Corporate Social Responsibility

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Frameworks for Implementing TBL Programs
Presentation to National Executive Forum on
Public Property April 29, 2004 Toronto, ON
By George Khoury
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Presentation

• About the Conference Board
• What is CSR, SD and TBL
• Why organizations should pay attention
• TBL Framework examples
• Reporting trends and outlook
• CR Assessment Tool

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About the Conference Board

• The Conference Board builds leadership capacity
  for a better Canada by creating and sharing
  insights on economic trends, public policy, and
  organizational performance

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Sustainability

• to meet the needs of the present without
  compromising the ability to meet the needs of the
  future
• Ecological focus. More recently, social aspects
  considered through TBL

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Corporate Social Responsibility

• Most definitions of CSR address two fundamental
  aspects of business practice
• 1. a companys relations with its stakeholders
• 2. a companys engagement with, and impacts on
  society, environment and the economy

www.conferenceboard.ca
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Why Should Companies bother

• It is good for business to be good
• Changing public expectations
• Evolving role of business

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Business Case for CSR

• Value Creation
• Reputation
• Competitiveness
• Employee Relations
• Risk Management

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Why Should Companies bother

• It is good for business to be good
• Changing public expectations
• Evolving role of business

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To Be Socially Responsible a Large Company Has to
Go Well Beyond What Laws Require (Canada 2002)
Depends/DK/NA (5)
Strongly disagree (3)
Somewhat disagree (13)
Strongly agree (35)
Somewhat agree (43)
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Expectations are high
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Why Should Companies bother

• It is good for business to be good
• Changing public expectations
• Evolving role of business

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Role of Companies Who should be Responsible
for (Canada 2002)
Source Corporate Social Responsibility Monitor
2002, Environics International
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Global Economies
Country/ GDP/Sales Corporation ( millions)
Country/ GDP/Sales Corporation ( millions)
1. U.S.A. 8,708,870 2. Japan 4,395,083 5. U.K. 1,3
73,612 11. Mexico 474,951 14. Australia 389,691 23
. General Motors 176,558 24. Denmark 174,363 25. W
al-Mart 166,809
27. Ford Motor Co. 162,558 28. DaimlerChrysler 159
,985 29. Poland 154,146 31. Indonesia 140,964 37.
Mitsui 118,555 38. Mitsubishi 117,765 40. GE 111,6
30 42. Portugal 107,716
Sources Ranking based on corporate sales data
from Fortune, July 31, 2000, and GDP data from
the World Bank Development Report 2000 Mori
Research for Royal Dutch/Shell, 2000 Everybodys
Business Managing Links and Opportunities in
Todays Global Society.
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Why CSR in a Public Sector Context?

• Shifting boundaries
• Locality of issues and importance of local
  government
• Importance of social, environmental and economic
  in decision-making
• Communicating to stakeholders

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What Does CSR Mean in a Local Government Context?

• Objective - widening and deepening of CSR
• How
• Agent of change
• Catalyst of change

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Agent of Change

• Issues
• Philanthropy and Community involvement
• Volunteering
• Workplace health and safety (working conditions)
• Human rights
• Equality and diversity
• Corporate ethics (ethical business practices)
• Stakeholder engagement
• Sustainability (balancing eco dev with soc/
  envir issues)

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Catalyst of Change

• Issues
• Public-private partnerships (PPP)
• Procurement (contracting/ purchasing)
• Public consultation / Stakeholder engagement
• Pension fund advocacy

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From Why to How

• Confusion in the marketplace
• Need for process clarity
• Focus on outcome is key

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Triple Bottom Line

• The development of an integrated framework to
  achieve CSR and SD is known as the Triple Bottom
  Line approach

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TBL Reporting and Implementation Framework

• Reporting Process
• Services to community (external indicators)
• Internal management (internal indicators)
• Implementation Process
• Evaluation of the potential environmental,
  economic and social impacts associated with
  proposed projects or actions being considered by
  Council

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External Indicators

• Community indicators
• Economic Total city investment in Business
  incubation programs (target x)
• Social Rate of participation/engagement of
  residents in city funded community and cultural
  events/activities (target x)
• Environmental Total reduction of residential
  waste to landfill (target x)

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Internal Indicators

• Economic Achievement of financial plan targets
• Social Overall employee satisfaction
• Environmental Total reduction of energy
  consumption attributable to Council buildings

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Company CSR/SD Reports
Dofasco Inc. (steel)
TransAlta Corp. (utilities)
Royal Bank (financial services)
Suncor Energy (oil gas)
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More Canadian Companies are Reporting

• One Hundred companies reporting in 2002 v/s 57 in
  2000
• Top Canadian reporters include
• Suncor
• VanCity
• Hydro-Quebec
• Crown corporations are reporting more
• Government catching up Stratos 2003

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The Canadian Reporting Landscape

• Research
• CBOC Survey
• Stratos Survey
• Key Findings
• Range of issues being reported on Environmental
  reporting still leads the pack
• Some movement towards integrated SD/ Triple
  Bottom Line reporting
• Feeling their way--Gradual/ incremental
  approach to investment in reporting
• Not sure of how to navigate Code/ Standard
  landscape

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CSR Reporting Key Success Factors

• Corporate commitment to transparency and
  accountability
• Internal champion to drive the reporting
  process
• High internal awareness of the business case for
  CSR and TBL reporting
• Dedicated human resources - Get the right people
  to do the job
• Timeliness of information
• Regularity of reporting - You cant stop
  reporting
• Strong internal management frameworks and
  information systems - accurate, clear, consistent
  and meaningful data
• Stakeholder dialogue and involvement in the
  definition and development of KPIs
• Continuous improvement- build learning
  organizations

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Shells SD Management Framework
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Developing a Report Critical Questions

• Are stakeholders (internal/external) interested
  in the reports content? Is the content relevant?
  
• Can the report be understood by a non-technical
  audience?
• How can they benchmark good practice?
• Is the report believable?
• Are robust management/data collection/
  information systems in place to support
  reporting?
• Is the business case clear? What level of system
  development/reporting structure is most
  appropriate given your company size/operations?

Reports need to talk to issues that are close to
the reader
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Reporting Framework

• Mostly individualized reports/websites, but
  increasing alignment with international standards
  such as GRI, AA1000, Global Compact
• BUTmethodological issues around standardization
  vs company-specific issues
• CBOC CSR Benchmarking Framework

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The Corporate Responsibility Assessment
Tool (CR AT)
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Key Benefits

• Enables comprehensive self assessment against
  leading international CR benchmarks
• Centralized data base can easily generate custom
  reports for key external stakeholders eg MJRI
• Resource centre provides ongoing assistance for
  continual self improvement

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CR Assessment Tool Design

• Integrated framework, simplifies and digests
• Encourages and supports continual improvement
• Benchmarking and reporting capability
• Dynamic stakeholder consultative process to
  ensure relevance

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Pop up window for underlying codes
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User Feedback
The Co-operators Group Limited The tool prompted
me to think about areas I might not of
otherwise. I like the fact that once you got
used to the tool it was easy to
navigate. Petro-Canada A good comprehensive
electronic check list that will provide a useful
internal gap analysis as well as a comparison
against external codes
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THANK YOU

• khoury_at_conferenceboard.ca
• Tel [phone] ext 308