1. Integration Sustainability into every day business processes RESPONSE project Kyiv June 6th 2008 Professor Peter Neergaard Department of Operations Management Copenhagen Business School

2. What is integrating CSR? IT is not - philanthropic - reporting on CSR/projects - not an add on But it is - making CSR a part of every day decision making Part of all disciplines

3. About the survey Web-based survey administered by the CBS of randomly selected 100+ managers in 8 companies Organization level: replicate interview protocol across levels/contexts Individual level: study personal values and psychological traits Answers from app. 1100 managers Scale 1-5 1= Strongly disagree, 5 strongly agree Peter Neergaard CBS

4. About the survey CompanyNumber of responses Response rate Nat. resources #312732% Food #113943% Chemical #14277% Industrial #215177% Chemical #319928% Pharma #211425% Energy #118768% Nat.Resources #114943%

5. Information in the survey Responsibilities toward society Reasons for CSR Knowledge and CSR CSR Practices Reporting, rewards and recognition Benchmarking CSR performance Experiences and expectations Various background variables: Age, tenure, nationality, gender, position, education, etc. Peter Neergaard CBS

6. Conclusions Need to broaden the view of corporate responsibilities at middle management level Need to upgrade education in CSR- issues Need to integrate CSR measures further in into performance assessments and reviews. Need to broaden focus on stakeholders Need to find ways of collaborating with NGOs

7. ”Our responsibility towards society is to.. Peter Neergaard CBS

8. Responsibilities According to the managers, companies’ main responsibilities' are: The provision of products Be responsive to affected groups Compliance with laws and regulation among the top 3 responsibilities in 75% of the companies. Peter Neergaard CBS

9. Differences between companies “ be a company where people like to work” Scandinavian companies ”maximize the profits for the shareholders” American company ”facilitate the access to our products/ services to everyone who needs them, irrespectively of their social and economic conditions.” Pharma company Could be explained by culture and industry Peter Neergaard CBS

10. My knowledge of CSR comes from.. Peter Neergaard CBS

11. Knowledge about CSR Main sources of knowledge are External communication Personal interest in the subject Perhaps surprisingly – training programs are not perceived to be very important Only exception is Pharma #2 Influence of e-learning program Peter Neergaard CBS

12. Are any of the following issues recognized by superiors in your performance assessment?

13. What is recognized? Customer/Client relationships Respect of ethical principles/Code of Conduct Occupational Health and Safety Environment Peter Neergaard CBS

14. Are any of the following issues financially rewarded as part of your performance review? Peter Neergaard CBS

15. What is rewarded? Customer/Client relationships Occupational Health and Safety Especially natural resources Environment Natural resources and energy Respect for ethical principles/Code of Conduct Pharma Peter Neergaard CBS

16. Recognition and Rewards

17. Large gap between what is recognized and what is rewarded Respect of ethical principles/Code of Conduct App. 80% recognition, less than 40% rewarded Traditional issues rewarded most frequently Percentage of managers actually rewarded on CSR issues is not high Peter Neergaard CBS

18. Influence of stakeholders Peter Neergaard CBS

19. Stakeholders The stakeholders perceived to be most influential are the ”traditional stakeholders” Employees Shareholders Direct customers Consumers Communities, social pressure groups and media are not seen as influential

20. Peter Neergaard CBS Experiences and Expectations

21. Future of CSR Managers believe that concerns about CSR have increased over the past 3 years Managers believe that the importance of CSR will increase in the future CSR is here to stay Peter Neergaard CBS

22. Some important findings 1.Compliance is still a powerful explanation 2.Do no harm is still a prevailed perception 3.CSR-knowledge is still based on personal interest 4.CSR- measures are still not integrated in recognition and reward systems 5.Stakeholders are still the traditional one 6.Collaboration with NGO is still relatively seldom

23. The way ahead Need to broaden the view of corporate responsibilities at middle management level Need to upgrade education in CSR-issues Need to integrate CSR measures further in into performance assessments and reviews. Need to broaden focus on stakeholders Need to find ways of collaborating with NGOs Thank you for your attention Peter Neergaard, CBS

24. “Our responsibility towards society is… Total respondents 1098 Peter Neergaard CBS