Participant s Manual JCI CSR JCI CSR. The Responsibility of the Active Citizen Version 1.1. JCI Official Course. JCI CSR General Information 1
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1 Participant s Manual JCI CSR The Responsibility of the Active Citizen Version 1.1 JCI Official Course JCI CSR General Information 1
2 JCI Vision. To be the leading global network of young active citizens. JCI Mission To provide development opportunities that empower young people to create positive change. About JCI JCI is a worldwide community of young active citizens ages who share the belief that in order to create positive change, we must take collective action to improve ourselves and the world around us. With over 5,000 Local Organizations in more than 115 countries and territories, JCI forms a vibrant international network with nearly 200,000 members. Engaging in activities ranging from community development to international projects, members demonstrate their social responsibility and improve themselves through participation, leadership and action. The global citizens of JCI are committed to becoming better leaders to build a better future for all. Course Summary The JCI CSR Course is a half day course designed to create awareness in Active Citizens that individuals have responsibility to their community and the environment, it promotes the principles of United Nations Global Compact in the practice of business, encourages individuals to act responsibly in business and society and encourages the implementation of best Corporate Social Responsibility practices. JCI CSR is recommended for people who seek to understand their role as Active Citizens within the community and the environment as well understanding the commitment that individuals can make to ensure the sustainability of our planet, and prosperity of people in the community. Content JCI CSR is a half day course divided in these modules: Module 1 Opening Module 2 Principles Module 3 Responsibility Module 4 Commitment Module 5 Closing References: and Copyright by JCI: All rights reserved. This manual is for the exclusive use of participants attending the JCI Official Course and can only be reproduced for this purpose. All JCI Official courses must be organized online and all participants must individually register online to qualify for the manual and to be certified as graduates from the course. This publication or parts of it may not be translated in any other language without the express permission of the JCI Secretary General. Published by Junior Chamber International (JCI), Inc Olive Boulevard Chesterfield, MO 63017, U.S.A. Tel: +1 (636) Toll free (from USA only): Fax: +1 (636) training@jci.cc - Website: Printing rules and standards for the JCI Official Courses manuals 1. Content and appearance. This manual must be printed in the original way, without changes on the layout or text. No organizer or sponsor name ort logo can be added. 2. Printing details: When printing the JCI Official Course manual, follow these guidelines: a. Print two-sided ensuring that the odd pages are always on the right (front) and the even pages always on the left (back). b. Bind with Coil Binding. c. Add a clear plastic front cover and black plastic back cover. d. Cover page must be printed in color and all other pages can be printed in black and white. For more information consult JCI at Training@jci.cc. 2 JCI CSR General Information
3 Opening What is CSR? Corporate Social Responsibility (CSR) is an important aspect for any organization, be it a new business just starting out or an existing business looking to ensure that it has a sustainable future and relevance to the community. It may be implemented into, or be present in, an organization under many names CSR, CR, social responsibility or just as one of many community programs. In today s business climate consumers require more from a business than just supplying the product or service that they wish to purchase. They require an ethical and moral organization that uses ethical and moral means to build its business. The principals of CSR provide a template for this. According to the International Chamber of Commerce, CSR is The voluntary commitment by business to manage its activities in a responsible way. Corporate Social Responsibility is a concept that encourages companies to integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis. The spirit of CSR is based on people wanting to be part of solutions and do something positive for the world. It is not charity or donations, but mostly being part of the community, where clients and company employees make their living. Of course a company can cause impact and make a big difference by direct donations or projects, but the essence of CSR is the participation in the solutions with the community and interacting with the society to find the best solutions for the challenges. The United Nations Millennium Development Goals In September 2000 at the UN Millennium Summit, world leaders agreed to a set of time-bound and measurable goals and targets for combating poverty, hunger, disease, illiteracy, environmental degradation and discrimination against women. Placed at the heart of the global agenda, they are called the UN Millennium Development Goals (MDGs) and include eight main goals: 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, malaria and other diseases 7. Ensure environmental stability 8. Develop a global partnership for development. The eight goals provide a framework for governments, businesses, organizations and citizens to work coherently together towards a common end. JCI CSR, Opening 3
4 Principles Introduction The concept of Corporate Social Responsibility (CSR) is strongly affecting small and medium enterprises (SMEs). The debate on CSR in recent years has focused mainly on large companies and multinationals. But supply chain relationships, implementation problems, the development of legislation and international standardization and certification, and notably, the extension of the United Nations Global Compact initiative, has brought the debate to the local level. This means that no matter how small or local a business is, it is affected by events and decisions sometimes as far as the other side of the globe. For example, almost all businesses depend on some kind of supplier, who in turn depends on someone else and so on. Any change in rules or offer and demand will affect the entire chain, not only the part affected, but mainly small and medium enterprises because of implementation challenges for new processes. International legislations and standards are also affecting the way small and medium enterprises are conducting their businesses and finally, the UN Global Compact initiative is aimed to bring some standards and values to businesses of all sizes and levels, society and governments. CSR Principles With Corporate Social Responsibility a business has many responsibilities with society but mostly the ones below: Behave ethically: Respecting business ethics and personal values. Contribute to the economic development: This does not happen by handing out money, but by generating products, jobs and economic development. Improving quality of life: For the employees, their families, the local community and for the society at large. Business ethics is about having a clear mission, vision and values, transparency in business practices, anticorruption policies, etc. Working environment involves selection and recruitment practices, anti-discrimination policies, training and incentives, human rights, health and insurance policies, and a pleasant place to work. Environment is the internal and external practices and actions to protect and prevent damages to the environment. Community development is not only charity and donations, but a concrete plan to support or sponsor a specific cause that will bring some kind of improvement in the community. People, Planet and Prosperity Based on the CSR principles, doing business means placing attention in three major areas, the 3 Ps: People are all the people inside and outside your company. Social well being and equity. Planet means the consequences for the environment. Environmental protection and resource conservation. Prosperity is the economic effect of products and services. Economic prosperity and continuity. "People, planet and prosperity" (in business circles, prosperity is also known and referred to as profit) succinctly describes the triple bottom line (results) and the goal of sustainability. "People" (human capital) pertains to fair and beneficial business practices toward labor and the community and region in which a corporation conducts its business. A company using the three Ps (also called Triple Bottom Line TBL, in business language) conceives a reciprocal social structure in which the well being of corporate, labor and other stakeholder interests are interdependent. Businesses also seek to "give back" by contributing to the strength and growth of its community with such things as health care and education. 4 JCI CSR, Principles
5 "Planet" (natural capital) refers to sustainable environmental practices to benefit the natural order as much as possible or at the least do no harm the environmental. Currently, the cost of disposing of non-degradable or toxic products is borne financially by governments and environmentally by the residents near the disposal site and elsewhere. A company which produces and markets a product which will create a waste problem should bear part or the total cost of its ultimate disposal. Ecologically destructive practices such as endangering resources should be avoided by companies. Often environmental sustainability is the more profitable course for a business in the long run. Arguments that it costs more to be environmentally sound are often specious when the course of the business is analyzed over a period of time. It may cost more to a business to adopt environmental sustainability practices but these are the companies that will eventually be preferred by the public in the near future when everyone will have a more ecological approach to buying. "Prosperity" is the profit shared by all commerce, conscientious or not. The concept, within a sustainability framework, needs to be seen as the economic benefit enjoyed by the host society. It is the lasting economic impact the organization has on its economic environment. Prosperity not only emphasizes the company gain, as well as the social and human gain in society, which comes from responsible choices regarding making and spending profit. The CSR Stakeholders Stakeholders are groups of people directly influenced by the activities of your business. They may also be parties making demands on behalf of other groups or the environment which are unable to safeguard their own interests. Internal Stakeholders: Owners: Your own image in the community, your participation in the society and your actions as a citizen will have an influence on how others see your business. Management: Using good management ethics and a fair share of profits and transparency of the finances, participation of partners or managers in decisions will bring the support from them. Employees: Diversity management, training employees to perform higher skilled tasks, share decisions and keep information flowing both ways. Families: The opinion or attitude families have towards your business or products can have a direct influence on the employees attitude and behavior while working or outside the company s environment. Customers: Labeling your products can make them stand out in the view of concerned customers. This may be a pre-requisite for entering a particular market, such as detergents, paper, cleaning products, etc. Suppliers: Knowing how your suppliers work and their business ethics in relation to the environment and community is indispensable to ensure your products are what you are labeling them. External Stakeholders: Government: Following government standards, rules and regulations and knowing their plans can help you to get financial aid and promotion from government. Community: Contributing to local community activities, educational institutions and employees participating in community voluntary organizations will create a good image for your business. Investors: This can involve banks, new partners or current partners. Your business is only as strong as the image investors have of it. Media: Mass media has great influence in the public opinion. By establishing an effective public and media relations program your business can project the correct image and inform the public about your actions and business ethics. Environment: Implementing environmental friendly systems will bring a good image and can also save you money. Innovation: Are there any environmental or social problems which your products or services may help alleviate? JCI CSR, Principles 5
6 Of course, not all stakeholders apply or are of equal importance to your business. Some stakeholders are relevant to most businesses (employees, authorities and customers) and others may in some situations be of overall importance (mass media, interest groups, etc.). Many small or medium-sized businesses have close connections to many of their stakeholders. In a strategic stakeholder dialogue you have to determine which stakeholders are of most importance to the continued existence of your business and give them priority. The Ten UN Global Compact Principles The United Nations (UN) implemented the Global Compact, one of the Millennium Development Goals (MDG s) in July 2000 with the aim to bring together companies, UN agencies, labor and civil societies to support universal social and environmental principles. The Global Compact consists of ten defining principles which are derived from key UN platforms and the continuing need for organizations to be ethically upstanding. The principals are: Human Rights 1. Business should support and respect the protection of internationally proclaimed human rights The core value of international human rights law is the notion that all human beings are born free and equal in dignity and rights. It is up to you to make sure that people are treated respectfully in your company, association, society, etc. Companies should voluntarily promote human rights. 2. Make sure that they are not complicit in human rights abuses. Complicit means knowing and accepting or covering human rights abuses. Can be in your own environment or with customers, suppliers, etc. Companies should avoid being complicit. Labor Standards 3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining; Respect for the right of employers and workers to join associations of their choice 4. The elimination of all forms of forced and compulsory labor; Eliminate forced work for debt, identity papers, by threat of firing or other forced ways of work. 5. The effective abolition of child labor Minimum age of admission after completion of compulsory schooling (average 15 years) Light work (13 or 14) in developing countries Hazardous work (18 years) 6. The elimination of discrimination in effect of employment and occupation. Environment Eliminate preference based on race, color, political opinion, religion, sex or origin. 7. Business should support a precautionary approach to environmental challenges. Lack of full scientific certainty should not be a reason to postpone cost effective measures. 8. Undertake initiatives to promote greater environmental responsibility. Contributing voluntarily can establish a culture that achieves more than legislation demands. Protection the environment by polluting less, use resources in a more sustainable manner and recycle more. 9. Encourage the development and diffusion of environmentally friendly technologies. Pursue and encourage the development and diffusion of environmental friendly technologies. 6 JCI CSR, Principles
7 Anti-Corruption 10. Business should work against corruption in all its forms including extortion and bribery. By global standards, it means trading in influence, abuse of functions, illicit enrichment, obstruction of justice, laundering and concealment of ill-gotten gains. persons involved. Bribery is an offer or receipt to or from any person as an inducement to do something which is dishonest, illegal or a breach of trust. United Nations Declaration of Human Rights Corruption can take many forms that vary in degree from the minor use of influence to the institutionalized bribery. Corruption is the abuse of entrusted power for private gain. This can mean not only financial gain but also non-financial advantages. Extortion is the solicitation of bribes accompanied by threats that endanger the personal integrity of the life of the private All human beings are born with equal and inalienable rights and fundamental freedoms. Adopted and proclaimed by General Assembly resolution 217 A (III) of 10 December United Nations Department of Public Information. udhr.htm JCI CSR, Principles 7
8 Responsibility Introduction The concept of Corporate Social Responsibility (CSR) is strongly affecting small and medium enterprises (SMEs). The debate on CSR in recent years has focused mainly on large companies and multinationals. But supply chain relationships, implementation problems, the development of legislation and international standardization and certification, and notably, the extension of the United Nations Global Compact initiative, has brought the debate to the local level. This means that no matter how small or local a business, it is affected by events and decisions sometimes as far as the other side of the globe. For example, almost all businesses depend on some kind of supplier, who in turn depends on someone else and so on. Any change in rules or offer and demand will affect the entire chain, not only the part affected, but mainly small and medium enterprises because of implementation challenges for new processes. International legislations and standards are also affecting the way small and medium enterprises are conducting their businesses and finally, the UN Global Compact initiative is aimed to bring some standards and values to businesses of all sizes and levels, society and governments. How does CSR work? Involves voluntary initiatives by enterprises which go beyond compliance with the law. CSR is the business voluntary effort to include the society, the environment and your stakeholders in the context of the businesses activities and operations. Involves the whole business process rather than simply focusing on philanthropy or charity. CSR includes activities which make a difference to people and the environment. Involves a close understanding of and involvement with appropriate stakeholders. CSR is also the actual process of including relevant stakeholders in the decision on which activities you plan to undertake in relation to people and the environment. CSR Implementation Process In order to implement CSR as a natural part of your organization you need to develop a program that is the correct fit for your organizations values and goals. This means that not only are you ensuring your organizational practices are CSR compliant but you also ensure that they are a good fit to your employee/ member and organization values. This will mean that they are actively undertaken and practiced by your employees/members. A. Understanding and awareness of CSR Before we can even implement a CSR program into an organization, we need to ensure that all members understand what it is. This is important if we are truly going to integrate a CSR program into an organization rather than have it as window dressing. B. Identify your organizations CSR goals Your organization s CSR goals need to be something that all members have contributed to and relate to. The organization s CSR goals must be decided by all members (employees, managers, and partners) not only by the president or owner. They must be aligned with the corporate philosophy (mission, vision and values). C. Develop your CSR plan Once you have the decided the goals you need to work with the employees to develop the CSR plan. By involving all members of your organization you will help to solidify understanding and awareness. This will also ensure that all members have ownership of the plan. D. Communicate the CSR plan The plan must be communicated to all stakeholders to gain support, customer loyalty, and employee motivation. 8 JCI CSR, Responsibility
9 E. Implement your CSR plan There is no use in having a plan if it is just a written document and no one does anything with it. Give your employees or members full ownership of it and ensure that they gain the satisfaction from the achievement of the CSR goals. F. Follow up and evaluation As important as the actions and execution of the plan, is the follow-up and constant revision of the progress and from the results adapting and updating the plan. A periodic evaluation will show mistakes to avoid and will show results that can be used for marketing and government reports. People, Planet and Prosperity The concept of TBL (Triple Bottom Line) demands that a company's responsibility be to stakeholders rather than shareholders. In this case, 'stakeholders' refers to anyone who is influenced, either directly or indirectly, by the actions of the company. According to the stakeholder theory, the business entity should be used as a vehicle for coordinating stakeholder interests, instead of maximizing shareholder (owner) profit. In order to achieve results in CSR and the UN Global Compact Principles, all three aspects must be treated as one because they are interrelated. A company can no longer work towards prosperity of profit because prosperity with affect people and planet and vice-versa. For example, an action related to the environment can have a positive or negative effect on prosperity of profit. The action may cost money which will affect the company s results and maybe the cost of products. On the other hand, an action on saving energy will benefit both the environment and the company s financial results. If many actions are combined the company may see its costs being reduced which can result in lower prices which will result in more sales and end up with more profits and the circle goes on. JCI CSR, Responsibility 9
10 Commitment Key Success Factors The implementation of the UN Global Compact principles include: Making them your own principles. You must believe in the principles and be ready to follow them in your daily life. Willingness and ability to learn and adapt. Things are or seem different for different people, so you must also understand the actions and behaviors of other people. Communicate and promote principles. Don t miss any opportunity to communicate and promote the principles. Dedication to practical action. Words and good intentions will not make any change. You must act at home, at your office or job, in the community and with your Local Organization. Lead by example, practice principles. Good examples are contagious. Lead by example with good actions and examples. Principles, Values, Circumstances and Needs Any principle, rule or standard must be evaluated from different aspects, such as our values, the circumstances, and our needs, but we always must know what is right and wrong, establish personal principles and values and make wise decisions based on these personal principles and values. Adopting the principles and acting responsibly will not be as easy as it seems. Many times you may have to challenge your values and face circumstances and have needs that seem to make the implementation of the CSR and UN Global Compact principles very difficult. Until the majority becomes part of the chain and acts responsibly you may face challenges. Depending where you live and have your business, the common sense may not be totally in accordance with the CSR and UN Global Compact Principles, but sooner or later, every person or business will have to act responsibly. As a responsible and active citizen you must always know what is right or wrong and act responsibly. Even if sometimes you cannot act completely in accordance to the principles, you must always know where to go to become right and avoid getting deeper into the wrong side. You need to be creative and very analytic to implement a CSR plan that follows your principles and values and adapt it to the circumstances and needs. The Need for Action Making wise and timely decisions about our challenges will set the course of global development and societal achievements in the years immediately ahead. As active citizens, we cannot expect and wait that all challenges be addressed by any government or institution acting alone. Active citizens and organizations must be involved and act. Here is where JCI members and Local Organizations can have a great impact in the local communities by acting with authorities, business and society in the solution of the long-term challenges for humanity. And CSR can be just the beginning. No matter where you start, if you know what to do and are committed to action! Action in the Local Organization Action at the workplace Action in the community and friends Action at home 10 JCI CSR, Commitment
11 Closing The world is not ours Sometimes we tend to think that we received this world from our ancestors. Many times we even blame previous generations for giving us the world that we think could be in a better shape. But the reality is that we, as the current users of earth we are supposed to be the ones who are shaping it when we hand it over to our children or to the next generation. The same way we may blame past generations, our children and their children may blame us for what we did or for what we could have done to leave a better world for them. The Starfish story There was once a writer who used to go to the ocean to get inspirations for his writing. One day as he walked along the shore, he looked down the beach and saw a person throwing something into the ocean. As he got closer, he saw that it was a young man, and the young man was reaching down to the shore, picking up starfish, and very gently throwing them into the ocean. - Good morning young man! What are you doing? Asked the wise man. The young man paused, looked up, and replied: - Don t you see? I am throwing starfish into the ocean. The sun is rising, and the tide is out. And if I don t throw them back into the ocean, they ll die out here. - But, young man, don t you realize that there are miles of beach and thousands of starfish all along it? - You can t possibly make a difference or save them all! The man told the young boy. The young man, listening politely, bent down and picked up another starfish, throwing it into the sea past the breaking waves. Turning to the old man, he modestly replied, It made a difference for that one. No matter how big or small our actions are, they will always make a difference for someone and add to the global efforts to solve the world s challenges. JCI CSR, Closing 11
12 JCI Vision. To be the leading global network of young active citizens. JCI Mission To provide development opportunities that empower young people to create positive change. About JCI JCI is a worldwide community of young active citizens ages who share the belief that in order to create positive change, we must take collective action to improve ourselves and the world around us. With over 5,000 Local Organizations in more than 115 countries and territories, JCI forms a vibrant international network with nearly 200,000 members. Engaging in activities ranging from community development to international projects, members demonstrate their social responsibility and improve themselves through participation, leadership and action. The global citizens of JCI are committed to becoming better leaders to build a better future for all. 12
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