2005 Sep21 Corporate World Congress

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Maureen C. ShawWorld Congress ± Orlando, Fl 2005 1

Corporate Social Responsibility AnInternational Imperative

XVIIth World Congress on Safety and HealthOrlando, Florida

September 21, 2005

Maureen C. Shaw, President & CEOIAPA (Industrial Accident Prevention Association)

207 Queens Quay West, Suite 550Toronto, Ontario M5J 2Y3 www.iapa.ca

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Click to edit Master titleClick to edit Master title

stylestyle

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Maureen C. Shaw, President & CEO

IAPA (Industrial Accident Prevention Association)

1-800-406-IAPA (4272) www.iapa.ca

Corporate Social ResponsibilityCorporate Social Responsibility An International Imperative An International Imperative

September 21, 2005September 21, 2005




A World where risks are

controlled because everyonebelieves suffering and lossare morally, socially and

economically unacceptable

A World where risks are

controlled because everyonebelieves suffering and lossare morally, socially and

economically unacceptable




88 years of health & safety

225 committed, skilled employees

100 consultants / specialists

900 Volunteers

88 years of health & safety

225 committed, skilled employees

100 consultants / specialists

900 Volunteers

Alone we can do so little; togetherwe can do so much.

Helen Keller

Alone we can do so little; togetherwe can do so much.

Helen Keller




Consulting & Technical Services

Training and education

Integrated Management System

Over 100 products and services

Consulting & Technical Services

Training and education

Integrated Management System

Over 100 products and services

Divide each difficulty into as many pieces as is feasibleand necessary to solve it.

Ren e Descartes

Divide each difficulty into as many pieces as is feasibleand necessary to solve it.

Ren e Descartes




Collaborating Centre ILO-CIS / WHO

National/International collaboration

A focus on young and new workers

Centre of Health & Safety Innovation

Collaborating Centre ILO-CIS / WHO

National/International collaboration

A focus on young and new workers

Centre of Health & Safety Innovation

Coming together is a beginning; Keeping together is progress;Working together is success.

Henry Ford

Coming together is a beginning; Keeping together is progress;Working together is success.

Henry Ford




` More than 6,000 people die every day because of the workthey do for a living

` 2.2 million global work related fatalities every year(estimated for year 2001)

` Diseases related to work cause the most deaths amongworkers, hazardous substances cause 438, 489 deathsannually

` 268 million accidents per year worldwide

` World economic losses are equal to 4% of worlds GNP

Estimated Global Occupational Losses

International Labour Organization

Reports:

Source: ILO World Day for S&H at Work 2005: A Background Paper




Corporate Social Responsibility isnot the latest bullet or business fad,it is not a philanthropic idea. It is

an international imperative for bothbusiness and the countries we are

operating in.




` LEADERSHIP

` INTEGRITY

`RESPECT

` COMMITMENT

` RELATIONSHIPS

ITS ABOU T RESPONSI BLE CITIZENSHIP

Corporate Social Responsibility in a globalized industrial worldis about making the business investment and the communitypromise sustainable for the company and for the communitieswe operate in, its people and environment. It demandsresponsible governance-based principles of:




In the good old days, corporate social responsibilitymeant a gently paternalistic attitude toward employees,

discreet donations towards worthy causes and thecompany name on little league hockey or soccer

sweaters. Those were the days, assuming they everreally existed, when growth was good. The Conference

Board of Canada asserts that corporate social

responsibility has now become a vital part of a long-term, comprehensive approach to business success.

Traditional Attitudes




Traditional

Corporate

Responsibilities

Ensuring Health,

Safety, Wellness

& Security of

Employees

Management of Natural Resources

Conservation

MinimizingWaste

Recycling

MinimizingPollution

Compliance

withRegulations &

Legislation

Based on European SustainableCities Report

Traditional Corporate Responsibilities




Corporate

Community &

Workplace

Leadership

Imperatives

Sharing Best

Practices

Mentoring Concern for Individuals

Colleagues &

Neighbours

Social

Responsibility to

Community &

WorkplaceActivities

Support of Cultural

Heritage

PoliticalInfluence

Locally

NationallyMaureen C. Shaw - IAPA

Leadership Imperatives




Work is an indispensable basis of society, andfurthermore the process of work should be optimized by

guaranteeing decent working conditions for all.

The goal of the global community should be to guarantee auniversal minimum level in working conditions and inoccupational safety and health for all working people with thehelp of global strategies. The goal should be especially, toprotect the most vulnerable groups, such as children, migrant

workers, disabled people, aging workers, women and illiterateworkers.

Dr. Professor Jorma Rantanen, Finnish Institute of Occupational Health

Corporate International Imperatives




Traditional / LegalStructure of Corporations

The legally defined mandate of todays corporation is topursue relentlessly and without exception, its own self interest, regardless of the often harmful consequencesit might cause to others.

Currently, the most widely-used model in business isthe stockholder model, championed by Milton Friedman

who said the business of business is business ..Basically, profits are everything.




The obstacle to making any significant,broad-based progress in improving factory

health and safety conditions, not to mentionwages, hours, harassment and discrimination

in the global economy, is not a lack of guidelines or management CSR command-

and-control systems, or certificationschemes. The real obstacles are:




` Lack of political will by corporations to refrain fromtaking advantage of vulnerable countries and

desperate workers.` Lack of political will and perhaps lack of genuine

options, on the part of governments in the developingworld to enforce regulations and establish new ones.

` Lack of resources (financial, informational and political)of sweatshop workers to know what their rights are,to know how to protect themselves on the job, and tobe able to operationalize such knowledge.




Ten Drivers of CSR

` Reputation and brand management

` Business risk management

` Employee recruitment, motivation and retention

` Access to capital

` Learning and innovation

` Cost savings and operational efficiency

In 2002, the Conference Board of Canada examined the rationale behindsocial responsibility initiatives among Canadian companies. The NationalCorporate Social Responsibility Report Managing Risks, LeveragingOpportunities identifies nine common drivers that are the motivators:






Corporate Citizenship

` A diversified technology, media and financial servicescompany with 300,000 employees and customers on morethan 100 countries.

` An environment, health and safety (EHS) management system that applies to all GE businesses

` A consistent expectations of EHS performance at alllocations

` A standardized compliance auditing and task management that provide consistent reporting and measurement

` A supplier compliance program

General Electric (G.E.)General Electric (G.E.)





` Dofasco is Canada¶s most successful steel producer and a global industry leader with operations inMonterrey, Mexico

` For 91 years they have focused on building enduringrelationships with customers, shareholders,employees, suppliers and communities.

`

Committed to the principles of sustainability andcorporate social responsibility.

DofascoDofasco





` Dofasco is listed on the Dow Jones SustainabilityWorld Index, one of only 13 Canadian Companies. Sustainability-driven companies achieve theirbusiness goals by integrating economic,environmental, and social growth opportunities intotheir strategies.

`Dofasco has been recognized as a top 50 employerin Canada. Received the National Quality InstituteHealthy Workplace Award in 2002.

Dofasco (cont.)Dofasco (cont.)





` Canadas largest independent nuclear generating station with3,600 employees

` Achieved 9.6 million hours without an acute lost-time injury

` Its corporate values statement reads in part We will

` Always place nuclear safety as the overriding priority

` Accept personal responsibility for our own and others conventional and radiological safety

` Always take into account the environmental implications of what wedo

` Always place safety before commercial gain

` Strive for continuous improvement in safety awareness andperformance

Bruce PowerBruce Power




Reputation is not yours.

Someone else gives it to youbased on your performance.

Duncan Hawthorne, President & CEOBruce Power




While the achievements of the previous organizations areunique to each of them they are not operating in isolation.Many factors and forces are working to help businesses to

assume greater CSR.

New corporate models:New corporate models: Virtue Matrix corporate model

New International Standards:New International Standards: ISO 26000 social

responsibility guidelines

New Legislation:New Legislation: Canadian Bill C-45

New corporate Initiatives:New corporate Initiatives: Canadian CEO Health and Safety

Leadership Charter

Growing Support




Leverage Corporate CSR Opportunities

` Governance and management practices

` Human resources management

` Environment, health and safety

` Community investment and involvement, and

` Human rights

Understand the footprint your organization leavesin the world around you the following framework:




Understand your optionsUnderstand your options

Figure out what you can do better. Conduct a cost /benefit analysis of doing things better versus just staying

the course and build a strategic plan.

State your intentionsState your intentions

Create a social responsibility policy or adapt existingvision, mission and value statements to reflect yourorganizational commitment. Involve your best people inthe process and demonstrate top-level commitment





Set ExpectationsSet Expectations

Shift organizational efforts from achieving to exceedingthe minimum standards set by regulatory agencies.Identify, establish and work towards more ambitiouscorporate standards of performance

Create your own marketsCreate your own markets

Stimulate commerce and development at the bottom of the Worlds economic pyramid the position of most workers in developing countries.





100

2,000

4,000

Population in millions

$20,000 plus

$2,000-20,000

Less than $2,000

The World Pyramid

Purchasing power inPurchasing power inUS dollarsUS dollars

Most companies target consumers of the upper tiersof the economic pyramidcompletely overlooking the

business potential at its base the people at the bottom of the pyramid make up acolossal market

Most companies target consumers of the upper tiersof the economic pyramidcompletely overlooking the

business potential at its base the people at the bottom of the pyramid make up acolossal market




Set ExpectationsSet Expectations

Shift organizational efforts from achieving to exceedingthe minimum standards set by regulatory agencies.

Identify, establish and work towards more ambitiouscorporate standards of performance.

Create smart partnershipsCreate smart partnerships

Work with industry groups and/or other organizations to

create and promote voluntary standards. Share your ownsuccesses with others. Seek out organizations that canhelp you achieve your social responsibility goals.





Encourage greater accountability at all levels of societyEncourage greater accountability at all levels of society

` Workplaces have to show responsibility, but so do individuals,

communities, institutions and governments.

More transparency and accountabilityMore transparency and accountability

` Just being socially responsible is no longer enough.

Corporations have to make the process visible andaccountable. Voluntary reporting is a core component of CSR.





In organizations, real power and energyis generated through relationships.

The patterns of relationships and thecapacities to form them are more

important than tasks, functions, roles,and position.

Margaret Wheatly Leadership and the New Science




1. Bakan, Joel, The Corporation: the Pathological Pursuit of Profit and Power,Penguin Canada, 2004.

2. GE 2005 Citizenship Report, http://www.ge.com/en/citizenship.

3. Martin, Roger, "The Virtue Matrix," Harvard Business Review on CorporateResponsibility, Harvard Business School Publishing Corporation, 2003.

4. Garrett Brown, article to be published in Industrial Safety Hygiene News,September 2005

5. The National Corporate Social Responsibility Report: Managing Risks,Leveraging Opportunities, Conference Board of Canada,

http://www.conferenceboard.ca/documents/607-04NationalCSR-RPT.pdf.

6. Prahalad, C.K. and Allen Hammond, "Serving the World's Poor, Profitably,"Harvard Business Review on Corporate Responsibility, Harvard Business SchoolPublishing Corporation, 2003.

References



´A World where risks are controlled because everyone believes suffering´A World where risks are controlled because everyone believes sufferingand loss are morally, socially and economically unacceptable.µand loss are morally, socially and economically unacceptable.µ

Jennifer Quintal ² Age 9

Maureen C. ShawNSC Orlando, Fl 2005

Documents

2005 Sep21 Corporate World Congress