About CROA

1. Improving Corporate Responsibility Practices, Measurement and Disclosure in the Government Contractor Community

2. About CROA • CROA is a community of leaders committed to advancing corporate responsibility across the sectors and around the world • Our members include the CEOs and executives committed to implementing and overseeing corporate leadership in the following interconnected areas: • Sustainability • Ethics and Governance • Human Rights • Employee Relations • Philanthropy and Corporate Citizenship • Compliance and Risk Management • We are a community of nearly 1200 professionals from 150 companies who practice, provide, and advise on improving corporate responsibility

3. Current trends in our community • Growing general distrust in corporations. Increased focus on waste, fraud and abuse among government contractors. • Perceived lack of transparency and accountability in government. A recent push to promote open government and promote transparency. • Growing use of government purchasing power to promote Administration policy goals and individual agency missions

4. The need for a Roundtable • Is there a way for this community to come together to voluntarily raise the bar on corporate responsibility Or do we wait for more regulations, legislation and executive orders to mold our behavior? • Is there a way to use corporate responsibility as a competitive advantage to: • improve industry’sprofitability • increase government's impact • leverage taxpayer’s dollars • The mission of the Roundtable is to foster and evolve corporate responsibility practices, measures, and disclosure in the government contractor community

5. Steering Committee Roadmap Current State To Be Vision • Government balancing taxpayer desire to cut spending with achieving important societal goals • Perceived lack of transparency and accountability • No established CR community in public sector • Inconsistent use of government purchasing power to further policy goals • Lack of aggregated, accessible CR data/metrics Action Strategies • Government purchasing spurs innovation, efficiency and meets societal goals • Increased transparency and accountability in how government delivers services leads to improved results, trust • Common CR value set drives government purchasing within and across agencies • Publicly available data helps government make better partnering decisions, spending taxpayer dollars with less risk Define what CR is in the public sector, communicating why it is important and the impact it can have Build on CROA’s existing work by developing quantitative and qualitative metrics to be applied to the government contractor community and pilot this Educate the public sector and contractor community through case studies, recognition programs, and government CR pilots Vision Statement Our vision is a future in which corporate responsibility is viewed as a key input into government decision making and the delivery of its mission, including the selection and/or compensation of its partners and contractors 

6. Action Lanes • Define a set of quantitative and qualitative public sector metrics that support the CR value set. These measures should be informed by what CROA already measures in the private sector. • Ensure appropriate context and guidance are provided to make measures meaningful • Find a government agency partner to model or pilot this approach • Use CROAs Best Corporate Citizen List to push adoption of these measures • Define what CR means in the public sector sphere for government, contractors, NGOs, etc. • Review how CR impacts government purchasing today and build a future vision and case for change • Leverage CROA’s research and membership to explore what is common and unique across the public and private sectors around the globe Research Measures • Identify a common set of values around good corporate citizenship in the public sector • Provide a uniform set of principles to guide government decision making and inform corporate practices • Define possibilities and expectations around how values can inform purchasing and partnering decisions Values • Develop thought leadership pieces to communicate CR’s value and impact • Educate and train the new generation of public sector leaders on corporate responsibility • Develop case studies of effective CR in the public sector • Convene summits, events and roundtables to communicate and refine approach, measures and practices Education • Shine the light on outstanding examples across the entire public sector (not just industry) to engage real change • Leverage CROA’s existing programs, magazine, and membership to recognize and communicate best practices • Enlist partners to drive engagement across public/private sectors and government Recognition

7. Call to Action • Read the ResponsibilityWorks Call to Actionto learn more. • Responsibility pays; proven true in the private sector where the 100 Best Corporate Citizens consistently outperform the S&P 5001 (by 19% in 2010). • We seek firms and agencies to participate in corporate responsibility pilots to deliver better mission outcomes. • To discuss a pilot, please contact ResponsibilityWorks Executive Director Joiwind Ronen at joiwind.ronen@sharedxpertise.com or Director of Communities & Member Services Kim Gilliam at kim.gilliam@sharedxpertise.com.

8. GSA GreenGov Supply Chain PartnershipPublic/Private Partnership, Small Business Pilot • Announced by GSA in November 2010, a voluntary collaboration between federal government and suppliers to promote clean energy and cut waste and pollution in the federal supply chain • 60 small businesses pilot participants asked to explore the benefits and challenges of measuring greenhouse gas emissions • EPA CLIMATE LEADERS providing technical assistance to small businesses to measure, report and reduce their carbon footprint • Guide to developing a GHG inventory • Simplified GHG Calculator and Inventory Management Plan • Training on how to use the tools, reduce emissions from electricity and fuel, and approach purchasing offsets and green power Sources: www.gsa.gov / www.opa.gov/climateleaders/smallbiz

9. City of El Paso, Texas Responsible Purchasing Program • Provision of health benefits is a positive evaluation factor—along with price, reputation, technical qualifications, and past performance—weighed by city. The health benefits bidders provide are rated on a scale of 0 to 10; the resulting score then represents 10% of the overall best value score for the bid. Price remains the most significant factor accounting for between 40 and 70 percent. City of Los Angeles Responsible Purchasing Program • Since 2000, L.A. has used a responsible contractor policy to determine who demonstrate the attributes of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform the contract. All agencies review potential bidders’ history of labor, employment, environmental and workplace safety violations. These disclosures are made available for public review • States of Connecticut & Illinois Responsible Purchasing Program • In 2004, Connecticut adopted improved responsibility review and a prequalification system for bidders on public works projects larger than $500,000. Evaluates prospective bidders based on their integrity, work history, experience, financial condition, and record of legal compliance • Illinois Department of Transportation uses a similar system to evaluate bidders’ capacity to perform public contracts. Based on a range of factors that includes past compliance with labor and equal employment opportunity laws Source: National Employment Law Project: The Road to Responsible Contracting

10. Government of Norway Ethical Trading InitiativeGovernment-wide ethical purchasing program • The Government declared in 2009 “public institutions should lead the way in being responsible consumers who request environmentally friendly goods and goods being produced in accordance with high ethical and social standards.” • Government uses the Ethical Criteria in Public Sector Procurement guide to detail: • Which ethical criteria public institutions may set for their suppliers • At which stage of procurement process to set the criteria • How observance of the criteria may be monitored • Developed with the multi-stakeholder Ethical Trading Initiative (companies, trade unions and NGOs) Source: Norway Action Plan for Environmental & Social Responsibility in Public Procurement 2007-2010

11. Carbon Disclosure ProjectVoluntary Global Database • The Carbon Disclosure Project is an independent not-for-profit organization holding the largest database of primary corporate climate change information in the world • The Carbon Disclosure Project launched in 2000 to accelerate solutions to climate change by putting relevant information at the heart of business, policy and investment decisions • CDP acts on behalf of 534 institutional investors, holding $64 trillion in assets under management and some 60 purchasing organizations such as Cadbury, PepsiCo and Walmart. Source: www.cdproject.net

12. CR Magazine & CROA’s Best Corporate Citizens List Recognition Program • In 2010, the Russell 1000 companies had a 3-year average return on shareholder value of -5.4% • The 100 Best Citizens returned +2.4% while the least transparent companies on the “Black List” returned -7.4% • Pilot opportunities… • Can we create an industry pilot to encourage government contractors to voluntarily apply and disclose these criteria? • Can we pilot how privately held companies would apply and report on these criteria?

13. Loudon County Green Business ChallengeRecognition Program • First held in 2010, Loudoun County Government and Chamber of Commerce partner to encourage businesses to adopt environmentally sound business practices • Provides a roadmap and benchmarking mechanism (scorecard) • Creates competition among businesses to do their best • Businesses awarded points for taking environmental actions • Can earn points by attending a series of educational events around how to become more environmentally sustainable • Recognizes businesses for their achievement • Based on number of points earned, business recognized as a “Participant”, “Certified Green Business,” or “Silver”, “Gold” or “Platinum Green Business”, announced at annual Loudon Green Gala Source: www.loudon.gov/energy

14. Pilot Discussion • What do we do next? • What kind of pilots make sense? • Who should we talk to?

15. Closing Discussion • Next Roundtable Meeting • Next Steering Committee Meeting

16. Steering Committee Meeting National Academy of Public Administration February 3, 2011 Presented by: Richard Crespin Joiwind Ronen Kim Jones