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Course on Corporate Social Responsibility

Course on Corporate Social Responsibility

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Course on Corporate Social Responsibility

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  1. EcosysmisRévélateur de valeurs Course on Corporate Social Responsibility Lecture 2 Xavier Amoros

  2. Syllabus • Lecture 1: CSR rationale • CSR : Why NOW and where it comes from • Critics and beyond the critics • Lecture 2: Principles and dialogue • CSR principles • Responsibilities towards whom and about what • Lecture 3: Core questions • The 7 areas of responsibilities

  3. Syllabus • Lecture 4 • Evaluation by third parties • Reporting on CSR • Lecture 5 • Social and environmental accounting • State-of-the-art • Lecture 6 • Outlook

  4. Objectives of the lecture • Explain the seven principles of CSR as defined by ISO 26000 • Show the scope of these standards in the governance and management of a company • Consider the recommendations and practices of dialogue with stakeholders • See how to define the stakeholders, the sphere of influence and build a constructive dialogue that serves the interests of all parties, the expectations of society

  5. Recognising social responsibility In addressing its social responsibility an organisation should understand three relationships: • Between the organisation and society; • Between the organisation and its stakeholders; and • Between the stakeholders and society

  6. The SR deeply commits the company to the relationship of with its stakeholders 7 core SR questions Society and the environnement Corporation Human rights Community involvement Stakeholders Contribution to Sustainability Consumer issues 7 principles Labour practices Dialogue Fair operating practices Environment

  7. Areas of action 1. Community involvement 2: Education and culture 1. Due diligence 2. Human rights risk situations 3. Avoidance of complicity 3. Employment creation and skills development 4. Technology development and access 5. Wealth and income creation 4. Resolving grievances 5. Discrimination and vulnerable groups 7. Economic, social and cultural rights 6: Health 7. Social investment 6. Civil and political rights 8. Fundamental principles and rights at work 2. Sustainable resource use 1. Prevention of pollution 1. Employment and employment relationships 4. Biodiversity and restoration of habitats 3. Social dialogue 3: Climate change mitigation and adaptation 2. Conditions of work and social protection 5. Human development and training 4. Health and safety at work 1. Fair marketing and fair contractual practices 2. Protecting consumers' health and safety 3. Sustainable consumption 4. Consumer service and dispute resolution 5. Consumer data and privacy 1. Anti-corruption 2. Responsible political involvement 6: Access to essential services 7. Education and awareness 3. Fair competition 4. Promoting SRin the value chain 5: Respect for property rights

  8. ISO 26000 and other CSR standards • Déclinaisons sectorielles : agro-alimentaire, communication, paysage… • Déclinaisons fonctionnelles : achats responsables • Principes directeurs relatifs aux entreprises et droits de l‘Homme - ONU et Commission Européenne • ISO 14001, 22000, 50000… • MASE • UNEP Life Cycle Sustainability assessment • TEEB - The Economic Evaluation of Biodiversity… • ILO-OSH 2001, OHSAS, SA 8000 • UNEP Life Cycle Sustainabilityassessment • Lignes OCDE sur la lutte contre la corruption • Business principles for countering bribery - TI • ISO 9000 • OECD Promoting Sustainable Consumption • Principes du Pacte Mondial • Lignes directrices de l'OCDE pour les entreprises multinationales • GRI 4, AA1000 • EFQM • SIGMA guidelines

  9. Chapter CSR principles

  10. Transparency 7 CSR principles • Respect for human rights • Ethical behaviour • Accountability • Respect for international norms of behaviour • Respect for stakeholders interests • Respect for the rule of law

  11. Respect of the 7 CSR principles Transparency • Provide possible access to information for people affected by a decision, without disclosing trade secrets provided neither a strategy • It focuses on a specific list of items, such as • the purpose, nature and location of the activities, • the identity of any controlling interest in the activities of the organization, • how are made, implemented and reviewed decisions, performance in areas where the SR is important and significant, known or probable effects of decisions or activities of the stakeholders…

  12. Assume one’s decisions, actions and impacts • Reflect deeds of assuming • Be answerable for its decisions and activities • Accountability participates transparency Respect of the 7 CSR principles Accountability

  13. Transparency & Accountability Accountability Transparency Impacts of decisions and actions • Répondre de ses décisions et de ses activités • Réparation des dommages causés • Objet, la nature et l’emplacement des activités • Identité de toute participation de contrôle à l’activité de l’organisation • Manière dont sont prises, appliquées et revues les décisions • Performances dans les domaines où la RS est importante et significative, • Effets connus ou probables des décisions ou activités sur les parties prenantes… • Rendre compte du fait d’assumer

  14. Respect of the 7 CSR principles Ethical behaviour • Behaviour adequate to accepted principles of right or good conduct in the context of a particular situation • Based on the values ​​of honesty, fairness and integrity • Implies that there is concern for others, animals and the environment • Involves a commitment to address the impact of its decisions and activities on the interests of others « Ethics is the search for how to properly act »

  15. Recalling an obligation independent of the standard ... • Social Responsibility commits to exceed legal obligations, including its application under the sphere of influence and exercise due diligence Respect of the 7 CSR principles Respect of the Rule of Law

  16. Respect of the 7 CSR principles Respect for the Human Rights • Principle recalling the importance of human rights and the need for organisations to promote respect • The principle also refers to situations of active complicity, passive or silent

  17. Universal values ​​contained in the Universal Bill of Human Rights or the fundamental ILO Conventions, including where they have not been transposed into local law Respect of the 7 CSR principles International standards of behaviour

  18. Respect of the 7 CSR principles Recognition of stakeholders’ interests • Know & understand the interests of its stakeholders • Take into account the interests of its decisions in an informed manner • Meet its interests

  19. Understanding complicity • Complicity has both legal and non-legal meanings • In the legal context, complicity has been defined in some jurisdictions as being party to an act or omission having a substantial effecton the commission of an ILLEGAL act such as a crime, while having knowledge of, or intent to contribute to, that illegal act • Complicity is associated with the concept of aiding and abetting an illegal act or omission

  20. Understanding complicity • In the non-legal context, complicity derives from broad societal expectations of behaviour • In this context, an organisation may be considered complicit when it assists in the commission of WRONGFUL acts of others that are inconsistent with, or disrespectful of, international norms of behaviour that the organisation, through exercising due diligence, knew or should have known would lead to substantial negative impacts on society, the economy or the environment • An organisation may also be considered complicit where it stays silent about or benefits from such wrongful acts

  21. Transparency principle • An organisation should be transparent in its decisions and activities that impact on society and the environment • Disclose in a clear, accurate and complete manner, • and to a reasonable and sufficient degree, • the policies, decisions and activities for which it is responsible, • including their known and likely impacts on society and the environment

  22. Transparency principle • This information should be readily available, directly accessible and understandable to those who have been, or may be, affected in significant ways by the organisation • It should be timely and factual and be presented in a clear and objective manner so as to enable stakeholders to accurately assess the impact that the organisation's decisions and activities have on their respective interests

  23. An organisation should be transparent regarding… (1/3) • the purpose, nature and location of its activities; • the identity of any controlling interest in the activity of the organisation; • the manner in which its decisions are made, implemented and reviewed, including the definition of the roles, responsibilities, accountabilities and authorities across the different functions in the organisation;

  24. An organisation should be transparent regarding… (2/3) • standards and criteria against which the organisation evaluates its own performance relating to social responsibility; • its performanceon relevant and significant issues of social responsibility; • the sources, amounts and application of its funds;

  25. An organisation should be transparent regarding… (3/3) • the known and likely impacts of its decisions and activities on its stakeholders, society, the economy and the environment; • and its stakeholders and the criteria and procedures used to identify, select and engage them.

  26. Accountability principle • The responsible organisation is in a position to meet its stakeholders on the impact of its activities on the environment, civil society and / or health, and the actions undertaken to avoid repetition of negative impacts • These are measured and controlled and the information is clear, understandable, fair, accessible

  27. The principle of ethical behaviour • “An organisation should behave ethically. An organisation's behaviour should be based on the values of honesty, equity and integrity • These values imply a concern for • people, • animals and the environment, • …and a commitment to address the impact of its activities and decisions on stakeholders' interests.”

  28. An organisation should actively promote ethical behaviour by… (1/3) • identifying and stating its core values and principles; • developing and using governance structures that help to promote ethical behaviour within the organisation, in its decision making and in its interactions with others; • identifying, adopting and applying standards of ethical behaviour appropriate to its purpose and activities and consistent with the principles outlined in this International Standard; • encouraging and promoting the observance of its standards of ethical behaviour;

  29. An organisation should actively promote ethical behaviour by… (2/3) • defining and communicating the standards of ethical behaviour expected from its governance structure, personnel, suppliers, contractors and, when appropriate, owners and managers; • preventing or resolving conflicts of interest throughout the organisation that could otherwise lead to unethicalbehaviour • establishing and maintaining oversight mechanisms and controls to monitor, support and enforce ethical behaviour;

  30. An organisation should actively promote ethical behaviour by… (3/3) • establishing and maintaining mechanisms to facilitate the reporting of unethical behaviour without fear of reprisal; • recognizing and addressing situations where local laws and regulations either do not exist or conflict with ethicalbehaviour; • adopting and applying internationally recognized standards of ethical behaviourwhen conducting researchwithhumansubjects; and • respecting the welfare of animals, when affecting their lives and existence, including by providing decent conditions for keeping, breeding, producing, transporting and using animals

  31. Principle of respect for stakeholder interests • An organisation should respect, consider and respond to the interests of ALL its stakeholders. • Although an organisation's objectives may be limited to the interests of its owners, members, customers or constituents, other individuals or groups may also have rights, claims or specific interests that should be taken into account • Collectively, these individuals or groups comprise the organisation's stakeholders

  32. Principle of respect for stakeholder interests • An organisation should: • identify its stakeholders; • recognize and have due regard for the interests as well as the legal rights of its stakeholders and respond to their expressed concerns; • recognize that some stakeholders can significantly affect the activities of the organisation; • assess and take into account the relative ability of stakeholders to contact, engage with and influence the organisation;

  33. Principle of respect for stakeholder interests • An organisation should (followed): • take into account the relation of its stakeholders' interests to the broader expectations of society and to sustainable development, as well as the nature of the stakeholders' relationship with the organisation; and • consider the views of stakeholders whose interests are likely to be affected by a decision or activity even if they have no formal role in the governance of the organisation or are unaware of these interests.

  34. Principle of respect for the rule of law (1/3) • An organisation should accept that respect for the rule of law is mandatory • The rule of law refers to the supremacy of law and, in particular, to the idea that no individual or organisation stands above the law and that government is also subject to the law.

  35. Principle of respect for the rule of law (2/3) • The rule of law contrasts with the arbitrary exercise of power. It is generally implicit in the rule of law that laws and regulations are written, publicly disclosed and fairly enforced according to established procedures. • In the context of SR, respect for the rule of law means that an organisation complies with all applicable laws and regulations. • This implies that it should take steps to be aware of applicable laws and regulations, to inform those within the organisation of their obligation to observe and to implement those measures

  36. Principle of respect for the rule of law (3/3) • An organisation should: • comply with legal requirements in all jurisdictions in which the organisation operates, even if those laws and regulations are not adequately enforced; • ensure that its relationships and activities comply with the intended and applicable legal framework; • keep itself informed of all legal obligations; and • periodically review its compliance with applicable laws and regulations.

  37. Principle of respect for human rights • An organisation should respect human rights and recognize both their importance and universality • An organisation should: • respect and, where possible, promote the rights set out in the International Bill of Human Rights;

  38. Principle of respect for human rights • An organisation should: • respect the universality of these rights, that is, that they are indivisibly applicable in all countries, cultures and situations; • in situations where human rights are not protected, take steps to respect human rights and avoid taking advantage of these situations; and • in situations where the law or its implementation does not provide for adequate protection of human rights

  39. Principle of respect for international norms of behaviour • An organisation should respect international norms of behaviour, while adhering to the principle of respect for the rule of law – It refers to all international norms and especially Human Rights • In situations where the law or its implementation does not provide for adequate environmental or social safeguards, an organisation should strive to respect, as a minimum, international norms of behaviour • In countries where the law or its implementation conflicts with international norms of behaviour, an organisation should strive to respect such norms to the greatest extent possible

  40. Principle of respect for international norms of behaviour • In situations where the law or its implementation is in conflict with international norms of behaviour and where not following these norms would have significant consequences, an organisation should, as feasible and appropriate, review the nature of its relationships and activities within that jurisdiction. • An organisation should consider legitimate opportunities and channels to seek to influence relevant organisations and authorities to remedy any such conflict. • An organisation should avoid being COMPLICIT in the activities of another organisation that are not consistent with international norms of behaviour

  41. Chapter Recognising social responsibility – The stakeholders

  42. Chapter 2 - Responsibility towards whom and about what • Who are the stakeholders: Definitions and typology • Stakeholders mapping • The sphere of influence • How to relate to the stakeholders • Stakeholders panel • NGOs • Suppliers • And others • Listen, consult, inform, offer and report

  43. Reminder: Stakeholders theory dates back to the 80s UN Global Compact UN Johannesburg Summit 90’s 80’s Deregulation CSR Globalisation of capitalist corporations ISO 26000 Alterglobalisation movement CSR Europe 1984Stakeholders theory E. Freeman Howard R. Bowen, 1stformulation of CSR 40’s 1917 Extension of Communism Communism in USSR Welfare state in the West RerumNovarum, Pope Leon 13 18th century 19th 2nd Industrial Revolution 1st Industrial Revolution

  44. Stakeholders management: Key to the Corporate Performance • 0’: What is stakeholders theory • 3’00”: What are stakeholders (skip until 4’30”) • 5’05’’: Stakeholders are people – Business & ethics fit together • Stakeholders management leads to Social Resposbility per se • 9’40”: Stakeholders & value creation (!) • 11’05”: Value creation opportunities • 44’30”: Building Trust • 47’: Who do people trust ?

  45. Main lessons from E. Freeman • Business and Ethics go in the same direction • Capitalism enables to serve the interests of all stakeholders • A Business thatroutinelyshrugs off itsstakeholdersis a Business in decline • Searching trade-offs between different interests should come after the search of the intersection of all interests • E.g. cost savings by wiping out pollution / cutting GHG emissions • Stakeholders are people or organisations who play a role in the value creation process • Consider Stakeholders like living, breathing human beings • Managers are best placed to define relevant segmentations of stakeholders

  46. Who are the stakeholders ? • Stakeholders are the people and groups who have an interest in the decisions and activities of an organisation • The narrow definition conventionally include the economic stakeholders: clients, owners, suppliers… • …But impacts appear to happen on a much broader range of stakeholders

  47. Purpose of dialogue with stakeholders • Discern the interests worn by Stakeholders to assess their consideration by the organisation based on dialogue • Have the point of view of its stakeholders in order to make decisions being informed of the possible consequences of its decisions on stakeholders • Exercise the duty of influence • Strengthen the acceptability of the company

  48. Stakeholders dialogue is a starting point for social acceptability Responsible behaviour Stakeholders dialogue Strong Weak Corporate acceptability Persona non-grata Lambda companies Business in the spotlight

  49. Stakeholders dialogue is a starting point for social acceptability Responsible behaviour Stakeholders dialogue Strong Corporate acceptability Weak Persona non-grata Lambda companies Business in the spotlight • Failure to obtain license to operate • Non-renewal of concession • Civil actions to obstruct the activity, sabotage • Boycott of customers • Smear campaign • Difficulty in recruiting • Trials • Right to operate: Authorization / concession • Neutrality of citizens and public authorities: Neither favor nor obstacle • Ability to deploy its normal activity • Positive and fast outcome of requests to public authorities • Financing facilities • Granting of better conditions to operate • Informal benefits: Access to information, contacts ... • Strong appeal of the company (customers, partners, employees, suppliers)

  50. Chapter 2 - Responsibility towards whom and about what • Who are the stakeholders: Definitions and typology • Stakeholders mapping & sphere of influence • How to relate to the stakeholders • Stakeholders panel • NGOs • Suppliers • And others • Listen, consult, inform, offer and report