What is CSR to you?

Views on Leadership in the 21st Century!

Is life a bitter sweet symphony? The business case for change and leadership tool to make a difference.

Pathways to Rural Leadership workshop facilitated by:

What is CSR to you?

Definitions

Sustainability “Development which meets the needs of the present without compromising

the abilities of future generations to meet their own needs”. Our Common Future The Brundtland Report United

Nations World Commission on Environment and Development, 1987

Corporate Social Responsibility “The ethical behaviour of a company towards society. …management acting

responsibly in its relationship with other stakeholders who have a legitimate interest in the business AND OR

CSR is the continuing commitment by business to behave ethically and to contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at

large”.World Business Council for Sustainable Development

Definitions cont’d

“To stimulate innovative ways of thinking and to support implementation of change in order to achieve growth and wealth

creation for all, whilst meeting the needs of environmental and social renewal through sustainable global business and ethical trading”.

Sharon Jackson – Carlton CSR / Associate Faculty Cranfield University UK

Some say the dynamic behind CSR is that everyone wants to make money and everyone wants to go to heaven. CSR is an attempt to

reconcile these seemingly conflicting desires.

David Grayson – Director Business in the Community UK

CSR is a journey…

Is CSR about how a company spends it’s money or how it makes it’s money?

What is the real cost of doing business?

And who bears that cost?

The key to success – build it in, don’t bolt it on!

… “And that’s the key … the business strategy. A contract between the corporation and civil society founded on principles of trust with integrity delivered through integrated business strategy – that’s a real CSR that will make a difference. Not just philanthropy; not just volunteering; not just compliance; not just good community activity; not even sustainable environmental practices at their best or human rights evident in employment and customer service…”

Lord Michael Hastings: Helped establish the CSR Academy in UK -

Former Head BBC’s CSR division now Global Head Corporate Citizenship

KPMG

What is the business case for CSR?

We are global citizens Growing lack of trust in business Increased social and environmental problems – too big just for

governments Our love of stuff at any price Employees struggling with work life balance Climate change Markets growing faster than social and political structures Scale of business (Now more corporations than countries in the top

100 economies) Technology - growth of the internet and available data Increase of NGOs (non-governmental organisations) Need for values based decision making And there is an awakening that we are all interconnected and part of

the whole…that what we do affects others.

Staff shortages – unhappy workers

For the decade between 2020 and 2030, the labour market in Australia will shrink from the 170 000 new employees per annum we enjoy today, down to a mere 13,000 per annum. If we do not find a way to engage and reward employees, business will struggle to perform.

Are companies most important assets safe?

Is CSR an Influence in Choice of Employer?

77%

23%

yes

no

Source: Rosemary Sainty CAREER ETHICS

Study: Does an organisations Corporate Social Responsibility Practices and reputation ie environmental impact/ community or social impact/ workplace practices / business conduct / ethical governance influence your interest in applying to them.

CSR as an influencer of Employer of Choice across disciplines

0

10

20

30

40

50

60

70

80

90

100

% Yes CSR Influences Employer Choice

Arts n=21

Commerce/Eco n=48

Post grad Commerce n =13

Science (incl IT) n=24

Engineering n=11

Law n=9

Med/Pharm/Health n=9

The economics of climate change…

Currently 1% of GDP

If not action, could disrupt economic and social activity on a similar scale to that of the great wars and the economic depression of the first half of the 20th century that would be difficult or impossible to reverse.

If no change – Stern suggests could cost between 5 – 20% OF THE GLOBAL GDP NOW AND FOR EVER. CSIRO suggest between 3 – 15%.

Sydney Hail Storms - 1999

Photo: Fairfax Photos

Cyclone Larry - 2006

Photo: Cameron Laird

Photo: Cameron Laird

If global warming continues, we can expect catastrophic consequences

Deaths Heat waves and intensity

Disease Drought and wildfires

More than a million species worldwide could be driven to

extinction by 2050.

“There is no doubt we can solve this problem and we must. Global warming is not just an environmental issue – it’s now a moral issue.”

Al Gore – Former US Vice-President

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Old Technology

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OldHabits

Predictable Consequences

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New Technology

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OldHabits

Altered Consequences

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New Technology

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NewHabits

DramaticallyAltered

Consequences

If we keep doing the same old things the same old way – what results will we achieve?

Today’s leaders must be values driven

knowing that we must dramatically change what we do and how we do it to sustain ourselves, our businesses, our societies and future generations.

What are the triggers?And who is responsible?

CSR aims to deliver bottom-line benefits and value creation through responsible business practice

CSR is not cheque book philanthropy plus PR

Why CSR is critical for today’s leaders?

Corporate Social Responsibility (CSR) describes a company's approach to managing their business processes to maximise their positive impact on

stakeholders both within the company and in wider society

Corporate Social Responsibility (CSR) describes a company's approach to managing their business processes to maximise their positive impact on

stakeholders both within the company and in wider society

– Aligned with corporate ambition

– Integrated with business processes

– A reflection of employee & corporate values.

“ 70% of global CEOs agree that social responsibility is vital for the profitability of any company ” - PWC/World Economic Forum

“ 70% of global CEOs agree that social responsibility is vital for the profitability of any company ” - PWC/World Economic Forum

CommunityCommunity WorkplaceWorkplaceEnvironmentEnvironment MarketplaceMarketplace

CSR CSR

CSR at its best is:

CSR helps companies understand the issues…

ENGAGE

Basic SkillsRace

GenderHealth

Supply Chain HomelessnessEducation

RuralRegeneration

SME engagementSocial Justice

BiodiversityClimate Change

Waste Management

Collaborative Business Action on…

Workplace Marketplace Community Environment

Benefits of CSR

• Enhance reputation and brand equity.

• Risk profile and risk management.

• Ability to attract, motivate and retain talented employees.

• Effectiveness at learning and innovation in complex and dynamic

environments.

• Investor relations and access to capital (especially the growing socially

responsible investment community).

• Competitiveness, customer loyalty and market positioning.

• Operational efficiency and improved product development.

• Ability to influence regulation, public opinion and confidence.

• Impacts the bottom line.

“If bosses make their staff feel really valued and cared about – they wouldn’t have to worry about their businesses – their committed staff would make it happen”

Geoff Morgan – Talent 2 talking about the benefits of being an

Employer of Choice.

“If you want to build a business to last, you will take Corporate Social Responsibility seriously. Talented employees demand it, informed customers expect it, long-term investors will required it. Embedded in the business, CSR can be a source of creativity and innovation, leading to new products and services, access to new or under-serviced markets, or even new business models.

Smart businesses know they will not have all the CSR answers themselves. They will learn from each other and from stakeholders in business”.

David Grayson OBE,CBEDirector, Business in the Community (UK)Principle BLU and Strategic Rail Authority

Co-Founder Project North East. Co-Author Every Body’s Business and Corporate Social Opportunity

Director International Centre for CSR, Cranfield

CSR = CSO

Employer of Choice Introduction of new health and well-being businesses

$80 billion franchise industry in Aust Toyoto – new hybrid technology Westpac saved:

- $50 million in employee turnover by the introduction of

flexible leave policies

- $2.5m in lost injury time

- Cut green house emissions by 35% ANZ’s family friendly policies has resulted in 93% of their

staff return from parental leave saving about $3m in terms of recruitment and retraining.

Doing well by doing good…

Introduction of new health and well-being businesses $80 billion franchise industry in Aust

OPSM - Employer of Choice Toyoto – new hybrid technology Westpac saved:

- $50 million in employee turnover by the introduction of

flexible leave policies in 1st year IAG – reduced risk and helped the community

Corporate Social Opportunity at it’s best. Interface case study.

Interface has a goal is to be the first fully sustainable corporation, with a zero foot print by 2020 but to reach it’s goal, Interface, which operates in 100 countries with more than 5200 staff, had to completely rethink its business philosophy and redesign its entire production systems and processes globally.

Business led coalitions promoting responsible business or CSR

In over 90 countries – eg BITC; CSR Europe; LCF.

Thousands more multi-stakeholder groups.

In Australia, we have MOSS.

Stakeholder groups include: St James Ethic Centre –

CRI; Melb Cares; ABCN; CEO Challenge; Business

Leaders Forum on Sustainable Development; PMBCP.

Early days – and we have a long way to go…but there is

leadership and the focus of business is shifting from just

providing a dividend to shareholders to their collective

stakeholders.

MOSS – Models of Success & Sustainability

Delivers new models for how business operate which enhances company values, focus and reason for being.

Creates leaders with new integrity, new vision of what is possible.

Changes and upgrades the frequency of the strongest economic centres and power brokers.

Delivers deep and meaningful engagement with communities to problem solve, build capacity and deliver real conservation where all live in harmony.

Runs regular networking and educational events.

We invite you to get involved.

We need to talk to people at all stages of the change process

(The Trans-Theoretical Model of change underpins our approach)

Adapted from Prochaska, Norcross and DiClemente (1994) Changing for good. New York, NY: Avon Books.

Precontemplation“not interested in change”

Permanent ExitNew behaviours become part of

“everyday habits”

RelapseSlipping back into

old behaviours

ContemplationThinking about change.

Feeling ambivalent

PreparationTesting the water

ActionSerious attempt to change

MaintenanceSustaining new life-

style or habits

Awareness & education spark thoughts about changing but pros and cons prevent action.

Start to change: 10-20% of people are in action mode. Level of support will affect change outcome.

Creating a new habit is difficult: we need reinforcement and reward to sustain the new behaviour

Getting ready to change: researching options, talking to others about how to do it.

Embedding new habits: Societal regulatory changes can provide support to embed the new habit.

Relapse is common: lack of support can lead us to revert to old habits.

Zero Footprint Week: 9-15 Sept 07 A different theme each day

Sunday

Launch

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Office Farm School Holiday Home Garden

Travel and transport

Energy efficiency

Innovation and redesign

Greatest challenges

Myopia – short sightedness – lack of foresight by individuals, governments, NGO’s and corporations. To much focus on short term results as opposed to long term sustainability.

Not knowing where to start. Bolt on as opposed to built in. Organisations thinking about CSR as a do good activity

as opposed to strategy inherent in sustainable business. Educating the SME market. Companies trying to decide whether to report or not.

Many now reporting bi-annually. Decision to go public or not to go public with results.

Prerequisites

Professor Jerry Porras – Stanford University (Author “Successful Habits of Visionary Companies suggests they all have 1 thing in common….B-HAGS

Innovation - new ways of thinking to effect positive change

Will and tenacity to make the hard decisions, investments and sacrifices

B-HAG

If time and money were not an issue – what could you do to make a difference?

B-HAG

If time and money were not an issue, what could you do to lead your local community?

B-HAG

If time and money were not an issue, what could you do to lead big business?

B-HAG

If time and money were not an issue, how would you change the federal government?

B-HAG

If time and money were not an issue, how would you like to change in the world?

What might the world look like?

How do you eat an elephant?

How can you contribute to making the social responsibility movement louder, more powerful more vibrant?

Be the change you want to see in the world. Sign up today!

Leadership is up to us all…

Never doubt that a small group of thoughtful committed people can change the world; indeed it is the only thing that ever has.

Margaret Mead

"If you think you're too small or insignificant to make a difference, you've obviously never slept with a mosquito" Anita Roddick - Founder of The Body Shop