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Social issues in business presentation

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Here's a 24 slide deck of images and text I presented today to about 30 managers in a training session. I tried to cover a fair bit of ground in 45 minutes. I attempted to look at why and how social …

Here's a 24 slide deck of images and text I presented today to about 30 managers in a training session. I tried to cover a fair bit of ground in 45 minutes. I attempted to look at why and how social and environmental issues are increasingly linked in management. I tried to tell some stories of what companies are doing in response to the social - as well as environmental - pressures on them.

Published in: Business, Economy & Finance

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  • 1. Social  issues  and  Sustainability   Tobias  Webb,  November  19  2013   Stakeholder  Intelligence  /  Ethical  CorporaDon     Tobiaswebb.blogspot.com     Tobias.Webb@stakeholderintel.com  
  • 2. Founded  2001     Business  magazine       Based  in  London,  global   network  of  writers       8000  arDcles  on     Ethicalcorp.com     Serving  3000  companies     Hosts  Conferences     Publishes  Reports     Interview  hundreds  of     managers  every  year     More  at:     www.ethicalcorp.com      
  • 3. Social  issues,  business  and   governance     Sounds  a  bit  academic  and  woolly,   right?       So  let’s  break  it  down  to  what  it  really   means    
  • 4. Where  environment  meets  human   rights     •  30  Greenpeace  acDvists  detained  in  the   Russian  ArcDc   •  Two  aVempted  to  board  a  Gazprom  plaWorm   in  protest   •  All  arrested  in  a  Commando  raid   •  Charged  with  piracy,  now  hooliganism     •  Russia  clearly  trying  to  defend  ArcDc   exploraDon  interests  
  • 5. Forced/bonded  child  labour   •  168  million  children  engaged  in  child  labour   worldwide  (Uzbek  harvest  every  September)   •  Down  from  215  million  in  2008,  and  245   million  in  2000   •  More  than  half  are  involved  in  hazardous   work,  considered  one  of  the  worst  forms  of   child  labour.  Uzbekistan  a  key  perpetrator  
  • 6. So  what  can  a  company  do?   •  Clear  policy  of  no  tolerance  of  child  labour  in   their  operaDons  and  supply  chain   •  Due  diligence  on  children’s  rights:  UDlise  the   John  Ruggie  Framework   •  Partnerships  and  lobbying  to  help  formalise   the  informal  economy    
  • 7. Another  key  issue:  Transparency  
  • 8. SoluDon?  CollaboraDon   •  ExtracIve  Industry  Transparency  IniIaIve   set  up  in  2003  to  combat  Government-­‐related   corrupDon  in  the  oil  industry     •  “MulDstate  corporate  governance”.  Countries,   NGOs  and  large  companies  all  involved     •  Set  standard  for  disclosure  of  revenues/deals   •  A  long,  slow  and  bumpy  road  for  signatories     •  Now  broadened,  four  EU  states  +  US  to  join    
  • 9. Why  is  deforestaDon  also  a  social  issue?  
  • 10. Other  collaboraIon  based  groups  that  are   driving  change:       •  Kimberly  Process:  Conflict  diamonds   •  Sustainable  Apparel  CoaliIon:  Factory  PolluDon  &  Social   Standards   •  Word  Business  Council  for  Sustainable  Development:   Lobbying     •  World  Resources  InsItute:  Research,  policy,  mapping   •  Carbon  Disclosure  Project:  ReporDng  and  accounDng   •  Roundtable  on  Sustainable  Palm  Oil:  Standards,  social  and   environmental  improvements   •  Global  eSustainability  IniIaIve:  CollaboraDon  for  tech   companies  
  • 11. When  social  issues  go  wrong   •  Nestle:  AVacked  by  Greenpeace  in  2010   Result:  Social  media  reputaDon  meltdown     •  Chiquita:  Sued  by  families  of  Colombians  killed  by   rebel  groups  due  to  ransom  payments  made   Result:  Huge  reputaDon  damage  and  legal  costs    
  • 12. Coca-­‐Cola:  Mis-­‐managed  media  and  consumer   percepDons  over  India  water  management  in  2006     Result:  BoycoV,  brand  damage,  producDon  halts   and  Indian  management  team  lost  their  jobs    
  • 13. When  social  issues  go  very  wrong  
  • 14. Rana  Plaza  April  2013   •  Factory  of  sub-­‐standard  construcDon   collapsed,  despite  warnings   •  1129  people  died,  mostly  young  women   •  Brands  audited  working  condiDons,  not   building  structures   •  Lead  to  creaDon  of  Accord  on  Factory  and   Building  Safety  in  Bangladesh  
  • 15. Rana  Plaza,  some  posiDve  results   •  Accord  is  a  “five-­‐year  legally  binding   agreement  between  internaDonal  labor   organizaDons,  non-­‐governmental   organizaDons,  and  retailers  engaged  in  the   texDle  industry  to  maintain  minimum  safety   standards  in  the  Bangladesh  texDle  industry”   •  October  2013:  1,600  Bangladeshi  factories   covered,  represenDng  about  a  third  of  the   Bangladeshi  texDle  industry  
  • 16. Nike:  A  posiDve  story,  eventually…  
  • 17. Nike:  From  ‘devil’  to  leader!   •  Nike  aVacked  since  1990s  over  labour  condiDons   •  IniDally  defensive,  gradually  opens  up  to   transparency   •  Following  GAP  in  2004,  publishes  supplier  list  in   2005   •  Key  player  in  beZer  R&D  and  innovaIon  for   more  sustainable  products   •  Helps  create  the  Sustainable  Apparel  CoaliDon   •  Donates  R&D,  leads  brand  collaboraDon    
  • 18. What  about  more  localised  social   impact  work?   •  Community  volunteering   •  NGO  partnerships   •  Matching  employee  donaDons  /  Dme   •  Going  beyond  compliance  with   employees     •  Mapping  country  footprints     (Unilever/Oxfam/SAB  Miller  etc)    
  • 19. Conclusions   •  Many  companies  do  good  localised  ‘social’   related  work   •  A  trend  of  economic/social  value-­‐add   reporDng  is  emerging  amongst  some  global   firms   •  Global  impacts  &  links  not  well  understood   unDl  recently  (e.g.  Chinese  factory  polluDon)  
  • 20. Conclusions   •  Today,  in  many  cases,  social/environmental  are  highly   linked,  rather  than  separate     •  The  Ruggie  Principles  now  provides  companies,  since   2011,  with  a  framework  for  managing  human  rights   impacts   •  Sustainability  governance  is  only  a  decade  old,  but  the   debates  and  acDons  (Rana  Plaza,  EITI)  are  acceleraDng     •  We  have  only  just  begun!  
  • 21. Thank you! Tobiaswebb.blogspot.com