Part V: A Sustainable Perspective Chapter 14: Implementing CSR

Building Sustainable Practice into the Business Model Implementing strategic, sustainable practices can be divided into three focal areas: Supply chain: Prefirm production, such as raw materials extraction, supplier manufacturing, and outsourcing Operations: Internal production, including all aspects of the value chain, such as transportation, logistics, and design Consumption: Postfirm production, such as consumption and recycling The whole process can also be broken down into two broad implementation stages: short- to medium-term and medium- to long-term. Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

The Socially Responsible and Sustainable Vision Statement An effective vision: Engages the organization’s key stakeholders to determine their perspectives Maps out a conflict resolution process that seeks mutually beneficial solutions Involves the CEO’s necessary endorsement and active support Reinforces the importance of CSR through rewards and sanctions Provides policies for how CSR is to be implemented on a day-to-day basis Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Codes are Useless Without Executive and Managerial Support – i. e Codes are Useless Without Executive and Managerial Support – i.e., Values-Based Leadership “Enron stands on the foundation of its Vision and Values. Every employee is educated about the Company’s Vision and Values and is expected to conduct business with other employees, partners, contractors, suppliers, vendors and customers keeping in mind respect, integrity, communication and excellence."   “Everything we do evolves from Enron’s Vision and Values statements. . . . We are dedicated to conducting business according to all applicable local and international laws and regulations . . . and with the highest professional and ethical standards.” Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Short- to Medium-Term Implementation The ultimate goal of implementation is for CSR to form an integral component of the firm’s culture and day-to-day operations: Executive investment CSR/Sustainability Officer Socially responsible vision Performance metrics Integrated reporting Ethics code and ethics training Ethics helpline Organizational design Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Integrated Reporting Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

CSR/Sustainable Management Reports There are really only four questions that need to be addressed: What will it look like for your company to be sustainable? What do you need to do to get there? How much progress have you made? What are the big problems you still have to solve? “Stick everything else in the appendix.” Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Medium- to Long-Term Implementation Over the longer term, the firm must institutionalize and externalize the substance of its CSR policies for stakeholders: Stakeholder engagement Marketing Corporate governance Social activism Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Lobbying Lobbying is a useful way for firms to interact with elected representatives. In order for such activities to be considered socially responsible, however, managers should follow a clear set of principles… Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Lobbying Good Proactive Work toward industry standards Spend to support scientific research Transparent Bad Reactive Work toward individual firm exceptions Make paid endorsements and campaign donations Secretive Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Sustainable Implementation Plan Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

The Socially Responsible Firm A series of steps helps further embed socially responsible practices throughout the organization: Risk analysis (firm-wide audit) Policy statement (formation and announcement) Risk management (monitor implementation and react to any issues) Reporting (transparency and stakeholder interaction) Review and revise (via a risk analysis update) Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.

Questions for Discussion and Review An important component of implementing an ethical, socially responsible perspective firm-wide is consistency across departments. Do you feel that the important lessons you are learning in this class are supported by classes from other departments in the business school? Why is top-management support for responsible sustainable management practice so critical? Can the responsibility to manage sustainably be delegated? If so, why and to whom? How does a firm avoid the perception that its CSR report is greenwash? Does it matter whether the reasons behind an action are genuine or cynical if the outcome is the same? What do you imagine the day-to-day work of an ethics and compliance officer (ECO) entails? Do you think it is viewed as a position of importance within companies today? Chandler, Strategic Corporate Social Responsibility, 4th edition. © SAGE Publications, 2017.