Making CSR Happen

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Making CSR Happen

• ICC, Birmingham
• 11 December 2006

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Session Plan

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

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(No Transcript)
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Purpose of Report

• Sponsors
• DTI CSR Academy
• CIPD
• Objectives
• Links between CSR and people management
• Assist HR practitioners
• Show how CSR enhances business

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Report Participants
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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

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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

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CSR Drivers
Non Governmental Organisations
Media
Government
CSR
Investors
Consumers
Employees
Suppliers
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CSR in Context

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

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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

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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

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Case Study Examples

• Accenture Development Partnership
• ARM Holdings
• AstraZeneca
• British Gas
• Smiths Group

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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

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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

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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

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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

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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

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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

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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

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

• Making CSR happen the contribution of people
  management
• www.cipd.co.uk/Bookstore/catalogue/research
• Link via www.thevirtuouscircle.co.uk
• DTI CSR Academy
• www.csracademy.org.uk
• My contact details
• iredington_at_the virtuouscircle.co.uk