how to develop a responsible business strategy€¦ · learning objectives • how to embed...
TRANSCRIPT
HOW TO DEVELOP A
RESPONSIBLE
BUSINESS STRATEGY
Will begin shortly….
Shruti Choudhary Corporate Adviser
Stephen GeeSenior Development & Business Support Manager
HOW TO DEVELOP A RESPONSIBLE BUSINESS STRATEGY
LEARNING OBJECTIVES
• How to embed responsible business at the core of your business strategy
• Key questions to ask of your business in order to develop a leading strategy
• The role of Risk Assessment and Materiality Assessment
• Supporting mechanisms that will help you integrate and deliver the strategy
STEPS WE WILL COVER
Understand where you
currently are
Assess your business context
Design your strategy
Deliver your strategy
Monitor and communicate your strategy
STEPS WE WILL COVER
Understand where you
currently are
Assess your business context
Design your strategy
Deliver your strategy
Monitor and communicate your strategy
CURRENT LEVELS OF SATISFACTION / DISSATISFACTION
• External benchmarking
How does your organisation’s CR performance compare to your sector? Business
generally? Best Practice?
• Stakeholders
Which stakeholders are asking for changes?
• Media Reviews / Social Media
How do the media report your organisation?
• Industry / sector issues
What are the topical issues facing your sector and what are you doing about them?
CURRENT LEVELS OF SATISFACTION / DISSATISFACTION
• Internal benchmarking, KPIs
How do your internal business units compare against each other?
• Scenario planning
Do you know what will be important in 5, 10 or 20 years? Do you have plans
to address this?
• Employees
What do employees think should be done differently?
STARTING ACCELERATING
Separate vision for responsible business - does not
support a core business strategy
Vision partly underpins the core business
strategy, but with significant omissions.
Responsible business focus is in one or two areas
e.g. charitable giving.
Programmes address negative impacts on
society and environment
Approach is to be compliant Approach is to manage risk
Key questions to ask are:
• How does responsible business support your vision? And vice versa.
• Is your vision aspirational enough?
TONE AT THE TOP – VISION AND
PURPOSE
LEADING SHAPING
Active in addressing social and environmental
challenges
Specific and clear on the business's contribution
to a more sustainable future
Prepared to challenge ‘business as usual’ Willing to create new paradigms
Approach provides strategic competitive advantagePromoting responsible business across the
sector and the full value chain
Key questions to ask are:
• How does responsible business support your vision? And vice versa.
• Is your vision aspirational enough?
TONE AT THE TOP – VISION AND
PURPOSE
VISION
To create a better everyday life for the many people
KEY MESSAGES
To do business with a clear conscience is an attitude that pays. We
have to find more time for ourselves and to regain respect for the
environment in which we live.
TONE AT THE TOP – VISION AND
PURPOSE
VISION
To improve the lives of working people in the UK & US
MISSION
To change the lives of working people by helping them become debt-free and save
towards their financial goals
KEY MESSAGES
We accelerate an employee's journey from debt to savings, improving their financial
and mental wellbeing and increasing engagement at work
TONE AT THE TOP – VISION AND
PURPOSE
STEPS WE WILL COVER
Understand where you
currently are
Assess your business context
Design your strategy
Deliver your strategy
Monitor and communicate your strategy
Use approaches such as:
• SWOT
• PESTLE
To ensure that ‘responsible business’ is fully considered at this stage we suggest that you conduct other assessments:
• Risk assessment
• Materiality assessment
IDENTIFY NEW RISKS, OPPORTUNITIES AND
MATERIAL ISSUES
• Especially ‘Non-financial’ / Secondary Risks
• Negative impacts
RISK ASSESSMENT
Key risk descriptionImpact
(scored 1-4)Likelihood
(scored 1-4)Severity
Lack of climate change strategy will fail to attract investment opportunities 4 4 16
Low-key health and wellbeing strategy results in significant absence 4 3 12
Ineffective internal governance results in unethical practices 3 3 9
Shorter product lifespan leads to increased use of conflict minerals 4 2 8
Lack of training for apprentices results in lower product quality 3 2 6
Lack of traceability results in unsafe chemicals in product portfolio 3 1 3
• Do we identify ‘non-financial’ risks via our standard risk management process?
• Does our assessment of the severity of the risk take into account changing social attitudes?
• Does our strategy address how we will eliminate or minimise our negative impacts?
Key questions to ask are:
RISK ASSESSMENT
Imp
ort
an
ce to
sta
ke
hold
ers
Impact on business
Human
Rights
Water
Stewardship
Gender
equality
Electronic
Waste
• A materiality assessment helps identify and prioritise
issues that matter to the business and its stakeholders.
Compared to a risk assessment it takes a longer-term
view and is more inclusive of external stakeholders.
• This insight is valuable to:
• Strategic planning
• Operational management
• Capital investment decisions
• Sustainability reporting Skills Gap
Imp
ort
ance to
sh
are
ho
lde
rs
MATERIALITY ASSESSMENT
Demographic
and Social
Changes
Values shift Resource
scarcityDisruptive
business
models
Trust &
Transparency
Examples Increasing
gap between
rich and poor
Increase of
Fairtrade
and ‘buy
local’
Overseas
water
scarcity
Technology
enabling
consumers
to share
Customer
demands for
clearer
product
information
Trends
Source: Force for Change: global megatrends compendium, BITC
MATERIALITY ASSESSMENT
• Do you know who your stakeholders are?
• Do you take a strategic approach to stakeholder engagement?
• Do you seek to identify new opportunities and trends as well as risks?
Materiality assessments require good stakeholder
engagement:
MATERIALITY ASSESSMENT
Nestle 2015 Materiality matrix
Water
Stewardship
Food Safety
Women’s
empowerment
Animal welfare
Traceability
Impact on Business
Import
ance t
o
Sta
keh
old
er
Human
Rights
Rural
Development
Business Ethics
Safety & Health
MATERIALITY ASSESSMENT
STEPS WE WILL COVER
Understand where you currently are
Assess your business context
Design your strategy
Deliver your strategy
Monitor and communicate your strategy
BUSINESS VISION
Theme 1 E.g. Nutrition E.g. Environmental Sustainability
Objectives & KPIs
E.g. Decrease sugars, sodium and
saturated fat
E.g. improve water efficiency across
operations.
KPI = withdrawal per tonne of product
Issue A Issue BHealth and
WellnessObesity Climate Change
Resource
Efficiency
Issue C Issue DResponsible
MarketingMaternal Nutrition Food Waste Natural Capital
ProgrammesE.g. Use an alternative oil to cut
saturated fat from Asian noodles
E.g. Carry out Water Resource
Reviews
Risk Assessment, Materiality Assessment, PESTLE & SWOT
• Heathrow Airport’s – Heathrow 2.0
• IKEA People & Planet Positive
• Unilever’s Sustainable Living Plan
• M&S Plan A 2025
STRATEGY EXAMPLES
✓ Core products and services
✓ Objectives for medium and long term
✓ Based on input from wide range of stakeholders
✓ Identified megatrends
✓ Provide competitive advantage
CHARACTERISTICS OF A GOOD STRATEGY
Leading Shaping
Active in addressing social and environmental
challenges
Specific and clear on the business's contribution
to a more sustainable future
Prepared to challenge ‘business as usual’ Willing to create new paradigms
Approach provides strategic competitive advantagePromoting responsible business across the
sector and the full value chain
DECIDING YOUR LEVEL OF AMBITION
STEPS WE WILL COVER
Understand where you currently are
Assess your business context
Design your strategy
Deliver your strategy
Monitor and communicate your strategy
• Leadership – Are your leaders willing to challenge accepted norms?
• Values – Is there active promotion across the whole organisation?
• Employee Engagement – Will your strategy inspire employees?
• Collaboration – Will you create strategic partnerships?
• Innovation – How will you innovate for positive outcomes?
• Governance – How is your board organised to drive responsible business?
• Metrics – How will you select the appropriate metrics to support your strategy?
SUPPORTING MECHANISMS
NEXT STEPS – IN HOUSE WORKSHOP
NEXT STEPS - FURTHER SUPPORT FOR BITC
MEMBERS
Benchmarking services
Purpose toolkits
Strategy review service
Training courses
Stakeholder mapping and materiality workshop
Future Landscapes, risks and opportunities
Stakeholder Engagement
Training courses
Strategy development discussion
Understand where you
currently are
Assess your business context
Design your strategy
Deliver your strategy
Monitor and communicate your strategy
Who we’ve
worked with
NEXT STEPS - FURTHER SUPPORT FOR
BITC MEMBERS
04/02/2020
@BITC
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