Cranfield University 12 June 2007
Corporate Responsibility Index
To help companies integrate corporate responsibility across the business
Sponsored by
What we will cover today
 Introduction to Business in the Community

BITC’s Corporate Responsibility Index in detail
- what is the CR Index?
- the CR Index model?
 What makes a Company that Counts?
 Our Crossroads!
Discussion Themes –
HOW TO BENCHMARK…
•
Changes in business model that promote/deliver
step change towards CR/sustainability?
•
Whether companies have a plan to deliver CR
change – beyond incremental target setting?
•
“Beyond Compliance” – rewarding opportunity
seeking/innovation?
Business in the Community
Set up in 1982 by business for business
Over 750 companies in membership (> 70 of FTSE100)
Over 2,000 engaged through a network of 90+ global partners
Mission:
To inspire, engage, support and challenge companies to continuously
improve their impact on society and the environment
Business in the Community
INSPIRE
Providing platforms for companies to share best
practice, communicate their commitment to CR and
inspire others to do likewise.
ENGAGE
Helping companies to work collaboratively to achieve
maximum social impact in the most deprived areas.
SUPPORT & CHALLENGE Through a range of services that help
companies integrate corporate responsibility across
their business functions.
What is the CR Index?
Management tool for integrating CR
Framework for a systematic approach to managing, measuring
and reporting social and environmental performance
Benchmark for comparing a company’s management processes
and performance with those of others in the sector/Index
Method for engaging board members and raise awareness of CR
risks and opportunities
Communication tool with external stakeholders
The Index Model
and 2006 average scores
Corporate
Strategy
93%
Integration
86%
Management
88%
Community
3 Env Impacts: 79%
Environment
3 Social Impacts: 84%
Marketplace
Workplace
Assurance process
Performance
and Impact
Index questions
Corporate
Strategy
Integration
Management
Performance
and Impact
Values
Integration of principles
Key issues
CR principles
Business conduct
Objectives/ targets
Leadership
Performance mgmt
Advocacy
Remuneration systems
Allocation of
responsibilities
Risk mgmt
Strategic decision-making
Training/ support
Target setting
Internal monitoring
and reporting
Performance
improvement
Policies
Training & development
Senior training
Stakeholder engagement
Reporting
Measuring and
reporting
Scope of data
Quality of data
Key themes throughout the Index
• Processes for managing risks/opportunities
• Allocation of core responsibilities
• Approach to stakeholder engagement
• Level of transparency and disclosure
• Continuous improvement
What the 2006 Index is telling us
• Increased transparency and accountability
Sainsbury’s
• Starting to see CR more of an opportunity rather than a risk
Marks & Spencer, Lafarge
Key findings by impact area
Community
Key challenge remains linking
community investment to core
products and services.
Environment
Climate Change key for all and forever.
Not just about electricity consumption.
Increased focus on indirect impacts.
Diageo, FSA
BskyB, B&Q, F&C Asset Management
Marketplace
Workplace
Refocused stakeholder engagement. Increasing focus on recruitment + retention.
Supply chain remains biggest area
More emphasis on health & wellbeing.
for improvement.
Camelot, Rio Tinto, Kingfisher
Morgan Stanley, National Grid
What makes a ‘Company That Counts’
= leadership and commitment at the highest level
= policies to ensure responsible behaviours across the business
= CR issues integrated into strategic decision making,
= objectives and targets set to drive continuous improvement
= clear responsibilities defined at all levels
= effective communication to share learning and knowledge
= training for relevant staff to ensure delivery of objectives
= process for stakeholder consultation and engagement
= monitoring systems to assess and report progress
= public reporting of key issues, targets and performance
= willingness to disclose information and share best practice
At a Crossroads
•
The Index isn’t encouraging step-change in
thinking or action
•
The Index provides a “comfort blanket”
– with a focus on historical data & incremental
change
•
The Index is encouraging a risk based
approach not an opportunity driven one
Discussion Themes –
HOW TO BENCHMARK…
•
Changes in business model that promote/deliver
step change towards CR/sustainability?
•
Whether companies have a plan to deliver CR
change – beyond incremental target setting?
•
“Beyond Compliance” – rewarding opportunity
seeking/innovation?
How do we benchmark…
Changes in business model