Professional Documents
Culture Documents
What is it?
I think many people assume, wrongly, that a company exists simply to make money. While
this is an important result of a company’s existence, we have to go deeper and find the real
reasons for our being.
As we investigate this, we inevitably come to the conclusion that a group of people get
together and exist as an institution that we call a company so that they
are able to accomplish something collectively that they could not accomplish separately –
they make a contribution to society,
a phrase which sounds trite but is fundamental.
“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.”
Sustainability Way of managing all our resources and its impact in an environmentally friendly,
Management socially responsible and economically wise way (The triple Bottom Line)
Corporate Approach to give a frame for businesses to express their commitment to society.
Social Support to voluntarily integrate social and environmental issues into all business
Responsibility activities beyond regulations
CSR encompasses not only what companies do with their profits, but also
how they make them. It goes beyond philanthropy and compliance and
addresses how companies manage their economic, social, and
environmental impacts, as well as their relationships in all key spheres of
influence: the workplace, the marketplace, the supply chain, the community,
and the public policy realm.
What is it?
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.
Community pressure
Competitive pressure
Philanthropy
Differentiation opportunities
Why is your company interested in applying CSR? EU project EMIT CSR, Malaysia
Guideline Social Responsibility – working draft 4.1 ISO 26.000 Reporting Framework for sustainability reporting,
Global Reporting Initiative
Müller, Opierzynski, Blobner
CSR Training for Industries, 2009
CSR Training Workshop for Industries
Which areas are covered by CSR? Consumer group Stiftung Warentest
• Management Standards
– Environmental Management
• ISO 14000 Family (International Organization for Standardization)
• ECO-Management and Audit Scheme EMAS (European Union)
– Quality Management
• ISO 9000 Family (International Organization for Standardization)
• EFQM model for Business Excellence (European Foundation for Quality
Management)
• Workplace Standards
– SA8000 (Social Accountability International)
– ILO-OSH-2001 (International Labor Organization)
– OHSAS 18001 (various worldwide Standardization Bodies)
• Reporting Standards
- GRI - www.globalreporting.org
• Social Standards
– ISO 26000 forthcoming 2008 (International
Organization for Standardization)
– AA1000 (AccountAbility)
– TransFair
– Fair Trade Labeling Organization
– Business Social Compliance Initiative
• Industrial Standards
– Textile
• Code of Labour practices for the apparel
industry including sportswear
• RUGMARK
• Purewear
• European Eco-Label
• Green Cotton
• LamuLamu
• ÖkoTex Standard 100Plus
What is it?
Performance
Reporting
Controlling
Assessment
Continuous Improvement
Strategy
Development
Implementation
Planning
Financial Perspective
Move products up
market to increase profit
margin for own branded
products.
© Fraunhofer IFF
Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk
Magdeburg 2009
Financial Perspective
Seite 25
© Fraunhofer IFF
Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk
Magdeburg 2009
Financial Perspective
Customer Perspective
Goal KPIs Target Activity
Goal KPIs 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
Seite 26
© Fraunhofer IFF
Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk
Magdeburg 2009
Financial Perspective
Customer Perspective
Goal KPIs ProcessTarget
Perspective Activity
Goal KPIs Target Activity
Increase profit
Goal as • Profit marginKPIs • +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 survey
order planning through
tailored to
production satisfaction
• Set-up time • -15 percent needs and identify
effective trends,
customers focus
involvement
processesneeds • Loyalty
customers’ • Timeratio (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 Seite 27
© Fraunhofer IFF
Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk
Magdeburg 2009
Financial Perspective
Customer Perspective
Goal KPIs Process Target
Perspective Activity
Goal KPIs Target Activity
Increase profit
Goal as • Positive media People and
• Profit marginKPIs • +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 KPIs
• Recycled materials 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 identifyco-branding/co-selling
potential
training, set upto ofgreen the
knowledge
customers
value creation • Consumer
materialssurvey • +35 •percent
substitute to 10 strategy
30% increases with sustainable
production
management process, e.g. Value
system,
score • +25 percent
of CIP impact products.
percent through
addedsubstitution,
products throughreduction
new
• Marketing
• Energy budget
• R&D costs • Use 40 percent and
• 25 % increase to designs avoidance .
consumption from RES
production cost
Provide products
Flexibility ofof • Customer
• Lead-time • +50
• -10percent
percent Engage
Improvecustomers to survey
order planning through
Culture
tailored to • Employee
satisfaction • 85 percent needs Anonymous
and identify employee
trends, survey to
focus
production
sustainability • Set-up time
satisfaction • -15 percent effective
identifycustomers involvement
processesneeds • Loyalty
customers’ • Time ratio
to (re-
customer • 50• -20
percent
percent also on buyingproblems,
(design) habits. set up of
Improvement by
buy •rate) • 15 suggestions incentive schema, networking
employees per quarter Training
events,ofcommunication
staff,
• Recruitment of • +20 percent Optimization of internalworking
platform, improving and
Univ. Gradates applications external logistic, optimize
atmosphere
supplier management Seite 28
© Fraunhofer IFF
Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk
Magdeburg 2009
CSR Training Workshop for Industries
Performance
Reporting
Controlling
Assessment
Continuous Improvement
External
Company
Internal
Owner
Demands, Performance,
Requirements Management Reporting
Employees
Company
Top Management
Information flow
CEO
Director
Manager
Master
Forman
Employee
A B
levels
Consequences
¾ Cost and recource saving
¾ Improved management procedures
¾ Compliance and business enhancement
¾ Change of attitude towards learning organisations
What is it?
Internal communication
Process monitoring with indicators
Internal documentation
Process / business assessment based on indicators
External reports communication
In-house gap analysis
Benchmarking
Representation and analysis of material flows
Simulation of processes
Definition of CSR orientated objectives
Preparation of material and energy balances
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%
IT systems used to support controlling and management tasks and real benefit (or benefit from future use)
Simulation of processes
Internal documentation
External documentation/communication
www.modiconsult.com
Specific objectives:
• To develop a portfolio of efficient ICT-based sustainability management tools and solutions tailored to
the local conditions in Southeast Asia and needs of local SMEs across various industrial sectors
• To stimulate and facilitate an uptake of ICT-based sustainability management methods and tools in
significant number of regional SMEs and to improve their competitiveness and local environment
situation
• To establish a service infrastructure for fostering sustainability management culture and capacity
What will be the objective of the CSR activities with respect to your company?
High employee dissatisfaction in individual Installation of a new ventilation system Increase of product output by 10% on average
production areas (difficult work conditions (various product groups); clear reduction of
caused by climate) employee illness and accident rate (difficult to
estimate financially)
Unusually high energy consumption in Implementation of measures for Reduction of heating time by 50% - consequently
peanut pretreatment (heating of peanuts preventive maintenance, cleaning of the reduction of gas consumption by 50% and
in a water bath on gas basis [LPG]) boiler increase of productivity; annual savings for all lines:
3.445 mil. pesos
Obsolete filter presses in the “wax plant” Successive replacement of the old filter press Savings thus far (minus investment):
segments 256,000 Rupiah
High failure rates in the “power plant” Installation of special equipment (load Savings thus far: approximately 96,000,000
shading system) in September 2004 Rupiah
High losses in the distribution of drinking Installation of new piping at the end of Annual saving: 401,760,000 Rupiah,
water (leaks in pipe system) 2003 payout time based on investment costs:
approximately 4 years
• www.sustain-asia.org