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Social	
  issues	
  and	
  Sustainability	
  
Tobias	
  Webb,	
  November	
  19	
  2013	
  
Stakeholder	
  Intelligence	
  /	
  Ethical	
  CorporaDon	
  	
  
Tobiaswebb.blogspot.com	
  	
  
Tobias.Webb@stakeholderintel.com	
  
Founded	
  2001	
  
	
  
Business	
  magazine	
  	
  
	
  
Based	
  in	
  London,	
  global	
  
network	
  of	
  writers	
  	
  
	
  
8000	
  arDcles	
  on	
  	
  
Ethicalcorp.com	
  
	
  
Serving	
  3000	
  companies	
  
	
  
Hosts	
  Conferences	
  
	
  
Publishes	
  Reports	
  
	
  
Interview	
  hundreds	
  of	
  	
  
managers	
  every	
  year	
  
	
  
More	
  at:	
  
	
  
www.ethicalcorp.com	
  
	
  
	
  
Social	
  issues,	
  business	
  and	
  
governance	
  
	
  
Sounds	
  a	
  bit	
  academic	
  and	
  woolly,	
  
right?	
  	
  
	
  
So	
  let’s	
  break	
  it	
  down	
  to	
  what	
  it	
  really	
  
means	
  
	
  
Where	
  environment	
  meets	
  human	
  
rights	
  	
  
•  30	
  Greenpeace	
  acDvists	
  detained	
  in	
  the	
  
Russian	
  ArcDc	
  
•  Two	
  aVempted	
  to	
  board	
  a	
  Gazprom	
  plaWorm	
  
in	
  protest	
  
•  All	
  arrested	
  in	
  a	
  Commando	
  raid	
  
•  Charged	
  with	
  piracy,	
  now	
  hooliganism	
  	
  
•  Russia	
  clearly	
  trying	
  to	
  defend	
  ArcDc	
  
exploraDon	
  interests	
  
Forced/bonded	
  child	
  labour	
  
•  168	
  million	
  children	
  engaged	
  in	
  child	
  labour	
  
worldwide	
  (Uzbek	
  harvest	
  every	
  September)	
  
•  Down	
  from	
  215	
  million	
  in	
  2008,	
  and	
  245	
  
million	
  in	
  2000	
  
•  More	
  than	
  half	
  are	
  involved	
  in	
  hazardous	
  
work,	
  considered	
  one	
  of	
  the	
  worst	
  forms	
  of	
  
child	
  labour.	
  Uzbekistan	
  a	
  key	
  perpetrator	
  
So	
  what	
  can	
  a	
  company	
  do?	
  
•  Clear	
  policy	
  of	
  no	
  tolerance	
  of	
  child	
  labour	
  in	
  
their	
  operaDons	
  and	
  supply	
  chain	
  
•  Due	
  diligence	
  on	
  children’s	
  rights:	
  UDlise	
  the	
  
John	
  Ruggie	
  Framework	
  
•  Partnerships	
  and	
  lobbying	
  to	
  help	
  formalise	
  
the	
  informal	
  economy	
  	
  
Another	
  key	
  issue:	
  Transparency	
  
SoluDon?	
  CollaboraDon	
  
•  ExtracIve	
  Industry	
  Transparency	
  IniIaIve	
  
set	
  up	
  in	
  2003	
  to	
  combat	
  Government-­‐related	
  
corrupDon	
  in	
  the	
  oil	
  industry	
  	
  
•  “MulDstate	
  corporate	
  governance”.	
  Countries,	
  
NGOs	
  and	
  large	
  companies	
  all	
  involved	
  	
  
•  Set	
  standard	
  for	
  disclosure	
  of	
  revenues/deals	
  
•  A	
  long,	
  slow	
  and	
  bumpy	
  road	
  for	
  signatories	
  	
  
•  Now	
  broadened,	
  four	
  EU	
  states	
  +	
  US	
  to	
  join	
  
	
  
Why	
  is	
  deforestaDon	
  also	
  a	
  social	
  issue?	
  
Other	
  collaboraIon	
  based	
  groups	
  that	
  are	
  
driving	
  change:	
  
	
  

	
  
•  Kimberly	
  Process:	
  Conflict	
  diamonds	
  
•  Sustainable	
  Apparel	
  CoaliIon:	
  Factory	
  PolluDon	
  &	
  Social	
  
Standards	
  
•  Word	
  Business	
  Council	
  for	
  Sustainable	
  Development:	
  
Lobbying	
  	
  
•  World	
  Resources	
  InsItute:	
  Research,	
  policy,	
  mapping	
  
•  Carbon	
  Disclosure	
  Project:	
  ReporDng	
  and	
  accounDng	
  
•  Roundtable	
  on	
  Sustainable	
  Palm	
  Oil:	
  Standards,	
  social	
  and	
  
environmental	
  improvements	
  
•  Global	
  eSustainability	
  IniIaIve:	
  CollaboraDon	
  for	
  tech	
  
companies	
  
When	
  social	
  issues	
  go	
  wrong	
  
•  Nestle:	
  AVacked	
  by	
  Greenpeace	
  in	
  2010	
  
Result:	
  Social	
  media	
  reputaDon	
  meltdown	
  
	
  
•  Chiquita:	
  Sued	
  by	
  families	
  of	
  Colombians	
  killed	
  by	
  
rebel	
  groups	
  due	
  to	
  ransom	
  payments	
  made	
  
Result:	
  Huge	
  reputaDon	
  damage	
  and	
  legal	
  costs	
  
	
  
Coca-­‐Cola:	
  Mis-­‐managed	
  media	
  and	
  consumer	
  
percepDons	
  over	
  India	
  water	
  management	
  in	
  2006	
  
	
  

Result:	
  BoycoV,	
  brand	
  damage,	
  producDon	
  halts	
  
and	
  Indian	
  management	
  team	
  lost	
  their	
  jobs	
  
	
  
When	
  social	
  issues	
  go	
  very	
  wrong	
  
Rana	
  Plaza	
  April	
  2013	
  
•  Factory	
  of	
  sub-­‐standard	
  construcDon	
  
collapsed,	
  despite	
  warnings	
  
•  1129	
  people	
  died,	
  mostly	
  young	
  women	
  
•  Brands	
  audited	
  working	
  condiDons,	
  not	
  
building	
  structures	
  
•  Lead	
  to	
  creaDon	
  of	
  Accord	
  on	
  Factory	
  and	
  
Building	
  Safety	
  in	
  Bangladesh	
  
Rana	
  Plaza,	
  some	
  posiDve	
  results	
  
•  Accord	
  is	
  a	
  “five-­‐year	
  legally	
  binding	
  
agreement	
  between	
  internaDonal	
  labor	
  
organizaDons,	
  non-­‐governmental	
  
organizaDons,	
  and	
  retailers	
  engaged	
  in	
  the	
  
texDle	
  industry	
  to	
  maintain	
  minimum	
  safety	
  
standards	
  in	
  the	
  Bangladesh	
  texDle	
  industry”	
  
•  October	
  2013:	
  1,600	
  Bangladeshi	
  factories	
  
covered,	
  represenDng	
  about	
  a	
  third	
  of	
  the	
  
Bangladeshi	
  texDle	
  industry	
  
Nike:	
  A	
  posiDve	
  story,	
  eventually…	
  
Nike:	
  From	
  ‘devil’	
  to	
  leader!	
  
•  Nike	
  aVacked	
  since	
  1990s	
  over	
  labour	
  condiDons	
  
•  IniDally	
  defensive,	
  gradually	
  opens	
  up	
  to	
  
transparency	
  
•  Following	
  GAP	
  in	
  2004,	
  publishes	
  supplier	
  list	
  in	
  
2005	
  
•  Key	
  player	
  in	
  beZer	
  R&D	
  and	
  innovaIon	
  for	
  
more	
  sustainable	
  products	
  
•  Helps	
  create	
  the	
  Sustainable	
  Apparel	
  CoaliDon	
  
•  Donates	
  R&D,	
  leads	
  brand	
  collaboraDon	
  	
  
What	
  about	
  more	
  localised	
  social	
  
impact	
  work?	
  
•  Community	
  volunteering	
  
•  NGO	
  partnerships	
  
•  Matching	
  employee	
  donaDons	
  /	
  Dme	
  
•  Going	
  beyond	
  compliance	
  with	
  
employees	
  	
  
•  Mapping	
  country	
  footprints	
  	
  
(Unilever/Oxfam/SAB	
  Miller	
  etc)	
  	
  
Conclusions	
  
•  Many	
  companies	
  do	
  good	
  localised	
  ‘social’	
  
related	
  work	
  
•  A	
  trend	
  of	
  economic/social	
  value-­‐add	
  
reporDng	
  is	
  emerging	
  amongst	
  some	
  global	
  
firms	
  
•  Global	
  impacts	
  &	
  links	
  not	
  well	
  understood	
  
unDl	
  recently	
  (e.g.	
  Chinese	
  factory	
  polluDon)	
  
Conclusions	
  
•  Today,	
  in	
  many	
  cases,	
  social/environmental	
  are	
  highly	
  
linked,	
  rather	
  than	
  separate	
  	
  
•  The	
  Ruggie	
  Principles	
  now	
  provides	
  companies,	
  since	
  
2011,	
  with	
  a	
  framework	
  for	
  managing	
  human	
  rights	
  
impacts	
  
•  Sustainability	
  governance	
  is	
  only	
  a	
  decade	
  old,	
  but	
  the	
  
debates	
  and	
  acDons	
  (Rana	
  Plaza,	
  EITI)	
  are	
  acceleraDng	
  	
  
•  We	
  have	
  only	
  just	
  begun!	
  
Thank you!

Tobiaswebb.blogspot.com	
  	
  
	
  

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Social issues in business presentation

  • 1. Social  issues  and  Sustainability   Tobias  Webb,  November  19  2013   Stakeholder  Intelligence  /  Ethical  CorporaDon     Tobiaswebb.blogspot.com     Tobias.Webb@stakeholderintel.com  
  • 2. Founded  2001     Business  magazine       Based  in  London,  global   network  of  writers       8000  arDcles  on     Ethicalcorp.com     Serving  3000  companies     Hosts  Conferences     Publishes  Reports     Interview  hundreds  of     managers  every  year     More  at:     www.ethicalcorp.com      
  • 3. Social  issues,  business  and   governance     Sounds  a  bit  academic  and  woolly,   right?       So  let’s  break  it  down  to  what  it  really   means    
  • 4.
  • 5.
  • 6. Where  environment  meets  human   rights     •  30  Greenpeace  acDvists  detained  in  the   Russian  ArcDc   •  Two  aVempted  to  board  a  Gazprom  plaWorm   in  protest   •  All  arrested  in  a  Commando  raid   •  Charged  with  piracy,  now  hooliganism     •  Russia  clearly  trying  to  defend  ArcDc   exploraDon  interests  
  • 7.
  • 8. Forced/bonded  child  labour   •  168  million  children  engaged  in  child  labour   worldwide  (Uzbek  harvest  every  September)   •  Down  from  215  million  in  2008,  and  245   million  in  2000   •  More  than  half  are  involved  in  hazardous   work,  considered  one  of  the  worst  forms  of   child  labour.  Uzbekistan  a  key  perpetrator  
  • 9. So  what  can  a  company  do?   •  Clear  policy  of  no  tolerance  of  child  labour  in   their  operaDons  and  supply  chain   •  Due  diligence  on  children’s  rights:  UDlise  the   John  Ruggie  Framework   •  Partnerships  and  lobbying  to  help  formalise   the  informal  economy    
  • 10. Another  key  issue:  Transparency  
  • 11. SoluDon?  CollaboraDon   •  ExtracIve  Industry  Transparency  IniIaIve   set  up  in  2003  to  combat  Government-­‐related   corrupDon  in  the  oil  industry     •  “MulDstate  corporate  governance”.  Countries,   NGOs  and  large  companies  all  involved     •  Set  standard  for  disclosure  of  revenues/deals   •  A  long,  slow  and  bumpy  road  for  signatories     •  Now  broadened,  four  EU  states  +  US  to  join    
  • 12. Why  is  deforestaDon  also  a  social  issue?  
  • 13.
  • 14.
  • 15. Other  collaboraIon  based  groups  that  are   driving  change:       •  Kimberly  Process:  Conflict  diamonds   •  Sustainable  Apparel  CoaliIon:  Factory  PolluDon  &  Social   Standards   •  Word  Business  Council  for  Sustainable  Development:   Lobbying     •  World  Resources  InsItute:  Research,  policy,  mapping   •  Carbon  Disclosure  Project:  ReporDng  and  accounDng   •  Roundtable  on  Sustainable  Palm  Oil:  Standards,  social  and   environmental  improvements   •  Global  eSustainability  IniIaIve:  CollaboraDon  for  tech   companies  
  • 16. When  social  issues  go  wrong   •  Nestle:  AVacked  by  Greenpeace  in  2010   Result:  Social  media  reputaDon  meltdown     •  Chiquita:  Sued  by  families  of  Colombians  killed  by   rebel  groups  due  to  ransom  payments  made   Result:  Huge  reputaDon  damage  and  legal  costs    
  • 17. Coca-­‐Cola:  Mis-­‐managed  media  and  consumer   percepDons  over  India  water  management  in  2006     Result:  BoycoV,  brand  damage,  producDon  halts   and  Indian  management  team  lost  their  jobs    
  • 18. When  social  issues  go  very  wrong  
  • 19. Rana  Plaza  April  2013   •  Factory  of  sub-­‐standard  construcDon   collapsed,  despite  warnings   •  1129  people  died,  mostly  young  women   •  Brands  audited  working  condiDons,  not   building  structures   •  Lead  to  creaDon  of  Accord  on  Factory  and   Building  Safety  in  Bangladesh  
  • 20. Rana  Plaza,  some  posiDve  results   •  Accord  is  a  “five-­‐year  legally  binding   agreement  between  internaDonal  labor   organizaDons,  non-­‐governmental   organizaDons,  and  retailers  engaged  in  the   texDle  industry  to  maintain  minimum  safety   standards  in  the  Bangladesh  texDle  industry”   •  October  2013:  1,600  Bangladeshi  factories   covered,  represenDng  about  a  third  of  the   Bangladeshi  texDle  industry  
  • 21. Nike:  A  posiDve  story,  eventually…  
  • 22. Nike:  From  ‘devil’  to  leader!   •  Nike  aVacked  since  1990s  over  labour  condiDons   •  IniDally  defensive,  gradually  opens  up  to   transparency   •  Following  GAP  in  2004,  publishes  supplier  list  in   2005   •  Key  player  in  beZer  R&D  and  innovaIon  for   more  sustainable  products   •  Helps  create  the  Sustainable  Apparel  CoaliDon   •  Donates  R&D,  leads  brand  collaboraDon    
  • 23. What  about  more  localised  social   impact  work?   •  Community  volunteering   •  NGO  partnerships   •  Matching  employee  donaDons  /  Dme   •  Going  beyond  compliance  with   employees     •  Mapping  country  footprints     (Unilever/Oxfam/SAB  Miller  etc)    
  • 24. Conclusions   •  Many  companies  do  good  localised  ‘social’   related  work   •  A  trend  of  economic/social  value-­‐add   reporDng  is  emerging  amongst  some  global   firms   •  Global  impacts  &  links  not  well  understood   unDl  recently  (e.g.  Chinese  factory  polluDon)  
  • 25. Conclusions   •  Today,  in  many  cases,  social/environmental  are  highly   linked,  rather  than  separate     •  The  Ruggie  Principles  now  provides  companies,  since   2011,  with  a  framework  for  managing  human  rights   impacts   •  Sustainability  governance  is  only  a  decade  old,  but  the   debates  and  acDons  (Rana  Plaza,  EITI)  are  acceleraDng     •  We  have  only  just  begun!