This slide speaks to how CSR / sustainability programs create value – value from an economic, environmental and social perspective.
This slide is an attempt to create a framework around what Company is already doing and what it could be doing on a path to creating shared value. I see Company is attempting to create social and environmental value beyond the size of the enterprise. One potential future strategy would be to create open platforms for others to use. One small example of what Company already does are the excel templates for service day events that are available for others to use.
Sustainability Frameworks Bruce Starcher2011
Sustainability Value Creation Commerce Justice Economic Environmental SocialMarket Cap = Eliminate Toxins Basic Needs Food+ Revenue Neutralize Carbon Shelter- Cost Sustainable Lifestyle Sustainable Living Health+ Brand Positive Change Wellness+ Employees Education- Financing Financial Security- Risk Community Workplace Social Political
Value Creation Shared Value World Environmental, Social value Ecosystem Activism Industry Open Collaboration Platforms Suppliers Assessments X-Sector Beyond Groups Company IndustryEngagement Association Code of Person Conduct Total Rewards Economic Value
Linear to Closed Loop Systems• Systems diagram here …
CSR Maturity Defensive Compliance Managerial Strategic Cooperative Pre-2006 2006 - 2010 2011 - 2015 2015 - 2018 2018+Employee Engagement None I’m aware of the message I understand the message I believe I am committed to act Adopt a policy-based Embed the societal issue Connecting externally with Deny practices, outcomes or Integrate the societal issue Focus compliance approach as into core management organizations to drive responsibilities into core business processes a cost of doing business processes broader change One or two projects Activities No Action Green-wash Bundle of Projects Management System Full Integration No strategy Leadership and Management Processes, Strategy, Financing, Embedded No No Business Processes Strategy, Employee Reputation, Brand Engagement To mitigate the erosion of economic value in the To enhance economic value To enhance long term To defend against attacks to To mitigate the erosion medium term and to in the long term and to gain economic value by their reputation that in the short of economic value in the achieve longer-term gains first mover advantage by overcoming any first mover The “why” term could affect sales, medium term because of buy integrating aligning strategy and process disadvantages and to realize recruitment, productivity, and ongoing reputation and responsible business innovations with the societal gains through collective the brand. litigation risks practices into their daily issue action. operations. Source: Simon Zadek, “The Path to Corporate Responsibility”
CSR Landscape Economic Environmental Social GovernanceFinancial Performance Supply Chain Responsibility Employees Metrics and MeasurementEconomic Benefit Manufacturing Agreements, Diversity and Inclusion, Balancing Change Management Supplier Code of Conduct, Supplier work-Life, People Development and CSR Assessments Audits, Supplier SRE Training, Advancement, Employee and Global CSR Program Management Transparency, NGO Collaboration, Citizenship, Employee Engagement, Verification and Assurance Compensation and Benefits, Minimal Waste Promoting Wellness, Health and Reuse, Recycle, Repair, Rethink, Safety. Recover, Compost, Producer Human Rights Responsibility Open door policies, Diversity Environmental Sustainability Policies, Human Rights and Labor Marketing Communications, Policies, Standards of Business Operations, Manufacturing, Conduct. Logistics, Product Use, EH&S, Supply Chain Responsibility Resource Efficiency Sustainable Sourcing, Supplier Social Climate and Energy Responsibility, NGO Collaboration, Scope 1, Scope 2, Scope 3 Transparency, Supplier Diversity Sustainable Design Community Compliance, Design for the Employee Volunteerism, Corporate Environment, Lifecycle Analysis Philanthropy, Community (LCA), Accessibility, Zero Waste Engagement, Economic Impact System Privacy
How to look at CSR ResponsiblePeople Climate & Energy Minimal Waste Purpose Governance ProductCommunities Product Carbon Management Waste to Landfill Ethics Metrics & Measurement• Employee Volunteering • Legal • Scope 1 • CSR Metrics• Community • Safe • Scope 2 • CSR Measurement Engagement • Environmental • Scope 3• Corporate Philanthropy • Sustainable• Economic Impact • EthicalEmployees Process Waste to Water Values driven leadership CSR Assessments• Diversity & Inclusion • Environmental • CSR Self-Audit• Employee Engagement Marketing Strategy • SCORE assessment• Health Safety & • Product Material Audit Wellness • Supplier Management• Human Rights • Design for Environment• Total Rewards • Lifecycle Analysis• People Development• Work Life ProgramsSupply Chain Waste to Air Change Management• Integrate CSR in • Communications Sourcing • Training• Supplier Social and Environmental Responsibility• Transparency• Supplier Diversity CSR Program Management
Responsible ProductThe first platform speaks tothe core of our business –our products.We want to evolve fromsimply meeting our LEGAL SAFE ENVIRONMENTAL SUSTAINABLE ETHICALexternally mandated /legal and safetyrequirements and movetowards providing ethicalproducts – products that dothe right thing for ourstakeholders. I am following I will not harm the I will do the right the law environment thing for our stakeholders I will not harm our I will meet this generation’s consumers needs but not at the expense of tomorrow’s generation
Minimal WasteZero Waste is an inspiringand achievable long termvision and closely resemblesthe TQM mantra of zerodefects. It focuses on DEVASTATE INCINERATE GENERATE RECYCLE REUSE REDUCE RETHINKredesigning systems andprocess for a total productlifecycle.Waste represents costs, both Discard into Capture useful Previously Waste as ato our shareholders and toour environment. the natural material for discarded resource environment. waste to energy items haveThe approach is an iterative Litter, program; saves value inone based on setting a set ofgoals and then educating, dumping, energy and anotherassessing, prioritizing, burn barrels CO2 in the long process orauditing, identifying term. companypotential actions,implementing, reportingand then repeating theprocess until the goal is High temperature Discarded items Buy less andachieved. destruction of are separated use less material into materials that can be used again
Climate & EnergyCarbon is the commondenominator for all energysources. Whether youbelieve that carbon is acontributor to globalwarming or not, we doknow that the byproduct ofcarbon based processes arepollution and growingcosts.As we understand andtrack our carbon footprintover time, we will be ableto set aggressive goals topursue with bothenvironmental andeconomic benefits.
People COMMUNITYBrands exists because ofpeople - our employees, ourpartners’ employees and Employee Volunteerismthe communities in which Community Engagementwe operate. Corporate Philanthropy Economic Impact EMPLOYEES Purpose Employee Engagement Diversity Human Rights Total Rewards People development Work-Life programs Health, safety and wellness SUPPLY CHAIN RESPONSIBILITY Integrate CSR in sourcing operations Supplier social and environmental responsibility NGO Collaboration Transparency Supplier Diversity
GovernanceGovernance focuses on“how” we leadSustainability across theorganization and beyond.These are topics thatrequire leadership andchange management toaffect how conductsbusiness. GOVERNANCE Metrics and Measurement Change Management Sustainability Assessments Sustainability Program Management
The Business of Sustainability Customer ConsumerHow do all these pieces fittogether – fromSustainability Objectives to Objective To be among the industry leaders in Corporate Social ResponsibilityFunctional strategies?Over time, we will be Strategy Cost and environmental impact reductions across products and processesmoving from a projectdriven structure to astructure whereSustainability is integratedinto each function and Productbusiness. Charac- Offering Packaging Category Specific Attributes teristics Post Sales Minimal Waste Minimal Material Waste Minimal Process Waste Reduce, Reuse, Rethink,… Climate and Energy Carbon Management People Responsible Supply Chain Operations Brand Vision Brand Community Employees Governance Metrics and Measurement Change Management Sustainability Program Management Supply Communi- Investor Sustainability Functional Marketing Sales R&D Compliance Finance HR Strategies Chain cations Relations Governance
From planning to execution Vision Identification Sponsorship Project Embedded Monitor FunctionOwnership Sustainability Sustainability Sustainability Function Function /Sustainability Function and Function leads Function owns Sustainability Identify projects Develop long Sponsor projects projects and process and monitor the that deliver on Action term vision and across the creates the deliverables process to ensure the long term roadmap organization capability across across the implementation vision the organization organization and ongoing performance
Sustainability Evolution Defensive Compliance Managerial Strategic CooperativeResponsible Product - Packaging - Green Product Portfolio - Full understanding of all - Continuation and extension of - Non compliant - Sustainable Packaging product inputs, components, strategic work. Industry leadership in chemicals - Responsible Supply Chain processes and their impacts. all product categories re: methods, - Supplier - Lifecycle Analysis - Detailed plan(s) in place to R&D, manufacturing, sourcing. Sustainability - PVC substitution reduce or eliminate impacts, to - Mentorship and strategic alliances Compliance - Ongoing Product Material Compliance become resource "neutral" via outside of industry to spread - Green Products upcycling, alliances to create knowledge. industrial nutrients (i.e. waste= food). Minimizing transport; packaging, etc.Climate and Energy - Carbon Management - Carbon Management - Deep understanding of the • Scope1 • Scope1 environmental impacts of ALL • Scope 2 • Scope 2 aspects of the enterprise by all • Scope 3 • Scope 3 employees AND all company activities analyzed and guided by this understanding. - Sharing of knowledge and active support of science and research institutions working in these areas.
Sustainability Evolution Defensive Compliance Managerial Strategic CooperativeMinimal Waste - General Office - Site Recycling - Process Redesign - Approaching or achieved “Minimal Printing - General Office Printing - 100% take back packaging guaranty, including waste" goal...and continuing to make - Solid Waste Reduction agreements with suppliers re: packaging types, adjustments to perpetuate it. materials and transport strategy. - Active participation in multi- Incentive plan(s) to actively engage customers in industry coalitions re: zero waste s zero waste initiative. strategies around the world.People - Purpose - Employee Engagement - Continuation and expansion of - Employee Engagement - Community Engagement strategic era plans. Employee - Diversity - Integrate Sustainability metrics in MIP and MBO generated ideas have resulted in - Compensation and benefits objectives spin-off businesses or organizations - People development - Introduction of cash and non-cash (e.g. that work with . - Work-Life programs awards/recognition, time off, etc.) incentives for - Health, safety and wellness employee ideas or projects. - Partnering with schools (elementary through university) to develop brand awareness AND environmental/social goals. - Partnering with non-profits and community based NGOs to provide products and raise awareness of company mission & goals.
Sustainability Evolution Defensive Compliance Managerial Strategic CooperativeGovernance - Environmental - Align around a long term Sustainability - Develop Company level - Corporate Governance Business Case roadmap Sustainability strategy and integrate - Access to SRI funding - Customer - Sustainability External Reporting into corporate strategy - Management compensation includes Sustainability risk - Sustainability Communications - Integrate Sustainability in ’s Sustainability component. profile and - Sustainability Training Culture. -External Networks, Working Groups, requirement - Establish Sustainability metrics, - Increased investment by SRI and External Collaboration - Sustainability measurement and reporting infrastructure institutional investors as a result of - All Board members have familiarity and Baseline audit - Public goals Sustainability accomplishments and /or expertise with Sustainability goals and - Embed - Link values to behaviors and performance goals. issues. Sustainability in key appraisals - Well established e-learning - Company and shareholders are processes - Develop Company level Sustainability systems and other internal/cultural completely and actively aligned with - Customer Request strategy and integrate into corporate mechanisms allow budget resources regard to s Sustainability agenda and process and structure strategy to be freed up for other uses. goals. - Build external network among NGOs, - Company is leading by example and leading Sustainability companies and other supporting political and social policies that key sustainability players further environmental and social practices and initiatives. - Compensation of all employees AND selection of all suppliers, contractors and vendors have mandatory Sustainability goal requirements.