Besides the general training profile requirements, no specific skills or experience are recommended for this particular training module.

Specific Objectives

After the training module participants will be able to:

Understand the concept of CSR and it voluntary character
Acknowledge the links between sustainable development, business success and social responsibility
Map their business stakeholders
Identify the reasons and motivations to be active in CSR
Acknowledge business benefits and advantages of acting in a social responsible way
Recognised the obstacles/barriers to the involvement in socially responsible activities
Identify the CSR “state of the art” and expected CSR trends, at national and European level
Recognise the importance of integrating CSR issues into the companies’ and organisations’ management and operations
Identify the main CSR broad areas and issues
Identify the most relevant CSR issues for their own company or organisation and possible ways of engaging their stakeholders
Select from the 5 CSR broad areas the one or the one’s they are interested on going into deep

There are several ways to look to CSR.

In the project and as a definition we adopted the CSR definition given in the Green Paper “Promoting a European Framework for Corporate Social Responsibility” in which CSR is defined “as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (European Commission, 2001).

It is fundamental to stress out the voluntary character of CSR. In fact, being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing ‘more’ into human capital, the environment and the relations with stakeholders.

It is also fundamental to reinforce the European and international context in which this concept took form. In fact the European strategic goal decided in Lisbon: ‘to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion’ (Lisbon European Council, March 2000) is the integration into the European preoccupations and goals of the three pillars of the sustainable development: economic growth, social cohesion and environmental protection.

This is in line with the basic message of the Sustainable Development Strategy for Europe agreed at the Göteborg European Council of June 2001, that in the long-term, economic growth, social cohesion and environmental protection go hand in hand.

Also, the CSR concept is strongly linked with the “Triple Bottom Line” approach, whose main idea is that for an organisation to be sustainable it must be financially secure, it must minimise its negative environmental impacts and must act in conformity with societal expectations. CSR can also be understood as the business contribution to sustainable development.

In fact this new paradigm made the debate on the role of business in achieving sustainable development gain importance on a global scale.

CSR recognises the business role for the accomplishment of sustainable development and that companies can manage their operations in such a way as to enhance economic growth and increase competitiveness whilst ensuring environmental protection and promoting social responsibility.

It means that, nowadays, the business role in society is no longer only to be economical successful in the short term but be economical successful and sustainable in the long term, integrating in the business planning and daily operations, social and environmental concerns.

Although the prime responsibility of a company is generating profits, companies can at the same time contribute to social and environmental objectives, through integrating corporate social responsibility as a strategic investment into their core business strategy, their management instruments and their operations.

Questions:

Those are fundamental questions that several studies, surveys and publications tried to answer and which must be underlined and discussed in this module.

At this point we would like to draw attention to two fundamental studies:

One focused on the consumer’s point of view – Survey “The first ever European Survey of Consumers’ attitudes towards Corporate Social Responsibility” (conducted by MORI on behalf of CSR Europe, November 2000) and available on the CSR Europe website

Another one focused on the SMEs point of view in relation to the responsibility towards their ‘external’ stakeholders (wider community and the natural environment and not dealing with “internal stakeholders) – Report “European SMEs and Social and Environmental Responsibility” (Observatory of European SMEs, European Commission, 2002) and available on

This report provides a comprehensive look into the involvement, attitudes, costs/benefits and barriers of SMEs in relation to the responsibility towards their ‘external’ stakeholders in general, providing rich qualitative and quantitative data that can support the presentation and discussion of the previous questions. For this purpose please, see the Chapter 3 for the questions concerning “the social responsibility of SMEs to their external community” and Chapter 4 for the questions concerning “Environmental responsibility of SMEs”. See also the “Summary” for a quick overview of the main study results.

In fact the reasons and motivations for being socially responsible are quite simple. It’s a growing demand from the environment in which companies operate.

Where corporate social responsibility is a process by which companies manage their relationships with a variety of stakeholders who can have a real influence on their licence to operate, the business case of CSR become obvious. Thus, it should be treated as an investment, not a cost, much like quality management. They can thereby have an inclusive financial, commercial and social approach, leading to a long-term strategy minimising risks linked to uncertainty.

In fact there is a world of new business opportunities in the interception between business success, social responsibility and environmental concerns that SMEs can take advantage. The case studies developed for the all training programme are examples that there are good reasons and motivations, business benefits and advantages of working in a “CSR way”. Of course, that there are, as well, difficulties and obstacles to overtake and once again the case studies can be used as good examples of it.

By integrating corporate social responsibility into their strategies, companies can send a signal to the various stakeholders with whom they interact: employees, shareholders, investors, consumers, public authorities and non-governmental organisations (NGOs). In doing so, companies are investing in their future and can expect that the voluntary commitment they adopt will help to increase their profitability.

At this point of the discussion it is fundamental to insure that participants understand the importance of mapping their stakeholders in order to identify successful ways of working together for the benefit of all. In fact, stakeholder engagement has always been crucial to an organisation’s performance. Traditional forms of engagement, such as member engagement, citizen voting, employee dialogue and negotiation, have long been institutionalised through policies, norms and regulation. It is through these approaches that organisations have engaged them in contributing to the organisation’s success.

Today’s organisational challenges and the need to achieve sustainable development make it more important to engage previously ignored stakeholders as well as new stakeholders on new topics and in new ways. This is true for commercial enterprises entering new markets or facing changing societal expectations. It is equally true for public bodies, and civil society and labour organisations developing new constituencies and approaches to service and advocacy.

Furthermore, the imperatives of sustainable development reinforce the need to engage with stakeholders to realise specific organisational goals, as well as to meet broader social, environmental and economic challenges.

Other important points that must underlined during an “Introduction to CSR” module concern the “CSR state of the art” and “expected CSR trends”, meaning to give to participants a general overview about the “state of the art” in this field (at national and European levels) as well as the expected trends.

So, besides the information sources mentioned before we would like to stress out the reports “Corporate Social Responsibility: State of the Art, 2004” developed within the framework of the Leonardo da Vinci Pilot Project “CSR/SME - Promoting Social Responsibility in Small and Medium Size Enterprises” and available in the six countries involved and which collect relevant national information concerning “state of the art” in the CSR field, reasons and motivations, business benefits and obstacles to the companies involvement in socially responsible activities as well as expected CSR trends.

For this point in particular we recommend, as well the report “Corporate Social Responsibility: State of the Art Report – Highlights Report, 2004” resulting from the previous reports and highlighting the most important aspects found during the research and dedicating a special chapter to the expected trends in the CSR field and to the most important data concerning opportunities and obstacles to the development of social responsible practices in the partner countries.

As issues of corporate social responsibility become an integral part of corporate strategic planning and routine operational performance, managers and employees are required to make business decisions based on additional criteria to those they were traditionally trained to expect. Traditional models of organisation behaviour, strategic management and even business ethics do not always give sufficient preparation for managing companies in this new context.

That’s why it’s so fundamental to integrate corporate social responsibility into the training of existing managers and employees and to anticipate the skills that will be required of the managers and employees of the future. This training programme is a contribution to those needs.

In terms of conceptual framework besides the Green Paper “Promoting a European Framework for Corporate Social Responsibility” we adopted and adapted the conceptual framework developed by the expert group created by the European Commission’s Directorate- General for Enterprise under it’s multiannual programme for enterprise and entrepreneurship (“Responsible Entrepreneurship – A collection of good practice cases among small and medium-sized enterprises across Europe”, European Commission, 2003) assuming that there are 4 constituent parts of CSR (Marketplace, Workplace, Community and Environment) corresponding to the economic, social and environmental pillars underlying the concept of sustainable development. The social pillar is divided into its internal (workplace) and external (community) dimensions.

Besides these 4 CSR broad areas, the project partnership elected a 5^th CSR area – Business Ethics – assuming that behind any action taken by companies in the four previous areas, there must be an ethical behaviour from the companies and its managers, owners and employees.

So, in this module it will be presented, in a brief, systematic and holistic approach, the 5 CSR broad areas and its interactions:

To present the 5 CSR broad areas and it position into the CSR problematic, it will be used a “CSR Knowledge Map”.

Business Ethics

As mentioned before, in a CSR approach, Business Ethics must be behind any action taken by company’s managers, owners and employees, reason why it comes in first place in the training programme modular structure. Without understanding and incorporating this fundamental notion into business, the actions taken into one of the other 4 CSR broad areas does cannot be sustainable and effective. Technically Business ethics is the branch of ethics that examines ethical rules and principles within a commercial context, handling with the various problems that can arise in a business setting and special duties or obligations that apply to persons who are engaged in commerce. Those who are interested in business ethics ask, "Is the conduct ethically right or wrong?" In relation to CSR, this question should take into consideration (responsible dialogue) stakeholders affected by the decisions and actions of a company.

Workplace

Consistent workplace policies usually play a significant role in the success of any company or organisation, since it is the company’s employees that deliver productivity, customer care and innovative ideas. Without workforce a company is just an idea. In order to achieve high levels of performance, management must pay attention to a whole lot of details related to its workforce. The issue is quite complex, because the relevant topics cover a wide range of areas, from human resources management to health and safety at work and adaptation to change.

Environment

The notion of sustainable development, to which the EU is fully committed (Sustainable Development Strategy for Europe, Göteborg European Council, June 2001) stress out the idea of balancing economic growth and social inclusion with the preservation of a healthy environment for future generations. Recent decades have seen a marked increase in awareness and public concern about Environment. So nowadays, environmental protection is more than just a fashion. Environment is more than producing in a ‘green’ way or achieving a green label. It demands also a special way of thinking and acting all along the company processes lifecycle (from the moment raw materials are bought to the moment products and services are sold, consumed and disposed back into the nature). The main questions are: On what we think when we think on “Environment”? Which could be the most relevant environmental impacts of our company activity? On what we have to think if we want to manage our company environmental impacts?

Marketplace

Marketplace is one of the most important areas of corporate social responsibility (even if not one of the best known and understood) once it is the closest area to the company’s core business. The way companies operate in the market is a crucial indicator of how they have integrated social, ethical and environmental concerns into their business operations and decision-making process. Assessing the main social and environmental aspects in the different phases of product/service lifecycle (market research, design, development, production, distribution, consumption and disposal), developing long term relationships with customers, suppliers and business partners, developing responsible business and marketing practices (advertising, pricing, selling, etc) and identifying business opportunities for socially and environmentally responsible products/services specially for unserved markets (example: consumer groups with special needs) reflects the company’s commitment towards CSR.

Community

Nowadays, no company can afford to ignore the issues concerning the local community in which it operates, specially the SMEs, most of them highly depending on the local markets. The local community, where a SME operates, can include all groups of stakeholders legitimately interested in financial results as well as social and environmental impact of the company. In those cases where SMEs operate locally, their stuff, shareholders, customers, suppliers and authorities as well as possible peer and pressure groups can be located in the direct neighbourhood. SMEs are directly affected by the current state and developments of their local environment, i. e. in terms of efficient local infrastructure, spending power of customers, attractively of living space for employees and their families, etc. Being a responsible company is becoming more and more a question of survival, combined with the advantages and business opportunities due to strategic partnerships between the community and corporate sector. Besides to public recognition and respect for socially responsible business practice, SMEs and the community can profit both by corporate volunteering strategies as a pro-active CSR strategy directly related to the company’s location. Such activities realized as team or individual opportunities, enable employees to expand their skills in new environments. For those participants wanting to go into deeper we developed a training module per each CSR broad area, in which we will present the area in a more specific way.

The trainer will use the following main pedagogical methods:

Theoretical exposition
Development and discussion of case studies (working groups)
Development and discussion of exercises related to own practice (individual and in working groups)
In the case of the extended program, one of the choices given to the trainer is the possibility of using a “discovery and finding out method”: a visit to a local SME with good CSR practices

For the Standard Programme (4h) it is recommended to develop the following practical training activities:

Presentation, development and discussion of Exercise 1.1.
Presentation, development and discussion of Exercise 1.2.
Presentation, development and discussion of Exercise 1.3.
Presentation, development and discussion of Case Study nº 7
Transfer into practice (Participants should answer to a CSR awareness-raising questionnaire and try to commit themselves to action in CSR in their company)

For the Extended Programme (4h-8h) it is recommended the Standard Programme + one or more of the following activities:

Preparation of a list of questions to the study visit to a local SME with good CSR practices
Study visit to a local SME with good CSR practices
Presentation, development and discussion of Exercise 1.4.

Blackboard / whiteboard
Flipcharts
Beamer (video projector)
Computer
CSR Knowledge Map
Exercise 1.1., 1.2. and 1.3.
Case Study nº 7
“Corporate Social Responsibility – Awareness-raising questionnaire”, European Commission – D.G. Enterprise, 2004
“How to Organise a Study Visit to a Socially Responsible Company – Practical Guide”,  developed within the framework of the Leonardo da Vinci Pilot Project “CSR/SME - Promoting Social Responsibility in Small and Medium Size Enterprises” (extended programme)
Exercise 1.4. (extended programme)
Participant’s Feedback Questionnaire

Further Study Material to be given to the participants

Corporate Social Responsibility: State of the Art, 2004 (developed within the framework of the Leonardo da Vinci Pilot Project “CSR/SME - Promoting Social Responsibility in Small and Medium Size Enterprises” and available in the six countries involved: AT, EE, HU, IT, NL, PT)
CSR Glossary, 2005 (developed within the framework of the Leonardo da Vinci Pilot Project “CSR/SME - Promoting Social Responsibility in Small and Medium Size Enterprises”), Subjects: All subjects
“Corporate Social Responsibility – Awareness-raising questionnaire”, European Commission – D.G. Enterprise, 2004 (developed within the framework of the “Pan-European awareness-raising campaign on CSR”)

Although the standard duration suggested for this training module is 4 hours, we believe that its content is rich enough to expand the course duration up to an entire working day.

If you are planning to have an “Introduction to CSR” training module longer than four hours, we suggest you to add to the standard timetable one or more of the following extra activities: