New principles for behaviour by companies

August 01, 1997

AWARDING PRINCIPLES

Business in the Community has prepared a new tool to enable companies to assess their community affairs programmes. Modelled on the Business Excellence Model from the European Foundation for Quality Management, the Principles of Corporate Community Investment identify 46 separate elements of a leading edge programme under nine separate headings, such as leadership, policy and strategy, and people management. Companies can then identify the strengths and weaknesses of their current activities, set targets for improvement and benchmark against others. The model was prepared in conjunction with BT which has scored highly in the ‘impact on society’ section of the European Quality Award.

BITC has also announced a new awards scheme to be based on the Principles and run in association with the Financial Times. Due to be formally announced in the autumn, applicants will be assessed by a judging panel against the nine principles, with the awards themselves presented in July 1998. Eight categories are on offer, including employee involvement, education, the environment and best overall programme.

Both developments were announced at the 1997 Per Cent Club meeting on July 15 when the Club’s Annual Report was published. This contains descriptive entries from 180 of the 300 companies listed as members, although fewer than one in three quantified their total community contribution. At the meeting, a review of the way the Club operates was announced by joint chairman, Eric Nicoli (see back page), with a revised target of one per cent of profit. Contact Alice Dickens, BITC, on 0171 224 1600

CORPORATE CONSCIENCES

Two British firms won awards for their ethical and environmental policies in the 1997 Corporate Conscience Awards, run by the US-based Council on Economic Priorities. Announced on June 4, the awards aim to highlight socially responsible best practice. Sainsbury’s was recognised for its commitment to reduce pesticides used by suppliers, while the Co-operative Bank’s 14 point ethical policy was praised. Among other companies to receive awards were the Kelllogg’s Company in the USA and Novo Nordisk in Denmark. CEP conducts research into corporate behaviour, allowing investors and consumers to bring pressure to bear, and is currently developing a worldwide standard for social accountability. Contact Deborah Leipziger, CEP, on 0171 831 9420

GLOBAL WATCHDOGS

EIRIS, the London-based ethical investment research service, is coordinating a Global Partners working group to improve the monitoring and disclosure of corporate practices around the world. Focusing initially on environmental and employment data, the group includes organisations in the UK, USA, Germany, Sweden, Switzerland, Belgium and Japan, with another seven countries soon to be involved. The aim is to publish a detailed report in 1998, highlighting gaps and demanding consistent standards for greater openness. Contact Stephen Hines, EIRIS, on 0171 735 1351

ETHICS TRAINING

Fewer than one company in three includes the topic of ethics and values on its management development programme, a study by the Industrial Society has found. Published on July 31 as Management Development (Managing Best Practice no. 36, ?55), responses from 395 human resource managers showed leadership skills as the top priority for managers’ training programmes (87%), followed by communication skills (80%) and appraisal interviewing (72%). Among seventeen topics, the lowest priorities went to employee relations (30%), stress management (30%) and ethics/values (29%). Contact Industrial Society Publications on 0121 454 6769

REPORTING INVOLVEMENT

NatWest Group has published a new community investment brochure, detailing its activities, focused in three areas: financial literacy, developing communities and supporting staff. NatWest has used the new London Benchmarking Group model to evaluate its programme: total contribution is ?15 million, allocated 10% to charitable gifts, 70% to social investments, with the balance in commercial initiatives. Contact Amanda Jordan, NatWest, on 0171 726 1827

United Biscuits has published Community Link: our continued investment, detailing the range of community projects the company is supporting. The highlights are education links, initiatives in local communities, enterprise agencies and training and regeneration. Contact Ken Musgrave, UB, on 01895 432100 www.unitedbiscuits.co.uk

VOLUNTEERING TO HELP

Standard Life, the Edinburgh-based financial services company, is organising a seminar and series of workshops to promote closer working between voluntary organisations and the business sector in Scotland. Run with the Lothian Employee Volunteering Project in August, the series will explain Standard Life’s own policies and then give practical advice on devising projects and approaching business. Contact Debbie McCracken, Standard Life, on 0131 245 0178

comment

Two and a half cheers to BITC. The first, and a loud one, for devising the new Principles framework. Based on emerging best practice in leading companies and on work in the USA at Boston College and in the UK by the consultancy, Bruce Naughton Wade, it should prove an invaluable self-assessment tool about community affairs.

The second is for the new integrated awards scheme. By basing these on the Principles, they acquire an objectivity not always apparent before. The process will be greatly strengthened if the panel of judges has a good leavening of independent experts. The process will be transparent too, if all entries are open to study by other companies interested in making progress.

The next step is to develop the Principles and the awards from community involvement into fully-fledged corporate citizenship, as with the Council on Economic Priorities. Those monitoring corporate behaviour get ever more vigilante and global in their reach. Better that companies develop their won standards before others fill the breach.

The third (muted) cheer is for the Per Cent Club review. Good to increase the target to one percent and good to promote the Club logo as a brand symbolising good corporate citizenship. But bad if simple clear rules are not set and enforced, protecting the brand as any self-respecting business would do. The current standard of reporting by companies is deplorable and no one checks to see if members are adhering to the Club guidelines. If leading companies with good programmes want a Club that adds kudos, they must insist on rules. If not, it’s just a question of time before someone points out that the emperor has no clothes.

Corporate Citizenship Briefing, issue no: 35 – August, 1997

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