csr strategy and transparency voluntary and mandatory aspects · capacity for charity/philanthropic...
Post on 08-Jul-2020
2 Views
Preview:
TRANSCRIPT
CSR Strategy and
transparency –
voluntary and
mandatory aspects
Geta Diaconu
Director, Sustainability Advisory and CSR
8 September 2015
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.1
Agenda
Sustainability vs. CSR
The meaning of CSR
Why a CSR strategy?
Main steps and aspects for the
development of a CSR strategy
Case study – KPMG in Romania
The status of reporting
Mandatory reporting requirements
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.2
Sustainability vs. CSR
Shared value
“The concept of shared value
can be defined as policies and
operating practices that
enhance the competitiveness
of a company while
simultaneously advancing the
economic and social conditions
in the communities in which it
operates …” – Michael E.
Porter and Mark R. Kramer,
The Big Idea: Creating Shared
Value, Harvard Business
Review
Corporate Social
Responsibility (CSR)
"Corporate Social
Responsibility is the continuing
commitment by business to
behave ethically and contribute
to economic development while
improving the quality of life of
the workforce and their families
as well as of the local
community and society at
large.“ – The World Business
Council for Sustainable
Development (WBCSD)
Sustainable Development
(SD)
“Development that meets the
needs of the present without
compromising the ability of
future generations to meet their
own needs.” – The Brundtland
Report (1987)
1987 1995 2008 2011
Social innovation
“A novel solution to a social
problem that is more effective,
efficient, sustainable, or just
than existing solutions and for
which the value created
accrues primarily to society as
a whole rather than private
individuals.” – Phills Jr.,
Deiglmeier e Miller, Center for
Social Innovation, Stanford
Graduate School of Business
Sustainability, CR and CSR mean different things to different people
Some opinions are built
around the idea that
sustainability is a component
of CSR and that the two are
not mutually exclusive.
CSR is one of the 3 P’s
(People, Planet, Profit) –
another reference to
sustainability
Two faces of the same coin:
“CSR defines the social responsibilities of a
corporation which, if implemented, will lead
to the corporation being sustained”
(Collins and Porras, ‘Building your company's
vision’, Harvard Business Review,)
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.3
The meaning of CSR
SOCIETY
ENVIRONMENT Business
Human rights
Community involvement &
development
Labour
practices
GOVERNANCE
Consumer issues
Fair operating practices
Environmental
performance
“CSR is organizations obligation to
consider the interest of their
customers, employees,
shareholders, communities, and
the ecology and to consider the
social and environmental
consequences of their business
activity.” as defined by Stanford University’s Graduate
School of business
ISO defines social responsibility as
"responsibility of an organization for
the impacts of its decisions and
activities on society and the
environment through transparent and
ethical behavior…”
Corporate Social Responsibility at a glance
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.4
Why a CSR Strategy?
By taking a strategic approach, companies determine what activities they have the
resources to develop to being socially responsible and to get solutions for:
Balancing the creation of economic value with that of societal
value;
Deciding the organization’s
capacity for charity/philanthropic
activities;
Managing their stakeholder relationships (especially
those with competing values);
Identifying and responding to threats and
opportunities facing their stakeholders;
Developing sustainable
business practices.
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.5
Main steps for developing CSR Strategy
Phase 3 Define
Develop your mission,
vision, values, and
core competences.
Phase 4.1 Plan
Identify and set up the main
CSR directions, taking into
account the previous
analyze on
partners/stakeholder; do not
focus exclusively on
charity/philanthropy!
Phase 4.2 Plan
Build a realistic CSR plan,
you can actually implement.
Focus on the link to your
business strategy.
Phase 5 Implement & assess
Execute your strategy and
maintain sustainable focus.
Consistently assess and
communicate the results.
Phase 1 Analyze
Conduct a SWOT
analysis to determine
your strategic position
and resources.
Phase 2 Scale your impact
Identify your partners/stakeholders and
prioritize them according to their influence
to your business as well as according to
your business effect/influence on them.
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.6
Core characteristics of CSR
Shareholders
Employees
Professional
organizations/
associations
Clients
Strategic partners
Competitors
Suppliers/Contractors
Media
Community
Authorities
…
Education
institutions
Beyond philanthropy VoluntarilySocial and economic
alignment
Multiple stakeholder
orientation
Managing
externalitiesPractice and value
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.7
Elements for a successful CSR strategy
■ Understanding your company’s core competence, industry nuances and
stakeholders expectations;
■ Consider people as your messengers – engage employees as they are the
biggest spokespersons (ask input, share victories, etc.);
■ Support and involvement of the management creates a CSR cultural shift in the
company;
■ Identify reliable partners that complement your CSR approach (e.g.
collaboration with NGO’s, local authorities, etc.);
■ Consider your people important for your business and show them the “human”
side of your company;
■ Set measurable and preferably quantifiable goals and measure them regularly –
identify needed improvements;
■ Keeping CSR for the long run (if started keep it up).
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.8
CSR at KPMG in Romania
Why?
Because we believe in our values:
■ We lead by example
■ We work together
■ We respect the individual
■ We seek the facts and provide insight
■ We are open and honest in our communication
■ We are committed t o our communities
■ Above all, we act with integrity
What?
Integrate CSR into the core business
How?
HOW
KPMG’s new vision of CSR
Community■ Volunteering
■ Pro Bono
■ External support
■ Engaging employees
Environment
■ Environmental policy
■ Carbon footprint
reporting
■ Carbon footprint
reduction
■ Engaging Employees
Workplace
■ Being an Employer of
Choice
■ Wellbeing
■ Engaging our
Employees
■ Valuing Diversity
Marketplace
■ CSR in Proposals
■ Joint Community
Programs
■ CSR Awards
■ Sustainable
Procurement Program
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.9
The status of reporting
KPMG Survey of CR Reporting
■ The first KPMG Survey of CR Reporting was
published in 1993
■ It is widely acknowledged as the most extensive
global survey on CR/sustainability reporting trends
■ The 2013 Survey covers the world’s largest 250
companies (the G250) and top 100 companies
(N100) by revenue across 41 countries (4,100
companies) - 15 industry sectors
■ The 1st part of the survey focuses on Quantity:
Who is reporting by country/region/sector
Format, assurance, integration, guidelines
■ The 2013 edition also explores, for the first time, the
quality of G250 CR reports ( 2nd Part of the Survey):
7 criteria for best practice reporting
Interviews with top scoring G250 companies (14
companies interviewed)
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.10
The status of reporting
Worldwide
1218
2428
41
53
6471
35
45
64
83
95 93
0
20
40
60
80
100
1993 1996 1999 2002 2005 2008 2011 2013
N100
G250
CR reporting standard business practice worldwide
■ To report or not to report? The debate is over
■ Boards need to get behind integrated reporting
■ Assurance is no longer just an option
■ Risk and opportunity needs to be linked to value
■ Supply chain reporting needs more focus
93% of G250 issue CR reports
Of those:
■ Most include CR information in
annual financial reports.
■ 79% identify material CR issues
■ 87% identify social and
environmental “megaforces” that
affect the business.
■ 81% identify business risks from
megaforces
■ 87% identify commercial
opportunities.
■ Innovation is the most commonly
cited opportunity (72%)
■ Only 10% link CR performance to
remuneration
■ Only 5% of G250 CR reports discuss
financial value at stake
© 2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.11
The status of reporting
Romania (N100)
2013 2014*2011 Year
Nu
mb
er
of
rep
ort
ing
co
mp
an
ies
69
53
■ 33 local companies (out of 69) report
information on their sustainability
performance, either as a separate CR report
or as a section of the annual report. 36
companies (part of multinationals) submit CSR
information for the Group report.
■ The reporting principles of the GRI Guidelines
(the most used non-financial reporting
guidelines) are taken into consideration by
only 3 out of the 33 companies above
mentioned. None of these reports is
assured by a third party.
■ The results of the Survey also point to a
difference between multinational companies
operating in Romania, which are more active
in CR reporting and 100% Romanian capital
companies, which are less interested in
voluntary disclosure of non-financial
information.
N100
CR/sustainability report
Annual reports
Interactive online CR reports
Website information
Sources of information
available for the year 2012
Results
68
* Preliminary results
12©2015 KPMG Advisory SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative("KPMG International"), a Swiss entity. All rights reserved. PDC no.8229.
Mandatory reporting requirements
Application
■ European public interest entities
■ Large (turnover > 40mln Eur, balance
sheet > 20mln Eur)
■ Average # of employees > 500
■ Subsidiaries exempted if group reports
Requirements
■ In management report (countries may
accept separate reporting)
■ Comply or explain
■ National, EU-based or international
reporting frameworks
Assurance
■ Not required, Member States may require
this
■ Statutory auditor has to assess that
reporting requirement has been fulfilled
Effective date
■ 2017
In October 2014 the Directive on disclosure of non-financial information was published.
Specifically, more than 6,000 companies across the EU and approximately 600 in Romania fall
under this Directive.
Thank you
Geta Diaconu
Director, Sustainability Advisory
Tel: + 40 372 377 776 Fax: + 40 372 377 700 gdiaconu@kpmg.com
© 2015 KPMG Advicory SRL, a Romanian limited
liability company and a member firm of the KPMG
network of independent member firms affiliated with
KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
The KPMG name, logo and “cutting through
complexity” are registered trademarks or trademarks
of KPMG International Cooperative (“KPMG
International”).
top related