CSR and Corporate Philanthropy

1. An overview of Corporate Social
Responsibility (CSR)
Alexis Lindsay
Director, The Centre for Corporate Public Affairs

2. Agenda
2
Defining CSR
The development of CSR in Australia
Current developments and trends
The business drivers
Examples
Internal infrastructure
References

3. Defining CSR
3
Many ‘labels’: corporate social responsibility, corporate
community involvement, sustainability, corporate
citizenship, cause related marketing, triple bottom line,
socially responsible investment
“Sustainable companies have three kinds of responsibility:
economic, environmental and social. Corporate social
responsibility is an integral part. It is about integrating the
issues of the workplace, human rights, the community and
the marketplace into core business strategies” - CSR
Europe
… the translation of social responsibilities into business
practice.

4. Development of CSR
4
First phase:
Discretionary sponsorships, cheque-book
philanthropy
Second phase:
Strategic approach, part of the business case
Third wave:
Community involvement; more complex business
model; competitive context

5. Why does business engage in CSR?
5
Enhance reputation
Improved community relationships
Stronger stakeholder relationships
Positive impact on employee morale
Important symbol of leadership, company ethos

6. Edelman 2003: Sector Trust
Consumer durables
Consumer packaged goods
Technology
Automotive
Airlines
Pharma drug
Investment insurance services
6
51%
54%
48%
45%
42%
47%
38%
40%
38%
44%
36%
42%
59%
55%
36%
43%
51%
66%
66%
65%
30%
42%
54%
58%
Retail financial services
Healthcare
Professional services
Telecomm
0% 20% 40% 60% 80% 100%
Energy
US
Europe

7. Edelman brand evaluator 2003: Europe
Amnesty International
World Wildlife Fund
Greenpeace
Oxfam
Microsoft
Bayer
Ford Motor Company
Coca-Cola
BASF
Unilever
Johnson Johnson
7
16%
14%
12%
38% 4
37%
36%
34%
32%
30%
28%
25%
22%
21%
27%
34%
51%
47%
2%
49%
62%
62%
34%
Nike
Royal Dutch/Shell
Deutsche Bank
ExxonMobil
Merck*
HSBC*
McDonalds
Pfizer*
Dow Chemical*
Citicorp*
0% 20% 40% 60% 80% 100%
Monsanto*

8. Edelman brand evaluator 2003: US
Johnson Johnson
Coca-Cola
Microsoft
Ford Motor
McDonalds
Bayer
Pfizer
World Wildlife Fund
Merck
Nike
Amnesty
Greenpeace
Dow Chemical
Citicorp
BASF
Monsanto
ExxonMobil
Deutsche Bank
Royal Dutch/Shell
8
16%
13%
30%
25% 2
9%
40%
37%
36%
36%
35%
41% 4
56%
55%
54%
49%
47%
47%
5%
52%
59%
69%
66%
Unilever*
HSBC*
0% 20% 40% 60% 80% 100%
Oxfam*

9. Current developments and trends
Some best practice insights
9
Located in business objectives
Fits corporate competencies, characteristics and
infrastructure
Leadership and senior management commitment
Grounded in stakeholder relations
Engagement of staff
CSR/sustainability framework
Flexibility in community involvement vehicles
Continuous reporting of initiatives

10. Examples
10
The Rio Tinto Aboriginal Foundation
The Smith Family
Westpac
Toyota
DuPont

11. Internal infrastructure
11
Leadership
Strategy
Vision and values
Governance
Structure
Accountability
Resources
Communication
Internal/external stakeholders
Leverage required
Engagement
Outcomes
Evaluation
Research
Continuous improvement

12. References
12
The Centre for Corporate Public Affairs;
http://www.accpa.com.au/csrnews
Business in the Community; http://www.bitc.org.uk/
Business for Social Responsibility; http://www.csrwire
.com/bsr/
Centre for Corporate Citizenship at Boston College;
http://www.bc.edu/centers/ccc/index.html