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Navigating Corporate Social Responsibility: Challenges and Conflicts for the Modern Company

This document explores the complexities surrounding corporate social responsibility (CSR) in modern business. It highlights the challenges and dilemmas faced by companies striving to integrate sustainable practices, manage reputational risks, and balance economic goals with social and environmental responsibilities. By examining key concepts such as blended value, eco-efficiency, and fair trade, it offers insights into how organizations can innovate while adhering to the principles of sustainable development. The discussion also emphasizes the need for collaboration between top-down and bottom-up approaches in CSR strategies.

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Navigating Corporate Social Responsibility: Challenges and Conflicts for the Modern Company

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  1. Instituto Ethos: June 2006 THE SOCIALLY RESPONSIBLE COMPANY Challenges, Dilemmas and Conflicts

  2. Introduction Challenges Dilemmas Conflicts Top-down, bottom-up Menu

  3. 1 Introduction

  4. Director & Chief Entrepreneur - SustainAbility (Chairman, 1996-2006) Chair Environment Foundation ECGD Advisory Council Advisory Boards/Councils - B&HRRC, DJSI (3M), Ethos, RSA, WWF, Zouk

  5. Founded 1987 Team Core Team ~25 Nationalities 11 Council 12 Faculty 60> Mission To inspire and support innovation that creates tomorrow’s value

  6. 2 Challenges

  7. Reputational risk > competitive advantage Corporate citizenship Corporate responsibility Corporate social responsibility Eco-efficiency, eco-effectiveness Fair trade Human rights Sustainable development (e.g. triple bottom line) Clients, partners, languages

  8. A.G. Lafley: $100m donations—new focus on children Environment: resources, water (cool-water washing), waste Social: health, hygiene (PUR), education Economic: shareholder value, employment, taxes, fees and contributions

  9. 4Bs of ‘Blended Value’

  10. 4Bs of ‘Blended Value’

  11. 4Bs of ‘Blended Value’

  12. 4Bs of ‘Blended Value’

  13. Lee Scott: ‘We should view the environment as Katrina in slow motion’ Old: Energy efficiency, waste New: Renewables, roofspace, sustainable fish Easy wins 1-3 years projects ‘Game Changers’

  14. Fourth Wave - Creativity - Innovation - Enterprise - Scale

  15. 3 Dilemmas

  16. 2002-2006 2000: climate change 2005: poverty, climate, global governance … 2006: SD in China and India, financial crises, pandemics in globalized economy …

  17. Green CEO Stakeholders’ 3 priorities SUVs, BoldMoves Junk bond status? Challengers …

  18. 4 Conflicts

  19. Andrew Liveris 2015 Sustainability Goals: Sustainable Chemistry Products Designed to Solve World Challenges 4 MDGs: Water Food Housing Personal health and safety

  20. Chad Holliday: board issue Blind spots (e.g. CFCs) ‘Sustainable Growth’, e.g. oil > cellulose (biotech) But … PFOA, Ti02 … Evolution of human rights, e.g. ‘bodily trespass’

  21. Amazon, Google, etc ‘Greentech’, $100 million, $100,000 KPCB ‘Green Innovation’ prize 3 megatrends 1: energy security 2: megacities 3: abrupt climate change

  22. 5 Next Steps

  23. Top-down, bottom-up 1 CFOs, Entrepreneurs, Investment Bankers, VCs  CEOs, Investor Relations, Boards (e.g. NEDs)  Process and Product Design, Marketing (TQM)  Environment Managers, Project Planners  Public Relations, Legal Advisors

  24. Our ‘Wave 4’ Strategy Financial markets Implementation Emerging economies 3-year Skoll Program Globalization 2015 Global Reporters 2006 Millennium Development Goals Bottom-up

  25. www.sustainability.com www.johnelkington.com elkington@sustainability.com

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