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corporate
social
responsibility.
Are businesses responsible for social issues




                                               1
agenda.




                                      2

Say pretty quickly. keep it moving!
agenda.
           What is Corporate Social Responsibility?   Jamie




                                                              2

Say pretty quickly. keep it moving!
agenda.
           What is Corporate Social Responsibility?   Jamie

                          Arguments FOR               Tom




                                                              2

Say pretty quickly. keep it moving!
agenda.
           What is Corporate Social Responsibility?    Jamie

                          Arguments FOR                Tom

                      Arguments AGAINST               Jennifer




                                                                 2

Say pretty quickly. keep it moving!
agenda.
           What is Corporate Social Responsibility?    Jamie

                          Arguments FOR                Tom

                      Arguments AGAINST               Jennifer

                       Case Study: Microsoft           Jamie




                                                                 2

Say pretty quickly. keep it moving!
agenda.
           What is Corporate Social Responsibility?    Jamie

                          Arguments FOR                Tom

                      Arguments AGAINST               Jennifer

                       Case Study: Microsoft           Jamie

                       Case Study: Microsoft          Marie




                                                                 2

Say pretty quickly. keep it moving!
agenda.
           What is Corporate Social Responsibility?      Jamie

                          Arguments FOR                  Tom

                      Arguments AGAINST                Jennifer

                       Case Study: Microsoft            Jamie

                       Case Study: Microsoft            Marie

                             Conclusions              Marie & Jen

                                                                    2

Say pretty quickly. keep it moving!
agenda.



           What is Corporate Social Responsibility?   Jamie




                                                              2

Say pretty quickly. keep it moving!
definition.

      “.....the business contribution to our
  sustainable development goals. Essentially it
   is about how business takes account of its
  economic, social and environmental impacts
     in the way it operates – maximising the
   benefits and minimising the downsides...”

                                csr.gov.uk



                                                  3
definition.

      “.....the business contribution to our
  sustainable development goals. Essentially it
   is about how business takes account of its
  economic, social and environmental impacts
     in the way it operates – maximising the
   benefits and minimising the downsides...”

                                csr.gov.uk



                                                  4
Clear business case



                                                                  5

Stakeholders and customers are increasingly concerned about the
environmental and social impacts of the products they buy.
business can become more competitive, not less.
6
7
£10

      7
£10

      7
£13

      7
7
8
8
9
9
Shareholders



                                                                                          10

And this is the basic argument that exists today when it comes to Corporate Social
Responsibility.

Shareholders have to balance out whether THEIR investments and dividends should be used
to fund social initiatives
Profit distribution

                      CSR




          Reinvest




     Employee bonus

                            Shareholder




                                          11
Profit distribution




                     12
Profit distribution


          Reinvest




     Employee bonus

                      Shareholder




                                    12
derives from many
                    different areas



                                                                         13

As you are probably all aware, CSR consists of many different elements
14

Poverty
15

investing in the community (both monetary and time investment)
16

and....
but interestingly there is a debate going on about why MNEs should and shouldn’t invest
heavily in CSR.
And to tell us about why they should, here is Tom
for.


       Tom Fitton



                    17
Neo-Classical View



                                                                                             18

A Neo-Classical View of CSR which epitomizes capitalism is that the only responsibility of the
firm is to maximize profit for the shareholders whilst remaining inside existing laws, for
example paying wages and at least minimum wages.
“Few trends would so thoroughly undermine
 the very foundations of our free society as
  the acceptance by corporate officials of a
 social responsibility other than to make as
 much money for their shareholders as they
                possibly can”

                      Milton Friedman, 1962



                                               19
Behavioural View



                   20
“In addition to making a profit, business
    should help to solve social problems whether
        or not business helps to create those
    problems even if there is probably no short-
          run or long-run profit potential”

                                                     Holmes, 1976



                                                                                           21

A contrasting perspective is one of the behavioral theorists, who believe management may,
regardless of shareholder pressures, be influenced by non economic factors, political aspects,
personnel preference resulting in a firm which takes into consideration ethics and morals
whilst conducting their business.
Increase Customer Awareness
                                                                                             22

More recently academics have accepted that CSR has become an important aspect of
corporate strategy, this can be attributed to; an increased customer awareness of business
operations through global media exposure.
Media increases coverage and awareness of;


  •   Sustainability and environmental issues

  •   Health and obesity

  •   International operations; worker conditions, exploitation &
      human rights

  •   General ethics and morals.




                                                                    23
Workplace
            24
Marketplace: Customer
                        25
Marketplace: Customer
                        26
Marketplace: Supplier
                        27
Community
            28
Ethics
         29
Human
Rights



         30
Paradox
                                                                                         31

not incorporating the minimum requirements of what is deemed socially responsible in the
modern business environment can have catastrophic effects in today’s media driven society…
and for this reason not taking measures to do so could lower share value, so the argument
that a business should concentrate on profit only is somewhat a paradox.
“Companies with a defined
        corporate commitment to
        ethical principles do better
        financially than companies
                that don't.”
                                                DePaul University, 1997


                                                                                       32

Furthermore recent research has found that a proactive approach to CSR can result in
increased corporate performance
An 11-year Harvard University study found that
quot;stakeholder-balancedquot; companies showed four times
   the growth rate and eight times the employment
    growth when compared to companies that are
              shareholder-only focused




                                                     33
Reduced Costs
                                                                                             34

Contrary to widely-held opinion, improved environmental management systems do not
automatically result in greater cost. Over time, they improve operational efficiency by
reducing waste production and water usage, increasing energy efficiency and in some cases,
selling recycled materials.
Production of 26
          toxic chemicals
             reduced                             €5.4m saved per year
                                                    (yes, we know this isn’t to scale)


                                                                                            35

There are also company specific ways of reducing operating costs e.g. Dow Chemical Co has
set themselves a target of reducing production of 26 toxic chemicals which will save them
5.4 million Euros per year
BECAUSE IT COSTS THEM A LOT OF MONEY TO PROPERLY DISPOSE OF TOXIC WASTE
Enhance brand image and reputation
                                                                                              36

A good reputation is often very hard to build - and yet can be destroyed in less than a day. So
much of a company's reputation results from 'trust' by stakeholders. A strong reputation in
environmental and social responsibility can help a company build this trust. However, it needs
to result from real practices and policies and an integrity towards the companies
responsibilities. Stakeholders are not stupid and can see through 'fluff'. Non Government
Organisations (NGOs) and local communities are far more willing to not take action as a result
of an environmentally-damaging incident if it is evident that the company has genuinely
worked hard to prevent it happening in the first place, and has in place solid management
practices for rectifying the situation - quickly - and for learning and improving to prevent any
repeat occurrence.
Increased sales & customer loyalty
                                                                                             37

<The coins will swap round automatically>
Research has shown that consumers not only want good and safe products, but they also
want to know that what they buy was produced in a socially and environmentally responsible
way.
Increased sales & customer loyalty
                                                                                             37

<The coins will swap round automatically>
Research has shown that consumers not only want good and safe products, but they also
want to know that what they buy was produced in a socially and environmentally responsible
way.
Increase ability to attract and retain employees

                                                                                            38

A company's dedication to CSR can help to recruit and retain employees. People want to work
for a company that is in accordance with their own values and beliefs, Employees stay longer,
reducing the costs and disruption of recruitment and retraining
“78% of employees would rather work for an
    ethical and reputable company than receive
                  a higher salary”

                                                The Cherenson Group




                                                                                           39

Employees are not just worried about promotion and salary any more.

<I am now going to pass you over to Jennifer who will be debating the other side of CSR>
against.


       Jennifer Chan.




                        40
Conflicting stakeholder interests




                                   41
CSR or PR?



                                         42

Commercialised.
Companies under pressure to be “Green”
Green


                                                                                         43

Voluntary? Companies feel obliged to have programmes for fear being singled out and losing
competitive advantage. Not the true spirit of implementing CSR. Should be about benefiting
society rather than being used as a tool for PR.
Important
Green
                                Peace?

                                                                                             44

An example of this is with Greenpeace.
Greenpeace have a long history of pulling publicity stunts to raise their own profile and funds
rather than concentrate on the real matters of CSR
Green
                                Peace?

                                                                                             44

An example of this is with Greenpeace.
Greenpeace have a long history of pulling publicity stunts to raise their own profile and funds
rather than concentrate on the real matters of CSR
Video from Greenpeace




                                                                                            45

We want to show you an example of this.
Greenpeace last year ran a campaign to get people to create videos which damned Apple for
their “green” initiatives. No other manufacturer of PCs was highlighted in this way.
Greenpeace were using Apples brand image and publicity for their own benefit.
Here is one of the videos
46
47

Used Apple as a publicity tool to benefit their own agenda.
Other brands not singled out
Hazardous materials in Apple Computers within EU regulations of whats allowed.
No worse than other brands, but Apple are an easy and famous target
48

The move prompted Apple to make a response in order to defend themselves against the bad
publicity.
Long essay was posted highlighting their current status as well as future green initiatives.
Weight Recycled as a % of Total Sales
       30.0

                                                                                    28


       22.5                                                                24


                                                                  20

       15.0

                                                         13


        7.5                                     10

                                       6
                              5

         0 2         2
          2002     2003     2004      2005     2006     2007     2008     2009     2010




                                                                                             49

Apple pointed out that they lead the industry in respect to weight recycled as a % of past
sales

But why should they have to do this? Are Greenpeace using bullying tactics?
“Apple completely eliminated the use of CRTs
                        in mid-2006.

             A note of comparison — Dell, Gateway,
            Hewlett Packard and Lenovo still ship CRT
                         displays today”

                                                            Steve Jobs




                                                                                             50

Apple retaliated for being singled out - brought other manufacturers into the conversation
“....businesses are using corporate social
             responsibility as a shield behind which to
           campaign against environmental and human
              rights regulations. CSR is in some cases
             counter-productive, worsening relations
            between business and local communities”




                                                                                          51

This leads me onto the next point... (read quote)

the key point here is that CSR is worsening relations. the Greenpeace/Apple thing is an
example of this.
“....businesses are using corporate social
             responsibility as a shield behind which to
           campaign against environmental and human
              rights regulations. CSR is in some cases
             counter-productive, worsening relations
            between business and local communities”




                                                                                          51

This leads me onto the next point... (read quote)

the key point here is that CSR is worsening relations. the Greenpeace/Apple thing is an
example of this.
Tool for Risk
Management



                52
Benefits are unclear and
  difficult to measure



                          53
How do you quantify?

                               How do you benchmark?

                              Where do you prioritise?




                                                                                             54

who decides where to invest money.... why do they invest in certain charities etc over others?
creates problems on fairness.
Diversion of attention from
  more important issues




                              55
“If efforts to do good become a distraction
from the core business they may actually be
           downright irresponsible”




                                              56
case study.




              57
$400m       donated last year to non-profit
                   organisations throughout the world.




                                                                                              58

Microsoft is the largest contributor in the high-tech industry and one of the largest among all
businesses in the United States. Microsoft employees give more per person than any other
company's employees.
59

The Microsoft Unlimited Potential programme is perhaps their biggest scheme aimed at CSR.
Its about helping individuals around the world have access to affordable technologies in
order to transform education, foster local innovation and enabling job opportunities
The goal is to create a cycle of sustained social and economic growth for everyone and not
just the most economically developed countries
1
bn
                        New computer users by 2015




                                                                                             60

That's also the United Nations' target year for achieving the eight Millennium Development
Goals.
“It took about 35 years to get
        about 1 billion people access to
          computers.....It can't take us
       another 35 years to reach another
                   1 billion.”
                             Orlando Ayala, Senior VP for Microsoft Emerging Segments Group,




                                                                                               61

Basic goal was elaborated by Orlando Ayala, Senior VP of the Emerging Segments Group
62
3
                              Focus Areas

                                                                                  63

transforming education - much like tech has changed the way we learn
innovation (put tech into the hands of more people, greater innovation occurs),
economic opportunity (amalgamation of the above two.
64

As you can see from the map above, they have activities in most of the worlds countries.

<Click> And here are a few pictures of this kind of thing in action - putting technology into
the hands of the youth worldwide
65
66
Software package for Teachers and Students




                                                                                              67

As part of this, Just a few months ago Microsoft announced that they were to sell a package
of Windows, Office and other software to government programs that distribute subsidized
PCs to students around the world.
Called this the Student Innovation Suite
68

They priced this at just $3
If Microsoft doesn't take action, the risk is
     that there may be billions of these computers
          that will not have Microsoft software.
     Although Microsoft wants to quot;make good for
            the worldquot; by increasing access to
         computers, it also wants to position its
      business to be part of the market expansion
             in countries like China and India.


                                                                                           69

There have been a few critics of this move however.
Lots of growth in mobile phones and PCs in these markets.
Governments have got wise to Microsofts tactics in Western society and are going with Linux.
This represents a huge threat to Microsofts business and hence this move. Get countries
hooked on MS software..when they become developed, charge them full price.
Catch 22. If they sold at full price these countries couldnt afford it and people would
complain that Microsoft isn’t doing enough.
Sell them cheap and people become cynical about it. So its a tough situation for MS but I
believe they did the right thing
70

Other people saw this as a move against Negoponte’s OLPC... one laptop per child initiative
which has a similar goal of putting technology into the hands of children in developing
countries.
The OLPC runs Linux and NOT Microsoft Windows.
“It's a scary concept for Microsoft to
    have 100 million to 200 million
 people potentially growing up using
  open-source software and Linux.
 Never underestimate the ability of
Microsoft to respond to that threat”
                    Steve Kleynhans, Gartner



                                               71
72

Just to wrap this up here is a short video from Microsoft founder Bill Gates who puts the
Unlimited Potential programme into his own words
case study.




              73
Pollution Sources In a Car
                             74
Exhaust
  Evaporative           emissions
   emissions




                      Refuelling losses




Pollution Sources In a Car
                                          74
Ford has always led the way when it comes to innovation

So does it when it comes to reducing the environmental
                 impact of the vehicles

Ford was the first vehicle manufacturer in Europe to offer
production passenger vehicles with Flexifuel vehicle (FFV)
                       Technology.




                                                             75
Priced at a similar level to their petrol-only equivalents



          all the advantages of bio-Ethanol



  good for the environment and economic as well.




                                                             76
Ford is the only vehicle manufacturer developing the five
serious environmentally advanced technologies of clean diesel,
  Flexifuel, electric hybrid, hydrogen internal combustion and
                               fuel cell.




                                                             77
For example, the new Mondeo 1.8-litre TDCi has significantly
 better performance and fuel economy and produces around
   20% less CO2 than the equivalent 1993 Mondeo model




                                                          78
Ford is committed to sustained progress as many areas
      as possible that will reduce its impact on the
  environment – and help people to do so too. These
  include: wind turbines at Dagenham, solar panels at
    Bridgend and new recycling initiatives in both its
         products and manufacturing processes.




                                                         79
conclusions.




               80
The relationship between the
      corporation and society is
  inseparable, in that society needs
    corporations for products and
corporations needs society for profits.




                                         81
Profits and CSR are not mutually
 exclusive but go hand-in-hand.




                                  81
The global business environment has
 changed hence the classical view of
corporations to solely make profits is
           short-sighted.




                                        82
“Evidently, embracing corporate social responsibility not
   only makes good business sense. Those that get left
  behind are missing business opportunities, competitor
  advantage and improved management opportunities in
this increasingly globalised world. By not engaging in CSR,
 companies are not only under managing their impact on
  society and the environment, they are under managing
             their own economic self-interest.”




                                                              83
While there are some who abuse it, we feel that
everybody - MNE’s, Governments and Citizens
 have to take responsibility for CSR, because if
                  we don’t......


              who will?


                                                   84
Thank you.



             85
86

“So just to close this up are there are questions?”
?
                                                      86

“So just to close this up are there are questions?”

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Corporate Social Responsibility

  • 2. agenda. 2 Say pretty quickly. keep it moving!
  • 3. agenda. What is Corporate Social Responsibility? Jamie 2 Say pretty quickly. keep it moving!
  • 4. agenda. What is Corporate Social Responsibility? Jamie Arguments FOR Tom 2 Say pretty quickly. keep it moving!
  • 5. agenda. What is Corporate Social Responsibility? Jamie Arguments FOR Tom Arguments AGAINST Jennifer 2 Say pretty quickly. keep it moving!
  • 6. agenda. What is Corporate Social Responsibility? Jamie Arguments FOR Tom Arguments AGAINST Jennifer Case Study: Microsoft Jamie 2 Say pretty quickly. keep it moving!
  • 7. agenda. What is Corporate Social Responsibility? Jamie Arguments FOR Tom Arguments AGAINST Jennifer Case Study: Microsoft Jamie Case Study: Microsoft Marie 2 Say pretty quickly. keep it moving!
  • 8. agenda. What is Corporate Social Responsibility? Jamie Arguments FOR Tom Arguments AGAINST Jennifer Case Study: Microsoft Jamie Case Study: Microsoft Marie Conclusions Marie & Jen 2 Say pretty quickly. keep it moving!
  • 9. agenda. What is Corporate Social Responsibility? Jamie 2 Say pretty quickly. keep it moving!
  • 10. definition. “.....the business contribution to our sustainable development goals. Essentially it is about how business takes account of its economic, social and environmental impacts in the way it operates – maximising the benefits and minimising the downsides...” csr.gov.uk 3
  • 11. definition. “.....the business contribution to our sustainable development goals. Essentially it is about how business takes account of its economic, social and environmental impacts in the way it operates – maximising the benefits and minimising the downsides...” csr.gov.uk 4
  • 12. Clear business case 5 Stakeholders and customers are increasingly concerned about the environmental and social impacts of the products they buy. business can become more competitive, not less.
  • 13. 6
  • 14. 7
  • 15. £10 7
  • 16. £10 7
  • 17. £13 7
  • 18. 7
  • 19. 8
  • 20. 8
  • 21. 9
  • 22. 9
  • 23. Shareholders 10 And this is the basic argument that exists today when it comes to Corporate Social Responsibility. Shareholders have to balance out whether THEIR investments and dividends should be used to fund social initiatives
  • 24. Profit distribution CSR Reinvest Employee bonus Shareholder 11
  • 26. Profit distribution Reinvest Employee bonus Shareholder 12
  • 27. derives from many different areas 13 As you are probably all aware, CSR consists of many different elements
  • 29. 15 investing in the community (both monetary and time investment)
  • 30. 16 and.... but interestingly there is a debate going on about why MNEs should and shouldn’t invest heavily in CSR. And to tell us about why they should, here is Tom
  • 31. for. Tom Fitton 17
  • 32. Neo-Classical View 18 A Neo-Classical View of CSR which epitomizes capitalism is that the only responsibility of the firm is to maximize profit for the shareholders whilst remaining inside existing laws, for example paying wages and at least minimum wages.
  • 33. “Few trends would so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their shareholders as they possibly can” Milton Friedman, 1962 19
  • 35. “In addition to making a profit, business should help to solve social problems whether or not business helps to create those problems even if there is probably no short- run or long-run profit potential” Holmes, 1976 21 A contrasting perspective is one of the behavioral theorists, who believe management may, regardless of shareholder pressures, be influenced by non economic factors, political aspects, personnel preference resulting in a firm which takes into consideration ethics and morals whilst conducting their business.
  • 36. Increase Customer Awareness 22 More recently academics have accepted that CSR has become an important aspect of corporate strategy, this can be attributed to; an increased customer awareness of business operations through global media exposure.
  • 37. Media increases coverage and awareness of; • Sustainability and environmental issues • Health and obesity • International operations; worker conditions, exploitation & human rights • General ethics and morals. 23
  • 43. Ethics 29
  • 45. Paradox 31 not incorporating the minimum requirements of what is deemed socially responsible in the modern business environment can have catastrophic effects in today’s media driven society… and for this reason not taking measures to do so could lower share value, so the argument that a business should concentrate on profit only is somewhat a paradox.
  • 46. “Companies with a defined corporate commitment to ethical principles do better financially than companies that don't.” DePaul University, 1997 32 Furthermore recent research has found that a proactive approach to CSR can result in increased corporate performance
  • 47. An 11-year Harvard University study found that quot;stakeholder-balancedquot; companies showed four times the growth rate and eight times the employment growth when compared to companies that are shareholder-only focused 33
  • 48. Reduced Costs 34 Contrary to widely-held opinion, improved environmental management systems do not automatically result in greater cost. Over time, they improve operational efficiency by reducing waste production and water usage, increasing energy efficiency and in some cases, selling recycled materials.
  • 49. Production of 26 toxic chemicals reduced €5.4m saved per year (yes, we know this isn’t to scale) 35 There are also company specific ways of reducing operating costs e.g. Dow Chemical Co has set themselves a target of reducing production of 26 toxic chemicals which will save them 5.4 million Euros per year BECAUSE IT COSTS THEM A LOT OF MONEY TO PROPERLY DISPOSE OF TOXIC WASTE
  • 50. Enhance brand image and reputation 36 A good reputation is often very hard to build - and yet can be destroyed in less than a day. So much of a company's reputation results from 'trust' by stakeholders. A strong reputation in environmental and social responsibility can help a company build this trust. However, it needs to result from real practices and policies and an integrity towards the companies responsibilities. Stakeholders are not stupid and can see through 'fluff'. Non Government Organisations (NGOs) and local communities are far more willing to not take action as a result of an environmentally-damaging incident if it is evident that the company has genuinely worked hard to prevent it happening in the first place, and has in place solid management practices for rectifying the situation - quickly - and for learning and improving to prevent any repeat occurrence.
  • 51. Increased sales & customer loyalty 37 <The coins will swap round automatically> Research has shown that consumers not only want good and safe products, but they also want to know that what they buy was produced in a socially and environmentally responsible way.
  • 52. Increased sales & customer loyalty 37 <The coins will swap round automatically> Research has shown that consumers not only want good and safe products, but they also want to know that what they buy was produced in a socially and environmentally responsible way.
  • 53. Increase ability to attract and retain employees 38 A company's dedication to CSR can help to recruit and retain employees. People want to work for a company that is in accordance with their own values and beliefs, Employees stay longer, reducing the costs and disruption of recruitment and retraining
  • 54. “78% of employees would rather work for an ethical and reputable company than receive a higher salary” The Cherenson Group 39 Employees are not just worried about promotion and salary any more. <I am now going to pass you over to Jennifer who will be debating the other side of CSR>
  • 55. against. Jennifer Chan. 40
  • 57. CSR or PR? 42 Commercialised. Companies under pressure to be “Green”
  • 58. Green 43 Voluntary? Companies feel obliged to have programmes for fear being singled out and losing competitive advantage. Not the true spirit of implementing CSR. Should be about benefiting society rather than being used as a tool for PR. Important
  • 59. Green Peace? 44 An example of this is with Greenpeace. Greenpeace have a long history of pulling publicity stunts to raise their own profile and funds rather than concentrate on the real matters of CSR
  • 60. Green Peace? 44 An example of this is with Greenpeace. Greenpeace have a long history of pulling publicity stunts to raise their own profile and funds rather than concentrate on the real matters of CSR
  • 61. Video from Greenpeace 45 We want to show you an example of this. Greenpeace last year ran a campaign to get people to create videos which damned Apple for their “green” initiatives. No other manufacturer of PCs was highlighted in this way. Greenpeace were using Apples brand image and publicity for their own benefit. Here is one of the videos
  • 62. 46
  • 63. 47 Used Apple as a publicity tool to benefit their own agenda. Other brands not singled out Hazardous materials in Apple Computers within EU regulations of whats allowed. No worse than other brands, but Apple are an easy and famous target
  • 64. 48 The move prompted Apple to make a response in order to defend themselves against the bad publicity. Long essay was posted highlighting their current status as well as future green initiatives.
  • 65. Weight Recycled as a % of Total Sales 30.0 28 22.5 24 20 15.0 13 7.5 10 6 5 0 2 2 2002 2003 2004 2005 2006 2007 2008 2009 2010 49 Apple pointed out that they lead the industry in respect to weight recycled as a % of past sales But why should they have to do this? Are Greenpeace using bullying tactics?
  • 66. “Apple completely eliminated the use of CRTs in mid-2006. A note of comparison — Dell, Gateway, Hewlett Packard and Lenovo still ship CRT displays today” Steve Jobs 50 Apple retaliated for being singled out - brought other manufacturers into the conversation
  • 67. “....businesses are using corporate social responsibility as a shield behind which to campaign against environmental and human rights regulations. CSR is in some cases counter-productive, worsening relations between business and local communities” 51 This leads me onto the next point... (read quote) the key point here is that CSR is worsening relations. the Greenpeace/Apple thing is an example of this.
  • 68. “....businesses are using corporate social responsibility as a shield behind which to campaign against environmental and human rights regulations. CSR is in some cases counter-productive, worsening relations between business and local communities” 51 This leads me onto the next point... (read quote) the key point here is that CSR is worsening relations. the Greenpeace/Apple thing is an example of this.
  • 70. Benefits are unclear and difficult to measure 53
  • 71. How do you quantify? How do you benchmark? Where do you prioritise? 54 who decides where to invest money.... why do they invest in certain charities etc over others? creates problems on fairness.
  • 72. Diversion of attention from more important issues 55
  • 73. “If efforts to do good become a distraction from the core business they may actually be downright irresponsible” 56
  • 75. $400m donated last year to non-profit organisations throughout the world. 58 Microsoft is the largest contributor in the high-tech industry and one of the largest among all businesses in the United States. Microsoft employees give more per person than any other company's employees.
  • 76. 59 The Microsoft Unlimited Potential programme is perhaps their biggest scheme aimed at CSR. Its about helping individuals around the world have access to affordable technologies in order to transform education, foster local innovation and enabling job opportunities The goal is to create a cycle of sustained social and economic growth for everyone and not just the most economically developed countries
  • 77. 1
bn New computer users by 2015 60 That's also the United Nations' target year for achieving the eight Millennium Development Goals.
  • 78. “It took about 35 years to get about 1 billion people access to computers.....It can't take us another 35 years to reach another 1 billion.” Orlando Ayala, Senior VP for Microsoft Emerging Segments Group, 61 Basic goal was elaborated by Orlando Ayala, Senior VP of the Emerging Segments Group
  • 79. 62
  • 80. 3 Focus Areas 63 transforming education - much like tech has changed the way we learn innovation (put tech into the hands of more people, greater innovation occurs), economic opportunity (amalgamation of the above two.
  • 81. 64 As you can see from the map above, they have activities in most of the worlds countries. <Click> And here are a few pictures of this kind of thing in action - putting technology into the hands of the youth worldwide
  • 82. 65
  • 83. 66
  • 84. Software package for Teachers and Students 67 As part of this, Just a few months ago Microsoft announced that they were to sell a package of Windows, Office and other software to government programs that distribute subsidized PCs to students around the world. Called this the Student Innovation Suite
  • 85. 68 They priced this at just $3
  • 86. If Microsoft doesn't take action, the risk is that there may be billions of these computers that will not have Microsoft software. Although Microsoft wants to quot;make good for the worldquot; by increasing access to computers, it also wants to position its business to be part of the market expansion in countries like China and India. 69 There have been a few critics of this move however. Lots of growth in mobile phones and PCs in these markets. Governments have got wise to Microsofts tactics in Western society and are going with Linux. This represents a huge threat to Microsofts business and hence this move. Get countries hooked on MS software..when they become developed, charge them full price. Catch 22. If they sold at full price these countries couldnt afford it and people would complain that Microsoft isn’t doing enough. Sell them cheap and people become cynical about it. So its a tough situation for MS but I believe they did the right thing
  • 87. 70 Other people saw this as a move against Negoponte’s OLPC... one laptop per child initiative which has a similar goal of putting technology into the hands of children in developing countries. The OLPC runs Linux and NOT Microsoft Windows.
  • 88. “It's a scary concept for Microsoft to have 100 million to 200 million people potentially growing up using open-source software and Linux. Never underestimate the ability of Microsoft to respond to that threat” Steve Kleynhans, Gartner 71
  • 89. 72 Just to wrap this up here is a short video from Microsoft founder Bill Gates who puts the Unlimited Potential programme into his own words
  • 92. Exhaust Evaporative emissions emissions Refuelling losses Pollution Sources In a Car 74
  • 93. Ford has always led the way when it comes to innovation So does it when it comes to reducing the environmental impact of the vehicles Ford was the first vehicle manufacturer in Europe to offer production passenger vehicles with Flexifuel vehicle (FFV) Technology. 75
  • 94. Priced at a similar level to their petrol-only equivalents all the advantages of bio-Ethanol good for the environment and economic as well. 76
  • 95. Ford is the only vehicle manufacturer developing the five serious environmentally advanced technologies of clean diesel, Flexifuel, electric hybrid, hydrogen internal combustion and fuel cell. 77
  • 96. For example, the new Mondeo 1.8-litre TDCi has significantly better performance and fuel economy and produces around 20% less CO2 than the equivalent 1993 Mondeo model 78
  • 97. Ford is committed to sustained progress as many areas as possible that will reduce its impact on the environment – and help people to do so too. These include: wind turbines at Dagenham, solar panels at Bridgend and new recycling initiatives in both its products and manufacturing processes. 79
  • 99. The relationship between the corporation and society is inseparable, in that society needs corporations for products and corporations needs society for profits. 81
  • 100. Profits and CSR are not mutually exclusive but go hand-in-hand. 81
  • 101. The global business environment has changed hence the classical view of corporations to solely make profits is short-sighted. 82
  • 102. “Evidently, embracing corporate social responsibility not only makes good business sense. Those that get left behind are missing business opportunities, competitor advantage and improved management opportunities in this increasingly globalised world. By not engaging in CSR, companies are not only under managing their impact on society and the environment, they are under managing their own economic self-interest.” 83
  • 103. While there are some who abuse it, we feel that everybody - MNE’s, Governments and Citizens have to take responsibility for CSR, because if we don’t...... who will? 84
  • 105. 86 “So just to close this up are there are questions?”
  • 106. ? 86 “So just to close this up are there are questions?”