small enterprises and csr strategy building and implementing a sustainable csr strategy for small...

© 2014 Kenan Institute Asia

Small Enterprises and CSR Strategy

Building and implementing a sustainable CSR strategy for small enterprises with a limited budget.

John DaSilvaDirector of Corporate PracticesKenan Institute Asia


� How can running a sustainable enterprise be more profitable?

� How can a small enterprise have an impact with limited resources?

� How can a small enterprise implement a sustainable business strategy like a large enterprise?

� How can small investments and the right behavior lead to better outcomes for business and society?

� What are the common pitfalls and the rules for success?

Questions to be addressed


� Its for large companies – not small businesses

� Initiatives need to be large scale

� Private sector – NGO partnerships and community projects

� High costs

� It’s all greenwashing

What do we think of when we hear CSR?


Let’s get on the same page

"CSR is a company’s commitment to and

implementation of strategies that create sustainable economic, social, and environmental value for shareholders and other stakeholders."

Kenan Institute Asia


� Corporate Governance and Ethics –

– adherence to principles of fair trade or fair competition

– anti-bribery and anti-corruption measures

� Human Resources

– health and safety, human rights, employee retention

– job creation and skills development

� Environmental Stewardship

– use of water / land / pollution / climate change

� Corporate philanthropy and employee volunteering

� Supply Chain Management

� Investors/Owners

5

CSR Cuts Across all Activities


People

ProfitPlanet

"People, Planet and Profit" succinctly describes the triple bottom line and the

goal of sustainability.

What is the “Triple Bottom Line” strategy?


How can a small enterprise use the 3BL strategy?

Case Study Illustration:

Citi Triple Bottom Line Small Hotel Project

UNEP was a resource partner and provided use of the Envirotelprogram, program copies and external consulting expertise.

© 2014 Kenan Institute Asia 8

Location: Bangkok and Nearby Provinces

Donor: Citi Foundation

Resource Partner:United Nations Environment

Programme (UNEP)

Implementer: Kenan Institute Asia

Period: 1 October 2010 – 30 September 2013

Amount US $116,000

Citi - Triple Bottom Line Small Hotels Project (TBL)


Objectives

To build capacities of small hotel

owners concerning

sustainability

To investigate the current state of problems and challenges in sustainable

business practices in the hospitality

sector

To demonstrate to small hotels the importance of

running a sustainable business,

especially on eco-efficiency and CSR practices

9

Citi-Triple Bottom Line Small Hotels Project


Small hotels lack reliable, understandable information and awareness on CSR standards, rules and regulations.

Small hotels believe that investments in sustainability are not cost effective.

Small hotels have very limited capacities to implement CSR activities.

Small Hotel Challenges to CSR


� Capacity building workshops

– Employee and community engagement (CSR basics)

– 3BL Strategy

– Use of the Envirotel program

� One on one consulting for sustainability plan creation

� Follow-up site visits to assist with project implementation

Key Activities


Envirotel

Communi-cation

Energy

Water

Waste

Air and Noise

Purchasing Policy

Self Assessment

Knowledge

Case Studies

Discussion

Envirotel Program


� 210 small hotels trained in the Envirotel program and 3BL strategy

� 22 participating hotels hired 118 new employees in newly created positions such as health food chef and CSR manager

� 83 hotels implemented 154 employee-based environmental or community based projects

� 255 documented, cost saving, environmental improvements were made to the hotels

– Water and solid waste reduction

– Energy efficient light bulbs

Project Results (upon project completion)


Key Electricity and Water Implementation


•Environmentally-friendly construction•Biodegradable plastic bag and cloth bag

Paree Hut Resort (Seechang Island)


• Applying a creative communication idea from the Envirotel Program to reduce laundry costs and wastewater

All Seasons Sathorn Hotel (Bangkok)


� Laundry is a significant expense for any hotel (whether it is handled internally of externally)

� Laundry also damages the environment – waster water and chemicals

� Washing bed linens and towels that are not dirty is a waste of money and natural resources

� Challenges:

– Guests expect a clean room – including fresh towels and bed linens

– How can a project stand out, when people are already familiar with programs to reduce towel and bed linen use – existing reduction project in place and of limited effectiveness?

– How can employees become a part of the solution?

Hotel Issues


How the green frog project works

Staff Trained About Project and Asked to

Help

Front Desk Explains Green Frog Project to

Guests

Guests May Buy the Green Grogs

for 49 THB (helps local

school)


108 Room Hotel Comforters

(single)

Sheets

(single)

Towels

(single)

Total

Costs

1 2 3

Cost (per unit) 22 THB 15 THB 15 THB

Costs (per day) 2,376 THB 3,240 THB 4,860 THB 10,467 THB

Total Costs (year at 70% occupancy)

607,068 THB

827,820 THB

1,241,730THB

2,676,618THB

20% savings per year

(before frogs andtraining expenses)

121,413

THB

165,564

THB

248,346

THB

535,323

THB

Cost Savings Analysis


� 1. Have a business alignment

� 2. Pursue costs savings – 3BL strategy

� 3. Fully engage employees – make them a part of the solution

� 4. Engage the community – products, labor pool, related causes

� 5. Pursue training and other opportunities (government, NGOs, etc)

Key Success Factors


Queen Sirikit National Convention Center2nd Fl., Zone D, Room 201/2, 60 New Ratchadapisek RoadKlongtoei, Bangkok 10110 Thailand

Tel +662-229-3131 or 3132Fax +662-229-3130www.kiasia.org

Thank you…

small enterprises and csr strategy building and implementing a sustainable csr strategy for small...

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