Transcript Why do we care?

Corporate Social Responsibility
 Corporate
Social Responsibility
 Ethics
 Corporate
Citizenship
 Corporate accountability
 Sustainability
CSR:
Achieving commercial success in ways
that honor ethical values and respect
people, communities and the natural
environment
CSR:
Addressing the legal, ethical,
commercial and other expectations
society has for business and making
decisions that fairly balance the claims
of all key stakeholders
CSR includes issues related to:
Business ethics
 Community investment
 Environment
 Governance
 Human rights
 Marketplace

Business Importance:
 Improved
Financial Performance
 Reduced Operating Costs
 Enhanced Brand Image and Reputation
 Increased Sales and Customer Loyalty
Business Importance: (cont.)
 Increased
Productivity and Quality
 Increased Ability to Attract and Retain
Employees
 Reduced Regulatory Oversight
 Access to Capital
Key Developments:
 Increased
Stakeholder Activism
 Proliferation of Codes, Standards,
Indicators and Guidelines
 More Sophisticated Shareholder
Engagement
 Accountability Throughout the Value Chain
Key Developments: (cont.)
 Transparency
and Reporting
 Growing Government Interest and Action
 Convergence of CSR and Governance
Agendas
 Growing investor Pressure and MarketBased Incentives
Key Developments: (cont.)
 Advances
in Information Technology
 Pressure to Quantify CSR “Return of
Investment”
External Standards:
 AccountAbility
 The
Global Reporting Initiative
 Social Accountability 8000
 United Nations Global Compact
 Organization for Economic Cooperation
and Development Guidelines for
Multinational Enterprises
External Standards (cont.):
 The
Caux Round Table (CRT)
 The Global Sullivan Principles
 The
Keidanren Charter for Good Corporate
Behavior
 APEC Business Code of Conduct
Implementation Steps:
 Mission, Vision, Values Statements
 Cultural Values
 Corporate Governance
 Management Structures
 Strategic Planning
 General Accountability
 CSR Reporting
 Use of Influence
Leadership Examples:
 Chiquita
Brands International, Inc
 Starbucks Coffee Co
 B&Q
 Novo Nordisk A/S
Interface, Inc
“Our Goal: to be the first company that, by
its deeds, shows the entire industrial world
what sustainability is in all its dimensions:
People, process, product, place, and
profits—by 2020—and in doing so we will
become restorative through the power of
influence.”
Interface, Inc (cont.)
“Our Vision: Interface will become the first name in commercial and institutional
interiors worldwide through its commitment to people, process, product, place
and profits. We will strive to create an organization wherein all people are
accorded unconditional respect and dignity; one that allows each person to
continuously learn and develop. We will focus on product (which includes
service) through constant emphasis on process quality and engineering, which
we will combine with careful attention to our customers’ needs so as always to
deliver superior value to our customers, thereby maximizing all stakeholders’
satisfaction. We will honor the places where we do business by endeavoring to
become the first name in industrial ecology, a corporation that cherishes nature
and restores the environment. Interface will lead by example and validate by
results, including profits, leaving the world a better place that when we began,
and we will be restorative through the power of our influence in the world”
Business and Corporate Accountability
Business Importance:
 Improved
financial performance
 Heightened public credibility
 Reduced costs
 Increased attractiveness to investors
 Improved relationship with shareholders
“..more than 80% of investors would be willing
to pay more for the shares of a well-governed
company than for a poorly governed company
with comparable financial performance.”
(From a 2000 survey of 200 large institutional investors
conducted by McKinsey & Co., the World Bank, and Institutional
Investor’s regional institutes)
Business Importance (cont.):
 Early identification of potential
liabilities
 Marketplace advantages
 Improved overall management
 Improved organizational effectiveness
 Decreased risk of adverse publicity
Key Developments:
 Growth
of CSR
 Increased demand for transparency
 Growth in sustainable reporting
 Greater government regulation
 Increased shareholder activism
 Proliferation of social and environmental
reporting standards
 Increased media attention
Implementation Steps:
 Set objectives
 Review company materials
 Review management systems
 Engage board of directors
 Define and engage stakeholders
 Develop formal internal and external
communication mechanisms
 Engage in continuous improvement
Green Product Design
Business Importance:
 Decreased
costs & increased profits
 Decreased production time
 Customer satisfaction
 Customer retention
 Recognition
 Proactive preparation for regulation
Key Developments:
 Take-back
laws and extended product
responsibility
 Updates to existing regulations affecting
product design
 Industry/government voluntary initiatives
 Industry/NGO collaboration
 Restricted materials lists
Business Importance:
Decreased costs and increased profits
 Decreased production time
 Customer satisfaction
 Customer retention
 Recognition
 Proactive preparation for regulation

Key Developments:
Take-back laws and extended product
responsibility
 Updates to existing regulations affecting product
design
 Industry/government voluntary initiatives
 New systems of commerce
 Restricted materials list
 Academic programs

External Standards:
Eco-labeling/enviromental certification
 ISO 14000
 Restrictions on use of hazardous materials
 EU directive 94/62 on packaging and
packaging waste
 Product-specific mandates ond voluntary
efforts

Implementation Steps:
 Develop business strategies to capture value
from lifecycle thinking
 Practice full-cost accounting
 Explore reuse options for materials and products
 Develop markets for green-designed products
 Establish ground rules for product design
 Perform analysis during product design and
development
Leadership Examples:
 Proctor
& Gamble (P&G)
 Volvo
 Electrolux
Sustainable Business Practices
Sustainable Development:
“Meeting the needs of the present without
compromising the ability of future generations to
meet their own needs.”
(UN Commission on Environment and Development)
Business Importance:
Access to capital
 New Market development
 Asset retention
 Brand image and customer retention
 Innovation

Key Developments:
Increase in sustainability reports
 Growth of markets concerned with sustainable
products and services
 Strategic partnerships
 Financial markets
 Government-Industry partnership initiatives

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Sustainable goals and indicators
– Milestones
– Are we moving towards our destination or heading in
the opposite way
Economic Vitality
Goal: An economy that is competitive, diverse, and
attractive to business; that maintains and
expands assets and capital; that provides a
variety of entry-, middle-, and high-level jobs;
and that promotes the well-being of a
community and its workforce
Economic Vitality Indicators
1. Per capital Income:
Why do we care?
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Economic well-being one of three axes of
sustainability
Disposable income a measure of economic well being
Having the option to make choices a good thing
Unemployment
Why do we care?
2.
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Unemployment affects individual and indicates the
health of the economy
Communities with high unemployment have
increased crime, domestic violence, substance abuse
Less tax revenue available as resource against
social problems
3.
Productivity of Labor
Why do we care?

Measures the value of output relative to the resources
used to produce it.
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Higher incomes and living standards
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More or resources available for reinvestment in
growth and the ability to remain competitive
4. Share of Households Below Poverty Line
Why do we care?
 High poverty rates impose costs on welfare systems and
slow economic growth of community
 Poverty usually occurs along with poor health,
decreased economic opportunity, higher crime
rates…reduce quality of life
5.
Energy Efficiency
Why do we care?

Measures the output of our economy relative to the
amount of energy used.
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Major input into productive activity and consumption
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More efficiency, lower environmental cost
Equity
Goal: A more equitable distribution of the positive
and negative products of civilization in the
community. This includes fair access to
healthy environments, good healthcare,
quality education, governmental decisionmaking, economic opportunity, and natural
and cultural amenities
6. Why do we care?
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A society in which everyone feels a welcome and
equal participant, where people take ownership, will
be more sustainable – better able to grow, evolve,
adapt
7.
Racial disparities in Infant Mortality
Why do we care?

High infant mortality is sign that pregnant women and
newborns are not receiving adequate nutrition and
medical care

Racial disparity shows inequity in access to care

Infant health care crucial to lifelong mental health and
physical development
Strong Community, Culture, Recreation
Goal: Create or enhance within communities a
positive sense of local identity and individual
belonging, which promotes respect among
neighbors, increases everyone’s feelings of safety
and security, and provides abundant cultural
and recreational opportunities
8.
Newspaper Circulation
Why do we care?
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Reading newspaper fosters community awareness and
encourages people to take ownership and engage with
their community
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Newspapers provide information to enable people to
get involved with local decision-making and disputes
9.
Crime Rate
Why do we care?
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Crime is indicator of deeper social and economic
issues.
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Increase crime rate may result from decrease in job
opportunity, economic stagnation, inadequate
education, or inadequate policing.
10. Open Space
Why do we care?
 Protects natural environment by providing habitat for
wildlife.
 Absorbs rainfall, minimizing risk of floods and
sedimentation of waterways
 Provides recreation on land and water
 Protecting space while it is still relatively inexpensive,
ensures room for parks and natural areas against
development
Quality Education
Goal: A quality, lifelong education equally
accessible to all, whereby individuals learn to be
critical thinkers and engaged citizens with an
understanding of and respect for the systems that
support civilization (social, economic,
environmental); and which provides students
with the knowledge and skills necessary for
employment and personal fulfillment.
11.
High School Graduation Rates
Why do we care?
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Demands for highly skilled, trained, educated
employees has steadily increased
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High school education minimum in the labor market
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Requirement for accessing various forms of higher
education and training
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Useful measure of what will be availabe to young
people later in life
13.
Student/Teacher Ratio
Why do we care?

Used to assess potential for student/teacher interaction
and communication

Reasonable proxy for establishing average class size
and student-teacher interaction
14.
Standardized Test Scores
Why do we care?

Performance on test provides understanding of how
many students are acquiring basic skills in reading,
math, writing.

Indication of whether students are being educated well
enough to meet needs.
15.
Higher Education
Why do we care?
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Strong education systems create large educated labor
easing location of high tech industries

Strong education systems help to prevent emigration of
students from region
Good Government
Goal: A community system of governing that is
efficient, effective, trustworthy, and responsible to
citizens and their needs; and that actively
promotes good citizenship and effective
16.
Voter Turnout
Why do we care?

Basic measure of how many of us are exercising the
right to self-government

Indicator of collective awareness of community
government
Decent Housing
Goal: A variety of desirable housing options for a
community members, at every income level
18.
Affordability of Rental Housing
Why do we care?
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An essential element in the well-being of community
members and economic success
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Lack of affordable housing hinders economic growth,
making it difficult for firms to maintain labor force
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High cost of housing hinders economic growth
19.
Home Prices vs. Income
Why do we care?
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Homeownership offers degrtee of security through
financial equity
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Establishes residents as long-term stakeholders in the
community
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Homeowners more likely to invest in physical
improvements and social programs to cohere the
community
20.
Trends in New Housing
Why do we care?
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Indicator sheds light on where new housing is being
built – urban, suburban, rural- to monitor suburban
sprawl considered a significant threat to sustainability
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Monitor range of community housing choices and prices
Healthy People
Goal: The highest opportunity for community
members to be healthy, with access to highquality health care and minimized exposure to
health risks
21.
Life Expectancy
Why do we care?

Reflects the health and well-being of community
population and relative access to resources that help
keep people alive.

Longer lives can adversely impact the environment and
requires responsible sustaiinable decision making
22.
Infectious Diseases
Why do I care?

Need control to counter catastrophic effect on public
health, social institutions, the economy
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Social cohesion diminished if poor or minorities suffer
more from infectious disease than middle class whites
23.
Asthma
Why do we care?
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Common respiratory condition often triggered by
environmental conditions as ozone concentrations, care
exhaust, dust mites, roaches, rats, mice, tobacco smoke.
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More a problem for low-income families and children
unable to avoid such conditions
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Asthma linked to other sustainability issues of poverty
and environmental health
24.
Occupational Safety and Health
Why do we care?
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Key fundamental rights that reflect values and define
social aspects of sustainability
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As basic right, problems impose economic costs on
affected households and community
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Injuries raise insurance rates, cost of doing business,
cost of goods and services
Efficient Transportation and Land Use
Goal: A choice of efficient, convenient, safe, and
affordable transportation and land use options,
providing access to jobs, shopping, recreational
centers, schools, airports, and rail centers
25.
Need for Road and Bridge Repairs
Why do we care?
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Accumulated road and bridge repairs is indicator of
whether the community’s economy, heavily dependent
on transportation, is being sustained.
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Increase in repairs suggests heading for physical and
economic bottlenecks and a constraint on the ability of
freight and people to move through the community
26.
Vehicle Miles Traveled Per Capita
Why do we care?
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VMT is a measure of transportation system
development – increase imposes costs, including time
lost from traffic congestion
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Economic competition compromised by delayed
workers, consumers, goods
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Vehicles significant source of pollution
27.
Workplace Transportation Options
Why do we care?
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Tracks location of new office complexes according to
accessibility to public transit and personal vehicle
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Location of development of major employment centers
today is key to steering land use patterns tomorrow
Natural and Ecological Integrity
Goal: Preserve and restore community’s
ecosystems and the full complement of species
that chare the community.
28.
Loss of Freshwater Wetlands.
Why do we care?
 One of the key components of environmental
sustainability and acts as natural filter for
ground water supply, reducing the need for
expensive investments in water purification
 Natural flood protection
 Habitat for migrating birds and other wildlife
 Incubators for sport and commercial fisheries
29.
Nesting Water Bird Populations
Why do we care?
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Birds at the top of the food chain and indicators of
general health of the ecosystem they inhabit
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Because reproductive systems sensitive to con
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contamination, good indicators of pollution
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Aquatic ecosystems filter pollution and sediments
30.
River Health
Why do we care?
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Level of dissolved oxygen (DO) in the river systems is
widely-used indicator of water quality and ability of
rivers to support aquatic and human life.
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Measure of how well community is sustaining natural
systems in face of development.
31.
Marine Water Quality
Why do we care?
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Quality of shellfish habitat way to track overall quality
of coastal ecosystems
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Share of shellfish habitat deemed safe for harvesting by
public officials is simple indicator of water quality and
ecosystem health
Protected Natural Resources
Goal: Maintain the community natural resource
base
31.
Total Energy Consumption
Why do we care?
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Changes in energy price or supply have direct impact
on all sectors of the economy.

Energy production and consumption create pollution in
form of greenhouse gases, toxins, and radioactive
waste.

Fossil fuels are non-renewable and therefore, our
energy system is likely unsustainable.
32.
Farmland
Why do we care?
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Farmland recharges our groundwater, provides habitat
for wildlife, protects soil
33.
Ocean and Bay Beach Closings
Why do we care?
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Highly visible events that can drive away potential
visitors and reduce revenues generated by coastal
tourism.

Closings usually due to storm water runoff, elevated
levels of bacteria or floating debris, failures in sewage
collection and treatment systems resulting in
unsustainable conditions for community health and
economy.
34.
Preserved and Developed Land
Why do we care?
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Rapid urbanization cuts into open space needed for
recreation, agriculture species habitat
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Maintaining a balance among conflicting land uses is
key element of sustainability
Minimal Pollution and Waste
Goal: Minimize the generation and accumulation
of pollution and waste; maximize the use of
efficient, clean, and sustainable energy sources;
and increase consumer choices for ecologically
friendly products.
35.
Greenhouse Gas Emissions
Why do we care?
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US is the largest emitter of greenhouse gases, 23%
contribution from 5% of its population
35. Drinking Water Quality
Why do we care?
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A community that cannot provide water to its citizens,
due to either natural or human contamination, cannot be
sustained.
36.
Solid Waste
Why do we care?
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Buried or burned solid waste can lead to ground water
pollution, poor air quality, land contamination, and
other forms of environmental degradation.

Political and social battles over where to locate and how
to pay for waste disposal facilities have been historically
contentious
37.
Air Pollution
Why do we care?

This indicator shows the number of days on which
ground level ozone, particulate matter, or carbon
monoxide was measured to be at unhealthy levels
somewhere in the community.

Many health problems are associated with poor
indoor air quality, which is often not measured in any
systematic way.