Archive for the 'CSR' Category



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

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:

Deutsche Bank adds Middle East to CSR Foundations

Deutsche Bank Deutsche Bank has recently added a Middle East Foundation to its ‘family’ of foundations already in Asia, Africa and the Americas.
Launched in Dubai’s International Financial Centre (DIFC), amid praise from its Governer, H.E. Dr. Omar Bin Sulaiman, the foundation will focus on funding investments in education, community development, sustainability, and volunteering in the Middle East North Africa (MENA) region.

It can be imagined that regional NGOs will hope that the foundation supports initiatives with higher levels of direct impact than the event that launched it, a public display of part of Deutsche Bank’s extensive art collection normally only shown in their Frankfurt Head Office.

More at:  Zawya, Global Investment Watch, DB Press Release

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.

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

Fiji Water – World’s 1st ‘Carbon Negative’ Water

A ‘culture of indulgence’ ? The explosion of bottled water into an industry worth over 15 billion in the US alone has had many of us asking..

Why IS it that each week, we fly, ship and drive more than 1 billion tonnes of water that’s only a twist of a tap away

Fiji Water

Will Fiji Water faithfuls continue to tolerate that beautiful idyllic image of its source being tarnished by ideas of polluted rivers overflowing with waste byproducts. In a world where we are often judged by what we consume, will bottled water still continue to be fashionably ordered at a cafe without friends gasping in horror, “You mean you haven’t SEEN An Inconvenient Truth?”.

Last year, Fiji Water, perhaps on fears that it might be losing customers to (shock and horror) tap water, announced that its operations were now carbon negative.Tap Water

Yes, when you pick up a bottle of Fiji Water, you ‘should’ no longer feel like part of that ugly problem of climate change. In fact, that 1.5l bottle of water you’re holding has just saved as much carbon as your decision to walk 5 blocks to the grocery instead of driving (you DID walk didn’t you?).

Its a little tricky though, Fiji Water’s factories did not just start absorbing all the carbon around them, neither have all of Fiji Water’s trucks stopped emitting carbon.

They have achieved this dramatic ’120% carbon offset’ by investing in carbon negative projects like reforestation and renewable energy initiatives.

An example of one such project is the ‘Forest Carbon Project’ in the Yaqara Valley on the island of Viti Levu in Fiji. Partnering with Conservation International (CI), the project engages in native species restoration.

What is Forward Crediting?:

Step 1. Projects like the above have their cumulative ‘carbon impact’ for the next 30 years estimated.

Step 2. 30 years worth of carbon impact are immediately factored into Fiji Water’s 2008 120% Carbon Offset

Immediate real reductions are also being reported:

- Trucking Miles (from Warehouses to Distributors) : Reduced by 26%

- Fuel Usage (from Plant to Port with Fuel Efficient Trucks): Reduced by 50%

- Packaging (1.5l bottle only): Reduced by 7%

- Waste Reduction (Landfill Use): Reduced by 70%

Maybe buying that 1.5l bottle of Fiji Water has not miraculously offset the carbon you generated driving to the supermarket, but at least, with full carbon footprint measurement (raw materials to consumption) and reporting, you now have a better idea of exactly how much carbon has been released to get a bottle into your hands.

From the initiative’s website FijiGreen.com, you will also be able to discover that it is suppliers that are producing over 80% of your bottle’s carbon emissions, not the guys at Fiji Water (you know and love?).

Now if only they could get safe drinking water to the 1/3 of Fijians who have no access to it.

For more bottled water facts: Pacific Institute on Bottled Water

For a blog that makes its stand clear: Don’t drink Fiji Water

This blogger’s favourite spots in Fiji: Leleuvia and Bobo’s

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