Promotion of Corporate Social Responsibility

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Promotion of Corporate Social Responsibility Nov
ember 23, 2004 Tomosaburo Yano METI

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Contents

• 1. CSR is Old Song New Song
• 2. Benefit for Enterprises
• 3. CSR and ISO
• 4. Asian Leadership

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CSROld New Song (Coporate Social
Responsibility)
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CSR is an Old Song

• ? Good for Sellers, Good for Buyers, Good for
  the People
• from Ohmi Merchants Way Three-Sided
  Good in 1600s
• ? Economy without Morals is Crime, Morals
  without
• Economy is Talking in Sleep
• from Sontoku Ninomiya, a great thinker
  of the 1800s
• ? Your work is not yours for yourself. Your
  work is the
• Peoples work which the People gives you
  to do
• from Konosuke Matsushita, Founder of
  Panasonic

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Tradition of CSR among Japanese Firms

• ?Human-centered management
• -Employees as the single most precious resource
• practice lifelong employment
• provide education training while respecting
  individual desire and preferences
• -Manager and labor work together in efforts
• to improve labor environment and conditions
• ? resulting in smaller income gap between
  employers and employees

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Core Value of Japanese Society

• ?Wa at the core of human-centered management
• - The Japanese core value of Wa, which might
  be translated as harmony, permeates
  Japanese
• society
• - It dictates that we must live in harmony
  with each
• other as well as with the community and
  nature

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Corporate Social Responsibility From
shareholders to stakeholders
Bottom line of enterprise
Economic efficiency
Social Fairness
Environmental preservation
Evaluation of enterprise performance
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Triple Bottom Line
Fairness
Society
Economy
Sustainable growth
Balance
Coexistence
Environment
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Why is CSR Important Now ?

• ? Enlargement of size of enterprises and
  globalization of corporate activity -gt
  Business enterprises exert influence upon society
• ? Expansion of communication beyond national
  borders plus IT revolution -gt "Credibility and
  trust" of enterprises is a central issue
• ? Various stakeholders have influential opinions
• -gt Increasing influence of NGOs opinions
• ? Frequent scandals involving business
  enterprises enhance interest in corporate ethics
  
• ? Rise of investors who emphasize CSR as an
  investment criterion (SRI Socially Responsible
  Investment)

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Relationship between Business Enterprises and
Stakeholders
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Benefit for Enterprises

• 3R for CSR
• Responsible
• Reliable
• Respectable

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• ?Credibility and Reputation
• To realize continual and stable growth of
  organization
• To ensure credibility from society
• To fuse with local community (corporate citizen)
• ?Competitive Advantage
• To increase corporate competitive advantage in
  the global market
• To ensure SRI (social responsible investment)
• ?Risk Management
• To provide effective compliance techniques
• To cope with risk to managers due to
  stockholders' representative action
• (Source) KEIZAI DOYUKAI (Japan
  Association of Corporate Executives),
• 
  The Corporate White Paper / 2003 etc.

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Factors to Build CSR in Business

(Source) World Economy Forum / CEO Survey, 2002
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Shift to Knowledge-based Economy
Environment
Intangible asset
Tangible asset
CSR
Brand value
Good reputation of organization
Employees satisfaction
Executives planning capability
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Different Expectations of CSR

ltHuman relationgt ltCorporate as communitygt
ltCorporate Citizen gt
ltSocial cohesiongt
Interests depend on regions, religions and
customs.
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CSR is an Investment for Tomorrow

• Sustained and Stable growth of organization
• Securing credibility from society
• Improvement of corporate compatibility in global
  market
• Providing effective compliance techniques
• Reconciliation with Corporate citizenship
• Securing of SRI

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CSR and ISO

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General meeting To be held once a year
ISO Organization chart
Council 18 member nations
Central Secretariat consisting of 165 persons
including Secretary General
Committee on conformity assessment (CASCO)
Technical Management Board (TMB)
Committee on developing country matter (DEVCO)
Advisory Group on CSR
Technical Committee (TC)
Committee on consumer Policy (COPOLCO)
Sub-committee (SC)
lt148 member nationsgt
Working Group (WG)
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CSR Standards of Developed Countries

• Australia AS 8003 (Corporate social
  responsibility)
• Canada PLUS 9018 (Corporate social
  responsibility)
• France SD21000 (Development of corporate social
  responsibility)
• Japan ECS 2000 (Corporate ethics compliance
  standard)
• Japan Keidanren Implementation Guideline (Japan
  Business Federation)
• Spain PEN (Ethics - corporate ethics management
  system)
• Thai TLS8001 (Thai Labour Standards- Thai CSR
  Requirement)
• U.K. AA 1000 (Social and ethical accountability)
• U.K. SIGMA (Sustainable - management guideline)
• U.S. EOA (Corporate activity management system)
• U.S. SA 8000 (Social accountability)

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International Statement on CSR

• OECD multinational corporate guideline(1976/revise
  d in 2000)
• ILO/Tripartite Declaration of Principles
  concerning Multinational Enterprises and Social
  Policy(1977/1987/2000 addition)
• Guideline for Corporate Behavior at the Caux
  Roundtable Meeting(1994)
• United Nations Global Compact(2000)
• GRI Guideline(2000/revised in 2002)
• ?CSR was discussed at G8 Evian Summit
  (June 2003)

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Discussion of ISO/SR

• April 2001 ISO Council (Proposal from Israel)
• May COPOLCO Plenary (Launch the CSR
• Feasibility Study)
• May 2002 COPOLCO/CSR Final Report
• SeptemberISO Council (establishment of SAG)
• January 2003 The 1st SAG meeting (Toronto)
• February The 2nd SAG meeting (Geneva)
• July The 3rd SAG meeting (São Paulo)
• January 2004 The 4th SAG meeting (Munich)
• April The 5th SAG meeting
  (Chicago)
• Completion of Report ?
  TMB

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(No Transcript)
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ISO/SR Conference, Stockholm, 21-22 June, 2004
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Future Development of ISO/SR Standard
June 2004 ISO/SR Conference
(Stockholm) June TMB
(establishment of WG) September TMB (Chair
Secretary Sweden and
Brazil) October NWIP voting March 2005
First Meeting of WG (Brazil) 2007
Issue ISO/SR Guideline
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ISO Working Group on SR

• Membership
• 6 experts per ISO member bodies.
• 2 representatives from each intl.
  broadly-based regional liaison orgs
• Chair Mr.Jorge Emanuel Reis Cajazeira, Suzano
  Pulp Paper, of Brazil.
• Secretary Mr.Eduardo Campos De Sao Thiago, ABNT
  official, of Brazil Ms.Kristina Sandberg, SIS
  official, of Sweden.
• Timeframes 3 Years
• First meeting(Foreseen) 1st Q of 05, in Brazil

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Asian Leadership
Lets take the challenge of making our own
international standard !
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Participation in ISO/SR/WG

• ? Asian area
• - is a key region in production and
• consumption in the world.
• - should participate energetically in the
• process of standard development to
• create own international standard.
• - most enlarge its existing network to
• share our experience and knowledge on SR.

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Japans Statement

• Social responsibility, as the overall
  relationship of the corporation with all of its
  stakeholders, is the most significant issue the
  world is facing. ISO work will thus lead us into
  a new global phase.
• Japan is eager to contribute to broadening
  awareness of ISO/SR and development of
  supporting tools such as regional seminars, and
  exchange of experience in best practice and SR
  implementation.

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AP-COPOLCO Workshop on CSR

• AP-COPOLCO, a regional community
• of Asia and Pan-Pacific countries
• chaired by Japan, is planning to have
• a workshop on SR next December,
• in order to have talks with developing
• countries that potentially would have
• difficulty with regular participation in
• face-to-face meetings by this means,
• we hope to ensure broad input.
• AP-COPOLCO plans to establish
• the SR Forum to expand awareness
• of SR.
• Contact sekiguchi_at_jsa.or.jp

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CSR International Symposium

• The Institute for International Studies and
  Training (IIST, Japan) will hold
• an International Symposium on CSR supported by
  METI as a part of the
• Project of APEC Human Resources Development.
• Date Wednesday, January 19, 2005
• Place Keidanren Hall, Tokyo
• Participants APEC Member countries and regions
  
• Contact inaba_at_iist.or.jp

JICA/AOTS/APEC Training Seminars
JICA (Japan International Cooperation Agency),
AOTS (Association for Overseas Technical
Scholarship), APEC provide several opportunities
to study on CSR in their training programs for
developing countries.
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Work together toward 2007

• ? CSR is a complex and broad range of issues
  business ethics, human rights, environment
  management, community development and more.
• ?Japan would be happy to help the WG provide the
  opportunity to get everyone involved in the ISO
  process so that all the participants can have
  their own international standard on SR.
• Businesses are run by People for People

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THANK YOU

• Contact
• Tomosaburo Yano
• METI/JISC
• Phone [phone]
• Fax [phone]
• E-mailyano-tomosaburo_at_meti.go.jp
• Yutaka Okamoto
• Mihoko Sakurai
• JSA
• Phone [phone]
• Fax [phone]
• E-mailmisakura_at_jsa.or.jp