csr and value creation: shareholders, communities and governments
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CSR Foundation of Ghana’s
Inaugural National Public Lecture on CSR United Nations Global Compact Awards Night
British Council Auditorium, Accra, Ghana Sept 13, 2013
CSR AND VALUE CREATION Shareholders, Communities and Governments
Wayne Dunn
Professor of Practice in
Corporate Social Responsibility McGill University
Institute for the Study of International Development
wayne@waynedunn.com
What is Corporate Social Responsibility?
Where did it come from?
How did it get here?
Why isn’t it?
• Community social responsibility
• NGO social responsibility
• Government social responsibility
Or is it part of all of these?
Shared Social Responsibility
Creating Shared Value
Where did it come from?
Globalized world is demanding more of business…
Global media – The CNNization of the world – remote local issues direct to television screens
Proliferation of NGOs and CBOs – direct, well organized and financed support to communities
Internet and Social Media – direct communications from remote projects to worldwide audience
Global Democratization – increased attention to local issues
CSR History – late 1990s to present
Some phenomena
Growing expectation that business can and should
contribute to social and community well-being
Emergence of Social License - Local communities
and other stakeholders have growing power and
influence
Reputational capital is increasingly important
www.waynedunn.com;
info@waynedunn.com
CSR History – late 1990s to present
‘Socially conscious’ shareholders
Social Investment Funds (Socially
responsible investment refers to making
investment decisions based on financial
returns as well as a company’s social and
environmental practices, corporate values
and ethics).
The Financial Markets
• Dow Jones Sustainability Index
• FTSE Sustainability Index
“By working together to mobilize sustainable investment in the Least Developed Countries, government, business and civil society give hope and opportunity to the world’s poorest”
“lasting and effective answers can only be found if business – working together with other actors including government and civil society– is fully engaged”
Kofi Annan
United Nations Global Compact
announced by the then UN Secretary-General Kofi Annan in
an address to The World Economic Forum on January 31,
1999, and was officially launched at UN Headquarters in
New York on July 26, 2000
CSR in the OLDEN DAYS
Policies &
Good Intentions
Solving Social
Problems
CSR in the OLDEN DAYS (cont)
Framework
Plan
?Results?
System
more than a warm fuzzy issue
Spending isn’t the answer
Partners
CSR: Beyond Beads and Trinkets
What is a company’s social responsibility
throughout the industrialized world and in many developing countries there has
been a sharp escalation in the social roles corporations are expected to play.
Companies are facing new demands to engage in public-private partnerships and
are under growing pressure to be accountable not only to shareholders, but also to
stakeholders such as employees, consumers, suppliers, local communities,
policymakers, and society-at-large.
Harvard CSR Initiative
“CSR is the continuing commitment by business to behave ethically and contribute
to economic development while improving the quality of life of the workforce and
their families as well of the local community and society at large”
World Business Council on Sustainable Development
What is CSR
It’s about organizing business investments,
operations and activities so social value is created
while also creating shareholder value.
Collective Social Responsibility
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
What is Corporate Social Responsibility?
Why isn’t it
• Community social responsibility
• NGO social responsibility
• Government social responsibility
Or is it part of all of these?
Shared Social Responsibility
Creating Shared Value
Strategic Social Responsibility
Shared
Value & Responsibility
Community
Government
Business International
Organizations
NGOs
How to think about CSR systematically
• Frameworks and systematic approaches to
CSR is still an evolving area, despite a lot of
progress over the last 15 years
• No one size fits all
• CSR programs and activities can be examined
along many dimensions
Some Key Dimensions to Think About
Type of Activity
Grants and Donations
Community Social & Health
Training and Education
Local Institutional Development
Local Infrastructure
Employment
Procurement
Local Industries (Oil Palm)
Other
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?
CSR is about value creation not Charity
Value for People
Value for Communities
Value for Shareholders
Value for Governments
CSR is a SHARED RESPONSIBILITY
Need to balance interests
Questions, Comments, Suggestions
Wayne Dunn
Professor of Practice in Corporate Social Responsibility
McGill University | Institute for the Study of International Development
wayne@waynedunn.com
www.csr-exec-ed.com
Desk: +1.250.743.7619
Mobile: +1.250.701.6088
Ghana +233 (0)54 110.7974
“Education is not the filling of a pail but the lighting of a fire.”
William Butler Yeats
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