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Thinking About CSR in Practice: thoughts, tools and examples
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Transcript of Thinking About CSR in Practice: thoughts, tools and examples
THINKING ABOUT CSR IN PRACTICE thoughts, tools and examples
Corporate Social Responsibility
STRATEGY AND MANAGEMENT An Executive Education Program
Cape Town, South Africa
May 6th – 10th, 2013
Wayne Dunn
Professor of Practice in CSR
McGill: Institute for the Study of International Development
Friday May 10th 2013
Lecture Overview
• Discuss and try out some practical tools and
approaches (Think Abouts) for assessing and
understanding CSR in the field
• Industry Social License discussion
• Relationship
• Value Sustainability
• Social Value Return on Investment
• Value Proposition
• Partners / ODA
• Value Creation
• Communications
• Metrics
• CSR as a Catalyst
Session Objectives
• To provide tools and insights for
assessing and understanding CSR
projects and initiatives?
• To help participants be able to think
about CSR in a more systematic
manner.
• To introduce the concept of Industry
Social License
CSR in the OLDEN DAYS
Policies &
Good Intentions
Solving Social
Problems
CSR in the OLDEN DAYS (cont)
Community Relations Management
Framework
Plan
?Results?
System
CSR, No Matter How you Slice It
How to think about CSR more Systematically
• Frameworks and systematic approaches to
CSR is still an evolving area, despite a lot of
progress over the last 15 years (But,There
are no experts!)
• We are all learning
• No one size fits all
• CSR programs and activities can be
examined along many dimensions
• 3 examples and then look at some of the
ways to think about them
Cameco in Northern Saskatchewan
10.6 16.7
$22.8 $27.9
$44.5 $44.1
$74.5
$93.3
0
10
20
30
40
50
60
70
80
90
100
1991 1992 1993 1994 1995 1996 1997 1998
Pu
rch
ase
s in
CA
D$
Mil
lio
ns
Year
Cameco Northern/Aboriginal Purchases
1991 - 1998
By 2011
Cameco’s northern
procurement evolved into
a Northern Preferred
Supplier Program that has
purchased over $1 billion
in goods and services
from local vendors and
suppliers in northern
Saskatchewan since
2004. In 2011 - over $390
million to northern
businesses, who provided
74% of all services to its
northern mines Labour contracts can work (or not)
Eldorado Gold in Turkey Doubling of agriculture outputs (crops and
livestock
Huge changes in literacy, school finishing, girl
child education, etc.
Changes in Livestock and Products Uşak Province 2006-2012
0 50000 100000 150000 200000 250000 300000 350000 400000 450000
Cattle (hd)
Milk (t)
Sheep (hd)
Red meat (t)
Poultry meat (t)
2006
2012
CSR is more than just social value http://www.corporateknights.com/article/tech-savvy-pepsico
Some Key Dimensions to Think About
Type of Activity • Grants and Donations
• Community Social & Development
• Training and Education
• Local Institutional Development
• Local Infrastructure
• Employment
• Procurement
• Community Health
• Environment / Natural Capital
• Other
Some Key Dimensions to Think About
Relationship
• Highly Asymmetrical – Donor/Client
• Somewhat Asymmetrical
• Symmetrical
• Will it/should it change over time?
Some Key Dimensions to Think About
Value Proposition • What Value Gets Created – For Who?
• Avoid Zero-Sum situations when possible
Value Sustainability • Does the initial investment continue to provide
value beyond the investment timeframe
Social Value Return on Investment • Not every dollar invested in CSR creates the
same level of social value
Some Key Dimensions to Think About
Partners
• Who/what benefits from success of this initiative?
• What sort of partners would fit with this initiative? (if any)
• What value would they receive? Create? (for project and for company)?
Shareholder Value Creation
• What’s in it for the company?
More Key Dimensions to Think About
Communications
• What about this project should be communicated?
• Why? How/Where? Risks? Rewards?
• What is the CSR equivalent of Greenwashing?
Metrics
• What metrics would you measure/monitor?
• Why?
CSR and Official Development Assistance (ODA)
Millennium Development Goals
The Millennium Development Goals (MDGs) are eight international development goals that were officially established following the Millennium Summit of the United Nations in 2000
All 193 United Nations member states and at least 23 international organizations agreed to achieve these goals by the year 2015
CSR as a Catalyst
• CSR projects can act as a catalyst to
bring key development partners to the
table
• Why do this?
• Increases available resources (financial,
human, organizational, political)
• Increases sustainability
• Reduces risk
• ODA Agencies increasingly interested in
private sector collaboration
CSR as a Catalyst for ODA
OECD has
excellent
data (http://www.oecd.or
g/dac/stats/recipient
charts.htm)
Social License
• Industry Social License
• Corporate Social License
• Project/Site Social License
Industry Social License
• Oil Sands - Canada
• Uranium Mining – Saskatchewan
Think Abouts
Question
With all the work that has happened – Why
does CSR remains such an issue
• Relationship
• Value Sustainability
• Social Value Return on Investment
• Value Proposition
• Partners
• Value Creation
• Communications
• Metrics
• CSR as a Catalyst
• Management Framework
• Social License (Project, Corporate, Industry)
CSR, No Matter How you Slice It
Session Objectives
• To provide tools and insights for
assessing and understanding CSR
projects and initiatives?
• To help participants be able to think
about CSR in a more systematic
manner.
• To introduce the concept of Industry
Social License
In our younger days!
Extra Slides for Handout
The following are extra slides that readers
may find useful. The outline a simple
method that has been used for gathering
and organizing information to help plan
and manage CSR projects/activities
Gathering & Organizing
Information on CSR Activities ABC CSR Program
Description Short description of the program
Objective Stated and/or understood objectives
Type of Activity • Grants and Donations
• Community Social & Development
• Training and Education
• Local Institutional Development
• Local Infrastructure
• Employment
• Procurement
• Community Health
• Other
Responsibility & Management What dept./position is responsible for the
program?
How is it currently managed and how
does the management integrate with
other corporate management systems?
Does the success/failure of this program
affect the manager’s annual evaluation?
How?
Consultation and History What, if any, local involvement was there in
the design and development of the program?
Any other notes on history – when it started,
how it came about, successes, failures,
developments, etc.
Budget Current budget including how it is derived
(i.e. 3% of something). Also any recent or
expected changes to the budget.
Value Proposition What groups, individuals, stakeholders
benefit from this activity, directly and
indirectly? Is there a way to help more to
benefit from it?
Partners Are there any partners that aren’t covered in
the value proposition discussion?
How are partners involved? What are their
roles and responsibilities?
Are they capable of meeting them?
Community Benefits What are the benefits to the community?
Can they be quantified? How?
Company Benefits What are the benefits to the company?
Can they be quantified? How?
Other Beneficiaries Are there other benefits from the program?
Who benefits? How?
Can they be quantified? How?
Success Indicators, Metrics,
Measuring & Monitoring
How is the program measured and
monitored?
Does it connect to management and
corporate objectives?
Is the program’s success linked to the
management evaluation program?
What other, if any, success indicators are
there?
How is the program reported? To who?
Frequency
Other Think Abouts • Value Sustainability
• Social Value Return on Investment
• Communications
• Metrics
• CSR as a Catalyst
For Additional Information
Wayne Dunn
Professor of Practice in Corporate Social Responsibility
McGill University | Institute for the Study of International Development
Desk: +1.250.743.7619