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CORPORATE SOCIAL RESPONSIBILITY
Companies voluntary integrate care for social issues and environment in their business activities.
CSR is good only as a strategic choice
1970s - transnational
ethic consumerism
Nestlé (powdered milk), Nike (child labor), L’Oreal (animal
experiments), McDonald’s (symbol of globalization)
Tanker Exxon Valdez 1989. polluted Alaska bay
250 000 sea birds kild, 300 seals, 250 eagles, 22 whales Billions eggs of salmons and herrings
passive economic damage 2.8 billion dollars
Penalty for polution 1,1 billion dolars
DEVELOPMENT OF CSR
70’s – Corporate Social Responsibility 1980 - International Union for Conservation of
Nature releases the "World Conservation Strategy”
1994 - The term Triple Bottom Line 1998 – United Kingdom – minister for CSR 2000 – Global Compact
CLIMATE CHANGE
The governance of the corporation is now as
important in the world economy
as the government of countries
James WolfensohnPresident, The World Bank Group
Corporate Governance
Triple bottom line
Triple bottom line
The concept of TBL demands that a company's responsibility lies with stakeholders rather than shareholders. In this case, "stakeholders" refers to anyone who is influenced, either directly or indirectly, by the actions of the firm
UNIONS
OWNERSSHAREHOLDERS
INVESTORS
BUSINESSASSOCATIONS
EDUCATIONAL INSTITUTIONS
PROFESSIONALORGANIZATIONS
MEDIA
INTERNATIONAL
INSTITUTIONS
LOCAL ANDREGIONAL
AUTHORITIES
GOVERNMENT
NGO’s
COMPANY
CSR – CHALLENGE OF COMMUNICATION
WITH STAKEHOLDERS
DIALOGUE WITH GOVERNMENT
COMMUNITY
BUSINESS PARTNERS
BASIC BUSINESS ACTIVITES
INFLUENCE OF BUSINESS =risk or oportunity?
Izvor: Amnesty International i Prince of Wales Business Leaders Forum (1999)
GLOBAL COMPACT (UN)
Strategic policy initiative for businesses respecting ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption
135 countries 6000 signatories CROATIA – 79 signatories Annual reportings
Precautionary approach
Greater environmental responsibility
Environmentally friendly technologies
Environmental Principles
Rio Declarationon Environment& Development
Make sure corporations are not complicit in human rights abuses
Support and respect human rights within business sphere of influence
Human Rights Principles
Universal Declaration of Human Rights
Freedom of associationand collective bargaining
Elimination of forced& compulsory labour
Abolition of child labour
Labour Principles
ILO Declarationon Fundamental
Principles and Rights at Work
Elimination of discrimination
Businesses should work against all forms of corruption, includingextortion and bribery.
Anti-Corruption Principle
United Nations Convention
Against Corruption
OUR PARTNERS
BUSINESS COUNCIL FOR SUSTAINABLE GROWTH CROATIAN CHAMBER OF ECONOMY NGO’S UNIONS UNIVERSITIES CONSUMERS ASSOCIATIONS COMPANIES BANK ASSOCIATIONS MEDIA LOCAL ASSOCIATIONS GOVERNMENT
WHAT DO WE DO?
GREEN OFFICE WORKSHOPS FOR COMPANIES VOLUNTARY ACTIONS CSR INDEX – ANNUAL AWARD TRANSFERING KNOWLEDGE TO SME ASSISTANCE WITH REPORTING
GREEN OFFICE PROJECT
USING OFFICE EQUIPMENT IS MORE EXPENSIVE THAN BUYING IT
HEATING <1-2 DEGREES = 5% SAVINGS
<5 DEGREES = 15% SAVINGS PRINTERS – TWO SIDE PRINTING, RELOADING CATRIDGE BETTER PRINTERS – SAVINGS UP TO 45% IN 5 YEARS
SAVING BULBS – SAVINGS UP TO 70% IN 4 YEARS
COMPUTERS ON STAND BY…
GAINS FROM CSR
11 OF 16 BIGGEST CROATIAN COMPANIES ARE
GLOBAL COMPACT SIGNATORIES
BETTER IMAGE SKILLED AND EDUCATED EMPLOYEES HIGHER MOTIVATION LOWER RISKS SUSTAINABILITY ENERGY SAVINGS
GOOD PRACTICES IN CROATIA HIGH PENALTIES FOR ENVIROVMENT ENDANGER HIGH PENALTIES FOR CORRUPTION EMPLOYERS HAVE TO PROVE THAT THEY DIDN’T
DISCRIMINATE WORKERS COLLECTIVE AGREEMENTS GOOD PRACTICES FROM FOREIGN COMPANIES CORPORATIVE PHILANTROPHY EDUCATION FOR EMPLOYEES
GOOD EXAMPLES – human resources DROGERIE MARKT – 14 salaries the most desirable employer
DUKAT – 3 years education for young employees (plus CSR educiation)
education of managers (plus CSR education) IT education for workers, tehnical skills, languages cooperation with Agronomics university – education of
subcontractor in milk production internal transfer of knowledge
GOOD EXAMPLES – human resources BELUPO Reward “Employer – partner” 1,500 euros for parturient woman Financing students of pharmacy Education of managers, career development,
teambuilding
Corporate Social Responsibility?
GOOD EXAMPLES – PHILANTROPY ZABA, T-HT ADRIS FOUNDATION KNOWLEDGE AND INOVATIONS (EDUCATION OF STUDENTS)
CREATIVITY (ARTISTS CREATIVITY)
ECOLOGY AND HARITAGE (ENVIRONMENT PROTECTION)
DONATING HUMANITARIAN PROJECTS AND HELPING
CHILDREN WITHOUT PARENTS
GOOD EXAMPLES - ENVIRONMENT VETROPACK STRAZA
Modern SANITARY DUMP (1997.) The only purification machinery for all glass waste
in Croatia (1999.) News glass furnaces – reducing CO2 emission Since 2003. revenue from selling secundary waste
is bigger than expenses for waste charge
GOOD EXAPLES – HUMAN RAIGHTS AND SOCITEY PROGRESS SMS
Flexibility to needs and iniciatives of local
communities
Employing of marginalized groups (invalids,
single parents, older workers)
Fund for young people without parents
Revitilazing of after-war communities
Case Study: Ethical Dilemmas Scenario One – patriotism vs. price?
You are the managing director of a retail company(supply of children’s jackets for resale).
You have received a quote from a Iraqi company
for 5 dolars per jacket and from an Albania-based
company for 3 per jacket.
Your company has a reputation for being very patriotic
and buying locally. Which of the quotes would you recommend that your head buyer accept?
Case Study: Ethical Dilemmas Scenario Two – labour practices vs. price?
Your chief buyer has received a quote from aIraqi company for 5 dolars per jacket and from aunknown Pakistan-based company for 3 dolars per jacket. However, the Iraqi News Agency has recently reported on problems with child labour in the Pakistan garment industry. Your company has a reputation for excellent workplace practices.Which of the quotes would you recommend thatyour head buyer accept?
THANK YOU!!!
