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Communication of Corporate Social Responsibility he challenge of being seen as a legitimate business by socie ”CBS Responsibility Day” Mette Morsing Center for Corporate Social Responsibility CBSCSR Copenhagen Business School [email protected] September 1, 2009

Communication of Corporate Social Responsibility

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Page 1: Communication of Corporate Social Responsibility

Communication ofCorporate Social Responsibility

-The challenge of being seen as a legitimate business by society

”CBS Responsibility Day”Mette Morsing

Center for Corporate Social Responsibility CBSCSRCopenhagen Business School

[email protected]

September 1, 2009

Page 2: Communication of Corporate Social Responsibility

“The traditional potency of the family, the church, and the local community suddenly seemed dwarfed by the sway of the giant corporations. This momentous shift in the balance of social forces created a crisis of legitimacy for the large corporation.”

Roland Marchand (1998)

The Corporate Search for Legitimacy

Page 3: Communication of Corporate Social Responsibility

”Damned if we do.Damned if we don’t.”

Anita Roddick on CSR communicationin Body Shop’s first non-financial report 1995

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Strategic CSR Communication

- The framing of a CSR rationale - The corporate branding opportunity

-The risk management argument

The Balances of CSR Communication

- From implicit to explicit CSR?- The coupling and decoupling between words and deeds?- Naturalisation, Hedonification and Erotification of CSR ?

Page 5: Communication of Corporate Social Responsibility

Company

Investors

Suppliers

Employees

Customers

Input-model of strategic management:

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Company

Investors

Suppliers

Employees

Customers

Governments Politicalgroups

CommunitiesTrade

associations

Stakeholder Model Strategic Management

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Company

Investors

Employees

Customers

Governments Politicalgroups

CommunitiesTrade

associations

Stakeholder Model Strategic Management

United Nations

2nd and 3rd tierSuppliers

Local authorities

Global norms

Suppliers

Page 8: Communication of Corporate Social Responsibility

”We have created some of the best conditions in the world for private enterprises. Thus, the individual manager also has a

responsibility that the company behaves decently. A responsibility for not cheating to achieve advantages

at the cost of others by smart taxation maneuvres, untaxed labour, underpayment of foreign workers

or by selling too old meat."

– Prime Minister Anders Fogh Rasmussen, New Year’s speach, December 2006

” To me CSR is not a new thing. Many Danish companies have always been active in

taking care of their employees as well as caring about social and environmental consequences.

This not only applies to large companies. Smaller companies also have a responsibility”

- Minister for Economic and Business Affairs Bendt Bendtsen, June 2005

Prime Minister &Minister of Economic and Business Affairs on CSR

Page 9: Communication of Corporate Social Responsibility

                                                                    

Last week at the Business for Social Responsibility (BSR) Conference in New York more than 400 business leaders were asked whether President-elect Barack Obama will have a positive impact on advancing the corporate responsibility agenda.  9 out of 10 respondents believe that the Obama administration will embrace CSR.  Respondents outlined the three most important steps the Obama Administration should take to advance corporate responsibility around the world:1. Promote major investments in renewable energy and carbon capture, storage technologies.  (67%)2. Take measurable steps toward progress on effective, efficient and fair global climate change mitigation strategies.  (53%)3. Initiate cross-sector collaboration among business, government, and civil society.  (42%)-Aneesa Arshad - October 21, 2008A Movement Building at the Center of Money

US President Obama on CSR

Page 10: Communication of Corporate Social Responsibility

•”UN Global Compact”

•”UN PRME: Principles for Management Education”

While few trust business now, Ban Ki-Moon points out the irony that two-thirds of the world's people "think business should be fully engaged in tackling our common problems." Which businesses fit this bill? One answer is the list of Global 100 Most Sustainable Companies in the World announced each year by Corporate Knights and Innovest Strategic Value Advisors. Perhaps predictably, turnover in the list this year was highest amongst financial firms, with 14 (including AIG and Societe Generale) dropping off, and only nine (including Goldman Sachs) replacing them. This year, CSRwire members Procter & Gamble and SAP made the list.

UN General Secretary Kan Ki Moon on CSR

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CSRThe Naturalization of Industry

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CSR and ”the good life

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• Employing more than 5,000 people. • Los Angeles manufacturing facilities.

• Paying workers 12 USD an hour (minimum wage: 6,75 USD)

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Or … development of more subtle implicit Nordic CSR communication ??

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CSR shapes positive reputations

But CSR disclosure evokes scepticism: ”what are you trying to hide?””you could have done much more”

The Challenge of the Self-promoter’s Paradox

Those who do most, often attract most criticism

Page 22: Communication of Corporate Social Responsibility

Strategic CSR Communication

- The framing of a CSR rationale - The corporate branding opportunity

-The risk management argument

The Balances of CSR Communication

- From implicit to explicit CSR?- The coupling and decoupling between words and deeds?

- Trustworthy communication?