Corporate Sustainability & CSR
(module Business & Society)
Anna Zinenko, Ph.D
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Navigation
Back to Home
Show interactive content
Introduction
Back to Index
Corporate Sustainability & CSR
Back Page
Next Page
Introducing myself
Feel free to connect with me on LinkedIn
Currently
Countries
Anna Zinenko
UAB- EUTDH CIEE #GCSC FHK
Ukraine USA Switzerland Spain Denmark
Originally from UkraineLiving & working in Barcelona
Education
Organizations
MNE Research InstitutesUNEP UniversitiesStudy Abroad Programs
BBA in Management MS in Ecological Economics PhD in Environmental Science and Technology
Index
Introduction
Evolution
CSR Instruments
UNGC GRI ISO 26000
Concept Weak vs Strong Sustainability Corporate Interpretation
Stages to Sustainable Business
Business Ethics Dilemmas
Sus. Innovation
UN SDGs
Business Ethics Dilemma Game by UN Global Compact and KPMG
Sustainable Innovation & Social Entrepreneurship
17 SDGs
Course Timeline
24/11
17/12
03/11
08:30-11:00 AM
08:30-11:00 AM
13:30-16:00 AM
Business Ethics Dilemma Game by UN Global Compact and KPMG Business Ethics Misstep assignment
Sustainable Innovation presentations & Discussion
Giving the definition to multi-interpretable concepts
10/12
17/11
13:30-16:00
08:30-11:50 AM
Evolution of Corporate Sustainability CSR Instruments Sustainability Reporting
Business Ethics Misstep presentations & Discussions Sustianable Innovation
Grading
40%
20%
40%
Small Teams Presentations (20% each)
Class Participation
Written reflections & discussions
Introduction Sustainability & CSR
Who has the power to simplify complexity?
Joan Martinez Alier, Catalan economist
Are you confused?
CSR
Weak vs Strong Sustainability
Sustainability
Corporate Social Responsibility
Three pillars of sustainability
Environmental
Economic
Social
Info
Info
Info
Sustainability Models
Five Ps
Nested circles
Venn diagram model
Based on United Nations (2015)
Based on Senge et al. (2008)
Based on Sadler (1990)
Partnership
Environmental
EnvironmentalPlanet
Profit
Social
Peace
People
EconomicProfit
SocialPeople
Economic
Planet
CSR according to the EU?
Being socially responsible means not only fulfilling legal expectations but also going beyond compliance and investing more into human capital, the environment and relations with stakeholders.
The European Commission
CSR according to the WBCSD?
CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
WBCSD
What is CSR according to ISO?
”Corporate Social responsibility concerns the behaviour of an organisation with respect to its impact on others and on the natural environment. As with the broader concept of responsibility, the social responsibility of organizations involves being held accountable for actions and decisions. Because it involves willingness by an organisation to be held accountable for actions over which it has control, it is an intrinsically moral or ethical concept requiring an acceptance that there is right and wrong. The actions that constitute social responsibility include the decision to refrain from a specific activity where that is considered the right thing to do.”
ISO (2010)
Videos
B1G1 BM
TOM's Business Models: Buy- One Give-One (B1G1)
Fast Fashion
Is fast fashion destroying our environment?
Sustainable Development
“meeting the needs of the present
without compromising the ability of future generations
to meet their own needs”
Brundtland Report, 1987
Initially: criteria used to classify (sustainable and responsible) investments
ESG
Nowadays: ESG is increasingly replacing the term sustainability in a business context
Environment
Governance
Society
Green- and social washing
Greenwashing
“misleading the public to believe that a company or other entity is doing more to protect the environment than it is” (United Nations 2024)
Socialwashing
“the discrepancy between a company's perceived commitments to social issues and the actual steps implemented to meet those commitments” (Deloitte 2023)
CSR Evolution
Timeline of Sustainability
Integrated Reporting Framework Paris Agreement
The Theory of Moral Sentiment by Adam Smith
1759
UNGC GRI MDGs
Brundtland ReportISO 9001
A Friedman doctrine The Social Responsibility Of Business Is to Increase Its Profits
2030
SDGs
EMAS Rio Earth Summit
2013
1987
2015
2000
1992
1970
Sustainable Development Goals (SDGs)
???
Millennium Development Goals (MDGs)
1997
1790
First large-scale consumer boycott
1990
IPCC First Assessment Report (FAR)
Kyoto Protocoladopted,entered into force in 2005 ISO 14001
2021
2010
2014
1713
Hans Carl von Carlowitz first mentioned the term
sustainability
1984
IFRS Foundationconsolidated Value Reporting Foundation, CDSB
ISO 26000
Stakeholder TheoryEdward Freeman
The EU adopted the Non- financial Reporting Directive (NFRD)
From Profit to Social Business
From narrow view to a broad view of business responsibilities
Social Business
Profit with Purpose
2016: Broad view social purpose
Profit
2002: CSR is good for business
1973: The narrow view, profits only
(Haski-Leventhal, D. 2021)
The Pyramid of CSR (Carroll, 1979)
Desired/Expected Be a good corporate citizen.
Philanthropic
Archie B. Carroll, "The Pyramid of Corporate Social Responsibility: Toward the Moral Management of organizational Stakeholders", Business Horizons, July-August 1991, p. 42.
Expected Do what is right, fair and just.
Ethical
Required Obey laws and regulations.
Legal
Required Be profitable. Maximise sales, minimize costs.
Economic
Evolution
SUSTAINABLE BUSINNESS
CORPORATE COMMUNITY INVESTMENT
COMMUNITY AFFAIRS
PHILANTHROPY
PROFIT FOCUS
(Montiel I., internal)
Weak vs Strong Sustainability
Stage 5Coevolutionary
example
Stage 4Regenerative
Stage 3 Systemic
Stage 2 Business-centered
Stage 1Compliance
(Landrum, 2017)
Stakeholders
Suppliers
Clients/ consumers
Employees
Competitors
Governments
NGOs
Media
Shareholders
Stakeholder (definitions)
“Stakeholders in an organization are the individuals and groups who are depending on the firm in order to achieve their personal goals and on whom the firm is depending for its existence.”
Eric Rhenman (1964)
“A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization’s objectives.”
R. Edward Freeman (1984)
““The stakeholders in a firm are individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers.”
Post, Preston, and Sachs (2002)
Stakeholder (new definition)
Any entity who is affected by the organization (either voluntarily or involuntarily) and possesses the capacity to affect the organization.
Stakeholders' Model (Werther & Chandler)
03
01
02
Economic Stakeholders
Organizational Stakeholders
Societal Stakeholders
ShareholdersConsumers Competitors Suppliers
GovernmentsCommunities NGOs Environment
EmployeesOwners Managers Unions
CSR Instruments
Reflection Questions
01
How do I ensure the environmental commitment of the company?
02
How do I ensure my provider complies with human rights?
03
How do I promote gender balance in the company?
04
What is my contribution to the community where I develop my business?
Intruments for CSR
(Zinenko, Montiel, Rovira, 2015)
Goals of CSR Instruments
No general classification model
Multi-Stakeholder Initiatives
- encouragement of cultural and managerial change via sustainable development (Cetindamar, Husoy, 2007)
- support organizational accountability (Rasche, 2009)
- define rules and procedures for organizational behaviour regarding social and environmental issues (Smith 2001, Rasche, 2009)
- According to mechanisms and their focus (Rasche, 2009)
- With regard to issue they standardize, process and specificity of the norm (Gilbert, Rasche, 2008)
- Classified by 5 dimensions, such as nature, application, focus, reach and scope (Rasche, Esser, 2006).
Private governance mechanisms involving:
- - corporations
- - civil society
- - organizations
- - governments
- - academies
- - unions
to cope with social and environmental challenges across industries and on global scale
Dimensions to classify CSR Instruments
(Zinenko, Montiel, Rovira, 2015)
Scale
Type
Orientation
Requirements
Results-oriented: documented CSR achievements, directed towards business; demonstrable performance
- Ex: Rating Indices, Stock market indexes
Process-oriented: focus on participation, continuous improvement and learning process; usually multi-stakeholder;
International
National
- Ex: Spain (Foretica, SGE21)
- National CSR strategy plans
Organizational
- Internally developed company tools
Principles and Codes: list of good intentions, basis for other initiatives
Management Systems: continuous improvement: Plan-Do-Check-Act; certificates, stamps and labels
- Ex: ISO 14000, ISO 9000, ISO 26000
Reports: give accountability and visibility; hard to compare
Rating Indices: independent evaluations; reputation
Hard requirements: best in class; documentation of achivements, external evaluation
- Ex: DJSI, FTSE4Good, ISO 14000
Soft requirements: focus on relative achivements; lower performance limits, low barriers to enter; aim to inspire, educate, motivate
Comparison of CSR instruments
UNGC
ISO 26000
GRI
SDGs
United Nations Global Compact;World’s largest voluntary strategic policy initiative;Since 2000
Guidance standard on social responsibility;
Global Reporting Initiative;World’s most widely used sustainability reporting framework;
Sustainable Development Goals;A shared blueprint for peace and prosperity for people and the planet
Info
Info
Info
Info
UNGC
01
04
Mission
COP
UNGC
02
05
10 Principles
Process
United Nations Global Compact;World’s largest voluntary strategic policy initiative;Since 2000
Why participate?
FirstSteps
03
06
Participants
Link
ISO 26000
ISO 26000 provides guidance on:
ISO 26000 Core Subjects
ISO 26000 Principles
- Concepts, terms and definitions related to Social Responsibility (SR)
- Background, trends and characteristics of SR
- Principles and practices relating SR
- Core subjects and issues of SR
- Integrating, implementing and promoting socially responsible behavior throughout the organization and, through its policies and practices, within its sphere of influence
- Identifying and engaging with stakeholders
- Communicating commitments, performance and other information related to SR.
(ISO, 2010)
Sustainable Development Goals (SDG)
integrated and indivisible goals for the world's future
Discover
+ CHECK SDG INDEX
193
SDGs (2016 - 2030)
MDGs (2000-2015)
+ DISCOVER TARGETS
countries pledged to
SDGs are build upon the Millennium Development Goals (MDGs) and require a transformational vision and a revitalized global partnership to ensure its implementation, bringing together governments, the private sector, civil society, the United Nations system and other actors and mobilizing all available resources. Each one of us is responsible for its implementation.
17
+ TAKE ACTION
indivisible goals backed by
+ FIND MORE INFO
169
By clicking on each SDG, discover the latest information about the progress in achieving it
+ MICROLEARNING
detailed targets
+ SDGs Good Practices
+ INFO
SUSTAINABILITY
Pillars of sustainability
Watch
Environmental
Economic
Social
Numbers In Action
How can we make a world a better place
Planet
People
Profit
Peace
Partnership
Our progress towards SDGs
(GCSC, 2025)
Socially Responsible Investing
An investment is considered socially responsible because of the nature of the business the company conducts. Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in environmental sustainability and alternative energy/clean technology efforts.
ESG (Environment Social Governance) Investing
Social
Governance
Environmental
Focuses on company's environmental disclosure, environmental impact, and any efforts to reduce pollution or carbon emissions.
Refers to workplace mentality (e.g., diversity, management, human rights) as well as any relationships surrounding the community (e.g., corporate citizenship and philanthropy)
Accounts for compensation, shareholder rights and the relationships between shareholders and management
RobecoSAM " Measuring Intangibles: CSA Methodology
Impact Investment
Impact investing is defined as the deployment of funds into investments that generate a measurable and beneficial social or environmental impact alongside a financial return on investment. An innovative way of boosting the private sector’s contribution to sustainable development can be achieved with impact investing.
The UN Principles for Responsible Investment
01
We will incorporate ESG issues into investment analysis and decision-making processes.
02
We will be active owners and incorporate ESG issues into our ownership policies and practices.
03
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
04
We will promote acceptance and implementation of the Principles within the investment industry.
05
We will work together to enhance our effectiveness in implementing the Principles.
06
We will each report on our activities and progress towards implementing the Principles.
Sin Funds
Sin funds focus on companies normally excluded by funds with ethical filters and aim for superior returns to investors
- “A dollar invested in US tobacco companies in 1900, with dividends prudently reinvested, would have turned into $6.28m [today]. . . . [Similarly,] brewers and distillers were the best-performing British shares of the past 115 years, turning £1 into £243,152, including dividends.”
- Anecdotal evidence suggests that there is reason to invest in sin stocks. This is partly because these industries tend to be mature and do not have large costs associated with growth, but it is also because many of these products satisfy basic human needs that will always be in demand:
- “When the going gets tough, the tough go eating, smoking and drinking.”
Research ESG/ Sustainability Indices
Group 1: DJSI Family
Group 2: FTSE4Good Index Series
Research the assigned Sustainability Index:1) Explore different indices within the family (series)
2) Its methodology
3) Find lists companies (World, Europe & North America if applicable) Discuss the results.
FTSE4Good
DJSI
Sustainability Reporting
Why it is important to produce CSR report?
Instrument to COMMUNICATE and DEMOSTRATE the social, environmental and economic performance of a company is consistent with its commitment to sustainability
Info
Non-Financial Reporting in the EU
Proposal for CSRD
Companies that must comply
Information to be disclosed
On 21 April 2021
- extends the scope to all large companies and all companies listed on regulated markets (except listed micro-enterprises)
- requires the audit (assurance) of reported information
- introduces more detailed reporting requirements, and a requirement to report according to mandatory EU sustainability reporting standards
EU rules on non-financial reporting currently apply to large public-interest companies with more than 500 employees. This covers approximately 11 700 large companies and groups across the EU, including:
- listed companies
- banks
- insurance companies
- other companies designated by national authorities as public-interest entities
Under Directive 2014/95/EU, large companies have to publish information related to
- environmental matters
- social matters and treatment of employees
- respect for human rights
- anti-corruption and bribery
- diversity on company boards (in terms of age, gender, educational and professional background)
web
Global Reporting Initiative
Materiality: report on what really matters
- Report what really matters and where it counts - the stakeholders want to know if the management of the organizations comprising the critical links between sustainability, corporate strategy and where most impact occurs
Materiality Assessment
01
Identify internal and external stakeholders
02
Conduct some initial stakeholder outreach
03
Identify and prioritize what you want to measure
04
Design your materiality survey
05
Launch your survey and start collecting insights
06
Analyze the insights
07
Stakeholders weights
Integrated Reporting
01
04
Mission
Purpose
Integrated Reporting
02
Key objectives
a process that results in communicating-through an annual integrated report- how organizations create value over time, and their impact from an economic, social and environmental point of view
Fundamental concepts
03
Framework
Database
Link
Cases & Reports
PATAGONIA
EY
TESLA
NIKE
More examples
TO GOOD TO GO
LA FAGEDA
PLASTIC WHALE
TRIODOS BANK
video
Tools
UNGC
ISO 26000
GRI
SDGs
United Nations Global Compact;World’s largest voluntary strategic policy initiative;Since 2000
Guidance standard on social responsibility;
Global Reporting Initiative;World’s most widely used sustainability reporting framework;
Sustainable Development Goals;A shared blueprint for peace and prosperity for people and the planet
Info
Info
Info
Info
Business Ethics
What Are The Philosophical Approaches To Ethics?
Approaches are favored by moral philosophers
Straw men approaches deny value of business ethics
Straw men approaches
Friedman doctrine
Cultural relativism
Naïve immoralist
+info
+info
+info
Approaches are favored by moral philosophers
Utilitarian ethics
Kantian ethics
Rights theories
+info
+info
+info
Fighting corruption at an international and a national level
03
01
02
04
The Council of Europe’s Criminal Law Convention on Corruption
United Nations Convention against Corruption
OECD Convention on Combating Bribery
The US Foreign Corrupt Practices Act (FCPA)
+info
+info
+info
+info
Index
Facts about the fashion and apparel industry
1/2x
75
$2.5
2x
consumers keep their closing in comparison to 2000
trillion | valued
production since 2000
million people | employed
59%
100
20%
10%
of sustainability claims are misleading
waste water generated globally
global carbon emissions
billion items | produced early
Link 2
Link 1
United Nations Economic Commission, 2019
Videos
How to stop
How we really stop fast fashion
Documentary
`the true cost of fast fashion
Sustainable Innovation
Novozymes case
01
B2B biological solutions, R&D and production of industrial enzymes, microorganisms, biopharmaceutical ingredients;48% share of the global industrial enzyme market
Activities
02
International CSR Instruments
UNGC (since 2001), in UNGC LEAD (since 2011)
GRI (since 2002)
ISO 14001 (since 2001)
ISO 9000 (since 1996)
03
Sustainability governance
Sustainable Development Board
Sustainability Department (more than 20 employees)
04
CSR reporting
Environmental reporting (since 1994)
Social Reporting (since 1999)
Sustainability reporting (since 2000)
Integrated reporting (since 2002)
Online interactive reporting (since 2007)
(Zinenko, 2014)
Sustainability Integration into Novozymes
Watch
New Business System Thinking
Cost Avoidance
Step 3: Advanced
Risk Avoidance
Step 2: Intermediate
Step 1: Basic
Dr. Claus Stig Pedersen, 2014
Organization of Sustainability Governance in Novozymes
Board of Directors
Executive Leadership Team
Sustainability Development Board
(SDB)
Regions
Key functions
Sustainability development department
Novozymes, Internal
Explicit vs Implicit CSR
Implicit CSR
Explicit CSR
the social and environmental responsibilities of companies located in ‘coordinated economies’ are embedded in and regulated by institutional and legal frameworks, hence reducing the need to explicitly communicate these companies’ contributions to society
Ex: France, Denmark
companies from liberal, laissez-faire economies choose a more explicit form of CSR since liberal market economies leave a larger share of corporate responsibility issues to the discretion of their companies
EX: USA
Matten & Moon (2004)
Patagonia case
“Build the best product, cause no unnecessary harm, use business to inspire, and implement solutions to the environmental crisis”
- Strategy: "initiative-based", "project-based"
- Ideas: from below & business unit directors
- Decentralized way of working
Patagonia
What are the tensions for Patagonia around DWR (Durable Water Repellent) and who are the stakeholders associated with each of these tensions?
“Build the best product"
- Stakeholders
- Chemical companies
- Other brands (competitors)
- Greenpeace
- Other NGOs
- Industry standards players
Patagonia
What will really change the textile industry to adopt more sustainable solutions? How can a relatively small company like Patagonia move massive companies like DuPont/Chemours? How can it move the entire ecosystem away from environmentally damaging practices?
- Traditional approach: risk-based (Restricted Substance Lists) when the damage is already done vs Precautionary approach (identified harmful chemicals upfront).
- Larger the brand more influence on its supply chain.
- Challenge of industry scaling: collaboration and coordination around processes and standards.
Patagonia
What will really change the textile industry to adopt more sustainable solutions? How can a relatively small company like Patagonia move massive companies like DuPont/Chemours? How can it move the entire ecosystem away from environmentally damaging practices?
- Consumer issue: until consumers pull for greater sustainability, the industry won’t change.
- Educate and activate the consumers on environmental impact of chemicals.
- Should industry-wide organizations such Sustainable Apparel Coalition launch consumer campaigns that focus on consumer awareness and behavior change initiatives particularly towards fast fashion?
- How effective Patagonia’s anti-growth and anti-consumerism message is really working? “Don’t’ buy this jacket” campaign?
Timeline of Sustainability
Integrated Reporting Framework Paris Agreement
The Theory of Moral Sentiment by Adam Smith
1759
UNGC GRI MDGs
Brundtland ReportISO 9001
A Friedman doctrine The Social Responsibility Of Business Is to Increase Its Profits
2030
SDGs
EMAS Rio Earth Summit
2013
1987
2015
2000
1992
1970
Sustainable Development Goals (SDGs)
???
Millennium Development Goals (MDGs)
1997
1790
First large-scale consumer boycott
1990
IPCC First Assessment Report (FAR)
Kyoto Protocoladopted,entered into force in 2005 ISO 14001
2021
2010
2014
1713
Hans Carl von Carlowitz first mentioned the term
sustainability
1984
IFRS Foundationconsolidated Value Reporting Foundation, CDSB
ISO 26000
Stakeholder TheoryEdward Freeman
The EU adopted the Non- financial Reporting Directive (NFRD)
Who has the power to simplify complexity?
Joan Martinez Alier, Catalan economist
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Transcript
Corporate Sustainability & CSR
(module Business & Society)
Anna Zinenko, Ph.D
start
Navigation
Back to Home
Show interactive content
Introduction
Back to Index
Corporate Sustainability & CSR
Back Page
Next Page
Introducing myself
Feel free to connect with me on LinkedIn
Currently
Countries
Anna Zinenko
UAB- EUTDH CIEE #GCSC FHK
Ukraine USA Switzerland Spain Denmark
Originally from UkraineLiving & working in Barcelona
Education
Organizations
MNE Research InstitutesUNEP UniversitiesStudy Abroad Programs
BBA in Management MS in Ecological Economics PhD in Environmental Science and Technology
Index
Introduction
Evolution
CSR Instruments
UNGC GRI ISO 26000
Concept Weak vs Strong Sustainability Corporate Interpretation
Stages to Sustainable Business
Business Ethics Dilemmas
Sus. Innovation
UN SDGs
Business Ethics Dilemma Game by UN Global Compact and KPMG
Sustainable Innovation & Social Entrepreneurship
17 SDGs
Course Timeline
24/11
17/12
03/11
08:30-11:00 AM
08:30-11:00 AM
13:30-16:00 AM
Business Ethics Dilemma Game by UN Global Compact and KPMG Business Ethics Misstep assignment
Sustainable Innovation presentations & Discussion
Giving the definition to multi-interpretable concepts
10/12
17/11
13:30-16:00
08:30-11:50 AM
Evolution of Corporate Sustainability CSR Instruments Sustainability Reporting
Business Ethics Misstep presentations & Discussions Sustianable Innovation
Grading
40%
20%
40%
Small Teams Presentations (20% each)
Class Participation
Written reflections & discussions
Introduction Sustainability & CSR
Who has the power to simplify complexity?
Joan Martinez Alier, Catalan economist
Are you confused?
CSR
Weak vs Strong Sustainability
Sustainability
Corporate Social Responsibility
Three pillars of sustainability
Environmental
Economic
Social
Info
Info
Info
Sustainability Models
Five Ps
Nested circles
Venn diagram model
Based on United Nations (2015)
Based on Senge et al. (2008)
Based on Sadler (1990)
Partnership
Environmental
EnvironmentalPlanet
Profit
Social
Peace
People
EconomicProfit
SocialPeople
Economic
Planet
CSR according to the EU?
Being socially responsible means not only fulfilling legal expectations but also going beyond compliance and investing more into human capital, the environment and relations with stakeholders.
The European Commission
CSR according to the WBCSD?
CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
WBCSD
What is CSR according to ISO?
”Corporate Social responsibility concerns the behaviour of an organisation with respect to its impact on others and on the natural environment. As with the broader concept of responsibility, the social responsibility of organizations involves being held accountable for actions and decisions. Because it involves willingness by an organisation to be held accountable for actions over which it has control, it is an intrinsically moral or ethical concept requiring an acceptance that there is right and wrong. The actions that constitute social responsibility include the decision to refrain from a specific activity where that is considered the right thing to do.”
ISO (2010)
Videos
B1G1 BM
TOM's Business Models: Buy- One Give-One (B1G1)
Fast Fashion
Is fast fashion destroying our environment?
Sustainable Development
“meeting the needs of the present without compromising the ability of future generations to meet their own needs”
Brundtland Report, 1987
Initially: criteria used to classify (sustainable and responsible) investments
ESG
Nowadays: ESG is increasingly replacing the term sustainability in a business context
Environment
Governance
Society
Green- and social washing
Greenwashing “misleading the public to believe that a company or other entity is doing more to protect the environment than it is” (United Nations 2024)
Socialwashing “the discrepancy between a company's perceived commitments to social issues and the actual steps implemented to meet those commitments” (Deloitte 2023)
CSR Evolution
Timeline of Sustainability
Integrated Reporting Framework Paris Agreement
The Theory of Moral Sentiment by Adam Smith
1759
UNGC GRI MDGs
Brundtland ReportISO 9001
A Friedman doctrine The Social Responsibility Of Business Is to Increase Its Profits
2030
SDGs
EMAS Rio Earth Summit
2013
1987
2015
2000
1992
1970
Sustainable Development Goals (SDGs)
???
Millennium Development Goals (MDGs)
1997
1790
First large-scale consumer boycott
1990
IPCC First Assessment Report (FAR)
Kyoto Protocoladopted,entered into force in 2005 ISO 14001
2021
2010
2014
1713
Hans Carl von Carlowitz first mentioned the term sustainability
1984
IFRS Foundationconsolidated Value Reporting Foundation, CDSB
ISO 26000
Stakeholder TheoryEdward Freeman
The EU adopted the Non- financial Reporting Directive (NFRD)
From Profit to Social Business
From narrow view to a broad view of business responsibilities
Social Business
Profit with Purpose
2016: Broad view social purpose
Profit
2002: CSR is good for business
1973: The narrow view, profits only
(Haski-Leventhal, D. 2021)
The Pyramid of CSR (Carroll, 1979)
Desired/Expected Be a good corporate citizen.
Philanthropic
Archie B. Carroll, "The Pyramid of Corporate Social Responsibility: Toward the Moral Management of organizational Stakeholders", Business Horizons, July-August 1991, p. 42.
Expected Do what is right, fair and just.
Ethical
Required Obey laws and regulations.
Legal
Required Be profitable. Maximise sales, minimize costs.
Economic
Evolution
SUSTAINABLE BUSINNESS
CORPORATE COMMUNITY INVESTMENT
COMMUNITY AFFAIRS
PHILANTHROPY
PROFIT FOCUS
(Montiel I., internal)
Weak vs Strong Sustainability
Stage 5Coevolutionary
example
Stage 4Regenerative
Stage 3 Systemic
Stage 2 Business-centered
Stage 1Compliance
(Landrum, 2017)
Stakeholders
Suppliers
Clients/ consumers
Employees
Competitors
Governments
NGOs
Media
Shareholders
Stakeholder (definitions)
“Stakeholders in an organization are the individuals and groups who are depending on the firm in order to achieve their personal goals and on whom the firm is depending for its existence.”
Eric Rhenman (1964)
“A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization’s objectives.”
R. Edward Freeman (1984)
““The stakeholders in a firm are individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers.”
Post, Preston, and Sachs (2002)
Stakeholder (new definition)
Any entity who is affected by the organization (either voluntarily or involuntarily) and possesses the capacity to affect the organization.
Stakeholders' Model (Werther & Chandler)
03
01
02
Economic Stakeholders
Organizational Stakeholders
Societal Stakeholders
ShareholdersConsumers Competitors Suppliers
GovernmentsCommunities NGOs Environment
EmployeesOwners Managers Unions
CSR Instruments
Reflection Questions
01
How do I ensure the environmental commitment of the company?
02
How do I ensure my provider complies with human rights?
03
How do I promote gender balance in the company?
04
What is my contribution to the community where I develop my business?
Intruments for CSR
(Zinenko, Montiel, Rovira, 2015)
Goals of CSR Instruments
No general classification model
Multi-Stakeholder Initiatives
Private governance mechanisms involving:
- - corporations
- - civil society
- - organizations
- - governments
- - academies
- - unions
to cope with social and environmental challenges across industries and on global scaleDimensions to classify CSR Instruments
(Zinenko, Montiel, Rovira, 2015)
Scale
Type
Orientation
Requirements
Results-oriented: documented CSR achievements, directed towards business; demonstrable performance
- Ex: Rating Indices, Stock market indexes
Process-oriented: focus on participation, continuous improvement and learning process; usually multi-stakeholder;International
- Ex: UNGC, GRI, ISO
National- Ex: Spain (Foretica, SGE21)
- National CSR strategy plans
OrganizationalPrinciples and Codes: list of good intentions, basis for other initiatives
- Ex: UNGC
Management Systems: continuous improvement: Plan-Do-Check-Act; certificates, stamps and labels- Ex: ISO 14000, ISO 9000, ISO 26000
Reports: give accountability and visibility; hard to compare- Ex: GRI
Rating Indices: independent evaluations; reputationHard requirements: best in class; documentation of achivements, external evaluation
- Ex: DJSI, FTSE4Good, ISO 14000
Soft requirements: focus on relative achivements; lower performance limits, low barriers to enter; aim to inspire, educate, motivateComparison of CSR instruments
UNGC
ISO 26000
GRI
SDGs
United Nations Global Compact;World’s largest voluntary strategic policy initiative;Since 2000
Guidance standard on social responsibility;
Global Reporting Initiative;World’s most widely used sustainability reporting framework;
Sustainable Development Goals;A shared blueprint for peace and prosperity for people and the planet
Info
Info
Info
Info
UNGC
01
04
Mission
COP
UNGC
02
05
10 Principles
Process
United Nations Global Compact;World’s largest voluntary strategic policy initiative;Since 2000
Why participate?
FirstSteps
03
06
Participants
Link
ISO 26000
ISO 26000 provides guidance on:
ISO 26000 Core Subjects
ISO 26000 Principles
(ISO, 2010)
Sustainable Development Goals (SDG)
integrated and indivisible goals for the world's future
Discover
+ CHECK SDG INDEX
193
SDGs (2016 - 2030)
MDGs (2000-2015)
+ DISCOVER TARGETS
countries pledged to
SDGs are build upon the Millennium Development Goals (MDGs) and require a transformational vision and a revitalized global partnership to ensure its implementation, bringing together governments, the private sector, civil society, the United Nations system and other actors and mobilizing all available resources. Each one of us is responsible for its implementation.
17
+ TAKE ACTION
indivisible goals backed by
+ FIND MORE INFO
169
By clicking on each SDG, discover the latest information about the progress in achieving it
+ MICROLEARNING
detailed targets
+ SDGs Good Practices
+ INFO
SUSTAINABILITY
Pillars of sustainability
Watch
Environmental
Economic
Social
Numbers In Action
How can we make a world a better place
Planet
People
Profit
Peace
Partnership
Our progress towards SDGs
(GCSC, 2025)
Socially Responsible Investing
An investment is considered socially responsible because of the nature of the business the company conducts. Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in environmental sustainability and alternative energy/clean technology efforts.
ESG (Environment Social Governance) Investing
Social
Governance
Environmental
Focuses on company's environmental disclosure, environmental impact, and any efforts to reduce pollution or carbon emissions.
Refers to workplace mentality (e.g., diversity, management, human rights) as well as any relationships surrounding the community (e.g., corporate citizenship and philanthropy)
Accounts for compensation, shareholder rights and the relationships between shareholders and management
RobecoSAM " Measuring Intangibles: CSA Methodology
Impact Investment
Impact investing is defined as the deployment of funds into investments that generate a measurable and beneficial social or environmental impact alongside a financial return on investment. An innovative way of boosting the private sector’s contribution to sustainable development can be achieved with impact investing.
The UN Principles for Responsible Investment
01
We will incorporate ESG issues into investment analysis and decision-making processes.
02
We will be active owners and incorporate ESG issues into our ownership policies and practices.
03
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
04
We will promote acceptance and implementation of the Principles within the investment industry.
05
We will work together to enhance our effectiveness in implementing the Principles.
06
We will each report on our activities and progress towards implementing the Principles.
Sin Funds
Sin funds focus on companies normally excluded by funds with ethical filters and aim for superior returns to investors
Research ESG/ Sustainability Indices
Group 1: DJSI Family Group 2: FTSE4Good Index Series
Research the assigned Sustainability Index:1) Explore different indices within the family (series) 2) Its methodology 3) Find lists companies (World, Europe & North America if applicable) Discuss the results.
FTSE4Good
DJSI
Sustainability Reporting
Why it is important to produce CSR report?
Instrument to COMMUNICATE and DEMOSTRATE the social, environmental and economic performance of a company is consistent with its commitment to sustainability
Info
Non-Financial Reporting in the EU
Proposal for CSRD
Companies that must comply
Information to be disclosed
On 21 April 2021
EU rules on non-financial reporting currently apply to large public-interest companies with more than 500 employees. This covers approximately 11 700 large companies and groups across the EU, including:
Under Directive 2014/95/EU, large companies have to publish information related to
web
Global Reporting Initiative
Materiality: report on what really matters
Materiality Assessment
01
Identify internal and external stakeholders
02
Conduct some initial stakeholder outreach
03
Identify and prioritize what you want to measure
04
Design your materiality survey
05
Launch your survey and start collecting insights
06
Analyze the insights
07
Stakeholders weights
Integrated Reporting
01
04
Mission
Purpose
Integrated Reporting
02
Key objectives
a process that results in communicating-through an annual integrated report- how organizations create value over time, and their impact from an economic, social and environmental point of view
Fundamental concepts
03
Framework
Database
Link
Cases & Reports
PATAGONIA
EY
TESLA
NIKE
More examples
TO GOOD TO GO
LA FAGEDA
PLASTIC WHALE
TRIODOS BANK
video
Tools
UNGC
ISO 26000
GRI
SDGs
United Nations Global Compact;World’s largest voluntary strategic policy initiative;Since 2000
Guidance standard on social responsibility;
Global Reporting Initiative;World’s most widely used sustainability reporting framework;
Sustainable Development Goals;A shared blueprint for peace and prosperity for people and the planet
Info
Info
Info
Info
Business Ethics
What Are The Philosophical Approaches To Ethics?
Approaches are favored by moral philosophers
Straw men approaches deny value of business ethics
Straw men approaches
Friedman doctrine
Cultural relativism
Naïve immoralist
+info
+info
+info
Approaches are favored by moral philosophers
Utilitarian ethics
Kantian ethics
Rights theories
+info
+info
+info
Fighting corruption at an international and a national level
03
01
02
04
The Council of Europe’s Criminal Law Convention on Corruption
United Nations Convention against Corruption
OECD Convention on Combating Bribery
The US Foreign Corrupt Practices Act (FCPA)
+info
+info
+info
+info
Index
Facts about the fashion and apparel industry
1/2x
75
$2.5
2x
consumers keep their closing in comparison to 2000
trillion | valued
production since 2000
million people | employed
59%
100
20%
10%
of sustainability claims are misleading
waste water generated globally
global carbon emissions
billion items | produced early
Link 2
Link 1
United Nations Economic Commission, 2019
Videos
How to stop
How we really stop fast fashion
Documentary
`the true cost of fast fashion
Sustainable Innovation
Novozymes case
01
B2B biological solutions, R&D and production of industrial enzymes, microorganisms, biopharmaceutical ingredients;48% share of the global industrial enzyme market
Activities
02
International CSR Instruments
UNGC (since 2001), in UNGC LEAD (since 2011) GRI (since 2002) ISO 14001 (since 2001) ISO 9000 (since 1996)
03
Sustainability governance
Sustainable Development Board Sustainability Department (more than 20 employees)
04
CSR reporting
Environmental reporting (since 1994) Social Reporting (since 1999) Sustainability reporting (since 2000) Integrated reporting (since 2002) Online interactive reporting (since 2007)
(Zinenko, 2014)
Sustainability Integration into Novozymes
Watch
New Business System Thinking
Cost Avoidance
Step 3: Advanced
Risk Avoidance
Step 2: Intermediate
Step 1: Basic
Dr. Claus Stig Pedersen, 2014
Organization of Sustainability Governance in Novozymes
Board of Directors
Executive Leadership Team
Sustainability Development Board (SDB)
Regions
Key functions
Sustainability development department
Novozymes, Internal
Explicit vs Implicit CSR
Implicit CSR
Explicit CSR
the social and environmental responsibilities of companies located in ‘coordinated economies’ are embedded in and regulated by institutional and legal frameworks, hence reducing the need to explicitly communicate these companies’ contributions to society Ex: France, Denmark
companies from liberal, laissez-faire economies choose a more explicit form of CSR since liberal market economies leave a larger share of corporate responsibility issues to the discretion of their companies EX: USA
Matten & Moon (2004)
Patagonia case
“Build the best product, cause no unnecessary harm, use business to inspire, and implement solutions to the environmental crisis”
Patagonia
What are the tensions for Patagonia around DWR (Durable Water Repellent) and who are the stakeholders associated with each of these tensions?
“Build the best product"
Patagonia
What will really change the textile industry to adopt more sustainable solutions? How can a relatively small company like Patagonia move massive companies like DuPont/Chemours? How can it move the entire ecosystem away from environmentally damaging practices?
Patagonia
What will really change the textile industry to adopt more sustainable solutions? How can a relatively small company like Patagonia move massive companies like DuPont/Chemours? How can it move the entire ecosystem away from environmentally damaging practices?
Timeline of Sustainability
Integrated Reporting Framework Paris Agreement
The Theory of Moral Sentiment by Adam Smith
1759
UNGC GRI MDGs
Brundtland ReportISO 9001
A Friedman doctrine The Social Responsibility Of Business Is to Increase Its Profits
2030
SDGs
EMAS Rio Earth Summit
2013
1987
2015
2000
1992
1970
Sustainable Development Goals (SDGs)
???
Millennium Development Goals (MDGs)
1997
1790
First large-scale consumer boycott
1990
IPCC First Assessment Report (FAR)
Kyoto Protocoladopted,entered into force in 2005 ISO 14001
2021
2010
2014
1713
Hans Carl von Carlowitz first mentioned the term sustainability
1984
IFRS Foundationconsolidated Value Reporting Foundation, CDSB
ISO 26000
Stakeholder TheoryEdward Freeman
The EU adopted the Non- financial Reporting Directive (NFRD)
Who has the power to simplify complexity?
Joan Martinez Alier, Catalan economist
Thank you!