Transcript Corporate Responsibility Index

Patrick Mallon
Creating change through Collaboration & Partnership
22 May 2007
We are
Unique movement of 750+ member
companies
Our purpose INSPIRE, CHALLENGE &
SUPPORT, business to continually
improving its positive IMPACT on society
Together our members employ 14.7 million
people across 200 countries. In UK
members employ over 1 in 5 in the private
sector workforce
25 Year’s – In Partnership
Partnership is at the heart of BITC
Partnership underpins Membership
3 Membership Commitments
= Inspire, innovate & lead by sharing learning & experience
= Impact on key social issues through collaborative action in
areas of greatest need
= Integrate, manage & measure responsible business
BITC’s brand of Partnership
All our major campaign areas driven by
Leadership Teams.
All initiatives developed in partnership with
Business
Product development done in partnership - Examples include the Environment Index
and CR Index and Leadership Matrix tool
BITC Impact - 2006
250 companies involved in BITC
Leadership Teams
877 Business Leaders involved in “Seeing
is Believing”
8,000 participants in events
829 companies took part in BITC
Benchmarking
BITC Impact - 2006
29,343 people volunteered in schools & communities
1,665 volunteers partnered young people on our “Number
Partner Programme”
800+ professional firms completed 1,600 pro bona
projects & provided £2.3m worth of advice to 1,300 local
community groups
324 companies helped to save 14,000 tonnes of CO2 &
cut costs by nearly £1.8m
Critical Success factors – Partnership on the
Ground
Leadership & ownership by the private sector
Numbers of businesses involved
Senior leadership
Shared objectives/mutual benefit
Dedicated brokerage/project management
Strong local management structures
Task focused projects
Clear evaluation processes in place
Flexibility and ability to change
TOOLS - CR Index contributing to change
Greater emphasis of CR as a source of competitive
advantage - Leaders moving from Risk to Opportunity.
Board-level ownership more prevalent & visible.
Further progress in systems & programmes to
incentivise, train & communicate with employees.
More companies involving stakeholders in identifying
risks, opportunities and performance indicators.
TOOLS - CR Index contributing to change
More evidence of social & environmental
issues influencing decision making – on
new investments; development of new
products & services (But often isolated
examples)
Trend of public disclosure continuing
Tools - Areas for improvement
Limited forward-looking commitments – outlooks rarely extend
beyond the year ahead.
Supply-chain management a key area for improvement
Demonstrating continuous improvement in social and environmental
impact proving an enduring challenge.
Only 2 in 5 companies have company wide assurance processes
Climate Change - companies still focusing their efforts on
incremental yearly improvements.
Tools – Going Beyond the CR Index Leadership Matrix (KPIs)
Attained
CR Index
practice
Strategy:
• Leadership &
advocacy
• Risk management
process
• Stakeholder
engagement
• Input to business
planning
Integration:
• (Strategic) decision
making
• Performance
mangt &
remuneration
• Training &
development
Current leadership practice
Future leadership practice
•KPIs based on Materiality, Risk
& Strategy
•Assessment of CR risks based
on “likelihood of risk happening
vs financial impact to business
over 3 year period”
• CR issues aligned with
stakeholder engagement
•CR Strategy & Business strategy
operates as one.
•CR risks appear on overall business
risk registrar.
•CR risks/opportunities central to the
long-term (strategic) planning of the
business (longevity/sustainability).
•Senior management have nonfinancial KPIs in personal
scorecard & remunerated
accordingly.
•Governance of KPIs operates
within a framework which ties
day-to-day issue owners to
senior managers.
•Robust materiality process in
place
•Strategic business decisions
delivering market transformation
through addressing route cause –
e.g a company’s contribution to “low
carbon economy”
Tools – Going Beyond the CR Index Leadership Matrix (KPIs)
Attained CR
Index
practice
Management:
• Performance
targets
• Measurement
• Performance
reporting
(internal/external
)
Impact:
• Performance
improvement
• Effecting wider
change
(‘influencing the
future’)
Current leadership practice
Future leadership practice
•Small number of indicators.
•Performance improvement targets
linked to stakeholder groups –
Customers, Employees, suppliers,
communities etc.
•Report only on issues significant to
company & to stakeholders &
society.
Targets focusing more on
opportunity than risk.
•Measurement & reporting of
transformational change in
business model & performance.
•Step change rather than
incremental.
•Forward looking rather than
historical.
KPIs bolster business KPis.
•Year-on-year performance
improvement.
•Numerical & time-bound targets.
•Performance improvement that
delivers measurable value to
business and society.
•A company’s contribution to “low
carbon economy” and its
contribution to business’s
sustainable economic growth.
•The bar is set for others to follow.
Most Recent Partnership
HRH The Prince of Wales - May Day
Climate Change Summit
Partnership between BITC, Carbon Trust,
Envirowise, Regional Development
Agencies & Business
Pledges to Action by Business
www.bitc.org.uk