Corporate Social Responsibility in Asia: An Introduction to Sustainable Consumption Richard Welford CSR Asia

What CSR is not…. It is not about: 1.Giving cheques 2.PR photo opportunities 3.Making employees “volunteer” 4.Planting a few trees 5.Feeling good and being a “caring company”

CSR is about… sustainable development 1.The environment and climate 2.Supply chains 3.Human rights, labour rights 4.Communities and impacts 5.Investment policies 6.Sustainable consumption 7.Corporate governance 8.Fair operating practices 9.Brand, reputation, trust 10.Management systems

ISO 26000: The rationale for corporate social responsibility 1.Brand, reputation, trust 2.Attract and maintain employees, customers, clients 3.Employee commitment, morale productivity 4.Interest from investors and the financial community 5.Relationships with companies, government, the media, suppliers, peers, customers, communities 6.Contributions to sustainable development

Sustainable Development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: the concept of needs, in particular the essential needs of the world's poor, to which overriding priority should be given; and the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and the future needs. (Brundtland Commission, 1987)

The sustainable development imperative: Marks & Spencer has launched a 100-point business-wide £200m eco-plan (Plan A) By 2012 M&S will: become carbon neutral send no waste to landfill extend sustainable sourcing set new standards in ethical trading help customers and employees live a healthier lifestyle Specific targets include: A 25% reduction in energy use A 25% reduction in packaging Reducing use of carrier bags by 33% Converting key clothing ranges to 100% Fairtrade cotton Introducing 1,500 Healthy Eating Assistants in stores M&S will also help suppliers to change their behaviour

Climate change The impact of climate change will disproportionately affect those people who did not cause it… What risk does it pose to business? What are the implications for consumption?

Creating a vision for the future: CLP “None of us can defeat the threat of global warming on our own but together we can cool the climate and realise our Climate Vision 2050”

Reporting and disclosure: Best practice from Unilever

Stakeholder responsiveness: Best practice from Cathay Pacific

ISO 26000: Social Responsibility Organizations around the world, as well as their stakeholders, are becoming increasingly aware of the need for socially responsible behaviour. The aim of social responsibility is to contribute to sustainable development including health and the welfare of society.

Seven principles of social responsibility Accountability Transparency Ethical behaviour Respect for stakeholder interests Respect for the rule of law Respect for international norms of behaviour Respect for human rights Recognizing social responsibility Seven core subjects Organizational governance Human rights Labour practices The environment Fair operating practices Consumer issues Community involvement & development Related actions and/or expectations Relationship of the organization’s characteristics to social responsibility Understanding the social responsibility of the organization Selecting initiatives on social responsibility Communication on social responsibility Reviewing and improving social responsibility actions and practices Enhancing credibility regarding social responsibility Stakeholder identification and engagement Practices for integrating social responsibility throughout the organization Integrating social responsibility into an organization

ISO 26000: Consumer issues “Organizations that provide products or services to consumers and customers have responsibilities to those consumers and customers. These responsibilities include providing education and accurate information, using fair, transparent and helpful marketing and contractual processes…” “Organizations have significant opportunities to contribute to sustainable consumption and sustainable development through their products and services they offer and the information they provide.”

Consumer issue 3: Sustainable consumption “Sustainable consumption is consumption of products and resources at rates consistent with sustainable development… Sustainable consumption also encompasses a concern for ethical behaviour regarding animal welfare.” Organizations should: Offer consumers socially and environmentally beneficial products and services Offer products and services that operate as efficiently as possible Eliminate or minimize negative environmental or health impacts Design products and packaging to be environmentally sensitive

Exercise: Sustainable development and sustainable consumption Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: the concept of needs, in particular the essential needs of the world's poor, to which overriding priority should be given; and the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and the future needs. Exercise: How do we to make consumption consistent with sustainable development?

Challenges for the consumer movement We have made huge advances in terms of sustainable production but not on sustainable consumption What are sustainable products and services? Consumer information, awareness and education Communicating to consumers Influencing consumer choices Future emerging challenges: –Supply chains and traceability –Community impacts and products for the poor?

Thank you! Richard Welford