Transcript Corporate Social Responsibility

Frameworks for Implementing
TBL Programs
Presentation to:
National Executive Forum on Public Property
April 29, 2004
Toronto, ON
By: George Khoury
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Presentation
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About the Conference Board
What is CSR, SD and TBL
Why organizations should pay attention
TBL Framework examples
Reporting trends and outlook
CR Assessment Tool
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About the Conference Board
• The Conference Board builds leadership
capacity for a better Canada by creating and
sharing insights on economic trends, public
policy, and organizational performance
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Sustainability
• “…to meet the needs of the present without
compromising the ability to meet the needs of
the future”
• Ecological focus. More recently, social aspects
considered through TBL
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Corporate Social Responsibility
• Most definitions of CSR address two
fundamental aspects of business practice:
1. a company’s relations with its stakeholders
2. a company’s engagement with, and
impacts on society, environment and the
economy
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Why Should Companies bother
• It is good for business to be good
• Changing public expectations
• Evolving role of business
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Business Case for CSR
Value Creation
Reputation
Competitiveness
Employee Relations
Risk Management
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Why Should Companies bother
• It is good for business to be good
• Changing public expectations
• Evolving role of business
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To Be Socially Responsible a Large Company
Has to Go Well Beyond What Laws Require
(Canada 2002)
Strongly disagree
(3%)
Somewhat disagree
(13%)
Depends/DK/NA (5%)
Strongly agree
(35%)
Somewhat agree
(43%)
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Expectations are high
Canada
8
43
Make profits pay
taxes, create jobs and
obey all laws
45
Operate somewhere
between
USA
UK
11
45
11
0%
43
53
20%
40%
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Set higher ethical
standards and help
build better society
35
60%
80%
100%
Why Should Companies bother
• It is good for business to be good
• Changing public expectations
• Evolving role of business
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Role of Companies
Who should be Responsible for:
(Canada 2002)
Solving social problems
56
Reducing human rights abuses
40
50
Reducing gap between rich and poor
46
39
Ensuring industry does not harm
environment
31
Reducing worker exploitation
29
Reporting companies’ social
practices
27
0%
6
56
12
57
13
56
16
63
20%
40%
Govts
22
60%
Both
Companies
Source: Corporate Social Responsibility Monitor 2002, Environics International
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3
52
13
Supporting charities / community
projects
3
80%
100%
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Global Economies
Country/
Corporation
GDP/Sales
($ millions)
Country/
Corporation
1.
2.
5.
11.
14.
23.
24.
25.
8,708,870
4,395,083
1,373,612
474,951
389,691
176,558
174,363
166,809
27.
28.
29.
31.
37.
38.
40.
42.
U.S.A.
Japan
U.K.
Mexico
Australia
General Motors
Denmark
Wal-Mart
Ford Motor Co.
DaimlerChrysler
Poland
Indonesia
Mitsui
Mitsubishi
GE
Portugal
GDP/Sales
($ millions)
162,558
159,985
154,146
140,964
118,555
117,765
111,630
107,716
Sources: Ranking based on corporate sales data from Fortune, July 31, 2000, and GDP data from the World
Bank Development Report 2000; Mori Research for Royal Dutch/Shell, 2000; Everybody’s Business:
Managing Links and Opportunities in Today’s Global Society.
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Why CSR in a Public Sector Context?
• Shifting boundaries
• Locality of issues and importance of
local government
• Importance of social, environmental
and economic in decision-making
• Communicating to stakeholders
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What Does CSR Mean in a
Local Government Context?
Objective - widening and deepening of
CSR
• How
• Agent of change
• Catalyst of change
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Agent of Change
Issues
• Philanthropy and Community involvement
• Volunteering
• Workplace health and safety (working conditions)
• Human rights
• Equality and diversity
• Corporate ethics (ethical business practices)
• Stakeholder engagement
• Sustainability (balancing eco dev with soc/ envir issues)
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Catalyst of Change
Issues
• Public-private partnerships (PPP)
• Procurement (contracting/ purchasing)
• Public consultation / Stakeholder
engagement
• Pension fund advocacy
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From Why to How
• Confusion in the marketplace
• Need for process clarity
• Focus on outcome is key
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Triple Bottom Line
• The development of an integrated
framework to achieve CSR and SD is
known as the Triple Bottom Line
approach
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TBL Reporting and Implementation
Framework
• Reporting Process
– Services to community (external indicators)
– Internal management (internal indicators)
• Implementation Process
– Evaluation of the potential environmental,
economic and social impacts associated with
proposed projects or actions being considered by
Council
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External Indicators
• Community indicators:
– Economic: Total city investment in Business
incubation programs (target= x)
– Social: Rate of participation/engagement of
residents in city funded community and cultural
events/activities (target= +x%)
– Environmental: Total reduction of residential waste
to landfill (target= +x%)
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Internal Indicators
• Economic: Achievement of financial plan
targets
• Social: Overall employee satisfaction
• Environmental: Total reduction of energy
consumption attributable to Council buildings
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Company CSR/SD Reports
Falconbridge Ltd. (mining)
TransAlta Corp. (utilities)
Suncor Energy
(oil & gas)
Telus
(telecommunications)
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Royal Bank
(financial services)
Dofasco Inc. (steel)
Husky Injection Molding
Systems (industrial)
Abitibi Consolidated
(paper & forestry)
More Canadian Companies are
Reporting
• One Hundred companies reporting in 2002 v/s
57 in 2000
• Top Canadian reporters include*:
– Suncor
– VanCity
– Hydro-Quebec
• Crown corporations are reporting more
• Government catching up
2003
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*Stratos
The Canadian Reporting Landscape
 Research

CBOC Survey

Stratos Survey
 Key Findings:

Range of issues being reported on
Environmental reporting still leads
the pack

Some movement towards integrated
SD/ Triple Bottom Line reporting

“Feeling their way”--Gradual/
incremental approach to investment
in reporting

Not sure of how to navigate Code/
Standard landscape
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CSR Reporting: Key Success Factors
 Corporate commitment to transparency and accountability
 Internal champion to ‘drive’ the reporting process
 High internal awareness of the business case for CSR and TBL
reporting
 Dedicated human resources - “Get the right people to do the job”
 Timeliness of information
 Regularity of reporting - “You can’t stop reporting”
 Strong internal management frameworks and information systems
- accurate, clear, consistent and meaningful data
 Stakeholder dialogue and involvement in the definition and
development of KPIs
 Continuous improvement- build “learning organizations”
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Shell’s SD Management Framework
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Developing a Report: Critical Questions
 Are stakeholders (internal/external) interested in
the report’s content? Is the content relevant?

Can the report be understood by a nontechnical audience?

How can they benchmark good practice?

Is the report believable?
 Are robust management/data collection/
information systems in place to support reporting?
 Is the business case clear? What level of system
development/reporting structure is most
appropriate given your company size/operations?
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“Reports need
to talk to
issues that are
close to the
reader”
Reporting Framework
 Mostly individualized
reports/websites, but
increasing alignment with
international standards such as
GRI, AA1000, Global
Compact
 BUT…methodological
issues around
standardization vs
company-specific issues
 CBOC ‘CSR Benchmarking
Framework’
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The Corporate Responsibility
Assessment Tool
(CR AT)
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Key Benefits
 Enables comprehensive self assessment
against leading international CR benchmarks
 Centralized data base can easily generate
custom reports for key external stakeholders
eg MJRI
 Resource centre provides ongoing assistance
for continual self improvement
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CR Assessment Tool – Design
• Integrated framework, simplifies and “digests”
• Encourages and supports continual improvement
• Benchmarking and reporting capability
• Dynamic stakeholder consultative process to ensure
relevance
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Pop up window for
underlying codes
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User Feedback
The Co-operators Group Limited
“The tool prompted me to think about areas I might not of
otherwise.”
“I like the fact that once you got used to the tool it was easy
to navigate.”
Petro-Canada
“A good comprehensive electronic check list that will
provide a useful ‘internal’ gap analysis as well as a
comparison against external codes”
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THANK YOU
• [email protected]
• Tel: 613-526 3280 ext 308
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