Bahrain Responsible Business Survey Presentation

BAHRAIN RESPONSIBLE BUSINESS SURVEY 2012

3BL Associates is Bahrain's first social impact consultancy and think-do-tank, which focuses on multi-stakeholder sustainable and regenerative development in the MENA region.

SustainableDevelopment

Framing Responsible Business As Strategic

Respondents Profile

n= 109 respondents

Respondents Understand Corporate Responsibility and

Sustainability, But What’s a Triple Bottom Line…?

Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them.

“Sustainable development is development that meets the needs of the present without

compromising the ability of future generations to meet their own needs.”

Supply Chains & Stakeholder Engagement; Not a Part

of Social Responsibility?

There’s a Gap Between CSR

Understanding & Practice

“Runaway Climate Change is among the Top 5 Global Risks”

“A climate crisis with potentially devastating impacts on the global economy”

“Climate change is already causing five million deaths a year and is costing the global economy more than US$1.2 trillion – or 1.6 percent in annual global GDP”

“Greening the economy is the only way to accommodate nine billion people by 2050”

“Two storms - environmental and economic - are on a collision course”

Modified from: Rio

+20 Report “Climate

Change and Diabetes”

Climate Interconnections in Bahrain

Life on earth is more than simply sustainable; it's regenerative. Life is interconnected and

interdependent, and the species that survive and thrive on earth are ones that integrate and

optimize strategies to create conditions conducive to life over billions of years.

Respondents Want to Work for Ethical Organizations

With Values That Mirror Their Own

CSR Not in the Mindset of Executives

CSR & Sustainability: Not Strategic

Strategic CSR & Sustainability Pays...

•Johnson & Johnson: By investing in employee wellness, have saved the company $250 million on health care costs in the past decade.

•Vodafone M-Pesa: Created a service which allowed microfinance borrowers to conveniently pay loans: 14 million customers in 2011 & $136 million revenues

•World Economic Forum: Report highlighted the 3.7 billion people at the BOP who are largely excluded from formal markets. This group, earns an annual income of US$ 2.3 trillion a year that has grown at 8% in recent years, representing a substantial growth opportunity.

•Harvard Business School Study: Investing $1 in the beginning of 1993 in a value-weighted (equal-weighted) portfolio of sustainable firms would have grown to $22.6 ($14.3) by the end of 2010, based on market prices. In contrast, investing $1 in the beginning of 1993 in a value-weighted (equal-weighted) portfolio of traditional firms would have only grown to $15.4 ($11.7) by the end of 2010.

•MIT: Research on responsible and irresponsible environmental behavior by U.S. publicly-traded companies from 1980 to 2009 found that companies experienced an average abnormal stock price increase of 0.84% in the two days following an announcement of eco-friendly behavior. Likewise, investors punished companies for eco-harmful events with a corresponding abnormal return of -0.65%.

•Examples abound: Real Estate...Eye Care Fund...GE...Charlotte Airport

Employees Unanimously Agree CSR & Sustainability

Increases Motivation & Pride of Association

Yet, the #1 CSR & Sustainability Driver is

Moral Responsibility

Sustainability Reporting Trends

Organizations Fail to Monitor CR&S Performance

Regional Distribution of 2011 GRI Sustainability

Reports

The statistics are from the Sustainability Disclosure Database and include information as at 19 April 2012. The Database can be accessed freely at http://database.globalreporting.org. The Database includes sustainability/Integrated reports that GRI is aware of through its Data Partners, the GRI Application Level Check process, registration forms and internet searches. GRI cannot guarantee that the information is accurate or complete. All reports included in these statistics are GRI reports (based on the G3 or G3.1 Guidelines and include a GRI Content Index) unless specifically stated otherwise.

Africa 3% Oceania

5%

North America 14%

Latin America 14%

Asia 17%

Europe 47%

Relative  changes  –  compared  to  2010: Europe 3%  increase Asia 3%  decrease Latin  America 1%  decrease North  America 1%  increase Oceania No  change Africa No  change

Regional  distribution  of  2011  GRI  Reports

Source: GRI Reporting Trends 2011 Report

0

12.5

25

37.5

50

2007 2008 2009 2010 2011 2012

Bahrain EgyptJordan KSAKuwait OmanPalestine QatarUAE

GRI Sustainability Reporting Trends in MENA

Survey Says: Government Should Support CSR

Survey Says: Private Sector Should Play a Role in Social

Development

How Important Will Sustainability Be in 21st Century?

"The Stone Age came to an end not for a lack of stones and the oil age will end, but

not for a lack of oil.”--Ahmed Zaki Yamani

SMEs Don’t Know How to Apply CSR & Sustainability

Collective Impact

Collective Impact

Private Sector

Companies

Media

NGOs

Government & Regulatory

Bodies

Activists & Citizens

Professional Associations

Questions & Discussion