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Making CSR Happen

Making CSR Happen. ICC, Birmingham 11 December 2006. Session Plan. Background to report CSR What is it? Its context Why it is important Making it happen Case studies Open session. Purpose of Report. Sponsors DTI CSR Academy CIPD Objectives Links between CSR and people management

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Making CSR Happen

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  1. Making CSR Happen ICC, Birmingham 11 December 2006

  2. Session Plan • Background to report • CSR • What is it? • Its context • Why it is important • Making it happen • Case studies • Open session

  3. Purpose of Report • Sponsors • DTI CSR Academy • CIPD • Objectives • Links between CSR and people management • Assist HR practitioners • Show how CSR enhances business

  4. Report Participants

  5. What is Corporate Social Responsibility? • Many definitions and explanations • Recognising impacts a business has on all aspects of its environment: • Economic • Social • Environmental AND the way it behaves toward them

  6. Alternative Names for CSR • Corporate responsibility • Corporate citizenship • Sustainability • Betterworld (BT branded theme) • What is important is not the name but the way an organisation deals with its impacts

  7. CSR Drivers Non – Governmental Organisations Media Government CSR Consumers Investors Employees Suppliers

  8. CSR in Context • Most companies do some CSR • Support local charities/communities • Genuinely value their staff • Encourage volunteering • Cause-related marketing • H&S, environmental compliance • Not just something for big companies • Although they more likely to report on it • Should be important to all organisations

  9. Why CSR is Important • Enables organisations to focus on issues important to their business • Can give compliance a business focus • Adds both tangible and intangible value • Reduces risks to reputation • Can offer competitive advantage • Public sector and more companies now expect certain standards from suppliers

  10. How to Make CSR Happen • Recognise the impacts of organisation • Know why CSR is important to business • CSR and corporate strategy align • Commitment from ‘the top’ • Involve employees • Departmental and/or divisional champions • Communicate • Treat CSR as a business discipline

  11. Case Study Examples • Accenture Development Partnership • ARM Holdings • AstraZeneca • British Gas • Smiths Group

  12. Accenture Development Partnership (ADP) • Accenture is a global organisation • ADP registered charity • Helps not-for-profit sector achieve their social and economic aims at reduced rates • Benefits: • not-for-profits access consulting skills • employee development • employee perceptions and turnover

  13. ARM Holdings • Designs technology for digital products • Board takes CSR seriously • A key issue – recruiting engineers • Competitive market • Needed a competitive advantage • Solution – build reputation of employer brand • Actively communicate its standards into the engineering fraternity • Website • Magazine • Presentations

  14. AstraZeneca • Raising productivity through improved employee well-being • Issue: raised level of stress-related symptoms • AZ already felt had high CSR standards • Introduced counselling support at work • Result: • 50% reduction in stress-related illness • Reduction in claims from health insurance • Estimate improved productivity £0.7m and less time off £0.6m annually

  15. British Gas – the Issues • Employee volunteering to drive culture change in Cardiff • Call centre dealing with customer enquiries • Needed to become national sales centre • Staff increase from 650 to 2,300 in 3 years • Many other competitors for employees • Job and customer satisfaction linked • Two paid days a year for volunteering

  16. British Gas – the Benefits • Staff satisfaction rose • Staff turnover dropped • Community activity encouraged new employees • Employee skill levels have increased • Employees enable to take on new roles • Now rolled out nationally

  17. Smiths Group • Need for a Code of Ethics for business • Most business involved public procurement • Need to be seen to be ethical • Critical for corporate reputation • Critical to communicate across world • Developed and launched • Successfully embedded amongst staff

  18. What are Key Messages? • CSR is a generic • Applies to any organisation • To be successful requires: • A clear strategy • Leadership • Commitment of employees • Major beneficiaries: • Corporate reputation and risk management • We use a route map to structure approach

  19. The Virtuous Circle’s Corporate Social ResponsibilityRoute Map Involve HO, Business Units & Stakeholders Management Community Developing the company’s CSR values Identifying the company’s CSR impacts Developing the company’s CSR strategy Communicating CSR values, strategy & outcomes Building Reputation Developing the CSR practice Employment Environment Market- place Business Relationships Human Rights Performance Measurement, Monitoring & Audit Stakeholder engagement Know where you’re at Identifying the stakeholders Identifying business risks & opportunities

  20. Useful Information • “Making CSR happen – the contribution of people management” • www.cipd.co.uk/Bookstore/catalogue/research • Link via www.thevirtuouscircle.co.uk • DTI CSR Academy • www.csracademy.org.uk • My contact details: • iredington@the virtuouscircle.co.uk

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