Putting responsible behaviour at the heart of business

Corporate Social Responsibility:The Business Case

Heart of the City January 2018

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Putting responsible behaviour at the heart of business

Guidance

The following slides have been designed to help Heart of the Citymembers at the early stages of developing their corporate socialresponsibility (CSR) or responsible business approach.

Simply amend the slides as relevant for your organisation to help you to communicate the business case for CSR and secure senior level support, employee engagement and buy in.

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Putting responsible behaviour at the heart of business

Heart of the City

<COMPANY> is taking part in Heart of the City’s 2018 FoundationProgramme – a free 12 month programme to help us develop our CSRstrategy.

Implementing a CSR strategy at <COMPANY> will ensure we do goodbusiness better. Not only will this result in measurable and improvedoutcomes for the business it will also benefit:

• Our employees• Customers• Clients• Suppliers• Local communities• Environment• Wider society

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Putting responsible behaviour at the heart of business

Doing good is good for business

So what do we mean by Corporate Social Responsibility?CSR is a continuing commitment by business to behave ethically andcontribute to economic development while improving the quality of life ofthe workforce as well as the environment, local communities and widersociety (The World Business Council for Sustainable Development)

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Corporate social responsibility (CSR), is not only the right thing to do butit makes sound business sense and goes hand-in-hand with sustainedgrowth and profitability.

Companies are now developing more sophisticated andintegrated CSR strategies focused on creating social valueas well as commercial value in response to increasingexpectations.

Putting responsible behaviour at the heart of business

What components make up a typical CSR programme?

• Corporate giving and strategic partnerships

• Matched giving• Give as you earn/payroll giving• Staff fundraising • Volunteering• Workplace visits/placements• Training and education for local

people

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Community

MarketplaceWorkplace

Environment

• Energy consumption• Business travel • Water consumption• CO2 emissions• Green procurement

• Ethical supply chains• Supplier diversity• Local procurement • Supplier screening • Socially responsible investment • Socially responsible products/

services • Modern slavery

• Employee wellbeing • Workforce diversity and talent pipeline• Local recruitment • Work life balance • Training and development opportunities• Fair and equitable pay• Living Wage • Employee recognition

Environment: Minimising impact on the environment

Workplace: Attracting, retaining and best people in workforce Marketplace: Integrating high

standards of Environmental, Social and Governance (ESG) in decision making across the organisation

Community: Supporting the communities in which you operate

Putting responsible behaviour at the heart of business

The business case for CSR

Key business benefits:

1. Increased brand value and financial performance 2. Increased revenue by winning more contracts and increased

credibility with clients3. Attracting and retaining the best talent 4. Employee engagement 5. Reduced absenteeism 6. Enhanced learning and development offering 7. Compliance with law8. Increased diversity and inclusion9. Reduction in costs 10. Opportunity to reduce level of risk

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Putting responsible behaviour at the heart of business

1. CSR can help to increase brand awareness and boost profits

Research shows:• There is a 5-40% increase in revenue for companies that

demonstrate a clear commitment to social responsibility Nielsen

• 55% of consumers are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact Nielsen

• Millennials are more likely to move their money out of companies that are deemed to have poor ESG values or a poor record of social responsibility (Impact Squared and Csborba & Co Ltd)

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Having a compelling CSR strategy at <COMPANY> can help us to attract new customers and increase their spend with us

Demonstrating <COMPANY’s> commitment to responsible business could not only help to increase our brand awareness but could also boost profits.

Putting responsible behaviour at the heart of business

2. CSR has the potential to set us apart from our competitors and win work

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Following the introduction of the Social Value Act 2012, businesses are increasingly being asked to demonstrate their commitment to behaving in a responsible and ethical way.

There has been a huge shift in tendering processes/ requests for proposals which require companies to answer CSR related questions and criteria e.g. commitment to reducing impact on environment/ supporting local community.

Creating a well developed CSR strategy that aligns with our business priorities can help set us apart from competitors when bidding for new contracts.

Putting responsible behaviour at the heart of business

3. A visible CSR programme is increasingly important when recruiting

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Research shows: • 90% of prospective employees agree a

company active in the community is likely to be a good employer (Social Market Foundation)

• 88% of millennials say they want to work for a socially responsible company (Deloitte)

At <COMPANY> we want to create a CSR programme that all of our people can be proud of. This will not only help boost motivation but also be key in ensuring we retain top talent.

Having a vibrant and authentic CSR programme at <COMPANY> is a key differentiator that will help us stand out and attract talent

Putting responsible behaviour at the heart of business

4. CSR is key to boosting employee engagement at <COMPANY>

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Having a well developed and communicated CSR programme that offers employee benefits such as introducing paid time off to volunteer is a great way to boost employee engagement and pride in the company.

Research from the Social Market Foundation shows that corporate volunteers are more engaged, motivated, leading to higher productivity and reduced sick leave

Having ambassadors and positive role models of <COMPANY> employees out in the local community is also a great way to help continuously build our reputation as a responsible employer

Putting responsible behaviour at the heart of business

5. Improving our approach to health and wellbeing can reduce abseentism

Did you know?

1 in 6 people experience a mental health problem in the workplace (Mental Health Foundation)

Mental health conditions are a leading cause of sickness absence in the UK – over 15m days were lost to stress, anxiety and depression in the 2016 (Office for National Statistics)

Taking a positive, proactive approach to mental health at <COMPANY> will help look after staff and grow the organisation

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Health and wellbeing is an integral part of how employees feel about their jobs; affecting their performance and how they interact with colleagues, clients and customers

Putting responsible behaviour at the heart of business

6. CSR as a complementary learning and development opportunity at <COMPANY>

Recent estimates from Benefacto show that up to £300 is spent on employee learning and development each year.

Employee volunteering is a complementary way for <COMPANY> to develop both technical and soft skills ranging from communication and teamwork to confidence and empathy.

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A study by the Social Mobility Foundation showed 65% to 80% of employee volunteers report increased teamwork, leadership and communication skills.

Putting responsible behaviour at the heart of business

7. Compliance with law

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The Companies Act 2006 requires every publicly listed company to disclose ethical, social and environmental risks in it’s annual report e.g. Environmental Protection Act 1990/ Health and Safety Legislation

Being proactive with environmental legal compliance can reduce the impact of social concern and negative community impact

Customers and clients will want to work with suppliers who uphold the same ethical principles as us – having a well developed CSR programme can help us demonstrate this

Demonstrating <COMPANY> commitment to being a socially responsible business is something being asked of us by law.

Putting responsible behaviour at the heart of business

8. Having a diverse, inclusive workforce is key to the growth of <COMPANY>

Research shows:• 69% of executives rate diversity and

inclusion as an important issue (Deloitte)• Diverse and inclusive teams are more

innovative, engaged and creative in their work (Deloitte)

• Almost ¼ of all FTSE 100 Board positions are being filled by women (Gov.uk)

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By respecting and appreciating our employees and what makes them different in terms of age, gender, ethnicity, religion, disability and sexual orientation we can be a more inclusive employer.

Investing in a broad range of skills, experiences and backgrounds gives <COMPANY> a competitive edge

Putting responsible behaviour at the heart of business

9. CSR can help us reduce costs

Research shows:• A single computer left on 24 hours a day will cost over £70 a

year. Switching it off could reduce this to £15 and prolong the lifespan of equipment (Carbon Trust).

• Heating costs will go up by 8% each time you increase the temperature by just one degree

• Water costs can be up to 1-2% of a company’s turnover. For a company with a turnover of £1 million, this is £10,000 - £20,000 a year

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Implementing an environmental programme at <COMPANY> is one of the simplest ways to decrease costs and increase profits without the need to increase sales.

There is legislation and increasing pressure on <COMPANY> to demonstrate our commitment to protecting the environment and playing a positive role in wider global issues like climate change

Putting responsible behaviour at the heart of business

10. CSR can help us to address and manage risk

<COMPANY> risk management concerns should include issues such as biodiversity, health and climate change.

Addressing relevant risk management issues such as <COMPANY> supply chain, corruption and legal risks can have a positive effect firstly by identifying risk better and reducing exposure to reputational, supply or customer loyalty risk.

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Research from Business in the Community shows:• 20% of businesses viewed environment or CSR

issues as their biggest supply chain risk

Having positive community relations within the local communities where <COMPANY> operates helps to reduce risk.

Putting responsible behaviour at the heart of business

What we need from you to make this a reality

In order to develop <COMPANY’s> approach to developing a responsible business strategy we need: <delete as appropriate>

• A workshop to define our purpose and business operations for opportunities to enhance our societal impact

• Undertake a peer/ competitor benchmarking exercise to identify what others are doing in the same industry

• Introduce a CSR committee representative of people from key departments e.g. HR, finance, marketing and comms

• Allocate/secure a % of time in role to devote to developing overarching strategy

• Appoint an exec level sponsor to support CSR strategy • Dedicate a small amount of budget e.g. £X • Introduce a network of volunteer CSR champions across the organisation

that can help activate and deliver the CSR strategy at an operational level• Enlist the support of external organisations that can help us with our

approach e.g. Heart of the City

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Putting responsible behaviour at the heart of business

Common challenges and sample responses

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CSR is not a fee earning/ cost centre

Tangible value add to overall

business

CSR is just a ‘nice to have’

Most companies have well

developed CSR programmes/ using as a key differentiator to

win work

How do we know what

areas to focus on?

4 key pillars of CSR – align these to our

business strategy

Putting responsible behaviour at the heart of business

References – Heart of the City

Heart of the City supports companies to do business better. Our mission is to encourage positive change in business behaviours, supporting our members to do business more responsibly.

We provide the knowledge and tools needed to develop a strategic approach to corporate social responsibility (CSR) and programmes that result in measurable improved outcomes for employees, customers, suppliers, the wider community and the environment.

We do this by sharing the knowledge and expertise of our supporter member companies with those at the early stages of developing their responsible business approach.

Thanks to the support of the City of London Corporation, City Bridge Trust and our supporter companies, Heart of the City is the leading responsible business network for small and mid-sized companies, putting responsible behaviour at the heart of what they do.

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Putting responsible behaviour at the heart of business

References

Extracted in December 2017 from the following web links:

Building the business case for doing good: Source: Thirdbridgehttps://blog.thirdbridge.co.uk/2017/10/27/building-the-business-case-for-doing-good/

Brand awareness and boosting profits: Source: Nielsen http://www.nielsen.com/us/en/press-room/2014/global-consumers-are-willing-to-put-their-money-where-their-heart-is.html

The Deloitte Millennial Survey 2017: Source: Deloittehttps://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html

More than CV points? The Benefits of Employee Volunteering for Business and Individuals: Source: Social Market Foundationhttp://www.smf.co.uk/wp-content/uploads/2010/03/Publication-More-than-CV-points-The-Benefits-of-Employee-Volunteering-for-Business-and-Individuals.pdf

Fundamental facts about Mental Health 2016: Source: Mental Health Foundationhttps://www.mentalhealth.org.uk/publications/fundamental-facts-about-mental-health-2016

Sickness and absence in the labour market 2016: Source: Office for National Statistics: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/articles/sicknessabsenceinthelabourmarket/2016

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Putting responsible behaviour at the heart of business

References

The business case for employee volunteering: Source: Benefactohttps://benefacto.org/one-time-employee-volunteering-business-case-time-need-believe/

Employee awareness and energy efficiency: Source: Carbon Trusthttps://www.carbontrust.com/resources/guides/energy-efficiency/employee-awareness-and-office-energy-efficiency/

Diversity and Inclusion: Source: Deloittehttps://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2017/diversity-and-inclusion-at-the-workplace.html

Press release Women on the Board: UK Government https://www.gov.uk/government/news/women-on-boards-numbers-almost-doubled-in-last-4-years

Risk Management: Source: Business in the Community https://www.bitc.org.uk/sites/default/files/kcfinder/files/Business_case_final1.pdf

Corporate social responsibility: making good business sense: Source: World Business Council for Sustainable Developmenthttp://www.ceads.org.ar/downloads/Making%20good%20business%20sense.pdf

The Millennial Challenge For Inclusive Capitalism’ Source: Impact Squared and Csorba & Co Ltd https://www.impactsquared.com/single-post/2016/10/04/For-millennials-purpose-and-precarity-co-exist-reveals-new-report-from-the-Coalition-for-Inclusive-Capitalism

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