Corporate Social Responsibility

1. Stabsabteilung Wirtschaftspolitik Corporate Social Responsibility & Diversity Management by Andreas Schneider Austrian Economic Chamber

2. Historical Development of CSR • 1950´s: First scientific discussions on CSR in USA. • 1953 Bowen: “Social responsibility of businesses has to orientate on social expectations and values.” • 1970’s: Companies seen as a part of the society have also rights and duties as others and in order to benefit from nonmonetary social achievements they should act responsible. Due to ethical reasons they should take the responsibility on their impacts on the society. Basic-idea for CSR. • since mid of 90´s discussions in Europe (esp. GB, GER & F) • 2001 Green Paper European Commission • Paralell discussion on sustainability • 1987: Brundtland Report – “sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs” • 1992: Conference in Rio • 1999: World Economic Forum in Davos – Kofi Annan appeals for a Global Compact for human rights, working standards and environmental protection • 2002: Johannesbourgh – Rio follow up

3. CSR Historical Development & Evolution XXI Century: Modern understanding of CSR Environmental 1970 Social Economic Globalization “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game” (Milton Friedman 1970)

4. Background of CSR: Globalisation National states are still important but no longer omnipresent rule-enforcers and monopolists of ‚public goods‘

5. What is CSR ? Definitions • No common definition in scientific literature • EU-Green paper (2001) defines CSR as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” • World Business Council for Sustainable Development (2000) defines CSR as “the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society to improve their quality of life.” • CSR is a wide and crossover-concept

6. What is CSR ? Vision for the Society:„Sustainable Development“ Managementtool for the Economy: Corporate(Social) Responsibility =Corporate Sustainability Civil Society Politics Companies Corporate Values Citizens Corporate Governance Corporate Citizenship Customers Ethical Responsibilities Objective: economic success with social responsibility

7. economy environment society Managing the Future with CSR The future -3 dimensions in balance • Sustainably successful economic development needs an intake environment and social peace. • Longterm solutions to environmental problems are possible only within a healthy economy and healty society in the presence of reduced poverty. • The realisation of societal values and an acceptable balance between north and south as well as fortunate and less fortunate is best achievable in the presence of global economic growth and sound environmental fundamentals

8. Sustainable econicical ecological & social advantage • risk minimation • value increasing • sometimes also a reduction of costs • Strenghtening its´marketposition • Better Image economicalresponsibility Ecolocial responsibility • new cultur within corporations • more confidence Socialresponsibility • better working conditions • Uniqueness(unique selling position - USP) • motivated staff „Benefit instead of Profit“

9. The Pyramid of CSR – the more the better for all of us Win – Win Situation CSR as Mission Not “doing good while doing bad”

10. growing public pressure defensive investive Corporate Social Responsiblity – two directions of strategies - strategic management - competitive advantages through integration of economic and social objectives - Citizenship strategies - principle of legality - avoidance of negative publicity - Compliance strategies

11. CSR and Sustanability within the Company Nutzen & Praxis

12. Stakeholders and Issues and Consequences Stakeholder: “an individual, community or organisation that affects, or is affected by, the operations of a company / NGO. Stakeholders may be internal (e.g. employees) or external (e.g. customers, suppliers, shareholders, financiers, the local community).For strategic planning and acting it is necessary to know the different groups of stakeholders as accurately as possible and in order to meet their needs and impact on the company to analyze their aims and the relationship to the company Transparency Increasing Importance of Reputation Management Increasing Importance of Stakeholder Relations Environment Sourcing Suppliers Customers Diversity Economic Development Communities & Interest Groups Shareholders CSR Partnerships Employees Human Rights Governments Ethics Sustainable Development An Institutional Revolution Increasing Importance of Ethics Management Work-life

13. Stakeholders in a hierarchial relation?

14. CSR within the Austrian Economic chamber as an employer • Being an example for 300.000 members: • Education schemes for employees, • life work balance, • health at work, • works council, • corporate volunteering, • social sponsoring • Active Diversity management • Sustainable procurement, energy saving investments • Expanding stakeholder dialogue etc. • Etc.

15. Diversity Management as important part of CSR www.stop-discrimination.info

16. What do we mean by diversity? • Recognising diversity means understanding how people’s differences and similarities can be mobilised for the benefit of the individual, the organisation and society as a whole. • Complying with legislation is only a first step. By looking at how the diversity of people can be mobilised to create value and advantage, they can take another step to becoming “organisations of choice”. Many people now recognise that valuing and pursuing diversity is vital for organisations and individuals. • But having a diverse workforce does not automatically translate into positive benefits. Diversity must be effectively managed to reap the diversity “dividend”.

17. What are possible benefits of managing diversity effectively? • Recent research shows how creating and managing a diverse organisation can provide real benefits. • Diversity management strategies can help to create a link between the internal and external aspects of the work of an organisation. Whilst each organisation needs to work out its own priorities, these benefits can include: > Attracting, recruiting and retaining people from a wide “talent” base. > Reducing the costs of labour turnover and absenteeism. > Contributing to employee flexibility and responsiveness. > Building employee commitment, morale and “discretionary effort”. > Managing better the impact of globalisation and technological change. > Enhancing creativity and innovation.

18. Diversity Management: The Business Case Volkswagen The Global Business Coalition on HIV/ Aids (NY) appreciated the Information an Trainingprogramme of VW in combating Aids in South Africa with the”Business Exellence in the Workplace” Award.

19. Thank you for your attention! Andreas Schneider Austrian Chamber of Commerce (WKÖ) andreas.schneider@wko.at