Corporate Social Responsibility (CSR)Corporate Social Responsibility (CSR)

in Europein Europe

Tobias SchillerTobias Schiller

StructureStructure

1.1. Theory: What means CSR?Theory: What means CSR?

•• Introduction to CSRIntroduction to CSR

•• About stakeholdersAbout stakeholders

•• Business & CSR: benefits for companiesBusiness & CSR: benefits for companies

•• Consumers & CSRConsumers & CSR

2.2. CSR in Europe: Looking for a frameworkCSR in Europe: Looking for a framework

•• Important steps on the way to an European frameworkImportant steps on the way to an European framework

•• Key stakeholders in the debateKey stakeholders in the debate

3.3. Certification: SA8000Certification: SA8000

4.4. Good Practice I: The Good Practice I: The FairTrade FairTrade LabelLabel

5.5. Good Practice II: Sustainability Report Deutsche Good Practice II: Sustainability Report Deutsche Telekom Telekom AGAG

6.6. RRéésumsuméé

Theory:Theory:

What means CSR?What means CSR?1

Back to the Sustainability TriangleBack to the Sustainability Triangle……

sustainablesustainable

economicaleconomical

ecologicalecological

socialsocial

??

Product DesignProduct Design

Eco-LabellingEco-Labelling

LCALCA

SCMSCM

ProcurementProcurement

FinanceFinance

About ResponsibilitiesAbout Responsibilities

““Sustainable companies have three kinds ofSustainable companies have three kinds of

responsibility: responsibility: economic, environmentaleconomic, environmental and and socialsocial..

Corporate social responsibility is an integral part. ItCorporate social responsibility is an integral part. It

is about integrating the issues of the is about integrating the issues of the workplace,workplace,

human rights,human rights, the the communitycommunity and the and the marketplacemarketplace

into core business strategies.into core business strategies.””(www.(www.csrcampaigncsrcampaign.org).org)

About social responsibilityAbout social responsibility

““You're confronted with corporate socialYou're confronted with corporate social

responsibility every day, even without noticing it.responsibility every day, even without noticing it.

It's everywhere: When customers enter aIt's everywhere: When customers enter a

supermarket and choose products with a supermarket and choose products with a goodgood

reputation;reputation; when investors put money into a when investors put money into a

company with an company with an exemplary record;exemplary record; or when or when

companies companies invest in the futureinvest in the future or or training of theirtraining of their

employees,employees, and and gain loyalty and commitmentgain loyalty and commitment

in return.in return.””(www.(www.csrcampaigncsrcampaign.org).org)

Corporate Social Responsibility Corporate Social Responsibility –– Definitions Definitions

CSR isCSR is……

“…“…the alignment of the alignment of businessbusiness operations with operations with socialsocial values. values.””(www.(www.csrwirecsrwire.com 2004).com 2004)

“…“…essentially a concept whereby companies decide essentially a concept whereby companies decide voluntarilyvoluntarily to to

contribute to a contribute to a better societybetter society and a and a cleaner environmentcleaner environment..””(DG Employment and Social Affairs 2001)(DG Employment and Social Affairs 2001)

“…“…a concept whereby companies integrate social anda concept whereby companies integrate social and

environmental concerns in their business operations and in theirenvironmental concerns in their business operations and in their

interaction with their stakeholdersinteraction with their stakeholders on a voluntary basis. on a voluntary basis.””(DG Employment and Social Affairs 2002)(DG Employment and Social Affairs 2002)

Corporate Social Responsibility Corporate Social Responsibility –– Definitions Definitions

CSRCSR……

“…“…means not only fulfilling legal expectations, but alsomeans not only fulfilling legal expectations, but also

going beyond compliancegoing beyond compliance and and investing investing ‘‘moremore’’ into human capital, into human capital,

the environment and the relations with stakeholders.the environment and the relations with stakeholders.””(DG Employment and Social Affairs 2001)(DG Employment and Social Affairs 2001)

“…“…describes a company's commitment to be describes a company's commitment to be accountable to itsaccountable to its

stakeholdersstakeholders in its operations and activities. in its operations and activities.”” (www.(www.euractiveuractiv.com 2003).com 2003)

“…“…means treating stakeholders in an means treating stakeholders in an ethically responsible wayethically responsible way..””(www.(www.csrwirecsrwire.com 2004).com 2004)

CSR is notCSR is not……

……a substitute for a substitute for legal regulationslegal regulations..

……a substitute for a substitute for existing social rightsexisting social rights and standards. and standards.(after DG Employment and Social Affairs 2001)(after DG Employment and Social Affairs 2001)

CSR: DimensionsCSR: Dimensions

Internal DimensionsInternal Dimensions

Human resources managementHuman resources management

Health and safety at workHealth and safety at work

Adaptation to changeAdaptation to change

Management of environmental impacts and natural resourcesManagement of environmental impacts and natural resources

External DimensionsExternal Dimensions

Local communitiesLocal communities

Business partners, suppliers and consumersBusiness partners, suppliers and consumers

Human rightsHuman rights

Global environmental concernsGlobal environmental concerns

Examples for CSR practiceExamples for CSR practice

Codes of Conduct / Ethical GuidelinesCodes of Conduct / Ethical Guidelines

European Sugar IndustryEuropean Sugar Industry

Social Partnership AgreementsSocial Partnership Agreements

Certifications, social labelsCertifications, social labels

SA8000SA8000

FairTradeFairTrade

Social Reporting / Sustainability ReportsSocial Reporting / Sustainability Reports

Management tools & guidelinesManagement tools & guidelines

Self-evaluation toolsSelf-evaluation tools

Step-by-step instructions Step-by-step instructions ““how to integrate long-term unemployedhow to integrate long-term unemployed””

Social AwardsSocial Awards

Preis Preis ““Freiheit Freiheit und und VerantwortungVerantwortung””

““Best Work Places in the EUBest Work Places in the EU””

CSR: related concepts & termsCSR: related concepts & terms

Corporate CitizenshipCorporate Citizenship

……voluntary contributions to society, e.g.voluntary contributions to society, e.g.

SponsoringSponsoring

FoundationsFoundations

““Corporate VolunteeringCorporate Volunteering””

Socially Responsible Investment (SRI)Socially Responsible Investment (SRI)

……the way sustainable companies raise capitalthe way sustainable companies raise capital

Corporate GovernanceCorporate Governance

the system through which a companythe system through which a company’’s objectives are sets objectives are set

managing the relations and interactions between stakeholdersmanaging the relations and interactions between stakeholders

About StakeholdersAbout Stakeholders

Primary stakeholdersPrimary stakeholders

ManagementManagement

Shareholders / OwnersShareholders / Owners

EmployeesEmployees

ConsumersConsumers

ContractorsContractors

Secondary stakeholdersSecondary stakeholders

EnvironmentEnvironment

GovernmentGovernment

CommunityCommunity

Stakeholders Stakeholders –– and their interests and their interests……

IIööW W 20012001

Benefits of CSR activities for companiesBenefits of CSR activities for companies

Attracting and retaining good Attracting and retaining good employeesemployees

Increased Increased productivityproductivity

Better company Better company reputationreputation

Easier access to Easier access to capitalcapital

Improved Improved brand valuebrand value

Attracting Attracting consumersconsumers

Stakeholder relationships and ShareholderStakeholder relationships and Shareholder

value: is CSR financially profitable?value: is CSR financially profitable?

68% of the results of more than 100 empirical studies:68% of the results of more than 100 empirical studies:

positive relationshippositive relationship between corporate between corporate social performancesocial performance and and financialfinancial

performanceperformance

42 of 80 studies on CSR: 42 of 80 studies on CSR: positive impactpositive impact, 4: negative impact, 4: negative impact

Examples:Examples:

““public commitment to ethicspublic commitment to ethics””: 18% : 18% higher profithigher profit on average on average

stakeholder-balanced companies compared tostakeholder-balanced companies compared to

shareholder-only focused companies:shareholder-only focused companies:

four times the four times the growthgrowth rate rate

eight times the eight times the employmentemployment growth growth

Easier access to capital: CSR attracts Easier access to capital: CSR attracts more investmentmore investment (SRI!) (SRI!)

Better productivityBetter productivity

More consumersMore consumers

Consumers and CSRConsumers and CSR

Consumers Consumers more criticalmore critical on sustainable production: on sustainable production:

70%: company70%: company’’s commitment to s commitment to social responsibility is importantsocial responsibility is important

when buying a product or service when buying a product or service (CSR Europe 2000)(CSR Europe 2000)

20% 20% ““very willingvery willing”” to to pay morepay more for socially and environmentally for socially and environmentally

responsible products responsible products (CSR Europe 2000)(CSR Europe 2000)

86% 86% more likely buymore likely buy products from companies products from companies ””engaged in activitiesengaged in activities

to to help improve societyhelp improve society”” (Fleishman (Fleishman Hillard Hillard 1999)1999)

~16% ~16% ““frequently frequently buy or boycott productsbuy or boycott products because of manufacturer because of manufacturer’’ss

reputationreputation”” ((Cowe Cowe and Williams)and Williams)

UK: UK: 14 14 bnbn. (2000) generated by . (2000) generated by ethical consumer purchasesethical consumer purchases(Co-operative Bank UK)(Co-operative Bank UK)

Consumers and CSRConsumers and CSR

(www.(www.csreuropecsreurope.org).org)

Consumers and CSRConsumers and CSR

((IIööW W 2001)2001)

CSR in Europe:CSR in Europe:

Looking for a frameworkLooking for a framework2

CSR in Europe CSR in Europe – – Looking for a frameworkLooking for a framework

European summitEuropean summit in Lisbon (in Lisbon (March 2000)March 2000)

new strategic goal tonew strategic goal to "make Europe the "make Europe the most competitivemost competitive and and

dynamicdynamic knowledge-based economy in the world, capable of knowledge-based economy in the world, capable of

sustainable economic growthsustainable economic growth, with more and better jobs and greater, with more and better jobs and greater

social cohesionsocial cohesion..””

Call for a Call for a European discussionEuropean discussion on CSR on CSR

Negative impacts of globalizationNegative impacts of globalization

Loss of confidence in global enterprisesLoss of confidence in global enterprises

No common language in CSRNo common language in CSR

No common CSR-toolsNo common CSR-tools

CommissionCommission’’s s Green PaperGreen Paper on CSR (July 2001) on CSR (July 2001)

Green Paper on CSRGreen Paper on CSR

Main targets:Main targets:

launch a launch a debatedebate, how the EU can, how the EU can

promotepromote corporate social corporate social

responsibility on European andresponsibility on European and

international levelinternational level

set up a European set up a European frameworkframework

develop develop standardsstandards for for

social auditing and reportssocial auditing and reports

Emphasis on:Emphasis on:

EmployeesEmployees as major stakeholders as major stakeholders

CSR as a CSR as a voluntaryvoluntary concept concept

Consultation ProcessConsultation Process

CSR in Europe CSR in Europe – – Looking for a frameworkLooking for a framework

CommissionCommission’’s Communications Communicationas follow-up to green paperas follow-up to green paper(July 2002)(July 2002)

Synthesis of Synthesis of Consultation ProcessConsultation Process(mostly positive)(mostly positive)

Call for more Call for more convergenceconvergence and andtransparencytransparency of CSR practices of CSR practicesand tools:and tools:

Codes of conductCodes of conduct

Management StandardsManagement Standards

Measurement, Reporting andMeasurement, Reporting andAssuranceAssurance

LabelsLabels

Socially ResponsibleSocially ResponsibleInvestment (SRI)Investment (SRI)

EU Multi-Stakeholder Forum on CSREU Multi-Stakeholder Forum on CSR

EU Multi-stakeholder Forum an CSREU Multi-stakeholder Forum an CSR

Aims:Aims:

Promotion, Innovation, Transparency and ConvergencePromotion, Innovation, Transparency and Convergenceof of CSR practiceCSR practice

Acquisition of Acquisition of practical suggestionspractical suggestions

Composition:Composition:

Chair:Chair: European Commission European Commission

EmployersEmployers

Trade UnionsTrade Unions

Civil Society, NGOs (Amnesty International, Oxfam,Civil Society, NGOs (Amnesty International, Oxfam,……))

Business Networks (CSR Europe, World Business Council on SustainableBusiness Networks (CSR Europe, World Business Council on SustainableDevelopment,Development,……))

2004: Presentation of results / report to the commission2004: Presentation of results / report to the commission

Certification:Certification:

SA8000SA80003

Social Accountability InternationalSocial Accountability International

US-based, non-profit organizationUS-based, non-profit organization

Advisory BoardAdvisory Board with expertise in: with expertise in:

Human rightsHuman rights

Child labourChild labour

Labour rightsLabour rights

SRISRI

Auditing techniquesAuditing techniques

Management of large supply chainsManagement of large supply chains

SA8000 Certification: Key FactsSA8000 Certification: Key Facts

independent, expert certificationindependent, expert certification

international labour rightsinternational labour rights

involvement by all involvement by all stakeholdersstakeholders, including, including

workers and trade unionsworkers and trade unions

companiescompanies

socially responsible investorssocially responsible investors

NGOsNGOs

GovernmentsGovernments

public public reportingreporting

targeting targeting consumerconsumer and and investorinvestor concerns concerns

SA8000: Certification CriteriaSA8000: Certification Criteria

No Child LabourNo Child Labour

No Forced LabourNo Forced Labour

Health and SafetyHealth and Safety

Freedom of Association and Right to Collective BargainingFreedom of Association and Right to Collective Bargaining

No DiscriminationNo Discrimination

DisciplineDiscipline

Working HoursWorking Hours

Decent CompensationDecent Compensation

SA8000 Certified Facilities (Examples)SA8000 Certified Facilities (Examples)

Dole Philippines, IncorporatedDole Philippines, Incorporated

Chiquita BrandsChiquita Brands

Honda Logistic Centre Italy S.p.A.Honda Logistic Centre Italy S.p.A.

Castrol Castrol Vietnam Ltd.Vietnam Ltd.

Toshiba Information Equipment (Philippines), Inc.Toshiba Information Equipment (Philippines), Inc.

Randstad Randstad Belgium Belgium nvnv

TNT Global Express (Italy) S.p.ATNT Global Express (Italy) S.p.A

Good Practice I:Good Practice I:

The The FairTradeFairTrade-Label-Label4

The The FairTrade FairTrade / / TransFair TransFair LabelLabel

FairTrade FairTrade LabellingLabelling

Organization (FLO, Bonn)Organization (FLO, Bonn)

17 Partners17 Partners in Europe, Japan in Europe, Japanand USAand USA

> 800,000 > 800,000 producers, workersproducers, workersand their and their dependantsdependants in more in morethan 45 countries benefit fromthan 45 countries benefit fromlabelled labelled FairtradeFairtrade

Main Target: To improve theMain Target: To improve theposition of disadvantagedposition of disadvantagedproducers in the producers in the developingdevelopingcountriescountries

FairTradeFairTrade: Products: Products

agricultural products:agricultural products:Cocoa, Coffee, TeaCocoa, Coffee, Tea

Dried Fruit, Fresh FruitDried Fruit, Fresh Fruit

HoneyHoney

JuicesJuices

Nuts & SeedsNuts & Seeds

RiceRice

SugarSugar

WineWine

Manufactured products:Manufactured products:FootballsFootballscontinuously being extended, e.g. to textiles and clothingcontinuously being extended, e.g. to textiles and clothing

FairTrade FairTrade Certification:Certification:

International International FairTrade FairTrade StandardsStandards

Minimum RequirementsMinimum Requirements

decent decent wageswages

right to join right to join trade unionstrade unions

good good housinghousing provided where relevant provided where relevant

Health, safetyHealth, safety and and environmentalenvironmental standards standards

no no childchild or or forced labourforced labour

Progress requirementsProgress requirements

encourage producer organisations to continuouslyencourage producer organisations to continuously

•• improve improve working conditionsworking conditions and and product qualityproduct quality

•• increase the increase the environmentalenvironmental sustainability sustainability

•• invest in the invest in the developmentdevelopment of the organisations and their of the organisations and their

producers/workersproducers/workers

FairTrade FairTrade Certification (2)Certification (2)

Trading standards:Trading standards:

traders have to:traders have to:……..

pay a price to producers that covers pay a price to producers that covers costs of sustainablecosts of sustainable

production and livingproduction and living

pay a premium that producers can pay a premium that producers can invest in developmentinvest in development

partially partially pay in advancepay in advance when producers ask for it when producers ask for it

sign contracts that allow for sign contracts that allow for long-term planninglong-term planning and sustainable and sustainable

production practicesproduction practices

product-specific standards:product-specific standards:

minimum minimum qualityquality

priceprice

processingprocessing requirements requirements

FairTrade FairTrade – – Auditing and ControllingAuditing and Controlling

FairTradeFairTrade::

Examples for Licensees in GermanyExamples for Licensees in Germany

J. J. Darboven Darboven GmbH & Co.KGGmbH & Co.KG

Karstadt Karstadt Coffee GmbHCoffee GmbH

Hermann Hermann Pfanner GetrPfanner Geträänkenke

GesGes.m.b.H..m.b.H.

Gepa mbHGepa mbH

Der TeeladenDer Teeladen

Teekanne Teekanne GmbHGmbH

Good Practice II:Good Practice II:

Sustainability ReportSustainability Report

Deutsche Deutsche Telekom Telekom AGAG5

Deutsche Deutsche TelekomTelekom: : NachhaltigkeitsberichtNachhaltigkeitsbericht

Deutsche Deutsche Telekom Telekom 20012001

Stakeholder Stakeholder der Deutschen Telekomder Deutschen Telekom

Deutsche Deutsche Telekom Telekom 20012001

Deutsche Deutsche Telekom Telekom 20012001

Deutsche Deutsche TelekomTelekom::

KenngrKenngrößößen der Nachhaltigkeiten der NachhaltigkeitEinheit 1997 1998 1999 2000

Ökonomie

Konzern-Umsatz Milliarden Euro 34,5 35,1 35,5 40,9

Konzern-Überschuss Milliarden Euro 1,7 2,2 1,3 5,9

Anteil des Umsatzes imAusland

Prozent 7 7 11 19

Umsatz pro Mitarbeiter Tausend Euro 160 173 179 200

Ökologie

Energieverbrauch Millionen kWh 3 800 3 790 3 490 3 330

CO2-Emissionen Millionen Tonnen 2,19 2,15 1,96 1,67

Anzahl der im Unternehmeneingesetztenumweltgefährdenden Stoffe

Zahl absolut 1 858 632 571 469

Kraftstoffverbrauch Durchschnitt in Liter/100 km 8,4 8,3 7,6 7,7

Abfallaufkommen Tonnen 103 000 103 000 75 000 79 000

Soziales

Mitarbeiter Stellen insgesamt 191 000 179 000 196 000 227 000

Beschäftigte in ausländischenBeteiligungen

Stellen insgesamt k.A. 16 815 23 098 47 818

Ausbildungsplätze Stellen insgesamt 6 662 6 802 7 333 8 117

Anteil Frauen inFührungspositionen

Prozent 12,7 14,3 16,4 18,0

BspBsp: : ArbeitsArbeits- und - und GesundheitsschutzGesundheitsschutz

Change- und StressmanagementChange- und Stressmanagement

GesundheitstageGesundheitstage

RRüückenschulungckenschulung

Massage am ArbeitsplatzMassage am Arbeitsplatz

arbeitsmedizinischearbeitsmedizinischeVoruntersuchungen undVoruntersuchungen undBeratungenBeratungen

Gesundheitschecks fGesundheitschecks füürrFFüührungskrhrungskrääftefte

reisemedizinische Betreuung beireisemedizinische Betreuung beiberufsbedingtenberufsbedingtenAuslandsaufenthaltenAuslandsaufenthalten

160 Sicherheitsingenieure /160 Sicherheitsingenieure /FachkrFachkrääfte ffte füür Arbeitssicherheitr Arbeitssicherheit

52 Betriebs52 Betriebsäärzterzte

Deutsche Deutsche Telekom Telekom 20012001

BspBsp: : „„Soziales Soziales EngangementEngangement““

160 Sozialarbeiter160 Sozialarbeiter

„„Erholungswerk Post PostbankErholungswerk Post Postbank

TelekomTelekom““

kostenloser Urlaub fkostenloser Urlaub füür behinderter behinderte

Kinder von MitarbeiternKinder von Mitarbeitern

SozialfondsSozialfonds

8 000 Arbeitspl8 000 Arbeitspläätze ftze füürr

Schwerbehinderte Schwerbehinderte + spezielle+ spezielle

BetreuungBetreuung

Deutsche Deutsche Telekom Telekom 20012001

BspBsp: : QualifikationQualifikation

„„Telekom Training CenterTelekom Training Center””: Weiterbildung: Weiterbildung

durch viele Qualifizierungsmadurch viele Qualifizierungsmaßßnahmennahmen

Tarifvertrag Tarifvertrag üüber die beruflicheber die berufliche

WeiterbildungWeiterbildung

InsgInsg. 100 200 h Umweltbildung (2000). 100 200 h Umweltbildung (2000)

UmweltbewusstseinUmweltbewusstsein

UmweltrechtUmweltrecht

GefahrgGefahrgüüterter

AbfallAbfall

8117 Ausbildungspl8117 Ausbildungspläätze (2000)tze (2000)

Telekom BusinessTelekom Business Academy Academy

Deutsche Deutsche Telekom Telekom 20012001

BspBsp: : „„Telekom als guter NachbarTelekom als guter Nachbar““

Beteiligung und Initiierung von Unternehmensnetzwerken imBeteiligung und Initiierung von Unternehmensnetzwerken im

Zusammenhang mit Lokaler Agenda 21Zusammenhang mit Lokaler Agenda 21

Beteiligung an Lokale Agenda 21-Prozessen in Beteiligung an Lokale Agenda 21-Prozessen in üüber 20 Kommunenber 20 Kommunen

Initiativen wie Initiativen wie „„Frauen / Senioren / Schulen ans NetzFrauen / Senioren / Schulen ans Netz““

Sozialtarife fSozialtarife füür Einkommensschwache, Studenten, r Einkommensschwache, Studenten, ……

Kostenlose Bereitstellung von 0800-Nummern fKostenlose Bereitstellung von 0800-Nummern füür sozialer soziale

EinrichtungenEinrichtungen

Spenden & SponsoringSpenden & Sponsoring

Engagement fEngagement füür Solidaritr Solidaritäät und Toleranzt und Toleranz

RRéésumsuméé6

Corporate Social Responsibility:Corporate Social Responsibility:

ZusammenfassungZusammenfassung

Soziale Verantwortung von Unternehmen als Soziale Verantwortung von Unternehmen als freiwillige Verpflichtungfreiwillige Verpflichtung, zu, zueiner besseren Gesellschaft beizutrageneiner besseren Gesellschaft beizutragen

InterneInterne und und externeexterne Dimension von CSR Dimension von CSR

StakeholderStakeholder-Konzept (Anspruchsgruppen) & Shareholder -Konzept (Anspruchsgruppen) & Shareholder ValueValue

Vorteile fVorteile füür Unternehmen; Konsumenten & CSRr Unternehmen; Konsumenten & CSR

AktivitAktivitääten in der EU:ten in der EU:

GrGrüünbuchnbuch „„EuropEuropääische Rahmenbedingungen fische Rahmenbedingungen füür die sozialer die sozialeVerantwortung der UnternehmenVerantwortung der Unternehmen““

KonsultationsprozessKonsultationsprozess –– Mitteilung der Kommission Mitteilung der Kommission

EuropEuropääisches Multi-Stakeholder Forumisches Multi-Stakeholder Forum

Zertifizierung: Das Beispiel Zertifizierung: Das Beispiel SA8000SA8000

Beispiele:Beispiele:

FairTrade FairTrade LabelLabel

Nachhaltigkeitsbericht Deutsche Telekom AGNachhaltigkeitsbericht Deutsche Telekom AG