CORPORATE SOCIAL RESPONSIBILITY...MAGIC OR MYTH? It was President John Kennedy who said, “A rising tide li!s a" boats.” but is Corporate Social Responsibility a" it’s cracked up to be? writes Darryl Judd, COO for Logistics Executive Group. It has been bandied around as yet another corporate “feel good” that is “trending” at the moment. Corporate Social Responsibility (CSR) is fast becoming an industry in itself, interspersed in corporate frameworks globally, and infused universally in standard business practices. Human Resources units are lavishing large budgets on CSR initiatives in the quest for their holy grail, which is envisioning an engaged employee workforce but does this work? Is CSR good for business on a wider framework? The Logistics Executive Employment Market Survey 2012 explored these questions and the perception of CSR in the market place. The survey found that whilst CSR was a focus for 74.2% of organizations, the respondents in leadership roles revealed that there were barriers to the wider adoption of CSR in the following areas: Cost, Unclear Benefits and lack of Senior Management Support. This suggests that there is still some confusion at executive level about the commercial benefits of CSR initiatives. Defenders claim that CSR increases the virtue of the company and employee brand. For example Human Resources professionals argue that CSR enhances employee engagement and the employee brand. It therefore increases employee retention and enhances talent acquisition strategies.

1. CEO EXECUTIVE SERIES! 27 APRIL 2012
CORPORATE SOCIAL
RESPONSIBILITY NEWS &
MAGIC OR MYTH? EVENTS
It was President John Kennedy who said, “A rising tide li!s a"
boats.” but is Corporate Social Responsibility a" it’s cracked up to Upcoming Events
be? writes Darryl Judd, COO for Logistics Executive Group. 5th Global Logistics and SCM
Summit on 30th May 2012
Attended by 250 plus professionals
from 30 plus countries, the summit is
an intense discussion on strategies for
supply chain and logistics
management and brings together
many global thought and industry
leaders. This is a must attend summit
by all engaged in supply chain and
logistics industry. Held in Dubai, UAE,
May 30, 2012.
(click here to find out more)
Global Logistics and Cargo
Symposium 2012 - Malaysia
The theme of the symposium
“Economic Transformation,
Leadership success and Integrity” and
it highlights the challenges and
opportunities for supply chain,
stakeholders in the region as well as
showcasing its homegrown best
practices in supply chain and logistics
management. Held in Kuala Lumper,
Malaysia, June 27-28, 2012.
(click here to find out more)
It has been bandied around as yet another corporate “feel good”
that is “trending” at the moment. Corporate Social Responsibility Logistics Executive
(CSR) is fast becoming an industry in itself, interspersed in Global News
corporate frameworks globally, and infused universally in standard
business practices. Human Resources units are lavishing large Logistics Executive’s LINKED IN
budgets on CSR initiatives in the quest for their holy grail, which is Group hits 10,000 members
envisioning an engaged employee workforce but does this work? Is Already with a candidate database of
CSR good for business on a wider framework? 80,000 plus Supply Chain and
Logistics professionals globally,
The Logistics Executive Employment Market Survey 2012 Logistics Executive’s industry
explored these questions and the perception of CSR in the market networking group on LINKED IN
place. The survey found that whilst CSR was a focus for 74.2% of recorded a key milestone in April by
organizations, the respondents in leadership roles revealed that becoming one of the few specialist
there were barriers to the wider adoption of CSR in the following groups to exceed 10,000 members.
areas: Cost, Unclear Benefits and lack of Senior Management The Logistics Executive LinkedIn
Support. This suggests that there is still some confusion at Group is quickly becoming the hub for
executive level about the commercial benefits of CSR initiatives. global supply chain and logistics
experts and is free to join.
Defenders claim that CSR increases the virtue of the company
and employee brand. For example Human Resources professionals
© 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 1

2. CEO EXECUTIVE SERIES! 27 APRIL 2012
argue that CSR enhances compensation. And doing it is a of the concept from the outset
employee engagement and the breach of their fiduciary duty to and companies acting as the
employee brand. It therefore shareholders, ever y bit as enablers. Clearly defined
increases employee retention and objectionable as using the processes and transparent
enhances talent acquisition corporate jet for their own metrics put in place. The
strategies. pleasure trips”. concept of “social accounting/
The counter argument Of course there is the risk - auditing” practices need to be
however is that most companies or some more cynically would say implemented so that CSR
have yet to put clear measures in scandal avoidance - side of CSR. responsibilities can be linked to
place that can articulate these Consumer activists have used outcomes in meeting the agendas
benefits and the link to CSR. their new-found media clout to of their corporate and
The reality is that shareholders bully corporates into action community s t a ke h o l d e r s .
a r e m o r e l i ke l y t o l e a n o n against social injustice. Business Transparency, accountability and
executives to deliver clear metrics leaders have become painfully ownership by all stakeholders are
relating to profits rather than aware that consumers don’t just the underlying principles here
these soft targets. buy goods these days. No, these and the key to success.
The truth is that without days they like to “interact” with It isn’t surprising therefore
hard metrics, CSR becomes their favorite brands. They are that Executives are a bit
largely ineffective. According to educated, market sa vvy and resistance to embark on a CSR
political scientist Brendan Nyan, demanding. They belong to a program considering that they
it could be argue that CSR is an modern global workforce that has invest their company profits on a
easil y manipulated medium. toppled governments with process that they have little
“Much of what passes for CSR is Facebook during the spring control over – as this is largely
just stroking the egos of senior uprisings and brought major handed over to their staff – and
m a n a g e m e n t . Ha v i n g t h e Corporates shamed over poor are often being dictated to on
corporation make contributions business practices. who and how they can do
to causes fa vored by senior The only way forward for business by consumer activists.
management is, from their point CSR it would seem is through a It is therefore worth asking, what
of view, the best kind of charity, better understanding of this can CSR offer if it is done well?
because they get to spend other concept. Companies need to Wejuan Yao, Director for
people's money rather than their carefully prepare the way before China of Verite last year at the
own. (They still get all the glory, implementing their CSR Supply CHIaNA 2011 Business
of course, at those nice Man of programs. Executive decision Summit in Shanghai gave an
the Year dinners and at the m a ke r s n e e d t o b e b e t t e r impassioned presentation on
country club bar.) That's not in educated on what a true CSR “Trends in China Labor Relations
the interest of the corporation, program involves. Employee and the Implications on Supply
it's just a form of non-monetary involvement needs to be a driver Chain CSR Issues”.
Wenjuan is an example of
modern China. She
personifies in many ways the
human challenges faced by a
workforce in an emerging
e c o n o m y. He r r e c e n t
assignments have seen her
consulting to foreign
company’s who are trying to
m a n a g e t h e i r co r p o r a te
image by ensuring the labor
conditions of their Chinese
suppliers meet requirements.
Workers’ conditions are
highly topical all over the
world and have become a
subject of open debate, even
in China. Wenjuan provided
Above: Findings #om Logistics Executive’s 2011-2012 Global Employment Market Report a new perspective and a
voice to what was already a
© 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 2

3. CEO EXECUTIVE SERIES! 27 APRIL 2012
ner vous murmur at the access staff and more
Conference from many large egalitarian teams.
corporates in attendance. That “There are some basic
is, the dramatic improvements in commonsense r ules
the Chinese economy that have that can be applied to
led to the emergence of a new al l companies f rom
kind of Chinese worker who is small to large who wish
educated and a lot more aware to ensure their CSR
and demanding than previously. meets the rigors and
This is an issue about dealing changing demands of
with change more than anything. t h e m a r ke t p l a c e ”
In Wenjung’s words “China’s according to Kim
e co n o m y, t h e i n te r n a t i o n a l Wi n t e r, C E O o f
community, as well as all factories Logistics Executive.
have been benefiting from the Of course Kim would
unlimited and well-disciplined know all about this
cheap labor supplies in China subject as he is not
over the past 30 year and we are only the founder of
now facing the turning point. Logistics Executive but
When the tide goes down, the also the co-founder and Making New Friends. Sponsor Kim Andrews visits
competition for sur vival will CEO of Oasis Africa, a Oasis Africa in Kibera
become fierce. Meeting CSR leading charity
requirements may – finally -- organization which prevent the company from
become a real competitive supports the orphaned children making errors of judgment in
advantage for them in the near of the Kibera slums in Africa. At their suppl y chain that will
future.” Logistics Executive there is a expose them to undue risk.
In this ca se, Wenjung is strong voluntary involvement by These risks may include sourcing
acting as the conduit, she is using staff. “Often it’s the giving facet from disreputable suppliers who
CSR policy to build a bridge, of the CSR experience that is the employing workers under poor
which is creating a new era in most personally rewarding,” says conditions or who are not using
China’s economic history by and Kim. “It can act as a culturally environmentally sound practices.
bringing cohesion through a defining facet for your staff. It This is part of the corporate risk
process of radical change in gives all of us a sense of purpose management strategy, a defensive
employment conditions. Of and great pride to tell our story,” a p p r o a c h t o p r o t e c t t h e
course we don’t all belong to large he continues. The extent of company’s reputation.
corporate entities. Successfully Logistics E x e c u t i v e ’s 2.Employer and Corporate
implemented CSR can also be commitment to Oasis Africa also
Brand enhancer - An active
found in smaller entities that acts as a brand differentiator with
community initiative that is
have the advantage of easier to charity fundraising initiatives and
based on philanthropy and aligns
events offering
with the corporate brand. This
a fun and
p r o m o t e s t h e c u s t o m e r ’s
rewarding part
experience of your brand and ties
of their client
in with their values but it is only
experience.
effective if employees drive it.
In simple terms
We n j u a n b r o u g h t i t a l l
if Corporate
together for ever yone in her
Responsibility
presentation, by quoting
is implemented
President John Kennedy who
effectively it
said, “A rising tide lifts all boats.”
acts as a
This resonates more than ever
b u s i n e s s
today as global market growth
enabler that
a n d n e w te c h n o l o g i e s ke e p
can serve two
proving that we are all in this
main purposes:
together.
1.R i s k
Above: New Zealand artist Gabrie"e Pool paints a co"ection A v o i d a n c e
to be later auctioned at a fundraiser for Oasis Africa s t r a te g y - To
© 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 3

4. CEO EXECUTIVE SERIES! 27 APRIL 2012
Logistics Executive
www.logisticsexecutive.com
Australia
Sydney
Phone: +61 2 8262 9800
Melbourne
Oasis Africa Australia Phone: +61 3 9863 9488
www.oasisafrica.net is a not for profit
Asia
Australia Government registered and Shanghai
audited humanitarian organization Phone: +86 21 6427 6697
established in 2005 to support a small
Singapore
group of homeless orphaned children Phone: +65 6818 9745
found in East Africa’s largest slum,
Hong Kong
Kibera, located in Nairobi Kenya.
Phone +852 3125 7654
Kibera slum is home to over
India
1,000,000 people with 50,000 orphans and vulnerable children, has
Phone +91 22 4090 7053
little or no infrastructure, electricity, running water or sewerage facili-
ties, security is poor with no formal policing, government hospitals or Middle East
clinics, disease is rampant with prevalence of AIDS being more than United Arab Emirates - Dubai
double the already high average for Sub Saharan Africa. Oasis Africa Phone: +971 4 361 6275
was originally initiated to provide schooling access to 50 children and New Zealand
currently provides ongoing education (primary and secondary), educa- Wellington
tion, food and security to over 1000 young people based on the prem- Phone: +64 4 496 6730
ise that education offers a genuine road to freedom from poverty.
What are we doing about it? For a copy of the 2012
Logistics Executive’s involvement in this project is aligned to its corpo-
rate social responsibility mandate and since this time it has maintained Logistics Executive
sustainable en- Global Employment
gagement through Report email:
fundraising events darrylj@logisticsexecutive.com
involving many or
international sup- kimw@logisticsexecutive.com
ply chain and lo-
gistics partners
that share similar Darryl Judd
CSR values. The Chief Operating Officer
project continues Logistics Executive Group
to build a self-help With more than 20 years of
model where the executive experience in Aviation,
local community Supply Chain and Logistics
takes increasing Transport Industry, Darryl has held
responsibility for the end to end supply chain upon which the school executive positions within the
operates. airline & aircraft leasing/charter
industry and major logistics
Oasis Africa Australia’s low cost operating model is based on a plat- organizations.
form of skilled logistics and supply chain industry volunteers contrib-
He is regularly called upon to
uting time to run the organization efficiently and engage with industry manage key human resources
partners who engage in fundraising events and onsite project develop- consulting projects and supporting
ment and initiation activity in Kibera. Well-planned, high activity and business to drive changes,
output supporter trips are made to Kenya annually in coordination particularly around M&A activity
with resource requirement and deployment plans generated by the lo- and international executive
cal community. management.
© 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 4