Different stakeholder groups have different standards when it comes to CR. The same individual can have multiple stakeholder relationships with a single company on the same day. And apply different values to that one company, depending on the moment. If we could help stakeholders to see the inconsistencies in their own value judgments we would be making a start at closing that gap.
We should engage employees because they are a key stakeholder group. They have the primary impact on the performance of the company in any particular corporate responsibility pillar and they have an impact through their actions outside of the workplace. We will look at engaging at the leadership level and integrating sustainability with the business.
sustainability as a profit centerA new Aberdeen report serves as a roadmap for those attempting to match environmental and social stewardship to clear, actionable, and measurable improvements to their bottom lines – thus ensuring the sustainability of their business ecosystem.
There’s been a lot of discussion about elevating corporate responsibility to become a strategic driver of your business. Most companies would like to benefit from their ethical efforts in the form of increased customer attraction and loyalty, yet few have figured out how to do it successfully. When marketing and PR are relied on, it can often backfire in accusations of greenwashing. The secret is to apply brand-strategy principles to build your ethical reputation.
Your company has been progressing nicely up the sustainability curve from compliance to cost savings. The next logical step is reputation and revenue generation, and itʼs here that many sustainability pros hit a roadblock. Without a CEO mandate, business units usually have little incentive to deviate from whatʼs been working in the past. Sustainability and CSR initiatives have safely been tucked away behind the scenes, dealing with internal and supply chain issues that reduce risk and cost to the business. Objections to customer-facing sustainability initiatives range from “Why put our neck out and riskgreenwashing charges?” to “Itʼs still a niche market” and “Why would we promote our values for commercial ends? Weʼre doing this because it’s right, not to make money from it.”
So you wrote a CR report! Big deal! What next? Make it BUZZ. The thing about writing CSR reports is that they take a helluvalotta energy. The reporting process takes months, involves many internal and external stakeholders, and creates a reporting frenzy in the organization which bypasses none but the most unengaged employees. In theory, that is. Sometimes reporting is an intensive process for a just small group of individuals in the organization. Whatever the format, it’s intense. There’s a build-up. A deadline. Many hurdles to defuse. (is that as mixed metaphore?) Then. It happens. You send the report to print (or upload it to your fancy new html flash mini-site for viewing by the general public) and that’s it. B-I-G sigh of relief. Mop your brow. Stare into space and feel the release. Off to the bar for a celebratory drink. Sit back and wait for the compliments to start flowing in. I suspect this is how it happens in most organizations.
“Metrics, metrics and more metrics. In many ways metrics drive the success of business. Multiple variables can be condensed to the common denominator of dollars and cents, pounds and pence. Many business failures could have been avoided for want of a business case. But, the specificity of metrics also allow us to persuade ourselves that there is more science and more certainty than there may really be and that we fully understand the complex interactions of the real world. There are solid business cases behind some of the most spectacular business failures – perhaps those where metrics were allowed to lead decisions rather than inform them.
Boards of directors are increasingly paying attention to the risks and opportunities associated with corporate responsibility, sustainability and climate change, according to a new survey commissioned by Deloitte and Corporate Board Member magazine. The survey of 220 directors at U.S. companies with $1 billion or more in revenue highlights the board’s growing role in oversight of corporate responsibility and sustainability (CR&S). Despite the current economic environment the board’s role is undoubtedly increasing as there is greater awareness of the business risks and opportunities associated with corporate responsibility, sustainability and climate change. The perfect storm of emerging regulations, increased requirements for reporting and transparency, heightened pressure from investors, energy price volatility and market demands for green products and technologies is driving CR&S as a business imperative.
Corporate responsibility, long seen as the preserve of companies in developed economies, is gaining ground in developing countries according to a review of ESG practices in 40 large emerging market companies – a new report published by Sustainable Investment Research Analyst Network (SIRAN), a working group of the Social Investment Forum (SIF).
SIRAN has partnered with global sustainable investment specialists EIRIS to assess 40 leading companies in ten emerging markets against key environmental, social and governance (ESG) criteria, including indicators on board practice, bribery, human rights, labor standards in the supply chain, health and safety, environment, climate change and biodiversity. Countries assessed in the study include Brazil, China, India, Indonesia, Israel, South Korea, Malaysia, Mexico, Russia and South Africa.
