reputation and responsibility (mattias iweborg enact sustainable strategies 24 mar2011)

© Enact Sustainable Strategies 2011

Energy and Climate – Strategic Impact on Corporate Organisations

REPUTATION AND RESPONSIBILITY(CSR + PR = TRUE?)

Mattias Iweborg, Managing DirectorEnact Sustainable Strategies


Key messages

• Reputation and responsibility are two sides of the same coin

• A company does not itself what its responsibility is;it is defined by its stakeholders

• There needs to be a match between walk and talk

• Successful management of responsibility and stakeholder relationships can be transformed into brand equity and business success

• There is money to be made here!


Sustainability

Definitions

“Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public

expectations that society has of business“

(Business for social responsibility)

“A concept whereby companies decide voluntarily to contribute to a better society and a cleaner

environment. A concept whereby companies integrate social and environmental concerns in their

business operations and in their interaction with their stakeholders on a voluntary basis“

(European Commission)

“Corporate Social Responsibility is the continuing commitment by business to behave ethically and

contribute to economic development while improving the quality of life of the workforce and their

families as well as of the local community and society at large“

(The World Business Council for Sustainable Development

in its publication "Making Good Business Sense)

“Responsibility of an organization for the impacts of its decisions and activities on society and the

environment, through transparent and ethical behaviour that

⎯ contributes to sustainable development, including health and the welfare of society;

⎯ takes into account the expectations of stakeholders;

⎯ is in compliance with applicable law and consistent with international norms of behavior; and

⎯ is integrated throughout the organization and practised in its relationships“

(ISO 26000 guidelines on social responsibility)


Typical drivers

Customers

Competence

Capital

Compliance

Cost


ReputationSustainability

Responsibility

Brand trust and reputation are formed

by others based on action and interaction

Decreasing natural resources (eco system services) and societal need for sustainability

changes market conditions

Global challenges

Market specific Company specific

Business Brand

A possible approach


Globaland local

challengesgenerates societal

responsechanging market

conditions

Societal need for sustainability

changes market conditions (for all)


Corporate behaviour

…forms trust and reputation (brand)

Brand trust and reputation are formed by

others based on actions and interaction

Shells CEO 1995


– GBP 60 – 100 million


Society

Employees

Vision &

Brand

Values &

Mission

OwnersClients

Suppliers &

Retailers

Government,

NGOs

Media

Stakeholders form the perception of

the brand

© Enact Sustainable Strategies


In came Janne Josefsson and

Mission Investigation…


…and the share price plummeted

OMXS

Hakon

Invest

Uppdrag

Granskning


Internal impact


– USD 320 million


Levels of Corporate Responsibility

© Enact Sustainable Strategies


Dark Horse

Whistler in

the darkPretender

Icon

WALKLeader

WALKLaggard

TALKLaggard

TALKLeader

Policy,

Communication

& External

Engagement

Implementation

& Outcome

Adapted from Ford Motor Company

Levels of

ambition


• One of the worlds largest

companies (around 2

million employees!)

• Mission: ”Help our

customers to save

money so they can live

better.”

• Poor reputation, under

high pressure from

NGOs, mainly regarding

poor labour practices

http://www.walmart.com/


• Started their proactive

approach around 5 years

ago, strongly led by the

CEO Lee Scott

• Now very much focusing

on business opportunities

connected to

sustainability



• To be supplied 100 percent by

renewable energy

• To create zero waste

• To sell products that sustain our

resources and the environment

Three overall goals



• Starting to communicate in stores

• Good in engaging employees – everyone has made personal commitment in the sustainability area



• Has created ”Sustainable Value Networks” on a range of

products (e.g. jewellery) and processes (e.g., waste).

Led by business responsibles, engaging various external

experts.

• Developing a product Sustainability Index – collaboration

with universities, researchers etc

• Strong push on suppliers – e.g. working closely with

selected Chinese suppliers to reduce energy use

• Begun to advocate for health care reform in the United

States, partnering with trade unions

• More about Walmart’s sustainability work http://walmartstores.com/Sustainability/

Examples

http://walmartstores.com/Sustainability/



Launched

Plan A in 2007

“because there

is no plan B”.

100 commit-

ments in 5

areas.

http://www.google.se/imgres?imgurl=http://www.csripraktiken.se/wp-content/uploads/ms_logo.jpg&imgrefurl=http://www.csripraktiken.se/2007/02/20/sa-hjalper-marks-spencer-hemlosa-handikappade-ensamstaende-foraldrar-och-unga-arbetslosa-att-fa-jobb/&usg=__-aIOYdulV4_RkvA5DYbtMjeBG3c=&h=605&w=1024&sz=58&hl=sv&start=1&tbnid=CPwYbiMxExQhtM:&tbnh=89&tbnw=150&prev=/images?q=Marks+&+spencer+logotype&hl=sv


Return system for used clothing (an soon furniture)

established in co-operation with Oxfam

Working with Oxfam to

close the loops



• 3 million garments handed in by customers

• Customers are given a 5 GBP voucher for

each garment that could be used for each

purchase over 35 GBP

• Oxfam sold the clothing

and generated 2,2

million GBP

• Average ticket 50%

higher than average for

customers using the voucher.

The first year was a huge

success!



• Has really managed to integrate

sustainability in core business

• Strong in communication &

engaging the customers,

especially the in-store

communication.

• Excellent Sustainability

Report



• Supporting a strong deal

in Copenhagen

• Consumers can add their

own message to a virtual

patchwork quilt

• More info see

http://plana.marksandspencer.com/you-can-do/climate-change/cop15

Engaging in public policy










Key messages

• Reputation and responsibility are two sides of the same coin

• A company does not itself what its responsibility is;it is defined by its stakeholders

• There needs to be a match between walk and talk

• Successful management of responsibility and stakeholder relationships can be transformed into brand equity and business success

• There is money to be made here!


Дякую эа увагу!

Большое спасибо!

Mattias Iweborg

[email protected]

Enact Sustainable Strategies

Tel. +46 70 593 43 60

www.enact.se

reputation and responsibility (mattias iweborg enact sustainable strategies 24 mar2011)

Art & Photos

enact sustainable

sustainable

key messages

successful

social responsibility

mattias iweborg

stakeholder

market conditions