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Corporate Social Responsibility

Transcript: Corporate Social Responsibility Corporate Social Responsibility is operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has for that business. - Business for Social Responsibility Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm. - Harvard University Mini Case Studies Jamaica Jamaica is a surf, sun and sand destination. Many companies such as Hilton, Sandals, Beaches, Radisson own hotels and resorts in Jamaica Jamaica is known for its abundance of greenery and miles of fertile farmland. Crops such as potatoes, bananas, tomatoes, melons, corn, and sugarcane are grown, and because of Jamaica's climate, some of these crops are grown all year round. In the 1970's Jamaica experienced a time of turmoil. Having just been given independence from Great Britain, the country fell into debt due to the world oil crisis. Jamaica turns to the International Monetary Fund (IMF) for help. They suggest Jamaica to devalue their currency and make their dollar less expensive. Expand their exports Diminish their imports IMF gives Jamaica a loan with maximum interest payments Jamaica has no choice but to take loan The amount of foreign exchange that must be generated to meet interest payments and the structural adjustment policies which have been imposed with the loans have had a negative impact on the lives of the vast majority. The country is paying out increasingly more than it receives in total financial resources Overall, it is cheaper for citizens to buy imported goods. Local businesses are now put out of business. Hotels and resorts do not buy locally Jobs decrease Poverty increases staff training community development 5 disadvantages to adopting CSR policies What can be done to improve the Jamaican community? supporting local businesses Body quality product Corporate Social Responsibility Long-term partnership value added Victoria Russell, Nicole Nisbett, Keith 5 advantages to adopting CSR policies healthy working environment customer satisfaction 1. satisfied employees 2. satisfied customers 3. positive PR & more attractive destination/product 4. cost reductions 5. more business opportunities environmental protection

Corporate social responsibility

Transcript: 4.Employees build sustainability thinking into their everyday work 1.Innovations to improve the environmental profile of products CSR: a form of corporate self-regulation Role model effect in the industry 5 stretagies P&G's sustainability act is a good example of CSR Improving environmental profile of the entire supply chain Efficiency in handling energy, water, waste and emission -social responsibility and economic development -Live, Learn, Thrive *Children in need *Health, education and life skills -Children’s Safe Drinking Water *PUR *Saving thousands of lives -138,000 employees -raise awareness *newsletters, podcasts, events -training Long-term Vision Sustainability Corporate Social Responsinbility 2. Improve environmental profile of operations Ignore Social Sustainability Water Pollution Energy Depletion Wasting Fossil Fuel AGREE - good program those in need - enhancing quality of life customers - motivation to buy P&G products: needs and impact to others Shareholders - higher probability of gaining market share: higher profits Bert, Brittany, Eddie, Jake, Ning Powering their plants with 100% renewable energy Using 100% renewable or recycled material in all products and packaging Having zero consumer or manufacturing waste going to landfills Designing products that delight consumers while maximizing the conservation of resources Conclusion The Issue Bibliography: P&G Unsustainable Acts Certain parties affected - Example of good CSR - Sustainable business: maintain and improve market share - Setting themselves as the benchmark: resource & dedication The Need for sustainability White, Peter. "Building a sustainability strategy into the business." Corporate Governance. 9.4 (2009): 386-394. Web. 14 Nov. 2011. <http://search.proquest.com.proxy.lib.ohio-state.edu/docview/746069801?accountid=9783>. RealEyesVideo. Sustainability Explained Through Animation. 2010. Video. YouTubeWeb. 14 Nov 2011. <http://www.youtube.com/watch?v=B5NiTN0chj0>. Why P&G bother doing these programs? -140 plants, 40 countries -10% reduction by 2012 in: *CO2 emissions *energy/water consumption *disposed waste - Amiens, France *Wind turbine, solar panels Analysis 3.Improve lives through Social Sustainability Programs 5.Shape future to enable freedom to innovate in a responsible way -Aim for $20 billion in SIPs by 2012 -SIP must show 10% improvement in: *Energy/water use *Materials for packaging *Renewable resources -Tide Coldwater -Could save up to 3% of total domestic energy consumption Reducing environmental impact Delighting the customer -Promotes positive publicity Increase reputation Possible increase in profits -Work with stakeholders -Partnerships with foundations *UNICEF, Energy Saving Trust

Corporate Social Responsibility

Transcript: "When we talk about sustainable development we often talk about three pillars - economic, social, and environmental. And to find success, we have to find a balance to all three." - Doug Oberhelman, CEO Caterpillar Inc. Virtualizing/Cloud Computing IT Resources Brand Differentiation By virtualizing applications, DataCenter Capital expenses reduce on average $8,541 per application (not including reduction in operating expense or reduction in business lost due to downtime) Virtualizing reduces electricity & cooling needs to run a datacenter. It also helps eliminate square footage for expanding at-capacity datacenters. Adoption of cloud technologies is saving money and eliminating the overhead of in-house servers. 82% of all companies saved money on their last cloud adoption project. Penn Schoen Berland, in conjunction with Burson-Marsteller and Londor, conducted 1001 online interviews with the general public in the U.S. (ages 18+) from February 10-12, 2010. Overall, the margin of error is +/- 2.53% "What percentage of your salary would you be willing to give up in exchange for working with a company that is well-known for being socially responsible? Reducing existing necessary business products More companies are looking at ways to take their factory “green” Interface Inc in Atlanta did! In 2008, Interface reduce greenhouse gas (GHG) by 71% in absolute tons – sales increased by 2/3 and earnings doubled! Waste reduction measures put a cumulative $405 million of avoided costs directly into the bottom line. Impressive! http://www.michaelhartzell.com/Blog/bid/79788/82-of-Companies-Saved-Money-Using-the-Cloud-infographic Manufacturing Effeciencies Remanufacturing/Refurbishing Across all geographies, over 60% of consumers said that they prefer to purchase from environmentally responsible companies. The market is still developing, but companies jumping on board early with sustainability are getting that good “green” image that will carry them forward into the next generation. Remanufacturing/Refurbishing Human Resources Manufacturing efficiencies http://www.automationworld.com/asset-management/sustainability-leads-next-generation-manufacturing http://www.vmware.com/solutions/cost-savings/index.html Corporate Social Responsibility Virtualizing/Cloud Computing IT Resources Risk Management Human Resources Risk Management Brand Differentiation License to Operate Internal Reasons More and more companies are getting behind the sustainability initiative of remanufacturing/refurbishing products. Reduce waste and minimize the need for raw material for new parts… Just reuse! Keeps nonrenewable resources in circulation for multiple lifetimes Examples of remanufactured products: engines & machinery (CAT, John Deere, Bobcat), transmissions, carburetors, computers, printer cartridges, water pumps. . Remanufactured products have a reputation for performance “just like new” & for being more affordable and cost effective Provides a 2nd stream of income for a company on already previously sold and used items. “Green” efforts are good publicity License to Operate Reducing existing necessary business products Produce/Use Less External Reasons Cat Financial implemented duplex printing as its default printing option. In the first year, 5,900 reams of paper were saved. With an average price of $2.50 a ream, that’s a savings of $14,750 per year! Cat Financial reduced water usage by 641,827 gallons in 2010 by not running A/C on weekends, installing low-flow irrigation sprinkler heads and landscaping with drought-tolerant plants. Air-conditioning is the biggest consumer of water in a building! "Green" efforts are good publicity Define Corporate Responsibility Corporate Social Responsibility (CSR) refers to operating a business in a manner that accounts for the social and environmental impact created by the business. The goal of CSR is to embrace responsibility for the company’s action and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere.

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