What is Corporate Social Responsibility? - InnoTrain CSR

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and documented along the entire value chain, for example with sustainability reporting. For companies benefiting strongly from their market value, a lack of knowledge about the details of the value chain represents a high risk due to the pressure from the media and public associated with scandals. US billionaire and major investor Warren Buffett brings it to the point: "It takes ten years to establish a positive image for a company but only ten seconds to loose it." However, advantages along the value chain are found for example for small and medium-sized enterprises (SMEs) as suppliers of large operations. With growing calls for transparency and CSR in large companies which are much more heavily scrutinised by the media, NGOs and the public than small enterprises, SMEs are able to position themselves as safe and sustainably reliable partners in the competition of suppliers thanks to their own CSR strategy. As well, with the socially and ecologically-focused consumer group of LOHAS (Lifestyle of Health and Sustainability), companies with a responsible value chain or one consistently focused on the region, are increasingly gaining importance. An important aspect that is in favour of a value chain within a specific region is to keep the transport of merchandise low. It allows for both cost and energy efficiency. The value chain concept illustrates the added value for the consumer based on all corporate activities used to create the final customer product or the final service. As regards to competition, the value chain can be focused on achieving a competitive edge through cost leadership (price/costs, standard production) or follow a differentiation strategy (performance/quality, uniqueness/CSR) within the industry. The value chain is comprised of primary and secondary activities which may develop within and outside of a company. Aside from the production, primary value chain activities include the logistics or service, i.e. direct performances used for the physical alteration of the product, such as for example � conversion of raw materials � customer service after selling products Secondary value chain activities are used for the conservation of the primary activities, for example � procurement management � technical processing � Human resources management Methods for the value chain analysis can comprise an internal cost analysis, internal differentiation analysis and a vertical correlation analysis. This is how competitive advantages can be generated with the components of the value chain, mainly cost The project "InnoTrain CSR" is organized by GILDE GmbH and has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. 12/2010 , InnoTrain CSR www.csr-training.eu
savings potentials. But these opportunities on the cost side can at the same time represent risks in other areas. Exercise 3.2. (approximately 60 minutes) Ask the participants in small groups to research branded companies which made headlines because of child labour. The groups are asked to research at least two sources on the respective event. The sources should illustrate developments and consequences for the company and refer to different points of view for example from the media, on the part of the company or from NGOs. At the end, every group will be asked to present their research results. Discuss the following questions and attitudes amongst others: � Can the request to abolish child labour be transferred from the western value system to developing countries? � Are western branded companies obligated because of their power in the market to campaign for an improvement of the local conditions in the host countries? � Should the money spent for elaborate image or CSR campaigns of branded companies be used directly for the improvement of the situation of the workers in the host countries (e.g. by means of educational programmes for former child labourers)? Additional information and resources Michael E. Porter: “Competitive Advantage: Creating and Sustaining Superior Performance” (Frankfurt/Main 1998) Europa InterCluster: White Paper - The emerging of European World-Class Clusters (in Hungarian) http://vallalkozasfejlesztes.mconet.biz/index.php?action=fullnews&id=568222&catego ry=1821 White Paper - The emerging of European World-Class Clusters (in English) http://www.intercluster.eu/images/stories/white_paper/white_paper_the_emerging_of _european_world_class_clusters.pdf The project "InnoTrain CSR" is organized by GILDE GmbH and has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. 12/2010 , InnoTrain CSR www.csr-training.eu
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What is Corporate Social Responsibi
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Additional information and resource
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Corporate Social Responsibility (CS
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Gerd Mutz: CSR und CC - Gesellschaf
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Danone is producing "Schokti Doi" y
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Moral values � Integrity � Fair
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CSR on the market - example topics
Page 21 and 22: Opening questions about CSR on the
Page 23 and 24: What is Corporate Social Responsibi
Page 27 and 28: Commission is striving to develop a
Page 29 and 30: In small and medium-sized companies
Page 31 and 32: and all processes within the compan
Page 35 and 36: In your role as auctioneer, you can
Page 37 and 38: Facts & figures about CSR 2.1. CSR
Page 39 and 40: it be in economic, social or enviro
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Page 47 and 48: state that they would recommend a b
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Page 55 and 56: participating entrepreneurs and man
Page 57 and 58: Facts & figures about CSR 2.8. Insi
Page 59 and 60: GKI Zrt. Economic Research Surveys
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Page 75 and 76: From the point of view of CSR, the
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Page 107 and 108: Or in the UK: The Co-operative Bank
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Page 111 and 112: Austria: The Austrian label for the
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Page 119 and 120: Strategic tools for CSR 4.7. Models
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Strategic tools for CSR 4.8. Mentor
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Experience report from "Jelena" "I
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Strategic tools for CSR 4.9. "Carbo
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The Carbon Label (UK) http://www.ca
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foundation equity, but exclusively
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Fields of action of CSR 5.1. CSR at
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Fields of action of CSR 5.2. Corpor
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Ask the participants to develop pro
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The following are mainly at the cen
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Fields of action of CSR 5.4. CSR in
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Communities can promote corporate C
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Fields of action of CSR 5.6. CSR an
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Fields of action for CSR 5.7. CSR i
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advances, innovation, research and
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Fields of action of CSR 5.9. CSR an
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Fields of action of CSR 5.10. Ethic
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5. Should independent institutions
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concerns of the stakeholders into d
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sections of the public to define ta
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Communication of CSR 6.3. The delic
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At the end of the partner exercise,
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Especially for smaller enterprises
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Communication of CSR 6.5. In-house
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Első Magyar Vállalati Felelőssé
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framework provides the application
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Communication of CSR 6.7. Practical
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expansion of own web platforms and
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Communication of CSR 6.9. CSR-relev
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Example 1) "Hello, now it is time f
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4. Tour of the company (what does C
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Best practice examples of CSR 7.1.
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Eelco Hoedemaker Head of Innovation
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Ask your participants to formulate
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Transcript for the narrators in the
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Susanna Kroll Manager of the lobby
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How can CSR be optimised at the loc
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facilities and to develop a corpora
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Luís Costa „Ecovalor“-Program
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Group work to enhance the expertise
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Pritchard Englefield is a law firm
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David Glass Partner at Pritchard En
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originated from improvements sugges
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- Higher productivity, obtained thr
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Engagement for disadvantaged youth:
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harmful greenhouse gases tops the l
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additional flipchart paper to integ
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production at a high technical leve
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For what reasons is the company pur
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sustainability, the company hopes t
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vocational training. Moreover, WBM
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Exercise 7.12. (approximately 60 mi
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ecological environment, the topic r
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The fundamental stock-taking and as
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Simple steps to build your CSR stra
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plenum. In the discussion, consider
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questions. In doing so, the answers
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participants at the table are suppo
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B) Which additional values can be p
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http://ec.europa.eu/enterprise/poli
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The "Responsible partner" network i
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Subsidy award "Sustainable medium-s
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system. As a result of the company'
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What should CSR consultation pay sp
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