Reed Elsevier Study 17/6/10 11:09 Page 1 www.thetimes100.co.uk Corporate Responsibility and stakeholders Curriculum Topics • Internal stakeholders • External stakeholders • Stakeholder conflict • Benefits of stakeholder focus Introduction The company now operates in more than 200 locations worldwide and annual revenues for 2009 were £6 billion. Revenues are Reed Elsevier is a leading provider of professional research largely from subscriptions to its titles. It employs around 32,000 information to organisations around the world. It publishes people including IT specialists, editorial teams and marketing, journals, books and databases and manages exhibitions and sales and customer service staff. To enable the business to focus events. Its well-known titles - such as New Scientist and The on specific customer needs, the company has four divisions. Lancet - appear both in print and online. Reed Elsevier has a worldwide customer base working in many fields, including 1. Elsevier – publishing science and health information to promote science, research and the law, as well as in public and academic research and discovery ® libraries and commercial organisations. This includes around 2. LexisNexis – A leading global provider of content-enabled 11 million scientists who access information direct from workflow solutions designed specifically for professionals in the Reed Elsevier’s ScienceDirect database – the world’s largest legal, risk management, corporate, government, law online library of full-text research papers. enforcement, accounting, and academic markets. Across the globe, LexisNexis provides customers with access to billions of Reed Elsevier was formed in 1993 when the businesses of the searchable documents and records from more than 45,000 British publisher Reed International and the Dutch publisher legal, news and business sources. Elsevier NV merged. The Reeds were Methodists and took a 3. Reed Exhibitions – organising events, exhibitions, conferences philanthropic approach to the business. This means that they for over 44 industry sectors applied the present-day idea of Corporate Responsibility (CR) 4. Reed Business Information – producing trade journals, within the company. They promoted health and safety for their blogs and web directories to deliver information to users workers and better standards of living. worldwide. C16th – Elsevier family sets up 1894 – Albert E Reed sets up 1970 – Reed becomes 1982 – Reed 1993 – Reed Elsevier booksellers and printers newsprint manufacturing in Kent, UK Reed International Ltd International PLC established 1880 – Jacobus George Robbers sets 1979 – Elsevier Press becomes 1991 – Elsevier acquires up publishing company in Holland using 1951 – Elsevier Press Inc set up in USA Pergamon Press in UK Elsevier name Elsevier Scientific Publishing Merged: Two or more companies joined. Corporate Responsibility (CR): The responsibility of an organisation to a range of stakeholders including the community and society at large. GLOSSARY EDITION 15 www.thetimes100.co.uk Reed Elsevier | Corporate Responsibility and stakeholders ?? Reed Elsevier Study 17/6/10 11:09 Page 2 www.thetimes100.co.uk Reed Elsevier’s values guide the behaviours of its people toward Employees at all levels are also an important internal stakeholder providing the right products and services to enable the company to group. Reed Elsevier needs to retain its diverse and talented grow. Reed Elsevier’s values also affect the strategies it develops employees who bring professionalism and energy to their roles. for both internal and external stakeholders. It aims to respond to This helps the business to provide the highest levels of customer all their needs through innovative products and services. service, attract new customers and retain existing ones. To encourage this, Reed Elsevier has set up various initiatives internally, for example: • All employees are offered training on the Reed Elsevier Code of customer focus valuing our people Ethics and Business Conduct to ensure best practice. 80% had completed the course by end of 2009. VALUES • As LexisNexis’ risk information services involve access to boundarylessness passion for winning consumer data, 12,000 US employees in the division completed training on data privacy and security in 2009. innovation • Flexible or home working across the business supports the work-life balance of employees, enhances performance and productivity and reduces employee stress. Corporate responsibility is an integral part of the business. • ‘Boundarylessness’ – the company’s different divisions act as one Matching financial and non-financial performance provides a organisation - provides opportunities for staff to take advantage win/win outcome for the business and its stakeholders. of internal transfers and promotions to develop. This enables Reed Elsevier’s market leadership comes from focusing on the them to make a contribution to the whole of Reed Elsevier. needs of all of its stakeholders – internal and external. ‘We realise we must manage well issues that affect all businesses – Suppliers also hold a stake in the company to which they provide governance, people, health and safety, customers, supply chain, materials and services. For example: environment and community. Constant engagement with • As part of the company’s Socially Responsible Supplier stakeholders, including shareholders, employees, communities, programme, suppliers are asked to sign the Reed Elsevier governments, and members of civil society, help us refine these Supplier Code of Conduct. This sets out the standards which it material CR issues.’ (CR Report 2009) expects its suppliers to meet. Suppliers must follow all relevant laws, promote best practice and respect environmental This case study shows how Reed Elsevier’s business benefits from conditions, such as using sustainable sources for paper or meeting the needs of all of its stakeholders. dealing responsibly with waste products. • Authors who provide the journal articles for Elsevier’s scientific Internal stakeholders publications are also suppliers. They have the opportunity to put the final version of their work on their own institution’s Reed Elsevier’s internal stakeholders have a range of interests in website as well as having it published through Elsevier. the different parts of the company and its activities. External stakeholders Shareholders are key internal stakeholders. As investors, they take a financial stake in the company by purchasing shares. They External stakeholders are those individuals or groups outside the will look for the best return on investment which is usually made business. To differentiate the company from other information in the form of a share of the profits. providers, Reed Elsevier focuses on CR performance. • CR strategies benefit shareholders by making the business attractive to investors and improving its share value. Customers expect good value, high-quality products and great • By reducing costs and therefore improving revenues and service. Reed Elsevier achieves this through close relationships and efficiency, Reed Elsevier steadily increases the dividends paid consultation with the customer. It conducts widespread surveys of to its shareholders. customer opinion. GLOSSARY Values: What a company stands for. Shareholder: A person owning or period (usually one year) relative to the Employees: The people who work for Strategy: Long-term business plan of holding a share or shares of stock; a long-term capital employed. Calculated an organisation. an organisation. stockholder. as: operating profit/long-term capital Suppliers: Growers or providers of Stakeholders: Individuals and groups Investors: Those who put money into a employed X 100. goods and materials. with an interest in an organisation and venture. Dividends: A share of the company's Customers: Individuals or organisations the decisions it makes. Return on investment: Profit over a profit paid to shareholders. that buy a product. EDITION ?? Reed Elsevier | Corporate Responsibility and stakeholders www.thetimes100.co.uk 15 Reed Elsevier Study 17/6/10 11:09 Page 3 www.thetimes100.co.uk These identify the value customers place on its services and This programme encourages staff to work together to make a products and highlight potential improvements. In this way, difference in local communities. It increased volunteering by 10% in customers have a real role in helping the business to develop and 2009 over the previous year: grow. This results in longer-term relationships where customers feel • It provides education for disadvantaged young people. they have an input into the services offered. It builds loyalty and Initiatives range from reading support to charity fundraising. creates the potential for increased business. • During 2009, employees around the world donated 14,000 books for local and developing world readers. • Reed Elsevier has a formal policy of donating unwanted book Scientists Healthcare providers stock to institutions to provide more access to information. Legal Educators Reed Elsevier profession Society customers Reed Elsevier’s CR approach impacts on society in several ways: Students Industry • In line with its Code of Ethics, it promotes responsible Research advertising and a transparent editorial policy for its publications. • Reed Elsevier is committed to reducing use of energy, water and paper in its publishing processes and using sustainable materials Reed Elsevier customers come from the public, commercial and wherever possible. In 2009, it reduced