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“Business as ususal”? CSR & Security

“Business as ususal”? CSR & Security. Economic factors. Globalization: Increase in number, range, speed, and awawreness of connections. Increased integration and interdependence Approximately 1/3 of the world´s population lives on less than $ 2 / day.

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“Business as ususal”? CSR & Security

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  1. “Business as ususal”?CSR & Security

  2. Economic factors • Globalization: • Increase in number, range, speed, and awawreness of connections. • Increased integration and interdependence • Approximately 1/3 of the world´s population lives on less than $ 2 / day. • Between 1990-2003 half of all armed conflicts took place in poor countries • New economic order due to considerable economic progress outside the “West”? = New challenges and opportunities for businesseses

  3. Social and cultural factors • Ratio between the young and productive and the old and retired is diminishing. • Urbanisation • The “milennial generation” sees a connection between their personal values and a company´s values. • Increasing weight er relevance of NGOs • Shareholders have become more concerned about social issues & the environment = New challenges and opportunities for businesseses

  4. The environment • World´s population went from 4.8 billion in 1985 to 6.6 billion in 2008. Could reach 9 billion in 2050. • Environmental threats due to human impact: : • Carbon dioxide has increased by 30% in the last 20 years. • Environmental degradation • The number of wild animals has decreased by 40% the last two decades. • Unsustainable use of resources • At current rate fish populations will have collapsed in 2048 • Overshoot day in 2008 on September 25 = New challenges and opportunities for businesseses

  5. Impact of businesses • The economic power of companies equals and even exceeds economic power of States • UN estimated cost of reducing AIDS in Africa are $ 15 billion. Exxon´s profit in the year 2000 were 16.9$ billion. KB Banki in 2006 were $1,3 billion. • It will cost $300 billion to eliminate extreme poverty – less than 2% of the income of the richest part of the world (10%). • Companies have knowledge, skills and technologies that can benefit humans and the environment. • Businesses are in close proximity to the matters at hand. • All businesses impact their immediate environment. • Most businesses enjoy long term benefit from from stable societies, sustainable use of resources and clean environment.

  6. What is CSR • CSR: “A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” • EU Commission Green Paper 2001 “Promoting a European Framew ork for Corporate Social Responsibility”, COM(2001)366 Final

  7. Operating • space CSR = SD radar for survival & success • Media & NGOs • Competitor • Adapted from Monsanto & Natural Step • activity • New • technologies • Investor • pressure • Competitor • “radar” • “radar” • Public procurement/ • B2B purchasing policies • Competitor • Regulation pressure • Employee • expectations • Customer • expectations • Time

  8. Conflict dynamics • Companies can contribute to creating a conflict • Companies can impact existing conflict or social tensions • Part of the mechanisms relevant to armed conflict • Can contribute to building the peace

  9. Managing conflict dyamics

  10. Compliance • Targeted sanctions • Kimberley process • Publish What You Pay • UK Extractive Industries Transparency Initiative • Voluntary Principles on Security and Human Rights

  11. CSR strategic approaches • “Safe”: Risk management focus • Public Relations, aims at reducing, avoiding or taking control of risks • “Credible”: Reputation focus • Defensive: communication with concerned stakeholders • Offensive: efforts to develop token products/ services • “Efficient”: Process improvement focus • Organization/ operations: Sustainable Management Systems • Product: Life-cycle Assessment

  12. CSR strategic approaches cnt • “Innovative”: Differentiation focus • Integration of sustainable-qualities into product/service offers • “Transformative”: Societal development focus • New market development, consumer education, shifts in consumption patterns, structural change • e.g.: Creating or joining sustainability-orientated industry standards and product labels (GRI, MSC, FSC, Fairtrade) and political initiatives (UNEP, MDG)

  13. Why CSR matters • Markaðsstaða: • Orðstýr, nafn, • vörumerki, sérstaða, sögur • Samfélagsleg staða: • Almenningur, yfirvöld, félagasamtök, fjölmiðlar • Byggir betri markaði • Siðferðislega rétt: CSR • Áhættustjórnun: • Hagaðilar, • nýjar kröfur, • fyrirbyggjandi • Menning fyrirtækis: • Hugarfar starfmanna, • virðing, þáttaka, • sanngirni, heiðarleiki

  14. Some major shifts • From Energy Intensive to... • Climate Neutrality • Carbon Negative • From Conspicuous Consumption to... • Conscientious Consumption • Conscious living • From 2 Billion to... • 6 Billion world/ customers • From “the business of business is business” to... • Corporate Social Responsibility • Sustainable B

  15. Strategies?

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