Corporate Responsibility Index

14 April Athens

A tool for improving management of and performance in

corporate responsibility

Background of BITC and the CR Index

What is the CR Index?

The Index methodology

Company Feedback

Six Years data

Q&A

What we will cover today

Set up in 1982 by business for business / Over 750 companies in membership (71 of FSTE 100)

To inspire, engage, support and challenge companies to continuously improve their impact on society and the environment

INSPIRE

Platforms for companies to share best practices, 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

To help companies integrate corporate responsibility across their business (e.g. through CR Index)

Business in the Community

History of CR Index

The CR Index was created as a result of a survey by City of London analysts and participants in our Environment Index

“Give us information about all extra-financial activity, not just one element” City Analysts

“Our role has expanded from just considering the environment; help us benchmark all of it”

Environment Director

What is the Corporate Responsibility Index?

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50

100 Co

Sector

Index

Framework

Measuring Managing Reporting

Development of the Index over the years

Business driven

2001/ 02: - Consultation involving more than 80 companies and other key stakeholders to develop the survey

2003: - Launch of the first Index- Steering group to revise survey

2004: - Further development of survey and feedback reports

2005/ 06: - Period of stability

2007: - Consultation with Marketplace Task Force and other BITC campaigns/ leadership teams

FTSE 100 & Mid-250 DJSI sector leaders BITC members with significant presence in the UK

More than 280 participants since its launch in 2002

More than 50 have used it for all 6 years

129 have used it as a benchmarking tool this year … representing approx. 4 million employees worldwide

Universe of participants

Index Model

Corporate Strategy

IntegrationPerformanceand Impact

Management

Community

Marketplace

Workplace

Environment

Assurance process

3 Env Impacts

3 Social Impacts

Community

WorkplaceMarketplace

Environment

The Questions

Corporate Strategy Integration

Performanceand ImpactManagement

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

Scoring system

1. Corporate Strategy 10%

2. Integration 22%

3. Management 26%

• Community• Environment• Marketplace• Workplace

4. Social & Environmental Impact 36%

5. Assurance 6%

Processes in place for managing risks/opportunities

Allocation of core responsibilities

Effective stakeholder engagement

Transparency and disclosure

Impact and continuous improvement

Key themes throughout the Index

Presenting the results - Company feedback reports

Confidential to you

Company specific

Comparison against sector

Comparison against the overall Index universe

Detailed gap-analysis for action planning

Confidential feedback - Top line Confidential feedback - Top line

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Strate

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Inte

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Man

agem

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Impac

t

Assur

ance

Company Score

Sector Average

All index Average

Using the Index feedback

Analyse Index feedback report

Identify areas and need for improvement

Present issues to senior management

Review priorities/ targets for next year

Understand what external help is available

Implement business improvements

Think long term

How we present the results - Public reporting

Sunday Times ‘Top 100 Companies that Count’

CEO reception

Index Executive Summary

- Performance bands (platinum, gold, silver, bronze)- Focus on sector analysis and key issues- Focus on movers/new entrants- Focus on what the numbers mean - Best practice examples

Sunday Times Supplement

Completing the Index - planning process

Plan resources in advance

Get senior management on board

Allocate responsibilities and ownership

Circulate relevant questions early

Provide additional internal guidelines where required

Set clear internal deadlines for Index completion

Allow time for sign-off by CEO or relevant Board member

Keep colleagues informed and involved beyond the Index

Support during the Index process

Guidance notes

E-mail the Index team

Validation visits - reality check

Pick up the phone

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100

2002 2004 2006 2007

Overall

Strategy

Integration

Management

Performance

Assurance

Corporate Index - an improving picture

The final word from the companies

“The BITC Index is a most valuable management tool and can be used to

leverage change within an organisation” Accenture

“We value our participation in the CR Index as it has helped drive change & improvement throughout the business” Alfred McAlpine

“A very useful 'self-analysis' tool which identifies the highlights and helps find the 'gaps'” Northern Foods

“The process of putting together the index submission has helped us understand our progress, and explain it in a structure which makes sense to the outside world” Standard Life

“Participating in the index is a useful way to review CR activities across our

operating companies” Kingfisher

The final word from the companies

“The Index has helped raise awareness of the issues and our performance relative to our competitors at board level” WHSmith

“The Index has been of value both in benchmarking compared to our peers, but also as a structured group analysis of where we could do better” Amey

“We have found our first year participation in the CR Index very useful as it has allowed us to involve people from different parts of the business in the process and give them visibility” Total UK

“Promotes a reaction from senior management – both positive and negative – increasing engagement and understanding” Ford Motor Company

Q&A

Any questions?