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Cranfield University 12 June 2007
Corporate Responsibility Index
To help companies integrate corporate responsibility across the business
Sponsored by
What we will cover today
Introduction to Business in the Community
BITC’s Corporate Responsibility Index in detail
- what is the CR Index?
- the CR Index model?
What makes a Company that Counts?
Our Crossroads!
Discussion Themes – HOW TO BENCHMARK…
• Changes in business model that promote/deliver step change towards CR/sustainability?
• Whether companies have a plan to deliver CR change – beyond incremental target setting?
• “Beyond Compliance” – rewarding opportunity seeking/innovation?
Set up in 1982 by business for business
Over 750 companies in membership (> 70 of FTSE100)
Over 2,000 engaged through a network of 90+ global partners
Mission:
To inspire, engage, support and challenge companies to continuously improve their impact on society and the environment
Business in the Community
Business in the Community
INSPIRE Providing platforms for companies to share best practice, communicate their commitment to CR and inspire others to do likewise.
ENGAGE Helping companies to work collaboratively to achieve
maximum social impact in the most deprived areas.
SUPPORT & CHALLENGE Through a range of services that help companies integrate corporate responsibility across their business functions.
What is the CR Index?
Management tool for integrating CR
Framework for a systematic approach to managing, measuring and reporting social and environmental performance
Benchmark for comparing a company’s management processes and performance with those of others in the sector/Index
Method for engaging board members and raise awareness of CR risks and opportunities
Communication tool with external stakeholders
The Index Modeland 2006 average scores
Corporate Strategy
93%
Integration 86%
Performanceand Impact
Management 88%
Community
Marketplace
Workplace
Environment
Assurance process
3 Env Impacts: 79%
3 Social Impacts: 84%
Index questions
Corporate Strategy Integration
Performanceand ImpactManagement
Values
CR principles
Leadership
Advocacy
Risk mgmt
Policies
Integration of principles
Business conduct
Performance mgmt
Remuneration systems
Strategic decision-making
Training & development
Senior training
Stakeholder engagement
Reporting
Key issues
Objectives/ targets
Allocation of responsibilities
Training/ support
Internal monitoring and reporting
Measuring and reporting
Scope of data
Quality of data
Target setting
Performance improvement
Key themes throughout the Index
• Processes for managing risks/opportunities
• Allocation of core responsibilities
• Approach to stakeholder engagement
• Level of transparency and disclosure
• Continuous improvement
What the 2006 Index is telling us
• Increased transparency and accountability
Sainsbury’s
• Starting to see CR more of an opportunity rather than a risk
Marks & Spencer, Lafarge
Key findings by impact area
CommunityKey challenge remains linking community investment to core products and services.
Diageo, FSA
EnvironmentClimate Change key for all and forever.Not just about electricity consumption.Increased focus on indirect impacts.
BskyB, B&Q, F&C Asset Management
MarketplaceRefocused stakeholder engagement.Supply chain remains biggest area for improvement.
Camelot, Rio Tinto, Kingfisher
WorkplaceIncreasing focus on recruitment + retention. More emphasis on health & wellbeing.
Morgan Stanley, National Grid
What makes a ‘Company That Counts’
= leadership and commitment at the highest level
= policies to ensure responsible behaviours across the business
= CR issues integrated into strategic decision making,
= objectives and targets set to drive continuous improvement
= clear responsibilities defined at all levels
= effective communication to share learning and knowledge
= training for relevant staff to ensure delivery of objectives
= process for stakeholder consultation and engagement
= monitoring systems to assess and report progress
= public reporting of key issues, targets and performance
= willingness to disclose information and share best practice
At a Crossroads
• The Index isn’t encouraging step-change in thinking or action
• The Index provides a “comfort blanket”– with a focus on historical data & incremental change
• The Index is encouraging a risk based approach not an opportunity driven one
Discussion Themes – HOW TO BENCHMARK…
• Changes in business model that promote/deliver step change towards CR/sustainability?
• Whether companies have a plan to deliver CR change – beyond incremental target setting?
• “Beyond Compliance” – rewarding opportunity seeking/innovation?