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European CSR-Trends

                 - Dr. Susanne Lang, CCCD -

                  2010 Motorola Foundation
             European Grantee Network Conference
                     Krakow, November 19th, 2010




19.11.2010                             © CCCD – Centrum für Corporate Citizenship Deutschland
Table of contents
     1. What are we talking about?
        – some definitions
     2. What will I be talking about?
        – specifying the focus
     3. Why should we – as societies – care about
        CSR?
     4. Why should you – as non-profit executives -
        care?
     5. Why should companies care?
     6. Some Trends
19.11.2010                       © CCCD – Centrum für Corporate Citizenship Deutschland
What are we talking about?

             The „European“ definition of CSR:

             • “A concept whereby companies integrate social and
               environmental concerns in their business operations
               and in their interaction with their stakeholders on a
               voluntary basis." (European Commission)




19.11.2010                                      © CCCD – Centrum für Corporate Citizenship Deutschland
source: 2008 Motorola Corporate Responsibility Summary
                                                         What are we talking about?




                                                             Supply chain mgt.
Report, table of content.




                                                            Product Safety
21.07.2011                                                         4         © CCCD – Centrum für Corporate Citizenship Deutschland
Table of contents
     1. What are we talking about?
        – some definitions
     2. What will I be talking about?
        – specifying the focus
     3. Why should we – as societies and citizens –
        care about CSR?
     4. Why should you – as non-profit executives -
        care?
     5. Why should companies care?
     6. Some Trends
19.11.2010                       © CCCD – Centrum für Corporate Citizenship Deutschland
source: 2008 Motorola Corporate Responsibility Summary
                                                         What will I be talking about?




                                                                 Supply chain mgt.
Report, table of content.




                                                                                    Product Safety
21.07.2011                                                       6       © CCCD – Centrum für Corporate Citizenship Deutschland
Economic benefit   Focus Community Involvement: the sweet spot



                      pure        Win-win:
                    business      combines societal
                                  and business
                                  benefit



                                           pure
                                       philanthropy



                                               societal benefit
  source: Michael Porter/Mark Kramer: The competitive advantage of
  corporate philanthropy, according to the visual adaptation by
21.07.2011                                       7          © CCCD – Centrum für Corporate Citizenship Deutschland
1. What are we talking about?
        – some definitions
     2. What will I be talking about?
        – specifying the focus
     3. Why should we – as societies and
        citizens – care about CSR?
     4. Why should you – as non-profit executives -
        care?
     5. Why should companies care?
     6. Some Trends
19.11.2010                       © CCCD – Centrum für Corporate Citizenship Deutschland
Why should societies care? –
                    The changing social contract
   back in the 70ies and 80ies

                                                Set and execute laws
                                                provide social security
  Obey laws                                     redistribute wealth
  pay taxes
  offer fair
  employment      Society Government

               Social Welfare
               Common Good
               Business
                                  Civil
                                  Society/
                                  Non-Profits
                                                Fill in cracks of social
                                                system
                                                expand political agenda

21.07.2011                        9         © CCCD – Centrum für Corporate Citizenship Deutschland
Why should societies care?
                          The changing social contract

              today
                                                                     Make and execute
                                        Government                   laws
      Pay taxes , obey                                               redistribute wealth
      laws
      Employ people
      help solve social
                             Society
      challenges
      act responsibly     Social Welfare
                          Common Good
                             Business              NGO’s
                                                Civil Society
                                                                         Deliver social services
                                                                         and fill in cracks of
                                                                         system
                                                                         set political agenda
                                                                         (watchdogs)

21.07.2011                                 10          © CCCD – Centrum für Corporate Citizenship Deutschland
1. What are we talking about?
        – some definitions
     2. What will I be talking about?
        – specifying the focus
     3. Why should we – as societies – care about
        CSR?
     4. Why should you – as non-profit
        executives - care?
     5. Why should companies care?
     6. Some Trends
19.11.2010                       © CCCD – Centrum für Corporate Citizenship Deutschland
Why should you care about CSR?

      Typically, civil society organisations and
      corporations strongly appreciate each other:




 Source:
 The Partnering Initiative
21.07.2011                   12   © CCCD – Centrum für Corporate Citizenship Deutschland
Why should you care about CSR?
             Drivers towards closer and more interactive
             relations between civil society and corporations:




21.07.2011                           13      © CCCD – Centrum für Corporate Citizenship Deutschland
Why should you care about CSR?


     Why Non-Profits work with companies:
     1. solve community problems                                        40,4 %
     2. Funding                                                         26,9 %
     3. Corresponding to own strategy and/
        or own CSR-strategy                                             17,3 %
     4. Requiring expertise                                              3,9 %
     5. Reputation                                                       3,9 %
     Source: Not alone – A research on successful partnerships between private
         companies and citizens‘ organizations in Europe. Fondaca Active
         Citizenship Foundation, 2006.

19.11.2010                                        © CCCD – Centrum für Corporate Citizenship Deutschland
Why should you care?
             • Access to funds, technical expertise and business skills

             • Opportunities to influence private sector
               thinking/behaviour

             • Increased credibility among government and business
               sectors

             • Greater public awareness of the NGO and its cause

             • Better understanding of business; how it operates and
               how NGOs can influence or change certain behaviours
             Source: The Partnering Initiative


21.07.2011                                       15   © CCCD – Centrum für Corporate Citizenship Deutschland
1. What are we talking about?
        – some definitions
     2. What will I be talking about?
        – specifying the focus
     3. Why should we – as societies – care about
        CSR?
     4. Why should you – as non-profit executives -
        care?
     5. Why should companies care about CSR?
     6. Some Trends
19.11.2010                      © CCCD – Centrum für Corporate Citizenship Deutschland
Why should companies care?

             The business cases in corporate
             community involvement
             • market differentiation and reputational
               gains
             • Marketing
             • Product innovation and market
               development
             • Recruiting, HR effects
             •…
21.07.2011                       17     © CCCD – Centrum für Corporate Citizenship Deutschland
1. What are we talking about?
        – some definitions
     2. What will I be talking about?
        – specifying the focus
     3. Why should we – as societies – care about
        CSR?
     4. Why should you – as non-profit executives -
        care?
     5. Why should companies care about CSR?
     6. Some Trends
19.11.2010                       © CCCD – Centrum für Corporate Citizenship Deutschland
Some Trends

             • CSR has become a political issue:
               European governments have developed
               CSR-strategies and are now
               implementing them
             • Corporations turn from donations to
               strategic corporate citizenship, bringing
               in their core strenghts and competences
             • Donations and grant making tend to
               migrate to corporate foundations

21.07.2011                       19     © CCCD – Centrum für Corporate Citizenship Deutschland
Some more Trends

             • We have entered the „era of the
               partnership“ (Simon Zadek): cross-
               sector collaboration instead of
               philanthropy
             • More and more companies run
               corporate volunteering programs




21.07.2011                      20     © CCCD – Centrum für Corporate Citizenship Deutschland
Types of Corporate Volunteering
             Open Employee Involvement
                • Random events
                • Often driven by community initiated requests
                • No deliberate strategy or focus, selected corporate support

             Employee-driven Involvement
               • Employee initiated
               • Personal causes, driven by personal energy/interest
               • No stated strategy or focus, selected corporate support

             Corporate Volunteering Programs
                • Company managed
                • Proactive, strategic, linked to business goals
                • Corporate resource commitment, plan, guidelines/policies

             Combination of Types


21.07.2011                                   21         © CCCD – Centrum für Corporate Citizenship Deutschland

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CSR Trends in Europe

  • 1. European CSR-Trends - Dr. Susanne Lang, CCCD - 2010 Motorola Foundation European Grantee Network Conference Krakow, November 19th, 2010 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 2. Table of contents 1. What are we talking about? – some definitions 2. What will I be talking about? – specifying the focus 3. Why should we – as societies – care about CSR? 4. Why should you – as non-profit executives - care? 5. Why should companies care? 6. Some Trends 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 3. What are we talking about? The „European“ definition of CSR: • “A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." (European Commission) 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 4. source: 2008 Motorola Corporate Responsibility Summary What are we talking about? Supply chain mgt. Report, table of content. Product Safety 21.07.2011 4 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 5. Table of contents 1. What are we talking about? – some definitions 2. What will I be talking about? – specifying the focus 3. Why should we – as societies and citizens – care about CSR? 4. Why should you – as non-profit executives - care? 5. Why should companies care? 6. Some Trends 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 6. source: 2008 Motorola Corporate Responsibility Summary What will I be talking about? Supply chain mgt. Report, table of content. Product Safety 21.07.2011 6 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 7. Economic benefit Focus Community Involvement: the sweet spot pure Win-win: business combines societal and business benefit pure philanthropy societal benefit source: Michael Porter/Mark Kramer: The competitive advantage of corporate philanthropy, according to the visual adaptation by 21.07.2011 7 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 8. 1. What are we talking about? – some definitions 2. What will I be talking about? – specifying the focus 3. Why should we – as societies and citizens – care about CSR? 4. Why should you – as non-profit executives - care? 5. Why should companies care? 6. Some Trends 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 9. Why should societies care? – The changing social contract back in the 70ies and 80ies Set and execute laws provide social security Obey laws redistribute wealth pay taxes offer fair employment Society Government Social Welfare Common Good Business Civil Society/ Non-Profits Fill in cracks of social system expand political agenda 21.07.2011 9 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 10. Why should societies care? The changing social contract today Make and execute Government laws Pay taxes , obey redistribute wealth laws Employ people help solve social Society challenges act responsibly Social Welfare Common Good Business NGO’s Civil Society Deliver social services and fill in cracks of system set political agenda (watchdogs) 21.07.2011 10 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 11. 1. What are we talking about? – some definitions 2. What will I be talking about? – specifying the focus 3. Why should we – as societies – care about CSR? 4. Why should you – as non-profit executives - care? 5. Why should companies care? 6. Some Trends 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 12. Why should you care about CSR? Typically, civil society organisations and corporations strongly appreciate each other: Source: The Partnering Initiative 21.07.2011 12 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 13. Why should you care about CSR? Drivers towards closer and more interactive relations between civil society and corporations: 21.07.2011 13 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 14. Why should you care about CSR? Why Non-Profits work with companies: 1. solve community problems 40,4 % 2. Funding 26,9 % 3. Corresponding to own strategy and/ or own CSR-strategy 17,3 % 4. Requiring expertise 3,9 % 5. Reputation 3,9 % Source: Not alone – A research on successful partnerships between private companies and citizens‘ organizations in Europe. Fondaca Active Citizenship Foundation, 2006. 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 15. Why should you care? • Access to funds, technical expertise and business skills • Opportunities to influence private sector thinking/behaviour • Increased credibility among government and business sectors • Greater public awareness of the NGO and its cause • Better understanding of business; how it operates and how NGOs can influence or change certain behaviours Source: The Partnering Initiative 21.07.2011 15 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 16. 1. What are we talking about? – some definitions 2. What will I be talking about? – specifying the focus 3. Why should we – as societies – care about CSR? 4. Why should you – as non-profit executives - care? 5. Why should companies care about CSR? 6. Some Trends 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 17. Why should companies care? The business cases in corporate community involvement • market differentiation and reputational gains • Marketing • Product innovation and market development • Recruiting, HR effects •… 21.07.2011 17 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 18. 1. What are we talking about? – some definitions 2. What will I be talking about? – specifying the focus 3. Why should we – as societies – care about CSR? 4. Why should you – as non-profit executives - care? 5. Why should companies care about CSR? 6. Some Trends 19.11.2010 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 19. Some Trends • CSR has become a political issue: European governments have developed CSR-strategies and are now implementing them • Corporations turn from donations to strategic corporate citizenship, bringing in their core strenghts and competences • Donations and grant making tend to migrate to corporate foundations 21.07.2011 19 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 20. Some more Trends • We have entered the „era of the partnership“ (Simon Zadek): cross- sector collaboration instead of philanthropy • More and more companies run corporate volunteering programs 21.07.2011 20 © CCCD – Centrum für Corporate Citizenship Deutschland
  • 21. Types of Corporate Volunteering Open Employee Involvement • Random events • Often driven by community initiated requests • No deliberate strategy or focus, selected corporate support Employee-driven Involvement • Employee initiated • Personal causes, driven by personal energy/interest • No stated strategy or focus, selected corporate support Corporate Volunteering Programs • Company managed • Proactive, strategic, linked to business goals • Corporate resource commitment, plan, guidelines/policies Combination of Types 21.07.2011 21 © CCCD – Centrum für Corporate Citizenship Deutschland

Hinweis der Redaktion

  1. Sweet spot als Abgrenzung gegen Gutmenschentum: gegen pure Philanthropy.Aber auch gegen den puren Business Benefit – dann wären wir bei PR, Herausforderung Glaubwürdigkeit.
  2. Note, therearepracticallynodirectrelationsbetween business andcivilsociety. Die Welt war noch in Ordnung, allerdings Aufbrüche zu sehen: Club of Romeandthe Limits to Growth 1972 , Ökologiebewegung, founding of greenpeace in 1971, New socialmovements – peacemovement, women‘slib, environmentalistsWhile in theeconomyyoucouldobserve a radical turn tomarkets, anti-regulatory.
  3. Differentpicture: in theemergentsocialcontract, wehave business andcivilsocietyasimportantplayers, andtheareas/constituencies/competencies of business, stateandcivilsocietyarefarmoreoverlappingthantheyusedtobe. New role of civilsociety (in numbers – Beschäftigtenzahl, Umsatz, Freiwillige) and in terms of politicalcultureanddemocracy (servicementalityturninginto an aspiration of self-determination, self-assuredagendasetting, will toparticipation,)The overlappingareasarethosewheretoexpectbothtensionandcreativity/innovation/energy. Andwe‘ll find thatmost of theissuesyoupickedasthemostimportantonesaresomewhere in thoseinterfaceareas, involvingat least two out of thethreeandoftenenough all threesectors, theirrespectivecompetenciesand – remember Drucker – theirstrengths.