Korean Business Community Meeting

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CSR Presentation at

Korean Business Community Meeting

Presented by Abosede Alimi.

December 11, 2014.

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Presentation Outline

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What Does This Mean For Businesses? 2

How the Korean Business

Community could implement CSR in Nigeria 4 Setting the Context

Key Drivers and Current Trends in CSR 3

Cases of Companies Successfully

implementing CSR in Nigeria 5

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Setting the Context

Can business thrive in a failed society?

Business

Government Society

What will society retain?

Businesses are part of the society in

which they operate and they need to

consider CSR as part

of their roles as good

citizens.

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Development Challenges Facing Nigeria

• High Unemployment Levels.

• Poor Infrastructural Development.

• Poor Standard of Living.

• Dearth in Human capital development.

• Insecurity.

• Bio-diversity and eco-system instability.

• Poverty.

• Poor healthcare.

• Poor Pollution control systems in place.

• Leadership and Government challenges.

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Source: WEF Global Risk Report 2013

The following outlines pressing risks confronting the long term survival of

major global corporations

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Connecting the Dots...

What are the Drivers of Sustainability?- Industry

Background

Source: Risk Interconnection Map 2013. WEF Global Risk Report

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Food/Energy Security

Political Instability

Reduced Foreign Investments in Treasury Bills

& and other Government Securities

Inflation Rate

Exchange Rate Volatility

Economic Risks Demystified

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Presentation Outline

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What Is the Implication For Businesses? 2

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Social responsibility as the thrust of CSR guides businesses to ethical decisions that

insulate the businesses and their operations from government agencies‟ direct regulations-Kaliski (2001)

What is the Implication for Businesses?

Corporate Social Responsibility (CSR) represents the idea that business has a duty to serve the society, as well as the financial interest of

stockholders (Aneke: 2014).

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What is the Implication for Businesses?

Companies therefore adopt socially responsible behaviour for the following reasons:

• To protect the company‟s right to exist which is dependent on its responsiveness to its external environment.

• To avoid scrutiny and sanctions from Federal, state, and local governments who can threaten increased

regulation if a business does not evolve to meet changing social standards.

• To enhance a firm‟s long-term viability. There is an

implicit belief that “long-run profit maximisation is

inexorably linked to CSR.” (Aneke: 2014).

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Presentation Outline

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1. A Global Agenda: MDGs

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1a. A Global Agenda: United Nations Global Compact

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2. License to Operate: Climate change, infrastructure and technology are changing how companies operate.

Upstream Downstream

Transport/Logistics– select, buys &

schedules optimum transport including road, rail, barge, ship, pipeline. Any form can occur anywhere in the chain

Storage – select, buys and schedules optimum storage inside pipeline, tank, farm or underground. Storage can occur anywhere in the chain.

Oil Natural Gas Power

• Makes wet gas dry

• Produces NGL

• Takes Sweet or Sour Crude

• Makes: LPG, MoGas, AvGas, Jet, Kero,, Fuel Oil, Base Oil, Bitumen, …

• Makes chemicals, plastics …

Production Manufacturing, Refining and Power Distribution Consumers

CHEMICAL PLANT

TANK FARM AIRPORT

RETAIL

DOMESTIC GRID

GRIDGAS FIRED POWER PLANT

MANUFACTURING OIL FIRED

POWER PLANT

PROCESSING PLANT TERMINAL

REFINERY:

TERMINAL WELL HEAD: OIL

WELL HEAD: OIL

WELL HEAD:

NATURAL GAS

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Local Communities

Technology Leaders

Suppliers

Government

Regulator

Local Forums Employees Investors Customers*

International Associations

Media

NGOs

*Customers include Retail, Private and Corporate clients

3. The pressure on/from stakeholders

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Presentation Outline

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Current Trends in CSR in Nigeria

• The past decade (2004 – 2014) has seen a steady evolution of the practice of CSR from corporate

philanthropy to a more structured model of intervention.

• Though Nigeria‟s private sector is still lagging

behind in the understanding and practice of standard CSR, there has been an increased interest and

Nigerian corporate establishments have begun to take

CSR seriously.

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1. From CSR to Sustainability: Businesses are going beyond CSR activities to responding to sustainability challenges to help drive business performance

Strategic Framework for Sustainability

Driving revenues:

New products, brand and marketing etc

Building

intangible assets:

Reputation, networks, license to operate / innovate etc

Mitigating risks:

Regulatory, physical, supply chain, product etc

Reducing costs:

Eco-efficiency, productivity gains etc

Less Certain / Long Term Certain / Short-term

Reduce negativeIncrease positive

Source: Accenture Sustainability Framework

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2. Alignment with Global Standards

Most Nigerian organisations are committing to international standards and best practice initiatives.

GRI Disclosure categories

Economic

- Economic performance - Market presence

- Indirect economic impacts

Environmental

- Energy - Water - Emissions

Human rights

- Procurement - Non discrimination

Society

- Corruption - Community - Security Practices

Product

responsibility

- Privacy - Compliance - Marketing

communications

Labour practices

- Employment

- Occupational health - Diversity

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3 . Adoption of formal reporting

Annual publication of a CSR/Sustainability report which details a Company‟s

economic, social and environmental impacts in addition to financial reports

published.

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4. Increasing Regulation: Sustainable Banking Model – Nigerian Sustainable Banking Principles

 Following what was termed a „Tsunami‟ in the Nigerian Financial sector in 2009, In July 2012 the Bankers Committee approved the adoption of these

principles created by the Central Bank of Nigeria

 It mandates all Banks to provide quarterly feedback reports on implementation

progress and issue its first sustainable banking report by 31 December 2014 at the latest

 The model consists of 9 key principles impacting Bank‟s business operations and activities and a 5 year implementation plan is required

 These principles represent the minimum requirements for the journey

towards becoming a more sustainable bank

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Current Trends in CSR in Nigeria Cont…

Increase in collaborations and public- private-non-profit partnerships

Promoting thought leadership and capacity building by sector

Stakeholder Engagement Forums Structured Employee Volunteering Program

Publicizing CSR Activities

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Presentation Outline

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How can the Korean Business

Community Implement CSR in Nigeria?

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Internally, they can do the following:

•Re-examine internal and external processes focusing on

procurement, sourcing and supplier management to ensure they represent a sustainable supply chain.

•Ensure there are policies/guidelines on Labour/ employment practices (Incl. Human Right and Gender diversity and inclusion).

•Ensure there are policies/guidelines on Waste Management.

•Ensure there are policies/guidelines on anti-corruption and corresponding sanctions for default.

•Ensure compliance to all applicable laws in their sector.

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Externally, they can do the following:

• Develop a clear strategy with which to engage, involve and develop the Community. This could be to diagnose, prevent, cure or treat the identified problem.

• Identify the area of the Company’s core

competency and how they can use this to address the needs of the Community.

• Identify credible partners within their stakeholder group to collaborate with.

• Join or participate in forums and organized

thought leadership events in line with the identified

focus areas the Company would like to focus.

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Presentation Outline

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Case Study 1: Financial Institution – First Bank of Nigeria Limited

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People Empowerment Community Support

Sustainable Finance Environmental

Sustainability

Governance

Objectives Targets Leadership Policy Resources

Sustainability Strategy

Vision - Enhancing stakeholder value now and in the future

Mission – Offering valued products, services and initiatives that enable a thriving and inclusive economy, which benefit society and environment

• Financial Inclusion

• Responsible Lending

• Women’s Economic Empowerment

• Customer Satisfaction - Products

• Ethics & Compliance

• Employee Development

• Diversity

• Human Rights

• Work/Life Balance

• Customer Safety

• Community Investment

• Supply Chain

• Energy Reduction

• Business Travel

• Paper Usage

• E-Waste

• Water Management

E & S Governance Structure, Policies/Procedures and Audit & Compliance Performance Management & Reporting

Corporate Strategy

Stakeholder Engagement , Partnerships & Communication FirstBank Sustainability

Strategy Framework

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Case Study 1: Financial Institution – First Bank of Nigeria Limited

Left: FirstBank supports children living with down syndrome through a radio show titled „Hope Rising‟

aimed at reducing stigma and discrimination of the disease and by sponsoring their annual inter house sports.

Bottom Left: FirstBank constructs a sports pavilion for Queens College, Lagos.

Bottom Right: FirstBank staff carry out employee volunteering

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• According to Etisalat, “Our CSR vision is to create a sustainable economic and social impact through limitless reach. We want to extend the reach of the Nigerian people by providing socially responsible products and services; enabling sustainable growth through our projects in areas of leadership, education, health and environment and building meaningful relationships with our stakeholders through engagement.”

Engagement of stakeholders and the deployment of their CSR is approached from three platforms:

• EDUCATION (Adopt-A-School Initiative);

• HEALTH (Fight against malaria); and the

• ENVIRONMENT (Ecosims and recycled paper).

• Have a structured employee volunteer program.

• Partnerships (Lagos Business School, British Council).

Case Study 2: Tele- communications – Etisalat Nigeria

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Case Study 2: Tele- communications – Etisalat Nigeria

Above Left: Etisalat CEO launches the Adop-a-School project aimed at improving the infrastructure of Public Primary Schools in Nigeria.

Above Right: Etisalat opens the Etisalat CSR Centre in partnership with the Lagos Business School aimed at providing capacity building on CSR in Nigeria.

Bottom Left: Oyetola Oduyemi (Corporate & Social Responsibility (CSR)); Chiweta Uraih (Specialist, CSR, );

Chineze Amanfo (Manager, Public Relations), & Ken Egbas ( Founder/Coordinator, SERA awards) accepting the Best Company in Partnership for Development at the 2014 Social Enterprise Reports and Awards (SERA‟s).

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Sustainable Growth

Case Study 3: Technology – Samsung

Samsung’s Core

Competency

Information Technology, Medical Solution,

Green Mgmt., Global Network

ENVIRONMENT EMPLOYMENT

&

COMMUNITY EDUCATION

New learning possibilities

• Smart School

• Solar Powered Internet School

New healthcare solutions

• Mobile Health Center

• Sono School Vocational training

• Engineering Academy

• Digital Village

PlanetFirst

• Responsible Product

• Responsible Facility Mgmt.

• Green Communication

HEALTH

&

MEDICAL

Global Key Issue

Education,

Job Opportunity, Healthcare,

Clean Water

(defined by ‘13 UNDP)

Corporate Citizenship Framework

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Case Study 3: Technology – Samsung

Left: Samsung MD and students at the Graduating Ceremony of the Samsung Engineering Academy.

Bottom Right/Left: Samsung Solar Powered Internet School, Solar Powered Health Centre (Digital Village)

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Recap of Presentation

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