Lecture delivered to the McGill Institute for the Study of International Development’s Executive Program on Corporate Social Responsibility Strategy and Management, Accra, Ghana, Nov 6, 2013
1. THINKING ABOUT CSR IN PRACTICE
thoughts, tools and examples
Corporate Social Responsibility
STRATEGY AND MANAGEMENT
An Executive Education Program
Accra, Ghana
Nov 4-8th, 2013
Wayne Dunn
Professor of Practice in CSR
McGill | Institute for the Study of International Development
wayne@waynedunn.com
Tuesday Nov 5th, 2013
2. Who is Wayne
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Accidental Academic
~25 years of CSR related experience
60+ projects involving about 30+ countries
Global background but African focus in last
decade
• Still learning (sometimes painfully!)
3. Lecture Overview
• Discuss and try out some practical tools and
approaches (Think Abouts) for assessing and
understanding CSR in the field
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Relationship
Value Sustainability
Social Value Return on
Investment
Value Proposition
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Partners
Value Creation
Communications
Metrics
CSR as a Catalyst
• Group Work
• Industry Social License discussion
4. Session Objectives
• To provide tools and insights for assessing
and understanding CSR projects and
initiatives?
• To help participants be able to think about
CSR in a more systematic manner.
• To introduce the concept of Industry Social
License
5. Definitions
Corporate Social Responsibility (CSR), Sustainable Development,
Social programs, Community Relations
Terms are often used interchangeably
Definition
“CSR 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 of the local community and society at large”
Corporate Social Responsibility
(Sustainable Development)
WBCSD
Diagram
Financial
Responsibility
Social
Responsibility
Environmental
Responsibility
6. Another
Definition of CSR
Corporate Social Responsibility (CSR) is
defined as value creation for business
that simultaneously yields more profit and
greater social impact, resulting in
powerful transformations and
opportunities for growth and innovation in
both business and society.
7. CSR in the OLDEN DAYS
Policies &
Good Intentions
Solving Social
Problems
8. CSR in the OLDEN DAYS (cont)
Community Relations Management
?Results?
Plan
Framework
System
9. United Nations Global Compact
announced by the then UN Secretary-General Kofi Annan in
an address to The World Economic Forum on January 31,
1999, and was officially launched at UN Headquarters in
New York on July 26, 2000
“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”
“lasting and effective answers can only be found if
business – working together with other actors
including government and civil society– is fully
engaged”
Kofi Annan
11. CSR is about value creation not
Need to balance interests
Charity
Value for People
Value for Communities
Value for Shareholders
Value for Governments
CSR is a SHARED RESPONSIBILITY
12. How to think about CSR (more) Systematically
• Frameworks and systematic
approaches to CSR is still an evolving
area, despite a lot of progress over the
last 15 years
• No one size fits all
• CSR programs and activities can be
examined along many dimensions
13. Some Key Dimensions to Think About
Type of Activity
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Grants and Donations
Community Social & Development
Training and Education
Local Institutional Development
Local Infrastructure
Employment
Procurement
Community Health
Other
14. Some Key Dimensions to Think About
Relationship
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Highly Asymmetrical – Donor/Client
Somewhat Asymmetrical
Symmetrical
Will it/should it change over time?
15. Some Key Dimensions to Think About
Value Proposition
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What Value Gets Created – For Who?
Who else might benefit?
Avoid Zero-Sum situations when possible
Education example
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Who benefits
Partners / Costs / Value
• $50k for 10 seats - $100k = 25 seats
16. Some Key Dimensions to Think About
Value Sustainability
• Does the initial investment continue to provide
value beyond the investment timeframe
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Community Event
Local Supply Chain
17. Some Key Dimensions to Think About
Social Value Return on Investment
• Not every dollar invested in CSR creates the
same level of social value
18. Millennium Development Goals
Framework for Public/Private
development collaboration
• Poverty
• Health
• Education
• Equality
• Environment
Common ground between private
sector CSR investments/activities
with ODA/Govt priorities
19. Some Key Dimensions to Think About
Partners
• Who/what benefits from success of this
initiative?
• What sort of partners would fit with this
initiative? (if any)
• What value would they receive? Create? (for
project and for company)?
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PNG AIDS/CIDA Inc.
20. Some Key Dimensions to Think About
Shareholder Value Creation
• What’s in it for the company?
22. More Key Dimensions to Think About
Communications
• What about this project should be
communicated?
• Why? How/Where? Risks? Rewards?
• What is the CSR equivalent of
Greenwashing?
23. More Key Dimensions to Think About
Metrics
• Can you manage it if you can’t measure it?
• What metrics would you measure/monitor?
• Why?
24. CSR as a Catalyst
• CSR projects can act as a catalyst to
bring key partners to the table
• Why do this?
• Increases available resources (financial,
human, organizational, political)
• Increases sustainability
• Reduces risk
28. Industry Social License
• Oil Sands - Alberta
• Uranium Mining – Saskatchewan
• American chefs signing up to boycott Canadian
seafood because of the seal hunt
• Nov 4, 2013 - Newfoundland bans fracking
pending more research
29. Think Abouts
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Relationship
Value Sustainability
Social Value Return on
Investment
Value Proposition
Partners
Value Creation
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Communications
Metrics
CSR as a Catalyst
Management Framework
Social License (Project,
Corporate, Industry)
Question
With all the work that has happened – Why
does CSR remains such an issue
30. Session Objectives
• To provide tools and insights for assessing
and understanding CSR projects and
initiatives?
• To help participants be able to think about
CSR in a more systematic manner.
• To introduce the concept of Industry Social
License
31. Extra Slides for Handout
The following are extra slides that readers
may find useful
32. Gathering & Organizing
Information on CSR Activities
ABC CSR Program
Description
Short description of the program
Objective
Stated and/or understood objectives
Type of Activity
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Grants and Donations
Community Social & Development
Training and Education
Local Institutional Development
Local Infrastructure
Employment
Procurement
Community Health
Other
33. Responsibility & Management What dept./position is responsible for the
program?
How is it currently managed and how
does the management integrate with
other corporate management systems?
Does the success/failure of this program
affect the manager’s annual evaluation?
How?
Consultation and History
What, if any, local involvement was there in
the design and development of the program?
Any other notes on history – when it started,
how it came about, successes, failures,
developments, etc.
34. Budget
Current budget including how it is derived
(i.e. 3% of something). Also any recent or
expected changes to the budget.
Value Proposition
What groups, individuals, stakeholders
benefit from this activity, directly and
indirectly? Is there a way to help more to
benefit from it?
Partners
Are there any partners that aren’t covered in
the value proposition discussion?
How are partners involved? What are their
roles and responsibilities?
Are they capable of meeting them?
35. Community Benefits
What are the benefits to the community?
Can they be quantified? How?
Company Benefits
What are the benefits to the company?
Can they be quantified? How?
Other Beneficiaries
Are there other benefits from the program?
Who benefits? How?
Can they be quantified? How?
36. Success Indicators, Metrics,
Measuring & Monitoring
How is the program measured and
monitored?
Does it connect to management and
corporate objectives?
Is the program’s success linked to the
management evaluation program?
What other, if any, success indicators are
there?
How is the program reported? To who?
Frequency
37. Other Think Abouts
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Value Sustainability
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Social Value Return on Investment
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Communications
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Metrics
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CSR as a Catalyst
38. For Additional Information
Wayne Dunn
Professor of Practice in Corporate Social Responsibility
McGill University | Institute for the Study of International Development
wayne@waynedunn.com
Desk: +1.250.743.7619