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Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Learning objectives of the CSR training
Introduction of Redmine – Interactive Group Work „using redmine for project implementation“
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Sustainable development
“Humanity has the ability to make development sustainable - to ensure that it meets the needs
of the present without compromising the ability of future generations to meet their needs.”
1992 Rio Declaration on Environment and Development, and the subsequent establishment of
the “AGENDA 21”
What exactly does “Sustainability” mean and what does it entail for businesses?
Source: http://www.worldinbalance.net/pdf/1987-brundtland.pdf
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Historical background of Sustainability – from forestry to mainstream
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Current views and definitions
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Reasons for Sustainability Management – Why?
¾ Credibility and reputation is a valuable non-tangible asset (also for situation of crisis)
¾ Prevention of conflicts with authorities and stakeholders
¾ Attraction of suitable employees and satisfaction of customers
¾ Defensive focus (communication with stakeholders) e.g. MNCs or industries like chemicals,
pharmaceuticals, military, oil, automotive
¾ Offensive focus (sustainable products and services), e.g. food, textile, finance
¾ Good corporate citizenship is a sound investment
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Systematic integration of CSR issues into business operation – Why?
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Social Responsibility – working draft 4.1 ISO 26.000
Responsibility of an organization for the impacts of its decisions and activities (products,
services and processes ) on society and the environment, through transparent and ethical
behavior that:
http://iso26000.jsa.or.jp/_files/doc/2008/iso26000_wd4.1.pdf
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Guideline Social
Responsibility –
working draft 4.1
ISO 26.000
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Reasons and impacts of CSR
¾ Address the link between the stakeholders’ interests and the responsibilities of the organization
¾ Determine how best to increase the beneficial impacts of the organization’s activities and how
to decrease any adverse impacts
¾ Fulfill legal obligations (e.g. to shareholders or to employees) and address conflicting interests
(between the organization and the stakeholder or between various stakeholders)
¾ Reconcile conflicts of interests
¾ Improve decision making through better understanding of impact and consequences of actions
¾ Contribute to continuous learning by the organization
¾ Provide the organization with the benefits associated with obtaining diverse perspectives
¾ Help an organization review its performance so it can improve it
¾ Increase transparency and the credibility of its communications
¾ Provide a basis for cooperative activity such as partnerships
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Examples of standards which contribute to CSR
Industry standards
Workplace standards
– Textile
– SA8000 (Social Accountability International)
• ÖkoTex Standard 100Plus
– ILO-OSH-2001 (International Labor Organization)
• Purewear
– OHSAS 18001 (various worldwide Standardization Bodies)
• European Eco-Label
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
BSCI Code of Conduct / แนวทางปฏิบัต ิข อง BSCI
¾ Aims to attain compliance of MNC and their suppliers with social and environmental standards
¾ In accordance with international conventions and laws (ILO Conventions, UN Universal Declaration of
Human Rights, UN Conventions on children's rights and the elimination of all forms of discrimination
against women, UN Global Compact, OECD Guidelines for Multinational Enterprises)
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Consumer group CSR evaluation schema by ‘Stiftung Warentest’
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
‘Stiftung Warentest’ – Case Work March 09
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Attitude and commitment on social issues
Com plying with international m inim um social standards (e.g. Code of Conduct)
Com pliance with the OHS standards throughout the com pany is explicitly expressed
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Social Issues / Employees – measuring results of implementation
Measures for im provem ents are introduced on the basis of these results
Lower share
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Supply chain management - social issues
Supply chain management - social issues
The com pany offers free advice and training for buyers and sub-contractors
Non-com pliance results in the im plem entation of certain m easures and sanctions if applicable
Com pliance with social standards is regularly surveyed
Com plying with m inim um social standards is a pre-requisite for every signed delivery contract
0% 5% 10% 15% 20% 25% 30% 35% 40%
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Environmental performance
Motivation system to im prove environm ental perform ance in production and acquisition
Em ployees are actively involved in environm ental protection throughout the com pany
Environm ental indicators are defined in order to m onitor achievem ent of targets
Measurable environm ental targets have been approved
Responsibility for environm ental protection concerns is integrated in product developm ent
Responsibility for environm ental protection is allocated within the m anagem ent
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Monitoring / publishing of company data on material and energy consumption
Other data: transportation kilometres, noise, production accidents, complaints from the neighbourhood
Water emissions: waste water quantity and pollution (especially COD, heavy metals)
Air emissions: climate relevant pollutants (CO2), nitrogen oxides, sulphur dioxide, airborne dust
Data is collected from several Data is collected from some Data is collected from a few Data of material and energy
areas and published areas and published areas and published consumption is not collected
and published
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Complaint management system to increase customer satisfaction
Customer complaints
All custom er com plaints are docum ented and system atically evaluated
Em ployees are given regular training in dealing with custom er com plaints
Defined targets for dealing with com plaints and actively com m unicates them to em ployees
W ritten declaration of service and quality standards for custom er com plaints
W ritten declaration of responsibility within the organisation for com plaint m anagem ent
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Consumers and society - community involvement
Community support
Prom otion of projects, which im prove OHS of the em ployees of sub-contractors or suppliers
Annual donations in the form of m oney, m aterial goods or services for environm ental, social aim s
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Why is your company interested in applying CSR?
Community pressure
Competitive pressure
Philanthropy
Differentiation opportunities
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Market forces that could drive the need for organizations to address CSR
1. Economic considerations
2. Ethical considerations
3. Innovation and learning
4. Employee motivation
5. Risk management or risk reduction
6. Access to capital or increased shareholder value
7. Reputation or brand
8. Market position or share
9. Strengthened supplier relationships
10. Cost savings
KPMG's International Survey of CSR Reporting (2005). This report surveyed more than 1,600 companies worldwide and
documented the top ten motivators driving corporations to engage in CSR for competitive reasons.
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Valuing corporate social responsibility
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Consequences for action
1. Potential for shareholder value from environmental, social, and governance programs
needs to be better understood.
2. Stakeholders needs and demands are the base for meaningful changes.
3. Applying systematic performance evaluation (data gathering, evaluation and corrective
action) can drive systematic improvement
4. The integrating of effects and impacts of environmental, social, and governance
programs with the rest of the company’s finances / performance assessment is crucial.
5. The role of employees in the value adding process can be enhanced through CSR.
6. Opportunities of environmental, social, and governance programs to create new revenue
streams is not sufficiently recognized. Holistic integration of CSR issues in business
planning and reporting is the base to tap these opportunities.
7. Communication and corporate culture are keys to CSR.
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Further reading
¾ Corporate sustainability: What is it and where does it come from?, Mel Wilson, Ivey Business Journal
Online, 2003
¾Sustainability Management in Business Enterprises, Concepts and Instruments for Sustainable
Organisation Development, Schaltegger, Herzig, Kleiber, Müller, published by The Federal Ministry for
the Environment, Nature conservation and Nuclear Safety (BMU), Division for Environment and
Economy, Eco-Audit
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Further reading, information and networking – www.sustain-asia.org
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Performance
Reporting
Controlling
Assessment
Continuous Improvement
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Strategy
Development
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Implementation
Planning
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Company Medium-Term Strategy
Increase the company’s profits by international expansion and differentiation
through sustainability
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Financial Perspective
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Financial Perspective
Customer Perspective
Goal KPIs Target Activity
Goal Key issues Target Activity
Increase profit • Profit margin • +50 percent Align company processes to
Be recognized as • Positive media • 6 reports in Use PR instruments to
margin for own- • Production costs • -10 percent sustainability principles to
a sustainable reports local, 3 in communicate company’s
branded products • Selling price • +60 percent differentiate products and
company international commitment to sustainability.
• Overhead costs • -5 percent create added value for
media Develop co-branding/co-selling
customers
• Consumer survey • +35 percent strategy with sustainable
score • +25 percent products.
• Marketing budget
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Financial Perspective
Customer Perspective
Goal KPIs ProcessTarget
Perspective Activity
Goal KPIs Target Activity
Increase profit
Goal as • Profit margin
Key issues • +50 percent
Target Align company processes
Activityto
Be recognized • Positive media • 6 reports in Use PR instruments to
margin for own- • Production costs • -10 percent sustainability principles to
a sustainable
Green production reports
Recycled materials local,
40 3 in
percent communicate company’s
Analyzeproducts
production
•
branded products • Selling price •
• +60 percent differentiate andprocess
company
processes as input international commitment to sustainability.
• Overhead costs • -5 percent createfrom a holistic
added perspective and
value for
• Hazardous media Develop
• Decrease or customers co-branding/co-selling
identify potential to green the
• Consumer
materialssurvey • +35 percent to 10 strategy
substitute with sustainable
production process, e.g.
score • +25 percent
percent products.
through substitution, reduction
• Marketing
• Energy budget • Use 40 percent and avoidance .
consumption from RES
Provide products
Flexibility of • Customer
• Lead-time • +50 percent
• -10 percent Engage customers
Improve to surveythrough
order planning
tailored to
production satisfaction
• Set-up time • -15 percent needs and identify
effective trends,
customers focus
involvement
customers’
processesneeds • Loyalty
• Time ratio (re-
to customer • 50• -20
percent
percent also on buying habits.
(design)
buy rate) Training of staff,
Optimization of internal and
external logistic, optimize
supplier management
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Financial Perspective
Customer Perspective
Goal KPIs ProcessTarget
Perspective Activity
Goal KPIs Target Activity
Increase profit • Profit margin
Goal as • Positive media People and
KPIs • +50Knowledge
percent Perspective
Target Align company processes
Activityto
Be recognized • 6 reports in Use PR instruments to
margin for own- • Production costs • -10 percent sustainability principles to
a sustainableGoal
Green production reports Keymaterials
• Recycled issues local,
• 40 3 in Target communicate
percent Activity
company’s
Analyze production process
branded products • Selling price • +60 percent differentiate products and
company
processes as input international commitment to sustainability.
Improve • Overhead • Training
costs of staff• -5 percent createfrom
• 6 hours / month a holistic
Provide
added perspective
production
value for and
related
knowledge based • Hazardous media
• Decrease
• 2 courses Develop
or / year co-branding/co-selling
identify potential
training, set upto ofgreen the
knowledge
customers
value creation • Consumer
materialssurvey • +35 •percent
substitute to 10 strategy
30% increases with sustainable
production
managementprocess, e.g. Value
system,
score • +25 percent
of CIP impact products.
percent through
addedsubstitution,
products through reduction
new
• Marketing
• Energy budget
• R&D costs • Use 40 percent and
• 25 % increase to designsavoidance .
consumption from RES
production cost
Provide products
Flexibility • Customer • +50 percent Engage customers to survey
Cultureofof • Lead-time
• Employee • -10 percent
• 85 percent Improve order planning
Anonymous employeethroughsurvey to
tailored to
production satisfaction
• Set-up time • -15 percent needs and identify
effective customerstrends, focus
involvement
sustainability
customers’ satisfaction identify
buyingproblems,
habits. set up of
processesneeds • Loyalty• Time ratio
to (re-
customer
• Improvement by
• 50• -20
percent
percent
• 15 suggestions
also on
(design)
incentive schema, CIP
buy rate) Training of staff,
employees per quarter networking events,
• Recruitment of • +20 percent Optimization of
communication internal
platform,and
Univ. Gradates applications external logistic,
improving optimize
working atmosphere
supplier management
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Performance
Reporting
Controlling
Assessment
Continuous Improvement
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Development of a CSR Performance Assessment Systems
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Performance assessment / closed-loop controls
Company
Top Management
Information flow
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Procedures, Responsibility and Competences
CEO
Director
Manager
Master
Forman
Employee
A B
levels
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Challenges for CSR activity implementation & performance controlling
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Further reading / listening
¾ Leveraging the Balanced Scorecard for Social Responsibility and Reporting, Michael E Nagel,
Balanced Scorecard Collaborative, Inc., 2005, webcast (Why the Balanced Scorecard is a powerful
tool for managing and communicating corporate social responsibility)
¾Sustainability management with the Balanced Scorecard, Thomas Bieker, Institute for Economy
and the Environment at the University of St. Gallen (IWOe-HSG)
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Ensuring business performance and competition levels
From resource and labor intensive to more knowledge based production pattern through
adaptation of advanced business management practices
World Bank ranking Thailand – overall business efficiency index versus knowledge economy index 34 – 56
(business performance versus base for economic success)
¾ Total Factor Productivity (TFP) is regarded as technical productivity
Statistical method to determine economic development drivers
Technology growth and efficiency main sub-sections of TFP
¾ Knowledge economy index reflects ability to employ technological progress for economic prosperity
World Bank survey of over 20.000 businesses in low- and middle-income countries
Result: companies using ICT were found to have 60% higher profits and 15% higher re-
investment rates, the value added per employee was about 3.400 US$ higher (average base of
value added per employee / a: 7.000 US$).
The Global Competitiveness Index rankings, 2007–2008 comparisons, World
Economic Forum
The Role of ICT in Doing Business, Information and Communications for
Development, 2006, World Bank, www.worldbank.org/ic4d
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Adaptation of advanced business management – key areas and approaches
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
General requirements for the adaptation of advanced business management
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Reasons for insufficient level of ICT adoption
Poor service of support infrastructures While basic infrastructures and ICT equipment are accessible in Thailand, service
result in limited business access and and support infrastructures are underdeveloped.
low application levels
Most advanced ICT products are ICT firms used to target large enterprises (budget, HR to run state-of-the-art ICT).
designed for larger firms, not SMEs These products are often too expensive and too complex for SME users.
Limited ICT literacy of SME owners Many SME owners are unfamiliar with operating a computer, skeptical of the
hinders their ability to choose concrete benefits for the core business, and share the stereotype that advanced
ICT is only for larger companies.
Limited ICT literacy of employees in Even if SME owners have a strategic understanding of why they should adopt
SMEs hinders ICT adoption ICT, their staff is often poorly trained. Training costs both time and money –
resources that SMEs usually lack.
Adopting ICT is not a technical ICT is a difficult task for companies of all sizes, whether they are in developed or
challenge developing countries. The main challenge is, it must go along with organizational
and structural changes in companies.
Lack of financing options limits SME IT budgets are usually small or nonexistent. In addition, adopting ICT is not a one-
ability to purchase ICT time cost because there are ongoing costs of maintaining and upgrading
hardware and software, and human capacity building.
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
ICT for business management
Sustainable business success needs adequate controlling and supporting systems. A large
number of Thai companies are not prepared for the future! ? (IT&C FORCE 04)
IT systems used to support controlling and management tasks and real benefit (or benefit from future use)
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Selected advanced ICT for business management
Examples for SM approach Function Link
advanced ICT
Open Bravo, SoFi Resource Management, Indicator based process monitoring from http://forge.openbravo.com,
CSR, Environmental manufacturing process to supply chains www.pe-international.com/sofi
Cost Accounting and Enterprise Resource Planning
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Resource flow analysis
www.modiconsult.com
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Open Source Software
¾ Computer software for which the source code are provided under a variety of software license
License examples: Apache License, GNU General Public License, GNU Lesser General Public License,
MIT License
GNU General Public License most popular (about 2/3 of projects listed on SourceForge.net)
¾ Permits users to use, change, and improve the software under specified conditions
¾ Permits to redistribute it in modified or unmodified forms under specified conditions
¾ Often developed in public or collaborative manner
web-based source code repositories offer centralized location for developers to control and
manage open source software development projects
e.g. SourceForge, world largest development site, more than 230,000 projects with over 2 million
registered users, 34 million unique visitors each month
¾ Linux, MySQL, Firefox, WordPress, xt:commerce, Elgg, OpenOffice, Redmine …
http://en.wikipedia.org/wiki/Open_Source_Definition
http://sourceforge.net/
http://opensource.yeebase.com/top100
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Redmine - www.redmine.org
¾ Flexible project management web application to manage, document and track work
¾ Written in Ruby on Rails framework
¾ Open source and released under the terms of the GNU GPL v2
¾ Multiple data base support Issue management system
Refers to the discipline and process of managing business tasks
Workflow, communication support and controlling
Typical application: complaint, suggestion and project management
¾ Main features:
Multiple projects support, flexible role based access control
Flexible issue tracking system, news, documents & files management
Feeds & email notifications, per project wiki and forums
Time tracking, custom fields for issues, time-entries, projects and users
Multilanguage support, Multiple databases support (MySQL, PostgreSQL or SQLite)
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Redmine – example for issue workflow
¾ Typical issue workflow [issue submitted] -> [open] -> [assigned] -> [solved] -> [in evaluation] ->
[closed]
¾ Often tasks and work are completed in loops [assigned]
¾ Example for electronic workflow with regard to roles:
1. issue submitted by a customer, salesperson, employee
2. issue is relocated to the responsible employee’s inbox
3. employee evaluates the issue and fulfills the task
4. In case task can not be completed issues is assigned to the next appropriate employee
(workflow) until task is completed
5. When task is completed result will be evaluated and closed
6. Originator will be notified
¾ Workflow, inputs and outputs fully documented in the system
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Objectives
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Example for combining tools and services for on demand application
Müller, Opierzynski
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Further reading
¾ Small and Medium Enterprises and ICT, Vadim Kotelnikov (Foreword by Kim Hak-Su), UNDP-
APDIP, APCICT, 2007
The e-primer looks at how the knowledge-based economy has impacted small and medium
enterprises (SMEs); explores why so few SMEs have adopted why SMEs should adopt ICT;
provides policy recommendations for promoting SME adoption of ICT.
¾ The Role of ICT in Doing Business, Information and Communications for Development, 2006,
World Bank, (IC4D is a regular publication of the World Bank on the critical role of ICT in economic
development. www.worldbank.org/ic4d
¾ Towards a Knowledge Economy in Thailand, Office of the National Economic and Social
Development Board, World Bank, 2008 (Fundamental reasons for Thai SMEs to switch to more
sustainable and innovation-based development patterns)
¾ How businesses are using Web 2.0, McKinsey Global Survey
¾ IT’s unmet potential, McKinsey Global Survey Results, 2008
Müller, Opierzynski
CSR Training for Industries, 2009