Reputation - can reality really triumph over bulls**t?

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Rob Challis created the original sustainability plan for MAN group. Research-driven it was ground-breaking in its scope. Here he looks at: …

Rob Challis created the original sustainability plan for MAN group. Research-driven it was ground-breaking in its scope. Here he looks at:

- the correlation between CSR disciplines and sustainability

-the relevance of stakeholder engagement in developing a credible sustainability proposition

-the role that identifying non-financial risk has to play in reputation management

-how these factors facilitate an understanding of the constituents of trust which underpin reputation.

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Transcript

  • 1.
    • REPUTATION
    • Can reality really triumph over bulls**t?
  • 2. Areas I will chat about this afternoon
  • 3. Areas I will chat about this afternoon
    • The correlation between CSR disciplines and sustainability  
  • 4. Areas I will chat about this afternoon
    • The correlation between CSR disciplines and sustainability  
    • The relevance of stakeholder engagement in developing a credible sustainability proposition
  • 5. Areas I will chat about this afternoon
    • The correlation between CSR disciplines and sustainability  
    • The relevance of stakeholder engagement in developing a credible sustainability proposition
    • The role that identifying non-financial risk has to play in reputation management
  • 6. Areas I will chat about this afternoon
    • The correlation between CSR disciplines and sustainability  
    • The relevance of stakeholder engagement in developing a credible sustainability proposition
    • The role that identifying non-financial risk has to play in reputation management
    • How these factors facilitate an understanding of the constituents of trust which underpin reputation
  • 7. BUT…before we begin…
  • 8. BUT…before we begin…
    • Of the institutions you represent, hands up if you..
  • 9. BUT…before we begin…
    • Of the institutions you represent, hands up if you..
    • believe they have a good reputation
  • 10. BUT…before we begin…
    • Of the institutions you represent, hands up if you..
    • believe they have a good reputation
    • believe their reputation is not as good as it was
  • 11. BUT…before we begin…
    • Of the institutions you represent, hands up if you..
    • believe they have a good reputation
    • believe their reputation is not as good as it was
    • know “why” to either of these scenarios
  • 12. And one more….
    • After five years in tenure, how closely is the CEO’s reputation aligned with the reputation of the business?
  • 13. And one more….
    • After five years in tenure, how closely is the CEO’s reputation aligned with the reputation of the business?
    • Who thinks 20%?
  • 14. And one more….
    • After five years in tenure, how closely is the CEO’s reputation aligned with the reputation of the business?
    • Who thinks 20% ?
    • Who thinks 50% ?
  • 15. And one more….
    • After five years in tenure, how closely is the CEO’s reputation aligned with the reputation of the business?
    • Who thinks 20% ?
    • Who thinks 50% ?
    • Who thinks 80% ?
  • 16.
    • So there is a strong link between personal behaviour and corporate behaviour to a company’s reputation
  • 17. So how does one put a quantifiable value on reputation risk?
  • 18. So how does one put a quantifiable value on reputation risk?
    • Historically…
  • 19. So how does one put a quantifiable value on reputation risk?
    • Historically…
    • Something bad/dumb we do
  • 20. So how does one put a quantifiable value on reputation risk?
    • Historically two reputation risk scenarios:-
    • Something bad/dumb we do
    • Something bad/dumb someone in our sector does (reputational impairment by contagion)
  • 21. Risk Capital allocated to Reputation Risk in these two scenarios…
  • 22. Risk Capital allocated to Reputation Risk in these two scenarios…
    • On a “what if” or “what could possibly go wrong” basis
  • 23. Risk Capital allocated to Reputation Risk in these two scenarios…
    • On a “what if” or “what could possibly go wrong” basis
    • Taking a view on:-
  • 24. Risk Capital allocated to Reputation Risk in these two scenarios…
    • On a “what if” or “what could possibly go wrong” basis
    • Taking a view on:-
    • the likely risks which might crystallise under given scenarios
  • 25. Risk Capital allocated to Reputation Risk in these two scenarios…
    • On a “what if” or “what could possibly go wrong” basis
    • Taking a view on:-
    • the likely risks which might crystallise under given scenarios
    • how much it might cost were they to crystallise
  • 26. Perhaps A Different Approach?
  • 27. Perhaps A Different Approach?
    • Consider how “reputation” is defined…
  • 28. Perhaps A Different Approach?
    • Consider how “reputation” is defined…
    • Reputation concerns perceptions-that is what key people/groups think of you and your sector (“Stakeholders”)
  • 29. Perhaps A Different Approach?
    • Consider how “reputation” is defined…
    • Reputation concerns perceptions-that is what key people/groups think of you and your sector (“Stakeholders”)
    • Relates to brand and sub-brands (e.g. Employer of Choice, Shareholder, Customer, Community etc.)
  • 30. Perhaps A Different Approach?
    • Consider how “reputation” is defined…
    • Reputation concerns perceptions-that is what key people/groups think of you and your sector (“Stakeholders”)
    • Relates to brand and sub-brands (e.g. Employer of Choice, Shareholder, Customer, Community etc.)
    • Use CSR disciplines to break reputation down into “bite-sized” chunks
  • 31. Perhaps A Different Approach?
    • Consider how “reputation” is defined…
    • Reputation concerns perceptions-that is what key people/groups think of you and your sector (“Stakeholders”)
    • Relates to brand and sub-brands (e.g. Employer of Choice, Shareholder, Customer, Community etc.)
    • Use CSR disciplines to break reputation down into “bite-sized” chunks
    • Consider where issues of trust might arise
  • 32. Perhaps A Different Approach?
    • Consider how “reputation” is defined…
    • Reputation concerns perceptions-that is what key people/groups think of you and your sector (“Stakeholders”)
    • Relates to brands and sub-brands (e.g. Employer of Choice, Shareholder, Customer, Community etc.)
    • Use CSR disciplines to break reputation down into “bite-sized” chunks
    • Consider where issues of trust might arise
    • So, who values CSR in this context?
  • 33. Companies which Report on Corporate Social Responsibility Issues *
    • 2008 2002
    • Fortune 500 Top 250 64% 45%
    • World’s Top 100 80% 23%
    • United Kingdom 71% 49%
    • Financial Sector (Global) 57% 27%
    * KPMG
  • 34. Key Global CSR Drivers
    • Economic 74%
    • Ethical 53%
    • Innovation and learning 53%
    • Employee motivation 47%
    • Risk management/reduction 47%
    • Access to capital/increased shareholder value 39%
    • Reputation or brand 27%*
    • Market position (share) improvement 21%
    • Strengthened supplier relationships 13%
    • Cost savings 9%
    • Relationships with governmental authorities 9%
    • Other 11%
    • * Most are in the DJSI
  • 35. To understand the relationship of CSR to Reputation, let’s consider the Social Responsibility of business?
  • 36. Milton Friedman said…
    • “ The social responsibility of business is to increase its profits….”
  • 37. Milton Friedman said…
    • “ The social responsibility of business is to increase its profits
    • … .so long as it stays within the rules of the game ”
  • 38. Milton Friedman said…
    • “ The social responsibility of business is to increase its profits….so long as it stays within the rules of the game
    • … which is to say, engages in open and free competition without deception and fraud”
  • 39. So the full quote…
    • “ The social responsibility of business is to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception and fraud”
  • 40. The “game” has changed
  • 41. The “game” has changed
    • Business can no longer be focused solely on profits to the exclusion of perceived “social” obligations
  • 42. The “game” has changed
    • Business can no longer be focused solely on profits to the exclusion of perceived “social” obligations
    • “ Push and pull”- push by business to differentiate and pull by stakeholders re evidencing trust, stewardship, risk management and sustainability
  • 43. The “game” has changed
    • Business can no longer be focused solely on profits to the exclusion of perceived “social” obligations
    • “ Push and pull”- push by business to differentiate and pull by stakeholders re evidencing trust and sustainability
    • Business can no longer simply state their case, they must prove it.
  • 44. Key risk is not understanding the concerns of stakeholders who “own” your reputation And one way to measure the impact……
  • 45. Identification / Quantification of Key Non-Financial Risks The main non financial risk of any company is its REPUTATION “ Corporate responsibility is the discipline by which we evidence and quantify responsible behaviour to our stakeholders. In doing so, we build and sustain their trust in and commitment to our Group and confidence in our brand”. Market Cap Net asset value REPUTATION
  • 46. Key risk is not understanding the concerns of stakeholders who…
    • are key to maintaining and enhancing value
  • 47. Key risk is not understanding the concerns of stakeholders who…
    • are key to maintaining and enhancing value
    • have, within each distinct stakeholder group, different interests and risk concerns which are fundamental to evidencing sustainability
  • 48. Key words as strategic context for effective reputation management…
  • 49. Key words as strategic context for effective reputation management…
    • Stakeholders – their perception of you versus your reality
  • 50. Key words as strategic context for effective reputation management…
    • Stakeholders – their perception of you versus your reality
    • Risk – the risk to your reputation arising from each stakeholder group ( CSR is a risk discipline)
  • 51. So what is a Stakeholder?
  • 52. So what is a Stakeholder?
    • “ Anyone who can bugger up your company” (Financial Times)
  • 53. So what is a Stakeholder?
    • “ Anyone who can bugger up your company” (Financial Times)
    • “ Someone who can be affected by of affect a company’s actions ” (ICSA Directors’ Handbook)
  • 54. So what is a Stakeholder?
    • “ Anyone who can bugger up your company” (Financial Times)
    • “ Someone who can be affected by of affect a company’s actions ” (ICSA Directors’ Handbook)
    • Direct (employees, shareholders etc.) and
  • 55. So what is a Stakeholder?
    • “ Anyone who can bugger up your company” (Financial Times)
    • “ Someone who can be affected by of affect a company’s actions ” (ICSA Directors’ Handbook)
    • Direct (employees, shareholders etc.) and..
    • Indirect (media, NGOs etc.)
  • 56. Generic Grouping of Typical Stakeholders
    • People
    • Market place
    • Community
    • Environment (As it addresses covariant risks-more later..)
  • 57. KEY WORD……….
    • RISK
    • The New Companies Act requires (some) companies to report on key non-financial risks which “ if crystallised could have a material adverse impact on the financial performance of the company.…”
  • 58. KEY WORD……….
    • SUSTAINABILITY
    • The Dow Jones Sustainability Index defines Sustainability as:
    • “ a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments”.
  • 59. Non-financial Risk and Sustainability….
  • 60. The relationship between on-financial Risk and Sustainability….
    • The identification, analysis, mitigation and transparent reporting of non-financial risks constitute the bedrock of sustainability
  • 61. Non-financial Risk and Sustainability….
    • The identification, analysis, mitigation and transparent reporting of non-financial risks constitute the bedrock of sustainability
    • “ Corporate Responsibility” is a discipline for achieving this
  • 62. Non-financial Risk and Sustainability….
    • The identification, analysis, mitigation and transparent reporting of non-financial risks constitute the bedrock of sustainability
    • “ Corporate Responsibility” is a discipline for achieving this
    • So, what are the typical/generic areas where most organisations will have non-financial risk?
  • 63. Areas of non-financial risk embedded in stakeholder groups
  • 64. Areas of non-financial risk embedded in stakeholder groups
    • People (e.g. the ability to attract and retain the best possible talent)
  • 65. Areas of non-financial risk embedded in stakeholder groups
    • People (e.g. the ability to attract and retain the best possible talent)
    • Market place (e.g. governance, all interactions with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)
  • 66. Areas of non-financial risk embedded in stakeholder groups
    • People (e.g. the ability to attract and retain the best possible talent)
    • Market place (e.g. governance, all interactions with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)
    • Community (e.g. where employees and customers live and work)
  • 67. Areas of non-financial risk embedded in stakeholder groups
    • People (e.g. the ability to attract and retain the best possible talent)
    • Market place (e.g. governance, all interactions with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)
    • Community (e.g. where employees and customers live and work)
    • Environment (e.g. an expectation by employees, customers and broader society)
  • 68. Areas of non-financial risk embedded in stakeholder groups
    • People (e.g. the ability to attract and retain the best possible talent)
    • Market place (e.g. governance, all interactions with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)
    • Community (e.g. where employees and customers live and work)
    • Environment (e.g. an expectation by employees, customers and broader society)
    • Stakeholders (e.g. maintaining their trust, loyalty and commitment)
  • 69. Areas of non-financial risk embedded in stakeholder groups
    • People (e.g. the ability to attract and retain the best possible talent)
    • Market place (e.g. governance, all interactions with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)
    • Community (e.g. where employees and customers live and work)
    • Environment (e.g. an expectation by employees, customers and broader society)
    • Stakeholders (e.g. maintaining their trust, loyalty and commitment)
    • ALL ARE CONSTITUENTS OF REPUTATION……..
  • 70. How engagement with Stakeholders can address key non-financial risks
    •  
  • 71. How engagement with Stakeholders can address key non-financial risks
    • Identifying Stakeholders
  • 72. How engagement with Stakeholders can address key non-financial risks
    • Identifying Stakeholders
    • Engaging stakeholders around their core business values
  • 73. How engagement with Stakeholders can address key non-financial risks
    • Identifying Stakeholders
    • Engaging stakeholders around their core business values
    • Illustrating where their values align with yours
  • 74. How engagement with Stakeholders can address key non-financial risks
    • Identifying Stakeholders
    • Engaging stakeholders around their core business values
    • Illustrating where their values align with yours
    • Identifying key risks which might be addressed and suitable programmes
  • 75. How engagement with Stakeholders can address key non-financial risks
    • Identifying their perceptions of key risks and how they align with your reality
    •  
  • 76. How engagement with Stakeholders can address key non-financial risks
    • Identifying their perceptions of key risks and how they align with your reality
    • Developing programmes and actions which mitigate these risks
    •  
  • 77. How engagement with Stakeholders can address key non-financial risks
    • Identifying their perceptions of key risks and how they align with your reality
    • Developing programmes and actions which mitigate these risks
    • Communicate the good and the bad honestly and transparently
    •  
  • 78. So what are Corporate Values? Why are they important?
  • 79. Value
  • 80. Value
    • A principle, standard, or quality considered worthwhile or desirable
  • 81. Value
    • A principle, standard, or quality considered worthwhile or desirable
    • Important and enduring beliefs
  • 82. Value
    • A principle, standard, or quality considered worthwhile or desirable
    • Important and enduring belief
    • A system which forms the foundation on which we perform work and conduct ourselves
  • 83. Value
    • A principle, standard, or quality considered worthwhile or desirable
    • Important and enduring belief
    • A system which forms the foundation on which we perform work and conduct ourselves
    • A positive element of behaviour concerning a person, institution, company, group etc.
  • 84. CORE VALUES ARE NOT:
    • Operating practices
    • Business strategies
    • Cultural norms
    • Competencies
    • Changed in response to market/ administration changes
  • 85. To be effective, Values must therefore be central to value and…
  • 86. To be effective, Values must therefore be central to value and…
    • Reflect the nature and scale of the business and be integrated into the culture-define who you are and expectations of behaviour
  • 87. To be effective, Values must therefore be central to value and…
    • Reflect the nature and scale of the business and be integrated into the culture-define who you are and expectations of behaviour
    • Relate to both corporate and individual behaviour
  • 88. To be effective, Values must therefore be central to value and…
    • Reflect the nature and scale of the business and be integrated into the culture-define who you are and expectations of behaviour
    • Relate to both corporate and individual behaviour
    • Define what others feel about the business (image, brand etc. Perception “v” Reality
  • 89. To be effective, Values must therefore be central to value and…
    • Reflect the nature and scale of the business and be integrated into the culture-define who you are and expectations of behaviour
    • Relate to both corporate and individual behaviour
    • Define what others feel about the business (image, brand etc. Perception “v” Reality
    • Drive the business…become “Value Drivers”
  • 90. To be effective, Values must therefore be central to value and…
    • Reflect the nature and scale of the business and be integrated into the culture-define who you are and expectations of behaviour
    • Relate to both corporate and individual behaviour
    • Define what others feel about the business (image, brand etc. Perception “v” Reality
    • Drive the business…become “Value Drivers”
    • Be able to be performance measured-exhibit a quantifiable return
  • 91. Accenture
    • Stewardship
    • Best People
    • Client Value Creation
    • One Global Network
    • Respect for the Individual
    • Integrity
  • 92. Reckett Benckiser
    • Achievement
    • Entrepreneurship
    • Team Spirit
    • Ownership
  • 93. United States Airforce
    • Integrity First
    • Service Before Self
    • Excellence in All We Do
  • 94. The Tiger Group “Model for Values”
    • T rust
    • I nterdependence
    • G enuineness
    • E mpathy
    • R isk
    • S uccess
  • 95. Example “values”
    • ambition, competency, individuality, equality, integrity, service, responsibility, accuracy, respect, dedication, diversity, improvement, enjoyment/fun, loyalty, credibility, honesty, innovativeness, teamwork, excellence, accountability, empowerment, quality, efficiency, dignity, collaboration, stewardship, empathy, accomplishment, courage, wisdom, independence, security, challenge, influence, learning, compassion, friendliness, discipline/order, generosity, persistence, optimism, dependability, flexibility.
  • 96. BUT these are just worthy words
    • What is missing?
  • 97. Converting Values into Value Drivers
    • Q) How can a measurable commitment to a set of values underpin a business proposition, add to sustainability and reputation?
  • 98. Converting Values into Value Drivers
    • Q) How can a measurable commitment to a set of values underpin a business proposition, add to sustainability and reputation?
    • Aligning your values with those of stakeholders builds and sustains their trust - TRUST is the bedrock of REPUTATION
  • 99. The “Value” Approach To be effective and sustainable, a value proposition should..
  • 100. The “Value” Approach To be effective and sustainable, a value proposition should..
    • demonstrably add and quantify its value to the business proposition and key stakeholders;
  • 101. The “Value” Approach To be effective and sustainable, a value proposition should..
    • demonstrably add and quantify its value to the business proposition and key stakeholders;
    • represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;
  • 102. The “Value” Approach To be effective and sustainable, a value proposition should..
    • demonstrably add and quantify its value to the business proposition and key stakeholders;
    • represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;
    • adapt to be relevant to the nature and scale of the business;
  • 103. The “Value” Approach To be effective and sustainable, a value proposition should..
    • demonstrably add and quantify its value to the business proposition and key stakeholders;
    • represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;
    • adapts to be relevant to the nature and scale of the business;
    • be integrated into the business strategy and processes;
  • 104. The “Value” Approach To be effective and sustainable, a value proposition should..
    • demonstrably add and quantify its value to the business proposition and key stakeholders;
    • represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;
    • adapts to be relevant to the nature and scale of the business;
    • be integrated into the business strategy and processes;
    • be research and risk based
  • 105. Re-cap….
  • 106. Re-cap….
    • Identification of material non-financial risks is key to effective reputation management
  • 107. Re-cap….
    • Identification of material non-financial risks is key to effective reputation management
    • The Corporate Responsibility discipline underpins any sustainability proposition
  • 108. Re-cap….
    • Identification of material non-financial risks is key to effective reputation management
    • The Corporate Responsibility discipline underpins any sustainability proposition
    • Stakeholder engagement in the process is essential
  • 109. Re-cap….
    • Identification of material non-financial risks is key to effective reputation management
    • The Corporate Responsibility discipline underpins any sustainability proposition
    • Stakeholder engagement in the process is essential
    • Prove it!
  • 110. Share price performance
  • 111.
    • Share price performance
    • A study of “stakeholder superstars” (including Coca Cola, Proctor and Gamble and Johnson & Johnson) showed that companies who take into account stakeholders’ opinions outperformed the S&P 500 by more than twice the average over the past 15 years
  • 112.
    • Share price performance
    • A study of “stakeholder superstars” (including Coca Cola, Proctor and Gamble and Johnson & Johnson) showed that companies who take into account stakeholders’ opinions outperformed the S&P 500 by more than twice the average over the past 15 years
    • This result was confirmed by Harvard University, who found stakeholder balanced companies showed four times the growth rate and eight times the employment growth when compared to companies that are shareholder-only focused (Harvard University, 2000)
  • 113. FTSE4GOOD vs FTSE
  • 114. DJSI EURO STOXX [white line] VS. DJ EURO STOXX (2001-2006)
  • 115. So, how do you make your reality triumph over bulls**t?
  • 116. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
  • 117. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
  • 118. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
    • Develop relevant questions
  • 119. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
    • Develop relevant questions
    • Ask the questions
  • 120. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
    • Develop relevant questions
    • Ask the questions
    • State how they have informed the strategy and programmes
  • 121. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
    • Develop relevant questions
    • Ask the questions
    • State how they have informed the strategy and programmes
    • Illustrate where perceptions are not aligned
  • 122. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
    • Develop relevant questions
    • Ask the questions
    • State how they have informed the strategy and programmes
    • Illustrate where perceptions are not aligned
  • 123. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
    • Develop relevant questions
    • Ask the questions
    • State how they have informed the strategy and programmes
    • Illustrate where perceptions are not aligned
    • Involve relevant internal functions (e.g. HR, IR, Comms, Sales, Marketing, Risk, Compliance etc.)
  • 124. So, how do you make your reality triumph over bulls**t?
    • Identify key stakeholder groups
    • Select representative sample
    • Develop relevant questions
    • Ask the questions
    • State how they have informed the strategy and programmes
    • Illustrate where perceptions are not aligned
    • Involve relevant internal functions (e.g. HR, IR, Comms, Sales, Marketing, Risk, Compliance etc.)
    • Transparently report the findings
  • 125. So, how do you make your reality triumph over bulls**t?
    • A real life example of the strategic impact and influence of this approach….
  • 126. Change in current reputations Enhanced Stayed the Same Decreases / Damaged Financial services sector Hedge fund related business Our Group in particular Investors Internal External - general Intermediaries
    • Conclusions
    • External stakeholders see issues with financial services as being malpractice and they don't understand hedge funds.
    • Group is perceived as being better off than others but still significantly affected by issues such as Madoff
  • 127. Change in current reputations – Internal stakeholders Enhanced Stayed the Same Decreases / Damaged Financial services sector Hedge fund related business Our Group in particular Graduates Senior management Directors
    • Conclusions
    • Internal stakeholders see the villains as being banks, politicians and media, and they feel hedge funds have unnecessarily taken the blame
  • 128. Assessment of how stakeholders' attitudes to CR changed over the past year – Internal Views 100% Considered Appropriate 0% Investors regard it as even more important, because of need for sustainability Investors are regarding the efficacy of CR activities as a key indicator of trust External stakeholders have not changed attitudes towards CR in the past year CR has become less relevant to companies, because of commercial issues Graduates Senior management Directors
    • Conclusions
    • CR is seen to many as of continuing importance
    • CR also requires, however, integration and links to the business strategy
  • 129. What CR activites are significant to external stakeholders? - People – Internal views High Low Employees performance appraisals Employee satisfaction surveys Effective 'top down' communication Improvements in our health and safety management Graduates Senior management Directors
  • 130. What CR activities are significant to external stakeholders? -Marketplace High Low Quantifying /communicating our compliance performance Communicating our risk management processes Developing products with customers/ intermediaries
    • Conclusions
    • Shareholders focus on hard business activities to a greater extent than investors
    • Handling customers is not regarded as high priority by external people but supply chain is a priority for them.
    Investors Internal External - general Intermediaries
  • 131. What CR activities are significant to external stakeholders? - Community – Internal views High Low Encouraging more employee community volunteering Integrating volunteering into management training and development Continuing as a major not-for-profit and charity donor
    • Conclusions
    • Directors see community as important (but not a priority) ‏
    • Graduates are very positive about the community
    Graduates Senior management Directors
  • 132. Based on current business needs and risks, what are priorities for new initiatives? - 1 – internal views High Low Strategic reputation management Evidencing sustainability / survivability Using CR to develop added value sales and market differentiated propositions Suppliers Health and safety Employee attraction, retention and development Graduates Senior management Directors
  • 133. Based on current business needs and risks, what are priorities for new initiatives? - 2 – Internal views High Low Employee communications and consultations Environmental – carbon management Environmental - general Community investment Employee volunteering Graduates Senior management Directors
  • 134. What does this illustrate?
  • 135. What does this illustrate?
    • Board thinking out of line with Senior Management and of more concern, shareholders
  • 136. What does this illustrate?
    • Board thinking out of line with Senior Management and of more concern, shareholders
    • Areas where communications must be enhanced/improved
  • 137. What does this illustrate?
    • Board thinking out of line with Senior Management and of more concern, shareholders
    • Areas where communications must be enhanced/improved
    • Makes the Board publicly accountable to stakeholders (a healthy thing)
  • 138. What does this illustrate?
    • Board thinking out of line with Senior Management and of more concern, shareholders
    • Areas where communications must be enhanced/improved
    • Makes the Board publicly accountable to stakeholders (a healthy thing)
    • Provides a strategic predication for Corporate Responsibility
  • 139. What does this illustrate?
    • Board thinking out of line with Senior Management and of more concern, shareholders
    • Areas where communications must be enhanced/improved
    • Makes the Board publicly accountable to stakeholders (a healthy thing)
    • Provides a strategic predication for Corporate Responsibility
    • Justifies investment in softer areas (e.g. community & environment) as these are key employer of choice brand differentiators
  • 140. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
  • 141. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
  • 142. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
  • 143. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
  • 144. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
    • Corporate Responsibility included in investor road shows
  • 145. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
    • Corporate Responsibility included in investor road shows
    • Dedicated and enhanced Corporate Responsibility section in Annual Report
  • 146. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
    • Corporate Responsibility included in investor road shows
    • Dedicated and enhanced Corporate Responsibility section in Annual Report
    • Significant increase in investment in Corporate Responsibility data capture system
  • 147. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
    • Corporate Responsibility included in investor road shows
    • Dedicated and enhanced Corporate Responsibility section in Annual Report
    • Significant increase in investment in Corporate Responsibility data capture system
    • Creation of an enhanced and dedicated Corporate Responsibility website
  • 148. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
    • Corporate Responsibility included in investor road shows
    • Dedicated and enhanced Corporate Responsibility section in Annual Report
    • Significant increase in investment in Corporate Responsibility data capture system
    • Creation of an enhanced and dedicated Corporate Responsibility website
    • Retention of Group for a third year as only company of its type in the DJSI (top in key categories)
  • 149. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
    • Corporate Responsibility included in investor road shows
    • Dedicated and enhanced Corporate Responsibility section in Annual Report
    • Significant increase in investment in Corporate Responsibility data capture system
    • Creation of an enhanced and dedicated Corporate Responsibility website
    • Retention of Group for a third year as only company of its type in the DJSI (top in key categories)
    • Significant investment by new “sustainability” shareholders
  • 150. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?
    • Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintained
    • Investment increased in enhanced and globalised employee health and well being workshop programmes
    • Significant investment in new employee volunteering programme
    • Corporate Responsibility included in investor road shows
    • Dedicated and enhanced Corporate Responsibility section in Annual Report
    • Significant increase in investment in Corporate Responsibility data capture system
    • Creation of an enhanced and dedicated Corporate Responsibility website
    • Retention of Group for a third year as only company of its type in the DJSI (top in key categories)
    • Significant investment by new “sustainability” shareholders
    • Contributed to mitigating the damage to reputation.
  • 151. Integrated Corporate Responsibility– How it hangs together Goodwill Market Value Key Value Drivers (Adding Value) ‏ How We Behave Community Our Environment Our People Market Place Brand SUSTAINABILITY Positive Reputation Trust Core Values Responsible Business Behaviour
  • 152. THANK YOU ALL FOR LISTENING
    • Rob Challis,
    • Tangent Synergy Ltd,
    • Tangent House,
    • 18, Ditton Road,
    • Surbiton,
    • Surrey,
    • KT6 6QZ
    • Tel:- +44(0)20 8399 2069
    • Fax:- +44(0)20 8390 5990
    • Mobile:- +44 (0)7850 724153
    • Email:-
    • [email_address]
    • Linkedin Profile:- http://www.linkedin.com/myprofile?trk=hb_tab_pro