Five Stages of Stage 1 Corporate Maturity Denier Business case Irrelevant State of play Yet to meet prevailing legislation Tone from top: Active / passive Leadership resistance Governance & Board none oversight Key Performance none Indicators KPI Strategic business Little activity units and functions Everybody’s business: Poor, ad hoc People management Everybody’s business Own volition Below radar Value-chain: Supply nothing KM and training nothing Communications: no Explaining to investors Stakeholder Unilateral Relationships Crisis management Transparency & Little reporting Specialist CR function Marginal: Staff drive it all Stage 2 Complier Licence to operate Minimalist approach – simply complying with legislation Lip Service inconsistent If at all, risk-related Some as start move to 3 Stage 3 Risk-mitigator Commercially strategic Stage 4 Opportunity maximiser Entrepreneurial and highly innovative Sustainable development Extending the business case contributing to into new territory commercial success Steward, Champion, Spectrum of views Able to articulate link to business purpose Set personal example Lead director or board Linked to strategy and new committee business / valueLink to Risk Register enhancement Linked to appraisals Link rewards/promotion Stage 5 Leader Long-term, macro-economic benefit Creating new models for business and economic development Visionary, Ahead of the Pack Actively recruit other companies Promoting governance of responsibility to others Published KPI rigorously promoted and managed Showing innovation internally and externally Compliance with HQ requests / patchy Perhaps a few vanguards Employee satisfaction focus confirm run business in line with Company’s principles People development Employee engagement Sophisticated understand when adopt, adapt, innovate, Great place to work Employee advocacy Specific tasks champions Spreading to other companies ESG in tenders Suppliers audits Social entrepreneurs encouraged Suppliers knowledge nothing Start to incorporate specific issues Proactive to SRI Reactive mainstream Linked to mgt devpt, appraisals Able to explain how ESG affects business value Sharing knowledge with others Mutual Influence Towards engagement Partnership engagement Public Reporting May use GRI External assurance Assurance Linked to management processes eg EFQM Functional Ownership Organizational Alignment, x-Functiona Reactive to SRI Interactive Crisis to stakeholder management Public Relations Flank Protection Pro-forma Little hard/longitudinal data Limited, CR Function Copyright © Cranfield University 2012 Defined mindsets, behaviours, competences integrated Promoting good practice Investor education Multi-Organization Alliances Actively seeking new forms of collaboration Full Exposure Reporting fully integrated Mainstream: Business Drives