CSR, Sustainable Business and Strategy

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Toby Webb, Founder, Ethical Corporation and Stakeholder Intelligence Lecturer, Corporate Responsibility, Birkbeck College, University of London [email protected] / tobywebb.blogspot.com Companies integrating CSR into business strategy: Some case studies October 2012

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Presentation given to Mumbai business audience October 2012 at conference held by the Indian Centre for CSR

Transcript of CSR, Sustainable Business and Strategy

  • 1. Companies integrating CSR into businessstrategy: Some case studiesOctober 2012Toby Webb, Founder, Ethical Corporation and Stakeholder IntelligenceLecturer, Corporate Responsibility, Birkbeck College, University of [email protected] / tobywebb.blogspot.com

2. Marks & Spencer Plan A 3. Marks & Spencer Plan A (2007)Goal: Worlds most sustainable major retailerPlan A: 180 environmental/ethical commitments by 2015Focus: Climate change, Waste, Natural resources, Health andbeing a Fair partner Cost neutral/positive Award winning Growing customer trust Now launching new products and campaigns: Energy,customer loyalty (Shwopping) 4. Unilever Sustainable Living Plan (2010) Ten year journey towards sustainable growth with 50 targets Aim to bring safe drinking water to 500 million people 2011: Increased the proportion of portfolio that meets highestnutritional standards from 22% in 2010 to 25% in 2011 Aim: Halve the greenhouse gas impact of products across thelifecycle by 2020 2020 aim: Source 100% of agricultural raw materialssustainably Sustainably sourced raw materials increased from 14% in 2010 to24% in 2011 5. Golden Agri Resources and Palm Oil 6. Golden Agri Resources and Palm Oil (2010) March 2010 Nestl dropped Golden Agri-Resources (GAR) as supplier of palm oil after Greenpeace campaign Collaboration with The Forest Trust won Nestles business back with partnership and plan towards sustainabilityKey steps: Forest Conservation Policy goes beyond RSPO demands Adapted supply chain to allow Nestl to get guaranteed Palm oil from a particular plantation Move towards direct traceability for the Palm Oil industry is a firstGARs shares rose 3% after the announcement by Nestl"GARs sustainability commitments are now the strongest in the palmoil industry Greenpeace 7. Timberland and Earthkeepers 8. Timberland and Earthkeepers (2007) 2007 looking "desperately" to try and grow the business Developed successful "Earthkeeper" line of footwear and apparel Designed with a core philosophy of environmental stewardship Objective: "make our values valuable" : Mike Harrison, ChiefBrand Officer Earthkeepers product line is now 10% of sales Gone from one boot in 2007 to entire line sold around the world: Engaged heavily with customers online and using social media 9. Skanska and greener construction 10. Skanska and greener construction (2009) Empire State building: Ambitious $500m renovation plan,paid for with savings from deep green retrofit Skanska: 57% reduction in energy consumption.Reduction of 15-18% employee absenteeism Renovation costs recouped in as little as five years By 2015: Buildings owners say they are confident they willsave $4.4m a year: A 38% reduction of energy use Development business unit focusing on green: 10% of thecompanys overall $17bn annual revenues, 1% deep green 11. Vodafone in Turkey 12. Vodafone and Turkish Farmers (2011)Vodafone/ Accenture 2011 research: Mobile-based agri services could boostagricultural income by $34bn by 2020Vodafone Farmers Club offers special rates & info to farmers: Mobile tech toimprove incomes & increase efficiency/sustainability 500,000 signed up to the Farmers Club so far. Participating farmers haveincreased productivity by about 100mSMS alerts with government information on: New regulations and financial support Weather forecasts Market price quotes linked to location and productionPartnership with Sekerbank: Farmers pay mobile phone bills post-harvest,annually. Benefits to Vodafone: Customer loyalty, mass revenue streams 13. Conclusions CSR/Sustainability/Responsible business = Smarterbusiness Consumers want to trust brands, not products Leading companies turning CSR into opportunity all overthe world: New products / motivated people / cost savings It is early days! But 9 billion people means less resourcesand innovation will be essential: CSR = risk reduction Corporate roles in changing inefficient systems will be vital:The winning companies recognise CSR is systems change 14. Further resourcesThe Smarter Business Blog: tobywebb.blogspot.comEthical Corporation: www.ethicalcorp.comEabis.org / Caseplace.org / Harvard Kennedy School CSRInitiative: http://www.hks.harvard.edu/m-rcbg/CSRI/Doughty Centre for Corporate Responsibility:http://doughtycentre.infoMIT/Sloan Management Review:http://sloanreview.mit.edu/innovation-hubs/sustainability/