Corporate Social Responsibility and Corporate Citizenship

1. PMAP Learning Session on Corporate
Social Responsibility (CSR)
Profiting from Sustainable
Business Practices
People Management Association
of the Philippines (PMAP)
Cagayan de Oro City Chapter
A Learning Session on
CORPORATE SOCIAL RESPONSIBILITY
30 April 2013

2. “Perhaps the most
beautiful power plant in
the Philippines….”
CSR: Profiting from Sustainable
Business Practices

3. CSR: Profiting from Sustainable
Business Practices
Six A’s of Learning
 Attitude
 Attendance
 Active Participation
 Adaptation
 Application
 AHA!

4. CSR: Profiting from Sustainable
Business Practices
 We reap what we sow.
 It is in giving that we receive.
 Do good. Do it well.
 Not enough to do good, communicate it.
 When better is better than best.
 Choose what is right. You will not go wrong.
We can handle the truth

5. Why promote Corporate Social
Responsibility (CSR)?
CSR: Profiting from Sustainable
Business Practices

6. CSR: Profiting from Sustainable
Business Practices
 Profit
 Value
 Progress
Development
The Purpose of Business

7. CSR: Profiting from Sustainable
Business Practices
 Business as a means to achieve human
development
 Profit is one indicator of sustainability
 Business creates solutions
 Enhance quality of life
 Making the world a much better place.
The Business of Development

8. • Corporate style of
Governance?
• Social Enterprise?
PROFIT: Business Unusual
Services must also be
profitable.

9. CSR: Profiting from Sustainable
Business Practices
Profit with Honor
“We believe that CSR
encompasses not only
what the company does
with its profits, but also
how it makes them.”
- Joy Pamintuan
Chief Finance Officer
STEAG State Power Inc.

10. Providing a
solution?
Creating a
problem?
Fundamentally Flawed

11. CSR: Profiting from Sustainable
Business Practices
Social
Development
Economic
Development
Environmental
Protection
Sustainable Development
Interdependent &
Mutually
Reinforcing Pillars
“Meeting the needs of
the present without
compromising the
ability of future
generations to meet
their own needs.”
- UN

12. CSR: Profiting from Sustainable
Business Practices

13. CSR: Profiting from Sustainable
Business Practices

14.  Why CSR?
 From “Is there a role for Business…” to “What is
the role of Business in addressing social
issues?”
 From “How to help Government deal with public
problems?” to “Are there market solutions to
public problems?”
Main Questions

15. Value Proposition: CSR is good for business.
• Corporate Giving
• Philanthropy
Social Investment
• Poverty Reduction
• Human
Development
CSR
“The Higher Purpose”
makes business sense.

16. The whole essence of business
should be responsibility.
Our companies need meaning
and purpose, or why should
they live at all?
—Tachi Kiuchi, former president,
Mitsubishi Electronics

17. What do these
critical
incidents tell
us?
• Guimaras Oil Spill
• Manila Bay Pollution
• Flashfloods
• Cherry Hills Tragedy
• Industrial Fatalities
• Mining Explosions
• Chronic diseases of employees
and surrounding communities
due to emissions and effluents
• Sea tragedies
• Undocumented cases re
dismissal of employees with TB

18. CSR: Profiting from Sustainable
Business Practices
• International
protocol
• Operational efficiency
• Environmental
requirements of local
suppliers/ business
partners
• Industry codes of conduct
• Consumer activism
• Community
monitoring and
protests
• International
development
advocates/
organizations
• Requirements of
international
market
Mounting pressures for responsible practices

19.  Beyond creating shareholder
value, companies are expected
to solve social problems too!
 A changing set of expectations
on corporate accountability.
 Making a distinctive
contribution to society.
ELEVATED ROLE OF BUSINESS
CSR: Profiting from Sustainable
Business Practices

20. CSR: Profiting from Sustainable
Business Practices
FORMAL
explicit expectations,
usually laws–tax,
Regulations (SEC)
SEMI FORMAL
implicit expectations
global labor,
environment standards
industry norms & codes
FRONTIER
issues that overtime
become expectations of
business
The CHANGING Social Contract

21. CSR has evolved and redefined our view
towards the business
CSR: Profiting from Sustainable
Business Practices

22. Broadcast and compress for seamless delivery
CSR CONCEPT HAS EVOLVED INTO CC
Embedding CSR into the core
business practices
CSR
Social
Investment
CC
Social
Investment
PLUS
Responsible
Business
Practices
Corporate
Citizenship

23. CSR & Corporate Citizenship
The Triple Bottom Line
Business
Goals
Social
Develoment
Environment
Protection
A business principle that promotes the interests of business alongside
the development of the communities, sustainability of the environment
and the improvement of the quality of life of the Filipinos.
(Philippine Business for Social Progress)
CSR: Profiting from Sustainable
Business Practices

24. CSR: Profiting from Sustainable
Business Practices
Resource TransferGiving and Philanthropy
Community
Relations
Direct involvement
in community
based projects
Business / industry
practices
Codes of conduct, value
chain management
SOCIAL INNOVATION STRATEGY
(Market Solution to Public Needs and Problems)
Forming the Corporate Response

25. CSR: Profiting from Sustainable
Business Practices
The Business Case of CSR
It is a business approach that
creates long term
shareholder value by
embracing opportunities and
managing risks deriving from
economic, environmental
and social developments.
- Dow Jones Sustainability Index

26. CSR: Profiting from Sustainable
Business Practices
 Acting with integrity builds trust, trust builds
reputation, and reputation builds value
 Winning and maintaining the trust of
stakeholders is a major competitive advantage
 CSR is one of the key areas in which companies
build trust
The Business Case of CSR

27. CSR: Profiting from Sustainable
Business Practices
CSR builds trust and integrity
“The most trusted businesses
are those that align profit and
purpose for social benefit”
- Edelman Trust Barometer

28. CSR: Profiting from Sustainable
Business Practices
Operating on a base of trust
Product and Quality
now include social
and environmental
integrity
The Asia Pacific Reputation Pyramid, Edelman

29. Businesses must adapt to the changing nature of trust
CSR: Profiting from Sustainable
Business Practices

34. CSR: Profiting from Sustainable
Business Practices
Comparison of
Shareholder Return
Over a Six-Year
Period
Socially Responsible Organizations Prosper
Source: “The 100 Best Companies to Work For,” Fortune.
Percentage of
Shareholder
Return

35. CSR: Profiting from Sustainable
Business Practices
 CSR as a function may disappear when its absorbed
into all aspects of business and make it a part of every
employee’s responsibilities.
 CSR programs impact on reputation have increased in
both scope and importance.
 Primary motivations for CSR are
 Reputation (88%)
 Competitive Positioning and Social Consciousness (71%)
Profits and CSR are closely linked

36. CSR: Profiting from Sustainable
Business Practices
 CSR is either very or extremely important to the
companies mission (86%)
 Media and government feedback are important in
assessing CSR programs
 Top CSR issues: Environment (96%); Health (68%);
Education (59%); Labor (50%); Safety (11%)
Profits and CSR are closely linked

37. CSR: Profiting from Sustainable
Business Practices
Trust Taxes Paid by Non-CSR Companies
Global Respondents… EU
North
America
Latin
America
Asia
Refused to buy their products
or use their services.
83% 85% 79% 74%
Refused to work for them. 46% 51% 37% 59%
Refused to invest in them. 72% 80% 61% 65%
Actively demonstrated or
protested against them.
24% 14% 42% 23%
Source: Edelman Trust Barometer, survey of 2800 college-educated people in 18 countries.

38. LOGO
CSR Makes
Good
Business
Sense
Increase retention.
Reduce recruitment
& training costs
Able to attract the best
and the brightest,
especially amongst
graduates
Cost savings and
income produced
through improved
employee morale and
productivity
A Business Case for CSR
CSR: Profiting from Sustainable
Business Practices

39. Business
Challenges
CSR: Creative
and Responsible
Solutions Unleashing the
Human Potential
When CSR is embedded in
mainstream business strategy it
becomes a mechanism for
unlocking human potential.
CSR: Profiting from Sustainable
Business Practices

40. CSR: Profiting from Sustainable
Business Practices
Preferred Neighbour
 Nice
 Good
 Responsible
Business Case of CSR

41. CSR: Profiting from Sustainable
Business Practices
 Perform basic economic function
 Minimize the social costs imposed on society
 Help solve social problems.
 Make social investments to strengthen society’s
infrastructure.
 Support public policies that are in the public interest
Beyond the “social” of CSR

42. CSR: Profiting from Sustainable
Business Practices
 CSR builds trust
 Improves Reputation
 Enhances operational efficiencies and cost savings.
 Builds effective and efficient supply chain relationships.
 Makes our employees proud.
 More robust social license to operate (and lead)
 Improved relations with regulators.
Bottomline: The CSR ‘Aha’ Effect

43. CSR: Profiting from Sustainable
Business Practices
1.Taking account of social impact
2.Credibility is dependent on delivery, not rhetoric
3.HR is responsible for key systems and processes
4.HR people have relevant knowledge and skills
5.Managing trust and risk raises fundamental issues
about how people are managed
6.Employees as key CSR stakeholder
HR People as Champions of CSR

44. CSR: Profiting from Sustainable
Business Practices
 Employee engagement is not simply the mandate of HR
 People leadership rests with all departmental managers
 Employee engagement is a shared responsibility
 HR can be the key organizational partner to ensure that
what the organization is saying publicly aligns with how
people are treated within the organization.
Integrating CSR in the company’s DNA

45. CSR: Profiting from Sustainable
Business Practices
Sustainable Human Resource
Management is the contribution
HRM can make to sustainable
development.
CSR – HR = PR

46. CSR: Profiting from Sustainable
Business Practices
Employee Engagement Brings CSR to Life
They are Committed to CSR
They see & feel the benefits
They understand the
reasons behind CSR
They know about CSR
July 14, 2013
CSR: Profiting from Sustainable
Business Practices

47. Corporate Responsibility –
achieving BUSINESS goals
alongside the
development of PEOPLE
and communities, and the
protection of the
ENVIRONMENT
Helping Build a Brighter Future:
Our Commitment to Sustainability
Triple Bottom Line Approach

48. Expressions of Corporate Citizenship
A. Care for our Business
B. Care for our employees and
our communities
C. Care for our Environment

49. Taking Care of the People
• People in the Workplace
(Our Employees)
• People in our
communities (Our
Neighbors)

50. Our responsibility framework is built around the
philosophy of caring for our people and the
community in which we live and work.
•Healthy, safe and secured
work environment
•Fair rewards and incentives
system
•Promoting work-life balance
•Continuing workplace
improvement
•Employee engagement
For our
employees

51. Our Safety and Security Performance
Lost Time due to
accident
Zero
(>3m SMH)
Occupation related
Illnesses and
Diseases
Zero
Accident resulting
to injury (minor)
1
(2011)
Accident resulting
to property damage
(minor)
1
(2010)
Secure Man-Hours 100%
(since Jan 2011)

52. For Our Host Communities
We endeavor to be a
good citizen and
aspire to be the
neighbor of choice

53. Community Development Programs
1. Social Empowerment through Education (SEEd) Program
2. Livelihood and Economic Enterprise Development (LEED)
Program
3. Water, Sanitation and Health (WaSH) Program
4. Enhancing Governance in Local Development (EGoLD)
Program
5. Fostering Rural Electrification and Energization (FREE)
Program

54. Social and Environmental
Recognition
2010 Best CSR
Program
(PHIVIDEC Industrial
Authority)
2012 Superior
Environmental
Performance Award
DENR Philippine Environmental
Partnership Program
2012 Gawad Kaligtasan
at Kalusugan (GKK)
Award
Department of Labor and
Employment

55. Being responsible makes a lot of business
sense
• More value to the
shareholders
• Satisfied Customer
• More robust social
license to operate
• Highly motivated,
loyal and productive
workforce

56. CSR: Profiting from Sustainable
Business Practices
Bottom line benefits of
incorporating CSR in the
corporate DNA
1
CSR is the right thing to
do.
2
HR as key player or
partner in CSR3
In Conclusion

57. • Philanthropy
• Marketing
• Applied to only one part of the business
• A substitute for excellent products and services
• A substitute for effective framework and execution
• A substitute for profitability
IN A NUTSHELL: CSR IS NOT

58. CSR goes
beyond the
“LOOK GOOD” and
“FEEL GOOD”
CSR: Profiting from Sustainable
Business Practices

59. “Corporate Social Responsibility 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 as of the local communities,
and society at large.”
~ World Business Council for Sustainable Development

60. CSR: Profiting from Sustainable
Business Practices

62. PMAP Learning Session on Corporate
Social Responsibility (CSR)
Profiting from Sustainable
Business Practices
People Management Association
of the Philippines (PMAP)
Cagayan de Oro City Chapter
A Learning Session on
CORPORATE SOCIAL RESPONSIBILITY
30 April 2013