CSR The new standard for enterprising in the 21 st century

1. CSR The new standard for enterprising in the 21st century RSM alumni Willem Lageweg 7 february 2007 CSR Netherlands

2. Contents • CSR is about innovation and ethics • Who and what is CSR Netherlands • Reasons, motives and advantages of CSR • Practical examples • New markets and products due to CSR • Beyond CSR

4. Important moments in the history of CSR • 1973 Club of Rome • 1987 The Brundtland report • 2000 SER-report ‘Winst van waarden’

5. SER-advice for CSR • ‘De corporation creates value in three areas (triple bottom line)’- People- Planet- Profit • Stakeholder dialogue • Transparency and responsibility

6. The corporation of the 21st century Planet CSR People Profit

7. Problem sharing/business ethics • People, planet and profit are not always in line • Code of conduct • Make cases and dilemmas discussable • Ethical assessment method • Commission Ethics headed by a member of the board of directors • Importance of internal communication • “with great power comes great responsibility”

8. Some ethical issues faced by Rabobank • The financing of soya cultivation in the tropical rainforests of Brazil • Real estatetransactions by customers with a questionable reputation • Financing coffee shops • Wealthy Arab customer who does not want to be helped by a woman • Female employees with head scarfs

9. CSR is innovation! Process innovation Product innovation New markets Finance innovation Marketing and communication innovation Governance innovation Etc.

10. CSR Netherlands National CSR network (sharing knowledge, experiences etc.) More than 275 partners (companies, NGO’s, consultants etc.) Focus: stimulating CSR among entrepreneurs (especially SME’s) The national CSR portal (www.mvonederland.nl)

11. Our ambition • CSR from niche tomainstream

12. Programs at several levels • Sector (cooperation with trade organizations) • Regional (cooperation with chambers of commerce and municipalities) • International (country studies/toolkits) • Supply chain • Business issues (marketing, procurement, transparency, HR, communication, etc.)

13. Cooperation with trade organizations

14. Cooperation with chambers of commerce

15. Starters tips

16. www.internationaalondernemen.nl/MVO(China, India, Russia, Brazil, South Africa, Indonesia)

17. Leaflets about CSR and specific business items (transparency, procurement, marketing, HRM etc.)

18. Our ecological footprint • In 2050 we need two planet Earths to feed and serve human kind

19. Ecological footprint per person • USA 9,5 ha • The Netherlands 4,4 ha • Afghanistan 0,1 ha • World average 2,2 ha • Available 1,8 ha

20. CO2-emission temperature

21. Many reasons for the rise of CSR • Recalcitrant/repositioning governments • Information society and global village • Healthy life • Competitive power • Labor participation and quality • Livability • Poverty, inequality, human rights • Etc.

22. Three motives for CSR • Because we have to • Because it pays • Because we should

23. CSR pays

24. CSR: because it pays (2) • Reduction of costs • Image and differentiation advantage (public; labor market; consumer market; government) • Company pride and – loyalty employees • New products and new markets • The new ‘level playing field’

25. Market for CSR (1) • Cultural creatives, a market segment that is growing and has purchasing power • Amounts up to 15-25% of the market (> 1.6 million customers) • Important items: authenticity, ecology, non-discrimination, non-materialistic and livability

26. Key elements cultural creatives

27. Market for CSR: small first movers

28. Market for CSR: mainstream

29. Strategic value

30. CSR in the world of SME’s • Van Dorp Installaties • Klostermann installatietechniek • Drukkerij Wedding • Eosta groothandel groente en fruit • Ecostyle meststoffen en gewasbescherming • Valid Express koeriersdiensten • Gulpener bier • Gubba internetshop • Camping Thyenkamp • Dagblad Trouw

31. CSR in SME’s (2) • Antropia congrescentrum • Happy shrimp farm (garnalenteelt) • Bouwcarrousel sloopbedrijf • Willems bouwbedrijf • Hermadix coatings • 2012 architecten • Green Wheels autoverhuur • Brennels kleding • Windunie • Van Udenhout autodealer

32. CSR – media

33. Investment and Fiance Communication ‘walk your talk’ strategie Vision & Mission Norms & Values Distribution Products strategie walk your talk Internal policies HRM An integrated approach

34. CSR and the Rabobank fusies en allianties; landenbeleid (mensenrechten); 3 beleidskompassen (klant, medewerker, financieel); winstbestemming verantwoording afleggen; openheid; overleg en dialoog; sponsoring; issue-management Investment and fiance communication walk your talk strategie gedragscode per productcategorie; criteria voor kredietverlening; starters; nieuwe Nederlanders; intensieve veehouderij; dierenwelzijn; mensenrechten; beleggen; groenfondsen; fiscaliteit kantoorsluitingen; service in zorgcentra; kantoren in belastingparadijzen; microkredieten in ontw.landen visie & missie normen & waarden (o.a. 26 codes) Distribution Products and services Internal policies diversiteit; ARBO; employability; sabbatical leaves; beloningsregelingen; lease auto’s HRM energie- en afvalbeleid; inkoopbeleid (mensenrechten; duurzame producten)

35. Current CSR topics (1) • CSR in core business ( PM Philips has already 2 billion euros sales of green products) • Production chain agreements/sustainable purchasing (PM Government to 100% sustainable procurement by 2010) • Climate neutral (PM Interface climate neutral in 2020) • New partnerships (PM Super de Boer/ Stichting Natuur en Milieu and OxfamNovib: Mc Donalds and Greenpeace)

36. Current CSR topics (2) • Consumer information (convenienceand pleasure) (PM I chose deliberately products form Unilever, Campina and Friesland Dairy Foods) • Transparency/responsibility (PM Banks and investors demand more and more CSR-information) • Leadership (PM Hans Weijers from Akzo) • CSR part of the rewarding system (PM Shell, Rabobank)

37. Future of CSR From: Reputation and risk management (control) To: New products and new markets (innovation)

40. Shareholder Value Model

41. Examples of ‘new’ CSR markets • Sustainable energy (wind, sun, biomass, etc) • Climate neutral production • Sustainable designing, building and installation • Sustainable transport (Greenwheels, hybrid cars, OV bikes, etc) • Consultancy services (strategy, engineers, accountants, communication, training, etc) • Sustainable tourism and recreation • Healthy and fair foods and drinks • Financial services (investments, savings, cards, micro credits, etc)

42. Call by CSR pioneers in SME sector Put sustainability and innovation at the top of our national agenda

43. Towards a new national Delta plan The Netherlands in 2010 Frontrunner in sustainability* and innovation • * people, planet en profit • Nederland nu nr 15 (2003: nr 6)

44. CSR The new standard for enterprising in the 21st century

45. Proposition 1 • In 2010 the ecological footprint is the most important criterion to judge the CSR performance for especially the larger companies

46. Proposition 2 • Product chain management and climate neutral production are for the larger business community strategically the most important CSR topics for the next few years

47. Proposition 3 • In the next few years people and planet indicators will be as important for the bonuses and other forms of variable elements in the rewarding system as pure financial and commercial results

48. Proposition 4 • The expression CSR will no longer be used after 2010. CSR is a regular part of mainstream business at that moment