Slide 1 CSR/CR/Sustainability what is it? • An organisation’s commitment to voluntarily integrate social, economic, ethical and environmental responsibilities into their normal business operations and in their interaction with all their stakeholders i.e. being a responsible business. • Stakeholders (especially clients) are very concerned about HOW we do business - not just WHAT business we do • CSR is not altruism, philanthropy – or an optional extra - but sound business sense and a key differentiator.
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Slide 1
CSR/CR/Sustainability what is it? • An organisation’s commitment to voluntarily integrate
social, economic, ethical and environmental responsibilities into their normal business operations and in their interaction with all their stakeholders i.e. being a responsible business.
• Stakeholders (especially clients) are very concerned about
HOW we do business - not just WHAT business we do • CSR is not altruism, philanthropy – or an optional extra - but sound business sense and a key differentiator.
Slide 2
CSR / CR ‘Pillars’ • Workplace (employer/employee responsibilities, working practices etc) • Marketplace (CRM, SRM, procurement Policies, practices + procedures) • Environment (CF, energy / waste management, renewables, biodiversity) • Community (charity support / community investment, social enterprises)
• Governance (CSR reporting, transparency, ethical business, accountability).
Slide 3
CARBON DISCLOSURE PROJECT
Corporate Assessment of Environmental, Social & Economic
Responsibility
EIRiS
Slide 4
80:20 Vision
Corporate Social Responsibility: The Double-Edged Sword
“The implications for the procurement profession regarding CSR are significant. Procurement will increasingly be required to take ownership of this entire issue ..... working closely with PR, Marketing …. Procurement has to be the voice of ‘commercial conscience’ ….” Procurement professionals – an organisation’s commercial ‘Gatekeepers’ must work with CR professionals and Function Heads to produce robust, sustainable Procurement Policies, practices and procedures, aligned with CSR Policies and with CEO endorsement.
Slide 5
CSR – Procurement, MITIE’s journey
• Sustainable Procurement Forum established 2006 Terms of Reference; - Adopt and share best practice procurement initiatives - Develop mutually beneficial collaborative trading relationships - Increase supplier CSR accountability and performance - Promote sustainable and ethical Policies, practices + procedures
• CSR criteria embedded in supplier ITT, PQQ procedures including procurement e-portal
• Supplier CSR Evaluation Audits
• Annual Supplier Forum - SME CSR/Sustainability focus 2013
• Supply Chain Sustainability Model.
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Hot Spot Report
Create Carbon Culture
Supplier Engagement
Supplier Development
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1 Supply Chain
Sustainability
Model 2
3
4
2 3
4
2
3
4
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2
3
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Diverse Partnerships
Supplier Library
Monitoring Diversity
Supply Chain Awareness
Supplier Forum
& Meet the Buyer
Supplier Evaluation
& Development
Team Awareness
& Development
Procurement
Strategy & Plan
Tools & Analysis
Evaluation
Programme
Supplier Development
Internal Development
Forums & Events
Life Cycle Analysis
Service Development
Source Innovation
Hot Spot Report
Key Activities Core Outputs Status
Supplier Engagement
Create Carbon Culture
Supplier Development
Develop carbon mapping (Trucost)
Establish Scope 3 target areas
│ CARBON
Initial ‘hot spot’ report (CL 2009)
Baseline ‘hot spot’ report (2010-11)
Target sectors / key suppliers
Supplier engagement
Category / sector / supplier prioritisation
Top 5-15 contract tie-in / SLAs
Scope 3 analysis
Target supply base
Ecodesk establishment
Top 500 TBC suppliers
Ecodesk / CR Audits / Tenders
Integrating carbon upstream Engagement with MITIE tools
Establish sustainability based sessions
Priority Key Drivers
Diverse Partnerships
Key Activities Core Outputs Next steps/Status
Diverse Supplier Library
Monitoring Diversity
Supply Chain Awareness
Align to MITIE Diversity approach
Support external engagement
Demonstrable Diversity culture
Identify key Diversity partners
Define supplier diversity categories
ERP System amendment
Validated diversity “buckets”
ERP system fields for Diverse & SMEs
Monitoring supplier use & spend
Break down Diverse & SME
Annual spend target %age / £tbc (baseline)
Total number Diverse / SMEs
Diversity partnerships
Meet the Buyer Events Workshop / case study
Events: target x1 per quarter
DIVERSITY
Key Drivers
Evaluation Programme
Key Activities Core Outputs Status
Tools & Analysis
Supplier Development
Internal Development
BMS based Sustainability Evaluation
Online web form
│ Sustainability Evaluations
Annual review Sustainability Evaluation
Auditable reporting of CR capabilities
Top 50+ across all business / categories
Build into all ‘tender’ activities
Exceeding external Sustainability target
Mature model rotate top 250 suppliers
Support for supplier awareness
2 yearly review with top 100
95% suppliers meet / exceed
Annual programme in place
Category manager training
Deep dive capability via eSourcing
1st / 2nd tier evaluation by Category owner
Tool development (e.g. Ecodesk model)
Priority
Life Cycle Analysis
Key Activities Core Outputs Status
Forums & Events
Source Innovation
Service Development
Annual Supplier Forum
Meet the Buyer Events
│ Innovation
Annual awards & awareness topic
Support & delivery of UK wide events
Establish product library
Include within relevant tenders
Target 5 / stretch 10
Reporting by product type
Establish Innovation Forums
Market developments
Category / business led forums
Key product(s) developments
Supplier Performance
Sustainable SLAs
Establish standard performance criteria
5/10 suppliers with sustianable SLAs
Priority
Slide 11
80:20 Vision Corporate Social Responsibility: The Double-Edged Sword • Supply base and value chain must be re-evaluated and aligned with CSR code
to seize competitive advantage
• SRM has to facilitate integration of CSR in supplier qualification + approval
• CSR in procurement needs senior management/CEO support
• Procurement has to contribute to carbon reduction across supply chain
• Procurement should have CSR related KPI’s (e.g. % spend on sustainability
audited suppliers, % spend on risk/high risk sustainability suppliers) • Monitoring and assessing supplier CSR performance is a critical feature of
the Procurement role.
Slide 12
80:20 Vision Corporate Social Responsibility: The Double-Edged Sword
• Procurement plays a central role in championing CSR through supply base –
thereby protecting an organisation’s brand value and reputation
• Procurement professionals need to work closely with other Functions
• Monitoring and EWS needed to assess suppliers CSR credentials, with a special focus on developing country suppliers
• SRM incorporates many CSR issues for 1st tier suppliers – but danger often
lurks with lower tier suppliers • Organisations are ultimately responsible and accountable for their suppliers
questionable business practices.
Slide 13
International standards; o Global Compact Principles o ILO Charter o Ethical Trading Initiative Base Code; • Employment is freely chosen • Freedom of association is respected • Working conditions are safe and hygienic • Child labour shall not be used • Wages are not lower than ‘minimum wage’ • Working hours are not excessive • No discrimination is practiced • Regular employment is chosen • No harsh or inhumane treatment is allowed.
Slide 14
CSR : Impact in the Community – Procurement role?
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