What’s CSR Got To Do With IT? Karen Ferris Director Macanta Consulting
Jun 19, 2015
What’s CSR Got To Do With IT?
Karen Ferris
Director
Macanta Consulting
What’s CSR Got To Do With IT?
Outline
✶ What is CSR? ✶ Who does it concern? ✶ Why is it high on the CEO agenda? ✶ The benefits of CSR ✶ Management of sustainability today ✶ Pressure on the CIO ✶ What’s ITSM got to do with it? ✶ Conclusion and questions
What is CSR?
CSR is about how businesses align their values and behaviour with the expectations and needs of stakeholders – not just customers and investors, but also employees, suppliers, communities, regulators, special interest groups and society as a whole. CSR describes a company's commitment to be accountable to its stakeholders.
www.csrnetwork.com
Who Does It Concern?
I.T. Improve energy
efficiency, reduce carbon footprint,
manage recyclables and
waste in the supply chain
Socioeconomic well-being of the regions in which they operate and the people they
employ
Reputation for CSR is becoming an important tool in attracting and retaining talent
Why is it High on the CEO Agenda?
93% of CEOs believe that sustainability issues will be critical to the future success of their business.
72% of CEOs cite “brand, trust and reputation” as one of the top three factors driving them to take action on sustainability issues. Revenue growth and cost reduction is second with 44%.
Accenture 2010
What’s CSR Got To Do With IT?
TOP TEN DRIVERS FOR CSR
1. Company culture / values 2. Reputation 3. Brand image 4. Attracting and retaining employees 5. Profitability
Green Capital and CSR Sydney
What’s CSR Got To Do With IT?
TOP TEN DRIVERS FOR CSR
6. Securing long term viability in the market place 7. Competitive advantage 8. Improving energy efficiency 9. Risk management 10. Customer demand
Green Capital and CSR Sydney
Benefits of CSR 1. Improved brand image 2. Risk reduction 3. Attracting good staff 4. Long term viability in the market place 5. Product / market innovation 6. Higher staff retention 7. Improved bottom line 8. Cost savings 9. Increased productivity 10. Reduced cost of supply chain management 11. Share price increase
Green Capital and CSR Sydney
Companies where sustainability is a top ten item in their CEO’s agendas are twice as likely as others to integrate sustainability into their companies’ business practices. This suggests that senior executives who want to reap the benefits of incorporating sustainability into their companies overall strategies must take an active role in the effort.
McKinsey & Company 2010
They (CIO and IT) will be called upon to gather, analyse and communicate massive amounts of data – some of which is not currently being collected – and ensure their accuracy, reliability and relevance. Companies need to collect and share information across a wide array of channels and with multiple constituents to ensure that customer – and partner – needs are met, not to mention the needs of the NGOs, governments and community organisations
IBM 2008
The Pressure Is On!
CUSTOMERS EMPLOYEES
SUPPLIERS
INVESTORS
PARTNERS CIO
The Pressure Is On!
CUSTOMERS EMPLOYEES
SUPPLIERS
INVESTORS
PARTNERS CIO
Environmental and social policies International trade practices
Product health and safety records Procurement and sourcing policies Product composition and lifecycle
management Community activities
Treatment of employees
The Pressure Is On!
CUSTOMERS EMPLOYEES
SUPPLIERS
INVESTORS
PARTNERS CIO
Organisation in-line with personal values Meeting CSR obligations
The Pressure Is On!
CUSTOMERS EMPLOYEES
SUPPLIERS
INVESTORS
PARTNERS CIO
Values in line CO2 emissions Product impact
The Pressure Is On!
CUSTOMERS EMPLOYEES
SUPPLIERS
INVESTORS
PARTNERS CIO
CSR factors driving investment decisions
The CIO Agenda
Integration and Alignment • Take inventory to align IT practices with that of the
company’s CSR mission statement Macavinta 2010
• The higher the level of integration, the increased ability of the organisation to realise the benefits
• Organisations with a higher level of integration of CSR said they experienced financial benefits such as high profitability, cost savings and share price increase
• Level of negative impacts or risk reduced when level of integration increased Green Capital & CSR Sydney 2008
CSR Value Curve
Legal and compliance
Strategic philanthropy
Values-based self regulation
Efficiency
Growth platform
Adherence to law in the countries of production, operation and distribution
Alignment of charitable activities with social issues that support business objectives
Incorporates the company’s value system and/or code of conduct to guide behaviour
Measureable cost savings through efficient or win-win scenarios
Access to new markets, new partnerships or product/service innovations that generate revenue
Source: IBM Institute for Business Value (2008)
Transparency
Source: IBM Institute for Business Value 2008
Information Explosion
Carbon Information Officer
• Accuracy, reliability and relevance • Communicating compliance with regulations will require
quantifying, analysing and reporting including: • Carbon and environmental impacts • The conduct of a vast number of suppliers • Sourcing and content of each product and
component
CIO
Green Wash
Employees CIOs will be instrumental in creating an environment for company wide engagement and collaboration. IBM
Millenials expect to be convinced that employers genuinely care about a greater good beyond financial profit – and to do that from inside the business. Jordon Walker
Green IT In Australia ICT contributes 2.7% of CO2 emissions (ACS 2010)
Comatose equipment can account for as much as 15-30% of the total IT equipment in many data centres (Brill & Stanley, 2009)
Server utilisation can be as low as 2-4% (Kadam, 2010)
What’s ITSM Got To Do With It?
Alignment & Integration
Transparency
Employees
Green IT
Alignment and Integration
CSR
Alignment and Integration
Define
Charter
Analyse
Approve
Service Strategy
• Inventories • Business Case
• Value Proposition • Prioritisation
• Service Portfolio • Authorisation
• Communication • Resource allocation
Mission imperatives Compliance Trends Intangible benefits Strategic or business fit Social responsibilities Innovation
Outcomes for existing services: Retain Replace Rationalise Refactor Renew Retire
No Greenwash!
Transparency
"Consumers are asking who is behind the brand, so we have to make it visible." Paul Bulcke, Nestlé S.A. 2010
Employees
"Environmental, social and governance issues are crucial to our employee value proposition." Luiz Ernesto Gemignani, Promon S.A. 2010
Green IT
Sun Microsystems • 4 locations – 3 months • 6199 comatosed devices • 430 pallets • 4100+ servers • 64% powered on and running 24x7
Conclusion ✶ Use Service Management (and ITIL) to:
• Align IT CSR with that of the business • Embed CSR into the fabric of IT • Provide transparency of information • Drive employee engagement • Reduce the impact on the environment
✶ The results: • Improved reputation and brand image • Reduced risk • Increased productivity & profitability • Attraction and retention of good staff • Long term viability in the market place
What’s CSR Got To Do With IT?