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Summary CSR - MBA international relations

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KU Leuven - Commercial Sciences - MBA International relations Full summary of lesson notes. School year . Elective

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November 27, 2017
Number of pages
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Sustainability
Sustainable development
Sustainable development meets the needs of the present without compromising the ability of future
generations to meet their own needs

Corporate social responsibility
The responsibility of organizations for their impacts on society
 People = Equity = Social issues
working conditions, health & safety, education, social justice
 Profit/prosperity = Economy = Economic issues
Growth, jobs, products and services
 Planet = Environment = Environmental issues
Zero pollution and waste, renewable energy, restoration
= triple bottom line
= 3 legged stool

Sustainability: What?
What is CSR
The responsibility of an organization for the impacts of its decisions and activities on society and
environment, through transparent and ethical behaviour that:
- Contributes to sustainable development
- Takes the expectations of stakeholders into account
- Is in compliance with law and international norms
- Is integrated in the organization

It is a PROCESS to integrate social, environmental, ethical, human rights and consumer concerns
into business operations and their core strategy in collaboration with the stakeholders
- Identify, prevent and mitigate possible adverse impacts
- Maximize the creation of shared value for owners and stakeholders

CSR is for all types of organizations and is a useful management tool for:
- Innovation and growth
- Employee motivation
- Customer attraction
- Risk management
- Operational management

CSR is a process, not a final destination
- An integral vision on entrepreneurship where the company creates value in PPP fields
- Requires engagement from stakeholders
- Legal obligations towards society and environment
- Embedded in all business operations
- There is no one-size-fits all methodology
- It is voluntary
- It must be transparent
- It is long-term oriented
Shared value
= a win win situation
Create economic value in a way that also creates value for the society by addressing its needs and
challenges

The purpose of a corporation must be redefined as creating shared value, and not just profit. This will
drive the next wave of innovation and productivity growth in the global economy (Michael Porter)

,Sustainability: why?
 Cost saving
reducing waste by lower energy costs, lower level of absenteeism, more efficient operations

 Human resources management
the company is a more attractive employer and increases labour productivity

 Innovation capacity
they adapt more quickly to the changing environment

 Market demand
there is growing marketing demand for responsible companies and products

 License to operate
companies that engage in CSR are less vulnerable to campaigns and boycotts

 Risk management
enables enterprises to better anticipate. Drive the development of new markets and create
opportunities for growth

 Reputation
CSR is good for the image of the company, therefore it is a good idea to communicate
activities

Sustainability: history
 1972: CLUB OF ROME
explore how exponential growth interacts with finite resources
every 20 years there would be a new book about an update of the CSR definition

 1987: WCED: BRUNDTLAND REPORT
The World Commission of Environment and Development placed environmental issues on the
agenda

 1992: UNCED: AGENDA 21
UN Conference on Environment and Development had a voluntary action plan with regards to
sustainable development

 2000: Millenium Summit: MDGs
Millenium development goals (8 goals) by 2015 but did not reach it. All 189 UN members
states and 23 international organizations committed to help achieve the MDGs

 2015: Sustainable Development Goals: SDGs
Transform our world, 17 goals by 2030

CSR is not a new concept. A large proportion of organisation have done things that could be called
CSR even if they do not know it. Now there is a more growing attention to CSR by policy-makers,
consumers, trade unions and NGOs. These actors should give more recognition to what organizations
already do in this field. The challenge is to get more organisations to do more CSR

Sustainability: how?
 BELIEVE IN THE VALUE OF CSR
 IMPLEMENT CSR
 COMMUNICATE CSR

, ISO 26000
 Started in 2005
 Published in 2010
 400 experts from 84 countries
 40 international organisations

This was the first international standard which gave guidance on Social Responsibility

The goal: support organisations in introducing CSR through guidelines:
- Start and implement CSR
- Identify and involve stakeholders and determine the sphere of influence
- Increase credibility of CSR reports and claims

This tool helps organisations to move from good intentions to good actions and is for all
organisations

ISO 26000 has 7 core subjects and 37 issues. The core subjects are relevant to all organisations but
not all the issues.
 this offers a detailed explanation and suggestion for the 37 issues

7 core subjects
 Organizational governance
 Human rights
 Labour practices
 The environment
 Fair operating practices
 Consumer issues
 Community involvement and development


What is ISO 26000 not?
- It is not a requirement standard
- It is not for audits and certification
- It is not for use of reference in any contract as requirement
- It is not for assessment

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