Making CSR Happen ICC, Birmingham 11 December 2006

Session Plan Background to report CSR –What is it? –Its context –Why it is important –Making it happen Case studies Open session

Purpose of Report Sponsors –DTI CSR Academy –CIPD Objectives –Links between CSR and people management –Assist HR practitioners –Show how CSR enhances business

Report Participants AccentureBritish Gas ARM Holdings Ltd.BT AstraZenecaEDS B&QHBOS BAAPrudential UKIO BATSmiths Group plc

What is Corporate Social Responsibility? Many definitions and explanations Recognising impacts a business has on all aspects of its environment: –Economic –Social –Environmental AND the way it behaves toward them

Alternative Names for CSR –Corporate responsibility –Corporate citizenship –Sustainability –Betterworld (BT branded theme) What is important is not the name but the way an organisation deals with its impacts

CSR Drivers Government Investors Non – Governmental Organisations Consumers Employees Suppliers CSR employmentcustomers human rightsenvironment supplierscommunity Media

CSR in Context Most companies do some CSR –Support local charities/communities –Genuinely value their staff –Encourage volunteering –Cause-related marketing –H&S, environmental compliance Not just something for big companies –Although they more likely to report on it Should be important to all organisations

Why CSR is Important Enables organisations to focus on issues important to their business –Can give compliance a business focus Adds both tangible and intangible value Reduces risks to reputation Can offer competitive advantage Public sector and more companies now expect certain standards from suppliers

How to Make CSR Happen Recognise the impacts of organisation Know why CSR is important to business CSR and corporate strategy align Commitment from ‘the top’ Involve employees –Departmental and/or divisional champions Communicate Treat CSR as a business discipline

Case Study Examples Accenture Development Partnership ARM Holdings AstraZeneca British Gas Smiths Group

Accenture Development Partnership (ADP) Accenture is a global organisation ADP registered charity –Helps not-for-profit sector achieve their social and economic aims at reduced rates Benefits: –not-for-profits access consulting skills –employee development –employee perceptions and turnover

ARM Holdings Designs technology for digital products Board takes CSR seriously A key issue – recruiting engineers –Competitive market –Needed a competitive advantage Solution – build reputation of employer brand Actively communicate its standards into the engineering fraternity –Website –Magazine –Presentations

AstraZeneca Raising productivity through improved employee well-being Issue: raised level of stress-related symptoms AZ already felt had high CSR standards Introduced counselling support at work Result: – 50% reduction in stress-related illness –Reduction in claims from health insurance –Estimate improved productivity £0.7m and less time off £0.6m annually

British Gas – the Issues Employee volunteering to drive culture change in Cardiff –Call centre dealing with customer enquiries –Needed to become national sales centre –Staff increase from 650 to 2,300 in 3 years –Many other competitors for employees Job and customer satisfaction linked Two paid days a year for volunteering

British Gas – the Benefits Staff satisfaction rose Staff turnover dropped Community activity encouraged new employees Employee skill levels have increased Employees enable to take on new roles Now rolled out nationally

Smiths Group Need for a Code of Ethics for business –Most business involved public procurement –Need to be seen to be ethical –Critical for corporate reputation Critical to communicate across world Developed and launched Successfully embedded amongst staff

What are Key Messages? CSR is a generic –Applies to any organisation To be successful requires: –A clear strategy –Leadership –Commitment of employees Major beneficiaries: –Corporate reputation and risk management We use a route map to structure approach

The Virtuous Circle’s Corporate Social Responsibility Route Map Developing the company’s CSR values Identifying the company’s CSR impacts Developing the company’s CSR strategy Developing the CSR practice Communicating CSR values, strategy & outcomes Building Reputation Identifying the stakeholders Identifying business risks & opportunities Involve HO, Business Units & Stakeholders Know where you’re at Community Employment Environment Market- place Human Rights Management Stakeholder engagement Performance Measurement, Monitoring & Audit Business Relationships

Useful Information “Making CSR happen – the contribution of people management” – –Link via DTI CSR Academy – My contact details: virtuouscircle.co.uk