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Introduction

Reed Elsevier is a leading provider of professional research

information to organisations around the world. It publishes

 journals, books and databases and manages exhibitions and

events. Its well-known titles - such as New Scientist and The

Lancet - appear both in print and online. Reed Elsevier has a

worldwide customer base working in many fields, including

science, research and the law, as well as in public and academic

libraries and commercial organisations. This includes over

11 million scientists who access information directly fromReed Elsevier’s ScienceDirect database – the world’s largest

online library of full-text research papers.

Reed Elsevier was formed in 1993 when the businesses of the

British publisher Reed International and the Dutch publisher

Elsevier NV merged. The Reeds were Methodists and took a

philanthropic approach to the business. This means that they

applied the present-day idea of Corporate Responsibility (CR)

within the company. They promoted health and safety for their

workers and better standards of living.

 The company now operates in more than 200 locations worldwide

and annual revenues for 2011 were £6 billion. Revenues are

largely from subscriptions to its titles. It employs around 30,000

people including IT specialists, editorial teams and marketing,

sales and customer service staff. To enable the business to focus

on specific customer needs, the company has five divisions.

1. Elsevier – publishing science and health information to promote

research and discovery

2. LexisNexis® Risk Solutions – provides data and analytics that

allow customers to evaluate and manage risks associated with

transactions and to improve performance

3. LexisNexis® Legal & Professional – provides legal, tax,

regulatory news and business information and analysis to legal,

corporate, government, accounting and academic markets

4. Reed Exhibitions – organising events, exhibitions, conferences

for over 44 industry sectors

5. Reed Business Information – producing trade journals, blogs

and web directories to deliver information to users worldwide.

Reed Elsevier’s values guide the behaviours of its people toward

providing the right products and services to enable the company to

grow. Reed Elsevier’s values also affect the strategies it develops for

both internal and external stakeholders. It aims to respond to all

their needs through innovative products and services.

Corporate responsibility is an integral part of the business.

Matching financial and non-financial performance provides a

win/win outcome for the business and its stakeholders.

Corporate Responsibility and stakeholders

Curriculum topics covered: • Internal stakeholders

• External stakeholders • Stakeholder conflict • Benefits of stakeholder focus

C16th – Elsevier family sets upbooksellers and printers

1880 – Jacobus George Robbers setsup publishing company in Holland usingElsevier name

1894 – Albert E Reed sets upnewsprint manufacturing in Kent, UK

1951 – Elsevier Press Inc set up in USA 

1970 – Reed becomesReed International Ltd

1979 – Elsevier Press becomes

Elsevier Scientific Publishing

1982 – ReedInternational PLC

1991 – Elsevier acquires

Pergamon Press in UK

1993 – Reed Elsevierestablished

 VALUES

customer focus   valuing our people

boundarylessness   passion for winning

innovation

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www.thetimes100.co.uk

Reed Elsevier’s market leadership comes from focusing on the needs

of all of its stakeholders – internal and external. ‘Our unique

contributions as a business – how we benefit society through our 

 products and services – are our starting point…we concentrate on

universal sustainable access to information, advancing science and 

 health, promoting the rule of law and justice, and protecting society.’

(CR Report 2011)

Reed Elsevier is committed to using its extensive networks and

expertise to facilitate the exchange and dissemination of useful

information. Now in its second year, the Reed Elsevier

Environmental Challenge was launched to identify innovative

projects that provide sustainable access to safe water where it is

presently at risk and/or access to improved sanitation. To help in

the formulation of proposals, Reed Elsevier offered access to its

products to more than 140 applicants. The winning project, from

the Centre for Affordable Water and Sanitation Technology, will

provide iron-amended Biosand Filters to villages in Nepal. Second

prize went to Sanergy’s sustainable sanitation system for the

slums of Kenya.

Reed Elsevier has a growing portfolio of products and services

that advance environmental knowledge and understanding. In

2011, it supported the UNICEF report, Children’s Vulnerability to

Climate Change and Disaster Impacts in East Asia and the Pacific,

with access to product, experts, editorial assistance and funding.

 This case study shows how Reed Elsevier’s business benefits from

meeting the needs of all of its stakeholders.

Internal stakeholders

Reed Elsevier’s internal stakeholders have a range of interests in

the different parts of the company and its activities. Shareholdersare key internal stakeholders. As investors, they take a financial

stake in the company by purchasing shares. They will look for the

best return on investment which is usually made in the form of a

share of the profits.

• CR strategies benefit shareholders by making the business

attractive to investors and improving its share value.

• By reducing costs and therefore improving revenues and

efficiency, Reed Elsevier steadily increases the dividends paid

to its shareholders.

 Authors who provide the journal articles for Elsevier’s scientificpublications are also internal stakeholders. They have the

opportunity to put the final version of their work on their own

institution’s website as well as having it published through Elsevier.

Employees at all levels are an important internal stakeholder group.

Reed Elsevier needs to retain its diverse and talented employees

who bring professionalism and energy to their roles. This helps the

business to provide the highest levels of customer service, attract

new customers and retain existing ones. To encourage this,

Reed Elsevier has set up various initiatives internally, for example:

•  All employees are offered training on the Reed Elsevier Code of 

Ethics and Business Conduct to ensure best practice. 99%

had completed the course by the end of 2011.

• By the end of 2011, 99% of employees had completed

anti-bribery training.

• Flexible or home working across the business supports the

work-life balance of employees, enhances performance and

productivity and reduces employee stress.

• ‘Boundarylessness’ – the company’s different divisions act as one

organisation – provides opportunities for staff to take advantage

of internal transfers and promotions to develop. This enables

them to make a contribution to the whole of Reed Elsevier.

External stakeholders

External stakeholders are those individuals or groups outside a

business. To differentiate the company from other informationproviders, Reed Elsevier focuses on CR performance.

Customers

Customers expect good value, high-quality products and great

service. Reed Elsevier achieves this through close relationships

and consultation with customers. It conducts widespread surveys

of customer opinion.

 These identify the value customers place on its services and

products and highlight potential improvements. In this way,

customers have a real role in helping the business to develop andgrow. This results in longer-term relationships where customers

feel they have an input into the services offered. It builds loyalty

and creates the potential for increased business.

Reed Elseviercustomers

Scientists  Healthcare

providers

Legalprofession

Industry

Research

Students

Educators

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Reed Elsevier customers come from the public, commercial and

academic sectors, from many professions and geographic

regions, which is reflected in the spread of its business divisions,

for example:

• Elsevier’s scientific publications provide critical research

information to support innovation and development. They have

enormous social value and may affect lives across the world.

 The division’s online medical data provides vital information to

doctors in hospitals. Video, text and animation of medical

procedures help doctors and students learn.

• LexisNexis provides online solutions to help professional users

to access a wealth of information quickly to support their jobs

on a daily basis. For example, a lawyer may prepare for a legal

trial using earlier case law.

Suppliers

Suppliers also hold a stake in the company to which they provide

materials and services. For example:

•  As part of the company’s Socially Responsible Supplier

programme, suppliers are asked to sign the Reed Elsevier

Supplier Code of Conduct. This sets out the standards which it

expects its suppliers to meet. Suppliers must follow all relevant

laws, promote best practice and respect environmental

conditions, such as using sustainable sources for paper or

dealing responsibly with waste products.

Partners

Reed Elsevier has established partnerships across its different

divisions. For example:

• Elsevier promotes science, technology and medical information

programmes. The Elsevier Foundation promotes the work of 

libraries and scholars in science, technology and medicine.

• Over the last seven years, Reed Exhibitions has given free

space at the London Book Fair to Book Aid International whichannually provides 500,000 books – including those donated

from across Reed Elsevier – to readers in the developing world.

 This enables the charity to engage with a wide range of 

potential book and financial donors.

• Partners in the supply chain, such as one of Reed Elsevier’s

printers in China, also benefit from its responsible approach to

production. By applying the Supplier Code of Conduct, the

printer found that improved conditions led to better quality

output, lower turnover of staff and greater employee loyalty.

Community Reed Elsevier’s initiatives make a difference to communities

around the world. The RE Cares programme is supported both

centrally and in all business divisions. This programme encourages

staff to work together to make a difference in local communities.

More than 30% of employees volunteered through RE Cares

in 2011:

• It supports education for disadvantaged young people.

Initiatives range from reading support to charity fundraising.

• RE Cares Champions awarded over $500,000 to more than

80 charities in 2011.

• In 2011, Reed Elsevier announced the winners of the first RE

Cares ‘Recognising Those Who Care’ Awards to highlight the

outstanding contributions to RE Cares of eight colleagues and

four staff teams.

• Reed Elsevier has a formal policy of donating unwanted book stock to institutions to provide more access to information.

Society 

Reed Elsevier’s CR approach impacts on society in several ways:

• In line with its Code of Ethics, it promotes responsible

advertising and a transparent editorial policy for its publications.

• Reed Elsevier is committed to reducing use of energy, water

and paper in its publishing processes and using sustainable

materials wherever possible. It has seen a 39% reduction in

paper between 2007 and 2011, used 28% less water and in

2011 the company gained 23% of its power from renewable

sources. The company uses video conferences and web

seminars to save on travel costs and reduce its carbon

emissions. It has a network of Environmental Champions and

employee-led Green Teams to promote greater recycling and

reduced energy use throughout the business.

• Reed Exhibitions drives forward sustainable practice in the

global meetings and events industry. It has implemented the

British Standard (BS 8901) for sustainable event management

in nine independently audited and certified exhibitions in the

last year.

• In 2011, 69 office locations gained green status by achieving

five environmental standards as part of the Reed ElsevierStandards programme. Two RBI offices and one ELS office in

London and the ELS Oxford UK locations were the highest

ranked, achieving all eight of the standards.

Potential stakeholder conflict

It is important for a business to balance the interest of its various

stakeholders. Different stakeholder groups have different priorities,

for example:

• Shareholders expect the business to make a profit and receive

a return on their investment.

• Employees require good working conditions if they are tobe retained.

• Investors may want to see evidence of how a company responds

to environmental issues before committing money to the business.

www.thetimes100.co.uk

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Stakeholder conflict arises when the needs of some stakeholder

groups compromise the expectations of others. A business has to

make choices which some stakeholders might not like. For

example, the cheapest supplier goods, which can help keep

prices down for customers, must not come at the expense of 

ethical practice by suppliers.

Some activities may not give immediate financial return on

investment but support the business’ ethical standards. Such

policies need to be communicated and explained to all

stakeholders involved, so they understand the longer-term value

they provide. For example, investment in ‘green’ energy (such asfrom solar or wind farms) may be more expensive but can help the

company reduce its environmental footprint.

Supporting employees may also lead to trade-offs. Reed Elsevier

employees are offered development opportunities so that they can

reach their potential. Reed Elsevier will have to justify this

investment against the opportunity cost of using the time and

resources for other purposes. It will also have to assess the

potential downside of not training its employees. This could

include losing good people to other organisations or mistakes

happening through lack of training.

The benefits of a stakeholder focus

Businesses do not work in isolation. They affect the lives of people

in the global community in many ways. Reed Elsevier believes it

must be accountable to communities and give something back. Through employee community work, for example, its people not

only make a difference to local communities around the world,

they also demonstrate publicly Reed Elsevier’s values.

‘Valuing People’ is a stakeholder focus which is important to

Reed Elsevier. The company recognises and values its people.

 This focus provides benefits in the form of motivated and loyal

employees. Challenges, opportunities and rewards for all workers

are part of Reed Elsevier’s approach to supporting its people.

 This results in employees feeling encouraged, involved and

motivated – which leads to improved efficiency. Improved

efficiency reduces costs which increases sales and improves

revenues – which contribute to higher profitability. Attracting and

keeping good employees means the business will achieve its

objectives and meet the expectations of customers.

Customers want good quality products and services that are value

for money. Reed Elsevier listens to its customers and meets their

needs with innovative ideas that create cost-effective and

convenient solutions to their business challenges. For example,

Reed Elsevier’s online services provide customers with the

opportunity to cross-link, cross-reference and search for

information. This has helped to ensure more than 60% of 

revenues now come from online products and services.

Reed Elsevier’s CR activities focus on doing what is relevant for

the business and its stakeholders. Some decisions may not

generate immediate return on investment. However, long term,

they can benefit the company by attracting investors looking for

ethical companies, greater employee retention and higher quality

services which meet the needs of consumers.

Conclusion

 A focus on stakeholders provides a way of keeping all aspects of 

the business in balance. Reed Elsevier pays close attention to the

expectations and needs of all its stakeholders. Corporate

Responsibility touches on all aspects of the business and

strengthens Reed Elsevier’s business. The company believes that by

living up to its responsibility to contribute positively to its employees,

customers, society and the environment in the carrying out of its

business, it has a sustainable business model leading to growth.

Reed Elsevier | Corporate Responsibility and stakeholders

E x am- s  t   yl   e q u e s  t  i   on s 

 www.reedelsevier.com

1. Use a diagram to illustrate the main internal and

external stakeholders in Reed Elsevier. (2 marks)

2. Explain the difference between a stakeholder and a

shareholder. (4 marks)

3.  Analyse the potential for conflict between different groups

of stakeholders. Explain why it is important for Reed

Elsevier to engage in consultation with them. (6 marks)4. Evaluate the benefits to a business of focusing on the

needs of all stakeholders. (8 marks)

CorporateResponsibility

 Affects allstakeholders

Translates intobusiness benefits