School of Management Warsaw

1. Corporate Social Responsibility School of ManagementWarsaw November 2007 Lecturer Sander Hupkes MA

2. Program 1st meeting • Todays program • Introduction (lecturer & students) • The module • What is CSR? Why CSR? • Next session

3. Your lecturer • Drs. Sander Hupkes (=MA) • Academic degree in Philosophy (University of Groningen 1987) • Lecturer University of applied sciences Leeuwarden, Netherlands (since 2003) • Something more about NHL and my country

4. Your lecturer • 10 years trade union

5. Your lecturer • 10 years trade union • Modules: globalization, industrial relations, (business)ethics, CSR • Age 47 • Married, no children

7. Program module • The book: Corporate Social Responsibility (a Dutch approach) • Documentary on the Brent Spar (Shell) • Collect information (www) on CSR and CSR reports. • How to become a social responsible company? • Assessment

8. Program module

9. What does CSR mean? • Corporate social responsibility • But what does it mean????????

10. Responsibility? • Responsibility = Accountability (answering, reporting) • What responsibility do enterprises have? • Four concepts

11. Responsibility Four concepts

12. Responsibility • Milton Friedman: one and only responsibility. Increase profit whitin the rules of the game (free and open competition, no deception or fraud) Minimal responsibility Increase profits (shareholders) = efficiency Whitin the rules of te game (=law)

13. Responsibility Corporate citizenship Continuity All stakeholders Spirit of the law

14. Responsibility Corporate social responsibility Damage reduction Triple P Value based (not law based)

15. Resposibility Social activism Social objectives Values and norms are the core business

16. Why CSR? Because……….. • You must do so (law, public expectations) • You find it profitable (reputation, marketing, enlightened self-interest) • You should do so (moral values, idealism)

17. Why is CSR profitable? • ???????????????????????

19. Hapiness • Richard Layard Hapiness. Lessons from a New Science (2005) World database on hapiness

20. Hapiness

26. Marketing Philip Kotler • Production based (price) • Product based (price quality) • Sales based (persuasion) • Marketingconcept (customor = king) • Values based sales and marketing (social responsibility)

27. CSR 1987 Brundtland 1973 Club of Rome 2000 SER 2006 Al Gore

28. The Dutch approach • SER Social and Economic Council • Consultation economy ( • Enterprise = a social activity • CSR is core business

29. Les 2?

30. The Dutch approach • Enterprise = value creating entity • Value creation in various dimensions • CSR cannot be based solely on charity! • CSR is a varied and complex phenomenon

31. Enterprise* • Profit-driven • Market-driven • Transaction costs can be saved in partnership arrangements (for a longer period) • Long-term form of co-operation between various stakeholders • Business = a social activity

32. Enterprise* • Profit-driven, but the social and economic importance is to create value by using scarce sources in a efficient and effective manner for the production of goods and services wich, by satisfying human needs, contribute to general prosperity. * The Dutch approach

33. CSR Corporate Social responsibility is determined by: • Focus on public prosperity on the longer term • Relation with stakeholders and society at large

34. CSR The conscious direction of business activities toward creating value in three dimensions for the longer term: • Financial-economic • Ecological • Social Transparancy and accountability Balance of power of stakeholders

35. Triple P • Beyond the Bottom Line: Putting Social Responsibility to Work for Your Business and the World Joel Makower (1994) “Companies function best when they merge their business interests with the interests of customers, employees, neighbours, investors and other groups directly and indirectly affected by their operations”

36. Triple P

37. Triple P Essence of CSR in a nutshell • Profit: shareholders and social importance: efficient, comparative advantage • People: employees, neighbours, customors other groups affected • Planet: nature, environment

38. Triple P

40. Ethical investments

41. Values and norms Used to be imposed by church and/or government Nowadays values and norms are discussed in the public arena Examples • OECD Guidelines • ILO labour standards • UN Global Compact • cleanclothes

42. Accountability An enterprise is expected to provide answers to legimate questions Public dialogue Corporate codes Reports on CSR: GRI (Global Reporting Initiative)

43. Les 3

44. Globalization Anglo saxon model: • Hire and fire • Corporate governance • Shareholders value

46. Globalization

47. Four concepts

48. Culture

49. Culture

50. Culture