Tech Startup Growth Hacking 101 - Basics on Growth Marketing
Reporting on Community Relations, Investment and Development
1. Community Development
Community Engagement
Reporting on Community Investment
Reana Rossouw
Next Generation Consultants
2. Topic
• What is sustainability reporting?
• Sustainability reporting as a resultant of good
performance
• Linking CSI and Sustainability reporting
• What to report on-how to use it in stakeholder
engagement process
4. Sustainability Reporting is …….
The practice of measuring,
disclosing and being
accountable to internal and
external stakeholders for
organisational performance
against specific
environmental, social,
economical and governance
goals and metrics that
support sustainable
development, and for how
sustainability is incorporated
into a company’s strategies,
policies and performance
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5. In essence …
• Sustainability reporting
describes performance
• Sustainability reporting
involves measurement
• Sustainability reporting is
a recurring process
• Sustainability reporting
requires stakeholder
engagement
6. From Annual Report to Sustainability
Report to an Integrated Report………..
6
8. Governance and Compliance
• King III
– It concerns the manner in which environmental, social
and governance (ESG) factors are “integrated” into
companies’ annual financial reports
• CRISA
– To “incorporate sustainability considerations” and
demonstrate their “acceptance of ownership
responsibilities” in investment arrangements
• Regulation 28:
– Obliges trustees to “give appropriate consideration to
any factor which may materially affect the sustainable
long-term performance of a fund’s assets, including
factors of an environmental, social and governance
nature”
• JSE
– To comply with King III or explain why not – Integrated
Report
• Companies Act
– Ensures the board reports back to shareholders (at the
AGM) on how they have addressed sustainability issues
right across the value chain and how they have engaged
with stakeholders to minimise risk
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9. What this means….
• New era of mandatory reporting and
associated compliance requires new
skills, competencies, capacity, and
consideration – a paradigm shift about
fundamentally different business models
• Reporting will not change corporate
behaviour – therefore reporting is the
outcome /result of a change management
process and the report only communicates
the changed paradigm
• The new era of corporate accountability and
transparency focuses on enabling
stakeholders to make informed assessments
about the value of an organisation as
opposed to companies selling their strategy
and telling their story
• It requires integrated
thinking, implementation and execution that
allows and encourages stakeholders to
influence business strategy
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10. In summary:
Reporting is not an end in itself. Even
good reporting does not necessarily
result in improved sustainability.
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11. What this means for practitioners
• There is no place to hide
– You have to measure impact
• You cannot just report on quantitative impacts
– The numbers, the projects and budgets
• You have to be transparent
– Include positive and negative impact, intended and unintended impact, across
the triple bottom line
• The more research and information you have the higher the impact and
therefore your ability to report increases
• Remember
– In future this will be assured – so you cannot wait – learning and testing needs
to happen now so that you are ready for the auditors
13. The GRI Reporting Framework
• The Sustainability Reporting Guidelines are the
cornerstone – to organisations for disclosing
their sustainability performance.
• It is applicable to organisations of any size or
type, and from any sector or geographic
region, and has been used by thousands of
organisations worldwide as the basis for their
sustainability and integrated reports.
• It facilitates transparency and accountability by
organisations and provides stakeholders with a
universally-applicable, comparable
framework from which to understand
disclosed information.
• The Guidelines contain principles and guidance
as well as standard disclosures – including
indicators – to outline a disclosure framework
that organisations can
voluntarily, flexibly, and incrementally, adopt.
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14. The GRI Guidelines
• Principles and Guidance
– Apply the Reporting Principles
and guidance to ensure
reports is focused and of
value for internal and external
stakeholders.
• Define report content by
applying the Principles of
materiality, stakeholder
inclusiveness, sustainability
context, and completeness.
• Ensure report quality by
applying the Principles of
balance, comparability, accurac
y, timeliness, reliability, and
clarity.
• Set report boundary by
following the guidance
provided to determine the
range of entities that should
be included in the report. 14
15. GRI Indicators for CSI
• EC1
– Direct economic value generated and
distributed, including revenues, operating
costs, employee compensation, donations and other
community investments, retained earnings, payments
to capital providers and government
• EC6
– Policy, practices, and proportion of spending on locally
based suppliers at significant locations of operation. –
Enterprise development
• EC8
– Development and impact of infrastructure
investments and services provided primarily for public
benefit through commercial, in-kind or pro bono
engagement
• SO1
– Percentage of operations with implemented local
community engagement, impact assessments, and
development programs
• SO9
– Operations with significant potential or actual
negative impacts on local communities
• SO10
– Prevention and mitigation measures implemented in
operations with significant potential or actual negative
impacts on local communities
16. Disclosure on Management Approach
(DMA) (1)
• A statement from the most senior executive :
– This person will have operational responsibility for Social/Society aspects explaining how operational
responsibility is divided at senior management level.
– Also explain the division of responsibility for impacts on local communities in the highest governance
level.
– Inform if and how work councils, occupational health and safety committees and/or other
independent employee representation bodies are empowered to deal with and have dealt with
impacts on local communities.
• Provide a contextual introduction to the social/community section: Inclusive of:
– Training and awareness – in relation to community /society aspects
– Monitoring and follow up – procedures related to monitoring and corrective and preventative
actions, including those related to the supply chain
– List of certifications for performance or certification systems or other approaches to auditing/verifying
the reporting organisation or its supply chain
– Procedures related to assessing the risks and managing impacts on local communities.
– This should also include information on how data was collected, and the process for selecting the
local community members (individual or group) from whom data was collected
• Provide organisational goals pertaining to communities
• Use specific organisational indicators as needed in conjunction with GRI indicators to
demonstrate the results of performance against goals
• Address the extend to which organisational goals contribute to or interfere with the collective
rights of communities
17. Disclosure on Management Approach
(DMA) (2)
• Provide or describe the organisational policy that define the
organisation’s commitment related to communities, with
specific reference to:
– References/statements regarding the collective rights of
communities
– Risk assessment for impact on local communities, through the
whole life cycle
– Mitigation of impacts on communities
– Engagement with both men and women in local communities
– Application of policy within or throughout the organisation
• Additional contextual information:
– Key successes and shortcomings
– Major organisational risks and challenges
– Major changes in the reporting period to systems or structures to
improve performance
– Key strategies and procedures for implementing policies or
achieving goals
18. Indicators in Detail (1)
EC1 – Voluntary donations and investment of funds in the broader community where the
Community target beneficiaries are external to the company.
Investments These include contributions to charities, NGOs and research institutes (unrelated to
company R&D), funds to support community infrastructure and direct costs of
social programs.
The amount included should account for actual expenditures in the reporting
period, not commitments.
For infrastructure investments, the calculation of the total investment should include
costs of goods and labour in addition to capital costs. For supporting of on-going
facilities or programs (e.g. an organisation funds the daily operations of a public
facility), the reported investment should include operating costs.
This excludes legal and commercial activities or where the purpose of the investment
is exclusively commercial.
Donations to political parties are included but are also addressed separately in more
detail in SO6.
Any infrastructure investment that is driven primarily by core business needs (e.g.
building a road to a mine or factory) or to facilitate the business operations of the
organisation should not be included. The calculation of investment may include
infrastructure built outside the main business activities of the reporting organisation,
such as a school or hospital for employees and their families.
19. Indicators continue (2)
EC6 • Report geographic definition of ‘local’
Policy, practices and proportion • Percentages should be based on invoices
of spending on locally based • Report the policy for preferring locally based
suppliers at significant locations suppliers
• State the percentage of the procurement
budget used that is spend on suppliers
• Indicate the factors that influence supplier
selection
EC8 • Explain the extent of development (size, cost,
Development and impact of duration) of investment and support and the
infrastructure investments and current or expected impacts (positive or
services provided primarily for negative) on communities and local economies.
public benefit through Indicate whether these investments and
commercial, in-kind, or pro bono services are commercial, in-kind or pro bono
engagement • Report whether the organisation conducted a
community needs assessment to determine
infrastructure and other services needed, if so,
explain the results of the assessment
20. Indicators Continue (3)
SO1 • Identify the total number of operations
Percentage of operations • Identify organisation wide local community engagement,
with implemented local impact assessments and development programs
• Report the percentage of operations with implemented
community engagement,
community engagement, impact assessments and development
impact assessments and programs including, but not limited to:
development programs • Social impact assessments, including gender impact
assessments, based on participatory processes
Document sources may include: • Environmental impact assessments and on-going
monitoring
Baseline studies - health, • Public disclosure of results of environmental and social
economic, environment, impact assessments
cultural, etc. • Local community development programs based on local
Social impact assessments, community needs
gender impact assessments, • Stakeholder engagement plans based on stakeholder
human rights impact mapping
assessments, environmental • Broad based local community consultation committees
impact assessments, social and and processes that include vulnerable groups
labour plans, resettlement • Work councils, occupational health and safety
action plans, community committees and other employee representation bodies to
development plans, grievance deal with impacts
and complaints mechanisms, • Formal local community grievance processes
public/ community consultation
plans
21. Indicators Continue (5)
SO9 All data collected with GRI indicators – eg. EC9, EN1, EN3, EN8, EN12, EN14, LA8, HR6-9,
Operations PR1-2 - Actual performance data, internal investment plans and associated risk
with assessments - Including:
• Vulnerability and risk to local communities from potential impacts due to:
significant • Degree of physical or economic isolation
potential • Level of socio economic development including gender equality
or actual • State of socio economic infrastructure
• Proximity to operations
negative • Level of social organisations
impacts on • Strength and quality of governance of local and national institutions around local
local communities
communi- • Identify exposure of community to operations due to higher than average use
ties of/impact on shared resources through:
• Use of hazardous substances that impact on the environment and human health in
general
• Volume and type of pollution released
• Status as major employer in local community
• Land conversion and resettlement
• Natural resources competition
• Identify significant potential and actual negative economic, social, cultural and
environmental impacts and their rights, considering:
• Intensity and severity of impact
• Likely duration of impact
• Reversibility of impact
• Scale of impact
22. Indicators Continue (6)
SO10 Use the information on potential and
Prevention and mitigation measures actual negative impacts reported in SO9.
implemented in operations with Report whether –
significant potential or actual negative • Prevention and mitigation measures
impacts on local communities were implemented
• Prevention and mitigation measures
were implemented in order to:
• Remediate non-compliance with
laws or regulations
• Maintain compliance with laws
or regulations
• Achieve a standard beyond legal
compliances
• Prevention and mitigation
objectives were achieved or not
23. Linking Stakeholder Engagement and
Reporting
• Stakeholder Engagement Standards
– Accountability and IFC
• You will need
– To identify stakeholders
– Prioritise stakeholders
– Engage with stakeholders
– Document engagement and commitments
– Report on engagement
• In light of Marikana – a lot more emphasis on engagement with
communities
– Their expectations, their needs
– Your CSI plan must reflect the engagement outcome
– Your programs are aligned with the expectations raised during engagement
– Specifically you must report on impact – linking expectations raised with
actual commitments and programs – what was achieved i.e. how you served
and recognised needs and expectations
24. Linking CSI – Reporting - Impact
• You will need to know
– The indicators to report against
– You will need data to report against
– You will need performance to report
– You will need to know your impact in order to
report
– You will need to engage with stakeholders to
ensure the relevance of your report on community
development and investment
25. Questions
• Reana Rossouw - Next Generation Consultants
• Specialists in Sustainability & Integrated Reporting, as well Socio
Economic Investment and Development
• Tel: (011) 2750315
• E-mail: rrossouw@nextgeneration.co.za
• Web: www.nextgeneration.co.za
• Please note: The information in this presentation is the property of Next
Generation Consultants and may not be used or copied or transmitted by
any party without the express permission from Next Generation
Consultants