Welcome toCorporateSocialResponsibility(CSR)in the Meetings Industry

Dr. Joe Goldblatt

10 July 2009

International Congress & Convention Association

Corporate Social ResponsibilityCorporate Social Responsibility

A Manifesto for 21A Manifesto for 21stst Century SuccessCentury Success

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withDr. Joe Goldblatt, CSEP

Executive Director

Copyright 2006 TempleSTHM

AgendaAgenda• Defining CSR

• Why Do the Right Thing?

• What is the Right Thing?

• Morals, Ethics, and Law

• Risk Assessment, Planning, Management andEvaluation

• When is a Gift a Bribe?

• The Opera House Case Study

• Questions, Answers, and Discussion

• Conclusion

Loss of Reputation

And more…

• China Milk Disaster

• Fannie Mae / Freddie Mac

• General Motors

• Lehman Brothers

• Bernard Madoff

• Royal Bank of Scotland

• Washington Mutual

CSR: Old Wine in New Bottles?

• Adam Smith, 18th century: “Work ifperformed ethically would result inpersonal gain.” (Smith, Adam, The Wealthof Nations)

• The person conducting the work is thesteward of the organization and society aswell. (Smith, Adam, The Wealth of Nations)

The Seven Boundaries of StrategicCorporate Social Responsibility

1. Satisfy customers with goods andservices of real value;

2. Earn a fair return on the funds entrustedto the corporation by its investors;

3. Create new wealth, which can accrue tonon-profit institutions which own sharesof publicly-held companies and help liftthe poor out of poverty as their wagesrise;

7 Boundaries

4. Create and maintain new jobs;5. Defeat envy though generating upward

mobility and giving people the sensethat their economic conditions canimprove;

6. Promote innovation; and7. Diversify the economic interests of

citizens so as to prevent the tyranny ofthe majority.

The Johnson & Johnson Credo

We believe our first responsibility is to the doctors,We believe our first responsibility is to the doctors,nurses, and patients,nurses, and patients,

to mothers and fathers and all others who use ourto mothers and fathers and all others who use ourproducts and services.products and services.

In meeting their needs everything we do must be ofIn meeting their needs everything we do must be ofhigh quality.high quality.

We must constantly strive to reduce our costsWe must constantly strive to reduce our costsin order to maintain reasonable prices.in order to maintain reasonable prices.

Customers' orders must be serviced promptly andCustomers' orders must be serviced promptly andaccurately.accurately.

Our suppliers and distributors must have anOur suppliers and distributors must have anopportunityopportunity

to make a fair profit.to make a fair profit.Source: www.ethiconinc.com

Comprehensive Focus onPerformance• Corporate social responsibility is a

comprehensive business strategy, arising mainlyfrom performance considerations andstakeholder pressure. Companies focus on howthey interact with stakeholders and how businessactivities impact on society. Therefore, allcorporate social responsibility efforts must beultimately focused upon performance.

• Source: Silberhorn, D., Warren, R. , European Business Review, (2007) Volume:19, Issue: 5 Page: 352 –372

A Scandinavian View

• A 20 year veteran convention and visitorsbureau executive states:

• “The more things change, the more theystay the same. I examined a marketingreport written 20 years ago and our basicstrategies today are largely the same.Taking care of our customers is ournumber one strategy.”

Copenhagen Case Study

• The 'green meeting' is a reality inCopenhagen.

• 97% of all hotels and venues have measuresto reduce environmental impacts.

• Scandic donates sheets, towels and furnitureto homeless shelters.

Source: Wonderful Copenhagen, 2009

Welcome HomelessSculpture Tour

• Human size bronze sculptures ofhomeless people exhibited aroundEurope.

• Wonderful Copenhagen sponsoredthe rest of the journey from Londonto Cardiff in Wales and back again.

Source: Wonderful Copenhagen, Welcome Homeless, 2009

Why?

“I created these 30 sculptures because the biggestthreat in a society is not the foreigners, but theway we welcome the foreigners”.

“We support this project because it is a good andinteresting initiative, which places an importantproblem into focus – a problem which is alsovisible in Denmark. So I am very pleased that SAShas the opportunity to help spread the message.”says CEO in SAS Denmark, Susanne Larsen.

Source: Jens Galschiot, sculptor, 2009

Event Corporate SocialResponsibility Mission:

Promote the Arts inDisadvantaged

Neighbourhoods

Corporate Sponsor:Provide a 5% donation forevery product purchased tosupport arts education in

local after schoolprograms.

Vendors:Provide in-kind donations

of equipment andpersonnel to supply local

arts performances.

Clients:Provide a small optionaldonation for each ticket

sold to the event to supportafter school artsperformances.

Event Corporate SocialResponsibility Mission:Improve Child Health

Central Governmentdepartments:

Health, Recreation,Tourism

Central Non GovernmentalAgencies:

Child welfare, children’s

health, local hospitals and

clinics

Central Quangos (Public-Private Partnerships):

Interdepartmental agenciessuch as environment and

health

Local governmentcounterparts

Local agencies Local quangos

One Meeting – Many Outcomes

• Economic

• Social

• Environmental

• Political

• Cultural

CSR in Europe

CSR is now presented as a comprehensivebusiness strategy, arising mainly from

performance considerations and stakeholderpressure. Companies focus on how they interact

with stakeholders and how business activitiesimpact on society.

Source: Silberhorn, D., Warren, R. , European Business Review, (2007) Volume:19, Issue: 5 Page: 352 - 372

CSR in IT

• Less than 25% of IT companies have a clearstrategy for corporate social

• responsibility (CSR).• Three quarters of IT companies recognize that the

environment in which they• operate has changed since the advent of the

Internet, but few have changed their attitude toCSR as a result.

CSR in IT

• Only 1 in 6 IT companies support Internet access initiativesfor the

• disadvantaged.• Most IT companies are scathing about the low level of

charitable• contributions made by industry as a whole and the IT

sector in particular.• Most IT companies consider charitable contributions to be

a prime target for spending cuts if there is a downturn inturnover and profits.

Source: Citizens Online (2001), Sample size: 220 IT business leaders in the UK with organizations ranging in size from 200 to 20,000 persons

CSR Key Precepts

• Social

• Economic

• Environmental

Key Values

• Sustainable Development

• Responsible Stewardship

• Legacy Building

London 2012

• New York loses the bid with celebrities

• Paris loses the bid with food and wine

• London WINS the bid with a stronglegacy plan

• Regeneration

• Renewal

Corporate SocialResponsibility MonitorPercentage of people who bought shares because of CSR:

Country %Italy 33USA 28Canada 26Japan 22Britain 21France 18Germany 18

Source: Corporate Social Responsibility Monitor, BSD Global.com

Wealth Matters

• In wealthy countries, individuals makepurchasing decisions based upon theirperception of CSR.

• In North America, 42% of customers will punishfirms who do not practice solid CSR.

• Conventional Activists (North America)

• Demanding Disgruntelds (Europe)

Source: Corporate Social Responsibility Monitor, BSD Global.com

Sarbanes/Oxley Act

• Enacted by U.S. Congress in 2002

• Reaction to U.S. public corporationunethical and illegal accounting activities.

• Requires full disclosure and greateraccountability by corporate leaders.

• Penalties include fines and imprisonmentfor corporate leaders

• Greater penalty: loss of reputation.

Why Do the Right Thing?

• “Hundreds of people burned to death in tent during graduationceremonies.” (India)

• “One hundred people die in nightclub fire in Rhode Island.”(U.S.A.)

• Hundreds are trampled, dozens die in stadium stampede inCincinnati. (U.S.A.)

• Thousands die in Baghdad pilgrimage stampede.

• How to you prevent or mitigate injury and death?

• How do you protect your guests and preserve your reputation?

Smirnoff Ice Dry Promotion in Tokyo, Japan

Planning and Management

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Temple University School ofTourism and Hospitality

Management

Case Study: The OperaHouse and the Gift or Bribe• $500 cash due immediately to reward police, fire, health and

safety officials.

• $100,000 event may be interrupted if officials are not paid.

• Do I Pay?

• Do I not pay?

• Do I do something else?

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Copyright 2006 TempleSTHM

Are YOU Standing onAre YOU Standing onthe Edge of a Event Disaster?the Edge of a Event Disaster?

The Latest from The EthicalResource Center

• Bad News

More individuals arehesitant to reportmisdeeds in theworkplace.

• Good News

More corporationshave policies forencouraging whistleblowing by theiremployees.

Source: Ethical Resource Center, www.ethics.org

Case Studies• Reduction

• Reuse

• Pre and Recycling

• Social Action

• Employee Assistance

• Vendor Coordination

• Public / Private Partnerships

What Will You Do?

• Create a personal credo,

• Demonstrate professional duty,

• Inform and educate others regardingvalues,

• Create a personal mission and visionstatement and

• Choose well.

Trump International Golf Links, Aberdeen, Scotland

Enter yourSubmit

Site Map | Portfolio | PartnershipInternet Marketing by Cendyn • Design by Stonewell Studios

Quotes fromSupporters

Coming Soon

“Much to the disappointment of local environmental groups ,the Scottish government has finally given Donald Trump permission

to build what he describes as“The greatest golf course in the world,”

in a remote part of Aberdeenshire,along with 1500 homes.

Originally rejected by Aberdeenshire Council,the Scottish government decided to over-rule

the local council’s decision in favour of“economic and social benefits.”

Source: Luxury Property Blog 2009

StewardshipStewardshipAndAnd

PerformancePerformance

Questions, Answers andDiscussion

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You Have a Good NameYou Have a Good Name

Once upon a time, in a distant city, my grandfather

met a stranger. Upon hearing my grandfather’ssurname, the strange replied, “You have a goodname.” The stranger went on to explain that mygreat grandfather was model citizen, a good fatherand husband who was respected by all. He thenrepeated, “You have a good name.” This is the solepurpose of this business. To perpetuate upon andbuild that good name for generations to come.

Source: Max Goldblatt, 1915-1995

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Additional Resources

• The ICCA Handbook on Corporate SocialResponsibility (Wiley, 2006)

• The Oxford Handbook of Corporate SocialResponsibility (OUP Oxford 2008)

• The Market for Virtue (Brookings Institution,2006)

• Corporate Social Responsibility, A Criticalintroduction (OUP, Oxford 2008)

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Dr. Joe Goldblatt, CSEPDr. Joe Goldblatt, CSEPExecutive DirectorExecutive Director

Queen Margaret UniversityEdinburgh, Scotlandjgoldblatt@qmu.ac.uk

Thank you!

International Congress & Convention Association