Exchange2017
Network: Barbican EventPassword: business5948
@WeAreICRS
Philippa Foster Back CBEDirector, Institute of
Business Ethics
Responsible Business in a time of
Political ChangeICRS Exchange 2017
Philippa Foster Back CBE, Director
Institute of Business Ethics
3 © IBE
...doing business ethically...
...makes for better business
© IBE
About the IBEThe IBE was established in 1986 to encourage
high standards of business behaviour based on
ethical values.
Advice
Publications
Training
Forums
Research
Education
www.ibe.org.uk
Topics
© IBE5
Responsible Business
Corporate Governance background and
Trust issues
Parliamentary and Government responses
What next?
What should responsible companies do?
Responsible Business
© IBE6
Ethical Values and Commitments
how we do business
Corporate Responsibility Framework
- ways of working
- to whom we are responsible
- relationships with organisations and people
GovernanceCore business
strategy
Policies & Codes
& Targets
Business Behaviour:
the way we do business
©
IBE
Responsible Business
Ethics and Traditional CSR
doing things ethically
approach to the way you do business
Social
programmes
Philanthropic
programmes
Environmental
programmes
Ethics
Policy & Code
Ethical Values underpin….
C[S]R Policy
doing ethical things
©
IBE
Corporate Governance and
Trust Issues
© IBE9
Corporate Governance
The UK Corporate Governance Code (2016)
Corporate governance is about what the board of a company does and how it sets the values of the company.
It is difficult to embed ethical values into business practice if
ethics is not embedded into the way the company is governed
and run.
© IBE
The board should set the company’s values and standards and ensure that its obligations to its shareholders and others are understood and met.
What is trust?
Inform
• Sources of Evidence
Prompt
• Trustworthy Beliefs
• Expectations
Trust Decision
• Reinforced by….
Trusting Act
• Consistency over Time
Feedback loop to inform......
From: Building and Restoring Organisational Trust: Publ. IBE 2011
The Process of Trust
© IBE
Building a trusted organisation
Values
Behaviours
Ethics & Culture
Conduct
© IBE
Trust
&
Reputation
Financial &
Operational
PerformanceApplication of ethical values
to behaviour
Trends in Levels of Trust 2012-16
© IBE13
Trust in Business by Sector 2012-16
© IBE14
How is corporate ethical behaviour seen
through the eyes of the UK general public?
© IBE15
Attitudes of the British Public (2016)
Source: IBE Survey, Attitudes of the British Public to Business Ethics (2016) ©
IBE
Trends in issues of concern
in Britain
© IBE17
The Headlines… of this....
© IBE18
A day at 'the gulag': what it's like to work at Sports Direct's warehouse
Sports Direct staff 'not
treated as humans', says
MPs' report
And this...
© IBE19
Sports Direct branded a 'cautionary tale'
after falling out of FTSE 100
Sports Direct falls behind JD
Sports as bad publicity takes its toll
And this…..
© IBE20
Sports Direct faces L&G
anger as City turns the
screw on corporate
governance
Sports Direct
to put workers'
representative
on the board
The Guardian 12th April 2017
© IBE21
Response to news of Worker Representative appointed to
Sports Direct Board:
The Guardian 21st April 2017
© IBE22
Parliamentary and
Government Response
© IBE23
Corporate governance - UK
© IBE24
Corporate governance - UK
© IBE25
The green paper asks for
views on:
executive pay
employee and customer voice
corporate governance in large
private businesses
Consultation closed on 17 February 2017 – possible outcomes
include:
Additional / amended reporting requirements
More focus on director’s duties
New regulation
IBE response to consultations
© IBE26
Director ‘s Duties and stakeholder engagement
Section 172 Companies Act 2006
Executive Remuneration
Unlisted companies – ‘privilege’ of limited liability
What next?
© IBE27
Financial Reporting Council Review
© IBE28
What should responsible companies do?
© IBE29
© IBE
Elements of an effective ethics programme
Communication
&
Awareness
Campaigns
Supporting
Context &
Culture
Code of Ethics
• The Way We Work
• Business Principles
• Our Commitments
& Standards
Training
&
Reinforcement
Monitoring
&
Accountability
What, why, how;
understanding as well
as information, how
to ask for help, seek
guidance, Speak Up
etc,
Leadership
example; decision-
making; strategy;
polices; resources,
business goals;
compliance; CR,;
Speak Up…
Guidance for staff on
expected behaviours,
how to deal with day
to day ethical
dilemmas, how to raise
issues
Recruitment;
induction; on-line &
face-to-face;
dilemmas; debate;
appraisals;
incentives and
remuneration
Surveys, internal
audit, stakeholder
engagement;
business review;
external audit
Embed Values Influences Behaviour & Conduct
Ethical ValuesReflected in the purpose, business model, strategy, governance and
decision making process in the organisation
Embed, Implement, make operational with feedback
loops to build in learning and improvement
....doing business ethically
makes for better business….
Values and the Organisation Model: How
do values have an impact?
© IBE
Core ethical values
Expressed in an Ethics
Policy and Code
Influences
conduct
&
decision
making
Reinforces a
culture of
trust &
integrity
Supported by an
effective ethics
programme
individuals
company/organisation
Basis of a
Sustainable
Organisation
Model
The way we
do things
around here,
i.e. our
culture
&
Our Culture: Have we a common understanding about the way this
organisation works? Do we know the dilemmas our staff face day to day?
What are the norms of how do we do our work?
Do our values drive us? Individually and collectively?
What is our leadership style?
What example do we set?
Do we believe individuals challenge the norm?
HOW DO WE KNOW?
© IBE
Culture: some questions to ask
What elements in a corporate
culture lead to ethical lapses?
Paying lip service to positive ethical values (valuing
profit at any price)
Fear of failure (targets, speaking up etc.)
Fear of raising concerns
Lack of ethical leadership and example at the top
Lack of support mechanisms such as speak-up lines,
contractual incentives?
© IBE
Summary
© IBE
Business Ethics matters...
Embedding purpose, values , ethics and culture....
Right thing to do
Sets tone and culture
Supports staff
Good place to work
Retain and recruit best quality staff
Gain and retain trust from your stakeholders and the public
Gain reputation
Self insurance, mitigate reputation risk
© IBE
Business Ethics
Values
Ethics Behaviours &Culture
Conduct
© IBE ....doing business ethically
makes for better business….
Trust
&
Reputation
Financial
&
Operational
Performance
36
Risk
Opportunity
© IBE
....doing business ethically
makes for better business…
Q&As
Thank you
www.ibe.org.uk
© IBE
Exchange2017
Members’ Corner
Giulia FerratiCSR Manager, Walgreens
Boots Alliance
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Walgreens Boots Alliance: Our Approach to the U.N. Sustainable Development Goals
Giulia Ferrati, CSR Manager
27 April 2017
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Company Overview
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
43
Three success stories coming together
The first global pharmacy-led, health and wellbeing enterprise
Two iconic retail pharmacy brands and a leading international pharmaceutical wholesaler
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
44
Our growing global presence
As of 31 August 2016
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
45
About us
*As of 31 August 2016, including equity method investments, using publicly available information for AmerisourceBergen
Presence in more than
25* countries
A global leader in pharmacy-led,
health and wellbeing retail with over
13,200* stores in 11* countries One of the largest global pharmaceutical wholesale and distribution networks with
over 390* distribution centers
in more than 20 * countries
The largest retail pharmacy, health
and daily living destination in the USA and Europe
One of the world's largest purchasers
of prescription drugs and many other health and wellbeing products
Over 400,000* people employed
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
46
Our visionBe the first choice for pharmacy, wellbeing and beauty – caring for people and communities around the world
Our purpose
Our values
We help people across the world lead healthier and happier lives
Care Trust Innovation
Partnership Dedication
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Contributing to the U.N. Sustainable Development Goals
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
48
Contributing to the U.N. Sustainable Development Goals (SDGs)On 25 September 2015, a set of goals to end poverty, protect the planet, and ensure prosperity for all, was adopted by countries and companies around the world as part of a new sustainable development agenda. Each SDG has specific targets to be achieved over the next 15 years.
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Contributing to the U.N. Sustainable Development Goals (SDGs)Our Approach in five steps
49
UNDERSTANDING the SDGs
EMBEDDING the SDGs into our
Goals
INTEGRATING the SDGs into our
activities
COMMUNICATING and engaging our
people
MEASURING and Reporting progress
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Stakeholder Benchmarks
DJSI, CDP
Commitments
Stakeholder Dialogue
…Deeply embedded in our enterprise…Key sequences of our CSR framework
50
Commercial
• Targets
• Delivery• Measurements
UN Sustainable Development Goals
Divisions + Cross Divisional Functions
(eg. Global Brands)
Local
• Goals
• Report• Audit• Further
improvement
Review & Communication
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Our community goals
51
1. To support the health, wellbeing and vitality of the
communities we serve(e.g. Red Nose Day, BBC Children in Need)
2. To develop and mobilize our resources and partnerships in the fight against cancer (e.g. American Cancer Society, Macmillan and EORTC)
3. To enable young people to achieve their potential wherever
they are in the world(e.g. Get a Shot. Give a Shot., Vitamin Angels, Free the Children)
To be a responsible neighbor
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Our environmental goals
52
1. To reduce our energy consumption and emissions on a comparable basis* as defined by the Greenhouse Gas Protocol
(e.g. Mayday target for Boots stores to reduce their carbon footprint by 30 percent between 2005 and 2020 on a comparable basis)
3. To develop plans to help achieve zero net deforestation, by 2020,
collaborating with other organizations in a global initiative (e.g. the Consumer Goods Forum commitment to achieve zero net deforestation by 2020)
2. To reduce the waste we create, on a comparable basis*, and contribute
to the drive for increasingly circular economies through increased re-use and recycling (e.g. the Consumer Goods Forum commitment to halve food waste between 2015
and 2025)
To protect the planet for future generations
*Excludes the impact of acquisitions, disposals and any significant changes in existing operations
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Our marketplace goals
53
1. To create a global process that enables transparency of
ingredients and their traceability for the exclusive consumer
retail product brands that we sell(e.g. the Green Tick certification)
2. To work collaboratively with a global network of key external
organizations engaging in issues that carry the greatest social relevance to the markets and in the communities we serve
(e.g. our external Advisory Panel for Sustainability)
3. To continue to drive ethical sourcing practices – protecting human rights across our supply chain
(e.g. our 2016 Modern Slavery and Human Trafficking Statement)
To do business fairly and with integrity
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Our workplace goals
54
1. To proactively support the personal health and wellbeingof our employees
(if we can’t look after our people, how can we look after our customers?)
3. To continuously improve our robust approach to health and safety,
actively caring for our employees and customers, throughout our company(We consistently apply our rules and regulations wherever we operate)
2. To deliver our commitment to equal opportunities for everyone across our employment practices, policies and procedures
(all employees should have the same opportunities.)
To treat our people with dignity and respect
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Contributing to the U.N. Sustainable Development Goals (SDGs)
55
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
CommunityGet a Shot. Give a Shot.
56
• Together with the United Nations Foundation's Shot@Life campaign, Walgreens is helping to provide life-saving vaccines to children in need.
• Walgreens donated 15 million* life-
saving vaccines through the Get a Shot. Give a Shot. campaign over our three-year relationship**.
• In 2016, Walgreens Boots Alliance received the Global Leadership award by the United Nations Foundation. The award recognizes, in part, the accomplishments of Walgreens highly successful Get a Shot. Give a Shot.® campaign.
*As of 31 August 2016**since the program’s inception in 2013
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Red Nose Day USA 2016
• Walgreens contributed $20 million* in donations primarily from the sale of 13.6 million* red noses and flair.
• Red Nose Day raised a total of $33 million to help fight kids’ poverty.
• Walgreens is officially the largest corporate fundraiser in Comic Relief’s 30-year history of Red Nose Day.
BBC Children In Need
• 13-year partnership for Boots UK and BBC Children in Need
• £1.5 million* raised in 2016, and a total of £10 million* over 13 years
• BBC Children in Need supports 2,400 projects*
BBC Children in Need - helping children smile all around the UK
Community
* as of 18 November 2016* as of 31 August 2016 57
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
58
On 19 October 2016, the United Nations Foundation honored Walgreens Boots Alliance for its commitment to the UN’s Sustainable Development Goals through its support for wellbeing around the world with the Global Leadership Award..
“I am deeply honored to accept the Global Leadership Award from the United Nations Foundation on behalf of all of my dedicated colleagues and the customers who make the program possible,”
Ornella Barra ,Co-Chief Operating Officer, Walgreens Boots Alliance, Inc. .
Contributing to the U.N. Sustainable Development Goals (SDGs)
© 2017 Walgreens Boots Alliance, Inc. All rights reserved.
Thank you!
Kipp BrooksAccount Director, Flag
Emerging trends in
human rights reporting www.flag.co.uk
Human rights
Increased legislation
What does it mean for you?
>CA- Transparency in Supply Chains Act
>EU Non-Financial Reporting Directive
>The UK Modern Slavery Act
Human rights benchmarking
What does it mean for you?
UN Guiding principles reporting framework
Thank you
www.flag.co.uk
Sam HealyGroup CR Director, QinetiQ
Exchange2017
Group session
Warm up:
30 Circles
Quick ideas. 5 minutes1. Scope your challenge: What part of the bigger issue can you
tackle now? What are the root causes? Ask why. Who does it affect? Who might you need to influence? What are the barriers to progress? Be specific and make it achievable.
2. Create ideas: Think of anything and everything that might help you. No idea is off limits. Write down everything. Aim for quantity and variety. Embrace humour - it can get you past a block.
3. Refine: Which are your favourite, most realistic, or most outrageous ideas? Can you combine any to create something new? Which do you think should see the light of day?
4. Reflect: Share your ideas.
Sir Vince Cable
Claudine BlameyICRS Chair
ICRS Highlights
Member Consultation
What you find attractive in a professional institute
Access to a network of
peers
Access to learning
resources
Opportunities for professional recognition
Access to job opportunities
Build your professional
profile
0 50 100 150 200
Which areas are important now, and in the future
0%
20%
40%
60%
80%
Stakeholderengagement &
governance
Reporting,auditing &assurance
Philanthropy &communityinvestment
Environment Ethical trading /sustainableprocurement
Responsibleinvestment &
ESG
Important Now Important in the future
Important now, but importance slightly
declining
Emerging areas of
interest
Your biggest challenges…
Integrating CRS with
business strategyStaying abreast of emerging
themes and trendsIdentifying appropriate performance
indicatorsEstablishing the importance and
credibility of CRS internally
Communicating CRS effectively to stakeholders
What you want ICRS to focus on
Responding to government
policy proposalsAssessing skills/competence of
members
Sharing achievements of
members
Sharing credible
knowledge & best
practice
Building the
reputation of the CRS profession
Facilitating
networking
Your priorities
Least important
Future focus
Q&A
Exchange2017
Network: Barbican EventPassword: business5948
@WeAreICRS