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OAS Presentation – 11-Apr-02




         What is CSR and Why Does It Matter?

            OAS Working Group on Probity and Ethics
            Special Session: Corporate Social Responsibility (CSR)
            April 11, 2002
            Washington, DC




                                                               Presented by:
                                                               Wayne Dunn
                                                               www.waynedunn.com
                                                               info@waynedunn.com




                                       A History of Creating Innovative Partnerships

Page 1
OAS Presentation – 11-Apr-02




Presentation Objective and Outline

        Provide an overview of CSR and some of its
         drivers
        Discuss how it can help to develop common
         ground between the interests of national
         governments, private sector, bi-lateral and
         multi-lateral development agencies and
         NGOs/Civil Society
        Discuss some steps government can take to
         encourage CSR
                                   A History of Creating Innovative Partnerships

Page 2
OAS Presentation – 11-Apr-02




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)



                             Financial            Social                Environmental
                           Responsibility      Responsibility           Responsibility
                 WBCSD
                 Diagram
                                                       A History of Creating Innovative Partnerships

Page 3
OAS Presentation – 11-Apr-02




What is CSR

        Business and local people/communities finding
         and developing mutually beneficial activities,
         e.g.,
         –   Poverty Alleviation
         –   Community Health
         –   Rural Development
         –   Local Capacity Development
         –   Infrastructure Support


                                          A History of Creating Innovative Partnerships

Page 4
OAS Presentation – 11-Apr-02




Why does business care?
 Social Performance is key to Financial 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, (former) 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

 “socialresponsibility is a matter of hard-headed business logic”
 John Browne, CEO BP-Amoco

                                           A History of Creating Innovative Partnerships

Page 5
OAS Presentation – 11-Apr-02




Public Opinion

 Environics Millennium poll (25,000 average
  citizens in 23 countries on 6 continents)
 Over 66% think companies should contribute to
  broader societal goals
 Over 20% of consumers have either rewarded
  or punished companies for their social
  performance in the past year


                            A History of Creating Innovative Partnerships

Page 6
OAS Presentation – 11-Apr-02




So Why Should Governments Care

         CSR can bring about alignment amongst key
          constituents
     Constituency              Value/Benefit Created by CSR
     National Governments Poverty alleviation, community health, rural development,
                               improved public acceptability of FDI, budget leverage

     Private Sector            Reduced project risk, improved access to new business and
     Companies                 investment opportunities, improved public acceptability,
                               finance (costs and access)

     Bi-lateral & Multi-       Poverty alleviation, community health, rural development,
     Lateral Development       improved leverage/impact of ODA investments
     Agencies
     NGOs, Civil Society       Poverty alleviation, community health, rural development,
                               openness to FDI
                                                      A History of Creating Innovative Partnerships

Page 11
OAS Presentation – 11-Apr-02




Some Things Governments Can Do
         Help identify ‘common-interest’ and collaboration
          opportunities between business and development
          interests
         Encourage dialogue between business and
          development interests;
         Provide businesses with a ‘development scan’ that
          identifies development programs, priorities and actors
          in areas where business is operating
         Encourage ‘development’ focused government
          departments to explore synergies with business
         Educate stakeholders on CSR

                                          A History of Creating Innovative Partnerships

Page 12
OAS Presentation – 11-Apr-02




WDA SD/CSR Framework©


                                                   Constructive
               Measuring &
                                                    interaction
               monitoring


                                    Projects &
                                    Operations




                           Organizational ethos

                    A History of Creating Innovative Partnerships

Page 13
OAS Presentation – 11-Apr-02




Summary

         CSR is increasingly important – being driven
          by a host of global factors
         It can help further objectives of National
          Governments, Business, Development
          Agencies and Civil Society
         National governments can take steps to
          encourage effective CSR


                                    A History of Creating Innovative Partnerships

Page 14
OAS Presentation – 11-Apr-02




Discussion




             A History of Creating Innovative Partnerships

Page 15

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What is CSR and Why Does it Matter: Keynote Presentation to Organization of American States Working Group on Probity and Ethics in Washington, DC by Wayne Dunn

  • 1. OAS Presentation – 11-Apr-02 What is CSR and Why Does It Matter? OAS Working Group on Probity and Ethics Special Session: Corporate Social Responsibility (CSR) April 11, 2002 Washington, DC Presented by: Wayne Dunn www.waynedunn.com info@waynedunn.com A History of Creating Innovative Partnerships Page 1
  • 2. OAS Presentation – 11-Apr-02 Presentation Objective and Outline  Provide an overview of CSR and some of its drivers  Discuss how it can help to develop common ground between the interests of national governments, private sector, bi-lateral and multi-lateral development agencies and NGOs/Civil Society  Discuss some steps government can take to encourage CSR A History of Creating Innovative Partnerships Page 2
  • 3. OAS Presentation – 11-Apr-02 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) Financial Social Environmental Responsibility Responsibility Responsibility WBCSD Diagram A History of Creating Innovative Partnerships Page 3
  • 4. OAS Presentation – 11-Apr-02 What is CSR  Business and local people/communities finding and developing mutually beneficial activities, e.g., – Poverty Alleviation – Community Health – Rural Development – Local Capacity Development – Infrastructure Support A History of Creating Innovative Partnerships Page 4
  • 5. OAS Presentation – 11-Apr-02 Why does business care? Social Performance is key to Financial 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, (former) 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 “socialresponsibility is a matter of hard-headed business logic” John Browne, CEO BP-Amoco A History of Creating Innovative Partnerships Page 5
  • 6. OAS Presentation – 11-Apr-02 Public Opinion Environics Millennium poll (25,000 average citizens in 23 countries on 6 continents) Over 66% think companies should contribute to broader societal goals Over 20% of consumers have either rewarded or punished companies for their social performance in the past year A History of Creating Innovative Partnerships Page 6
  • 7. OAS Presentation – 11-Apr-02 So Why Should Governments Care  CSR can bring about alignment amongst key constituents Constituency Value/Benefit Created by CSR National Governments Poverty alleviation, community health, rural development, improved public acceptability of FDI, budget leverage Private Sector Reduced project risk, improved access to new business and Companies investment opportunities, improved public acceptability, finance (costs and access) Bi-lateral & Multi- Poverty alleviation, community health, rural development, Lateral Development improved leverage/impact of ODA investments Agencies NGOs, Civil Society Poverty alleviation, community health, rural development, openness to FDI A History of Creating Innovative Partnerships Page 11
  • 8. OAS Presentation – 11-Apr-02 Some Things Governments Can Do  Help identify ‘common-interest’ and collaboration opportunities between business and development interests  Encourage dialogue between business and development interests;  Provide businesses with a ‘development scan’ that identifies development programs, priorities and actors in areas where business is operating  Encourage ‘development’ focused government departments to explore synergies with business  Educate stakeholders on CSR A History of Creating Innovative Partnerships Page 12
  • 9. OAS Presentation – 11-Apr-02 WDA SD/CSR Framework© Constructive Measuring & interaction monitoring Projects & Operations Organizational ethos A History of Creating Innovative Partnerships Page 13
  • 10. OAS Presentation – 11-Apr-02 Summary  CSR is increasingly important – being driven by a host of global factors  It can help further objectives of National Governments, Business, Development Agencies and Civil Society  National governments can take steps to encourage effective CSR A History of Creating Innovative Partnerships Page 14
  • 11. OAS Presentation – 11-Apr-02 Discussion A History of Creating Innovative Partnerships Page 15