Corporate Social Responsibility An introduction to utilising and maximising benefit of Corporate Social Responsibility Zoe Chilton LLB, MSc WMG 02/02/12

Introduction MSc in Engineering Business Management at WMG (grad 2011) Project with a leading F1 team, investigating CSR and writing their corporate policy Currently work for the Motorsport Industry Association

Overview The tricky part.. Definition Different approaches to CSR Corporate Governance Different approaches to CSR CSR and profitability Relevance to industry Employee satisfaction The ‘bottom line’ The future of CSR

So.. Just what does CSR mean?

CSR and Corporate Governance Corporate Social Responsibility Impact the company has on its surroundings Environmental, human, economic Corporate image management Generally has an external focus Corporate Governance Obeying the rules Taking company decisions which won’t harm others Looking after your employees Generally has an internal focus

There is no correct definition… Kotler & Lee A commitment to improve community well-being through discretionary business practices and contributions to corporate resources European Commission A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis Carroll The general belief held by growing numbers of citizens that modern businesses have responsibilities to society that go beyond their obligations to stockholders

How to approach CSR Active or Reactive? What type of sustainability? Environmental Social Economic Stakeholders or shareholders? Appropriateness to your industry and corporate identity If existing definitions don’t fit, make your own!

Different approaches to CSR Examples from Motorsport…

Key contributors to a modern sustainable business Business sustainability Social sustainability Environmental sustainability Economic sustainability

How this translates to activities Social Sustainability: Involvement in education Social welfare campaigns Involvement in the local community Global charitable causes Environmental Sustainability: Reducing carbon footprint Designing for the environment Greening manufacturing processes Economic Sustainability: You are not running a charity! All activities must be economically viable

How CSR contributes to the Bottom Line CSR is highly valued by shareholders and investors as it often goes hand in hand with good Corporate Governance Customers like to see good CSR and may choose your product because of it CSR activities can be used to develop new markets It is easier to recruit and retain the best employees with a good CSR policy

Consider how CSR can be used in these industries Now it’s your turn… Consider how CSR can be used in these industries Consumer electronics Mineral Mining Alcohol retail Consumer goods Petro-chemicals Tobacco

Winners and losers of CSR

The future of CSR? 3rd Generation Responsible competitiveness Zadek’s Generations of Corporate Responsibility – This shows the evolution of CSR within companies and industry sectors 3rd Generation Responsible competitiveness 2nd Generation Strategic Planning Risk Management Learning - Innovation 1st Generation Pain alleviation - Short-term Reputation - localised cost-benefit

…But you don’t have to take CSR too seriously …But you don’t have to take CSR too seriously. Utilise your core competences and engage in an appropriate way.

Thank you.. Any Questions?