Corporate Social Responsibility
Management
Mr.Somwang Witayapanyanond
23 April,2013
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Why CSR?
• Moral Obligation
Human duty
• Sustainability
For a long life business
• License to operate
Acceptance from all stakeholder
• Reputation
Brand name, awards, create share values
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CSR view points
• C: Corporate
Company (small , medium , large ), Big City, Non profit
Organization (for social objectives)
• S : Social
People in all stakeholder. Near (customer , employee ,
community , ecology areas), Far ( competitors ,population ,
world)
• R : Responsibility
Ethics (no exploit, fairly), environment, safety, health, quality of
life, economics, ecology, natural resources.
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Scope of CSR
• Total supply chain
• From raw material to goods until end of
product life cycle
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CSR definition
Organization operation, response to internal and
external , with balancing among economics ,
social and environment as competitiveness and
sustain development.
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CSR property
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License to operate
Long term action
Reputation
Crisis prevention from economic, creative,
conflict, disaster
• Share holder VS social (conflicts of interests)
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CSR input
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Money & materials
Machine & Manpower
Knowledge
Mental
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CSR check points
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Customer Loyalty
Sale increase
Continuous production
Proud and Cohesive Employee
Reputation
Government relation
Return of good license action
Never been attacking
Better social climate
NGO friendly
Barrier decrease
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CSR Driving
Public service
(health,environment,
education,safety,life)
Politic
CSR
Econo
mic
Social
Company
New
Technology
Globalization
Competitor
Oversea Coming
Other benefit
balancing & sharing
Business
survive
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CSR Management process
Planning
Evaluation
CSR
Management
Check
Think
Organization
Who
Leading
Do
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CSR people
Government
Local
authority
Company
Community
Non profit
Organization
Family
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Social responsibility
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Network
Other corporate
Human right
Tax pay
Anti- corruption
Social ethics
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Social problems and Issues
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Global warming (CO2)
Alternative energy (Food areas VS Energy area)
Environment (Forestry VS Disaster)
High age > 60 years >10% (high take care)
Labour welfare
Corruption (high price products)
Poverty
Life science (health)
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Classification of CSR
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Process
Level
Resources
Activity
Development
Form
Work unit
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CSR : process classification
• CSR-after-process
Social activity after work time
• CSR-in-process
Added CSR in supply chain in work time ,environment
,transparency ,etc
• CSR-as-process
None profit organization, government office
• CSR-as-enterprise
Social enterprise, take opportunity from injustices in social and want to
change.
• CSR-as-Business
Take the social problems to business, instrument for clean air, non
toxic food , recycle from waste.
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CSR : Level classification
• Economic Responsibility
• Legal Responsibility
• Ethical Responsibility
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Ethical
Legal
Economic
• Philanthropic Responsibility
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CSR : Resources classification
• Corporate-driven CSR
Use profit from corporate and share to help social suffering
• Social-driven CSR
Use profit from social when buy product and service,
and declare the money per unit to help social suffering
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CSR : Activity classification
• Cause promotion
Non money(knowledge, work force , equipment) and money to help social
problems
• Cause-related marketing
Donate from the goods or service by % of sale in time interval through non profit
organization
• Corporate social marketing
Social behavior change to good health , safety, environment
• Corporate philanthropy
Give money as reactive by social request. Not to align the company vision.
• Community Volunteering
As employee interest and company support for community project
• Socially responsible Business practice
Business social responsibility every process and help social to built-up
quality of life
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CSR : Development classification
• Generation
1st Donate Activity for reputation and acceptance 2nd adapt
business for social in process as strategic 3rd CSR built-up in
country level and government
• Version
V 1.0 community relation org. Channel of donation , company
image v 2.0 global common, innovative partnerships, stakeholder
involvement
• Stage
S1 : profit return to social S2 : Setting organization structure
support CSR S3 : Strategic CSR internal & external S4 : Integrated
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and network
CSR : Form classification
• Responsive CSR
Good corporate citizen, negative impacts reduction from
business, reactive treatment , as standards and legal, value
image
• Strategic CSR
Proactive , linkage to social need, differentiation, support
competitiveness in long term, base on break even.
• Creative CSR
Art of CSR, Social Cohesiveness , common value as social,
collaborative
Responsive
Strategic
Creative
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CSR : Work units classification
• Private CSR
Create share value in long term
• Public CSR
Government, Industrial council, public policy,
CSR standards, activity much more level than
private.
• People CSR
NGOs, foundations, community group, create
social values in life and environment
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Community responsibility
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Support
Labour
Environment Impacts
Openness
Local culture
Life together with peace
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Environment
• Nature
– Forestry
– River
– Air
– Ecology
– Land
• Human Made
– Culture
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CSR Guidelines
• Business compass for social
Good manage , justice , human right, customer care, social development, environment& quality
of life, social innovative ,CSR reporting
• Social responsibility standardization
Good governance , human right, labour, environment , fairness, customer,
community involvement and development
• ISO 26000
Accountability , transparency , Ethical, stakeholder interest, Law, international
norm, human right
• OECD : Guideline for multinational enterprises
Employment & relation, environment, combating bribery, customer interest,
science & technology, competition, taxation
• UN Global compact
Human right (support, inspect) , labour (freedom, non force, no child employ)
, environment (support, up-quality, develop envi-friendly) , anti-corruption (all
types)
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Social responsibility Integration
Good Governance
Corporate Social
Responsibility
Business Ethics
Social Enterprise
Sustainable
Development
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Key of success of Social Enterprise
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Innovative (find some new for success)
Tenacity (challenge)
Passionate (strong belief)
Expertise (deeply in problems)
Infectiousness (idea spreader)
Focused (change in target)
Resourcefulness (skill in all resource collection)
Goal oriented (measurable results )
Leader (can inspire others)
Ecstasy (quality of life upgrade for others)
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Sustainable Development
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Money possibility
Environment friendly in all stages of work
Minimize negative impacts to community
Prevent and support to forestry, areas , local resources
Develop areas in low impact area
Maximize the transportation utilization for social
Minimize waste , reused promote
Energy conservation
Water efficiency
Support poverty can receive benefit
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The Tripple Bottom Line
Environment
Help
Balance
Sustain
Social
Equal Economic
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Competitive advantage Factors
Quality
Efficiency
Differentiate
Speed , reliability , service
, design , features ,
technology , personality ,
relationship
Competitive
advantage
- Low cost
- Differentiate
Customer
response
Innovation
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Main Organization Capability for
competitive advantage
Competitive
Strategic
Competitive
advantage
Main Capability
Organization
Capability
Performances
Resources
-tangible
-intangible
Sustainability
Competitive
Value chain
analysis
-value
-rare
-cost to imitate
-non-substitutable
-organization
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CSR Strategic Leadership Functions
Vision
Alignment
Evaluating :
Collaboration
To win the goal
Plan : Goal
Imagine & Inspire
CSR
Leader
Social
Architecture
Organizing :
Design for CSR
Trust
Leading : Belief
and buy-in
in structure & culture
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CSR Strategic Approach
• Obstructionist Approach ….Low Level
no responsibility , illegal
• Defensive Approach
minimum legal and ethics
• Accommodative Approach
As balance stakeholder, do as request
• Proactive Approach ….High Level
Learning, finding for all stakeholder needs and
supports
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Strategic Management Process
Quantity & Quality
External Factors
analysis
Vision and
Mission
Long Term
Objectives
Internal Factors
analysis
Measure &
Evaluation
Strategic
Setting
Strategic
Implement
Behaviors
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CSR Strategic Target
• Innovative Target
The new, technology improve
• Excellence Target
The good, the best, complete , perfect
• Altruism Target
The helpful, quality of life, happiness, safety
• Heroism Target
The effective of power, wining, number one
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CSR Initiatives
Cause
Promotion
CauseRelated
Marketing
Corporate
Philanthropy
CSR
Initiatives
Corporate
Social
Marketing
Community
Volunteering
Socially
Responsible
Business
Practice
Cause promotion Initiative
Non money(knowledge, work force , equipment) and money to help
social problems
• Social problems issues
Poverty, health, forest fire smoke, global warming, natural disaster
• Support needs
Support at cause of social problems with care, persuasive : data collection,
time, money and non-money donation, participation
• Key of success
Related to customer and community, employee engage, local as owner,
identify, continuous improvement
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Cause-related marketing Initiative
Donate from the goods or service by % of sale in time interval through non
profit organization
• Social problems issues
No house people, special disease case, children education , disaster
• Support needs
Specific money amount, %of sale, % profit, as time frame
• Key of success
Issue selection many stakeholder concerns, select goods corresponding to social,
research the idea and adapt for more attractive, less document concerns,
transparency, clear objectives and condition with non-profit organization
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Corporate social marketing Initiative
Social behavior change to good health , safety, environment ,or quality of life
• Social problems issues
Non smoke, energy conservation, zero waste, AIDS - diabetes - cancer protection,
accidents, fire fighting, non toxic food/agriculture, pollution solving, forest rehabitation ,
• Support needs
Employee and sub-contractors, community
• Key of success
Issue selection many stakeholder concerns, employee volunteer, need consults to
advice, long term activity, finding the key of behavior change, try to link with
business or work
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Corporate philanthropy Initiative
Corporate Give money as reactive by social request. Not to align the company
vision.
• Social problems issues
Social activities
• Support needs
Cash donation, grants, scholarships, health checks, mental consults, channel of
distribution for OTOP, machine support,
• Key of success
Issue consideration, no in the same point of government support, measure the
effective and stakeholder satisfaction,
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Good Supporting Principle
• Philanthropy
Give without return : objects (money , material) , mental
(cheerful , caring) , wisdom (knowledge)
• Communication
Good conversation, say facts
• Usefulness
Make it better, in nature and quality of life.
• Connecting
Formal and Informal, face to face, continuity
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Community Volunteering Initiative
As employee interest and company support for community project
• Social problems issues
As community and employee interesting
• Support needs
Employee and contractors volunteer, time compensation, community needs,
• Key of success
As for sustainable, linkage to company vision, volunteer, limited to expense
budgeting, communication,
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Socially responsible Business practice Initiative
Business social responsibility every process and help social to built-up quality
of life
• Social problems issues
Safety, environment, energy, hazardous, toxic vegetable, Fatty, fit and firm, family
care, disable, quality of life
• Support needs
Consultants, local authorize, government officers concerns,
• Key of success
Openness, do as talk,
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Basic of Organization Architecture
• The Operating Core
Basic work for goods and service
• The Strategic Apex
Top management for overview and integration
• The Middle Line
Middle management to link bottom line and top
• The Technostructure
Analytic for standards
• The Support Staff
Support teams for problem solving and improvement
• The Ideology
Ideas of belief and culture for organization
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Integration Mechanism
• Direct Contract
All specialists meeting for problem solving or new product development
• Liaison Roles
Co-operation, informal relation to stakeholder concerns
• Task Forces
Specific meeting group,
• Cross-Functional Team
Difference units, integration
• Integrating Roles and Departments
Synergy team
• Matrix Structures
Use matrix for setting team
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Organization Culture as Onion
• Artifacts ... Outer shield
All signal and symbol, company rules, organization structure,
uniform
• Patterns of Behavior
Speech, documents, rite, participation
• Values and Beliefs
Guideline for do and don’t, express behaviors
• Basic Assumptions … inner core
Environment related, truth, time, space, human nature,
human relation, main concept in business
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