Transformative Corporate Social Responsibility

According to Wayne Visser

Sanja Dolenec, mag. oec.

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Lecture Content Introduction A Critical Perspective Defining the DNA of CSR The Principles of CSR 2.0

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Introduction (1)

Corporate social responsibility (CSR) is a corporation’s initiatives to assess and take responsibility for company’s effects on environmental and social wellbeing

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Introduction (2)

We should judge the success of CSR by whether our communities and ecosystems are getting better or worse

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A critical perspective (1)

Ecological footprint has more than tripled since 1961 due to the spread of capitalism and Western lifestyles globally

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A critical perspective (2)

Climate change is evident and human activity is the main cause

According to The Economics and Climate Change the cost if action to reduce GHGs and avoid the worst impacts of climate change is about 1% of global GDP yearly

Inaction results in a oersistent annual loss of 5% of global GDP

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A critical perspective (3)

Poverty Capital flows to whereever the social or

environmental standards are lowest Unemployment problems affecting

developing regions 2.5 billion people still lack access to

improved sanitation facilities

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A critical perspective (4)

Inequality The top 20% of the population enjoys

more than 70% of total income, 2% for those in bottom 20%

Inequality between urban and rural populations in developing countries

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A critical perspective (5)

Corruption as one of the socio-economic cancers that aids and abets the poverty and inequality

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Defining the DNA of CSR (1)

The DNA responsibility bases: Value creation Good governance Societal contribution Environmental integrity

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Defining the DNA of CSR (2)

Value creation refers to economic developmnet, which contribute not only to enrichment of shareholders and executives, but improves the economic context in general (investing in infrastructure, creating jobs, etc.)

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Defining the DNA of CSR (2)

Good governance includes the institutional effectiveness

If institution is not transparent and fair, this undermines everything else that CSR is trying to accomplish

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Defining the DNA of CSR (3)

Societal contribution refers to stakeholder orientation

Philanthropy as need

Today are more people in slavery than there were before it was officially abolished in the 1800s

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Defining the DNA of CSR (3)

Environmental integrity – not only minimising the damage but also to maintain and improve ecosystem sustainability

According to WWF’s Living Planet Index, a third of the biodiversity on the planed is vanished since they began monotoring 1970

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The principles of CSR 2.0 (1)

Transformative CSR, or CSR 2.0 focuses its activities on identifying and tackling the root causes of our present unsustainbility and irresponsibility following several principles

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The principles of CSR 2.0 (2)

Creativity Today’s standardisation does not foster

the kind of creativity that is needed to solve the complex social, environmental and ethical problems we face

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The principles of CSR 2.0 (3)

Scalability Companies need to educate their

customers to shop and live more sustainably and responsibly, to recognise social, environmental and ethical label, etc.

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The principles of CSR 2.0 (5)

Responsiveness Although companies are responding to

CSR issues, they are not genuinely responsive to the scale and urgency of stakeholder needs.

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The principles of CSR 2.0 (6)

Glocality In a complex CSR 2.0 world, companies

will have to become more sophisticated in understanding local contexts and finding the appropriate local solutions they demand, without forsaking universal principles

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The principles of CSR 2.0 (7)

Circularity The need for a circular economy where

all waste becomes „food” input to the cycles of nature and the cycles of industry

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Conclusion

It is evident the companies have to question the way they practice CSR concept in order to solve the world’s main environmental and social issues

Transformative approach to CSR is crucial

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Conclusion

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