GOVERNMENT ANDCORPORATE SOCIAL RESPONSIBILITY - CSR PART I STRATEGIC PUBLIC POLICY VISION FOR CSR CHAPTER 1 ENTRY AND TERMS USED Impressive entry on the economic, business, political and social scene Different term used: social action, socially responsible investment, management by values, corporate citizenship, business ethics, the triple bottom line, reputation, etc, Aspects in CSR discussion Agenda – variety of practices, measures and proposals that come under way. Understanding – what business model is proposed & what role to play by business Vision – what project for society CSR conforms to Rapid growth of CSR awareness Companies integrated it into corporate philosophy, agenda, org. structure NGO’s have identified it a new strategy & even acted as defenders of the cause GO’s – an opportunity for political initiative HEDs – added into their curricula Consultants – created services related to it like seminars, trainings CSR TO PUBLIC OPINION CSR must be a long term commitment and at the same time a road map of the company for action Not something that is immobile or a race to see who projects the best image CSR reference framework European Commission published 2 green papers 1. Promoting European Framework for CSR 2. Communication Concerning Social Responsibilities: A Business Contribution to Sustainable Development. >become the yardstick for approaching the CSR topic EC definition of CSR A “concept” whereby companies integrate social and environmental concerns in their business operations and in their interaction with stockholders on a voluntary basis 2 aspects in Commission’s framework The “What” The “How” Emphasizes the fact that companies should make social and environmental commitments in their actions It stresses the voluntary nature of those commitments The what & why debate Left unresolved and waste of a great deal of energy unless we explore the “why” “Why” is expressed thru the business model and the social model that provide the framework for the CSR debate CSR – where do we stand Europe’s model CSR tends to be linked increasingly to an overall vision of the company, w/ more attention to all processes in w/c it is involved and greater sensitivity towards the political & social context in w/c it operates USA’s model Revolve for the most part around mgt. in relation to the stakeholders, the establishment of relation w/ the community & business action at society w/c are frequently described as CSR because they are carried out by companies rather than because they affect company’s business core. CSR Background on National Framework Institutional reference framework and economic and social history Business system and culture Approach to CSR Elements included in CSR approach The political & institutional structure The political style and processes The social structure The intensity of the nature to voluntariness, as opposed to the acceptance of regulation and government control How the role and the position of NGOs & civil society The characteristics of the educational system & the values converged by it What is expected of leaders Historical traditions Building the nation as an economic & social space Realization - that CSR constitutes one of the great opportunities for innovation, differentiation and legitimation CSR brings us to set forth a way of understanding the role of business in society and at the same time contributes to shape a nation as a space in w/c the relationship between the economy and society is not far from reality` CSR Governance and Sustainability CSR Business in society Governance Sustainable Ethical wealth of Nations Nation’s Competitive advantage CSR Incorporating CSR into the public Economic, political &social agenda Companie s Countries Shared vision Society- building process Managing CSR CSR should be managed and should be manageable A model that divides CSR to 6 main areas Areas Aspects of CSR related to… Vision & mission Development of concept of CSR. How to integrate the values into the strategy Stakeholders The interaction between the company & society Work Sphere of work & quality of its organization & development Market The activities of the company w/ regards to products, services & market strategies Environment Area that is recognized w/ most consensus. Impact of activities to environment Accountability To information transparency & how the company accounts for itself towards society w/ regard to its CSR policies & practices & the channels it uses to do so CONCEPTUAL MATRIX OF CSR Companies Public Sector Civil Society Vision/mi ssion Stakehold ers Works Market Environm ents Accounta bility Strategies Policies Practices CSR a process CSR is a process in which the most important thing is the direction that sustain it and the ongoing commitment that gives it structure. That is what provides it with credibility. As a process, this has become, for many companies, a factor for innovation that has given rise to new forms of organization, new products or improvements in the quality of their management. CSR Process Strategy Integration Management Accountability + And (Structure And Values Learning And Communication = Process Processes) Identity Workers Environment Suppliers Consumers Local Community Association Government Etc. 1. THE EXPLICIT 2. THE TACIT 3.THE NEGATIVE ASPECT 4 .THE PROPOSITIONAL ASPECT When CSR is conceived as a process, it is important to be aware that several dimensions have to be taken into consideration 1. Elements that formalize & objective CSR (codes, reports, statements org.structures. 2. Intangible elements that make up the conrete manifestations of CSR(org.culture, history, leadership) 3. Approaches in any of the mgt. areas involved in CSR, that are characterized by emphasizing what should not happen in business dealings, or should exclude from them(sanctions, prohibitions, rules of procedure 4. Approaches, in any of the mgt. areas involved in CSR, that have a component of enquiry, facilitating innovation or improving mgt.& shaping new relational dimensions Variables of CSR and regulation Negative CSR Propositional CSR Explicit CSR Tacit CSR Space of regulation EC’s Strategic approach Promoting Contribution From the perspective of political institution and public administration From the perspective of business sector Nothing can justify public powers abstaining from promoting the development of these same agenda, understanding and vision Nothing can replace business initiative when it comes to contributing through its action to build the CSR agenda, shape its understanding and frame it in a vision Commitment to CSR has to be linked to.. Economic & social development The generation of trust and social capital A certain vision of national identity Excellence, quality, continuous improvement, innovation, differentiation, competitiveness and internalization of companies. GCSR: CONTEXT AIM AND PERSPECTIVE Chapter 2 The Lit on GCSR: European Framework Documents published by EC Significant content 1. The Green Paper “Promoting a European Framework for Corporate Social Responsibility 2. Commission Communication Concerning Corporate Social Responsibility Key to understanding the role gov’t can play in the promotion and development of CSR 1. June 2004 – Final Report of the European Multistakeholder Forum on CSR The document establishes the recommendation derived from the European Multistakeholder Forum on CSR and serves as a support for the action of governments and the European Commission itself. 1. Mar.2006 – New communcation It explain