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Thank you!

  12th September 2011, Bucharest




Thank         you!
CSR for HR ranks number 8 in
                   the Top 40 Sustainability
                         Books of 2010




A wake-up call for HR
Management.

Fills a major gap in the practical
knowledge that HR Managers
need to effectively partner
sustainability strategy.

Helps CSR practitioners
understand and demand a value-
adding contribution from the HR
function.
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 1


                                     “According to Ernst & Young’s second annual
                                     global survey of cleantech adoption, three-
                                     quarters of large international corporates
                                     plan to increase or significantly increase

     The                             cleantech budgets between 2012 and 2014.
                                     The survey questioned 300 corporations
                                     across all sectors with revenues of US$1bn
unstoppable                          or more.


   rise of
                                     This year 44% of survey respondents
                                     anticipate their organizations will spend
                                     over US$50 million on cleantech while
 cleantech                           12% expect their spend to exceed
                                     US$250 million.”




                                    http://greeneconomypost.com/cleantech-investment-coporations-15817.htm
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 2




  The profit                             $27 million
 potential of                                           savings
 going green


                                    http://www.usps.com/communications/newsroom/2011/pr11_008.htm
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 3




 Employees
   want
 meaning as
  much as
  money                                                            96%
                                       of students agree CSR is important in their
                                                   choice of employer
                                       http://www.employerbrandingtoday.com/blog/2011/04/21/french-affection-for-csr-employers/
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 4




Shareholders
want positive                         “Half way through its $300 million,
                                      company-wide sustainability plan, Plan A,
    ROI                               British retailer, Marks and Spencer reports
                                      the initiative has already become a cost
                                      positive venture resulting from savings
                                      made on climate change and waste
                                      initiatives.”



                                    http://www.sustainablelifemedia.com/content/story/brands/m_and_s_say_its_eco_plan_is_cost_positive
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 5




                                     “We have come to recognize
                                     that best-run businesses do not
    The New                          simply embrace a sustainability
                                     strategy.
    Business
                                     Instead, they make their
    Strategy                         corporate strategy sustainable.”




                                           http://www.sapsustainabilityreport.com/co-ceo-letter
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 6




                                           Successful delivery of
 If HR does                           sustainability strategy requires
                                       processes for embedding CSR
  not do it,                         culture and engaging employees.

no-one will                             Embedding processes is the
                                      primary skill and contribution of
                                             the HR function.
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 7




                                          CSR provides immense
                                      opportunities for HR to improve
   If HR does                              its strategic business
                                        contribution, leverage and
    not do it,                                    influence.

  HR will                                 HR needs CSR to maintain
                                       credibility as a legitimate long-

 not thrive                              term value-adding business
                                                    partner.
HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 8


                                        Optimal delivery of CSR
                                     objectives requires an aligned
                                      organization and an engaged
   If CSR does                       workforce made up of the right
                                                 people.
   not partner                      Typically, CSR Managers are not
    with HR,                        skilled in process or embedding
                                    culture, nor in recruiting people.
 CSR will FAIL                        CSR needs HR to ensure a CSR
                                     tools and process which enable
                                             CSR to succeed.
What happens now
   HR influence in CSR
 strategy development:

        6%
   HR influence in CSR
strategy implementation:

       25%
                         Source: SHRM, “Advancing Sustainability: HR’s Role” 2011
The CSR-HR opportunity
                                        Business
                                        Partners




                                                       (CSR)
                             (CSR)                     Social
                             Ethics                   Marketing
  Culture and
                                                                            Recruitment
communications
                                       Traditional
                                           HR
                     (CSR)              functions
                  Community                                    (CSR)
                 involvement                                Environment


                                          (CSR)
                                      Human rights,
                                        diversity,
                                       health and             Employee
             Remuneration                safety              Training and
              and benefits                                   Development
HR with a CSR mindset: green employees

  EXAMPLE                             CSR
  Strategic          •   Emissions measurement and reporting
  business           •   Impact assessment
                     •   Green technologies / renewables
   priority          •   Workplace energy consumption
                     •   Business travel reduction
  Reduce carbon
footprint to meet    •   Environmental targets for Managers
       new           •   Recruitment of greenies
  environmental      •   Employee education on environment
   regulations,      •   Green Team structure and process
reduce costs and     •   Employee energy savings suggestions
                     •   New travel policy
 attract investors
                                      HR
HR with a CSR mindset: green employees


  Green
Teams save
money and
  engage
employees
     !
HR with a CSR mindset: employee wellness

   EXAMPLE                           CSR
   Strategic          • Workplace health risk assessment
   business           • Identify benchmarks and targets
                      • Report improved employee health
    priority            outcomes
                      • Ensure strategic alignment
     Advance
  organizational      • Formulate corporate policies with
 sustainability by      regard to employee health
    proactively       • Develop a health support program
 accepting shared     • Provide employee health education
 responsibility for   • Incentivize employees to engage
 employee health
                                      HR
HR with a CSR mindset: employee wellness

                                             Benefits
                  Obesity                        -8% (2,800 px)
                  Hypertenstion                  -16% (5,600 px)
                  Cholesterol                    -12% (4,200 px)
                  Smoking                        -3% (1,050 px)
                  Physical activity +5% (1,750 px)
                  Nutrition                      +17% (5,950px)

                  ROI                            GBP 3.73
                                                 for every
                                                 GBP 1
                                                 invested
                  http://www.unilever.com/sustainability/employees/well-being/health/
HR with a CSR mindset: recruitment



  What’s
wrong with
this picture
      ?
HR with a CSR mindset: recruitment

    EXAMPLE                                 CSR
    Strategic
    business               • New green technology recruitment
                           • Employees engaged in sustainability
     priority              • Employer Brand alignment with
Ensure right people,         sustainability communications
right skills, right jobs
     to meet new           • New recruitment channels
cleantech challenges       • Diverse candidate pipeline
     and advance           • Training of internal recruiters in
       corporate             diversity principles
sustainability with a      • Partnerships to help accessibility to
                             minority groups
  diverse workforce

                                             HR
HR with a CSR mindset: recruitment

                • Recruit the right talent :
A sustainable    explore all channels for a diverse
  workplace      workforce
    needs
                • Recruit in the right way :
 sustainable
                 equitable recruitment processes
 recruitment
   practices    • Recruit cost-effectively:
                 reduce recruitment costs
HR with a CSR mindset: recruitment


                                                   76%
Companies with a       Han’s Company            of candidates
higher proportion        (Singapore)         consider reputation
 of women in top     reports increase in      and image before
   management         productivity after     joining a company.
  perform better        three years of            40%
  +10%
                     diversity practices     of reputation comes
                              by             from factors related

                        +40%
   ROE versus                                    to citizenship,
                                               governance and
industry average                                   workplace
    McKinsey, 2007     MOM, Singapore,2010

                                                 CSHR blog,2011
HR with a CSR mindset: recruitment

                           Government
                           collaboration       Minority
                                               groups

Teva Pharmaceuticals         405
        exploits       employees recruited   Special needs
      all possible      via “alternative “
recruitment channels
  to source external    channels in 2009
 candidates to meet
                                              Returning
 needs at lower cost         Recently         scientists
                              laid-off
                             workers
HR with a CSR mindset: recruitment

                         Pepsico: ‘Profit with
                         Purpose’ is the single
                      biggest recruiting tool that
Ensure your            we have in Pepsico today
 employer
   brand
  reflects
 your CSR
 approach
                         http://www.pepsico.com/Purpose/Performance-with- Purpose.html
HR with a CSR mindset: ROI
  HRM role              HRM objective                              HRM metric                              Business value
                                                 % of employees trained in values and
                                                 ethics.                                         Mitigation of risk due to unethical
 Values and    Employees understand and behave
                                                 % of employee responses in survey               behaviour by employees. Improved
   Ethics      in line with corporate values.
                                                 showing employee support company                corporate reputation and trust.
                                                 values.
Recruitment    Recruitment is based on diversity % of employees recruited by gender and by       Improved business results, innovation
               principles.                       minority groups.                                and customer satisfaction.
               Compensation is driven by equal   Ratio of base salary men to women.              Lower HR costs due to turnover,
               opportunity for men and women.                                                    improved motivation and trust.
Compensation
               Compensation is linked to            Number of employees with sustainability      Improved execution of sustainable
               sustainability performance.          targets in annual work-plans.                business strategy.
                                                    % of employees who engage in a corporate
               Employees are fit to contribute to   wellbeing program.                           Reduced business health costs, lower
 Well-being                                         % improvements achieved in employee
               their maximum capability.                                                         absenteeism, improved productivity.
                                                    wellbeing (health, stress, diet etc.)

               Diverse employees are given          % of women in management positions.          Improved business results, innovation
Development
               opportunities to advance.            % of minorities in management positions.     and customer satisfaction.
               Employees understand and act in       % of employees trained in sustainability.   Improved execution of sustainable
               line with sustainability strategy and                                             business strategy.
               principles.
               Employees enhance corporate           % of employee volunteers.                   Employee engagement, reputation
Engagement     community relations.                                                              benefits, enhanced community
                                                                                                 relationships.
               Employees contribute to improving % of employees participating in "green"         Energy and materials costs
               environmental impacts.            activities.                                     reductions.
HR with a CSR mindset: ROI

  HRM role     HRM objective        HRM metric            Business value

              Recruitment is   % of employees         Improved business
              based on         recruited by gender    results, innovation
Recruitment   diversity        and by minority        and customer
              principles.      groups.                satisfaction.

                                % of employees who Reduced business
              Employees are     engage in a corporate healthcare costs,
                                wellbeing program.    reduced health
              fit to contribute
                                                      insurance costs, lower
Well-being    to their
                                % improvements        turnover and
              maximum
                                achieved in employee absenteeism,
              capability.
                                wellbeing (health,    improved
                                stress, diet etc.)    productivity.
It is time for HR to
 wake up to CSR!
Thank you for listening!

                          Good Luck in all you
                                 do!

                          Be in touch if I can
                         assist you in any way!

  www.csrforhr.com


      Elaine Cohen
 elainec@b-yond.biz
Cell: +972-523-495-688
 www.b-yond.biz/en

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CSR for HR - why partnership is necessary

  • 1. Thank you! 12th September 2011, Bucharest Thank you!
  • 2. CSR for HR ranks number 8 in the Top 40 Sustainability Books of 2010 A wake-up call for HR Management. Fills a major gap in the practical knowledge that HR Managers need to effectively partner sustainability strategy. Helps CSR practitioners understand and demand a value- adding contribution from the HR function.
  • 3. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 1 “According to Ernst & Young’s second annual global survey of cleantech adoption, three- quarters of large international corporates plan to increase or significantly increase The cleantech budgets between 2012 and 2014. The survey questioned 300 corporations across all sectors with revenues of US$1bn unstoppable or more. rise of This year 44% of survey respondents anticipate their organizations will spend over US$50 million on cleantech while cleantech 12% expect their spend to exceed US$250 million.” http://greeneconomypost.com/cleantech-investment-coporations-15817.htm
  • 4. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 2 The profit $27 million potential of savings going green http://www.usps.com/communications/newsroom/2011/pr11_008.htm
  • 5. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 3 Employees want meaning as much as money 96% of students agree CSR is important in their choice of employer http://www.employerbrandingtoday.com/blog/2011/04/21/french-affection-for-csr-employers/
  • 6. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 4 Shareholders want positive “Half way through its $300 million, company-wide sustainability plan, Plan A, ROI British retailer, Marks and Spencer reports the initiative has already become a cost positive venture resulting from savings made on climate change and waste initiatives.” http://www.sustainablelifemedia.com/content/story/brands/m_and_s_say_its_eco_plan_is_cost_positive
  • 7. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 5 “We have come to recognize that best-run businesses do not The New simply embrace a sustainability strategy. Business Instead, they make their Strategy corporate strategy sustainable.” http://www.sapsustainabilityreport.com/co-ceo-letter
  • 8. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 6 Successful delivery of If HR does sustainability strategy requires processes for embedding CSR not do it, culture and engaging employees. no-one will Embedding processes is the primary skill and contribution of the HR function.
  • 9. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 7 CSR provides immense opportunities for HR to improve If HR does its strategic business contribution, leverage and not do it, influence. HR will HR needs CSR to maintain credibility as a legitimate long- not thrive term value-adding business partner.
  • 10. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 8 Optimal delivery of CSR objectives requires an aligned organization and an engaged If CSR does workforce made up of the right people. not partner Typically, CSR Managers are not with HR, skilled in process or embedding culture, nor in recruiting people. CSR will FAIL CSR needs HR to ensure a CSR tools and process which enable CSR to succeed.
  • 11. What happens now HR influence in CSR strategy development: 6% HR influence in CSR strategy implementation: 25% Source: SHRM, “Advancing Sustainability: HR’s Role” 2011
  • 12. The CSR-HR opportunity Business Partners (CSR) (CSR) Social Ethics Marketing Culture and Recruitment communications Traditional HR (CSR) functions Community (CSR) involvement Environment (CSR) Human rights, diversity, health and Employee Remuneration safety Training and and benefits Development
  • 13. HR with a CSR mindset: green employees EXAMPLE CSR Strategic • Emissions measurement and reporting business • Impact assessment • Green technologies / renewables priority • Workplace energy consumption • Business travel reduction Reduce carbon footprint to meet • Environmental targets for Managers new • Recruitment of greenies environmental • Employee education on environment regulations, • Green Team structure and process reduce costs and • Employee energy savings suggestions • New travel policy attract investors HR
  • 14. HR with a CSR mindset: green employees Green Teams save money and engage employees !
  • 15. HR with a CSR mindset: employee wellness EXAMPLE CSR Strategic • Workplace health risk assessment business • Identify benchmarks and targets • Report improved employee health priority outcomes • Ensure strategic alignment Advance organizational • Formulate corporate policies with sustainability by regard to employee health proactively • Develop a health support program accepting shared • Provide employee health education responsibility for • Incentivize employees to engage employee health HR
  • 16. HR with a CSR mindset: employee wellness Benefits Obesity -8% (2,800 px) Hypertenstion -16% (5,600 px) Cholesterol -12% (4,200 px) Smoking -3% (1,050 px) Physical activity +5% (1,750 px) Nutrition +17% (5,950px) ROI GBP 3.73 for every GBP 1 invested http://www.unilever.com/sustainability/employees/well-being/health/
  • 17. HR with a CSR mindset: recruitment What’s wrong with this picture ?
  • 18. HR with a CSR mindset: recruitment EXAMPLE CSR Strategic business • New green technology recruitment • Employees engaged in sustainability priority • Employer Brand alignment with Ensure right people, sustainability communications right skills, right jobs to meet new • New recruitment channels cleantech challenges • Diverse candidate pipeline and advance • Training of internal recruiters in corporate diversity principles sustainability with a • Partnerships to help accessibility to minority groups diverse workforce HR
  • 19. HR with a CSR mindset: recruitment • Recruit the right talent : A sustainable explore all channels for a diverse workplace workforce needs • Recruit in the right way : sustainable equitable recruitment processes recruitment practices • Recruit cost-effectively: reduce recruitment costs
  • 20. HR with a CSR mindset: recruitment 76% Companies with a Han’s Company of candidates higher proportion (Singapore) consider reputation of women in top reports increase in and image before management productivity after joining a company. perform better three years of 40% +10% diversity practices of reputation comes by from factors related +40% ROE versus to citizenship, governance and industry average workplace McKinsey, 2007 MOM, Singapore,2010 CSHR blog,2011
  • 21. HR with a CSR mindset: recruitment Government collaboration Minority groups Teva Pharmaceuticals 405 exploits employees recruited Special needs all possible via “alternative “ recruitment channels to source external channels in 2009 candidates to meet Returning needs at lower cost Recently scientists laid-off workers
  • 22. HR with a CSR mindset: recruitment Pepsico: ‘Profit with Purpose’ is the single biggest recruiting tool that Ensure your we have in Pepsico today employer brand reflects your CSR approach http://www.pepsico.com/Purpose/Performance-with- Purpose.html
  • 23. HR with a CSR mindset: ROI HRM role HRM objective HRM metric Business value % of employees trained in values and ethics. Mitigation of risk due to unethical Values and Employees understand and behave % of employee responses in survey behaviour by employees. Improved Ethics in line with corporate values. showing employee support company corporate reputation and trust. values. Recruitment Recruitment is based on diversity % of employees recruited by gender and by Improved business results, innovation principles. minority groups. and customer satisfaction. Compensation is driven by equal Ratio of base salary men to women. Lower HR costs due to turnover, opportunity for men and women. improved motivation and trust. Compensation Compensation is linked to Number of employees with sustainability Improved execution of sustainable sustainability performance. targets in annual work-plans. business strategy. % of employees who engage in a corporate Employees are fit to contribute to wellbeing program. Reduced business health costs, lower Well-being % improvements achieved in employee their maximum capability. absenteeism, improved productivity. wellbeing (health, stress, diet etc.) Diverse employees are given % of women in management positions. Improved business results, innovation Development opportunities to advance. % of minorities in management positions. and customer satisfaction. Employees understand and act in % of employees trained in sustainability. Improved execution of sustainable line with sustainability strategy and business strategy. principles. Employees enhance corporate % of employee volunteers. Employee engagement, reputation Engagement community relations. benefits, enhanced community relationships. Employees contribute to improving % of employees participating in "green" Energy and materials costs environmental impacts. activities. reductions.
  • 24. HR with a CSR mindset: ROI HRM role HRM objective HRM metric Business value Recruitment is % of employees Improved business based on recruited by gender results, innovation Recruitment diversity and by minority and customer principles. groups. satisfaction. % of employees who Reduced business Employees are engage in a corporate healthcare costs, wellbeing program. reduced health fit to contribute insurance costs, lower Well-being to their % improvements turnover and maximum achieved in employee absenteeism, capability. wellbeing (health, improved stress, diet etc.) productivity.
  • 25. It is time for HR to wake up to CSR!
  • 26. Thank you for listening! Good Luck in all you do! Be in touch if I can assist you in any way! www.csrforhr.com Elaine Cohen elainec@b-yond.biz Cell: +972-523-495-688 www.b-yond.biz/en