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Transform your business Deloitte Sustainability Consulting Central Europe

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Contents

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Introduction

Our selected services

Sustainability

Sustainability strategy

Non-financial and integrated reporting

Improving energy efficiency

Circular economy

Responsible sale

Ethics management system

Diversity management

Economics

Economic, social and environmental impact

Regulatory impact assessment

Communications

Information, dialogue, engagement

Change communication

Employer branding and internal communication

Reputation and crisis protection

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Non-financial and integrated

reporting

Corporate and crisis

communication

Employerbranding

and internalcommunication

Diversity

Energy efficiency

Ethics in a modern

organisation

Responsible sale

Circular economy

Regulatory impact

assessment

Changecommunication


COMMUNICATIONS

ECONOMICS

SUSTAINABILITY

Our selected services

Deloitte Sustainability Consulting Central Europe

We perform services in

territories in Central Europe

projects clients

experts19

200 100

40We have delivered

Our team is composed of

For

Deloitte Sustainability Consulting CE | Our selected services

Information, dialogue,

engagement

Company’s impact

Impact of social and

economic factors and global trends

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Get in touch with us!

Irena PicholaPartner, Sustainability Consulting Central Europe Leader

+48 502 184 [email protected]

Aleksandra Stanek-Kowalczyk


Rafał Rudzki



Deloitte Sustainability Consulting CE | Sustainability

0706

Diversity

Energy efficiency

Non-financial and integrated

reporting

Ethics in a modern organisation

Responsible sale

Circular economy


Sustainability


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The objective of our work is to determine:

Where do you, as a company, want to be in 3-5 years?

How do you intend to minimise the risks associated with your impact on the surrounding environment?

How do you wish to build long-lasting relationships with consumers, employees and business partners?

How can sustainability help achieve competitive advantage?

Deloitte’s team has the necessary tools, methodologies, experience and expertise to design an effective sustainability strategy to achieve the best results. It is important to identify what

has had a positive impact and has created shared value for the company and its stakeholders and what can negatively impact your company and increase business risks.

The aim of a responsible business strategy is to show the company a growth path that will minimise the organisation’s negative impact on the surrounding environment and present opportunities for development.

Incorporation of the idea of sustainable development offers an opportunity to create shared value through improved brand trust and reputation among consumers, employees and business partners and effective impact management.

Why CSR strategy is important for a company? Every company has an impact on the environment. It uses environmental resources, hires employees and pays salaries, encourages customers to use its products and services and financial institutions to invest in its development.


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What are the questions that we will answer during the process?

How will we do it?

What experience do we have in responsible business?

Who are our key stakeholders? What are their expectations?

What does our competition do?

How do we wish to make use of sustainable development to build a competitive advantage? How can sustainable development help build brand value and reputation, attract employees and manage the supply chain?

Support with communication during the project

Stage 1: Analysis Define experience and expectations1.1 Ambitions1.2 Experience1.3 Internal expectations1.4 External expectations

Stage 2: Strategy designEstablish a vision and objectives 2.1 Vision development2.2 Strategy design

Stage 3: Strategy definitionForge a path3.1 Document production 3.2 Consultation and strategy approval

How do we wish to minimise our negative impact on the environment?

What opportunities do we wish to seize to create value?

Where do we want to be as a company in 5 years?

What objectives do we wish to achieve by then? How will they affect the development of our business and creation of competitive advantage?

What to do to achieve our objectives?

How will we measure whether we have reached our goals?

Who will be involved in the implementation of the strategy and what will be their role?

What will be the strategy timetable?

Development of a responsible business strategy

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Deloitte’s proprietary methodologies and tools

Stage 1: AnalysisDefine experience and expectations

Stage 2: Strategy designEstablish a vision and objectives

Engaged Stakeholder Map® (map of crucial stakeholders in the process) − a methodology intended for the development of a map of key stakeholders (both internal and external) necessary for an effective delivery of the process at the start of cooperation with the organisation. The map is a reference point in the planning of the team and individual roles in the project.

Responsible Management Compass® - an analysis tool using data concerning various areas of the organisation’s operations (such as: HR, purchasing, sales, marketing).

Sustainable Value Creation Matrix® – a methodology used in presentation of recommendations for further actions in the area of responsible business based on an analysis of previous actions. Recommendations are presented in a three-tier scale.

Engagement for Growth workshop® - a proprietary workshop used for the purposes of development of a responsible business strategy in cooperation with and with the help of selected representatives of the company. The workshop assumes active engagement of the company’s representatives.

Sustainable Enterprise Value Map® − a tool intended for systematising the sustainable development actions taken by the company. The value map presents how the company generates economic/social added value and which areas of the company’s operations need to be improved to meet the sustainable development and responsible business requirements.

Expected results

More effectiveuse of natural resources

Innovative approach to production processes

Improved effectiveness of employer branding

Greater effectivenessof the supply chain

Greater customer loyalty and trust in the brand

Building competitive advantage and creating value

Benefits derived from implementing the strategy in the value chain and cooperation with the stakeholders


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Reporting on sustainability and corporate social responsibility (CSR) means the disclosure of non-financial data. Thesemay include, among others, customer relationships, product liability, ethics and anti-corruption, employees, the environment, dialogue with stakeholders and social engagement.

According to the guidelines of the Global Reporting Initiative(GRI), the most internationally recognized non-financial reporting guidelines, the report should present management’s

links between CSR activitiesand business strategy, achieved results, and plans for the next reporting cycle.

What is a non-financial report?

As the only company in the market, we offer clients support throughout the entire life cycle of the reporting process, from defining the basic assumptions to the graphics and external communications

Non-financial and integrated reportingReal value, real cost, real profit.


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“A natural step in the development of the organization” - a summary and organization of activities that often have been implemented for years.

„If you do not have goals and you do not measure their implementation, you cannot manage them” - getting a full management picture, monitoring performance, strengthening the accuracy of business decisions.

„Bet on transparency” strengthening the reputation and trust from customers and other key stakeholders.

„The way leaders do it” - strengthening the market position, reaping the benefits of branding.

„Regulatory requirement” - according to the EU Directive 2014/95/EU starting from 1 January 2017, the new requirements will cover at least 6000 companies within the European Union.

Why report non-financial information?

Benefits Did you know?Practical tips

of global leaders in non-financial reporting confirmed that the reporting of nonfinancial data in conjunction with thefinancial data improves decision-makingprocesses.

of respondents confirmed that the reporting process which integrates nonfinancialand financial data contributes to the business success of the organization.

of respondents have seen an improvement in the quality of reported data over the years.

of a company is now comprised of intangible assets. This means the importance of non-financial reporting is increasing.

The new regulation will apply to large public interest entities or groups of companies whose parent company is a unit of public interest, with an averageannual employment of over 500 people, and with one of the two financial criteria: either a balance sheet total of over 20 million EUR or net revenues of over 40 million EUR.

The 2017 report must be in accordance with the guidelines of the new Directive. It is a valuable experience to try nonfinancial reporting as soon as 2016 in order to implement the data collection process, assess any gaps, and to have enough time to implement good practices in relevant areas of CSR which can be presented

in a report issued in 2018.Non-financial data should be included in a separate section of the report on the activities of the company (statement on non-financial information) or may be presented in a separate report: GRI report, integrated report, impact report, etc.

Preparation of the first non-financial reporttakes about 4-5 months.

The average non-financial reporting process in accordance with the guidelines of the GRI involves about 20 people in the organization. On average, approx. 60-80 indicators are collected.

How to start? Dialogueand determining

the scope

Datacollection

Contentcreation

Verification Graphicsand

visualizations

Communication

Source: Ocean Tomo; Components of S&P 500 Market Value, 2015, “Realising the benefits. The impact of integrated reporting”, Black Sun, 2014.

Sources: Directive 2014/95/EU of the European Parliament and of the Council / Global Reporting. up to 6 weeks 3 weeks 5 weeks 2 weeks up to 6 weeks Based on needs

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What is an integrated report?

Trend:Simplification and standardization of the organization’s reporting processes under a common umbrella.

Annual report (marketing report)

Management board report on the activities of the Company

Financial statements

Environmental report

Non-financial report (CSR)

INTEGRATED REPORT

Rate your readiness. Think of how to prepare. Inspire yourself!Do you realize what benefits can be drawn from integrated reporting? Are you aware of the risks involved if you fail to address this issue now?

Can you assess the extent to which your organization is ready for integrated reporting?

Can you ensure the management board’s buy-in for the change of the reporting methods?

Do you know and understand the requirements laid down in IIRC integrated reporting guidelines?

If you have already disclosed non-financial data as an addition to the annual report or as a separate CSR report, also based on the Global Reporting Initiative (GRI) methodology, do you understand how it differs from integrated reporting?Have you put together a team for the needs of integrated reporting? Does the reporting team include the representatives of key sustainability areas? Does the CSR reporting team include the representatives of the finance, strategy, controlling, investor relations and production lines? Do you know whom you need to invite to cooperate and how to go about it?

Make the first move, plan further actions! Can you assess which sustainability and CSR issues are crucial for your organization?

Do you have a risk management system, with social and environmental risks embedded, in place?

Can you incorporate sustainability into the business strategy of your organization?

Can you measure your impact and report how your organization creates value taking account of, inter alia, the social and environmental capitals?

Do you know who your stakeholders are? Can you engage in a dialogue with them to define their expectations linked with the strategy and report?

Have you formulated the KPIs for non-financial areas? Do you have a system for gathering non-financial data which is adequate to meet the integral reporting requirements?

Are you aware what new processes need to be implemented now in your organization to be able to produce integrated reports in the future?

The road to an integrated report

According to IIRC*, integrated reporting is a process:

• that relies on integration of the sustainability issues which are crucial from the perspective of the organization and the specifics of the industry into the organization’s business strategy

• that produces a periodical integrated report showing - against the backdrop of the external environment - how the organization’s strategy, corporate governance and performance help create values in the short, medium and long term.

IIRC has introduced a categorization of capitals which should be adapted by organizations that develop integrated business model and integrated thinking.1. Financial capital2. Manufactured capital3. Intellectual capital4. Human capital5. Social and relationship

capital6. Natural capital

*International Integrated Reporting Council (IIRC), koalicja przedstawicieli sektora publicznego i prywatnego na rzecz rozwoju metodyki raportowania pozafinansowego XXI wieku. Source: “Consultation draft of the international <IR> frame-work”, International Integrated Reporting Council, kwiecień 2013.


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Comprehensive approach to improving energy efficiencyHow to minimise the negative environmental impact?

EU countries shall ensure full implementation of the Energy Efficiency Directive No. 2012/27/EU which requires the EU member states to reach a certain energy efficiency target by the end of 2020 and set up an energy efficiency obligation scheme. Reducing final energy consumption is applicable at all stages of the energy chain from its production to its final consumption.

Among various specific measures established by national governments many are binding for the companies and consist for example on:

• meeting energy saving targets by energy distributors;

• retail energy sales companies;

• conducting an energy audit in large companies and promoting the implementation of energy management systems.

Energy efficiency requirements


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For energy companies, end users and businesses:

Energy efficiency audits and securing energy efficiency certificates for delivered energy efficiency projects.

Development and implementation of a marketing and communication strategy via traditional and digital channels to support the company’s energy efficiency activities.

Definition and design of possible cooperation models for trading and heating companies and end users to expand the customer portfolio and meet the energy efficiency obligations.

Delivery of energy efficiency audits obligatory for large businesses.

Design and implementation of a legal and organisational structure to enable cooperation with end users as regards energy efficiency improvement projects.

Optimisation of costs related to the new obligations through implementation of a systems approach to identification of energy efficiency projects in the form of energy management system that complies with ISO 50001.

Support for businesses to secure financing of energyefficiency projects.

Support in the fullfilment of energy efficiency requirements

To satisfy the new obligations a business must incur certain costs.

Deloitte offers a range of advisory services to ensure that the energy efficiency requirements are met and related costs are reduced and optimised.


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STAGE IEnergy review and establishment of an energy policy

• Site visit • Review of the procedures in place • and energy use documentation • Energy review • Presentation of review results to the energy team

• Establishment of energy baseline • and energy performance indicators • Establishment of energy policy and objectives, tasks and action plans

STAGE IIImprovement

• Executives and staff training in ISO 50001 and energy efficiency to help them better identify potential projects

• Internal auditors training • Launch of internal audit process planning

STAGE IIIDevelopment of EnMS documentation required by the act

• EnMS design • Development of procedures and forms • Adjustment of procurement and design procedures to the Standard’s requirements

• Identification of training needs • In addition: Analysis and identification of the investment in terms of energy efficiency and ecological effect that may win an energy efficiency certificate

STAGE IVInternal audits and certification

• Planning and execution of internal audits • Consultation during the works on an internal audit report with a list of suggested corrective and preventive actions

Support in system certification

• Professional support during the certification process

• Certified EnMS • Possible periodic presentation of the results of energy review to the Energy Regulatory Office

• Educated staff • Planning investments considering energy efficiency

• Better identification of energy efficiency projects

• Review results • Developed policy • Preliminary identification of possible savings resulting from improved energy efficiency

• Greater awareness and knowledge among staff as regards the ability to plan and carry out projects aimed at improving energy efficiency

• Complete EnMS • Simplified and structured delivery of compulsory information to the Energy Regulatory Office about potential energy savings in the company.

• Development of investment plans factoring in the energy efficiency criteria and enabling execution of energy efficiency projects

Deloitte’s support

Effects

Proposed optimal solution Comprehensive energy management


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The circular economy presents a development strategy that allows economic growth whileoptimizing the use of resources, deeply transformed patterns ofproduction and consumption chains, and designs for new industrial systems.

This strategy provides for a transition from a linear model based on production - consumption - disposal to a circular model, in which the waste, if waste is produced, becomes raw materials. In this embodiment, the circular economy through appropriate supply chain management eliminates the concept of the end of product life.

The circular economy hasthe following features:

• frees economic growth from the consumption of scarce resources;

• enhances natural capital by separating biological materials from plastics, and creating opportunities for the regeneration of the ecosystem;

• optimizes the use of resources by reasonable design and maintenance of materials in circulation;

• developing innovation and stimulating the development of new technologies;

• increases system performance by identifying and removing negative externalities (e.g. emissions).

What is a circular economy?

Circular economyHow to minimise your negative environmental impact?


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Linear economy

Take, use, dispose

Single use of products, components, materials, and energy

Products become obsolete, although they still are usable

Reduce, re-use, recycle

Endless flow of raw materials

Extended product life cycle due to the possibility of its reconstruction or deconstruction into elements

Circular economy

The purpose of these regulations is the return of our continent to a path of economic growth through the intelligent use of natural resources and recycled materials,

investment in research and newtechnologies, as well as greaterinvolvement of citizens, which is to bring sustainable development and create social and economic value.

The net savings whichcould be brought bythe actions of Europeancompanies towardsa circular economy

In terms of the share ofannual turnover in thesecompanies, this would be:

Is how much CO2 emissions can be reduced through circular economy solutions

Is the amount of decreasedemissions of greenhousegases by shifting fromrecycling to refurbishing lightcommercial vehicles

The benefits from the implementation of circular economyIn response to the challenges facing modern societies and economies in December 2015, the European Commission (EC) published a package of legislation on a circular economy (Circular Economy Package).

8%2-4%

m tons

600bn EUR

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Are your products are designed with low unit costs or for durability?

Are your products designed to be a product of service, to be returned after use, are the products designed for disassembly or repair?

Are your products / servicesdesigned for sharing betweenusers?

Do you think responsibly about using resources and materials?

Do you use recycled materials?Does your company minimize the amount of waste generated?

Have you ever taken intoaccount the changing the design of a product for the benefit of the company and the environment?

How do you get started?

• What is the first step of a company that has never had to deal with a circular economy?

• Deloitte suggests a number of steps that a company can undertake in order to Begin the journey of working within a circular economy – or develop the efforts even further.

Here are a few simple questions to convince you:

INSPIRE

Dedicated presentations, discussions, dialogue sessions, and innovative workshops, are a good starting point to identify the needs of the company.

DESIGN

Creating a new business model in line with the circular economy.

ANALYZE

Assess the possibility of implementing changes that will show measurable economic and environmental effects in future business strategies.

IMPLEMENT & ENGAGE

Strategy implementation, building customer’s engagement.

Is the circular economy model right for your business?

The circular economy Challenges and opportunities for companies

Building customer loyalty and trust through socially responsible saleTrust. Opportunity. Profit.


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Socially responsible sale and fair play activities pave the way for customer trust and loyalty

Service personalization and fair play are the most important and hidden opportunities for Polish banks.

Socially responsible sale and fair playis an approach to sale and long-term customer relations that relies on the following assumptions: • simple processes, procedures and products;

• transparent and complete communication and marketing;

• educational activities; • continuous dialogue with the customer.

They make it possible to: • build loyalty and trust of customers who consciously use the products they need;

• achieve a competitive edge based on customer engagement and dialogue that allows the organization to effectively respond to their needs;

• limit the potential costs of misselling, complaints or penalties imposed by various institutions and organizations, e.g. consumer associations

Deloitte Report: Setting a new course. The customer experience in relations with banks in Poland, May 2012


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TRUST How can we help?

60% of survey respondents believe that not all banks deserve the same level of trust.TNS Polska for ZBP, April 2014

THINK

Important questions: • Do our sales processes, including the employee compensation system, foster the sales of services that are tailored to the customer’s needs?

• Does lack of sufficient knowledge and understanding of the product on the part of the customer generate additional costs? How high are these costs?

• Do our customers trust us? Why? Do our sale/ communication/ marketing activities contribute to building trust of our customers?

How can we help? • Analysis of the documents and procedures in place with reference to the best practices and international guidelines;

• Review of internal processes; • Analysis of the historical results/ ratios in designated areas and/ or additional examination of customers;

• Review of the content relating to the organization’s operations and sales in social media.

How can we help? Preparation of a report that will: • collate and structure the conclusions based on our analysis;

• indicate strengths and weaknesses;

• present key conclusions and recommendations of further steps.

How can we help? • Design of solutions and measurements;

• Support in the process of implementing solutions;

• Recommendations on the methods of control, monitoring and implementation of remedy actions.

How can we help? • Preparation of an action plan in the scope of internal and external communication;

• Definition of the form and content of customer communication;

• Development of a continuous customer dialogue system using various communication tools.

How can we help? • Periodical monitoring/ reviews of the activities taken and their results with conclusions and recommendations for the future.

UPGRADE

Important questions • Which areas and activities are of primary importance to us?

• What benefits/ results do we want to achieve?

• What activities do we want to take to accomplish what we have set out to do?

REPORT

Important questions • What are our strengths and weaknesses as regards fair play behaviour in our relations with the customer?

• What are our critical gaps and opportunities as regards fair play behaviour in our relations with the customer?

SHARE

Important questions • How to show the customer that we are taking specific actions?

• How to combine the actions we take with product communication?

• What tools and communication channels to use?

TRACK

Important questions • Have our activities allowed us to obtain the desired results?

• Do our customers trust us more? Does it translate into business results?

T R U S T


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Ethics managementsystem in the organization is a set of values and ethical rules as well as the documents, tools and processes that ensure compliance with them. The implementation of such a system is aimed to shape the ethical culture of the organization on the basis of its values, and to provide effective support for the activities it undertakes so as to improve the level of the organization’s resilience to abuse and fraud.

Effective implementation of an ethics management system requires the following steps: • Identification of key risks and issues in the scope of ethics;

• Design of formal documents and tools;

• Implementation of the solutions;

• Periodical system reviews.

Periodical reviews of the ethics management system enable early identification of gaps that can disrupt the functioning of the system as a whole.

They make it possible to make a comprehensive assessment of the system through: • Identification of the strengths and weaknesses of the formal solutions adopted by the organization;

• Checking whether the employees know and understand the system;

• Assessment of the effectiveness of the activities taken as part of the ethics management system.

These actions enable effective fraud risk management.

84% of managers believe that building a company on the basis of values where ethics is as important as achieving business results constitutes a significant competence of management board members.

Leaders for Today – Leaders for Tomorrow Report on the competencies of managers – men and women - in the context on changing business needs Deloitte, January 2015

Ethical issues that are most often encountered by companies operating in Poland: • Conflict of interests; • Offering or accepting gifts/ bribes;

• Inappropriate use of the working time or the property of the company;

• Stealing funds/ information/ intellectual property;

• Forgery of documents; • Lack of integrity in external communication;

• Nepotism in employee recruitment;

• Harassment; • Mobbing; • Discrimination; • Breach of occupational health and safety rules;

• Non-compliance with the firm’s Internet use policy.

Review of the ethics management systemAre you confident that your company’s growth complies with the accepted principles?


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We provide support to our clients in design and implementation of their ethics management systems as well as in carrying out periodical reviews which we consider to be among the key success drivers for effective ethics management in the organization.

Analysis of the established formal solutions The analysis includes a review of the codes of ethics/ conduct, policies, procedures, structure, internal regulations and incident registers.

Tests of the available toolsThe tests concern the operation of the help-line, forms and inboxes.

Interviews with the persons involved in the operating activities linked with ethics management in the organizationInterviews with the persons involved in the operating activities linked with ethics management in the organization.

Analysis of the activities taken in the sphere of communication and education The analysis is made from the perspective of the transparency, adequacy, frequency and scope of the activities.

Study addressed to employeesIt includes, inter alia, gathering opinions on the design and effectiveness of the solutions making up the ethics management system as well as the information about the actual nature and level of the organization’s ethical culture.

Preparation of the reportFormulating the conclusions and recommendations in respect of the system functioning.

We recommend the following periodical review of ethics management systems:

Review of the ethics management system as an element of building organizational culture based on ethics and valuesHow can we help?

Diversity management


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• Millennials have entered the labour market and their values differ from the values of the earlier generations. Only 28% of Millennials declare that the employers use their potential.

• Women make up 59% of university graduates.

• The European Union is working to introduce a requirement that women should comprise 40% of supervisory board members in large companies. The current share of women on Polish supervisory boards is 14%, on management boards – 11%.

• The financial results of companies that have more female members in their managements are higher by 53% as compared with companies with fewer or no women at all.1

• Directive 2014/95/ EU as regards disclosure of diversity information by large undertakings will take effect in 2017.

Labour market trends - why should business take action?

Market trends

¼ of CEOs believe that recruitment and retention of talents are amongthe most crucial challenges for business.2

Sources: 1.Deloitte Talent Edge 2020: Blueprints for the new normal, 2010. 2. The Bottom Line: Corporate performance and women’s representation on boards.


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Where to start?

Questions to initiate activities in the scope of diversity management:

• What demographical trends apply to the company’s staff and customers? To what extent?

• What does the company’s diversity management look like now? Are the criteria of age, gender, etc. accounted for in human capital management to use the employees’ potential to the full?

• Does the Management Board understand the challenges linked with diversity? Has a business case been defined for actions?

• Are the executives aware of the need for personal involvement to obtain the best results in diverse teams?

• What are the company’s plans with regard to building a competitive employee team for the future?

In 2015, Deloitte implemented a program called Deloitte Generations in Central Europe aimed to exploit the potential of the Millennials and Generation Y to the full.

We have been running the SheXO club addressed to women holding managerial positions in Poland for years now.

• Deloitte has been the first advisory company in the world to appoint a woman to the Board; Deloitte is also the first among advisory firms to have a female CEO.

• 50% of Fortune 100 companies have asked for our support in diversity management.

• Deloitte has received the following awards: Fortune, Working Mother, Diversity Inc, Catalyst and the Human Rights Campaign.

Our team of coaches includes: managers and partners of Deloitte Poland with experience in conducting seminars, workshops and trainings on diversity; experts on nationwide social programs, such as Gender Index and Diversity Index; experienced business coaches and consultant specializing in implementing changes in companies.

Deloitte is a global leader in implementing diversity management programs:

Benefits arising from diversity management

Aligning organizational culture with demographic trends

Getting ready for EU regulations on participation of women in decision-making bodies

Creating additional value for the customer by including the diversity perspective

Building the company’s image based on values such as openness, cooperation and respect

Full use of the employees’ potential

Attracting best talents


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EXTERNAL DIMENSIONS

INTERNAL

ORGANIZATIONAL DIMENSIONS

PHYSICAL

ABILITY

PARENTAL

STATUS

MARITAL STATUS

APPEARANCE

WORK LOCATION

SENIORITY

WO

RK EXPERIEN

CE

EDUCATIO

NAL

BACKGROUND

INCOME

GEOGRAPHIC

LOCATION

FUNCTIONAL LEVEL/CLASSIFICA-TION

WORK

CONTENT

DEPART-

MEN

T

SEXUAL ORIETATION

ETHN

ICITY

RACE

GENDER

AGE

PERSONALITY

DIMENSIONS

DIMENSIONS OF DIVERSITY

We offer a broad array of services linked with diversity management

Diagnosis of key challenges linked with diversity management in a company.

Design of action strategies in the scope of diversity management.

Design and provision of workshops for the management board and executive staff to increase awareness of the challenges and business case.

Conducting internal dialogue sessions about optimum diversity support activities.

Preparation of a training program and materials for internal diversity coaches.

Design of social programs targeted at building an image of a company committed to diversity issues.

Preparation of an ethics code for the company and legal support in the implementation process.

Development of solutions in the scope of prevention of mobbing and sexual harassment (procedure, training courses, etc.) and legal support in the implementation process.

Source: Marilyn Loden, Judy Rosener, “Worforce America!”, 1991

Julia Patorska



Deloitte Sustainability Consulting CE | Economics

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Regulatory impact

assessment

Impact of social

and economic factors

and global trends

Company’s impact

Economics

Does your company create value by consciously managing its impact? Measurement, management & reporting of the organization’s impact on the economic, social and environmental setting


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What is impact measurement and why is it worthwhile to measure the impact? Every company, whetheroperating locally or globally, exerts a significant impact.

This happens because companies locate their production plants or headquarters in a specific regional setting and hence influence the development of such regions, creating additional jobs, adding value, generating income for the people and tax and fee income for the local governments.

Measuring impact on a local scale may be a significant tool to influence the opinions and the perception of the company by key stakeholders (e.g. customers, politicians, regulators, members of the local community).

Imperfect and incomplete information about the actual implications of the company’s activity leads to misallocation of resources and more often than not – poor decision-making.Survey: WBCSD baseline report 2013.

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Making an impact that matters and brings benefits

Selected benefits associated with measuring the impact of the organization:

Responding to the actual needs of the region/country

Improving operational effectiveness, reducing costs

Making conscious business decisions and optimising activities

Fostering trust between the company and local environment

Bolstering the company’s reputation and brand image

Managing risk, inclusive of reputational risks

Creating shared value for the company and region/country

Creating an appealing environment for the company to operate in

Legitimisation of the company’s operations in a given environment

Transparency in communication with the stakeholders

Analysis of key impact areas and identification of significant spheres of the organization’s influence on the social and economic environment.

Broad array of services linked with impact measurement

Analysis of the fiscal and economic (direct, indirect and induced) influence of the organization from the industry, regional and national perspective.

Design of economic, social (including social engagement) and environmental impact metrics.

Analysis of the impact of regulatory and economic changes on the organization, environment and industries (e.g. Regulatory Impact Assessment - RIA), analysis and construction of alternative scenarios, economic analyses at micro- and macroeconomic levels).

Development of a plan of strategic activities aimed at mitigation of negative influence and enhancement of positive influence on the environment (optionally also support in gaining funds from public sources to finance selected activities).


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How can we measure the local impact?

The SEEDS methodology is the first methodology on the market that allows companies and organizations to see how much they contribute to the improvement of the social area in which they operate, and in doing so represents a practical tool for planning cooperation with local authorities in order to

create shared value.The data used in the framework of SEEDS are the result of a comprehensive study (this study resulted in the development of the EU Regional Social Progress Index) which reviewed all Polish regions (voivodeships), within 52 variables in 3 key areas.

Looking at the study findings, one can accurately identify the areas in which the selected region reaches a high level of advancement and those that need improvement.

By identifying key areas from the perspective of companies operating in the region and

combining them with the most important areas from the perspective of regional development, it is possible to develop solutions that will contribute to the growth of the region through the growth of the company.

PREVIEWReview current activities supporting an inclusive growth agenda at regional levels

IDENTIFYIdentify regional indicators relevant to the company which can be influenced by a comprehensive action plan

MONITORTrack and compare results by collecting and evaluating feedback from the community and set up an impact measurement mechanism

MEASUREMeasure current company inputs addressing key regional challenges

DEVELOP PARTNER-SHIPS

Map key stakeholders to cooperate with at the regional level to maximize the potential effects of the actions and share best practices in the field

PLAN & DESIGNPlan a comprehensive course of action with ambitious and achievable goals responding to key regional challenges and stakeholder needs.

IMPLEMENT & MANAGERecommend a governance structure which supports the implementation of plans for managing resources towards the outlined goals

SEEDS©7 Steps to creating meaningful impact in the region

Social Economic and Environmental Development Script (SEEDS)


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Company’s impact can be examined in 3 dimensions:

Impact can be measure in4 areas:DIRECT IMPACT

resulting from the company’s core business activities.

Value added

INDIRECT IMPACTgenerated among suppliers and stakeholders of the companies and related industries.

Employment

INDUCED IMPACTgenerated by the expenses of the company’s employees and employees of affiliated entities.

Incomes of households

Revenues for local government - taxes and feesThe Input-Output

model reflects the internal connections and relationships between the various sectors of the economy. This model allows for investigating how the business of an enterprise affects the development of their local environment, including its

suppliers and subcontractors representing the various sectors of the economy, as well as how the demand impulse generated by the remuneration of their employees, contributes to the growth of the region’s economy.

A model based on inter-industry flows

Regulatory impact assessment: necessary basis for legislation changesHow a change of law can affect you?


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Due to complexity of regulatory environment, introduction of changes is often difficult and slow. For a regulatory change initiative to be effective, very good preparation is needed, in particular in the context of possible changes in the National Budget income.

To enable effective and constructive discussion of changes, with necessary arguments at hand, a regulatory impact assessment is necessary. This is a comprehensive analysis of impact of the discussed changes in legislation on the economy, public finance, administration and society, required in the course of the legislation procedure.

In practice, preparing a regulatory impact assessment (RIA) report is often accompanied with support aimed at clarification of specific proposed regulatory changes (with involvement of lawyers, legislators, tax and industry experts) and assistance with subsequent communication.We develop RIA reports both for public administration entities, firms and industry unions.

Purpose of regulatory impact assessment


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Typical project works include:

Analyzing opportunities of regulatory changes from the viewpoint of existing domestic and international conditions.

Looking for similar practices implemented in other countries.

Implementing the communication and dialogue activities.

Publications, conferences, meetings with representatives of administration, etc.

Determining the exact provisions of the projected regulatory changes.

RIA Report: assessment of impact of theprojected changes on the economy, public finance, administration and society.

Preparing a plan of communication and dialogue with key stakeholders of a given amendment.

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The scope of RIA reports is closely related to the specifics of each issue. If necessary, our team can carry out economic analyses for different geographies and industries, to include those of the labor market, tax flows and other categories that impact the public finance.

Further, defining a potential workload for central and local administration arising from new tasks and determining the outcome of regulatory changes for households and enterprises is possible. .

RIA reports may also include initial estimates of regulatory effects on natural environment.

If possible, our RIA reports are included in the existing strategic plans adopted by the government, which provides an enhanced basis for discussion and argumentation.

As authors of the reports, we respect the following standards:

Independence: the report is prepared by an entity that is not a participant of a given market or a party to a discussion.

Objectivism: our methodology is supported by proven tools and practices of social and economic survey.

Constructivism: each report is focusedon issues of key importance for stakeholders’ debate.

RIA report

• Public finance

• Labour market

• Competitiveness

• Administrative paperwork

• Market structure

• Incomes

• Quality of life

• Natural environment

• Other

What should be done and how?

Deloitte Sustainability Consulting CE | Communications

6160


Mariusz Wawer


Michał Olbrychowski


Corporate and crisis

communication

Change communication

Information, dialogue,

engagement

Employerbranding

and internalcommunication

Communications


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What is the solution?

• Minimising such risks through planning and implementing appropriate communication and consultation should be a permanent element of every investment process.

• Identification of potential social risks at an early stage and its mitigation through appropriate education and dialogue helps build stakeholders’ trust and expert dialogue.

• Public consultation and provision of information about the investment are also an important element to support administrative, planning and environmental procedures.

• The principles of good neighbourhood in planning, execution and use of new projects help build trust and dialogue with the social partners and thus ensure responsible coexistence.

Communication, dialogue and public consultation are an important element supporting the location of new infrastructural investment projects.

Lack of social acceptance becomes one of the key risks in the location of new energy, infrastructural or commercial construction investment projects.

Social partners’ concerns resulting from the lack of knowledge or lack of dialogue may lead to strong opposition from the citizens and NGOs or reluctance of local authorities to locate an investment project in a given area. It has become a common issue which poses a serious reputational risk to

the investors, contractors as well as local governments which carry out planning and environmental procedures.

A hostile climate for an investment project may lead to prolonged formal and legal procedures and if the opposition is particularly strong the planned investment project may need to be abandoned.

Strategic communication, dialogue and consultation in the case of new infrastructural investmentshelp build social acceptance and a favourable climate for the projects. It also supports administrative and environmental procedures.

How to conduct a dialogue with local stakeholders and build understanding and acceptance for new investments?Communication, dialogue, engagement.


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What kind of investments do we support?

Model of support for investment processes How can we help?

Benefits

• A chance to learn about and factor in social interests related to the investment project;

• Greater trust between investors and social partners and greater openness to dialogue and cooperation;

• Access to reliable information about the investment project and its potential impact;

• Limitation of social concerns and elimination of possible protests;

• Ensuring a more reasonable discussion; better understanding of the factors shaping the investment project;

• Reliable fulfilment of the requirements of financing institutions.

ENERGY INVESTMENT PROJECTSbiogas plants, PV systems, wind farms

REAL ESTATE SECTORlogistic and shopping centres, housing estates

TRANSMISSION INFRASTRUCTUREpower lines, pipelines

TRANSPORTATION INFRASTRUCTUREroads, railways, airports

PUBLIC UTILITIESincineration plants, sewage treatment plants, landfills

MINING INVESTMENT PROJECTSshale gas, mines

SOCIAL DUE DILLIGENCEAn analysis of local conditions and social risks for the investment project.

STRATEGYDevelopment of a strategy for social communication with the stakeholders − citizens, local authorities, media, opinion leaders, local governments.

CRISIS COMMUNICATION PLANDevelopment of a crisis communication plan for the investment project as regards identification and mitigation of risks and implementation of anti-crisis procedures.

TRAININGTraining for representatives of the investor and contractorsin social communication and crisis procedures.

INFORMATION AND PROMOTION CAMPAIGNSDesigning and implementation of educational and promotional campaigns among local, regional and supraregional stakeholders to raise awareness and build social acceptance.

DIALOGUEWITH THE STAKEHOLDERSPlanning and conducting a dialogue with the stakeholders as regards designing good neighbourhood and developing socially acceptable parameters of the investment project.

PUBLIC CONSULTATIONPlanning, organisation, direction and professional support of public consultation processes

REACTION TO CRISISReaction to conflicts and social protests against the investment project.

Change communication as the key element of supporting change management processes and improving its effectivenesswithin organisations


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How can communication support change management processes?

Every day organisations face the challenge of effectively changing the key areas of operation. Whether it is about implementing a new business strategy, organisational changes, restructuring, staff issues or IT systems, the success, to a large degree, lies in appropriate communication of the processes to the stakeholders.

Lack of understanding of the change, its basis as well as effects may lead to lack of acceptance and failure of the entire process.


• Incorporation of strategic communication into the change management process helps address the natural fears related to the processes, supports engagement and creates the right perception of the conditions and effects among internal and external stakeholders.

• An analysis of reputational and social risks and then selection of relevant contents and communication platforms helps reach employees, clients, business partners or supervisory bodies with the right message.

Lack of active and strategic change communication from the leaders results in gossip, fear and lack of confidence among the staff and company’s environment in the success of the change. In such circumstances a positive perception of the change and a success of the entire process are hard to get.


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Which changes require communication support?

Model of support for investment processes How can we help?

Benefits

• Understanding the reasons for the change, the process and ensuing benefits by internal and external stakeholders;

• Early identification of potential reputational and employee risks and factoring them in the change process;

• Assigning responsibilities within the project team as regards communication with individual groups of stakeholders;

• Support for the ongoing change management through flawless communication of key stages and implementations;

• Support for the change leaders in flawless change communication and thus improving the effectiveness of individual activities.

Change of the company’s business strategy or its line of business

Ownership changes and M&A

Significant organisational changes affecting the staff

Implementation of key IT systems

Significant changes in the company’s operations affecting customers, business partners and the social environment

New or modified services and products

ANALYSIS OF REPUTATIONAL RISKSResearch and analyses of reputational risks and communication expectations of the stakeholders, including employees and business partners.

TRAININGSAnalyses of training needs of managers and change agents in the area of process communication.

COMMUNICATION STRUCTUREDefinition of the organisational structure and responsibilities within the project teamsas regards communication of the transformation to the stakeholders.

STRATEGY AND COMMUNICATION PLANDevelopment of the change communication strategy and a plan to engage stakeholders as well as advice as regards implementation of communication activities, including: selection of contents, improvement of information channels and communication platforms, and engagement events.

CHANGE MONITORINGMonitoring of the perception of change, early identification of reputational and process risks and evaluation of effects.

REACTION TO CRISISReaction to crisis to eliminate the lack of change acceptance or emergence of organisational and implementation problems leading to reputational risks.

STAKEHOLDER MAPPINGIdentification of key stakeholders, their influence and necessary engagement in the change implementation process.


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Internal and external employer branding is the key to success in business

Due to the economic growth and ageing of the population as many as 41%1 of employers in Poland find it difficult to find and retain well-qualified employees. It is becoming increasingly difficult to reach talents who will ensure stable growth for the company and passive candidates who account for 80%2 of the market.

Rising costs of recruitment or a drop in the engagement of employees lead to enormous costs and affect not onlythe HR departments, but also the management and executives.

A market shaped by employees’ needs requires that companies adjust their communication to the most important stakeholders − the candidates and the current team.

Additionally, a weak employer’s brand has got an increasing impact on the consumer brand, influences customer loyalty and satisfaction.

An employer branding strategy that includes internal communications is a response to all problems affecting employers: lack of engagement, turnover, difficulties with acquiring and retaining talents or problems with recruiting well-qualified candidates with the right set of values.


• Development of an employer branding strategy comprising internal communications, which takes into account the business objectives and company’s values.

• Development of an Employee Value Proposition − a unique set of values that will differentiate the employer from the competition.

• Both internal and external image-building activities aimed at engagement of current employees and attracting new candidates.

Employer branding and internal communicationsHow to become the employer of choice among the current and potential employees?

Sources:1. Report „Niedobór Talentów” Manpower 20162. LinkedIn Talent Report 2014


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Which problems do we help solve? Model of support for the employer branding process How can we help?

Benefits

• Securing short- and long-term recruitment objectives − quantity, quality and matching applications;

• Attracting the right employees, talents and passive candidates, both students/graduates and professionals;

• Reduced turnover;

• Reduced employment costs;

• Increased employee effectiveness;

• Higher position in employer ratings;

• Building the image locally and globally;

• Increased employee engagement − profitability and effectiveness of the company and customer satisfaction;

• Effective and reliable promotion of the company outside − employees as independent ambassadors;

• Better understanding of the organisation’s objectives among the employees.

GENERATION AND COMPETENCY GAPSProblems with succession, lack of well-educated candidates

SHORTAGE OF TALENTSProblem with acquiring and retaining the best employees

IMAGE PROBLEMSLack of interest in the brand/sector, hypercompetition

RECRUITMENT PROBLEMSShortage of potential employees, employee/job mismatch, problemwith reaching passive candidates

TURNOVER AND LACK OF EMPLOYEE ENGAGEMENTProblems with employee retention and motivation, need for improvement/development of effective internal communication

STRATEGIC CHANGES WITHIN A COMPANYMergers and acquisitions, management changes, vision, mission or value changes

EMPLOYER BRANDINGDevelopment of an employer branding strategy inside and outside the organisation.

TRAININGDevelopment and provision of training for persons responsible for communication in the company and for other groups of employees.

INTERNAL PROGRAMME DEVELOPMENTDevelopment of programmesto engage and motivate employees.

PREPARATION OF INTERNAL MEASURESPlanning and implementation of image-building and recruitment measures addressed to students/graduates and professionals.

DEVELOPMENT OF A HUMAN RESOURCES MANAGEMENT POLICY IN THE COMPANYDevelopment of training modules, diversity strategy and voluntary service programmes.

MEASURING EFFECTIVENESSDevelopment of KPIs, evaluation, drafting effectiveness and impact reports.

DEVELOPMENT OF EMPLOYEE VALUE PROPOSITIONDiagnosis of unique values, key challenges, advantages, weaknesses and objectives related to employer branding.

QUALITY AND QUANTITY ANALYSESInternal and external analysis of the employer’s brand.


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Management Boards know how important reputation is. Companies with a good brand image attract better investors and employees and are perceived by stakeholders as those companies, which ensure a better return on investment and greater security. Their clients are more loyal which makes them more likely to increase the number or value of transactions and engage in the life of a given company or brand.

Moreover, in an economy in which from 70% to 80% of the company’s market value results from intangible assets which are hard to assess − such as brand importance or intellectual capital − organisations are particularly sensitive to all that may affect their reputation.

Effective management of reputation is currently one of the biggest challenges ahead of modern organisations partly due to the direct impact on growth and market value. An image crisis has led to the downfall of many companies. In the era of new media even the smallest error made by an organisation is immediately noticed by its key stakeholders, including clients, investors, employees and competition.


• Development of and consistent delivery of corporate communication measures which integrates and directs all other marketing and promotional activities which translate directly into the reputation of the company.

• Development of a crisis communication plan, including processes, procedures and communication manual. Additionally, training addressed to members of the crisis team and simulation for those assessing the organisation’s readiness for any crisis situations.

Building company’s reputation and anti-crisis protection


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When is it a good idea to strengthen corporate and anti-crisis communication?

Model of support for building reputation How can we help?

Benefits

• Clearly defined: mission, vision, values and company’s market value;

• Building competitive advantage resulting from transparent and reliable communication;

• Setup of a coalition of support for initiatives and programmes and strengthening relationships with key stakeholders;

• Development of programmes to protect the reputation of the company;

• Identification of potential crisis-generating areas within the organisation;

• Promotion of leaders in an organisation and strengthening their role in the business environment.

CORPORATE COMMUNICATION • Entering a new market, ownership changes, a new CEO or a managing team;

• Building institutional trust in the organisation in connection with expansion plans, investments, marketing key new services/products or changes of the business line;

• Planned processes related to significant organisational changes (restructuring, consolidation, M&A).

ANTI-CRISIS COMMUNICATION • Corporate and employee’s crime (fraud, harassment, mobbing, bribery, deception);

• Industrial accidents, problems with quality and accessibility of services and products, product withdrawal;

• Need to rebuild the company’s reputation following an image crisis.

TRAININGSTraining in media relations, crisis management, workshops and crisis simulation.

STRATEGY AND COMMUNICATION PLANDevelopment of a corporate communication strategy and crisis communication strategy comprising a description of procedures, techniques, tools and messages.

IMPLEMENTATIONSupport in the area of strategy implementation and ad-hoc measures in the case of crisis communication.

MONITORING Monitoring the reputation of the company and preliminary identification of potential threats.

STAKEHOLDER MAPPINGIdentification of the key stakeholders, their attitudes, expectations and possible engagement in reputation building or crisis prevention activities.

RESEARCHAnalysis of the perception of the organisation, communication within the category and stakeholders’ expectations. Analyses and research of crisis-generating areas within the organisation and category.

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Deloitte Sustainability Consulting CE

Irena PicholaPartner, Sustainability Consulting Central Europe Leader


Get in touch with us!Deloitte Sustainability Consulting Central Europe

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/pl/onas for a more detailed description of DTTL and its member firms. Deloitte Central Europe is a regional organization of entities organized under the umbrella of Deloitte Central Europe Holdings Limited, the member firm in Central Europe of Deloitte Touche Tohmatsu Limited. Services are provided by the subsidiaries and affiliates of Deloitte Central Europe Holdings Limited, which are separate and independent legal entities. The subsidiaries and affiliates of Deloitte Central Europe Holdings Limited are among the region’s leading professional services firms, providing services through nearly 6,000 people in 41 offices in 18 countries. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. © 2017 Deloitte Central Europe

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