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 Today’s MBA students more readily make the connection between good corporate citizenship and stronger public image/reputation Source: Aspen Institute Center for Business Education, October 2007, How do companies benefit from fulfilling their social responsibilities?

Source: PriceWaterhouseCoopers 5th CEO Survey 5-3

 A survey conducted by public relations firm Hill & Knowlton revealed that 75% of Americans considered social responsibility issues when making their investment decisions.  $1 dollar out of every $8 under management in the US is invested in companies considered “socially responsible.” Source: Social Investment Forum, Washington D.C

 68% of CEOs say corporate social responsibility is “vital” to profitability.  19% of CEOs “didn’t know” Source: PriceWaterhouseCoopers 5th CEO Survey

 92% believe that a company with a clear corporate social responsibility policy is better at managing environmental and social risk.  74% agree that companies do not effectively communicate their corporate social responsibility efforts to financial markets. Accordingly, this slows down the development of socially responsible investment. Source: Corporate Social Responsibility Europe and Euronext

 Corporations have a responsibility to all of their stakeholders in all aspects of their business operations.  Businesses account for and measure the actual or potential economic, social and environmental impacts of their decisions.  CSR goes beyond simple philanthropy and is more about corporate behavior than it is about a company's charitable donation budget.  CSR is linked with the principles of Sustainable Development which argue that enterprises should be obliged to make decisions based not only on financial/economic factors (e.g. profits, ROI, dividend payments etc.) but also on the social, environmental and other consequences of their activities.

 1) It's important to give back to the community, people, and environment from which we greatly benefit and profit.  BECAUSE you, as a company can gain a competitive and reputational advantage by demonstrating that you have the best interests of society at large as an integral part of your policy making.  Orlizty, Schmidt, and Rynes found a correlation between social/environmental performance and financial performance.  Example - Starbucks

 BUSINESS ENVY - captures $4 to $5 for a cup of coffee. Growth projections exceed 40,000 stores globally?  Starbucks formed a partnership with Conservation International (CI) in 1998 to encourage environmentally sound coffee- growing practices and to improve farmer livelihoods. The success of their first joint project in Chiapas, Mexico is serving as a model for new and future projects.

 I nvest in people and partners, promote diversity and empowerment  (learning from each other)  Training, education and benefits = loyalty, commitment and dedication  Leadership program  Integrate CSR – building brand loyalty  Community involvement  Reward volunteers  Invest in local schools, education programs, etc.  Environment – shrinking the environmental footprint  Recycling pays  Conservation and Organic (branding)

 Consumers are more socially aware and vote with their pocketbooks  44% of British public believe it's very important that a co. shows a high degree of social responsibility when they buy the co's product.  86% of consumers have a more pos image of a co. that is seen to be doing something that makes the world a better place.  Responsibilities to society, and env and labour practices are seen by the public to be more important than a co's economic contribution.  Corporations face severe punishment (criminal and/or financial) for bad behaviour (Enron and Arthur Andersen, Worldcom, Nike, Union Carbide (Bhopal)  58% of general public across Europe feel that industry and commerce do not pay enough attention to their social and environmental responsibilities.

 The best people are seeking out responsible organizations.  81% of young people have a strong belief in the power of responsible business practice to improve profitability over time.  Corp responsibility is increasingly the key factor in attracting and retaining a talented and diverse work force.  Employee volunteer and community involvement programs create differentiation and improves retention.  Co's see an improvement in media coverage  Large % of volunteers achieve promotions  Absenteeism reduced  Greatly improved customer satisfaction  Corporate responsibility is a key factor in helping companies access capital.  86% of institutional investors x-cross Eur believe that social and env risk management will have a pos impact on a co's long term market value

 Corporate Responsibility opens opportunities to reduce present and future costs to the business and improve competitiveness, market position, and profitability.  Energy efficiency produces large paybacks  Greening the supply chain  Clean production (reduce emissions, recycle and reuse affluents  Carbon credits  CSR is not targeted for just the large companies  Large corporations are requiring their preferred suppliers to subscribe to CSR and best practices.

 Spend some time learning more about CSR  Determine what works best for your organization and culture and initiate and integrate a CSR component into your organization.  Balance the desire for profits with the needs of the community and the environment.  Invest in people.  Be a change agent.  Lead by example and others will follow.

We will be known forever by the tracks we leave. (Dakota)

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