22 Aralık 2019 Pazar
UNSDG United Nations Sustainable Development Goals (BM Sürdürülebilir Kalkınma Hedefleri) 17 hedefiyle WEF World Economic Forum (Dünya Ekonomik Forum) 13 en ciddi küresel risk tanımı birbirleriyle uyumludur.
Sürdürülebilirliğin izlenmesinde en yaygın yöntem denetimlerdir. Ancak denetçilerin yetersiz olması veya markaların bütçelendirirken zorladığı fiyatlar nedeniyle denetim etkinliği düşüktür.
ISO serilerinde fark edilen "hileli raporlama" eğiliminin diğer denetim programlarında da rastlanması riski vardır. Kimi zaman sürdürülebilir aktivetinin kendisi yerine bunun denetimi - raporlaması ön plana çıkmaktadır.
Çabaların istenen etkiyi yaratabilmesi için Tedarik (Değer) Zinciri boyunca uygulanması gerekir. Ancak Satılan Malın Maliyeti içindeki İşçilik - Hammadde - genel gider kalemlerinin tamamı Sürdürülebilirlik maliyetlerinden etkilenir. Ancak markalar bu maliyetleri karşılamadıkları gibi fiyat baskısına devam ederler. Bu tedarikçileri ikileme sokan bir gerçekliktir.
Tüketicilerin ve markaların tedarik zincirinin devamında sürdürülebilirlik açısından pozitif ayrımcılık yapması süreci güçlendirecektir.
Sürdürülebilirliğin yarattığı katma değerin alışılmış finansal raporlama (GAAP, Tek Düzen Hesap Planı) içerisinde gösterilmesi çok güçtür. Dolayısıyla firmanın esas stratejisiyle birleştirilmediği sürece sürdürülebilirlik çabaları güdük kalacaktır. Müşterilerin ticari anlamda pozitif ayrımcılığı önemlidir.
Müşterilere anlatılan Değer Önermesi içinde sürdürülebilirlik ruhu olmalıdır, Yapılandırılmış bir sunum (belki ön maliyete sürdürülebilirlik katkı payının eklenmesi) müşterinin gezegen için iyi olanı seçmesini kolaylaştırabilir.
"Sürdürülebilirlik" kavramının tüketicideki yansıması maalesef her zaman olumlu değildir, kimi hallerde "istenen fonksiyonunu sürdürülebilirlik uğruna kısmen yerine getiremeyecek" olarak yorumlanmaktadır. Bu dayanıklılık, çeşitlilik, fiyat, estetik vb çeşitli şekillerde düşünülebilir.
2016 daki bir çalışmada katılan CEO ların sadece %2 si sürdürülebilirlik çabasından olumlu finansal dönüş aldıklarını söylemiştir. Her firmanın yapısı farklıdır ancak sürdürülebilirlik çabasının beklenen etkinliğe ulaşabilmesi için organizasyonda CEO ya yakın konumlanması ve liderin organizasyonda kabul görmüş-operasyon kökenli-iletişim becerili seçilmesi önemlidir. Çabanın içeriği firmanın bugün-yarın durumuna ve ticari etkinliğine göre belirlenmelidir. Başkalarının yaptıklarını yapmak zorunda değiliz.
This book is about sustainability failures and obstacles, their origin and avoiding them. McKinsey & Co.’s 2017 study on sustainability indicated that the top five sustainability topics today are social issues rather than environmental matters.
Key point: There is no consensus, clear and actionable definition of sustainability/CSR.
In September 2015, the United Nations announced the adoption of the Sustainable Development Goals, or SDGs. The UN SDGs are certainly a credible source for defining sustainability/CSR but at a practical business level, the SDGs may be overwhelming. The World Economic Forum (WEF) published its 10th Annual Global Risks Report. Eight of the 17 SDGs correlate to the WEF’s risks and risk-trend interconnections, and conversely eight of the WEF’s 13 most significant global risk trends had a corresponding SDG.
Key point: One way to begin changing the perception of sustainability is to stop using the word.
It is a direct reflection of the book’s intent - end the old discourse on sustainability/CSR and use new tools/approaches to help create new conversations.
Key point: Like a hereditary disease passed on to next generations of management, contempt about environmental regulations continues to be entrenched in corporate culture.
Not every environmental compliance professional or engineer was (or is) suited for auditing. An auditor’s particular set of skills includes natural skepticism, perseverance, curiosity and the ability to remain objective in assessing facts, applying rules and communicating issues. Today, environmental, health and safety (EHS) auditing is a mature, well-established profession that has proven to be highly effective. The ISO 14000 series of voluntary environmental management and certification standards focused on policies and management rather than on performance or outcome.
Key point: ISO is still seen by many to be a distraction, with companies generally more interested in hanging a certificate in their lobby than the actual outcome of the EMS.
In order to issue an ISO 14001 certification, the auditor did not have to consider the effectiveness of the management system. Rather, the auditor was to assess whether the system contains the elements required of the standard, documentation supporting that, and to some extent whether programs were implemented.
Key point: Assessing the mere presence of procedures is not the same as evaluating the content, adequacy or effectiveness of those procedures.
Key point: A manufacturer’s influence - and corporate sustainability/CSR - extends backwards into a company’s supply chain and forward to a product’s disposal or recycling.
Any one supply chain link can choose to change business practices and improve lives. Such changes can also disrupt the business model, pricing and competitive position of both parties, creating a powerful opposing force. Approximately 50% of many companies’ costs are the cost of goods sold (COGS) - that is, the price paid for the labor required to make the product, the direct materials used to make the product, and overhead charges necessary for making the product. Sustainability/CSR initiatives can mean increases in all three cost elements.
Key point: Today’s manufacturing business model presents the sustainability/CSR professionals’ biggest challenge. Manufacturers have minimal influence beyond their direct suppliers and supply chain initiatives. Imposing sustainability/CSR requirements on suppliers can increase COGS.
Key point: A manufacturer can impose contractual requirements onto their direct suppliers, but they must rely on those suppliers to then push requirements/initiatives down further.
Things and Stuff Used in Other Things and Stuff
Key point: The more things and stuff that are made, the more other things and stuff are required - meaning the manufacturer at the end of the line has to invest in understanding and managing supply chain sustainability/CSR.
Things and Stuff Used Indirectly
Key point: Indirect materials are a component of COGS for manufacturers and their suppliers, and therefore, are not excluded from cost pressure. Sustainability/CSR initiated changes may again impact costs, so resistance is to be expected.
Things and Stuff Discarded
Just because technology exists to recycle materials does not mean recycling actually occurs. No alternative has yet been identified to effectively manage the volume of materials previously sent to China. The enlightened way to manage back-end impacts of disposal is to address them in the beginning - designing products to extend their useful life, minimize hazardous chemical content and reduce post-use recycling burdens. Design for the Environment (DfE) was an initiative US EPA started in the 1990s, primarily in the technology industry.
Key point: Current expectations are that manufacturers maintain some level of responsibility through the end of a product’s useful life.
Corporate procurement guidelines sometimes give preferential consideration to products that are sustainable or socially responsible. “millennials” also seem committed to the same buying preferences.
Key point: Consumption of things and stuff is what creates the need for the supply chain in the first place. This burden can be recast into business opportunity.
Key point: Current CSR audit price points are a major driver of audit quality, or lack thereof.
Key point: Brands and factories share blame for poor CSR audit quality because they establish scopes, hire auditors and set market prices.
Anyone committed to improving CSR audits procured on behalf of a company should consider the following: * Adjust expectations or pricing to match the quality and scope of activities desired. * Explore the auditor(s) professional qualifications. * Test the auditor(s) technical knowledge beyond checklists. * Find out how much time the auditor(s) spend onsite, and on each audit activity. * Look at audit report findings and cited evidence. * Determine how audit reports are peer-reviewed, if at all. * Don’t get swayed by broad company or program certifications such as ISO. Audit fatigue at facilities at all points in the supply chain has become an epidemic. To fix problems, problems have to be fixed, not simply found.
Key point: No audit is effective if audit findings are not addressed.
Sustainability professionals have searched for a credible financial metric to quantify the value of our efforts. Only 26% of those responding to McKinsey & Co.’s 2017 sustainability survey reported a positive financial impact of their sustainability/CSR activities, and approximately 25% reported not knowing what the financial impacts or benefits are at all. “Maximizing shareholder value” (MSV) has been a corporate mantra for decades. MSV is really MEPW - Maximizing Executive Personal Wealth. MSV fails for multiple reasons. Public shareholders do not invest in a corporation’s productive capabilities. In theory, companies issue shares in exchange for money to invest in growth. In reality according to Lazonick, “stock markets in advanced countries have in fact been insignificant suppliers of capital to corporations.”
Key point: In our zeal or a need to justify our existence in the context of Maximizing Shareholder Value, sustainability/CSR practitioners overreach; our biases turn into obstacles when we try to force a solution or valuation where one may not exist, or is inappropriate - destroying credibility.
Key point: Linking sustainability/CSR to stock price may not the right approach.
Key point: In the US, traditional accounting and financial reporting measures have become less valuable to investors. Non-GAAP financial disclosures are growing in importance, meaning reported sustainability/CSR valuations should be supported with credible processes, assumptions, and data.
Key point: The question must be asked if the intended audience understands what is being said, and whether they are astute enough to realize what is not being said.
from Albert Einstein: “If you can't explain it simply, you don't understand it well enough.” “The definition of genius is taking the complex and making it simple.”
Key point: Use simple and jargon-free language when possible.
Key point: Sustainability generally remains the domain of big companies and certain industries. Internal challenges to sustainability/CSR in smaller companies are frequently greater than in large companies.
Key point: Countering Friedman’s position on sustainability involves developing a sustainable product that is clearly aligned with the company’s traditional offerings.
Key point: Rather than attacking a “company,” consumers and investors should try to influence corporate managers by appealing to their personal sense of morals and responsibilities.
Key point: Established thinking is difficult to alter because physical neural pathways in the brain are not easily changed.
Key point: When discussing sustainability/CSR, we may unintentionally evoke frames that undermine our ability to convince others of our position.
Key point: Behavior is frequently driven by the wording in instructions, guidance or even naming products/services, whether intentional or not.
Thaler describes choice architecture - the design of thoughtfully presenting information choices or options “in a way that will make choosers better off, as judged by themselves.” Wording of options and the way they are offered impacts how people act and this behavior can be predicted. Choice architects influence behavior by how they offer information and choices. This is what Thaler calls a “nudge.” Choice architecture and nudging principles include minimizing and focusing options, using careful wording to subtly influence behavior, and formatting the presentation of options. Fundamentally, choice architecture is about reducing cognitive effort and overload; making it easy to choose the “right” choice.
Key point: When presenting options for consumers or executives, apply choice architecture to reduce - or maximize - desired bias and behavior in the outcome. In other words, nudge.
Key point: Public disclosure can be an effective nudge for initiating change because executives wish to avoid being called out as a result of what is disclosed.
Key point: Consumers may not follow through on behaviors they demonstrate in market surveys or testing, so new products or marketing campaigns can be built on false expectations.
Stoknes points out that humans hate financial losses about two times more than they like financial gains.
Key point: Presenting a sustainability/CSR opportunity in terms of avoiding a risk/negative may be valuable because humans are psychologically biased to avoid risk, but it may be better to frame the opportunity in positive terms. Assess the best direction for a specific audience.
Stoknes states “what we choose to purchase depends not only on price and technical information, but even more on how the choice is presented.”
Key point: To resolve the tension of cognitive dissonance, people can choose to change feelings or thoughts and continue their desired behavior.
Key point: Once thoughts or feelings are altered to justify existing behavior, confirmation bias becomes another obstacle.
Key point: Framing sustainability appropriately to executives is a prerequisite to communicating facts and nudging toward the desired outcome.
Key point: Maximizing short-term extra-normal profits resulting from sustainability innovations may involve reducing transparency in order to maintain the exclusivity of those innovations.
Key point: The internal perception of sustainability’s place in the org chart, its leader and staff can predetermine a program’s success or failure.
A 2016 Bain & Company study on organizational aspects of sustainability indicated that only two percent of 300 companies surveyed actually achieved or exceeded the sustainability goals those companies established for themselves. “dilution of value and mediocre performance” in sustainability. The reasons for this failure boil down to two themes: ineffective sustainability leadership and lack of convincing valuation of sustainability programs/efforts.
Key point: If the program is seen as an important part of the company, the pressure is on to retain that respect. Otherwise, time must be spent reframing and building credibility before perception changes.
if the C-suite takes a specific interest in sustainability/CSR, then it tends to happen. Looking back at articles about sustainability/CSR success at major brands, the C-suite is featured on a regular basis.
Who? (He’s on First)
Personality, technical skills, business acumen, interpersonal skills and communication all factor into how a leader is perceived by others and the judgments made about the leader.
Key point: Finding the right leader involves clearly defining what sustainability/CSR means to the company, evaluating candidates against criteria based on that definition and determining if/how gaps can be closed.
Changing a long-embedded operating culture of “production first” is challenging. The goal is to change long-established mindsets and behaviors of people whose priorities typically center on production.
What? (Second base!)
Key point: If your background is a concern, tackle that perception by continually reinforcing the present and future of sustainability/CSR initiatives in a credible manner.
“short-termism.” This disease causes executives to focus almost exclusively on quarterly financial performance instead of establishing and managing toward long-term goals.
Key point: Executives have incentives to manage short-term financial performance that can compromise long-term thinking. In these situations, the credibility of the sustainability/CSR organization, leader and financial justification are crucial, as is the ability to effectively frame the value.
Key point: To many executives, the word sustainability is a cue to stop listening based on existing frames.
Key point: Building sustainability/CSR choice architecture that appropriately balances executive points of view and new sustainability frames requires effort and skill.
Identify where sustainability initiatives may make sense within the company’s operating context. Where a potential project is identified, discuss relevant business benefits using the appropriate business words. Link initiatives to key buying criteria or other customer requirements. Focus on real economic value created and try to avoid couching value in terms of risk avoidance. Eliminate the unnecessary barrier, artificial distinction and separation from business that “sustainability” creates - don’t use the word until near the end of any conversation: “Oh, and it’s a sustainability success, too.” Michelle Edkins of BlackRock suggested using “language of long-term operational excellence … innovation and adaptation and sustainable financial performance, the companies tend to be very fluent and well-versed in those issues.”
Key point: Some sustainability squirrels are worth catching; others, perhaps not. Sustainability practitioners should critically evaluate each and make the determination.
understand customers’ key buying criteria, how their perceptions of sustainability impact decisions and then meet their needs.
CDP, formerly the Carbon Disclosure Project, is a UK-based non-profit that has operated for 15 years. CDP is very well known and is essentially the standard for reporting greenhouse gas emissions. They also collect and track water use data.
Statement of Significant Audience and Materiality
Yet in analyzing “hundreds of quarterly analyst calls” over multiple years, not one analyst raised a question about sustainability, CSR or ESG.
ESG Ratings and Investors
Environmental, social and governance (ESG) ratings are essentially the terminology the investment community uses to mean sustainability/CSR. investors view companies with good ESG performance as having lower systemic risk and beta, therefore reducing the expected CoC. This, according to MSCI, results in “higher company valuations.” Organizations have differing opinions on ESG ratings and their importance. Make that assessment before
Sustainability programs should focus on implementation, not on the report. A company can have an excellent sustainability program without reporting on it or may reflect it poorly in a report. What tends to be more common is the opposite - a company publishes a beautiful sustainability report aligned with a reporting framework, but the actual program maturity and implementation differ meaningfully from what is communicated in the report.
When considering whether - or what - to report, think about the following:
&Why does the company want to report? Is the company looking to improve its reputation? Join a CSR index? Because competitors are reporting?
&Will reporting have a negative impact? In certain circumstances, issuing a sustainability/CSR report may weaken the company’s competitive position.
&Who is the intended audience? Is the company most interested in engaging the public, customers, investors or NGOs? Use the answer to define what and how to report.
&What story should be told? Is the goal to communicate financial impact of sustainability/CSR efforts, focus on specific matters or to tell a general story?
&How should it be told? Is the story most effectively communicated by using a narrative, technical data or metrics? Should it follow a specific reporting framework for standalone sustainability/CSR reports, or will it be integrated into the financial report?
&Should it be audited/verified? In the US, it is not common for sustainability/CSR reports to undergo an audit. Doing so is voluntary, but may be considered worth the cost.
The G20's Task Force on Climate-related Financial Disclosures (TCFD) released their reporting recommendations in June 2017. TCFD recommendations involve reporting on major themes of climate risk governance, strategy, risk management metrics and targets. TCFD intends that climate disclosures be incorporated into financial reports rather than in stand-alone sustainability/CSR reporting. But the process of reporting can consume those involved, distracting from what is really important. Some well-known global corporations have a surprisingly weak reality behind their impressive looking reports.
Supply Chain/Supplier CSR Evaluations
Auditing should not be considered the end game. The goal is for identified deficiencies to be corrected and eliminate environmental, social and safety risks. Supplier CSR audits can be valuable if they are given due respect by buyers and executed professionally by auditors.
In a perfect world, sustainability and corporate social responsibility would be so deeply integrated into company strategy, products and operations that it would not be distinct or identifiable.
16 Aralık 2019 Pazartesi
The early roots of CSR were more local, charitable, and almost quaint; however, today CSR is global, strategic, and business critical. Thirty years into my CSR journey, I see business winners advocating fiercely for compassion, inclusion, and transparency in their operations. CSR – it is truly a journey not a destination.
There is a point at which a company's responsibilities to society are so deeply aligned with its responsibilities to investors and employees that there is no meaningful distinction between business strategy and CSR.
CSR strategy at its best is essentially a public accounting of a company’s commitment to “the triple-bottom-line” – its people, its profitability, and the planet. Did we grow our people? Did we make money? Did we help or hurt the planet? This is the “triple-bottom-line” measurement of genuine success. For such purpose-driven organizations, CSR is the critical avenue through which each company’s purpose gains expression.
The rising consumer class of Millennials numbered 2 billion in 20172 according to the Pew Charitable Trust, and as they consume, they are sharing their experiences, learning from and supporting each other, and recognizing the fundamental importance of empathy and responsibility. They form the foundation of the Caring Economy and CSR is the essential channel for engaging them. The Millennial generation (those born between roughly 1981 and 1997) now constitutes the largest adult demographic in history, and numerous surveys show Millennials have an overwhelming preference for employment at socially responsible companies. They are also among the large majority of consumers who say they are willing to pay more for sustainably produced goods and services. As older generations have passed along, the percentage of consumers who prefer sustainable goods has been climbing steadily.
For makers of consumer products, CSR is a vital source of pricing power required for maintaining profitability. A company that is socially responsible is a company built for long-term sustainable success. Typically, sustainability goals for organizations are broken into three broad categories of concern: environmental, social, and governance, known as ESG.
Leaders of the profitable corporations in the Caring Economy will be those who understand that company stakeholders expect them to be socially responsible, transparent, and accountable.
CSR ends when everyone in the company exercises CSR reflexively each day because, for that company, social responsibility is synonymous with fiscal responsibility and sustainable long-term growth.
Great Brands Are Purpose Driven
1.1. Seek mission alignment: the key to beginning and sustaining your CSR effort is to set goals and objectives that are very strongly aligned with the mission and business goals already embraced by the organization’s leadership. these companies pursues CSR in ways that are highly relevant to its industry, its customers, and their communities. The United Nations has a list of 17 Sustainable Development Goals, known as SDGs.
1.2. Assess Your Existing CSR for Quick Wins: Many companies that do not have CSR programs nonetheless exercise social responsibility by other names, by sharing their expertise on a philanthropic basis. One reliable resource to consult as you begin is The Global Reporting Initiative (GRI), an independent international standards organization that helps businesses, governments, and other organizations take stock of their CSR impact. A second resource tailored for investors is the Sustainability Accounting Standards Board (SASB), a U.S.-based non-profit that develops and promotes accounting standards for sustainability, much like FASB (the Financial Accounting Standards Board) promotes accounting principles for financial reporting.
1.3. Make your SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats. Another very practical way to shake out your short-term triple-bottom-line points of emphasis is to undertake a standard SWOT analysis: strengths, weaknesses, opportunities, and threats. Which items represent your company’s strengths, where brand alignment might make a powerful statement? Think of Intel’s use of its technology to empower more people to innovate and harnessing its data to address society’s most complex issues – from climate change to energy efficiency to economic empowerment and human rights.
Which items represent some of your company’s weaknesses and vulnerabilities, where attention needs to be paid to avoid potential problems with customers and other stakeholders?
Which items represent clear opportunities, where positive action is most likely to attract employee engagement, leverage the capabilities of company suppliers, and attract strategic partners outside the organization?
Which items represent areas of threat to the organization, where a lack of CSR attention in a particular area might put the company at a serious competitive disadvantage?
1.4. Go on a listening tour: when it comes to CSR, “Management never knows what it wants but will like what you get.” Building a CSR platform involves a mix of “tenacity and finesse” says Andrea Sullivan. People want to be engaged but you need to find what resonates for them.
1.5. Define your terms. My advice then and now has always been to get out on the table the various concepts that CSR may connote for colleagues, and never assume that everyone sees CSR the same way.
1.6. Create a CSR culture
CSR Beginner’s Checklist
Mission Alignment: Get support from the top. Set your initial goals and objectives so they are strongly aligned with the mission and business goals already embraced by the organization’s leadership.
Quick Wins: Pick the low-hanging fruit. Identify existing efforts and fold them into your CSR story.
SWOT Analysis: Plan your efforts based on your analysis of your organization’s strengths, weaknesses, opportunities, and threats.
Term Definitions: From the start, get out on the table the various concepts that CSR may connote for colleagues, and never assume that everyone sees CSR the same way.
Listening Tour: Test market your thoughts with colleagues and listen for feedback and fresh perspectives. All this early research and analysis will pay off later when you need to make a case for CSR funding and other resources with your organization’s top decision-makers.
Company Culture: Seek CSR opportunities that are best aligned with the company’s culture and can contribute to strengthening it. Look for socially responsible initiatives that express your organization’s agreed-upon brand values.
Building your CSR Platform
LEGO’s distinction as the world’s most powerful brand. Company’s mission through three ambitious ESG objectives. These three ESG objectives gave birth to a series of strategic initiatives. These initiatives have been crucial in LEGO’s turnaround by integrating CSR directly into its business operations. You and your company can take a page of the LEGO playbook by working to interpret your company’s mission statement and business goals through a similar CSR lens.
2.1. Building consensus and Support: Sierra Club implemented sustainability program can contribute three major strategies to an organization: “a bottom-line strategy to save costs, a top-line strategy to reach a new consumer base, and a talent strategy to get, keep, and develop creative employees.” Your CSR program follow four keys of branding success, as outlined by the Interbrand consulting group: clarity, commitment, responsiveness, and governance. Be clear about what CSR means for your organization. As the CSR platform launches and develops, you will need to remain in campaign mode, always reaching out, creating new initiatives, and delivering updates to attract still more momentum for CSR. Demonstrate and communicate your commitment. Simply Googling “CSR Resources” will provide you with some of the most current and frequented sources. Make responsiveness a top priority. Nurture support from the top of the organization. Keep your top contacts in the company informed, involved and consulted. When company leadership is missing, it is too easy for CSR to take on the aura of a “nice to have” exercise, and not the mission-critical, brand-building, employee-morale boosting enterprise that it can be.
2.2. Strategy execution: Support existing activities. Start small and allow colleagues to pick up your tune. Put your money where your mouth is.
2.3. The power of networking with CSR colleagues: The professional listening tour. Start your own CSR association. Convene and Connect
3.1. Employees – The Bullseye: Particularly among younger employees, there is a belief that CSR is something the employer should provide, no different than any other item in their benefits package. It is good for team building, fostering a shared sense of purpose and overall morale. At its best, CSR makes a difference, and in doing so, makes employees feel better about themselves, their colleagues and their employer. In everything you do, using social media platforms from Facebook to Instagram to WeChat is essential to your success with CSR campaigns. As numbers of Millennials and younger digital natives increasingly predominate in the workplace,
3.2. Customers – The Middle Ring of the Bullseye: They like companies that make them feel good about associating with them. Authenticity and caring to make a difference need to be part of your company culture.
3.3 The Outer Ring of the Bullseye: Community and the World: We believe it is important to regularly review our stakeholder identification process,” says John Cheh, Vice Chairman and CEO of at Esquel Group, the textile manufacturer. “It is about building relationships that share common values and creating synergy.” Esquel’s broad list of stakeholders include the Fair Labor Association, Sustainable Apparel Coalition, and all the suppliers, communities, and regulatory agencies that they are involved with.
The broadest, most inclusive business alliance promoting CSR globally is the UN Global Compact. All 13,000 member CEOs and their employees have signed on to principles-driven business practices that grow their enterprises while pursuing the United Nations’ list of 17 Sustainable Development Goals (SDGs) by 2030.19
Iterate: The question is, how to try again, how to re-think, re-adjust or take a new path.
4.1. No workplace is perfect
4.2. Volunteering ups and downs
4.3. Learn from others’ mistakes: the risks of combining CSR with marketing (greenwashing, clumsy advertising, product gimmickry, awkward corporate donations or off-message sponsorships).
4.4 Never Stop Taking Chances: Measure What is Material. “In God we trust; all others must bring data.” – Jack Welch
5.1. Measuring CSR Impact
For other CSR projects, you can begin the task of measuring and tracking them with the help of KPIs related to these four basic measures: Inputs Outputs Outcomes Impacts
Basically, a CSR outcome is about your company. A CSR impact is about your stakeholder. For instance, if your company installs high-efficiency lighting as a part of a sustainable energy initiative, the reduced dollars spent on electricity is an outcome. The avoided pounds greenhouse gases entering the environment is the impact.
5.2. Integrated ESG Reporting
Leading companies have responded by moving toward ESG reporting that is integrated with their financial reporting. More than 8,000 companies globally are using GRI to share the results of their CSR efforts alongside of their financial reporting. A sound approach is to use GRI to identify the key drivers that would appear in your company’s report, and then take note of what public companies in your industry or sector are doing along these lines. An enormous library of GRI reports is available for review at the UN Global Compact website (UNGC.org).
5.3. Communicating Your Results
The UN Global Compact has developed an exceptionally useful online tool called the Value Driver Model, which can help you assess and communicate the financial impact of your CSR strategies. The model uses common business metrics to illustrate how corporate sustainability activities contribute to overall company performance in three basic areas:
Growth – Revenue growth from sustainability-advantaged products, services, and strategies.
Productivity – Total annual cost savings (and avoided costs) from sustainability-driven productivity initiatives.
Risk Management – Sustainability-related reductions in risk-exposure that might otherwise impair the company’s performance.
5.4. The rise of the ratings
5.5. How CSR metrics can shake the World: industry or within its community, it is worth considering how you can extend the use of your internal metrics for the common good, and enhance your reputation among some of your most important customers, suppliers, and other stakeholders. As CSR becomes increasingly easier to measure and compare from one company to the next, socially irresponsible companies will find it increasingly difficult to remain viable in the Caring Economy. The Campaign is Ongoing
6.1. The future of work: Millennials and Generation Z are career nomads willing to move to another job if they do not feel their workplace offers them a sense of purpose and treats employees fairly. The term “holacracy” has emerged to describe a form of organization that is both “holistic” and “democratic” in its power structure. Quoting Darwin’s Origin of Species, Hsieh points out, “It’s not the fastest or strongest that survive. It’s the ones most adaptive to change.”
6.2. The future of commerce
6.3. The future of governance: On its website, the B-Team explains the origin of its name: “Plan A – where companies have been driven by the profit motive alone – is no longer acceptable. It’s time for Plan B.” by the 2016 “Commonsense Principles of Corporate Governance,” issued by an ad hoc group of U.S. business leaders, including JPMorgan, Berkshire Hathaway, Verizon, Vanguard, and BlackRock. The full list of principles is available at www.GovernancePrinciples.org.
LEED (Leadership in Energy and Environmental Design) certification was once a somewhat rarified, high-end discipline.
7.1. Aim High
7.2. Declare Your Values
7.3. Rethink Your Culture
7.4. Raise the Bar
7.5. Invest in People: “At Esquel, we do not see CSR as a defensive strategy, in reaction to international criticism of working conditions in regions with low cost labor. Rather, we would like to set a positive example and prove that a company can be both profitable and committed to sustainability and worker welfare.
7.6. Break Boundaries
7.7. Share What You Know: Go Open Source
7.8. Partner for Progress: A CSR program that is limited to philanthropic giving misses out on truly participating in the Caring Economy.
7.9. Imagine New Paradigms
7.10. See Your Evangelist in the Mirror: The trends are your friends. Churchill, “We make a living by what we get. We make a life by what we give.” It all matters in the Caring Economy. Doing the right thing, by the way, means doing it before it is expected of you. There is no constant in this new world except change.