csr & hr - presentation stefan crets

Conference “CSR: s.ll a challenge for HR?” 22 October 2013 in Brussels

Stefan Crets, Execu.ve Director, CSR Europe

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What is CSR?

“The responsibility of enterprises for their impacts on society” IT IS ABOUT MANAGEMENT PROCESSES

Respect for applicable legisla.on, and for collec8ve agreements between social partners, is a prerequisite •  CSR = a process for companies to integrate social, environmental,

ethical and human rights concerns into their opera8ons and core strategy, in close collabora.on with their stakeholders

•  Maximising the crea8on of shared value through a long-‐term strategic

approach to CSR, the development of innova8ve products, services and business models…

FOCUS ON MID AND LONG TERM SUSTAINABLE GROWTH

Corporate strategies for building shareholder and societal value-‐added

Role of CSR with regards to HR stakeholder requirements

Source: CSR for HR: hGp://www.google.de/imgres?um=1&sa=N&biw=1366&bih=667&hl=nl&tbm=isch&tbnid=hNhwnJ5M8y6YJM:&imgrefurl=hGp://www.csrforhr.com/2011/06/cshr-‐going-‐global.html&docid=anLxIOdYG3pmcM&imgurl=hGp://4.bp.blogspot.com/-‐G5vJVZwiRu8/TgT-‐t61b-‐xI/AAAAAAAAAbo/MAyTuf2fFgw/s400/CSR%252Bfor%252BHR%252BMateriality.JPG&w=400&h=327&ei=uJ5DUt3jOYeFhQevn4HoBg&zoom=1&iact=hc&vpx=649&vpy=146&dur=4309&hovh=203&hovw=248&tx=150&ty=105&page=1&tbnh=131&tbnw=160&start=0&ndsp=21&ved=1t:429,r:18,s:0,i:136

HR stakeholder requirements

HR func.onal success and contribu.on to a sustainable business

Improve HR admin services

Provide worklife balance programs

Employee sa.sfac.on survey

Provide dental

insurance

Develop Green Teams

Improve internal comms

Employee Volunteering Program

Assess HR Sustainability

risks

Clarify and leverage social mission

Increase employee

engagement

Reduce HR costs

Embed human rights policy

Gender equality prog

Win the talent war

Strategic business

partnership

Low carbon skills

recruitment

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Enterprise 2020: It is about business not mere compliance

Social innova*on = new ideas, business models, products & services that resolve exis*ng sustainability challenges

The way ahead 2013-‐2015

Enterprise 2020 Ini.a.ve

Sustainable Living in Ci.es

Skills for Jobs

Nine campaign projects Areas Project Leaders/Partners

Workplace Innova.on

Rethinking Careers

Health and Wellbeing

Supplier Diversity (‘14)

Entrepre-‐neurship

Changing Lives

Intrapreneurship Programme

Entrepreneurship Boost

Skills for Employability

Deploy Your Talents (STEM)

Quality Internships & Appren.ceships

Inclusion Fostering Inclusion

Rethinking careers: integra.ng longer working lives into all HR opera.ons

CSR Europe’s project on Rethinking Careers

Purpose Deliverables

Iden8fied Issue/Gap •  New legisla8ons for prolonged re8rement age •  Beyond focusing on senior wokers, companies

need to take a holis8c approach à rethink careers

Proposed solu8on •  Understand the levers and obstacles of lifelong

HR Management •  Share knowledge •  Support in shaping the necessary policy

framework

•  Assessment of lifelong employability

à  Assessment Report + Benchmark

•  Knowledge sharing à  Publica8on, incl. lessons

learned + best prac8ces •  Policy dialogue à Policy recommenda8ons

•  Rethinking careers publica.on •  Lifelong Employability Assessment

(LEA-‐Tool): CSR Europe is offering a Rethinking Careers Assessment to measure a company’s ability to i n t e g r a t e a g e -‐m a n a g eme n t processes into HR opera8ons across life-‐stages

•  12-‐13 November 2013 in Brussels: European Employment Forum

For more informa+on on the publica+on and how to par+cipate in the assessment, please contact Sarah Dekkiche ([email protected])

Business benefits of a healthy workforce

Improved brand

Improved reten.on

Improved resilience

Higher commitment

Higher produc.vity

Fewer accidents

Reduced sickness

The Business case of Health Literacy

Health literacy ac8vi8es in the business context create value not only for employees, but also for businesses

Business and Human Rights

(2) Management of Complaints

Why par.cipate:

•  Assess the effec8veness of current company processes for addressing complaints from employees and/or communi8es.

•  Learn from a set of best prac8ces and tools

Available tools

•  MOC-‐A: Management of Complaints Assessment tool

•  Publica8on on company mechanisms for Addressing Human Rights Complaints

Two work streams

within one network on business and human rights 11

CSR Europe’s MOC-‐A tool: The 8 effectiveness criteria are broken down into 22 concrete process requirements The MOC-‐A tool (Management of Complaints Assessment), allows: • To evaluate the 22 process requirements on their level of maturity and assign a score to each

company’s practice • Draw Individual benchmark graphics to provide company with their position against peers

and allows to identify gaps • Compile a set of good practices for each of the effectiveness criteria.

What is available for companies now:

• 22 indicators to support HuRis practitioners in decision making process à the 8 effective criteria were broken down to identify key elements of a grievance mechanism operating principles

• Matrix: ”beginners “– “advanced” – “effective” maturity level à 3 levels of maturity of grievance mechanism were identified; explanation of each of them and practical examples are available (Please note that the “effective” level is limited to the group of companies we have been interviewed)

Matrix -‐ Assessment sheet with practical examples for each of the levels of maturity

Individual benchmark graphics provide company with their position against peers and allows to identify gaps

Score on the 8 UN criteria

Total score benchmark against other companies

Gaps in specific processes requirements 8 Criteria

benchmark

21 processes requirements

more informa8on

Business and Human Rights

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Two work streams

(1) Embedding Human Rights

Why par.cipate:

•  Understand the relevance of human rights across departments – HR, procurement and legal/ risk management

•  Translate human rights into func8on-‐specific processes

Upcoming tools:

•  Department-‐specific tools e.g. training, guidance materials

within one network on business and human rights

Link to Human Rights • Human rights risks throughout the supply chain (eg. child/forced labor, working hours, freedom of associa8on, con8ngent labor)

• Linkage situa8ons: human rights risks further down the supply chain (eg. conflict minerals)

Day-‐to-‐Day Ac.vi.es • Outsourcing of produc8on to low cost countries

• Sourcing of raw materials, agricultural products, chemicals,

• Procurement decisions (eg. lead 8mes, contract terms, margins)

• Monitoring and improvements

Risks • Sole focus on labor rights • Biggest suppliers vs. highest risks • Parallel vs. integrated processes • Sole approach is compliance and/or cut and run

Opportuni.es • Respect for human rights correlates with high performance in other areas

• Risk-‐based approach • Working with others (eg. Bangladesh Accord)

EU legisla.ve proposal on Non-‐financial Informa.on

CONTENTS of non-‐financial statement

Informa8on must relate to the company’s policies, results and risk-‐related aspects on at least...

May rely on na.onal, EU-‐based or interna.onal frameworks, such as

Include statutory audits...

•  Environmental aspects; •  Social & employee-‐related maders; •  Respect of human rights; •  An8-‐corrup8on and bribery aspects

•  UNGC •  ISO 26000 •  ILO Declara+on •  GRI • EMAS • German Sustainability Code (DNK) • .....

Should contain an opinion concerning the consistency or otherwise of the annual report, including non-‐financial informa8on, with the annual accounts for the same financial year

COMPLY or EXPLAIN

Where a company does not apply policies in one or more of these areas, the company shall provide a reasoned explana8on

for not doing so.

Scope and Requirements I

•  COMPANIES CONCERNED •  Large companies: •  Average number of

employees exceeds 500 •  AND •  The balance sheet total

exceeds €20million OR the net turnover exceeds €40million

•  These companies must include in their annual report OR in the review within a consolidated annual report, a non-‐financial statement →

Scope and Requirements II

Informa.on on the objec.ves, the implementa.on and results obtained from their diversity policies for their administra.ve, management and supervisory bodies...

With regards, in par.cular, to aspects such as: -‐  Age -‐  Gender -‐  Na.onality -‐  Educa.onal and professional background -‐  Other aspects companies may consider relevant

COMPLY OR EXPLAIN

Companies not having a diversity policy should not be obliged to put one in place but they should clearly explain why this is the case

Large listed companies: •  Large companies are taken to mean companies which exceed the given threshold values for any two of three variables: balance sheet total, annual turnover and average number of employees. •  Listed companies are taken to mean companies which are listed on the Main Stock Exchanges in European Economic Area (EEA) Member Countries.

These companies should disclose as part of their corporate governance statement

EU legisla.ve proposal on Non-‐financial Informa.on

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For more informa8on contact Stefan Crets ([email protected])

www.csreurope.org Connect Share Innovate

Thank you very much for your aden.on!