Corporate Social Responsibility

Challenges & Opportunities

28th October 2009

Ahmad Naved, Managing Partner, Raee Public Relations

What is CSR?

What CSR is not

Social issues when aligned with corporate objectives become CSR

Why CSR? The social responsibility of business is to increase its profits - Milton Friedman
The modern corporation
Jobs Economic activity Knowledge generation

Required by law to sacrifice all other interests to the interests of the shareholder Should it do more?

Communicating
PARTNERS Brand Promise: Sustainable value & growth Brand Promise: Mutual value creation

Brand Promise: Trust, integrity, best practices, alignment with policy priorities GOVERNMENT

Brand Promise: Innovation, creativity, best in class

STOCKHOLDERS

BRAND

INDUSTRY PEERS CONSUMERS

GROUPS EMPLOYEES Brand Promise: Financial security, career advancement, team spirit, pride Brand Promise: Value, convenience, quality, experience

Isnt social sector the governments purview?

Healthcare, education, poverty eradication, human rights, environment
Laws to regulate Taxes to fund

Civil society engagement in social issues

NGOs Web 2.0
Dont trust government / big business

We can no longer go on with business as usual Mohamed Yunus

Climate change Fallibility of capitalism

The haves and the have nots

Millennium development goals CSR a powerful tool for corporations to adjust seamlessly to evolving realities

Busting CSR myths

The market can deliver both short term financial returns and long-term social benefits The ethical consumer will drive change There will be a competitive race to the top over ethics amongst businesses In the global economy, countries will compete to have the best practices

Opportunity knocks
From cost to growth From visibility to transparency From containment to engagement A new kind of business: Social entrepreneurship

Building corporate responsibility

A growing body of evidence asserts that corporations can do well by doing good - George Pohle and Jeff Hittner

Legal & Compliance Strategic Philanthropy Values Based self regulation Efficiency Growth Platform

CSR amidst recession

These are the times that try mens souls - Thomas Paine The Boston Colleges Center for Corporate Citizenship Survey 2009 IBM institute for business value - Leading a sustainable enterprise 2009

Corporate Citizenship Survey: Continued commitment to corporate citizenship despite the recession

Corporate Citizenship Survey: A new role for business in public policy

Corporate Citizenship Survey: Increased appreciation of CSR business value

IBM study: Want to do Vs. Need to do

IBM study: CSR a strategic objective

IBM study: Waking up to reality

IBM study: An evolving knowledge base

Raee CSR study: A GCC perspective

CEO survey
47 respondents UAE & KSA Conducted by TNS between 15th & 25th October

Key insights:
Blurred line between CSR & individual charitable initiatives Pet projects Low awareness of international best practices and science CEOs consider it important yet it remains a cost Dubai (DCCI) investing in considerable spadework for CSR framework development for region

How can you develop CSR programs for your brands? 5 steps
Clarity Honesty Knowledge Impact
Financial bottomline Social bottomline

Measure & learn

Thank you
naved@raeepr.com