beacon hill team11_vale_csr_v2.0
DESCRIPTION
HULT Intl Business School team assignment about CSR. The company that our team selected was VALETRANSCRIPT
VALE; The CSR Report Card Team Project Final Presentation
Team 11, Beacon Hill
Anastasia Elpida Kokkota
Ato Mensah
Junhee Han
Manish Murarka
Ricardo Moraes
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
March 2011
01 Introduction
02 Mining Industry
03 Company Background
04 Business Overview
05 CSR at Vale
06 Recommendation
07 Reference
CONTENTS
There is no future without miningAnd there can be no mining without caring about the future
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence 1
01 Introduction
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence 2
02 Mining Industry
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence 3
1904
founded 115,000 employ-
ees
5 continents
2nd largest mining company in the
world
14.93 billion dallars revenue in
2010
35 countries
03 Company Background
1. Numbers in VALE
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
03 Company Background
Vision
MIission
Values
“To be the largest mining company in the world, and to surpass the established standards of excellence in research, development, project implementation and business operations”
“To transform mineral resources into prosperity and sustainable development”
• Ethics and Transparency• Excellence in performance • Entrepreneurship• Economic, Social and Environmental Responsibility• Prioritizing Life and Safety• Respect for Diversity
4
2. Vision, Mission, and Values
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
04 Business Overview
5
1. Line of Business
• Iron ores• Iron pellets• Manganese
Ferrous Minerals
Non-ferrous Minerals
CoalLogistics
and Services
• Nickel• Aluminum• Copper• Fertilizer Nutrients• Kaolin
• Metallurgical• Thermal
• Railroads• Maritime Terminals• Ports
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence 6
04 Business Overview
2. Company Governance Model
Executive Officer Human Resources
and Corporate
Executive Officer Non-Ferrous
Minerals
Chief Financial Offi-cer
Executive Officer Ferrous Minerals
Executive Officer Logistics , Projects Management and
Sustainability
CEO
Board of Direc-tors
General Stakeholders
Assembly
Fiscal Council
Internal audit
Advisory Committees• The Accounting Committee • The Executive Development Committee • The Strategy Committee • The governance and Sustainability Committee• The Finance Committee
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence 7
04 Business Overview
3. Stakeholders
Media
Governments
Environment
Shareholders
Employees
Suppliers
Local Communities / NGOs
Management
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
05 CSR at VALE
1. Key Values
Sustainable Development Policy
Environmental Management
Climate Change
Biodiversity
VALE Florestar
VALE Foundation
Technology Institution
Human Rights
CSR at
8
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
05 CSR at VALE
2. Financial Structure
9
U$ 781 million
Social and Environmental investments in 2009
U$ 1.5 million
Donation to Red Cross Japan in 2011
U$ 520 million U$ 201 million
Environment Social Projects
9.82
Price / Earnings Ratio
U$ 171.58B
Market Cap.
9.39
ROE (Industry 7.26)
5.23
ROA (Industry 3.41)
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
05 CSR at VALE
3. Triple Bottom Line
10
Sustainable Development Policy
Environmental
Responsibility
Financial
Responsibility
Social
Responsibility
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
05 CSR at VALE
3. Sustainable Development Policy
11
• Value added to stakeholders• Anticipation and prevention• Legislation as baseline: continuous improvement• Uphold organization and discipline• Ethics and respect in business
V.A.L.U.E. Creation
• License to operate• Order for development• Communication and engagement• Alliances with key stakeholders• Legacy for the region
L.O.C.A.L. Sustainable Development Catalyst
• Guaranteed transparency• Leadership• Observations of trends• Best practices• Act local, think global• Legacy for future generations
G.L.O.B.A.L. Sustainability Agent
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
05 CSR at VALE
4. Environmental Management
12
Waste management
34.1% reduction in generation of oil-contaminated
Water Resource Management
Recycle 76% of water usage
Risk management
Corporate, business units, operational activities
Energy management
- In 2010, decrease energy consumption in Canada by 5%
- Invested in palm oil, eco-friendly raw material for biodiesel production
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
Vale Carbon program
$3million investment to cut gas emissions and eliminate carbon.
Climate Change Letter
- Signed agreement to reduce greenhouse gas emissions by 2012
- Approved by United Nations Leadership Forum on Climate Change
05 CSR at VALE
5. Climate Change
13
Greenhouse Gas Emissions
- 22% reduction in direct CO2 emissions in 2009
- 40% reduction in indirect CO2 emissions in 2009
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
- Vale operations interact with 2,850 plant species and 3,400 animal species of
which 114 are in danger of extinction. Union for Conservation of Nature (IUCN)
- 9% of their total land is located on legally protected land
- 28% of land located in high biodiversity value areas
6. Biodiversity
14
05 CSR at VALE
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
Started in 2007 to promote reforestation on degraded areas with native and
exotic species
- Objective: recover 300,000 hectares of Amazon forest.
- Result:
7. Vale Florestar
15
05 CSR at VALE
• 64 farms in 95,000 hectares reforested
- 59,500 hectares with native forest protected
- 32,000 hectares for commercial plantations• 11 million of new plants.• In 2007, 873 people were working directly or indirectly with this project
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
• Vale Foundation programs are
active in Brazil, Colombia and
Mozambique.
• Investing in education supporting
schools and creating literacy
programs, sport activities and
health care.
• Partnership with several
governments to develop all the
areas.
8. Vale Foundation
16
05 CSR at VALE
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
• Investing in innovation and new technologies for mining
• 3 research centers
• 20 countries around the World
• $2.3 million in 80 graduate scholarships
9. Institution of Technology Vale
17
05 CSR at VALE
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
10. Human Right
18
05 CSR at VALE
VALE’s Spheres of Influence to respect and promote human rights
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
10. Human Right
19
05 CSR at VALE
Employees
They are creating great conditions for their employees and they are enforcing
their personal and professional education
Supply chain
Vale is creating strong relationships with its suppliers and investigating and
preventing child abuses and workers conditions
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
10. Human Right
20
05 CSR at VALE
Local Communities
Respect to local cultures
Governments
Working together with governments to improve local human rights.
In addition, align with all the government legislations
Society in general
Vale is actively involved in the improvement of the society and that can be proved
from Vale’s membership and acceptance of the following organizations or con-
tracts:
United Nations Global Compact ,UN Universal Declaration of Human, International
Council on Mining and Metals (ICMM), International Labor Organization (ILO)
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
11. Examples
21
05 CSR at VALE
• ISO 14001 standards
• Vale decreased the waste in aluminum area from 42.000 tons to 4.400 tons
• 18% of the managers globally and 1.400 employees received training
• In 2009 is creating the code of for its suppliers
• In 2007 Vale becomes a member of UN Global Compact
• Vale has a Governance and Sustainability Committee
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
Vale rises from B+ in 2007 to A+ score in 2009
"Vale has successfully aligned its CSR efforts with its existing business “ – Forbes
“U.N. Global Compact recognizes Vale’s Sustain-ability Report” - U.N.
Vale not part of Dow Jones Sustainability Index
Economist calls the company “Valuable Vale”
12. External opinions about Vale
05 CSR at VALE
22
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
CSR communication
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06 Recommendations
Expand CSR outside of Brazil
Improve diversity
VALE; The CSR Report Card Team Project Final Presentation, March 2011
Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010Professor Joanne Lawrence
http://www.bus-ex.com/article/vale
http://www.nap.edu/openbook.php?record_id=10318&page=10
http://www.vale.com/en-us/sustentabilidade/fundacao-vale/Documents/folder-vale-foundation.pdf
http://www.vale.com/pt-br/sustentabilidade/mudancas-climaticas/Documents/CDP-2010-Vale.pdf
http://www.miningweekly.com/article/vale-says-brazil-govt-overcharging-for-royalties-2011-03-10
http://www.economist.com/node/17095748
http://www.e-mj.com/index.php/features/850-brazil-mining.html?start=3
http://www.forbescustom.com/DiversityPgs/CSRBusinessofEveryCompany.html
http://www.miningwatch.ca/en/vale-s-billion-dollar-bonus-another-example-edc-s-faulty-csr
http://www.environmentalleader.com/2010/05/28/csr-reporting-improves-co-performance-gri-hands-out-awards/
http://en.wikipedia.org/wiki/Vale_%28mining_company%29
http://www.unglobalcompact.org/participant/2367-Companhia-Vale-do-Rio-Doce
http://www.vale.com/en-us/sustentabilidade/direitos-umanos/Documents/FINAL%20VALlaminaingles-110110_ch1.pdf
http://www.vale.com/pt-br/sustentabilidade/mudancas-climaticas/Documents/CDP-2010-Vale.pdf
Vale sustainability reports 2007, 2008, 2009
http://valeinconegotiations.com/
http://www.wsws.org/articles/2010/jul2010/inco-j12.shtml
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07 Reference