Transformative Corporate Social Responsibility
According to Wayne Visser
Sanja Dolenec, mag. oec.
www.ecorl.it 1
Lecture Content Introduction A Critical Perspective Defining the DNA of CSR The Principles of CSR 2.0
www.ecorl.it 2
Introduction (1)
Corporate social responsibility (CSR) is a corporation’s initiatives to assess and take responsibility for company’s effects on environmental and social wellbeing
www.ecorl.it 3
Introduction (2)
We should judge the success of CSR by whether our communities and ecosystems are getting better or worse
www.ecorl.it 4
A critical perspective (1)
Ecological footprint has more than tripled since 1961 due to the spread of capitalism and Western lifestyles globally
www.ecorl.it 5
A critical perspective (2)
Climate change is evident and human activity is the main cause
According to The Economics and Climate Change the cost if action to reduce GHGs and avoid the worst impacts of climate change is about 1% of global GDP yearly
Inaction results in a oersistent annual loss of 5% of global GDP
www.ecorl.it 6
A critical perspective (3)
Poverty Capital flows to whereever the social or
environmental standards are lowest Unemployment problems affecting
developing regions 2.5 billion people still lack access to
improved sanitation facilities
www.ecorl.it 7
A critical perspective (4)
Inequality The top 20% of the population enjoys
more than 70% of total income, 2% for those in bottom 20%
Inequality between urban and rural populations in developing countries
www.ecorl.it 8
A critical perspective (5)
Corruption as one of the socio-economic cancers that aids and abets the poverty and inequality
www.ecorl.it 9
Defining the DNA of CSR (1)
The DNA responsibility bases: Value creation Good governance Societal contribution Environmental integrity
www.ecorl.it 10
Defining the DNA of CSR (2)
Value creation refers to economic developmnet, which contribute not only to enrichment of shareholders and executives, but improves the economic context in general (investing in infrastructure, creating jobs, etc.)
www.ecorl.it 11
Defining the DNA of CSR (2)
Good governance includes the institutional effectiveness
If institution is not transparent and fair, this undermines everything else that CSR is trying to accomplish
www.ecorl.it 12
Defining the DNA of CSR (3)
Societal contribution refers to stakeholder orientation
Philanthropy as need
Today are more people in slavery than there were before it was officially abolished in the 1800s
www.ecorl.it 13
Defining the DNA of CSR (3)
Environmental integrity – not only minimising the damage but also to maintain and improve ecosystem sustainability
According to WWF’s Living Planet Index, a third of the biodiversity on the planed is vanished since they began monotoring 1970
www.ecorl.it 14
The principles of CSR 2.0 (1)
Transformative CSR, or CSR 2.0 focuses its activities on identifying and tackling the root causes of our present unsustainbility and irresponsibility following several principles
www.ecorl.it 15
The principles of CSR 2.0 (2)
Creativity Today’s standardisation does not foster
the kind of creativity that is needed to solve the complex social, environmental and ethical problems we face
www.ecorl.it 16
The principles of CSR 2.0 (3)
Scalability Companies need to educate their
customers to shop and live more sustainably and responsibly, to recognise social, environmental and ethical label, etc.
www.ecorl.it 17
The principles of CSR 2.0 (5)
Responsiveness Although companies are responding to
CSR issues, they are not genuinely responsive to the scale and urgency of stakeholder needs.
www.ecorl.it 18
The principles of CSR 2.0 (6)
Glocality In a complex CSR 2.0 world, companies
will have to become more sophisticated in understanding local contexts and finding the appropriate local solutions they demand, without forsaking universal principles
www.ecorl.it 19
The principles of CSR 2.0 (7)
Circularity The need for a circular economy where
all waste becomes „food” input to the cycles of nature and the cycles of industry
www.ecorl.it 20
Conclusion
It is evident the companies have to question the way they practice CSR concept in order to solve the world’s main environmental and social issues
Transformative approach to CSR is crucial
www.ecorl.it 21
Conclusion
www.ecorl.it 22