Corporate Social Responsibility and what it means for your company Prepared for AIM-Progress June 2015 Simon Gargonne Senior CSR Analyst EcoVadis
Moving beyond compliance Implementing a CSR Management System EcoVadis Solution and Approach
What is Corporate Social Responsibility?
Let s call this compliance.
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
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
Increasing adoption of standard metrics for sustainability
INTERNATIONAL CSR INITIATIVES
NATIONAL CSR INITIATIVES
Moving Beyond Compliance Implementing a CSR Management System EcoVadis Solution and Approach
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
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)
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").
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
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
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
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
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
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
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)
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 14001 (Env Management)
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
Moving Beyond Compliance Implementing a CSR Management System EcoVadis Solution and Approach
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