The Development of CSR

(Corporate Social
Responsibility)
Bengt E. Johansson
Former Swedish CSR Ambassador
SHU MBA in Shanghai and Suzhou
December 2015

Plan for CSR course

1. Lectures in Shanghai and Suzhou December 201

2. One group work every day incl. 10 minutes group
discussion and notes to be discussed.
3. Students will write report on CSR work in their
own or foreign companies of at least 500 word
Deadline 10 Jan 2016
4. Continued seminar in Shanghai 27 Feb 2016
5. Discussion of individual reports on Feb 27
6. Seminar on Feb 28 with foreign CEOs

Themes
1.

CSR definition. Is philanthropy CSR?

2.

Use of ranking lists. Worldwide comparisons

3.

CSR reporting systems and tools

4.

Have companies responsibility for HR?

5.

Do companies respect labour and social rules?

6.

Gender and diversity issues

7.

Environmental impact

8.

Supply chain issues

9.

Anti-corruption

10. CSR in China

11. Trends

Abbreviations used
BSR
BSCI
EU
GRI
ILO
MOFCOM
OECD
SASAC
SDGs
UNDP
UNGC
UNGP
UNICEF

1. Definitions
The responsibilities of companies for their
impact on society
from EU Commission
Which are the CSR issues?

Business and human rights

Social/labour rights
Environment
Anti-corruption
from UN Global Compact www.unglobalcompact.com
Main international framework

OECD Guidelines for Multinational Companies

10 principles of UN Global
Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights
Principle 2: make sure that they are not complicit in human rights abuses.

Labour
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;
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 corruption in all its forms, including extortion and
bribery.

CSR vs. philanthropy

European versus US view

It is not the question what you do with your profit but

how you earned it
CSR in industrial countries versus developing countries

Do companies have to perform duties in developing

countries that are taken care of by the state in our
countries?
Countries have different policies on tax deductions for
philanthropy.

CSR is not about abiding to

the law but doing something
over and above the law
Unsolved
problems
TRUST

CSR

LAW
LAW

Will CSR work terminate if all issues are included in legislat

High trust society

vs.

Low trust society

2. Use of ranking lists

Most credible source NGOs
Least credible source governments, media
Most quoted ranking lists are:
Dow Jones Sustainability Index, DJSI Robecco SAM
Global 100 Corporate Knights
FTSE4Good Financial Times Stock Exchange

w Jones/Robecco SAM Sustainable Yearbook 20

Distribution Americas - Europe - East Asia

Source Robecco SAM 2014, Fortune 2015

Robeco SAM Sustainability Yearbook

Leaders
Country
USA
UK
Japan
South
Korea
France
Germany
Australia
Spain
Canada
Netherland
s
Italy
Switzerlan
d
Brazil
Finland
South
Africa
Sweden
Taiwan

2014
79
52
39

Gold
2015 2014 2015
76
10
9
50
4
7
39
5
5

38
35
25
25
20
17

36
34
27
20
20
17

8
5
8
5
1
3

7
5
4
4
1
2

16
15

16
13

2
3

4
4

14
12
10

16
12
9

4
1
1

4
1
1

9
7
8

6
10
8

1
1
3

1
3

Colombia

Thailand

Norway
Portugal

5
4

1
2

4
4

Country
Switzerla
nd
Finland
Australia
Netherla
nds
Norway
UK
Sweden
South
Korea
Denmark
France
Canada
Spain
Portugal
Belgien
Japan
Germany
Taiwan
USA
Italy
South
Africa
Colombia

Leaders Populatio Leaders/po

2014
n
p
14
10
25

7
5
20

2,0
2,0
1,3

16
5
52
7

16
5
60
9

1,0
1,0
0,9
0,8

38
3
35
17
20
4
4
39
25
8
79
15

49
5
63
33
46
10
10
126
82
27
314
60

0,8
0,6
0,6
0,5
0,4
0,4
0,4
0,3
0,3
0,3
0,3
0,3

9
8

43
44

0,2
0,2

3. CSR reporting
Global Compact CoP-Communication on Progress
Global Reporting Initiative GRI version 4
ISO 26 000 self reporting, not certifiable
EU decision 2014 (public interest entities >500 employees)
How to find sustainability reports of companies
CoP Look under What is Global Compact and then See who
is involved
Write company name in search field after Our Participants
GRI Go to USEFUL PAGES and chose Disclosure Database
Type company name and search, if need with limitations

3. CSR networks
Major CSR networks
UN Global Compact www.unglobalcompact.com
BSCI - Business Social Compliance Initiative
BSR Business for a better world
CSR Europe, CSR Asia, ASEAN CSR Network,
Arabia CSR etc.
Many low carbon business networks

UN Global Compact business signatories

(companies + SMEs) 2014-15
Country
Spain
France
Mexico
Brazil
USA
China
Colombia
Japan
Germany
UK
Denmark
Argentina
Turkey
India
Myanmar
Italy
Sweden
South
Korea
Indonesia
Australia
Norway

Sept 2014
1255
890
336
n.a.
308
226
n.a.
211
255
229
259
168
129
150
n.a.
n.a.
164

Nov 2015
2068
1678
768
681
637
476
470
424
420
400
377
372
306
294
267
261
246

159
41
75
85

241
135
133
133

Philippines
Poland
Switzerland
Kenya
Ukraine
Iraq
Netherlands
Pakistan
Canada
UAE
Egypt
Singapore
Lithuania
South Africa
Belgium
Russia
Vietnam
Austria
Tunisia
Bangladesh
Serbia
World total

Sept 2014
n.a.
55
74
59
n.a.
113
90
n.a.
54
47
41
n.a.
54
54
40
34
17
37
19
23
27

Nov 2015
131
128
125
120
120
118
118
119
116
100
107
98
91
81
77
64
63
58
55
52
37
15383

4. Business and human rights

5. Labour and social issues

The International Labour Organisation, ILO, in Geneva (
www.ilo.org) has 189 conventions of which
8 fundamental conventions and 4 priority conventions
China has ratified 25 conventions of which 4
fundamental (C 100, 111, 138, 182), 2 priority
Member states give every 2nd year report on
fundamental conv., otherwise every 4-5 year
At working session each year reports are studied and
commented on
Sweden has ratified 93 conventions, 8 of 8
fundamentals and 4 of 4 priority

6. Gender and diversity

Right to work
Equal pay for equal job
Equal representation at all levels

Equality in labour market in

Europe
European Institute of Gender Equality (EIGE)
www.eigi.europa.eu
Proposed by Sweden 1999, decided on by EU
institutions 2004, opened in Vilnius, Lithuania in 2010
Best statistics of gender issues in Europe, see slides
on Gender equality index
Different result if you search on gender gap for work,
education, economy, health, power

The leading country is following pages marked with colour

Gender issues in Europe

today
Representation of women in management positions (EU
Parliament law in November 2013 indicating 40%
minimum in boards)
Sharp divisions among parties, countries
In Swedens cabinet 50-50 since 1991
45-55 in the Swedish parliament 2012
Equal pay for same job will be realized only 2138 (if
present trend continues)

Development of female/male labour

participation in Sweden 1970-2011

Not in
labor
market
Unempl
1-19 h/w
20-34 h/w

Full time

7. Environmental impact
Companies have big environmental
responsibility
GRI 4 requires the following reports
Input energy, water
Output emissions effluents, waste
Transportation
Energy intensity
Share of renewables
Carbon Disclosure Project,
Construction standards LEED, BREAMS
WCD World Commission on Dams, from year

Risk management
1. Input risk (Availability, quality, cost of raw
material and inputs)
2. Physical risk (Risk of security and of
access to a companys own operations
and assets)
3. Market risk (Risk there will be a change in
demand; product demand as well as
effectiveness of marketing messaging)
4. Stakeholder risk (Risk of failing to deliver
against expectations from stakeholders)
5. Regulatory risk (Risk och changing
regulations)

8. Supply chain issues

Any limit for responsibility in supply chain?
Priority issues:
- Existence of child labour
- Conflict minerals (Dodd Frank law in US;
EU directive out 2015)
- Hazardous chemicals (REACH in EU;
Registration, Evaluation, Authorisation and
restriction of Chemicals)
- Waste from production
- Fraud and corruption

9. Anti-corruption
1: Transparency International.
www.transparency.org
International NGO founded in 1993. Yearly
ranking lists published in December every year.
China rankted 100/175 in 2014.
2: OECD convention against bribery
Adopted 1999. 34 OECD members + 6 countries
3. UNCAC. UN Convention Against Corruption.
Entered into force 2005
4: Business Anti-Corruption Portal

The world by Transparency

International

Chinese version,
first page

10. CSR in China

Main characteristics
Compliance with government policies
Foreign companies initiatives
International buyers with CSR requirement
Energy, banking, automotive, consumer products
SASAC guidelines 2008
Stock exchange regulations on reporting

From Go Global to One Belt,

One Road
In October 2013 a study was published on sustainability aspects
of One Belt, One Road; 2015 Report on the Sustainable
Development of Chinese Enterprises Overseas

The report can be downloaded from www.cn.undp.org

Several recommendations to Chinese companies, private as well
as SOEs on how they should build-in CSR work in their business
models were given.

http://www.cn.undp.org/

4 stages of CSR
development
1985-1999

The CSR origins in China

Late 90s-2005

The CSR debate in China

2006-2011

The CSR consensus in China

-First Year of CSR in China (2006)

2012

The CSR management in China

-First year of CSR management in China (2012)

Five-in-one for Joint Promotion means that government,

sector, enterprise, society and international cooperation
have formed five forces in promoting CSR development.

Main government institutions

SASAC
Promote CSR management of SOEs
MOFCOM Promote Chinese international contractors to perform social responsibility abroad
MIIT
Promote CSR pilots and CSR in information technology industry

MEP
SAC
CNCA

Promote corporations to engage in biodiversity

Promote the standardization of CSR
Promote certification institutes to release social responsibility report

Local government initiatives

Area

Contents

Shanghai

July 2007 Guidelines of Pudong New Area on Corporate Social Responsibility

Zhejiang

July 2012 Opinions on Promoting CSR in Industrial Enterprises in Zhejiang

Shaanxi

December 2009 Guide on Social Responsibility for Industrial Enterprises in

Shaanxi Province

Chongqing

January 2012 Evaluation Methods on CSR Implementation of Key Enterprises

in Electronic Information Industry

Five provinces: July 2012 Annual CSR Reporting System for Enterprises in Phosphate Mining
Industry (Hubei, Hunan, Sichuan, Guizhou, and Yunnan)

Sector propelled initiatives

Associations

Guides

China National Textile

And Apparel Council
(CNTAC)

CSC9000T CSR Management System CSC9000T Implementation

Guidance, Outline of CSR Report for Chinas Textile and Apparel
Enterprises

China Federation Of
Industrial Economics
(CFIE)

China Industrial Enterprise and Industrial Associations Social

Responsibility Guidelines, Implementation Manual on China Industrial
Enterprise Social Responsibility Guidelines, Implementation Manual on
Industrial Associations Social Responsibility Guidelines

China Electronics
Standardization
Association

Guidance on Social Responsibility for China Electronic and

Information Industry

China International
Contractors
Association
(CHINCA)

Guide on Social Responsibility for Chinese International

Contractors (CSR Guide)

CCCMC

CCCMC Guideline for Social Responsibility in Chinese Outbound

Mining Investment (China Chamber of Commerce for Metals, Minerals and
Chemicals Importers & Exporters)

Foreign companies China

CSR reports

Present: Five-in-one State of CSR Development in China

5. International
cooperation
Inter-governmental CSR international cooperation project
Sino-German Corporate Social Responsibility Project (2007.42014.6)
Sino-Sweden Corporate Social Responsibility Project (2007.6present)
see www.csr.mofcom.gov.cn or www.csr2.mofcom.gov.cn for
English
Sino-Dutch Corporate Social Responsibility Project (2008-2014)

Copy Right Reserved by China WTO

11. Trends
Multi-stakeholder consultations
Consumer and media focus
Owners/shareholders responsibilities
Business & human rights
Next frontier: SMEs and developing countries
Government role is not decreasing

Thank you!
Contact details:
johansson_bengt@hotmail.com
Twitter: @bengtjohansso15
www.newcontext.se