supplier’s strategy of corporate responsibility (cr) peter zhou
TRANSCRIPT
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Supplier’s Strategy of Corporate Responsibility (CR)
Peter Zhou
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Agenda
•The Evolution of Global CR
•Developing a CR Strategy
•CR Strategies Case Study
•The Point of View of 3rd Party
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The Evolution of Global CR
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Business Objectives and CR“Th
e business of business is business” A
company’s role is to make money“In
a free society...there is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.” - Milton Friedman 1970
A Company’s role:
•Make money for the owners at cost of community and stakeholders?
•Make money for the society and bring benefits to community and stakeholders?
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•CSR is about corporate actions beyond compliance, undertaken on the basis of a business case.
•From peripheral activity to business imperative.
•From ad-hoc contributions to strategic approach to building community partnership.
•CSR is a set of mechanisms for aligning corporate behavior and objectives with the wider interests of society.
•CR as an integral part of long term business strategy.
Business Objectives and CR
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The Evolution of Global CR
Being world classRole modelOffensive CSRStage 3
Helping out where governments fail
Activist local citizen
Development agent
Stage 4
Joining others in moving urgent global solving along
Global citizenGlobal problem-solver
Stage 5
Reputation protectionGood corporate citizen
Defensive CSRStage 2
PhilanthropyPatronCharityStage 1
MotivationRoleCategoryStage
Being world classRole modelOffensive CSRStage 3
Helping out where governments fail
Activist local citizen
Development agent
Stage 4
Joining others in moving urgent global solving along
Global citizenGlobal problem-solver
Stage 5
Reputation protectionGood corporate citizen
Defensive CSRStage 2
PhilanthropyPatronCharityStage 1
MotivationRoleCategoryStage
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Enterprise Management Trend
Consumer Needs Propel the Development of Enterprise
Management Production Mgmt
EHS
Environment Mgmt
Quality Mgmt
1960-
1980-
1990-
2000-
Capacity
Quality
Environ-ment
Safety
Social Responsibility MgmtSociety
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Developing a CR Strategy
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Steps to Develop CR Strategy
•Analyze the market and the industry
•Risk Assessment
•SWOT analysis
•Value Chain Analysis
•Adjust CR strategy and programs to be operational, systemized, review and assessment
•Redesign organization and responsibility
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Major Corporate Stakeholders
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Analyze Market & Environment
CRStrategy
Business Value Chain
Raw Material
Stak
ehol
ders
Stockholders
Clients
Customers
Employees
LocalCommunity Process Distributi
on
Marketing & Sales
Environment
Employment
Education
Poverty
・・・
Social Issues
Whom WhatWhy
How
Service
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Risk Assessment
Focus areas:•Working and living conditions
•Labour and environmental practices
•Health and safety
•Environmental impact
•Local laws and regulations
•Stakeholders concerns
Business
Goals
Risk
Assessment
Mitigation/
CR activities
Licence to
operate
Do no harm
Do good
Manage indirect effects
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SWOT Analysis
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Value Chain Analysis
Primary Activities
Technological DevelopmentTechnological Development
Human Resource ManagementHuman Resource Management
Firm InfrastructureFirm Infrastructure
ProcurementProcurement
Inb
ou
nd
In
bo
un
d
Lo
gis
tics
Lo
gis
tics
Op
era
tio
ns
Op
era
tio
ns
Ou
tbo
un
dO
utb
ou
nd
Lo
gis
tics
Lo
gis
tics
Ma
rket
ing
M
ark
etin
g
& S
ale
s&
Sa
les
Ser
vic
eS
erv
ice
Identifying Resources and Capabilities That Can Add Value
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Value Chain Analysis
DDelivery
QQuality
PPrice
Five criteria of customer demand
RCorporateResponsibility
RCorporateResponsibility
Customer Demand
PProduct
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Strategy: Solving Business Issues by CR
Suffered by the price competition recently
Pay attention to CR and change the existing area of
competition
Can not lower in costany more
Pay attention to CR and it is possible to lower in cost
Need to find new markets but have no clue
Pay attention to CR and find new marketing opportunities
→Make use of outer resources from the CR perspective
→ Increase the additional value from the CR perspective
→Discover marketing opportunities from the CR perspective
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Discover Market Opportunities
Existing CustomerSegment
Existing Customer NeedsSocial Customer Needs
Social Customer Segment
ExistingMarket
New market opportunities
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Staying One Step Ahead
Staying one step ahead than:
•Government’s requirement to obtain biz license;
•Customer’s requirements to obtain biz orders;
•Competitor to win industry leadership;
•Employee’s requirements to retain human resources;
•Community’s requirement to be an admired citizen
•Innovative/positive/proactive/preventive/partnership approaches
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Improvement Opportunities
•Awareness and understanding
•Lean Production system/productivity
•Labor relations/communications
•Energy efficiency/saving
•Purchasing/shipping planning
•Hiring planning
•Employee retention
•Worker welfare
•Environmental, Health and safety
•Management systems
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Environmental Programs
•Provide energy efficient products (Energy Star).
•Minimize product packaging material.
•Maximize eco-friendly packaging materials.
•Utilize eco-friendly product materials.
•Minimize Product Transportation requirement.
•Adopt environment friendly manufacturing and packing processes.
•Support Product Recycling Efforts.
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HKWHC, a NGO from HK–
Experience Sharing Session (April,2008)
HKWHC, a NGO from HK–
Experience Sharing Session (April,2008)
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Thank You!
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Tea Break
See you in 30 minutes