Wayne Dunn presents on Defining Social Investment and CSR at the Inter-American Foundation’s Executive Seminar on Social Investment and Corporate Social Responsibility, Port au Prince, Haiti, Oct 2002

Defining Social Investment and CSR
Executive Seminar on Social Investment and
Corporate Social Responsibility (CSR)

Port au Prince, Haiti
October 22, 2002
Wayne Dunn
Hugh Wilkinson
A History of Creating Innovative Partnerships

www. waynedunn. com
info@waynedunn.com

Presentation Outline & Objectives

 Define CSR and social investment;
 Discuss rationale and driving forces for CSR
and social investment;
 Develop understanding of relevance of CSR
to Haitian business community;
 Review some examples of CSR/SI activities;
 Questions and discussion.

Page 2 www.waynedunn.com; info@waynedunn.com

What is CSR?

Corporate Social Responsibility (CSR)
is a concept whereby companies integrate
social and environmental concerns into
their business mission and operations, and
in their interactions with stakeholders.



What is CSR?

 CSR is not, per se, about ―charity‖ or
―philanthropy‖

 A key dimension of CSR is about private
companies recognizing that being good
corporate citizens is ‗good for business‘.



CSR is about the commitment by business to:

• Make a profit, prosper financially, and contribute to
economic development
…but also, to:

• Behave ethically and contribute to social development
by improving the quality of life of the workforce and their
families, as well of the local community and society at
large

CSR is about companies having a “Triple Bottom Line”


CSR & “The Triple bottom line”

Corporate Social Responsibility
(Sustainable Development)

Financial Social Environmental
Responsibility Responsibility Responsibility

WBCSD
Diagram


Triple Bottom Line

VALUES
Social Environmental

Financial

VALUE


Why focus on social performance?

“In a transparent, globalized world, economic performance,
environmental performance and social performance hang together.
Business is realizing that it has become an integral part of society and
now has wide-ranging responsibilities… shareholder value and social
responsibility support each other‖
Göran Lindahl, President and CEO Asea Brown Boveri (ABB)

―Our commitment to community development ―represent(s) an added
cost, but is an essential investment in our future…(and) should help us to
achieve greater profitability‖.
Jay Taylor CEO Placer Dome

―Social
responsibility is a matter of hard-headed business logic‖
John Browne, CEO BP-Amoco A History of Creating Innovative Partnerships


CSR: not just for the big firms

 Companies big and small
can make significant
contributions to social
development

 And: CSR does not
necessarily require a
financial investment.



CSR is a Global Phenomena

“By working together to
mobilize sustainable
investment in the Least
Developed Countries,
government, business
and civil society give
hope and opportunity to
the world’s poorest”

Kofi Annan
UN Global Compact
Secretary-General


CSR is about Working in Partnership



Civil Society Companies

CSR Is:
Gov’t
&
 Companies working in Donors
partnership with communities
and others to address problems;
 Companies promoting good values to their
employees, suppliers, customers, partners;
 Companies investing in social and economic
development.
 Companies being good corporate citizens;


Beyond Beads and Trinkets



Beyond Beads ‗n‘ Trinkets
A new model for doing business:

 To create business value and ―corporate
sustainability‖, companies must work with other
stakeholders (government, civil society, donors)
to create meaningful development value.

• Rural Development
• Community Health
• Enterprise Development
• Microfinance
• Infrastructure Support A History of Creating Innovative Partnerships


Why is CSR happening?

Globalized world is demanding more of business.

 Global media – The CNNization of the world –
remote local issues direct to television screens
 Proliferation of NGOs – direct, well organized
and financed support to communities
 Internet and other communications innovations
– direct communications from remote projects to
worldwide audience
 Global Democratization – increased attention to
local issues www.waynedunn.com; info@waynedunn.com
Page 15

Social Development

Governments Donors IFIs NGOs

Private Social Development
companies Projects

Communities



The Business Case: CSR Driving Forces

 Pressure: a response to
external forces (i.e.— NGOs,
governments, customers,
shareholders and
communities); and to internal
forces (i.e.- employees)
 Values: The core beliefs of the
company
 Strategy: Enhancement of an Ford Foundation
Diagram
organization‘s long-term
business goals.


Pressure: Governments

 Governments – both North and South - are
increasingly demanding social and
environmental accountability from foreign
investors, and from domestic enterprises.

“Beyond beads and trinkets”



Pressure: NGOs, Communities

How would you like these people showing
up at your annual meeting?


Pressure: Shareholders

 ‗Socially conscious‘ shareholders

 Social Investment Funds (Socially responsible
investment refers to making investment decisions
based on a company‘s social and environmental
practices and on their corporate values and ethics).

 The Financial Markets
– Dow Jones Sustainability Index
– FTSE Sustainability Index


What is “Social Investment”?

 Socially responsible investment, which
refers to incorporating investment
decisions with social and environmental
concerns

… different from:

 Socially directed investment, which is
aimed at companies participating in
specific social development projects.


Pressure: Consumers, Customers

CSR = Business Value


Business Value

 Improved competitive advantage
 Enhanced Brand equity / corporate image
 Reputational Capital (with customers,
financiers, business community, and with
the public.

In global economy, brand image and
reputation are among a company’s most
valued assets.


Improved financial performance

 The Hill and Knowlton's Corporate Reputation
Watch 2002 survey targeted executives in Europe
and North America and found that good corporate
reputation is becoming an essential tool to
increase sales, profitability and competitiveness.



Supply Chain and CSR

 Companies increasingly sourcing raw
materials, inputs for their products from
‗socially responsible‘ suppliers
 Example: A Haitian manufacturer gains a
competitive advantage with its overseas buyers
because of its socially responsible practices.



CSR: The Development Case

– Poverty Alleviation
– Community Health
– Rural Development
– Environmental Issues
– Local Capacity
Development
– Infrastructure Support



Some Results

Business Results Development Results
 Industry leadership  Stronger institutions
 Brand equity/ corporate  Economic development
image enhanced
 Greater political stability
 Increased employee
 Community health
satisfaction, loyalty,
Increased sales and  Rural development
customer and loyalty  Education and literacy
 Greater opportunity for  Sustainable development
growth and poverty alleviation
 Access to/and cost of
capital
Good values create VALUE ($$$)


Quotes from the World Summit

 UN Secretary General Kofi Annan ―lasting and
effective answers can only be found if business –
working together with other actors including
government and civil society– is fully engaged ‖

 Prime Minister Chretien (Canada) ―Building
creative and innovative partnerships to promote
sustainable development is a defining theme of
our global agenda‖



Some Examples

Placer Dome Care Project
Poverty alleviation
Community health
Capacity development
HIV/AIDs

Eldorado Gold - Kisladag
Poverty alleviation
Environmental rehabilitation
Rural development
Capacity development




 Original objective – mitigate the social and economic
impacts of retrenchment and assist 70% of family units
to become economically active

 Innovative rural development and HIV/AIDS program,
delivered at community level across 3.5 million sq km
of southern Africa
– Extensive involvement of women and families
– Pioneered new 13 step process with extensive counseling,
training and support. (Process is being copied by other
development programs in the region)



 HIV/AIDS program won
prestigious Development
Innovation Award at World
Bank Development
Marketplace
– Over 2,400 development
projects from 122 countries

 CSR can create real
development value



Eldorado Gold - Kisladag Project
 Strategic approach to
use mining project to
facilitate sustainable
rural development
– Development of
agriculture related
industries and
infrastructure;
– Increased involvement of
women;
– Improved grazing and
land management (reduce
desertification)



CSR Partnerships

Preceding examples all involved
partnerships
 Care Project – Southern Africa (CIDA Inc.,
World Bank)
 Kisladag - Turkey (CIDA Inc.)

Developmental impacts (health,
poverty, etc.) increased through
collaboration between private sector
and ODA agencies such as CIDA.


CSR in Venezuela

 In 1999, Statoil Venezuela entered into a project
in partnership with the local office of the United
Nations Development Programme, the local
chapter of Amnesty International, and a branch
of the Venezuelan judiciary to train judges
around the country.



Banking and CSR

 Support for Micro finance
 Promoting private sector by lending to small
enterprises is considered a social responsibility as
well as a commercial opportunity.

– Unibank (Haiti)
– Grameen Bank (Worldwide)
– Citibank initiatives (Worldwide)



CSR in Chile
 Pollos Ariztía, a large chicken
producer near Santiago.
 Company president Manuel Ariztía
has taken a lead role in improving
education including professional
teacher development.



CSR and Columbia

 Holcim's Columbian subsidiary, Cementos Boyacá, has
developed a project to help to improve the living standards
of rural communities within the area of influence of the
cement-manufacturing facility in Nobsa.

 About 90 girls and boys, selected with the agreement of
their parents, come from farming and mining communities
in which Cementos Boyacá is active. The center's aim is
to educate and train the youth of the region so that they
are not forced to leave it.



CSR and Social Investment: Some
Key terms

 Good Corporate citizenship
 Social Entrepreneurship
 Sustainability
 Community relations
 Business Integrity and CSR
 Credibility



CSR/SI Information Resources

 See list of CSR websites, resources (handout)



Summary

CSR can and does create bottom line business
value, as well as development value Win-Win!

 CSR = sustainability for business (growth & profit)

 CSR/ODA/community partnerships = sustainable
development for the environment, for social and
economic development, and for poverty alleviation


Wayne Dunn & Associates

Global leader in CSR and sustainable development

 Assessment of CSR and sustainable development
initiatives
 Increasing value from existing CSR investments
 Strategic CSR plans, strategies and partnerships
 Design and management of socially directed
investments and projects
 Development and implementation of CSR
communication strategies



Wayne Dunn & Associates Ltd
2457 Bakerview Road
Mill Bay, BC Canada V0R2P0
Tel +1.250.743.7619 Fax: +1.250.743.7659
www.waynedunn.com
info@waynedunn.com



Wayne Dunn presents on Defining Social Investment and CSR at the Inter-American Foundation’s Executive Seminar on Social Investment and Corporate Social Responsibility, Port au Prince, Haiti, Oct 2002

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Wayne Dunn presents on Defining Social Investment and CSR at the Inter-American Foundation’s Executive Seminar on Social Investment and Corporate Social Responsibility, Port au Prince, Haiti, Oct 2002