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Corporate Social Responsibility! Success through responsibility Prof. Dr. B. Hekman Prof. Dr. U. Schaumann Prof. Dr. J. v. Kiedrowski

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Corporate Social Responsibility!Success through responsibility

Prof. Dr. B. Hekman Prof. Dr. U. Schaumann Prof. Dr. J. v. Kiedrowski

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 2

1.3 Fields of action within CSR

1.1 Kundenbindung, Image und CSR

1.2 What is Corporate Social Responsibility?

2.1 The four phases of CSR implementation

1.4 Strategic Corporate Social Responsibility

2.2 Communicating CSR

Outline

1.1 Information related to the CSR Project

1 Corporate Social Responsibility in SMEs

2 Introduction of CSR at the own enterprise - SME

3 Further procedure

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 3

Concerning the course of the projectCorporate Social Responsibility for SMEs

Workshop Part 1Presentation event

29.06 - 30.06 Introduction to the topic CSR Preparing the own CSR project

Workshop Part 2Working phase at theenterprise

01.07 - 30.08 Planning and implementing the own CSR project

Workshop Part 3Presentation event

31.08 - 01.09 Feedback and contemplation of the own CSR project

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 4

Training objectives – Workshop (WS) Part 1

Workshop Part 1 What is Corporate Social Responsibility? What fields of activity are there in CSR? What is understood by the strategic CSR? How can I introduce strategic CSR at the enterprise?

Workshop Part 2 How should I implement the strategic CSR at the own enterprise?

Workshop Part 3 What experience have I gathered by the introduction of CSR? What experiences have the remaining WS participants made? What must I consider by my future CSR activities?

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 5

What is CSR? Several case studies

CSR by Budnikowsky GmbH & Co.KGhttp://www.unternehmen-fuer-die-region.de/materialien/filme/budnikowsky-gmbh-cokg.html

Corporate Social Responsibility (CSR) is often translated in Germany as „Responsible Company Management“ or „Social Responsibility of Companies“.

Under CSR the social, ecological and economic responsibility of enterprises in all the areas of business activities is understood – from the actual creation of value to the exchange relationships with:

– employees, – suppliers, – customers and the – community.

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 6

Fields of activity of CSR

CSR/Responsible Company Management is manageable through consideration and formation of four different fields of activity

The starting points, topics and entry opportunities are different for each enterprise, there is no single path

Product quality Product information Consumer protection Excluded customer

segments Suppliers & Purchasing Fair dealing with business partners ...

Climate protection Resource consumption Renewable energies Environmental burden at the site Environmental consciousness of employees Environmental management …

Compatibility of family & profession

Further training & qualification Equal opportunities & diversity Working safety Employee participation …

Company donations Sponsoring Award of contract to social organizations Foundations Voluntary engagement of employees …

Market Environment Workplace Community

Economy Ecology Sociology

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 7

Why CSR? – Strategic goals and demands of the stakeholders

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 8

Why CSR – Economic benefit of the CSR engagement (self-evaluation of surveyed companies)

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 9

Training task 1

What experiences have you gained thereby?

What special (!) social responsibility have you already practiced as a company in one or several CSR fields of activity?

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 10

Training task 1: Orientation table for the identification of own CSR activities

Market Environment Workplace Community

What have we done in CSR already?

Where are our companystrengths in relation toCSR activities actually?

Why are we doing this?

What other CSR activitiescould we do?

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 11

Strategic aspects of CSRdifferent forms

Key question: How should a company behave specifically to give effective and efficient utterance to its social responsibility?

Answer according to the economic analysis: In order not to have to evaluate the effectiveness and efficiency of every imaginable CSR mode of behaviour again and again it is significantly more reasonable „to look up“ if the possible CSR behaviour of the enterprise

a) may be integrated in the existing business model andb) may be expressed rather as reactive or rather as proactive CSR behaviour.

Proceeding from these considerations one can prepare a Four Field Matrix for the systematization of different arts of CSR.

Thereby every CSR activity can be principally planned and also checked for ist economic benefit!

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 12

Focus: Strategic aspects of CSR Four Field Matrix

altruisticCSR

strategic in the broader sense

not strategicpr

oact

ive

Beh

avio

ur o

f the

com

pany

reac

tive

Integration in the business modellow high

strategic CSR in the

proper sense

reactive/tactical CSR

ethicCSR

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 13

Strategic aspects of CSRnot strategic CSR approaches

ethic CSR: indicates the social responsibility of the company in respect to so called

stakeholders who it can potentially damage through its entrepreneurial activity (physically, mentally, economically, spiritually and emotionally).

– ethic CSR is regarded as an obligation or as a social standard for the enterprise also if the profitability of enterprises is limited

– actions are justified by the social contract which the enterprise as an institution has implicitly concluded with society

– in practice the ethic CSR is hardly or not firmly integrated in the business model of the enterprise

altruistic CSR: indicates activities which the enterprise performs beyond social norms

as „Good Corporate Citizen“.– activities which are not required per se by society corresponding to an ethic

norm– in practice this approach is hardly or not firmly integrated in the business

model of the enterprise

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 14

Strategic aspects of CSR strategic CSR approaches

reactive tactical CSR: available when specific CSR activities with the direct relation to the

value chain and to the competitive environment are implemented only after misconduct or under pressure from stakeholders

proactive strategic CSR: integral component of differentiation strategies at the level of business

area or enterprise is not evaluated as a cost position but a long-term investment thesis: enterprises which get involved socially are rewarded by the

market through increased demand beside benefits for the society there is also the chance for the increase

of effectiveness and efficiency through the incentive of profit for the enterprise it can lead to additional

prosperity of society Sustainability marketing

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 15

Strategic aspects of CSRInterim conclusion

an unimaginable variety of possible activities in order to give utterance to social responsibility

choosing and performing CSR activities often fall in the area of

responsibility of enterprise communications

CSR activities are only rarely linked to business processes by the organizational distance to the actual services related thereto

it contradicts to the requirement for integration of social, ecological and economic target dimensions of strategic CSR

in order to achieve strategic CSR choosing CSR activities on the basis of the own value chain

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 16

Training task 2

Can the CSR activities named by you be located in a value chain?

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 17

Training task 2 Value chain

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 18

1.3 Fields of action within CSR

1.1 Kundenbindung, Image und CSR

1.2 What is Corporate Social Responsibility?

2.1 The four phases of CSR implementation

1.4 Strategic Corporate Social Responsibility

2.2 Communicating CSR

Outline

1.1 Information related to the CSR project

1 Corporate Social Responsibility in SMEs

2 Introduction of CSR at the own enterprise - SME

3 Further procedure

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 19

Introduction of CSR at the own enterprise

– Where are we standing today, what are we doing already?

– What do our competitors do?– What does strategic CSR mean to us?– What is our main business, what are our strong

points?– What can we distinguish ourselves with?– Where is the connection to own company

activities?– What are legitimate interests of external players?– What could interest our stakeholders?– ...

– What employees should be involved?– Who bears responsibility and what is it?– How are other employees informed and involved?– What are the definite goals which we want to

achieve measurably?– In what time period do we want to achieve them?– ...

1. to orientate oneself, to understand CSR, to develop engagagement

determination of CSR location definition of strategic CSR deduction of CSR objectives and measures

internally and externally

2. Implementing CSR activities forming working team concretizing CSR measures

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 20

– How does the corporate management signalize that it is a crucial topic for them?

– Was a CSR model, value explanations or a code of conduct developed?

– How are own actions communicated internally and externally?

– ...

– How are own objectives checked?– Are customer (stakeholder) surveys

performed?– Is there press feedback?– How does the optimization of objectives take

place?– How can we learn from other enterprises in

networks?– ...

3. anchoring CSR personally and structurally

corporate management is represented involving and informing employees

4. checking CSR activities performing success checks striving for improvements

Introduction of CSR at the own enterprise

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 21

Training task 3

Now plan your own CSR project with the help of CSR introductory questions!

Concentrate first of all on one of the four fields of activity and please locate your activities along the value chain!

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 22

1.3 Fields of actions within CSR

1.1 Kundenbindung, Image und CSR

1.2 What is Corporate Social Responsibility?

2.1 The four phases of CSR implementation

1.4 Strategic Corporate Social Responsibility

2.2 Communicating CSR

Outline

1.1 Information related to the CSR project

1 Corporate Social Responsibility in SMEs

2 Introduction of CSR at the own enterprise - SME

3 Further procedure

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 23

CSR and the own enterprise communication

Beside concentration on sales and customer relations the publicity effect of the enterprise and the relation to the stakeholders may not be neglected.

Therefore public relations within the communication policy play a special role.

CSR-oriented public relations include the active formation of communications relations between the enterprise and the social environment with the purpose of improvement of the company image.

The underlying PR leitmotif is as follows: „Speak about what you do!“ Critical for the success is however the evidence of responsibility

undertaken by the CSR through long-term reliable action.

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 24

CSR and the own enterprise communication

What do you want to achieve in the external impact?(Formulate a measurable objective)

What CSR activities would you like to be described with?(See fields of actions/value chain)

Who is your CSR message oriented at?(target groups, competition, suppliers, policy, community etc.)

Who should communicate your CSR activities?(Media: newspaper, radio, persons: union, associations etc.)

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 25

Training task 4

Please answer the previously discussed questions related to CSR communication!

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 26

1.3 Fields of action within CSR

1.1 Kundenbindung, Image und CSR

1.2 What is Corporate Social Responsibility?

2.1 The four phases of CSR implementation

1.4 Strategic Corporate Social Responsibility

2.2 Communicating CSR

Outline

1.1 Information related to the CSR project

1 Corporate Social Responsibility in SMEs

2 Introduction of CSR at the own entperise - SME

3 Further procedure

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 27

Training task 5: Further procedure in the own CSR project

Company representatives:By August 31:

Implementation of the own CSR project at the enterprise

Documentation of the own CSR project ( Work manual)

Presentation of the CSR project at the next workshop meeting

Support by the Hamburg University of Corporate Education

Consulting within the framework of the project supervision

Students:By August 31: Implementation of the own CSR project

at the enterprise Preparing practical reflections Documentation of the own CSR project

( Work manual) Presentation of the CSR project at the

next workshop meetingSupport by the Hamburg University

of Corporate Education Consulting within the framework of PR

Prof. Dr. Björn Hekman, Prof. Dr. Joachim von Kiedrowski, Prof. Dr. Uwe Schaumann 28

Further procedure in the project

Thank you very much!