140321 master url_rc_en
DESCRIPTION
Explicación de los conceptos de Responsabilidad Corporativa, Desarrollo Sostenible, etc. y su aplicación en AgbarTRANSCRIPT
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MA-Strategic Management in Global Communication
Corporate Social Responsibility and Ethics
IGNASI FAINÉ / NEREA PLAZAMarch 21st
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WHAT ARE OUR EXPECTATIONS FROM THESE SESSIONS?
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Introduction
I. CONCEPT
II. HOW IS IT APPLIED? STRATEGY AND IMPLEMENTATION
III. BUSINESS ETHICS
IV. CHALLENGES AND OPPORTUNITIES
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WHO ARE WE?
Water cycleSupply
Sewerage
Over 140 years’ experience
Approximately 150 companies
Activities in over 10 countries
Over 10,000 professionals
Environment
Knowledge
Solutions
Infrastructures
Concessions
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I. CONCEPT
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What is Sustainable Development? What is SD NOT?
What is CSR? What is CSR NOT?
(individual written - debate)
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PEOPLE PLANET
THE WATER CHALLENGESUnequal distribution and difficult access to drinking water
GOALSCONFLICTS
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Water & planet
0.0001% of the whole planet’s water are drinking water reserves
www.calvert.com
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The challenge of…
CLIMATE CHANGE
SOCIAL INEQUALITIES
URBANIZATION
INEQUALITIES BETWEEN
COUNTRIES
DEVELOPMENTEMERGING COUNTRIES
CONFLICTS OVER
RESOURCES
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SUSTAINABLE DEVELOPMENT
Meets the needs of the present without compromising the ability of future generations to meet their own needs.
Bruntland Report
Economic
Social
Environ-mental
SDLabour rightsCorporate
Governance
Human Rights
Civil Rights
RESPONSIBILITY
LONG TERM
COMPREHENSIVE VISION
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WHICH IS THE ROLE OF COMPANIES?
Input Company Output
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→ Which is the role of the company?
→ Is it creating wealth?• Kind?• Who for?• In exchange for?
→ Is it being responsible?→ Is it sustaible?→ Is this a real situation?
THE IDEAL COMPANY
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“The social Responsibility of Business is to increase its profits”
Milton FriedmanThe New York Times Magazine,
September 13, 1970
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… AND THE ROLE OF COMPANIES?
Input Company Output
Use of resources
Waste
Effects on biodiversity
Pollution
Alterations to the landscape
Employment/Unemployment
Community development
Purchases – economic development
PEOPLE
COMPANIESSECTOR
COUNTRYENVIRONMENT
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Corporate Social Responsibility as “the responsibility of enterprises for their impacts on society”.
Enterprises “should have in place a process to integrate social, environmental, ethical, human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders”.
European Commission (2011)
CORPORATE RESPONSIBILITY
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CHARACTERISTICS
ProactiveVoluntaryBeyond strict adherence to law
EVOLUTION
Mitigation of impacts Prevention Creation of
value
CORPORATE RESPONSIBILITY
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CORPORATE RESPONSIBILITY
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IS NOT...The activity carried out by the company in relation to “the needy”: social action.The actions carried out by the company to protect the environment: environmental sustainability.A department or a specific area of action.
IS... Ensuring the viability of the business, introducing more than purely
economic parameters into the decision-making processes: integrating the social, environmental, ethical, labour, moral, etc. concerns into our day-to-day business.
What the company does to ensure its permanence over time.
CORPORATE RESPONSIBILITY
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Different terms....
...the same idea
"Businesses around the world are waking up to the urgency of addressing social, economic and
environmental challenges.“
Ban Ki-moon, United Nations Secretary-General
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II. STRATEGY AND IMPLEMENTATION
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How to implement CSR?
CSR is the responsibility of companies for their impact on society.
• Starting point: regulatory and legislative compliance
• Implementation of a process: to integrate social, environmental, ethical, human rights and consumer concerns into their business operations and core strategy.
• … in close collaboration with their stakeholders.
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COMMUNICATING BUSINESS
→ How do I start?
The power of purpose
What we have
What we do
How we do it
WHY we do it
From tangibles…
… to Intangibles©Therry Tyrell
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CR STRATEGY
de RC
PMP RC
IRC Actions carried out during the year
Definition of the Vision, Mission and Values
Prioritization of the stakeholders
Establishment of commitments with the strategic stakeholders
Preparation of action plans with annual objectives and medium-term goals
Stakeholders
Policy
Medium-Term Plan
Accountability
VisionMissionValues
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Vision, mission, valuesVision
Be the reference business group in our areas of activity and one of the big global utilities.
Manage water efficiently to improve the quality of life of people, in harmony with the environment.
Lead the development of solutions and technologies in the water sector.
Transfer the accumulated experience to society, generating value for our stakeholders.
Contribute to attaining the United Nations Millennium Development Goals.
ExcellenceInnovation Sustainable business model
Dialogue and cooperation Local developmentAlliances and collaborations
Mission
Values
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Stakeholders
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ROLE PLAY: HOW DO I INTEGRATE THE CONCERNS?:-Company Director-Consumers’ Association-Representative local authorities (city council)-Union representative-Environmental NGO-Social NGO-Supplier company
QUESTIONS: - Is it easy to maintain an open dialogue? How to
structure the dialogue in a big company?- Is it easy to meet all demands? Is it necessary to
do so? - What dimensions come within CSR? - What departments would be involved in the
requests that were made?
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e.g. Dimensions (GRI) i
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e.g. Dimensions (GRI) ii
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Commitments
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The preparation of the Corporate Responsibility Medium-Term Plan
(CRMTP) reflects the desire to promote CR in Agbar and to incorporate it
into the business strategy.
It is the internal document which details the actions to carry out in
order to fulfil the commitments detailed in the Corporate Responsibility
policy.
The Corporate Responsibility and Reputation Office wants the CRMTP to
be aligned and to be able to make contributions to the objectives of
Agbar’s strategic plan.
CR Mid-term plan
MEDIUM-TERM CR PLAN
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AGBAR - Accountability
DEBATE: ARE CR REPORTS USEFUL?
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III. BUSINESS ETHICS
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CODE OF ETHICS
• A written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.
RIGHT WRONG
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Our principles
• 4 fundamental principles which guide our behaviour:
• Act in accordance with laws and regulations
• Establish a culture of integrity
• Demonstrate loyalty and honesty
• Respect others
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APPLYING OUR PRINCIPLES… TO WHOM? AND WHEN?
(test)
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Spheres of application
• Three spheres in which these four fundamental principles are applied:
• Organization sphere, formed by employees, companies which make up Agbar and shareholders
• Market sphere, within which we maintain relations with clients, suppliers and competitors.
• Environment sphere, formed by the world around us, in the countries in which we are present: local community and the environment nesty and respect for others.
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Are we ethical? Corporate Culture
ValuesVisionBeliefs
…
NormsCodes
Procedures…
BehaviourPerformance
habits
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IS IT WORTH THE EFFORT?
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The value of reputation
Source: “The Tangible Value of Corporate Reputation”, Charles J. Fombrun and Jonathan Low, Communication World, Nov-Dec 2011
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FeDex websiteFeDex in Youtube
VW Passat Spot Star Wars VW Passat Spot Star Wars - response
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…and the cost of irresponsibility
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently. Warren Buffett Chairman, Berkshire Hathaway
Can I do this forever?
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III. COMMUNICATING CSR
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Greenwash?
The Greenwash Guide – FUTERRA SUSTAINABILITY COMMUNICATIONS
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Manging risks
goodgood
badbad
badbad goodgood
Risk
Opportunity
REALITY
PERCEPTION
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Risks and opportunities of Communicating CSR
RISKS OPPORTUNITIES
THE CORPORATE PURPOSE
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EXPLAIN
DO
BE
The main challenge of CSR
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FINAL TEST: WHAT HAVE WE LEARNED?
CSR simply consists of managing the risk and preventing bad practices
CSR questions the business and capitalist system itself
CSR consists of giving money to social causes and being a philanthropist
CSR focuses on how companies make profit, not where they invest it
CSR acts on two levels: the individual and the organizational
For companies to act ethically they just need to write a code of ethics and a corporate policy
CSR is unrealistic and that is why it does not obtain improvements
The responsibility of companies should be established and regulated by law and the state
CSR is not the only answer, but it is an essential answer