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Corporate Social Responsibility:Introduction & Definitions
Suthisak KraisornsuthasineeAssistant Professor
Faculty of Commerce & AccountancyThammasat University
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Introduction: CSR
The Dawn of the CSR EraDrivers of CSRBenefits and ChallengesCSR Definitions and ScopeIssues & Initiatives of CSRFrom Principles to PracticeFuture of CSR: On the Way to ISOOrganizations promoting CSR
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The Dawn of the CSR Era
“85% of (140 Chief Executives of U.S. based MNCs)believe that sustainable development will be even moreimportant to their business model in five years than it istoday.”
Recent Survey adm inistered byPriceW aterhouseCooper
International Institute of Sustainable Development
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The Dawn of the CSR Era
“Overall, respondents see CSR as becoming aneven more important part of business practice fiveyears from now, and will make crucial an necessarycontributions for the betterment of people and theenvironment.”
Business for Social Responsibility and Dutch Ministry of Economic Affairs
Survey adm inistered atThe European Conference on CSR (Maastricht, Novem ber 7-9, 2004) &
The BSR Annual Conference (New York, Novem ber 9-12, 2004)
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Drivers of CSR
The shrinking role of governmentDemands for greater disclosureIncreased customer interestGrowing investor pressureCompetitive labor marketsSuppliers relations
Business and Sustainable Development (BSD Global)
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Benefits of CSR…
Increased sales and market share.Strengthened brand positioning.Enhanced corporate image and clout.Increased ability to attract, motivate, and retainemployees.Decrease operating costs.Increased appeal to investors and financialanalysts.
Kotler and Lee, 2005
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… and Challenges
Choosing a social issues.Selecting an initiative to address the issue.Developing and implementing program plans.Evaluation.
Kotler and Lee, 2005
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What is CSR?
Variety of Terms
Corporate Social Responsibil
Corporate Citizenship
Corporate ResponsibilitySocial Responsibility
Corporate Philanthropy
Global Citizenship
Organizational Social Responsib
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Definitions: Concept
Philip Kotler & Nancy Lee (2005)
“a commitment to improve communitywell-being through discretionary businesspractices and contributions of corporateresources”.
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Definitions: Practice
WBCSD (World Business Council forSustainable Development)
“The continuing commitment by business tobehave ethically and contribute tosustainable economic development whileimproving the quality of life of the workforceand their families as well as of the localcommunity and society.”
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Definitions: Practice
BSR (Business for Social Responsibility)
“achieving commercial success in ways thathonor ethical values and respect people,communities, and the natural environment.”
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Scope
CSR ?
Economic
Environ-mental
Social
CSR ?CSR ?
CSR ?
CSR and Sustainable Developm ent
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Scope
CorporateGovernance
& Ethics
People
ContributionTo DevelopmentEnvironment
Corp
orat
e Ci
tizen
ship
Corporate Citizenship
Corporate Citizenship
CorporateGovernance
& Ethics
Local and global environmental qualityCleaner production processesEco-efficiencyEnvironmental Technology
Product & worker safetyLabor standards
Human rightsEqual opportunity and access
Corporate Values and purposeTransparency and accountability
Tacking corruption
Enterprise developmentCommunity Investment
EducationHealth/HIV/AIDS
Digital Divide
The World Economic Forum, 2002
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Issues: by Value Chain
CSR The WBCSD’s Journey
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Issues: by Social Ratings
KLD Social Rating CriteriaCommunityCorporate GovernanceDiversityEmployee RelationsEnvironmentHuman RightsProducts
KLD Research & Analytics Inc.
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Initiatives
Cause PromotionsSupporting social causes through promotionalsponsorships
Cause-related MarketingMaking a contribution or donating apercentage of revenues to a specific causebased on product sales or usage.
Kotler and Lee, 2005
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Initiatives
3. Corporate Social MarketingSupporting behavior change campaigns.
4. Corporate PhilanthropyMaking direct contribution to a charity orcause.
Kotler and Lee, 2005
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Initiatives
Community VolunteeringProviding volunteer services in the community.
Socially Responsible Business PracticesAdopting and conducting discretionarybusiness practices and investments thatsupport social causes.
Kotler and Lee, 2005
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From Principles to Practice
Framework for CSRProvide Leadership
- Articulate purpose, principles and valuesinternally and externally;
- Promote ‘business case’ internally;- Engage the financial sector;- Enter the debate on globalization and the role of
business in development;
The 2002 World Economic Forum & BSD Global
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From Principles to Practice
Define what it means for your company
- define the issues;- Agree on company’s spheres of influence;- Identify key stakeholders;
The 2002 World Economic Forum & BSD Global
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From Principles to Practice
Make it happen
- put corporate citizenship on board agenda;- establish internal performance, communication,
incentive and measurement systems;- engage in dialogue and partnership;- encourage innovation and creativity;- build the next generation of business leaders;
The 2002 World Economic Forum & BSD Global
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From Principles to Practice
4. Be Transparent about it- Agree what and how to measure;- Develop a program for external reporting;- Be realistic.
The 2002 World Economic Forum & BSD Global
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Future of CSR: On the Way to ISO
The International Organization forStandardization (ISO) decided to developstandard for ISO in 2002
1st Discussion in 2004
2nd international meeting to draft thestandard in September 2005
in Bangkok
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Organizations promoting CSR
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Thank you for your attention
Q & A Session
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