compare integration in corporate social responsibility and corporate sustainability
CSR activities may not be deeply integrated into core business, whereas sustainability emphasizes integration into business strategies.
compare proactivity in CSR vs sustainability
Sustainability goes beyond compliance, actively minimizing negative impacts, while CSR may not always have a proactive stance.
who does CSR target?
Targets opinion formers, e.g., media, politicians, and pressure groups
trends in sustainability (6)
- company-centric focus towards supply chain considerations -> companies are increasingly looking beyond their immediate operations and are considering the entire supply chain.
- environmental concerns expanding towards social impact
- check the box mentality shifting to making an impact mindset
- shift from top-down to bottom-up involvement
- from nice to have to need to have
- greater involvement of CFOs and CEOs
responsibility levels in hte CSR hierarchy (archie, carrol, chandler) (4)
- economic responsibility
- legal responsibility
- ethical responsibility
- discretionary responsibility
what’s discretionary responsibility
engage in proactive, and strategic actions
key characteristics of discretionary responsibility
- initiatives that exceed legal and ethical obligations
- voluntary initiatives that aim to benefit company + the society as a whole
-> example: Unilever’s rural India efforts, Tony Choconely
materiality matrix: x and y axis
X Axis -> Significance to Business
Y Axis -> Significance to Stakeholders
if there’s major significance to business, and significant signidicance to stakeholders …
medium materialty
(important areas for activity, some disclosure)
major importance to business, and moderate to staheholders…
limited materialistic (watch list, voluntary disclosure)
steps of generating a materiality matrix (6)
- select and assess relevant stakeholders
- define a long list of sustainability topics
- rank the topics and create a short list
- rate the business impact in terms of risk and opportunities
- construct a concept of materiality matrix
- get sign of by senior management and document the process
triple bottom line approach
considering financial (1), social (2), and environmental outcomes (3).
true costs
an accounting method that assesses the total financial, social, and environmental impact of a company’s actions, including previously unaccounted external costs.
3 main elements of the sustainability reporting landscape
- regulations -> eu taxonomy, sustianable finance disclosure
- reporting frameworks -> gri
- global goals -> SDGs, principles for responsible investment
GRI reporting principles (4)
- materiality
- stakeholder inclusiveness
- sustainability context
- completeness
completeness
reports must cover material topics and their boundaries comprehensively
ensures that the report offers a full and accurate representation of the org.s efforts and their outcomes.
sustainability context
organizations performance within the broader context of sustainability, considering the environmental, social, and economic aspects.
=> aims to provide a holistic view.
stakeholder inclusiveness
how the organization has addressed the stakeholders expectations
-> ensures that the report is responsive to stakeholder needs and fosters transparency and engagement
GRI Reporting principles for defining report content
(6!!)
- reliability
- accuracy
- timeliness
- balance
- clarity
- comparability
the 5P’s of SDGs
- people
- prosperity
- planet
- peace
- partnership
principles for responsible investment (6)
- integrate ESGs into decision making
- active ownership
- disclosure
- industry advocacy
- collaborative enhancement
- transparent reporting
dougnut economics
suggests two key areas: a social foundation (basic standards for a good life) and an environmental ceiling (limits on human impact). The goal is to stay within this “doughnut,” achieving prosperity while respecting ecological boundaries
WEF global risks report
annual report by the world economic forum that assesses global risks in terms of LIKELIHOOD and IMPACT
value chain control is…
overseeing and influencing the sequence of activities organizations use to deliver a product.
