Presentation given in the 1st Bahrain International Social Responsibility conference about laying the foundation for CSR, getting the big picture and avoiding incidents.

1. Leading CSR and avoiding
breaches
Martti Kouhi

2. Corporate social responsibility
–an opportunity and a risk
 Well-managed CSR is a competitive advantage:
 Positive publicity and uplift for the company and its products
 More attractive as an employer, partner or investment
 Better staff morale and productivity
 Failing in CSR is a risk
 Negative publicity and reputation risk, disruption to working environment,
loss of customers, partners and employees...
 Examples of CSR failures are plentiful, and more being reported in the
media constantly
 CSR is the responsibility of the CEO, but managing it
requires:
 A clear overview
 Practical tools and methodologies
 The foundation has to be solid – otherwise CSR projects
will be seen as whitewash
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Solventor Ltd

3. CSR Hierarchy of Needs
We engage
in CSR
projects
We manage
controversy and
reputation risks
We don’t do anything
unethical
We don’t break any laws
© Solventor Ltd
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Solventor Ltd

4. Types of CSR incidents
Nature of
Legal but Legal but
action and Illegal
unethical controversial
intent
Corrupted Bad judgement Considered risk
Management management
intent
Enron Instagram Starbucks
Corrupted Uncontrolled Unconsidered
Employee employee(s) action risk
intent American
UBS Nokia
Apparel
Lack of Lack of Unidentified
oversight consideration risk
Unintended
HSBC BBH Fazer
© Solventor Ltd
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Solventor Ltd

5. Leading CSR
 There are three basic methods of leading CSR
 Leading values and ways of working
 Controls
 Risk Management
 Focus is on different methods for preventing the different
types of incident, but all are used across the board.
 The methods include concrete and practical tools and
procedures.
 CSR is led through creating a management framework and
instilling a culture via visible actions.
 Well-defined CSR management framework also functions
as reputation insurance.
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Solventor Ltd

6. CSR Management methodologies
Nature of
Legal but Legal but
action and Illegal
unethical controversial
intent
Management
Leading values
intent
and ways of
working
Employee Risk
intent Management
Controls
Unintended
© Solventor Ltd
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Solventor Ltd

7. CSR embedded in the business
 There are 7 focus areas for CSR, each containing
several focus points.
 For each focus point, the following should be
defined:
1. What is its target in terms of CSR?
2. What are the values and the ways of working that help achieve the
target?
3. What controls are relevant in preventing mishaps?
4. What risk management tools can be applied?
5. What concrete actions are needed to implement the above?
6. Who owns the actions?
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Solventor Ltd

8. CSR focus areas
Ethics
Copyright: Solventor Ltd
Governance •Anti-corruption
•Organisation •Political activity
•Roles, •Competition Health,
responsibilities and •Conflict of interest
authorities Safety and
•Suppliers and
•Role of non- partners Environment
executive board •Human rights and •Environment
•Strategy and goals diversity protection
•Assurance •Personnel relations •Sustainability
•Personnel •Occupational
health and safety
Finance development
•Laws and regulations •Product
•Audit programs
responsibility
•Follow-up of
exceptions
•Planning Communication
•Management
and reputation
information
management
Risk •Communication
IT responsibilities and
•Access right
management authorities
•Security and continuity •Transparency
•Personal data •Operational risk •Social media
•Disaster recovery management •Consumer and customer
•Linking IT to strategy •Business continuity relations
•Crisis management •Brand management
•Succession planning •Crisis communications
Solventor Ltd © Solventor Ltd

9. CSR is core business
 The CSR focus areas are at the heart of the
business and enterprise management.
 Good CSR management works to advance
business goals as well as CSR goals.
 CSR is not an add-on, it is core business.
 The time to ensure proper leadership of CSR is
now – when the need arises, it is already too late.
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Solventor Ltd

10. Questions or comments ?
Martti Kouhi
Tel +358 40 540 1282
E-mail: martti.kouhi@solventor.fi
www.solventor.net
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