balanced scorecard and corporate social responsibility

Copyright © 2009 Ascendant Strategy Management Group

Balanced Scorecard and Corporate

Social Responsibility

Tying in Strategy for Long-term Results

May 11, 2009

Dylan MiyakeManaging [email protected](617) 379-0918

Ted JacksonManaging [email protected](617) 379-0918

mailto:[email protected]


Copyright © 2009 Ascendant Strategy Management Group –

Workshop Goals

Our Goals

Share research, cases, and experience in BSC and CSR

“Co-Create” the workshop as we go along to answer your questions and meet your needs

Learn from you and your experiences with CSR and BSC

Your Goals

Learn about the Balanced Scorecard and Corporate Social Responsibility

_________________________

_________________________

_________________________


Agenda

What is Corporate Social Responsibility?

A Balanced Scorecard Primer

Linking Sustainability to your strategy

Example of a CSR strategy embedded in a BSC


What is CSR?

CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People, Planet, Profit.

Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society

Source: Wikipedia


Maximize firm’s

profits to the

exclusion of all

else

Balance

profits and

social

objectives

Do what it takes

to make a profit;

skirt the law; fly

below social

radar

Fight social

responsibility

initiatives

Comply;

do what is

legally

required

Integrate social

objectives and

business goals

Lead the industry

and other

businesses with

best practices

Do more than

required; e.g.

engage in

philanthropic

giving

Articulate

social value

objectives

Corporate Social Responsibility Continuum

(‘90s)

(‘90s)(‘00s)

?

Source: adapted from Introduction to Globalization & Business, Parker, 2005

http://images.google.com/imgres?imgurl=http://eleganceindustries.com/yahoo_site_admin/assets/images/Tyco-Logo.269204632_std.png&imgrefurl=http://www.eleganceindustries.com/line_card&usg=__jptdNTRtJ97yXOjewBKZjwqa9Pk=&h=260&w=744&sz=16&hl=en&start=1&tbnid=Hhg80yx86qvlHM:&tbnh=49&tbnw=141&prev=/images?q=tyco+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://textrapolate.com/wp-content/uploads/2008/06/439px-enron_logo.png&imgrefurl=http://textrapolate.com/2008/06/the-secret-to-free-publicity/&usg=__TVFZdQm5-mK7Lrn13eyA3jpWhM8=&h=433&w=439&sz=23&hl=en&start=3&tbnid=xErCe60DoH0KTM:&tbnh=125&tbnw=127&prev=/images?q=enron+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.maugerco.com/images/exxon_logo.gif&imgrefurl=http://www.maugerco.com/lubricants_fuels.php&usg=__c5uIo2OJpNe17-GCppNioV5HJTI=&h=90&w=144&sz=2&hl=en&start=10&tbnid=tHxp1FsLXh7ZvM:&tbnh=59&tbnw=94&prev=/images?q=exxon+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://ngiinvestments.com/images/Wal-Mart logo.JPG&imgrefurl=http://ngiinvestments.com/partners.htm&usg=__NZyAX8UtOMa6Qwp67yM3H0V7Dsw=&h=350&w=700&sz=35&hl=en&start=1&tbnid=rDrH7MyU1c5zjM:&tbnh=70&tbnw=140&prev=/images?q=walmart+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/9/9a/Target_logo.svg/432px-Target_logo.svg.png&imgrefurl=http://slowlygettingbetter.xanga.com/676919660/very-busy-day/&usg=__WHZQh84Cnt5SENJZCqtGkfi0kl8=&h=574&w=432&sz=24&hl=en&start=1&tbnid=O3I4i-rUDJXkuM:&tbnh=134&tbnw=101&prev=/images?q=target+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://hometeamsonline.com/photos/basketball/MILLRATS/800px_Best_Buy_Logo_svg.png&imgrefurl=http://hometeamsonline.com/millrats&usg=__dpn_mLLy89BUcmi3erl9qUk89QY=&h=551&w=800&sz=52&hl=en&start=1&tbnid=sCo_DVyj7x89mM:&tbnh=98&tbnw=143&prev=/images?q=best+buy+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.flipflopsdirect.co.uk/images/timberland_logo.jpg&imgrefurl=http://www.flipflopsdirect.co.uk/timberland-m-29.html&usg=__hvdm3i-hSKvdpAsE-c-wv3YtU-Q=&h=150&w=150&sz=15&hl=en&start=4&tbnid=EAMIq5hQHuWfHM:&tbnh=96&tbnw=96&prev=/images?q=timberland+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.pycomall.com/images/P/NIKE_logo.jpg&imgrefurl=http://www.pycomall.com/product.php?productid=16958&usg=__EVwDlEJFR_B69A0-OKJDGoVc9x4=&h=400&w=400&sz=25&hl=en&start=1&tbnid=ywpwnYG7Cccy6M:&tbnh=124&tbnw=124&prev=/images?q=nike+logo&gbv=2&hl=en


Why do corporations implement CSR?

Great recruiting and retention mechanism for employees

Helps remove waste in manufacturing process

Customers have an improved view of your brand and reputation

Good for long term financial results


10 reasons for continuing CSR in a recession

1. It can be cheap

2. Reputation and transparency are still key

3. Communities are feeling vulnerable

4. Customers are worried

5. Regulators are up in arms

6. Green advertising has gone mainstream

7. Newspapers are even hungrier for copy that sells

8. There is opportunity to gain trust

9. Think about the short term future

10. Trim the fat

Source: www.ethicalcorporation.com


With Web 2.0 you no longer control your reputation, the

conversation is typically outside of your company

How important is your reputation?

http://www.dom.com/index.jsp


Types of Corporate Social Responsibility

•Company code of conduct Business Ethics

•Reducing pollution or a carbon footprint.Environmental Stewardship

•Ensuring the local community where you operate is seeing the benefits of the organization.

Community Investment

•Ensuring suppliers are treated fairly.Fair Trade

•Giving money directly to charitiesCharitable Efforts

•Encouraging employees to give company time to social programs.Volunteering


Do you have to be strong in all of these areas?

Business Ethics

Environmental Stewardship

Community Investment

Fair Trade

Charitable Efforts

Volunteering

2008 Revenue Mix

$45B revenue

1,000 stores

120K employees



Example

We aspire to have our employees make daily business decisions that take into account economic value to our shareholders, the ethical responsibility of the enterprise and their impact on people, communities and the environment.

Business Ethics

Our aspirations for corporate citizenship aren’t for reportingalone — we expect the business to live by them. And thatmeans we need to consider outside perspectives to helpsteer our decisions.



ExampleEnvironmental Stewardship

Through our e-waste recycling program, Best Buy

collected 43,672 tons of

electronic waste in fiscal 2008.

Best Buy’s Tami Kozikowski (left) and Thad Carlson (right) accept the

ENERGY STAR Excellence in Appliance Retailing award from Richard

Karney (center) of the U.S. Department of Energy.



ExampleCommunity Investment

Advocacy

We also teamed up twice in fiscal 2008 with

Microsoft for community campaigns that

encourage families to make appropriate

media and digital entertainment choices. A

new component of this year’s campaign

with Microsoft was the introduction of a

PACT — a contract intended to foster

family dialogue about gaming and

entertainment.

The opportunities worldwide for

@15 are endless. Fact is, there are

young teens everywhere, growing

into themselves and into their

communities. And to sustain our

business in a connected world

we’re going to need them.



Example Fair Trade

Our social and environmental responsibility (SER) team in Shenzhen,

China invests significant time and resources to not only audit the

factories where Exclusive Brands products are assembled, but to work

with them to improve environmental processes, workplace conditions

and labor practices.



Example Charitable Efforts

$30+ Million in cash donations in 2008



Example Volunteering



Best Buy - Results



Does it work?

Pros Cons

“A cynical exercise in

public relations.”

-Matthew Bishop, The

Economist


Table Discussion

How do you manage CSR in your organization?

Which of these CSR issues does your organization do well?

What could you do better?


Agenda






Does strategy work?

Only one in five was enthusiastic about their team's

and organization's goal.

The People Barrier

Only 37% said they have a clear understanding of what their organization is trying to

achieve.

The Vision Barrier

Only one in five said they have a clear "line of sight" between

their tasks and their organization's goals

The Alignment Barrier

9 of 10organizationsfail to execute

strategy

The Resource Barrier

Only 15% felt that their organization fully enables them

to execute key goals

Sources: Stephen R. Covey, The 8th Habit: From Effectiveness to Greatness ©2006, Fortune Magazine


Does strategy work? Often, sadly, the answer is no.

Only two of the 11 would care.

The People Barrier

Only four of the 11 players on the field would know

which goal is theirs.

The Vision Barrier

Only 20% of players would know what position they play and know exactly what they

are supposed to do.

The Alignment Barrier

The soccer team would lose 9 out of 10 games!

Nine players would, in some way, be competing against their own team members.

The Resource Barrier

Source: Stephen R. Covey, The 8th Habit: From Effectiveness to Greatness ©2006


Can these odds be improved? Yes!

KeyCorp Financial

Mellon EuropeEDA

US Postal Service

• Delivered early on a 5-year commitment to reduce costs by $5B

• Volume grew to 212 billion mail pieces delivered

• Revenues grew to $70B

• Share price jumped from $15.69 in 2000 to $39.79 in 2007.

• Return on equity rose to 15.43% in 2006

• Income from continuing operations improved by over $400 million

• Private sector investment leverage ratio raised from 9:1 pre-BSC to 41:1 today

• Surpassed its target number of new investment partners in 2003 and 2004

• Annual revenues grew 21% from 2002 to 2003 and 30% in 2004

• In 2003, Mellon Europe exceeded target contribution to parent company revenues

Balanced Scorecard Hall of Fame Report 2004-2007, Harvard Business School Publishing


Can these odds be improved? Yes!

Source: Balanced Scorecard Hall of Fame Report 2004-2007, Harvard Business School Publishing

Nemours

• Revenue up 6%• Patient Sat. up 10%• 15% increase in

immunization rate with a 30% decrease in documentation time

• All results within 1 year

Fulton County Schools

• SAT up 23 pts over nation with 89% testing vs. 48%

• 82% parent Sat. vs. 68% nationally

• Teacher vacancies and admin expenses down

• 5 pt annual improvement in state tests for 3 years

Hillside Family of Agencies

• Reduced engagement wait time 56%

• Shrank administrative overhead 25% in 2 years

• Exceeded revenue growth targets for 8 quarters in a row

Duke Children’s Hospital

• Parent Sat. up from 4.3 to 4.7

• Cost per case down 33%• Length of stay down 31%• Nursing absentee down

42%• Net Margin up $15 Million

http://www.dukechildrens.org/


Many organizations have seen success by implementing the Balanced Scorecard

Source: The Balanced Scorecard Hall of Fame for Strategy Execution


How did they do it? They implemented a strategy management system.

Plan Measure Respond

Where are we going? Are we there yet? What are we doing

along the way?


Have you ever needed a map?


The Balanced Scorecard framework provides a map for your organization’s strategy.

Financial Perspective"If we succeed, how will we look to our donors or shareholders?”

Customer Perspective"To achieve our vision, how must we look to our customers?”

Internal Perspective"To satisfy our customers , at which business processes must we excel?”

Learning and Growth Perspective"To achieve our vision, how must our organization learn and improve?”


Nonprofit organizations have modified this framework.

MissionWhat is our plan to achieve our mission and vision?

Financial Perspective"If we succeed, how will we look

to our donors or taxpayers?”

Customer Perspective"To achieve our mission, how must we

look to our customers?”

Internal Perspective"To satisfy our customers and financial donors, which business processes

must we excel at?”

Learning and Growth Perspective"To achieve our mission, how must our organization learn and improve?”


Teach for America needed a map.

Challenges

Mid „90s outgrew startup phase

Lack of preparation

Poor lesson planning

Lack of support

More Challenges

2001 recession job market sent applications from 5,000-14,000

No Child Left Behind complicated Corp Qualifications

10 year alumni summit focused on growth and impact

Background

Founded 1990

Placed highly qualified college grads in underserved high schools

Started with 500 teachers


First, they had to clearly define who they were.

Improve the prospects of low-income youth of today and tomorrow by training

and placing highly qualified college graduates in at-risk, low-income urban

and rural schools.


Co

nsti

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nt

Inte

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acit

y

So

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ct Improve

Prospects of Low-Income

Youth

Impact Tomorrow’s Low-Income

Youth

Engaged Corp Members

Motivated Alumni

Grow Corps Member Base

Enhance Corps Member Effectiveness

Catalyze Alumni Movement

Grow and Diversify Revenue Base

Good Financial Management

Diverse Team

Effective Managers

Technical Capacity

National Board

Expansion Plan

Teach for America's Strategy Map


What should be on your map?

Do you have a clear mission with articulated goals?

Have you described who your target “customers” are and how you are going to serve them?

Have you stated your financial or fiduciary duties?

Does everyone agree with what activities need to be accomplished to be successful?

Ultimately, is everyone in your organization reading from the same map?


Measurement motivates.


along the way?



You can't manage what you can't measure.


Co

nsti

tue

nt

Inte

rna

l O

pe

rati

on

s

Fin

an

cia

l O

rga

niz

a-

tio

na

lC

ap

acit

y

So

cia

l Im

pa

ct Improve

Prospects of Low-Income

Youth

Impact Tomorrow’s Low-Income

Youth

Engaged Corp Members

Motivated Alumni

Grow Corps Member Base

Enhance Corps Member Effectiveness

Catalyze Alumni Movement

Grow and Diversify Revenue Base

Good Financial Management

Diverse Team

Effective Managers

Technical Capacity

National Board

Expansion Plan

Teach for America's Measures

Measure:Corps Member Reporting

Satisfied or AboveTarget: 75%

Measure:% of Alumni Attending

EventsTarget: 50%

Measure:Total Revenue

Target:$ XXX,XXX

Measure:% of staff diversity

Target: 40%

Measure:Corps members making

significant gains with their students

Target: 90%


Teach for America's Scorecard

Perspective Objectives Measures Targets

Social Impact • Improve prospects of low income youth• Impact tomorrow‟s low-income youth

• CM Effectiveness Measure• Results of Studies• Alumni Career Choice index

• 90%• % better than

no TFA• 50% in Ed.

Constituent • Engaged corps members• Motivated alumni

• Percent Satisfaction• Engagement Index

• 75%• 66%

Internal Operations

• Grow corps member base• Enhance corps member effectiveness• Catalyze alumni movement

• Number of Applicants• First Review Accuracy Percentage• % of alumni attending events

• 20% growth• 90%• 50%

Financial • Grow and diversify revenue base• Good financial management

• Total Revenue• # HNW Individuals contributing• Cost per CM

• $XXX,XXX• 100• 20% less

Organiza-tional

Capacity

• Diverse Team• Effective Managers• Technical Capability• National Board• Expansion Plan

• % of staff Diversity• % of key goals met• Staff Satisfaction with Technology• $ raised through board members• # new sites

• 40%• 90%• 80%• $XXX,XXX• 4


Specific – Clearly, and precisely state what will be measured

Measureable – every measure should numeric and can be graphed

Actionable – Results can be easily interpreted and you know what actions to take to affect the measure

Repeatable – consistently gather information over time

Timely – you can measure it at an appropriate frequency

What makes a good measure?


You must then align your projects to your strategy


along the way?



Teach for America's Program Map

Initiatives

Objectives

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Curr

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Acc

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Syst

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Fundra

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Test

ing A

dvoca

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Managem

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Off

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rain

ing

Pro

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m

• Improve prospects of low income youth

• Impact tomorrow‟s low-income youth

• Engaged corps members

• Motivated alumni X

• Grow corps member base

• Enhance corps member effectiveness

X X

• Catalyze alumni movement X

• Grow and diversify revenue base

X X

• Good financial management X

• Diverse Team

• Effective Managers X X X

• Technical Capability X X X

• National Board X X

• Expansion Plan X


Doing more with less.

Aligning your projects to your strategy allows you to focus on what‟s critical for success.

Don‟t try to map everything to the map – some things (like paying the bills!) must happen regardless of their strategic importance.

Inventory everything that‟s going on in your organization. Chances are, there‟s a lot of non-strategic programs underway.

Be disciplined in your evaluation of your programs. Rank them based on fit, budget, and impact.


However beautiful the strategy, you should occasionally look at the results


along the way?

Source: Winston Churchill



1.5 years progress in 1 year

22% CAGR

12,000 Alumni

• 94% in jobs that support the Teach For America mission

• 67% in Education (most in public schools)

• 247 principals

• 200+ in policy or advocacy roles (6 elected officials)

Teach for America Results


Table Discussion

Are you using the Balanced Scorecard in your organization?

Are you driving value out of this strategy management framework? Why or why not?


Agenda






Indirect involvement in Social and Environment

issues

Direct involvement in Social and Environment

issues

Does it matter what type of organization you are?

No involvement in Social and Environment issues?

http://www.dom.com/index.jsp

http://images.google.com/imgres?imgurl=http://www.pycomall.com/images/P/NIKE_logo.jpg&imgrefurl=http://www.pycomall.com/catalog/NIKE-Logo-Vector-File-p-16958.html&usg=__l3yGR_Za8h0M8tANS-jXMiERBCA=&h=400&w=400&sz=25&hl=en&start=1&um=1&tbnid=ywpwnYG7Cccy6M:&tbnh=124&tbnw=124&prev=/images?q=nike+logo&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GGIH_en&um=1

http://images.google.com/imgres?imgurl=http://i172.photobucket.com/albums/w17/barbiedasilva/mattel_logo.jpg&imgrefurl=http://mattel1.blogspot.com/2008/02/mattel-financial-information.html&usg=__d2GunydVXsdXcxi2OotL0KTlfiU=&h=399&w=399&sz=32&hl=en&start=3&um=1&tbnid=N3Z0nEOJ88nyqM:&tbnh=124&tbnw=124&prev=/images?q=mattel+logo&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GGIH_en&um=1

http://images.google.com/imgres?imgurl=http://su.ntu.edu.sg/icon/rc/images/Logos/Accenture_logo.png&imgrefurl=http://su.ntu.edu.sg/icon/rc/r1_results.htm&usg=__gt06IRRyQPMQmCniPIpZdeCED4Y=&h=160&w=237&sz=3&hl=en&start=3&um=1&tbnid=C_lkfKxx0n4QiM:&tbnh=74&tbnw=109&prev=/images?q=accenture+logo&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GGIH_en&um=1

http://images.google.com/imgres?imgurl=http://hairbroadway.com/wp/wp-content/uploads/2009/04/cnn-logo2.jpg&imgrefurl=http://hairbroadway.com/wp/?m=200904&usg=__0PUAT3qhq3vfT450AZvw1y8J-Wg=&h=217&w=448&sz=49&hl=en&start=1&um=1&tbnid=AS1mqkbYYrZC6M:&tbnh=62&tbnw=127&prev=/images?q=cnn+logo&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GGIH_en&um=1

http://images.google.com/imgres?imgurl=http://gala.events.dccap.org/Sponsor_List/verizon-logo.jpg&imgrefurl=http://gala.events.dccap.org/Sponsor_List/sponsor_list.html&usg=__R8Azxf8M7S5JaKsFXM_frP7ucx4=&h=214&w=372&sz=15&hl=en&start=6&um=1&tbnid=Rz8MJGRRJmIIKM:&tbnh=70&tbnw=122&prev=/images?q=verizon+logo&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GGIH_en&um=1


Corporate Social Responsibility operates at different levels in different organizations

The heart of

your business

Key

Differentiator

Worthwhile

pursuit

http://images.google.com/imgres?imgurl=http://marriottschool.byu.edu/selfreliance/admin/practitioner_images/ACCION logo.jpg&imgrefurl=http://marriottschool.byu.edu/selfreliance/practitioner_search_advanced.cfm?order=alpha&usg=__j_qpeJcIjIVSMo9hN-g3FZjXJks=&h=77&w=200&sz=12&hl=en&start=2&tbnid=WHbMFPJLELp3kM:&tbnh=40&tbnw=104&prev=/images?q=accion+logo&gbv=2&hl=en

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http://images.google.com/imgres?imgurl=http://www.hotmobile.org/2008/uploads/images/google_logo.jpg&imgrefurl=http://www.hotmobile.org/2008/program-draft.html&usg=__cF1CgQIIvamjz4K8EgUYrKvdq1Q=&h=1500&w=3600&sz=277&hl=en&start=1&tbnid=o78WRIXSFwEmKM:&tbnh=63&tbnw=150&prev=/images?q=google+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.vsna-inc.org/images/MBNA Logo.jpg&imgrefurl=http://www.vsna-inc.org/&usg=__g2DnIlzdUzTDv60G4QkqOX0j7TU=&h=177&w=509&sz=19&hl=en&start=6&tbnid=FffbgNwoEAgDVM:&tbnh=46&tbnw=131&prev=/images?q=bank+of+america+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.roundaboutclothing.co.uk/images/uploads/timberland_logo.jpg&imgrefurl=http://www.roundaboutclothing.co.uk/index.php?act=viewDoc&docId=7&usg=__llaxn48_hWZ-djHRtdYbtjdPYtw=&h=102&w=130&sz=5&hl=en&start=10&tbnid=0htqpxbijiUheM:&tbnh=71&tbnw=91&prev=/images?q=timberland+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.inversehalo.com/Starbucks logo.jpg&imgrefurl=http://www.inversehalo.com/witchcraftandabortion.html&usg=__N_8ZzGu0Rg7HaLjAj2EAgA3hB9o=&h=734&w=713&sz=77&hl=en&start=1&tbnid=TFwGyNEcAXib8M:&tbnh=141&tbnw=137&prev=/images?q=starbucks+logo&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.hhh.umn.edu/centers/stpp/events/innovation2008/images/best-buy-logo.jpg&imgrefurl=http://www.hhh.umn.edu/centers/stpp/events/innovation2008/index.html&usg=__bQ7m8GLjmzcSrSZyT0DYyla5aUE=&h=262&w=399&sz=19&hl=en&start=1&tbnid=LYdjWW0V8GPSqM:&tbnh=81&tbnw=124&prev=/images?q=best+buy+logo&gbv=2&hl=en

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Where does CSR fit into your strategy?

Financial Perspective"If we succeed, how will we look to our donors or

shareholders?”

Customer Perspective"To achieve our vision, how must we look to our

customers?”

Internal Perspective"To satisfy our customers, at which business processes

must we excel?”

Learning and Growth Perspective"To achieve our vision, how must our organization learn

and improve?”

Recruiting and Retention?

Designing out waste and packaging?

Building a brand and

reputation?

Improving financial results?

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CSR – Internal Process Differentiation

Since 1992, we have focused on specific environmental issues - through our Design for Environment (DfE) program. DfE is an engineering perspective in which the environmentally related characteristics of a product, process or facility are optimized. Together, HP's product stewards and product designers identify, prioritize and recommend environmental improvements through a company-wideDfE program.

The DfE program has three priorities:

Energy efficiency - reduce the energy needed to manufacture and use our products

Materials innovation - reduce the amount of materials used in our products and develop materials that have less environmental impact and more value at end-of-life

Design for recyclability - design equipment that is easier to upgrade and/or recycle

These main priorities are achieved by: Placing environmental stewards on every design team to identify design changes that may reduce environmental impact throughout the product's life cycle.

• Eliminating the use of polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) flame-retardants where applicable.

• Reducing the number and types of materials used, and standardizing on the types of plastic resins used.

• Using molded-in colors and finishes instead of paint, coatings or plating whenever possible.

• Helping customers reduce energy consumption with HP's printing, imaging and computing products.

• Increasing the use of pre-and post-consumer recycled materials in product packaging.

• Minimizing customer waste burdens by using fewer product or packaging materials overall.

• Designing for disassembly and recyclability by implementing solutions such as the ISO 11469 plastics labeling standard, minimizing the number of fasteners and the number of tools necessary for disassembly.

Product Design for the Environment

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CSR - Financials

Source: www.ibm.com/gbs/csrstudy


Table Discussion

Where does CSR fit into your strategy?

Have you embraced it throughout your organization or in one key area, like culture or values?


Agenda






Case Study: Amanco

Construction

Infrastructure

Agricultural Solutions

Synthetics (filtering, drainage, etc)


Amanco Background

Latin America‟s largest producer of plastic pipes for water transport

Triple Bottom Line introduced in 2000◦ Create economic sustainability in the long run.

◦ Generate value through a system of corporate social responsibility.

◦ Generate value through environmental management.

To be recognized as a leading industrial group in Latin America, operating in a framework of ethics, eco-efficiency, and social

responsibility, that generated economic value and improved its neighbor’s and its region’s quality of life.”

Vision


Problem with the first scorecard

Salas (CEO) felt, however, that the initial sustainability scorecard just classified different programs and actions into five blocks.

It did not clearly present the triple bottom line concept as an element for competitive advantage development and value creation.

He wanted a clearer, more logical representation.



First Sustainability Scorecard 2002

Challenges

• No definitive top-line measure

• Environment and Social separate (for importance)

• E&S separate from customer strategy was challenging



Note

• EVA at the top of the scorecard

• Social and Environmental strategy linked and driving force in the strategy

• Influencing competitors and educating the market

Current Strategy Map (2008)



Table Discussion

Is this realistic in your organization?

How might you adapt CSR to your strategy?


Thank You

If you have more questions on Corporate Social Responsibility and the Balanced Scorecard, please contact us at:

Ted [email protected]

617 379-0918

Dylan [email protected]

617 379-0918

www.ascendantsmg.com



http://www.ascendantsmg.com/

balanced scorecard and corporate social responsibility

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