Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
applying CSR in SMEs - ebbf dtruran - part 1
1. IMSD / CSR in SMEs
CSR in SMEs - an Introduction
PROFESSOR
daniel truran - @dtruran - daniel.truran@ebbf.org
www.eoi.es
2. IMSD / CSR in SMEs
Your assignment by Wednesday 17th April
20% of marking EOI blog post
one or more short blog posts about one or more areas of CSR in SMEs
that struck you / that you felt are important
70% of marking a short document on CSR in SMEs
2 A4 pages maximum - 3 min presentation - website links
- Identify an SME that has applied CSR (world coverage)
- describe the driver that pushed that company to CSR
- identify stakeholders it positively influenced
- describe success it brought about: IMPORTANT quantify success
email to : daniel.truran@ebbf.org
10% of marking attention and “intelligent” active participation in
the class
ebbf.org / Daniel Truran www.eoi.es
3. IMSD / CSR in SMEs
Definition of SME ?
ebbf.org / Daniel Truran www.eoi.es
4. IMSD / CSR in SMEs
Definition of SME ?
Medium-sized enterprises:
- Have fewer than 250 employees.
- Their annual turnover should not exceed EUR 40 million
- Or their annual balance-sheet total should be less than EUR 27 million.
Small enterprises:
- have between 10 and 49 employees.
- They should have an annual turnover not exceeding EUR 7 million
- or an annual balance-sheet total not exceeding EUR 5 million.
Micro-enterprises:
are enterprises which have fewer than 10 employees
(According to Commission Recommendation (96/280/EC) of 3 April 1996 )
ebbf.org / Daniel Truran www.eoi.es
5. IMSD / CSR in SMEs
new definitions ...
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
6. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
7. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
8. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
•Enabled by communication technologies, they can
set up shop anywhere. "Small is an asset, it
means you're able to respond to consumer needs
very quickly. You can be agile without the
bureaucracy."
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
9. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
•Enabled by communication technologies, they can
set up shop anywhere. "Small is an asset, it
means you're able to respond to consumer needs
very quickly. You can be agile without the
bureaucracy."
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
10. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
•Enabled by communication technologies, they can
set up shop anywhere. "Small is an asset, it
means you're able to respond to consumer needs
very quickly. You can be agile without the
bureaucracy."
•Today's start-ups will never grow into conglomerates
with a staff of 100,000 that traditional path is
over. It's ineffective."
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
11. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
•Enabled by communication technologies, they can
set up shop anywhere. "Small is an asset, it
means you're able to respond to consumer needs
very quickly. You can be agile without the
bureaucracy."
•Today's start-ups will never grow into conglomerates
with a staff of 100,000 that traditional path is
over. It's ineffective."
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
12. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
•Enabled by communication technologies, they can
set up shop anywhere. "Small is an asset, it
means you're able to respond to consumer needs
very quickly. You can be agile without the
bureaucracy."
•Today's start-ups will never grow into conglomerates
with a staff of 100,000 that traditional path is
over. It's ineffective."
•"For us, opening an office in another country would
mean one of us flying there, finding a co-working
space and setting up a desk”
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
13. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
•Enabled by communication technologies, they can
set up shop anywhere. "Small is an asset, it
means you're able to respond to consumer needs
very quickly. You can be agile without the
bureaucracy."
•Today's start-ups will never grow into conglomerates
with a staff of 100,000 that traditional path is
over. It's ineffective."
•"For us, opening an office in another country would
mean one of us flying there, finding a co-working
space and setting up a desk”
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
14. IMSD / CSR in SMEs
new definitions ... •Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years.
•Enabled by communication technologies, they can
set up shop anywhere. "Small is an asset, it
means you're able to respond to consumer needs
very quickly. You can be agile without the
bureaucracy."
•Today's start-ups will never grow into conglomerates
with a staff of 100,000 that traditional path is
over. It's ineffective."
•"For us, opening an office in another country would
mean one of us flying there, finding a co-working
space and setting up a desk”
•"We're really fast, so if we see that there is, for
example, a huge market for us in Brazil, we'll be
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
there in a week."
ebbf.org / Daniel Truran www.eoi.es
15. IMSD / CSR in SMEs
What are the characteristics of an SME?
ebbf.org / Daniel Truran www.eoi.es
16. IMSD / CSR in SMEs
What are the characteristics of an SME?
They usually have extensive local knowledge of resources, supply patterns and
purchasing trends.
ebbf.org / Daniel Truran www.eoi.es
17. IMSD / CSR in SMEs
What are the characteristics of an SME?
They usually have extensive local knowledge of resources, supply patterns and
purchasing trends.
SMEs also represent an important source of innovation. They tend to
occupy specialized market “niches” and follow competitive strategies
that set them apart from other companies.
ebbf.org / Daniel Truran www.eoi.es
18. IMSD / CSR in SMEs
What are the characteristics of an SME?
They usually have extensive local knowledge of resources, supply patterns and
purchasing trends.
SMEs also represent an important source of innovation. They tend to
occupy specialized market “niches” and follow competitive strategies
that set them apart from other companies.
They are highly adaptable and fast changers
ebbf.org / Daniel Truran www.eoi.es
19. IMSD / CSR in SMEs
What are the characteristics of an SME?
They usually have extensive local knowledge of resources, supply patterns and
purchasing trends.
SMEs also represent an important source of innovation. They tend to
occupy specialized market “niches” and follow competitive strategies
that set them apart from other companies.
They are highly adaptable and fast changers
They draw upon the community for their workforce and rely on it to do business.
They are an important source of employment.
They provide goods and services tailored to local needs and at costs affordable
to local people.
ebbf.org / Daniel Truran www.eoi.es
20. IMSD / CSR in SMEs
“local” market of SMEs
ebbf.org / Daniel Truran www.eoi.es
21. IMSD / CSR in SMEs
“local” market of SMEs
ebbf.org / Daniel Truran www.eoi.es
22. IMSD / CSR in SMEs
“local” market of SMEs
ebbf.org / Daniel Truran www.eoi.es
23. IMSD / CSR in SMEs
“local” market of SMEs
suppliers
ebbf.org / Daniel Truran www.eoi.es
24. IMSD / CSR in SMEs
“local” market of SMEs
suppliers
customers
ebbf.org / Daniel Truran www.eoi.es
25. IMSD / CSR in SMEs
“local” market of SMEs
suppliers
customers
shareholders
ebbf.org / Daniel Truran www.eoi.es
26. IMSD / CSR in SMEs
“local” market of SMEs
suppliers
customers
shareholders
employees
ebbf.org / Daniel Truran www.eoi.es
27. IMSD / CSR in SMEs
new definitions ...
http://www.cnbcmagazine.com/story/rise-of-the-roaming-empires/1558/3/
ebbf.org / Daniel Truran www.eoi.es
28. IMSD / CSR in SMEs
new definitions ...
Avego operates in China, Europe and the US, yet its head office is in Kinsale, southern coast of
Ireland.
"The idea of a headquarters is really a foreign concept,”
http://www.cnbcmagazine.com/story/rise-of-the-roaming-empires/1558/3/
ebbf.org / Daniel Truran www.eoi.es
29. IMSD / CSR in SMEs
new definitions ...
Avego operates in China, Europe and the US, yet its head office is in Kinsale, southern coast of
Ireland.
"The idea of a headquarters is really a foreign concept,”
Being spread across 18 time zones poses
challenges.
Most of the staff have monthly Skype
meetings;
managers have a bi-weekly substitute for
the traditional chat around the water
cooler.
The company uses Google+ hangouts and
shared desktops, and Dropbox for sharing
documents.
"Most large companies cannot compete on
http://www.cnbcmagazine.com/story/rise-of-the-roaming-empires/1558/3/ this level”
ebbf.org / Daniel Truran www.eoi.es
30. IMSD / CSR in SMEs
Impact of SMEs
In OECD (*) economies SMEs and
microenterprises account for:
over 95% of firms,
60-70% employment,
55% of GDP
In developing countries, more than
90% of all firms outside the
agricultural sector are SMEs and
microenterprises.
(*) Most OECD members are high-income economies with a "very high" Human Development Index (HDI) and are regarded as developed countries.
ebbf.org / Daniel Truran www.eoi.es
31. IMSD / CSR in SMEs
Impact of SMEs
In OECD (*) economies SMEs and
microenterprises account for:
over 95% of firms,
60-70% employment,
55% of GDP
In developing countries, more than
90% of all firms outside the
agricultural sector are SMEs and
microenterprises.
(*) Most OECD members are high-income economies with a "very high" Human Development Index (HDI) and are regarded as developed countries.
ebbf.org / Daniel Truran www.eoi.es
32. IMSD / CSR in SMEs
Impact of SMEs
In OECD (*) economies SMEs and
microenterprises account for:
over 95% of firms,
60-70% employment,
55% of GDP
In developing countries, more than
90% of all firms outside the
agricultural sector are SMEs and
microenterprises.
SMEs and Microenterprises also create 80% of pollution
(*) Most OECD members are high-income economies with a "very high" Human Development Index (HDI) and are regarded as developed countries.
ebbf.org / Daniel Truran www.eoi.es
33. IMSD / CSR in SMEs
Impact of SMEs
ebbf.org / Daniel Truran www.eoi.es
34. IMSD / CSR in SMEs
Impact of SMEs
organization
ebbf.org / Daniel Truran www.eoi.es
35. IMSD / CSR in SMEs
Impact of SMEs
shareholders management
organization
suppliers
employees
clients
ebbf.org / Daniel Truran www.eoi.es
36. IMSD / CSR in SMEs
Impact of SMEs
environment
government
shareholders management
organization
suppliers
employees
clients
local community
ebbf.org / Daniel Truran www.eoi.es
37. IMSD / CSR in SMEs
Impact of SMEs
common good
environment
government
shareholders management
organization
suppliers
employees
clients
local community
ebbf.org / Daniel Truran www.eoi.es
38. IMSD / CSR in SMEs
"Profit for a company is like oxygen for a person,
ebbf.org / Daniel Truran www.eoi.es
39. IMSD / CSR in SMEs
"Profit for a company is like oxygen for a person,
Unfortunately, most businesses operate
as if their purpose is breathing”
Peter Senge
ebbf.org / Daniel Truran www.eoi.es
40. IMSD / CSR in SMEs
yet another definition of CSR?
ebbf.org / Daniel Truran www.eoi.es
41. IMSD / CSR in SMEs
yet another definition of CSR?
“the sum of your activities is the social and economic impact of
business in a locality”
BitC - Business in the Community (UK)
ebbf.org / Daniel Truran www.eoi.es
42. IMSD / CSR in SMEs
yet another definition of CSR?
“the sum of your activities is the social and economic impact of
business in a locality”
BitC - Business in the Community (UK)
they can be negative impacts
unemployment, noise/pollution, exclusion, congestion, product
misuse ....
ebbf.org / Daniel Truran www.eoi.es
43. IMSD / CSR in SMEs
yet another definition of CSR?
“the sum of your activities is the social and economic impact of
business in a locality”
BitC - Business in the Community (UK)
they can be negative impacts
unemployment, noise/pollution, exclusion, congestion, product
misuse ....
or positive impacts
jobs, support social enterprise, education skills and training,
community investment, local amenities ...
ebbf.org / Daniel Truran www.eoi.es
44. IMSD / CSR in SMEs
What decisions affect?
where you locate and manage your operations [site location and
management]
implications: getting to work ...
who you hire [employment]
what and from whom you purchase [supply chain and procurement]
how and what you produce and sell [product and service deliver]
what and how you give back [community and social investment]
....
ebbf.org / Daniel Truran www.eoi.es
45. IMSD / CSR in SMEs
examples from your companies ?
what positive or negative effects ?
ebbf.org / Daniel Truran www.eoi.es
46. IMSD / CSR in SMEs
examples from your companies
what positive or negative effects ?
common good
environment
government
shareholders management
organization
suppliers
employees
clients
local community
ebbf.org / Daniel Truran www.eoi.es
47. IMSD / CSR in SMEs
Collective impact
Collectively SMEs have considerable environmental impact.
However, given the various challenges with which they are
confronted, and the perception that their individual impact is not
significant, it is unlikely that environmental concerns will figure
high on their business agendas.
ebbf.org / Daniel Truran www.eoi.es
48. IMSD / CSR in SMEs
Collective impact
Collectively SMEs have considerable environmental impact.
However, given the various challenges with which they are
confronted, and the perception that their individual impact is not
significant, it is unlikely that environmental concerns will figure
high on their business agendas.
do you agree?
ebbf.org / Daniel Truran www.eoi.es
49. IMSD / CSR in SMEs
Collective impact
Collectively SMEs have considerable environmental impact.
However, given the various challenges with which they are
confronted, and the perception that their individual impact is not
significant, it is unlikely that environmental concerns will figure
high on their business agendas.
do you agree?
are you ok with this?
ebbf.org / Daniel Truran www.eoi.es
50. IMSD / CSR in SMEs
Collective impact
Collectively SMEs have considerable environmental impact.
”?
le is not
However, given the various challenges with which they are
sib
confronted, and the perception that their individual impact
significant, it is unlikely that environmentalp on will figure
s concerns
high on their business agendas. “ re
o be
t
Es
SM
es you agree?
d riv do
h at
W are you ok with this?
ebbf.org / Daniel Truran www.eoi.es
51. IMSD / CSR in SMEs
Collective impact
Collectively SMEs have considerable environmental impact.
However, given the various challenges with which they are
confronted,drivesperception that their individual impact is not
What and the SMEs to be “responsible”?
significant, it is unlikely that environmental concerns will figure
high on their business agendas.
the good corporations can do
By engaging with SMEs, assisting them with capacity building, and
aiding them with compliance, particularly with environmental
standards, large corporations can help SMEs integrate sustainable
development thinking into their production processes and
operations.
ebbf.org / Daniel Truran www.eoi.es
52. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
corporate supply chain
ebbf.org / Daniel Truran www.eoi.es
Walmart Supplier Sustainability Assessment
53. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
corporate supply chain
ebbf.org / Daniel Truran www.eoi.es
Walmart Supplier Sustainability Assessment
54. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
corporate supply chain
http://www.sustainabilityconsulting.com/walmart-services/
ebbf.org / Daniel Truran www.eoi.es
Walmart Supplier Sustainability Assessment
55. using a scorecard to your advantage
Another challenge for some suppliers is figuring out how to translate the
scorecard's answers into strategic management plans.
The scorecard's 15 questions are grouped into four categories: energy and
climate; material efficiency; natural resources; and people and
community
so it's easy to see which sustainability category need to be addressed with
short term tactics.
What's more difficult is building the right internal team and developing a
more strategic approach, because most manufacturers don't organize
their management teams and business units around sustainability
categories.
http://www.fivewinds.com/english/news-and-events/patterns-newsletter/how-to-use-walmart-s-supplier-scorecard-to-your-advantage.htm
ebbf.org / Daniel Truran www.eoi.es
56. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
ebbf.org / Daniel Truran www.eoi.es
57. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
- Large corporation's supply chain requirements
- Government regulation - constraints concerning environment
social contracts and legislation
- Increased demand from customers/society
- Personal wish to be responsible, to do the right thing
- Eco-efficiency driven innovation
- ....
ebbf.org / Daniel Truran www.eoi.es
58. IMSD / CSR in SMEs
Difference between these two groupings?
ebbf.org / Daniel Truran www.eoi.es
59. IMSD / CSR in SMEs
Difference between these two groupings?
- Large corporation's supply chain requirements
- Government regulation - constraints concerning environment
social contracts and legislation
- Increased demand from customers/society
- Personal wish to be responsible, to do the right thing
- Eco-efficiency driven innovation
- ...
ebbf.org / Daniel Truran www.eoi.es
60. IMSD / CSR in SMEs
Difference between these two groupings?
PASSIVE v
- Large corporation's supply chain requirements
- Government regulation - constraints concerning environment
social contracts and legislation
- Increased demand from customers/society
- Personal wish to be responsible, to do the right thing
- Eco-efficiency driven innovation
- ...
ebbf.org / Daniel Truran www.eoi.es
61. IMSD / CSR in SMEs
Difference between these two groupings?
PASSIVE v
- Large corporation's supply chain requirements
- Government regulation - constraints concerning environment
social contracts and legislation
- Increased demand from customers/society
ACTIVE v
- Personal wish to be responsible, to do the right thing
- Eco-efficiency driven innovation
- ...
ebbf.org / Daniel Truran www.eoi.es
62. IMSD / CSR in SMEs
Difference between these two groupings?
PASSIVE v
- Large corporation's supply chain requirements
- Government regulation - constraints concerning environment
social contracts and legislation
- Increased demand from customers/society
ACTIVE v
- Personal wish to be responsible, to do the right thing
- Eco-efficiency driven innovation
- ...
creating the love brand ... (or the “like” brand)
ebbf.org / Daniel Truran www.eoi.es
63. IMSD / CSR in SMEs
Love Brand
Emotional Engagement with your stakeholders
ebbf.org / Daniel Truran www.eoi.es
64. IMSD / CSR in SMEs
Love Brand
Emotional Engagement with your stakeholders
ebbf.org / Daniel Truran www.eoi.es
65. IMSD / CSR in SMEs
Love Brand
Emotional Engagement with your stakeholders
ebbf.org / Daniel Truran www.eoi.es
66. IMSD / CSR in SMEs
Love Brand
Stakeholders “in love”
Not only buy
But actively promote
ebbf.org / Daniel Truran www.eoi.es
67. IMSD / CSR in SMEs
evolving purchasing patterns
ebbf.org / Daniel Truran www.eoi.es
68. IMSD / CSR in SMEs
evolving purchasing patterns
awareness
ebbf.org / Daniel Truran www.eoi.es
69. IMSD / CSR in SMEs
evolving purchasing patterns
consideration
awareness
ebbf.org / Daniel Truran www.eoi.es
70. IMSD / CSR in SMEs
evolving purchasing patterns
preference
consideration
awareness
ebbf.org / Daniel Truran www.eoi.es
71. IMSD / CSR in SMEs
evolving purchasing patterns
preference
consideration purchase
awareness
ebbf.org / Daniel Truran www.eoi.es
72. IMSD / CSR in SMEs
OLD purchasing patterns:
aiming to create loyalty
preference
consideration purchase
awareness loyalty
ebbf.org / Daniel Truran www.eoi.es
73. IMSD / CSR in SMEs
NEW purchasing pattern:
the key is now creating - positive advocacy -
preference
consideration purchase
awareness loyalty
ebbf.org / Daniel Truran www.eoi.es
74. IMSD / CSR in SMEs
NEW purchasing pattern:
the key is now creating - positive advocacy -
preference
consideration purchase
advocacy
awareness loyalty
ebbf.org / Daniel Truran www.eoi.es
75. IMSD / CSR in SMEs
NEW purchasing pattern:
the key is now creating - positive advocacy -
preference
consideration purchase
advocacy
awareness loyalty
ebbf.org / Daniel Truran www.eoi.es
76. IMSD / CSR in SMEs
NEW purchasing pattern:
the key is now creating - positive advocacy -
preference
consideration purchase
advocacy
awareness loyalty
have you used the powerful
www.eoi.es
ebbf.org / Daniel Truran
opportunity to “advocate” recently?
77. IMSD / CSR in SMEs
getting that advocacy
creating emotional engagement
making the promise delivering the promise
ebbf.org / Daniel Truran www.eoi.es
78. IMSD / CSR in SMEs
getting that advocacy
creating emotional engagement
advocacy
making the promise delivering the promise
ebbf.org / Daniel Truran www.eoi.es
79. IMSD / CSR in SMEs
getting that advocacy
creating emotional engagement
advocacy
making the promise delivering the promise
ebbf.org / Daniel Truran www.eoi.es
80. IMSD / CSR in SMEs
Love Brand
Are you in “love” with any brand because of its
sustainability / responsibility?
what is your emotional engagement?
ebbf.org / Daniel Truran www.eoi.es
81. IMSD / CSR in SMEs
Principle behind successful SMEs
“having a healthy business
should go hand in hand
with creating a healthy community”
ebbf.org / Daniel Truran www.eoi.es
82. IMSD / CSR in SMEs
Who are the “stakeholders” involved
in the following three examples?
ebbf.org / Daniel Truran www.eoi.es
83. IMSD / CSR in SMEs
Who are the “stakeholders” involved
in the following three examples?
Shareholders
Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
lie vir
p on
S up m
Communities
en
t
ebbf.org / Daniel Truran www.eoi.es
84. IMSD / CSR in SMEs
Who are the “stakeholders” involved
in the following three examples?
Shareholders
the enterprise eco system:
the stakeholder concept Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
lie vir
p on
S up m
Communities
en
t
ebbf.org / Daniel Truran www.eoi.es
85. IMSD / CSR in SMEs
Who are the “stakeholders”
involved in these three examples?
Who made CSR happen in these SMEs?
ebbf.org / Daniel Truran www.eoi.es
86. IMSD / CSR in SMEs
Who are the “stakeholders”
involved in these three examples?
Who made CSR happen in these SMEs?
Why? What was their driver?
ebbf.org / Daniel Truran www.eoi.es
89. Warby Parker - doing good doing well
ebbf.org / Daniel Truran www.eoi.es
90. Warby Parker - doing good doing well
http://youtu.be/DarG-uI319c
ebbf.org / Daniel Truran www.eoi.es
91. IMSD / CSR in SMEs
Sure ... but in times of crisis,
when the pressure is on?
ebbf.org / Daniel Truran www.eoi.es
92. IMSD / CSR in SMEs
Closer to local community
ebbf.org / Daniel Truran www.eoi.es
93. IMSD / CSR in SMEs
trust in times of crisis
Giada Dall’O
ebbf.org / Daniel Truran www.eoi.es
94. IMSD / CSR in SMEs
trust in times of crisis
"my first and current job is to create contracts
with hotels, restaurants and all stakeholders
present in the tourism sector. From my first day
at work I always tried to be honest and
transparent with my suppliers whilst of course
always trying to achieve the financial goals of my
company. Even though combining the two was
sometimes a challenge, in the end I was rewarded
in both areas!
This happened not so long ago when the manager
of a large Italian hotel chain decided to confirm a
big contract with us, taking away share from our
Giada Dall’O competitors, he justified his decision by saying:
ebbf.org / Daniel Truran www.eoi.es
95. IMSD / CSR in SMEs
trust in times of crisis
"my first and current job is to create contracts
with hotels, restaurants and all stakeholders
present in the tourism sector. From my first day
at work I always tried to be honest and
transparent with my suppliers whilst of course
always trying to achieve the financial goals of my
company. Even though combining the two was
sometimes a challenge, in the end I was rewarded
in both areas!
This happened not so long ago when the manager
of a large Italian hotel chain decided to confirm a
big contract with us, taking away share from our
Giada Dall’O competitors, he justified his decision by saying:
“in times of economic crisis such as the ones we are living now, knowing
that you can trust the people that you work with is fundamental”
ebbf.org / Daniel Truran www.eoi.es
96. IMSD / CSR in SMEs
Shareholders
Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
lie vir
p p on
Su m
Communities
en
t
ebbf.org / Daniel Truran www.eoi.es
97. IMSD / CSR in SMEs
Who are the “stakeholders” involved in
the following three examples?
Shareholders
Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
lie vir
p p on
Su m
Communities
en
t
ebbf.org / Daniel Truran www.eoi.es
98. IMSD / CSR in SMEs
Who are the “stakeholders” involved in
the following three examples?
Shareholders
Who made CSR happen Cu
s to
m e s
er ye
in these SMEs? s
Em
plo
Enterprise
Enterprise
rs En
lie vir
p p on
Su m
Communities
en
t
ebbf.org / Daniel Truran www.eoi.es
99. IMSD / CSR in SMEs
Who are the “stakeholders” involved in
the following three examples?
Shareholders
Who made CSR happen Cu
s to
m e s
er ye
in these SMEs? s
Em
plo
Enterprise
Enterprise
rs En
lie vir
p p on
Su m
Communities
Why? en
t
What was their driver?
ebbf.org / Daniel Truran www.eoi.es
100. IMSD / CSR in SMEs
What are some direct consequences / drivers
of SME’s efforts in CSR ?
Culture
Integrity wins public approval
Courage (love - emotional engagement)
differentiates your business
Active (not passive)
CSR
minimizes risks
Innovation
reduces costs
http://www.bi.no/CenterFiles/Centre%20for%20Corporate%20Responsibility/SME_Innovation_CSR.pdf
ebbf.org / Daniel Truran www.eoi.es
101. IMSD / CSR in SMEs
Shareholders
Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
lie vir
p on
S up Communities m
en
t
ebbf.org / Daniel Truran www.eoi.es
102. IMSD / CSR in SMEs
pick a stakeholder
and be socially responsible
Shareholders
Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
lie vir
p on
S up Communities m
en
t
ebbf.org / Daniel Truran www.eoi.es
103. IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
104. IMSD / CSR in SMEs
ebbf.org / Daniel Truran www.eoi.es
105. IMSD / CSR in SMEs
Identify Stakeholders
outcome of dialogue with stakeholders
ebbf.org / Daniel Truran www.eoi.es
www.ebbf.org
106. IMSD / CSR in SMEs
Identify Stakeholders
outcome of dialogue with stakeholders
Build Impact Measurement WITH stakeholders
ebbf.org / Daniel Truran www.eoi.es
www.ebbf.org
107. IMSD / CSR in SMEs
Identify Stakeholders
outcome of dialogue with stakeholders
Build Impact Measurement WITH stakeholders
Dialogue as a source of information and understanding
ebbf.org / Daniel Truran www.eoi.es
www.ebbf.org
108. IMSD / CSR in SMEs
Identify Stakeholders
outcome of dialogue with stakeholders
Build Impact Measurement WITH stakeholders
Dialogue as a source of information and understanding
Suppliers to IVECO example
ebbf.org / Daniel Truran www.eoi.es
www.ebbf.org
109. IMSD / CSR in SMEs
Identify Stakeholders
outcome of dialogue with stakeholders
Build Impact Measurement WITH stakeholders
Dialogue as a source of information and understanding
Suppliers to IVECO example
Source of innovation
ebbf.org / Daniel Truran www.eoi.es
www.ebbf.org
110. IMSD / CSR in SMEs
Examples of stakeholder
conversations (I)
CEO closing the entire factory down for one day
to set 10 year strategy
including the toilet cleaner - FULL engagement
ebbf.org / Daniel Truran www.eoi.es
111. IMSD / CSR in SMEs
“…significantly boost our company’s
performance during the next five
years.
How? Foremost, we look to inspire our
employees’ hope in the future, to
fill them with a sense of progress
and advancement in their careers as
well as their personal lives.
How we treat and teach our employees
and the sense of respect and
fairness our company projects, will
instill the loyalty, motivation and
positive thinking our team needs to
accomplish our goals.”
Fasha Mahjoor - CEO of Phenomenex
ebbf.org / Daniel Truran www.eoi.es
112. IMSD / CSR in SMEs
“…significantly boost our company’s
performance during the next five
years.
How? Foremost, we look to inspire our
employees’ hope in the future, to
fill them with a sense of progress
and advancement in their careers as
well as their personal lives.
How we treat and teach our employees
and the sense of respect and
fairness our company projects, will
instill the loyalty, motivation and
positive thinking our team needs to
accomplish our goals.”
Fasha Mahjoor - CEO of Phenomenex
ebbf.org / Daniel Truran www.eoi.es
113. IMSD / CSR in SMEs
“…significantly boost our company’s
performance during the next five
years.
How? Foremost, we look to inspire our
employees’ hope in the future, to
fill them with a sense of progress
and advancement in their careers as
well as their personal lives.
How we treat and teach our employees
and the sense of respect and
fairness our company projects, will
instill the loyalty, motivation and
positive thinking our team needs to
accomplish our goals.”
Fasha Mahjoor - CEO of Phenomenex
ebbf.org / Daniel Truran www.eoi.es
114. IMSD / CSR in SMEs
Shareholders
Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
p lie vir
S up on
m
Communities en
t
ebbf.org / Daniel Truran www.eoi.es
115. IMSD / CSR in SMEs
why do you think that employees
should be the first focus point of
CSR in SMEs ?
Shareholders
Cu
s to
m e s
er ye
s plo
Em
Enterprise
Enterprise
rs En
p lie vir
S up on
m
Communities en
t
ebbf.org / Daniel Truran www.eoi.es
116. IMSD / CSR in SMEs
this is THE age where you can make anything happen
ebbf.org / Daniel Truran www.eoi.es
117. IMSD / CSR in SMEs
Your assignment by Wednesday 17th April
20% of marking EOI blog post
one or more short blog posts about one or more areas of CSR in SMEs
that struck you / that you felt are important
70% of marking a short document on CSR in SMEs
2 A4 pages maximum - 3 min presentation - website links
- Identify an SME that has applied CSR (world coverage)
- describe the driver that pushed that company to CSR
- identify stakeholders it positively influenced
- describe success it brought about: IMPORTANT quantify success
email to : daniel.truran@ebbf.org
10% of marking attention and “intelligent” active participation in
the class
ebbf.org / Daniel Truran www.eoi.es
119. IMSD / CSR in SMEs
new definitions ...
Campalyst is one of the 'micro-multinationals' that
have emerged over the past few years. With
global aspirations from the get-go, enabled by
communication technologies, they can set up
shop anywhere. "Small is an asset, it means
you're able to respond to consumer needs very
quickly. You can be agile without the
bureaucracy." Today's start-ups will never grow
into conglomerates with a staff of 100,000 that
traditional path is over. It's ineffective."
"For us, opening an office in another country would
mean one of us flying there, finding a co-working
space and setting up a desk, or just hiring
another person there. This is totally our
decision," he says. "We're really fast, so if we see
that there is, for example, a huge market for us
in Brazil, we'll be there in a week."
http://www.lisboncouncil.net//index.php?option=com_downloads&id=639
ebbf.org / Daniel Truran www.eoi.es
120. IMSD / CSR in SMEs
new definitions ...
... his company Avego operates in China, Europe and the US, yet its head office is in Kinsale, near
Cork on the southern coast of Ireland. "The idea of a headquarters is really a foreign concept,"
he says.
The nature of its products meant ... opening up offices for sales and support in Washington DC
and Silicon Valley, as well as a manufacturing facility for its hardware and a support office in
Dalian, China. Around 30 of its staff are in Ireland, with 15 in China and eight in the US.
Being spread across 18 time zones poses
challenges.
Most of the staff have monthly Skype
meetings;
managers have a bi-weekly substitute for
the traditional chat around the water
cooler.
The company uses Google+ hangouts and
shared desktops, and Dropbox for sharing
documents.
"Most large companies cannot compete on
http://www.cnbcmagazine.com/story/rise-of-the-roaming-empires/1558/3/ this level”
ebbf.org / Daniel Truran www.eoi.es
121. IMSD / CSR in SMEs
What are other drivers of CSR in SMEs?
India China People
ebbf.org / Daniel Truran www.eoi.es
122. IMSD / CSR in SMEs
Adapting to different environments
The Indian example
The Gandhian principle of trusteeship
(GandhiM.K. Harijan, 1927) expresses the
inherent duties of the business enterprises to
its consumers, workers,community and the
mutual responsibilities of these to one
another.
ebbf.org / Daniel Truran www.eoi.es
123. IMSD / CSR in SMEs
Adapting to different environments
The Indian example
India has 638,596 villages. The rural population is 72.2%
The private sector plays a critical part in the growth of rural India:
1. bridge the gap left by the government
2. increase their markets.
If you help build a road in rural India it benefits the community and
your company.
Examples: work in the rural areas for agriculture, animal husbandry,
water conservation, village institution building, capacity building and
amenities to fishermen, rural development programs which touches the
lives of people in remote villages medical services to the communities.
http://www.scribd.com/doc/51283801/4th-Wheel-March-2011-Newsletter
ebbf.org / Daniel Truran www.eoi.es
124. IMSD / CSR in SMEs
Adapting to different environments
The Indian example
a ct
m p
n i
a
India has 638,596 villages. The rural population is 72.2%
a ke of rural India:
The private sector plays a critical part in the growth
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If you help build a road in rural t a it benefits the community and
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Examples: work in the el
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water conservation, village institution building, capacity building and
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lives of people in remote villages medical services to the communities.
http://www.scribd.com/doc/51283801/4th-Wheel-March-2011-Newsletter
ebbf.org / Daniel Truran www.eoi.es
125. IMSD / CSR in SMEs
Principle behind successful SMEs
“having a healthy business
should go hand in hand
with creating a healthy community”
ebbf.org / Daniel Truran www.eoi.es
126. IMSD / CSR in SMEs
Adapting to different environments
ebbf.org / Daniel Truran http://www.chinacsrproject.org/ www.eoi.es
127. IMSD / CSR in SMEs
Adapting to different environments
The Chinese example
Hebei Huatong Wires & Cables Co. Ltd
(working with GIZ)
. particularly important for export companies
. high rate of employee turnover
. poor product quality points
ebbf.org / Daniel Truran http://www.chinacsrproject.org/ www.eoi.es
128. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
(In China)
Employee Care Scheme:
! minimum of two hours of technical or managerial training every week.
! Operators on the production line would take a minimum of 20 hours of in-house training and a
minimum of 50 hours of on-site training every year
! All employees would take a minimum of one hour of safety education training every month.
! Selected employees would visit peer companies once every six months
! Employees encouraged to receive advanced vocational training. The training fee would always
be fully reimbursed in the case of cable related operations. Other types of training would also be
partially subsidized.
Improving working conditions:
! A workplace safety fund was established. Huatong decided to allocate RMB 100,000 (USD
14,754) per year to the fund.
! RMB 100,000 (USD 14,754) per year also allocated for Personal Protection Equipments (PPEs) to
the workshop in the area of production.
! Medical check-up for all employees twice a year.
! Medical box was equipped on site in all workshops.
ebbf.org / Daniel Truran www.eoi.es
129. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
(In China)
Employee Care Scheme:
! RMB 150,000 (USD 221,302) was invested to install solar bathing systems at all employee
dormitories.
! RMB 40,000 (USD 5,905) was invested to build a sports room and a basketball court.
! Two tourism-related activities would be organized every year in spring and summer for
the employees, to be defined by Huatong’s management system.
! An entertainment activity would be organized for all employees every three months.
! A birthday party would be organized every month for those employees whose birthdays
fall in that month.
ebbf.org / Daniel Truran www.eoi.es
130. IMSD / CSR in SMEs
What drives an SME’s efforts in CSR?
(In China)
The Employee Care Scheme brought about encouraging results in 2009.
! The employee turnover rate was reduced from 5.7% to 2.8% (from end of 2008 to end
of 2009).
This led to the following unintended benefits to Huatong compared to a year earlier:
! The costs of recruitment and training were effectively reduced by RMB 13,000, (USD
1,917), 47.6% lower than the year before.
! The product First Pass Rate increased from 97.1% to 99.2%.
! The customer satisfaction rate in services increased from 74.6% to 86.3%.
! The overall savings achieved due to the upgrading of skills were over RMB 5 Million
(USD 737,676)
ebbf.org / Daniel Truran www.eoi.es
131. IMSD / CSR in SMEs
GIZ in China
ebbf.org / Daniel Truran http://www.chinacsrproject.org/ www.eoi.es
