Page 185 - Performance Leadership

174 • Part III Principles from the Values and Social Dimensions

Table 10.1
Integrated Corporate Social Responsibility

Customer Perspective Processes Perspective
• Adds to the customer value proposition • Supports internalized control,
compliance and transparency
• Is a source for trend watching • Is a process optimization tool
• Should be treated carefully as PR

Growth/Learning Perspective Financial Perspective
• Adds to employee satisfaction • Feeds CSR-weighted indexes
• Can be a soft investment • Is a topic for long-term investors
• Enables organizational learning

external perception of the organization (being recognized for it). But
it’s not only corporate philanthropy that builds external perception; it
is the organization’s complete strategy and practices.
Various influential magazines create rankings, such as Fortune mag-
15
azine’s annual “Accountability Ranking” and Germany’s Manager
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Magazin’s annual “Good Company Ranking.” These rankings incor-
porate a wide range of aspects, such as strategy (how a company
includes social and environmental goals in its business decisions), gov-
ernance (processes to hold executives and board members account-
able), stakeholder involvement (how a company responds to its
employees, communities, activist groups, and other stakeholders), and
the impact of its CSR practices.
Shell has built significant experience with how to make CSR part of
the overall business model over the years. During the 1990s it needed
to close down its Brent Spar oil storage installation off the coast of Nor-
way. It did a thorough analysis and decided the best healthful, eco-
nomic, technological, environmental, and safest solution would be to
sink it. Unfortunately, pressure groups did not agree with this, and the
public opinion turned against Shell, leading even to a customer boy-
cott. Shell learned quickly how pressure groups and citizens should be
considered in its decision making. Perhaps the best example of Shell’s
understanding of CSR is the enormous success of Shell V-Power, a low-
sulfur fuel for autos that was introduced in 2004. The product, priced
at a small premium, is positioned as a performance fuel designed to