Csr Application Support Vietnam

CSR application support through aligned services CSR application support through aligned services Supporting SMEs and supply chains to switch to sustainable production processes by implementing efficient ICT-based Sustainability Management and aligning viable business support services

The 3rd Corporate Social Responsibility Workshop for Business Intermediaries and Service Provider as part of the EU supported SME business development project “EMPowering ASIAn Business Intermediaries through Knowledge-based Networking focused on Sustainability Management” - EMP ASIA – September 2009

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Background view and definitions Sustainability Development

Sustainability Management

Corporate Social Responsibility

“Humanity has the ability to make development sustainable - to ensure that it meets the needs of the present without compromising the ability of future generations to meet their needs.”

managing resources and its impact in an environmentally friendly, socially responsible and economically wise way (‘Triple Bottom Line’ concept – maximization of economic, environmental and social performance)

Approach to give a frame for businesses to express their commitment to society, society also referred as an corporate approach for Sustainability Management which aims at voluntarily integration of social and environmental issues into all business activities beyond regulations European framework, Green Paper on corporate social responsibility

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services

Systematic integration of CSR into business operation State of the art “EMPASIA”

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Consumer group CSR evaluation schema by ‘Stiftung Warentest’ ¾ societal and scientific opinion-forming processes of responsible corporate behavior ¾ national/internat. conventions, standards and guidelines for responsible corporate behavior ¾ criteria used within the framework of consumer-oriented company surveys ¾ criteria used for socially responsible investment ¾ criteria used in environmental, social and sustainability reporting by companies

Social Issues / Employees

The Environment

1. Guiding principles and corporate policy 2. Management and measures 3. Implementation 4. Reporting

1. Guiding principles and corporate policy 2. Management 3. Measures and implementation 4. Reporting

Social Issues / Production and Supplier

Consumers and Society

1. Guiding principles and corporate policy 2. Management and measures 3. Implementation 4. Reporting

1. Willingness to provide information 2. Community involvement

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services CSR Audit by participants – Case Work March and June 09 Organisations by sector (35) 6%

Organisations by employees

11%

23%

29%

11%

50%

20%

11%

22% Ohter Autom otive

Manufacturing Textile and garm ent

17%

Education Electronics

less than 50 501 - 1000

51 - 250 more than 1000

251 - 500

16%

47%

38% Own CSR Department

Cross-functional Collaboration

No organisational CSR structure

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Attitude and commitment on social issues Social issues guiding principles and commitment Avoid active or passive corruption and bribery in business Complying with international minimum social standards (e.g. Code of Conduct) Compliance with the OHS standards throughout the company is explicitly expressed Promotion of equal opportunities for women and men is explicitly expressed Promotion of training and further education is explicitly expressed Promotion of health and safety at work is explicitly expressed Internal statements on corporate responsibility are accessible Public statements concerning responsibilities towards its employees Detailed guidelines or principles on responsible treatment of the employees 0.00%

comprehensively

10.00%

20.00%

30.00%

40.00%

50.00%

largely

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Supply chain management - social issues Supply chain management - social issues Ensuring compliance of sub-contractors with minimum social standards Preference is given to certified / audited sub-contractors (e.g. SA8000, BSCI) Compliance with social standards is regularly surveyed The company offers free advice and training for buyers and sub-contractors The company offers free advice and training for employees at his production sites Complying with the minimum social standards is a pre-requisite for every signed delivery contract 0%

comprehensively

largely

5%

10%

15%

20%

partially

Reporting on aspects of social compliance of business partners 54%

No

Yes

23%

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Environmental performance Status of environmental protection

Motivation system in production and acquisition

Employees are actively involved (e.g. work groups)

Responsibility for environmental protection is integrated withinthe product development

Responsibility for environmental protection is allocated within the management 0%

comprehensively

largely

5%

10%

15%

20%

25%

30%

partially

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Monitoring / publishing of company data on material and energy consumption Environmental performance measurement Air emissions: carbon dioxide, nitrogen oxides, sulphur dioxide, dust Energy: consumption data W aste water: quantity and pollution (especially COD, heavy metals) Other data: emissions, noise, production accidents, external complaints W aste: total quantity, composition, hazardous waste er: use in production / manufacture (industrial water), drinking water consumption Materials: consumption of raw and process materials (absolute quantities) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Data is collected from several areas and published

Data is collected from some areas and published

Data is collected from a few areas and published

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Market forces that drive organizations to address CSR 1. Economic considerations 2. Ethical considerations 3. Innovation and learning 4. Employee motivation 5. Risk management or risk reduction 6. Access to capital or increased shareholder value 7. Reputation or brand 8. Market position or share 9. Strengthened supplier relationships 10. Cost savings

KPMG's International Survey of CSR Reporting (2005). This report surveyed more than 1,600 companies worldwide and documented the top ten motivators driving corporations to engage in CSR for competitive reasons.

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Current business strategies on Sustainability Sustainability strategy "safeguard" - reducing and managing risks ¾ Sustainability-induced problems and challenges e.g. climate change, poverty etc. are tackled by the political system, markets or the public ¾ Risks could affect the financial, managerial or reputation of corporations ¾ Goal - securing the existing markets and the position in the markets Sustainability strategy "credibility" - enhancing credibility and reputation ¾ Credibility and reputation is a valuable non-tangible asset (also for situation of crisis) ¾ Prevention of conflicts with authorities and stakeholders ¾ Attraction of suitable employees and satisfaction of customers ¾ Defensive focus (communication with stakeholders) e.g. MNCs or industries like chemicals, pharmaceuticals, military, oil, automotive ¾ Offensive focus (sustainable products and services), e.g. food, textile, finance ¾ Good corporate citizenship is a sound investment Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Current business strategies on Sustainability Sustainability strategy "efficiency" - enhancing productivity and efficiency ¾ Enhancing eco or socio efficiency of business processes ¾ Cost reduction through resource efficiency ¾ Productivity improvements through work conditions and job satisfaction Sustainability strategy "innovation" - differentiating in the market ¾ Creation of sustainable products and services with unique selling point ¾ Increase of sales through environmentally and socially friendly product innovations ¾ Advantages through Sustainability in production, consumption or disposal phase ¾ Requires strong communicated ¾ e.g. organic food, textiles – healthy; car sharing - easy, green energy – less risky, fair trade Sustainability strategy "transformation" – developing markets and society ¾ Transformation / creation of new markets transforming human needs and consumption pattern ¾ Requires institutional changes within human needs, politics or institutional framework ¾ Proactive lobbying participation in political committees, standard creation etc

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Selected general barriers for sustainable production pattern in SMEs Knowledge basis ¾ Awareness on sustainability and technology solutions ¾ Understanding on interrelation of environmental, social and economic factors ¾ Know how on advanced management approaches, methods and tools for business applications

Business management and technologies, especially ICT ¾ Availability and localisation of technologies and service infrastructures ¾ Adaptation of advanced business management practices and technologies, ¾ Support of applications and service

Resources and finances ¾ Limited financial resources or limited access to finance opportunities ¾ Limited internal HR capacities ¾ Limited access to specialised support services

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Adaptation of advanced business management – key areas and approaches ¾ Strategic business management – CSR CSR – holistic and strategic management approach to lead towards environmental-friendly and socially advanced businesses, Integration of environmental and social factors meaningful into all business practices ¾ Operational business management – Resource Management process management approaches to enable effective planning and efficient use of environmental related resources (Process Monitoring & Controlling and Enterprise Resource Planning) ¾ Performance evaluation – Environmental Cost Accounting and Investment Appraisal activity based, physical and monetary accounting for impact and opportunity quantification enables fundamental decision support through quantification of environmentally related costs and investment opportunities (e.g. technology evaluation) ¾ Communication and business culture which contribute to organisational learning Cross-functional methods, e.g. Continuous Improvement Processes, Knowledge Management, Stakeholder Relationships Management

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Selected advanced ICT for business management Examples for advanced ICT

SM approach

Function

Link

Open Bravo, SoFi

Resource Management, CSR, Environmental Cost Accounting

Indicator based process monitoring from manufacturing process to supply chains and Enterprise Resource Planning

http://forge.openbravo.com, www.pe-international.com/sofi

Redmine

Environmental Management, CSR

Workflow management for continuous improvement processes

www.redmine.org/

Umberto

Resource Management, Environmental Investment Appraisal

Material and energy flow analysis, process simulation

www.umberto.de/en

Drupal, SugarCRM

Stakeholder Relationship Management

Internal / external communication, stakeholder involvement (CRM)

http://acquia.com/productsservices/acquia-drupal , www.sugarcrm.com

E-Front, Elgg

Knowledge Management, eLearning for business

web 2.0 e-learning and knowledge management for businesses, Internal / external communication

www.efrontlearning.net http://community.elgg.org

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Selected requirements for successful adaptation of business management

¾ Customer and stakeholder orientation ¾ Enhancing creativity and know-how of employees ¾ Enhancing organizational learning ¾ Systematic comprehensive and targeted communication ¾ Creating transparency and managerial awareness of business processes Both, transparency and awareness depend on the ability of companies (particularly SMEs) to collect, process, and analyze respective data

Hence, modern business management depends on availability and efficiency of corresponding systems for data processing system (so-called advanced ICT)

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Barriers and reasons for insufficient level of ICT adoption Poor service of support infrastructures result in limited business access and low application levels

While basic infrastructures and ICT equipment are accessible in Thailand, service and support infrastructures are underdeveloped.

Most advanced ICT products are designed for larger firms, not SMEs

ICT firms used to target large enterprises (budget, HR to run state-of-the-art ICT). These products are often too expensive and too complex for SME users.

Limited ICT literacy of SME owners hinders their ability to choose

Many SME owners are unfamiliar with operating a computer, skeptical of the concrete benefits for the core business, and share the stereotype that advanced ICT is only for larger companies.

Limited ICT literacy of employees in SMEs hinders ICT adoption

Even if SME owners have a strategic understanding of why they should adopt ICT, their staff is often poorly trained. Training costs both time and money – resources that SMEs usually lack.

Adopting ICT is not a technical challenge

ICT is a difficult task for companies of all sizes, whether they are in developed or developing countries. The main challenge is, it must go along with organizational and structural changes in companies.

Lack of financing options limits SME ability to purchase ICT

IT budgets are usually small or nonexistent. In addition, adopting ICT is not a one-time cost because there are ongoing costs of maintaining and upgrading hardware and software, and human capacity building.

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Combining tools and services on demand

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Project proposition: Transition of SMEs and supply chain networks towards sustainable production processes through an active uptake of ICT solutions for sustainability management – ICT4SM Objectives 1.

To develop a portfolio of efficient ICT-based sustainability management tools and solutions tailored to the local conditions and needs of local SMEs across various industrial sectors

2.

To stimulate and facilitate an uptake of ICT-based sustainability management methods and tools in significant number of SMEs and to improve their competitiveness

3.

To establish a service infrastructure for fostering sustainability management culture and capacity

4.

To encourage uptake of sustainability management tools and practices through active dissemination and promotion activities

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Main Activity

Result

Purpose

Set up ICT Toolbox

Accessible, localized, cost-efficient Overcoming technological barriers for ICT and ICT for introducing SM practices in SM adoption SMEs and supply chains

Set up service infrastructure

Locally accepted, affordable on demand service support infrastructures for advanced ICT and SM

Overcoming individual adoption barriers through qualification; create capacities to implement necessary organizational and technical changes.

Set up services

Local self-sustainable service network supporting adoption of ICT-enabled SM approaches

Ensuring access, acceptance and impact of both ICT and SM by combining SaaS, business consulting, ongoing qualification, interlinking with solutions providers.

Implementation Verification of services through and operation of radical improvements of business services efficiency and environmental standards in XXX SMEs

Improving competence levels of local SMEs and business intermediaries on advanced ICT and SM methodologies to enable the switch to sustainable more sustainable production.

Scaling up of service

Broad uptake of SM in both countries, realizing the envisaged switch to more sustainable production.

Breakthrough of ICT-based SM in targeted SME sectors and local supply chains

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Results of ICT4SM As such, the project expects: 1.

to provide sufficient access to localized, cost effective, state-of-the-art web-based ICT for SM;

2.

to build self-sustainable SME support infrastructures of aligned training, consulting and technology provider organizations which provide cost effective, highly accepted services ranging from Software-as-a-Service to management and technology consulting;

3.

to significantly improve knowledge, skills and competences of the target groups in applying advanced ICT and methodologies of SM, thus enabling a wide uptake of SM practices;

4.

to radically improve production efficiency and environment-friendly business practices in significant numbers of SMEs across sectors and supply chains.

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Potential areas ICT4SM applications

1. Individual applications 2. Industry cluster (individual applications, benchmarking) 3. Supply chains (individual applications, supply chain systems) 4. National reporting and audit frameworks (automated government reporting) 5. Stock exchange (enlargement of financial audit and reporting) 6. Integrated solutions

Müller, Opierzynski CSR Training for Industries, 2009

CSR application support through aligned services Discussion on consequences

¾ Development priorities are focusing on enhancing sustainable development. ¾ National and international financial support programs are in place. ¾ Barriers for switching to sustainable production pattern are known. ¾ Know how and technologies are available?

¾ What are the requirements for a broad uptake of sustainable production pattern in Vietnamese industries? ¾ Which sectors should be focused on?

Müller, Opierzynski CSR Training for Industries, 2009