Professional Documents
Culture Documents
Escp2009-Csr Core v01
Escp2009-Csr Core v01
Escp2009-Csr Core v01
Agenda Day 1
17:00 Corporate Social Responsibility why care? PwC's Sustainability Services at a glance Sustainable development a new buzz-word, but what does it mean? Setting the scene what is at stake? The challenge for business what does it mean to your company? -- break --18:30 Examples & case studies: what if everything goes wrong? 19:15 Now its over to you CSR at European Agro Company (SimulEthik) 20:00 END
Agenda Day 2
17:00 Debrief previous session 17:30 Groups prepare for role play engaging stakeholders is not always an easy task 19:00 Role-play: Annual shareholder meeting of Greedman & Co 19:45 Conclusion and wrap-up 20:00 END
PricewaterhouseCoopers is a truly global organisation with member firm offices in 766 cities in 150 countries. 146,000 partners and staff More than USD 25.2 billion net revenues in 2007 (up by 10.5%)
Filename
SBS French practice is part of a global team with over 800 Environmental, Health & Safety (EH&S) / sustainability experts in more than 20 countries In France, about 40 EH&S and sustainability professionals Broad environmental / sustainability services offering Signatory to UN Global Compact PwCs global CEO was elected chairman of WBCSD (World Business Council for Sustainable Development)
Risque et conformit :
Due Diligences Evaluation des risques environnementaux Support laudit
Channel 1
Secteur Priv
Accompagner les dmarches
Oslo Brussels
Vancouver
London Paris
Amsterdam Prague Frankfurt Zurich Budapest Milan Bucharest Athens Beijing Tokyo Nicosia (Cyprus)
Madrid
New Delhi
Quito
CSR strategy design and deployment Reporting and assurance of non-financial information Climate-change audit and consulting, and emissions trading services Transaction support on issues concerning EHS and corporate reputation; Supply-chain risk management
16
PricewaterhouseCoopers
Sustainable development (or Sustainability) is development that meets the needs of present generations without compromising the ability of future generations to meet their own needs
World Commission on Environment and Development (Brundtland Commission, 1987)
Corporate Sustainability is a business approach to create longterm shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments
Dow Jones / SAM Sustainability Group Index
Corporate Social Responsibility is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis as they are increasingly aware that responsible behaviour leads to sustainable business success. EU Green paper on CSR (July 2001)
Why sustainable development is becoming so important ? Sustainable Development has to answer three main issues:
Social equity and access to basic services: - 1.2 billion people live with less than 1 US$ per day - 1 billion people live without drinkable water - 2 billion people without sanitation system fro water - 2.5 billion people live without electricity Environmental issue: - Emissions of CO2, during this century, temperature could raise between 2 and 6C - Protection of forests: destruction of tropical forest increases in the proportion of one football ground per second - Environmental footprint, if all the countries have the same environmental impact of France, 3 planets should be necessary to guarantee living in a sustainable way. Demographic issue: Population should increase by 50% by 2050, reaching more than 9.3 billion of inhabitants April 2009
Slide 20
April 2009
In brief Sustainable Development appeared more than 20 years ago Sustainability and/or Corporate Social Responsibility are basically two different words for the same concept. One is applicable at country/region level and the other one is applicable at organization level New is: Listen to and engage with stakeholders Triple-bottom line: the challenge is to find the right balance between economic, social, and environmental issues, fully integrated in the business strategy Long-term perspective (beyond next quarter financial results?) and inter-generational transfers
April 2009 Slide 22
The economic power of multinationals outweigh the one of some countries GDP/Sales Ranking 1998
Countries USA ... Norway DaimlerChrysler Saudi Arabia ... Greece Wal-Mart Portugal
April 2009
1 ... 27 28 29 ... 32 33 34
25
Partners Shareholders
April 2009
The challenge for business: What does this mean to our company? Each company has to define its own approach
My colleagues and I are totally committed to a business strategy that generates profits while contributing to the well being of the planet and its people. We see no alternative. Our values, Business Principles, commitment to contribute to a sustainable form of development are inextricably linked to our long-term commercial success.
Steps towards sustainability: By taking steps towards sustainability, General Motors is moving into the future. The impact of our products, plants, and partnership define our future course as a corporation. It is the balance of environmental, social, and economic actions of GM that will help shape the world around us and provide a foundation for today and the next generation. By our deeds, we intend to lead.
April 2009
April 2009
DuPont is a science company that is focused on sustainable growth - creating shareholder and societal value while decreasing our environmental footprint. Our core values of safety, ethics, fair treatment of people and environmental stewardship have remained constant over time... Looking ahead: as we approach our 200th anniversary, we are dedicated to transform DuPont into a sustainable growth company.
Kenneth L. Lay (former Chairman and CEO Enron):
As we move forward, we will leverage our intellectual capital and innovative capabilities to promote sustainable business practices around the world. We believe this approach is imperative for achieving our business objectives, attracting and retaining top talent, preserving and enhancing our reputation and delivering long term corporate value.
April 2009
April 2009
April 2009
August 2007, Mattel has to recall millions of products and loses 27% of its value in the stock exchange beacause some products contain high quantities of plumb May 2007, an investment fund based in norway sells for 414 million euros of Walmart shares because child labour has been detected in some suppliers
April 2009 Slide 42
Example in the food industry : Accountability for environmental/social issues "from farm to fridge" ...
Business-to-Business
Food safety?
Business-to-Consumers
Lack of trust?
Market place
Products
Information
Lack of tracability
Product Boycott?
" You do anything in the world to gain a reputation. As soon as you have one, you seem to want to throw it away. It is silly of you, for there is only one thing in the world worse than being talked about, and that is not being talked about."
Oscar Wilde, The Picture of Dorian Gray, 1890
52%
77%
48%
76%
56% 40%
64% 63%
Lesson #3 : "...I'm sure financial markets don't care about these things"
Dow Jones Sustainability Index (DJSGI) Outperforms the Dow Jones Industrial Index
Launched in August 1999 by Swiss-based SAM Performance Group and Dow Jones First global index tracking performance of Top 10 percent of the worlds leading sustainability companies
0.9641 16.17%
280
230
101%
180
68%
130
80 12/93 6/94 12/94 6/95 12/95 6/96 12/96 6/97 12/97 6/98 12/98 6/99 12/99 6/00 12/00 6/01 12/01 6/02 12/02 6/03 12/03
50
April 2009
MSCI World Index is a stock market index of all the developed markets
52
53
How are Companies on the Index selected? The DJSI Sustainability Assessment
Publicly available Information on the companies (e.g., press and media, stakeholder opinions, NGO campaigns) Assessment of companies policies and reports based on company-provided documents and contacts (e.g., Annual and EH&S reports, company website) Twenty-page questionnaire sent out by SAM to companies on the Dow Jones General Index
55
Does it pay to care about Sustainability ? Some views from investors and academics Close to US$6bn in DJSI-based investment vehicles Attract long-term investors Reduced volatility of share prices Reduced cost of capital
Does it really pay to care about Sustainability? At least some investors take their chances
- 13%
-15
-8
-13
-16
+10
+14
+23
-12
+2
-5
+6
April 2009
April 2009
social and environmental performance: Fair Trade, Eco label (European flower)
But false labels and/or green washing can be very dangerous for the respectability of the brand
66
67
April 2009
Environment constraints and new habits from consumers allow to think new business models
Development of an economy of functionality
Interface rent fitted carpet and do not sell them Michelin Fleet Solutions is a renting system of tyres for big company clients of Michelin, it means a higher profitability for Michelin by enlarging the life duration of the tyres and savings for the clients by reducing fuel consumption and taking care of used tyres disposal
Development of a social business to answer the
Lesson # 7 :comunicate on your CSR programmes is not about telling a nice story but facing critical issues in a transparent manner"
April 2009
quickly Version 3 of the Global Reporting Initiative (GRI) 940 companies worlwide at the end of 2008 AA 1000 (Accountability) UN Global Compact Communication on Progress (COP)
Best practices in CSR reports: engage stakeholders / define their
needs, focus on main issues, set objectives and show results, develop a set of coherent indicators and explain trends in your performance, speak about what is going wrong also, use opinion of external stakeholders to progress (experts, NGOs, etc)
71
Role-play: Engaging stakeholders is not always an easy task Group 1: "Greedman & Co" Group 2: "NGO GreenFeast" Group 3: "Greedman shareholders"
Does the company actively engage dialogue with stakeholders ? Is the company's management prepared to respond to critics? What are the risks associated with the companys brandname ? How can a company protect the brand name? Does the company manage properly it's supply chain partners? Are social or ethical values an important part the company's brandname and are corporate codes of conduct in line with these values? Does the company use green / social or ethical marketing? Does the company face brand attacks or product boycotts? Is the company accused of a lack of transparency on environmental, social, or ethical issues?
Key learnings: Corporate Social Responsibility CSR is voluntary in the EU It is embedded in the business culture Not a mandatory requirement thus no public enforcement mechanism Enforcement through stakeholders: pressure groups and market demand (e.g., financial markets). Ability to dialogue with stakeholders is key: understand their concerns, Pressure on companies to become more transparent and more accountable Two different strategies prevail: mitigating risks (avoid the worst) and seeking opportunity Leading companies integrated in their business model and find it adds value. April 2009
Slide 77
Feedback session engaging with stakeholders is not always an easy task.: recap of instructions for each group Group 1: Greedman & Co management Group 2: Environmental NGO GreenFeast Group 3 : Shareholders of Greedman & Co - Employees - Former Greedman & Co employee, US based, retired - Institutional investor (US based) - Financial analyst - Housewife
Contact
Clment Lefevre
PricewaterhouseCoopers 63 rue de Villiers 92208 Neuilly-sur-Seine France tel +33 1 56 57 89 78 fax +33 1 56 57 16 36 e-mail clement.lefevre.@fr.pwc.com www.pwcglobal.com/sustainability