Corporate Social Responsibility&

Building Business Responsibly

Presented by

Ron Stradling

Tel; 01708 473075

The Motor Industry….

• Is not seen as environmentally friendly

• Is not seen as naturally supportive to communities

• Is an easy target for governments, lobbyists & The Mayor of London!

• Is not helped by Coronation Street or Top Gear!

The Industry Must Change….

• It is largely stuck in a time warp

• Vehicles have modernised and some manufacturer’s are taking pro-active roles

• But the greatest majority have yet to catch up!

• Because very few end users care about emissions or environmental issues

CSR / BBR &

• Gain a competitive edge with & through BBR

• Gain opportunities to assist your clients to improve their image and profitability

• BBR links to business sustainability and continuity

Corporate Social Responsibility

• What is it?

– a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

(Training Learning Consultancy 2006 “Building Business Responsibly”, IBA (2001)

Sustainable Development

• This is ‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs.’

(Brutland Commission’s Report for the World Commission on Environment and Development, 1987)

Typical SME Barriers to BBR

• “This has been a successful business, why should it change now?”

• “We are struggling from week to week and cannot afford to put in another political system.”

Barriers to BBR Involvement

Management inertia

Economic short termism

Low status of BBR as a business issue Lack of relevance

Perceived cost

Perceived time/resources

Perceived Admin burden

Lack of knowledge & skills

Mainly for large

corporationsBarriers to SME BBR

The Dimensions of BBR

• Business Performance

• Business Finance

• Internal / External Stakeholders

• Environmental Effects

• Business Ethics

Drivers for SME BBR

Personal motivation

Values/satisfaction

Part of doing good business

Employees

expectations

Contributing to local community

Supply chain pressure

Innovation

Competitive edge

Networking Opportunities

Reputation & Market position

Legal compliance

Financial

Efficiencies

The Business Case for BBR

• Protect and Strengthen Sales, Brand Image, & Reputation

• Human Resources

• Risk Management

• Brand Differentiation

• Business ethics

• Business Continuity by design

Reasons To Want To Get Involved

• Enable non-franchised outlets to be more competitive with franchised dealers

• The right thing to do for your clients; help them to face the future more profitably

• To be and be seen at the forefront of embracing change that results in BBR

• Exciting and interesting work for

BBR and Benefits to SMES• Reducing waste and emissions doesn't just help the

environment - saves money /Improves profitability

Also Helps to;

• ensure compliance with regulatory requirements

• develop profitable new products & services by understanding the business’s wider impact

• make your clients more creative and competitive - can lead to being first in the market

BBR and Benefits to SMESHelps to

• Reduce the risk of sudden damage to their reputation (& sales)

• Assist investors to be more willing to offer finance – perception of being here to stay for the long term

• Develop better reputation and make it easier to recruit good employees

• Employees stay longer, reducing costs and disruption

Other Benefits of BBR

• Consumers may prefer to buy from ethical businesses

• Some customers insist on buying from responsible companies

• Companies often prefer suppliers who demonstrate responsible policies

BBR and Benefits to SMES

• Activities such as involvement with the local community are ideal opportunities to generate positive press coverage – improve marketing opportunities

• Good relationships with local authorities make doing business easier – providing Business Continuity Plans are in place

Massive Impact on Vehicle Manufacturers

• During 2007 President Bush signed into law the first new fuel efficiency regulations since the 1970s.

• EU Proposals; from 2012, average emissions for new cars should be 120 g/kms and failure to meet these targets will bring heavy penalties

Hummer Viability Study

• Fuel prices are causing a re-think

• According to The Independent of 19 June 2008 GM Is considering sale or closure

Jaguar Land Rover

• Seeking to hire 600 engineers to improve vehicle energy efficiency

• Additionally, has announced graduate programme based at Gaydon and Whitley

• Plans apparently approved by Tata

CSR Case Studies

VAUXHALL

• Social and Ethical Philosophy and Policy

• Environmental Philosophy and Policy

CSR Case Studies

RENAULT

• Launched ECO2 Symbol, proclaiming commitment to products that are both Economical and Ecological

• Renault Commitment 2009: it plans to rank amongst the world's top three car manufacturers concerning CO2 emissions with 1,000,000 vehicles sold by 2008 emitting less than 140 g CO2/km, a third of which will emit less than 120 g CO2/km.

CSR Case Studies

AUDI

– Has opted for voluntary membership of the European Eco Management and Audit Scheme

– Has spent £25million on installing natural gas turbines resulting in a 25% reduction of CO2 from the production of heat and electricity

– 95% of their waste material is now recycled

– A5 Coupe won the Michelin Challenge Bibendum with the world’s cleanest diesel engine

CSR Case Studies

FORD

– Claim to be the first vehicle manufacturer in Europe to offer vehicles with Flexifuel Vehicle technology

– Are developing alternative fuel vehicle technologies and hybrid power packs

– Claim to be at the forefront of hydrogen-powered vehicle development

– New Ford advertisement http://www.ford.co.uk/ie/environment/-/-/-/-/-/-

In Summary

• Parking, travel and emissions are becoming more serious issues in the UK – market for small luxurious cars?

• CSR / BBR Offers MICg Members a golden Opportunity to improve fee income

• CSR /BBR training will be organised if sufficient numbers show interest

Ron Stradling

Stradling Training & Consultancy

Tel:00 44 1708 473 075 Fax: 00 44 1708 478064E-mail: ron@stradlingtandc.fsbusiness.co.uk Web: www.traineurope.co.uk

Thank You For Your Interest