Corporate And Social Responsibility
 Strategies In The ITC Downturn

    Martin Hingley, Managing Director, ITCandor Limited
           Contact: Martin_Hingley@Yahoo.co.uk
Agenda – CSR In The ITC
                 Downturn


             • Defining Corporate and Social Responsibility (CSR)
             • Who Owns the Strategy?
             • Classifying Four Types of Stakeholder
             • Typical Activities in 2009
             • Beyond Green IT And Recycling – The Arrival Of The Disposal
               Channel
             • Why is CSR Important in the Downturn?
             • Conclusions – How to Modify Your CSR Strategy




ITC Analyst Report                                                           2
Defining ‘Corporate and Social
                 Responsibility’


             • “An organization’s strategy to behave ethically and contribute to
               ecological and economic development – directed at specific types
               of stakeholders, who fall into classes of clients, staff, communities
               and the environment”

             • Non-financial elements a company’s strategy
             • Beyond mere compliance legal requirements of national and
               international legislation
             • Doing something extra to help specific stakeholders
             • Often linked to sustainability and environmental concerns




ITC Analyst Report                         Source:/Notes:
                                                                                       3
Own Owns The CSR Strategy?




       •   CSR is often associated with the founders of an Organisation (e.g. ‘The
           HP Way’)
       •   Typically a Board-Level strategy
       •   Different departments take responsibility by Stakeholder
            – HR for Staff and Communities
            – Manufacturing for Staff and Contract workers
            – Customer support for Clients
            – Manufacturing and Logistics for The Environment
       •   The Company’s CEO is usually ultimately responsible




ITC Analyst Report                                                                   4
Four Types Of CSR Stakeholder

                                                 All CSR Activities are
                         4. The Environment      Designed to Meet the
                                                 Needs of Four Types
                          3. Communities         of Stakeholder:

                             2. Clients          1.Staff – the
                                                 company’s employees
                              1. Staff           or contractors (not
                                                 directors or owners)
                              Owners             2.Clients –
                                                 consumers or
                               The               organisations buying
                             Company             the company’s
                                                 offerings
                            Shareholders         3.Communities –
                                                 locations or
                                                 underprivileged
                                                 groups (sexual, ethnic
                                                 or class)
                                                 4.The Environment
                                                 – the biosphere
                                                 (human, animal and
                                                 plant)

ITC Analyst Report                                                        5
Typical 2009 CSR Activities

                                        Carbon
                                         Carbon      Recycling
                                        Trading
                                         Trading
                       4. The
                                                                      2. Clients
                     Environment
                                       Alternative
    Reverse                              Energy
    Logistics                                          Carbon
                                         Usage
                Supply                                  Audit
                Chain                                                  Power
                Ethics       NGO                                      Efficiency
                          Engagement                                                Family
      Community                                                                    Alignment
        Project                     Economic
                                   Development            Diversity
                                                        Programmes


                 3. Communities                                       1. Staff

                                    Charity             Minority
                                   Donation            Employment                    Flexible
       Philanthropy                                                                  Working
                                                                                      Hours

ITC Analyst Report                                                                              6
Beyond Green IT And Recycling – The Arrival
                 Of The Disposal Channel


                                               Sell
                            Distribution                                    End Of Life
                                                        1st   Customer                        Recycler



                           Ship                               2nd Customer
                                               Resell
                                                                                    Re-
                     Finished Goods                                                 purpose
                                                                  Nth Customer
                      Manufacturer




                                  Assemble                                     Recover               Scrap


                 Component
                Manufacturer Component
                     N       Manufacturer                         Raw           Recycled
                                  A                                                            Landfill
                                                                 Material       Material
                       Component
                      Manufacturer         Process
                           B



ITC Analyst Report                                                                                           7
Vendors are Currently Immersed in CSR
                 Activity



             • Microsoft – The Gates Foundation curing AIDS/HIV in Africa, Unlimited
               Potential for Emerging Countries
             • IBM – IGF Bridge Finance for ARRA and other Government Re-
               Generation Projects, Ghanese IT/Business Professional development,
               with the Feminist Press to encourage more women in Science, with an
               EU consortium on memory loss in aging populations, the ‘Nutritious
               Rice Project’, with IBEC for rural American broadband access
             • HP – Privacy and Data Protection, Supplier Code of Conduct, Global
               Citizenship report




ITC Analyst Report                                                                     8
Why is CSR Important in the ITC Downturn?


                 • Governments are investing in alternative energy – Smart Grids, solar,
                   wind, wave and nuclear
                 • ‘Cash for clunkers’ to stimulate manufacturing
                 • Train and road transformation projects
                 • News ways to handle unemployment needed
                 • Stronger EU legislation- Reduction Of Hazardous Substances (ROHS)
                   and Waste Electrical and Electronic Products (WEEE) for instance
                 • Nordic Swan, Green Angel and Energy Star Certifications
                 • The US Obama Presidency is catching up on environmental activities
                 • UK politician expense claim scandal demonstrates the power of
                   ‘downturn puritanism’




ITC Analyst Report                                                                         9
Conclusions – How to Modify Your CSR
                 Strategy



       •   Define your chosen stakeholders
       •   Look to introduce Unique (not ‘Best’) Practices to differentiate
       •   Keep CSR activities ahead of legislation
       •   Don’t treat CSR like a normal product or service
       •   Link CSR activities to future client groups
       •   Contact – Martin_Hingley@yahoo.co.uk (+447791104555)




ITC Analyst Report                                                            10

Corporate And Social Responsibility In The ITC Downturn

  • 1.
    Corporate And SocialResponsibility Strategies In The ITC Downturn Martin Hingley, Managing Director, ITCandor Limited Contact: Martin_Hingley@Yahoo.co.uk
  • 2.
    Agenda – CSRIn The ITC Downturn • Defining Corporate and Social Responsibility (CSR) • Who Owns the Strategy? • Classifying Four Types of Stakeholder • Typical Activities in 2009 • Beyond Green IT And Recycling – The Arrival Of The Disposal Channel • Why is CSR Important in the Downturn? • Conclusions – How to Modify Your CSR Strategy ITC Analyst Report 2
  • 3.
    Defining ‘Corporate andSocial Responsibility’ • “An organization’s strategy to behave ethically and contribute to ecological and economic development – directed at specific types of stakeholders, who fall into classes of clients, staff, communities and the environment” • Non-financial elements a company’s strategy • Beyond mere compliance legal requirements of national and international legislation • Doing something extra to help specific stakeholders • Often linked to sustainability and environmental concerns ITC Analyst Report Source:/Notes: 3
  • 4.
    Own Owns TheCSR Strategy? • CSR is often associated with the founders of an Organisation (e.g. ‘The HP Way’) • Typically a Board-Level strategy • Different departments take responsibility by Stakeholder – HR for Staff and Communities – Manufacturing for Staff and Contract workers – Customer support for Clients – Manufacturing and Logistics for The Environment • The Company’s CEO is usually ultimately responsible ITC Analyst Report 4
  • 5.
    Four Types OfCSR Stakeholder All CSR Activities are 4. The Environment Designed to Meet the Needs of Four Types 3. Communities of Stakeholder: 2. Clients 1.Staff – the company’s employees 1. Staff or contractors (not directors or owners) Owners 2.Clients – consumers or The organisations buying Company the company’s offerings Shareholders 3.Communities – locations or underprivileged groups (sexual, ethnic or class) 4.The Environment – the biosphere (human, animal and plant) ITC Analyst Report 5
  • 6.
    Typical 2009 CSRActivities Carbon Carbon Recycling Trading Trading 4. The 2. Clients Environment Alternative Reverse Energy Logistics Carbon Usage Supply Audit Chain Power Ethics NGO Efficiency Engagement Family Community Alignment Project Economic Development Diversity Programmes 3. Communities 1. Staff Charity Minority Donation Employment Flexible Philanthropy Working Hours ITC Analyst Report 6
  • 7.
    Beyond Green ITAnd Recycling – The Arrival Of The Disposal Channel Sell Distribution End Of Life 1st Customer Recycler Ship 2nd Customer Resell Re- Finished Goods purpose Nth Customer Manufacturer Assemble Recover Scrap Component Manufacturer Component N Manufacturer Raw Recycled A Landfill Material Material Component Manufacturer Process B ITC Analyst Report 7
  • 8.
    Vendors are CurrentlyImmersed in CSR Activity • Microsoft – The Gates Foundation curing AIDS/HIV in Africa, Unlimited Potential for Emerging Countries • IBM – IGF Bridge Finance for ARRA and other Government Re- Generation Projects, Ghanese IT/Business Professional development, with the Feminist Press to encourage more women in Science, with an EU consortium on memory loss in aging populations, the ‘Nutritious Rice Project’, with IBEC for rural American broadband access • HP – Privacy and Data Protection, Supplier Code of Conduct, Global Citizenship report ITC Analyst Report 8
  • 9.
    Why is CSRImportant in the ITC Downturn? • Governments are investing in alternative energy – Smart Grids, solar, wind, wave and nuclear • ‘Cash for clunkers’ to stimulate manufacturing • Train and road transformation projects • News ways to handle unemployment needed • Stronger EU legislation- Reduction Of Hazardous Substances (ROHS) and Waste Electrical and Electronic Products (WEEE) for instance • Nordic Swan, Green Angel and Energy Star Certifications • The US Obama Presidency is catching up on environmental activities • UK politician expense claim scandal demonstrates the power of ‘downturn puritanism’ ITC Analyst Report 9
  • 10.
    Conclusions – Howto Modify Your CSR Strategy • Define your chosen stakeholders • Look to introduce Unique (not ‘Best’) Practices to differentiate • Keep CSR activities ahead of legislation • Don’t treat CSR like a normal product or service • Link CSR activities to future client groups • Contact – Martin_Hingley@yahoo.co.uk (+447791104555) ITC Analyst Report 10