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					Corporate Social Responsibility
         Meeting the challenge
          Making the change

     Presented by Marjorie Thompson

Communications in the New European Union
         Prague, 25 June 2004
Corporate social responsibility

  • Definition
  • Is it corporate responsibility or corporate social
Corporate social responsibility

  “To help managers improve their performance with consumers
    and investors”
  “Not just feel good — strategically and financially important”

  *Business in the Community 1998, a UK-based non-government organisation (NGO)
What’s new?

   • From infamous statement made by a leading
     international banker to a British Government
           „The business of business is business‟

   • To a multinational company adopting a radical
     movement slogan:
           „Together we can change the world‟
Corporate social responsibility

            There have always been
                    „Hard Heads‟
Corporate social responsibility

                   „Warm hearts‟
It can include...

    • Corporate community       •   Cause related marketing
      investment                •   Environmental impact
    • Community „engagement‟    •   Diversity
    • Ethical investment        •   Human rights
    • Sustainable development   •   Supplier audit

    • Workplace impact /       • Risk management
      marketplace impact       • Graduate recruitment
    • Stakeholders             • Volunteering
    • Supply chain             • Staff morale and
    • Corporate philanthropy     motivation
                               • … the list is never-ending!

 • Donating computers to a school
 • Building a playground
 • Developing a website for a charity
 • Enabling your employees to volunteer for a charity
 • Providing skills training for unemployed youths
 • Planting trees in a local community park
What’s new and different?

 • Power of the Internet
     – Contact between consumer and activist groups around the
 • Access to information
     – More material and reports available than ever before
What’s new and different?

 • Consumer and shareholder activism
     – Boycotts, annual general meeting challenges
 • Socially conscious consumers
     – Fairtrade coffee, chocolate and bananas
Who are the trendsetters?

 CRI index launched in
 Australia - 2004                www.bsr.org

How do you create a CSR programme?

     1. Audit existing activities
     - are you already doing anything?
How do you create a CSR programme?

     2. Managers need to be responsible for
         integrating the policy across the company
     - Embraced throughout the company
     - Internal: staff
     - External: customers, shareholders, suppliers,
How do you create a CSR programme?

     3. Measure impact on each of these areas
How do you create a CSR programme?

     4. Report your findings
     - Stock exchange, media, shareholders, employees,
         government, public, professional CSR body /
         trade association (if there is one)
How do you promote a CSR programme?

   • Communications play a vital role
   • Communicate CSR activities throughout whole
      – Internal audiences
      – External audiences
   • Be cautious of over promoting
      – Can do more harm than good
      – Often seen as self-serving and self-congratulatory

  • Incorporate CSR activities in
    company/organisation messaging:
     –   Key messages
     –   Releases
     –   Boilerplates
     –   Q&As
     –   Brief spokespeople
Why communicate with the media?

 • Encourage participation in your CSR
 • Get good PR for your company
 • Generate publicity for a cause that you support

   • Relationships with media built slowly
   • Yet reputations can be destroyed in an
   • Be honest and transparent
What the media say

           “Companies that don‟t keep a firm grip on
                    staff working conditions,
                 the activities of their suppliers,
             or the amount of pollution they cause,
            are more likely to be shut down by the
            authorities or boycotted by the public.”

                                             Louise Armistead
                                             Sunday Times (UK)
                                             14 March 2004
Potential obstacles – brand reputation

   • Damage to Nike, Coke and McDonald‟s due to US
     foreign policy
   • Marketing to children
   • Marketing alcohol, tobacco, nuclear power,
How do some companies do CSR?

             Procter & Gamble
   • Go, Give and Grow
   • Better Start
   • Golden Households
How do some companies do CSR?

               „Make a Connection‟
Potential CSR pitfalls


              „School equipment for kids‟
If you’re not convinced yet...

            The Financial Impetus
   •   Investors
   •   Ethically accountable funds
   •   Pension fund investors
   •   Association of British Insurers
   • In 2003 one in nine US dollars under professional
     management was part of a socially responsible
                   Total = $2,200 billion
Corporate social responsibility

                   Any Questions?


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