Corporate responsibility and sustainability, Opportunity And Embedding Sofia 17 Nov 2009
CR: Opportunity and embedding “ Capital Weekly” CSR Conference, Sofia, Bulgaria, Nov. 17 2009 Introduction Ethical Corporation : Global business intelligence on CR, since 2001 10 issues a year in print, online archive: 8000 articles Free weekly eBrief on global CR issues World-wide network of writers and analysts Produce independent research reports and training Advise governments and companies (sometimes) Take a constructively-critical stance on CR www.ethicalcorp.com
CR: Opportunity and embedding <ul><li>Presentation structure: </li></ul><ul><li>The role of CSR for business in 2009 </li></ul><ul><li>The role of corporate responsibility in modern business development </li></ul><ul><li>How leading companies embed corporate responsibility </li></ul><ul><li>Q uestions and answers </li></ul>
CR: Opportunity and embedding What’s the role of CSR for business in 2009? Same as in the past 15 years: Community , Marketplace , Environment and Workplace - But bigger, wider and more complex: i.e. Amazon soy and leather - Staying up to speed with expectations: Cutting carbon emissions - Managing business risks: Anti-corruption (not illegal in past) - Spotting opportunities: Efficiency , customer trust , new products CSR is about relationships, efficiency and innovation CSR issues are now regulatory, financial and reputational
CR: Opportunity and embedding The role of corporate responsibility in modern business development New opportunities for products: Certification, Wind turbines, industrial technology (i.e. Unilever, Kraft, Mars, Cadbury, GE, Siemens, Toshiba) Preferred partner for leading companies: Big firms expect more Supporting diverse supplier base, develop loyal SME suppliers Increased likelihood of government contracts: Over time… Closer and more trusted relationships with customers, NGOs
CR: Opportunity and embedding Where we see the most progress in business development and CR: Niche brands : Innocent, Seventh Generation, and many others Big Industrial companies : GE, Siemens, Toshiba, Nissan, Toyota, Intel Consumer brands : P&G, Unilever, Mark & Spencer, Cadbury, Tesco Reputationally vulnerable companies : Pharmaceuticals, heavy industry, extractive industry firms – Shell, BP, Exxon, BHP, Sakhalin Energy, Xtrata
CR: Opportunity and embedding Where it’s harder for CR to get traction in business development Hospitality /Travel (All hotels greenwash together now!) Cheap retail : Primark, Lidl, Aldi (Still cheaper to source unsustainably) Finance : Banks and insurance companies poor communicators (not all!) Professional services / B2B companies, Law firms Why? Lower exposure. Less pressure. This is changing slowly - but accelerating in pace
CR: Opportunity and embedding <ul><li>How leading companies embed corporate responsibility into their businesses </li></ul><ul><li>CR moved from a niche activity to the mainstream of business thinking </li></ul><ul><li>But some central questions remain: </li></ul><ul><li>What are the best methods for embedding the corporate responsibility agenda – right across a company’s activities? </li></ul><ul><li>What is the role of a central corporate responsibility department? </li></ul><ul><li>How can the corporate responsibility department work effectively with other business functions ? </li></ul>
CR: Opportunity and embedding <ul><li>Key steps to take when embedding corporate responsibility: </li></ul><ul><li>Ensure senior management is engaged </li></ul><ul><li>Spell out how a sustainable agenda benefits everyone in the company </li></ul><ul><li>Measure success and report on it </li></ul><ul><li>Create strategy and programmes that are relevant to their context. </li></ul><ul><li>(One size does not fit all) </li></ul>
CR: Opportunity and embedding How does it work in practice? Some examples Man Group : Corporate responsibility elements in executive pay structures , if bosses don’t deliver on these then their pay and bonuses are cut. Intel is rolling this out for ALL employees Nike: Head of sustainable business also head of innovation . Oversees supply chains, ‘considered’ design, along with department heads Novo Nordisk: Board and senior management strict obligation to take environmental and social matters into account. 2004: articles of association revised: Novo Nordisk seeks to conduct its business in ways that are financially, environmentally and socially responsible. Sends a very clear message Wal-Mart : Personal Sustainability Plans for 1.3 million employees in U.S.
CR: Opportunity and embedding HP: Released list of top suppliers in 2008. Encourages competitors to cooperate in improving conditions in the IT sector’s supply chain Making the list public also gives HP more leverage with suppliers to improve working practices. Starbucks and supply chains: Adhering to standards means farmers will be producing high-quality coffee beans that will command top prices Suppliers eligible for premiums from the company’s own buyers and for long-term agreements Starbucks makes payments to community healthcare , education and other social projects as part of contracts with suppliers.
CR: Opportunity and embedding Recommendations for embedding corporate responsibility Create pride in corporate responsibility achievements – with ALL colleagues Engage employees and listen to them, it helps with recruitment Persuade suppliers . Promote the financial benefits for purchaser and supplier, Measure and record data (gets finance and accounting buy-in) Focus on things that employees in operational departments can do Work with outsiders with expertise in specific areas, such as NGOs Report effectively – and seek credible assurance! Source: “How to embed corporate responsibility across different parts of your company” Ethical Corporation, September 2009
CR: Opportunity and embedding “ How to embed corporate responsibility across different parts of your company” A report published by Ethical Corporation, September 2009. Summary available at: http://www.ethicalcorp.com/csr Contact information: www.ethicalcorp.com Toby.Webb@ethicalcorp.com +44 (0) 207 375 7561 Search for “Ethical Corporation” on Google, Facebook, Twitter to find us. Linked-in, search for: “Toby Webb” Thank you! Questions?