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TRIPLE P

TRIPLE P. PEOPLE, PLANET, PROFITS. CONTENT. TRIPLE P: TINA! CSR: NOWHERE TO HIDE EU CORPORATE REPORTING CONSUMER CARE CSR AS MAINSTREAM GOBAL ISSUE ISSUE MANAGEMENT & CSR CSR BUSINESS BENEFITS STRATEGIC IMPLEMENTATION. You can’t eat Principles …. but you can taste their fruits!.

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TRIPLE P

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  1. TRIPLE P PEOPLE, PLANET, PROFITS

  2. CONTENT • TRIPLE P: TINA! • CSR: NOWHERE TO HIDE • EU CORPORATE REPORTING • CONSUMER CARE • CSR AS MAINSTREAM GOBAL ISSUE • ISSUE MANAGEMENT & CSR • CSR BUSINESS BENEFITS • STRATEGIC IMPLEMENTATION

  3. You can’t eat Principles … • but you can taste their fruits! • SOURCE: Dr Brian Smith / PragMedic consultancy

  4. TRIPLE P: There Is No Alternative • There are growing political and legislative demands on businesses to demonstrate CSR, Corporate Social Responsibility • For stakeholders, CSR knows no borders • Future ISO 26000 uniform guidelines • Sources are evolving from purely functional entities into emotional, value-based Countries of (Proud) Origin • Sources not only make or break products and brands, but above all make or break whole companies • Sourcing country values, business values and brand values will be communicated as seamless extensions of the corporate whole CSR by KDB 4

  5. CSR: Nowhere to hidesource CIM • The Internet has put company ethics under close scrutiny • Web-enabled communication means that geography is history • Transparency happens with the speed of light • Any supplying company that breaks its promise risks the scrutiny of every sourcing buyer, business analyst, pressure group and consumer worldwide • Legislators (and ISO) are EU'S gatekeepers

  6. EU Corporate Reporting Regime • Operating & Financial Review (OFR) should include the social & environmental issues that have a significant impact on company performance & future prospects • As in the existing regime for financial statements, directors will be liable for defective OFR’s • The aim is to improve standards of corporate governance & transparency • Companies are expected to include information about policies on employees, customers, suppliers and the impact on society & environment • This gives MNC’s little choice but to formulate & manage an effective CSR strategy & programme

  7. EU Corporate Reporting Regime • For example, a food producer will have to report on key issues of consumer concern, like GM crops or the use of pesticides and the tracebility thereof

  8. Consumer care: The extremesource: New Scientist • Warning: • This product moves when in use • Do not use for your personal hygiene

  9. Consumer care: The extremesource: New Scientist • After anal use, do not • use orally. • Remove the child before folding.

  10. Consumer care: The extremesource: New Scientist • Never remove food or other things from the knives, when the blender is in use! • Dangerous when swallowed.

  11. Consumer care: The extremesource: New Scientist • Do not eat the ink • Do not use as ladder

  12. Consumer care: The extremesource: New Scientist • These cross bike leg protectors do not protect the body parts which they do not cover. • Do not use this smoke detector during emergencies: It will NOT extinguish the fire.

  13. CSR: Some opinionssource CIM • CSR is set to be a mainstream global issue • Customers increasingly look for a company with a genuinely moral stance • Companies not engaging in CSR are under-managing their economic self-interest • Doing the right thing should be embedded into the core business • The unethical marketer is an endangered species • US children are growing up believing that COKE and DORITOS are major food groups

  14. The evolution of Issue Management • 4. Adaptive Issue Management: • adherence to global citizenship & NGO’s • organizational adaptation to the risk society • swot, business modeling & benchmarking: frontline responsibility with clear accountabilities • “common” issues have become an integrated part of leadership: rewarding assessments • knowledge management • 3. Preventive Issue Management: • issue scenario building: the “what if’s” • management by issue objectives • hoping to be “in control” again; training • corporate control & directives: general business principles; self-assessments • frontline accountability: non-financial auditing • coercive performance measurements FUTURE • 1. Situational Issue Management: • operational pressure, leading to an opportunistic & short sighted approach to business: irritation & defense • each issue represents a crisis: the “solve and forget” approach • non-coordinated damage control: “under the carpet” • management focus on operational results • 2. Curative Issue Management: • management by exception; defensive • corporate control & directives: the don’t do’s • centralized damage control approach • “standard” solutions for “common” issues • delegation of responsibilities with post-activity reporting • no clear control points; no clear accountability PAST

  15. Increased profit & greater growth rate Access to capital (Socially Responsible Investment SRI) Reduced operating costs (reducing waste, increasing energy efficiency, using recycled materials) Enhanced brand image & reputation Increased sales & consumer loyalty Increased productivity & quality (www.bsr.org) Increased ability to attract & retain employees Reduced regulatory oversight Improved risk management Get competitive Top 10 CSR Business Benefitssource CIM

  16. The Business Environment The Physical Environment (“respect”) • Natural: Health, Safety, Environment (HSE) with a company as accountable party within the framework of its general business principles • The Symbolic Environment (“coexistence”) • Man-made: The functioning of a company as a social system (with its own identity) therein within the framework of its Code of Conduct

  17. The CoC: Code of Conduct • The CoC is super-dominant • The CoC determines the environmental behaviour of a (sourcing) company • The CoC is a compulsory and continuous management & staff reflex • The CoC is a cornerstone of a company’s own identity • The CoC is a measurable business protocol

  18. Strategic Implementation of Corporate Social Accountability (1) • Where are we now? • 40% Curative Issue Management • 60% Preventive Issue Management • Where are we heading for? • 40% Preventive Issue Management • 60% Adaptive Issue Management • How? • Corporate commitment to the CoC and the creation of an overall awareness momentum • Provision of concrete CoC management tools • Why? • 99,9% of the issues appear at operational frontline level and require adequate and alert reactions of tactical nature

  19. Strategic Implementation of Social Accountability (2) • The definition of the “front line”: • The company’s interfaces with the global citizens, who all are our stakeholders: • final consumers • employees & their families • trade partners & competition • trade unions • governments • political parties • (international) institutions • churches • Sub-political parties (NGO’s) • and last but not least … THE PRESS

  20. Strategic Implementation of Corporate Social Accountability (3) • A combined CoC Business Model and Issue Knowledge Model will give answers and provide guidelines to the following questions of suppliers: • What are the current issues, that are of relevance for my business? • Stakeholders perception • Corporate position • Why do I have to take them serious? • Should I involve external parties? • How do I include these issues in my management mix? • Is there any corporate directive and common practice? • How to formulate the critical moments? • Where do I get information and support? • Where to find experienced colleagues with regard to • this issue?

  21. Strategic Implementation of Social Accountability (4) Strategy development: from A (status quo) to B (desired state) with C (strategy) The primary goal of the Strategy is improvement - not surveillance or management by proxy: “fact finding, not fault finding” • BOTTOM-UP ACTIVITIES AT OPERATIONAL LEVEL: • Managerial reflex: CoC integration in business processes • Turning CoC into useful management tool, fulfilling the operational needs • Start of the CoC learning curve by means of inter-company benchmarking & dialogue • Supplier self-assessment, creating top issue fitness and continuous performance improvement • CoC knowledge management • Corporate added value: CoC coaching and support by means of issue-directed taskforces • CoC as management skill with corporate reward • TOP-DOWN INITIATIVES AT CORPORATE LEVEL: • Establishment of CoC • CEO endorsement • Company & corporate communication • Buyer’s feedback • Annual reporting • Social accountability team • Environmental & social report • Corrective & coercive integrity measures • Defining responsibilities • Development of control instruments B A C

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