Corporate Social Responsibility Presentation by: Peter Lampesis, Jr. USAID, Macedonia

Corporate Social Responsibility
Presentation by:
Peter Lampesis, Jr.
USAID, Macedonia
Diagrams are copyright © 2005 by Openworld, Inc.)
Native American proverb
What is Corporate Social Responsibility?
Why CSR – the Starbucks example
CSR trends and impact on the 21st century
Finding balance
Native American Proverb
Proverbs are time-honored truths which
condense the collected wisdom and
experience of a people and their culture. To
know a people, is to know their proverbs.
Life is both giving and receiving.
The Soul Would Have no Rainbow if the Eyes had no Tears
So what is corporate social responsibility?
• Corporations have a responsibility to all of their stakeholders in all
aspects of their business operations.
• Businesses account for and measure the actual or potential
economic, social and environmental impacts of their decisions.
• CSR goes beyond simple philanthropy and is more about corporate
behavior than it is about a company's charitable donation budget.
• CSR is linked with the principles of Sustainable Development which
argue that enterprises should be obliged to make decisions based
not only on financial/economic factors (e.g. profits, ROI,
dividend payments etc.) but also on the social, environmental
and other consequences of their activities.
Why consider CSR?
• 1) It's important to give back to the community, people, and
environment from which we greatly benefit and profit.
• BECAUSE you, as a company can gain a competitive and
reputational advantage by demonstrating that you have the
best interests of society at large as an integral part of your
policy making.
• Orlizty, Schmidt, and Rynes found a correlation between
social/environmental performance and financial performance.
– Example - Starbucks
Snapshot of Starbucks
• BUSINESS ENVY - captures $4 to $5 for a cup of
coffee. Growth projections exceed 40,000 stores
• Starbucks formed a partnership with Conservation
International (CI) in 1998 to encourage
environmentally sound coffee-growing practices and to
improve farmer livelihoods. The success of their first
joint project in Chiapas, Mexico is serving as a model
for new and future projects.
Starbucks success and CSR
• Invest in people and partners, promote diversity and
– (learning from each other)
• Training, education and benefits = loyalty, commitment
and dedication
• Leadership program
• Integrate CSR – building brand loyalty
– Community involvement
– Reward volunteers
– Invest in local schools, education programs, etc.
• Environment – shrinking the environmental footprint
– Recycling pays
– Conservation and Organic (branding)
CSR trends and the the impact on the 21st
century business
• Consumers are more socially aware and vote with their
– 44% of British public believe it's very important that a co. shows a
high degree of social responsibility when they buy the co's product.
– 86% of consumers have a more pos image of a co. that is seen to be
doing something that makes the world a better place.
– Responsibilities to society, and env and labour practices are seen by
the public to be more important than a co's economic contribution.
• Corporations face severe punishment (criminal and/or
financial) for bad behaviour (Enron and Arthur Andersen,
Worldcom, Nike, Union Carbide (Bhopal)
– 58% of general public across Europe feel that industry and
commerce do not pay enough attention to their social and
environmental responsibilities.
A. D. Little Business Case for CSR
CSR trends and the the impact on the 21st century
• The best people are seeking out responsible organizations.
– 81% of young people have a strong belief in the power of responsible
business practice to improve profitability over time.
– Corp responsibility is increasingly the key factor in attracting and
retaining a talented and diverse work force.
• Employee volunteer and community involvement programs
create differentiation and improves retention.
Co's see an improvement in media coverage
Large % of volunteers achieve promotions
Absenteeism reduced
Greatly improved customer satisfaction
• Corporate responsibility is a key factor in helping companies
access capital.
– 86% of institutional investors x-cross Eur believe that social and env
risk management will have a pos impact on a co's long term market
A. D. Little Business Case for CSR
CSR trends and the the impact on the 21st century
• Corporate Responsibility opens opportunities to reduce
present and future costs to the business and improve
competitiveness, market position, and profitability.
– Energy efficiency produces large paybacks
– Greening the supply chain
– Clean production (reduce emissions, recycle and reuse
– Carbon credits
• CSR is not targeted for just the large companies
– Large corporations are requiring their preferred suppliers to
subscribe to CSR and best practices.
A. D. Little Business Case for CSR
Finding balance
• Spend some time learning more about CSR
• Determine what works best for your organization and culture
and initiate and integrate a CSR component into your
• Balance the desire for profits with the needs of the
community and the environment.
• Invest in people.
• Be a change agent.
• Lead by example and others will follow.
We will be known forever by the tracks we leave.
Consider your tracks wisely...
Choose to make a difference