CSR Master Class Case Studies

8/6/2019 CSR Master Class Case Studies

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IBMs On Demand Community is a global volunteering programme which supports itsemployees in becoming volunteers and provides them with IBM technology tools for use

in non-profit community organisations and schools. The programme demonstrates IBMsability to deliver innovative solutions to social issues.

The company

IBM is a global information technology and business consultancy business, whose originscan be traced to the end of the 19th Century with the invention of the tabulating machine.

The company was first listed on the New York Stock Exchange in 1911 and is the oldestTechnology Company in the world.

IBM has two inter-related key business strands: first, to strive to lead in the invention,

development and manufacture of advanced information technologies, including computersystems, software, storage systems and microelectronics; and secondly, to translate these

advanced technologies into value for customers through professional solutions, servicesand consulting businesses worldwide. To deliver these services to clients IBM operates in

163 countries. In the UK it employs a workforce of around 21,000 and has an additional5,000 agency staff.

IBMs approach to corporate social responsibility (CSR) is traceable back to its founders

in America. They committed IBM to a broad definition of leadership: to be a trusted

partner for customers, a reliable long-term investment, a progressive employer and aresponsible corporate citizen. Corporate milestones include: 1914, when IBM hired itsfirst employee with a disability; 1935, when it declared that men and women would do

the same kind of work for equal pay; and 1953, when it established a formal equalopportunity policy. More recently, in 1984 IBM incorporated sexual orientation into this

policy.


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This case study focuses on IBMs On Demand Community, which provides resources and

structures to support volunteering among IBM staff.

The drivers:

A key driver for IBMs approach to CSR is the need to maintain its market position in achanging business environment. IBM recognises that CSR benefits the companys

business by helping enhance a companys reputation so increasing its brand value.Further benefit from CSR comes from demonstrating thought leadership. For IBM

thought leadership includes being recognised as contributing to shaping the agenda ofpolicy and practice outside of the company, whereby IBM is recognised for both great

products and great ideas. Other benefits of CSR include staff retention and recruitment.This is important to us as a knowledge-based company, where much of our value resides

in the collective intellectual capabilities of our staff. This too drives our approach, saidMark Wakefield, IBM UKs Corporate Community Relations Manager.

Taking action:

In the early 1990s IBM misjudged the importance of the emerging desktop computer

hardware and software market. Part of its turn around strategy involved re-engineering

itself to focus on its unique competency of being a complete IT solutions provider.

More recently IBM has, under the leadership of its new global Chief Executive, Sam J

Palmisano, conducted a major review of the values of the company, with opportunitiesfor full involvement from 319,000 staff around the world.

Following the review, in spring of 2003 over 300 senior executives met at their annual

meeting to consider, amongst other matters, the next great ideas that would guide IBM,promote its new technology strategy On Demand computing and exemplify the three

core values of the company: dedication to every clients success; innovation that matters,for our company and for the world; trust and personal responsibility in all relationships.

One of the ideas selected by the senior executives - the IBM On Demand Communityemployee volunteering programme - was launched in November 2003. The momentum

behind realising the idea was generated by the personal championing of On Demand by

IBMs vice-president for Corporate Community Relations, Stan Litow.

IBM On Demand Community seeks to encourage and sustain corporate philanthropythrough volunteering. Volunteers provide the mechanism to deploy valuable IBM

technology tools targeted at schools and non-profit community organisations. Theprogramme is designed to encourage staff engagement with the community in a variety of

ways e.g: by acting as advisors to charities; supporting local schools as governors;running workshops and training sessions; and being mentors to young people.


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The volunteering programme was developed and launched in just six months. During that

time virtual workshops involving IBMers from around the world in the creation of thematerials for the programme were held. Work was completed with HR and legal

departments on, for example, the legal issues of volunteering arising from differing

national legislation. An intranet website was developed containing a database oforganisations providing opportunities for volunteering. In November 2003 IBMscampaign to recruit 25,000 of its staff as volunteers commenced, underpinned by a new

On Demand Community intranet and actively championed around the world by IBMsregional and country Chief Executives.

The scheme works as follows. Once registered on the site, IBMers have immediate access

to a full range of technology solutions that support IBMs commitment to its philanthropic priorities: advancing achievement in schools; working to promote digital

inclusion; and improving strategies and outcomes for non-profit organisations throughtechnology. Resources on the site also enable employees to receive on-line training to

improve their capability as volunteers. Volunteering occurs in the employees own time,although with flexible working this can be during working hours. The intranet site helps

employees to select their volunteering depending on how much time they have to give.

Volunteers are asked to track and log the time they give. If they achieve 40 hours in fivemonths they can nominate the organisation that they are volunteering with to receive a

donation of either IBM equipment or a small cash grant. The donation process assessesbids against specific criteria and there is a sliding scale for equipment donations up to the

value of 4,000, depending upon the numbers of volunteers involved and whether any ofthe resources available on the On Demand Community intranet site have been used.

Examples of volunteering in the UK include IBMers using their consulting skills to assisthead teachers on the processes of managing change within schools, to improve standards

of education. Well over 600 IBMers are currently providing virtual mentoring from IBMstaff, for school students, through the IBM MentorPlace programme, launched in the UK

in 2002. The scheme focuses mainly on students studying subjects such as IT, scienceand business studies. Mentors provide practical advice and study support. So far over

1000 students from more than 35 schools across the UK have benefited.

IBM volunteers are helping to introduce technology appropriately to nursery schools. ITequipment in nurseries has tended to be second-hand, and teaching was done by staff

with limited knowledge of technology and even less confidence in using it. IBM donates

specially developed units - KidSmart installations - to not-for-profit or state run nurseriesin areas of significant disadvantage, that are selected by professionals as part of itsKidSmart Early Learning programme. The programme aims to provide young children

with access to technology, better preparing them for life-long learning and it contributesto digital inclusion. Since 2000 over 650 KidSmart computer units have been donated in

the UK alone and many thousands more worldwide.


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volunteering, IBM is demonstrating corporate responsibility that goes well beyond

compliance.

What next?

IBM UK has developed a volunteer extranet for its pensioner community, who numberaround 10,000 in the UK. IBM wrote to them in April 2004 and invited them to register

on the new website in June. In the coming months it intends to review and consolidate thevolunteer programme, developing new resources to add to what already is available on

the intra and extranets.


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Establishment of a sustainable agriculture initiative to secure a sustainable supply of raw

materials necessary to deliver the business and its brands.

The company

Unilever's origins in the UK date back to 1885, when the Lever brothers launchedSunlight, the world's first packaged laundry soap. The product's success in the UK was

quickly emulated globally, resulting in Lever Brothers acquiring many businessesworldwide. In 1930, Lever Brothers agreed to a merger of equals with the Netherlands-

based Margarine Union to form Unilever, thus creating the present company.

Through a series of acquisitions including Bestfoods, the second largest ever cashacquisition (in 2000), Birds Eye Foods (1943) and Ben & Jerrys (2000) Unilever has

become a global company with a portfolio of well-known brands including Dove, Persil,Lux, Knorr and Flora. Unilever manufactures and markets food and home and personal

care products to consumers in approximately 150 countries. It employs 227,000 peopleworldwide.

Unilever is heavily influenced by its five-year strategic focus on leading brands,improving operating margins and increasing top-line growth, and by its mission to add

Vitality to life meeting everyday needs for nutrition, hygiene and personal care with its


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brands to help people feel good, look good and get more out of life. The strategic plan

and its mission seek to link the business and its brands shaping its future direction. Thisincludes addressing concerns about the environment and wider sustainability issues.

Unilevers approach to sustainability involves the implementation of its environmentalstrategy which includes three sustainability initiatives covering fish, water, andagriculture. These initiatives were chosen as they represent areas where Unilever can

make a measurable difference.

This case study focuses on Unilevers Sustainable Agriculture Initiative in recognition of

the growing pressures placed by agriculture on natural resources.

The drivers

To understand the drivers that shaped the Sustainable Agriculture Initiative it is useful torecognise the current global context in which agriculture is under severe pressure. This is

indicated by the following statistics: 40% of agricultural land suffers soil degradation,agriculture uses 70% of the worlds fresh water resources whilst 40% of the global population experience water scarcity. Within this context Unilever sources its raw

materials from agriculture, so in purely business terms, it makes sense to ensure thesupply is sustainable (providing continued availability of its products) and this was one of

the drivers for the initiative. Unilever also wanted to extend its knowledge and insightbeyond its comfort zone, exploring areas like biodiversity and soil health, which were

becoming of increasing concern to society, politicians and regulators. In summary,Unilever wanted to understand better the current and emerging issues that may affect the

business.

Taking action

The main aim of the Sustainable Agriculture Initiative, established in 1998, was to

ensure the continued availability of Unilevers key crops by defining and adoptingsustainable agriculture practices in the supply chain. The Initiative sought to develop: a

definition for sustainable agriculture; principles of purpose and intent; indicators to focusspecific areas of work; parameters and guidelines that lead to measurable improvements.

This was the first time that the company had attempted to consider these issues.

From the outset Unilever recognised the value of engaging with its various internal andexternal stakeholders to help shape the Initiative and invited them to participate in a


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series of workshops and consultations. Through this consultation process, Unilever

refined its definition of sustainable agriculture to be one that is productive, competitiveand efficient while at the same time protecting and improving the natural environment

and conditions of the local communities.

The initiative focussed on five key crops; spinach, pea, tomato, tea and palm oil. Thesewere selected because, for each crop, the company had a good understanding of its supply

chain and had a strong association with the product, for example, the Birds Eye pea. Theyalso represented a range of crops in which a variety of sustainability issues would be

present, e.g. water conservation, energy and pesticide use.

Specific programmes of work were conducted on each of the crops. The work was guidedby a set of principles for the Initiatives developed through consultation with stakeholders

(e.g. farmers, food retailers, academics, government, processing companies, civil societygroups, consumer groups and trade associations). The biggest challenge was coping with

the diversity of the crops and the countries involved in the programme of work: frompeas in England, spinach in Germany and Italy, to tea in Kenya, India and Tanzania and

tomatoes in Australia, Brazil and the USA. This meant that the areas of focus mightchange with country whilst the crop did not. This diversity generated a number of issues

to address, e.g. water conservation in Australia and lapwing management in pea farmingin the UK.

The consultation with stakeholders was worthwhile as it provided insight into issues and perspectives, but it did take time to get their input and consensus on improvements.

Particularly hard was translating the concept of sustainability into a set of indicators. Tenindicators were identified covering amongst others: soil loss, pest management, product

value, water and local economy. Right from the start the Initiative sought the buy-in fromthe management of the company through presentations. This resulted both in their

support and in the Initiative reporting directly to the board with regular updates of itsprogress.

An example of the types of projects conducted within the Initiative was the work on peas

in England. In developing ten sustainability indicators, 450 pea growers were consulted.Unilevers independent partners in the Initiative ran experiments with 20 farmers to trial

the indicators. One of the indicators was used to assess how pea farming affectedbiodiversity. A key part of this work included the development of management guidelines

for effective management of farmland birds. Both the skylark and lapwing thrive on pea

farms. The research focussed on how these birds use the pea fields. It revealed that thepea crop provides critical (feeding and breeding) access for these birds due to its openand low structure, compared to other crops in the countryside like wheat and barley. The

combination of available food and breeding areas meant that these birds were able to rearan average of two broods per year said Jos van-Oostrum, Unilevers Sustainable

Agriculture Research Manager. The research informed Unilever and pea growers how best to manage nest sites whilst the pea fields are being harvested so that breeding

attempts are not disturbed.


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Maintaining momentumSince inception the Initiative has continued to collect data on the indicators. It has also produced good practice guidelines for farmers in all the 5 key crops. Various

communication materials have also been produced to share knowledge and learn with

others. These include information booklets and videos for various audiences farmers,smallholders and the general public. These materials have been widely used and thefeedback received suggests that they are making a difference in changing production

methods and opinions about the nature of farming.

The business benefits

Through the Initiative Unilever has increased its understanding of the issues surroundingsustainable agriculture. This has led to the primary business benefit of securing the

sustainable supply of the companys raw materials. An additional benefit has been thetrust and reputation gained for Unilever from its partnerships with a wide range of people

involved in the Initiative. The Initiative has also led to the development of others such asthe Sustainable Agriculture Initiative Platform and the Roundtable on Sustainable Palm

Oil.

Why is it CSR?

The initiative demonstrates CSR as it goes beyond compliance and is a voluntary

response, albeit enlightened self interest as it is seeking the long term security of natural

resources that contribute to the protection of the business and its brands.

What next?

Unilever has taken the first steps to extend the Initiative beyond the five crops, to include

all major vegetable oils, dairy, meat, paper and pulp. They recognise it will take time totransfer the knowledge to other crops. Unilever will also continue to share the initiatives

outputs amongst competitors and other interested parties in an effort to get morecompanies to participate in the issue of sustainability. This will have the benefit of

securing standards across the board, not just on one crop. It is also hoped that this will

lead to the promotion of market mechanisms that favour sustainable agriculture.


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FedEx - EarthSmart - sustainability strategyCommunicating environmental sustainability performance and building a sustainableculture through a platform of EarthSmart initiatives

The company

FedEx is a worldwide network of companies, providing a broad range of logisticalservices. United under FedEx Corporation, the company has a team of more than

285,000 team members, and serves more than 220 countries and territories worldwide.

FedEx has been implementing a sustainability programme for the last decade and has,

from its inception, focused on innovation.

This CSR case study focuses on the three key initiatives that make up FedEx's EarthSmart

programme, which is helping the company work towards is environmental

sustainability goals.

The drivers

FedEx holds the central belief that the success of the business and the wellbeing of theenvironment are inextricably linked. The company recognises the services it provides as

having a wider impact, not only on the individuals who work for the company but alsothe environment and communities in which it works. FedEx places an emphasis on the

importance of gaining and maintaining the trust of team members, customers,shareholders and communities.


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The company has noted that its stakeholders are increasingly interested in understanding

what the company is actually doing. As a result, it published its first global citizenshipreport in November 2008.

Taking action

The EarthSmart initiatives are a core element in the companys environmentalsustainability strategy. Specifically, EarthSmart provides a platform to communicate the

companys actions and create a culture, providing an umbrella to bring together/alignglobal programmes and initiatives.

The initiatives are designed to benefit the planet, customers and the business.

EarthSmart Solutions:

EarthSmart Solutions addresses the sustainability performance of the companys servicesand physical assets, i.e. aeroplanes, trucks and facilities. It requires the services or assets

to meet stringent, quantifiable standards for environmental sustainability that go beyondindustry standards. It also requires them to deliver benefits not only to the business but

also to the environment and stakeholders.

In order to achieve this, FedEx places a strong emphasis on the importance of innovation.Examples include FedEx being the first US-based company to purchase a Boeing 777F in

2009 (with the intention of owning a fleet of 40 by 2019); this has provided increasedfreight capacity whilst reducing fuel consumption by 18%. The replacement of narrow-

bodied planes has resulted in fuel consumption being reduced by 47% overall. Furtherconsiderations such as flying direct between Asia and the US also reduce the demand on

fuel.

FedEx also has the largest fleet of hybrid electric parcel delivery vehicles in the industry,

achieved by investing in new vehicles and by converting traditional trucks. Thesemeasures extend the life of vehicles, whilst simultaneously making them more

environmentally friendly. At present, FedEx is testing fuel cell and hydraulic hybridvehicles and investing in zero emissions all-electric vehicles and hybrid-electrics

vehicles. These initiatives contribute to the companys 20 by 20 goal of reducing planeemissions by 20% and increasing vehicle efficiency by 20% by the year 2020.

In relation to its facilities, FedEx has been installing solar rooftop installations in an

increasing number of its buildings. One such installation currently stands as the largest inthe US. FedEx had a total of five solar arrays running as of the end of 2010.

EarthSmart Outreach:


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EarthSmart Outreach aligns business priorities with community needs, such asinvestment in sustainable transport solutions for developing countries.

FedEx has worked in collaboration with EMBARQ The WRI Centre for SustainableTransport in order to develop the transport network throughout Mexico. By supportingdevelopment of efficient public bus networks, FedEx contributes to a reduction in the

number of cars on the road, and therefore also lower carbon emissions.

FedEx has also been working to increase child pedestrian safety, find ways to protectvaluable ecosystems and provide disaster relief. The company provides this assistance

using its core business strengths, such as logistical capacity to ensure that relief suppliesreach the locations where they are most needed.

Coinciding with its people first philosophy, FedEx has been developing a strategy to

support and enable the volunteering efforts of its employees. This has included thecreation of a platform to engage individuals in volunteering opportunities. This volunteermanagement system has been integrated with the United Way giving campaign and

FedEx Cares week an annual event in which more than 16,000 hours of employee timewas donated in 2010.

EarthSmart @ Work:

EarthSmart @ Work aims to engage FedEx employees actively in the companys

environmental sustainability goals and efforts.

The initiative is divided into three areas:

1. Inform the sharing of information and ideas (i.e. internal circulation of best practice and information on relevant topics), and enabling employees tocontribute their own thoughts (e.g. using social media).

2. Involve enabling employees to share ideas and learn from one another; inaddition, the company develops volunteering opportunities for staff to use their

skills to assist in the wider community; and3. Innovate integrates the ideas of FedEx employees into a formal submission

process to help inform the review of strategic sustainability goals and strategies.

Challenges

One of the key challenges for FedEx was to be specific about the usage of EarthSmart, to

ensure all the initiatives were thoroughly vetted and to ensure that internal and externalstakeholders understood the platform. Similarly there was the challenge and desire toensure that all the programmes under the EarthSmart platform demonstrated customer,

business and environment benefits.


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Business benefits

The EarthSmart strategy is designed to provide not only environmental and social benefits, but also feeds back to FedExs business objectives. For example, efficiency

measures have allowed the company to cut emissions by reducing fuel usage, which inturn has led to cutting costs, providing direct financial benefits.

Additionally, given the growing pressure for global emissions reductions and the

translation of this into many national policies, the initiatives undertaken by FedEx tointegrate cutting edge innovations into its operations are likely to enable them to remain

sector leaders.

FedExs approach to environmental protection, international aid and philanthropicinvestment all work to enhance the companys reputation and further assist in ensuring

the companys future operation and expansion.

Importantly, the activities also encourage the growth of stakeholder trust in the company

something of growing importance in an increasingly competitive market wherecorporate activities are coming under growing public scrutiny. In addition, suppliers are

now approaching FedEx, with requests to participate in the programmes.

The incorporation of employee opinion into its strategy allows its approach to not onlybenefit from diverse ideas and therefore become more innovative, but also to make the

company an employer of preference.The company has received a number of international awards and rankings for its work

including the 2009 W3 Awards Gold Award in the business category for its Citizenship

Blog; Newsweek Greenest Companies Ranking Top 100; the FORTUNE Magazines100 Best Companies to Work For; the Ruben dHonneur award for outstandingcustomer focus, considered one of the foremost corporate awards in Europe; and the 2009

Mohammed Bin Al Rashid Al Maktoum Business Award for Corporate SocialResponsibility. This recognition enhances both community relations and support, and

more broadly the reputation of the company.

Why is it CSR?

The EarthSmart programme provides both business and social benefits namely it allowsthe company to realise efficiency savings and encourage sustained support and growth of

business activities. In demonstrating leadership on matters of sustainability in theindustry, FedEx hopes to stimulate the spread of good corporate citizenship, making the

industry as a whole more sustainable.

Similarly, the programme has led to increased engagement and enthusiasm within localteams all leading to a stronger corporate culture.


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London City Airport - "Take Off Into Work"}}}} An employment initiative that means better skilled recruits for the airport andimprovements to the local community of Newham.

The company

London City Airport plays a key role in supporting the activity and growth of Londonseconomy. Located in East London, it is the UKs leading business airport and it makes a

significant contribution to the economy of the local area, providing more than 2,000 jobsthrough its own operations and the 55 employers based onsite.

Since setting up a dedicated Community Relations Team in 1995, the company hasdeveloped a structured programme of community relations, which focuses on the areas of

consultation and communication; local employment; education excellence; health andwellbeing for work and charity. These community engagement activities are delivered

within a specific geographical area to ensure the social and economic benefits of the

Airport are shared with those who are most affected by its operation.

This CSR case study focuses on one aspect of London City Airport's community

engagement strategy, "Take Off Into Work", an initiative that is designed to improve thetransferable and job seeking skills of Newham residents, whilst also improving the

quality of local candidates available for recruitment.

The drivers

London City Airport is the only airport located within the city itself. This increases the

potential of negative ramifications for local residents, making it essential for the companyto ensure that the local population actually benefits from its presence.


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The Airport is located in Newham, a comparatively deprived borough of East London; in

2008 it had an unemployment rate of 10.1% nearly double the national average. TheAirport recognised that its operations could be utilised to reduce the unemployment rate

by taking practical steps to enable local residents to gain access to work.

London City Airport positions itself as a key business airport, with one of the fastestcheck-in times of any in London. In order to maintain its operations the company requires

a high level of reliability and flexibility from its staff, which it feels can be enhancedthrough employment of local people. This is particularly pertinent in an industry which

often demands unusual working hours.

Taking action

In 2009, London City Airport launched the Take Off into Work scheme for long-term

unemployed Newham residents as part of the Airports wider community engagement

strategy. The programme has been developed and is delivered in collaboration with someof the Airports onsite employers, such as caterers and retailers.

Specifically the programme aims to address some of the problems encountered by airport

employers when trying to recruit more local people, such as soft skills, lack ofpreparation and understanding of the airport work environment.

Additionally, the programme helps the company to reach its aspiration of employing 70%

of its staff from within 5 miles of the site, with 35% of these from the Borough ofNewham.

The Take Off into Work programme works to help local people into employment bothwithin and outside of the company by developing their job skills and confidence, and

raising their aspirations. The programme is run five times a year.

The programme consists of multiple components:

Training: Candidates enrolled in the programme begin by completing two weeks ofLondon City Airport specific employability workshops to equip them with general

competencies, as well as role specific skills necessary to begin work successfully at theAirport. This training covers everything required for candidates to obtain a full airside

security pass, through to the skills necessary to be successful in the placement which

follows. This is of particular importance when taking into account that 5% have neverbeen employed, and 78% have been unemployed for six months or more.

Placement: After the initial training period, participants undertake a two to nine weeklong placement with one of the 55 employers based at the Airport. This enables

candidates to develop skills and also to understand the specific demands of an airportenvironment, thereby increasing their chances of gaining employment at later stages. In


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addition, it allows participants to demonstrate their professional capacity, and gain a

valuable reference from a respected employer.

Interview training and experience: During the programme, participants receive

mentoring and support, including CV and interview preparation. Participants alsoundertake team volunteering challenges, which provide a unique opportunity to learnabout the importance of working in a team in the airport environment while contributing

to local community organisations through voluntary work.

Interviews at London City Airport: Following completion of the programme, participantsare offered interview opportunities with London City Airport and the various employers

onsite. Employment opportunities have been expanded through development of anEmployers Forum for the diverse range of companies onsite.

Expanding opportunities: By completing the programme, participants increase their

prospects and aspirations, even if unsuccessful at the final interview stage. The Take Offinto Work scheme although specifically developing skills relevant to the demands ofan airport environment builds the capacity, transferable skills and general confidence of

individuals in a way that makes participants more eligible and comfortable in pursuingnew and alternative employment opportunities.

Business benefits

The Take Off into Work programme has multiple corporate benefits.

Smooth running of the airport is essential to its success as a business service, and by

employing locally London City Airport is better able to ensure the continuity of itsoperations in the event of issues such as traffic congestion or poor weather. By providing

relevant training to local people, London City Airport also ensures that the skills itrequires are available locally as the business grows and the workforce expands.

In 2009, 62 Newham residents from the programme gained employment (some at the

airport and some in other local businesses). 45% of these candidates had beenunemployed for a year or longer and 4% had never worked. Through the programme,

more than 130 previously unemployed Newham residents have now gained employmentand recruitment costs (estimated to be in excess of 1,000 per position) have been

significantly reduced.

The company has received a number of awards for its work, including the Lord MayorsDragon Award, and a Business Alliance Annual Volunteers Employment Champion

Award. This recognition enhances both community relations and support, and morebroadly the reputation of the company.


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The programme also provides a further opportunity for the Airport to engage with its

onsite businesses, as part of its Employers Forum (which meets quarterly to discussemployment, sustainability and other initiatives).

Why is it CSR?

The Take Off into Work programme provides both business and social benefits

namely it provides the airport and its onsite businesses local and flexible staff, adds to thewellbeing of the local area and provides employment for local people. In doing so, it

contributes to the wider sustainability of London City Airports operations within EastLondon.

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