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Corporate Social Responsibility

Corporate Social Responsibility. A look at the cynical side of life Dr Jack Carnell. The boring bit …. A form of corporate self regulation

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Corporate Social Responsibility

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  1. Corporate Social Responsibility A look at the cynical side of life Dr Jack Carnell

  2. The boring bit …. • A form of corporate self regulation • Taking responsibility for the company's actions and encouraging a positive impact through its activities on the environment, consumers, employees, communities and all stakeholders in society.

  3. So, Its objectives are … • To show good ethics • Be nice to the community • Be nice to the planet

  4. Its not new ….. • Factory owners in the 1850’s built houses for the community. • But why did they do this ??

  5. But …. • In any transaction, everyone acts only out of their own self-interest. • From an economic standpoint, it is only when each of us acts in our own self-interests that the collective “society” can elevate. (Adam Smith)

  6. And to make things worse … Humans act according to the pleasure principle !!

  7. SO, In essence • Why on earth should we care about CSR ? • Does it make us happy ? • Does it make us money ? • Don’t we have lots of other, really important, stuff to do ?

  8. But so many of us do this stuff ! • Are we just daft ? • Here’s a thought • “The Government thinks it’s a good idea …. So if we do a bit the Government will like us … and maybe not ask us to do other stuff we don’t like … and maybe the Courts will be nicer when we mess up ?? “

  9. And maybe its not just Government • We had some Graduates come for interview the other day …. They asked about our CSR policies . I told them we had a really big book with policies in it – they can read it when they join…… • So its all your fault !

  10. And then we have to sell our products …… • Hey boss, someone is asking whether we have BS EN ISO 14001 as part of this procurement database form – what’s it mean ??

  11. SO, where are we now …? • The Government thinks it’s a good idea. • The next generation think it’s a good idea. • Our Customers think it’s a good idea.

  12. OK, so I need to behave !! • Actually there is a point to this ….. • Its called… RISK MANAGEMENT • Avoiding Regulatory Risk • Avoiding Legislative Risk • Avoiding Recruitment Bias • Maintaining league table position

  13. SO, Its about waste management and the environment then ?? • No its not just that. • Its about SOCIETY ….. All of your stakeholders …. This means your staff as much as anyone else.

  14. How does it impact on the staff ?? • Culture • Behaviours • Integrity • Leadership • Churn Rate and Satisfaction

  15. But does anyone actually care ?? • BRITISH Airways staff and their colleagues are celebrating a successful charity fun run. • The organiser of the event, said: “In this case everyone is a winner, from those who took part or just came along to enjoy the event to our nominated charity, Breast Cancer Care.We all had a fantastic time and enjoyed ourselves immensely. • “However, the most important thing is that we raised a significant sum of money that will help Breast Cancer Care continue the wonderful work it does.”

  16. For BA … • The Staff like us for giving them time to do this • The Media like us for doing this • Our Customers like us for doing this • = PROFIT !!!!

  17. And then we need people to invest in us if we are to succeed “It is a very exciting time to be at the forefront of Responsible Investment. FTSE4Good’s desire for good practice is matched by the rising interest of asset owners and managers worldwide” Mark Makepeace Chief Executive FTSE Group

  18. SO, 3 types of reasons to do CSR • Because we are nice – sometimes works – often doesn’t • Because we want to manage our risks – good idea all round; a question of cost and return • Because we want to be successful; keep our people, our customers and our investors on side …Good common sense !!

  19. The other side of PR … • Is it time for McDonalds to ditch big Ron ? • Apple – Big profits but dirty data

  20. Any real evidence ? • Research Question: “Is it profitable to improve social performance beyond legal obligations? “ • Meta-Analysis of studies between 1996-2003 shows 9 studies which show strong positive correlation, 2 that show a negative correlation and 1 with no relationship. • Taken from a Conference on “Social sciences and humanities facing climate challenge” – 22/9/08

  21. Downside • Paperwork • Cost • TRANSPARENCY !!!!

  22. SO, how much bigger does it get ? • PEOPLE – PLANET – PROFIT !!!!

  23. Video

  24. …… • Thanks for listening ….

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