exchange - icrs online...contributing to the u.n. sustainable development goals (sdgs) on 25...

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?

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


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


Company Overview


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


44

Our growing global presence

As of 31 August 2016


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


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


Contributing to the U.N. Sustainable Development Goals


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.


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


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


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


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


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


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


Contributing to the U.N. Sustainable Development Goals (SDGs)

55


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


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


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)


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

Exchange2017

Network: Barbican EventPassword: business5948

@WeAreICRS

exchange - icrs online...contributing to the u.n. sustainable development goals (sdgs) on 25...

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