Corporate Social Responsibility: Bringing it Down to Earth for Home Builders

1. Corporate Social Responsibility:Bringing it Down to Earth for Home Builders Presentation to the London Home Builders’ Association

2. Agenda • A bit of business history. • Why does CSR matter to home builders? • The Environment—a good news CSR story that few understand.

3. CSR is About Business & Society- after 2,500 years, it is still being debated “Treating people with respect will gain one wide acceptance and improve the business.” Tao Zhu Gong, 500 B.C. “A business that makes nothing but money is a poor kind of business.” Henry Ford, 1863-1947 "Ethics is the new competitive environment" - Peter Robinson, CEO, Mountain Equipment Co-op

4. A bit of history Early CSR • In 1895, George Cadbury, a Quaker, bought 120 acres and started building houses for his workers. • The village of Bourneville grew to include more than 300 houses - and the Cadbury chocolate factory. • Education and medical care were provided for workers and their families.

5. A bit of history Why did Cadbury do this? Because it worked for his company, for his employees and for the community – the “triple bottom-line” that CSR is focused on today.

6. The idea that a successful business has responsibilities to the community, to employees and to society is not new. What’s changed is the public’s trust that businesses operate this way, and their tolerance if companies don’t.So what happened?

8. Bhopal, India 1984

9. Exxon Valdez, 1989

10. Consumer Activism

11. Rich Crooks

13. How do you treat your workers?

14. Are yourproductsresponsible?

15. What’s the real impact? • Mistrust and cynicism towards big business • Greater public scrutiny & NIMBYism • Calls for action and more regulation by governments • Lawsuits and interventions by public interest groups, boycotts and demonstrations. • A business environment where public opposition to business activities has become the norm.

16. Corporate Social Responsibility By the late 1980s, large multinational companies began to look for ways to proactively respond to public mistrust, in order to retain control of their businesses. This process became known as Corporate Social Responsibility

17. So What is CSR? • Say what you stand for (values/commitments) • Acknowledge your duty of careto others (employees, customers, society, environment, etc) • Accept transparency (let others see how you do things) • Be accountable and truthful (“own” your actions) • Embrace continuous improvement (strive to become better at everything you do)

18. CSR is not about being “nice” "Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do, or because people are forcing us to do it... but because it is good for our business" - Niall Fitzerald, Former CEO, Unilever

19. Does CSR Apply to Builders ? Community Economy Builder Environment Employees

20. CSR Principle #1 Operating your business profitably is socially responsible. Creating jobs, economic activity and capital goods provides enormous social benefits. All other CSR actions must be consistent with profitable business operation.

21. What are the Industry’s Key Issues? • Consumer satisfaction and trust. • Communities that fail to see that responsible growth is essential and positive. • Environmental protection. • Regulation and government-imposed costs. • Shortage of skilled people.

22. CHBA Member Builder’sStatement of Business Values and Commitments • Responsibility to customers • Community involvement and investment • Environmental commitment • Business practices and performance • Human resource development • Workplace health and safety

23. What are the Potential Business Benefits of Effective CSR Programs? • Easier to attract and keep good employees. • Encourages more loyal and productive staff. • Invites less government intervention. • Reduces credit risk from external events. • Less likely to provoke public opposition. • Creates more satisfied customers. • Builds and protects business reputation. • Improves business opportunities. • Delivers better profitability. • Improves business sustainability. • Supports public “license to operate”

24. The Good News Most builders already operate in many ways that are consistent with CSR principles.Builders often do this instinctively, because they want to “do the right thing”. They don’t see it as “CSR”.And they don’t get credit for it.

25. BUT . . . • CSR is not about “public relations”. • Public relations = “spin”, and spin doesn’t work anymore. • CSR is about “public relationships”. • The “walk” needs to come before the “talk”. • We will be judged on our performance

26. CHBA Builders’ Guide to CSR • It will explain the business case for CSR – why it matters and what the benefits can be. • It will provide case study examples of what other builders are doing successfully. • It will provide specific self-assessment tools to assist builders in developing their own plans and actions.

27. The EnvironmentWhere Do We Stand as an Industry? • If you listen to our critics: environmentalists, anti-growth advocates, some media and too many of our politicians, WE ARE THE PROBLEM. • If you look at the facts, we have achieved a lot and are environmental leaders.

28. Energy Use Trends 1990 - 2004(end use/all forms) Source: Natural Resources Canada

29. Key Trends 1990 - 2004 Source: Canadian Council of Ministers of the Environment

30. Climate Change Emission Trends 1990 - 2005 Source: Environment Canada

31. “Green” Industry Trends • Explosive growth. • Renewable energy = 20%/year • $66 billion on 2007. • Wind energy = 17%/year • Solar electric = 46%/year • Clean energy R&D investment = 75%/year • Many of these developments will deliver new technology and products for the home building industry. We need to be ready.

32. “Management is doing things right; • leadership is doing the right things.” • Peter F. Drucker • “Change is inevitable • - except from a vending machine.” • Robert C. Gallagher, Chairman (Ret.), • Associated Banc-Corp.

33. Questions? Discussion?