Understanding components of Triple Bottom Line (People/planet/profits)

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1 Understanding components of Triple Bottom Line (People/planet/profits) Focusing on what and why CSR & Introduction to ISO Unmesh Brahme, Yale World Fellow SustainabilityCXO Partners Bombay Chamber: Workshop on CSR 2 November 2012

2 Today See an overview of reporting frameworks in their relations to TBL Understand TBL itself: pros and cons through participant feedback See a case on NVG reporting Discussion Unmesh Brahme SCXO Partners 2

3 Triple Bottom Line Conduct business with focus on Social performance Environmental performance Commercial performance Devise systems to integrate within business functioning instead of post facto CSR Evolving CSR definition merging into sustainability? Concepts Good for society, good for business Reputation Others? Unmesh Brahme SCXO Partners 3

4 Sustainability Reporting A sustainability report is an organizational report that gives information about economic, environmental, social and governance performance For companies and organizations, sustainability the capacity to endure, or be maintained is based on performance in these four key areas An increasing number of companies and organizations want to make their operations sustainable Establishing a sustainability reporting process helps them to set goals, measure performance, and manage change. A sustainability report is the key platform for communicating positive and negative sustainability impacts To produce a regular sustainability report, organizations set up a reporting cycle a program of data collection, communication, and responses. This means that their sustainability performance is monitored on an ongoing basis. Data can be provided regularly to senior decision makers to shape company strategy and policy, and improve performance. Sustainability reporting is therefore a vital step for managing change towards a sustainable global economy one that combines long term profitability with social justice and environmental care Source: GRI Unmesh Brahme SCXO Partners 4

5 GRI Reporting Indicators Unmesh Brahme SCXO Partners 5

6 GRI Reporting Unmesh Brahme SCXO Partners 6

7 GRI Reporting Unmesh Brahme SCXO Partners 7

8 GRI Reporting Unmesh Brahme SCXO Partners 8

9 GRI Reporting Unmesh Brahme SCXO Partners 9

10 GRI Reporting Unmesh Brahme SCXO Partners 10

11 GRI Reporting Unmesh Brahme SCXO Partners 11

12 GRI Reporting Unmesh Brahme SCXO Partners 12

13 GRI Reporting Unmesh Brahme SCXO Partners 13

14 GRI Reporting Unmesh Brahme SCXO Partners 14

15 GRI Reporting Unmesh Brahme SCXO Partners 15

16 ISO ISO the International Organization for Standardization Membership of 163 national standards bodies from countries large and small, industrialized, developing and in transition, in all regions of the world Including BIS India ISO s portfolio of over 18,400 standards provides business, government and society with practical tools for all three dimensions of sustainable development: economic Environmental social Unmesh Brahme SCXO Partners 16

17 ISO Unmesh Brahme SCXO Partners 17

18 How ISO help organizations ISO will help all types of organization regardless of their size, activity or location to operate in a socially responsible manner by providing guidance on : Concepts, terms and definitions related to social responsibility Background, trends and characteristics of social responsibility Principles and practices relating to social responsibility Core subjects and issues of social responsibility Integrating, implementing and promoting socially responsible behaviour throughout the organization and, through its policies and practices, within its sphere of influence Identifying and engaging with stakeholders Communicating commitments, performance and other information related to social responsibility Unmesh Brahme SCXO Partners 18

19 What does ISO contain? The content of ISO is structured as follows : Foreword Introduction Scope Terms and definitions Understanding social responsibility Principles of social responsibility Recognizing social responsibility and engaging stakeholders Guidance on social responsibility core subjects Guidance on integrating social responsibility throughout an organization Annex A Examples of voluntary initiatives and tools for social responsibility Annex B Abbreviated terms Bibliography Unmesh Brahme SCXO Partners 19

20 National Voluntary Guidelines Released by the Ministry of Corporate Affairs in 2009 Applicable to all companies, including MSME Unmesh Brahme SCXO Partners 20

21 NVG: Principles Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Cradle to Grave v/s Cradle to Cradle Principle 3: Businesses should promote the wellbeing of all employees Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised Unmesh Brahme SCXO Partners 21

22 NVG: Principles Principle 5: Businesses should respect and promote human rights Principle 6: Business should respect, protect, and make efforts to restore the environment Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner Advertising and Media? Principle 8: Businesses should support inclusive growth and equitable development Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner Unmesh Brahme SCXO Partners 22

23 NVG: Process Unmesh Brahme SCXO Partners 23

24 NVG: Process Unmesh Brahme SCXO Partners 24

25 NVG: Process Unmesh Brahme SCXO Partners 25

26 NVG: Indicators Commitment of top management and supportive governance structures Policy Deployment and Process Management Sensitization and Training Stakeholder Engagement Monitoring and Evaluation Analysis and Improvement Continuous Innovation Disclosure Unmesh Brahme SCXO Partners 26

27 NVG: Reporting Unmesh Brahme SCXO Partners 27

28 Issues Reporting because there is a framework OR Reporting to capture real work and value Capacity of internal teams to manage reporting? Which framework? Where do we start? NVG: connecting glue? Unmesh Brahme SCXO Partners 28

29 Case: SEBI Mandated Funds Unmesh Brahme SCXO Partners 29

30 Case: SEBI Mandated Funds Unmesh Brahme SCXO Partners 30

31 Case: SEBI Mandated Funds Unmesh Brahme SCXO Partners 31

32 Exercise Each company mentions their CSR approach Discuss the following Strategy Impact Business and Social Footprint How do you report? What are the pitfalls? Unmesh Brahme SCXO Partners 32

33 SCXO Partners Framework A case for Inclusive Sustainability and Brand Conscience, two connector frameworks across GRI, NVG and ISO Begins with NVG, leads to GRI and ISO reporting Looks at real time impact, instead of post facto Encourages collaborative social responsibility in reference to HDI Index and UN Millennium Development Goals Unmesh Brahme SCXO Partners 33

34 Thank you Sources: Respective Guidelines, their documents and websites, unless otherwise mentioned Unmesh Brahme SCXO Partners 34