csr-facts-and-figures-slides

Corporate Social Responsibility (CSR) – The FactsYou Should KnowNovember 2013

Contents• Introduction• CSR: What is it?• Public Perceptions of Companies CSR Activities• Business Leaders Views on CSRo Consumers: Interested but Conflictedo Investors: Growing Engagemento Accelerating Progress: Towards Transformation• Employees Opinions on CSR• Graduate Perceptions of CSR• Risk of Weak CSR• CSR: Where's the Value?• References

Introduction• Corporate Social Responsibility (CSR) hascome a long way in the last couple ofdecades. From being on the periphery ofbusiness strategy in the 80’s and 90’s tonow becoming an essential valuegenerating strategy for all forward lookingbusinesses.• Upwards of 85% of FTSE100 companiesnow report on their CSR activities.• But how do we demonstrate the importanceand value of CSR today? This slide showhighlights some of the most recent factsand figures in answer to this question.

Introduction; What is CSR?Effective CSR is about business acknowledging the social andenvironmental impacts of its operations and the related expectations of it’swider stakeholder groups; implementing strategies to deliver on theseexpectations in a way that generates positive social and environmentalbenefits whilst simultaneously delivering value (whether financial orreputational) for the business itself.

Public Perceptions of CSR ActivitiesThe general public and the media are increasingly focusing on thesocial and environmental performance of companies. This focus canhave a direct impact on reputation, share price and ultimately sales.• 83% of people will trust a company more if it is seen as beingsocially and environmentally responsible;• 68% of people agree that large companies should be activelyinvolved in solving social/environmental problems;• 70% of people in UK believe companies and brands should play arole in improving our quality of life and well-being.D.Woods (2011)Regardless of industry, companies not proactively focusing ontheir social and environmental impacts are risking reputation andas a result value

Business Leaders Views on CSRA recent survey by the UN Global Compact and Accenture hasgiven a unique insight into business leaders‘ views on thepathway towards a sustainable economy. The survey included1,000 CEOs across 103 countries and 27 industries. Some ofthe most notable results are highlighted on the following pages.

Business Leaders Views on CSR• Only 32% of CEOs believe that the global economy is on track tomeet the demands of a growing population;• Only 33% believe that business is making sufficient efforts to addressglobal sustainability challenges;• 84% believe that business should lead efforts to define and deliversustainable development goals;• 37% see the lack of a link to business value as a barrier toaccelerating progress.P.Lacy and R.Hayward (2013)Moving forwards leading businesses will continue to focus on CSRas a core business strategy. Though there may currently bequestions over the link between business value and CSR, recentresearch shows that companies committed to CSR generate onaverage 18% higher profits than those without.

September 2012 World Archery Newsletter Page 8Progress for Visually ImpairedAt the Paralympic Games in London a meeting took place between World Archery andrepresentatives of Blind Archery in Great Britain. As World Archery Secretary General Tom DIELENnoted, "there have been so few people entering the events World Archery has promoted, it has notbeen possible to hold a competition." It appears the major issue for athletes who have a limitedamount of vision, is they want to be able to use the little they have and not wear a blind fold.At present the rules have just a single class for men and women regardless of whether they shootrecurve or compound. The Visually Impaired (VI) round is shot at 30m with different sized targetfaces used to imitate longer distances. At this 30m distance the bow types are very similar inperformance as are the men and women.David POYNER of Blind Archery has proposed a change which we all hope will encourage moreathletes to compete in archery. It is suggested there be two sport classes for VI just as there aredifferent classes for those with a physical disability:‣ B1 for those totally blind archers who would continue to wear a blind fold.‣ B2 and B3, who have small amounts of vision, would use a tactile sight and not wear a blindfold.World Archery is seeking to hold a three-day seminar/competition in June or July 2013 at whichthere would be an exchange of information, coaching techniques, classification and, on the finalday, a competition. If the competition is successful and a significant number of people participate,there may be the opportunity to include a VI division in the World Archery Para Championships inBangkok in November 2013. It is likely that the seminar/competition would take place in GreatBritain, and ArcheryGB is considering what may be possible in terms of facilities and logisticalsupport.Tom DIELEN thanked David POYNER for his contribution which followed a BBC radio debatebetween the two men and, with Rita VAN DRIEL, chairwoman of the World Archery Para-ArcheryCommittee, assured the VI community of improved support and communication.Para-Archery World RankingThe Para-Archery World Ranking lists have been updated after the London 2012 Paralympic Gamesas of 8 September 2012 and are available on www.worldarchery.org, section Para-Archery >Events > World Ranking.News from Paralympic Committee"Best ever Paralympic Games" was the way IPC President, Sir Philip CRAVEN, concluded his ClosingCeremony speech. And he was so right! The setting for Para-Archery at the Royal Artillery Barrackswas excellent, the organisation ran smoothly (any glitches were not seen by audiences!!) and thestandard of shooting was very high. The stands were packed full after the first day of Eliminationsand all archers received their fair share of support even if they were against GB archers.The only complaint, and this was the same around the world, was the lack of TV coverage.Everyone wanted to see more of the Paralympics and especially they wanted more archery. WorldArchery provided material through its website including real time results in the Para-Archery taband the highlights of each session including interviews with archers on the "front page" of its news.Next Year and Para-Archery ActivitiesWorld Archery is exploring the possibility of gathering together athletes and coaches involved inarchery for the Visually Impaired (VI). In addition to discussing classification, sports categories andrules, it is hoped to cover coaching techniques and perhaps a competition. More information on VIarchery will be published as it becomes available.The most important event for Para-Archery in 2013 will be the World Championships to take placein Bangkok, Thailand, in early November. The tournament will follow the World Archery rules sorecurve archers will shoot the match play using the 70m Olympic round and the compound archerswill shoot the 50m compound round. Full details of the World Championships will be given as theybecome available.

Investors: Growing engagement• Only 12% of CEOs currently regard investor pressure as among theirchief motivators on CSR/Sustainability;• 23% see investors as an important stakeholder in guiding theirapproach;• 31% believe that their company's share price currently includes valuedirectly attributable to CSR/Sustainability initiatives;• 69% believe that investor interest will become an increasinglyimportant factor.P.Lacy and R.Hayward (2013)Though currently investors may not be heavily influential in terms of acompanies CSR practices, CEO’s are expecting this to increase in thecoming years, in particular as they become more educated about thevalue CSR can generate for their investments, as well as riskmitigation.

Employees’ Opinions on CSR• Companies with more engaged employees perform better financially,with productivity increasing on average by 18% and operatingmargins up by 27%;• 57% of employees want their company to do more in relation to CSR;• 63% of employees believe that having time off during working hoursto commit to charitable causes would significantly increase employeeengagement;• 49% of employees are more likely to stay with an employer thatencourages charitable giving;GALLUP (2013) & D.Woods (2011)Employee engagement is crucial to long-termbusiness success and productivity. An effectiveCSR strategy incorporates this as a core focus ofits activities

Risks of weak CSR practicesDemonstration of strong CSR activities can generate significantlypositive reputational impacts for business. Similarly poor / weak CSRpractices can be extremely damaging to reputation.

CSR – Where’s the Value?• Investors, have in the past, been hesitant when investing inCSR/Sustainability initiatives. This is predominantly due to a lack ofevidence proving that CSR/Sustainability strategies can have amaterial effect on a company's reported financial performance.• There have recently however been new efforts to communicate thevalue of sustainability. This communication has shown that thesestrategies have the potential to drive revenue growth throughattracting like minded clients / customers, improve employeeproductivity, reduce operational costs (through environmentalefficiencies) and measurably reduce key CSR-related risks torevenue and reputation.• Companies with a public commitment to CSR on average performbetter on 3 out of 4 financial measures than those without. Thesecompanies also have over 18% higher profits on averageInstitute of Business Ethics

CSR – Where’s the Value?• Clorox - Green Works Product Line: 40% share of naturalcleaners market, $200 million annual revenue during2008.• Pirelli - green performance products: 45% of 2012revenue.• Philips - green products: 45% of $24 billion annualrevenue in 2012 (with goal of converting 100% of productline).• GM - recycling & reusing manufacturing waste: $1 billionannual revenue, 2012.C.Krosinsky & D.Lubin (2013)

4Front Consulting – What we do• 4Front Consulting is a specialist CSR and Sustainabilityconsultancy.• We work alongside companies to help them develop,enhance and implement CSR and Sustainability strategiesthat deliver real value to their business whilst alsominimising potential risks.• If you would like to learn more about how CSR/Sustainability can drive value for your business, please feelfree to contact us by either emailingkate@4frontconsulting.com or calling +44 (0)20 8332 3912.

References• C.Krosinsky and D.Lubin (2013) theguardian.com,http://links.sharedby.co/share/PZ4mdj, 04/10/13.• C.Carson (2013) GreenBiz.com, Why firms fall short on touting theirsustainability work, 04/10/13.• P.Lacy and R.Hayward (2013) The UN Global Compact – AccentureCEO Study on Sustainability 2013, 04/10/13.• D.Woods (2011) CSR could be the key to boosting engagement andproductivity, 04/10/13.• GALLUP - http://www.gallup.com/strategicconsulting/enus/employeeengagement.aspx