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Corporate Social Responsibility Management

Mr.Somwang Witayapanyanond23 April,2013

CSR

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Introduction toCorporate Social Responsibility

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Why CSR?• Moral ObligationHuman duty

• SustainabilityFor a long life business

• License to operateAcceptance from all stakeholder

• ReputationBrand name, awards, create share values

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CSR view points

• C: CorporateCompany (small , medium , large ), Big City, Non profit Organization (for social objectives)

• S : SocialPeople in all stakeholder. Near (customer , employee , community , ecology areas), Far ( competitors ,population , world)

• R : ResponsibilityEthics (no exploit, fairly), environment, safety, health, quality of life, economics, ecology, natural resources.

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Scope of CSR

• Total supply chain• From raw material to goods until end of

product life cycle

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CSR definition

Organization operation, response to internal and external , with balancing among economics , social and environment as competitiveness and sustain development.

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CSR property

• License to operate• Long term action• Reputation• Crisis prevention from economic, creative,

conflict, disaster• Share holder VS social (conflicts of interests)

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CSR input

• Money & materials• Machine & Manpower• Knowledge• Mental

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CSR check points

• Customer Loyalty• Sale increase• Continuous production• Proud and Cohesive Employee• Reputation• Government relation• Return of good license action• Never been attacking• Better social climate• NGO friendly• Barrier decrease

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CSR Driving

Politic

SocialEconomic

New Technology

Oversea ComingGlobalization

Competitor

CSR

Business survive

CompanyOther benefit balancing & sharing

Public service (health,environment,education,safety,life)

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CSR Management process

Planning

OrganizationEvaluation

Think

Leading

CSRManagement

Check Who

Do

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CSR people

Government

FamilyLocal

authority

Company

Community

Non profit Organization

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Social responsibility

• Network• Other corporate• Human right• Tax pay• Anti- corruption• Social ethics

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Social problems and Issues

• Global warming (CO2)• Alternative energy (Food areas VS Energy area)• Environment (Forestry VS Disaster)• High age > 60 years >10% (high take care)• Labour welfare• Corruption (high price products)• Poverty• Life science (health)

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Classification of CSR

• Process• Level• Resources• Activity• Development• Form• Work unit

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CSR : process classification

• CSR-after-processSocial activity after work time

• CSR-in-processAdded CSR in supply chain in work time ,environment ,transparency ,etc• CSR-as-processNone profit organization, government office• CSR-as-enterpriseSocial enterprise, take opportunity from injustices in social and want to change.

• CSR-as-BusinessTake the social problems to business, instrument for clean air, non toxic food , recycle from waste.

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CSR : Level classification

• Economic Responsibility

• Legal Responsibility

• Ethical Responsibility

• Philanthropic Responsibility

PhilEthicalLegal

Economic

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CSR : Resources classification

• Corporate-driven CSRUse profit from corporate and share to help social suffering

• Social-driven CSRUse profit from social when buy product and service, and declare the money per unit to help social suffering

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CSR : Activity classification• Cause promotionNon money(knowledge, work force , equipment) and money to help social problems

• Cause-related marketingDonate from the goods or service by % of sale in time interval through non profit organization

• Corporate social marketingSocial behavior change to good health , safety, environment

• Corporate philanthropyGive money as reactive by social request. Not to align the company vision.

• Community VolunteeringAs employee interest and company support for community project

• Socially responsible Business practiceBusiness social responsibility every process and help social to built-up quality of life

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CSR : Development classification• Generation1st Donate Activity for reputation and acceptance 2nd adapt business for social in process as strategic 3rd CSR built-up in country level and government

• VersionV 1.0 community relation org. Channel of donation , company image v 2.0 global common, innovative partnerships, stakeholder involvement

• StageS1 : profit return to social S2 : Setting organization structure support CSR S3 : Strategic CSR internal & external S4 : Integrated and network

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CSR : Form classification• Responsive CSRGood corporate citizen, negative impacts reduction from business, reactive treatment , as standards and legal, value image

• Strategic CSRProactive , linkage to social need, differentiation, support competitiveness in long term, base on break even.

• Creative CSRArt of CSR, Social Cohesiveness , common value as social, collaborative

Responsive Strategic Creative

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CSR : Work units classification• Private CSRCreate share value in long term• Public CSRGovernment, Industrial council, public policy, CSR standards, activity much more level than private.• People CSRNGOs, foundations, community group, create social values in life and environment

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Community responsibility

• Support• Labour• Environment Impacts• Openness• Local culture• Life together with peace

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Environment

• Nature– Forestry– River– Air– Ecology– Land

• Human Made– Culture

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Corporate Social ResponsibilityGuideline

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CSR Guidelines• Business compass for socialGood manage , justice , human right, customer care, social development, environment& quality of life, social innovative ,CSR reporting

• Social responsibility standardizationGood governance , human right, labour, environment , fairness, customer, community involvement and development

• ISO 26000Accountability , transparency , Ethical, stakeholder interest, Law, international norm, human right

• OECD : Guideline for multinational enterprisesEmployment & relation, environment, combating bribery, customer interest, science & technology, competition, taxation

• UN Global compactHuman right (support, inspect) , labour (freedom, non force, no child employ) , environment (support, up-quality, develop envi-friendly) , anti-corruption (all types)

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Social ResponsibilityIntegration

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Social responsibility Integration

Business Ethics

Good GovernanceCorporate Social Responsibility

Social Enterprise Sustainable Development

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Key of success of Social Enterprise

• Innovative (find some new for success)• Tenacity (challenge)• Passionate (strong belief)• Expertise (deeply in problems)• Infectiousness (idea spreader)• Focused (change in target)• Resourcefulness (skill in all resource collection)• Goal oriented (measurable results )• Leader (can inspire others)• Ecstasy (quality of life upgrade for others)

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Sustainable Development

• Money possibility• Environment friendly in all stages of work• Minimize negative impacts to community• Prevent and support to forestry, areas , local resources• Develop areas in low impact area• Maximize the transportation utilization for social• Minimize waste , reused promote• Energy conservation• Water efficiency• Support poverty can receive benefit

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The Tripple Bottom Line

Environment

Social Economic

Balance

Equal

Help

Sustain

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Competitive AdvantageOf CSR

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Competitive advantage Factors

Competitive advantage- Low cost- Differentiate

Efficiency Customerresponse

Innovation

Quality

DifferentiateSpeed , reliability , service , design , features , technology , personality , relationship

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Main Organization Capability for competitive advantage

Main Capability

OrganizationCapability

Performances-value-rare-cost to imitate-non-substitutable-organization

Competitive advantage

Competitive Strategic

Value chain analysisSustainability

Competitive

Resources-tangible-intangible

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Strategic Leadership in CSR

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CSR Strategic Leadership Functions

Vision

Social Architecture

Alignment

Plan : GoalImagine & Inspire

Trust

CSRLeader

Evaluating : CollaborationTo win the goal

Organizing : Design for CSR in structure & culture

Leading : Belief and buy-in

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Strategic CSR

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CSR Strategic Approach

• Obstructionist Approach ….Low Levelno responsibility , illegal• Defensive Approachminimum legal and ethics • Accommodative ApproachAs balance stakeholder, do as request• Proactive Approach ….High LevelLearning, finding for all stakeholder needs and supports

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Strategic Management Process

Long Term Objectives

Strategic Implement

Measure & Evaluation

Strategic Setting

External Factorsanalysis

Vision and Mission

Internal Factorsanalysis

Quantity & Quality

Behaviors

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CSR Strategic Target

• Innovative TargetThe new, technology improve• Excellence TargetThe good, the best, complete , perfect • Altruism TargetThe helpful, quality of life, happiness, safety• Heroism TargetThe effective of power, wining, number one

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CSR Initiatives

CSR InitiativesCause

Promotion

Cause-Related

Marketing

Corporate Social

Marketing

Socially Responsible

Business Practice

Community Volunteering

Corporate Philanthropy

CSR Initiatives

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Cause promotion InitiativeNon money(knowledge, work force , equipment) and money to help social problems• Social problems issuesPoverty, health, forest fire smoke, global warming, natural disaster• Support needsSupport at cause of social problems with care, persuasive : data collection, time, money and non-money donation, participation• Key of successRelated to customer and community, employee engage, local as owner, identify, continuous improvement

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Cause-related marketing InitiativeDonate from the goods or service by % of sale in time interval through non profit organization

• Social problems issuesNo house people, special disease case, children education , disaster• Support needsSpecific money amount, %of sale, % profit, as time frame• Key of successIssue selection many stakeholder concerns, select goods corresponding to social, research the idea and adapt for more attractive, less document concerns, transparency, clear objectives and condition with non-profit organization

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Corporate social marketing InitiativeSocial behavior change to good health , safety, environment ,or quality of life

• Social problems issuesNon smoke, energy conservation, zero waste, AIDS - diabetes - cancer protection, accidents, fire fighting, non toxic food/agriculture, pollution solving, forest re-habitation , • Support needsEmployee and sub-contractors, community• Key of successIssue selection many stakeholder concerns, employee volunteer, need consults to advice, long term activity, finding the key of behavior change, try to link with business or work

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Corporate philanthropy InitiativeCorporate Give money as reactive by social request. Not to align the company vision.

• Social problems issuesSocial activities• Support needsCash donation, grants, scholarships, health checks, mental consults, channel of distribution for OTOP, machine support,• Key of successIssue consideration, no in the same point of government support, measure the effective and stakeholder satisfaction,

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Good Supporting Principle

• PhilanthropyGive without return : objects (money , material) , mental (cheerful , caring) , wisdom (knowledge)

• CommunicationGood conversation, say facts

• UsefulnessMake it better, in nature and quality of life.

• ConnectingFormal and Informal, face to face, continuity

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Community Volunteering InitiativeAs employee interest and company support for community project

• Social problems issuesAs community and employee interesting• Support needsEmployee and contractors volunteer, time compensation, community needs,• Key of successAs for sustainable, linkage to company vision, volunteer, limited to expense budgeting, communication,

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Socially responsible Business practice InitiativeBusiness social responsibility every process and help social to built-up quality of life

• Social problems issuesSafety, environment, energy, hazardous, toxic vegetable, Fatty, fit and firm, family care, disable, quality of life • Support needsConsultants, local authorize, government officers concerns, • Key of successOpenness, do as talk,

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Organization ArchitectureFor CSR

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Basic of Organization Architecture• The Operating CoreBasic work for goods and service

• The Strategic ApexTop management for overview and integration

• The Middle LineMiddle management to link bottom line and top

• The TechnostructureAnalytic for standards

• The Support StaffSupport teams for problem solving and improvement

• The IdeologyIdeas of belief and culture for organization

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Integration Mechanism• Direct ContractAll specialists meeting for problem solving or new product development

• Liaison RolesCo-operation, informal relation to stakeholder concerns

• Task ForcesSpecific meeting group,

• Cross-Functional TeamDifference units, integration

• Integrating Roles and DepartmentsSynergy team

• Matrix StructuresUse matrix for setting team

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Organization CultureFor CSR

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Organization Culture as Onion• Artifacts ... Outer shieldAll signal and symbol, company rules, organization structure, uniform

• Patterns of BehaviorSpeech, documents, rite, participation

• Values and BeliefsGuideline for do and don’t, express behaviors

• Basic Assumptions … inner coreEnvironment related, truth, time, space, human nature, human relation, main concept in business