Transcript Document
Communication in Corporate social responsibility
Andris Petersons, Dean of Public Relations Faculty, School of Business Administration
Turiba
Small people talk about a people Medial people talk about a thinks Great people talk about an ideas
Free Communication Model in Liberal Market
Rationality
Freedom of decision making and private property
Competition
Balance
Characteristic Purpose Publicity Four models of Public Relations Public Information Two-Way Asymetric
Propaganda Dissemination of information Scientific persuasion
Two-Way Symetric
Mutual understanding
Nature of Communication Communication Model
One-way, complete truth not essential One-way, truth important Source – Rec.
Source – Rec.
Two-way imbalanced effects Two-way, balanced effects Source = Rec.
Group =Group
Nature of Research Where Practiced Today
Little,
Counting house
Sports, theatre, product promotion Little, readibility, readership Govermnment, nonprofit associations, business Formative, evluative of attitudes Competitive business, agencies Formative, evaluative of understanding Regulated business, agencies
J.Grunig & T.Hunt
Communication
Any act by which one person gives to or receives from another person information about that person's needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional, may involve conventional or unconventional signals, may take linguistic or nonlinguistic forms, and may occur through spoken or other modes
Source (encoder/decorder)
Feed-back Noise Message
Destination (decorder/encorder)
Corporate Social Responsibility
The voluntary commitment of businesses to include in their corporate practices the economic, social, and environmental criteria / actions, which are above and beyond legislative requirements, and are related with everyone influenced by their activities .
Social CSR Environmental Economic
CSR Benefits
• Enhanced brand value and reputation.
• “Positive Image” to stakeholders.
• “Positive Image” to investors, based on trust relationships with shareholders.
• Introduction to special financial and banking assessment indicators.
• Greater societal recognition.
• Better risk and crisis management.
• Workforce satisfaction.
• Good relations with government and communities.
Stakeholders of the Organisation
Stakeholders are those who are interested in and are affected by the strategy, operation and the overall actions of a company
Corporate Stakeholder Performance Expectations
“How you will fill in the gap?”
Stakeholders Identification
Primary stakeholders
existence – The stakeholders who are critical to the company’s & activities (directly affect the company or are affected by the company)
Secondary Stakeholders
– The Stakeholders who are affected indirectly by the company activities & decisions Government/E.U
Financial Analysts /Rating Indices Employees Shareholders Media Activists/NGOs Customers Company Communities Environment Religious groups Suppliers Competitors
Independence of Media
Owner Editor Reporter Technical department Department of Advertising Audience Partners
Media as a Filter of Information
Enterprise Media Society
Direct Communication
Media Enterprise • • • •
Health and safety at work Adaptation to change Local Communities Human rights
Stake holders
Equality Provide jobs, wages benefits and tax revenues locally Finding suppliers and clients locally Interaction with local physical environment Be responsible and active against polluting activities Assist in community causes (vocational training places, environmental activities, recruitment of socially excluded people, sponsoring local sports and events, donations to charitable activities) Adopt Codes of conduct for the protection of the global and local environment Reduce consumption of resources and polluting emissions Encourage better environmental performance throughout the supply chain
Public Report
The Public Report is suggested to be published regularly showing the commitment (present and future) of the organisations which are meeting the values for sustainable development 52% of the Fortune 250 Largest organization publish
an autonomous yearly CSR report
(KPMG Research 2005) • • •
Economic effectiveness, transparency and ethical behaviour Social accountability Environmental care and protection
• European Business Ethics Network
EBEN is the largest non-profit organisation for the promotion and advancement of the philosophy and issues related to Business Ethics, Corporate Governance and Corporate Social Responsibility.
• Global Reporting Initiative (GRI)
The mission of the GRI - to develop globally accepted sustainability reporting guidelines through a global, multi stakeholder process.
• UNDP & Global Compact
The Global Compact is a purely voluntary initiative with two objectives: Mainstream the ten principles in business activities around the world & Catalyse actions in support of UN goals
The Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.
Labour Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies
Anti-Corruption
Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.
Global Reporting Initiative (1)
The Global Reporting Initiative (GRI) is a multi stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. The Guidelines are for voluntary use by organisations for reporting on the economic, environmental, and social dimensions of their activities, products, and services. Started in 1997, GRI became independent in 2002, and is an official collaborating centre of the United Nations Environment Programme (UNEP) and works in cooperation with UN Secretary-General Kofi Annan ’ s Global Compact
Reporting (2)
Transparency
: Full disclosure of the processes, procedures, and assumptions in report preparation are essential to its credibility.
Inclusiveness
: The reporting organisation should systematically engage its stakeholders to help focus and continually enhance the quality of its reports
Audit ability
: Reported data and information should be recorded, compiled, analysed, and disclosed in a way that would enable internal auditors or external assurance providers to attest to its reliability.
Completeness
: All information that is material to users for assessing the reporting organisation’s economic, environmental, and social performance should appear in the report in a manner consistent with the declared boundaries, scope, and time period.
Reporting (3)
Relevance
: Relevance is the degree of importance assigned to a particular aspect, indicator, or piece of information, and represents the threshold at which information becomes significant enough to be reported.
Sustainability Context
: The reporting organisation should seek to place its performance in the larger context of ecological, social, or other limits or constraints, where such context adds significant meaning to the reported information.
Accuracy
: The accuracy principle refers to achieving the degree of exactness and low margin of error in reported information necessary for users to make decisions with a high degree of confidence.
Neutrality
: Reports should avoid bias in selection and presentation of information and should strive to provide a balanced account of the reporting organisation’s performance.
Reporting (4)
Comparability: The reporting organisation should
maintain consistency in the boundary and scope of its reports, disclose any changes, and re-state previously reported information
Clarity: The reporting organisation should remain
cognizant of the diverse needs and backgrounds of its stakeholder groups and should make information available in a manner that is responsive to the maximum number of users while still maintaining a suitable level of detail
Timeliness: Reports should provide information on
a regular schedule that meets user needs and comports with the nature of the information itself.
CSR Report Suggested Requirements
Section 1 Section 2 Section 3 Statement of the organisations mission, vision and values and its strategy regarding its contribution to sustainable development Statement from the CEO describing key elements of the report Organisational Profile including name of reporting organisation nature of ownership, legal form major products and / or services, including brands if appropriate operational structure of the organisation description of major operations, operating companies, subsidiaries, and joint ventures countries in which the organisations operations are located nature of markets served.
list of stakeholders code of conduct Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Contact person(s) for the report, including e mail and web addresses Social Responsibility (enablers and results) Environmental Responsibility (enablers and results) Economic Responsibility (enablers and results) List of future objectives and actions the organisation is committed to implement regarding each dimension Appendices and glossary
Top of Reputation 100 Latvia’s enterprises
1. Hansabanka
2005
2. Latvijas Mobilais telefons 3. Aldaris 4. Lido 5. Laima 6. Parex banka 7. SEB Unibanka 8. Latvijas balzams 9. Rimi Latvija 10. Spilva Source: Diena & Porter Novelli 1. Hansabanka
2006
2. Latvijas Mobilais telefons 3. Lido 4. Aldaris 5. Laima 6. Parex banka 7. Rimi Latvija 8. SEB Unibanka 9. Latvijas balzams 10. Lattelekom Source: Diena & Porter Novelli
Experience of Hansabanka – leading business organisation in Scandinavia and Baltic
Direct communication with society Internal communication Communication with media