Course : Corporate Social Responsibility (1511CSR11)

elearning.lspr.edu
Master of Arts in Communication : Corporate Communication Studies

LSPR eLearning Program

Session Topic : Progress Review Exercise

Best Practice Overseas

Course: Corporate Social Responsibility

By Ida M. Bayuni, M.M.

Content

Part 1

Nike

Part 2

Samsung

Part 3

Everest Textile

Part 4

Raiffeisen Bank

Powered by HarukaEdu.com

-1511CSR11-

S. 3

Progress Review Exercise: Topic & Intro

Todays Topic of Discussion

a. Nike
b. Samsung
c. Everest
d. Raiffeisen Bank

Intro
1. Nike American
2. Samsung South Korean
3. Everest Textile Taiwan
4. Raiffeisen Bank Austrian

Powered by HarukaEdu.com

Nike
We define who we are
by what we do &
also by how we do it.
-1511CSR11-

S. 4

Part1: Nike

Progress Review Exercise: Nike (Cont.)

Strategy

Make Today Better

Design the Future

Government & Public Policy

About this Report
Powered by HarukaEdu.com

1.
2.
3.
1.
2.
3.
4.
5.
6.
1.
2.
3.
4.
5.
1.
2.
1.
2.
3.

Business Overview
Our Sustainability Strategy
Targets & Performance
Climate & Energy
Labor
Chemistry
Water
Waste
Community
Innovation
Product
Manufacturing
People & Culture
How We Work
Governance
Public Policy
Reporting at Nike
Stakeholder Engagement & Reporting
Recognition
-1511CSR11-

S. 6

Progress Review Exercise: Nike

We are working to integrate,

sustainability into every aspect
of our business.
Our aim is to challenge, push &
explore ways that change the
game entirely for materials,
design & manufacturing

Through our commitment to

innovation,
sustainability & design,
we are continually challenging
ourselves, &
our consumers, to reach the
next level of achievement
We strive for innovation that:
a. Serves the athlete
b. Grows the company
c. Delivers inspiration

Powered by HarukaEdu.com

-1511CSR11-

S. 7

Nike: Sustainable Business & Innovation

Problem:
The past 15 years,
Nike had reactively been approaching sustainability as
reputation management issue -> to a renewed emphasis on
addressing the root of cause of sustainability & labour problems

Opportunity:
Now, a shift of focus of 130+ CR team,
they embrace sustainability as a key driver of innovation focusing
on innovating sustainability solutions, &
an important source of competitive advantage,
creating new business models

Powered by HarukaEdu.com

-1511CSR11-

S. 8

Nike: Sustainable Business & Innovation (Cont.)

A Fifteen Year Journey with No Finish Line

System Innovation
Disruptive Models: Product innovation pipeline
Redesign/Co-Design: company reorganization; rewire
& rename CR division to Sustainable Business & Innovation

2013 & Beyond

2011-2012

2009

2006
Integrate Sustainability: CR is a future business
drives; integrate & imbed throughout product life cycle
2004

2001

1998

Collaboration & Transparency: Publishing

online the names & addresses of all factories

Monitoring: First CR report, maxims created,

endorsed UN Global Compact & monitor performance

Risk Management: National Press Club Speech:

responding to criticism of business practices

Powered by HarukaEdu.com

-1511CSR11-

S. 9

Nike: Building Sustainability Indexes

1. Custom Built Indexes

Rate the sustainability of the materials used &
the environmental impact of the production process
2. Developing Guidelines
Strategic integration of sustainability tools guide early product
creation decision making process:
a) Educate designers,
b) Developers, &
c) Suppliers

3. Standards for Performance Evaluation

Implementation the indexes across the organization enabled Nike
to establish goals & targets & measure performance against those
standards

Powered by HarukaEdu.com

-1511CSR11-

S. 10

The Framework: Sustainability Strategic Framework

Deliver a portfolio of,

sustainable products
&
services that enhance
athlete performance

Prototype &
scale sustainable
sourcing &
manufacturing models

Explore new sources of,

revenue not based
on
constrained
resources

Turn sustainability risks into business opportunities

Hardwire sustainability in the way we operate & drive adoption of sustainability
innovation
Catalyze strategic partnerships to bring sustainable innovations to scale faster, cheaper,
better

Explore
Landscaping &
business case
Powered by HarukaEdu.com

Prototype
Proof of
concept

Pilot
Business
transition
-1511CSR11-

Scale
Catalyze
markets
S. 11

Nike: Lifecycle of Value Chain

a)
b)
c)
d)
e)
f)
g)

Plan
Design
Make
Move
Sell
Use
Recycle

Design
Plan

Make
Reuse

VALUE CHAIN

The Lifecycle
of Every
NikeNIKE
Product
THE LIFECYCLE
OF EVERY
PRODUCT
Move
Use
Sell

Powered by HarukaEdu.com

-1511CSR11-

S. 12

Nike: Strategies

A New Focus on Labour

1. Focus Factory
Implementation
2. Build & Share Standards
a) Nike Code Leadership
Standard
b) Promoting Multi Brand
Collaboration

Powered by HarukaEdu.com

Distribution Sustainable
Principles
1. Upstream Focus on Suppliers
2. Improved Working
Relationship
3. Downstream Focus on
Consumers

-1511CSR11-

S. 13

Nike: Balancing Design Innovation

Strategy
1. Focus on sustainability led to
an innovation strategy
2. Designers encouraged,
to think the entire process
from sourcing materials to
consumer use/disposal
Explore -> Prototype ->
Pilot -> Scale
3. 1,500 material vendors
57% have signed contracts
to utilize Green Chemistry
Powered by HarukaEdu.com

Product Innovations to-date

FY13
1. Recycled Polyester in 31.5M
garments
2. Better Cotton Initiatives:
13% organic
3. Leather Working-Group
100% certified
4. Nike developed 2 sustainable
rubber formulations
5. Nike Colordry:
0 Water used,
saves 30 liters of water per
shirt
-1511CSR11-

S. 14

Nike: SWOT

Strengths

1. Global Scale: 750 stores; 48,000

employees
2. Product Design Innovation &
Operational Capabilities
3. Marketing Brand Loyalty
4. Top Down Mission
5. Integrated Sustainability in Decision

Opportunity

1. Increased Demand for Sustainability

Thought Leadership
2. Industry Adoption Influences Supply
Chain Management
3. Reduce Leader: Shared Factory Use
4. Affinity with Athletics & Professional
Sports Results in Global Messaging
Platform
Powered by HarukaEdu.com

Weakness

1. Contract Source Materials &

Manufacturing
2. Global Manufacturing Increases
Transportation Related Emissions
3. Internal Audit Process:
Assessment of Indexes &
Secondary Source Data Collection &
Verification
4. Scope of Reporting an Initiatives

Threats

1. Fashion/Trend Lifecycle
2. Depleting non-Renewable Resources
3. Imitation; Competitors Use & Improve
Processes
4. Slack or Holdup from Contract
Manufacturers
5. Geographical risks: Weather & Politics
6. Lack of Consumer Education:15%
water used in Laundering process
-1511CSR11-

S. 15

Company Culture: Embedding Sustainability in Company Culture

Nike Fostering Commitment
1. Moved CR Upstream
2. CR Reporting
3. HR Management Training
4. Employee Engagement
5. Nike 2021: Business sim
experience

Fulfillment

Practice for delivering on current

sustainability commitments

Clarifying Expectations
1. SB & I Team Integration
2. Custom Built Sustainability
Indexes
3. Internal/External Audit

Informal

Formal

Practices that affect values

& behaviours

Nike Building Momentum

1. Founding Partner of FLA
2. Thought Leader on SAC
3. Promoting Multi-Brand
Collaboration
4. Product Innovation
5. Commitment/Adoption of
Sustainability
6. Index & Green Chemistry
Practice

Practices that establish rules

& procedures

Innovation

Practices that move the organization

further along the path to sustainability

Nike Capacity for Change

1. Re-Design/Co-Design
2. Evolving New Business
Processes & Systems
3. Developing New Products
& Services
4. Extend Scope Both
Upstream & Downstream

Source: Bowker, Kelly (2014) Nike Sustainability Overview. Web:

http://www.slideshare.net/KellyBowker/nike-makb
Powered by HarukaEdu.com

-1511CSR11-

S. 16

Part2: Samsung

Progress Review Exercise: Samsung

Inspire the world,

Create the future.

Powered by HarukaEdu.com

-1511CSR11-

S. 18

Samsung: Business Principles

We comply with
laws &
ethical standards

We maintain a clean
organizational culture

We care for,
The environment,
Health, & Safety

Samsung
Business
Principles

To realize our
values,
we follow these
5 principles

We respect customers,
shareholders &
employees

We are a socially
responsible corporate
citizen

Source: Samsung (2011) Value & Philosophy. Web:

http://www.samsung.com/se/aboutsamsung/corporateprofile/valuesphilosophy.html
Powered by HarukaEdu.com

-1511CSR11-

S. 19

Samsung: The Approach

By 2010, we will have reduced greenhouse gas emissions,
from our operations by the 45% from 2001 levels
We have collected almost 37.000 tons of e-waste, &
recycled approximately 83% of it into valued resources
including scrap iron, plastic & non-ferrous metals
These are,
just a few of
the many
green
initiatives
at
Samsung

We have one of the industrys most extensive mobile phone

recycling programs with operations in
32 countries across Asia, Europe & the Americas
In the U.S., we have recycled 1.7 million pounds of e-waste
through Samsung Recycling direct, which makes recycling
Samsung electronics products easy in all 50 states
We work with our suppliers to make sure they adhere to
the highest environmental & fair labor standards
We design some of the most environmentally responsible
electronics products, from a PC with
a full cell that can to ultra-low energy refrigerators.

Source: Samsung (2015) About Samsung. Web:

http://www.samsung.com/us/aboutsamsung/citizenship/oursustainabilityreports.html
Powered by HarukaEdu.com

-1511CSR11-

S. 20

Samsung: Business Vision

Corporate Vision

Source: Visible Business

(2011) Samsung
Electronics: Sustainability
Management Vision
System (2010). Web:
http://visiblebusiness.blog
spot.co.id/2011/03/sam
sung-electronicssustainability.html

Inspire the world,

Create the future
Global Harmony
with People,
Society &
Environment

CSR Slogan

Respected & Admired

Global Company

Direction

Scape

Tasks

Creation
Talent
Management

1. Employee
Value
2. Work-Life
Balance

Basic
Philosophy
Powered by HarukaEdu.com

Integrity
Management

Innovation

Green
Management

Change

Social
Contribution

Partner
Collaboration

Products &
Services

1. Corporate 1.Addressing
1. Pursuing a 1. Global
1. Customer
Climate
Change
Ethics
Happier
Delight
Competitive
2.Developing Eco2. Fair Trade
Society
Service
-ness
Products
2
Compliance 3.Promoting Eco- 2. Partnership 2. Win
2. Customer
Friendly
3. Intellectual
Programs
Trust
Partnership
Workplace
Property
4.Green
Protection
Communication

Harmony between Business Vision & for Society

-1511CSR11-

S. 21

Samsung: Vision Business vs Vision for Society

Sustainability Management Vision System

Corporate Vision

Sustainability
Management
Slogan

Inspire the World, Create the Future

Global harmony with People, Society & Environment

Respected & Admired Global Company

Direction

Creation

Innovation

Change

Products &
Partner
Green
Social
Talent
Integrity
Services
Collaboration
Management
Contribution
Management Management

Scope

Risk
Philosophy

Harmony between Business Vision & for Society

Source: Visible Business (2012) Samsung: Sustainability Management Vision System (2011). Web:
http://visiblebusiness.blogspot.co.id/2012/03/samsung-sustainability-management.html
Powered by HarukaEdu.com

-1511CSR11-

S. 22

Samsung: Vision Business vs Vision for Society (Cont.)

Vision

Inspire the World, Create the Future

Mission

To Inspire the world with Innovative technologies, products & designs that enrich
peoples live & contribute to a socially responsible, sustainable future

Goal

Quantitative Goals: USD 400 billion in sales, No.1 in the global IT industry & at top 10
global company by 2020
Qualitative Goals: Innovative company; Respect company; Top 10 worlds best
workplaces; Creative leader building new markets; Global enterprise
that attracts the worlds best talents

Strategic Direction

Partnership

Creativity

Great People

Infotainment

Lifecare

Telcom

Healthcare Environment & Convenience

& Comfort
& Biotech
Energy

Biz Areas
Info

Biz Models

AV inci. TV

Finished Goods/System/Component
Focus on info/Telcom/Av

Software/Solutions
Focus Expansion to include Healthcare/Biotech,
Environment/Energy & Convenience/Comfort

Source: Visible Business (2012) Samsung: Sustainability Management Vision System (2011). Web:
http://visiblebusiness.blogspot.co.id/2012/03/samsung-sustainability-management.html

Powered by HarukaEdu.com

-1511CSR11-

S. 23

Samsung: Triple Bottom Line

ENVIRONMENT
NGO

Build successful partnerships

Global Society

Contribute to addressing global issues

(i.e. climate change)

Local communities

Employees

Enhance values by
education & innovation

SUSTAINABILITY

Effective social contribution for,

reputation management &
business continuity

Customers

Business
Partners

Develop environmentallyfriendly products & improve

customer satisfaction

Shareholders

Maximize corporate value by

sound economic activities

Improve competitiveness
through win-win partnerships

Governments

Fair trade & compliance

ECONOMY

SOCIETY

Source: Visible Business (2011) Samsung: Approach to Sustainability (2013). Web:

http://visiblebusiness.blogspot.co.id/search?q=SUSTAINABILITY
Powered by HarukaEdu.com

-1511CSR11-

S. 24

Part3: Everest Textile

Everest: Mission, Vision & Value

Mission

To contribute to society & to make the world better with

Innovation & Sustainability

Vision

To be a leading global enterprise, that benefits human

life by providing innovative solutions based on sustainable
principles

Value-Sustainability

Creating shared value with stakeholders; achieve

economic, social & environmental Triple-Bottom-Line,
& fulfill corporate social responsibility

Powered by HarukaEdu.com

-1511CSR11-

S. 26

Everest: Everest Core Capability

EVEREST
The Ultimate Innovator

Innovation
Power

Best of the Best

Smart
Power

Sustainability
Power
Sustainability*

Innovative, sustainability-driven smart enterprise

Powered by HarukaEdu.com

-1511CSR11-

S. 27

Everest Textile 2013-SR: Application of MIPS Concept & Appropriate Technology

EVEREST

Energy-saving
false twisting LED
machine
lighting
Energysaving fans
Mist
spray

Frequency
converter
Energy-efficient
Energymachines
saving Jets
scheduling*

HT
thermo

Negative Buoyancy
pressure ventilation Water
principle
curtain
old
Visible Replace
facilities
monitoring &
management

Leakdetecting

No air
loss trap

Energy-efficient machines
scheduling, i.e. high &
low pressure switch, using
high efficient facilities

Everest Energy-saving Technology Platform

Powered by HarukaEdu.com

-1511CSR11-

S. 28

Everest Textile 2013-SR: Vision & Achievement of EHS in Phase 1

Healthy labor

Self-management

Medical &
health
services

Auditing the
result &
penalty

Action
Safety awareness

Reduce disaster

Educating
& training
on safety

Disaster
response
system

Powered by HarukaEdu.com

Manufacturing safety

Plan
Prevention
of traffic
accident

Workplace
safety
Do

Check

Contract job
security
Constructions safety

Prevention
of machine
accident

Prevention
of fire
accident

Zero accident

Zero disaster

Prevention
of chemical
disaster Chemicals disaster prevention

-1511CSR11-

S. 29

Everest Textile 2013-SR: 7R Discipline

Prevention source
Management
Dematerialization
1. Rethink
2. Redesign

Treatment
Management
Pipe end processing
1. Reduce
2. Reuse
3. Repair
4. Recycle
5. Recover

7R Discipline

Rethink
Redesign
Economy
Eco Design/Blue Process/Green
Product Cradle to Cradle (Waste
equals Food)

Powered by HarukaEdu.com

Recover

Sustainability*

Reduce

Reuse

Repair

Recycle
Society

Environment

Ecology
Eco-Enterprise with Integrity, Innovation,
& Environment Thinking

-1511CSR11-

Fairness/Justice/Caring Respect
Human Right/ Happiness Enterprise

S. 30

Everest Textile 2013-SR: In Textile Production

CH4

CO2
Emission
Raw
material

Products

Water

Waste

Energy

Waste
water

Work Place

Soil contamination

Ground-water contamination

Illustration by explaining the inputs & outputs such as products, waste, waste water, waste
emission, of a general textile production
Powered by HarukaEdu.com

-1511CSR11-

S. 31

Everest: Everest Textile-Sustainability

Energy saving, Care for the Environment & Our Earth

7R Discipline

Rethink

Sustainability*

Redesign

Reduce

Reuse

Recover
Repair

ECONOMY
Eco Design/Process/
Product
Cradle to Cradle
(Waste equals Food)

Recycle

SOCIETY
ENVIRONMENT
a. Ecology
b. Eco-Enterprise

Justice/Integrity/Charity
Protect Human Rights ValueSharing Enterprise

Source: Everest (2014) Everest Sustainability. Web:

http://www.everest.com.tw/_english/00_site/01_edit.aspx?MID=87
Powered by HarukaEdu.com

-1511CSR11-

S. 32

Part4: Raiffeisen Bank

Raiffeisen: Bank Austria-CSR Report 2013

Raiffeisen
BANK

Our sustainability pillars

Powered by HarukaEdu.com

Reusim impreuna

Employees

Market

Environment

Society

-1511CSR11-

S. 34

Raiffeisen: Bank Austria-CSR Report 2013 (Cont.)

Raiffeisen
BANK

Economic Impact

Reusim impreuna

Generated economic value

Income: 1,736,459 thousands RON
264,000 thousands RON
Payments to shareholders
23,084 thousands RON
Payments to the state
523,680 thousands RON
Wages & benefits to
employees

7,719 thousands RON

Community investments
710,583 thousands RON
Operational costs
Economic value
reinvested

215,112 thousand RON

Average wage in
RBRO este

197%

compared to the
average per economy
Powered by HarukaEdu.com

The equivalent of 15% of the taxed

per profit collected from all commercial
banks, according to the state budget low
in 2013

3 times more than if

employees would have
had an average per
economy wage

Raiffeisen Bank has not

received any financial
aid from the state

35%

Economic
value
distributed

1,521,347
thousand RON

Of the yearly local

budget of a mediumsize town

Wages

72%
88%
101%

While for entry-level it is

152% Bucharest
92% Territory

-1511CSR11-

Staff
Middle
management
Top
management

S. 35

Raiffeisen: Bank Austria-CSR Report 2013 (Cont.)

Raiffeisen
BANK

Environmental Impact

Reusim impreuna

Environmental Impact
H2O

kMWh

We
saved the
equivalent of
Olympic pools
We used in 2013
24,135 1 of water
Which is less
than half we used
last year

15,375 kMWh

Electric energy save in 2013

or the energy necessary for

10

4.4 mil

Runners
to finish a marathon

PLASTIC
We collected

PAPER
180,536 kg

1,100 kg of plastic

recycled in Raiffeisen Bank units

saving

Which could make 651

Sport equipment

4,333 trees

EEW
54,188 kg

FUELS

Our employees have used 740,228 I

Of fuel 31,452 I more than in 2012
Electric & electronic waste recycled in 2013
Our employees flow 1,644,992 km in 2013,
the equivalent of 730 flights from Bucharest to Vienna
Powered by HarukaEdu.com

-1511CSR11-

S. 36

Raiffeisen: Bank Austria-CSR Report 2013 (Cont.)

Total employees

5,184
1,284
<30 yrs./322
30-50 yrs./810
>50 yrs./152

3,900
<30 yrs./1,067
30-50 yrs./2,457
>50 yrs./376

37
Professional
development

No. of women
In management
B

28

Average age

Hours of intruction

Board-1

104

Board-2

547

Other managerial positions

B

Lead To Leadership
Corporate Sales Academy
The Different Academy
Raiffeisen School
RStyle-Live ballanced

Powered by HarukaEdu.com

3,288
6,880
17,296
121,528

B-1
B-2
B-3
B-4
-1511CSR11-

2,144
6,136
9,516

38,040
S. 37

Raiffeisen: Bank Austria-CSR Report 2013 (Cont.)

Total value of community investments

8,049,468 RON

6,110,235 RON
2011

2012

3%

Sectors supported

5%
6%
7%

30%

12%
16% 21%

2012

Environment
Social aid
Sport
Art & culture
Health
Local development
Education
Other

2013

3%
19%

18%

15%
13% 17%

10%
5%

2013

100%

25 RON invested/beneficiary
1,476 RON invested/employee
7% of employees volunteered

Powered by HarukaEdu.com

7,649,220 RON

of employees
trained regarding
anti-corruption
procedures
-1511CSR11-

S. 38

Closing: Concluding Remarks

1.
2.
3.
4.

Nike American
Samsung South Korean
Everest Textile Taiwan
Raiffeisen Bank Austrian

Powered by HarukaEdu.com

-1511CSR11-

S. 39

Course : Corporate Social Responsibility (1511CSR11)

elearning.lspr.edu
Associate Partners :

Powered
by HarukaEdu.com
Powered
by HarukaEdu.com

-1511CSR11-

S. 40