Cranfield University 12 June 2007 Corporate Responsibility Index To help companies integrate corporate responsibility across the business Sponsored by

What we will cover today  Introduction to Business in the Community  BITC’s Corporate Responsibility Index in detail -what is the CR Index? -the CR Index model?  What makes a Company that Counts?  Our Crossroads!

Discussion Themes – HOW TO BENCHMARK… Changes in business model that promote/deliver step change towards CR/sustainability? Whether companies have a plan to deliver CR change – beyond incremental target setting? “Beyond Compliance” – rewarding opportunity seeking/innovation?

Set up in 1982 by business for business Over 750 companies in membership (> 70 of FTSE100) Over 2,000 engaged through a network of 90+ global partners Mission: To inspire, engage, support and challenge companies to continuously improve their impact on society and the environment Business in the Community

INSPIRE Providing platforms for companies to share best practice, communicate their commitment to CR and inspire others to do likewise. ENGAGE Helping companies to work collaboratively to achieve maximum social impact in the most deprived areas. SUPPORT & CHALLENGE Through a range of services that help companies integrate corporate responsibility across their business functions.

What is the CR Index? Management tool for integrating CR Framework for a systematic approach to managing, measuring and reporting social and environmental performance Benchmark for comparing a company’s management processes and performance with those of others in the sector/Index Method for engaging board members and raise awareness of CR risks and opportunities Communication tool with external stakeholders

The Index Model and 2006 average scores Corporate Strategy 93% Integration 86% Performance and Impact Management 88% Community Marketplace Workplace Environment Assurance process 3 Env Impacts: 79% 3 Social Impacts: 84%

Index questions Corporate Strategy Integration Performance and Impact Management Values CR principles Leadership Advocacy Risk mgmt Policies Integration of principles Business conduct Performance mgmt Remuneration systems Strategic decision-making Training & development Senior training Stakeholder engagement Reporting Key issues Objectives/ targets Allocation of responsibilities Training/ support Internal monitoring and reporting Measuring and reporting Scope of data Quality of data Target setting Performance improvement

Key themes throughout the Index Processes for managing risks/opportunities Allocation of core responsibilities Approach to stakeholder engagement Level of transparency and disclosure Continuous improvement

What the 2006 Index is telling us Increased transparency and accountability Sainsbury’s Sainsbury’s Starting to see CR more of an opportunity rather than a risk Marks & SpencerMarks & Spencer, Lafarge

Key findings by impact area Community Key challenge remains linking community investment to core products and services. Diageo, FSA Environment Climate Change key for all and forever. Not just about electricity consumption. Increased focus on indirect impacts. BskyB, B&Q, F&C Asset Management Marketplace Refocused stakeholder engagement. Supply chain remains biggest area for improvement. Camelot, Rio Tinto, Kingfisher Workplace Increasing focus on recruitment + retention. More emphasis on health & wellbeing. Morgan Stanley, National Grid

What makes a ‘Company That Counts’ = leadership and commitment at the highest level = policies to ensure responsible behaviours across the business = CR issues integrated into strategic decision making, = objectives and targets set to drive continuous improvement = clear responsibilities defined at all levels = effective communication to share learning and knowledge = training for relevant staff to ensure delivery of objectives = process for stakeholder consultation and engagement = monitoring systems to assess and report progress = public reporting of key issues, targets and performance = willingness to disclose information and share best practice

At a Crossroads The Index isn’t encouraging step-change in thinking or action The Index provides a “comfort blanket” – with a focus on historical data & incremental change The Index is encouraging a risk based approach not an opportunity driven one

Discussion Themes – HOW TO BENCHMARK… Changes in business model that promote/deliver step change towards CR/sustainability? Whether companies have a plan to deliver CR change – beyond incremental target setting? “Beyond Compliance” – rewarding opportunity seeking/innovation?

How do we benchmark… Changes in business model