1. Montreal CSR International Workshop 2006 UQAM Corporate Social Responsibility: Examining Foundations of CSR in Europe and the US Dr. Jennifer (Jenn) J. Griffin Strategic Management and Public Policy Dept. Program Director, Global Stakeholder Strategies George Washington University jgriffin@gwu.edu

2. Montreal CSR International Workshop 2006 UQAM Corporate Social Responsibility Source: GAO, 2005 Business for Social Responsibility (BSR) European Commission The World Bank “Achieving commercial success in ways that honor ethical values, and respect people, communities, and the natural environment.” “A concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis.” “The commitment of business to contribute to sustainable economic development—working with employees, their families, the local community and society at large to improve the quality of life in ways that are both good for business and good for development.”

3. Montreal CSR International Workshop 2006 UQAM Corporate Social Responsibility Communities Corp. Comm’ty Relations Strategic Philanthropy Mindfully Partnering Community Investment The Natural Environment Triple Bottom Line Sustainable Development NIMBY Regulations Public Policy UN Global Compact ISO 26000 UK DTI/OFR SA 8000 AA 1000 GRI Business Corporate Governance Shareholder Returns Employees -Diversity -Dignity -Employer of Choice CSR

4. Montreal CSR International Workshop 2006 UQAM Business and Society Historical View Historical View Transitional View Transitional View Current View Current View Key Concept Business-Society as separate constructs Business-Society with shared interests and shared outcomes (2-factor model) Business-Society as distinct and overlapping Research & Theory Business purpose is shareholder maximization (Friedman, 1970) Society/Government as control or involvement opportunity (Epstein, 1969) Business - Society as interpenetrating systems (Preston & Post, 1978) Business: Composed of principles, processes and outcomes (Wood, 1991) Obligations of Business within Society Stakeholder Relations (Nasi, 1979; Freeman, 1984) 2 x 2 model: Shared Interests (Narrow/ Broad) x Shared Outcomes (Narrow/ Broad) Our Focus

5. Montreal CSR International Workshop 2006 UQAM Business and Society: Definitions and Characteristics Employer of Choice Safe Product Extended Enterprise Direct and Indirect Government Explicitly Community Partnering BUSINESS Beliefs towards shareholders and multiple stakeholders BUSINESS Beliefs towards shareholders and multiple stakeholders NARROW SHARED INTERESTS NARROW SHARED INTERESTS BROAD SHARED INTERESTS BROAD SHARED INTERESTS SOCIETY Impacts and Outcomes SOCIETY Impacts and Outcomes NARROW OUTCOMES NARROW OUTCOMES BROAD OUTCOMES BROAD OUTCOMES Workplace Safety Legal compliance Customers Satisfied Peace through Commerce Human Dignity / Human Rights Poverty Alleviation

6. Montreal CSR International Workshop 2006 UQAM Narrow Shared Interests/ Narrow Outcomes (“Local Local Local”) Product/Service Oriented Bottom Line Focus Tightly Aligned Initiatives, if any Narrow Shared Interests/ Broad Outcomes (“Building Infrastructure”) Local Capacity Building Housing, Local infrastructure Public-Private Partnerships Broad Shared Interests/ Narrow Outcomes (“FDI”) Unfamiliarity Limited Initiatives Broad Shared Interests/ Broad Outcomes (“Extended Enterprise”) Multiplier Effects Civic Engagement Business-Society: A 2-Factor Model Narrow Shared Interests Narrow OutcomesBroad Outcomes Broad Shared Interests Adapted from Derry et al., 2006

7. Montreal CSR International Workshop 2006 UQAM Extended Enterprise: Unilever Indonesia Total Jobs Created (FTE): 300,765; Value Generated: US$ 463 MM; Tax paid: US$ 170 MM Source: Adapted from Jackson Clay: Oxfam-Novib-Unilever Joint Research 2005 81,515 jobs $27 million value added 24,000 jobs $74 million value added 7,069 jobs $212 million value added 21,860 jobs $39 million value added 166,320 jobs $111 million value added

8. Montreal CSR International Workshop 2006 UQAM Benefits of Broad Shared Interests and Broad Outcomes Sustainable Supply of Raw Materials  Domestic Sourcing  Limited Currency Risks  Reduced repatriation of Profits Capacity Building  Letters of Reference in lieu of collateral  Micro - financing  Distribution / Marketing Skills Transfer  Reporting Standards Support Stable Operating Environment Build Trust and Reduce Transaction Costs