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Winning with Integrity SE Network 5th Dec 00 Mallen Baker Impact on Society Director. “Business has never operated against a background in which there has been such immense potential. Equally, however, it has never faced such rapid change, such intense competition, such uncertainty

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Winning with IntegritySE Network 5th Dec 00

Mallen Baker

Impact on Society Director


“Business has never operated against a background

in which there has been such immense potential.

Equally, however, it has never faced such rapid

change, such intense competition, such uncertainty

- and so many risks.”

Source: Chatham House Forum

- Uncharted Waters 1998


Does it matter to you if
Does it matter to you if ...

  • Your company has a poor reputation for honesty and trustworthiness?

  • Your customers have a bad opinion of your impact on the environment?

  • It’s difficult to attract and retain good people?

  • Your organisation is unattractive to business partners?


Growing expectations on business

Business

Growing expectations on business

Government

Customers

NGOs

Shareholders

Society

Employees



What can social responsibility do for you
What can social responsibility do for you? important issue facing business by 750 CEOs surveyed

Improve

Build

Protect

Competitiveness

the Workforce

Reputation


Business competitiveness
Business Competitiveness important issue facing business by 750 CEOs surveyed

  • Strengthened relationships with customers and suppliers

  • The ability to recruit and retain key staff

  • Efficient use of natural resources and energy and reduction of costs


Customers millennium poll on csr
Customers - important issue facing business by 750 CEOs surveyedMillennium Poll on CSR

  • 2 in 3 want companies to contribute to broader societal goals

  • 1 in 2 paying attention to social behavior of companies

  • 1 in 5 rewarded / punished corporate behaviour past year


Building the people
Building the people important issue facing business by 750 CEOs surveyed

  • Maximising the contribution and effectiveness of all your staff (managing diversity)

  • Becoming an employer of choice, able to attract the best staff

  • Providing continual development within a framework of respect for work-life balance to retain the staff you have


Employees attracting and holding on to the talent
Employees - attracting and holding on to the talent important issue facing business by 750 CEOs surveyed

  • A study conducted by McKinsey, “The War for Talent”, published in 1998 found that only 3% of companies responding believed they had enough talent to reach their objectives in five years.

  • MORI research throughout the 1990s consistently found that the vast majority of people believed that a company that supports the community is a good company to work for.

  • Bain & Co found that those companies that have the highest employee retention also have the greatest customer retention.


Protecting reputation
Protecting Reputation important issue facing business by 750 CEOs surveyed

  • Managing the key stakeholder relationships that could affect the business

  • Minimising risk of exposure to environmental accidents or human rights violations

  • Developing a positive relationship with local communities


Reputation may be your biggest asset
Reputation may be your biggest asset important issue facing business by 750 CEOs surveyed

  • Intangibles can represent a large part of your market capitalisation (96% for Coca Cola, 83% for IBM)

  • Last year, a poll of 25,000 citizens across 23 countries on 6 continents showed that perceptions of companies around the world are shaped more by corporate citizenship (56%) than either product quality (40%) or business fundamentals (34%).


Impact on society
Impact on Society important issue facing business by 750 CEOs surveyed

  • Marketplace

  • Environment

  • Workplace

  • Community


The issues

Marketplace important issue facing business by 750 CEOs surveyedImpact on society of core productsand servicesIssues around buying and sellingSupply chainVulnerable customersCause related marketing

WorkplaceWorkforce diversityWork-life balancehealth and safetyhuman rightstraining and lifelong learning

EnvironmentEmissions to air, land and waterUse of natural resourcesEnvironmental riskTransport impactsImpact on environment of core products and services

CommunityImpact on local operations onthe communityBusiness investment in community

The Issues


What does the report cover
What does the report cover? important issue facing business by 750 CEOs surveyed

The best business case arguments

Consistent view of what constitutes quality of management

Recommended impact indicators - an essential core


Impact indicators

Marketplace important issue facing business by 750 CEOs surveyedCustomer satisfaction levelsAdvertising complaints upheldUpheld cases of anti-competitive behaviourAverage time to pay billsSocial impact of goods / services

WorkplaceWorkforce profileStaff absenteeism / grievancesPay and conditions compared against local equivalent averagesPerception measures

CommunityCash value of community supportValue of staff time and in kind supportLeverage of other resourcesPerception measures - company as good neighbour

EnvironmentEnergy consumptionWater usageSolid waste producedGreenhouse gas emissionsImpact of goods / services

Impact Indicators


Community impact
Community Impact important issue facing business by 750 CEOs surveyed

1

  • Cash value of community investment as a percentage of pre-tax profits

  • Value of individual time and in-kind support

2

  • Value of combined time and in-kind support

  • Project progress against milestone targets

  • Leverage of other resources

3

  • Perception measures of company as good neighbour

  • Assessment of community investment outcomes


Issues to consider in measuring csr
Issues to consider in measuring CSR important issue facing business by 750 CEOs surveyed

  • We should avoid placing emphasis on the things that are easy to measure rather than those which are important

  • Without visionary leadership focused on the emerging issues, control based mechanisms are of little value

  • At the end of the day, it’s what the stakeholders think is important - and that may change!


“Winning with Integrity” important issue facing business by 750 CEOs surveyed - from Business in the Community or at http://www.business-impact.org

This presentation at:

http://www.mbkr.demon.co.uk/csr/


What happens next
What happens next? important issue facing business by 750 CEOs surveyed

  • The Business Impact Review Group

  • The corporate social responsibility index

  • The CSR review

  • A new relationship between member companies and Business in the Community.

  • Developing an approach for a strategic approach to social responsibility


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