Section 2: Integration

CR Index 2015 Sample Company Welcome,

Business in the Community is delighted to celebrate the 12 th annual CR Index survey and company ranking. Since launching in 2002, the Index has become one of the UK’s leading voluntary benchmarks for responsible business.

The changes made this year has raised the bar, making the CR Index more challenging for participants. The new question set better reflects the complexity of integrating sustainability into core business strategy, incorporating some of our latest thinking on how companies can stretch themselves to drive change within their business. As a result, we have revised the way in which we categorise performance in the CR Index this year, moving away from the old bandings to a new 5 star rating system. The boundaries have been set as follows:

99% - 5 stars 84% - 2 and a half stars 98% - 4 and a half stars 78% - 2 stars 96% - 4 stars 71% - 1 and a half stars 93% - 3 and half stars 63% - 1 star 89% - 3 stars

The half star rating indicates that the company’s score is significantly closer to the next star rating, to better differentiate performance between companies.

The results of the 2015 CR Index, along with analysis and case studies will be launched on our website on 31st March and will be presented at the Wanted: Responsible leadership for sustainable future plenary on the 1st April during Responsible Business Week.

Looking forward, we seek to continue supporting companies to integrate responsible practices and drive change within businesses.

With best wishes,

Evgenia Sivtsova Head of Advisory Services, Operations

2 The CR Index Framework

The CR Index takes the form of an online survey designed to provide companies with a simple framework to integrate responsible business practices.

Companies follow a self-assessment process intended to help them identify both the strengths in their management and performance and gaps, where future progress can be made.

The CR Index follows a systematic approach to managing, measuring and reporting on business responsible business practices.

Corporate Strategy

Looks at corporate vision and values, effective governance, CR risks and opportunities to the business and how these are being identified and then addressed through strategy, policies and responsibilities held at a senior level in the company. Integration

Focuses on how companies organise, manage and embed corporate responsibility into their operations through strategic decision making, performance management, training, effective stakeholder engagement and public reporting. Management

Builds on the Integration section looking at how companies are managing their risks and opportunities in the areas of Community, Environment, Marketplace and Workplace. Performance & Impact

Asks companies to report performance in a range of social and environmental impacts areas. Participants complete three environmental and three social areas based on the relevance to their business.

Sector Performance

This chart provides the range of overall CR Index scores within your benchmarking sector. It also plots your company’s overall score in order to provide a top-line performance benchmark.

65 80 95 60% 70% 80% 90% 100%

The diagram below shows how your score sits within the distribution of scores for your benchmarking sector and the overall Index.

4 Performance: By CR Index Section

This chart summarises your company’s performance across each section of the CR Index Survey. If the CR Index was previously completed, this chart will also provide a year-on-year performance comparison.

1. Corporate Strategy 100% 5. Assurance & 2. Integration Disclosure 80%

60% 3. Community 4. Social Impact Management 40%

4. Environmental 3. Environment Impact Management

3. Workplace 3. Marketplace Management Management

Average Score 2008 Average Score 2009

Performance: CR Index

The following graphs provide a summary of your performance in each of the main components of the CR Index. Each graph provides two data sets. This first is your company’s score; the second is the average score for all CR Index participants. Your company’s performance within each section of the CR Index is examined in more detail in the pages that follow

Strategy, Integration, Management Practices and Disclosure

This first graph compares your overall score by section in the CR Index against the overall index participants

100 6 4 2 9 9 0 0 9 9 8 7 7 9 9 8 4 4

80 8 8 8 2 1 1 8 8 8 8 8 2 60 7

0 Corporate Integration Management Impact Areas Assurance and Strategy Disclosure

Company Sector Index

5 Management Areas

This graph compares your performance in the management section of the CR Index. This section looks to evaluate if your company has set objectives and targets for each management area, as well as the designation of responsibilities and monitoring and disclosure of all management processes.

Environmental and Social Impact Areas

The environmental impact areas include one core or mandatory impact, Climate Change, plus two self-selected area of material significance to the business. For their social impact areas companies are able to choose between Employee Engagement and Wellbeing, Employee Development, Equality, Diversity and Inclusion in the Workplace, Community Investment, International Development or another self-selected impact area. Your company completed the following social and environmental impacts:

80 8 3 2 1 1 0 9 8 8 8 8 7 8 7 8 8 8 6 5 4 7 7 7 7 7 7 7 0 7 7 7 60 5 5 6 6 40

0 Climate Waste & Self Selected Employee Employee Self Selected Change Resource Environmental Health, Safety Development Social Impact Management Impact & Well-Being

6 Section 1: Corporate Strategy

This section rewards companies for placing CR values at the core of their business strategy. It asks whether there is a system to identify key social and environmental risks and opportunities, and whether these are addressed by principles and policies. It looks at the effectiveness of a company’s corporate governance processes. In additions, companies must be able to demonstrate leadership and commitment at the highest level, internal reporting to the board, and public advocacy of responsible business practice.

100 0 0 0 0 0 0 0 9 7 6 6 0 0 0 0 5 0 0 5 0 9 4 2 9 2 2 9 9 1 1 1 1 9 1 1 9 1 9 7 9 9 9

80 4 8 2 8 8 9

0 Corporate CR Leadership - Leadership - Advocacy Risk Policies (Q6) Vision and Principles Responsi- Reporting (Q4) Management Values (Q1) (Q2) bilities (Q3a) (Q3b) Process (Q5)

Section 2: Integration

It is not enough simply to have a strategy; it needs to be implemented and embedded throughout the business. This requires internal communication and training employees so they understand the key CR issues for the company, building CR related performance criteria into appraisal and remuneration systems, undertaking stakeholder engagement and ensuring it contributes to CR strategy, demonstrating social and environmental issues are incorporated into strategic decision making, and transparency through external reporting on CR management practices and impacts.

100 0 0 0 0 0 9 6 0 0 0 0 0 9 2 9 0 1 1 1 1 9 1 8 9 9

80 8 8 1 1 8 8 5 60 7 5 40 5

0 Integration of Business Conduct Performance Remuneration Strategic Decision Corporate (Q8) Management (Q9) and Bonus Making (Q11) Responsibility Systems (Q10) Principles (Q7)

7 CR issues across four areas: Community, Environment, Marketplace and Workplace. In particular, this section this particular, In Workplace. and Marketplace Environment, Community, areas: four across issues CR significant materially address to practices management developed has company a whether assesses 3 Section 3: Management Section 8 ManagementCommunity looks at:     100 Public reporting on key issues, objectives andtargets onkey issues,objectives Public reporting reportonprogress systems tomeasure,assessand Monitoring  areasofCR programmes arounddifferent Relevant andsocialissues keymaterialenvironmental identifiesandprioritises How acompany 100 20 40 60 80 20 40 60 80 0 0 Objectives and SMART targets that drive continuous improvement andSMARTtargetsthatdrivecontinuous Objectives Issues (Q16) Community

67 Development Key Training &

95 (Q12) 100 91 88 93 Strategy (Q17) Community 88 Training Training of Senior Board MembersBoard 95 and Managers 100 93 (Q13) 85 Targets (Q18)Targets 89 57 88 Engagement Stakeholder 85 75 (Q14)

Delivery (Q19) Delivery 95

Internal Internal 92 93 99

95 Public Reporting

(Q15a) 82 Company Company Partnerships Community 92

(Q20) 25 85 83 89 Reporting Reporting (Q15b) Scope Scope of Public Sector Sector 55 Monitoring

(Q21) 75 82 81 78 84 Index Index Environment Management

100 0 0 0 0 8 6 5 5 0 0 0 0 9 9 9 9 1 1 1 1 9 8 5

80 8 3 8 1 1 8 8 8 8 8 5 7 0 7

60 7 1 6 40

0 Key Objectives Targets (Q24) Employee Communication Environmental Environment (Q23) Engagement with External Management Issues (Q22) (Q25) Stakeholders System (Q27) (Q26)

Marketplace Management

100 0 0 0 0 7 6 0 0 0 0 4 3 2 9 1 9 9 1 1 1 1 9 9 6 9

80 9 5 8 3 2 1 8 9 8 8 8 8 8 7 60 7 40 20 0 Key Issues Product/Servic Customers Supply Chain Influence Over Consistent (Q28) e Impact - B2B (Q30) Mgt - high the Rules Standards - (Q29a) income (Q32) high risk countries (Q33b) (Q31a)

Workplace Management

100 0 9 6 0 5 9 4 2 9 1 9 9 8 8 9 6 6 4

80 8 8 3 8 8 0 8 9 8 8 7

60 7 6

0 Key Issues (Q34) Corporate Integration (Q36) Employee Measuring & Commitment and Programmes Monitoring (Q38) Disclosure (Q35) (Q37)

Section 4: Environmental Impact Areas

9 The following graphs provide your results and benchmarking information covering the three environmental impact areas completed by your company. Each area examines the organisational commitment to managing the issue, the programmes in place to drive improvements and organisational performance over time

Climate Change

100 0 0 0 9 7 0 0 0 9 9 2 1 1 1 0 9

80 9 5 8 7

60 4 6 6 8 5

40 7 4 9 7 3 3 20

0 Measurement and Scope of Quality of Renewable & Performance Reporting (Q39) Information (Q40) Information (Q41) Alternative Improvement Energy (Q42) (Q43)

100 0 0 0 9 7 0 0 0 9 9 2 1 1 1 0 9

80 9 5 8 7

60 4 6 6 8 5

40 7 4 9 7 3 3 20

100 0 0 0 9 7 0 0 0 9 9 2 1 1 1 0 9

80 9 5 8 7

60 4 6 6 8 5

40 7 4 9 7 3 3 20

10 Section 4: Social Impact Areas

The following graphs provide your results and benchmarking information covering the three social impact areas completed by your company. Each area examines the organisational commitment to managing the issue, the programmes in place to drive improvements and organisational performance over time. NOTE: If your company completed a self-selected social impact, the benchmarking graphs will provide a comparison against other companies that completed the same question set, irrespective of the issue chosen. NVS1

100 0 0 0 9 7 0 0 0 9 9 2 1 1 1 0 9

80 9 5 8 7

60 4 6 6 8 5

40 7 4 9 7 3 3 20

100 0 0 0 9 7 0 0 0 9 9 2 1 1 1 0 9

80 9 5 8 7

60 4 6 6 8 5

40 7 4 9 7 3 3 20

100 0 0 0 9 7 0 0 0 9 9 2 1 1 1 0 9

80 9 5 8 7

60 4 6 6 8 5

40 7 4 9 7 3 3 20

11 For companies wishing to get their submission validated, benchmarked against their peers, and/or to be included in an annual public listing, we offer the following validation options:

Performance Analysis Presentation - £4,000 +VAT (BITC Members) / £6,000+VAT (Non-BITC Members) This presentation of findings includes::  Summarising key findings and areas of strength  Presenting a detailed gap analysis of the company’s performance  Modelling the company’s opportunities for improvement against potential score implications, including limited examples of best practice from peers and Index participants This feedback option takes the form of a PowerPoint presentation, which is discussed during a meeting with the company’s CR Practitioner and the team involved in completing the CR Index. Management Report - £6,000 +VAT (BITC Members) / £9,000 +VAT (Non-BITC Members) In addition to the performance analysis presentation, this option includes a narrative report:  Summarising key findings and areas of strength  Presenting a detailed gap analysis of the company’s performance  Providing tailored recommendations, including examples of best practice from peers and Index participants  Prioritising areas for improvement and action BITC will present the findings of this report at a meeting with the company’s CR Practitioner and the team involved in completing the CR Index. Bespoke Support - All advisory projects are scoped and priced individually Based on the CR Index results we can offer bespoke advice which will help you progress on your responsible business journey. Focusing on the company’s individual needs, we will provide specialist support and practical recommendations to further embed responsible business practices. Recent examples of advisory projects include:  Aligning business strategy with sustainability risks and opportunities  Developing an action plan to address specific issues identified through the CR Index  CR report review and materiality assessment  Stakeholder mapping and engagement  Bespoke benchmarking of global regions or subsidiaries for improved governance

To request additional feedback contact: To discuss bespoke support options contact: Evgenia Sivtsova, Elena Espinoza, Head of Advisory Services, Operations Head of Advisory Services, Strategy +44 (0)20 7566 8674 +44 (0)20 7566 8795 [email protected] [email protected]

Business in the Community 137 Shepherdess Walk London N1 7RQ

T: +44 (0)20 7566 8650 12 F: +44 (0)20 7253 1877 E: [email protected]