Stakeholder engagement is a key part of any organisation’s corporate social responsibility programme. Several stories this month highlight new strategies that companies are using, from Chevron’s ‘We Agree’ campaign to the 97 organisations that are part of the newly formed Enterprise 2020.
Gone are the days that NGO’s attacked companies over poor practices and found there was little or no response. In the current economic climate it is perhaps more important than ever that companies work with key stakeholders to improve trust and retain their licence to operate. Engaging with both internal and external stakeholders can add value to a business, improving both reputation and performance.
Adopting a more collaborative approach helps to future proof businesses so they are more aware of issues of concern to society and can act on them. Campaigning groups and civil society organisations all have a range of skills, knowledge and experience that can be invaluable in helping business identify opportunities to innovate and find new ways to tackle key social, environmental and economic issues.
When companies work with NGO’s the impact of combined action can be much greater than when either act alone. One good example is the Shell Foundation’s Enterprise Solutions to Scale, which involves the co-creation of four strategic partnerships that tackle different development issues including growing small enterprises in Africa and reducing indoor air pollution. Both of these have already had significant results.
Building lasting, productive relationships through proactive stakeholder engagement programmes can only be a win-win situation for all parties involved.
Nicole is a Senior Researcher at Corporate Citizenship. Contact her on nicole.clucas@corporate-citizenship.com to discuss press releases, media partnerships and advertising for Corporate Citizenship Briefing.
ISO launch guidance standard on social responsibility
1 November saw the launch of ISO 26000:2010 Guidance on social responsibility, an ISO International Standard providing guidance to both business and public sector organizations on social responsibility (SR). ISO 26000 is the work of the ISO Working Group on Social Responsibility whose membership was the largest and the most broadly based in terms of stakeholder representation of any single group formed to develop an ISO standard. Six main stakeholder groups were engaged in the working group: industry; government; labour; consumers: nongovernmental organizations; and service, support, research and others, as well as a geographical and gender-based balance of participants. ISO 26000 is a voluntary guidance standard that is not to be used for certification, but can provide guidance for all types of organization on integrating, implementing and promoting socially responsible behaviour.
Growing influence of sustainability experts and customers in how businesses make decisions
New research from the Doughty Centre for Corporate Responsibility indicates that leading companies are evolving how they engage their stakeholders for success. Data from 51 companies in the Business in the Community Corporate Responsibility Index show how companies are moving from risk-based stakeholder engagement towards opportunity based engagement, and are using more external initiatives to engage, including asking stakeholders such as sustainability experts, pressure groups and customers into the business to have more of an influence. The report states that employees, customers and NGOs are the most important groups that companies are engaging with, although the ones that have the most impact are joint management committees, multi-stakeholder initiatives and partnerships between a company and NGO or public sector body.
Contact: Doughty Centre for Corporate Responsibility
Chevron attempts to improve image with ‘We Agree’ advertising campaign
On 18 October, Chevron launched a new global advertising campaign called ‘We Agree’ which highlights the common ground Chevron shares with people around the world on key energy issues. It also outlines how the company is tackling the responsible production of energy and the support it provides for the communities in which it operates. The campaign features a series of print ads and 30-second TV spots that focus on five areas: growth and jobs, renewable energy, technology, small businesses and community development. The adverts include statements about the oil industry that are designed to emphasis the mutual agreement between Chevron and its partners and also outline what Chevron is doing to advance these important issues. The partners include The Global Fund to Fight AIDS, Tuberculosis and Malaria, which works with Chevron to provide innovative solutions to education challenges.
Global companies launch Enterprise 2020 initiative
On 28 October, 70 global companies and 27 European business associations, all members of CSR Europe, launched a joint Enterprise 2020 initiative to shape the business contribution to the European Union’s Europe 2020 strategy for smart, sustainable and inclusive growth. The Enterprise 2020 is a new reference initiative for companies committed to developing innovative business practices and working together with their stakeholders to provide collaborative solutions to emerging societal needs. Reflecting the transformational trends and drivers of global change which businesses are currently confronting, Enterprise 2020 addresses four broad themes: Transforming Markets, Inclusive Societies, Health and Wellbeing, and Transparency for Trust. Under each theme, new ventures – each jointly led by companies and stakeholder organisations from government, academia or civil society – will collaborate to develop thought leadership and practical tools.
Study finds impact of economic inequality is overlooked
A study published at the end of September in the Journal of Corporate Citizenship by Lifeworth Consulting found that neither leading organisations nor corporate responsibility companies are addressing the issue of rates of economic inequality, which has a detrimental affect on the environment, poverty, crime, peace, health and even financial stability. Lifeworth Consulting analysed corporate responsibility reports classified as A+ by the Global Reporting Initiative in 2009 and found that only 3% of these consider the issue of economic inequality. Organisations that included work on economic inequality included Abeinsa, Banco Bradesco, Otto Group, Telefonica S.A and The Co-operative Group.The study outlines ways that companies can being to address the issue such as reducing wage differentials and encouraging suppliers and other business partners to do the same, developing new ownership structures that involve staff and consumers, and including measurement of project impacts on economic inequality into social performance metrics.
On 12 October, Accenture and the United Nations released a study “Can business do well by doing good” which found that a majority of CEO’s surveyed view sustainability as important to their companies’ future success. Commitment to sustainability is rewarded by business performance, and the research found that the 50 organisations that were ranked highest in sustainability leadership (based on external factors such as inclusion in sustainability indices or adherence to voluntary sustainability agreements) also outperformed their peers in relation to shareholder returns. The financial crisis has had a variety of effects on sustainable business practices, with 74% of executives surveyed stating that their organisation has aligned sustainability more closely with core business aims such as cost reduction and revenue growth. However, at the same time, companies must confront the public perception that business is partly to blame for the economic downturn, which has damaged companies’ relationships with consumers and stakeholders.
On 30 September, Ownergy, a full service provider of renewable energy systems published a report on the first six months of Feed-In Tariffs uptake in the UK since the scheme went live in April. The analysis found that the market is developing in line with initial forecasts, and outlines evidence that Government fears about Feed-In Tariff eligible installations being out of control are unfounded. The main findings include that the 32MW of installations to date means the scheme is on track to meet the first year targets of 100MW, and interest from the commercial markets has been encouraging and is predominately for installations where the generated power can be used onsite and is in line with the objectives of the scheme. The report also outlines the feedback from the industry stating that any cuts in tariff rates would damage investor confidence and dramatically reduce installation rates.
Intel and Motorola lead the green-powered organisations
Intel,Motorola, Kohl’s, Wal-Mart and PepsiCo are 17 of the biggest companies that have been recognised by the United States Environmental Protection Agency for their voluntary acts that help to advance the green power market. The annual Green Power Leadership Awards on 28 October rewarded organisations for initiatives such using green energy, on-site renewable generation, green education and adopting energy efficiency and sustainability measures. Intel was honoured for its commitment to purchasing green energy is the US’s largest voluntary buyer of green power. Motorola was rewarded for its involvement in the Green Power Partnership in 2009, as it has increased the amount of renewable energy it buys by 50%, representing over 30% of its US electricity usage.
Convention on biological diversity’s missing link: Business
A report released on 11 October at the United Nations Convention on Biological Diversity (CBD) in Nagoya found that business engagement in the policy process is the missing link in the successful evolution of the CBD process from goals to reality. Responding to the Biodiversity Challenge by the World Business Council for Sustainable Development states that business involvement in the process will lead to greater success in the drive towards halting ecosystem degradation. The case studies included demonstrate how businesses can improve their efficiency in the sustainable management of ecosystems by leveraging partnerships with key stakeholders, including public authorities. They also indicate that new market mechanisms such as habitat banking or offsetting are emerging as solutions to improved ecosystem service management that can be effectively and efficiently used by companies.
Contact: World Business Council for Sustainable Development.
Sony and WWF call for ideas on how technology can help preserve our planet’s resources
Sony UK and WWF are calling for participants in the Open Planet Ideas project, participants are asked to submit ideas for how repurposed Sony technology could facilitate better use of earths resources. Entrants have until 29 November to join the Open Planet Ideas Community to help generate ideas. An expert panel of Sony and WWF representatives as well as the Community will select the most promising concepts. Once the winner is chosen, its contributors will work with the experts to advance the idea to the proof of concept stage to demonstrate its feasibility.
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