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Ethical Corp Report Summary How To Embed Csr

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  • 1. N RE O O W PO N RT AL S E HOW TO EMBED CORPORATE RESPONSIBILITY ACROSS DIFFERENT PARTS OF YOUR COMPANY Winning methods for encouraging and monitoring corporate responsibility REPORT SUMMARY Full report available at: www.ethicalcorp.com/csr © Ethical Corporation 2009 Call to order on +44 (0) 20 7375 7500
  • 2. How to embed corporate responsibility across different parts of your company ABOUT THE REPORT This report describes winning methods for encouraging and monitoring corporate responsibility (CR) in operational departments. In this essential management guide you’ll find: • Five practical guides that you can share with other departments, covering: • Procurement • Human Resources • Communications and Marketing • Finance and Accounting • Facilities, Logistics and Operations • Methods for engaging internal stakeholders through leadership and reporting • Instruction for designing CR metrics that are department-specific • Expert advice on tackling common challenges faced by senior CR managers, including: working with minimal budgets, getting buy-in, decentralising CR and coordinating disparate data • In-depth case analysis on strategies from leading companies including: Alliance Boots, BT, Campbell Soup, Green & Black’s, HP, Innocent Drinks, Man Group, Novo Nordisk, PepsiCo, Sedex, Starbucks, Tata and Vodafone bb HERE’S WHAT PEOPLE ARE SAYING ABOUT OUR REPORTS “Our expectations of the report were exceeded by its focused content and relevance to the issues we were facing.” – Dr. Kevin R Gordon, Chief Research Officer, Xyntéo Ltd bb “[The report] has helped to define what current good practice is, enabling us to develop processes to exceed it.” bb – Oliver King, Sustainable Development Group, Faber Maunsell “Ethical Corporation’s China report is a huge help for companies doing business in China, or companies intending to enter the Chinese market…It gave me helpful insights and case studies and it provides tools to maintain and improve your compliance standards in such a difficult market.” – Tonnis J. Poppema, Director of Compliance, Hasbro International Holdings B.V. “Whenever I need to research CR issues, I always include EC and its invaluable resources. bb The alternative is to be less informed than I could or should be…and I owe it to my company, employees, customers and other stakeholders to be totally informed.” bb – Jeff Curtis, Director of HR Shared Services, MTS “A detailed report giving an overview of tactics for engaging different business units, then drilling down specifically into five typical departments and what within their operations they should focus on relevant to CR. Each section provides real case studies to illustrate points.” – Naden Exter, Manager, Doughty Centre, Cranfield University School of Business Call to order on +44 (0) 20 7375 7500
  • 3. How to embed corporate responsibility across different parts of your company A FEW OF THE REPORT’S KEY FINDINGS Our research indicates a number of key steps that companies are taking to embed corporate responsibility and sustainability in different departments and functions. Companies who have proven to successfully embed responsible practices into their operations recognise that the following basic steps must be met: • Include corporate ethics, and a focused strategy to develop sustainable practices, in the company’s legal structures • Get senior management on board as early as possible and try to develop CR champions at the top of the company • For global companies operating in different countries and cultures, regional relevance to employees is crucial – developing a ‘one size fits all’ approach will be less effective • Spell out how CR programmes and a sustainable agenda benefit your colleagues: explain what’s in it for them • Move from risk avoidance to taking advantage of the opportunities available from CR By decentralising CR activities, CR professionals can access the diverse skill set required for a successful corporate approach to responsible business. Ethical Corporation asked our delegates – a range of senior CR professionals and executives from multinational companies – Which topics will you need to learn more about to succeed in your job? Results indicated that corporate responsibility requires a very diverse skill- and knowledge-base. KNOWLEDGE AREAS CR PROFESSIONALS NEED TO DEVELOP (level of need indicated per topic area) I Performance measurement & reporting 13% 11% I CR reporting 2% I Partnerships & collaboration 2% 10% I Community engagement 3% I Assessing environmental & CR risk 3% I Internal marketing & employee engagement 9% 4% I Rebuilding corporate reputation I Managing supply chains I External marketing & consumer engagement 4% I Energy efficiency 7% I Water ethics & stewardship 4% I Compliance with legislation 4% 6% 4% I Dealing with climate change 5% 5% 6% I Anti-corruption & business ethics I Gender & diversity in the workplace I Other I Resource efficiency & waste Source: Ethical Corporation survey, May/June 2009. I Biodiversity Furthermore, 46% of respondents to our survey have a CSR team of between 2 and 4 people, while nearly half, 46%, have recently experienced a budget reduction. A small team and budget makes it even more pertinent that other departments be accountable for implementing corporate responsibility practices. SIZE OF BUDGET 24% I over £30,000 I £20,000 to £30,000 8% I £10,000 to £20,000 I £5,000 to £10,000 20% I £1,000 to £5,000 I under £1,000 20% Source: Ethical Corporation survey, May/June 2009. Results from the 50% of respondents willing to respond to the question, for the 12 months, beginning June 2009. 28% Ethical Corporation survey results indicated a significant division between CR departments, with a distinct disparity between CR professionals’ budgets: 48% falling under £5,000 and 24% budgeting over £30,000. Order at www.ethicalcorp.com/csr
  • 4. How to embed corporate responsibility across different parts of your company Measurement and accountability are critical. Vodafone’s Joaquim Croca says “Reporting our efforts and committing to doing something in the following year pushes everyone in the company.” Yet, only 32% of respondents to a recent Ethical Corporation survey have a company-wide framework for monitoring social or CR impacts per department. REAL EXAMPLES OF SUCCESSFUL METHODS FOR EMBEDDING CR IN OPERATIONAL DEPARTMENT ACTIVITIES This is the one and only report on the topic of on embedding responsible practices into daily operations, presenting information in department-specific, stand-alone guides. Learn about successful strategies from leading multinational companies. Here are a few excerpts from the report: The next step for Alliance Boots was to split the company’s CR into four Novo Nordisk has revised their employee CR objectives in order to better- strands: community, environment, marketplace and workplace. Because the reflect their job responsibilities. For example, they recognised that focusing company seeks to respond to local requirements, they manage a process of the production department on patients, the end-users of the products, is an ongoing stakeholder dialogue. They started a ‘CR Action Group’ in each appropriate way of tying CR objectives into production goals. country that meets on a quarterly basis to review ongoing programmes. Current year and five-year objectives are established, with responsibility resting on operational staff and directors. Ian Wood, performance and reporting manager in BT’s corporate responsibility unit says: “Communicating with 100,000 colleagues across the world is a challenge … You can talk about BT saving millions of tonnes Many companies are making certification easier for their suppliers by joining of carbon, but if you can demonstrate the savings from someone turning off multistakeholder initiatives: “If you can make it easier and less resource- the lights at a particular office then you are showing people that they too intensive for suppliers to provide data, then you and they can concentrate can make a worthwhile change.” on the real work of getting them to improve and make the corrective action plans required” says Tom Smith of Sedex. Jorgette Marinez, senior manager, global supplier CSR assurance, PepsiCo, global procurement says that there was a collective “lightbulb” moment for a lot of companies. “To overcome the difficulties of language and cultural differences,” Bonnie “Many of our peers were addressing the same issues as us … We were Nixon, HP’s director of sustainability says, the local human resources asking similar questions in terms of labour standards, health and safety, department was able to help refine the sustainability message and ensure environmental standards and integrity.” it was delivered in a sensitive and effective manner. Read more about metrics, incentives, enforcement, and coordination of disparate data in Part I of the full report. DEPARTMENT-BY-DEPARTMENT GUIDES Everyone is taking about it, but what does corporate responsibility (CR) mean for an HR professional? A procurement manager? A marketing expert? A floor or store manager? An accountant? Find out about winning approaches by companies that have had proven, positive impacts. Raise corporate responsibility to the top of everyone’s agenda in your company. Share this information with other department managers, and they will receive simple tactics and strategies that they can implement tomorrow. ® THE PROCUREMENT DEPARTMENT GUIDE TO CR ® THE COMMUNICATIONS AND MARKETING Procurement professionals can learn how responsible business GUIDE TO CR practices can help to achieve consistent quality, reliable shipments and This guide on CR and communications addresses key questions by top notch suppliers. Find out how leading companies have introduced communications, marketing and PR professionals. How can I obtain more processes and tactics such as fair contracting terms, air tight verification interest and feedback from our stakeholders and customers? How do I get system, and streamlined processes. others to spread the word about our great CR impacts? Includes detailed analysis of strategies by: HP, Green & Black’s, Innocent Includes detailed analysis of strategies by: BT, Vodafone, Starbucks, Man Drinks, Sedex, Starbucks and PepsiCo Group, HP and Novo Nordisk ® THE HUMAN RESOURCES GUIDE TO CR ® THE FINANCE AND ACCOUNTING Find out exactly how CR is critical to all human resource activities. Learn specific CR tactics that contribute to attracting and developing a GUIDE TO CR motivated, productive workforce with high morale. The finance function is often forgotten in the CR debate. This guide examines where company accountants can influence CR and how their Includes detailed analysis of strategies by: HP, Campbell Soup, Alliance role is changing as companies embed sustainability throughout their Boots, Starbucks and Novo Nordisk processes. Includes detailed analysis of techniques suggested by: leading industry associations; how the behaviour of the finance and accounting function ® THE FACILITIES, LOGISTICS AND OPERATIONS can impact CR, from Pinnacle360; and detailed analysis of strategies by: GUIDE TO CR Novo Nordisk, Starbucks and BT Learn how to achieve cost savings, motivated staff and products that you can be proud of. Includes detailed analysis of strategies by: Alliance Boots, HP, Innocent Drinks, BT, Novo Nordisk and Vodafone Call to order on +44 (0) 20 7375 7500
  • 5. How to embed corporate responsibility across different parts of your company REPORT CONTENTS ® Acknowledgements ® Executive summary ® Introduction and methodology ® PART I. CRITICAL INFORMATION FOR EXPERIENCED CORPORATE RESPONSIBILITY AND SUSTAINABILITY PROFESSIONALS This opening section is written for experienced CR managers. Its purpose is to highlight best practices and effective tools and processes for convincing departments to embed CR, monitor company-wide progress, and work with other departments to collect data and set meaningful indicators on social and environmental impacts. i. Embedding corporate ethics: some key steps ii. Clarity of internal communications iii. Measuring success: designing CR metrics and selecting tools iv. Addressing common challenges v. Trends in CR leadership and organisation Part I includes detailed analysis of strategies used by Tata, BT, Novo Nordisk, Alliance Boots, Man Group, HP, Starbucks, PepsiCo and Vodafone ® PART II. STAND-ALONE DEPARTMENT GUIDES 1. Procurement Guide – how to embed CR in sourcing and supply chain activities Includes detailed analysis of strategies used by: HP, Green & Black’s, Innocent Drinks, Sedex, Starbucks and PepsiCo 2. Human Resources Guide – how to embed CR, and improve productivity and staff morale Includes detailed analysis of strategies used by: HP, Campbell Soup, Alliance Boots, Starbucks and Novo Nordisk 3. Communications Guide – how to embed CR in reporting, marketing, and internal and external communications Includes detailed analysis of strategies used by: BT, Vodafone, Starbucks, Man Group, HP and Novo Nordisk 4. Facility, Logistics and Operations Guide – how to embed CR into daily operations Includes detailed analysis of strategies used by: Alliance Boots, HP, BT, Novo Nordisk and Vodafone 5. Finance and Accounting Guide – how to embed CR into daily processes Includes detailed analysis of techniques suggested by leading industry associations; how the behaviour of the finance and accounting department can impact CR, from Pinnacle360; and examples from Novo Nordisk, Starbucks and BT. ® PART III. BEST PRACTICES AND KEY RECOMMENDATIONS FOR EMBEDDING CR Order at www.ethicalcorp.com/csr
  • 6. Ethical Corporation report centre Looking for other corporate responsibility and business ethics intelligence? Recent publications cover topics such as anti-corruption, multistakeholder social and environmental initiatives, emerging market challenges and managing carbon emissions reduction. Find more information at: www.ethicalcorp.com/reports. Prices from 395 Euros. Anti-corruption, ethics and compliance in Russia Practical information to develop local compliance strategies and overcome corruption challenges. For more information, current prices or online ordering, visit: www.ethicalcorp.com/russia Anti-corruption, ethics and compliance in China and Counter corruption in your supply chain in China Learn more about the issues critical to your operational security, ethical management and success in China. For more information, current prices or online ordering, visit: www.ethicalcorp.com/china Best practices for designing effective ethics programmes Find out which ethics and compliance training is most effective and productive. For more information, current prices or online ordering, visit: www.ethicalcorp.com/ectraining How to manage carbon reduction, and make it pay A hands-on management briefing on real-life ways big UK companies cut carbon, and their costs. Order online or obtain more information at: www.ethicalcorp.com/crc Corporate greenhouse gas emissions reporting Learn how your competitors are calculating and verifying their GHG emissions – and discover which metrics and verification standards will work for you. For more information, current prices or online ordering, visit: www.ethicalcorp.com/greenhousegas Guide to industry initiatives in CSR Get the inside track from some of the world’s key industry-based initiatives. For more information, current prices or online ordering, visit: www.ethicalcorp.com/initiatives Job-specific guides for embedding CSR throughout your company Winning methods for integrating sustainability into operational departments including communications, finance and facilities. For more information, current prices or online ordering, visit: www.ethicalcorp.com/csr Essential strategies for effective emissions trading and offsetting With practical information from the leading companies, this report is everything you need to develop your company’s emissions trading and offsetting strategy. Including case studies from 15 companies across industry. For more information, current prices or online ordering, visit: www.ethicalcorp.com/emissionstrading The must-have guide to water ethics, footprinting, programmes and supply security Learn how water risks factor into your operations, and what you should do to ethically manage water use. For more information, current prices or online ordering, visit: www.ethicalcorp.com/water Order options: Secure online forms: www.ethicalcorp.com/reports Ethical Corporation report order form Telephone: Client Services at +44 20 7375 7500 Email: research@ethicalcorp.com Mail this form to: 7–9 Fashion Street, Your information London, UK E1 6PX First name: ...................................................................................... Last name: .................................................................... Company: ................................................................................................................................................................................ Telephone:................................................................................................................................................................................ 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