Se ha denunciado esta presentación.
Se está descargando tu SlideShare. ×

Corporate Sustainability - Rahdari - Sharif University - 2014

Próximo SlideShare
Zermatt Summit-manifesto
Zermatt Summit-manifesto
Cargando en…3

Eche un vistazo a continuación

1 de 80 Anuncio

Más Contenido Relacionado

A los espectadores también les gustó (19)

Similares a Corporate Sustainability - Rahdari - Sharif University - 2014 (20)


Más reciente (20)

Corporate Sustainability - Rahdari - Sharif University - 2014

  1. 1. In the name of God
  2. 2. Corporate Sustainability and ResponsibilityCSR 2.0 Lecturer: Amir Hossein RahdariCorporate Governance and Responsibility Development CentreCorporate Sustainability and Responsibility International
  3. 3. Outline The ontological reasoning behind CSR-Macro view (why CSR has failed?) CSR 2.0 CaseStudy:CocaCola,Patagonia,British-AmericanTobacco,BP, Ecovative,Enron,LehmenBrothers,Wal-Mart,Unilever,TOMShoes,AlittleWorld,BYD,Sainsbury,WTO,bhpbilliton,Puma,FujiXerox,,etc. Interface,Wholefood(ConsciousCapitalism)andBenandJerry’s
  4. 4. Has CSR failed as a Response??? ifeverycompanyontheplanetweretoadoptthebestenvironmentalpracticeofthe“leading”companies,theworldwouldstillbemovingtowardsuredegradationandcollapse. Paul Hawken Ibelievethatthevastmajorityofcompaniesfailtobe“good”corporatecitizens.Mostsustainabilityandcorporateresponsibilityprogramsareaboutbeinglessbadratherthangood.Theyareaboutselectiveandcompartmentalized“programs”ratherthanholisticandsystemicchange. Jeffrey Hollender
  5. 5. CSR and Corporate Sustainability and Responsibility CSR,thefullversionofwhatwehavetothat,isfocusedatthemicrolevel–supportingsocialorenvironmentalissuesthathappentoalignwithacompany’sstrategy,butwithoutnecessarilychangingthatstrategy–SystemicCSRfocusesonunderstandingtheinterconnectionsinthemacrolevelsystem(society,communities, economiesandecosystems)andchangingacompany’sstrategytooptimizetheoutcomesforthislargerhumanandecologicalsystem.
  6. 6. Goals of Sustainable Development ▪Economic Development ▪Social Inclusion ▪Environmental Integrity
  7. 7. CSR Has Failed: Almost all measures are going banana JohanRockström -09 Planetary Boundaries: Climate Change Ocean Acidification Stratospheric Ozone Depletion Nitrogen Cycle-Phosphorous Cycle Freshwater Use Land Use Biodiversity Loss Atmospheric Aerosol Loading Chemical Pollution
  8. 8. Living Planet Index Global Ecological Footprint (1961-2003): Ameasure of the productive capacity of the biosphere used to provide natural resources and absorbwastes.
  9. 9. Population 4 Population Scenarios for 2100 Current Fertility Scenario –28.6 B High Fertility Scenario (2+1.5 children) –16.6 B Medium Fertility Scenario (2 children) -10.8 B Low Fertility Scenario (1 child) –6.8 B
  10. 10. Disease-Poverty Trap Poverty Disease MDG 1
  11. 11. Income Inequality Source: Piketty and Saez, based on IRS data
  12. 12. CSR Drivers: Global and Local Drivers
  13. 13. Local CSR drivers Driver Root Cultural Tradition CSR often drawsstrongly on deep-rooted indigenous cultural traditions of philanthropy, business ethics and community embeddedness. Political Reform CSR cannotbe divorced from the socio-political policy reform process, which often drives business behavior towards integrating social and ethical issues. Socio-economicpriorities CSR is often directlyshaped by the socio-economic environment in which firms operate and the development priorities this create. Governance Gaps CSR is a way to plug “governance gaps” left by weak,corrupt or under-resourced government that fail to adequately provide various social services. Crisis response CSR responses can be catalyzedby economic, social, environmental, health-related or industrial crises.
  14. 14. Global CSR drivers Driver Root Market access CSR may be seen as an enabler for the companiesin one country or region trying to access markets in other parts of the world. International standardization CSR codes, guidelinesand standards are a key driver for companies wishing to operate as global players. Investment incentives CSR is given an incentive bythe trend of SRI. Stakeholder activism CSR is encouragedthrough the activism of stakeholders/pressure groups acting to address the perceived failure of the market and government policy. Supplychain integrity CSR among SMEsboosted by requirements from MNCs.
  15. 15. Has CSR failed as a Response??? CSRisfocusedatthemicrolevel–supportingsocialorenvironmentalissuesthathappentoalignwithacompany’sstrategy,butwithoutnecessarilychangingthatstrategy–SystemicCSRfocusesonunderstandingtheinterconnectionsinthemacrolevelsystem(society, communities,economiesandecosystems)andchangingacompany’sstrategytooptimizetheoutcomesforthislargerhumanandecologicalsystem.
  16. 16. Radical Views ‘Companies still thinking about the environment as a social responsibility rather than a business imperative are living in the dark ages.’ Carter RobertsDifferent views Sustainability: give as much as you take Label War
  17. 17. Label WarCorporate Social ResponsibilityBusiness EthicsCorporate GovernanceCorporate PhilanthropyCorporate SustainabilityStakeholder EngagementCorporate CitizenshipSocial EntrepreneurshipEnvironmental ManagementBusiness and Human RightsCorporate AccountabilityOccupational Health and Safety
  18. 18. Business Ethics
  19. 19. Trolley Problem PhilippaFoot–1967
  20. 20. Ethical Decision Making Ethicalconsumerism Consumershavearesponsibilitytomakeethicalchoicestochangethenegativetrends.
  21. 21. Fair-trade Coffee Timothy Devinney“The Myth of Ethical Consumer” A coffee shop, Sydney, Australia Adding fair-traded coffee Only 1% Reminder 30% Peers 70%
  22. 22. Ethical Consumer
  23. 23. CSR: Every day, every where
  24. 24. Our Ability to Respond It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities. Josiah Charles Stamp
  25. 25. Responsibility: Response -ability
  26. 26. CSR 1.0: Ages and Stages of CSR Defensive CSR: Risk and Compliance (Age of Greed) Charitable CSR (Age of Philanthropy) Promotional CSR (Age of Marketing): PR Strategic CSR (Age of Management): codes and standards, compliance -Strategic Transformative CSR (Age of Responsibility)
  27. 27. CSR 1.0and 2.0: Ages and Stages of CSR Defensive Charitable Promotional Strategic Transformational
  28. 28. CSR 1.0: Ages and Stages of CSR BusinessAge Stage of CSR MO Key Enabler Stakeholder Target Greed Defensive Ad hoc interventions Investments Shareholders, governments and employees Philanthropy Charitable Donations Projects Communities Marketing Promotional PR Media GeneralPublic Management Strategic ManagementSystems Codes Shareholders% NGOs/CSOs Responsibility Systemic Business Models Products Regulators and customers
  29. 29. The Age of Greed Earth provides enough to satisfy every man’s need, but notevery man’s greed. Mahatma Gandhi
  30. 30. The Age of GreedGreed Old English-grædig-hunger and eagerness Avarice –old French (avere) –to crave or long for Greek –philagyros-money-loving Deutsch-habsüchtig – to have a sickness or disease
  31. 31. Defensive CSR 0 10 20 30 40 50 60 70 80 90 Jan Apr Jun Aug Oct Nov DECEnron 2001Stock price Dollar
  32. 32. The Age of Philanthropy I resolved to stop accumulating and begin the infinitely more serious and difficult task of wise distribution. Andrew Carnegie I believe it is my duty to make money and still more money and to use the money I make for the good of my fellow man, according to the dictates of my conscience. John D. Rockefeller Sr.
  33. 33. Charitable CSR
  34. 34. Carneigie’s Principles of WealthPrinciple of Charity: Wealthy should give to the needy. The Stewardship Principle: Hold money in trust. Caveat: Only Business people that.
  35. 35. Charitable CSR Standard Oil Price fixing Cleveland Massacre 4 month 23/26 competitors How companies make money not just how they give it away?
  36. 36. The Age of Marketing You can’t get there from here by any mechanism that depends on support from institutions that benefit from the status quo. Paul Hawken
  37. 37. Promotional CSR ▪Brand and reputation ▪Green washing ▪Sustainability reporting
  38. 38. The Age of Management Increasingly, we think in terms of a “triple bottom line”, focusing on economic prosperity, environmental quality, and –the element which business has tended to overlook –social justice. John Elkington
  39. 39. Strategic CSR ▪Integration of CSR into Core business without changing the strategy ▪Coca Cola –Water management (Core) ▪Codes and Standards ▪Blue washing
  40. 40. CSR Has Failed: Incremental CSR ▪ ISO 90001; ISO 14001; ISO 26000 ▪ Kaizen philosophy
  41. 41. CSR Has Failed: Peripheral CSR ▪MNCs are the most . ▪SMEs are not active in CSR. ▪HarmReduction ▪AFocusonHarmReduction, publishedon6November2013, covershowwe'reworkingtoaddressthepublichealthimpactofourproducts. ▪
  42. 42. CSR Has Failed: Uneconomic CSR ▪Vice fund (outperform) ▪Fair trade ▪Vermont Organic Produce ▪Eco-efficiency (cost reduction)
  43. 43. Counter-case: CSR is Economic
  44. 44. Web 1.0 vs. CSR1.0 ▪1996 –45 m users ▪250,000 sites ▪Brochures ▪One-way communication ▪Netscape (innovative) vs. Microsoft (standardization) ▪Philanathro-capitalism ▪How the rich can save the world. ▪Body shop ▪Ben & Jerry’s
  45. 45. Web 2.0 vs. CSR 2.0 ▪Web 2.0 ▪Collective intelligence ▪Collaborative networks ▪User participation ▪Social media ▪Knowledge syndication ▪Beta testing ▪New philosophy ▪CSR 2.0 ▪Global commons ▪Innovative partnership ▪Stakeholder involvement ▪Stakeholder panels ▪Real-time reporting ▪Social enterprise ▪New business model
  46. 46. Transformative Radical CSR Organic Cotton Footprint Chronicles
  47. 47. How to measure CSR?
  48. 48. CSR 2.0: Principles ▪Creativity social enterprises ▪Scalability ▪Responsiveness ▪Glocality ▪Cradle-to-cradle
  49. 49. The Principle of Creativity Creativity represents a miraculous coming together of the uninhibited energy of the child with its apparent opposite and enemy, the sense of order imposed on the disciplined adult intelligence. Norman Podhoretz
  50. 50. Creativity AnuragGupta BYD
  51. 51. CreativityNecessity is the mother of invention and desire is the father of effort.
  52. 52. The Principle of Scalability Green technology –going green –is bigger that the Internet. It could be the biggest economic opportunity of the 21stcentury. John Doerr
  53. 53. 100% renewable energyZero wasteSustainable products Scalability Choice editing: Fish products Sustainable Fair trade
  54. 54. The Principle of Responsiveness As our planet’s life-support system begins to fail and our very survival as a species is brought into question, remember that our children and grand children will ask not what our generation said, but what it did. HRH The Prince of Wales
  55. 55. Responsiveness 2.6 B not have proper sanitation Every$1spentonwaterandsanitationgeneratesreturnsof$8insavedtime,increasedproductivityandreducedhealthcosts. 2,000childrendieeveryyearfromdiarrheacausedbyunsafewaterandpoorsanitation.
  56. 56. The Principle of Glocality We must ensure that the global market is embedded in a broadly shared values and practices that reflect global social needs, and that all the world’s people share the benefits of globalization. Kofi Annan
  57. 57. Glocality Mining-South Africa-MalariaThink Global… Act Local…
  58. 58. The Principle of Circularity In economics, they talk about “end of life” as if something has just lost its value and it’s just fallen off a cliff somewhere. We don’t talk about end of life, so that’s a fundamental difference. William McDonough Right now, the world runs on consuming and discarding. We’re saying that we’re taking responsibility for our products from birth ‘til birth. YvonChouinard
  59. 59. Circularity: Cradle-to-cradleFonebak Mobile 9 month in UK Source: Fuji Xerox 98.5% zero waste (Thailand, Japan and Malaysia) -Circular Economy Interface Floor (Mission Zero) Puma environmental profit and loss account
  60. 60. Definition: Corporate Sustainability and Responsibility CSRisthewayinwhichbusinessconsistentlycreatesharedvalueinsocietythrougheconomicdevelopment,goodgovernance,stakeholderresponsivenessandenvironmentalimprovement. CSRisanintegratedapproachbybusinessthatbuilds,ratherthanerodesordestroys,economic,social,humanandnaturalcapital. Creative destruction and creative reconstruction
  61. 61. CSR 2.0 DNA Model: Inclusive Definition DNA Code Goal Key indicator Value Creation Economic Development Capital investment Beneficialproducts Inclusive Business Good Governance Institutional effectiveness Leadership Transparency Ethical Conduct Societal Contribution Stakeholder orientation Philanthropy Fair labour practices Supplychange integrity Environmental Integrity Sustainable ecosystem Ecosystem protection Renewable resources Zero-waste production
  62. 62. Responsibility: Take away Responsibilityisthegatewaytoachievement.Andachievementisthepathtogrowth.Beingresponsibleforsomethingmeansthatweareentrustedwithrealizingitspotential,turningitspromiseintoreality. Wearethemagiciansofmanifestation,readytoprovetoourselvesandtootherswhatcanhappenwhenweputourmindstoit,ifwefocusourenergiesandconcentrateourefforts. Dofewthingsbutdothemwellisthemaximofresponsibility. Beingresponsiblealsodoesnotmeandoingitallourselves. Responsibilityisaformofsharing,awayofrecognizingthatwe’reallinthistogether.‘Soleresponsibility’isanoxymoron.
  63. 63. Case Study: Interface Carpet 1994 (1995-2020) Mount Sustainability 2020 Mission Zero (business model) Zero impact-Zero footprint
  64. 64. The Age of Responsibility Thefirstindustrialrevolutionisflawed.Itisnotworking.Itisunsustainable.Itisamistakeandwemustmoveontoanotherandbetterindustrialrevolutionandgetitrightthistime. For nearly 11 years, now, we have been on this mission; we call it, “climbing Mt. Sustainability”, a mountain higher than Everest, to meet at that point at the top that symbolizes zero footprint—zero environmental impact. Sustainable: taking nothing, doing no harm. Ray Anderson
  65. 65. Impact Assessment (Paul and Anne Erhlick) First Industrial Revolution: Extractive Take-make-waste Labor productivity Carbon intensiveSecond Industrial Revolution: Renewable Cyclical Waste-free Resource Productivity Carbon free
  66. 66. New Equation: New Civilization
  67. 67. Interface Changes ▪75% reduction in water usage ▪20% renewable product parts ▪27% renewable energy use ▪74000 T carpet from landfills (Reverse-logistic and closing the loop) ▪1995-2020 ▪82% net greenhouse emissions ▪Two-third sale increase ▪2X profit ▪60% fossil fuel reduction per unit of production
  68. 68. Takeaways: Testing Fit for the Future ▪Admission–Guilty ▪Plunder of Earth ▪Mission Zero 2020 ▪Ambition–Setting Goals BHAG (Big Hairy Audacious Goal) Conscious Capitalism
  69. 69. Gazillion Thanks Lecturer: Amir Hossein RahdariCorporate Governance and Responsibility Development CentreCorporate Sustainability and Responsibility International