Board EuropeA newsletter for members of The Conference Board in Europe Volume 20 • Number 3/4 • March/April 2005

BuildingBuilding SustainableSustainable EnterprisesEnterprises

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ompanies are increasingly being assessed on their environmental, social and In this Issue corporate governance performance. Failure to live up to stakeholder C expectations can threaten corporate , reputations, and long-term 1 Building Sustainable shareholder value. Enterprises At The Conference Board’s “Building Sustainable Enterprises” forum, hosted by 3 New Research TOTAL in Brussels on 26-27 January, executives from Europe-based businesses • EU Productivity Growth explained how they are integrating environmental, social and corporate governance • Human Capital Measurement reporting into their mainstream activities. The forum was linked to four European Councils: Corporate Governance and Board Effectiveness, Environmental Interview with Barbara Reno 4 Management, Sustainability Reporting and Corporate Citizenship. 5 Centre for Business and Economics CRH focuses on Sustainable Performance and Growth Keynote speaker Liam 0’Mahony, Global Counsellor for The Conference Board, 6 Council News and Group Chief Executive of CRH, the international building materials group, said • Innovation that his company has grown steadily and profitably for the past 15 years. Building a • Sustainability Reporting sustainable enterprise “the CRH way” is fuelled, said O’Mahony, by relentless • Investor Relations operational best practice throughout the organisation, supplemented by dynamic yet • Corporate Communications prudent acquisitive growth, with rigorous corporate governance throughout. • Strategic Risk Management (NEW) CRH balances local autonomy and entrepreneurial drive with prudent operating 8 Good Practice in practices that require sharing of best practice in every area of the business including Workplace Diversity environmental and people management. It is a formula that enables performance and growth to satisfy the most demanding stakeholders on all fronts, financial and

non-financial. (➢ 2)

1. Liam O’Mahony, Group Chief Executive, CRH plc, addresses www.conference-board.org participants at the “Building Sustainable Enterprises” forum. 1 (➢ 1)

Growing Shareholder Value focus when companies consider One of the main drivers of the trend sustainability. They are also generated towards sustainability reporting is from improvements in corporate the growing body of evidence that image and values, which can help in environmental, social and corporate recruiting and retaining people, governance issues positively impact in increasing employee productivity, financial performance. Anthony Ling, as well as in marketing and selling Managing Director and Co-head of products and services. European Research for Goldman Sachs International Co., pointed to a report SAP reviews Citizenship Spending published in 2004 by the United Nations Until recently, software developer SAP Environment Programme Finance 3 was investing more than 10 million a year Initiative (UNEP FI) which states that 3. Guy Jubb, Investment Director, on a range of corporate citizenship effective management of these issues Head of Corporate Governance, programmes, yet its efforts went largely contributes to growing shareholder Standard Life Investments unnoticed. Christopher Sorek, SAP’s Senior value. It advises that they be taken into Vice President for Public and Global account in fundamental financial Communications explained that, to rectify analysis and investment considerations. The Business Case for adopting the situation, the company first undertook Sustainability Initiatives extensive benchmarking and regional “One of the biggest barriers is that surveys. Results pointed to the need managers think sustainability has for more education-oriented corporate nothing to do with business”, said Bob citizenship programmes. Today SAP aims Willard, author of “The Next to build stable economies and create Sustainability Wave” and former IBM shared economic benefit through senior manager. He produced charts to transparency and education, particularly show that large companies can achieve a in science, technology, and innovation. 38% increase in profits by implementing environmental and social strategies. DuPont aspires to For small and medium-sized companies Sustainable Growth the figures is even larger – about 46%. Pierre Trauffler, Director EHS Europe, 2 DuPont de Nemours International S.A., 2. Anthony Ling, Managing Director, These savings come from more than cost said that DuPont aims to achieve Co-head, European Research, Goldman reductions in electricity, fuel and waste, profitable revenue growth targets of 6% Sachs International Co. which are often the first areas of a year, but has also set ambitious environmental, health and safety “Boards of directors must play a direct and targets, including , emissions, active role if their companies are to injuries and incidents. minimise the risks and reap the rewards of good corporate governance”, said Guy “The goal of zero for waste and Jubb, head of Corporate Governance emissions, which we set a decade ago, with global fund manager Standard is to create a mindset within the Life Investments. “Shareholder activism company. It is a constant reminder that – I prefer to call it investor activism – is not we have to move to the next step and part of the corporate governance tool kit… continually pursue new developments Boards should not be afraid to embrace and new products that perhaps active shareholders. If they can work eliminate emissions,” said Trauffler. together, they can build a bond of mutual 4 trust, which helps to nurture a common 4. Bob Willard, author and former IBM understanding of the long-term and senior manager sustainable objectives of the enterprise.”

“Corporate Social Responsibility (CSR),”continued Jubb, “is no longer an optional extra for boards, it is a core responsibility. A failure to deliver on generally accepted CSR principles as well as the company’s stated policy is a huge risk for companies, especially when they’re consumer-facing.”

5 6 5. Exchanging views during the break 2 6. Robin Aram, Vice President, External Relations, Policy and Social Responsibility, Shell International Ltd. New Research

European Union shows Productivity Gains, ExecutiveAction No. 129 January 2005 but US continues to lead Productivity and Global Competitiveness… EU Labor Productivity and Employment Improve in 2004— The European Union, spurred by gains Conference Board and a co-author of but U.S. Still Leads by Robert H. McGuckin and Bart van Ark by both its old and newest members, the report with Dr Robert McGuckin, With improved performance from both old and new member countries, the EU-25 saw productivity growth recover from 1.3 to 1.6 percent in 2004 and labor input growth increase has registered rising productivity The Conference Board’s Director of from an anemic minus .2 percent to a positive .7 percent. However if Europe is going to provide the leadership needed for global prosperity, these results must be sustained and growth, but it still significantly trails the Economic Research. “If Europe, the improved upon.

Key Findings The new member states from central and eastern Europe were United States, states a recent Conference world’s second largest economy, is going Productivity and employment growth accelerated in the also able to maintain very high productivity growth (on average European Union (EU-25) with the old EU membership (EU- more than 4 percent) as the structural reforms continue. 15) increasing productivity growth from .9 to 1.3 percent from 2003 to 2004. Simultaneously, the EU recovered from U.S. Still Leads Board report. to provide the leadership and drive negative growth in total hours worked (-.2 percent in 2002 Despite the improved performance, the European Union and 0.0 percent in 2003) to a positive .8 percent growth in remains behind the United States which improved both labor 2004. The new EU membership (EU-10) accelerated their productivity and labor input in 2004 at about double the hours worked growth to .4 percent—a rate well above the EU-25 growth rates. The United States maintained a high needed for global prosperity as stated in 1.8 percent decline experienced over the previous three years. productivity growth rate of 3.1 percent in 2004. With a big

Editor’s Note: This Executive Action report offers the most up-to-date full report, Performance 2005, Productivity, Employment and Income in Productivity in the EU-25 nation bloc its Lisbon goals, the 2004 results must and timely look at key productivity and income trends through the the World’s Economies, to be released in March, will provide a wider end of 2004 based on The Conference Board & Groningen Growth and range of country specific analysis and trends, including additional Development Centre’s Total Economy Database. The four statistical productivity tables and cover 97 economies and 98 percent of world tables provide a comprehensive look at productivity growth rates and output. The data are available on an annual as well as country-by-country grew from 1.3% to 1.6% in 2004 and be sustained and improved upon. levels for 36 of the more developed economies, including complete basis from http://www.conference-board.org/ economics/ research.cfm coverage of Europe, North America, and Japan. The Conference Board’s or http://www.ggdc.net/deseries/totecon.shtml. labour input growth increased from an Although European productivity growth anaemic minus 0.2% to a positive 0.7%. was about 2.3% in Europe in 2004, this lags the growth rates achieved in European Union Labour Productivity “The turnaround in 2004 in both the US and Japan and is far below the and Employment Growth show productivity and employment growth is growth rates registered in fast-growing Improvement in 2004 welcome news for the EU,” says Dr. Bart countries such as China and .” Executive Action Report No. 129 van Ark, Consulting Director at The

Measuring More The survey shows that companies are competencies/training measures were than Efficiency still struggling to mesh people metrics found to have solid connections to The New Role of Human with overall corporate goals. Only 31% innovation strategies. Remuneration and of survey participants say that HR leadership measures can help boost Capital Metrics executives in their companies have a revenue growth. strong understanding of strategic key While few companies make significant performance indicators. Even fewer use of people measures to meet their consider their HR leaders capable of strategic targets, a majority say that linking people measures to such they will increase their use of these indicators or believe that HR tools, according to “Measuring More professionals receive extensive training than Efficiency”, a recent Conference to connect people measures to strategy. Board study. Where People Measures Work Some 84% of the 104 human resources Traditionally, HR professionals have executives surveyed for the report employed metrics to study the time and predict that their use of human capital cost of utilising people. However, when measures will rise during the next used to evaluate the effectiveness and three years. Only 12% say they are impact of people investments and HR currently using people measures to a activities, people measures are more significant degree. likely to provoke discussions with managers that lead to action plans, “When determining how best to serve as educational tools that help bring demonstrate achievement, human implicit ideas about the value of human resource managers must choose from the capital to the surface, and improve the hundreds of metrics that are currently HR decision-making process. Measuring More Than Efficiency: available to track every aspect of an HR The New Role of department’s endeavours to recruit, The report finds that when popular Human Capital Metrics develop, and retain employees,” says individual measures are correlated Report 1356-04-RR Stephen Gates, Principal Researcher at with important perceived benefits, The Conference Board and author of the certain people measures have been report. “What’s imperative for the health successfully linked to specific strategies. of their businesses, however, is that these For example, employee satisfaction HR professionals tie these people measures and competencies/training metrics more closely into their efforts to meet their were found to match a policy of companies’ overall strategic targets.” customer responsiveness. Leadership and 3 “A Mission that Matters” Barbara Reno heads The Conference Board’s European

Following Malcolm Brooks’ retirement in September, Barbara Reno was appointed to direct The Conference Board’s European operations as Vice President and Managing Executive. A Conference Board executive who has worked at the organisation’s headquarters in in a variety of assignments over the past seven years, Barbara has relocated to Brussels and is now well settled into her new role. She talked to Board Europe about her priorities and vision for The Conference Board Europe.

at a faster pace. Whether you sit at companies well before they hit every- the helm of a company, run a major one’s radar screen. business unit, or staff an important corporate function, you must constantly What do you see as the biggest challenge sift through vast quantities of frequently for The Conference Board Europe disparate bits of information, assessing right now? and analysing in order to make crucial One of our biggest challenges is the many decisions that affect company perform- demands on executive time. Every business ance. It’s an imperfect information person I know is on information overload process at best. with limited tolerance for new input.

What we try to do at The Conference We need to be cutting-edge and highly rel- Board is to arm senior executives with evant if our members are going to sacrifice vital cross-industry and cross-regional their time for our research and our pro- information and viewpoints to bring a grammes. We will need to continuously measure of perspective and insight to innovate and find effective ways for our that decision-making. We’re told by our member company executives to gain the member companies that we provide senior broader insight and perspective that will executives with a crucial external view help them make better decisions.

7 that can be lacking when focusing 7. Barbara Reno, Vice President exclusively on company business. So what would you say to members who and Managing Executive - Europe, are wondering how they can find time to The Conference Board. So what sort of programmes and attend Conference Board meetings? research are you envisaging? External events are occurring so rapidly Barbara, tell us a little about what We plan to build on our solid base that an executive today really can’t brought you here to Europe. What in economics, such as business cycle afford to remain tethered to his or her would you like to achieve? indicators, comparative productivity office. It’s a false economy of time. As a It’s pretty straightforward actually. measures and currency dynamics. We member of The Conference Board’s We’ve been increasingly convinced that will also sharpen our focus on future Councils or Working Groups, you have we need to improve the European focus workforce challenges, such as diversity the unparalleled opportunity to be in a of The Conference Board. I want to build and inclusion, leadership, talent man- closed-door, private session with peers, programmes and research that are agement and the impact of demographic talk candidly about challenges you face directly relevant to the governance and shifts. In fact, this year we’ll be joining and learn what issues others are con- operational challenges of companies forces with Focus Consultancy and the tending with. I have found this to be far conducting business both within and to research good beyond what one can learn from the beyond the enlarged EU. We know we practice in workplace diversity through- business press and thus an invaluable can do much more to improve the out Europe. and effective use of executive time. impact and reputation of The Conference Board in Europe and I’m I feel we are particularly fortunate to You’re an American running a confident we can achieve that goal. have guidance from our European European operation. Do you see that Trustees, Global Counsellors and a as a help or a hindrance? How do you see the role of The newly-forming European Steering A bit of both, I’d say. On the one hand, Conference Board in the European Committee led by François Cornélis of I’ve worked with The Conference Board business context? TOTAL. With their help, we aim to pin- for several years in the US and so have a The business environment for companies point issues that will be important to the strong sense of what this very special has never been more complex or moved chairmen and CEOs of our member organisation can bring to the party. We

4 Welcome, Lily Radburn

Lily Radburn has been appointed Associate Services Executive, UK and . operations In this new role, Lily will develop and strengthen relations with The Conference Board’s member companies in the UK. Working with Keith 8 Holland, Director, UK and Ireland, she will seek to widen company involvement in our range of European Councils and keep members up to date on all our European activities.

would like to see The Conference Board management at Simon & Schuster, Lily comes to The Conference Board from become as vital a player in Europe as it the publisher, and from there I launched Sony Music Entertainment (UK), where she is in the US. We see no comparable pan- a strategy and marketing advisory worked in communications for several years. European organisation operating here practice and began working with The UK members can contact her at: today – I’m really looking forward to Conference Board shortly thereafter. [email protected] strengthening the European pillar of our global network. How has all this prepared you for your new role? China Centre for Business On the other hand, although I’ve worked Bringing about change to build up extensively in Europe, I understand that I businesses is a common thread running and Economics still have a lot to learn about the richness through all my professional roles. I like of its cultural heritage and the different to gather together as many facts and The Conference Board is actively engaged ways business is conducted across this data as possible and discuss options in building an important new non- diverse continent. with those who have first-hand knowl- governmental institution in China that will edge. I fall back on my analytic training help Chinese governmental and regulatory Can you tell us about your and business experience to work out agencies to produce reliable statistical and professional background? alternatives, select what appears to be economic data, and also help companies I started off in the academic world, with the strongest one, work with colleagues operating in China to improve their policy an advanced degree in international to communicate broadly and then focus and decision-making capabilities. relations and Spanish, teaching university- on making things happen. level political science and conducting We are seeking strategic partners in the form research at a university think-tank. Two What do you most enjoy about of Founding Members from leading years after graduate school, I moved working for The Conference Board businesses in our global business network to from the academic ivory tower to Capitol in Europe? help shape this venture and to help fund its Hill in Washington DC, working as a Two things come to mind. Firstly, the initial development. senior congressional staff aide. That was calibre of the people – both the corporate a real change of pace and perspective. executives who are involved with our The Centre will be co-located in Beijing Councils and my colleagues on staff in and New York and will concentrate all Five years later I made another dramatic Brussels and throughout Europe. It’s a The Conference Board’s China-related change - taking a management position great group of people, representing 14 activities and research into one entity. for the World Council of Credit Unions. different nationalities. I’m lucky to be The centre will serve as a way to bring I spent the next few years travelling surrounded by such dedicated profes- together regulators, multinational business extensively throughout developing coun- sionals focused on performance, integrity and academic and policy practitioners into tries in West Africa and Central and results. a strategic dialogue on China’s economic America. From the world of credit future and China’s impact on global unions it was a shorter step than might And secondly, during the course of business. Founding Members so far include be expected to global banking at Chase my career, I’ve criss-crossed between Bekaert, Campbell Soup, DBS, Deloitte, Manhattan Bank in New York. for-profit companies and non-profit PricewaterhouseCoopers and Reuters. organisations. What I love about working At Chase, and later at Merrill Lynch, for non-profits is the sense of purpose If you are interested in learning more I took on a series of management, and mission; and what I love about about the role and benefits of Founding marketing and communications roles, business is the orientation towards Members, please contact Gail Fosler, logging a substantial amount of time in results. At The Conference Board I feel Executive Vice President and Chief Europe, and picking up an MBA in we have the best of both. We value our Economist, The Conference Board: finance and marketing from Columbia mission and getting things done – a mission [email protected] Business School. I moved into senior that matters to business.

5 Council News

Innovation The European Council on Innovation, meeting in Zurich on 13-14 January, 9 was hosted by Dr. Walter Hehl at 9. Viewing a prototype technology demonstration of “The Office of the Future” at the IBM the IBM Zurich Research Laboratory. Zurich Research Laboratory Krishna Nathan, Vice President and Director, IBM Zurich Research Members also enjoyed a fascinating tour discussed IBM’s people management Laboratory, welcomed members to IBM of the Nanoscience/Millipede Lab. policies worldwide. IBM is the world’s Research and spoke about the new largest IT organisation, with 320,000 emphasis on research for services. Dr. Philippe Janson, CHQ IBM Research employees and 73,000 contractors, He discussed whether the growth and a member of the IBM Academy, in 164 countries. Some 53% have been of services and the changing nature of presented an interesting insight into IBM with IBM for less than five years. innovation are driving the emerging Research’s Global Technology Outlook, Transformation priorities in recent years discipline of services science. describing the key technology trends have been: to increase the number of that IBM has identified for the future. technical staff in leadership positions; Dr. Hehl and Maria Soimu, Solutions to develop programmes to attract, Engineer at IBM Research gave The Council was addressed by Joan motivate, develop and retain staff; demonstrations of the “Office of the Buzzallino, VP Human Resources - and to find new ways to add value fast. Future” and the RFID Self Checkout. Technology & , who

Sustainability Reporting Investor Relations At their meeting in Brussels on 26-27 January, members of the European Council on Sustainability Reporting heard about the reporting procedures of four On 13-14 January, the European organisations: the Association of Chartered, Certified Accountants (ACCA), Shell, Council on Investor Relations met in and the Worldwide Fund for Nature. Amsterdam. During the first day, the group updated its progress on the IAS Irene Toxopeus, Sustainable Development Adviser, Shell International, explained and IFRS accounting transition following that Shell’s nine business principles are based on core values of honest, integrity an overview by Dries Ausems, DSM, and and respect for people. It follows that sustainability reporting should be accurate Miguel Temboury, Endesa. Several and honest, acknowledging failures as well as successes. members noted that analysts are slow to ask about these changes, and seem Similarly, aspirations set out in Unilever’s stated “Corporate Purpose” are to await further education and underpinned by a code of business principles which describes operational standards explanations from companies. Others for all employees worldwide. In addition, the company has introduced a business noted that the financial reporting partner code, which applies to all suppliers. Mike Bazley, Occupational Safety, process appears to be slowing down Health and Environment Director – Unilever Home and , Europe described since auditors are increasingly nervous. the steps his division has taken to improve the environmental management systems and overall environmental performance of its manufacturing base in Europe. The Council then heard from two speakers about the European Commission’s directives concerning market abuse and transparency: Philippe Pellé, Deputy Head in charge of company law and corporate governance at the European Commission, and Otmar Winzig, VP, IRO, Software AG, and member of the working group on transparency of the CESR, Committee of European Securities Regulators. Philippe first explained the legislative process (called “Lamfalussy”) involving the 10 11 Commission, Council and Parliament, 10. Irene Toxopeus, Sustainable 11. Mike Bazley, Occupational Safety, which each offer opportunities for Development Advisor, Health and Environment Director, Unilever Home informed input and commentary by Shell International. and Personal Care Europe. IROs and IRO associations. He explained the key features of M.A.D., the market abuse directive, which was adopted 6 Council News

Corporate Communications

“Building Reputation and Trust with EU with the media. It supports the Stakeholders” was the theme of the Brussels legal team with messaging for meeting of the European Council on each stage of the review process. Corporate Communications, hosted by GE Public affairs issues of impor- 12 13 EMEA on 17-18 February. Nani Beccalli, tance to GE include transatlantic 12. Nani Beccalli, President and Chief Executive Officer, President and Chief Executive Officer, dialogue, EU enlargement, the GE International GE International, welcomed members and environment and competitive- 13. Gert-Jan Koopman, Director of Industrial Policy and described how GE had purposefully built ness. Louise spoke specifically Economic Reforms, DG Enterprise and Industry, a more visible presence in Europe over about the company’s initiatives in European Commission the last few years. central and eastern Europe, such as the GE Foundation Scholar-Leader as being unrealistic. The new Barroso Close cooperation between the government Program. GE strengthens government rela- Commission has decided to focus on the relations and corporate communications func- tionships through joint initiatives on major economic growth and job creation goals of tions within GE helps to develop and grow the public and social issues. the Lisbon strategy, but this does not mean business. Council member Louise Binns, ignoring the other important objectives. Communications Director, Corporate Former Wall Street Journal correspondent Gert-Jan Koopman, Director of Industrial Communications GE EMEA, Latin America and Brandon Mitchener gave some advice Policy and Economic Reforms in the Canada, said that, in areas such as regulatory about how companies can get their message European Commission’s DG Enterprise communications, GE’s Corporate Communi- across effectively to the Brussels press and Industry, said that the decision was cations department is the first line of contact corps - the largest in the world, with more made in the demographic context of than 1100 accredited journalists. It is decreasing population levels in Europe important to remember that the journalist combined with ageing. He stressed the that is being targeted may have a wide importance now of moving from objectives knowledge of the topic, but not a very to action. The real responsibility - to boost deep one, so the story should be economic growth, fix malfunctioning labour on 3 December 2002, with an pitched accordingly. markets, and invest in education and R&D - implementation date of 12 October lies with member states governments. 2004. Germany is the first European Moving the EU’s Lisbon agenda forward Companies can help national governments country to implement M.A.D. Philippe In March 2000, the European Council of formulate a modern industrial policy then explained the main features of the Ministers, meeting in Lisbon, set out a ten that will enable Europe to increase its transparency directive, whose aim is year strategy to make the EU the world’s competitiveness and productivity, even if it to upgrade information available to most dynamic and competitive agenda. means taking decisions that are unpopular investors in EU securities markets. These goals have frequently been criticised with the electorate.

Otmar Winzig talked about the procedure for European security markets legislation: four levels beginning with the legal framework through implementation measures, national regulatory authorities, and finally New Council on Strategic Risk Management to increased enforcement of EU regulations by the Commission. The inaugural meeting of the European Council on Strategic Risk Management will take place in He explained how the market abuse Paris on 27-28 April. This cross-industry Council is designed to help senior executives responsible directive will require changes to the for Enterprise Risk Management to benefit from interacting with peers in other companies. IRO’s duties to monitor when and The group will be closely linked to the new US Strategic Risk Management Council that will be how insider information occurs. launched in March. It will bring togetherrepresentatives of some of the largest companies operating Otmar provided an IRO checklist to in Europe and will meet three times a year. Discussion will focus on: prepare the company for implementing • Best practices the directive. The transparency directive • How companies are tying Enterprise Risk Management design and implementation will require reporting of major to strategy shareholdings; frequency and quality of • Embedding risk management practices into already existing processes. corporate reporting; and dissemination of corporate information. Otmar The steering committee includes representatives from , BP, Glasgow suggested five items IROs should ask Caledonian University, Nestlé, Nike, Norske Skog and Stora Enso. for in the transparency directive. He emphasised that the period for For more information about agenda topics and the inaugural meeting, contact Jory Buhay, providing technical advice and input to European Council Development Manager: [email protected] the Commission ends in July 2005, although implementation of the directive is set for January 2007. 7 The newsletter Board Europe is published six times a year by The Conference Board Europe, 130 Chaussée de La Hulpe, box 11, 1000 Brussels, Belgium (Tel. 32/2 675 54 05, Fax 32/2 675 03 95, e-mail: [email protected]) and is edited by Sandra Lester. Opinions published in Board Europe shall not be construed as representing those of the Board's European Associates. All rights reserved. Reproduction in whole or in part permitted subject to due acknowledgement. Meetings Diary

Volume 20 • Number 3/4 • March/April 2005

16-17 March 24-25 May Listed here are some forthcoming ❒ European Tax Executives Council ❒ Middle East Business Conference Board events for European Brussels, Belgium Leaders’ Council members. Beirut, Lebanon 17 March If you would like to receive an invitation to any of them, please tick ❒ Polish Council of 26-27 May the appropriate box, supply your name Human Resources Directors ❒ European Council of and company details, and send Warsaw, Poland Chief Financial Officers the form to: Zagreb, Croatia 7 April The Conference Board Europe, ❒ 130 Chaussée de La Hulpe, box 11, ❒ Polish Council of Chief Executives European Council on 1000 Brussels, Belgium Joint meeting with: Investor Relations Alternatively, fax the form to Polish Council Luxembourg 32.2/675 03 95 of Marketing Directors ❒ Warsaw, Poland European Council on Corporate Communications 10-14 April Stockholm, Sweden ❒ Normandy Leadership Experience ❒ European Council on Legal Affairs Normandy, Paris, France Name 27-28 April 1-2 June ❒ European Council on ❒ European Council on Strategic Risk Management Position Health & Safety Inaugural meeting Rome, Italy Paris, France

Company 1-3 June 28-29 April ❒ European Council on ❒ European Council on Managing the Environment Corporate Strategy Address Joint meeting with: Seneffe, Belgium Townley Global Management 5-6 May Centre Councils and Canadian Environmental Council ❒ European Council on Montreal, Canada Tel. Work-Life & Diversity New York, USA 2-3 June Fax ❒ 12-13 May European Council on e-mail Sustainability Reporting ❒ European Council of Controllers Joint meeting with European Joint meeting with: Council on Corporate Citizenship Polish Council of Finance Executives Paris, France Warsaw, Poland ❒ ❒ European Council on The Pensions Council Corporate Governance Budapest, Hungary and Board Effectiveness Stockholm, Sweden 19-20 May ❒ European Council on ❒ European Council on Learning, Leadership and Strategic Manufacturing Organisational Development Aranjuez, Spain Rome, Italy ❒ European Council on www.conference-board.org ❒ European Council on Innovation Global Supply Chain Munich, Germany TBA New Research Publications

Volume 20 • Number 3/4 • March/April 2005

1358-04-RR SR-04-01 ❒ The Retail Revolution: Can Europe ❒ Improving Communications These reports (in full or in summary) match US Productivity Performance? between Companies and Investors can be downloaded from the Members (In the series “Perspectives on Based on The Conference Board’s Only website: a Global Economy”) Global Corporate Governance www.conference- The retail and wholesale trade sectors Research Centre’s first transnational board.org/membersonly.htm have, over the past decade, been key Corporate/Investor Summit held in (If you experience log-on difficulties, contributors to the gap in productivity New York, this report represents a contact: rosa.correia@conference- performance between the United board.org for assistance) unique consensus on best practices to States and the European Union. improve communications between Both sectors are also major sources companies and investors. It includes a Alternatively, complete this form, of employment, and their importance ticking the appropriate boxes, and discussion of comparative legal and is growing. This report dissects and regulatory systems in the US and UK send or fax it to: identifies the root causes of the EU-US The Conference Board Europe productivity growth gap in these 130 Chaussée de La Hulpe, box 11, 1357-04-RR sectors. It takes a unique approach to 1000 Brussels, Belgium the issue – blending economic theory ❒ Directors’ Compensation and tel. 32/2 675 54 05 Board Practices in 2004 fax 32/2 675 03 95 with business case analysis and explains Europe’s lagging performance Reports the amount and type of in the retail sector. The authors believe compensation paid to outside Name that European retail, through the wise directors in 2004 in 510 US use of technology, is primed for a companies in three major industry potential productivity boom despite sectors. It also looks at practices some structural obstacles still in place. Position regarding committee service, benefits for outside directors, board leadership 1356-04-RR and board composition. ❒ Measuring More Than Efficiency: Company The New Role of 1355-04-RR Human Capital Metrics ❒ The 2004 Corporate Provides both an overview of current Contributions Report Address HR metrics practices and a discussion An annual overview of corporate of how these measures can be linked giving, based on information supplied to strategic goals and initiatives. by the largest US corporations. The report also includes examples The report disseminates annual of innovative metrics programmes corporate contributions data, including Tel. currently in place at a number pre-tax income, sales per employee of companies. Fax and other benchmarking data.

SR-04-02 e-mail 1354-04-RR ❒ The Future of the Annual ❒ The 2004 Top Executive General Meeting Compensation Report Based on The Conference Board’s Global Corporate Governance This annual report, based Research Centre’s second Corporate/ primarily on proxy and financial Investor Summit, this report statements, details the average 2003 represents a unique consensus compensation of the five highest-paid achieved on what is referred to as the executives in 2,896 companies annual general meeting (AGM) in in 14 major industry sectors (US). Europe and the annual shareholder It combines long-term compensation meeting in the United States. It with current pay to arrive at “total addresses the purpose of the AGM; compensation.” The full report whether its format can be improved to includes compensation breakdowns facilitate communications between by industry category, with more www.conference-board.org companies and investors; international than 400 tables and charts, best practices for AGMs; and the shape as well as access to an Interactive and direction of the AGM in the future. Compensation Calculator.