1 competitiveness, responsibility and sustainability february 24 th, 2014. marriot hotel...

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Competitiveness, Responsibility and Sustainability February 24th, 2014.

Marriot Hotel –Zamalek-Cairo

Eng. Osama Elmeligy

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•In July 2013 CSR & UNDP launched a CSR strategy for the Agro Food Industries in Egypt. The theme of which is from corporate Social Responsibility to corporate competitive advantage.

•This course is an integral part of the efforts of UNDP & ECRC to raise awareness and knowledge of stakeholders on how to integrate this strategy into their businesses and in relationships with government bodies & business

Introduction

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Benefits of integrating CSR strategy

Generates new business opportunities

Improves company’s social standing

Improves company’s brand reputation

Increases employee motivation

Supports company’s philanthropic priorities/ Initiatives

Markets to socially responsible consumers

Creates an important solution to a social or environmental problem

Promises significant and new business/ market opportunities

Promises long-term gains by significantly changing its business environment

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1. The challenges and opportunities

2. Global Changes in Agro Food business environment

3. CSR strategy.

4. Leadership.

5. Sustainability. Economic, Environmental, Societal.

6. New approaches

7. Tools and techniques

8. International standards and norms.

9. Integration

10. Communication and reporting

11. Conformity, Compliance & Certification

12. Feedback

13. Evaluation

Contents

المصطلحات

والتعاريف

5ISO 26000- ECRC - TOTAL

المسائلة • Accountability قابلية

لإلجابة والقابلية للمنشأة المتحكمة الجهات مع للتجاوب المنشأة قابلية هي

أسئلة على

. المنشأة فيها تعمل التي المجتمعات و المعنية األطراف و القانونية السلطات

Consumer المستهلك •

أغراض في يستخدمها أو الخدمات أو البضائع يشتري الناس عامة من شخص

.شخصية

Environment البيئة •

المنشأة فيه تعمل الذي طبيعية المحيط موارد و أرض و ماء و هواء من فيه بما

و

. بشرية كائنات و مائيات و نباتات

البيئي • Environmental impact التأثير

جزئي أو كلى مفيد، أو عكسي تأثير ذو كان سواء البيئة في يحدث تغير أي

نتيجة

المنشأة أنشطة .

والتعاريف ” Terms and definitions“المصطلحات


األخالقي • Ethical behavior السلوك

المباد مع يتوافق الذي السليم ئ السلوك أو الصحيح للسلوك عليها المتفق

ضمن وذلك)

معين موقف (.سياق

Materialالمادة •

التقييمات على جوهري بشكل ستؤثر التي الموضوع أو المعلومات خصائص

لقراراتاو

. معا كليهما أو المعنية أطرافها أو بالمنشأة الخاصة

Organization المنشأة •

المسئوليات ترتيب مع واضح غرض اجل من سويا يعملون الناس من مجموعة

والسلطات

. والعالقات 7ISO 26000- ECRC - TOTAL


المؤسسية • Organizational governance الحوكمة

قراراتها خالله من المنشأة تتخذ الذي . النظام

Policy السياسة •

المنشأة تتبناها التي العامة اإلرشادية الخطوط و .القرارات

Principleالمبدأ •

أو القرار لصناعة مرشد كدليل تستخدم عامة مواصفة أو قاعدة

للتأثيرعليهما أو .السلوك

Productالمنتج •

المنشأة توفرها خدمة من جزءا? تعد التي أو للبيع تطرح التي .المادة

Service الخدمة •

طلب أو احتياج لتلبية . مساعدة



المجتمعية Social responsibility المسئولية

منها تعاريف عدة المجتمعية : للمسئولية

المستدامة التعريف ال للتنمية العالمي األعمال مجلس قبل من شائع

ال المسئولية يعرف األعمال “ موهو قطاع من تعهد بأنها للشركات جتمعية

(WBCSD)

مع العمل خالل من المستدامة االقتصادية التنمية في بالمشاركة

حياتهم جودة تحسين بغرض واإلقليمي المحلي والمجتمع وعائالتهم، ”العاملين

ال المسئولية مصطلح المستدامة للتنمية الدولي المعهد فسر في موقد جتمعية

إطار

المستدامة أو ” بأنها التنمية معايير تسهم أن المتوقع من وأنه المجتمع، إلى تشير

ال المسئولية المستدامة ممقاييس التنمية لتحقيق الثالثة الركائز تعزيز في جتمعية

االقتصادية التنمية البيئية “و وهي والحماية االجتماعية التنمية

تعريف أي فإن ال كذلك للمسئولية األهداف معالمي إلى يشير وأن بد ال جتمعية

. المتحدة لألمم 9ISO 26000- ECRC - TOTALاإلنمائية


cم مسؤول • Socially responsible جتمعيا

ممارسات و لمبادئ طبقا .المجتمعية المسؤوليةالتصرف

Sphere of influence التأثير دائرة •

على للتأثير السلطة المنشأة أو الفرد فيها يمتلك التي المنطقة أو المجال

واألنشطة .القرارات

Stakeholder المعني الطرف •

بها تتأثر أو المنشأة على تؤثر قد مصلحة تجمعهم األفراد من مجموعة أو . فرد

Stakeholder engagement المعنية األطراف مشاركة •

المعنية اإلطراف بإشراك المنشأة تقوم التى األنشطة في " األساسية " وهي

تعاونية عالقة

ايجابية نتائج لتحقيق



المستدامة • Sustainable development التنمية

األجيال بقدرة المساس دون الحاضر احتياجات تلبي التى التنمية وهي

على المستقبلية

الخاصة . احتياجاتهم تلبية

اإلمداد • Supply chain سلسلة

وأنشطة عمليات في وانخفاض ارتفاع من المؤسسة أداء على يطرأ ما وتشمل

القيم تسليم

للمؤسسة . أوخدمات منتجات صورة في

Transparencyالشفافية •

واضح بشكل بينها الربط في والرغبة ، والتأثيرات باألعمال المجاهرة بها ويقصد

وصريح

والمجتمع ) (. المعنية األطراف جميع بين وكامل

المجتمع • Welfare of society رفاهية

عام بشكل المجتمع ورخاء وسعادة صحة إلى . وتشير11ISO 26000- ECRC - TOTAL


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( 1 )

The Challenges and Opportunities

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Challenges facing the Agribusiness in Egypt

1. Economic challengesa. The productivity of agribusiness sector in Egypt is very low and the waste

in all processes exceeds the international norms.b. The national system for standardization is not up to international

standards and no empowerment.c. Lack of awareness of standards and quality systems within producers,

buyers, regulators and along the supply chain. d. Shortage of testing laboratories that are accredited.

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2. Environmental challengesa. Water scarcity is becoming a big issue due to mismanagement and misuse.b. Land degradation and contamination, due to excessive use of chemicals

and pesticides.c. Poor waste management, see how famers set fire in the hey of rice after

the season of harvest. d. Energy and fuel shortages, a big problem now for farmers is to ensure

business continuity when there is a petrol or electricity problem .


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3. Challenges with Human Resources and Social Aspectsa. The quality of education and lack of training and skills development .b. The turnover of manpower and the instability in the labor market. c. Unfair wages paid to workers and farmers.d. Corruption in the local governments that should ensure compliance to

laws and legislations, regulating the agribusiness.


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( 3 )

Strategic Corporate Social Responsibility

CSR strategy

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CSR core values/concepts

• Visionary and committed leadership.

• Stakeholder-driven excellence and responsible practices.

• Organisational and personal learning through dialogue and mutual

engagement with relevant stakeholders (primary and secondary

stakeholders).

• Valuing employees, partners, other stakeholders.

• Agility and focus on the future (short and long term).

• Managing for responsibility and improvement.

• Management by fact, transparency, accountability.

• Public responsibility and citizenship.

• Focus on positive results, impacts and value-added for stakeholders with

responsible ecological practices.

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Putting Responsibility Management into Practice – Corporate Strategy

Top management need to take a long-term perspective, make a public

commitment, communicate the commitment, be a role model for the

company’s values, integrate vision and values into strategies and practices

and support changes.

Responsibility Management Approaches must be both systemic and holistic

of they are to be effective.

ISO 26000 was designed as a holistic approach involving the

interdependence of seven factors: community involvement and

development, human rights, labor practices, the environment, consumer

issues, fair operating practices and organizational governance .

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( 5 )

Sustainability

Economic, Environmental, Societal

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What is sustainability?

1 2 3 4

90%

0%0%

10%

1. Satisfying basic needs without

depleting or degrading resources

2. Maximizing resource use

3. Reducing resource use even if it

means some big sacrifices by

human beings

4. Halting further resource use and

limiting human progress

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Definitions of Sustainability`

Sustainability

The possibility that human and other forms of life on earth will flourish forever

Sustainable Development (SD)

Meeting the needs of the present generation without compromising the

ability of future generations to meet their own needs .

Sustainable Development (SD)

Enough - for all – forever.

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Core Concepts of Sustainability

Futures ThinkingIntergenerational responsibility

(Eco)-Systems ThinkingCarrying capacity of the planetto absorb waste and support life

Social JusticeEquity, Dignity, Basic services, Human rights,

Stakeholder voices

Economic, Environmental, Social/Culturalresponsibilities

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اإلستدامة أوجهAspects of Sustainability

إقتصادية تنميةEconomic

مجتمعية مسؤوليةSocial Responsibility

بيئي إلتزامEnvironment

اإلستدامة Sustainability

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Corporate Sustainability, Three Legged Stool

= Environmental, Social, Governance (ESG)

Economy - ProfitsGrowth

Jobs, TaxesProductsServices

Equity - People Employees

Community / Culture World

Environment - PlanetEco-efficiencies

Eco-effectiveness

=Corporate Social Responsibility (CSR) =Corporate Responsibility (CR) = Green

= Sustainability = Sustainable Development (SD)Triple Bottom Line (TBL) = 3Es = 3Ps

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Principles of Environmental Sustainability

1. Environmental Policy Integration

2. Transparency, Public Participation, and access to Information and

Remedies

3. Precaution

4. Polluter-Pays

5. Responsibility for trans-boundary Harm

6. Subsidiarity & Decentralization

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The WF is an indicator of water use that looks at both direct and indirect water use of a consumer or producer.

Water use is measured in terms of:- water volumes consumed )evaporated or otherwise not returned(- polluted per unit of time

Geographically explicit

A WF can be calculated for:- process - product - consumer- group of consumers )e.g. municipality, province, state, nation( - producer )e.g. a public organization, private enterprise(

The Water Footprint Concept

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The Water Footprint of a Product

Green water footprint

► volume of rainwater evaporated.

Blue water footprint

► volume of surface or groundwater evaporated.

Grey water footprint

► volume of polluted water.

[Hoekstra & Chapagain, 2008]

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Water footprint of EU’s cotton consumption )blue water(

Blue water footprint Million m3/yr

2959Mm3/yr

690 Mm3/yr

421 Mm3/yr

2459 Mm3/yr

803 Mm3/yr

581 Mm3/yr

533 Mm3/yr

450 Mm3/yr

EU25's impact on blue water resources

The water footprint:making a link between consumption in one place and impacts on water systems elsewhere

Shrinking Aral Sea


This is a global average and aggregate number. Policy decisions should be taken on the basis of:

1. Actual water footprint of certain coffee at the precise production location.

2. Ratio green/blue/grey water footprint.

3. Local impacts of the water footprint based on local vulnerability and scarcity.

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Carbon Footprint

• Best estimate of full climate change impact of something– Carbon – Usually talking

about CO2e (CO2-eq) not actually just carbon

– Footprint – Total impact

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Direct vs. indirect emissions

• Direct emissions of an item– Manufacturing process – Transportation of item to retailer

• Indirect emissions – Everything else– Example: offices in the factory use paper

clips made of steel that were mined and have their own carbon footprint

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Context for numbers

• 1 gram of CO2e would be produced if you burned a pea sized blob of gasoline

• 1 Kilogram (2 lbs) of CO2e would be produced if you burned 2 cups of gasoline

• 1 Ton of CO2e would be produced if you burned 60 gallons of gasoline

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Context for numbers

• The average American has a carbon footprint of 28 tons CO2e / year

• The global average carbon footprint is ~6 tons CO2e / year / person

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( 6 )

New approaches

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SR approach

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Some organizations may already have established techniques for

introducing new approaches into their decision making and activities, as

well as effective systems for communication and internal review. Others

may have less well-developed systems for organizational governance or

other aspects of social responsibility.

Approaches into decision making and activities

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Social responsibility involves the adoption of an integrated approach to

managing an organization's activities and impacts. An organization should

address and monitor the impacts of its decisions and activities on society and

the environment in a way that takes account of both the size of the

organization and its impacts. It may not be possible for an organization to

remedy immediately all negative consequences of its decisions and activities. It

might be necessary to make choices and to set priorities.

Approaches for integrating SR within an organization

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An organization should look at the core subjects holistically, that is, it

should consider all core subjects and issues, and their interdependence,

rather than concentrating on a single issue. Organizations should be

aware that efforts to address one issue may involve a trade-off with other

issues.

Holistic approach

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Multi-stakeholder approach

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Organizations should adopt an integrated approach that takes into consideration

the direct and indirect economic, social, health and environmental implications of

their decisions and activities.

Integrated approach

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Due diligence can be a useful approach for an organization in addressing the

issues of social responsibility.

Due diligence approach

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An organization has much to gain from taking an active approach to ensuring

equal opportunity and respect for all individuals.

Active approach

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Precautionary approach This is drawn from the Rio Declaration on Environment

and Development and subsequent declarations and agreements , which

advance the concept that where there are threats of serious or irreversible

damage to the environment or human health, lack of full scientific certainty

should not be used as a reason for postponing cost-effective measures to

prevent environmental degradation or damage to human health. When

considering the cost-effectiveness of a measure, an organization should

consider the long-term costs and benefits of that measure, not only the short-

term costs to that organization;

Precautionary approach

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Life cycle approach The main objectives of a life cycle approach are to reduce

the environmental impacts of products and services as well as to improve their

socio-economic performance throughout their life cycle, that is, from

extraction of raw materials and energy generation, through production and

use, to end-of life disposal or recovery. An organization should focus on

innovations, not only on compliance, and should commit to continuous

improvements in its environmental performance;

Life cycle approach

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Cleaner production and eco-efficiency These are strategies for satisfying human

needs by using resources more efficiently and by generating less pollution and

waste. An important focus is on making improvements at the source rather

than at the end of a process or activity. Cleaner and safer production and eco-

efficiency approaches include: improving maintenance practices; upgrading or

introducing new technologies or processes; reducing materials and energy use;

using renewable energy; rationalizing the use of water; eliminating or safely

managing toxic and hazardous materials and wastes; and improving product

and service design;

Eco-efficiency approach

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Product-service system approach This can be used to shift the focus of market

interactions from selling or providing products (that is, transfer of ownership

through one-time sale or lease/rental) to selling or providing a system of

products and services that jointly fulfill customer needs (by a variety of service

and delivery mechanisms). Product-service systems include product lease,

product renting or sharing, product pooling and pay-for-service. Such systems

can reduce material use, decouple revenues from material flows, and involve

stakeholders in promoting extended producer responsibility through the life

cycle of the product and accompanying service

Product–service system approach

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• Consider itself as part of, and not separate from, the community in

approaching community involvement and development;

• Recognize and have due regard for the rights of community members to

make decisions in relation to their community and thereby pursue, in the

manner they choose, ways of maximizing their resources and

opportunities;

Approaches to community involvement

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In identifying opportunities for social investment, an organization should align

its contribution with the needs and priorities of the communities in which it

operates, taking into account priorities set by local and national

policymakers. Information sharing, consultation and negotiation are useful

tools for a participative approach to identifying and implementing social

investments.

Participative approach

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The existing values and culture of an organization can have a significant effect

on the ease and pace with which social responsibility can be fully integrated

throughout the organization. For some organizations, where

the values and culture are already closely aligned to those of social

responsibility, the process of integration may be quite straightforward. In

others, some parts of the organization may not recognize the benefits of

social responsibility and may be resistant to change. Systematic efforts over an

extended period may be involved in integrating a socially responsible approach

in these areas.

Socially responsible approach

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Through dialogue with its stakeholders, an organization can benefit from

receiving and exchanging direct information about stakeholders' views. An

organization should seek dialogue with its stakeholders to secure

verification of reported information by stakeholders, if this approach to

verification is used; and identify best practice.

Approaches for verification

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Such comparisons may be focused on actions related to specific core subjects or

on broader approaches to integrating social responsibility throughout the

organization.

As social responsibility is based on values, application of principles of social

responsibility and attitudes, monitoring can involve more subjective approaches

such as interviewing, observing and other techniques for evaluating behavior

and commitments.

Subjective approach

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( 7 )

Tools & Techniques

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(A) Tools

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Information & Communication Technology “ICT” Tools

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Focus on ICT:

Information & Communication Technology “ICT” Tools

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(B) Techniques

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Techniques

1. Social Auditing

2. ISO 19011 : 2011 Audit

3. Key Performance Indicators ( KPIs)

4. Typical KPIs

5. Statistical Techniques in Continuous Social Responsibility Improvement

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Social Audit is based on the principle that democratic local governance should

be carried out, as far as possible, with the consent and understanding of all

concerned. It is thus a process and not an event.

What is a social audit?

A social audit is a way of measuring, understanding, reporting and ultimately

improving an organization’s social and ethical performance. A social audit helps

to narrow gaps between vision/goal and reality, between efficiency and

effectiveness. It is a technique to understand, measure, verify, report on and to

improve the social performance of the organization.

Techniques - Social Auditing

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Social auditing is taken up for the purpose of enhancing local governance,

particularly for strengthening accountability and transparency in local bodies.

The key difference between development and social audit is that a social

audit focuses on the neglected issue of social impacts, while a development

audit has a broader focus including environment and economic issues, such

as the efficiency of a project or program.


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Objectives of social audit :

1. Assessing the physical and financial gaps between needs and resources

available for local development.

2. Creating awareness among beneficiaries and providers of local social and

productive services.

3. Increasing efficacy and effectiveness of local development programs.

4. Scrutiny of various policy decisions, keeping in view stakeholder interests

and priorities, particularly of rural poor.

5. Estimation of the opportunity cost for stakeholders of not getting timely

access to public services.


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Advantages of social audit

a) Trains the community on participatory local planning.

b) Encourages local democracy.

c) Encourages community participation.

d) Benefits disadvantaged groups.

e) Promotes collective decision making and sharing responsibilities.

f) Develops human resources and social capital


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To be effective, the social auditor must have the right to:

1) Seek clarifications from the implementing agency

2) Consider and scrutinize existing schemes and local activities of the

agency

3) Access registers and documents relating to all development activities

undertaken by the implementing agency or by any other government

department.


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Dashboard Design

Techniques - KPIs

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Dashboard

Techniques - KPIs

Dashboard designers must understand:

•The end user’s needs

•How the dashboard will be used

•How the measurements will be made

•How often the measurements will be made

•How the dashboard will be updated

•How to maintain uniformity in design, if possible

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Understanding Dashboard

Techniques - KPIs

• Dashboards are communication tools to provide information at a glance

• Dashboard design begins with an understanding of the user’s needs

• Dashboard design can be done with simple displays

• Dashboard design can be done with simple tools

• Use the fewest metrics necessary

• Determine the fewest metrics that can be retained in memory

• Using too many colors or sophisticated, complex metaphors leads to distractions

• Limit metrics to a single screen

• Perfection in design can never be achieved

• Asking for assistance with the design effort is not an embarrassment

• Monitor the health and user friendliness of the dashboard

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Monitoring & Measurement of Social Performance :

Techniques - KPIs

General Rule If it cannot be measured, then it cannot be managed .

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Metric Measurements

Techniques - KPIs

• Metric measurements can be recorded as:

• Numbers

•Percentages

•Dollars

•Counts

•Ratings (good, bad or neutral)

•Qualitative versus quantitative

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( 8 )

International standards and norms

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Trends in agro-food International Standards

•Increased food safety awareness

•Focus on health and diet

•Social and environmental concerns

•Authenticity of origin

•Product differentiation

•Quality control

•Traceability (field-to-fork)

•Third-party certifications or auditing

•Larger number of standards

•More complex standards

•More stringent food safety standards

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Agro-food Standards as simplified typology

• Mandatory

– Import regulation (i.e. food safety, geographic indications, labelling)

• Voluntary

– International standards (ISO, Codex, SA8000)

– Labels (organic, fair trade, eco-labels)

– Model codes of conduct (EUREP-GAP, ETI)

• Private

– Defined and owned by a company (supermarket chain quality standards)

• Considerable overlaps

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Agro-food Standards as simplified typology

• Standards are mandatory when they are set by governments in the form of

regulation. These may affect trade flows by placing food safety

requirements, testing, certification and labelling procedures on imported

agro-foods

• Voluntary standards arise from a formal coordinated process in which key

participants in a market or sector seek consensus.

• The International Standardization Organisation (ISO) has established over

7,000 voluntary standards. Codex Alimentarius and SA8000 (social

accountability for auditing and certifying labour practices) are other

examples of these

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Standards as a ’trade passport

• Standards define whether a good is ’fit for trade’

• Key issues for developing countries:

– Who defines standards?

– Who decides the content?

– Who sets the measurement methods?

– Who pays for the costs of compliance, monitoring and verification?

– Who captures the benefits?

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Standards as a ’trade passport

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Industry Standards & Quality Requirements

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Industry standards:

• Manage risks relating to product safety & quality

• Enable comparisons of prices between suppliers

• Reduce transaction costs

• Strengthen consumer confidence & loyalty

• Branding & labels can differentiate products

• Certification informs consumers about supply chain practices

• Standards ensures consumer protection & provides both incentives and

sanctions for improvement of product quality & safety.


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Unlikely poorer countries can keep up & benefit from advances in product

specification & certification requirements, without access to sophisticated

technologies, efficient & low-cost communication & information systems,

adequate infrastructure & supportive institutions & services. Need to initiate

dialog on standards on:

• Strengthen compliance & certification & reduce costs

• Reform of institutions & legal frameworks

• Investments in physical facilities, labs, equipment, infra

• Support institutions responsible for food safety, control of fraud,

animal & plant health


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Inspection”One stop shop”

BRCTesting

ISO 9000

HACCP

IFS

ISO 22000

NO

N-G

MO

GlobalGAP

Program Management

•Security

•Social Accountability

•Environmental

HALAL

ORG

ANIC

What Should the Industry Expect?

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Enhancing Food Quality & Safety

Market and Legal compliance

Efficiency

Profitable

Integrated Food Quality and Safety

Systems

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Technical Working Groups

http://www.tesco.com/

http://www.tesco.com/

http://fr.wikipedia.org/wiki/Image:Coca-ColaLogo.png

http://www.aeon.info/

http://www.danone.com/








































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Foundation in Science

GFSI RecognisedSchemes

ISO StandardsISO 22000

Codex Alimentarius StandardsHACCP Principles

Legislation

Requirements

Principles

Standards

Schemes

Supplementary Codes

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Benchmarking – what does it mean?

Once Certified, accepted everywhere

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( 9 )Integrating Human Rights and Labor

issue into Management System

89

Putting Responsibility Management into Practice – Corporate Strategy

Top management need to take a long-term perspective, make a public

commitment, communicate the commitment, be a role model for the

company’s values, integrate vision and values into strategies and practices

and support changes.

Responsibility Management Approaches must be both systemic and holistic

of they are to be effective.

ISO 26000 was designed as a holistic approach involving the

interdependence of seven factors: community involvement and

development, human rights, labor practices, the environment, consumer

issues, fair operating practices and organizational governance .

90

( 10 )

Communication & Reporting ( GRI )

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Communication on Social Responsibility

Communication is critical to many different functions in social responsibility including:• Raising awareness both within and outside the organization on its strategies

and objectives, plans, performance and challenges for social responsibility• Demonstrating respect for the social responsibility principles• Helping to engage and create dialogue with stakeholders• Addressing legal and other requirements for the disclosure of information

related to social responsibility• Showing how the organization is meeting its commitments on social

responsibility and responding to the Interests of stakeholders and expectations of society in general

• Providing information about the impacts of the organization's activities, products and services, including Details of how the impacts change over time

The Role of Communication in Social Responsibility :

92


Information relating to social responsibility should be:

• Complete : information should address all significant activities and impacts

related to social responsibility.

• Understandable : information should be provided with regard for the

knowledge and the cultural, social, educational and economic background

of those who will be involved in the communication.

• Responsive: information should be responsive to stakeholder interests.

• Accurate : information should be factually correct and should provide

sufficient detail to be useful and appropriate for its purpose.

Characteristics of information relating to social responsibility :

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Information relating to social responsibility should be:• Balanced : information should be balanced and fair and should not

omit relevant negative information concerning the impacts of an

organization's activities.• Timely :out of date information can be misleading. Where information

describes activities during a specific period of time, identification of

the period of time covered will allow stakeholders to compare the

performance of the organization with its earlier performance and with

the performance of other organizations • Accessible : information on specific issues should be available to the

stakeholders concerned.

Characteristics of information relating to social responsibility :

94


There are many different types of communication related to social

responsibility. Some examples include:

• Meetings or conversations with stakeholders.

• Communication with stakeholders on specific issues or projects of

social responsibility.

• Communication between the organization's management and

employees or members to raise general awareness about and support

for social responsibility and related activities. Such communication is

generally most effective when it involves dialogue.

• Team activities focused on integration of social responsibility

throughout the organization.

Types of communication on social responsibility :

95


There are many different types of communication related to social

responsibility. Some examples include:

• Communication with stakeholders concerning claims about the social

responsibility related to the organization's activities. These claims can

be verified through internal review and assurance.

• Communication with suppliers about procurement requirements

related to social responsibility;

• Communication to the public about emergencies that have

consequences for social responsibility.

Types of communication on social responsibility :

96


There are many different methods and media that may be used for

communication. These include meetings, public events, forums,

reports, newsletters, magazines, posters, advertising, letters, voicemail,

live performance, video, websites, podcasts (website audio broadcast),

blogs (website discussion forums), product inserts and labels.

It is also possible to communicate through the media using press

releases, interviews, editorials and articles.

97

Sustainability Reporting

The Purpose of a Sustainability Report:

Sustainability reporting is the practice of measuring, disclosing, and being

accountable to internal and external stakeholders for organizational

performance towards the goal of sustainable development. ‘Sustainability

reporting’ is a broad term considered synonymous with others used to

describe reporting on economic, environmental, and social impacts (e.g.,

triple bottom line, corporate responsibility reporting, etc.).

Overview of Sustainability Reporting

98

Reports can be used for the following purposes, among others:

• Benchmarking and assessing sustainability performance with respect to

laws, norms, codes, performance standards, and voluntary initiatives;

• Demonstrating how the organization influences and is influenced by

expectations about sustainable development; and

• Comparing performance within an organization and between different

organizations over time

Overview of Sustainability Reporting Cont.

Sustainability Reporting Cont.

99

Orientation to the GRI Reporting Framework:

All GRI Reporting Framework documents are developed using a process that

seeks consensus through dialogue between stakeholders from business, the

investor community, Labor, civil society, accounting, academia, and others.

All Reporting Framework documents are subject to testing and continuous

improvement



100


The GRI Reporting Framework is intended to serve as a generally accepted

framework for reporting on an organization’s economic, environmental, and

social performance. It is designed for use by organizations of any size,

sector, or location. It takes into account the practical considerations faced

by a diverse range of organizations – from small enterprises to those with

extensive and geographically dispersed operations. The GRI Reporting

Framework contains general and sector-specific content that has been

agreed by a wide range of stakeholders around the world to be generally

applicable for reporting an organization’s sustainability performance



101


The Sustainability Reporting Guidelines (the Guidelines) consist of Principles

for defining report content and ensuring the quality of reported

information. It also includes Standard Disclosures made up of Performance

Indicators and other disclosure items, as well as guidance on specific

technical topics in reporting.



102

• This section provides Reporting Principles and Reporting Guidance

regarding defining report content, ensuring the quality of reported

information, and setting the Report Boundary.

• Reporting Guidance describes actions that can be taken, or options that

the reporting organization can consider when making decisions on what

to report on, and generally helps interpret or govern the use of the GRI

Reporting Framework. Guidance is provided for defining report content

and setting report Boundary.

Part 1: Defining Report Content, Quality, and Boundary


103

In order to ensure a balanced and reasonable presentation of the

organization’s performance, a determination must be made about

what content the report should cover. This determination should be

made by considering both the organization’s purpose and experience,

and the reasonable expectations and interests of the organization’s

stakeholders. Both are important reference points when deciding what

to include in the report.

Part 1: Defining Report Content Cont.


104

• The following approach governs the use of the GRI Reporting

Framework in preparing sustainability reports.

• Identify the topics and related Indicators that are relevant, and

therefore might be appropriate to report, by undergoing an

iterative process using the Principles of materiality, stakeholder

inclusiveness, sustainability context, and guidance on setting the

Report Boundary.

Reporting Guidance for Defining Content:


105

• When identifying topics, consider the relevance of all Indicator Aspects

identified in the GRI Guidelines and applicable Sector Supplements. Also

consider other topics, if any, that are relevant to report.

• From the set of relevant topics and Indicators identified, use the tests listed for

each Principle to assess which topics and Indicators are material, and

therefore should be reported.



106

• Use the Principles to prioritize selected topics and decide which will be

emphasized.

• The specific methods or processes used for assessing materiality should:

• Differ for, and can be defined by, each organization;

• Always take into account the guidance and tests found in the GRI

Reporting Principles; and

• Be disclosed.



107

Each of the Reporting Principles consists of a definition, an explanation, and

a set of tests to guide the use of the Principles. The tests are intended to

serve as tools for self-diagnosis, but not as specific Disclosure items to report

against. The Principles should be used together with the guidance on

defining content.

Materiality:

Definition: The information in a report should cover topics and Indicators

that reflect the organization’s significant economic, environmental, and social

impacts, or that would substantively influence the assessments and decisions

of stakeholders

Reporting Principles for Defining Content:


108

Explanation: Organizations are faced with a wide range of topics on which

they could report. Relevant topics and Indicators are those that may

reasonably be considered important for reflecting the organization’s

economic, environmental, and social impacts, or influencing the decisions of

stakeholders, and, therefore, potentially merit inclusion in the report.

Materiality is the threshold at which an issue or Indicator becomes

sufficiently important that it should be reported. Beyond this threshold, not

all material topics will be of equal importance and the emphasis within a

report should reflect the relative priority of these material topics and

Indicators.

Reporting Principles for Defining Content:


109

• This section specifies the base content that should appear in a

sustainability report, subject to the guidance on determining

content in Part 1 of the Guidelines.

• There are three different types of disclosures contained in this

section.

• Strategy and Profile: Disclosures that set the overall context for

understanding organizational performance such as its strategy,

profile, and governance.

Part 2: Standard Disclosures


110

• Management Approach: Disclosures that cover how an

organization addresses a given set of topics in order to provide

context for understanding performance in a specific area.

• Performance Indicators: Indicators that elicit comparable

information on the economic, environmental, and social

performance of the organization.

• Reporting organizations are encouraged to follow this structure in

compiling their reports, however, other formats may be chosen

Part 2: Standard Disclosures Cont.


111

This section is intended to provide a high-level, strategic view of the

organization’s relationship to sustainability in order to provide

context for subsequent and more detailed reporting against other

sections of the Guidelines. It may draw on information provided in

other parts of the report, but this section is intended to produce

insight on strategic topics rather than simply summarize the

contents of the report.

ProfileStrategy and Analysis


112

• Name of the organization.

• Primary brands, products, and/or services.

• The reporting organization should indicate the nature of its role in

providing these products and services, and the degree to which it

utilizes outsourcing.

• Operational structure of the organization, including main divisions,

operating companies, subsidiaries, and joint ventures.

• Location of organization’s headquarters.

Organizational Profile


113

• Report Profile

– Reporting period (e.g., fiscal/calendar year) for information

provided.

– Date of most recent previous report (if any).

– Reporting cycle (annual, biennial, etc.).

– Contact point for questions regarding the report or its contents

Report Parameters


114

Data Gathering: Feasibility Assessment

The process of defining report content will result in a set of topics and

Indicators on which the organization should report. However, practical

challenges such as the availability of data, the cost of gathering it, the

confidentiality of information, privacy or other legal concerns, the

reliability of available information, and other factors, may result in a

legitimate decision not to disclose certain information. Where material

information is omitted, the report should clearly indicate this and the

reasons why.

General Reporting Notes


115

Data Aggregation and DisaggregationReporting organizations will need to determine the level of aggregation at which to present information. This requires balancing the effort required against the added meaningfulness of information reported on a disaggregated basis (e.g., country or site). Aggregation of information can result in the loss of a significant amount of meaning, and can also fail to highlight particularly strong or poor performance in specific areas. On the other hand, unnecessary disaggregation of data can affect the ease of understanding the information. Reporting organizations should disaggregate information to an appropriate level using the principles and the guidance in the reporting Indicators. Disaggregation may vary by Indicator, but will generally provide more insight than a single, aggregated figure.

General Reporting Notes Cont.


116

Report Form and Frequency: Definition of a Sustainability Report

A sustainability report refers to a single, consolidated disclosure that provides a

reasonable and balanced presentation of performance over a fixed time period.

Stakeholders should be able to directly access all of the report information from

a single location, such as a GRI content index. Other publications should not be

referenced as the information source for a GRI Standard Disclosure Item (ex., a

Performance Indicator) unless the means for a stakeholder to directly access the

information is provided (e.g., a link to a specific web page or the page number of

the corresponding publication). There is no minimum length for a report using

the GRI Framework as long as the organization has properly applied the

Guidelines and Framework documents it has chosen to use.



117

Medium of ReportingElectronic (e.g., CD-ROM) or web-based reporting and paper reports are appropriate media for reporting. Organizations may choose to use a combination of web and paper-based reports or use only one medium. For example, an organization may choose to provide a detailed report on their website and provide an executive summary including their strategy and analysis and performance information in paper form. The choice will likely depend on the organization’s decisions on its reporting period, its plans for updating content, the likely users of the report, and other practical factors such as its distribution strategy. At least one medium (web or paper) should provide users with access to the complete set of information for the reporting period.



118

Frequency of Reporting

Organizations should define a consistent and periodic cycle for issuing a report. For many organizations, this will be an annual cycle, although some organizations choose to report biannually. An organization may choose to update information on a regular basis between the issuing of consolidated accounts of performance. This has advantages in terms of providing stakeholders with more immediate access to information, but has disadvantages in terms of comparability of information. However, organizations should still maintain a predictable cycle in which all of the information that is reported covers a specific time period.



119

Updating Report ContentWhen preparing a new report, an organization may identify areas of information that have not changed since the prior report (e.g., a policy that has not been amended). The organization may choose to only update the topics and Indicators that have changed and to re-publish the Disclosures that have not changed. For example, an organization may choose to reproduce the information on policies that have not changed and only update its Performance Indicators. The flexibility to take such an approach will depend in large part on the organization’s choice of reporting medium. Topics such as strategy and analysis and Performance Indicators are likely to show changes each reporting period, while other topics such as organizational profile or governance may change at a slower pace. Regardless of the strategy used, the full set of applicable information for the reporting period should be accessible in a single location (either a paper or web-based document).



120

( 11 )Conformity, Conformance or Compliance

& Certification

121

Conformity, Conformance or Compliance

Do you say conformity or compliance? Is it okay to use conformance instead of

conformity? Does it matter?• The ISO 9000:2000 Fundamentals and Vocabulary standard defines

conformity

as the fulfillment of a requirement. A note says conformance is synonymous,

but deprecated (meaning use of that term is considered obsolete).

• ISO 9000 defines nonconformity as the non-fulfillment of a requirement. It

doesn’t define compliance.

• QS-9000 uses both conformity (process) and conformance (product).

However, ISO 9000 uses conformity as fulfilling either process or product

requirements.

122

Conformity, Conformance or Compliance

• QS-9000 defines nonconformity as a “process” which does not conform

to a quality system requirement. It makes the distinction that

a nonconformance is a “product or material” which does not conform

to customer requirements or specifications.

• ISO/TS 16949:2002 (the replacement for QS-9000 by 2006) uses the

ISO 9000:2000 definitions for conformity and nonconformity. It

dropped the QS-9000 use of nonconformance.

• ISO/IEC Guide 2:1996 defines conformity as “fulfillment by a product,

process, or service of specified requirements”.

123

Certification

• Certification is known in some countries as registration.

• It means that an independent, external body has audited an organization's

management system and verified that it conforms to the requirements specified in

the standard (ISO 9001 ,ISO 14001, ISO 22000 & ISO-----).

• ISO does not carry out certification and does not issue or approve certificates,

• Certification is not a requirement of ISO 9001, ISO 14001, ISO 22000 & ISO----.

• The organization can implement and benefit from an ISO 9001 or ISO 14001 system

without having it certified.

• The organization can implement them for the internal benefits without spending

money on a certification program.

124

Third-Party Certification

• A tool allowing producers to enter a recognized market using an

established umbrella program or label

• Certified products provide consumer assurance that products meet

certain “extra-sensory” or production/process attributes

• Third-party certification implies that the certifying party does not

directly benefit from sale of the goods.

125

Branding vs. Certification

Branding

“A name, term, design, symbol, or

any other feature that identifies one

seller’s good or service as distinct

from those of other sellers.”

Certification

“To confirm formally as true, accurate, or

genuine. To guarantee as meeting a

standard.”

Nutritious, Safe, AffordableLabel may display one or both of these items

126

Functions of Third-Party Certification

1. Standard Setting

– Specific quality levels, well-defined criteria and terminology

2. Testing/Inspection

– Objective verification of production practices, record-keeping

requirements, quality standards, etc.

3. Provide Labels to Certified Producers

4. Enforcement

– Continued testing & inspection

– Fines/penalties for fraud

127

Types of Certifying Agencies

• International Bodies

• Government Agencies

• Non-Government Organizations (NGOs)

• Private Companies

128

Benefit of Certificate

Benefits:

• Meet the requirements and conditions on the regional and international level

for approval as a supplier in relation to the global food chain and market share.

• Show commitment to risk management related to food safety

• Show and reflect commitment to customer satisfaction for food products

• Achieve internal efficiency by reducing errors and waste of resources , which

leads to a sustainable improvement

• Improve the stability of prices of food products

• lead to increase the size of the company's business and enter new markets and

gain a larger

• Improve the image of the entity

1 competitiveness, responsibility and sustainability february 24 th, 2014. marriot hotel...

Documents

definitions slide

ecrc total slide

egypt slide

business environment

ecrc total terms

osama elmeligy slide

environmental challenges

economic challenges