommittee on performanceperformanceand management with regard the content and qualityto CSRof the [email protected] 113. Lafarges panel consists in stakeholderrepresentatives and experts 9 members are selected for their experience and knowledge inthe following bodies: Professional organisations: European Works Council Building and Wood Workers International Architect NGOs and thought leaders WWF CARE Centre for Human Ecology African Center for Economic Transformation Active shareholder F&C Asset [email protected] 114. Example of a critical panel membercomment A relationship of trust and a long-term mutual understanding are the key milestones to ensure thesustainable development of Lafarge and its communities. Once again, I want to reaffirm this pointin 2011:While Lafarge is keen to assert its determination to improve itsenvironmental, social and economic impacts, it should alsodemonstrate that it is practically achieved, by presenting structured,integrated and efficient local actions plans.The actions presented in previous sustainability reports, as well as in this one, set on an equalfooting well-established initiatives and very new ones, projects having the capacity to bring majorpositive changes and much more anecdotic ones: I wish to find more consistencyand legibility.However, I appreciated reading in this document a transparent reportabout the tensions around the sites of Himachal Pradesh and BandaAceh.Starting today, Lafarge has to ensure that there are enough resources allocatedto the achievement of the 2020 Ambitions: In my point of view, the currentbudgets allocated to local development programs are insufficient and thefrequency of the review of their relevance is too low. (). [email protected] 115. Focus on usual strategic stakeholders Stakeholders panels NGOs Suppliers Local communities Shareholders Administrations Customers - [email protected] 116. NGOs are a central piece in the societaljigsaw Their number has soared fro 20 000 to over50 000 from 1985 to now They have developed their professionalismand have extended worldwide networks Their scope of competences and involvementhas expanded NGOs have become relevant partners forbusinesses facing the social, environmentaland brand [email protected] 117. Engagement with NGOs NGOs have developed common plate-forms fordialogue with businesses to find out creativeanswers to sustainability challenges True strategic partnerships come out with commonroadmaps to achieve shared goals These partnerships fit into the core missions of bothbusinesses and NGOs They entail long-term exchanges of expertises and [email protected] 118. Opportunities for companies Take advantage of the specific skills and resourcesof the NGO and innovate Open itself to civil society Get involved in the civil society thanks to the NGO Demonstrate its willingness to engage in socially responsible practices Improve its image in the business and outside Improve internal management on CSR issues Train and sensitize stakeholders on CSR business Avoid or get out of crisis All CSR issues are potentally covered by NGOs [email protected] 119. Risks for companies Further exposure to potential attacks because itsactivities are subject to constant monitoring, apartnership is in no case an insurance against NGOcampaigns Being a victim of information leaks Wasting time and money if the partnership does [email protected] 120. Opportunities for NGOs Diversify its sources of funding Take advantage of specific business skills and innovate Better understand how businesses work Encourage the company to improve its practices on CSRissues Be associated with the definition of the business strategyand monitoring Gain greater visibility Increase its credibility by seeking to establish a realdiscussion rather than having a hostile [email protected] 121. Risks for NGOs Jeopardize its reputation if the company is not up to theexpectations set beforehand Compromising its principles, its initial mission on behalfof the partnership and lose its independence Be used by an unscrupulous company to destabilize oneof its competitors Create disagreements of opinion within the NGO Wasting time and money if the partnership does notresult Risk to substitute for consultants or staff representativeson certain subjects [email protected] 122. Selection criterions for the company Key competencies: expertise of the NGOcorresponding to the selection of topics The strategy of NGOs vis--vis companies(open or not dialogue or partnerships) The geographic scope of the NGO as theneed is local or global The legitimacy and credibility of the NGO [email protected] 123. Key Trends in the NGOs activism Networks of NGOs intended to gain greater efficiency Steady coalitions: Coordination SUD, ONG-GNO Ad hoc coalitions around events: CCFD and Greenpeace against soybeans in the Amazon Becoming a shareholder to influence the decisions of thecompany Share the power campaign of Amnesty Intl. Lobbyism to change the rules of the game Integrate the political agenda as with the REACH regulation Judicial activism Growing clout of consumer organizations (UFC Que Choisir in France) [email protected] 124. Selection criterions for the NGOs Accepted guidelines Mutual respect Transparency, potentially with independentchecking Right to criticize Exclusion CARE excludes the arms industry Specific strategies WWF takes only the leader in a sector and aims attrigger a breakthrough in the overall [email protected] 125. NGOs strategic partnership [email protected] 126. Steps to succeed in partnership Identify thestakes and self-assess Evaluate thepartnershipDialogueand its franklyresultsImplementChose thethe ideal partnerpartnership Define the Engage vis--content of thevis the partner partnershipcontractually [email protected] 127. Focus on strategic stakeholders Stakeholders panels NGOs Suppliers Local communities Shareholders Administrations Customers - [email protected] 128. The purchasing function has gained astrategic importance within companies This importance is due to: General implementation of outsourcing, subcontracting and offshoring policies Optimization of the total cost of ownership (TCO) Positive impact on innovation Risks mitigation: supply security 60% of the turnover of companies in the EU comesfrom purchase Public procurement makes up 17% of the EU GDP Purchasing function has attracted the attention ofstakeholders [email protected] 129. Purchasing is under scrutiny of SocialResponsibility Globalisation has grown concerns on socialand environmental impacts as well as onmoney laundering and tax evasion Global media exposure has increased thereputation risks Suppliers involvement is two-fold: Focus on the products, in order to pick the eco-the people- friendliest Focus on the supplier itself in order to committhem to a community of values and to continuousimprovement [email protected] 130. Opportunities for companies to committheir supply chain to CSR Improving the quality and overall performance Greater transparency in the supply chain: bettermonitoring of social risks, environmental, health,human rights, reputation Anticipation normative and regulatory Enrichment collaboration, co-design and innovation Enhancing the attractiveness (internal and external) Reduction in cost of ownership and value creation Improved extra-financial rating [email protected] 131. Risks for companies to commit theirsupply chain to CSR Increased exposure on an area difficult tocontrol Sometimes limited ability to influence [email protected] 132. Opportunities for suppliers Improving the quality and overall performance Customer loyalty in a long-term relationship andtrust Highlighting new competitive advantages CSR Anticipation normative and regulatory Enhancing the attractiveness Improved extra-financial [email protected] 133. Risks for suppliers Presence of contradictory injunctions (pressure onprices and times and new CSR demands) Human, logistical and financial resources andinadequate (SMEs) Heavy investments accompanied by a financial risk iflack of visibility on the medium term clients strategyor short duration of contract Risk of dependence vis--vis the purchaser if the CAis configured with one majority [email protected] 134. Dialogue with suppliers must fit thefeatures of companies Given the diversity of situations, there is nosingle strategy regarding CSR engagementbetween companies and their suppliers orsubcontractors, it is up to each company todevelop its own approach It reachs from awareness to qualityenhancement [email protected] 135. Risks for the suppliers Now, Do you strictly comply Tell mewith our social standards?CSR [email protected] 138 136. Raising awareness of suppliers This approach minima is mainly retained in the sectors wherepurchases have little social and environmental risks by firms that initiate a responsible purchasing policy, or segments families purchase or providers considered low risk The objective is to minimize the risks (especially image)adopting an attitude of caution The process is unilateral, insurance-little binding and non-coercive to the supplier It is essentially based on self-assessment and best practices.There is little or no [email protected] 137. Programmes of quality improvement andmitigation of social risks Originally developed in the industrial sectors with environmental/social risks (textile, apparel and retail), those programmes now tend togeneralize across highly decentralized international groups and / orusing suppliers located in developing countries It leads to the realization of preliminary mapping criteria (products /markets / countries) The process is gradual and specific tools are broken down by area Sustainability tends to become a new criterion for the evaluation ofsuppliers as well as aspects of quality / cost / time The obligations of suppliers are strengthened Depending on the maturity level of the company responsiblepurchasing, the approach is more or less collaborative [email protected] 138. Standards pertaining to CSR matters inrelation with suppliers Standard SA 8000 The Company will establish and maintain appropriate procedures to evaluate and select suppliers based on their ability to meet the requirements The company will maintain a proper record of supplier engagement social responsibility The company shall maintain reasonable evidence that the requirements of the standard are met by suppliers and subcontractors Global Reporting Initiative (GRI) - Three types of indicators: Economic performance: EC6: Practices and proportion of spending with local suppliers. Indicator to inform the development of capacities in local economies Social Performance: LA7: Rates of injury and absenteeism Human Rights: HR2 Others: Global Compact (Global Compact) - ISO 9004 /14001 / 26000 [email protected] 139. Main tools along the purchase processListing ContractingFollow-upDeclaration ofGeneral andMonitoring ofCommitment ofspecific termsprogressthe principal Code of conduct Certification or Compliance audit Code of ethics Charter labellingCommitmentproceduresImprovement planrequest to the and auditsupplierDiagnosis Self-assessment questionnaires [email protected] 142 140. What is a Code of Conduct ? A Code of Business Conduct consists of thepolicies relating to the ethical and legalstandards of conduct to be followed byemployees and agents of the Company in theconduct of its business It tells the methods and tools at disposal toimplement the Code and warns of theconsequences of breaching [email protected] 141. Typical items in a Code of Business Conduct1. COMPLIANCE WITH LAWS AND4. PROTECTION OF THE GROUPS REGULATIONSASSETS Compliance with Competition and Trade Accuracy and protection of informationLawsProtection of Groups assets and Compliance with laws on corruption resources Compliance with Laws on Insider5. FAIRNESS IN FINANCIAL REPORTINGTrading 6. IMPORTANCE OF INTERNAL2. PREVENTING CONFLICTS OFCONTROLS - INTERNAL AUDIT INTERESTInternal Control Payments, gifts and benefitsInternal Audit Political Involvement 7. IMPLEMENTATION OF THE CODE AND3. ATTENTION TO PEOPLE ANDVIOLATIONS ENVIRONMENTImplementation Health and SafetyAlertness Preventing discriminatory actions andharassmentRecommended approach in case of doubt EnvironmentViolations of the Code [email protected] 142. Ecosysmis Responsabilit Socitale, des forces pour durerEvaluer et renforcer sa maturit enResponsabilit Socitale selon lISO 26000 Xavier AMOROS 143. Ecosysmis, Conseil pour lexcellencedans la Responsabilit Socitale La Responsabilit Socitale se pose au cur de lacomptitivit des entreprises, elle est cruciale pourleur prennit Cette Responsabilit est aujourdhui dcrite dansla norme ISO 26000 Ecosysmis accompagne les entreprises pourmatriser leur Responsabilit Socitale et sancrerdans leurs cosystmes Cela peut prendre la forme dvaluation Afaq 26000et de projets de transformation en profondeur Ecosysmis - Xavier Amoros 06 08 55 28 28
