School of Management Warsaw November 2007 Lecturer Sander Hupkes MA Corporate Social Responsibility

Program 1 st meeting Todays program Introduction (lecturer & students) The module What is CSR? Why CSR? Next session

Your lecturer Drs. Sander Hupkes (=MA) Academic degree in Philosophy (University of Groningen 1987) Lecturer University of applied sciences Leeuwarden, Netherlands (since 2003) Something more about NHL and my country

Your lecturer 10 years trade union

Your lecturer 10 years trade union Modules: globalization, industrial relations, (business)ethics, CSR Age 47 Married, no children

Program module The book: Corporate Social Responsibility (a Dutch approach) Documentary on the Brent Spar (Shell) Collect information (www) on CSR and CSR reports. How to become a social responsible company? Assessment

Program module TodayIntroduction Session 2TV documentary on Brent Spar (Shell versus Greenpeace) Session 3Examples of CSR Session 4The cultural dimension of CSR Session 5Implementing a CSR strategy Session 6Evaluation

What does CSR mean? Corporate social responsibility But what does it mean????????

Responsibility? Responsibility = Accountability (answering, reporting) What responsibility do enterprises have? Four concepts

Responsibility Four concepts

Responsibility Minimal responsibility Increase profits (shareholders) = efficiency Whitin the rules of te game (=law) Milton Friedman: one and only responsibility. Increase profit whitin the rules of the game (free and open competition, no deception or fraud)

Responsibility Corporate citizenship Continuity All stakeholders Spirit of the law

Responsibility Corporate social responsibility Damage reduction Triple P Value based (not law based)

Resposibility Social activism Social objectives Values and norms are the core business

Why CSR? Because……….. You must do so (law, public expectations) You find it profitable (reputation, marketing, enlightened self-interest) You should do so (moral values, idealism)

Why is CSR profitable? ???????????????????????

Hapiness Richard Layard Hapiness. Lessons from a New Science (2005) World database on hapiness

Hapiness

Marketing Philip Kotler 1.Production based (price) 2.Product based (price quality) 3.Sales based (persuasion) 4.Marketingconcept (customor = king) 5.Values based sales and marketing (social responsibility)

CSR 1973 Club of Rome 1987 Brundtland 2000 SER 2006 Al Gore

The Dutch approach SER Social and Economic Council Consultation economy ( Enterprise = a social activity CSR is core business

Les 2?

The Dutch approach Enterprise = value creating entity Value creation in various dimensions CSR cannot be based solely on charity! CSR is a varied and complex phenomenon

Enterprise* Profit-driven Market-driven Transaction costs can be saved in partnership arrangements (for a longer period) Long-term form of co-operation between various stakeholders Business = a social activity

Enterprise* Profit-driven, but the social and economic importance is to create value by using scarce sources in a efficient and effective manner for the production of goods and services wich, by satisfying human needs, contribute to general prosperity. * The Dutch approach

CSR Corporate Social responsibility is determined by: -Focus on public prosperity on the longer term -Relation with stakeholders and society at large

CSR The conscious direction of business activities toward creating value in three dimensions for the longer term: -Financial-economic -Ecological -Social Transparancy and accountability Balance of power of stakeholders

Triple P Beyond the Bottom Line: Putting Social Responsibility to Work for Your Business and the World Joel Makower (1994) “Companies function best when they merge their business interests with the interests of customers, employees, neighbours, investors and other groups directly and indirectly affected by their operations”

Triple P

Essence of CSR in a nutshell Profit: shareholders and social importance: efficient, comparative advantage People: employees, neighbours, customors other groups affected Planet: nature, environment

Triple P

Ethical investments

Values and norms Used to be imposed by church and/or government Nowadays values and norms are discussed in the public arena Examples OECD Guidelines ILO labour standards UN Global Compact cleanclothes

Accountability An enterprise is expected to provide answers to legimate questions Public dialogue Corporate codes Reports on CSR: GRI (Global Reporting Initiative)Global Reporting Initiative

Les 3

Globalization Anglo saxon model: -Hire and fire -Corporate governance -Shareholders value

Globalization

Four concepts

Culture

Cultureshock

ent/Businessgame/index.htm. ent/Businessgame/index.htm