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  • 1. Social Accountability & Audit
    • Broadened accountability & assurance - a new paradigm - from shareholders to stakeholders
    • Corporate Social Responsibility (CSR)
    • Social Accountability (SA) and Audit(SAA)
    • Corporate Ethical Performance (CEP)
    • Global Reporting Initiative (GRI)
    • Environmental Sustainability Reporting
    • Triple Bottom Line Reporting
    • Health & Safety Reporting
  • 2. Council on Economic Priorities (CEP)
    • Since 1969 - provision of accurate & impartial analysis of CSP & promote excellence in corp. citizenship
      • Shopping for a Better World
      • Campaign for Cleaner Corporations
      • Corporate Conscience Awards
      • www.cepaa.org
    • CEPAA - Accreditation Agency
    • Standard … SA8000
  • 3. Council on Economic Priorities Accreditation Agency (CEPAA)
    • www.cepaa.org
    • SA 8000 … (ISO 9000 QC; 14000 Envir. Mgt.)
      • Common standard/framework for ethical sourcing for companies of any size and any type, anywhere in the world
    • SA 8000 Certification of Company
    • SA 8000 Certification Auditor
  • 4. AccountAbility
    • www.accountability.org.uk
    • AA1000 standard
      • Principles that identify characteristics of a quality process and that can be used in designing & managing an organization’s social & ethical accounting, auditing & reporting process, and in assessing that process
    • AA1000 qualification
    • Social reporting awards – co. websites
  • 5. Disclosure Standards
    • Global Reporting Initiative (GRI)
      • [email_address]
      • Sustainability reporting guidelines
      • 20+ companies have beta tested guidelines
    • CERES Principles
      • www.ceres.org
      • Valdes Principles
  • 6. Disclosure Standards
    • Principles for Global Corporate Responsibility: Bench Marks for Measuring Business Performance - Task Force on the Churches and Corporate Responsibility (TCCR)
      • www.web.net/~tccr
      • broad-based set of principles
      • 23 Appendices - each a code for reference
    • Triple Bottom Line Reporting - BC Hydro
      • Social, Economic and Financial performance
  • 7. Crisis Management
    • A Crisis is an unusual event that has a significant probability of affecting the organization’s reputation & its ability to meet its strategic objectives.
    • Proper management is essential to manage risks and opportunities
    • Ethical decision making is essential to maintain reputation
  • 8. Crisis Case
    • Shell Brent Spar Oil Storage Vessel
  • 9. Ethics Should be Part of Crisis Management
    • Crises are more significant than daily decisions – reputation impact
    • Opportunities may be lost:
      • lack of sensitivity to stakeholder interests
      • reduction in acute & chronic phases
      • reduction in stakeholder anxiety…ethical expectations
      • ensures decision makers given all info & options
      • helps identify important issues & best alternative
  • 10. Build Ethics into Crisis Management
    • Prevention and warning: Code, Training, Examples
    • Analytical approach:
      • Apply a stakeholder-analysis framework
      • Ethics expert/consultant on the crisis management team
      • Checklist or specific time to consider: Ethics issues, alternatives, opportunities
    • Decision itself: apply a template including ethics
    • Communications on ethical intent to:
      • Employees outsiders: customers, media, etc.
  • 11. Managing The Crisis
    • Identify the crisis
    • Can you influence the outcome? At what cost?
    • Isolate on the crisis. It should take precedence.
    • Prevent, avoid, mitigate
    • Make plan fluid, contingent
    • Integrate ethics into the decision-making:
      • Assign watch-dog responsibility, Use a checklist
  • 12. Phases of a Crisis Time Cost To Organization Crisis Control Begins Post- Crisis State Reached Continuing Reputational Impact Unanticipated Crisis Anticipated Crisis Phases Pre-crisis Uncontrolled Controlled Reputation Restoration
  • 13. Considerations for Managing a Crisis
    • Earliest possible identification and assessment of crisis
      • Check warning indicators as part of an ongoing risk management system
      • Analyse crises using the stakeholder impact analysis process
      • Consider how the crisis or its impact can be influenced – timing, cost, mitigation?
    • Develop a plan of action with
      • Ethics/company’s values integrated into the decision making
        • Assign ethics watch-dog responsibility
        • Use a checklist
        • Apply moral imagination
      • Alternative responses/actions to meet contingencies that could arise
      • Specific consideration of how to improve the organization’s reputation drivers including – trustworthiness, responsibility, reliability, and credibility
      • Specific communications objectives
    • Delay can allow the situation to degenerate, so act promptly
    • Review how the crisis management process could be improved after it is over
  • 14. Advance Planning Considerations
    • Crisis Identification and Analysis as part of Annual Risk Management Process
    • Train personnel to develop awareness of possible crises their potential
    • Brainstorm to identify possible crises
    • Using the stakeholder impact analysis techniques from Chapter 5, analyse the impacts of each scenario and rank each on the basis of:
      • Relative urgency, power and legitimacy of claims
      • Reputational impact in short, medium and long terms
      • Interest likely from media, employees, and/or government
      • Profit impact
    • Develop Warning Indicators
    • Develop a Crisis Management Team ready to be called upon
      • Designated replacements, outside experts, public spokesperson
    • Develop Crisis Management Tools
      • Process - checklist, assigned roles and duties, hotline, advise CEO protocol, danger classification with pre-planned actions, values to guide decisions
      • Communications – crisis strategy integrated with normal, responsibility, plan, contact phone numbers for employees, media, government, customers
      • Contingency planning for actions to anticipate more than one path to resolution
  • 15. Crisis Forecasting & Ranking
    • Score each potential crisis from 0-10 on:
      • Will it...Escalate in intensity?
      • ...Fall under close scrutiny from government or media?
      • ...Interfere with normal operations
      • ...Jeopardize positive public image
      • ...Damage bottom line
    • Add score on each dimension and calculate average crisis impact value.
    • Estimate probability of occurrence
  • 16. Plot Average Scores and Probabilities to Identify Most Important Crises Average Scores Probability of Occurrence x x x x Worst
  • 17.
    • BE WELL
    • & BE ETHICAL