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Wayne Dunn's keynote address to the Inaugural Ghana/Canada CSR Seminar. March 2006. Accra, Ghana www.waynedunn.com
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A History of Creating Innovative Partnerships
Page 1
Canada/GIMPA
CSR Seminar
Corporate Social Responsibility
Integrating financial, social and
environmental value creation CANADA/GIMPA
CSR SEMINAR
23-Feb-06
Accra, Ghana
Presented by:
Wayne Dunn [email protected]
A History of Creating Innovative Partnerships
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Canada/GIMPA
CSR Seminar
Presentation Objective and Outline
Define CSR and Social Investment;
Discuss rationale and driving forces for CSR
and social investment;
Develop understanding of relevance of CSR to
business community;
Brief description of two case studies
Questions and discussion.
A History of Creating Innovative Partnerships
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Canada/GIMPA
CSR Seminar
What is CSR?
Corporate Social Responsibility (CSR)
A concept whereby companies integrate social and environmental concerns into their
business mission and operations, and in their interactions with stakeholders.
A History of Creating Innovative Partnerships
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Canada/GIMPA
CSR Seminar
Corporate Social Responsibility (CSR), Sustainable Development,
Social programs, Community Relations
Terms are often used interchangeably
Definition
“CSR is the continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the workforce and their
families as well of the local community and society at large”
Definitions
Financial
Responsibility
Environmental
Responsibility
Corporate Social Responsibility
(Sustainable Development)
Social
Responsibility
WBCSD
Diagram
A History of Creating Innovative Partnerships
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CSR Seminar
The New Reality of Business
A History of Creating Innovative Partnerships
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CSR Seminar
“By working together to mobilize sustainable investment in the Least Developed Countries, government, business and civil society give hope and opportunity to the world’s poorest”
Kofi Annan
UN Global Compact Secretary-General
CSR is a Global Phenomena
A History of Creating Innovative Partnerships
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CSR Seminar
CSR is:
Companies working in partnership with communities and others to address problems;
Companies promoting good values to their employees, suppliers, customers, partners;
Companies investing in social and economic development;
Companies being good corporate citizens;
Civil Society
Gov’t
&
Donors
Companies
A History of Creating Innovative Partnerships
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Canada/GIMPA
CSR Seminar
Why is CSR happening?
Globalized world is demanding more of business…
Global media – The CNNization of the world – remote local issues direct to television screens
Proliferation of NGOs and CBOs – direct, well organized and financed support to communities
Internet and other communications innovations – direct communications from remote projects to worldwide audience
Global Democratization – increased attention to local issues
A History of Creating Innovative Partnerships
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Canada/GIMPA
CSR Seminar
Why is this happening (cont)
Emergence of Global Standards
– Equator Principles – World Bank/IFC
Environment and Social Standards adopted by
private banks
World Bank/IFC Global Review of Extractive
Industries
A History of Creating Innovative Partnerships
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Canada/GIMPA
CSR Seminar
Shareholder Pressures
‘Socially conscious’ shareholders
Social Investment Funds – Socially responsible investment refers to making investment decisions
based on a company’s social and environmental practices and on their corporate values and ethics).
The Financial Markets
– Dow Jones Sustainability Index (http://www.sustainability-index.com/)
– FTSE Sustainability Index (FTSE4Good) http://www.ftse4good.com/
– Domini 400 Social Index (DSI) http://www.domini.com/
A History of Creating Innovative Partnerships
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CSR Seminar
Pressure: Consumers, Customers
A History of Creating Innovative Partnerships
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CSR Seminar
Social License
An emerging phenomena
In addition to more traditional state issues licenses and regulatory approvals
Based on the principle that communities and local interests have a valid role in determining whether or not a project will proceed
Communities have inserted themselves into the regulatory approval/permitting process and can easily disrupt operations that they disapprove of
A History of Creating Innovative Partnerships
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CSR Seminar
Why focus on social license
Social Performance is key to Financial Performance “In a transparent, globalized world, economic performance, environmental performance and social performance hang together. Business is realizing that it has become an integral part of society and now has wide-ranging responsibilities… shareholder value and social responsibility support each other” Göran Lindahl, President and CEO Asea Brown Boveri (ABB)
“Our commitment to community development “represent(s) an added cost, but is an essential investment in our future…(and) should help us to achieve greater profitability”. Jay Taylor (former) CEO Placer Dome
“social responsibility is a matter of hard-headed business logic” John Browne, CEO British Petroleum
A History of Creating Innovative Partnerships
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CSR Seminar
Why focus on social performance
“Seven of the top ten U.S. home improvement retailers, including Home Depot, have issued restrictive lumber buying policies in the wake of an aggressive campaign by environmentalists While industry is still sorting exactly what this means, there is no doubt that it threatens a significant share of the traditional market for BC forest products.” Globe and Mail – Aug 25, 2000
“social responsibility is a matter of hard-headed business logic” John Browne, CEO British Petroleum
A History of Creating Innovative Partnerships
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CSR Seminar
Some CSR Examples
Placer Dome Care Project
– South Africa, Mozambique, Botswana, Lesotho and Swaziland
– Poverty alleviation
– Community health
– Capacity development
– HIV/AIDS
A History of Creating Innovative Partnerships
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CSR Seminar
CSR Examples
Local Economic Development in Porgera Valley
Papua New Guinea
Systematic look at sustainable communities
Alternative economic livelihoods
Attracting national and international development stakeholders
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CSR Seminar
MDGs and Social License
Millennium Development Goals Social License 1) Eradicate extreme poverty and hunger a
2) Achieve universal primary education a
3) Promote gender equality and empower women a
4) Reduce child mortality a
5) Improve maternal health a
6) Combat HIV/AIDS, malaria and other diseases a
7) Ensure environmental sustainability a
8) Develop a global partnership for development a
A History of Creating Innovative Partnerships
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CSR Seminar
Changing Roles and Responsibilities
Business – Traditional
Make profit
Pay taxes
Obey all laws
Deal directly with government of
permitting and regulatory issues
Self contained projects with impacts
isolated geographically
Internal decision making processes
Responsible to shareholders only
A History of Creating Innovative Partnerships
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CSR Seminar
Changing Roles and Responsibilities
Business - New Triple bottom line (financial, social and
environmental performance)
Support sustainable development
Deal with a variety of stakeholders
Inter-connected projects with global markets and impacts
Transparent decision making processes
Management of Reputational Capital
A History of Creating Innovative Partnerships
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CSR Seminar
Summary
Define CSR and Social Investment;
Discuss rationale and driving forces for CSR
and social investment;
Develop understanding of relevance of CSR to
business community;
Brief description of two case studies
A History of Creating Innovative Partnerships
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Canada/GIMPA
CSR Seminar
Question and Answer
Wayne Dunn
