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together we can make it true 1 Corporate Social Responsibility and HR Roles True Corporation Plc. Presented by : Theerawuti Kongpricha Date :18/07/06 together we can make it true
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Corporate Social Responsibilityand HR Roles
True Corporation Plc.Presented by : Theerawuti KongprichaDate :18/07/06
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Agenda
Perspectives on HR’s Roles
Needs for Broadening HR Agenda
What is CSR?
CSR Business Cases for HR
Moving Forward with CSR
Guidelines for CSR Initiatives
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HR’s Roles: HR’s Perspective
Organization
HR Management
TalentAttraction
InternalQuality
EmployeeEngagement
ValueCreation
Service & Solution Value
Customer Satisfaction
Customer Royalty &
Commitment
Growth
Profitability
BusinessResult
Employer of Choice
Employee Engagement Customer Engagement
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HR’s Roles: the CEO’s Perspective
Travel and Entertainment
Advertising
Tax and Government Incentives
Outsourcing
Strategic Sourcing
Consolidation
Automation
Re-engineering
Source: Deloitte Research: Fit for the Future
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HR’s Roles: the CFO’s Perspective
Customer Satisfaction
Profitability
Innovation/Product Development
Success in Integrating/Acquisitions
Revenue per Employee
Speed to Market
Growth
Source: CFO Research Services & Mercer Human Resource Consulting: Human Capital Management: the CFO’s Perspective.
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Needs for Broadening HR Agenda
“ 72% of respondents believed the Enron and WorldCom scandals
revealed a pattern of deception by a large number of companies rather
than being isolated incidents.Two in Five respondents believed that the
moral and ethical standards of chief executives were poor – twice as
many as thought they were good.”
“ Over 25,000 individuals across 23 countries on six continents
revealed they form their impressions of companies by focusing on
corporate citizenship.”
Source: A poll of US adults undertaken for Time/CNN in July 2002
Source: Millennium Poll on Corporate Social Responsibility
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What is CSR?
Governance
Corporate Governance
Corporate Social Responsibility
Corporate Responsibility
Corporate Sustainability
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Halliburton – a Texas oil-field company Dick Cheney ran before he became
Vice President. Halliburton is the largest oil-and-gas services company in the
world and it is also one of the most controversial corporations in the United
States. The company has been the number one financial beneficiary of the
invasion of Iraq, raking in some $18 billion in contracts to rebuild the country’s oil
industry and service US troops.
Source: Halliburton Watch.org
The Halliburton Agenda
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Corporate Governance
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Top 5 Best Corp. Citizens 2005 vs. 2006
2005 2006
1 Cummins Inc. Green Mountain Coffee Roaster, Inc.
2 Green Mountain Coffee Roaster, Inc. Hewllete-Packard Company
3 St Paul Treveller CosInc. Advanced Micro Devices, Inc.
4 Nuveen Investment Inc. Motorola, Inc.
5 INTEL Corporation Agilent Technologies, Inc.
CompanyRank
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100 Best Corporate Citizens 2006
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Hewlett-Packard CSR Program
Source: http://www.socialfunds.com
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Corporate Social Responsibility
“The business commitment and contribution to the quality of
life of employees, their families and the local community and society
overall to support sustainable economic development”
Source: The World Business Council for Sustainable Development.
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4 Pillars of CSR
ECONOMIC – the enterprise has a responsibility to make a profit so it
can give a return on investment to shareholders.
COMPLIANCE – the enterprise has a responsibility to obey all laws –
local, national and international.
SOCIETY– the enterprise has a responsibility to do what is considered
fair and just in its community.
ENVIRONMENT – the enterprise has a responsibility to play its part in
improving the environment.
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1. Demonstrating HR’s return on investment
2. HR’s role in promoting corporate ethics
3. Building people management and human capital components into key
business transactions.
Source: The SHRM 2004-2005 Workplace Forecast: A Strategic Outlook
Key HR Trends
Some actions are taken by HR Leaders:
* 63% are increasing spending on learning and training initiatives.* 40% are changing company policy as a response to environmental
issues.* 36% are changing company policy as a response to grassroots
pressure to change specific business practices.* 32% are increasing involvement in social programs.
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CSR Business Cases for HR
Brand and Reputation Enhancement
Risk Management/License to Operate
Employee Engagement
Innovation and Learning
Access to Capital
Financial Performance
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Brand and Reputation Enhancement
“It is estimated that 96% of Coca Cola’s value comprises intangibles,
reputation,knowledge and brand. For Kelloggs and American Express’ are 97% and 84% respectively.”
“Two out of three people want companies to go beyond making money and contribute to broader society goals.”
“BT plc. believed that the reputation it has gained as a result of
its CSR activities is maintaining and building its market share in a competitive market.”
“It is estimated that CSR accounts for over 25% of image and reputation impact on customer satisfaction”
Source: Interbrand
Source: Millennium Poll on Corporate Social Responsibility
Source: Ethical Performance
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2005 Global Brands
Source: BusinessWeek/Interbrand, Business Week, July 2005
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Risk Management/License to Operate
“86 % of institutional investors across Europe believe that social and environmental risk management will have a positive impact on a company’s long term market value”
“CSR offers more effective management risk,helping companies to reduce avoidable losses,identify new emerging issues and use positions of leadership as a means to gain competitive advantage by influencing new regulation to strengthen competitive advantage”
“Gap, Inc. released its first Social Responsibility Report, emphasizing the organization's commitment to working with key players to create industry-wide change. It also took a proactive stance on employee treatment by prohibiting child labor, forced labor and discrimination and protecting freedom of association for workers.”
Source: Taylor Nelson: The European survey on SRI
Source: Arthur D, Little: Realizing the Sustainable Development Premium
Source: Gap, Inc. (2004). Gap, Inc.: Social responsibility report, 2003.
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Employee Engagement
“A new breed of job seeker is placing ethical issues above financial incentives when considering a job offer.Future job packages need to reflect this new found ethical consciousness among job seekers if companies are to maintain their appeal.”
“Three in five people want to work for a company whose values are consistent with their own.”
“The talent war is evidenced by an influx of ‘ best places to work ‘ awards”
Source: Environics: Global Campus Monitor
Source: HR Magazine: Corporate social responsibility: HR’s leadership role
Source: totaljobs.com
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Innovation & Learning
“A survey conducted in 1983 found that,one third of the firms in the Fortune 500 in 1970 had vanished. Although the death of these firms may be attributed to economic change and redistribution of resources, high corporate mortality is a symptom of deeper problems that afflict all companies that most organizations learn poorly.”
“80% of European business leaders believed that responsible business practice allowed companies to invigorate creativity and learn about the marketplace
“Many companies are co-innovating with business partners to identify new approaches that deliver business benefits whilst tackling social and environmental issues such as Nike has programme with its material suppliers to collect 100% of their scrap and recycle it into the nextround of products, reducing production cost and waste”
Source: Peter Senge: The Fifth Discipline
Source: Business in the Community
Source: MIT Sloan Management Review: Innovating Our Way to The Next Industrial Revolution
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Access to Capital
“The investment community is increasingly regarding corporate social responsibility as a proxy of the quality of management of a company.”
“Within the next 10 years evaluation methods used by Wall Street analysts will include new metrics--social performance and intellectual capital--to more accurately assess the net worth of a company.”
“Dow Jones Sustainability Indexes track the financial performance of leading sustainability-driven company worldwide.”
“Domini Social Investments screen companies for corporate citizenship, diversity, employee relations, non-U.S. impact, environmental responsibility and safe and useful products.”
Source: Arthur D, Little: The Business Case for Corporate Responsibility
Source: PricewaterhouseCoopers, News Release
Source: sustainabilityindex.com
Source: domini.com
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Financial Performance
“A key characteristic in distinguishing the ‘visionary’ companies from their
peers was having a core purpose beyond making money. One dollar investing in
in 1926 in a fund comprised visionary companies would have grown to $6,356 by
1990, compare to $955 for a dollar invested in the comparison group.”
“A study of FTSE 250 shown that companies with an ethical code in place
for over five years outperformed the average on economic and market value-
added.”
“Nearly 70% of CEO’s say that Corporate Responsibility is ‘vital’ to
profitability.”
Source: Collins and Porras: Build to Last
Source: The Institute of Business Ethics
Source: PWC 5th Annual Global CEO Survey: Uncertain Times,Abundant Opportunities
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Moving Forward with CSR
In the Work Place: Employee wellness strategies, Work-Life Balance,
Health & Safety, share ownership, training and development.
In the Community: Business-Community partnerships (day-care centers,
public libraries, skills development centers etc), bursary schemes,
apprenticeships, staff voluntary internships in community-based
organizations/NGOs/local authorities, human rights, sports and recreation.
Towards the Environment: Joint environmental committees, joint
ecological disclosures, support to conservancies, reforestation etc.
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Guidelines for CSR Initiatives
Global Reporting Initiative(GRI)
SA 8000
AA 1000
UN Global Compact
World Business Council for Sustainable Development
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SA 8000 Standard Elements
Child Labor
Forced Labor
Health & Safety
Freedom of Association and Right to Collective Bargaining
Discrimination
Discipline
Working Hour
Compensation
Management Systems
Source: Social Accountability International
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Human Rights- Support and respect the protection of internationally proclaimedhuman rights.
- Ensure that they are not complicit in human rights abuses
Labour Rights- Uphold freedom of association and the effective recognition of theright to collective bargaining.
- The elimination of all forms of forced and compulsory labour.- The effective abolition of child labour.- Eliminate discrimination in respect of employment and occupation.
10 Principles of UN Global Compact
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10 Principles of UN Global Compact
Environment- Support a precautionary approach to environmental challenges.- Undertake initiatives to promote greater environmental responsibility.- Encourage the development and diffusion of environmentally friendlytechnologies.
Governance- Businesses should work against all forms of corruption, including extortionand bribery.
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Thank you
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