School of ManagementSchool of ManagementWarsawWarsaw

November 2007November 2007

Lecturer Sander Hupkes MALecturer Sander Hupkes MA

Corporate Social ResponsibilityCorporate Social Responsibility

Program 1st meeting

• Todays program

• Introduction (lecturer & students)

• The module

• What is CSR? Why CSR?

• Next session

Your lecturer

• Drs. Sander Hupkes (=MA)

• Academic degree in Philosophy (University of Groningen 1987)

• Lecturer University of applied sciences Leeuwarden, Netherlands (since 2003)

• Something more about NHL and my country

Your lecturer

• 10 years trade union

Your lecturer

• 10 years trade union

• Modules: globalization, industrial relations, (business)ethics, CSR

• Age 47

• Married, no children

Program module

• The book: Corporate Social Responsibility (a Dutch approach)

• Documentary on the Brent Spar (Shell)

• Collect information (www) on CSR and CSR reports.

• How to become a social responsible company?

• Assessment

Program module

Today Introduction

Session 2 TV documentary on Brent Spar (Shell versus Greenpeace)

Session 3 Examples of CSR

Session 4 The cultural dimension of CSR

Session 5 Implementing a CSR strategy

Session 6 Evaluation

What does CSR mean?

• Corporate social responsibility

• But what does it mean????????

Responsibility?

• Responsibility = Accountability (answering, reporting)

• What responsibility do enterprises have?

• Four concepts

Responsibility

Four concepts

Responsibility

Minimal responsibility

Increase profits (shareholders)

= efficiency

Whitin the rules of te game (=law)

•Milton Friedman: one and only responsibility. Increase profit whitin the rules of the game (free and open competition, no deception or fraud)

Responsibility

Corporate citizenship

Continuity

All stakeholders

Spirit of the law

Responsibility

Corporate social responsibility

Damage reduction

Triple P

Value based (not law based)

Resposibility

Social activism

Social objectives

Values and norms are the core business

Why CSR?

Because………..

• You must do so (law, public expectations)

• You find it profitable (reputation, marketing, enlightened self-interest)

• You should do so (moral values, idealism)

Why is CSR profitable?

• ???????????????????????

Hapiness

• Richard Layard

Hapiness. Lessons from a New Science (2005)

World database on hapiness

HapinessAVERAGE HAPPINESS IN 95 NATIONS 1995-2005 How much people enjoy their life-as-a-whole on scale 0 to 10

Top/bottom Full list Technical details Cite as

Top/bottom

Top

> 7,7

Middle range

± 6,0

Bottom

<4

Denmark 8,2 Phillipines 6,4 Armenia 3,7

Switzerland 8,1 India 6,2 Ukraine 3,6

Austria 8,0 Iran 6,0 Modova 3,5

Iceland 7,8 Poland 5,9 Zimbabwe 3,3

Finland 7,7 South Korea 5,8 Tanzania 3,2

Marketing

Philip Kotler

1. Production based (price)

2. Product based (price quality)

3. Sales based (persuasion)

4. Marketingconcept (customor = king)

5. Values based sales and marketing (social responsibility)

CSR

1973

Club of Rome

1987

Brundtland

2000

SER

2006

Al Gore

The Dutch approach

• SER Social and Economic Council

• Consultation economy (

• Enterprise = a social activity

• CSR is core business

Les 2?

The Dutch approach

• Enterprise = value creating entity

• Value creation in various dimensions

• CSR cannot be based solely on charity!

• CSR is a varied and complex phenomenon

Enterprise*

• Profit-driven

• Market-driven

• Transaction costs can be saved in partnership arrangements (for a longer period)

• Long-term form of co-operation between various stakeholders

• Bus

ines

s =

a s

ocia

l act

ivity

Enterprise*

• Profit-driven, but the social and economic importance is to create value by using scarce sources in a efficient and effective manner for the production of goods and services wich, by satisfying human needs, contribute to general prosperity.

* The Dutch approach

CSR

Corporate Social responsibility is determined by:

- Focus on public prosperity on the longer term

- Relation with stakeholders and society at large

CSR

The conscious direction of business activities toward creating value in three dimensions for the longer term:- Financial-economic- Ecological- Social

Transparancy and accountability

Balance of power of stakeholders

Triple P

• Beyond the Bottom Line: Putting Social Responsibility to Work for Your Business and the World

Joel Makower (1994)“Companies function best when they merge

their business interests with the interests of customers, employees, neighbours, investors and other groups directly and indirectly affected by their operations”

Triple P

Triple P

Essence of CSR in a nutshell

• Profit: shareholders and social importance: efficient, comparative advantage

• People: employees, neighbours, customors other groups affected

• Planet: nature, environment

Triple P

Ethical investments

Values and norms

Used to be imposed by church and/or government

Nowadays values and norms are discussed in the public arena

Examples• OECD Guidelines• ILO labour standards• UN Global Compact• cleanclothes

Accountability

An enterprise is expected to provide answers to legimate questions

Public dialogue

Corporate codes

Reports on CSR: GRI (Global Reporting Initiative)

Les 3

Globalization

Anglo saxon model:

- Hire and fire

- Corporate governance

- Shareholders value

Globalization

Four concepts

Culture

Culture

Culture

Cultureshock

• http://www.btplc.com/Societyandenvironment/Businessgame/index.htm.