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© Enact Sustainable Strategies 2011
Energy and Climate – Strategic Impact on Corporate Organisations
REPUTATION AND RESPONSIBILITY(CSR + PR = TRUE?)
Mattias Iweborg, Managing DirectorEnact Sustainable Strategies
© Enact Sustainable Strategies 2011
Key messages
• Reputation and responsibility are two sides of the same coin
• A company does not itself what its responsibility is;it is defined by its stakeholders
• There needs to be a match between walk and talk
• Successful management of responsibility and stakeholder relationships can be transformed into brand equity and business success
• There is money to be made here!
© Enact Sustainable Strategies 2011
Sustainability
Definitions
“Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public
expectations that society has of business“
(Business for social responsibility)
“A concept whereby companies decide voluntarily to contribute to a better society and a cleaner
environment. A concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis“
(European Commission)
“Corporate Social Responsibility is the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the workforce and their
families as well as of the local community and society at large“
(The World Business Council for Sustainable Development
in its publication "Making Good Business Sense)
“Responsibility of an organization for the impacts of its decisions and activities on society and the
environment, through transparent and ethical behaviour that
⎯ contributes to sustainable development, including health and the welfare of society;
⎯ takes into account the expectations of stakeholders;
⎯ is in compliance with applicable law and consistent with international norms of behavior; and
⎯ is integrated throughout the organization and practised in its relationships“
(ISO 26000 guidelines on social responsibility)
© Enact Sustainable Strategies 2011
Typical drivers
Customers
Competence
Capital
Compliance
Cost
© Enact Sustainable Strategies 2011
ReputationSustainability
Responsibility
Brand trust and reputation are formed
by others based on action and interaction
Decreasing natural resources (eco system services) and societal need for sustainability
changes market conditions
Global challenges
Market specific Company specific
Business Brand
A possible approach
© Enact Sustainable Strategies 2011
Globaland local
challengesgenerates societal
responsechanging market
conditions
Societal need for sustainability
changes market conditions (for all)
© Enact Sustainable Strategies 2011
Corporate behaviour
…forms trust and reputation (brand)
Brand trust and reputation are formed by
others based on actions and interaction
Shells CEO 1995
© Enact Sustainable Strategies 2011
– GBP 60 – 100 million
© Enact Sustainable Strategies 2011
Society
Employees
Vision &
Brand
Values &
Mission
OwnersClients
Suppliers &
Retailers
Government,
NGOs
Media
Stakeholders form the perception of
the brand
© Enact Sustainable Strategies
© Enact Sustainable Strategies 2011
In came Janne Josefsson and
Mission Investigation…
© Enact Sustainable Strategies 2011
…and the share price plummeted
OMXS
Hakon
Invest
Uppdrag
Granskning
© Enact Sustainable Strategies 2011
Internal impact
© Enact Sustainable Strategies 2011
– USD 320 million
© Enact Sustainable Strategies 2011
Levels of Corporate Responsibility
© Enact Sustainable Strategies
© Enact Sustainable Strategies 2011
Dark Horse
Whistler in
the darkPretender
Icon
WALKLeader
WALKLaggard
TALKLaggard
TALKLeader
Policy,
Communication
& External
Engagement
Implementation
& Outcome
Adapted from Ford Motor Company
Levels of
ambition
18
© Enact Sustainable Strategies 201119
© Enact Sustainable Strategies 2011
• One of the worlds largest
companies (around 2
million employees!)
• Mission: ”Help our
customers to save
money so they can live
better.”
• Poor reputation, under
high pressure from
NGOs, mainly regarding
poor labour practices
© Enact Sustainable Strategies 2011
• Started their proactive
approach around 5 years
ago, strongly led by the
CEO Lee Scott
• Now very much focusing
on business opportunities
connected to
sustainability
© Enact Sustainable Strategies 2011
• To be supplied 100 percent by
renewable energy
• To create zero waste
• To sell products that sustain our
resources and the environment
Three overall goals
© Enact Sustainable Strategies 2011
• Starting to communicate in stores
• Good in engaging employees – everyone has made personal commitment in the sustainability area
© Enact Sustainable Strategies 2011
• Has created ”Sustainable Value Networks” on a range of
products (e.g. jewellery) and processes (e.g., waste).
Led by business responsibles, engaging various external
experts.
• Developing a product Sustainability Index – collaboration
with universities, researchers etc
• Strong push on suppliers – e.g. working closely with
selected Chinese suppliers to reduce energy use
• Begun to advocate for health care reform in the United
States, partnering with trade unions
• More about Walmart’s sustainability work http://walmartstores.com/Sustainability/
Examples
© Enact Sustainable Strategies 2011
Launched
Plan A in 2007
“because there
is no plan B”.
100 commit-
ments in 5
areas.
© Enact Sustainable Strategies 2011
Return system for used clothing (an soon furniture)
established in co-operation with Oxfam
Working with Oxfam to
close the loops
© Enact Sustainable Strategies 2011
• 3 million garments handed in by customers
• Customers are given a 5 GBP voucher for
each garment that could be used for each
purchase over 35 GBP
• Oxfam sold the clothing
and generated 2,2
million GBP
• Average ticket 50%
higher than average for
customers using the voucher.
The first year was a huge
success!
© Enact Sustainable Strategies 2011
• Has really managed to integrate
sustainability in core business
• Strong in communication &
engaging the customers,
especially the in-store
communication.
• Excellent Sustainability
Report
© Enact Sustainable Strategies 2011
• Supporting a strong deal
in Copenhagen
• Consumers can add their
own message to a virtual
patchwork quilt
• More info see
http://plana.marksandspencer.com/you-can-do/climate-change/cop15
Engaging in public policy
© Enact Sustainable Strategies 2011
Key messages
• Reputation and responsibility are two sides of the same coin
• A company does not itself what its responsibility is;it is defined by its stakeholders
• There needs to be a match between walk and talk
• Successful management of responsibility and stakeholder relationships can be transformed into brand equity and business success
• There is money to be made here!
© Enact Sustainable Strategies 2011
Дякую эа увагу!
Большое спасибо!
Mattias Iweborg
mattias.iweborg@enact.se
Enact Sustainable Strategies
Tel. +46 70 593 43 60
www.enact.se
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