www.conferenceboard.ca frameworks for implementing tbl programs presentation to: national executive...

www.conferenceboard.ca

Frameworks for Implementing TBL Programs

Presentation to: National Executive Forum on Public Property

April 29, 2004Toronto, ON

By: George Khoury


Presentation

• About the Conference Board

• What is CSR, SD and TBL

• Why organizations should pay attention

• TBL Framework examples

• Reporting trends and outlook

• CR Assessment Tool


About the Conference Board

• The Conference Board builds leadership capacity for a better Canada by creating and sharing insights on economic trends, public policy, and organizational performance


Sustainability

• “…to meet the needs of the present without compromising the ability to meet the needs of the future”

• Ecological focus. More recently, social aspects considered through TBL

www.conferenceboard.ca www.conferenceboard.ca

Corporate Social Responsibility

• Most definitions of CSR address two fundamental aspects of business practice:

1. a company’s relations with its stakeholders

2. a company’s engagement with, and impacts on society, environment and the economy


Why Should Companies bother

• It is good for business to be good

• Changing public expectations

• Evolving role of business


Value CreationReputation

CompetitivenessEmployee RelationsRisk Management

Business Case for CSR


To Be Socially Responsible a Large Company Has to Go Well Beyond What Laws Require

(Canada 2002)

Strongly agree

(35%)

Strongly disagree (3%)

Depends/DK/NA (5%)

Somewhat agree (43%)

Somewhat disagree (13%)


Expectations are high

11 53 35

11 45 43

8 43 45

0% 20% 40% 60% 80% 100%

UK

USA

Canada

Make profits paytaxes, create jobs andobey all laws

Operate somewherebetween

Set higher ethicalstandards and helpbuild better society


Role of Companies Who should be Responsible for: (Canada 2002)

13

27

29

31

39

50

56

63

56

57

56

52

46

40

13

12

6

3

3

22

16

0% 20% 40% 60% 80% 100%

Govts Both Companies

Solving social problems

Reducing gap between rich and poor

Ensuring industry does not harm environment

Supporting charities / community projects

Reducing human rights abuses

Reducing worker exploitation

Reporting companies’ social practices

Source: Corporate Social Responsibility Monitor 2002, Environics International


Country/ GDP/SalesCorporation ($ millions)

1. U.S.A. 8,708,8702. Japan 4,395,0835. U.K. 1,373,61211. Mexico 474,95114. Australia 389,69123. General Motors 176,55824. Denmark 174,36325. Wal-Mart 166,809

Global Economies

Sources: Ranking based on corporate sales data from Fortune, July 31, 2000, and GDP data from the World Bank Development Report 2000; Mori Research for Royal Dutch/Shell, 2000; Everybody’s Business:

Managing Links and Opportunities in Today’s Global Society.

Country/ GDP/SalesCorporation ($ millions)

27. Ford Motor Co. 162,55828. DaimlerChrysler 159,98529. Poland 154,14631. Indonesia 140,96437. Mitsui 118,55538. Mitsubishi 117,76540. GE 111,63042. Portugal 107,716


• Shifting boundaries

• Locality of issues and importance of local government

• Importance of social, environmental and economic in decision-making

• Communicating to stakeholders

Why CSR in a Public Sector Context?


Objective - widening and deepening of CSR

• How

• Agent of change

• Catalyst of change

What Does CSR Mean in a Local Government Context?


Issues

• Philanthropy and Community involvement

• Volunteering

• Workplace health and safety (working conditions)

• Human rights

• Equality and diversity

• Corporate ethics (ethical business practices)

• Stakeholder engagement

• Sustainability (balancing eco dev with soc/ envir issues)

Agent of Change


Issues

• Public-private partnerships (PPP)

• Procurement (contracting/ purchasing)

• Public consultation / Stakeholder engagement

• Pension fund advocacy

Catalyst of Change


From Why to How

• Confusion in the marketplace

• Need for process clarity

• Focus on outcome is key


Triple Bottom Line

• The development of an integrated framework to achieve CSR and SD is known as the Triple Bottom Line approach


TBL Reporting and Implementation Framework

• Reporting Process– Services to community (external indicators)– Internal management (internal indicators)

• Implementation Process– Evaluation of the potential environmental,

economic and social impacts associated with proposed projects or actions being considered by Council


External Indicators

• Community indicators:– Economic: Total city investment in Business

incubation programs (target= x)– Social: Rate of participation/engagement of

residents in city funded community and cultural events/activities (target= +x%)

– Environmental: Total reduction of residential waste to landfill (target= +x%)


Internal Indicators

• Economic: Achievement of financial plan targets

• Social: Overall employee satisfaction

• Environmental: Total reduction of energy consumption attributable to Council buildings


Dofasco Inc. (steel)TransAlta Corp. (utilities) Royal Bank(financial services)

Husky Injection Molding Systems (industrial)

Abitibi Consolidated(paper & forestry)

Suncor Energy(oil & gas)

Falconbridge Ltd. (mining)

Telus(telecommunications)

Company CSR/SD Reports


More Canadian Companies are Reporting

• One Hundred companies reporting in 2002 v/s 57 in 2000

• Top Canadian reporters include*: – Suncor– VanCity– Hydro-Quebec

• Crown corporations are reporting more• Government catching up

*Stratos 2003


The Canadian Reporting Landscape

Research CBOC Survey Stratos Survey

Key Findings: Range of issues being reported on

Environmental reporting still leads the pack

Some movement towards integrated SD/ Triple Bottom Line reporting

“Feeling their way”--Gradual/ incremental approach to investment in reporting

Not sure of how to navigate Code/ Standard landscape


CSR Reporting: Key Success Factors Corporate commitment to transparency and accountability

Internal champion to ‘drive’ the reporting process High internal awareness of the business case for CSR and TBL

reporting Dedicated human resources - “Get the right people to do the job” Timeliness of information Regularity of reporting - “You can’t stop reporting” Strong internal management frameworks and information systems

- accurate, clear, consistent and meaningful data Stakeholder dialogue and involvement in the definition and

development of KPIs Continuous improvement- build “learning organizations”


Shell’s SD Management Framework


Developing a Report: Critical Questions

Are stakeholders (internal/external) interested in the report’s content? Is the content relevant?

Can the report be understood by a non-technical audience?

How can they benchmark good practice?

Is the report believable?

Are robust management/data collection/ information systems in place to support reporting?

Is the business case clear? What level of system development/reporting structure is most appropriate given your company size/operations?

“Reports need to talk to issues that are close to the reader”


Reporting Framework

Mostly individualized reports/websites, but increasing alignment with international standards such as GRI, AA1000, Global Compact

BUT…methodological issues around standardization vs company-specific issues

CBOC ‘CSR Benchmarking Framework’


The Corporate Responsibility Assessment Tool

(CR AT)


Key Benefits

Enables comprehensive self assessment against leading international CR benchmarks

Centralized data base can easily generate custom reports for key external stakeholders eg MJRI

Resource centre provides ongoing assistance for continual self improvement


CR Assessment Tool – Design

• Integrated framework, simplifies and “digests”

• Encourages and supports continual improvement

• Benchmarking and reporting capability

• Dynamic stakeholder consultative process to ensure relevance


Pop up window for underlying codes


User Feedback

The Co-operators Group Limited

“The tool prompted me to think about areas I might not of otherwise.”

“I like the fact that once you got used to the tool it was easy to navigate.”

Petro-Canada

“A good comprehensive electronic check list that will provide a useful ‘internal’ gap analysis as well as a comparison against external codes”


THANK YOU

• [email protected]

• Tel: 613-526 3280 ext 308

www.conferenceboard.ca frameworks for implementing tbl programs presentation to: national executive...

Documents

tbl slide

csr slide

role of business slide

high slide

environics international

george khoury slide

everybodys business

role of companies