Corporate Social Responsibility in Asia:
An Introduction to Sustainable Consumption
Richard Welford
CSR Asia
What CSR is not….
It is not about:
1.
2.
3.
4.
5.
Giving cheques
PR photo opportunities
Making employees
“volunteer”
Planting a few trees
Feeling good and being
a “caring company”
CSR is about… sustainable development
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
The environment and climate
Supply chains
Human rights, labour rights
Communities and impacts
Investment policies
Sustainable consumption
Corporate governance
Fair operating practices
Brand, reputation, trust
Management systems
ISO 26000: The rationale for
corporate social responsibility
1.
2.
3.
4.
5.
6.
Brand, reputation, trust
Attract and maintain employees,
customers, clients
Employee commitment, morale
productivity
Interest from investors and the
financial community
Relationships with companies,
government, the media,
suppliers, peers, customers,
communities
Contributions to sustainable
development
Sustainable Development
Development that meets the needs of the
present without compromising the ability
of future generations to meet their own
needs.
It contains within it two key concepts: the
concept of needs, in particular the essential
needs of the world's poor, to which
overriding priority should be given; and the
idea of limitations imposed by the state of
technology and social organization on the
environment's ability to meet present and
the future needs.
(Brundtland Commission, 1987)
The sustainable
development imperative:
Marks & Spencer has launched a 100-point business-wide
£200m eco-plan (Plan A)
By 2012 M&S will:
• become carbon neutral
• send no waste to landfill
• extend sustainable sourcing
• set new standards in ethical trading
• help customers and employees live a healthier lifestyle
Specific targets include:
• A 25% reduction in energy use
• A 25% reduction in packaging
• Reducing use of carrier bags by 33%
• Converting key clothing ranges to 100% Fairtrade cotton
• Introducing 1,500 Healthy Eating Assistants in stores
M&S will also help suppliers to change their behaviour
Climate change
The impact of climate change will disproportionately
affect those people who did not cause it…
What risk does it pose to business?
What are the implications for consumption?
Creating a vision for the future: CLP
“None of us can defeat the threat of
global warming on our own but
together we can cool the climate and
realise our Climate Vision 2050”
Reporting and disclosure:
Best practice from Unilever
Stakeholder responsiveness:
Best practice from Cathay Pacific
ISO 26000: Social Responsibility
Organizations around the world, as well as their stakeholders,
are becoming increasingly aware of the need for socially
responsible behaviour. The aim of social responsibility is to
contribute to sustainable development including health and
the welfare of society.
Seven principles of
social responsibility
Recognizing social
responsibility
Accountability
Seven core
subjects
Transparency
Human
rights
Stakeholder identification
and engagement
Organizational
governance
Labour
practices
The
environment
Fair
operating
practices
Consumer
issues
Community
involvement &
development
Ethical behaviour
Related actions and/or expectations
Respect for
stakeholder
interests
Integrating social
responsibility into
an organization
Relationship of the
organization’s
characteristics to social
responsibility
Understanding the
social responsibility of
the organization
Respect for the
rule of law
Respect for
international norms
of behaviour
Respect for human
rights
Selecting initiatives on
social responsibility
Reviewing and improving
social responsibility actions
and practices
Practices for
integrating social
responsibility
throughout the
organization
Communication on
social responsibility
Enhancing credibility
regarding social
responsibility
ISO 26000: Consumer issues
“Organizations that provide products or services to
consumers and customers have responsibilities to
those consumers and customers. These responsibilities
include providing education and accurate information,
using fair, transparent and helpful marketing and
contractual processes…”
“Organizations have significant opportunities to
contribute to sustainable consumption and
sustainable development through their products and
services they offer and the information they provide.”
Consumer issue 3:
Sustainable consumption
“Sustainable consumption is consumption of
products and resources at rates consistent
with sustainable development… Sustainable
consumption also encompasses a concern for
ethical behaviour regarding animal welfare.”
Organizations should:
• Offer consumers socially and environmentally
beneficial products and services
• Offer products and services that operate as
efficiently as possible
• Eliminate or minimize negative environmental
or health impacts
• Design products and packaging to be
environmentally sensitive
Exercise: Sustainable development and
sustainable consumption
Development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.
It contains within it two key concepts: the concept of needs, in particular the
essential needs of the world's poor, to which overriding priority should be
given; and the idea of limitations imposed by the state of technology and
social organization on the environment's ability to meet present and the future
needs.
Exercise:
How do we to make consumption consistent with sustainable development?
Challenges for the
consumer movement
• We have made huge advances in terms of sustainable
production but not on sustainable consumption
• What are sustainable products and services?
• Consumer information, awareness and education
• Communicating to consumers
• Influencing consumer choices
• Future emerging challenges:
– Supply chains and traceability
– Community impacts and products for the poor?
Thank you!
Richard Welford
rwelford@csr-asia.com