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Introduction to CSR and the role of the association Indonesian - - PowerPoint PPT Presentation

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Introduction to CSR and the role of the association Indonesian Business Association Delegation to Canada Coro Strandberg Strandberg Consulting September 16, 2016 conferenceboard.ca The Conference Board of Canada Insights. Understanding.

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conferenceboard.ca

Introduction to CSR and the role of the association

Indonesian Business Association Delegation to Canada

Coro Strandberg

Strandberg Consulting September 16, 2016

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Our Mission

We are dedicated to building a better future for Canadians by making our economy and society more dynamic and competitive. We are Canada’s foremost independent and not-for-profit applied research organization.

The Conference Board of Canada

  • Insights. Understanding. Impact.
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The Corporate Responsibility & Sustainability (CR&S) Institute brings together business, industry, government, academia and civil society as partners to envision a sustainable future and identify corporate responsibility and sustainability challenges and opportunities. Together, we gain knowledge and develop insights into how these challenges can be met and opportunities realized.

About the Corporate Responsibility & Sustainability Institute

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Why

  • s
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  • What is CSR
  • What is the business case
  • What does best practice look like
  • What is the role of the industry association

to advance CSR among its members

Overview

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  • What does CSR mean to you, your
  • rganization, your members?
  • What CSR projects do you have underway?
  • Share your discussion with the group.

Partner Discussion

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Social and environmental performance management

Definition

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Global CSR Standards

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Global Standards

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Responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that:

  • contributes to sustainable development, including

the health and the welfare of society

  • takes into account the expectations of stakeholders;
  • is in compliance with applicable law and consistent

with international norms of behaviors

  • is integrated throughout the organization and

practiced in its relationships

Social Responsibility

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Development that meets the needs of the present without compromising the ability of future generations to meet their

  • wn needs.

Sustainable Development

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7 core principles of ISO 26000

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Astra’s environmental programs focus on:

  • a. Nature conservation
  • b. Environment sanitation
  • c. Campaign in Environment-

Friendly Lifestyle

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Women’s Micro-finance

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Oxfam donut economics

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Sustainability Drivers

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CSR Trends

  • Population, urbanization & middle class

growth

  • Food, water & material scarcity
  • Climate change
  • Unemployment/underemployment
  • Rising inequality, obesity, aging/longer lives
  • Transparency & connectivity
  • Consumer value shift
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Legal Framework

  • Supreme Court of Canada (2008)
  • Not confined to short-term profit but if ongoing concern were

to look to long-term interests of the company

  • Balance stakeholder interests “in accordance with their

fiduciary duty to act in the best interests of the corporation, viewed as a good corporate citizen”

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Small Groups

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  • Discuss the CSR trends: which are relevant to your

industry in 5-10 years? (slide 19)

  • Which create risks?
  • Which create opportunities?

Discussion

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BUSINESS BENEFITS OF CSR

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Compelling academic evidence shows firms with high CSR ratings have lower risk and exhibit financial out-performance

Source: Deutsche Bank Group, “Sustainable Investing: Establishing Long-Term Value and Performance” 2012

Financial Performance

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Top Line Benefits

  • Attract & retain customers
  • Increase revenues
  • Engaged employees
  • Innovation & opportunity
  • Brand & reputation

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Bottom Line Benefits

  • Reduce operating costs
  • Management quality
  • Regulation & compliance
  • Employee recruitment/retention
  • Access capital

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Partners

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How to develop a CSR Strategy?

Research Prioritize Target Govern Implement Monitor Report Improve

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  • Risk and opportunity analysis
  • Best practice scan
  • Stakeholder consultation
  • Materiality analysis

Develop Strategy

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Best Practice Maturity Map

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IS YOUR COMPANY TRANSFORMATIONAL?

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Transformational Company Framework

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Unilever Sustainable Living Plan

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https://www.youtube.com/watch?v=utSYAkQ i5hY

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Engage Stakeholders

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Map Stakeholders

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Stakeholder engagement continuum

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Stakeholder Engagement Plan 2014 – 2016, e.g.:

  • Business units and functions commit to specific

actions

  • Adopt stakeholder mapping and planning for new

ventures

  • Stakeholder relationship management software to

enhance stakeholder and issue mapping

  • Complete and implement community engagement

framework to deepen engagement and collaboration with local communities in Canada, including aboriginal communities

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Setting priorities

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Conduct Value Chain Assessment

  • Assess impacts
  • Up & downstream
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Our Carbon Footprint, 2013

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Materiality Analysis

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BASF

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Small Groups

  • Draw the value chain of your

sector on the flip chart

  • Using post its, identify the

social or environmental impacts (hot spots) along the value chain

  • Report back
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CSR Phases

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CSR Continuum

Compliant Operational Strategic Purpose

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  • https://www.youtube.com/watch?v=D9chV

Ouubtg

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Purpose

Social Purpose Business

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Spheres of Influence

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“Our goal is to create positive member and community impact through all our operations—from how we make money to how we spend and invest it. We’re committed to finding new and better ways to use all our resources, people and capital to create large-scale positive impacts.” https://www.youtube.com/watch?v=3OF_N72l15k

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Performance Management

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Governance: The Board’s Role

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Embedment Managements Role

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Business Case for IAs

  • Fulfill association goals
  • Build industry reputation & brand
  • Attract & retain members
  • Build positive government & NGO relations
  • Enhance employee recruitment & retention
  • Identify industry priorities
  • Enhance innovation
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Rise of Alternatives

  • Sustainable Apparel Coalition
  • Sustainable Luxury Working Group
  • Centre for Technology and Sustainability
  • Sustainable Shipping Initiative
  • Clean Cargo Working Group
  • Global Alliance for Banking on Values
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Role of Industry Association: Best practices

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CSR Management Model for Industry Associations

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Best Practices: Research Phase

  • Understanding of long-term sustainability risks and
  • pportunities
  • Agreement on business case and member value

proposition

  • Knowledge of member and external stakeholder

priorities

  • Knowledge of best practices – company and IA
  • Agreement on gaps and opportunities
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Best Practices: Commit Phase

  • Sustainability definition
  • Sector-wide sustainability vision principles and vision
  • Sector-wide goals
  • “Get house in order” program
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Mining Association of Canada

  • Towards Sustainable Mining
  • Brundtland definition of sustainability
  • Guiding Principles, e.g.:

– Involve communities of interest – Sustainable resource stewardship – Health and safety of all – Respect human rights and First Nations – Best international practices – Respond to community priorities – Provide lasting community benefits

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Forest Products Association of Canada

Vision 2020: By 2020 the

Canadian forest products industry will power Canada’s new economy by being green, innovative and open to the world

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Best Practices: Strategize Phase

  • Action plan, metrics and targets for sustainability

program

  • Stakeholder engagement (panels, dialogues,

consultations)

  • Strategic partnerships
  • Industry collaborations
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FPAC industry goals

Products:

  • Generate an additional $20B in economic activity

from new innovations and new markets Performance:

  • Deliver a further 35% improvement in the sector’s

environmental footprint People:

  • Renew the workforce with at least 60,000 new

recruits including women, Aboriginals and new Canadians

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MAC Community of Interest Advisory Panel

  • Independent, multi-stakeholder group
  • 12 – 15 people, including Aboriginal groups,

communities, environmental and social NGOs, labour and financial organizations

  • Select MAC Board members sit on the Panel for mining

industry perspective

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  • Tools
  • Training
  • Roundtables / work groups
  • Peer learning
  • Mentor programs
  • Communities of Practice

Best Practice: Educate Phase

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MAC TSM Training

8 courses, 1 hour each:

  • Understanding TSM
  • Applying the TSM Protocols
  • Energy Use and Greenhouse Gas Emissions

Management

  • Crisis Management Planning
  • Aboriginal and Community Outreach
  • Safety and Health
  • Biodiversity Conservation Management
  • Tailing Management
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  • Sector performance indicators/metrics
  • Graduated performance levels
  • Sector benchmarking
  • Track sector performance
  • Mandated performance requirements

Best Practices Measure Phase

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MAC Six Protocols – 23 indicators FPAC – 12 Environmental Performance Indicators Energy and GHG emissions management GHGs and energy use Biodiversity conservation management (new) Species at risk Aboriginal and community

  • utreach

Sustainable forest practices Tailings management Waste and recycling Health and safety (new) Water use Crisis management Air quality

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  • Certification is an FPAC membership requirement
  • Companies must certify to one of these standards
  • Forest Stewardship Council (FSC)
  • Sustainability Forestry Initiative (SFI)
  • Canadian Standards Association (CSA)

Requirements

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  • Report sector performance
  • Third party audits (external verification)
  • Public communication programs
  • Proactive government engagemt

Best Practices: Report Phase

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Best Practices: Public Sector Reporting

MAC FPAC

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FPAC Proactive Public Engagement

  • “We are supportive of WWF’s initiative calling on
  • thers to embrace a global target of zero net

deforestation by 2020. The single most powerful measure the world can take to address climate change is to end deforestation. And the first step must be to take aggressive action against illegal logging,” said Mr. Lazar.

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Elements of an IA Sustainability Program

  • 1. Vision

Sustainability vision, goals, targets

  • 2. Participation

requirements Membership, standards/ certifications, monitoring, reporting

  • 3. Reporting

Sector reports, external/ internal auditing

  • 4. Research & training

Guides, tools, workshops, case studies

  • 5. Networks

Meetings, communities of practice, events, etc.

  • 6. Promotion

Website, awards, media

  • 7. Engagement &

partnerships Advocacy, member/ stakeholder/ government engagement, partners & funders

  • 8. Targeted programs

Supply chain, climate change, etc.

  • 9. Governance

Staff, board, advisors (members, stakeholders) 95

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Partners

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Resources

CSR Guide for Canadian Business https://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/h_rs00599.html Sustainability Roadmap for Canadian SMEs https://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/h_rs00174.html Global Qualities of a Transformational Company http://cbsr.ca/transformationalcompany/ Global Business Case http://projectroi.com/ Global Sustainability Risks https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/building-business- value.pdf Industry Association Sustainability Guide http://corostrandberg.com/publication/roadmap-to-sustainability/ IA Sustainability Benchmark http://corostrandberg.com/wp-content/uploads/2012/07/industry-assoc-sustainability-checklist.pdf Business Case http://projectroi.com/

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Thank you!

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Contact: Wendy Mitchell Director, Corporate Responsibility, Sustainability & Stakeholder Relations 613-526-3090 ext. 472. Mitchell@conferenceboard.ca And follow us on twitter @CBoC_CSR

For more information about the Corporate Responsibility & Sustainability Institute

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