MOSS CSR Summit 2007

Speaker:Russell WorkmanManager Corporate Responsibility

So you have company support for a TBL approach. How do you elevate from belief in what’s right to action and get immediate results?

HBOSA BACKGROUND

HBOS Australia is part of a global expansion initiative of HBOSplc, in Australia this comprises BankWest, Capital Finance, BOSI, St. Andrews and BOS Treasury.

• HBOS is committed to being a positive corporate citizen and climate change leader and has now been included in a number of key leadership indices:

• Signatory to the Equator Principles• Global 100 Most Sustainable Corporations in the World• 2006 Accountability Rating (ranked 9th globally)• Ranked 10th Business in the Community Corporate Responsibility

Index• Included in Dow Jones Sustainability Index • Included FTSE 4 Good Index • Included in Carbon Disclosure Project

The $450 million redevelopment of the new Perth headquarters demonstrates the company’s commitment to Western Australia as well as the environment as the building is set to have a minimum Australian Building Greenhouse Rating of 4½ stars.  The Rating acknowledges best practice in design, operation and maintenance of commercial buildings to minimise greenhouse emissions.  The proposed fit-out will also foster an environment of collaboration, flexibility and efficiency.

Raine Square Headquarters PERTH

HBOSA Foundation

• Through its philanthropy the HBOSA FOUNDATION is a significant part of our commitment to improving society through being a good corporate citizen.

• Donations to Australian Charities - Almost $2 million in last two years

• Australian Business in the Community Network (ABCN) – HBOSA was a founding member of the ABCN which brings national business leaders together to create positive social change through practical programs which engage students, educators and business people. 

• Volunteering - Through the HBOSA Foundation colleagues can volunteer their services and expertise to benefit a charity, not-for-profit organisation or community project.

• Workplace Giving – through the HBOSA Foundation colleagues have the opportunity to make regular contributions from their pay to benefit the Foundation’s partners and programs.

KEY points

• Awareness• Alignment with overall business strategy doc and

reports• Be realistic• Top Down and Bottom Up• Benchmarking• Reassurance & Sell the benefits• Just the beginning• Network with other CR managers

Buy-in on CSR for Senior

Management

Peer Learning seems effective

CSR not seen as business critical

How can local subsidiaries leverage H/O Commitment to

gain traction?

Critical to any CSR implementation

Seniors are time poor!

Sometimes possible by bottom-up change that does

not “distract” executives

CSR is not in business or individual KPIs: no incentive

for involvement/ buy-in

CSR is seen as a cost to the business not an opportunity

Absolutely so how do you address this?

The business case can be pushed down to individual contracts

It is difficult to monitor and track progress

Lack of systems/resources to develop processes as

well as time

Annual reporting, GRI, etc can be a big load

Many things are a ‘GST’- wouldn’t see this as a major

obstacle

Opportunity costs are rising – “don’t miss the boat”

Still minimal pressure from consumers and

shareholders in Australia

Shareholders yes but stakeholders are asking more questions – e.g.

Supply chain – ethical – sourcing – but is it box ticking?

Who are the main NGO’s in Australia?

Include NGOs + politicians too!

Can we find examples of where CSR approach has made a

tangible difference to business performance: profits, employee

retention...

It can take a jolt - the ‘Nike’ way

Recent FINSIA/ECONTECH report – CSR reporting contributes 2-3% to BL

Lots, ESP in Europe!

Need to create a real sense of urgency e.g. Through data

analysis or nasty incidents within firm that impact upon reputation

Create Business case to support the data

analysis

Reporting - data to support this - get in public

view/stakeholders so they put pressure back on organization

When budgets cut CSR

impacted

Sell, sell, sell financial benefits to business

But... Then CSR supports B.A.U and

will contradict it

Often reflects lack of understanding. Need to

demonstrate the “How” and the “Why”

Support and resources is critical – utilise the

Global structure

But is the Global strategy relevant? Will they focus in

biggest “bang for buck”

Need to begin the journey without them sometimes

but cannot finish it

Give them a business reason to do it – trigger – threat of bad

news/disaster

Must this be “Biz as usual”?Difficult to create ownership

without KPI objectives – “stick” or “carrot”?

Challenges is to get them to own different facets of CSR: in

objectives; discussed at Board meetings

??? Relates to priorities and

understanding

Everyone seems time poor – too busy

How does one put a compelling argument together so they see this as business critical +

therefore prioritise their time?

Integrate CSR into day-to-day activities of

business unitsHow to do

this?

Change management strategies + HR+ NGO

pressure can help

Can we get MDs/CEOs discussing this at forums?

Industry, CEO, others

This makes it harder to have an integrated

approach

Is there shareholder pressure in Australia?

How to go from bottom up to top down?

Not yet put relates to MCM. Industry’s current approach

Consumers aren’t yet walking the talk on sustainable funds: little demand for business to

be active

Is ESG : CSR the answer

Problem is that it still won’t be “mainstream”

Also makes it hard to ensure measurement

Results in ad-hoc-unfocused activities may even cost business

more due to duplication

Yes but creates momentum necessary

before integrating CSR into systems +

structures

Awareness.

• Awareness is key: many people don’t understand what CR exactly is, HBOSA uses BITC model.

• Marketplace which includes creating value for customers; financial inclusion; responsible lending; transparency and dealing fairly with suppliers.

• Workplace which includes diversity; remuneration; culture; and employment conditions.

• Environment which includes waste, energy and water management; and environmental community programs.

• Community which includes wealth creation; purchases of goods and services; tax payments; social initiatives such as national and local community programs; and the HBOS Australia Foundation.

Alignment of business strategy & reports

• Remember your company IS NOT an environmental group, or a social welfare agency.

• Sustainability requires that your business is served by all CR agendas and actions.

• A balanced approach is required.

• Incorporate CR into business strategy.

• Build in, not Bolt on..

Be realistic

• Realistic expectations of what can be delivered.

• Don’t set too high targets that are beyond achievement.

• Don’t be overly comparative: do your own thing, own your own journey.

• Be supportive to your people, praise, praise, praise.

Top Down and Bottom Up

• Think about formal and informal communication process.

• Incentive for staff and executive are highly likely to be different, leading to need to develop appropriate strategies for engagement.

Benchmarking

• Benchmarking adds to legitimacy of CR, executives can see they are part of something greater than the individual business. In turn this builds confidence in CR as a positive way forward.

Reassurance & Sell the benefits

• Identify what your company is doing NOW i.e. many companies have already great achievements in the workplace, and community.

• Show how these things have changed your business for the positive, and then align and include them to your overall CR strategy.

Just at the beginning

• Now 300 CR positions in Australia

• Is CR on the HR journey?

• Even though you may have executive buy in, not everyone may agree, and that’s OK.

• Don’t give up.