mapping ceo definitions of csr commitments kelly kollman - glasgow university
TRANSCRIPT
Mapping CEO Definitions of CSR
CommitmentsKelly Kollman - Glasgow University
Overview
Main Findings
• Over the 20 year period (1995-2013), CEOs have increased:
• The number of areas for which they claim responsibility
• The external groups to which they hold themselves to account.
• Still, CEOs from all countries emphasize ‘the big three’ in each time period:
• Environment
• Community
• Employees.
• Clear country differences in how CSR is defined and why CEOs state it is important, but convergence over time.
2
Expanding CSR Commitments: % CSR Area Mentioned Over Time
3
Corruption Environment Giving/ Community
Human Rights Labour/ Employees
Remuneration0
25
50
75
100
0
95
29
0
48
0
11
77
69
9
69
2
16
86
63
24
70
6
1995-99 2005-06 2012-13
Expanding Commitments: % Stakeholders Mentioned Over Time
4
Bus. Partners Customers Employees Int. Organi-zation
NGOs Pol. Regu-lators
Shareholders Suppliers Unions0
25
50
75
100
43
76
62
14
5
38
24
14
0
37
6369
39
16
2623 24
1
1995-99 2012-13
% of Reporting Firms across Areas
Convergence within National Traditions
5
Germany UK USA
1995-99 2012-13 1995-99 2012-13 1995-99 2012-13
Corruption 0 22 10 14 0 11
Environment 100 88 100 87 90 84
Giving/ Community
0 34 30 71 60 87
Human Rights
0 36 0 26 0 13
Labour/ Employees
36 78 60 68 60 63
% of Reporting Firms across Areas
Motivation
6
Germany UK USA
1995-99 2012-13 1995-99 2012-13 1995-99 2012-13
Ethical
Community 0 16 20 29 50 74
Corruption 0 1 0 3 0 0
Environment 70 68 70 24 50 49
Human Rights 10 26 0 18 0 0
Labour Rights 20 45 30 32 20 23
Legal Compliance 0 0 20 3 0 3
Market-Driven 60 45 70 71 80 76
Social Pressure 10 45 20 42 0 26
Thank You
Best Practices in CSRKelly Kollman - Glasgow University
Overview of Best Practices
CSR/ Sustainability
• CSR / Sustainability Best Practice:
• Identified best practices through global CSR schemes (Global Compact, GRI) and management research.
• Established Best Practices:
• Measure social, economic and environmental impact in ‘material issues’ including impact along supply chain
• Set improve targets for material issues
• Audit progress
• Report and verify data on comparable issues to increase transparency and dialogue with stakeholders
9
Overview
Main Findings
• Top reporters implement these best practices, but levels of engagement varies across CSR / sustainability areas.
• Best and most detailed reporting in the environment area.
• Companies applied best practices to social areas much later and in a less consistent way.
• Cross-national differences:
• Substantial convergence in environmental area across three countries.
• UK and German companies have better quality reporting in social areas; US in community.
• Emerging issues of cutting edge reporters: responsible lobbying; human rights compliance in supply chain; living wage.
10
Reporting Trends over Time
11
1995-99 2005-06 2012-130
25
50
75
100
125
150
50
102
132
33
68
88
Germany UK USA Aggregate No.
Report Verification by External Auditors
12
Germany 1999 Germany 2013 UK 1999 UK 2013 USA 1999 USA 20130
25
50
75
100
2
50
6
56
30
1
8
1
19
0
5
Partial Audit Full Audit
Environmental Impact Measures Over Time
13
Biodiversity GHG Emissions Compliance Energy Pollution Product Impact Resource Use Transport Waste0
25
50
75
100
0
80
23
70
33
63
53
27
67
28
90
26
83
53
64
78
37
80
1995-99 2012-13
Environmental Improvement Targets Over Time
Biodiversity GHG Emissions Compliance Energy Pollution Product Impact Resource Use Transport Waste0
25
50
75
100
0
40
3
33
17
33
20
7
30
10
75
6
59
25
34
47
13
45
1995-99 2012-13
Social Impact Measures Over Time
14
Child Labour Coll. Bargain Compliance Diversity Forced Labour Health & Safety HR Due Diligence Living Wage0
25
50
75
100
03 3
10
0
47
0 0
20
43
29
88
17
87
17 16
1995-99 2012-13
Social Improvement Targets Over Time
Child Labour Coll. Bargain Compliance Diversity Forced Labour Health & Safety HR Due Diligence Living Wage0
25
50
75
100
0 0 0 0 0
27
0 005
9
43
0
57
3 1
1995-99 2012-13
Environmental Impact Measures Across Countries
Biodiversity GHG Emissions
Compliance Energy Pollution Product Impact
Resource Use Transport Waste0
25
50
75
100
39
97
36
89
75 7278
31
75
28
89
17
88
5156
75
44
83
19
84
26
74
37
65
81
35
81
Germany UK USA
Environmental Improvement Targets Across Countries
Biodiversity GHG Emissions Compliance Energy Pollution Product Impact
Resource Use Transport Waste0
25
50
75
100
8
89
14
64
47 47 44
14
33
11
74
0
72
28 28
47
17
50
9
72
5
44
5
28
49
9
51
Germany UK USA
Social Impact Measures Over Time
Child Labour Coll. Bargain Compliance Diversity Forced Labour Health & Safety HR Due Diligence Living Wage0
25
50
75
100
33
67
33
92
31
94
14
28
14
46
6
86
9
83
1420
1421
44
86
14
84
23
2
Germany UK USA
Social Improvement Targets Over Time
Child Labour Coll. Bargain Compliance Diversity Forced Labour Health & Safety HR Due Diligence Living Wage0
25
50
75
100
0
11 14
64
0
67
600 0 0
43
0
57
3 305
12
28
0
49
0 0
Germany UK USA
Emerging Issues
• Living wage (included in 20% of UK 2013 reports)
• Human rights along the supply chain
• Responsible / transparent lobbying
• 35% of 2013 sample included information on public policy
• Integrated reporting
Discussion Points
• Results in keeping with your experience or surprising?
• Is environmental sustainability easier to measure than social sustainability? Why?
• Why the earlier engagement with environment?
• Is environmental sustainability better aligned with stakeholders than social sustainability?
• Other emerging issues that we missed?
Thank You
Community EngagementAlvise Favotto - Glasgow University
Overview
Main Findings
• Expanding scope of community engagement
• Growing community activities in host countries (vs. home country)
• Increasing and increasingly varied involvement of workforce
• Certain trends taper off in the most recent period
• Attention to home-country initiatives
• Expanded attention to employability initiatives
• Managerial approach to community from 2005/06:
• Use of Performance Management Systems
• Emphasis on short-term/ more ‘visibile’ projects21
Location of Community Initiatives: % of community initiatives in host-countries
22
1999 2006 20130
25
50
75
100
38
59
49
Areas Addressed by Community Projects over Time
23
Disaster Relief Education Employability Environment HR Awarness People in Need
0
25
50
75
100
0
40
25
80
0
10
55
67
4650
21
70
17
88
58
33 33
63
1995-99 2005-06 2012-13
Avg. Number of Areas Addressed by Community Projects over Time
24
1999 2006 20131
2.25
3.5
4.75
6
1.6
2.9
2.4
Sainsbury’sCase Evidence
We anticipate further increases in the Landfill Tax, currently at £7 a tonne, a further incentive for us to reuse and recycle waste. Working with the charity Crisis FareShare, we have developed a programme to donate
food, from Sainsbury’s, which is about to pass its display-until date.
[CSR Report 1998]
25
We have a strong local focus supported by a clear national framework and strategy. We aim to be a positive force in society – from being a good employer offering jobs for local people, to paying our fair
share of tax; and from supporting local charities and community groups to national initiatives.
[CSR Report 2013]
Each of our stores plays an important role in its local community — that is where our customers and our colleagues live and where our
reputation is made or lost. We aim to make sure we are good neighbours, welcomed for our contribution to the community and for
our efforts to make sure we minimise any disturbance.[CSR Report 2005]
Sainsbury’sCase Evidence
1Community Projectin 1998
13Community
Projectsin 2005
9Communit
y Projectsin 2013
Sponsored Training
Employee Found-rising
Employee Found-rising
Charitable Giving Charitable Giving
Volunteer work Volunteer work
Food Donations Food Donations Food Donations
1998 2005 2013
1
1108
21 1
Sainsbury’sCase Evidence
1
[CSR Report 2005] [CSR Report 2013]
Thank You
Mandatory vs. Voluntary CSR Kelly Kollman - Glasgow University
30
A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
EU Commission, 2001
The responsibility of enterprises for their impacts on society.
EU Commission, 2011
New focus on ‘co-regulation’ and complementary regulation
Increasing requirements for CSR disclosure and management
• UK: Companies Act 2006 (Strategic Report and Directors Report) 2013 Regulations; Modern Slavery Act 2015.
• EU: Disclosure of Non-financial Information Directive (2014/95/EU)
• US: Dodd-Frank Act Section 1502 on Conflict Minerals Disclosure (2010)
• India: Companies Act of 2013 / Circular No. 21 / 2014
• Inter/National Lobby registers:
• USA (1998)
• EU Joint Transparency Register (2011)
• Scottish Parliament (proposed)
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Voluntary vs. Mandatory: A real difference?
• Despite trend towards increasing requirements new regulation allows companies significant flexibility in how they manage and report on their CSR / sustainability activities
• e.g. EU Directive allows companies to choose among different reporting frameworks
• Regardless of binding regulation, travel of direction is clear. Increased public pressure to:
• Report on environmental and social impacts / risks
• Monitor supply chain
• Use transparent and comparable metrics.
32
33
I don’t understand the point of debating about the importance of keeping something voluntary that in reality is no longer voluntary in any real sense
German CSR NGO Representative, 2015
Thank You