The sustainability and compliance agenda is constantly moving forward. Companies are finding new innovative ways of addressing sustainability challenges. New compliance issues emerge. Stakeholders voice a wide range of demands and requirements. In this volume of Sustainability & Compliance Trends, we highlight five trends that focus on creating value either through new innovative approaches or through understanding how
to navigate in an increasingly complex compliance agenda.
Enjoy!
I recently gave this presentaiton at Babson Executive Education\'s Innovation 2.0 Summit. There is some interesting data from the audience on practices in measuring innovation inside.
Enterprise Relationships are fundamental to business
success. The research - conducted with Cambridge University Business School - shows how relationships lead to long
term mutual advantage, in which value is largely created by
the quality of interaction between the parties. The overall
performance of a company will therefore depend on how
well it is able to manage its own Enterprise Relationships.
Furthermore the White Paper starts to explore how digital communication can deliver value into these relationships.
Is customer centricity just another management fad? Globally, companies are investing more than USD 10 billion annually to drive customer centric transformations, yet four in five are left unsatisfied.
201204 Nolan QNL: Life and Annuity Industry OutlookSteven Callahan
An abbreviated version of the industry forecast for 2012 pointing out the highlights of key issues, strategies, areas needing focus, and likely structural changes.
The New Process Genome: Recoding Business Process Work to Thrive in the Moder...Cognizant
Work processes, including those in the banking, healthcare and insurance industries, are undergoing significant change -- making it hard for executives to maintain the status quo. Best practices and new research insights emphasize the new role of shared services,and how businesses can begin to re-code their business process architecutres to reduce costs, drive innovation and successfully compete in the digital economy.
I recently gave this presentaiton at Babson Executive Education\'s Innovation 2.0 Summit. There is some interesting data from the audience on practices in measuring innovation inside.
Enterprise Relationships are fundamental to business
success. The research - conducted with Cambridge University Business School - shows how relationships lead to long
term mutual advantage, in which value is largely created by
the quality of interaction between the parties. The overall
performance of a company will therefore depend on how
well it is able to manage its own Enterprise Relationships.
Furthermore the White Paper starts to explore how digital communication can deliver value into these relationships.
Is customer centricity just another management fad? Globally, companies are investing more than USD 10 billion annually to drive customer centric transformations, yet four in five are left unsatisfied.
201204 Nolan QNL: Life and Annuity Industry OutlookSteven Callahan
An abbreviated version of the industry forecast for 2012 pointing out the highlights of key issues, strategies, areas needing focus, and likely structural changes.
The New Process Genome: Recoding Business Process Work to Thrive in the Moder...Cognizant
Work processes, including those in the banking, healthcare and insurance industries, are undergoing significant change -- making it hard for executives to maintain the status quo. Best practices and new research insights emphasize the new role of shared services,and how businesses can begin to re-code their business process architecutres to reduce costs, drive innovation and successfully compete in the digital economy.
GT Events & Program Guide: ForwardThinking August/September 2017Grant Thornton LLP
ForwardThinking is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Join Fred Kocher, the host of WMUR's "New Hampshire's Business" and President of the New Hampshire High Tech Council as he discusses the outlook for businesses in 2011 with Hampshire First Bank (hampshirefirst.com) executive Jay Dinkel. 111 businesses from 27 classifications answered questions about the state of the local and national economy and other issues impacting business. Learn more! (Webinar originally recorded April 14, 2011).
The word ESG or Environmental, Social, and Governance Metrics are used to describe the environmental, social, and governance performance of a company. This can be done in many ways- via surveys that are sent to members of the public who then weigh in on what they believe are the most important factors for measuring environmental impacts or by performing research into how companies rank when it comes to key issues. Some people would argue that this is not necessary while others would argue that if you want your business to succeed then these metrics should be taken into consideration.
#KPMG Manufacturing outlook 2014. #SCM transparency, cost insight and supply chain integration is main focus for global manufacturers. Development of S&OP will help to achieve these goals.
Mergers and acquisitions (M&A) are a critical enabler of strategy for many companies seeking to grow market share, acquire new technologies, or capture the advantages of scale. Unfortunately, M&A are a risky proposition, with more than half failing to create the value promised. Evidence suggests that the cost of complexity added by M&A frequently out paces any value created. This presentation delivered by Chris Seifert at the Chief Strategy Officer Conference, examines how a select few companies have been able to defy conventional wisdom, turning M&A into a strategic weapon, by systematically eliminating non-value added complexity in their day-to-day operations. - See more at: http://theinnovationenterprise.com/summits/chief-strategy-officer-summit-new-york-2014/schedule#sthash.0cmEWQTm.dpuf
GT Events & Program Guide: ForwardThinking October/November 2017Grant Thornton LLP
ForwardThinking is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
In the second of a series of reports commissioned by HSBC, we consider the extent to which businesses are incorporating responsibility in their business operations.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Standardization has existed for over 100 years, and the numbers of standards continues to grow. Currently around 27,000
national and international standards are in the BSI portfolio and used daily by millions of enterprises worldwide. In the UK alone,
standards users range from large organizations to small- and medium-sized companies, from public and private sector alike.
GT Events & Program Guide: ForwardThinking August/September 2017Grant Thornton LLP
ForwardThinking is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Join Fred Kocher, the host of WMUR's "New Hampshire's Business" and President of the New Hampshire High Tech Council as he discusses the outlook for businesses in 2011 with Hampshire First Bank (hampshirefirst.com) executive Jay Dinkel. 111 businesses from 27 classifications answered questions about the state of the local and national economy and other issues impacting business. Learn more! (Webinar originally recorded April 14, 2011).
The word ESG or Environmental, Social, and Governance Metrics are used to describe the environmental, social, and governance performance of a company. This can be done in many ways- via surveys that are sent to members of the public who then weigh in on what they believe are the most important factors for measuring environmental impacts or by performing research into how companies rank when it comes to key issues. Some people would argue that this is not necessary while others would argue that if you want your business to succeed then these metrics should be taken into consideration.
#KPMG Manufacturing outlook 2014. #SCM transparency, cost insight and supply chain integration is main focus for global manufacturers. Development of S&OP will help to achieve these goals.
Mergers and acquisitions (M&A) are a critical enabler of strategy for many companies seeking to grow market share, acquire new technologies, or capture the advantages of scale. Unfortunately, M&A are a risky proposition, with more than half failing to create the value promised. Evidence suggests that the cost of complexity added by M&A frequently out paces any value created. This presentation delivered by Chris Seifert at the Chief Strategy Officer Conference, examines how a select few companies have been able to defy conventional wisdom, turning M&A into a strategic weapon, by systematically eliminating non-value added complexity in their day-to-day operations. - See more at: http://theinnovationenterprise.com/summits/chief-strategy-officer-summit-new-york-2014/schedule#sthash.0cmEWQTm.dpuf
GT Events & Program Guide: ForwardThinking October/November 2017Grant Thornton LLP
ForwardThinking is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
In the second of a series of reports commissioned by HSBC, we consider the extent to which businesses are incorporating responsibility in their business operations.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
GT Events and Program Guide is a look ahead at the latest knowledge and insights available from Grant Thornton LLP. It includes a collection of our research, thought leadership and a schedule of upcoming webcasts and events.
Standardization has existed for over 100 years, and the numbers of standards continues to grow. Currently around 27,000
national and international standards are in the BSI portfolio and used daily by millions of enterprises worldwide. In the UK alone,
standards users range from large organizations to small- and medium-sized companies, from public and private sector alike.
Aligning ESG with Corporate Strategy to Gain a Competitive Advantage - SG Ana...SG Analytics
From the sudden surge in the popularity of green finance to the pervasive impact of ESG factors on consumers and their purchasing decisions
Visit: https://us.sganalytics.com/blog/aligning-esg-with-corporate-strategy-to-gain-a-competitive-advantage/
Strategic management contribute to :
develop competitive advances and reveals implementation practices and mechanisms of control
Allow a long-term alignment and a progressive environment strategy
Lead to globalization and strategic flexibility
Lite version of presentation by Iain willox of action planning approach that will be adopted in COPIE 2 presented at Cologne meeting on 5 and 6 march 09
Achieving Sustainability and Responsibility through Stakeholder Engagement: T...Flevy.com Best Practices
Original article from the Flevy business blog can be found here:
http://flevy.com/blog/achieving-sustainability-and-responsibility-through-stakeholder-engagement-the-financial-services-case/
The Increasing Role of Compliance
Finance plays a critical role for society at large, serving individuals, families, businesses, governments, and civic institutions. The Financial Services industry performs indispensable functions such as enabling saving and investment, providing protection from risks and supporting the creation of new jobs and enterprises. It is critical that the industry operates to provide these functions for society in a stable, sustainable way.
Experiences of recent years have revealed a range of vulnerabilities of the financial system. Consequences of its functioning have been extremely costly to society and resulted in a significant loss of public trust and confidence in the financial system. An enormous, multi-year effort by policy-makers and financial institutions is underway to make the financial system more resilient and enable it to sustainably contribute to economic growth and prosperity. The regulatory community has strengthened oversight and prudential requirements as part of a global effort to overhaul and improve financial regulation.
Today, the Financial Services industry is subject to multiple and complex legal and regulatory compliance requirements that span international boundaries. Accenture’s Compliance Risk Study indicates that investment in the compliance function will continue to increase. Compliance officers will need to adapt their programs to navigate the disruption that the financial services industry is going trough. In fact the industry is facing disruptive forces in many forms, from changing customer behavior and the rise of digital technologies to a shifting regulatory landscape. New risks are emerging as well, many fueled by increasing challenges of fighting cyber-crime and others from managing more complex operations in today’s world. In order to respond to these challenges among others, the industry is taking a range of steps to change the way it does business. Improvements have also been made to business practices such as training, sales and product approvals, with increased penalties for breaching standards.
Presentation given to the Association of Community Practitioners in Bucharest, Romania, on September 12 2011. The presentation covers business management issues relating to sustainability, the business case for ethics, management trends, upcoming and potential EU legislation around reporting, and how companies are specifically engaging in embedding sustainability in to their operations.
Frank Mantero, director of corporate citizenship at General Electric, discussed corporate social responsibility (CSR) and it's role in PR and driving business growth.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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2. 2 |
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8
12
16
20
24
28
Trend #1
Are you measuring your socio-economic impact?
Trend #2
Seeking Value through Responsible Procurement
Market Perspectives from Finland
Trend #3
Corporate Humanitarian Partnerships: the real match
Market Perspectives from Iceland
Trend #4
Navigating the murky waters of corruption
Trend #5
How to safeguard the human rights programme
of your business
3. | 3
Publisher: Deloitte
Circulation: 400 copies
Editorial staff:
Anne Mette Christiansen
Helena Barton
Kristin Parello-Plesner
Mari Espelid Kristensen
Riikka Poukka
Sami Koskela
Sif Einarsdottir
Graphical design: O&O
Print: Rosenberg Bogtryk A/S
The sustainability and compliance agenda is constantly moving forward. Companies are
finding new innovative ways of addressing sustainability challenges. New compliance
issues emerge. Stakeholders voice a wide range of demands and requirements. In this
volume of Sustainability & Compliance Trends, we highlight five trends that focus on
creating value either through new innovative approaches or through understanding how
to navigate in an increasingly complex compliance agenda.
Many companies are grappling with how to measure and demonstrate that they are
creating ‘Shared Value’. The first trend suggests how to document, understand and
communicate impact by using socio-economic impact assessment – an approach that is
gaining ground among companies as a gauge of value creation for investors, customers,
governments and other stakeholders. Another way of creating value and engaging key
stakeholders is through partnerships. By creating strategic partnerships with civil society
organizations, companies that do it well gain great benefits in customer and employee
engagement.
Navigating compliance issues is demanding evermore attention from management and
compliance functions alike. In this volume, we therefore also focus on how to create
value by managing and mitigating risk when it comes to labour rights, human rights and
corruption.
In this edition, we take a Nordic perspective, reflecting our integration across the Nordic
region when it comes to deliver sustainability and compliance services. Therefore, we
have also added two market perspectives from Finland and Iceland respectively.
Enjoy!
Anne Mette Christiansen
Creating value through
innovative approaches
Sustainability &
Compliance Trends
4. 4 |
Trend #1:
Are you measuring your socio-economic
impact? You should.
The practice of measuring the socio-economic impact of business is about to become a powerful tool
for tackling global challenges. Proving a positive socio-economic impact holds great promise for busi-
ness profits. But it is also important for helping societies transition towards more sustainable eco-
nomic development that benefits the communities where companies operate.
5. | 5
The mutual dependency of business, government
and civil society becomes increasingly clear as social
and environmental challenges grow, whether locally
or globally. Many companies create significant socio-
economic impact in the communities where they operate,
and they depend on authorities to create a business-
enabling environment.
There are numerous opportunities for those businesses
who can document their positive socio-economic impacts.
Measuring socio-economic impact is a powerful way to
show policy-makers how business activities contribute to
public policy goals and local development. But it can also
help companies achieve a better understanding of the
impacts of their products and services in local markets,
including the needs, aspirations, resources, and incentives
of their customers.
Paired with a company’s financial returns, measuring
socio-economic impact is likely to raise investor interest,
but only few companies know how to measure their
impacts and capitalize on the results.
Going too narrow and too shallow misses the mark.
At a simple level, companies generate socio-economic
impacts in two ways: Initially, when they produce their
products and services, and then when their products and
services are put into use. However, traditional impact
studies are heavily focused on the first part, which does
not provide the full picture of the company’s potential.
Likewise, when discussing their impacts, companies tend
to be too narrow in their assessment by restricting the
focus to employment impact or tax payments only. In
so doing, companies risk underestimating their tangible
positive contribution. Also if the company fails to
create accurate documentation about its impact, it risks
jeopardizing its reputation, eroding stakeholder trust and
eventually suffering on the bottom line.
Documentation of socio-economic impact and shared
value creation is all about quantifying the impacts
from both production and from the use of products
and services. In this way, you get a more complete
understanding of a company’s impact, even though the
individual study may seek to address a specific challenge,
such as the impact of a new decision, a new product or a
single event.
Measuring socio-economic
impact is a powerful way
to show policy-makers
how business activities
contribute to public
policy goals and local
development
By Thomas
Westergaard-Kabelmann
Thomas Westergaard-
Kabelmann is specialized
in socio-economic impact
assessments of corporate
performance, documenting
how companies’
performances can and
do create net benefits for
economies and societies.
During his consulting carrier,
he has specialized in impact
assessments, feasibility
studies, policy evaluations
and audits of policies
and investments directed
towards trade, markets and
international transport.
6. 6 |
Where to start?
There are many ways to measure socio-economic
impact. The right methodology depends on the sector
and the business. However, a socio-economic impact
study should ideally be based on a comprehensive cost-
benefit framework scoped on key business matters: for
example, how production takes place, which technological
specifications apply, what the upstream / downstream
efficiencies are, and how products and services affect
primary stakeholders.
Documenting companies’ socio-economic impact
can help improve the business-enabling environment,
maintain a license to operate, accelerate product and
service innovation, strengthen value chains and enhance
employee and consumer loyalty. It can generate a strong
connectivity to the socio-economic challenges facing local
markets where you operate. Being part of the solution is
simply the best argument for staying in business.
Set boundaries: Develop a cost benefit framework scoped on key business matters. Don’t cherry pick. Companies
who only pick the low-hanging fruits and try to avoid harder issues risk that their analysis will backfire. Local problems
may not all be completely addressed by a company; be transparent about the limits of your company’s impact.1
Measure direct and indirect impacts: Take a holistic view of your impact and go beyond the traditional input-
output analysis by integrating the socio-economic measurements into business performance management and
reporting. The assessment will help clarify if the company’s products and services provide any additionality to industry
peers, which in turn create stronger arguments for value-added price.
2
Assess contribution to development: Find new business opportunities through a better understanding of products
and service impacts, in addition to financial performance impact measurements. Use the most relevant indicators to
measure socio-economic performance in operating markets.3
Prioritize management response: Decide which internal stakeholders should take responsibility for measuring your
company’s socio-economic impact. Ideally, and as a minimum, engage the sustainability / CSR department, investor
relations and CFO.4
Communicate documented results to stakeholders: If you want to conduct an impact assessment, you must
be ready to address the critical issues. If you know you have a negative impact, measuring socio-economic impact will
enable you to better manage critical issues. As a company, you stand behind your data, and there is always a risk that
third parties challenge the accuracy of your impact assessment. If needed, acknowledge that there might be blind
spots left exposed. Engage in dialogue with those who challenge your assessment.
5
Five steps to accelerate socio-economic impact measurement in your business
7. | 7
Deloitte and QBIS Consulting
have joined forces to bring
this new understanding
to companies. We help
companies scope the study
of their social, environmental
and economic impact,
provide accurate data that
can serve as decision making
criteria and form part of
strategy design by creating
a clear link from analytical
benefits to general value
drivers. Finally we assist in
translating the key findings
into compelling stakeholder
communication material.
8. 8 |
Trend #2:
Seeking Value through
Responsible Procurement
Mention ‘supply chain risk’ and many think of overworked and underpaid workers toiling away in
factories far away, unable to claim their basic labour rights. But the risk of poor working conditions
among suppliers also exists right here in the Nordic countries.
9. | 9
As part of securing a resilient and reliable supply
chain, Responsible Procurement is gaining ground in
both the private and the public sector. The objective
is to create long-lasting relationships with suppliers
who – by adhering to local or international standards
for responsible business practice – provide goods and
services in a cost-efficient way that minimises the risk of
legal violations, disruptions to sourcing and delivery, and
damage to the buyer’s image and reputation.
Current surveyed practices of 133 large multinational
companies across 24 countries point towards a 40 %
increase in responsible procurement activity over the
last ten years. And 93 % of procurement organisations
recognise sustainable procurement as a critical or
important objective for their business, with many seeking
to integrate CSR / responsible business criteria right from
the start of the sourcing process. The benefits currently
being measured are cost reduction (48%), minimized
supplier risk (41%) and environmental benefits (35%)1
.
Ensuring responsible and compliant behaviour among
suppliers is becoming increasingly pressing close to
home in the Nordic countries. Labour rights issues,
terms of employment and wages are frequently raised
in the media, by concerned politicians, unions, local
citizens and others; they seek to uphold Nordic society’s
comprehensive and high labour standards, which at times
appear to be under threat from suppliers who directly or
indirectly may undermine such standards.
In recent years, the construction industry in particular has
been subject to criticism for a range of labour practices.
This means that whenever a major construction project is
initiated without sufficient due diligence of the suppliers,
there is a risk of engaging a supplier who operates in
breach of legal and/or other requirements, sometimes
knowingly, sometimes not. Either way, the consequences
can become costly for everyone involved, when a
construction project is put on hold due to a labour dispute,
avoidable accidents or other disruption to operations.
Public and private sector organisations increasingly
include a separate clause in their procurement contracts
which states that suppliers must comply with e.g. specific
conventions of the International Labour Organisation, the
principles of the UN Global Compact, or an applicable
local collective bargaining agreement.
Unfortunately, such a clause does not in itself provide
much assurance that the supplier will follow the
requirements. The reference may be too vague. Or not
fully understood.
Few suppliers will look up the specifics of an ILO
convention, let alone know how it translates into actual
requirements for them to ensure certain labour conditions
and maintain supporting documentation. Collective
bargaining agreements in the Nordic countries usually
comprise a long list of different terms and conditions for
which the supplier’s management team is responsible.
Sometimes even in a language foreign to the supplier.
While some suppliers may deliberately seek to evade their
legal and contractual obligations to uphold the labour
rights of their workers, others are simply not prepared;
By Helena Barton
Helena Barton has more
than 15 years’ experience
in global sustainability and
is the Chairman of the
Global Reporting Initiative’s
Stakeholder Council and
member of the ACCA Global
Forum for Sustainability.
She specialises in risk
management, reporting
and assurance. Helena
conducts supply chain audits
and advises the public and
private sector on responsible
procurement.
1) HEC/EcoVadis 2013 – 6th Sustainable Procurement Barometer
10. 10 |
they have not fully familiarized themselves with their
obligations, despite signing the contract with the buyer.
Applying a Responsible Procurement approach involves,
among other things, that the buyer from the outset of
the procurement process provides upfront and clear-cut
communication of the requirements for labour standards
among a supplier’s workforce. The information should
plainly explain what is required of a supplier and what
kind of compliance monitoring they might be subject to
before or during the relationship.
This is often overlooked by buyers: They do not always
specify in a contract how they will monitor compliance
of labour standards (e.g. through inspections, audits
or other verification activities), how they will handle
non-compliances and what consequences this might have
for the suppliers.
When both parties know what to expect of each other
and agree to abide by common rules, a more resilient and
reliable relationship is established between a buyer and a
supplier.
Be clear on the rules: Integrate criteria for labour standards into the prequalification phase of a tender. Shortlist
suppliers who are able to meet the criteria and engage in competitive dialogue and evaluation in the contract negotiating
phase. This provides an opportunity for each party to agree on reasonable expectations, tolerance criteria, as well as
terms for possible corrective actions.
1
Break down complexity: Provide comprehensible and practical information to suppliers. Break down complex legal
paragraphs and ‘translate’ global labour principles into a clear and manageable set of rules.
2
Engage important stakeholders: Ensure that the contractual expectations are addressed in a meeting with
suppliers – and sometimes other relevant parties, such as trade union representatives – to ensure that they understand
what is expected of them. Help those who want to comply, but do not know how.3
Perform targeted and effective controls: Build a database where suppliers are segmented based on a set of
risk criteria, so that you can focus your monitoring on high-risk suppliers. To ensure compliance with Responsible
Procurement criteria, a range of suppliers may need to be regularly screened, monitored and audited for compliance.4
Emergency preparedness: Develop a response system with clear ownership of issues and lines of communication
and decisionmaking, for when you might need it.
5
Five steps to setting clear expectations with suppliers
11. | 11
93 % of procurement
organisations recognise
sustainable procurement
as a critical or important
objective for their business.
HEC/EcoVadis 2013 – 6th Sustainable Procurement Barometer
12. 12 |
Market perspectives
from Finland
In Finland, the most significant shift in Corporate Social Responsibility (CSR) over the
last five years is that it has developed into a mainstream management discipline.
13. | 13
This does not mean that CSR has become strategic at all
levels and in all organizations – there is still plenty of room
for improvement in terms of finding the most material,
business critical sustainability issues.
However, all major corporations now have full-time
CSR staff managing the implementation of a CSR
strategy, reporting on sustainability topics, and using
Key Performance Indicators to track the success of their
efforts.
It is partly due to pressure from B2B clients, where supply
chain management is creating a positive CSR ‘domino
effect’. It is also due to present and future employees,
NGOs, and investors (both mainstream and Socially
Responsible Investment) becoming increasingly active and
demanding around corporate sustainability.
Furthermore, regulatory pressure has accelerated over
the past few years; for example, the Finnish government
has initiated a national CSR Commitment, and a National
Action Plan on the UN Guiding Principles on Human Rights
has been launched. The EU-directive on non-financial
reporting will no doubt bring regulatory requirements on
CSR closer than ever to Finnish businesses.
Last but not least, B2C customers have begun to show
growing awareness of opportunities around sustainable
consumption. Active interest, however, is still only
emerging in the market.
A drawback is that the ‘hot topics’ of CSR tend to
change faster than the actual issues can be addressed.
CSR has gone mainstream
It is partly due to pressure from
B2B clients, where supply chain
management is creating a positive
CSR ‘domino effect’
14. 14 |
Consequently, the agenda always seems to be expanding,
which eventually risks blurring the picture of what is
relevant and material for companies to focus on.
During the last three years, sustainability perspectives
have become more integrated into established corporate
functions, such as risk management, reporting and
operational management systems.
Overall, the focus is shifting from risk to opportunity – to
showing the market what the sustainability perspective
represents in different companies. This creates a
great incentive for telling the sustainability story in an
interesting and concrete way through communications,
marketing and sales. Moreover, sustainability thinking is
increasingly used as a source of innovation and inspiration
– both in the home market and abroad.
Supply chain management – improving current practices and focusing on human rights:
Companies are taking their sustainable supply chain practices to the next level by reviewing and improving current
practices and by paying particular attention to human rights issues.1
Reporting – balancing between materiality and a growing array of frameworks:
The Global Reporting Initiative (GRI) has a strong footing in Finland as the most widely adopted framework for
sustainability reporting. The G4 version of the standard and its focus on materiality is gaining wide interest in Finland,
with most major reporters getting ready for their first or second ‘G4 reports’. Yet, today’s array of reporting frameworks
such as Integrated Reporting, the EU Directive on non-financial reporting, the UN Global Compact Communication on
Progress and others may puzzle even the hard-core reporter.
2
Compliance – strengthening controls over grey areas through anti-corruption and tax transparency
measures: Compliance issues, particularly stronger roll-out and follow-up mechanisms for ethical guidelines and
greater tax transparency, are high on the corporate agenda, not least due to the Finnish media’s persistent attention to
the topics.
3
Customer engagement – how to find the ‘sustainability sweet spot’:
Sustainable consumption choices interest both individuals and companies, as both look for ways to connect in the
marketplace. Attention is growing, but the position of being the game changer is still up for grabs.4
Impact – investing for the long-term through holistic, sustainability thinking:
A focus on impact, i.e. the unique positive and negative contribution of an entity, is steadily gaining attention from public
and private decision-makers as well as from investors. As resources get scarcer, decisions must be based on, and justified by,
a holistic analysis that takes into account not only economic but also ecological and social impacts. Interestingly, Finland’s
trendy start-up scene is actively engaging with this topic.
5
Five key topics defining the CSR-agenda in Finland
16. 16 |
Trend #3:
Corporate Humanitarian
Partnerships: the real match
Businesses face a growing expectation from consumers and employees to do more for society and
address global challenges through their activities. Civil society organizations encounter an increasingly
complex humanitarian reality through their activities, requiring access to new technology, products
and service solutions. Corporate humanitarian partnerships are providing a new shared business case.
17. | 17
Global humanitarian challenges are changing the
operational agendas for governments, businesses and
civil society organizations (CSOs). Neither party can
singlehandedly solve today’s complex challenges, from
climate change, pollution and resource scarcity to armed
conflict, migration or poverty.
The practice of partnerships between businesses and
CSO’s is evolving in important ways. Companies have
moved away from philanthropy and one-off activities
and towards strategic partnerships with direct business
benefits, leveraging their core competencies and
addressing social and environmental challenges in their
value chain, such as poor human rights standards.
Deloitte’s Global Millennial Survey1
found that 68 % of
Millennials expect businesses to do more than they are
already doing to address social problems and engage in
solving global challenges.
A successful partnership can open new opportunities for
business; this may include offering access to new markets
in developing countries, increasing the understanding
of local conditions and enhancing legitimacy in local
communities.
Long-term collaboration with CSOs provides an
opportunity to engage with consumers in a common cause
that helps create consumer loyalty and product favour.
Likewise, successful partnerships with businesses can
create huge opportunities for CSOs that face a growing
number of complex humanitarian needs and shrinking
budgets. CSOs partnering with businesses can benefit from
access to innovative technology solutions and products,
access to new groups of volunteers, as well as services and
infrastructure to support their humanitarian activities.
But despite the obvious benefits of partnerships,
businesses and CSOs both experience challenges in
making them come to life. A recent study2
shows, that 84
% of businesses and 96 % of CSOs expect partnerships
to become increasingly important to their organisations
over the next three years. Correspondingly, 65 % of
business and 86 % of CSOs expect their investments in
partnerships to increase. However, only 1 % of current
partnerships in Denmark create shared value3
. How can
this be improved in order to meet the objective?
From pitfall to promise
Both partners risk wasting their time, if they do not
commit to developing a proper strategy of engagement
By Bahare Haghshenas
Bahare Haghshenas
specialises in partnerships
between the business
sector and NGOs, strategic
consumer involvement and
CSR innovation. Bahare
is highly experienced in
stakeholder dialogue, market
analyses,process innovation
and facilitation. She has more
than 10 years’ experience in
developing and launching
concepts in markets in
Europe, North America and
Africa. She is the former Vice-
President of the Swedish Red
Cross and from 2006-2010
was a member of the
Delegation for Human Rights
appointed by the Swedish
Government.
Despite the obvious
benefits of partnerships,
businesses and CSOs both
experience challenges in
making them come to life
1) www.deloitte.com/MillennialSurvey 2) C&E Corporate-NGO Partnerships Barometer 2013, www.candeadvisory.com/barometer 3) Neergaard, P.Crone Jensen, E& Thusgaard Pedersen, J 2009. ‘Partnerskaber
mellem virksomheder og frivillige organisationer’.
18. 18 |
and shared value objectives. It requires a fundamentally
new approach from both business and CSO to move
away from donations and marketing towards working
with specific joint challenges.
Businesses and CSOs are by nature different, and their
historical relationship has been infused by conflict and
mistrust. Different cultures, organisational structures,
governance and working procedures can put significant
strain on the relationship, as can different approaches to
the objectives and motivation for a partnership.
Despite these obstacles, future partnerships will have
to find ways to deepen collaboration and integration
in order to avoid the pitfalls and realise their promise.
Businesses and CSOs should engage in dialogue to solve
shared challenges or realize common opportunities where
value creation to the business equals the creation of
value to the CSO. This requires matching expertise and
assets (rather than just money), defining the timescale
of the project, and clearly articulating the social or
environmental goals that need to be met.
Five steps to creating shared value in Corporate Humanitarian Partnerships
Think outside the box:
Applying a ‘business as usual’ approach will not create shared value in the partnership. Partnerships requires a
common approach, framework, objectives and way of operation. Not ‘my way’ or ‘your way’ but ‘our way’.1
Involve local stakeholders:
Involve the local stakeholders and the implementing organisation already in the project design phase. This will
minimize challenges in the implementation phase, align expectations and match the project plan to the local reality.2
Agree on resources:
Partnerships often fail because of misaligned expectations. Projects need to be carefully planned from the outset
and monitored as the project progresses. Be clear about which different resources, expertise, knowledge, time and
commitment are brought into the partnership and with what purpose.
3
Agree on timelines:
Avoid the mismatch between what CSOs and businesses typically consider a long-term commitment. In general, CSOs
have a more long-term agenda than companies do. Businesses want to see a return on investment fast. This can be
difficult to achieve and creates a need for both CSOs and companies to be realistic about timeframes and results.
4
Measure impacts:
Businesses and CSOs alike will want credible evidence that the different types of resources they have provided have
made a clearly identifiable and measureable impact. In any project planning there needs to be a methodology with
tangible KPIs for assessing impacts and outcomes.
5
20. 20 |
Market perspectives
from Iceland
The global financial crisis and subsequent collapse of the Icelandic economy
in 2008 was a wake-up call for Icelandic businesses. The result has been an
emerging focus on longterm thinking, corporate social responsibility (CSR)
and sustainability.
21. | 21
The growing activity around sustainability and CSR
in Iceland is mainly business-driven, since Icelandic
legislation still lags somewhat behind other Nordic
countries.
Increasingly, businesses recognise the commercial and
reputational benefits of adopting a long-term strategy
that positions their business activities as a response to
broader social and environmental needs.
More than anything, ‘trustworthiness’ is the key
message that Icelandic companies want to send to their
stakeholders, reassuring them that they are in business
for the long-term; credibility has become more central
than ever to the development of corporate policies
and initiatives that aim to underpin a responsible
business.
At the same time, Icelandic companies are experiencing
increased pressure from foreign customers, suppliers and
vendors to comply with international standards and CSR
principles.
The Icelandic Centre for Corporate Social Responsibility,
Festa, has organized different events to bring CSR staff
and sustainability activities together and raise media
attention and public awareness about the issues.
According to recent reviews of public and local
enterprises, Icelandic companies are increasingly
adopting key performance indicators to monitor their
CSR performance and communicating this in a report.
Recycling of waste and helping youngsters to a healthier
lifestyle through sponsorships of local sports clubs are
some of the more popular initiatives.
The high end of the Icelandic fashion sector is also
beginning to use a CSR-perspective as a way to
differentiate itself positively in the local clothing market.
Placing emphasis on the durability and quality of clothing
materials as well as emphasizing good relationships to
responsible manufacturers create strong arguments for
the value-added price.
From Risky and Controversial
to Responsible and Credible
A common denominator for those Icelandic companies
that are showing leadership in sustainability is that they
have either had a risky business history after the financial
collapse in Iceland, or they have been operating in a
controversial industry where questions of trust are often
raised.
CSR as a management approach has given those
companies the opportunity to regain credibility and
Emerging from a Crisis with
Increased Responsibility
22. 22 |
promote responsible leadership as a core part of their
corporate culture.
Icelandic companies with a longer history of implementing
sustainability principles into their business thinking now
increasingly integrate CSR objectives with business
strategy. This means that a growing number of resources
are being dedicated to implement sustainability principles
into the business, and issues are dealt with more
systematically and at a higher level in the organisation.
CSR as a management approach is expected to gain
more attention from enterprises over the next few years,
as Iceland’s core industries – such as the fishing industry
and the tourist industry – start building sustainability
principles into their company policies and core activities.
Their efforts will also generate more public interest,
and companies are expected to respond with more
comprehensive and transparent reporting on their
sustainability performance and outlook.
Although awareness in Iceland is growing, it is still limited
to certain progressive parts of the business community,
and adoption of sustainability management and reporting
practices are generally considered to be a few years
behind the other Nordic countries. However, over the
coming years, addressing social and environmental
challenges while driving business performance will
become the norm.
Icelanders like to consider themselves at the front line of
progressive trends, and despite some catching up to do,
it would not be surprising, if CSR soon becomes standard
business practice.
Five key drivers of CSR in Iceland
After the economic collapse in 2008, Icelandic companies needed to demonstrate that they were trustworthy and
would stay in business for the longterm. Integrating sustainability thinking into their business approach has helped
companies manage their risks and communicate this to a wide stakeholder audience.1
Icelandic companies supplying foreign businesses increasingly need to comply with international standards and
principles for CSR to maintain and grow their business.
2
Although not required by law, Icelandic companies are beginning to report on their CSR performance. Numbers are
still very low, but a few companies are showing the way with reports that use international frameworks such as the
Global Reporting Initiative (GRI) or UN Global Compact.3
The Icelandic Centre for Corporate Social Responsibility, Festa, is experiencing significant growth in membership,
thanks to their active awareness-raising. The Centre was founded in 2011 by six progressive Icelandic enterprises. By
2014, membership stood at 44 companies1
.4
In a small economy, good cases have an impact: some controversial companies have managed to turn their reputation
around by adopting sustainability thinking and communicating their performance. This has set a positive example and
inspired other companies to follow suit.5
1) http://festasamfelagsabyrgd.is/about-us
24. 24 |
Trend #4:
Navigating the murky
waters of corruption
Increased political attention and growing business risks see many Nordic companies
gradually improve their anti-corruption strategies and compliance programmes.
25. | 25
The World Bank estimates that worldwide corruption
hits 1 trillion USD each year1
. It is the main barrier to
sustainable economic, political and social development.
Corruption decreases efficiency and increases inequality in
societies. And it adds to the cost of doing business; bribes
increase transaction costs, and corruption brings with it
the risk of prosecution, severe penalties, blacklisting and
reputational damage.
Furthermore, engaging in bribery creates uncertainty for
business, because there may always be a competitor willing
to offer a higher bribe to win business. In fact, the World
Economic Forum estimates that corruption increases the
cost of doing business by up to 10% on average2
.
Outsourcing and increased globalization are increasingly
exposing Nordic companies to significant and complex
risks. Legislation in different markets is complicated.
The division of responsibility between suppliers and
subsuppliers has become ever more blurred. Several
damaging cases demonstrate that neglecting corruption
risk can be a very costly strategy for a business.
However, by the time most companies realize they
actually need an anti-corruption programme, they are
already in a tight spot.
Larger businesses have by now adopted some kind of
anti-corruption and compliance policy, but these are often
insufficient and rarely receive the appropriate attention
from top management or the board.
In the Deloitte Nordic Compliance Survey 2014, 94 %
of legal officers in surveyed companies responded that
they believe their company behaves ethically. Yet many
companies still struggle to report on the impact of their
corruption policy or compliance programme. Staying on
the surface of a potential corruption risk is a common
pitfall and creates a false sense of security.
Anti-corruption measures are a necessary investment.
Frontrunner companies share the approach that taking
a stand on corruption is not seen so much as a cost
but instead as an investment that helps the company
successfully implement its strategy.
Doing business is a complex interaction of policies,
procedures, systems and people. Regardless of where
a company operates, it has to deal with the fact that
employees face dilemmas, are culturally different, have
personal incentives and sometimes make wrong decisions.
By Kim Sparre
Kim Sparre has more than 14
years of experience leading
corporate investigations
and forensic engagements
in general. His primary
work areas include
investigations for private
and public organizations
facing sensitive and often
wide-ranging challenges
in relation to bribery and
corruption, corporate fraud,
employee misconduct and
various compliance issues,
particularly in emerging
markets and jurisdictions.
Within Deloitte, Kim has
led numerous large-scale
international investigations
and compliance audits in
many different jurisdictions
world wide.
Staying on the surface
of a potential corruption
risk is a common pitfall
and creates a false sense
of security
1) www.worldbank.org 2) www.weforum.org/
26. 26 |
While focus is often on top management, most companies
overlook the fact that the biggest risk exposure is at
mid-management level and below. Companies also often
ignore that corruption can occur at all stages: gifts, return
commissioning, nepotism, fraud or bribery, large or small.
All of which frequently have destructive consequences
for the company and individuals. Implementing an anti-
corruption programme mitigates the risk and can help give
a competitive advantage in a complex market place.
An anti-corruption programme connected to a policy for
transparency and accountability helps secure the ‘health’
and reliability of a company. It provides transparency
towards authorities and business partners. By applying a
proactive approach a company avoids ad hoc solutions
and silo-thinking. It becomes more agile in its response
to dilemmas and risks.
An effective start is to establish a long-term business
strategy in the markets where the company operates,
create clear incentives for those who comply, and be firm
about what is unacceptable business behavior. This means
getting organized internally, allocating the resources
necessary to establish an appropriate governance
structure, communicating risk and dilemmas, training
employees, and measuring the impact.
Five steps to start or revise your anti-corruption program:
Assess:
What are the risk and needs of the company? An indepth assessment of procedures, policies and standards
paired with an analysis of external risks and legal and ethical requirements will create a full overview for company
management to decide which course to take and with what resources.
1
Prevent:
Have we done enough? Run through all procedures, polices and business units to establish whether procedures are
appropriate in scope and depth and sufficiently robust. Do compliance materials and training cover all critical areas in
the company? Are risk areas regularly monitored and followed up on?
2
Detect:
How good is our monitoring? Evaluate the effects of governance and procedures. Evaluate employees’ level of
knowledge and the quality of monitoring processes, such as internal audits, follow-ups and controls. Detection is
important in order to establish, if resources are spent wisely. Develop the KPIs, measure and evaluate behavioral change.
3
Respond:
How good is our risk management? Does the company have a sufficient risk management programme in place?
Are adequate procedures in place for handling incidents, information flows and conducting investigations? Can the
company provide the right analysis and materials for authorities and partners, when requested to do so?
4
Integrate:
Which results can be achieved? Allocate resources from the start. Don’t leave compliance and anti-corruption to
whoever has excess energy in the organisation. Make sure that the responsible officer has access to executive
management.
5
27. | 27
Deloitte has developed
a comprehensive anti-
corruption programme
which helps business
troubleshoot corruption and
fraud risk. The programme
is based on more than
a decade of experience
helping companies with
conducting internal audits,
complying with legislation
and standards and
developing risk mitigation
programmes.
28. 28 |
Trend #5:
How to safeguard the human rights
programmes of your business
Corporate human rights issues continue to be a complicated topic, slowly moving up the corporate
agenda. Nordic businesses are stepping up human rights compliance programmes for managing
risks. But many overlook the critical activity of establishing a suitable complaints mechanism.
29. | 29
By Thomas Trier Hansen
Thomas has 15 years of
professional experience
with Human Rights related
issues nationally as well as
internationally from working
in more than 25 countries in
Latin America; Africa; Europe
and Asia, including almost
six years with the Danish
Institute for Human Rights at
its international department.
Thomas’ is among other
things experienced in
Human Rights assessments,
reviews and appraisals of
Human Rights programmes
supported by government.
Since the launch of the UN Guiding Principles for Business
and Human Rights in 2011, businesses are increasingly
being held responsible – sometimes directly, sometimes
indirectly – for addressing human rights risks and solving
related issues in their supply chain.
The international focus has shifted from companies
adopting basic human rights standards to implementing
the Guiding Principles and delivering results.
Denmark and Finland have recently developed National
Action Plans on Business and Human Rights, both of
which underline the need for improved access to remedy.
A public institution to handle complaints over business
conduct has been in place in Denmark since 2012, and it
is currently handling its first cases. Similar bodies exist in
other Nordic Countries.
This shows how Nordic companies are continuously
challenged to demonstrate steps taken to address and
mitigate human rights risks. Including a complaints
mechanism in the corporate human rights programme
is a key tool to reduce human rights risk and related
management costs.
Although not all issues or risks can be resolved by a
complaints mechanism, it is important that a company
has the right mechanisms and procedures in place to
resolve potential cases appropriately. For companies
operating in Nordic countries, a complaints mechanism
could be a prerequisite for ventures with public
partner contractors. It could provide a critical risk alert
mechanism and also positively affect internal and external
stakeholders’ trust in the company.
The sooner a company can solve a human rights issue
that appears in its operational sphere, the more likely
it is to reduce the costs of a case and prevent more
serious incidents. Furthermore, a successful complaints
mechanism can reduce the risk of complaints being
submitted to other public complaint mechanisms, such
as consumer boards, data protection agencies, equality
boards, or the press.
Whistleblower hotlines may miss the point
Lately, an increasing number of Danish companies have
developed whistleblower hotlines in order to provide
access to remedy. However, these might not deliver the
Nordic companies are
continuously challenged
to demonstrate steps
taken to address
and mitigate human
rights risks
30. 30 |
desired results when it comes to solving human rights
issues. Generally, whistleblower hotlines have a different
scope and are managed by officers without any human
rights or CSR experience, or they have a specific focus
such as compliance with sector-specific standards.
This often leaves affected persons uncertain of the
mechanism’s relevance, including their rights to data
and privacy protection. The risk is that if the mechanism
remains inaccessible for the target group, the business is
left unaware of serious issues that will eventually ‘break’
in the public and set off resource-intensive processes.
To avoid such pitfalls, companies need to seek out the
opportunities. A complaints mechanism has multiple
functions in a human rights compliance programme: It
provides a platform for feedback, works as an internal
and external remedy process for stakeholders, and
potentially uncovers organisational gaps and serious
incidents that put the company at risk.
Five steps to improve your complaints mechanism:
Map your existing system to discover gaps and overlaps:
Duplication of a complaints mechanism is a risk, since the company may have a number of different mechanisms
without realizing there are unnecessary overlaps.1
Consult with internal and external stakeholder about priorities:
Disputes often arise based on pre-existing mistrust, which makes it hard to work together. Proposing a jointly-created
complaints mechanism may in itself help build trust or be a prerequisite to addressing a dispute.2
Design a complaints system based on demand:
Analyse barriers in the system that make the mechanism inaccessible for the target group. Set clear expectations and
guidelines that can assist in designing appropriate follow-up actions.3
Communicate the process internally and externally:
Remember to communicate about the implementation and results of the system. Address potential dilemmas, e.g.
how to balance transparency with the interests of the company and confidential information, and have a clear plan for
how to protect the complainant against acts of retaliation.
4
Regularly evaluate the system against defined indicators:
Continue to revise and evaluate the system’s efficiency. Implement the results and communicate them annually.
5
31. | 31
What is a complaints
mechanism?
The purpose of a
business-based complaints
mechanism is to address
specific cases and disputes
at the company level,
e.g. dangerous working
conditions, child labour
etc. Solving such cases
can be seen as part of
a more comprehensive
organisational or supply
chain management
approach based on a risk
and conflict management
tool that helps companies
identify and act on violations
of international principles
and norms associated with
their business activities.
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Norway:
Helene Bamrud - hbamrud@deloitte.no
Frank Dahl - fdahl@deloitte.no
Albert Wolders - awolders@deloitte.no
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Lars Ek - lek@deloitte.se
Finland:
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Iceland:
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Contact Deloitte