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Presented by
Wayne DunnProfessor of Practice in CSR (McGill University)
President & Founder, CSR Training [email protected]
CEO Breakfast DiscussionOn Corporate Social Responsibility
Sponsored ByZambia Chamber of
Commerce & IndustryLusaka, Zambia
June 7, 2016
Why Me? Who is Wayne?
• Professor of PRACTICE in CSR, McGill University• Saskatchewan Farm Boy• Accidental Academic• 2 seasons diamond drilling (Gold/Uranium)
• 25+ years of practical, global CSR experience• About 100 projects (programs, policies, strategy, relationships, innovation, etc.) Many
very complex (e.g., industry HIV/AIDS strategy in South Africa and Papua New Guinea). Some great successes, at least one social license failure.
• Over 40 countries spanning all continents (urban, rural, indigenous, traditional, etc.)• 15+ years of African experience• Numerous awards (1st private sector winner of World Bank Development
Innovation Award, Stanford Case Study, etc.)• Developed McGill | ISID Executive Program on CSR Strategy &
Management• Trained hundreds of executives, leaders and practitioners in CSR Strategy
and Practice• Consulted across industries, geographies and sectors on CSR, sustainability,
strategy and operations
Outline
• Where business meets society and environment
• The world has changed, and HOW!
• Growing societal expectations
• Business Responses – the 4 eras of CSR
• Multi-sector partnership framework
• Discussion
Don’t get stuck on languageIt is ‘under development’
• Corporate Social Responsibility (CSR)
• Sustainability
• Corporate Responsibility
• Social Responsibility
• Environment, Social and Governance (ESG)
• Shared Value
• Social Investment
• Local content
• Social License
• …… and more …..
Where business meets society and environment
Business
Society
Environment
• Rapidly evolving
• Dynamic
Lots can happen where business meets society and environment
Business
Society
Environment
• Value Creation
• Value Destruction
• Value Preservation
• Opportunities
• Innovation
• Partnerships
• Opposition
• Destruction
Has the World Changed?
1990s• NGOs
• Communications
• National Governments
• Business
• Technology
Today• NGOs
• Communications
• National Governments
• Business
• Technology
Society expects more ANDhas more power to force change
The world has changed
• Isolated world gave more power and influence to large institutions (government, business, etc.)
• More focus on local issues, standards and expectations
• Globalized inter-connected world • Emerging global standards and norms• Increased democratization of power and
influence
• Anywhere is everywhere
Increasing societal expectations and influence
0
50
100
150
200
250
300
1975 1980 1985 1990 1995 2000 2005 2010 2015
Soci
etal
Exp
ecta
tio
ns
& In
flu
ence
Applies to organizations of all types, but especially business
*directionally indicative data derived from SWAG analysis
Social value imperativeapplies across industry, sector & geography
Framework
Plan
?Results?
System
CSR: Throwing Money Era
Policies & Good Intentions
Solving Social Problems
Charity & Philanthropy Era
• CSR is about philanthropy and charity
• Done on the margins of business
• Unrelated to core business activities and operations
• Not necessarily about business or shareholder value
• All about giving back to society, about caring and sharing
•Altruism is the game
Impact & Value Optimization Era
Business
Society
Environment
• Society
• Environment
• Business
• It’s OK to have a strong focus on self-interest
• Selflessness is not sustainable
What’s in it for…
Impact & Value Optimization Era
• All about value alignment• Business
• Society
• Environment
CSR Value Optimization Strategy
Where to start
• Societal Needs?
• Environmental Needs?
• Far too often organizations only look outside to society and environment to plan CSR strategy and programs
• Results• Positive external impacts on society and environment• Disconnect with core business value• Philanthropic/Charity focus• Weak internal business case• Marginalization of CSR team• Not sustainable
CSR Value Optimization Strategy
What about
• Business Needs?
• What are your core business issues• What keeps your CEO awake at night
• What does your CFO worry about
• What are your HR Challenges
• What worries your CTO
• Engineering, Operations, etc.
Business Pain Points
CSR Value Optimization Strategy
• Business issues & needs
• Societal issues & needs
• Environmental issues & needs
Zambia Sugar
• Preferential local procurement
• Smallholder Development
• Support to Education• Wellness, Sports,
Recreation• Water
SAB Miller
“We understand that our profitability depends on healthy communities, growing economies and the responsible use of scarce natural resources. We integrate these issues into our business”• Accelerate growth and social development through our
value chains• Secure shared water resources for our business and
local communities• Create value through reducing waste and carbon
emissions• Support responsible, sustainable use of land for
brewing crops
Walmart
• Supply chain value (external pressures & reduce costs)
• Organic/sustainable (marketing & merchandising)
Social value investments of business
• Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice
Global Development FrameworkCollective Social Responsibility
The Millennium Development Goals (MDGs) are eight international development goals that were officially established following the Millennium Summit of the United Nations in 2000
All 193 United Nations member states and at least 23 international organizations agreed to achieve these goals by the year 2015
General framework for governments, international and multi-lateral agencies, NGOs, etc
Global Development Framework II
Adopted unanimously by the United Nations in a Special Assembly
September 2015
Global development framework elements
• Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice
Notice any similarities?
Global development framework• Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice
Social value investments of business • Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice
Natural Partnerships Unnatural Partners
Increasing mandatory and voluntary compliance
• ICMI - International Cyanide Management Institute (ICMI)
• Conflict Free Gold Standard
• Voluntary Principles on Security and Human Rights
• EITI
• Global Reporting Initiative
• Voluntary Principles
• ICMM Guidelines
• IFC Performance Standards
• Equator Principles
• ILO
• Sustainable Development Goals
• Accountability
• Carbon Disclosure Project
• Many, many more
Global Standards and Norms
Global Development Framework II
Adopted unanimously by the United Nations in a Special Assembly
September 2015
Reporting to the SDGsWaterManagement
Supply Chain EntrepreneurTraining
HealthAwareness
1. Poverty
2. Hunger
3. Health &Wellbeing
4. Education
5. Gender
6. WaterSanitation
7. Affordable, clean Energy
8. Economic growth
9. Industry, innovation, infrastructure
Don’t get stuck on languageIt is ‘under development’
• Corporate Social Responsibility (CSR)
• Sustainability
• Corporate Responsibility
• Social Responsibility
• Environment, Social and Governance (ESG)
• Shared Value
• Social Investment
• Local content
• Social License
• …… and more …..
CSR Value Continuum©
• Helps to understand aggregate of project/corporate CSR activities.
• CSR includes a range of activities from Philanthropy through to synergistic value alignment (and a well-rounded and developed program would have activities along the continuum)
• Continuum of value distribution through to value creation
• Shared Value should be created on all CSR projects, not just those at far right. Level and amount of shared value/value creation changes but all are about value and shared value
Value Distribution
Value Creation
• Education• Health• Poverty alleviation• Gender equality• Environment• Partnerships• Equity & justice
© CSR Training Institute 2013
All Good - All the way
it’s all shared value Every CSR investment and activity
should create value for the company & for one or more stakeholders.
How do you experience these issues
• Consultation (formal/informal, history, structure, FPIC, closure)
• Access to land (who/how approved)
• Benefit sharing (what’s in it for everyone)
• Permits & approvals (who approves? when? how?)
• Environmental monitoring (Who monitors? Trust, Communication, Local Involvement)
Summary• Where business meets
society and environment
• The world has changed, and HOW!
• Growing societal expectations
• Business Responses – the 4 eras of CSR
• Multi-sector partnership framework
• Discussion
Thank you for listeningQuestions & Follow-up
Wayne DunnProfessor of Practice in CSR, McGill UniversityPresident & Founder, CSR Training Institutewayne@csrtraininginstitute.comwww.csrtraininginstitute.com
