SANTA CLARA WORKSHOP

Step 1: Identifying the TriggersStep 1: Identifying the Triggers

EXTERNAL

Shareholder Resolution Investor Pressure NGO Campaigns Media Exposure

Stock Exchange Listing

laws Government Call Competitor Action

INTERNAL

Employee Action Customer Boycott

New CEO/Chairman Customer demand Inspiration

NEGATIVE

POSITIVE

TRIGGERTRIGGER 1

TRIGGERS FROM TRIGGERS FROM STAKEHOLDERSSTAKEHOLDERS

• EmployeesEmployees• InvestorsInvestors• ConsumersConsumers• Business partners and suppliersBusiness partners and suppliers• Non-governmental organisations and Non-governmental organisations and

media campaignsmedia campaigns• Governmental, intergovernmental Governmental, intergovernmental

organisation and regulatory pressuresorganisation and regulatory pressures• Community and societyCommunity and society

• ‘‘one of the skills of leadership is how one of the skills of leadership is how quickly you can pick up on the weak quickly you can pick up on the weak signals’signals’

Step 2: ScopingStep 2: Scoping

What mattersWhat matters

SCOPING BY STAKEHOLDERS’ SCOPING BY STAKEHOLDERS’ CONCERNSCONCERNS

• EmployeesEmployees• InvestorsInvestors• ConsumersConsumers• Business partners and suppliersBusiness partners and suppliers• Non-governmental organisations and Non-governmental organisations and

media campaignsmedia campaigns• Governmental, intergovernmental Governmental, intergovernmental

organisation and regulatory pressuresorganisation and regulatory pressures• Community and societyCommunity and society

Step 3: Making the business caseStep 3: Making the business case

DRIVERS OF BUSINESSDRIVERS OF BUSINESS

• ReputationReputation

• InnovationInnovation

• Cost cuttingCost cutting

• Market growthMarket growth

• Relationships, alliances and the licence to Relationships, alliances and the licence to operateoperate

• Access to financial capitalAccess to financial capital

• Development of human capitalDevelopment of human capital

Step 4: Comitting to Step 4: Comitting to ActionAction

HPO

Technical Competence

Corporate Values & PrinciplesP

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HIGH PERFORMANCE HIGH PERFORMANCE ORGANISATIONORGANISATION

NEW REALITIES - NEW NEW REALITIES - NEW ACTIVISTSACTIVISTS

Business is recognised Business is recognised and challenged as a and challenged as a new player in social new player in social

development, setting development, setting standards and standards and

protecting human protecting human rightsrights

Companies are called upon to:

HUMAN RIGHTS • Support and respect the protection of internationally acknowledged human

rights in their area of influence; and• Not become accomplices in human rights violations and abuses.

LABOR RIGHTS • Defend the freedom to join unions and the effective right to collective

bargaining;• Eliminate all forms of forced or compulsory labor;• Strive for the complete abolishment of child labor; and• Eliminate discrimination in jobs and occupations.

ENVIRONMENT• Adopt a preventive approach to environmental challenges; • Develop initiatives to promote greater environmental responsibility; and• Encourage the development and dissemination of environment-friendly

technologies

CORRUPTION• Act against all forms of corruption, including extortion and bribery.

Global CompactGlobal Compact

Step 5: Integration & Step 5: Integration & Gathering ResourcesGathering Resources

7 key areas of change7 key areas of change

• Feedback identified Feedback identified 7 areas of change7 areas of change– Customer serviceCustomer service– Access to servicesAccess to services– EmploymentEmployment– PortrayalPortrayal– Web AccessWeb Access– Building AccessBuilding Access– TechnologyTechnology

ActionsActions

Step 6: Engaging Step 6: Engaging StakeholdersStakeholders

Critical success factorsCritical success factors

• Engage the key stakeholdersEngage the key stakeholders• Build trustBuild trust• Be flexibleBe flexible• Allow timeAllow time• Be openBe open• Be realisticBe realistic• Share the agendaShare the agenda• Create a common understandingCreate a common understanding• Field your very best peopleField your very best people• Be prepared for changeBe prepared for change

Partnership for CIRQUE DU MONDE

CIRQUE DU SOLEIL

Step 7: Measuring and Step 7: Measuring and ReportingReporting

Why Measure & ReportWhy Measure & Report• To benchmark performanceTo benchmark performance

• To answer criticismTo answer criticism

• To understand stakeholdersTo understand stakeholders

• To spot policy gapsTo spot policy gaps

• To demonstrate differenceTo demonstrate difference

• To satisfy regulationsTo satisfy regulations

• To earn endorsementsTo earn endorsements

• To meet contractual requirementsTo meet contractual requirements

CHARACTERISTICS OF CSO CHARACTERISTICS OF CSO COMPANIESCOMPANIES

1.1. Alignment and explicit articulation Alignment and explicit articulation of Purpose, Vision and Values of Purpose, Vision and Values

2.2. Leadership and Senior Management Leadership and Senior Management Team believes values Team believes values

3.3. continuously communicated continuously communicated

4.4. constantly reinforced through constantly reinforced through culture, processes and rewards culture, processes and rewards

CHARACTERISTICS OF CSO CHARACTERISTICS OF CSO COMPANIESCOMPANIES

• 5.scoping and prioritising risks 5.scoping and prioritising risks and opportunities and opportunities

• 6.decision-making process 6.decision-making process consistent with Purpose and consistent with Purpose and ValuesValues

• 7. effective stakeholder 7. effective stakeholder engagementengagement

CHARACTERISTICS OF CSO CHARACTERISTICS OF CSO COMPANIESCOMPANIES

• 8.ethical code governing relations with 8.ethical code governing relations with partners to determine fair share of risks partners to determine fair share of risks and rewardsand rewards

• 9.entrepreneurialism and creativity 9.entrepreneurialism and creativity which is stretched with an openness and which is stretched with an openness and curiosity for corporate social curiosity for corporate social opportunitiesopportunities

• 10. appropriate measurement and 10. appropriate measurement and reporting of company’s performance. reporting of company’s performance.