Corporate Social Responsibility – Good Practices and Local Government

Academy of Partner Cities’ Civil Society

August 21st, Ustron

Marcin Grabowski, Ph.D.

Jagiellonian University

Presentation Plan CSR – short characteristic - shareholders

Approaches to CSR

Consumer’s approach to CSR;

CEOs’ approach to CSR

CSR in Germany, UK, China, UAE, US

Benefits to business

Public sector roles

UN Global Compact

CSR institutions in Poland

Good practices

Approaches to CSR

• business works with community to better themselves;

• philanthropy – common approach, but less valuable for the community;

• inclusion of CRS strategy into business strategy of a company

Approaches to CSR

• creation of shared value (CRV) – corporate success and social welfare are interdependent

• business needs a healthy, educated workforce, sustainable resources, adept government

• Michael Porter, Strategy and Society: Competitive Advantage and CSR (Harvard Business Review)

Three schools of thought

Consumers can spend more…

Employees would work for CSR companies…

Respondents would sacrifice for social responsible firm…

Does your workplace employs any social responsible practice?

Top-scoring brands on the CSR perception index

How to be socially responsible?

How to be socially responsible?

CSR in the World

CEO Attitudes

• 93% of CEOs believe that sustainability issues will be critical to the future success of their business.

• 72% of CEOs cite “brand, trust and reputation” as one of the top three factors driving them to take action on sustainability issues. Revenue growth and cost reduction is second with 44%.

• 72% of CEOs see education as the global development issue most critical to address for the future success of their business. Climate change is second with 66%.

• 58% of CEOs identify consumers as the most important stakeholder group that will impact the way they manage societal expectations. Employees were second with 45%.

CEO Attitudes

• 91% of CEOs report that their company will employ new technologies (e.g., renewable energy, energy efficiency, information and communication technologies) to address sustainability issues over the next five years.

• 96% of CEOs believe that sustainability issues should be fully integrated into the strategy and operations of a company (up from 72% in 2007).

• 49% of CEOs cite complexity of implementation across functions as the most significant barrier to implementing an integrated, company-wide approach to sustainability. Competing strategic priorities is second with 48%.

CEO Attitudes

• 88% of CEOs believe that they should be integrating sustainability through their supply chain. Only 54% believe that this has been achieved within their company. An almost identical performance gap is seen for subsidiaries.

• 86% of CEOs see “accurate valuation by investors of sustainability in longterm investments” as important to reaching a tipping point in sustainability.

• 64% of CEOs see the most important role of the UN Global Compact as sharing examples of best and emerging practices on sustainability. Guidance on implementation is second with 51%.

CEO Attitudes

CEO Attitudes

CEO Attitudes

CEO Attitudes

CEO Attitudes

Germany

• Strong traditions of environment and workplace/health safety;

• weak culture of community involvement;• 7% of German citizens trust multinational

corporations;• Social contract in Germany – state-

centred social system provides everything;

• Changes in the public debate about CSR;

GermanyDriving forces and motivations:• Multinational corporations leading the way;• International standards are widely accepted and

integrated into company policy;• The state plays a large role as legislator and

enabler/networking agent;• Business relationships with stakeholders are

influenced by the state (little collaboration of business and civil society);

Issues of prominence:• Climate change/environment;• Corporate governance;• Education.

United Kingdom

• Business role in the society is widely understood;

• CSR is widespread and accepted;

• Most companies – CSR strategies;

• Bigger companies – comprehensive approach, smaller – philanthropy;

• Business-NGO partnerships – widespread;

United Kingdom

Driving forces and motivations:• NGO pressures and partnerships;

Issues of prominence:• Climate change;• Employability;• Poverty reduction;• Education.

China

• Rising awareness of CSR;• Aligned with government policy of

„harmonious society” and „new socialist countryside”;

• Support from organizations promoting CSR in China;

• Importance for competitive advantages and brand building on the international stage;

China

Driving forces and motivations:• Opportunity for competitive advantage

domestically and internationally;• Government policies;• National disaster (2008 earthquake);

Issues of prominence:• Environment,(water, pollution,

urbanization);• Rising income inequality;• Education.

United Arab Emirates

• Traditional culture of charity and collectivism;

• Individuals and companies should contribute to social welfare and safe working conditions;

• Very limited stakeholder engagement;

• Concept of CSR not well known;

United Arab Emirates

Driving forces and motivations:• Islamic culture;• International business;

Issues of prominence:• Unequal welfare distribution;• Population growth;• Environmental damage;• Poor labour practices (low wages).

United States

• Tradition of philanthropic giving;

• Need to business participation – government services decreased;

• Most important aspect – proper approach towards workers;

• Preference to voluntary standards;

• Increasing presence in companies’ strategies and policies;

United StatesDriving forces and motivations:• Corporate traditions and values;• Risk management;• Employees and consumers;• Opportunity for profits through differentiation;• Non-profit pressure and partnerships;• Expectation of future regulations;

Issues of prominence:• Education;• Caring for workers (and retirees);• Health care;• Environment.

Benefits to business• Human Resources – recruitment

process and employers;

• CSR companies make more on human capital;

• Learning and innovation – to be environmentally or socially friendly;

• Risk management – avoidance of unlawful and improper actions in corporate culture;

Benefits to business

• Brand differentiation – on a competitive market being perceived as CSR business is really valuable (PR benefits, social response at cheaper cost);

• License to operate – limited intervention of government;

• Ethical consumerism – we want to be perceived as ethical (bigger awareness of CSR)

Public Sector Roles

Public Sector Roles

• Setting up a special agency to encourage CSR and monitor CSR activities in private and public sectors;

• clarifying expectations of business with regard to CSR and developing ways of measuring their responses to these expectations;

• Leading by examples, e.g. through procurement and raising investors’ awareness;

Public Sector Roles

• Eliminating bribery and corruption, as well as encouraging transparency in relations between local government and business;

• Providing tax benefits and other mechanisms so CSR is seen by companies as benefit rather than the cost (e.g. tax exemptions for companies that build social capital by working with local communities as part of their core business);

Public Sector Roles

• Creating a vision and strategy for CSR, and allowing business to work with the government towards this strategy;

• Focusing particularly on the gaps in the current CSR agenda – particularly, how to work with SMEs and how CSR can be made to work in countries with poor information and lack of capital

CSR in Poland and CEEC- needs

• Counteracting social exclusion;

• Educating the public (social education);

• Promoting entrepreneurial attitudes;

• Quality workplaces;

Activities of a local government

• Review of responsible business initiatives implemented in CEEC countries by both the largest enterprises and the SMEs;

• Identification of internal and external barriers limiting the effectiveness of these initiatives;

• Dialogue with organisations and enterprises which develop social responsibility programmes;

Activities of a local government• Promotion of responsible business rules

among enterprises by cooperation with employers’ organisations, trade unions and academia representatives;

• Support for social promotion campaigns, competitions, rewards, courses and other activities in this area;

• Education on social responsibility and adjusting research and educational priorities to the needs of the labour market and developmental ambitions of the society;

Activities of a local government

• Promotion of knowledge among representatives of the local government about different forms of cooperation with business as a part of social responsibility programmes;

• Creation of a forum for exchanging experiences in CSR implementation – e.g. web-based centre of knowledge and excellence on CSR.

UN Global Compact

• Initiated in 2000;• Encompassed more than 3000

companies in 100 countries, as well as 700 civil society organizations;

• Corporations should include Global Compact rules into management system, strategy, publish its results in yearly report, publicly support and promote Global Compact Initiative;

• In Poland – city of Płock

UN Global Compact Cities - benefits• Being a part of important social and economic

initiative world-wide;• Strengthening positive image of the city,

interested in the most important problems and challenges of the world (sustainable development);

• Enlarging opportunities of city’s development, by inclusion of social dimension into its vision, strategy, practice;

• Cooperation with other UN Global Compact cities, companies, NGOs;

• Cooperation with UN agendas (ILO, UNHCHR), UNED, UNDP, UNIDO);

UN Global Compact CitiesCities interested in membership of the Global Compact Cities

Programme should contact the international secretariat in Melburne (Australia), email: administrator@citiesprogramme.org

They should: • Send to the address of UN Secretary General a letter

expressing their will to participate signed by the mayor (or other high representative of the city);

• Organize a local secretariat (designate certain office);• Organize workshop for representatives of public and

private sectors, as well as civil society to identify ventures most important to all the sectors;

• Pay entrance fee.

CSR Institutions in Poland

• Responsible Business’ Forum – public benefit organization;

• the oldest and the biggest CSR organization in Poland;

• Mission – dissemination of CSR approach in Poland;

• www.odpowiedzialnybiznes.pl

CSR Insitutions in Poland

• Institute for Responsible Business;

• Social entrepreneurship;

• Independent think-tank – practical approach;

• Support for local initiatives – social portal;

• www.iob.org.pl

CSR Institutions in Poland

• CSR Centre Foundation;

• Independent think-tank (2007);

• Research, education, promotion of CSR activities;

• Advisory, seminars;

• www.centrumcsr.pl

CSR Insitutions in Poland

• Academy of the Development of Philanthropy in Poland;

• Development of local communities;

• Activation of the elderly;

• Corporate Social Responsibility;

• www.filantropia.org.pl

GOOD PRACTICES

BT Community Connections

• Each year, BT provides laptops, wireless broadband services and IT equipment to a thousand voluntary and community organisations across the UK;

• targets communities in hard-to-reach and socially deprived areas; thousands of grassroots organisations have been supported;

• the aim of the awards has always been to build capacity

BT Community Connections - Business Benefits

• BTCC fosters positive brand reputation and loyalty - 99% of award winners feel positive about BT and would purchase more BT products

• Creating new customers in new markets, with many BTCC award winners remaining loyal customers - 90% of winners continue their broadband after the first year, bringing in revenue to BT

• Significant level of positive PR, with stories appearing in 130 titles in the six months to March 2010

• With CSR increasingly important in recruiting and retaining employees, 100% of the volunteers involved in BTCC would recommend the scheme to others and 69% of all employees feel proud to work for BT as a result of its CSR projects

BT Community Connections - Social and Community Benefits

• Almost 7,000 groups have been connected to the internet since inception

• 15% of awards are ring-fenced for groups in areas of deprivation, targeting those in most need

• In 2009 it was estimated that 1.2 million individuals benefited from the awards, bringing the total number helped by the scheme to over six million

Linklaters LLP, Linking Work With Learning

• Linklaters recognised an opportunity to raise social mobility by engaging young people from Hackney in working life and working skills;

• Nearly one in three people in Hackney have no qualifications and this contributes to the borough having the seventh lowest employment rate in the UK. With London’s third highest percentage of pupils eligible for free school meals and 55% of primary school pupils and 48% of secondary having a first language other than English, the environment for education is demanding.

• Learning support at primary, secondary and professional education levels.

Linklaters LLP, Linking Work With Learning – Business Impact

• Of the employees engaged in volunteering through LWWL 71% saw a development in their job satisfaction and 76% saw a development in their commitment to the company.

• In 2009 the learning and development department within Linklaters began using LWWL volunteering opportunities as training resources and this is set to expand.

• Across the borough there are 18 Linklaters governors using their skills and expertise to support schools within the community and provide leadership and guidance to them.

• LWWL has been used repeatedly to demonstrate excellence in corporate engagement in education.

Linklaters LLP, Linking Work With Learning – Society Impact

• Through an independent evaluation by the University of Warwick it was clear that participation in LWWL enhanced curriculum provision and has made a marked difference in terms of specific skills development and increased knowledge and understanding.

• In one of the schools involved in the programme there has been a marked change in the expected level of maths and English in the past three years from 30 to 48%.

• Each year 4 schools and 16 students receive work experience, 150 students attend the City Careers Open House, 30 students have one to one mentoring and 600 students attend employability days to name but a few of the projects that are run through LWWL.

RWE npower’s Science, Technology, Engineering & Maths Education Engagement

• inspiring, exciting and enthusing young people about STEM in the modern world, helping them understand it in the context of a business and making lessons relevant to the world of work;

• The STEM programme is delivered over four strands of work; enthuse, power station visits, work experience and involvement in supporting, shaping and influencing Government and national education and STEM related policies and priorities.

• an interactive day of science and engineering related activities within their schools. The young people take on the roles of scientists and engineers for the full day and are supported to develop their skills and knowledge in a fun and interactive way through the series of team challenges.

Business Impact

• Between 2007-09 RWE npower received 38 pieces of positive media coverage for enthuse in regional, consumer, trade and web media. Making npower’s STEM commitment visible is a key driver of the programme.

• Of those employees engaged in STEM programmes 69% are proud to work for npower and 72% would recommend working there to others, compared to 64% in the rest of the company.

• Between 2003-09 Didcot Power Station recruited 35 apprentices from 21 local secondary schools, of which 17 had previously participated in Work Experience placements/Power Station visits.

Society Impact

• Of the pupils that took part in the enthuse programme in 2008/09 their interest in having a STEM career moved from 19% - 79% after the programme was completed. In the 3 month follow up with the pupils 30% believed that the session had helped them with their option choices. Following the enthuse programme 92% teachers agreed that they felt more confident talking to young people about STEM career opportunities.

• In 2009 npower provided 76 Teacher placements at their engineering and power station sites.

• In 2009 npower delivered 82 work experience placements, of which 22% where girls.

UBS, The Bridge Academy• The Bridge Academy operates a fair banding admissions system,

prioritising students living closest to the school. Many students are from a background of significant social and economic deprivation. 49% are eligible for free school meals, >50% come from minority ethnic backgrounds and 40% have special educational needs and/or disabilities.

• UBS and the Academy are working to create an effective and successful school business partnership, in support of the Academy’s vision to create an outstanding school at the centre of its local community. Based on a shared ambition to build a continuous programme, the partnership gives students, Academy staff and UBS employees superb opportunities to learn and work together.

• Existing and appropriate UBS charitable partners, including Inspire, Hidden Art, the Science Museum, Queen Mary University of London, and Into University have been introduced and are now working with the Academy. 

Business Impact

• 1,210 volunteers have been involved since inception and HR have integrated volunteering into training programmes.

• Volunteer feedback shows that of those involved in volunteering 88% developed teamworking skills and 97% improved their level of job satisfaction.

• Through the partnership with the Bridge Academy UBS has strengthened its relationships with clients who are themselves involved with Academies, and leveraged further support for the academy from a range of contacts.

Society Impact• 580 students have benefitted from the support of over 1,200 UBS

volunteers• Through the Intervention Programme, which involves UBS

volunteers working with students on English and Maths, 53% of students working below their target grades in maths have seen an improvement of at least one sub level and of those working below their target in English 64% have now reached this level.

• Through partner, client and stakeholder relationships UBS has facilitated numerous opportunities for students from City Sings at the Barbican to the Hackney Maths Challenge at Queen Mary.

• By 2013 1,150 local young people will be able to access excellent educational opportunities at the Bridge Academy and the local community will also have benefited from the strong and supportive community relationships developed by the Academy.

Conclusions• Intersectoral approach – the most attractive;• Bigger role of consumers in business

strategies – better understanding of CEOs• Different countries – different regions –

different organizational cultures and problems;

• CSR – benefits for business and for local communities – try to identify basic needs;

• Prepare strategies, lead by example – show that CSR matters in your community;

Questions:martin.grabowski@gmail.com

THANK YOU