111124 EACD Presentation

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    1 - The missing link between strategic

    planning and CSR Policy2 - Compliance with CSR tools

    EACD : CSR & communicationworkshop

    11Yves GARENNE - November 2011

    [email protected] +33 6 12 32 49 94

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    THE MISSING LINK BETWEEN STRATEGIC

    PLANNING AND CSR POLICY

    1

    2

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    Process of disintegration

    Los indignados / occupy wall street

    Arabic spring IPCCs reports

    Subprime & debt crisis

    The water challenge

    Speculation on basic food

    4

    ???

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    Process of integration

    5

    International criminal court

    Organic food Increase of literate people

    Predominant roles of NGOs

    Starving for democracy

    New hopes

    New consciousness

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    New questions

    Whats the purpose of business ?

    Who can we rely on ?

    Are experts trustworthy ?Are products still reliable and healthy ?

    What do I buy ?

    To what extent is the supply chain sustainable ?

    What kind of future of Communication

    Directors ????

    6

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    The sequenceof the firm

    MarketanalysisMarketanalysis

    Needs

    Trends

    Opportunities

    Financial

    issues

    Financial

    issues

    Assetmanagement

    Shareholdervalue

    Product &servicedesign

    Product &servicedesign

    Sustainableproduct &services

    Innovation

    Humanresourcecapital

    Humanresourcecapital

    Skills

    Occupationalheath

    7

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    The 7S MacKinsey model

    8

    SharedvaluesSharedvalues

    SkillsSkills

    SystemsSystems

    StyleStyle

    StaffStaff

    StrategyStrategy

    StructureStructure

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    A survey (contd)

    0 10 20 30 40 50

    Every Week

    EveryMonth

    Every Quarter

    Every 6 months

    Annually

    Never

    Don't know

    How frequently does yourcompany plan to assess

    progress against its strategicplan this year ?

    10

    A new stakeholder

    management ?

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    What place for stakeholders ?

    11

    Company

    Criticalstakeholder

    Non criticalstakeholder

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    Who are the stakeholders ?

    12

    Company

    Company

    Staff

    Shareholder

    Customer

    Supplychain

    Competitors

    Competitors

    Bank /insuran

    ce

    Bank /insuran

    ce

    NGOsNGOs

    LocalGovernme

    nt

    LocalGovernme

    nt

    Sphere ofinfluence

    Shared values ?

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    The link between company and

    stakeholders

    Stakeholder

    Hopes Perceived

    threats

    Real or unrealrisks

    Wishes

    Requirements

    Stakeholder

    Hopes Perceived

    threats

    Real or unrealrisks

    Wishes

    Requirements

    Company

    Leadership Shared Values

    Vision

    Mission

    Products

    Services

    Company

    Leadership Shared Values

    Vision

    Mission

    Products

    Services

    13

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    Communication or transparency ?

    14

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    Stakeholder dialogue

    Communication

    Transparency

    Dialogue

    15

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    Strategic control

    16

    Management as usual

    Stakeholder dialogue

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    Stakes priority / stakeholderStakes priority / stakeholder

    How to do it ?

    17

    Vision, Mission, Shared values, Executives commitmentVision, Mission, Shared values, Executives commitment

    Stakeholder mapStakeholder map WhatWhats at stake? CSR SWOT?s at stake? CSR SWOT?

    Goals,Goals,objectivesobjectives

    indicatorsindicators

    PerformancePerformancemanagement reviewmanagement review

    Action planAction plan

    Implementation and followImplementation and follow--upup

    Internal and external reportingInternal and external reporting

    StakeholderStakeholder

    dialoguedialogue

    ActAct

    PlanPlan

    DoDo

    CheckCheck

    RegulateRegulateCommunication and transparencyCommunication and transparency

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    Expected outcomes

    From CPR to CSR ?

    C&PR : Communication & Public Relation CSR :Communication and Stakeholder Relations !

    From CRM to SRM

    Customer Relationship Management

    Stakeholder Relationship Management ?

    18

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    Old questions ?

    Responsibility and / or accountability ?

    Respondere in latin = to answer

    to stakeholder !

    Do you really want to be accountable on everyissue ?

    Remember that the 2 first critical stakeholders

    are : Staff internal communicationAnd the Shareholders !

    19

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    As a conclusion

    20

    CSR Policy

    StakeholderManagementStakeholderManagement

    OperationsOperations

    FinancesFinances

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    SR Definition

    ISO26000 social responsibility : responsibility ofan organization, for the impacts of its decisions

    and activities on society and the environment,

    through transparent and ethical behaviorthat :

    contributes to sustainable development includinghealth and the welfare of society;

    takes into account the expectations ofstakeholders;

    is in compliance with applicable law and consistent with

    international norms ofbehaviorand

    is integrated throughout the organization and practiced

    in its relationships

    21

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    COMPLIANCE WITH CSR TOOLS

    2

    22

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    CSR Toolbox

    23

    23Global Compact Network Belgium

    05/04/10

    RepositoryRepository

    GuidelinesGuidelines

    StandardsStandards

    ManagementManagementsystemsystem InsuranceInsuranceprotocolsprotocolsReportingReportingMethodologyMethodology

    CommitmentCommitment

    GRIGRI

    AA1000AA1000

    ISO14000, ISO22000,ISO14000, ISO22000,

    OHSAS18000...OHSAS18000...

    GlobalGlobal

    CompactCompact

    SA8000SA8000

    ISO26000ISO26000

    Afaq26000Afaq26000

    ILOILO

    OECDOECD

    Agenda 21Agenda 21

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    Compliance with CSR Tools

    1. GRI

    2. Global Compact

    3. ISO26000

    24

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    Global reporting initiative (GRI)

    25

    A reporting system based on the core issues of

    sustainable development : environment, social

    and governance (and occasionally culture)

    G1 : 1996

    G2 : 2002

    G3 : 2006, G3.1 : 2010

    G4 : 2013 ?

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    GRI

    Comprehensive set of guidelines

    Multi-stakeholder community

    Global credibility and acceptance

    Widely-used

    26

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    Reporting criteria

    Report contentMateriality

    Stakeholder

    commitmentContextual / boundaries

    Comprehensive

    Quality insurance

    Balance

    Benchmark

    Precision

    Timeliness (3 years)Reliability

    Clarity

    27

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    6 chapters

    EnvironmentEnvironment EconomicEconomic Human rightsHuman rights

    Labor

    practices anddecent work

    Labor

    practices anddecent work

    Product

    responsibility

    Product

    responsibility SocietySociety

    28

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    Application levels

    29

    NADMA for each

    indicator

    DMA for each

    indicator

    At least 10 At least 20All the core

    indicators (41)

    2929

    Management approachManagement approach

    Performance indicatorPerformance indicator

    C C+ B B+ A A+C C+ B B+ A A+

    + : third party audit

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    Whats not in the guidelines ?

    1. Do not choose GRI only for your CSR report

    GRI can be a lever for CSR internal controlling

    You need a robust Information System

    Management

    2. Be modest !

    Start with level C

    Do not create indicator addiction !

    3. You may decide do be an OrganizationalStakeholder (GRI-OS)

    30

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    SEC Warning

    These [GRI] and other reporting mechanisms canprovide important information to investors outside ofdisclosure documents filed with the Commission.Although much of this reporting is provided voluntarily,

    registrants should be aware that some of theinformation they may be reporting pursuant to thesemechanisms also may be required to be disclosedinfilings made with the Commission pursuant to existingdisclosure requirements.

    SECURITIES AND EXCHANGE COMMISSION(Commission Guidance Regarding Disclosure Relatedto Climate Change) 2 february 2010

    31

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    Compliance with CSR Tools

    1. GRI

    2. Global Compact

    3. ISO26000

    32

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    Global Compact

    A UN initiative backed by Kofi Annan

    Millennium Summit

    Clearly linked with MDGs Commitment to sustainability

    33

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    Global compact

    10 chaptersHuman Rights

    Principle 1: Businesses should support and respect the

    protection of internationally proclaimed human rights;

    and

    Principle 2: make sure that they are not complicit inhuman rights abuses.

    Labour Standards

    Principle 3: Businesses should uphold the freedom of

    association and the effective recognition of the right to

    collective bargaining;

    Principle 4: the elimination of all forms of forced andcompulsory labour;

    Principle 5: the effective abolition of child labour; and

    Principle 6: the elimination of discrimination in respect ofemployment and occupation.

    Environment

    Principle 7: Businesses should support a precautionary

    approach to environmental challenges;

    Principle 8: undertake initiatives to promote greater

    environmental responsibility; and

    Principle 9: encourage the development and diffusion of

    environmentally friendly technologies.

    Anti-Corruption

    Principle 10: Businesses should work against corruption

    in all its forms, including extortion and bribery.

    34

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    Global Compact

    Concept of COP (communication on progress)

    2 levels

    Basic COP Notable COP

    35

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    Basic COP

    Content

    Global compact implementation

    Ideally strategies and action plans

    Encouragement to use GRI guidelines

    Format Preferably, integrated in CSR report or annual report

    Written in the Stakeholders languages

    Web based COP are welcome

    Minimum requirements

    CEO Statement

    During the first 5 years : activities or policies for at least 2 of the 4 issues (human rights,labour, environment, anti-corruption)

    After 5 years : full implementation of the 4 issues. Otherwise youll have to explain

    Measurement of outcomes (targets, KPI, measure outcomes)

    36

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    Basic Cop (contd)

    Stakeholders

    A formal sharing with internal and external stakeholders

    Global compact

    1. Submit electronic version

    2.Acceptance

    3. Publication on GC website

    Deadline

    One year to publish the 1st COP

    Then 90 days, if necessary, to provide the missing information

    Sanctions Fail to meet the COP deadline => non communicating participants

    After one year of non communicating : publicly delisted

    37

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    Notable COP

    At least : basic COP requirements

    Statement for GC Support, at least 3 criteria among :

    CEO statement or chairman

    Statement is part of COP, not stand-alone

    Reasons and/or benefits for GC Support

    Statement is linked with major actions / outcomes in implementing the Global Compact principles

    and/or with major actions and outcomes in undertaking partnership projects.

    Description of active participation at UN Global Compact events or in local networks and/or

    support for the initiative was expressed in public interviews or public speeches

    Clear and detailed description of practical actions taken in

    implementing the UN Global Compact principles and/or inundertaking partnership projects in support of broader UN goals (a

    minimum offourcriteria must be met in this category).

    38

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    Notable COP

    Measurement of outcomes that allows for

    checking progress (a minimum offourcriteria

    must be met in this category).

    Reporting process ensures reliability, clarity

    and timeliness of information and includes

    stakeholder dialogue (a minimum ofthree

    criteria must be met in this category).

    39

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    Compliance with CSR Tools

    1. GRI

    2. Global Compact

    3. ISO26000

    40

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    ISO26000 Guidelines

    The story ofISO26000

    A COPOLCO demand to UN (2002)

    EU CSR white book

    ISO DIS (2005)

    Official Disclosure (Nov 2010)

    NOT a standard

    BUT guidelines

    Public and private organizations

    41

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    7 Core Subjects

    Human RightsHuman RightsLabor

    PracticesLabor

    PracticesEnvironmentEnvironment

    Fair operatingPractices

    Fair operatingPractices

    ConsumerIssues

    ConsumerIssues

    CommunityInvolvment and

    Devlopment

    CommunityInvolvment and

    Devlopment

    GovernanceGovernance

    42

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    7 SR Principles

    AccountabilityAccountability TransparencyTransparency Ethical behaviorEthical behavior

    Respect forstakekholder

    interest

    Respect forstakekholder

    interest

    Respect of rulesand laws

    Respect of rulesand laws

    Respect forHuman rightsRespect for

    Human rights

    Respect ofinternational

    norms ofbehavior

    Respect ofinternational

    norms ofbehavior

    43

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    As a conclusion

    GentlemenagreementGentlemenagreement

    GRIGRI

    GlobalCompact

    GlobalCompact

    ISO26000ISO26000

    44