CORPORATE SOCIAL RESPONSIBILITY Friend or Foe?

1. CORPORATE SOCIAL RESPONSIBILITYFriend or Foe?

2. AGENDA An introduction to Bill McClory. Trade Unions in the UK. About the CWU. Negotiating Agenda in BT. CSR - UNI perspective. - BT’s approach. - CWU approach. 6. Discussion.

3. INTRODUCTION TO BILL McCLORY • Senior Officer of CWU Telecoms Responsible for CWU members in: - BT Global Services Division - Computacenter - Hewlett Packard • Member of BT’s European Works Council • Trustee of BT Pension Scheme (BTPS - Assets of £35 billion including £1.9 billion invested in Japan - 77,000 members and 275,000 pensioners. • UNI representative DU Social Dialogue Telecoms Sector. - President of Work Organisation Working Group which includes CSR.

4. Trade Unions in the UK Trade Union Membership in UK – 2004 • 17.2% of private sector employees were Union members. • More women employees in Trade Union membership than men. • Membership rates were highest among black employees compared to white employees.

5. Women’s Union membership stepped ahead of men’s for the first time. • There are now about 26,000 more women employees in membership than men (3,269,000 women, 3,243,000 men). • Total Union membership appears to have held steady at 6.5 million members.

6. Less than one in five (17.2%) private sector employees were Union members in 2004. Private sector Union density slipped by 1.0 percentage point. • Membership rates are highest among black or black British employees (32.5%) compared with white employees (29.0%). • Unionisation peaks among employees with degree or other higher education attainments. • About one in 10 workers with less than a year’s service are in a Union.

7. The overall influence of collective bargaining is much wider than Union membership. Nearly half (48.4%) if employees are in a workplace with a Union presence. • Members earned on average £11.38 an hour in Autumn 2004, or 17.1% higher than non-members at £9.72 an hour.

8. ABOUT THE COMMUNICATION WORKERS UNION • Membership Total 226,780 Telecoms 75,990 • Recognition in over 30 Telecoms Companies. • 6th largest in British Trades Union Congress.

9. Negotiating Agenda in BT STRATEGY • Transformation from Telecoms Company to ICT Company. • Growth Strategy. • Off-shoring. • Disposals/Outsourcing. • Regulation.

10. Direct Members Issues • Employment Security. • Training/Reskilling. • Work/Life Balance. • Pensions. • Age Discrimination.

11. Corporate Social ResponsibilityA CWU/UNI Europa Telecoms Perspective

12. UNI and Corporate Social Responsibility WHAT IS CORPORATE SOCIAL RESPONSIBILITY? • No universally agreed definition • Different perceptions: - desirable goal - substitute roles of Governments and Trade Unions - public relations • Even some doubt whether CSR is the right term to use

13. UNI and Corporate Social Responsibility • DEFINITIONS • It is not about “doing good”, it is not even about being seen to be doing good, it is about recognising a Company’s responsibility to all its stakeholder groups and acting in their best interests. • Corporate social responsibility is the overall relationship of the corporation with all of its stakeholders. These include customers, employees, communities, owners/investors, government, suppliers and competitors. Through effective CSR practices,

14. organisations will: achieve a balance between economic, environmental and social imperatives; address stakeholder’s expectations, demands, and influences; sustain shareholder value. • CSR is a “concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”.

15. UNI and Corporate Social Responsibility CSR is: • Voluntary • International • Company driven • An alternative to regulation?

16. UNI and Corporate Social Responsibility CSR is not: • Corporate Governance • Binding • An end in itself

17. UNI and Corporate Social Responsibility CSR THE CHALLENGES & OPPORTUNITIES CAN TRADES UNIONS USE CSR TO ADVANTAGE OR SHOULD IT BE IGNORED?

18. UNI and Corporate Social Responsibility • Unions need to take action • WorldCom MCI • Enron • Parmalat • Global Crossing

19. UNI and Corporate Social Responsibility Essential Elements • Transparency • Labour standards, union rights and workers rights • Social and environmental concerns are integrated into the business operations eg. procurement • Independent verification of CSR performance • There is interaction with the stakeholders;

20. UNI and Corporate Social Responsibility • Global Framework Agreements • Telefónica • OTE • Carrefour • ISS • H&M

21. UNI and CorporateSocial Responsibility • Global Framework Agreements • Give workers rights • Labour standards • Respect of workers • Social dialogue • Sustainable development • Respect for the environment

22. UNI and Corporate Social Responsibility • ILO Declaration on Multinationals • Child labour and Forced labour • Freedom of association • Collective bargaining • Non-discrimination and equal opportunity • Hours of work, Wages and Equal remuneration • Health and safety • Job security and Training • Disciplinary practice • http://www.ilo.org

23. UNI and Corporate Social Responsibility UNITED NATIONS GLOBAL COMPACT • The Ten Principles • Human Rights - Businesses should: • support and respect the protection of internationally proclaimed human rights. • make sure that they are not complicit in human rights abuses. • Labour standards - Businesses should: • uphold the freedom of association and the effective recognition of the right to collective bargaining • the elimination of all forms of forced and compulsory labour. • the effective abolition of child labour • the elimination of discriminationin respect of employment and occupation.

24. UNI and Corporate Social Responsibility Environment - Businesses should: • support a precautionary approach to environmental challenges • undertake initiatives to promote greater environmental responsibility • encourage the development and diffusion of environmentally friendly technologies Anti-corruption - Businesses should • work against all forms of corruption, including extortion and bribery

25. UNI and Corporate Social Responsibility • OECD Corporate Governance Guidelines • The rights of shareholders and key ownership functions • The equitable treatment of shareholders • The role of stakeholders in corporate governance • Disclosure and transparency • The responsibilities of the board http://www.oecd.org/daf/corporate-affairs/

26. UNI and Corporate Social Responsibility • Other Issues That Need to Be Considered • Socially responsible investment (SRI)

27. UNI and Corporate Social ResponsibilityEuropean TelecommunicationsNetwork Association (ETNO) • 41 member companies • 34 European countries • Employing 1 million plus employees • Total turnover €190 billions

28. UNI and Corporate Social ResponsibilityETNO SUSTAINABILITY CHARTER - 17 signatories (originally 25): BT, Cesky Telecom, CYTA, Deutsche Telekom, France Telecom, KPN, Maltacom, MATAV, Portugal Telecom, Slovak Telecom, Swisscom, TDC, Telecom Italia, Telefonica, Telekom Austria, Telenor and TeliaSonera • Original charter signed in 1996 • Includes: - awareness `- regulatory compliance - accountability - employee relations - procurement - research & development - co-operation

29. UNI and Corporate Social Responsibility • Adheres to Global reporting initiative • Promotes principles of global impact • Reports every 2 years (2004 report being prepared)

30. UNI and Corporate Social ResponsibilityUNI EUROPA TELECOM OBJECTIVES • Agree joint statement with ETNO • More specific reference to: - Workers Rights - Human Rights - Transparency - Monitoring, implementation - Regular performance assessment

31. UNI and Corporate Social Responsibility REMEMBER!! • CSR is not a substitute for or an alternative to strong, free Trades Unions and collective bargaining • It might, however, assist Trades Unions in achieving their goals

32. UNI and Corporate Social Responsibility CSR in BT 1. “Corporate social responsibility is an essential part of BT’s overall strategy, whereas corporate social responsibility tends to focus on the social side.” – BT STATEMENT

33. UNI and Corporate Social Responsibility 2. “Corporate responsibility includes things like the way we govern ourselves – and governance is a big issue for businesses, particularly after Enron and Shell and so on. So “corporate responsibility” captures the wider sense of all the risks and opportunities in the way we run our business. It goes into all aspects of our strategy, policies, practices, behaviour, values, supplier management – you name it. It covers the whole gamut of all the things BT does.” – BT STATEMENT

34. UNI and Corporate Social Responsibility 3. “Corporate social responsibility (CSR) can be defined as business’s contribution to the long-term well-being of society. It’s all of those things that we do over and above our legal requirements; all the voluntary things we do to try to be a responsible and caring business.” – BT STATEMENT

35. UNI and Corporate Social Responsibility BT’S CORPORATE RESPONSIBILITY PROGRAMME • EDUCATION • BID SUPPORT • DIGITAL INCLUSION • ENVIRONMENT • BUSINESS GAME • BUSINESS CASE • INTERNATIONAL

36. UNI and Corporate Social Responsibility • CSR is not a substitute for or an alternative to strong, free Trades Unions and collective bargaining • It might, however, assist Trades Unions in achieving their goals

37. DISCUSSION