An overview of Corporate Social Responsibility (CSR)

Alexis LindsayDirector, The Centre for Corporate Public Affairs

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Agenda

Defining CSR

The development of CSR in Australia

Current developments and trends

The business drivers

Examples

Internal infrastructure

References

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Defining CSR

Many ‘labels’: corporate social responsibility, corporate community involvement, sustainability, corporate citizenship, cause related marketing, triple bottom line, socially responsible investment

“Sustainable companies have three kinds of responsibility: economic, environmental and social. Corporate social responsibility is an integral part. It is about integrating the issues of the workplace, human rights, the community and the marketplace into core business strategies” - CSR Europe

… the translation of social responsibilities into business practice.

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Development of CSR

First phase: Discretionary sponsorships, cheque-book philanthropy

Second phase: Strategic approach, part of the business case

Third wave: Community involvement; more complex business model; competitive context

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Why does business engage in CSR?

Enhance reputation

Improved community relationships

Stronger stakeholder relationships

Positive impact on employee morale

Important symbol of leadership, company ethos

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Edelman 2003: Sector Trust

42%

44%

47%

38%

55%

59%

36%

36%

38%

40%

42%

43%

45%

48%

51%

65%

66%

66%

30%

42%

54%

54%

51%

58%

0% 20% 40% 60% 80% 100%

Telecomm

Energy

Professional services

Healthcare

Retail financial services

Investment & insurance services

Pharma & drug

Airlines

Automotive

Technology

Consumer packaged goods

Consumer durables

US

Europe

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Edelman brand evaluator 2003: Europe

12%14%16%

21%22%

25%27%28%

30%32%

34%34%

36%37%38%

42%47%

49%51%

62%62%

34%

0% 20% 40% 60% 80% 100%

Monsanto*Citicorp*

Dow Chemical*Pfizer*

McDonaldsHSBC*

Merck*ExxonMobil

Deutsche BankRoyal Dutch/Shell

NikeJohnson & Johnson

UnileverBASF

Coca-ColaFord Motor Company

BayerMicrosoft

OxfamGreenpeace

World Wildlife FundAmnesty International

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Edelman brand evaluator 2003: US

13%16%

25%29%30%

35%36%36%37%

40%41%

45%47%47%

49%52%

54%55%

56%59%

66%69%

0% 20% 40% 60% 80% 100%

HSBC*Oxfam*

Unilever*Royal Dutch/Shell

Deutsche BankExxonMobilMonsanto

BASFCiticorp

Dow ChemicalGreenpeace

AmnestyNike

MerckWorld Wildlife Fund

PfizerBayer

McDonalds

Ford MotorMicrosoftCoca-Cola

Johnson & Johnson

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Current developments and trends

Some best practice insights Located in business objectives Fits corporate competencies, characteristics and

infrastructure Leadership and senior management commitment Grounded in stakeholder relations Engagement of staff CSR/sustainability framework Flexibility in community involvement vehicles Continuous reporting of initiatives

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Examples

The Rio Tinto Aboriginal Foundation

The Smith Family

Westpac

Toyota

DuPont

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Internal infrastructure

Leadership Strategy Vision and values

Governance Structure Accountability Resources

Communication Internal/external stakeholders Leverage required

Engagement Outcomes

Evaluation Research Continuous improvement

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References

The Centre for Corporate Public Affairs; http://www.accpa.com.au/csrnews

Business in the Community; http://www.bitc.org.uk/

Business for Social Responsibility; http://www.csrwire.com/bsr/

Centre for Corporate Citizenship at Boston College; http://www.bc.edu/centers/ccc/index.html