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Corporate	
  Responsibility	
  Module	
  
Lecture	
  Three:	
  Employees	
  
	
  	
  
January	
  22st	
  2015	
  
Lecturer...
Leadership:	
  The	
  big	
  picture	
  
	
  
Simon	
  Sinek:	
  Why	
  good	
  leaders	
  make	
  
you	
  feel	
  safe	
 ...
Some	
  useful	
  extra	
  reading	
  
	
  
A	
  study	
  of	
  the	
  link	
  between	
  
Performance	
  Management	
  an...
A	
  reminder….Employees	
  and	
  business	
  
value:	
  Alex	
  Edmans	
  
London	
  Business	
  School	
  and	
  Wharto...
Employees	
  and	
  business	
  value:	
  Alex	
  
Edmans	
  
2.	
  	
  	
  	
  	
  	
  CSR	
  can	
  improve	
  firm	
  va...
Academic	
  research	
  findings	
  
Employee	
  Engagement	
  and	
  CSR:	
  
TRANSACTIONAL,	
  RELATIONAL,	
  AND	
  
DEV...
Evident	
  from	
  surveys	
  says	
  (1)	
  
•  Three	
  out	
  of	
  four	
  of	
  the	
  Millennial	
  GeneraLon	
  (bo...
Evident	
  from	
  surveys	
  says	
  (2)	
  
Sirota	
  Survey	
  Intelligence,	
  of	
  1.6	
  million	
  employees	
  in...
Evident	
  from	
  surveys	
  says	
  (3)	
  
•  A	
  2007	
  Towers	
  Perrin	
  survey	
  of	
  90,000	
  employees	
  i...
 
Mirvis	
  (2012)	
  explores	
  three	
  different	
  ways	
  that	
  
companies	
  design	
  and	
  manage	
  their	
  e...
So,	
  what’s	
  the	
  problem	
  
•  On	
  the	
  surface,	
  engagement	
  in	
  CSR/CR/
Sustainability	
  makes	
  per...
So	
  why	
  don’t	
  more	
  companies	
  engage	
  
employees	
  well	
  on	
  CR/Sustainability?	
  
•  Many	
  do:	
  ...
These	
  companies	
  struggle	
  with	
  
employee	
  engagement	
  in	
  CR	
  because:	
  
•  They	
  think	
  it’s	
  ...
•  Company	
  grown	
  by	
  merger	
  since	
  2006.	
  
•  From	
  Boots	
  to	
  Alliance	
  Boots	
  now	
  merged	
  ...
•  Employee	
  champions	
  also	
  promote	
  Alliance	
  Boots'	
  work	
  with	
  anL-­‐
cancer	
  network	
  EORTC.	
 ...
Employees	
  and	
  CR	
  
Case	
  Study:	
  Accenture	
  	
  
Gib	
  Bulloch	
  from	
  Accenture	
  on	
  ADP	
  
Accenture:	
  “Human	
  Capital	
  Strategy”	
  
•  246,000	
  employees.	
  
•  35%	
  female	
  -­‐	
  17%	
  of	
  Seni...
How?	
  	
  
•  Via:	
  cash	
  and	
  in	
  kind	
  
support	
  "equivalent	
  to	
  
$44.5	
  million"	
  from	
  $25	
 ...
What	
  does	
  this	
  mean	
  in	
  pracLce?	
  	
  
•  DonaLons.	
  
•  In-­‐kind	
  consulLng.	
  
•  "Train	
  the	
 ...
Junior	
  Achievement	
  Young	
  Enterprise	
  	
  
	
  
•  Encouraging	
  student	
  
business.	
  
•  Award	
  and	
  d...
Big	
  on	
  donaLons,	
  short	
  on	
  exact	
  detail…	
  
•  Also	
  support	
  Save	
  the	
  
Children	
  and	
  Pla...
Employee	
  Engagement	
  Methods	
  
A	
  mulL-­‐channel	
  approach:	
  
	
  
•  Company	
  Intranet	
  
•  eLearning	
 ...
Accenture	
  Development	
  Partners	
  
"Corporate	
  Social	
  Enterprise"	
  	
  
•  Non	
  profit	
  model	
  helps	
  ...
Accenture	
  Development	
  Partners	
  
•  A	
  “key	
  vehicle”	
  for	
  driving	
  
sustainability	
  experience	
  
i...
Accenture	
  Development	
  Partners	
  
•  Seen	
  as	
  a	
  “game	
  changer”	
  
for	
  parLcipants	
  in	
  terms	
  ...
Accenture:	
  Conclusions/Acknowledged	
  areas	
  of	
  improvement	
  
•  Online	
  tool	
  to	
  streamline	
  
access	...
Employees	
  and	
  CR	
  
Case	
  Study:	
  Linklaters	
  	
  
Linklaters:	
  A	
  global	
  law	
  firm	
  
5000	
  employees/partners	
  
Four	
  Pronged	
  Approach:	
  
	
  	
  
1.  ...
Linklaters:	
  Progressive	
  for	
  their	
  sector?	
  	
  
•  Recognise	
  role/
responsibili/es	
  as	
  "trusted	
  
...
Embedding	
  CR?	
  
•  Partners	
  have	
  employee	
  
development	
  KPI's	
  built	
  into	
  
partner	
  performance	...
"Women's	
  Leadership	
  Programme"	
  	
  
•  Provides	
  learning,	
  coaching	
  
and	
  mentoring	
  to	
  24	
  
man...
Learn	
  for	
  Work	
  Programme	
  
•  18	
  offices:	
  "hundreds	
  of	
  
volunteers	
  enthusing"	
  9000	
  
young	
 ...
•  Learning	
  resources	
  on	
  
dealing	
  with	
  stress.	
  	
  
•  Recent	
  flexible	
  working	
  
pilot	
  success...
Linklaters:	
  State	
  of	
  the	
  art	
  on	
  employee	
  engagement?	
  	
  
•  They	
  are	
  clear	
  how	
  non	
 ...
Going	
  a	
  bit	
  beyond	
  the	
  usual…?	
  
•  Created	
  Italian	
  network	
  for	
  
women	
  in	
  business.	
  ...
Unfinished	
  measurement…	
  
•  Use	
  World	
  Environment	
  Day	
  
&	
  issue	
  of	
  sustainable	
  food	
  
sourci...
Much	
  more	
  to	
  be	
  done…	
  
•  Some	
  targets	
  weak:	
  
"collaborate	
  with	
  clients"	
  
on	
  Living	
 ...
Conclusions:	
  Linklaters	
  
•  Making	
  good	
  gradual	
  
progress.	
  
•  Overall	
  measurement	
  of	
  CR	
  
pa...
Lecture three -  Engaging Employees in CR and Sustainability
Lecture three -  Engaging Employees in CR and Sustainability
Lecture three -  Engaging Employees in CR and Sustainability
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Lecture three - Engaging Employees in CR and Sustainability

Presentation looking at why companies should engage employees in CSR and sustainable business, the benefits and how some leading companies do it, or try to.

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Lecture three - Engaging Employees in CR and Sustainability

  1. 1. Corporate  Responsibility  Module   Lecture  Three:  Employees       January  22st  2015   Lecturer:  Tobias  Webb   Tobiaswebb.blogspot.com    
  2. 2. Leadership:  The  big  picture     Simon  Sinek:  Why  good  leaders  make   you  feel  safe     Nadine  Exter,  Cranfield,  on  Employee   Engagement  in  Sustainability  
  3. 3. Some  useful  extra  reading     A  study  of  the  link  between   Performance  Management  and   Employee  Engagement  in  Western   mulLnaLonal  corporaLons  operaLng   across  India  and  China  
  4. 4. A  reminder….Employees  and  business   value:  Alex  Edmans   London  Business  School  and  Wharton  researcher  Alex  Edmans     Three  key  points  to  remember  about  the  latest  research  on  the   business  case  for  CSR:   1.            Employee  welfare  is  posi/vely  related  to  firm  value.  While   the  idea  that  “companies  do  beRer  if  their  workers  are  happier”   is  seemingly  intuiLve,  this  idea  is  contrary  to  tradiLonal  ways  of   managing  workers,  which  holds  that  a  dollar  paid  to  workers  is  a   dollar  taken  away  from  shareholders.  Human  resource   departments  are  not  just  cost  centres,  but  a  posiLve  source  of   value  creaLon.    
  5. 5. Employees  and  business  value:  Alex   Edmans   2.            CSR  can  improve  firm  value.  TradiLonal  thought  is  that   considering  other  stakeholders  (e.g.  employees,  customers,  the   environment)  is  at  the  expense  of  shareholders.  Thus,  socially   responsible  invesLng  should  underperform  tradiLonal  invesLng,  since   responsible  companies  are  distracted  from  the  boRom  line.  His  paper   suggests  that  there  need  be  no  tension  between  CSR  and  profit.   3.            The  market  does  not  fully  value  intangibles  such  as  stakeholder   capital.  Results  suggest  that  the  market  doesn’t  immediately  recognise   the  benefits  of  stakeholder  capital.  As  a  result,  we  need  to  move   beyond  evaluaLng  managers  according  to  short-­‐term  performance  to   encourage  them  to  consider  the  long-­‐run  health  of  their  firms  –  and   society.        
  6. 6. Academic  research  findings   Employee  Engagement  and  CSR:   TRANSACTIONAL,  RELATIONAL,  AND   DEVELOPMENTAL  APPROACHES     Philip  Mirvis  
  7. 7. Evident  from  surveys  says  (1)   •  Three  out  of  four  of  the  Millennial  GeneraLon  (born   1978-­‐1998)  want  to  work  for  a  company  that  “cares   about  how  it  impacts  and  contributes  to  society.”     •  Among  those  already  in  the  workforce,  nearly  seven  in   ten  say  that  they  are  aware  of  their  employer’s   commitment  to  social/environmental  causes.     •  65  percent  say  that  their  employer’s  social/ environmental  acLviLes  make  them  feel  loyal  to  their   company.  
  8. 8. Evident  from  surveys  says  (2)   Sirota  Survey  Intelligence,  of  1.6  million  employees  in   seventy  companies,  found  that:   •  Employees  who  approved  of  their  company’s   commitments  to  social  responsibility,  compared  to   those  who  did  not  approve  were:   •  Far  more  engaged  on  their  jobs.     •  More  apt  to  believe  that  their  employers  were   interested  in  their  well-­‐being.     •  They  also  had  more  favorable  percepLons  of  their   management’s  integrity  and  rated  their  companies  as   more  compeLLve,  too.  
  9. 9. Evident  from  surveys  says  (3)   •  A  2007  Towers  Perrin  survey  of  90,000  employees  in   18  countries  found  that  only  21  percent  reported  being   fully  engaged  on  the  job.     •  The  rest  were  either  simply  enrolled   (41%),disenchanted  (30%),  or  disconnected  (8%).     •  In  turn,  the  Gallup  Employee  Engagement  Index   reported  that,  on  average  as  of  2010,  some  33  percent   of  employees  were  engaged  by  their  companies,  49   percent  were  not  engaged,  and  18  percent  were   acLvely  disengaged.  
  10. 10.   Mirvis  (2012)  explores  three  different  ways  that   companies  design  and  manage  their  efforts:     1.  A  transac/onal  approach,  where  programs  are  undertaken   to  meet  the  needs  and  interests  of  those  employees  who   want  to  take  part  in  the  socially  responsible  efforts  of  a   company.   2.  A  rela/onal  approach,  where  an  organizaLon  and  its   employees  together  make  a  commitment  to  social   responsibility;  and   3.  A  developmental  approach,  where  a  company  aims  to  more   fully  acLvate  and  develop  its  employees  and  the  firm  to   produce  greater  value  for  business  and  society.  
  11. 11. So,  what’s  the  problem   •  On  the  surface,  engagement  in  CSR/CR/ Sustainability  makes  perfect  business  sense;     •  Studies  prove  it.   •  Surveys  prove  it.   •  So  why  don’t  more  companies  do  it  well?  
  12. 12. So  why  don’t  more  companies  engage   employees  well  on  CR/Sustainability?   •  Many  do:  But  they  tend  to  be  the  largest  ones,   such  as  PUMA,  Mars,  Alliance  Boots,  IBM  etc.   •  OR  they  are  smaller,  mission  driven  firms  such   as  Patagonia,  Interface,  etc.   •  There  are  lot  of  companies  that  are  not  in  the   global  leadership  group  nor  who  are  mission   driven  on  sustainability  and  CR.   •  Probably  tens  of  thousands  of  them  globally.  
  13. 13. These  companies  struggle  with   employee  engagement  in  CR  because:   •  They  think  it’s  expensive,  and  some  of  it  is   (supply  chain  changes,  product  changes  or   system  changes  generally).   •  They  don’t  tradiLonally  value  Human  Resources   as  strategic  so  don’t  hire  the  right  people  and   apply  the  right  resources.   •  They  don’t  really  believe  the  numbers,  and  think   a  more  tradiLonal  business  approach  is  best.   •  So  iniLaLves  like  this  in  a  company  like  this  are   sLll  rare.  
  14. 14. •  Company  grown  by  merger  since  2006.   •  From  Boots  to  Alliance  Boots  now  merged  with  Walgreens.   •  Company  in  Europe  has  appointed  40  (approx)  CSR  Champions.   •  Based  all  over  Europe.  Idea  is  they  are  there  to  catalyse  change  in   the  business.     •  Engaging  senior  execuLves,  other  employees  on  issues  from  energy   efficiency  to  social  innovaLon.     •  Board  members  have  personal  tasks/targets  on  CSR  and  sustainable   business.    
  15. 15. •  Employee  champions  also  promote  Alliance  Boots'  work  with  anL-­‐ cancer  network  EORTC.   •  Trained  by  interacLve  video,  presentaLons,  workshops.  Graded  on   a  pass/fail  basis  as  part  of  their  annual  assessments.     •  Company  also  communicates  their  targets,  policies,  and  work  using   company  intranet,  to  store  managers  and  other  employees.     •  Board  of  the  company  has  CSR  CommiRee  which  meets  quarterly   to  review  progress.     •  Aiming  to  roll  out  basic  video  training  on  "What  CSR  means  to  us"   across  the  whole  company.  
  16. 16. Employees  and  CR   Case  Study:  Accenture     Gib  Bulloch  from  Accenture  on  ADP  
  17. 17. Accenture:  “Human  Capital  Strategy”   •  246,000  employees.   •  35%  female  -­‐  17%  of  Senior   ExecuLves.     •  Big  picture  short  term   focus:  equipping  250,000   people  with  skills  to  get  a   job  or  build  a  business.   Claim  162,000  achieved  so   far.  
  18. 18. How?     •  Via:  cash  and  in  kind   support  "equivalent  to   $44.5  million"  from  $25   billion  turnover.   •  Target  of  $100m  by  2013.   •  Training  and  capacity   building  with  NGOs:   InternaLonal  FederaLon  of   Red  Cross/Red  Crescent.  
  19. 19. What  does  this  mean  in  pracLce?     •  DonaLons.   •  In-­‐kind  consulLng.   •  "Train  the  trainer"  Lme   donaLons  with  NGOs  to   support/empower   vulnerable  people.    
  20. 20. Junior  Achievement  Young  Enterprise       •  Encouraging  student   business.   •  Award  and  donaLons.   •  Encouraging  Workplace  and   Entrepreneurial  Skills.   •  18,000  students  by  2012,   esLmate  that  15%  will   become  entrepreneurs  by   2016-­‐18.  
  21. 21. Big  on  donaLons,  short  on  exact  detail…   •  Also  support  Save  the   Children  and  Plan   InternaLonal  with   donaLons.     •  Claim  59%  of  contribu/ons   are  in  kind    (unclear  on   detail).   •  Strategies  regionally  and   locally  adapted:  different   approaches  per  country   needs.  
  22. 22. Employee  Engagement  Methods   A  mulL-­‐channel  approach:     •  Company  Intranet   •  eLearning  programmes   •  Volunteering/skills   matching   •  Employee  surveys   •  Local/small  group  meeLngs   •  CR/Sustainability   Champions    
  23. 23. Accenture  Development  Partners   "Corporate  Social  Enterprise"     •  Non  profit  model  helps   employees  make  a   difference  in  development   via  paid  secondments  to   NGOs  around  the  world.   •  Two-­‐way  innova/on   model:  Ideas  for  clients  and   help  for  NGOs  etc.      
  24. 24. Accenture  Development  Partners   •  A  “key  vehicle”  for  driving   sustainability  experience   into  graduate  hires.   •  3-­‐12  month  physical   placement  on  a  project   with  an  NGO  or   development  partner  in  a   developing  economy.    
  25. 25. Accenture  Development  Partners   •  Seen  as  a  “game  changer”   for  parLcipants  in  terms  of   experience,  career,   benefits.   •  Rigourous  selecLon   process.     •  Accenture  offers  support,   project  evaluaLon  and  a   peer  community  to   parLcipants.   •  Valuable  for  clients  +   company.  
  26. 26. Accenture:  Conclusions/Acknowledged  areas  of  improvement   •  Online  tool  to  streamline   access  and  registraLon  for   community  events  and   track  volunteer  hours.   •  Even  a  technology  company   struggles  with   measurement  and  data   collec/on…  key  challenge.     •  A  good  example  of  current   beLer  prac/ce  in  services   industry…    
  27. 27. Employees  and  CR   Case  Study:  Linklaters    
  28. 28. Linklaters:  A  global  law  firm   5000  employees/partners   Four  Pronged  Approach:       1.  Trusted  Advisor   2.  Valued  Colleague   3.  Engaged  Professional     4.  Good  Neighbour    
  29. 29. Linklaters:  Progressive  for  their  sector?     •  Recognise  role/ responsibili/es  as  "trusted   advisor"  and  "voice  in  global   business”.   •  Global  Engagement  Survey   •  Includes  "global   responsibility  strategy"   from  2011.   •  Anonymous  partner   feedback  mechanism  for     employees.    
  30. 30. Embedding  CR?   •  Partners  have  employee   development  KPI's  built  into   partner  performance   expectaLons.   •  17%  female  partners:  "we   clearly  have  much  to  do”.   •  Clearly  realise  diversity  is  a   challenge:  Weaker  on   acLon…  
  31. 31. "Women's  Leadership  Programme"     •  Provides  learning,  coaching   and  mentoring  to  24   managing  associates  over   six  months.   •  Gited  comprehensive  data   protecLon  training  to  Save   the  Children.   •  Wellbeing  assistance   service.      
  32. 32. Learn  for  Work  Programme   •  18  offices:  "hundreds  of   volunteers  enthusing"  9000   young  people  about  world   of  work,  careers,  sharing   skills.         •  57  university  scholarships  in   China.      
  33. 33. •  Learning  resources  on   dealing  with  stress.     •  Recent  flexible  working   pilot  successful.       •  Sponsored  "Good   Governance  in   Interna/onal   Development"  conference   in  2012.  ObjecLve  of   helping  employees  assist  in   int.  development  outcomes.        
  34. 34. Linklaters:  State  of  the  art  on  employee  engagement?     •  They  are  clear  how  non   core  legal  work  maRers   given  global  markets,   challenges  &  socieLes.  E.g.   Charity  trustee  work,   research,  policy   commiRees,    teaching  etc.   •  Focus  on  skills  matched   volunteering  in   communiLes  and  with   chariLes.  
  35. 35. Going  a  bit  beyond  the  usual…?   •  Created  Italian  network  for   women  in  business.  400   members  in  two  years.   •  Support  legal  advice  clinics   in  Hong  Kong,  London,  Paris   and  Warsaw.   •  "CommunityMark"  award   from  BITC  in  2012.    
  36. 36. Unfinished  measurement…   •  Use  World  Environment  Day   &  issue  of  sustainable  food   sourcing  to  engage   colleagues.     •  25%  volunteering  rate  with   75%  skills  matching.  Further   incremental  targets  set.   •  Community  impact   reporLng  lacking  but  is  a   target.  
  37. 37. Much  more  to  be  done…   •  Some  targets  weak:   "collaborate  with  clients"   on  Living  Wage.   •  Retaining  talented  women.   •  Individual  partner  plans  to   embed  ethics  /  values  /   diversity  and  measurement   of  that.    
  38. 38. Conclusions:  Linklaters   •  Making  good  gradual   progress.   •  Overall  measurement  of  CR   parLcipaLon  a  significant   challenge.           •  No  visible  stakeholder   engagement  beyond   charity/volunteering/ events.     •  No  menLon  of  an  ethics   commiLee  with/without   external  viewpoints.   •  No  external  feedback   mechanism.   •  But  level  with,  or  ahead  of   peers  in  their  sector   globally.      

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