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Sustainable creation of shared values of entrepreneurship in the context of sustainable corporate social responsibility. Ing. Lubomir Smida Prof. Ing. Peter Sakal , CSc. 2nd ICEESD Jilin City, Jilin , China October 12 – 14, 2012 . 75th anniversary of the establishment.

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slide1

Sustainable creation of sharedvaluesofentrepreneurshipin thecontext of sustainable corporatesocialresponsibility

Ing. Lubomir Smida

Prof. Ing. Peter Sakal, CSc.

2nd ICEESD

Jilin City, Jilin, China

October 12 – 14, 2012

slide2

75th anniversary

of the establishment

  • Established in 1937.
  • 7 faculties:
    • Faculty of Civil Engineering,
    • Faculty of MechanicalEngineering,
    • Faculty of ElectricalEngineering and InformationTechnology,
  • Faculty of Chemical and FoodTechnology,
  • Faculty of Architecture,
  • Faculty of MaterialsScience and Technology,
  • Faculty of Informatics and Information Technology.

http://www.stuba.sk/english.html?page_id=132

slide3

Institutes:

    • Institute of Materials Science,
    • Institute of Production Technologies,
    • Institute of Production Systemsand Applied Mechanics,
    • Institute of Applied Informatics, Automation and Mathematics,
    • Institute of Safety and Environmental Engineering,
    • Institute of Industrial Engineering, Management and Quality.

Information DVD about thefaculty

http://www.mtf.stuba.sk/english.html?page_id=760

http://www.mtf.stuba.sk/english/on-faculty/dvd-about-faculty.html?page_id=2980

slide4

Institute of Industrial Engineering, Management and Quality

  • Study programmes:
    • IndustrialManagement,
    • ProductionQuality.
  • Organizedunder the auspicofMinister of Education, Science, Research and Sport of the Slovak Republic Doc. Dusan CAPLOVIC.
  • Researchactivities:
    • researchand pedagogicalprojects within VEGA & KEGA grant agencies,
    • internationalprogrammes and projects of MVTS,
    • internallyfunded projects,
    • contractualresearch and development projects funded by business andindustry.

Prof. Ing. Peter Sakal, CSc.

Guarantee of the study programmeIndustrialmanagement.

Follower of the idea of sustainable development and corporatesocialresponsibility.

http://www.comattech.sk/eng/uvod.php

http://www.mtf.stuba.sk/english/research.html?page_id=2948

slide5

This paper was supported by the Slovak Research and Development Agency under the contract No. LPP-0384-09: “Concept HCS model 3E vs. Concept Corporate Social Responsibility (CSR).”

  • http://www.apvv.sk/agentura?lang=en
  • The paper is also a part of submitted KEGA project No. 037STU-4/2012 “Implementation of the subject “Sustainable CorporateSocial Responsibility” into the study programme Industrial management in the second degree at MTF STU Trnava”.
  • http://www.portalvs.sk/en/prehlad-projektov/6838
slide6

Main objectiveof presentation:

    • presentation of thebasis and model of sustainable creation of sharedvalues.
  • Partialobjectives of presentation:
    • presentation of sustainable corporatesocialresponsibility,
    • presentation of amoebasystemwithintheproject KEGA, “Implementation of the subject “Sustainable Corporate Social Responsibility” into the study programme Industrial management in the second degree at MTF STU Trnava”.
contents
CONTENTS

INTRODUCTION

  • SUSTAINABLE DEVELOPMENT

1.1. Corporate SocialResponsibility

1.2. CreatingSharedValues

1.3 .Sustainable CorporateSocialResponsibility

  • THE AMOEBA SYSTEM

2.1. Sustainable creation of sharedvalues by theamoebasystem

SUMMARY

introduction
INTRODUCTION
  • Sustainable society index (2010) – Criteria: Preparationforthefuture:

Humanthinkingcrisis

Financialcrisis,

Post-warcrisis,

Foodcrisis,

Rawmaterialcrisis,

...

The need of a system that supports long-term development.

1 sustainable development
1. SUSTAINABLE DEVELOPMENT
  • Aimed at creating and maintaining a balancebetweentheindividualcomponents of theEarth.
  • ISO 26000: "Development thatmeetstheneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds.„
  • Social, economicandenvironmentalobjectivesare interdependentandmutuallyreinforcing.
slide10

1. SUSTAINABLE DEVELOPMENT

Growth of worldpopulationWorldenergyconsumption

Sustainable society index Happy planet index

1 sustainable development of entrepreneurship
1. SUSTAINABLE DEVELOPMENT of Entrepreneurship
  • Representatives acknowledge that the implementation of sustainable development will depend on the active engagement of both, the public and the private sector.
  • Representatives support national regulatory and policy frameworks that enable business and industry to advance SD initiatives, taking into account the importance of corporate social responsibility.
  • Representatives call on the private sector to engage in responsible enterprise practices, such as those promoted by the United Nations Global Compact.

70% of chief executives and 49% of Boards areengaged in corporate sustainability strategy.

www.scss.sk

1 1 corporate social responsibility
1.1. CorporateSocialResponsibility
  • Graduallyhaveexapandedfromindividuals to national and globallevel.
  • Pioneers - Owen, Bata, Carnegie, Bowen.
  • StrategyEurope 2020 - smart, sustainable and inclusive economy delivering high levels ofemployment, productivity and social cohesion.
  • StrategyEnterprise 2020 - address the European and global challenges which are increasingly bringing into question our current patterns of living, working, learning, communicating, consuming and sharing resources.
  • A renewed EU strategy 2011-14 forCorporateSocialResponsibility– CSR:

“Theresponsibility of enterprisesfor their impacts on society”.

1 1 corporate social responsibility1
1.1. CorporateSocialResponsibility

Wayne Visser – CorporateSustainabilityand Responsibility

Enterprises in spite of worldwide efforts of organizations to improve the quality of life of mankind came to CSR only as to marginal or non-economic conceptthat is not included in the core of entrepreneurship.

  • Economic sustainability requires financial responsibility.
  • Human sustainability requires labour responsibility.
  • Social sustainability requires community responsibility.
  • Environmental sustainability requires moral responsibility.

SUSTAINABILITY

RESPONSIBILITY

http://www.waynevisser.com/wp-content/uploads/2012/04/chapter_wvisser_age_responsibility.pdf

1 2 creating shared values
1.2. CreatingSharedValues

Michael Porterand MarkKramer

  • In response to the slow development of CSR.
  • Basedon previously overlooked opportunities for:
    • designing customer needs, products and markets,
    • the new definition of productivity in the value chainand
    • enablingthe development of local clusters.

http://www.waterhealth.com/sites/default/files/Harvard_Buiness_Review_Shared_Value.pdf

1 3 sustainable corporate social responsiblity
1.3. Sustainable CorporateSocialResponsiblity
  • Sustainable corporate social responsibility is based on the idea of enterprise oriented to economic development aimed at promoting social and environmental development.
  • Social innovation means new ideas, business models, products and services resolving existing sustainable challenges, such as demographic change, human rights violations, financial crisis, environmental degradation, and poverty.

http://www.csreurope.org/pages/en/enterprise2020.html

1 3 sustainable corporate social responsiblity1
1.3. Sustainable CorporateSocialResponsiblity
  • "The system of interconnected activities performed by the entrepreneur long-term, independently and on own responsibility with participation of stakeholders,
  • able to self-management and participating on created sustainable added value and
  • serving to promote social and environmental development in order to create a suitable local environment for long-term development of sustainable corporate social responsibility
  • and in line with global aspirations of mankind to maintain a balance between all elements of the global ecosystem.„
  • Implementation tothepracticeisa systematic and long-term process.
2 the amoeba system
2. THE AMOEBA SYSTEM
  • Ametaphor on comparison of independent units to individual cells.
  • Practicalorganizational expression in the system of Kyocera Corporation,foundedin 1959 by Dr. Kazuo Inamori as Kyoto Ceramic Co., Ltd.
  • Each amoeba provides own strategic management, system of profit, cost accounting and personnel management.
  • Division and disintegration of amoebas is managed according to the level of production and value added on member per hour, for example:
    • At low production and high added value, the amoeba system is divided into smaller units.
    • The high production and high added value, the amoeba system maintains.
    • The high production and low value-added amoeba system reduces the number of members, radically reorganized and the lack of improvement is dissolved.
2 the amoeba system1
2. THE AMOEBA SYSTEM

" Management has been based on the Kyocera Philosophy, with "What is the right thing to do as a human being" as the decision-making criterion.

  • The advantage of the amoeba system in terms of CSR lies in creating work teams, amoebas, which carry out various activities in the value chain.
  • It is therefore the creation of internal amoebas, but also external, those participate in the enterprise development, while increasing their quality of life.

http://global.kyocera.com/inamori/management/amoeba/index.html

2 1 sustainable creation of shared values
2.1. Sustainable creation of sharedvalues
  • The elements of the system are:
    • Internal stock. It consists of employees of the enterprise.
    • External stock. It consists of stakeholders other than employees.
    • Production. The process of compiling amoebas from internal (1) and external stock (2).
    • Interconnection. Amoebasbuildmarketrelations (3).
    • Disintegration. The break-up of amoebas, which do not create added value. Employees return to stock, or leave the enterprise (4), (5).
2 1 sustainable creation of shared values1
2.1. Sustainable creation of sharedvalues
  • Partly applied within the project KEGA“Implementation of the subject “Sustainable Corporate Social Responsibility”atMTF STU Trnava.
summary
SUMMARY
  • Development of SCSR requires:
    • development of cooperation with the enterprise stakeholders,
    • according to CSV, involvment of external subjects in the value chain,
    • long-term focus,
    • creation of internal and external working teams, amoebas, that should increase dynamics of SCSR develpment and simultanously local community,
    • creation of externalstockthatis center of thedynamiccompetition,
    • understandingthat GDP is not suitable indicator of Human Happiness.

http://www.wbcsd.org/web/projects/BZrole/Vision2050-FullReport_Final.pdf

references
REFERENCES
  • ISO 26000: 2010, Guidance on socialresponsibility.
  • UnitedNations: Thefuturewewant. Information on http://daccess-dds-ny.un.org/doc/UNDOC/GEN/N12/381/64/PDF/N1238164.pdf?OpenElement
  • Z. Pitra: Jak zachranit prednosti kapitalistickehosystemu? Information on http://www.cma.cz/Upload/Documents/aktuality/HBR11-Porter.pdf
  • E. Thomasova: Sietovastrukturazlozena z ameb. Information on: http://www.akademickyrepozitar.sk/sk/repozitar/ameby.pdf
  • M.E. Porter, M.R. Kramer: How to FixCapitalism? CreatingShared Value. In: Hardvard Business Review, January-February 2011, p. 63-77.
  • R. Adler, T. Hiromoto: AMOEBA MANAGEMENT: LESSONS FROM KYOCERA ON HOW TO PROMOTE ORGANIZATION GROWTH, PROFITABILITY, INTEGRATION, AND COORDINATED ACTION. Information on: http://www.pma.otago.ac.nz/pma-cd/papers/1039.pdf
references1
REFERENCES
  • http://publview.stuba.sk/view_publ.php?dv=1&kd=-2&roh=-1&a=96209&chb_pdr=-1&nz_typ=4
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  • http://www.stuba.sk/english.html?page_id=132
  • http://www.stuba.sk/sk/diani-na-stu/prehlad-aktualit/stu-oslavovala-75.-vyrocie.html?page_id=5512
  • http://www.youtube.com/watch?v=vyGJ3oazF6g&feature=player_embedded
  • http://www.youtube.com/watch?v=DhDSjgAKjt8&feature=player_embedded
  • http://www.mtf.stuba.sk/english.html?page_id=760
  • http://www.mtf.stuba.sk/english/on-faculty/dvd-about-faculty.html?page_id=2980
references2
REFERENCES
  • http://www.comattech.sk/eng/uvod.php
  • http://www.mtf.stuba.sk/english/research.html?page_id=2948
  • http://www.apvv.sk/agentura?lang=en
  • http://www.portalvs.sk/en/prehlad-projektov/6838
  • http://www.ssfindex.com/cms/categorien/StatPlanet.html
  • http://www.clubofrome.org/
  • http://www.un.org/
  • http://www.wbcsd.org/home.aspx
  • http://www.earthsummit2012.org/
  • http://www.worldpopulationbalance.org/exponential-growth-tutorial/population-now.html
  • http://yearbook.enerdata.net/
  • http://www.ssfindex.com/results-2010/
references3
REFERENCES
  • http://www.happyplanetindex.org/data/
  • http://www.un.org/apps/news/story.asp?NewsID=42281#.UHIA35gmSSo
  • http://www.unglobalcompact.org/docs/news_events/8.1/2011_Global_Compact_Implementation_Survey.pdf
  • http://www.scss.sk/cd_apvv_lpp_0384_09_2011/V%C3%9DSTUPY%20Z%20VLASTNEJ%20VEDECKO-V%C3%9DSKUMNEJ%20A%20PEDAGOGICKEJ%20%C4%8CINNOSTI/PUBLIKA%C4%8CN%C3%81%20%C4%8CINNOS%C5%A4/KONFERENCIE/UFA/ISEI%20UNC%20RAN/Konferencia/PDF/%C5%A0m%C3%ADda,%20Hrdinov%C3%A1,%20Sak%C3%A1l_a.j..pdf
  • www.scss.sk
  • http://ec.europa.eu/europe2020/index_en.htm
  • http://www.csreurope.org/pages/en/enterprise2020.html
references4
REFERENCES
  • http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF
  • http://www.csreurope.org/
  • http://www.blf.sk/
  • http://www.waynevisser.com/wp-content/uploads/2012/04/chapter_wvisser_age_responsibility.pdf
  • http://www.waterhealth.com/sites/default/files/Harvard_Buiness_Review_Shared_Value.pdf
  • http://www.csreurope.org/pages/en/enterprise2020.html
  • http://global.kyocera.com/
  • http://global.kyocera.com/ecology/csr/index.html
  • http://global.kyocera.com/inamori/management/amoeba/index.html
  • http://www.wbcsd.org/web/projects/BZrole/Vision2050-FullReport_Final.pdf
slide27

Ing. Lubomir Smida

Slovak University of Technology

Faculty of MaterialsScience and Technology

Institute of Industrial Engineering, Management and Quality

Paulinska 16

917 24 Trnava

SLOVAKIA

Prof. Ing. Peter Sakal, CSc.

Slovak University of Technology

Faculty of MaterialsScience and Technology

Institute of Industrial Engineering, Management and Quality

Paulinska 16

917 24 Trnava

SLOVAKIA

thank you for your attention

THANK YOU FOR YOUR ATTENTION!

lubomir.smida@stuba.sk

peter.sakal@stuba.sk