corporate social responsibility & diversity management by andreas schneider austrian economic...
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Corporate Social Responsibility
& Diversity Management
by Andreas Schneider
Austrian Economic Chamber
StabsabteilungStabsabteilungWirtschaftspoliWirtschaftspoli
tiktik
Historical Development of CSR
• 1950´s: First scientific discussions on CSR in USA. • 1953 Bowen: “Social responsibility of businesses has to orientate on social expectations and
values.” • 1970’s: Companies seen as a part of the society have also rights and duties as others and in order
to benefit from nonmonetary social achievements they should act responsible. Due to ethical reasons they should take the responsibility on their impacts on the society.
Basic-idea for CSR.• since mid of 90´s discussions in Europe (esp. GB, GER & F) • 2001 Green Paper European Commission
• Paralell discussion on sustainability– 1987: Brundtland Report – “sustainable development meets the needs of the present without
compromising the ability of future generations to meet their own needs” – 1992: Conference in Rio – 1999: World Economic Forum in Davos – Kofi Annan appeals for a Global Compact for human
rights, working standards and environmental protection– 2002: Johannesbourgh – Rio follow up
CSR Historical Development & Evolution
“There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game” (Milton Friedman 1970)
Globalization
Environmental
Economic Social
Adam Smith (1723-1790)Adam Smith (1723-1790)
XXI Century: Modern understanding of CSR
1970
Background of CSR: Globalisation
National states are still important but no longer omnipresent rule-enforcers and monopolists of ‚public goods‘
What is CSR ? Definitions
• No common definition in scientific literature
• EU-Green paper (2001) defines CSR as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”
• World Business Council for Sustainable Development (2000) defines CSR as “the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society to improve their quality of life.”
CSR is a wide and crossover-concept
Customers
What is CSR ?
Corporate Governance
Managementtool for the Economy: Corporate(Social) Responsibility =
Corporate Sustainability
Objective: economic success with social responsibility
Companies
Vision for the Society:„Sustainable Development“
Citizens
Civil SocietyPolitics
Corporate Values
Corporate Citizenship
Ethical Responsibilitie
s
The future -3 dimensions in balance
environment
econ
omy
society
Sustainably successful economic development needs an intake environment and social peace.
Longterm solutions to environmental problems are possible only within a healthy economy and healty society in the presence of reduced poverty.
The realisation of societal values and an acceptable balance between north and south as well as fortunate and less fortunate is best achievable in the presence of global economic growth and sound environmental fundamentals
Managing the Future with CSR
Sustainable econicical ecological & social advantage
Ecolocial
responsibilityec
onom
ical
resp
onsi
bilit
ySocial responsibility
value increasing
Strenghtening its´marketposition
Better Image
risk minimation
motivated staff
more confidence
Uniqueness(unique selling position - USP)
sometimes also a reduction of costs
new cultur within corporations
„Benefit instead of Profit“
• better working conditions
The Pyramid of CSR – the more the better for all of us
Win – Win Situation
CSR as Mission
Not “doing good while doing bad”
growing public pressure
defensive investive
- principle of legality
- avoidance of negative publicity
- Compliance strategies
- strategic management
- competitive advantages through integration of economic and social objectives
- Citizenship strategies
Corporate Social Responsiblity – two directions of strategies
CSR and Sustanability within the Company
Passive Unternehmen wartet ab, bis sich der Druck von Seiten der Anspruchsgruppen erhöht.
Kein aktiver Zugang
ReaktiveÖkologische und gesellschaftliche Risken, die den Wert oder Ruf des Unternehmens beschädigen könnten, werden verhindert-
Risiko-minimierung
Aktive
Das Unternehmen erkennt, dass CSR und Nachhaltigkeit Chancen am Markt bieten. Neue Produkte, Technologien und Geschäftsfelder entstehen. Intern entwickeln sich Organisation und Management auf innovative Weise weiter.
Innovation
Proaktive
Das Unternehmen gestaltet mit seinen Anspruchsgruppen zukunftsfähige Formen des Wirtschaftens. Daraus resultiert eine enge Beziehung zu den Stakeholder, was dem Unternehmen Wettbewerbsvorteile verschafft
Innovation and responsibility
Nutzen &
Praxis
Stakeholders and Issues and Consequences
CSR
Custom
ers
Suppliers
Communities &
Interest GroupsShareholders
Empl
oyee
sG
overnments
Human
Rights
Transparency
Eco
no
mic
D
evel
op
men
t
EnvironmentD
iversity
Par
tner
ship
s
Sustainable Development
Sourcin
g
Work-lifeEthics
Stakeholder: “an individual, community or organisation that affects, or is affected by, the operations of a company / NGO. Stakeholders may be internal (e.g. employees) or external (e.g. customers, suppliers, shareholders, financiers, the local community). For strategic planning and acting it is necessary to know the different groups of stakeholders as accurately as possible and in order to meet their needs and impact on the company to analyze their aims and the relationship to the company
Increasing Importance ofStakeholder Relations
Increasing Importance of Reputation Management
Increasing Importance of Ethics Management
An Institutional Revolution
Stakeholders in a hierarchial relation?
CSR within the Austrian Economic chamber as an employer
•Being an example for 300.000 members:
•Education schemes for employees, •life work balance, •health at work, •works council, •corporate volunteering,•social sponsoring•Active Diversity management
•Sustainable procurement, energy saving investments
•Expanding stakeholder dialogue etc.•Etc.
Diversity Management as important part of CSR
www.stop-discrimination.info
What do we mean by diversity?
• Recognising diversity means understanding how people’s differences and similarities can be mobilised for the benefit of the individual, the organisation and society as a whole.
• Complying with legislation is only a first step. By looking at how the diversity of people can be mobilised to create value and advantage, they can take another step to becoming “organisations of choice”. Many people now recognise that valuing and pursuing diversity is vital for organisations and individuals.
• But having a diverse workforce does not automatically translate into positive benefits. Diversity must be effectively managed to reap the diversity “dividend”.
What are possible benefits of managing diversity effectively?
• Recent research shows how creating and managing a diverse organisation can provide real benefits.
• Diversity management strategies can help to create a link between the internal and external aspects of the work of an organisation. Whilst each organisation needs to work out its own priorities, these benefits can include:
> Attracting, recruiting and retaining people from a wide “talent” base.
> Reducing the costs of labour turnover and absenteeism.
> Contributing to employee flexibility and responsiveness.
> Building employee commitment, morale and “discretionary effort”.
> Managing better the impact of globalisation and technological change.
> Enhancing creativity and innovation.
Diversity Management: The Business Case
Volkswagen
The Global Business Coalition on HIV/ Aids (NY) appreciated the Information an Trainingprogramme of VW in combating Aids in South Africa with the”Business Exellence in the Workplace” Award.
Thank you for your attention!
Andreas Schneider
Austrian Chamber of Commerce (WKÖ)