Transcript Subject of presentation - Sociedad de Fomento Fabril (Sofofa)

Trends in Corporate Social Responsibility
Reporting
Arjan de Draaijer
KPMG Global Sustainability ServicesTM
Contents
2
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
Global Sustainability Services™
Sustainable Development and Companies
3
Sustainable Development
“Sustainable development comprises
economic and social
development that protect and enhance the natural
environment and social equity”
Contribution of companies
Corporate Social Responsibility
Creating value by responding to society’s needs
Global Sustainability Services™
Corporate Social Responsibility: Main Elements
Company
Strategy & Management
Dialogue
Stakeholders
Economic
Social
Business
Principles
Transparancy
Accountability
Environmental
Communication
Annual
CSR
Report
Global Sustainability Services™
4
Contents
5
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
Global Sustainability Services™
Companies with Annual CSR Reports
6
4th KPMG International Survey on
Corporate Sustainability Reporting (2002)
13%
1993
1996
17%
24%
1999
2002
18%
0%
HSE
5%
10%
28%
10%
15%
20%
25%
30%
Sustainability/ Social
Top 100 companies in 19 countries (total 1900 companies)
CSR Report
Environment, Health & Safety Report
Global Sustainability Services™
CSR Reporting by Industry Sector
7
50%
Utilities
Communications and media
Chemicals & synthetics
Forestry, pulp & paper
Oil & gas
Transport
Mining
Pharmaceuticals
Automotive
Electronics & computers
Food & beverage
Metals, engineering & other manuafacturing
Trade & retail
Finance, securities & insurance
Construction & building materials
Other service
46%
45%
43%
38%
37%
33%
30%
28%
25%
25%
24%
15%
12%
9%
6%
0%
10%
20%
30%
40%
50%
Source: KPMG International Survey on Corporate Sustainability Reporting 2002
Global Sustainability Services™
60%
CSR Corporate Reporting Trends
8
• From environmental reports to integrated CSR reports (including social
issues)
10% of top 100 companies report on CSR
• Use of criteria and standards
GRI
AA1000s
(Global Compact)
• Stakeholder involvement
Issue identification
Stakeholder dialogue
Interviews in the report
Global Sustainability Services™
CSR Corporate Reporting Trends
9
•Assurance
External credibility
Internal performance improvement tool
•Other forms of reporting
Internet based
Separate specialist and general audience reports
Local reports
•Regional differences
Asia: product focus, mainly environmental
US: focus on philanthropy, corporate governance
Europe: stakeholder focus, integration in core business
Latin America: mix, emerging
Global Sustainability Services™
Contents
10
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
Global Sustainability Services™
Growing Number of NGO’s and Consumer Organisations
11
45000
Nr of NGO’s
40000
35000
30000
25000
20000
15000
10000
5000
0
1960
1970
Year
1980
1990
2000
Source: Echo research
……critically monitoring company behaviour
Global Sustainability Services™
Brand / Reputation is at Stake
12
Global Sustainability Services™
Transparancy : Response to Growing Distrust
13
“Involve me”
High
Trust
“Prove it to me”
“Show me”
“Tell me”
Low
Low
Transparency
High
To obtain the trust of stakeholders,
companies must become more transparent
Global Sustainability Services™
External Drivers for CSR Reporting
14
•Business issue
Risk management
Supply chain requirement
•Laws and Regulations
Number of countries require mandatory reporting
•Financial Sector Pressure
Sustainability Indexes (DJSI, FTSE)
SRI
Mainstream investors (increasingly)
Global Sustainability Services™
Contents
15
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
Global Sustainability Services™
The CSR Report: Snapshot of the CSR Performance
16
Policy
defined
Policy
communicated
Policy
implemented
Best
practices
Performance
data
‘Impact
data’
Social
Economic
CSR Issues in the Report
Environmental
Principles
Maturity of CSR Issues
Global Sustainability Services™
The External Benefits are only the Tip of the Iceberg
External benefits:
Credibility towards stakeholders
Shows leadership of company
Information
for financial sector
Global Sustainability Services™
17
Internal Benefits of CSR Reporting
18
•Raises awareness
•Increases employee motivation
•Stimulates evaluating existing practices
Continuous improvement
•Identifies information for benchmarking purposes
•Provides (additional) management information
Alignment of vision and practices
•Contributes to achieving objectives/targets
•Provides starting point for strategy development
Global Sustainability Services™
Contents
19
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
Global Sustainability Services™
CSR Reporting in Practice
20
Outside in
Study External Standards
Benchmark Competitors
Stakeholder Analysis
Develop Sustainability Report
Develop Framework
Data Collection
Writing Process
Verfication
Develop Launching plan
Sustainability report
Accompanying
Launching Plan
Inside out
Internal Survey
Global Sustainability Services™
Balanced Reporting: The Key to Succes
Stakeholder’s
view on
Company
high
Underappreciation
CSR Performance
21
CSR leaders
Overappreciation
low
high
CSR Communication
Global Sustainability Services™
Become a respected business partner…………….
……….through balanced CSR reporting
Global Sustainability Services™
22
Contents
23
•The Main Elements of Corporate Social Responsibility
•Corporate Social Responsibility Reporting Trends
•External Drivers for CSR Reporting
•Internal benefits of CSR Reporting
•CSR Reporting in Practice
•Q&A
Global Sustainability Services™
Questions?
KPMG’s Global Sustainability Services TM
Arjan de Draaijer
[email protected]