reputation - can reality really triumph over bulls**t?
DESCRIPTION
Rob Challis created the original sustainability plan for MAN group. Research-driven it was ground-breaking in its scope. Here he looks at:- the correlation between CSR disciplines and sustainability-the relevance of stakeholder engagement in developing a credible sustainability proposition-the role that identifying non-financial risk has to play in reputation management-how these factors facilitate an understanding of the constituents of trust which underpin reputation.TRANSCRIPT
REPUTATIONREPUTATIONCan reality really triumph over Can reality really triumph over bulls**t?bulls**t?
Areas I will chat about this Areas I will chat about this afternoonafternoon
Areas I will chat about this Areas I will chat about this afternoonafternoon
• The correlation between CSR disciplines and sustainability
Areas I will chat about this Areas I will chat about this afternoonafternoon
• The correlation between CSR disciplines and sustainability
• The relevance of stakeholder engagement in developing a credible sustainability proposition
Areas I will chat about this Areas I will chat about this afternoonafternoon
• The correlation between CSR disciplines and sustainability
• The relevance of stakeholder engagement in developing a credible sustainability proposition
• The role that identifying non-financial risk has to play in reputation management
Areas I will chat about this Areas I will chat about this afternoonafternoon• The correlation between CSR disciplines
and sustainability
• The relevance of stakeholder engagement in developing a credible sustainability proposition
• The role that identifying non-financial risk has to play in reputation management
• How these factors facilitate an understanding of the constituents of trust which underpin reputation
BUT…before we begin…BUT…before we begin…
BUT…before we begin…BUT…before we begin…Of the institutions you represent, Of the institutions you represent, hands up if you..hands up if you..
BUT…before we begin…BUT…before we begin…Of the institutions you represent, Of the institutions you represent, hands up if you..hands up if you..
•believe they have a good reputationbelieve they have a good reputation
BUT…before we begin…BUT…before we begin…Of the institutions you represent, Of the institutions you represent, hands up if you..hands up if you..
•believe they have a good reputationbelieve they have a good reputation
•believe their reputation is not as good as it believe their reputation is not as good as it waswas
BUT…before we begin…BUT…before we begin…Of the institutions you represent, Of the institutions you represent, hands up if you..hands up if you..
•believe they have a good reputationbelieve they have a good reputation
•believe their reputation is not as good as it believe their reputation is not as good as it waswas
•know know “why” “why” to either of these scenariosto either of these scenarios
And one more….And one more….
After five years in tenure, how closely After five years in tenure, how closely is the CEO’s reputation aligned with is the CEO’s reputation aligned with the reputation of the business?the reputation of the business?
And one more….And one more….
After five years in tenure, how closely After five years in tenure, how closely is the CEO’s reputation aligned with is the CEO’s reputation aligned with the reputation of the business?the reputation of the business?
•Who thinks Who thinks 20%?20%?
And one more….And one more….
After five years in tenure, how closely After five years in tenure, how closely is the CEO’s reputation aligned with is the CEO’s reputation aligned with the reputation of the business?the reputation of the business?
•Who thinks Who thinks 20% 20% ??
•Who thinks Who thinks 50% 50% ??
And one more….And one more….
After five years in tenure, how closely After five years in tenure, how closely is the CEO’s reputation aligned with is the CEO’s reputation aligned with the reputation of the business?the reputation of the business?
•Who thinks Who thinks 20% 20% ??
•Who thinks Who thinks 50% 50% ??
•Who thinks Who thinks 80% 80% ??
So there is a strong link between So there is a strong link between personal behaviour and corporate personal behaviour and corporate behaviour to a company’s reputationbehaviour to a company’s reputation
So how does one put a quantifiable So how does one put a quantifiable value on reputation risk?value on reputation risk?
So how does one put a quantifiable So how does one put a quantifiable value on reputation risk?value on reputation risk?
Historically…Historically…
So how does one put a quantifiable So how does one put a quantifiable value on reputation risk?value on reputation risk?
Historically…Historically…
•Something bad/dumb we doSomething bad/dumb we do
So how does one put a quantifiable So how does one put a quantifiable value on reputation risk?value on reputation risk?
Historically two reputation risk scenarios:- Historically two reputation risk scenarios:-
•Something bad/dumb we doSomething bad/dumb we do
•Something bad/dumb someone in Something bad/dumb someone in our sector does (reputational our sector does (reputational impairment by contagion)impairment by contagion)
Risk Capital allocated to Risk Capital allocated to Reputation Risk in these two Reputation Risk in these two scenarios…scenarios…
Risk Capital allocated to Risk Capital allocated to Reputation Risk in these two Reputation Risk in these two scenarios…scenarios…• On a “what if” or “what could On a “what if” or “what could
possibly go wrong” basispossibly go wrong” basis
Risk Capital allocated to Risk Capital allocated to Reputation Risk in these two Reputation Risk in these two scenarios…scenarios…• On a “what if” or “what could On a “what if” or “what could
possibly go wrong” basispossibly go wrong” basis
• Taking a view on:-Taking a view on:-
Risk Capital allocated to Risk Capital allocated to Reputation Risk in these two Reputation Risk in these two scenarios…scenarios…• On a “what if” or “what could On a “what if” or “what could
possibly go wrong” basispossibly go wrong” basis
• Taking a view on:-Taking a view on:-
• the likely risks which might the likely risks which might crystallise under given scenarioscrystallise under given scenarios
Risk Capital allocated to Risk Capital allocated to Reputation Risk in these two Reputation Risk in these two scenarios…scenarios…• On a “what if” or “what could On a “what if” or “what could
possibly go wrong” basispossibly go wrong” basis
• Taking a view on:-Taking a view on:-
the likely risks which might the likely risks which might crystallise under given scenarioscrystallise under given scenarios
how much it might cost were they to how much it might cost were they to crystallisecrystallise
Perhaps A Different Perhaps A Different Approach?Approach?
Perhaps A Different Perhaps A Different Approach?Approach?• Consider how “reputation” is defined…Consider how “reputation” is defined…
Perhaps A Different Perhaps A Different Approach?Approach?• Consider how “reputation” is defined…Consider how “reputation” is defined…
• Reputation concerns perceptions-that is Reputation concerns perceptions-that is what key people/groups think of you and what key people/groups think of you and your sector your sector (“Stakeholders”)(“Stakeholders”)
Perhaps A Different Perhaps A Different Approach?Approach?• Consider how “reputation” is defined…Consider how “reputation” is defined…
• Reputation concerns perceptions-that is what key Reputation concerns perceptions-that is what key people/groups think of you and your sector people/groups think of you and your sector (“Stakeholders”)(“Stakeholders”)
• Relates to brand and sub-brands Relates to brand and sub-brands (e.g. Employer of (e.g. Employer of Choice, Shareholder, Customer, Community etc.)Choice, Shareholder, Customer, Community etc.)
Perhaps A Different Perhaps A Different Approach?Approach?• Consider how “reputation” is defined…Consider how “reputation” is defined…
• Reputation concerns perceptions-that is what key Reputation concerns perceptions-that is what key people/groups think of you and your sector people/groups think of you and your sector (“Stakeholders”)(“Stakeholders”)
• Relates to brand and sub-brands Relates to brand and sub-brands (e.g. Employer of Choice, (e.g. Employer of Choice, Shareholder, Customer, Community etc.)Shareholder, Customer, Community etc.)
• Use CSR disciplines to break reputation down into “bite-Use CSR disciplines to break reputation down into “bite-sized” chunkssized” chunks
Perhaps A Different Perhaps A Different Approach?Approach?• Consider how “reputation” is defined…Consider how “reputation” is defined…
• Reputation concerns perceptions-that is what key people/groups Reputation concerns perceptions-that is what key people/groups think of you and your sector think of you and your sector (“Stakeholders”)(“Stakeholders”)
• Relates to brand and sub-brands Relates to brand and sub-brands (e.g. Employer of Choice, (e.g. Employer of Choice, Shareholder, Customer, Community etc.)Shareholder, Customer, Community etc.)
• Use CSR disciplines to break reputation down into “bite-sized” Use CSR disciplines to break reputation down into “bite-sized” chunkschunks
• Consider where issues of trust might ariseConsider where issues of trust might arise
Perhaps A Different Perhaps A Different Approach?Approach?• Consider how “reputation” is defined…Consider how “reputation” is defined…
• Reputation concerns perceptions-that is what key Reputation concerns perceptions-that is what key people/groups think of you and your sector people/groups think of you and your sector (“Stakeholders”)(“Stakeholders”)
• Relates to brands and sub-brands Relates to brands and sub-brands (e.g. Employer of (e.g. Employer of Choice, Shareholder, Customer, Community etc.)Choice, Shareholder, Customer, Community etc.)
• Use Use CSRCSR disciplines to break reputation down into disciplines to break reputation down into “bite-sized” chunks“bite-sized” chunks
• Consider where issues of trust might arise Consider where issues of trust might arise
• So, who values CSR in this context?So, who values CSR in this context?
Companies which Report on Corporate Companies which Report on Corporate Social Responsibility Issues *Social Responsibility Issues *
2008 2008 20022002
Fortune 500 Top 250Fortune 500 Top 250 64%64% 45%45%
World’s Top 100World’s Top 100 80%80% 23%23%
United KingdomUnited Kingdom 71%71% 49%49%
Financial Sector (Global)Financial Sector (Global) 57%57%27%27%
* KPMG
Key Global CSR DriversKey Global CSR Drivers
• EconomicEconomic 74%74%• EthicalEthical 53%53%• Innovation and learningInnovation and learning 53%53%• Employee motivationEmployee motivation 47%47%• Risk management/reductionRisk management/reduction 47%47%• Access to capital/increased shareholder valueAccess to capital/increased shareholder value39%39%• Reputation or brandReputation or brand 27%*27%*• Market position (share) improvementMarket position (share) improvement 21%21%• Strengthened supplier relationshipsStrengthened supplier relationships 13%13%• Cost savingsCost savings 9%9%• Relationships with governmental authoritiesRelationships with governmental authorities9%9%• OtherOther 11%11%* Most are in the DJSI* Most are in the DJSI
To understand the relationship of CSR to To understand the relationship of CSR to Reputation, let’s consider the Social Reputation, let’s consider the Social Responsibility of business?Responsibility of business?
Milton Friedman said…Milton Friedman said…
• ““The social responsibility of business The social responsibility of business is to increase its profits….”is to increase its profits….”
Milton Friedman said…Milton Friedman said…
• ““The social responsibility of business The social responsibility of business is to increase its profitsis to increase its profits
• …….so long as it stays within the rules .so long as it stays within the rules of the game ”of the game ”
Milton Friedman said…Milton Friedman said…
• ““The social responsibility of business The social responsibility of business is to increase its profits….so long as is to increase its profits….so long as it stays within the rules of the game it stays within the rules of the game
• ……which is to say, engages in open which is to say, engages in open and free competition without and free competition without deception and fraud”deception and fraud”
So the full quote…So the full quote…
• ““The social responsibility of business The social responsibility of business is to increase its profits so long as it is to increase its profits so long as it stays within the rules of the game, stays within the rules of the game, which is to say, engages in open and which is to say, engages in open and free competition without deception free competition without deception and fraud”and fraud”
The “game” has changedThe “game” has changed
The “game” has changedThe “game” has changed• Business can no longer be focused Business can no longer be focused
solely on profits to the exclusion of solely on profits to the exclusion of perceived “social” obligationsperceived “social” obligations
The “game” has changedThe “game” has changed• Business can no longer be focused Business can no longer be focused
solely on profits to the exclusion of solely on profits to the exclusion of perceived “social” obligationsperceived “social” obligations
• ““Push and pull”- Push and pull”- pushpush by business to by business to differentiate and differentiate and pullpull by by stakeholders re evidencing trust, stakeholders re evidencing trust, stewardship, risk management and stewardship, risk management and sustainabilitysustainability
The “game” has changedThe “game” has changed• Business can no longer be focused Business can no longer be focused
solely on profits to the exclusion of solely on profits to the exclusion of perceived “social” obligationsperceived “social” obligations
• ““Push and pull”- Push and pull”- pushpush by business to by business to differentiate and differentiate and pullpull by by stakeholders re evidencing trust and stakeholders re evidencing trust and sustainabilitysustainability
• Business can no longer simply state Business can no longer simply state their case, they must their case, they must proveprove it. it.
Key risk is not Key risk is not understanding the concerns understanding the concerns of stakeholders who of stakeholders who “own” “own” your reputationyour reputation
And one way to measure And one way to measure the impact……the impact……
Identification / Quantification of Identification / Quantification of Key Non-Financial RisksKey Non-Financial Risks
The main non financial risk of any company is its REPUTATION
“ Corporate responsibility is the discipline by which we
evidence and quantify responsible behaviour to
our stakeholders. In doing so, we build and sustain
their trust in and commitment to our Group
and confidence in our brand”.
Market Cap
Net asset value
RE
PU
TA
TIO
N
Key risk is not Key risk is not understanding the concerns understanding the concerns of stakeholders who…of stakeholders who…• are key to maintaining and are key to maintaining and
enhancing valueenhancing value
Key risk is not Key risk is not understanding the concerns understanding the concerns of stakeholders who…of stakeholders who…• are key to maintaining and are key to maintaining and
enhancing valueenhancing value
• have, within each distinct have, within each distinct stakeholder group, different interests stakeholder group, different interests and risk concerns which are and risk concerns which are fundamental to evidencing fundamental to evidencing sustainabilitysustainability
Key words as strategic context Key words as strategic context for effective reputation for effective reputation management…management…
Key words as strategic context Key words as strategic context for effective reputation for effective reputation management…management…•StakeholdersStakeholders – their perception of – their perception of
you versus your realityyou versus your reality
Key words as strategic context Key words as strategic context for effective reputation for effective reputation management…management…•StakeholdersStakeholders – their perception of – their perception of
you versus your realityyou versus your reality
•Risk Risk – the risk to your reputation – the risk to your reputation arising from each stakeholder group arising from each stakeholder group ((CSRCSR is a is a riskrisk discipline) discipline)
So what is a Stakeholder?So what is a Stakeholder?
So what is a Stakeholder?So what is a Stakeholder?
• ““Anyone who can bugger up your Anyone who can bugger up your company”company” (Financial Times) (Financial Times)
So what is a Stakeholder?So what is a Stakeholder?
• ““Anyone who can bugger up your Anyone who can bugger up your company”company” (Financial Times) (Financial Times)
• ““Someone who can be affected by of Someone who can be affected by of affect a company’s actionsaffect a company’s actions” (ICSA ” (ICSA Directors’ Handbook)Directors’ Handbook)
So what is a Stakeholder?So what is a Stakeholder?
• ““Anyone who can bugger up your Anyone who can bugger up your company”company” (Financial Times) (Financial Times)
• ““Someone who can be affected by of Someone who can be affected by of affect a company’s actionsaffect a company’s actions” (ICSA ” (ICSA Directors’ Handbook)Directors’ Handbook)
• Direct (employees, shareholders etc.) Direct (employees, shareholders etc.) andand
So what is a Stakeholder?So what is a Stakeholder?
• ““Anyone who can bugger up your Anyone who can bugger up your company”company” (Financial Times) (Financial Times)
• ““Someone who can be affected by of Someone who can be affected by of affect a company’s actionsaffect a company’s actions” (ICSA ” (ICSA Directors’ Handbook)Directors’ Handbook)
• Direct (employees, shareholders etc.) Direct (employees, shareholders etc.) and..and..
• Indirect (media, NGOs etc.)Indirect (media, NGOs etc.)
Generic Grouping of Typical Generic Grouping of Typical StakeholdersStakeholders
• PeoplePeople
• Market placeMarket place
• Community Community
• EnvironmentEnvironment (As it addresses (As it addresses covariant risks-more later..)covariant risks-more later..)
KEY WORD……….KEY WORD……….
•RISKRISKThe The New Companies ActNew Companies Act requires requires
(some) companies to report on key (some) companies to report on key non-financial risks which “non-financial risks which “if if crystallised could have a material crystallised could have a material adverse impact on the financial adverse impact on the financial performance of the company.…”performance of the company.…”
KEY WORD……….KEY WORD……….
•SUSTAINABILITYSUSTAINABILITY
• The Dow Jones Sustainability Index defines The Dow Jones Sustainability Index defines Sustainability as:Sustainability as:
• “ “a business approach that creates long-a business approach that creates long-term shareholder value by embracing term shareholder value by embracing opportunities and managing risks opportunities and managing risks deriving from economic, environmental deriving from economic, environmental and social developments”.and social developments”.
Non-financial Risk and Non-financial Risk and Sustainability….Sustainability….
The relationship between on-The relationship between on-financial Risk and financial Risk and Sustainability….Sustainability….• The identification, analysis, The identification, analysis,
mitigation and transparent reporting mitigation and transparent reporting of non-financial risks constitute the of non-financial risks constitute the bedrock of sustainabilitybedrock of sustainability
Non-financial Risk and Non-financial Risk and Sustainability….Sustainability….
• The identification, analysis, The identification, analysis, mitigation and transparent reporting mitigation and transparent reporting of non-financial risks constitute the of non-financial risks constitute the bedrock of sustainabilitybedrock of sustainability
• ““Corporate Responsibility” is a Corporate Responsibility” is a discipline for achieving thisdiscipline for achieving this
Non-financial Risk and Non-financial Risk and Sustainability….Sustainability….
• The identification, analysis, mitigation The identification, analysis, mitigation and transparent reporting of non-and transparent reporting of non-financial risks constitute the bedrock of financial risks constitute the bedrock of sustainabilitysustainability
• ““Corporate Responsibility” is a discipline Corporate Responsibility” is a discipline for achieving thisfor achieving this
• So, what are the typical/generic areas So, what are the typical/generic areas where most organisations will have non-where most organisations will have non-financial risk?financial risk?
Areas of non-financial risk Areas of non-financial risk embedded in stakeholder embedded in stakeholder groupsgroups
Areas of non-financial risk Areas of non-financial risk embedded in stakeholder embedded in stakeholder groupsgroups• PeoplePeople (e.g. the ability to attract and retain the (e.g. the ability to attract and retain the
best possible talent)best possible talent)
Areas of non-financial risk Areas of non-financial risk embedded in stakeholder embedded in stakeholder groupsgroups• PeoplePeople (e.g. the ability to attract and retain the (e.g. the ability to attract and retain the
best possible talent)best possible talent)• Market placeMarket place (e.g. governance, all interactions (e.g. governance, all interactions
with investors & other suppliers of capital, with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)customers, intermediaries, suppliers and NGOs)
Areas of non-financial risk Areas of non-financial risk embedded in stakeholder embedded in stakeholder groupsgroups• PeoplePeople (e.g. the ability to attract and retain the (e.g. the ability to attract and retain the
best possible talent)best possible talent)• Market placeMarket place (e.g. governance, all interactions (e.g. governance, all interactions
with investors & other suppliers of capital, with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)customers, intermediaries, suppliers and NGOs)
• Community Community (e.g. where employees and (e.g. where employees and customers live and work)customers live and work)
Areas of non-financial risk Areas of non-financial risk embedded in stakeholder embedded in stakeholder groupsgroups• PeoplePeople (e.g. the ability to attract and retain the (e.g. the ability to attract and retain the
best possible talent)best possible talent)• Market placeMarket place (e.g. governance, all interactions (e.g. governance, all interactions
with investors & other suppliers of capital, with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)customers, intermediaries, suppliers and NGOs)
• Community Community (e.g. where employees and (e.g. where employees and customers live and work)customers live and work)
• Environment Environment (e.g. an expectation by (e.g. an expectation by employees, customers and broader society)employees, customers and broader society)
Areas of non-financial risk Areas of non-financial risk embedded in stakeholder embedded in stakeholder groupsgroups• PeoplePeople (e.g. the ability to attract and retain the (e.g. the ability to attract and retain the
best possible talent)best possible talent)• Market placeMarket place (e.g. governance, all interactions (e.g. governance, all interactions
with investors & other suppliers of capital, with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)customers, intermediaries, suppliers and NGOs)
• Community Community (e.g. where employees and (e.g. where employees and customers live and work)customers live and work)
• Environment Environment (e.g. an expectation by (e.g. an expectation by employees, customers and broader society)employees, customers and broader society)
• Stakeholders (e.g. maintaining their trust, loyalty and commitment)
Areas of non-financial risk Areas of non-financial risk embedded in stakeholder embedded in stakeholder groupsgroups• PeoplePeople (e.g. the ability to attract and retain the (e.g. the ability to attract and retain the
best possible talent)best possible talent)• Market placeMarket place (e.g. governance, all interactions (e.g. governance, all interactions
with investors & other suppliers of capital, with investors & other suppliers of capital, customers, intermediaries, suppliers and NGOs)customers, intermediaries, suppliers and NGOs)
• Community Community (e.g. where employees and (e.g. where employees and customers live and work)customers live and work)
• Environment Environment (e.g. an expectation by (e.g. an expectation by employees, customers and broader society)employees, customers and broader society)
• Stakeholders (e.g. maintaining their trust, loyalty and commitment)
ALL ARE CONSTITUENTS OF REPUTATION……..
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
•Identifying Stakeholders
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
•Identifying Stakeholders
•Engaging stakeholders around their core business values
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
•Identifying Stakeholders
•Engaging stakeholders around their core business values
•Illustrating where their values align with yours
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
•Identifying Stakeholders
•Engaging stakeholders around their core business values
•Illustrating where their values align with yours
•Identifying key risks which might be addressed and suitable programmes
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
•Identifying their perceptions of key risks and how they align with your reality
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
•Identifying their perceptions of key risks and how they align with your reality
•Developing programmes and actions which mitigate these risks
How engagement with How engagement with Stakeholders can address key non-Stakeholders can address key non-financial risksfinancial risks
•Identifying their perceptions of key risks and how they align with your reality
•Developing programmes and actions which mitigate these risks
•Communicate the good and the bad honestly and transparently
So what are Corporate So what are Corporate Values?Values?Why are they important?Why are they important?
ValueValue
ValueValue
• A principle, standard, or quality considered worthwhile or desirable
ValueValue
• A principle, standard, or quality considered worthwhile or desirable
• Important and enduring beliefs
ValueValue
• A principle, standard, or quality considered worthwhile or desirable
• Important and enduring belief
• A system which forms the foundation on A system which forms the foundation on which we perform work and conduct which we perform work and conduct ourselvesourselves
ValueValue
• A principle, standard, or quality considered worthwhile or desirable
• Important and enduring belief
• A system which forms the foundation on A system which forms the foundation on which we perform work and conduct which we perform work and conduct ourselvesourselves
• A positive element of behaviour concerning a person, institution, company, group etc.
CORE VALUES ARE NOT:CORE VALUES ARE NOT:
• Operating practicesOperating practices
• Business strategiesBusiness strategies
• Cultural norms Cultural norms
• CompetenciesCompetencies
• Changed in response to market/ Changed in response to market/ administration changes administration changes
To be effective, Values must To be effective, Values must therefore be central to therefore be central to value and…value and…
To be effective, Values must To be effective, Values must therefore be central to therefore be central to value and…value and…• Reflect the nature and scale of the Reflect the nature and scale of the
business and be integrated into the business and be integrated into the culture-define who you are and culture-define who you are and expectations of behaviourexpectations of behaviour
To be effective, Values must To be effective, Values must therefore be central to therefore be central to value and…value and…• Reflect the nature and scale of the Reflect the nature and scale of the
business and be integrated into the business and be integrated into the culture-define who you are and culture-define who you are and expectations of behaviourexpectations of behaviour
• Relate to both corporate Relate to both corporate andand individual individual behaviour behaviour
To be effective, Values must To be effective, Values must therefore be central to therefore be central to value and…value and…• Reflect the nature and scale of the Reflect the nature and scale of the
business and be integrated into the business and be integrated into the culture-define who you are and culture-define who you are and expectations of behaviourexpectations of behaviour
• Relate to both corporate Relate to both corporate andand individual individual behaviour behaviour
• Define what others feel about the business Define what others feel about the business (image, brand etc. Perception “v” Reality(image, brand etc. Perception “v” Reality
To be effective, Values must To be effective, Values must therefore be central to therefore be central to value and…value and…• Reflect the nature and scale of the business Reflect the nature and scale of the business
and be integrated into the culture-define who and be integrated into the culture-define who you are and expectations of behaviouryou are and expectations of behaviour
• Relate to both corporate Relate to both corporate andand individual individual behaviour behaviour
• Define what others feel about the business Define what others feel about the business (image, brand etc. Perception “v” Reality(image, brand etc. Perception “v” Reality
• Drive the business…become “Value Drivers”Drive the business…become “Value Drivers”
To be effective, Values must To be effective, Values must therefore be central to therefore be central to value and…value and…• Reflect the nature and scale of the business and Reflect the nature and scale of the business and
be integrated into the culture-define who you are be integrated into the culture-define who you are and expectations of behaviourand expectations of behaviour
• Relate to both corporate Relate to both corporate andand individual individual behaviour behaviour
• Define what others feel about the business Define what others feel about the business (image, brand etc. Perception “v” Reality(image, brand etc. Perception “v” Reality
• Drive the business…become “Value Drivers”Drive the business…become “Value Drivers”
• Be able to be performance measured-exhibit a Be able to be performance measured-exhibit a quantifiable returnquantifiable return
AccentureAccenture
• Stewardship
• Best People
• Client Value Creation
• One Global Network
• Respect for the Individual
• Integrity
Reckett BenckiserReckett Benckiser
• Achievement Achievement
• EntrepreneurshipEntrepreneurship
• Team SpiritTeam Spirit
• OwnershipOwnership
United States AirforceUnited States Airforce
• Integrity First First
•Service Before Self Before Self
•Excellence in All We Do in All We Do
The Tiger Group “Model for The Tiger Group “Model for Values”Values”
•Trust
• Interdependence
•Genuineness
•Empathy
•Risk
•Success
Example “values” Example “values”
ambition, competency, individuality, equality, integrity, service, responsibility, accuracy, respect, dedication, diversity, improvement, enjoyment/fun, loyalty, credibility, honesty, innovativeness, teamwork, excellence, accountability, empowerment, quality, efficiency, dignity, collaboration, stewardship, empathy, accomplishment, courage, wisdom, independence, security, challenge, influence, learning, compassion, friendliness, discipline/order, generosity, persistence, optimism, dependability, flexibility.
BUT these are just worthy BUT these are just worthy wordswords
What is missing?What is missing?
Converting Values into Converting Values into Value DriversValue Drivers
Q) Q) How can a measurable commitment How can a measurable commitment to a set of values underpin a business to a set of values underpin a business proposition, add to sustainability and proposition, add to sustainability and reputation?reputation?
Converting Values into Converting Values into Value DriversValue Drivers
Q) Q) How can a measurable commitment to a How can a measurable commitment to a set of values underpin a business set of values underpin a business proposition, add to sustainability and proposition, add to sustainability and reputation?reputation?
A)A)Aligning your values with those of Aligning your values with those of stakeholders builds and sustains their truststakeholders builds and sustains their trust--TRUSTTRUST is the bedrock of is the bedrock of REPUTATIONREPUTATION
The “Value” ApproachThe “Value” ApproachTo be effective and sustainable, a value proposition To be effective and sustainable, a value proposition should.. should..
The “Value” ApproachThe “Value” ApproachTo be effective and sustainable, a value proposition To be effective and sustainable, a value proposition should.. should..
• demonstrably add and quantify its value to the business demonstrably add and quantify its value to the business proposition and key stakeholders;proposition and key stakeholders;
The “Value” ApproachThe “Value” ApproachTo be effective and sustainable, a value proposition To be effective and sustainable, a value proposition should.. should..
• demonstrably add and quantify its value to the business demonstrably add and quantify its value to the business proposition and key stakeholders;proposition and key stakeholders;
• represent an investment from which there is a reasonable represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;improved uptake of customers, enhanced share price etc.;
The “Value” ApproachThe “Value” ApproachTo be effective and sustainable, a value proposition To be effective and sustainable, a value proposition should.. should..
• demonstrably add and quantify its value to the business demonstrably add and quantify its value to the business proposition and key stakeholders;proposition and key stakeholders;
• represent an investment from which there is a reasonable represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;improved uptake of customers, enhanced share price etc.;
• adapt to be relevant to the nature and scale of the adapt to be relevant to the nature and scale of the business; business;
The “Value” ApproachThe “Value” ApproachTo be effective and sustainable, a value proposition To be effective and sustainable, a value proposition should.. should..
• demonstrably add and quantify its value to the business demonstrably add and quantify its value to the business proposition and key stakeholders;proposition and key stakeholders;
• represent an investment from which there is a reasonable represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;improved uptake of customers, enhanced share price etc.;
• adapts to be relevant to the nature and scale of the adapts to be relevant to the nature and scale of the business; business;
• be integrated into the business strategy and processes;be integrated into the business strategy and processes;
The “Value” ApproachThe “Value” ApproachTo be effective and sustainable, a value proposition To be effective and sustainable, a value proposition should.. should..
• demonstrably add and quantify its value to the business demonstrably add and quantify its value to the business proposition and key stakeholders;proposition and key stakeholders;
• represent an investment from which there is a reasonable represent an investment from which there is a reasonable expectation of a quantifiable financial and/or non-financial expectation of a quantifiable financial and/or non-financial return; for example, a reduction in employee turnover, an return; for example, a reduction in employee turnover, an improved uptake of customers, enhanced share price etc.;improved uptake of customers, enhanced share price etc.;
• adapts to be relevant to the nature and scale of the adapts to be relevant to the nature and scale of the business; business;
• be integrated into the business strategy and processes;be integrated into the business strategy and processes;
• be research and risk basedbe research and risk based
Re-cap….Re-cap….
Re-cap….Re-cap….
• Identification of material non-Identification of material non-financial risks is key to effective financial risks is key to effective reputation managementreputation management
Re-cap….Re-cap….
• Identification of material non-Identification of material non-financial risks is key to effective financial risks is key to effective reputation managementreputation management
• The Corporate Responsibility The Corporate Responsibility discipline underpins any discipline underpins any sustainability propositionsustainability proposition
Re-cap….Re-cap….
• Identification of material non-Identification of material non-financial risks is key to effective financial risks is key to effective reputation managementreputation management
• The Corporate Responsibility The Corporate Responsibility discipline underpins any discipline underpins any sustainability propositionsustainability proposition
• Stakeholder engagement in the Stakeholder engagement in the process is essentialprocess is essential
Re-cap….Re-cap….
• Identification of material non-financial Identification of material non-financial risks is key to effective reputation risks is key to effective reputation managementmanagement
• The Corporate Responsibility The Corporate Responsibility discipline underpins any sustainability discipline underpins any sustainability propositionproposition
• Stakeholder engagement in the Stakeholder engagement in the process is essentialprocess is essential
• Prove it!Prove it!
Share price performance
Share price performance
•A study of “stakeholder superstars” (including Coca Cola, Proctor and Gamble and Johnson & Johnson) showed that companies who take into account stakeholders’ opinions outperformed the S&P 500 by more than twice the average over the past 15 years
Share price performance
•A study of “stakeholder superstars” (including Coca Cola, Proctor and Gamble and Johnson & Johnson) showed that companies who take into account stakeholders’ opinions outperformed the S&P 500 by more than twice the average over the past 15 years
•This result was confirmed by Harvard University, who found stakeholder balanced companies showed four times the growth rate and eight times the employment growth when compared to companies that are shareholder-only focused (Harvard University, 2000)
FTSE4GOOD vs FTSE4GOOD vs FTSEFTSE
DJSI EURO STOXX [white line] VS. DJ EURO STOXX DJSI EURO STOXX [white line] VS. DJ EURO STOXX (2001-2006)(2001-2006)
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample• Develop relevant questionsDevelop relevant questions
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample• Develop relevant questionsDevelop relevant questions• Ask the questionsAsk the questions
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample• Develop relevant questionsDevelop relevant questions• Ask the questionsAsk the questions• State how they have informed the strategy State how they have informed the strategy
and programmesand programmes
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample• Develop relevant questionsDevelop relevant questions• Ask the questionsAsk the questions• State how they have informed the strategy State how they have informed the strategy
and programmesand programmes• Illustrate where perceptions are not Illustrate where perceptions are not
alignedaligned
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample• Develop relevant questionsDevelop relevant questions• Ask the questionsAsk the questions• State how they have informed the strategy State how they have informed the strategy
and programmesand programmes• Illustrate where perceptions are not Illustrate where perceptions are not
alignedaligned
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample• Develop relevant questionsDevelop relevant questions• Ask the questionsAsk the questions• State how they have informed the strategy State how they have informed the strategy
and programmesand programmes• Illustrate where perceptions are not Illustrate where perceptions are not
alignedaligned• Involve relevant internal functions Involve relevant internal functions (e.g. (e.g.
HR, IR, Comms, Sales, Marketing, Risk, HR, IR, Comms, Sales, Marketing, Risk, Compliance etc.)Compliance etc.)
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?• Identify key stakeholder groupsIdentify key stakeholder groups• Select representative sampleSelect representative sample• Develop relevant questionsDevelop relevant questions• Ask the questionsAsk the questions• State how they have informed the strategy State how they have informed the strategy
and programmesand programmes• Illustrate where perceptions are not alignedIllustrate where perceptions are not aligned• Involve relevant internal functions Involve relevant internal functions (e.g. HR, (e.g. HR,
IR, Comms, Sales, Marketing, Risk, IR, Comms, Sales, Marketing, Risk, Compliance etc.)Compliance etc.)
• Transparently report the findingsTransparently report the findings
So, how do you make your So, how do you make your reality triumph over reality triumph over bulls**t?bulls**t?
A real life example of the A real life example of the strategic impact and influence strategic impact and influence of this approach….of this approach….
126
Change in current reputationsChange in current reputations
Conclusions
• External stakeholders see issues with financial services as being malpractice and they don't understand hedge funds.
• Group is perceived as being better off than others but still significantly affected by issues such as Madoff
En
han
ced
Sta
yed
th
e S
ame
Dec
reas
es /
Dam
aged
Financial services sector
Hedge fund related business
Our Group in particular
Investors
Internal
External - general
Intermediaries
127
Change in current reputations – Internal Change in current reputations – Internal stakeholdersstakeholders
En
han
ced
Sta
yed
th
e S
ame
Dec
reas
es /
Dam
aged
Financial services sector
Hedge fund related business
Our Group in particular
Graduates
Senior management
Directors
Conclusions
• Internal stakeholders see the villains as being banks, politicians and media, and they feel hedge funds have unnecessarily taken the blame
128
Assessment of how stakeholders' attitudes to CR Assessment of how stakeholders' attitudes to CR changed over the past year – Internal Viewschanged over the past year – Internal Views
Conclusions
• CR is seen to many as of continuing importance
• CR also requires, however, integration and links to the business strategy
100%
Co
nsi
der
ed
Ap
pro
pri
ate
0%
Investors regard it as even more important, because of need for sustainability
Investors are regarding the efficacy of CR activities as a key indicator of trust
External stakeholders have not changed attitudes towards CR in the past year
CR has become less relevant to companies, because of commercial issues
Graduates
Senior management
Directors
129
What CR activites are significant to external What CR activites are significant to external stakeholders? - People – Internal viewsstakeholders? - People – Internal views
Hig
h
Lo
w
Employees performance appraisals
Employee satisfaction surveys
Effective 'top down' communication
Improvements in our health and safety management
Graduates
Senior management
Directors
130
What CR activities are significant to external What CR activities are significant to external stakeholders? -Marketplacestakeholders? -Marketplace
Conclusions
• Shareholders focus on hard business activities to a greater extent than investors
• Handling customers is not regarded as high priority by external people but supply chain is a priority for them.
Hig
h
Lo
w
Quantifying /communicating our compliance performance
Communicating our risk management processes
Developing products with customers/ intermediaries
Investors
Internal
External - general
Intermediaries
131
What CR activities are significant to external What CR activities are significant to external stakeholders? - Community – Internal viewsstakeholders? - Community – Internal views
Conclusions
• Directors see community as important (but not a priority)
• Graduates are very positive about the community
Hig
h
Lo
w
Encouraging more employee community volunteering
Integrating volunteering into management training and development
Continuing as a major not-for-profit and charity donor
Graduates
Senior management
Directors
132
Based on current business needs and risks, what are Based on current business needs and risks, what are priorities for new initiatives? - 1 – internal viewspriorities for new initiatives? - 1 – internal views
Hig
h
Lo
w
Strategic reputation management
Evidencing sustainability / survivability
Using CR to develop added value sales and market differentiated propositions
Suppliers
Health and safety
Employee attraction, retention and development
Graduates
Senior management
Directors
133
Based on current business needs and risks, what are Based on current business needs and risks, what are priorities for new initiatives? - 2 – Internal viewspriorities for new initiatives? - 2 – Internal views
Hig
h
Lo
w
Employee communications and consultations
Environmental – carbon management
Environmental - general
Community investment
Employee volunteering
Graduates
Senior management
Directors
What does this illustrate?What does this illustrate?
What does this illustrate?What does this illustrate?
• Board thinking out of line with Senior Board thinking out of line with Senior Management and of more concern, shareholdersManagement and of more concern, shareholders
What does this illustrate?What does this illustrate?
• Board thinking out of line with Senior Board thinking out of line with Senior Management and of more concern, shareholdersManagement and of more concern, shareholders
• Areas where communications must be Areas where communications must be enhanced/improvedenhanced/improved
What does this illustrate?What does this illustrate?
• Board thinking out of line with Senior Board thinking out of line with Senior Management and of more concern, shareholdersManagement and of more concern, shareholders
• Areas where communications must be Areas where communications must be enhanced/improvedenhanced/improved
• Makes the Board publicly accountable to Makes the Board publicly accountable to stakeholders (a healthy thing)stakeholders (a healthy thing)
What does this illustrate?What does this illustrate?
• Board thinking out of line with Senior Board thinking out of line with Senior Management and of more concern, shareholdersManagement and of more concern, shareholders
• Areas where communications must be Areas where communications must be enhanced/improvedenhanced/improved
• Makes the Board publicly accountable to Makes the Board publicly accountable to stakeholders (a healthy thing)stakeholders (a healthy thing)
• Provides a strategic predication for Corporate Provides a strategic predication for Corporate ResponsibilityResponsibility
What does this illustrate?What does this illustrate?
• Board thinking out of line with Senior Board thinking out of line with Senior Management and of more concern, shareholdersManagement and of more concern, shareholders
• Areas where communications must be Areas where communications must be enhanced/improvedenhanced/improved
• Makes the Board publicly accountable to Makes the Board publicly accountable to stakeholders (a healthy thing)stakeholders (a healthy thing)
• Provides a strategic predication for Corporate Provides a strategic predication for Corporate ResponsibilityResponsibility
• Justifies investment in softer areas (e.g. Justifies investment in softer areas (e.g. community & environment) as these are key community & environment) as these are key employer of choice brand differentiatorsemployer of choice brand differentiators
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme• Corporate Responsibility included in investor road showsCorporate Responsibility included in investor road shows
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme• Corporate Responsibility included in investor road showsCorporate Responsibility included in investor road shows• Dedicated and enhanced Corporate Responsibility section in Dedicated and enhanced Corporate Responsibility section in
Annual ReportAnnual Report
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme• Corporate Responsibility included in investor road showsCorporate Responsibility included in investor road shows• Dedicated and enhanced Corporate Responsibility section in Dedicated and enhanced Corporate Responsibility section in
Annual ReportAnnual Report• Significant increase in investment in Corporate Responsibility data Significant increase in investment in Corporate Responsibility data
capture systemcapture system
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme• Corporate Responsibility included in investor road showsCorporate Responsibility included in investor road shows• Dedicated and enhanced Corporate Responsibility section in Dedicated and enhanced Corporate Responsibility section in
Annual ReportAnnual Report• Significant increase in investment in Corporate Responsibility data Significant increase in investment in Corporate Responsibility data
capture systemcapture system• Creation of an enhanced and dedicated Corporate Responsibility Creation of an enhanced and dedicated Corporate Responsibility
websitewebsite
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme• Corporate Responsibility included in investor road showsCorporate Responsibility included in investor road shows• Dedicated and enhanced Corporate Responsibility section in Dedicated and enhanced Corporate Responsibility section in
Annual ReportAnnual Report• Significant increase in investment in Corporate Responsibility data Significant increase in investment in Corporate Responsibility data
capture systemcapture system• Creation of an enhanced and dedicated Corporate Responsibility Creation of an enhanced and dedicated Corporate Responsibility
websitewebsite• Retention of Group for a third year as only company of its type in Retention of Group for a third year as only company of its type in
the DJSI (top in key categories)the DJSI (top in key categories)
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health Investment increased in enhanced and globalised employee health and well being workshop programmes and well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme• Corporate Responsibility included in investor road showsCorporate Responsibility included in investor road shows• Dedicated and enhanced Corporate Responsibility section in Dedicated and enhanced Corporate Responsibility section in
Annual ReportAnnual Report• Significant increase in investment in Corporate Responsibility data Significant increase in investment in Corporate Responsibility data
capture systemcapture system• Creation of an enhanced and dedicated Corporate Responsibility Creation of an enhanced and dedicated Corporate Responsibility
websitewebsite• Retention of Group for a third year as only company of its type in Retention of Group for a third year as only company of its type in
the DJSI (top in key categories)the DJSI (top in key categories)• Significant investment by new “sustainability” shareholdersSignificant investment by new “sustainability” shareholders
What was the outcome of this for this Group What was the outcome of this for this Group at a time of severe cuts to cost base and a at a time of severe cuts to cost base and a 15% global headcount reduction?15% global headcount reduction?
• Investment in carbon footprint reduction, carbon neutrality and Investment in carbon footprint reduction, carbon neutrality and employee climate engagement was maintainedemployee climate engagement was maintained
• Investment increased in enhanced and globalised employee health and Investment increased in enhanced and globalised employee health and well being workshop programmes well being workshop programmes
• Significant investment in new employee volunteering programmeSignificant investment in new employee volunteering programme• Corporate Responsibility included in investor road showsCorporate Responsibility included in investor road shows• Dedicated and enhanced Corporate Responsibility section in Annual Dedicated and enhanced Corporate Responsibility section in Annual
ReportReport• Significant increase in investment in Corporate Responsibility data Significant increase in investment in Corporate Responsibility data
capture systemcapture system• Creation of an enhanced and dedicated Corporate Responsibility Creation of an enhanced and dedicated Corporate Responsibility
websitewebsite• Retention of Group for a third year as only company of its type in the Retention of Group for a third year as only company of its type in the
DJSI (top in key categories)DJSI (top in key categories)• Significant investment by new “sustainability” shareholdersSignificant investment by new “sustainability” shareholders• Contributed to mitigating the damage to reputation.Contributed to mitigating the damage to reputation.
GoodwillMarket Value
Key Value Drivers (Adding Value)
How We Behave
Community
Our Environment
Our People
Market PlaceBrand
SUSTAINABILITY
Positive Reputation
Trust
Core Values
Responsible Business Behaviour
Integrated Corporate Responsibility– How it Integrated Corporate Responsibility– How it hangs togetherhangs together
THANK YOU ALL FOR THANK YOU ALL FOR LISTENINGLISTENINGRob Challis,Rob Challis,Tangent Synergy Ltd,Tangent Synergy Ltd,Tangent House,Tangent House,18, Ditton Road,18, Ditton Road,Surbiton,Surbiton,Surrey,Surrey,KT6 6QZKT6 6QZTel:- +44(0)20 8399 2069Tel:- +44(0)20 8399 2069Fax:- +44(0)20 8390 5990Fax:- +44(0)20 8390 5990Mobile:- +44 (0)7850 724153Mobile:- +44 (0)7850 724153Email:-Email:[email protected] Profile:- http://www.linkedin.com/myprofile?Linkedin Profile:- http://www.linkedin.com/myprofile?
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