what is csr and why does it matter: keynote presentation to organization of american states working...

A History of Creating Innovative Partnerships

OAS Presentation – 11-Apr-02

What is CSR and Why Does It Matter?

OAS Working Group on Probity and Ethics

Special Session: Corporate Social Responsibility (CSR) April 11, 2002

Washington, DC

Presented by:

Wayne Dunn www.waynedunn.com

[email protected]



Presentation Objective and Outline

Provide an overview of CSR and some of its

drivers

Discuss how it can help to develop common

ground between the interests of national

governments, private sector, bi-lateral and

multi-lateral development agencies and

NGOs/Civil Society

Discuss some steps government can take to

encourage CSR



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



What is CSR

Business and local people/communities finding

and developing mutually beneficial activities,

e.g.,

– Poverty Alleviation

– Community Health

– Rural Development

– Local Capacity Development

– Infrastructure Support



Why does business care?

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, (former) 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 CEO Placer Dome

“social responsibility is a matter of hard-headed business logic”

John Browne, CEO BP-Amoco



Public Opinion

Environics Millennium poll (25,000 average

citizens in 23 countries on 6 continents)

Over 66% think companies should contribute to

broader societal goals

Over 20% of consumers have either rewarded

or punished companies for their social

performance in the past year


Page 11


So Why Should Governments Care

CSR can bring about alignment amongst key

constituents

Constituency Value/Benefit Created by CSR

National Governments Poverty alleviation, community health, rural development,

improved public acceptability of FDI, budget leverage

Private Sector

Companies

Reduced project risk, improved access to new business and

investment opportunities, improved public acceptability,

finance (costs and access)

Bi-lateral & Multi-

Lateral Development

Agencies

Poverty alleviation, community health, rural development,

improved leverage/impact of ODA investments

NGOs, Civil Society Poverty alleviation, community health, rural development,

openness to FDI


Page 12


Some Things Governments Can Do

Help identify ‘common-interest’ and collaboration opportunities between business and development interests

Encourage dialogue between business and development interests;

Provide businesses with a ‘development scan’ that identifies development programs, priorities and actors in areas where business is operating

Encourage ‘development’ focused government departments to explore synergies with business

Educate stakeholders on CSR


Page 13


WDA SD/CSR Framework©

Organizational ethos

Constructive

interaction Measuring &

monitoring

Projects & Operations


Page 14


Summary

CSR is increasingly important – being driven

by a host of global factors

It can help further objectives of National

Governments, Business, Development

Agencies and Civil Society

National governments can take steps to

encourage effective CSR


Page 15


Discussion