You may or may not be surprised that we do not yet have a written CSR Strategy? We have a Sustainability Strategy, is there a difference? Are they the same? We have embarked on the second inclusion of the BITC Index that gives us a GAP Analysis of our CSR activities this data is helping us to formulate a JLR CSR Strategy.
CSR/Sustainability is more about how the company MAKES its profits rather than how it distributes any excesses CSR/Sustainability needs to be fully integrated into the systems and processes within the organisation rather then being peripheral to it.
One of the most asked questions within the literature on corporate social responsibility is: what is the business case for CSR? The fact that it is so often asked makes it all the more remarkable that it is so often so badly answered. In truth, there is no business case for CSR. Any more than there is a business case for innovation. Or for marketing. Or for outsourcing. Each of these processes describe a range of possible activities ? and any one of those activities may be beneficial or detrimental to the business. It all depends on the judgement in selection of which actions to take, and the skill and energy applied to achieving results. The business case, therefore, is for a proposed course of action, not for some broad general concept of a type of activity.
There is little doubt that by working for the good of the people you employ and the people you interact with, such as your customers and suppliers, you enhance your commercial activities and create long-term, sustained value for your business. It does not matter how big a company you are, your community activities can enhance your image with your existing and potential customers.
You also directly benefit from a flourishing and healthy community through the provision of:
We work through four impact areas: Marketplace, Workplace, Environment and Community. With more than 850 companies in membership, we represent 1 in 5 of the UK private sector workforce and convene a network of global partners. We’re committed to help members integrate responsible business, share experience and take collaborative action. Why? It’s just good business.
NARRATIVE 27 years later and it’s still about being proactive, getting engaged and taking action - exactly the reason that BITC was created against the backdrop of social unrest: e.g. the Toxteth, Handsworth and Brixton riots of the early eighties. Our founder members came together recognising that in order to have healthy high streets you need healthy back streets. NOTES BITC 25 th Anniversary reports… Impact Review 2007 - This much we know: http://www.bitc.org.uk/document.rm?id=6548 Business-led corporate responsibility coalitions: Learning from the example of Business in the Community in the UK - An Insider’s Perspective from David Grayson (2007): http://www.bitc.org.uk/document.rm?id=6442
NARRATIVE Because . . .Your company – whatever size, product or service – impacts on society through the way it operates in the: Workplace – How you recruit, develops and train, downsize & restructure, and invest in the future workforce Marketplace – How you innovate, source and market products and services and generate revenue Environment – How you reduce carbon emissions and invest in a low carbon future Community – How you share time, skills and resources to invest in the heath and well being of the communities in which you operate and influence. Its never been more important to demonstrate your impact in these areas . These four areas are your risks as a business. NOTES A flyer (March ‘09) sets out BITC’s Communications support offer to members. It is available for download from the Publications section of http://www.bitc.org.uk For an overview of our response to the recent crisis read: Corporate Responsibility and the Financial Crisis (Oct 08). Recommendations included companies working with their board to ensure robust corporate governance, ensure they have used the CREATE tool (or similar) and are working towards/ already using the CR Index. http://www.bitc.org.uk/document.rm?id=8245 Each impact area is working up a position paper on why “its never been more important”. The one line below sums up the response: Workplace: Irresponsible workplaces are not an option in any economic climate. If businesses want to survive and thrive it is their people, and the workplaces that support, empower and nurture them that will largely determine success or failure. Responsibility in a recession: Checklist for restructuring and downsizing (Jan 09) - http://www.bitc.org.uk/resources/publications/cr_in_a_recession.html The Responsible Workplace: How to survive and thrive (Feb 09) http://www.bitc.org.uk/resources/publications/responsibleworkplace.html Marketplace: Its never been more important that companies need to sign up to the Marketplace Responsibility Principles and put in place plans to embed the principles through their businesses and supply chain to increase the trust of their stakeholders. http://www.bitc.org.uk/intranet/communications_gb/its_never_been_more_important/index.rma Environment: Taking action on climate change will position businesses to ride the economic storm by providing short-term cost savings, increased morale and opportunities to retain and win new business; and in the long-term improve financial viability, provide access to new markets and improve reputation and trust. http://www.bitc.org.uk/intranet/communications_gb/its_never_been_more_important/index.rma Community: Businesses are more successful, if they operate in healthy communities. It’s even more important to engage in community activities in a downturn, because of the pride it engenders in staff and in an increasingly competitive market, the local community support it generates. http://www.bitc.org.uk/intranet/communications_gb/its_never_been_more_important/index.rma
JLR work with a number of partnerships to support its Community Education Programme focusing on Science Technology Engineering and Maths – STEM. This gives JLR a national reach.
Possible pay back includes Product Placement, Potential Sales, different angle to Communicate the Corporate Message to the wider Community and Opinion Formers, sets the scence for level playing field discussions e.g. NGO’s Land Rover Solihull Green Peace?, Third Party influence, data for lobbying etc…
Jaguar Land rover presentation at BITC Member Event 16 May 2012
Corporate Social Responsibility Les Ratcliffe Head of Community Relations Jaguar Land Rover
PURPOSE1. A View on Corporate Social Responsibility > Background – Joint approach to CSR > External view and Definition > Sustainability (CR) v CSR > Business in the Community perspective2. Brief look at CSR activities > Community Relations > PR and CSR
Who is Les Ratcliffe?• 36 years service, started with Jaguar 1973• Manufacturing, Pre production development• Young People training, apprentice, graduates, students• Open Learning, technical and systems training• Personnel – Process Development• Manager - Management & Professional Training• Manager Community Relations, PR and Communications > formulated Strategy > joint Jaguar Land Rover Strategy > support and advice to Corporate Responsibility/Sustainability• Corporate Governance & Social Responsibility – Mike Wright Exec Director Jaguar Land Rover
Community Relations Team - Scope• April Wickens (full time) Nikki Armstrong (18hrs),Dolores Evans (18hrs)• Joint Branded – Combined Budget 2010/11 - £412k• Key Activities: > Community Networking – Councils and Local Government, Community Groups, Chambers of Commerce, CBI, Business Groups, Third Sector, NGO’s, Business in the Community, Local News Papers/Media/Business, Events.• Five Education Business Partnership Centre’s• Three National Schools Challenges• Employee Volunteering CARES• Charities
Community Relations Highlights• Awards for Excellence ‘Big Tick’ Education Business Partnership Centre’s – 2006 – CB first to open in 1999• PM visit to Browns Lane EBPC – national recognition - 2006• Awards for Excellence ‘Big Tick’ Jubilee Award for Volunteering - 2007• BEN Bronze Award for Employee Giving - 2008/09 – Silver 2010/11• CR Index Silver Award – 2009, Gold 2010• Big Tick Environmental Award 2010• CR Index Platinum Award - 2011• Prince of Wales Ambassador Award - 2009• CR Index – Community Mark (Result Nov 2010) 15 July London
What is Corporate Responsibility?“Corporate Social Responsibility or CSR encompasses thetotality of a companys behaviour in society, at home andabroad, through its direct operations and its influence onsuppliers and customers.The impact on society is not just economic but also socialand environmental." Mike Tuffrey, Corporate Citizenship Company
Government view on CSR?“In this modern era issues of staff moral and motivation, brand loyaltyand reputational risk, and environmental sustainability – questions of‘Corporate Social Responsibility’ – are now also widely recognised askey drivers of competitive advantage”“Corporate Social Responsibility is a recognition that trust is critical tosuccess, that reputation management is essential, that a brand mustenjoy people’s confidence and that social responsibility is not anoptional extra but a necessity” PM – speech Business in the Community AGM
JLR Definitions:Sustainability (CR) v CSR• Sustainability equivalent to Corporate Responsibility; made up of 3 key areas; Social + Environmental + Economic• Corporate Social Responsibility Community + Employees + Suppliers Local H&S Human Rights Global HR Policies
Economic Social Viability Sustainability Ethics CORPORATE Environmental Legal SOCIAL SustainabilityCompliance RESPONSIBILITY Workers Philanthropy Rights Human Rights
VisiblyTATA View enriching life TODAY IS A GOOD DAY to enrich life and address … Jamshetji Tata 1887 - 1904 Sir Dorabji Tata 1904 - 1932 (mills, hotels, community) (steel, sports, education, health) “In a free enterprise, the “The health and well being of community is not just another our operatives are our best stakeholder in our business, but assets.” Founded the Lady it is in fact, the very purpose of Tata Memorial Trust its existence.” JRD Tata 1938 - 1991 (aviation, Ratan Tata 1991 - (cars, literacy) atomic energy, employee “We are not doing this for welfare) “The wealth gathered propaganda. There are by Jamsetji Tata and his sons in companies (outside the group) half a century is held in trust for who may do it for the sake of the society. The cycle is thus publicity. We are doing it complete, what came from the because we really wish to (by people has gone back to the choice)” people many times over.” … making visible The House of Tata in the community across Europe
Corporate Social Responsibility Why do it? What’s the Business Case?
The value of your community• 44 per cent of the British public believe it is very important that a company shows a high degree of social responsibility when they buy the companys product.• three in five people want to work for a company whose values are consistent with their own.• 81 per cent of young people have a strong belief in the power of responsible business practice to improve profitability over time.• 86 per cent of institutional investors across Europe believe that social and environmental risk management will have a significantly positive impact on a companys long-term market value. MORI for BITC 2009
The value of your community• growing markets for your goods and services• great employees with the skills you need, working for you, not just for themselves• support services and infrastructure you need to operate, grow and be mobile• a place for your suppliers to operate, flourish and excel• a fertile ground for profitable growth and investment• a healthy, safe and vibrant place to live for you and your family. Business in the Community View
What do we get?• increased staff morale• greater staff retention• improved staff skills• heightened awareness of our business in the local community and beyond• positive stories for communication• recognition of our place in societyand many more……. Jaguar Land Rover View
Who do we work with? Business in the Community mobilises business for good. We inspire, engage, support and challenge companies to continually improve their impact on society.
This is why Business in theCommunity was created 1985 – UK Inner City Riots
Business in the Community Framework - BITC• Workplace• Marketplace• Environment• Community
What happens if confidence is lost? Toyota recalls 2.3m US vehicles!Toyota president Toyoda deeply sorry for recalls! Toyotas reputation could be tarnished for years! Toyota car recall may cost $2bn!
Case Study• Jaguar’s long partnership with Coventry City Council provided a positive platform out of a negative situation – Closure of Browns Lane Plant – given the enormity of event, minimum disruption - Outcome - still strong support from local community and City Council.• Peugeot – 10 minutes notice of Ryton plant closure – Council meeting not to purchase cars again, mass disruption, local anger in the community and long term corporate poor relations.
Community Relations - VISION To create and maintain excellent Community Relations to local and regional communities where we design and manufacture To enhance our reputation as a Socially Responsible Company Nationally and Internationally
Community Corporate Objectives• National support to JLR sponsored programmes.• Extend involvement with local community activities• Participate in collaborative ventures• Selectively promote community involvement• Assist Dealers, and NSCs and involve suppliers in best practice Community Relations• Link to Global Corporate Responsibility CR Strategy• Demonstrate where appropriate Community Excellence
Four Pillars of Community Relations 1. Community and PR – Sponsorship – Donations 2. Education and Industry 3. Company/Employee Volunteering 4. PR – Cause Related Marketing Opportunities
National Objective“Engineering skills shortage is holding back the UK, says new report” - The Royal Academy of Engineering - 2009“To get young people engaged with engineering, you need to give them ‘hands on’ experience of the industry. Many engineering professionals believe that focusing on science alone can put many students off engineering and that a more practical approach, such as Design and Technology courses, which present work-based scenarios, can be more beneficial“- The Institution of Engineering and Technology – IET - 2009
Education Key ObjectiveEducation has been given a high priority underpinning JLRs support to the Campaign to Promote Engineering - CPE - which focuses on three key areas: -1. Education Business Partnerships Centres - EBPC at each of our four sites in the West Midlands and Merseyside regions, linking to local education networks. 20,000Young People Annually2. Education Business Challenge in Schools - work related experience targeting STEM objectives – 200 Employees Annually
Education Key Objective cont..3. Local, Regional and National support to Education based programmes e.g.• Jaguar GT Design Challenge, Land Rover 4x4 Technology Challenge• Jaguar Primary Schools Challenge• Imagineering Fair and Clubs, Small Piece Trust, Formula Student etc..• Engineering Education Scheme – EES• Specialist Schools and Academies – Coventry, Solihull, Castle Bromwich – local support focusing on education to schools specifically engineering.• Higher Education – University partnerships• The Talent Agenda – Government backed initiative
Tomorrow’s Engineers Education Business Partnership Centres The Jaguar Cars Maths in Motion Challenge for Schools
Education – Other Examples• Work Experience• Sons and Daughters to Work• Mentoring• Education Business Forums• National Challenges – GT Sports Car in Schools/ TrackNAV• Imagineering• Young Enterprise• Engineering Education Scheme
PR – Cause Related Marketing Opportunities • Corporate Charities – Red Cross – NSPCC - BEN • Anniversaries - Range Rover 40th - Jaguar 90th • Sustainability/Environmental Awareness – EBPC’s • Community Vehicles – Police, Council, Air Ambulance • Sporting opportunities – e.g. Rugby, Football • Vehicle Launch/Marketing • BITC opportunities – sponsorship, product placement • VIP Scheme – Community/Business Networks • JLR Joint Branded Opportunities – e.g. Arts & Business Awards, Community Awards, Post/Telegraph Awards,Corporate Charities.
CORPORATE SOCIAL RESPONSIBILITY - CSR Investing in our Communities where we operate! Jaguar Land Rover Achieves Big Tick for Environmental Innovation! Jaguar Land Rover Achieves GOLD! CORPORATE Jaguar Land Rover – First CHARITIES Looking after our People! Automotive Company to SUPPORT Castle Bromwich Payroll Giving SILVER AWARD Achieve CommunityMark!“Our annual contribution to Educationrelated programmes in kind is over £350,000” Helping to raise over £1Million per year!
Employee Volunteering Jaguar Land Rover Volunteering Programme - CARES -In Teams Down Days16 Hours Policy 15,000 Volunteering Days 2010
The Framework for Community Relations Strategy JLR – CSR Strategy (Under development) Community Relations Strategy 2010 Community/PR Company/Employee Education & Industry Sponsorship/Donations Volunteering/Engagement• Charities Committees • Education Business Partnership Centres • Site Committees/ Plans• Sponsorship • National Challenges – GT, 4x4 in Schools • BITC CARES Programme• Corporate Sponsorship • Engineering Education Scheme • Partners in Leadership• Sponsored Charities • Imagineering, Green Power • Induction Programmes e.g.BEN,NSPCC, Red Cross • National / Regional Education Opportunities • Apprentice CSR Challenge• Cause Related Activities • Campaign to Promote Engineering CPE • Graduate CSR Challenge • School Business Challenges • Community Relations 16hrs Policy • Management Development • European/ Government Funding • Leadership Development • Corporate investment • Training and Team Development Key Messages • Leadership Representation e.g. Forums, Governors • Membership of external organisations
Finally, how do you communicateCSR? "There seems to be an assumption that communicating CSR is somehow different from communicating any other business issue - it isnt, CSR communications need to be as professional as any other type of corporate communication - using the right channels to reach target audiences". CSR Executive Survey The Institute of Public Relations - 2009
KEY MESSAGES• Board and leadership level are committed to engaging with the Community• We are trusted by the Community• We are socially responsible and perceived to be by the Community• Employees are proud of the Companies’ commitment to the community
KEY MESSAGES cont.• Employees are respected by the Community• We are sensitive to socio - economic and environmental problems• We are sensitive to diversity in the community• We are Corporately accountable• Keep the “cup of goodwill” topped up!
Education Business Partnership Centre One stop shop for delivering modules of work linking schools to Jaguar business needs capable of 8,000 students 500 Teachers a year linked to the national curriculum, modules include: > Business Studies (Jaguar the Business) > Environment > Manufacturing > Information Technology > Robotics > Jobs at Jaguar > Work experience > Science at Work > Day to Day Champion
COMMUNITY INVOLVEMENT Business in the Community ‘Seeing is Believing’ programme identified three projects resulting in Employee team events:• Castle Vale Secondary School Reading Partners, Job Fair, Mentoring, Jaguar EBPC visits – Manager as Mentor• Q3 Academy North Birmingham - School Visits, Work Inspiration, Business Class• Castle Vale HAT – Community Centre - NEETS Support Employee Engagement Volunteering
EMPLOYEE INVOLVEMENT • Support to Education Business Partnership Centre: > Module development > Shop Floor Visits > Employee talks with students • Work Experience • School Visits • Community Team Challenges • Support to the ‘Campaign to Promote Engineering’ • Group and individual presentations