Corporate Citizenship: Doing Well by Doing Good

Dr Gill ColemanDirector, New Academy of Business

Bristol, England

The New Academy Independent business school established in 1995

by Anita Roddick of The Body Shop. Mission: to help build a future that is more just,

enterprising and sustainable. Produce educational activities and resources Work with companies, entrepreneurs, educators,

activists, and policy makers on social, ethical and environmental issues in business

Why am I here right now?

A rising agenda concerned with Corporate Citizenship

The move away from a being a solely European/North American debate

From top-down,centralised, policy-led to bottom-up,devolved, activity-based

What is Corporate Citizenship?

“the practice of a corporation’s direct responsibilities – to employees, shareholders, customers, suppliers, and to the communities where it conducts business and serves markets.”

 Laurie Regelbrugge, CIVICUS

“Whatever else corporate social responsibility is about, it is not about charity, neither is it a public relations exercise for enterprise. It is about intelligent self-interest—which also brings benefit to society.”

 Viscount Etienne DavignonChairman of the Societe Generale de Belgique

The UN International Year of the Volunteer

More than 3000 volunteers in 131 countries New Academy/UNV project on ‘Enhancing

Business Community Relations’ in the Philippines, India, Ghana, Nigeria, South Africa and Lebanon

The UN Global Compact

“Let us choose to unite the power of markets with the authority of universal ideals. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations”

Kofi Annan, Secretary-General of the United Nations

Nine Principles covering Human Rights, Labour Standards, Environment, drawing on already-established international conventions

Launched in July 2000 Now more than 500 companies committed,

and regional compacts so far established in the Philippines, Brazil, Latvia and Poland

Companies engage by the CEO writing to the S-G, expressing support and committing to: - publicly express their support - inform stakeholders - incorporate commitment

into Annual Report - provide annual statement

of progress and lessons learned

Meanwhile, new demands on Business

Global marketplace means increased levels of competitiveness: the ‘race to the bottom’

Increased transparency and an active NGO movement

Interconnected economies and economic downturn

Building business advantage

MinimalMinimalist: compliance with legislation

Strategic: Citizenship integrated into business

Discretionary: philanthropic approach

Benetton and the IYV“Colors is a bi-monthly magazine that talks to young people all around the world…In this campaign, Benetton deals with a subject that is typical of its communication strategy and, once again, talks about ‘real people’, touching on important issues for a civilised society.”Company press release

Unilever: the Marine Stewardship Council (MSC)

Company identity:“Relationships are strongest when built on trust”

MSC established 1998 as an independent non-profit organisation

Unilever commitment to source all its fish from sustainable fisheries by 2005

“This safeguards the future of the resource, which makes good commercial sense – it ensures the industry’s investment in fishing and processing assets, and market development is protected”

Pasig: River of Life, PhilippinesPart of the company’s defined Water Sustainability Initiative

Key resource in Metro ManilaStep-by-step measures to clean the river, in conjunction with local partners

Ensuring its own operations do not pollutePartnering with neighbours to help them not to polluteEncouraging wider participation and support for Clean River Zone

UBS, AG “At UBS, corporate social responsibility

means more than just a few discrete practices or occasional gestures motivated by public relations. We believe in proactively managing social issues and in setting the standards that will shape business activity in the future”

Establishing specialist ‘Eco’ products, and enhanced Business Principles for own operations

World Business Council on Sustainable Development

A coalition of 150 international companies united by a shared commitment to sustainable development via the three pillars of economic growth, ecological balance and social progress.

“The business case is also an entrepreneurial position: it looks to the next point on the business curve – the point at which business can be more competitive”

Shifting sources of value:

Physical capital

Human capital

Social capital

Intellectual capital

In practice at the local level: Offering resources – volunteers, equipment,

skills and know-how – to help fulfil social and environmental tasks

Starting small, and starting where you are Combining with those expert in social and

environmental interventions to achieve shared goals – partnerships

Looking for win-win opportunities

Philippines Business for Social Progress Survey Best Practices:

Scholarship programmes for disadvantaged students

Practical technical or vocational training offered to school students at company facilities

Donation of materials for education and community groups

Employee involvement

Possible business benefits Trust, relationships, name, brand, reputation Enhancing company value-base (Collins

and Porras, Built to Last) Increasing employee motivation and

commitment Discovering more about stakeholders,

especially those you don’t understand

Corporate Citizenship opportunities

Ways of getting things done in a complex environment

Helping create a stable situation in which business can operate – shared interests

Opportunity for building internal capacity, learning new ways to operate

Creation of social capital