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Responsible Ireland Survey
  CEO Attitudes to Responsible Business


             October 2012
Research Approach



                        Research Methodology Overview



                    Telephone Survey August-September 2012



                             15-20 minute survey



                    100 Managing Directors/Chief Executives



                             Top 1000 Companies




2
Defining Corporate Responsibility




     The term ‘corporate responsibility’ was defined in the
           survey to describe the ethical, economic,
      environmental, and social impacts and issues that
     concern the private sector. There are many different
         terms used to capture this concept, including
    sustainability, corporate social responsibility, corporate
         citizenship, ESG (environmental, social, and
                     governance), and others.




3
A Changing Landscape



     Business in the Community’s Responsible Business Survey
                  has been running for three years.

         A number of key trends have emerged since 2010:

        1. CR commitment has remained consistently strong

      2. Measuring the impact of CR is increasingly important –
                       but still under-developed

      3. CR continues to play a significant role in staff loyalty,
          competitive performance and business success.




4
Dealing with impact of recession –
    still a top priority for CEOs


                     Recession                                                32%
                 Cost Pressures                                           29%               The rank order of key
       Competitive Pressures                                         24%                      challenges has
            Customer Loyalty
                                                                                             remained broadly
                                                                 21%
                                                                                           unchanged since 2010.
             Business Growth                                     21%
                 Weak Demand                         11%
      Lack of Credit or Capital                      11%
     Acquiring/keeping Talent                        11%
                                                                                     The challenge of
                  Labour Costs                    8%
                                                                                  accessing credit and/or
                  Energy Costs                  7%                                capital fell from 13% in
Government spending/stability                 5%                                    2010 to 5% in 2011
                    Regulations            2%


            Q.      What are the key challenges facing your organisation in the coming year?
5
CEOs feel a personal dedication to having a
responsible business agenda

          Not at all                                       Somewhat
         important,                                       unimportant
            0%                                                 , 4%                          The CR agenda remains
                                                  Neither/nor,
                                                      8%                                      important for the vast
                                                                                              majority of CEOs. The
           Extremely                                                                          degree to which CR is
           important,                                                                              embedded in
             44%                                                                             organisations rises from
                                         Somewhat                                            6.8 of Irish-owned to 7.6
                                         important,                                              of foreign owned
                                           44%                                                      businesses.



                    93% said CR agenda personally important in 2011

1                                                                                7.2                              10

    Q.    How important is driving the corporate responsibility agenda in your organisation to you personally?
6   Q.    How well embedded is CR across your organisation? Scale of 1-10
Most are prepared for legislative change
     - but not all

              Don't know,
                 6%


                                                                                            Larger companies, and
                                                                                              those selling mostly
                                                                                             outside of Ireland, are
                No, 36%                                                                    more advanced in terms
                                                                                           of reporting non-financial
                                                        Yes, 58%                                   measures.




                              27% of companies published a CR report in 2010

Q.       The EU is currently progressing legislation that would require non-financial reporting on social
         and environmental measures. Does your company currently report on these measures as part of its reporting cycle?


     7
Title of Person Responsible for CR Agenda



                       HR director/dept                                                                     16%

                                   CEO/MD                                                                 14%

         Senior management team                                                       9%

                     Head of CR/CSR                                                   9%

           Marketing director/dept                                                 8%

             Financial director/dept                                           7%

          Spread across divisions                                           6%



    Q.    What is the title of the person or department primarily in charge of CR in your organisation?


8
Embedding CR: KPIs & Interactions

        Don't
      know, 5%                                                              Finance was singled
                                                                            out at the department
                                                                             that interacts least
                                                                            with the CR strategy
                                                                            by 18% of CEOs, but
                                                                             the vast majority –
       No, 40%                                                               59% - said that all
                                       Yes, 55%                              departments were
                                                                              equally engaged.




       55% included CR in employee personal development in 2010


       Q.   Is your corporate responsibility strategy linked to staff or management KPIs?
       Q.   Which department interacts least with the CR agenda/strategy in your organisation?
9
Main CR Initiatives

                                                                                                        Foreign-owned
                                                                                                     businesses are more
                                                                                                        likely to have a
          69%
                                                                                                        community and
                                            56%                                                      environmental focus
                                                                                                     in the CR initiatives,
                                                                               47%                     while Irish-owned
                                                                                                      businesses have a
                                                                                                       relatively greater
                                                                                                       workplace focus.


                                                                                                                3%

     Community                       Workplace                        Environmental                         Marketplace
      focused                         focused                           focused                              focused
     Q.    What are the main corporate responsibility initiatives your organisation is undertaking right now?


10
Main CR Motivations

         Improve community links                                                                           36%

     Improve working environment                                                    20%
                                                                                                  Positive brand image
               Positive brand image                                              18%               is more important to
             Company sustainability                                         15%                         Irish-owned
                                                                                                     businesses, while
             Giving something back                                      12%                      company heritage and
                                                                                                     giving something
 Engrained in company heritage                                  7%                                    back are more
                                                                                                  important for foreign-
             Respond to legislation                            6%
                                                                                                    owned businesses.
     Reduce environmental impact                            4%


              Employee well-being/working environment ranked 4th in 2011


        Q.     What would you say are the main motivations for these type of initiatives and strategies?

11
Main CR Motivations

      “Sustainable business in the long run, plus cost return
            element and our customer expectations.”


     “To build trust and reputation, to reward loyal consumers        “The start of our vision is
      and ensure the health of the environment we work in.”               not to damage the
                                                                     environment but to improve
                                                                       the environment where
                                                                           we're involved.”
         “Were a local Irish based company and most of our
      workforce are employed from the local community and we
      feel were giving something back to the local community.”



                     “To be a responsible business and to be seen as responsible, given
                        we’re a high profile business, and secondly cost reductions.”


            “We want to be seen as a socially responsible company and to be
                         seen as more than a corporate entity.”

12
Measuring CR Impact

      Feedback from 'beneficiaries'                                                                    22%
                    Annual reports                                                             15%
     Customer loyalty/ brand image                                                 12%
        Staff engagement/ turnover                                                 12%
                          KPI targets                                              12%
             Audits and standards                                      8%
                   Cost of activities                       4%
                     New business                     2%
                          Don't know                                         10%
                     Don't measure                                                                   20%


              7 in 10 CEOs felt it important to measure CR impact in 2010

              Q.   How do you measure the impact of your corporate responsibility practices?

13
CR’s Business Impact

        Competitive Advantage?                                                      Positive Impact?
                                                                  Don't
                         Don't
                                                                know, 9%
                       know, 4%




                                                                   No, 20%
     No, 40%
                              Yes, 56%
                                                                                                     Yes, 71%




           Q.   In your opinion, do your organisation’s CR activities give you a competitive advantage?
           Q.   Do you feel corporate responsibility has a positive impact on your bottom line?
14
Competitive Advantages
     “Were often asked in prequalifying questionnaires for
      tenders if we operate sustainably and have disaster
                     pre-planning in place.”


                          “I think we would be seen as a good place to work for so, it helps
                                            us to attract the right people.”


                                                                         “We can show other
      “I would say being able to work with consumers on                 companies that we are
      initiatives. It would give us an advantage indirectly          dealing with the controls and
           through enhanced feedback and therefore                    regulations that we have in
                       consumer preference.”                         place to protect and enhance
                                                                             the company.”


     “If people want to work for the organisation it is because of our
       reputation due to our working practices . We offer excellent
      training programmes and are a fair and reputable company to
                                 work for.”

15
Measurable Returns


           Improved brand image                                                                          34%

      Getting/ keeping key staff                                                                 25%

      Better customer relations                                             13%
                                                                                               Again, brand image is
                      More business                                     11%                      a more important
                                                                                                 measure for Irish-
     Better community relations                                     9%                          owned businesses,
                                                                                                while foreign-owned
                      Reduces costs                              7%                            businesses are more
                                                                                                 likely to focus on
      Improves profits/ turnover                           4%
                                                                                               employee recruitment
                                                                                                   and retention.

      Q.     And how does this competitive advantage present itself? Base: those who gain advantage



16
Main Barriers to CR



     26%




                   15%
                                 13%
                                                                                                                                  12%
                                               10%
                                                              8%
                                                                             7%
                                                                                           5%             5%
                                                                                                                        4%


     Funding/   Time pressure      Staff      Internal   Resources           None         Lack of        Other         Economy   Don't know
      costs                     engagement understanding                                 evidence       priorities




 Q.        Overall, what do you consider to be the biggest barrier to corporate responsibility in your organisation?

17
Main Barriers
     “It's actually hard to answer that. I don't think we have any major barriers.
           Sometimes it's hard to deliver the work of good quality corporate
                relationship with somebody else; resources I suppose.”


                        “I suppose just all the other pressures of running a business; the costs
                              and all that. Just need to make sure we keep the Corporate
                                          Responsibility on the agenda as well.”


     “The lack of time we have to commit to these procedures
     due to the cut down of staff. We have to prioritise what we
               should take part in and what we don't.”



                                 “The current transformation and re-organisation, from our
                                    perspective the survival of the company is our main
                                   priority rather than the contributing to the community.”




18
Ireland’s Business Reputation
               At Home                                                                     Abroad
                                                                    Don't
     Don't
                                                                    know,
     know,
                                                                     14%
      12%




                                                                    No, 16%
     No, 30%
                                Yes, 58%                                                           Yes, 70%




       Fewer than 1 in 4 rated Ireland’s business reputation as good in 2010

         Q.    Do you think Ireland’s business reputation has improved in the past year? At home
19       Q.    Do you think Ireland’s business reputation has improved in the past year? Abroad
Conclusions



        Despite four years of recession in Ireland, CEOs in our
          survey are as committed as ever to the corporate
                        responsibility agenda.

      Ultimately CR is their way of embedding long term thinking
      in their organisations at a time of extraordinary short term
                      pressures and uncertainty.

        The continuing high level of commitment to CR is a key
         measure of the business community’s commitment to
      Ireland’s economic, social and environmental wellbeing in
                      for the foreseeable future.




20
For further Information




    These survey findings were announced during Responsible
    Business Week 2012. Responsible Business Week is run by
   Business in the Community Ireland, the network for responsible
    business. To find out more about the survey or about BITCI
                      please visit www.bitc.ie


                                                           #ResBizWeek
                                  21

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CEO Responsible Ireland survey 2012

  • 1. Responsible Ireland Survey CEO Attitudes to Responsible Business October 2012
  • 2. Research Approach Research Methodology Overview Telephone Survey August-September 2012 15-20 minute survey 100 Managing Directors/Chief Executives Top 1000 Companies 2
  • 3. Defining Corporate Responsibility The term ‘corporate responsibility’ was defined in the survey to describe the ethical, economic, environmental, and social impacts and issues that concern the private sector. There are many different terms used to capture this concept, including sustainability, corporate social responsibility, corporate citizenship, ESG (environmental, social, and governance), and others. 3
  • 4. A Changing Landscape Business in the Community’s Responsible Business Survey has been running for three years. A number of key trends have emerged since 2010: 1. CR commitment has remained consistently strong 2. Measuring the impact of CR is increasingly important – but still under-developed 3. CR continues to play a significant role in staff loyalty, competitive performance and business success. 4
  • 5. Dealing with impact of recession – still a top priority for CEOs Recession 32% Cost Pressures 29% The rank order of key Competitive Pressures 24% challenges has Customer Loyalty remained broadly 21% unchanged since 2010. Business Growth 21% Weak Demand 11% Lack of Credit or Capital 11% Acquiring/keeping Talent 11% The challenge of Labour Costs 8% accessing credit and/or Energy Costs 7% capital fell from 13% in Government spending/stability 5% 2010 to 5% in 2011 Regulations 2% Q. What are the key challenges facing your organisation in the coming year? 5
  • 6. CEOs feel a personal dedication to having a responsible business agenda Not at all Somewhat important, unimportant 0% , 4% The CR agenda remains Neither/nor, 8% important for the vast majority of CEOs. The Extremely degree to which CR is important, embedded in 44% organisations rises from Somewhat 6.8 of Irish-owned to 7.6 important, of foreign owned 44% businesses. 93% said CR agenda personally important in 2011 1 7.2 10 Q. How important is driving the corporate responsibility agenda in your organisation to you personally? 6 Q. How well embedded is CR across your organisation? Scale of 1-10
  • 7. Most are prepared for legislative change - but not all Don't know, 6% Larger companies, and those selling mostly outside of Ireland, are No, 36% more advanced in terms of reporting non-financial Yes, 58% measures. 27% of companies published a CR report in 2010 Q. The EU is currently progressing legislation that would require non-financial reporting on social and environmental measures. Does your company currently report on these measures as part of its reporting cycle? 7
  • 8. Title of Person Responsible for CR Agenda HR director/dept 16% CEO/MD 14% Senior management team 9% Head of CR/CSR 9% Marketing director/dept 8% Financial director/dept 7% Spread across divisions 6% Q. What is the title of the person or department primarily in charge of CR in your organisation? 8
  • 9. Embedding CR: KPIs & Interactions Don't know, 5% Finance was singled out at the department that interacts least with the CR strategy by 18% of CEOs, but the vast majority – No, 40% 59% - said that all Yes, 55% departments were equally engaged. 55% included CR in employee personal development in 2010 Q. Is your corporate responsibility strategy linked to staff or management KPIs? Q. Which department interacts least with the CR agenda/strategy in your organisation? 9
  • 10. Main CR Initiatives Foreign-owned businesses are more likely to have a 69% community and 56% environmental focus in the CR initiatives, 47% while Irish-owned businesses have a relatively greater workplace focus. 3% Community Workplace Environmental Marketplace focused focused focused focused Q. What are the main corporate responsibility initiatives your organisation is undertaking right now? 10
  • 11. Main CR Motivations Improve community links 36% Improve working environment 20% Positive brand image Positive brand image 18% is more important to Company sustainability 15% Irish-owned businesses, while Giving something back 12% company heritage and giving something Engrained in company heritage 7% back are more important for foreign- Respond to legislation 6% owned businesses. Reduce environmental impact 4% Employee well-being/working environment ranked 4th in 2011 Q. What would you say are the main motivations for these type of initiatives and strategies? 11
  • 12. Main CR Motivations “Sustainable business in the long run, plus cost return element and our customer expectations.” “To build trust and reputation, to reward loyal consumers “The start of our vision is and ensure the health of the environment we work in.” not to damage the environment but to improve the environment where we're involved.” “Were a local Irish based company and most of our workforce are employed from the local community and we feel were giving something back to the local community.” “To be a responsible business and to be seen as responsible, given we’re a high profile business, and secondly cost reductions.” “We want to be seen as a socially responsible company and to be seen as more than a corporate entity.” 12
  • 13. Measuring CR Impact Feedback from 'beneficiaries' 22% Annual reports 15% Customer loyalty/ brand image 12% Staff engagement/ turnover 12% KPI targets 12% Audits and standards 8% Cost of activities 4% New business 2% Don't know 10% Don't measure 20% 7 in 10 CEOs felt it important to measure CR impact in 2010 Q. How do you measure the impact of your corporate responsibility practices? 13
  • 14. CR’s Business Impact Competitive Advantage? Positive Impact? Don't Don't know, 9% know, 4% No, 20% No, 40% Yes, 56% Yes, 71% Q. In your opinion, do your organisation’s CR activities give you a competitive advantage? Q. Do you feel corporate responsibility has a positive impact on your bottom line? 14
  • 15. Competitive Advantages “Were often asked in prequalifying questionnaires for tenders if we operate sustainably and have disaster pre-planning in place.” “I think we would be seen as a good place to work for so, it helps us to attract the right people.” “We can show other “I would say being able to work with consumers on companies that we are initiatives. It would give us an advantage indirectly dealing with the controls and through enhanced feedback and therefore regulations that we have in consumer preference.” place to protect and enhance the company.” “If people want to work for the organisation it is because of our reputation due to our working practices . We offer excellent training programmes and are a fair and reputable company to work for.” 15
  • 16. Measurable Returns Improved brand image 34% Getting/ keeping key staff 25% Better customer relations 13% Again, brand image is More business 11% a more important measure for Irish- Better community relations 9% owned businesses, while foreign-owned Reduces costs 7% businesses are more likely to focus on Improves profits/ turnover 4% employee recruitment and retention. Q. And how does this competitive advantage present itself? Base: those who gain advantage 16
  • 17. Main Barriers to CR 26% 15% 13% 12% 10% 8% 7% 5% 5% 4% Funding/ Time pressure Staff Internal Resources None Lack of Other Economy Don't know costs engagement understanding evidence priorities Q. Overall, what do you consider to be the biggest barrier to corporate responsibility in your organisation? 17
  • 18. Main Barriers “It's actually hard to answer that. I don't think we have any major barriers. Sometimes it's hard to deliver the work of good quality corporate relationship with somebody else; resources I suppose.” “I suppose just all the other pressures of running a business; the costs and all that. Just need to make sure we keep the Corporate Responsibility on the agenda as well.” “The lack of time we have to commit to these procedures due to the cut down of staff. We have to prioritise what we should take part in and what we don't.” “The current transformation and re-organisation, from our perspective the survival of the company is our main priority rather than the contributing to the community.” 18
  • 19. Ireland’s Business Reputation At Home Abroad Don't Don't know, know, 14% 12% No, 16% No, 30% Yes, 58% Yes, 70% Fewer than 1 in 4 rated Ireland’s business reputation as good in 2010 Q. Do you think Ireland’s business reputation has improved in the past year? At home 19 Q. Do you think Ireland’s business reputation has improved in the past year? Abroad
  • 20. Conclusions Despite four years of recession in Ireland, CEOs in our survey are as committed as ever to the corporate responsibility agenda. Ultimately CR is their way of embedding long term thinking in their organisations at a time of extraordinary short term pressures and uncertainty. The continuing high level of commitment to CR is a key measure of the business community’s commitment to Ireland’s economic, social and environmental wellbeing in for the foreseeable future. 20
  • 21. For further Information These survey findings were announced during Responsible Business Week 2012. Responsible Business Week is run by Business in the Community Ireland, the network for responsible business. To find out more about the survey or about BITCI please visit www.bitc.ie #ResBizWeek 21