Globalization

Sustainability CSR

T. L. Ceranic

T. L. Ceranic

“Business has become, in the last half century, the most powerful institution on the planet. The dominant institution in any society needs to take responsibility for the whole…Every

decision that is made, every action that is taken, must be viewed in light of that kind of

responsibility.”-D.C. Korten

Iron Law of Responsibility:

In the long run, those who do not use power in ways society considers responsible will lose

T. L. Ceranic

T. L. Ceranic

CSR vs. Citizenship

Corporations should be held accountable for any actions that affect people, their communities, and the environment: Academic

The corporation recaptures its rightful place in society, next to other “citizens” with whom the corporation forms a community: Practitioner-driven

T. L. Ceranic

Legal requirements vs. CSR/CC

Laws and regulations are enacted to ensure socially responsible conduct by business

Businesses that comply with the laws are meeting MINIMUM levels of CSR

CSR is bringing corporate behavior up to a level where it is in congruence with currently prevailing social norms

T. L. Ceranic

Roots of CSR

Turn of 20th century Corporations were being accused of being too big, powerful, anticompetitive, and antisocialCarnegie/Ford/RockefellerShift in 1920s again

•Community Chest movement

CSR pyramid

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What about Corporate Responsibility?

approach to Corporate Responsibility

Ethics Policy & Code

Ethical Values underpin….

CSR Programme

doing things ethically doing ethical things

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Forms of CSR

Stewardship Principle: TimberlandCharity PrincipleShareholder view

CSR: All grown up

Multiple stakeholder view!

Philanthropy and community involvement: Sophisticated partnerships

Social auditing

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Current hallmarks of CSR

Rapid development

Gradual regulatory support

Growing corporate enthusiasm, right?

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Who cares?

Stakeholders! Especially in a down economy: consumers =

risk averse

Risk averse consumers are 50 percent more likely to agree that companies have a duty to

be socially responsible and support the communities in which they operate

(Microfinance Monitor: September 21, 2011)

T. L. Ceranic

Companies spend millions of dollars every year on corporate social responsibility; they invest in

programs to support local communities, give away products to support people in need, invest in clean technology to lower their environmental footprint, donate money from sales, and engage their employees in nonprofit work. But many are

mismanaging their CSR investments.

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CSR Sweet Spot

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Triple bottom line

T. L. Ceranic

Companies need to reassess how to spend their money if they want to improve their return on

investment.

“You don’t do CSR for the sake of CSR. You do CSR as part of your reputation management strategy to drive business growth, customer

loyalty, and employee alignment.”

Only a few companies get it right.

T. L. Ceranic

How to enact CSR/CC

Social performance audits

•Benchmarks: mission statement + other organizations

•Global benchmarks are available

Social/environmental reports

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Who’s best @ CSR?

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T. L. Ceranic

T. L. Ceranic

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T. L. Ceranic

# 6-10

Daimler (Mercedes-Benz) Volkswagen Sony Colgate-Palmolive LEGO Group

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Who do you see doing a good job with CSR?

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CSR as for-profit foundation

Should consumers have to do something for the CSR to happen?

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Does it matter why they do it?

T. L. Ceranic