CSR and Corporate Philanthropy

CSR and Corporate Philanthropy

1. An overview of Corporate Social
Responsibility (CSR)
Alexis Lindsay
Director, The Centre for Corporate Public Affairs

2. 2
Agenda
Defining CSR
The development of CSR in Australia
Current developments and trends
The business drivers
Examples
Internal infrastructure
References

3. 3
Defining CSR
Many ‘labels’: corporate social responsibility, corporate
community involvement, sustainability, corporate
citizenship, cause related marketing, triple bottom line,
socially responsible investment
“Sustainable companies have three kinds of responsibility:
economic, environmental and social. Corporate social
responsibility is an integral part. It is about integrating the
issues of the workplace, human rights, the community and
the marketplace into core business strategies” - CSR
Europe
… the translation of social responsibilities into business
practice.

4. 4
Development of CSR
First phase:
Discretionary sponsorships, cheque-book
philanthropy
Second phase:
Strategic approach, part of the business case
Third wave:
Community involvement; more complex business
model; competitive context

5. 5
Why does business engage in CSR?
Enhance reputation
Improved community relationships
Stronger stakeholder relationships
Positive impact on employee morale
Important symbol of leadership, company ethos

6. 6
Edelman 2003: Sector Trust
42%
44%
47%
38%
55%
59%
36%
36%
38%
40%
42%
43%
45%
48%
51%
65%
66%
66%
30%
42%
54%
54%
51%
58%
0% 20% 40% 60% 80% 100%
Telecomm
Energy
Professional services
Healthcare
Retail financial services
Investment & insurance services
Pharma & drug
Airlines
Automotive
Technology
Consumer packaged goods
Consumer durables
US
Europe

7. 7
Edelman brand evaluator 2003: Europe
12%
14%
16%
21%
22%
25%
27%
28%
30%
32%
34%
34%
36%
37%
38%
42%
47%
49%
51%
62%
62%
34%
0% 20% 40% 60% 80% 100%
Monsanto*
Citicorp*
Dow Chemical*
Pfizer*
McDonalds
HSBC*
Merck*
ExxonMobil
Deutsche Bank
Royal Dutch/Shell
Nike
Johnson & Johnson
Unilever
BASF
Coca-Cola
Ford Motor Company
Bayer
Microsoft
Oxfam
Greenpeace
World Wildlife Fund
Amnesty International

8. 8
Edelman brand evaluator 2003: US
13%
16%
25%
29%
30%
35%
36%
36%
37%
40%
41%
45%
47%
47%
49%
52%
54%
55%
56%
59%
66%
69%
0% 20% 40% 60% 80% 100%
HSBC*
Oxfam*
Unilever*
Royal Dutch/Shell
Deutsche Bank
ExxonMobil
Monsanto
BASF
Citicorp
Dow Chemical
Greenpeace
Amnesty
Nike
Merck
World Wildlife Fund
Pfizer
Bayer
McDonalds
Ford Motor
Microsoft
Coca-Cola
Johnson & Johnson

9. 9
Current developments and trends
Some best practice insights
Located in business objectives
Fits corporate competencies, characteristics and
infrastructure
Leadership and senior management commitment
Grounded in stakeholder relations
Engagement of staff
CSR/sustainability framework
Flexibility in community involvement vehicles
Continuous reporting of initiatives

10. 10
Examples
The Rio Tinto Aboriginal Foundation
The Smith Family
Westpac
Toyota
DuPont

11. 11
Internal infrastructure
Leadership
Strategy
Vision and values
Governance
Structure
Accountability
Resources
Communication
Internal/external stakeholders
Leverage required
Engagement
Outcomes
Evaluation
Research
Continuous improvement

12. 12
References
The Centre for Corporate Public Affairs;
http://www.accpa.com.au/csrnews
Business in the Community; http://www.bitc.org.uk/
Business for Social Responsibility; http://www.csrwire
.com/bsr/
Centre for Corporate Citizenship at Boston College;
http://www.bc.edu/centers/ccc/index.html