FMA International: R Boller
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Transcript of FMA International: R Boller
Jackson Family Wines
How to Make Sustainability Management Integral to Your
Organization
Presented February 3, 2010 by Robert Boller
What is Sustainability?
Planning and activity that takes into account the long-term maintenance and well-being of environmental, social and economic demands.
Sustainability
Workplace
Community
Economic
• Energy & Water• Recycling & Waste• Land Use
• Health & Safety• Welfare• Diversity
• Integration with society
• Philanthropy
• Customer satisfaction• Competitive &
profitable• Cost Savings
Corporate Social Responsibility (CSR)
What is Sustainability?
Environment
CSR Management:
Work in tune with corporate goals
Justify the CSR program
Bring invaluable improvements / insight to your operation
Maintain momentum with job cuts and budget tightening
Strategy / Objectives
CSR Management: Tactics
3. Build momentum and maintain relevance: Resource maximization
2. Provide value to multiple stake holders: Extend reach - embedded throughout organization
1. Establish the sustainability mission:Leadership to gain the competitive edge
4. Persistent Communication: Be the information resource to each unique audience
Establish the Sustainability Mission: Leadership
Demonstrate leadership to gain marketable benefit now
Help transform how the organization thinks about itself and it’s objectives
Build the case through focusing on data and case studies
Don’t reinvent the wheel, use information from leading companies and markets (domestic and international)
Access to 23,000 CSR reports: http://www.corporateregister.com
Dive deep for trends, competitive claims, independent research and third-party certifications
Source: Corporate Register, Corporate Climate Communications Report 2008
1992
1994
1996
1998
2000
2002
2004
2006
2008
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
EnvironmentSocial / CommPhilanthropyEnv / H&S / CommEnv / H&SEnv / SafetySustainability
Reporting Types: H&S -> Environ -> Sustainability
Reporting Trends
Source: KPMG International Survey of Corporate Responsibility Reporting 2008
Companies have CSR reporting (52% in 2005)80%
U.S. Companies have CSR reporting (37% in 2005)74%
Management systems based on third-party standards & metrics77%
Study of 2,200 Leading Global Companies including Fortune G250 and N100 across 22 countries
Implemented ISO 1400151%
The question has shifted from “Who’s Reporting” to “Who’s Not Reporting?”
CSR Management: Tactics
2. Provide value to multiple stake holders Extend reach - embedded throughout organization
Cost Savings
Government Relations
Market Share Improvement
Shareholder Value
Supplier Relationships
Risk Management
Employee Productivity
Innovation & Learning
Reputation or Brand
Economic Considerations
Ethical Considerations
0% 10% 20% 30% 40% 50% 60% 70%
17%
21%
22%
29%
32%
35%
52%
55%
55%
68%
69%
CSR Business Drivers
Source: KPMG International Survey of Corporate Responsibility Reporting 2008
CSR Business Drivers
Corp. Gov.
Marketing / PR Sales
FinanceOperations
Sr. Exec. Team
The most effective projects provide value to multiple stake holders
Communicate the personal benefit to each audience
Embedded throughout organization
Corp. Governance
Marketing / PR Sales
Finance
Operations
Sr. Exec. Team
Source: Natural Marketing Institute 2007
Consumer Purchasing Drivers
• Have rewarded companies with sustainable practices through purchase
46%
• Have punished companies with non-sustainable practices through non-purchase
55%
Producer not Product
Top Three Drivers
Pre-Recession Now Post-Recession0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
35%47%
33%
42%32%
37%
23% 21%30%
GreenQualityPrice
Source: JWT & Penn, Schoen, Berland & Associates 2009: Top 3 Drivers
Consumer Purchasing Drivers
Source: Cone Communications, Natural Marketing Institute, WSJ 2007(MonsterTrak ), Stanford Univ. 2003, Deloitte 2008
Employee Recruitment
• Of all workers would prefer to work for a sustainable company
77%
• Of recent graduates would prefer to have a job with a direct positive impact
80%
• Of recent graduates would prefer to work for sustainable company92%
• Average salary MBA graduates would sacrifice to work at socially responsible firm
$13,700
• Of companies have implemented CSR programs to increase ability to attract talent
93%
Source: Deloitte 2008 , Society for Human Resource Management 2009, Kenexa Research Institute 2007
Employee Productivity & Retention
• Of companies found increased morale due to implementing a CSR program
46%
• Of companies improved employee health due to implementing a CSR program
75%
• Of companies found improvement in workforce productivity due to CSR
87%
• Of all employees have higher willingness to stay at a company with strong CSR culture
60%
• Of companies have implemented CSR programs for greater employee retention
81%
• Increase in employee productivity due to implementing a CSR program
2%
CSR Direct Benefits
Energy Use (reduction)30%
Water Use (reduction)40%
Solid Waste (reduction)60%
Worker Productivity (increase)2%
Employee Turnover (reduction)25%
Compliance Violations (reduction)70%
Standard Results Forecast
$4M
$1.5M
$500K
$3M
$1.5M
$500K
Total $11M
CSR Direct Costs
Employee Costs
Facility/BUs Local Projects Support
CRS Mgmt Systems / Consulting
Certifications (LEED/ISO 14001)
Renewable Energy Certificates
$500K
$500K
$250K
$100K
$150K
Total $1.5M
Standard Results Forecast
CSR Cost / Benefit
Direct Benefits
Direct Costs
Total
YR1
YR2
YR3
$1.5M $1.25M $1M
$5.5M $11M $12M
$4M $9.75M $11M
100%
100%
Direct Benefits
Direct Costs
-33%
+33%
Total $1.63M $5.6M $6.6M
$2M $1.66M $1.33M
$3.63M $7.26M $7.92M
CSR Cost / Benefit
Direct Benefits
Direct Costs
Total
YR1
YR2
YR3
$1.5M $1.25M $1M
$5.5M $11M $12M
$4M $9.75M $11M
Indirect Benefits?
PR Value (existing program) $1.5M
Brand Equity/Loyalty/Trial $10M Gross Revenue
50%
2%
CSR Recession Trends
Source: GlobeScan October 2009, organizations with existing CSR programs
CSR Budget
Communications
Demonstrate ROI
0% 20% 40% 60% 80% 100%
50%
66%
73%
47%
30%
19%
3%
1%
8%
IncreaseStay SameDecrease
Managing Through Job Cuts and Budget Tightening
CSR Recession TrendsManaging Through Job Cuts and Budget Tightening
Focus on projects with strong ROI
Utilize resources outside the budget
Internal resources:• Find “partners” in other departments who can offer time• Use the opportunity to strengthen the CSR teamExternal resources:• Government support and funding• Utilize consultants to reduce headcount• Programs with trading partners who have funding• Build alliances with the competition to pressure suppliers
CSR Recession TrendsManaging Through Job Cuts and Budget Tightening
Work on projects that take time, but not money
• Enhance skill base with training and personal certifications• Develop the structure for 3rd-party certification (ISO
14001/LEED)• Develop CSR Report outline and other communications
pieces• Demand response program for energy curtailment with no
cost and good payments
CSR Management: Tactics
4. Persistent Communication: Be the information resource to each unique audience
Persistent Communication
Once the program catches on, if your not talking about it -others will do it for you
Broadcast the successes, project status updates and sustainability mission to all employees over and over
Focus on opportunities with stakeholders
Corp. Governance
Marketing / PR Sales
Finance
Operations
Sr. Exec. Team
Don’t be the “green” guy or gal:• Focus on added value• “Greening the planet and our bottom line”