“Business as ususal”? CSR & Security. Economic factors Globalization: Globalization: Increase in number, range, speed, and awawreness of connections.Increase.

““Business as ususal”?Business as ususal”?

CSR & SecurityCSR & Security

Economic factorsEconomic factors Globalization:Globalization:

• Increase in number, range, speed, and awawreness of Increase in number, range, speed, and awawreness of connections. connections.

• Increased integration and interdependenceIncreased integration and interdependence Approximately 1/3 of the world´s population lives Approximately 1/3 of the world´s population lives

on less than $ 2 / day.on less than $ 2 / day.• Between 1990-2003 half of all armed conflicts took place Between 1990-2003 half of all armed conflicts took place

in poor countries in poor countries New economic order due to considerable New economic order due to considerable

economic progress outside the “West”? economic progress outside the “West”?

==New challenges and opportunities for New challenges and opportunities for businessesesbusinesseses

Social and cultural factorsSocial and cultural factors

Ratio between the young and productive and the old Ratio between the young and productive and the old and retired is diminishing.and retired is diminishing.

UrbanisationUrbanisation The “milennial generation” sees a connection between The “milennial generation” sees a connection between

their personal values and a company´s values. their personal values and a company´s values. Increasing weight er relevance of NGOsIncreasing weight er relevance of NGOs Shareholders have become more concerned about Shareholders have become more concerned about

social issues & the environment social issues & the environment

== New challenges and opportunities for New challenges and opportunities for businessesesbusinesseses

The environmentThe environment World´s population went from 4.8 billion in 1985 to population went from 4.8 billion in 1985 to

6.6 billion in 2008. Could reach 9 billion in 2050.6.6 billion in 2008. Could reach 9 billion in 2050. Environmental threats due to human impact: : Environmental threats due to human impact: :

• Carbon dioxide has increased by 30% in the last 20 years.Carbon dioxide has increased by 30% in the last 20 years. Environmental degradationEnvironmental degradation

• The number of wild animals has decreased by 40% the last The number of wild animals has decreased by 40% the last two decades. two decades.

Unsustainable use of resourcesUnsustainable use of resources• At current rate fish populations will have collapsed in 2048At current rate fish populations will have collapsed in 2048• Overshoot day in 2008 on September 25Overshoot day in 2008 on September 25

= = New challenges and opportunities for New challenges and opportunities for businessesesbusinesseses

Impact of businessesImpact of businesses The economic power of companies equals and even exceeds The economic power of companies equals and even exceeds

economic power of Stateseconomic power of States• UN estimated cost of reducing AIDS in Africa are $ 15 billion. Exxon´s profit in UN estimated cost of reducing AIDS in Africa are $ 15 billion. Exxon´s profit in

the year 2000 were 16.9$ billion. KB Banki in 2006 were $1,3 billion. the year 2000 were 16.9$ billion. KB Banki in 2006 were $1,3 billion. • It will cost $300 billion to eliminate extreme poverty – less than 2% of the It will cost $300 billion to eliminate extreme poverty – less than 2% of the

income of the richest part of the world (10%).income of the richest part of the world (10%). Companies have knowledge, skills and technologies that can Companies have knowledge, skills and technologies that can

benefit humans and the environment.benefit humans and the environment. Businesses are in close proximity to the matters at hand.Businesses are in close proximity to the matters at hand. All businesses impact their immediate environment.All businesses impact their immediate environment. Most businesses enjoy long term benefit from from stable Most businesses enjoy long term benefit from from stable

societies, sustainable use of resources and clean environment. societies, sustainable use of resources and clean environment.

What is CSRWhat is CSR

CSR: “A concept whereby companies CSR: “A concept whereby companies integrate social and environmental integrate social and environmental concerns in their business operations concerns in their business operations and in their interaction with their and in their interaction with their stakeholders on a voluntary basis.”stakeholders on a voluntary basis.”• EU Commission Green Paper 2001 “Promoting EU Commission Green Paper 2001 “Promoting

a European Framew ork for Corporate a European Framew ork for Corporate Social Social Responsibility”, COM(2001)366 FinalResponsibility”, COM(2001)366 Final

Adapted from Monsanto & Natural StepAdapted from Monsanto & Natural Step

Media & NGOsMedia & NGOs

TimeTime

OperatingOperating

spacespace

CompetitorCompetitoractivityactivity NewNew

technologiestechnologies

CustomerCustomerexpectationsexpectations

Regulation pressureRegulation pressure

InvestorInvestorpressurepressure

Employee Employee expectationsexpectations

CompetitorCompetitor

CompetitorCompetitor

““radarradar””

““radarradar””

Public procurement/Public procurement/B2B purchasing policiesB2B purchasing policies

CSR = SD radar for survival & successCSR = SD radar for survival & success

Conflict dynamicsConflict dynamics

Companies can contribute to creating a conflictCompanies can contribute to creating a conflict Companies can impact existing conflict or social Companies can impact existing conflict or social

tensionstensions Part of the mechanisms relevant to armed Part of the mechanisms relevant to armed

conflictconflict Can contribute to building the peaceCan contribute to building the peace

Managing conflict dyamicsManaging conflict dyamics

ComplianceCompliance

Targeted sanctions Targeted sanctions Kimberley processKimberley process Publish What You PayPublish What You Pay UK Extractive Industries Transparency UK Extractive Industries Transparency

InitiativeInitiative Voluntary Principles on Security and Voluntary Principles on Security and

Human RightsHuman Rights

CSR strategic approachesCSR strategic approaches

““Safe”: Risk management focusSafe”: Risk management focus Public Relations, aims at reducing, avoiding or taking control of Public Relations, aims at reducing, avoiding or taking control of

risksrisks

““Credible”: Reputation focusCredible”: Reputation focus Defensive: communication with concerned stakeholdersDefensive: communication with concerned stakeholders Offensive: efforts to develop token products/ servicesOffensive: efforts to develop token products/ services

““Efficient”: Process improvement focusEfficient”: Process improvement focus Organization/ operations: Sustainable Management SystemsOrganization/ operations: Sustainable Management Systems Product: Life-cycle AssessmentProduct: Life-cycle Assessment

CSR strategic approaches cntCSR strategic approaches cnt

““Innovative”: Differentiation focusInnovative”: Differentiation focus Integration of sustainable-qualities into product/service offersIntegration of sustainable-qualities into product/service offers

““Transformative”: Societal development focusTransformative”: Societal development focus New market development, consumer education, shifts in New market development, consumer education, shifts in

consumption patterns, structural consumption patterns, structural changechange e.g.: Creating or joining sustainability-orientated industry e.g.: Creating or joining sustainability-orientated industry

standards and product labels (GRI, MSC, FSC, Fairtrade) and standards and product labels (GRI, MSC, FSC, Fairtrade) and political initiatives (UNEP, MDG)political initiatives (UNEP, MDG)

Why CSR mattersWhy CSR matters

Samfélagsleg staðaSamfélagsleg staða::Almenningur, Almenningur,

yfirvöld, félagasamtök, yfirvöld, félagasamtök, fjölmiðlar fjölmiðlar

Menning fyrirtækisMenning fyrirtækis::Hugarfar Hugarfar

starfmanna, starfmanna, virðing, þáttaka, virðing, þáttaka,

sanngirni, heiðarleikisanngirni, heiðarleiki

Áhættustjórnun:Áhættustjórnun: Hagaðilar, Hagaðilar,

nýjar kröfur, nýjar kröfur, fyrirbyggjandifyrirbyggjandi

Markaðsstaða:Markaðsstaða:Orðstýr, nafn, Orðstýr, nafn,

vörumerki, vörumerki, sérstaðasérstaða, , sögursögur

CSRCSRSiðferðislega Siðferðislega rétt: rétt:

Byggir betri Byggir betri markaðimarkaði

Some major shiftsSome major shifts

From Energy Intensive to...From Energy Intensive to... Climate NeutralityClimate Neutrality Carbon NegativeCarbon Negative

From Conspicuous Consumption to...From Conspicuous Consumption to... Conscientious ConsumptionConscientious Consumption Conscious livingConscious living

From 2 Billion to...From 2 Billion to... 6 Billion world/ customers6 Billion world/ customers

From “the business of business is business” to...From “the business of business is business” to... Corporate Social ResponsibilityCorporate Social Responsibility Sustainable BSustainable B

Strategies?Strategies?