Corporate Social Responsibility and what it means for your company
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1 Corporate Social Responsibility and what it means for your company Prepared for AIM-Progress June 2015 Simon Gargonne Senior CSR Analyst EcoVadis
2 Moving beyond compliance Implementing a CSR Management System EcoVadis Solution and Approach
3 What is Corporate Social Responsibility?
4 Let s call this compliance.
5 REACTIVE LEGAL COMPLIANCE PROACTIVE BUSINESS ADVANTAGE Performance Laws, regulations, codes of conduct Dual benefit Create Value Identify top suppliers, build relationships & opportunities for innovation & growth Avoid legal issues Ensure compliance, & contain risk
6 Benefits of going beyond compliance TOPIC COMPLIANCE (REACTIVE) BEYOND COMPLIANCE (PROACTIVE) BENEFITS Employment of people with disabilities Ley General para la Inclusión de las Personas con Discapacidad Development of disabled workers employment policy and objective 3% workforce and measures A positive image (internally and externally) Reduction of ISR (articulo 186 Ley ISR) Maximizing use of resources: packaging Ley General para la Prevención Y Gestión Integral de Los Residuos Packaging weight and size reduction, recycled materials used (e.g. replacement of PVC with PET) Cost reduction due to less materials, optimization of shipments Waste reduction Competitive advantage Energy management Normas Oficiales Mexicanas en Eficiencia Energética Vigentes Implementation of an energy management system, i.e. policy, objectives, action plan, performance audits and review (e.g. ISO 50001) Reduction of energy costs and GHG emissions Continuous improvement of energy performance Eco-Crédito Empresarial Enhanced reputation
7 Increasing adoption of standard metrics for sustainability
8 INTERNATIONAL CSR INITIATIVES
9 NATIONAL CSR INITIATIVES
10 Moving Beyond Compliance Implementing a CSR Management System EcoVadis Solution and Approach
11 What is a Management System? A management system is a framework of processes and procedures used to ensure that an organization fulfills all tasks required to achieve its objectives. PROCESS OBJECTIVE PROCEDURE
12 What is a Management System? About Management Systems A few examples of international standards setting the requirements for management systems are: Quality Management System (e.g. ISO 9001) Environmental Management System (e.g. ISO 14001) Health and Safety Management System (e.g. OHSAS 18001)
13 What is a Management System? Continuous Improvement PDCA The PDCA model provides a method to bring your company closer to the desired outcome. PLAN Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). DO Implement the plan and execute the process and establish a system to collect data. ACT Establish corrective actions where significant differences are identified between expected and planned results. Click each stage of the PDCA model to learn more about it. CHECK Study the actual results (measured and collected in "DO" ) and compare them against the expected results (targets or goals from the "PLAN").
14 What is a Management System? About Management Systems An effective management system allows companies to improve performance through a process of continuous improvement. Improvement directly supports Improvement efficient resource use business continuity risk reduction streamlined productivity
15 What is a CSR Management System? ENVIRONMENT Energy consumption & GHG (CO2) Water Biodiversity Local Pollutions Materials, Chemicals, Waste Product Use Product End-of-Life Customers Health & Safety Sustainable Consumption SOCIAL Employees Health & Safety Working Conditions Social Dialog Career Management & Training Child & Forced Labor Non-Discrimination Fundamental Human Rights ETHICS SUPPLY CHAIN Corruption & Bribery Anticompetitive practices Data Privacy & Protection Responsible Marketing Suppliers environmental performance Suppliers social practices
16 What is a CSR Management System? ENVIRONMENT Energy consumption & GHG (CO2) Water Biodiversity Local Pollutions Materials, Chemicals, Waste Product Use Product End-of-Life Customers Health & Safety Sustainable Consumption ETHICS Marketing & Design Services SOCIAL Employees Health & Safety Working Conditions Social Dialog Career Management & Training Child & Forced Labor Non-Discrimination Fundamental Human Rights SUPPLY CHAIN Corruption & Bribery Anticompetitive practices Data Privacy & Protection Responsible Marketing Suppliers environmental performance Suppliers social practices
17 What is a CSR Management System? ENVIRONMENT Energy consumption & GHG (CO2) Water Biodiversity Local Pollutions Materials, Chemicals, Waste Product Use Product End-of-Life Customers Health & Safety Sustainable Consumption ETHICS Manufacture of food products SOCIAL Employees Health & Safety Working Conditions Social Dialog Career Management & Training Child & Forced Labor Non-Discrimination Fundamental Human Rights SUPPLY CHAIN Corruption & Bribery Anticompetitive practices Data Privacy & Protection Responsible Marketing Suppliers environmental performance Suppliers social practices
18 What is a CSR Management System? ENVIRONMENT Energy consumption & GHG (CO2) Water Biodiversity Local Pollutions Materials, Chemicals, Waste Product Use Product End-of-Life Customers Health & Safety Sustainable Consumption ETHICS Manufacture of paper products SOCIAL Employees Health & Safety Working Conditions Social Dialog Career Management & Training Child & Forced Labor Non-Discrimination Fundamental Human Rights SUPPLY CHAIN Corruption & Bribery Anticompetitive practices Data Privacy & Protection Responsible Marketing Suppliers environmental performance Suppliers social practices
19 What is a CSR Management System? A CSR Management System implies the adoption of a number of indicators. The management system should be based on sustainability topics that are relevant to that sector Sector relevant CSR topics Policies Actions Results Policy/Mission Statement Endorsement of CSR Initiatives Measures/Actions Implementation Coverage Certificates/Labels Reporting/Key Performance Indicators (KPIs) 360
20 What is a CSR Management System? The 7 Management Indicators Policies Policy/Mission Statement: mission/value statements, commitments, principles, objectives, policies issued by the company. Energy Target: We commit to reduce electricity use per product manufactured by 20% over the 5 next years Written Ethics Policy: (e.g. Code of Conduct) Policy on environmental issues Endorsement of CSR initiatives: endorsement of CSR external initiatives, principles, active participation in international/sector CSR initiatives. Endorsement of ESR program (CEMEFI) Endorsement of UNGC & active participation in Mexico Local Network (Pacto Global Mexico)
21 What is a CSR Management System? The 7 Management Indicators Actions Measures/Actions: concrete actions put in place to support commitments, objectives and deployment of policies (e.g., training, manual procedures). Health & Safety Manual Anti-corruption training Suggestion box or grievance mechanism Implementation Coverage: roll out of actions throughout the company to support commitments and/or policies. Certificates/Labels: certifications received for the management system and/or labels assigned to the products/services delivered. 100% of employees covered by employee satisfaction survey 65% employees covered by collective bargaining agreement Industria Limpia Marine Stewardship Council label ISO (Env Management)
22 What is a CSR Management System? The 7 Management Indicators Results Reporting/KPI: quality and level of reporting readily available to stakeholders. Average face to face training hours per employee on business ethics (e.g. anti-corruption) Water consumption /m3 Electricity consumption / MWh Men/Women Ratio (%) Health and Safety statistics (frequency rate, severity rate, average of H&S training hours per employee) U.N. Global Compact Communication on Progress GRI G3.1 / GRI G4 based report Company CSR report available on corporate website
23 Moving Beyond Compliance Implementing a CSR Management System EcoVadis Solution and Approach
24 EcoVadis the #1 Supplier CSR Scorecard & Rating network Buyers 120 Global Multinationals Cumulative spend 1 trillion / year Suppliers Easy to use service for reporting & improving CSR performance: 20,000+ companies per year in 150 spend categories in over 100 Countries 21 CSR Criteria 70% are small- and medium-sized
25 An Easy Online Process We speak Support & Help EcoVadis is available to give you advice and answer your questions throughout the whole process, with our multilingual help center & hotline: support.ecovadis.com
26 Your CSR performance platform Assessment Results and CSR services are available on your EcoVadis Supplier Portal One powerful interface to access : Share your Scorecard with multiple clients (any EcoVadis customer) Your Scorecard: assessment results, strengths & weaknesses Corrective Action Plan Client A CSR document management Access your platform using a simple web link: no installation or hardware investment required Enhanced services (depending on your subscription level) Client C Client B
27 Providing documents: a key point for your CSR evaluation In order to rate your CSR performance, EcoVadis needs evidence to demonstrate your company s practices. You can upload any type of document that can reflect your company s commitment to CSR: Any type of supporting documents: written policies, reports, action plans, certificates, etc. All formats accepted: text, PDFs, web links, images, etc. Examples of documents collected * ISO Certificate Eco-label certification CSR report QHSE Charter RoHS Declaration for ML600G Internal Safety inspection report Business code of conduct Environmental impact assessment Health & Safety plan Quality Manual Accident Incident Rate Scorecard Supplier Audit Report (Factory X) REACH Declaration Employee Handbook 200X * For illustration only Home
28 Your Sustainability Scorecard Overall CSR Score Industry Benchmark* Strengths and Improvement Areas 360 Watch* * Premium and Corporate only Home
29 What are the benefits for your company? Understand Get expert insight on your CSR practices Benchmark your performance, explore sector details and practices* Learn how you are positioned vs competitors [Premium service] Communicate Share your EcoVadis results & respond to multiple clients CSR survey requests Enhanced communication tools* to highlight your good practices Improve Prioritize your actions for maximum R.O.I. Manage improvement plans directly online Collaborate with your clients and work smarter with interactive feedback Update Embrace a continuous improvement process With regular re-evaluation of your CSR performance External media/stakeholders watch * Protect your brand with 360 news monitoring *Premium and Corporate plans only E C O V A ECOVADIS D I C O 2014 N F I CONFIDENTIAL D E N T I A L
30 Thank You
31 Back Up Slides
32 32 Avoiding duplication of efforts
33 33 Platform & Service Features: Your industry CSR profile Criteria activated Amongst EcoVadis CSR criteria, check which ones are taken into account for your evaluation (non activated medium or high importance) CSR issues* Understand the major issues that your industry is facing. All the issues are linked with one of the CSR themes (environment, social, ethics or supply chain) Sector CSR info* Instantly identify the best practices and CSR initiatives in your industry Continuous regulatory watch * Premium and Corporate only
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