Social issues in business presentation
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Tobias Webb discusses social issues and sustainability in business. He outlines that Stakeholder Intelligence publishes the business magazine Ethicalcorp and reports on issues where environment and human rights intersect, such as the detention of Greenpeace activists in Russia. Webb then discusses forced child labor and steps companies can take to address human rights issues in their supply chains. He concludes that social and environmental issues are highly interlinked today and the UN Guiding Principles on Business and Human Rights provide a framework for companies.
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Social issues in business presentation
- 1. Social issues and Sustainability Tobias Webb, November 19 2013 Stakeholder Intelligence / Ethical CorporaDon Tobiaswebb.blogspot.com Tobias.Webb@stakeholderintel.com
- 2. Founded 2001 Business magazine Based in London, global network of writers 8000 arDcles on Ethicalcorp.com Serving 3000 companies Hosts Conferences Publishes Reports Interview hundreds of managers every year More at: www.ethicalcorp.com
- 3. Social issues, business and governance Sounds a bit academic and woolly, right? So let’s break it down to what it really means
- 6. Where environment meets human rights • 30 Greenpeace acDvists detained in the Russian ArcDc • Two aVempted to board a Gazprom plaWorm in protest • All arrested in a Commando raid • Charged with piracy, now hooliganism • Russia clearly trying to defend ArcDc exploraDon interests
- 8. Forced/bonded child labour • 168 million children engaged in child labour worldwide (Uzbek harvest every September) • Down from 215 million in 2008, and 245 million in 2000 • More than half are involved in hazardous work, considered one of the worst forms of child labour. Uzbekistan a key perpetrator
- 9. So what can a company do? • Clear policy of no tolerance of child labour in their operaDons and supply chain • Due diligence on children’s rights: UDlise the John Ruggie Framework • Partnerships and lobbying to help formalise the informal economy
- 10. Another key issue: Transparency
- 11. SoluDon? CollaboraDon • ExtracIve Industry Transparency IniIaIve set up in 2003 to combat Government-‐related corrupDon in the oil industry • “MulDstate corporate governance”. Countries, NGOs and large companies all involved • Set standard for disclosure of revenues/deals • A long, slow and bumpy road for signatories • Now broadened, four EU states + US to join
- 12. Why is deforestaDon also a social issue?
- 15. Other collaboraIon based groups that are driving change: • Kimberly Process: Conflict diamonds • Sustainable Apparel CoaliIon: Factory PolluDon & Social Standards • Word Business Council for Sustainable Development: Lobbying • World Resources InsItute: Research, policy, mapping • Carbon Disclosure Project: ReporDng and accounDng • Roundtable on Sustainable Palm Oil: Standards, social and environmental improvements • Global eSustainability IniIaIve: CollaboraDon for tech companies
- 16. When social issues go wrong • Nestle: AVacked by Greenpeace in 2010 Result: Social media reputaDon meltdown • Chiquita: Sued by families of Colombians killed by rebel groups due to ransom payments made Result: Huge reputaDon damage and legal costs
- 17. Coca-‐Cola: Mis-‐managed media and consumer percepDons over India water management in 2006 Result: BoycoV, brand damage, producDon halts and Indian management team lost their jobs
- 18. When social issues go very wrong
- 19. Rana Plaza April 2013 • Factory of sub-‐standard construcDon collapsed, despite warnings • 1129 people died, mostly young women • Brands audited working condiDons, not building structures • Lead to creaDon of Accord on Factory and Building Safety in Bangladesh
- 20. Rana Plaza, some posiDve results • Accord is a “five-‐year legally binding agreement between internaDonal labor organizaDons, non-‐governmental organizaDons, and retailers engaged in the texDle industry to maintain minimum safety standards in the Bangladesh texDle industry” • October 2013: 1,600 Bangladeshi factories covered, represenDng about a third of the Bangladeshi texDle industry
- 21. Nike: A posiDve story, eventually…
- 22. Nike: From ‘devil’ to leader! • Nike aVacked since 1990s over labour condiDons • IniDally defensive, gradually opens up to transparency • Following GAP in 2004, publishes supplier list in 2005 • Key player in beZer R&D and innovaIon for more sustainable products • Helps create the Sustainable Apparel CoaliDon • Donates R&D, leads brand collaboraDon
- 23. What about more localised social impact work? • Community volunteering • NGO partnerships • Matching employee donaDons / Dme • Going beyond compliance with employees • Mapping country footprints (Unilever/Oxfam/SAB Miller etc)
- 24. Conclusions • Many companies do good localised ‘social’ related work • A trend of economic/social value-‐add reporDng is emerging amongst some global firms • Global impacts & links not well understood unDl recently (e.g. Chinese factory polluDon)
- 25. Conclusions • Today, in many cases, social/environmental are highly linked, rather than separate • The Ruggie Principles now provides companies, since 2011, with a framework for managing human rights impacts • Sustainability governance is only a decade old, but the debates and acDons (Rana Plaza, EITI) are acceleraDng • We have only just begun!