Arguments for CSR. What is the role and which are the responsibilities of Corporations in society today?

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1 The EFQM Framework for Corporate Social Responsibility By Nikos Avlonas / American College of Greece Adviser EFQM HMA Arguments for CSR Have responsible agencies, the governments and the public sector, as well as international agencies, failed to play their social parts? Should Companies cover the gap? How? What is the role and which are the responsibilities of Corporations in society today? How can corporations contribute to society, in which fields and by which means?

2 Sustainable Development & CSR Citizens Economic Social Environmental Organisations NGOs* Government Corporate Social Responsibility *NGO stands for non-governmental organisation The EFQM Framework for CSR

3 Why EFQM developed the Framework for CSR Many Institutes have already used & will use in the future the EFQM model as the main base for developing their CSR approaches The majority of the existing CSR models or standards focus on social and /or environmental Responsibility while they do not involve all the stakeholders Thousands of organizations in Europe (30,000 )have been using the EFQM model as a fundamental framework for sustainable development & Excellence The EFQM has the best expertise -which is based on Hundreds of Role model CSR cases & the Successful EFQM Model -to provide a new Framework for CSR & relevant innovative tools Sustainable Excellence Focus on Stakeholders People Customers Partners Suppliers Owners (shareholders) Society & Government

4 History of EFQM Excellence Model & CSR Excellence in Corporate Social Responsibility is exceeding the minimum regulatory framework in which the organisation operates and striving to understand and respond to the expectations of its stakeholders in society. Identification of areas of concentration of existing methodologies Comparison Criteria 3 Key CSR dimensions Stakeholder Focus Appropriate tools for Self Assessment / Assessment / Reporting

5 Research on important CSR models, standards, guidelines, indices Aspirational Principles & Codes of Practices Amnesty International SIGMA Global Compact Performance Model Management Systems, Certification Schemes & Reporting Frameworks Accountability 1000 (AA1000) ISO14000 EMAS Global Reporting Initiative (GRI) Value Management System Dow Jones Sustainability Index FTSE 4 Good Economic A comparison Areas covered Social Scope CSR Models Aspirational principles and codes of practices Amnesty International +++ Employment, communities ++ SIGMA Broad ++ Global Compact Performance Model Broad Management systems,certification schemes & Reporting Frameworks EFQM EFQM FRAMEWORK CSR guidelines FOR CSR Broad Social Accountability Employment ISO Suppliers, customers EMAS ++ Communities AccountAbility 1000 (AA1000) Broad Global Reporting Initiative (GRI) Broad Value Management System (VMS) ++ + Broad Rating indices Dow Jones Sustainability Index Staff, communities + ++ FTSE4good Staff, communities ++ Environmental Stakeholder Focus Reporting Tool for Self Assessment Assessment

6 EFQM Research Results EFQM Framework for CSR based on the EFQM Excellence Model CSR Toolbox -CSR (Self-)Assessment Methodology -CSR Evaluation & Benchmarking -Reporting European Commission & CSR The Green Paper 1993: President Delors fought against social exclusion resulting in strong mobilisation and a European Business Network March 2000: European Council in Lisbon July 2001: European Commission creates the Green paper for CSR 2005 CSR European Year Next 5 Years: Companies might be obliged to submit a yearly social statement.

7 E.C. CSR Policy EFQM CSR Framework gives specific answers to the following E.C strategic proposals mentioned in the relevant Brochure Developing the exchange of experience and good practice on CSR between business (4.2 part) Developing CSR management skills (4.4 part) Fostering CSR among SMEs (4.5 part) Management standards (5.2 part) Measurement Reporting and Assurance (Part 5.3) European Commission CID conference Brussels October 31 st 2004 First presentation of the EFQM Framework for CSR

8 The connections Frameworks Frameworks Frameworks EFQM Excellence Model Fundamental Concepts The EFQM Framework for CSR The EFQM Framework for CSR responds to the needs of organisations that have the specific need to advance certain parts of their management system or of organisations that have achieved a maturity against the EFQM model. The EFQM Excellence Model The EFQM Excellence Model Model is a non-prescriptive Model that recognises there are many approaches to achieving Sustainable Excellence. The Fundamental Concepts: The Fundamental Concept act as a stable set of principles that, if turned into practice by an organisation open the access to Sustainable Excellence. On the way to CSR - Tools Mature On the Way Start Up Start-up: the organisation meets all the legal and regulatory requirements. On the way: active involvement and a dialogue with stakeholders, some CSR activities taking place. Mature: stakeholders expectations are balanced, measured and actioned, CSR is fully embedded in policy and strategy and day-to-day management towards sustainable Excellence. Final Outcome: full integration of CSR into Policy and Strategy and day-to-day business / operations.

9 The EFQM way to CSR Provide Training /Awareness Identify stakeholders and their needs,perceptions and expectations Integration in to Policy & Strategy Self Assessment (CSR maturity Identification using the EFQM Framework ) Integration into Policy & Strategy Improvement of the organisation s activities Public CSR reporting (Using the EFQM framework ) Benefits of Self-Assessment for CSR Providing a highly structured, fact-based technique to identifying and assessing your organisation s strengths and areas for improvement relevant to CSR Integrate CSR into organisation Policy and Strategy. Creating a common language and conceptual framework for the way you manage and improve your organisation. Educating people in your organisation on the CSR concept. Involving people at all levels and in all units in CSR programs and actions. Identifying and facilitating the sharing of your good practice within the organisation. Facilitating comparisons with other organisations Integrating the various CSR initiatives into your normal operations. Preparing the organisation to report in a systematic and integrate way to the stakeholders

10 Self-Assessment for CSR Questionnaire Approach TBL Proforma Approach Mature On the Way Start Up Assessment & Scoring (Three Pillars Table ) 22 Topics Enablers Social Environmental Economic 1 Leadership TOPIC 2 Policy & Strategy 3 People 4 Partnerships & Resources 5 Processes Results 20 Topics Social Environmental Economic 6 Customer Results 7 People Results 8 Society Results 9 Key Performance Results Allocation of the EFQM Framework for CSR topics / CSR dimension according to the content (42 Topics in Total )

11 CSR tools - Reporting Provision of structured and comparable format based on the 3 Key CSR Dimensions The Report will be based on the Self Assessment and or CSR Assessment & scoring findings CSR tools - Reporting Section 1. Section 2 Section 3 Section 4 Statement of the organisation s vision, values and strategy regarding its contribution to sustainable development Statement from the CEO describing key elements of the report Organisational Profile including 1 Name of reporting organisation. 2 Major products and/or services, including brands if appropriate. 3 Operational structure of the organisation. 4 Description of major divisions, operating companies, subsidiaries, and joint ventures. 5 Countries in which the organisation s operations are located. 6 Nature of ownership; legal form. 7 Nature of markets served. 8 List of stakeholders and relationship to the reporting Contact person(s) for the report, including and web addresses. Reporting period Section 5 Social Responsibility (Enablers & Results ) Section 6 Environmental Responsibility (Enablers & Results ) Section 7 Economic Responsibility (Enablers & Results ) Section 8 Section 9 List of future objective and actions the organisation is committed to implement regarding each dimension (Environmental,Social, Economic) Appendices & Glossary

12 The Quality Pyramid in Higher Education CSR EFQM, MBNQA Mature Mature On the Way On the Way Accreditation (AACSB AMBA, EFMD ) ACCREDITATION Start Up Framework of Procedures Benefits of the EFQM Framework for CSR The EFQM Framework for CSR will make sure that CSR is truly embedded in day to day business, policy and strategy and will address all stakeholders. Organisations (Also in Education ) already using the EFQM Excellence Model will find this framework extremely easy to adopt since it is based on a familiar model. The framework provides a set of tools for fast & easy implementation even by any organization (SME, Large,Public) unfamiliar with the entire EFQM Excellence Model & the CSR concept

13 Thank you!