Corporate Social Responsibility
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Corporate Social Responsibility
- 1. Corporate Social Responsibility THE RENEWED ERA Sondra Lintelmann-Dellaripa Director Corporate and Foundation Relations Connecticut Children's Medical Center Robert Nolan Corporate Relations Officer Connecticut Children’s Medical Center April 3 rd , 2005 AFP Conference
- 3. “ The business of business is to make money for its shareholders” Milton Friedman, Economist Do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no they do not. Interview of Milton Friedman with John McClaughry, contributing editor of Business and Society Review, on the topic of corporate social responsibility .
- 12. In a study done by Boston College and the US Chamber of Commerce, leading-edge corporations indicate CSR has several features: Very Important Important Operating with ethical business practices 87% 11% Treating employees well 85% 14% Making a profit, paying taxes, and providing jobs 82% 13% Providing safe and reliable products/services 81% 17% Having a good environmental record 57% 33% Working to improve conditions in the community 50% 34%
- 24. Each level provides more direct and concrete benefit to the corporation’s CSR strategy and to the non profit’s mission. Chart created by Bradley K. Googins, Ph.D. Executive Director The Center for Corporate Citizenship at Boston College Corporate/NPO Alliance Continuum
- 25. Alliance Examples “ Corporate citizenship is not a luxury – but it is up to individual companies to decide how to be socially engaged.” P.B. Watts Chairman - Royal Dutch/Shell Group
- 32. Business and society are interdependent and we must ensure, through mutual understanding and responsible behavior, that the role of business in building a better future is recognized and encouraged. - WBCSD, 2002
Hinweis der Redaktion
- One comparison of CSR to Philanthropy particularly pleased me: CSR refers to how the company earns- reputation, market share, value- and Corporate Philanthropy now refers to how they spend.
- What you do, how you do it and when and what you say. Corporate Social Responsibility (CSR) is the alignment of business operations with social values. CSR consists of integrating the interests of stakeholders - all those affected by a company's conduct - into the company's business policies and actions. CSR focuses on the social, environmental, and financial success of a company - the so-called triple bottom line - with the goal being to positively impact society while achieving business success. Corporate Social Responsibility embraces two main concepts - accountability and transparency at its heart CSR sounds a lot like the definition of strategic corporate philanthropy that we've been using for many years: doing good for both the company and for society. What, then, is the difference between the two? Corporate Social Responsibility embraces two main concepts not found in traditional strategic philanthropy - accountability and transparency.
- What you do, how you do it and when and what you say. Corporate Social Responsibility (CSR) is the alignment of business operations with social values. CSR consists of integrating the interests of stakeholders - all those affected by a company's conduct - into the company's business policies and actions. CSR focuses on the social, environmental, and financial success of a company - the so-called triple bottom line - with the goal being to positively impact society while achieving business success. Corporate Social Responsibility embraces two main concepts - accountability and transparency at its heart CSR sounds a lot like the definition of strategic corporate philanthropy that we've been using for many years: doing good for both the company and for society. What, then, is the difference between the two? Corporate Social Responsibility embraces two main concepts not found in traditional strategic philanthropy - accountability and transparency.
- Corporate Social Responsibility most often encompasses a comprehensive set of: policies practices programs that are integrated throughout the company into business operations supply chains decision-making processes and includes responsibility for: current actions past actions and future impacts.
- After the riots at the WTO conference in Seattle, the confrontations at the IMF/World Bank, and the demonstrations in London that defaced the sculpture of Winston Churchill; the world is waking up to the fact that the worldwide problems of poverty, indebtedness, child labor, pollution and corruption are still with us. For today's companies, a narrow focus on brand is no longer enough. Consumers and investors increasingly want to know what's inside a company. Of the traditional competitive differentiators in the marketplace - price, quality, service and brand - one must add a fifth: reputation. In fact, reputation today may be even more important because bad publicity can seriously undermine a company's brand and render price, quality and service irrelevant. Companies now need to develop good reputations in order to protect their brands. Reputation has become the guardian of brand. And CSR has become the guardian of reputation.
- CSR is no longer a collateral concern but central to business success. Some of the drivers pushing business towards CSR include: 1. In the past, governments have relied on legislation and regulation to deliver social and environmental objectives in the business sector. Shrinking government resources, coupled with a distrust of regulations, has led to the exploration of voluntary and non-regulatory initiatives instead. 2. Demands for greater disclosure There is a growing demand for corporate disclosure from stakeholders, including customers, suppliers, employees, communities, investors, and activist organizations. 3. Increased customer interest There is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisions of customers. In a recent survey by Environics International , more than one in five consumers reported having either rewarded or punished companies based on their perceived social performance. 4. Growing investor pressure Investors are changing the way they assess companies' performance, and are making decisions based on criteria that include ethical concerns. The Social Investment Forum reports that in the US in 1999, there was more than $2 trillion worth of assets invested in portfolios that used screens linked to the environment and social responsibility. A separate survey by Environics International revealed that more than a quarter of share-owning Americans took into account ethical considerations when buying and selling stocks. (More on socially responsible investment can be found in the 'Banking and investment' section of the site.) 5. Competitive labor markets Employees are increasingly looking beyond paychecks and benefits, and seeking out employers whose philosophies and operating practices match their own principles. In order to hire and retain skilled employees, companies are being forced to improve working conditions. 6. Supplier relations As stakeholders are becoming increasingly interested in business affairs, many companies are taking steps to ensure that their partners conduct themselves in a socially responsible manner. Some are introducing codes of conduct for their suppliers, to ensure that other companies' policies or practices do not tarnish their reputation.
- Companies that do well by doing the right thing earn reputations as leading corporate citizens with media, government, investors and customers Employees are looking to work for companies that reflect and embody their values, who are as concerned about principles as they are about profits- 20 years ago, few job applicants would have raised questions about a company's social or environmental responsibilities. Now, most companies expect such questions, and know they need adequate answers if they are to recruit the best graduates. Investors are increasingly looking for companies they can trust . Though the stereotype is that investors are worried only about profits, when individual investors were explicitly asked to rank their preferences as to how corporate funds should be allocated, pollution control and product safety were rated significantly higher than increased dividends. Twenty-six percent of potential investors said business practices and ethics are extremely important in determining where to invest. Thirty-nine percent said they always or frequently check on business practices and values before investing in a company. Customers are looking to purchase products and services from companies that reflect their own values. Forty-seven percent of consumers indicate they would be much more likely to buy from a company that is socially responsible and a good corporate citizen if the products and services offered by competing companies are equal. In a crowded marketplace, corporate social responsibility is a key differentiator. Today's consumer environment is so much more confusing that the need for information in order for the modern consumer to make optimal decisions is acute. Moreover, consumer choices are so much greater that consumers actually are further away from making good decisions than were their ancestors. A companies CSR strategy, employed and communicated, help to define the market for consumers. Communities are willing to support a company’s license to operate when there is a history of trust, support and mutual benefit. Walmart is a great example of a CSR strategy attempting to leverage goodwill in community. As Walmart sets to open, traditionally the company will inundate the community with grants, scholarships, cash donations, volunteer assistance and goods and services, in an effort to establish a history of goodwill.
- CSR, at any rate, is thriving. It is now an industry in itself, with full-time staff, websites, newsletters, professional associations and massed armies of consultants. The FTSE and Dow Jones have both launched indices of socially responsible companies. Jan 22nd 2004 From The Economist print edition
- Procter & Gamble has been heralded as the most consistent performer in the 100 Best Corporate Citizens Fannie Mae Intel Avon Products Herman Miller Timberland Cisco Systems Southwest Airlines ATT Starbucks Merck
- With society crying for transparency and good corporate ethics, with the govt sector forcing the issue of corporate responsiveness and with investors leveraging the value of CSR, the corporate sector has been moved to respond. However corporations main experience has been to create shareholder value and stay in business. They have neither the experience nor the expertise to confront world problems.
- So we ask: why at CCMC? Is this not a better program for a chamber or business organization? By acting as the host and advocate for the BACH, CCMC will be the premier brand for children's health concerns, answers and solutions in the corporate arena in CT. It will attract additional funds from corporate partners. Our brand will be present to the thousands of employed parents and caregivers at member companies throughout the year.
- From the Drucker Institutes “Meeting the challenge of Collaboration”
- Next level, not all will arrive.We have first, we have second, we also have third that want to but we had no programmatic application to offer.
- According to the Ford Foundation, Corporate involvement includes the following set of activities: • Engage core business operating resources and competencies (including such diverse functions as human resources, product development, marketing, procurement, real estate, investments) in addition to community relations and philanthropy • Are part of a company’s ongoing business strategy and are seen as contributing economic benefit to a company (by unleashing workforce potential, expanding into new markets, improving community relationships, protecting the license to operate, enhancing reputation, and developing new products and services) • Have a positive impact on community and economic development, particularly for low-income individuals and communities (for example, by improving the skills and earnings of low-income workers; by creating jobs in areas of high unemployment or underemployment; by increasing the access of low-income people to affordable, quality goods and services that improve their economic circumstances; and by increasing private sector investment in small businesses located in low-income communities or owned by minority entrepreneurs)
- From the Aspen Institute
- From Aspen Institute
- From Aspen institute?
- The value of creating practical partnerships and dialogue between business, government, and organizations cannot be underestimated; Business and society are interdependent and we must ensure, through mutual understanding and responsible behavior, that the role of business in building a better future is recognized and encouraged. key objectives and target participants, Board role, Current Opportunities MCC Speaker presentation with HOOD or LEGO, and subsequent panel discussion, CBIA connection?