Presentation looking at why companies should engage employees in CSR and sustainable business, the benefits and how some leading companies do it, or try to.

1. Corporate
Responsibility
Module
Lecture
Three:
Employees
January
22st
2015
Lecturer:
Tobias
Webb
Tobiaswebb.blogspot.com

2. Leadership:
The
big
picture
Simon
Sinek:
Why
good
leaders
make
you
feel
safe
Nadine
Exter,
Cranfield,
on
Employee
Engagement
in
Sustainability

3. Some
useful
extra
reading
A
study
of
the
link
between
Performance
Management
and
Employee
Engagement
in
Western
mulLnaLonal
corporaLons
operaLng
across
India
and
China

4. A
reminder….Employees
and
business
value:
Alex
Edmans
London
Business
School
and
Wharton
researcher
Alex
Edmans
Three
key
points
to
remember
about
the
latest
research
on
the
business
case
for
CSR:
1.
Employee
welfare
is
posi/vely
related
to
firm
value.
While
the
idea
that
“companies
do
beRer
if
their
workers
are
happier”
is
seemingly
intuiLve,
this
idea
is
contrary
to
tradiLonal
ways
of
managing
workers,
which
holds
that
a
dollar
paid
to
workers
is
a
dollar
taken
away
from
shareholders.
Human
resource
departments
are
not
just
cost
centres,
but
a
posiLve
source
of
value
creaLon.

5. Employees
and
business
value:
Alex
Edmans
2.
CSR
can
improve
firm
value.
TradiLonal
thought
is
that
considering
other
stakeholders
(e.g.
employees,
customers,
the
environment)
is
at
the
expense
of
shareholders.
Thus,
socially
responsible
invesLng
should
underperform
tradiLonal
invesLng,
since
responsible
companies
are
distracted
from
the
boRom
line.
His
paper
suggests
that
there
need
be
no
tension
between
CSR
and
profit.
3.
The
market
does
not
fully
value
intangibles
such
as
stakeholder
capital.
Results
suggest
that
the
market
doesn’t
immediately
recognise
the
benefits
of
stakeholder
capital.
As
a
result,
we
need
to
move
beyond
evaluaLng
managers
according
to
short-­‐term
performance
to
encourage
them
to
consider
the
long-­‐run
health
of
their
firms
–
and
society.

6. Academic
research
findings
Employee
Engagement
and
CSR:
TRANSACTIONAL,
RELATIONAL,
AND
DEVELOPMENTAL
APPROACHES
Philip
Mirvis

7. Evident
from
surveys
says
(1)
• Three
out
of
four
of
the
Millennial
GeneraLon
(born
1978-­‐1998)
want
to
work
for
a
company
that
“cares
about
how
it
impacts
and
contributes
to
society.”
• Among
those
already
in
the
workforce,
nearly
seven
in
ten
say
that
they
are
aware
of
their
employer’s
commitment
to
social/environmental
causes.
• 65
percent
say
that
their
employer’s
social/
environmental
acLviLes
make
them
feel
loyal
to
their
company.

8. Evident
from
surveys
says
(2)
Sirota
Survey
Intelligence,
of
1.6
million
employees
in
seventy
companies,
found
that:
• Employees
who
approved
of
their
company’s
commitments
to
social
responsibility,
compared
to
those
who
did
not
approve
were:
• Far
more
engaged
on
their
jobs.
• More
apt
to
believe
that
their
employers
were
interested
in
their
well-­‐being.
• They
also
had
more
favorable
percepLons
of
their
management’s
integrity
and
rated
their
companies
as
more
compeLLve,
too.

9. Evident
from
surveys
says
(3)
• A
2007
Towers
Perrin
survey
of
90,000
employees
in
18
countries
found
that
only
21
percent
reported
being
fully
engaged
on
the
job.
• The
rest
were
either
simply
enrolled
(41%),disenchanted
(30%),
or
disconnected
(8%).
• In
turn,
the
Gallup
Employee
Engagement
Index
reported
that,
on
average
as
of
2010,
some
33
percent
of
employees
were
engaged
by
their
companies,
49
percent
were
not
engaged,
and
18
percent
were
acLvely
disengaged.

10.
Mirvis
(2012)
explores
three
different
ways
that
companies
design
and
manage
their
efforts:
1. A
transac/onal
approach,
where
programs
are
undertaken
to
meet
the
needs
and
interests
of
those
employees
who
want
to
take
part
in
the
socially
responsible
efforts
of
a
company.
2. A
rela/onal
approach,
where
an
organizaLon
and
its
employees
together
make
a
commitment
to
social
responsibility;
and
3. A
developmental
approach,
where
a
company
aims
to
more
fully
acLvate
and
develop
its
employees
and
the
firm
to
produce
greater
value
for
business
and
society.

12. So,
what’s
the
problem
• On
the
surface,
engagement
in
CSR/CR/
Sustainability
makes
perfect
business
sense;
• Studies
prove
it.
• Surveys
prove
it.
• So
why
don’t
more
companies
do
it
well?

13. So
why
don’t
more
companies
engage
employees
well
on
CR/Sustainability?
• Many
do:
But
they
tend
to
be
the
largest
ones,
such
as
PUMA,
Mars,
Alliance
Boots,
IBM
etc.
• OR
they
are
smaller,
mission
driven
firms
such
as
Patagonia,
Interface,
etc.
• There
are
lot
of
companies
that
are
not
in
the
global
leadership
group
nor
who
are
mission
driven
on
sustainability
and
CR.
• Probably
tens
of
thousands
of
them
globally.

14. These
companies
struggle
with
employee
engagement
in
CR
because:
• They
think
it’s
expensive,
and
some
of
it
is
(supply
chain
changes,
product
changes
or
system
changes
generally).
• They
don’t
tradiLonally
value
Human
Resources
as
strategic
so
don’t
hire
the
right
people
and
apply
the
right
resources.
• They
don’t
really
believe
the
numbers,
and
think
a
more
tradiLonal
business
approach
is
best.
• So
iniLaLves
like
this
in
a
company
like
this
are
sLll
rare.

15. • Company
grown
by
merger
since
2006.
• From
Boots
to
Alliance
Boots
now
merged
with
Walgreens.
• Company
in
Europe
has
appointed
40
(approx)
CSR
Champions.
• Based
all
over
Europe.
Idea
is
they
are
there
to
catalyse
change
in
the
business.
• Engaging
senior
execuLves,
other
employees
on
issues
from
energy
efficiency
to
social
innovaLon.
• Board
members
have
personal
tasks/targets
on
CSR
and
sustainable
business.

16. • Employee
champions
also
promote
Alliance
Boots'
work
with
anL-­‐
cancer
network
EORTC.
• Trained
by
interacLve
video,
presentaLons,
workshops.
Graded
on
a
pass/fail
basis
as
part
of
their
annual
assessments.
• Company
also
communicates
their
targets,
policies,
and
work
using
company
intranet,
to
store
managers
and
other
employees.
• Board
of
the
company
has
CSR
CommiRee
which
meets
quarterly
to
review
progress.
• Aiming
to
roll
out
basic
video
training
on
"What
CSR
means
to
us"
across
the
whole
company.

17. Employees
and
CR
Case
Study:
Accenture
Gib
Bulloch
from
Accenture
on
ADP

18. Accenture:
“Human
Capital
Strategy”
• 246,000
employees.
• 35%
female
-­‐
17%
of
Senior
ExecuLves.
• Big
picture
short
term
focus:
equipping
250,000
people
with
skills
to
get
a
job
or
build
a
business.
Claim
162,000
achieved
so
far.

19. How?
• Via:
cash
and
in
kind
support
"equivalent
to
$44.5
million"
from
$25
billion
turnover.
• Target
of
$100m
by
2013.
• Training
and
capacity
building
with
NGOs:
InternaLonal
FederaLon
of
Red
Cross/Red
Crescent.

20. What
does
this
mean
in
pracLce?
• DonaLons.
• In-­‐kind
consulLng.
• "Train
the
trainer"
Lme
donaLons
with
NGOs
to
support/empower
vulnerable
people.

21. Junior
Achievement
Young
Enterprise
• Encouraging
student
business.
• Award
and
donaLons.
• Encouraging
Workplace
and
Entrepreneurial
Skills.
• 18,000
students
by
2012,
esLmate
that
15%
will
become
entrepreneurs
by
2016-­‐18.

22. Big
on
donaLons,
short
on
exact
detail…
• Also
support
Save
the
Children
and
Plan
InternaLonal
with
donaLons.
• Claim
59%
of
contribu/ons
are
in
kind
(unclear
on
detail).
• Strategies
regionally
and
locally
adapted:
different
approaches
per
country
needs.

23. Employee
Engagement
Methods
A
mulL-­‐channel
approach:
• Company
Intranet
• eLearning
programmes
• Volunteering/skills
matching
• Employee
surveys
• Local/small
group
meeLngs
• CR/Sustainability
Champions

25. Accenture
Development
Partners
"Corporate
Social
Enterprise"
• Non
profit
model
helps
employees
make
a
difference
in
development
via
paid
secondments
to
NGOs
around
the
world.
• Two-­‐way
innova/on
model:
Ideas
for
clients
and
help
for
NGOs
etc.

27. Accenture
Development
Partners
• A
“key
vehicle”
for
driving
sustainability
experience
into
graduate
hires.
• 3-­‐12
month
physical
placement
on
a
project
with
an
NGO
or
development
partner
in
a
developing
economy.

28. Accenture
Development
Partners
• Seen
as
a
“game
changer”
for
parLcipants
in
terms
of
experience,
career,
benefits.
• Rigourous
selecLon
process.
• Accenture
offers
support,
project
evaluaLon
and
a
peer
community
to
parLcipants.
• Valuable
for
clients
+
company.

29. Accenture:
Conclusions/Acknowledged
areas
of
improvement
• Online
tool
to
streamline
access
and
registraLon
for
community
events
and
track
volunteer
hours.
• Even
a
technology
company
struggles
with
measurement
and
data
collec/on…
key
challenge.
• A
good
example
of
current
beLer
prac/ce
in
services
industry…

30. Employees
and
CR
Case
Study:
Linklaters

31. Linklaters:
A
global
law
firm
5000
employees/partners
Four
Pronged
Approach:
1. Trusted
Advisor
2. Valued
Colleague
3. Engaged
Professional
4. Good
Neighbour

32. Linklaters:
Progressive
for
their
sector?
• Recognise
role/
responsibili/es
as
"trusted
advisor"
and
"voice
in
global
business”.
• Global
Engagement
Survey
• Includes
"global
responsibility
strategy"
from
2011.
• Anonymous
partner
feedback
mechanism
for
employees.

33. Embedding
CR?
• Partners
have
employee
development
KPI's
built
into
partner
performance
expectaLons.
• 17%
female
partners:
"we
clearly
have
much
to
do”.
• Clearly
realise
diversity
is
a
challenge:
Weaker
on
acLon…

34. "Women's
Leadership
Programme"
• Provides
learning,
coaching
and
mentoring
to
24
managing
associates
over
six
months.
• Gited
comprehensive
data
protecLon
training
to
Save
the
Children.
• Wellbeing
assistance
service.

35. Learn
for
Work
Programme
• 18
offices:
"hundreds
of
volunteers
enthusing"
9000
young
people
about
world
of
work,
careers,
sharing
skills.
• 57
university
scholarships
in
China.

36. • Learning
resources
on
dealing
with
stress.
• Recent
flexible
working
pilot
successful.
• Sponsored
"Good
Governance
in
Interna/onal
Development"
conference
in
2012.
ObjecLve
of
helping
employees
assist
in
int.
development
outcomes.

37. Linklaters:
State
of
the
art
on
employee
engagement?
• They
are
clear
how
non
core
legal
work
maRers
given
global
markets,
challenges
&
socieLes.
E.g.
Charity
trustee
work,
research,
policy
commiRees,
teaching
etc.
• Focus
on
skills
matched
volunteering
in
communiLes
and
with
chariLes.

38. Going
a
bit
beyond
the
usual…?
• Created
Italian
network
for
women
in
business.
400
members
in
two
years.
• Support
legal
advice
clinics
in
Hong
Kong,
London,
Paris
and
Warsaw.
• "CommunityMark"
award
from
BITC
in
2012.

39. Unfinished
measurement…
• Use
World
Environment
Day
&
issue
of
sustainable
food
sourcing
to
engage
colleagues.
• 25%
volunteering
rate
with
75%
skills
matching.
Further
incremental
targets
set.
• Community
impact
reporLng
lacking
but
is
a
target.

40. Much
more
to
be
done…
• Some
targets
weak:
"collaborate
with
clients"
on
Living
Wage.
• Retaining
talented
women.
• Individual
partner
plans
to
embed
ethics
/
values
/
diversity
and
measurement
of
that.

41. Conclusions:
Linklaters
• Making
good
gradual
progress.
• Overall
measurement
of
CR
parLcipaLon
a
significant
challenge.
• No
visible
stakeholder
engagement
beyond
charity/volunteering/
events.
• No
menLon
of
an
ethics
commiLee
with/without
external
viewpoints.
• No
external
feedback
mechanism.
• But
level
with,
or
ahead
of
peers
in
their
sector
globally.