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State of Czech CSR: An Interview with Business Leaders Forum

How are companies taking to CSR in the Czech Republic? 

What does the future hold for CSR in this Central European economy?

We ask Tomas Nejedlo, Executive Director of the Business Leaders Forum, a champion of CSR in Prague.

 

 

Tomas, what is the Business Leaders Forum’s mission?

When we first started out, our broad mission was to promote ethical business, when activities of the like were termed ‘corporate citizenship’.

Now after being established for a while, our specific mission is to bring Czech business leaders together to share their experiences and knowledge with each in the field that is now called Corporate Social Responsibility.

 

That’s great, but what specific activities does BLF engage in?

A key, long-standing program we are particularly proud of is our ‘Manager Shadowing Program‘ where we connect talent from universities with managers in business.

With universities, we also offer their faculty guidance in and encourage them to communicate and offer their services to businesses.

Education is also a focus of our activities, towards this we have produced a variety of booklets, conferences and even a dedicated website at CSR-Online.cz which publishes both theory, real-life practical applications and a diary of relevant activities.

To recognise leaders in the field, we administer a health, safety and environment award and nominate outstanding business projects to the European Commission for a European award.

Finally, to provide a globally accepted framework of measurement to Czech business, we have recently completed the translation of the Global Reporting Initiatives guidelines.

 

Tomas Nejedlo, Executive Director of Business Leaders Forum

Tomas Nejedlo, Executive Director of Business Leaders Forum

 

 

From your experiences, what do you think Czech companies believe CSR is?

With so many ‘expert opinions’ no one really has a universally accepted definition of CSR. One popular view, which in my opinion is nonsense, is that CSR is ‘doing good for society’ (i.e. foundations & philanthropy). This is the view championed by the Czech Donors Forum.

From the beginning, we have presented CSR as being about about business, about management. We are pleased that this view is growing in popularity.

But specific priorities are even more diverse and company dependent, with many Czech companies’ focus on Work Life Balance and their Environmental impact but, for example, Skoda Auto’s focus is about their Supplier & Sub-Contractor relationships. 

We also cannot forget the strong tradition of responsible business in the Czech Repubic, 1st brought to international attention by the efforts of Tomas Bata, this tradition has made many managers come to me asking why we are calling it CSR when it really is just ‘normal activity’. I tell them that it is important to recognise these activities and approach them with the same language as the global economy via, for example, the Global Reporting Initiative.

 

Are there any companies that are truly leading the way in the Czech Republic?

I really love Kovohutě Příbram, which is a medium organisation in central Bohemia engaged in the recycling of old batteries and selling the Lead from them to companies.

I’d also like to highlight O2, which has really surprised me, their presentation and activities have been outstanding in the last year.

 

There has been significant concern that due to the economic turmoil, CSR activities will suffer, so you believe Czech companies will cut down on their activities?

My personal feeling is that CSR is not just about costs so I actually think that this is a good opportunity for companies to develop new methods and new activities which will benefit the company without any extra cost.

 

America’s new President has just been inaugurated, his speech at the event highlighted his desire for both sustainability and accountability to be key priorities for his administration in the coming years, what do you think this means for CSR in the Czech Republic?

To be honest, I have no idea. The question is how will his influence, in turn influence our region. This effect could be strong with many firms here not engaging in CSR for CSR’s sake but to fulfill the demands of their clients.

Yesterday, while presenting the idea of CSR at a Sponsorship conference, participants reminded me that in an open economy like ours, our customers are often international, with products that are likely sold in the west, where customer concern for CSR could grow significantly.

So again, the influence of the new US administration will not be a direct one, but an indirect one through the supply chain.

 

What do you think will be the key challenges for CSR in the Czech Republic in 2009 and how do you intend to address them?

I believe one of our key challenges will be the adoption of globally accepted frameworks for CSR and will work towards encouraging discussion about measuring & reporting in the business community. But we have to first find partners and companies who are both willing and suitable.

Czech Business Weekly have also recently published a Great Article by Lenka Česenková, CSR Consultant at Ernst & Young CZ: Link Here

Tesco: Green from China to Czechia?

Tesco CZCan Tesco meet its CEO Sir Terry Leahy’s vision of halving its carbon footprint by 2020? 

If it will, surely its operations outside of the UK which account for nearly half of its 4 thousand strong array of global stores will have a pivotal role.

Solar Power in Czechia 

In the Czech Republic, Tesco is in the midst of building the country’s largest private Solar Power Facility to generate 30% of the energy for the 24,000 sqm Distribution Center it will set above.

Setting aside the Solar Power however, the Distribution Center itself does not seem to be the most environmentally friendly structure around. It runs 24/7 lights burning, is kept at an average temperate of 9 degrees Celsius and is home to a fleet of 250 trailer trucks.

Some sustainable features have been implemented however, including the switch to fluorescent and a cooling systems which releases air (pushed underground during the day) at night to cool the building.

More at Adrian Chen’s Article @ The Prague Post

Another Energy-Saving Store in China

This week saw the opening of China’s 3rd ‘Energy-Saving’ Tesco Store in Tieling, North-East China. It joins the 1st store in Shanghai and 2nd store in Tianjin as models for Tesco’s plans to introduce updated energy-saving initiatives to all its 59 stores in China.

The ‘energy-saving’ features in the new Tieling store seem a little less than inspiring and  focus on efficient cooling systems which Tesco estimates will reduce  the store’s energy consumption by 25% (halfway to 50%!).

More at: ChinaCSR, BizChina and China Retail News

Earlier Article about Banned Plastic Bags in China: EvolvingChoice

Update: Tesco has just opened a store in Cheltenham, Manchester with similar features to the Chinese ‘Energy Savers’ claiming a 70% reduction in an equivalent store’s carbon footprint. From: BusinessGreen & ClimateBiz

 

What do you guys think? Could Tesco halve its Carbon Footprint by 2020?

Fiji Water: Food Miles Greenwash?

Fiji Water’s efforts to promote its Green Credentials (previous article here) have received significant attention since launch, not all of it positive of course.

Greenwash BrigadeRecently it made a ‘Top Greenwashes of 2008′ list by National Public Radio’s Greenwash Brigade along with a satirical comment

‘Yes, shipping water in container ships from a pristine aquifier in paradise is somehow green’

But could it be?

 

Life Cycle

Fiji Green)

Fiji Water's Carbon Footprint (Courtesy: Fiji Green)

Fiji Green (Fiji Water’s Green Blog) points out that bottled water has not been a substitute for Tap Water, a commonly held assertion, but for carbonated soft drinks & sugary fruit drinks.

From an Environmental perspective, bottled water is preferable to these other drinks that use up significant Refrigeration Energy and have a higher Agricultural Impact stemming from the Energy, Pesticides and Fertilizers used in growing their inputs, e.g. Sugar & Corn.

Quoting articles from the New Yorker and the Wall Street Journal, which propose more comprehensive approaches to measuring a product’s Carbon Footprint, Fiji Water asserts that when compared to its alternatives in this comprehensive ‘Life Cycle’ manner, demand for Fiji Water is good for the environment. 

They compare Fiji Water with Apples & Lamb from New Zealand which have a lower carbon footprint (including transport) than locally sourced alternatives in England.

Why New Zealand Imported Produce have Lower Carbon Footprints:

a) Increased Productivity from More Sunshine

b) Lower Direct Environmental Impact from Less Fertililzer Use

c) Lower Indirect Environmental Impact from Greater Access to Renewable Energies

The above factors probably don’t hold true for Bottled Water though, it is hard to imagine that Bottled Water produced ‘Locally’ will have a greater environmental impact than Fiji Water.

What’s more, Fiji Water give themselves (and the bottled water industry) a pat on the back by crediting the switch to bottled water with: Eliminating about a Trillion calories from the American diet.

Food Miles

A growing form of measuring the carbon impact of food & drink has been ‘Food Miles’, the idea that the more food/drink has to travel to get to you, the greater its impact on the environment.

Fiji Water, in its Green Efforts, has actually INCREASED the Distance it travels to get to NYC by 50%. However, it demonstrates that this results in 55% LESS Emissions.

This is largely achieved through an increased reliance on Ocean Freight which generates 85% less emissions than Trucking.

Here are the Past & Current Routes Compared:

Past: Fiji to Los Angeles (Ship) > Los Angeles to New York (Truck)

Current: Fiji to Philadelphia / Newark (Ship) > Philadelphia / Newark to New York (Truck) 

 

Trying

Sure, alot of what Fiji Water is publishing about its activities is easily perceived as spin (e.g. comparing ‘producing’ water with the production of apples and lamb) but I believe they have taken significant steps to sustainably reduce their environmental impact and between bottled water and soft drinks, would anyone insist that we would be better off selecting soft drinks?

How about you?

Do you think Fiji Water’s efforts are a total Greenwash? Vote here:

A Flight to CleanTech?

 Forum for the Future, a sustainable development charity, has published a great article chronicling the recent ‘Chorus’ of political and business leaders envisioning CleanTech as one of the key areas investors will turn to as the financial markets recover.

It asks questions like ‘Will Obama force Detroit to take the Green Road?‘ and makes a case for a rise in interest in CleanTech in light of the current environment of:

a) Volatile Resource Pricing

b) Fears of Peak Petroleum

c) Flight to Tangibles

It also contains some headline worthy quotes from thought leaders such as Nicholas Stern, former World Bank Chief Economist, who said

This Recession will be Big, but Climate Change will be Bigger

and Merril Lynch’s CleanTech Strategist, Steven Milunovich, who refers to its rise as the ’6th Industrial Revolution’ and projects that solid investments in the field include:

Clean Technology1) Energy Efficiency

2) Electric Cars

3) Wind / Solar Powered Microgrids

With Geothermal Energy and Biofuels as Dark Horses.

Currently, like all new business ventures, CleanTech is deeply reliant on debt financing, however if the ‘Chorus’ is anything to go by, this could change very quickly with investors incorporating alternative risk criteria into their decision making.

Greenest Office in the US?

Light Filled Corridor

Light Filled Corridor

Recently redesigned, right in the middle of New York City, Audubon’s new HQ has been awarded the highest point total of ANY commercial interior in the world by the U.S. Green Building Council (USGBC) within its Leadership in Energy and Environmental Design (LEED) Program.

Achieved at only a 10% premium over the cost of less environmentally friendly renovations, the space’s green design features have a payback period of 10 – 15 years.

Some clever features incorporated into the offices include:

  • An Under-Floor Heating and Cooling system which utilises the Natural Bouyancy of Air
  • Lights that Dim according to the Level of Daylight Present

 

Audubon's Green Office

Audubon's Green Office

A Carbon Neutral Hotel – URBN Shanghai

Shanghai, one of the world’s most rapidly growing cities, in a country which produces the world’s highest levels of carbon emissions (24% of Global Total), seems to be a fitting location for one of the world’s first hotels that claim to be Carbon Neutral.

In typical Shanghai fashion, this project draws from diverse backgrounds and skills from across the globe. Conceived by a Californian and a Chinese-Australian and designed by 3 Canadian Architects based in China, including Tais Cabral, a Brazillian native who imbued the interiors with ‘a sense of luxury, modernity and comfort’.

    

URBN Hotel Shanghai

 

URBN Hotel Shanghai

So what makes this development so special then?

It’s Construction

The site itself is ‘recycled’ with the developers transforming a former factory building.

Bricks and Tiles used were Salvaged from Demolished Buildings.

All the Hardwood used was Reclaimed.

Additional Building Material was Locally Sourced.

It’s Design

Natural Shading is provided by Living Bamboo.

Ambient lighting comes courtesy of Fluorescent Lights housed in Lanterns.

Power is Supplemented by Passive Solar Shades

Rain Water Retention Basins are used

The Air Conditioning is Water Based

It’s Programs

All Energy Used (yes, including staff who commute and all supply deliveries) is Offset with Carbon Credits

 

URBN has grand plans for the future too, in an interview with Jill Stalowicz of Feel More Human, URBN indicated plans to expand to 20 Hotels throughout China including ones in Beijing, Hangzhou, Dalian & Suzhou and to include a retail section with ‘home-grown organic products’.

Since its opening in December 2007, the project has received significant attention from the travel world, named in Conde Nast Traveler’s 2008 Hot List, cited by Fodor’s Hot List and reviewed by the the NY Times.

Not Alone

It however is far from alone with ‘Eco Tourism’ growing by leaps and bounds in recent years. 

Kapawi Lodge - Ecuador

Kapawi Lodge - Ecuador

Conde Nast’s Concierge.com highlights some of the best,

from a lodge in Kenya run by Maasai Tribesman without skimping on Italian Linen…

to one in the Ecuadorian Amazon, run by the Achuar Natives on Solar Energy, while not denying traveler’s their Filet Mignon…

and even a property in Egypt built out of Clay and Salt with only oil lamps & candles to light the way, without skimping on the comforts that persuaded Prince Charles and Camilla to holiday there!

T-Mobile CSR: An Interview

t-mobile-logoAn interview with Jitka Chocova, CSR Manager, T-Mobile (Czech Republic).

What part does CSR play in your company?
A very important one, we started with a responsible approach towards our business in 2005, since then we have worked to ensure that CSR becomes a vital part of our company culture. Naturally it is long journey, but judging by the reaction of our employees and community, we are doing fine so far. The people in our company accept the fact that CSR is an important part of business in T-mobile.

Does CSR contribute to higher earnings or customer satisfaction?
According to various studies, research and experiences around the world, CSR certainly leads to improved company performance, that is without question. But the truth is, some aspects of success are hard to measure (mentioned in: Do the Math on CSR). I’ll give you an example, in companies that are running CSR programmes, employees feel much better, their work, which now comes with a greater sense of purpose, brings them higher satisfaction. So it’s not only about numbers.

What results is that employee efficiency increases, something that is hard to measure. This is representative of the situation in T-mobile. CSR obviously has had a very positive impact but in order for me to present concrete numbers about revenue or profit I would have to conduct detailed research.

Jitka Chocova, CSR Manager, T-Mobile

Jitka Chocova, CSR Manager, T-Mobile


What belongs to the Job Description of a CSR Manager?
A CSR Manager is a person who, in cooperation with company management, creates the entire CSR strategy and is responsible for its integration into the everyday work of the company. It encompasses a wide portfolio of activities that include philanthropy for regions where we are active (T-mobile fund), projects focussed on employees, “one day for your good deed”, protection of the environment and representation of the company in associations and professional groups.

What do you consider your biggest success since assuming your position?
Definitely, it would have to be the fact that since 2005 the CSR budget has quadrupled. The 2nd biggest success is that CSR has become a part of the culture in T-mobile, people know about CSR and it’s an integral part of our everyday life. For example, I refer to our volunteer programme, “One day for your good deed” where more and more people have gotten involved (in 2005 it was 109, this summer it was 369), this year all our directors participated as well.
I’m also really glad that I have had a chance to participate in the DMS project (SMS charity giving), it’s a very unique project that managed to help NGOs raise around 200 million.

1st published in Czech in KB Journal.

ESG as Risk Management

WBCSD LogoIs investing just by looking at financial statements ‘so last year’ ?

Investment analyses that include CSR related metrics (previously mentioned in “Do the Math on CSR“) are increasingly being seen as the way of the (very near) future.

Robeco, a dutch financial services provider, predicts the market for investment products that take into account these CSR metrics will be brought into the mainstream by 2015, constituting 15 – 20% of global assets under management (AUM).

“It’s a tool for better assessing risk” Head of the CFA Institute’s Centre for Financial Market Integrity, Charles Cronin, says of ESG, “People don’t want any surprises these days (…) An ESG framework helps you manage an aspect of risk”

“Responsible investors benefit from better risk management, greater transparency, and an active engagement with companies to promote better management” Oxfam Policy Analyst, Helena Vines Fiestas

Demand for these investments also comes from the ‘the global consciousness’ being rapidly more concerned about climate change and the environment. Christian Werner, Sustainable Asset Management’s (which Robeco owns a 85% stake in) Chief Investment Officer, explains, “If we don’t investment in these companies fast, we won’t get anywhere near the solution” referring to the argument that growth will have to come from these sectors if the future of humanity is to be secure, and therefore they provide an excellent investment opportunity.

Major players have also been getting in on the action:

- Deutsche Bank recently published “Investing in Climate Change 2009: Necessity and Opportunity in Turbulent Times” (Also mentioned at Envirovaluation)

- HSBC has instituted a Climate Change Centre of Excellence headed by co-author of “Sustainable Investing: The Art of Long Term Performance”, Nick Robins

- Goldman Sachs is about to launch Sustain, a concept which will form the basis of a fund that draws on environmental, social and demographic developments to predict investment success

Based on an article by Sophia Grene, published in the Financial Times: Find it Here

Do the Math on CSR

CSR Simply Works Better Is there such a thing as a ‘Typical CSR Practitioner’ ? When we think of such a role do we imagine someone with significant ‘on the ground’ experience with expertise in Environmental Management or Community Relations or are we imagining an individual with a several years of financial management experience and a CPA?

Chances are most of us would imagine the former, a highly passionate advocate of responsible business often with significant NGO experience.

This is probably not too far from the truth, most CSR practitioners cannot boast of a highly developed understanding of financial metrics, the difference between return on assets (ROA) and return on equity (ROE) for example.

These metrics are key however as they are the language of the accountants, those with financial expertise and often express real concerns that the financial impact of CSR activities are acutely difficult if not impossible to definitively measure.

More important, these metrics are the language of the boards, where strategic decisions regarding CSR are made.

CSR has however been effectively correlated with several metrics that boards do understand.

- Price Premiums with Consumers (see: Doing Good Trumps Design and Innovation)

- Greater Employee Satisfaction

- Favour with Regulators

For more firms to move beyond elementary CSR decisions, such as implementing energy efficient light bulbs because they represent direct future savings in energy expenses, a greater number of metrics which ‘speak the language’ of accountants and boards needs to be developed.

Business schools are a key catalyst towards the development of these metrics via 2 actions:

- Training Individuals with Financial Experience in the fields of Sustainability and Stakeholder Relations

- Training Individuals with NGO & Community Relations Experience in the Langauge of Business

Beyond Grey PinstripesAn increasing number of MBA programs incorporating social and environmental perspectives into their courses and also dedicated CSR modules. An overview of these programs can be found on the Aspen Institute’s “Beyond Grey Pinstripes” report published annually.

I anticipate that very soon, we will see a growing number of ‘Bilingual’ CSR Practioners, in touch with communities and environmental issues while also comfortable in a boardroom, generating metrics that business decision makers will easily understand.

Inspired by: Prof. John Peloza‘s article on the Financial Post and Katherine Liew’s post “Why everyone should work in an NFP”

Doing Good Trumps Design and Innovation

GoodpurposeWhen choosing products, a whopping 42% of consumers  value a brand’s commitment to a social purpose over both design and innovation!

This was a key finding in goodpurpose’s ‘Global Study of Consumer Attitudes’ report published this week.

The report is extremely timely as many firms would be reconsidering their commitment to non-core, cause-related activities. It sends a resounding message that if anything, they should be investing more into it than ever in the face of recent economic events.

A couple of compelling reasons why:

  • 7 in 10 would remain loyal to a brand that supports a good cause
  • 7 in 10 have either given the same or more despite economic conditions
  • The Chinese consumer, an increasingly lucrative market, has emerged as a clear leader in the above metric, with 58% giving more despite the economic downturn

Why are they doing it? In a word, contentment.

42% quote “helping others and contributing to my community” as their largest source of contentment compared to “the shopping experience” which only 25% agreed with as a source of contentment.

“They can bring ‘double value’ to their customers, who get a product they want, plus support for a cause they believe in” – Mitch Markson, founder of goodpurpose

The term “return on involvement” makes an appearance in the report, referring to an increasingly popular metric which recognises participation and involvement (e.g. in causes) as true builders of brand loyalty. “Doing Good”, which can create stronger emotional bonds between the brand and the consumer, can hence translate rather easily into “Doing Well”.

more at MarketWatch

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