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The Impact of CSR on Performance and Development Strategies

Christian Gille. Sylvia Krenn. EU CSR-Call. The Impact of CSR on Performance and Development Strategies. EU CSR Call. CSR-CALL: Impact of corporate social responsibility. 1. How does CSR impact on the EU economies and societies?

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The Impact of CSR on Performance and Development Strategies

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  1. Christian Gille Sylvia Krenn EU CSR-Call The Impact of CSR on Performance and Development Strategies

  2. EU CSR Call CSR-CALL: Impact of corporate social responsibility 1. How does CSR impact on the EU economies and societies? 2. How is CSR beneficial to the Lisbon and Gothenburg objectives? 3. How does CSR favour the development of better methodologies and tools to measure the impact of CSR activities at: a) Company level: What are the motivations to take up CSR activities? What are the reasons for differences in CSR performance across companies? How is CSR and innovation linked?  b) European, regional or sectoral levels: Comparison of regionsor business sectors where CSR strategies are deployed. Why have CSR activities different impacts on growth, competitiveness, quality of jobs and sustainable development? economics sociology “To become the most dynamic and competitive knowledge based economy” Sustainable development (environment, economy, employment)

  3. EU CSR CALL 1. Open Issues regarding the 2nd draft for telephone conference • Title: The working title is “The impact of CSR on performance and development strategies“. What exactly is meant with development strategies and what does it refer to? • ESPON project: Are the mentioned hypothesis defined by the ESPON project members or is this your input? (see 2.3) • What is our common understanding of CSR, which definition is applied (EU-Definition)? Does it also include environmental issues? • How do you want to measure the impacts of CSR on company level? This could be part of IPRI's work package. • Could you please further explain the sentence in chapter 3.2.3, first paragraph • What is the sample of the intended large scaled survey? • What is the sample of the small scaled survey? i.e. 3 CSR Leaders and 3 CSR heretics • Which companies and business sectors do we want to address? Across all sectors or focussing on selected business sectors? • The call demands a special focus on SME, why do we look at larger companies as well? Is it intended to find any relationships between SME and large companies?

  4. EU CSR CALL 2. Our lessons learned from writing EU proposals From our experience while writing the EU proposal "Transforman" and some other EU proposals in the past, we would like to share our lessons learned and suggest the following points, we think might be very helpful: • We thought it was very helpful to, from the beginning, structure the proposal (table of contents) according to the given structure in the guide for applicants, and to add the information of page limits for each paragraph in brackets. • We thought it also very helpful to copy/paste the evaluation criteria, as given in annex 2 of the guide for applicants, into the relevant chapter in the proposal. This helps to focus, and in the final stage offers a good guideline for prioritizing work tasks. • We happily used the free services of the National Contact Point which offers very helpul support in questions regarding administrative issues, "Dos and Donts", and also gives valuable input regarding project structure, work packages, milestones and so on. • From our experience it is quite effective to hold a personal meeting shortly before the last internal deadline (15.12.) to work on the proposal together. This teamwork creates a stimulating and creative atmosphere in which the finalisation of the proposal can be strongly advanced. • A transparent overview about all members of the consortium (list with names, email, phone-nr, and assigned work packages) helps to manage the internal communication and avoids duplication of work.

  5. EU CSR-Proposal 3. Proposed structure for the Table of Contents (According to the Guide for Applicants) • Cover Page • 1. Scientific quality, relevant tot the topics addressed in the call (max. 22 pages) • 1.1. Concept and objectives • 1.2 Progress beyond the state-of-the-art • 1.3 European coverage and comparative perspective (max. 2 pages) • 1.4 S/T methodology and associated work plan • 2. Implementation (no max. length) • 2.1 Management structure and procedures (max. 5 pages) • 2.2 Individual participants • 2.3 Consortium as a whole • 2.4 Resources to be committed (max. 2 pages) • 3. Impact (max. 10 pages) • 3.1 Expected impacts listed in the work programme • 3.2 Dissemination and/or exploitation of projects results, and management of intellectual property • 4. Ethical Issues (no max. length)

  6. EU CSR-Proposal 4. Research Design • Goal: To describe, validate and evaluate impacts of the CSR concept on businesses and society. • 1. CSR impact measurement at the business level • Model: motivations, activities, impacts, andinterdependencies • 2. Impacts of CSR at regional and sectoral level • built on the previous research phase at business level by searching deeper interdependencies in gathered data • Model: CSR strategies and living standards in different regions

  7. EU CSR-Proposal 4. Research Design 4.1. Business Level Research objectivesaccordingtothecall:motivationsforcsractivities, effectsof CSR andtheanalysisofactivitiesthathelptomeet LGS objectives Effects (impacts) CSR activities Motivations for CSR activities Small scaled survey: Case Studies for deepening knowledge about CSR Large scaled survey: Computer-assisted questionaire; 2 sub-samples (SME and bigger)

  8. EU CSR-Proposal 4. Research Design4.2. Regional and sectoral level Typology of CSR strategies Set of LGS objectives CSR strategies GDP growth, competitiveness, quality of jobs and sustainable development searching deeper interdependencies in gathered data identify and name CSR strategies and study relationships between the CSR strategies and key Lisbon and Gothenburg objectives Assessing tangible impact of CSR strategies Performing pan-European, regional and sectoral comparisons

  9. EU CSR-Proposal 5. Research Phases 2 1 3 Analysis of publicly available sources on CSR. The output will be list of companies known locally as the CSR Leaders. Contextual analysis of annual reports of the identified CSR Leaders. A CSR model consisting of motivations, activities and impacts will be built upon previous research to asses CSR motivation and impacts on business level 4 5 6 Empirical research of motivations and CSR impacts large sample for model testing, hypothesis and questions small sample of businesses will be researched in-depth in order to create case studies on detailed understanding to motivations for CSR Analysis of CSR activities to reveal those helping meet the LGS objectives a) Establishing a typology of CSR strategies using the cluster analysis technique b) literature review of existing reports on EU competitiveness to find variables (indicators, proxies) for living standard in regions 7 8 Another model consisting of CSR strategies and living standards in different regions will be built to assess CSR impacts at regional and sectoral levels Testing the model on the large sample data

  10. EU CSR-Proposal 6. Suggestions and Input IPRI could offer • 1. Possible organisational input • Experience and lessons learned from several EU proposals and particularly the Transforman proposal. • 2. Possible research input • to research appropriate indicators for the measurement of csr impacts on business level • to integrate these indicators into the enterprises control system • to bring in broad knowledge in developing and conducting performance measurement systems • to support the development and evaluation of an empirical pan-European study • to deliver an overview of CSR benchmarks from Germany

  11. EU CSR-Proposal 7. Recommendation: Studies and Literature • KPMG International Survey of CR Reporting 2008 (released October 27) • EUROPEAN MULTISTAKEHOLDER FORUM ON CSR, Final results and recommendations, June 2007. • Deloitte / Kirchhoff, The Good Company Ranking - Evaluation of the Corporate Social Responsibility. • SME Research, Austria: CSR and Competitiveness-European SMEs Good Practice, Consolidated European Report, funded by European Commission. • Barnett, M.L. (2007), Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review, Vol. 32, No. 3, 794–816. • Epstein, M. (2008), Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental and Economic Impacts. San Francicso: Berrett-Koehler Publishers. • Orlitzky, M., F. L. Schmidt and S. L. Rynes (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, Vol. 24, No. 3, 403-441. • Porter, M. E. and M. R. Kramer (2006). Strategy & Society: The link between competitive advantage and Corporate Social Responsibility. Harvard Business Review Vol. 84, 78-92. • WGARIA: Working Group Accounting and Reporting of Intangibles (2005). Corporate Reporting on Intangibles - A Proposal from a German Background. Schmalenbach Business Review, Special Issue 2, 65-100.

  12. EU CSR-Proposal 7. Recommendation: Literature and studies • W. Visser, D. Matten, M. Pohl, N. Tolhurst (eds.) The ICCA Encyclopedia of Corporate Social Responsibility, London (John Wiley), 2008. • A. Crane, D. Matten (eds.) Corporate Social Responsibility – A Three Volumes Edited Collection, London (Sage) 2007. • A. Crane, D. Matten, L. Spence. Corporate Social Responsibility in Global Context – A Reader, London (Routledge) 2007. • A. Crane, D. Matten, A. McWilliams, J. Moon, D. Siegel (eds.). The Oxford Handbook of Corporate Social Responsibility, Oxford (Oxford University Press) 2007. • A. Crane, D. Matten Business Ethics: A European Perspective – Managing Corporate Citizenship and Sustainability in the Age of Globalization, Oxford (Oxford University Press) 2004. • Matten, D. and Moon, J., “IMPLICIT” AND “EXPLICIT” CSR: A CONCEPTUAL FRAMEWORK FOR A COMPARATIVE UNDERSTANDING OF CORPORATE SOCIAL RESPONSIBILITY, in: Academy of Management Review, 2008, Vol. 33, No. 2, 404–424. • Jamali, D. A Stakeholder Approach to CSR: A Fresh Perspective in Theory and Practice, in: Journal of Business Ethics (2008), 82: 213-231. • Korhonen, J., Should we measure CSR?, in: Corp. Soc. Responsib. Environ. Mgmt (2003), 10, 25-39. • Ruf et al (2001), An Empirical Investigation of the Relationship Between Change in CSPerformance and Financial Performance, in: Journal of Business Ethics 32: 143–156, 2001. • Alnoor Bhimani and Kazbi Soonawalla, From conformance to performance: The corporate responsibilities continuum, in: Journal of Accounting and Public Policy 24 (2005) 165–174.

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