Global Compact International Yearbook Ausgabe 2013

we support 

Global Compact 

International Yearbook 

2013

This publication is kindly supported by: 

AYA Bank 

Adecco Group 

Air France KLM 

Arab African International Bank 

Audi 

Bayer 

Bosch 

Bradesco 

Business Keeper 

Camfil 

Camposol 

Coca-Cola Deutschland 

Consolidated Contractors Company 

Coop 

Copeinca 

Deutsche Telekom 

EDF Group 

Green Delta Insurance 

HOCHTIEF 

ITOCHU 

ManpowerGroup 

Medcom 

MTU Aero Engines 

Nestlé 

Novo Nordisk 

Prosegur 

Ricoh 

Royal Bank of Scotland Group 

Saga Furs 

SK 

Teck 

Thales 

The TMS Group 

TÜV Rheinland 

Volkswagen 

Weidmüller 

Global Logistics Partner: 

Deutsche Post DHL 

The Global Compact International Yearbook is a product of macondo Media Group in support of the UN Global Compact and the advancement 

of corporate sustainability globally. All regular participants of the UN Global Compact with an active reporting status are allowed to apply for 

participation in the International Yearbook. While the yearbook is developed in cooperation with the Global Compact Office, sponsorship by companies 

does not constitute a contribution to the Foundation for the Global Compact. Financial contributions are not collected on behalf of the 

Global Compact Office. Rather, they are exclusively used to fund the development of the International Yearbook 2013 by macondo Media Group.

GC International Yearbook 

Greeting 

H.E. Ban Ki-moon, UN Secretary-General 

“ 

A growing number of businesses in all regions recognize 

the importance of reflecting environmental, 

social and economic considerations in their operations 

and strategies. 

More than 7,000 companies have embraced the Global 

Compact principles. 

Now, the challenge is to move from incremental progress 

to transformation – in markets and societies alike. 

… Governments and the UN are now working to accelerate 

momentum to achieve the Millennium Development 

Goals and set global priorities for the post-2015 period. 

Global Compact participants are already deeply invested. 

Scores of country and sectoral consultations are collecting 

business views and perspectives. 

The Global Compact Leaders Summit in September is an 

opportunity to show the world how business and the UN 

can work together towards common goals in critical areas, 

such as climate change, energy, water, food, women’s 

” 

empowerment, children’s rights, decent jobs, and 

education. 

Global Compact International Yearbook 2013 3

ote///Keynote///Keynote///Keynote///Keynote// 

The UN Global Compact Leaders Summit, held every three years, is 

well timed to take advantage of the momentum in favor of corporate 

sustainability that has accelerated rapidly since the 2012 UN Conference 

on Sustainable Development (Rio+20). 

On the sidelines of Rio+20, nearly 3,000 representatives of companies and 

other stakeholders took part in the Corporate Sustainability Forum organized 

by the Global Compact. The Forum showed business not only supporting the 

efforts of governments to tackle global priorities, but also bringing to the table 

inspiring examples of imagination, innovation, and collaboration. 

With CEOs and representatives of the 7,500 firms and 3,500 civil society 

organizations participating in the Global Compact meeting in New York on 

September 19 - 20, 2013, the opportunity is ripe for scaling-up corporate 

sustainability efforts to tackle our world’s most pressing challenges. 

Georg Kell, 

Executive Director, UN Global Compact 

The following week, the UN General Assembly will consider the follow-up to 

Rio+20, including a development agenda to succeed the Millennium Development 

Goals, as well as the possibility of a new set of Sustainable Development 

Goals. The UN Secretary-General will report to UN Member States his own 

vision for the future. His plan has been informed by a Global Compact report 

that is the result of one of the most comprehensive consultations and surveys 

on sustainable development ever held in the business community and which 

was conducted over the course of a year. 

The vision of what the world could and should look like in 15 or 20 years from 

now – and especially how businesses can engage and be part of that movement – 

is integral to the Global Compact Leaders Summit agenda. Most significantly, 

we are unveiling, fine-tuning, and validating a new architecture for business 

engagement with the global priorities contained in the future UN agenda. 

Secretary-General Ban Ki-moon is once again the Chair of the Global Compact 

Leaders Summit. He also convenes a high-level Private Sector Forum, which 

in 2013 is focused on Africa. Heads of state and government, CEOs, leaders 

from civil society, foundations, and the UN are taking part in the Forum and 

will address some of the key themes for future development on the continent – 

education, employment, empowerment of women, and innovative financing. 

Many of the challenges at the top of the UN’s agenda moving forward are 

closely linked with climate change. 

4 

Global Compact International Yearbook 2013

Agenda 

Keynote 

/Keynote///Keynote///Keynote///Keynote///Keyn 

Caring for Climate – the world’s largest climate action platform involving 

350 companies from 65 countries – convened a private meeting at the 

December 2012 climate change talks in Doha. The meeting featured the UN 

Secretary-General, UN Environment Programme (UNEP) Executive Director 

Achim Steiner, and UN Framework Convention on Climate Change (UNFCCC) 

Executive Secretary Christiana Figueres. The event was considered a key event 

at COP 18 and drew more than 60 senior representatives from business, civil 

society, government, and the UN. 

For COP 19, Caring for Climate – led by the UN Global Compact, UNEP, 

and UNFCCC – is expanding its role. It will hold a Business Forum at the 

November climate talks in Warsaw, with the aims of scaling-up business 

innovation, encouraging ambition in public and private policies on climate, 

and fostering collaboration among corporations, investors, civil society, the 

public sector, and the UN. 

Corruption is another challenge at the heart of a wide range of issues, including 

governance, equity and inclusiveness, sustainable economic growth, and 

the quality of infrastructure investment. 

The year 2013 may be remembered in many quarters for our global call to 

companies to take greater steps to combat corruption. The Call to Action to 

Governments from the Private Sector on Anti-Corruption and the Post-2015 

Development Agenda urges Global Compact business participants to join 

forces with governments and encourages them to create robust disclosure, 

transparency, and enforcement mechanisms that contribute to sustainable 

development – particularly in the area of public procurement. As part of the 

year-long global campaign, the Call to Action is showcasing the private sector’s 

commitment to transparency and anti-corruption as the UN works on a new 

set of global development priorities. 

These few examples of the range of recent UN Global Compact activities 

indicate that it has been a big year for action, with many possibilities 

for the future. With heightened business action in support of the 

development agenda resulting from the Leaders Summit, we expect to 

continue this strong advance. 


GREETING 

3 

H.E. Ban Ki-moon, 

United Nations 

Secretary-General 

KEYNOTES 

4 

10 

32 

176 

Georg Kell, Executive Director, 

UN Global Compact 

Roman Dashkov, CEO, 

Sakhalin Energy Investment 

Company Ltd. 

Dr. Frank Appel, CEO, 


Dr. Kurt Bock, Chairman of the 

Board of Executive Directors, 

BASF SE 

8Stakeholder Management 

STAKEHOLDER MANAGEMENT 

CLIMATE CHANGE 

CSR IN AFRICA 

12 

18 

22 

25 

28 

Stakeholder Management – 

An Introduction 

Klaus Lintemeier, Prof. Dr. Lars 

Rademacher, and Dr. Ansgar 

Thiessen 

Managing Corporate Legitimacy 

and the UN Global Compact 

Dr. Dorothée Baumann-Pauly 

and Prof. Dr. Andreas Georg 

Scherer 

The Global Compact as a 

Multistakeholder Initiative 

Prof. Dr. Andreas Rasche 

Responsible Lobbying 

Dr. Stephanos Anastasiadis and 

Dr. Sigrun M. Wagner 

Which Form of Dialogue Is 

Suitable for Which Purpose? 

34 

38 

40 

42 

46 

48 

The Case for a Clean Revolution 

Mark Kenber 

The Carbon Atlas 

The World Is Awaiting Innovation 

Prof. Dr. Dr. h.c. Hans Joachim 

Schellnhuber 

What Business Has to Gain 

from Engaging in International 

Climate Policy 

Julie-Anne Richards 

Join Our Clean Generation 

Movement! 

Dr. Bertrand Piccard 

Portrait: Caring for Climate 

52 

56 

58 

60 

63 

66 

Africa’s Natural Assets: 

The Struggle for Sustainability 

Fred Nelson 

Good Practices: 

Cotton Made in Africa, 

World Cocoa Foundation, 

Sustainable Energy Africa 

The UN Global Compact 

in Africa 

“Renewed Energy for 

Women’s Empowerment” 

Nomcebo Manzini 

CSR in South Africa 

Prof. Ralph Hamann 

CSR and Development in Africa: 

Public and Private Actors in 

the Mining Sector 

Prof. Bonnie Campbell

GOOD PRACTICE 

Human Rights 

74 


76 

Ayeyarwady Bank 

80 

Bayer 

82 


84 


86 

Medcom 

88 

Novo Nordisk 

50 

CSR in Africa 

90 

92 

94 

96 

98 

100 

102 

Sakhalin Energy 

SK 

Teck 

The TMS Group 

Labour Standards 

Adecco Group 

Bosch 

ManpowerGroup 

104 

Saga Furs 

174 

Integrated Reporting 

106 

110 

112 

114 

118 

120 

122 

Weidmüller 

Environment 

Audi 

Camfil 



EDF Group 

Grundfos 

126 


128 


Anti-Corruption 

130 


132 

Thales 

CSR Management 

136 

BASF 

140 


142 

HOCHTIEF 

144 

MAN 

148 

Ricoh 

150 

Volkswagen 

Development 

152 

Camposol 

INTEGRATED REPORTING 

178 

182 

Integrated Reporting: 

Old Wine in New Bottles? 

Dr. Lothar Rieth and 

Christoph Dolderer 

What Are the Benefits of 

Integrated Reporting? 

Nicolette Behncke 

184 

188 

When Does It Pay? 

Linking Carbon and 

Financial Performance 

Prof. Dr. Timo Busch 

Unpacking the CSR-CFP Link 

Francesco Perrini, 

Angeloantonio Russo, 

Antonio Tencati and 

Clodia Vurro 

153 

154 

156 

158 

160 

162 

166 

168 

Copeinca 

Coop 

ITOCHU 

Nestlé 

Prosegur 

Sanofi 


Financial Markets 


170 

Bradesco 

172 

Royal Bank of Scotland Group

8 


Agenda 

Stakeholder Management 

STAKEHOLDER MANAGEMENT 

Experience shows that long-term success can be achieved when joint efforts are undertaken 

to get solutions underway. That is why stakeholder dialogues are increasingly proposed 

as an approach to problem-solving. This chapter gives a comprehensive insight to various 

aspects of stakeholder management. 



Q: Your stakeholder engagement is based on the commitments set down 

in various documents. Can you explain this approach to us? 

Mr. Dashkov: As the company is convinced that regular and 

meaningful engagement is an especially important element of successful 

operations, Sakhalin Energy has been proactively sharing 

information and consulting with stakeholders since the start of the 

Sakhalin-2 project. 

The company’s stakeholder engagement is based on its commitments, as 

set forth in the Statement of General Business Principles – a key 

company document – and the Code of Conduct, which includes 

the rules and regulations necessary to observe said Principles. Detailed 

information about the commitments has been outlined in 

documents such as Sustainable Development Policy, Human Rights 

Policy, Commitments and Policy on HSE and Social Performance, 

and Social Performance Standard. 

All these documents define the engagement strategy, principles, 

processes, mechanisms, and tools and are available to the general 

public. Our day-to-day operations are outlined in the annual Public 

Consultation and Disclosure Plan. 

Roman Dashkov, CEO, 

Sakhalin Energy Investment Company Ltd. 

The strength of Sakhalin Energy is that all these documents are 

incorporated into the corporate management system and the performance 

of engagement activities is under close control by management. 

Moreover, general awareness on engagement is included 

in the mandatory corporate training program. In order to ensure 

compliance with the company’s requirements, special trainings are 

conducted for contractors as well. 

The engagement outcomes are available in our annual Sustainable 

Development Report and Public Consultation and Disclosure Report. 

Which mechanisms and tools do you use and what are your experiences with 

these? 

Stakeholder engagement mechanisms and tools are selected based 

on the engagement goals and dependent on the stakeholder group. 

Special attention is given to affected communities and vulnerable 

groups. 

We implement five basic complementary and interdependent mechanisms: 

impact assessment consultations; three-level system of direct 

communication with communities (including company, community 

10 


Agenda 



liaison officers, and information centers); grievance mechanisms; partnerships; 

and public reporting. All of them have proved their efficiency and value, both for 

business and stakeholders during all phases of the Sakhalin-2 project development. 

The particular tools include public, focus, and individual meetings; workshops; 

interviews; open hours, etc. Our tools are not something static – they are updated 

based on internal and external verifications and stakeholders’ feedback as well. 

We have implemented training workshops for suppliers and contractors about the 

company’s requirements in the area of corporate social responsibility. A few years 

ago, the company established a network of information centers in communities 

located near our facilities. Another example of following public recommendations 

is the arrangement of information tours to the company’s assets. 

Invariably, we rely on respectful, fair, open, transparent, and culturally appropriate 

engagement as a key principle. 

Your Indigenous Minority Program is a concrete example. Can you describe the plan? 

The Sakhalin Indigenous Minorities Development Plan (SIMDP) is a classic tri-sector 

partnership implemented by civil society, business, and government. 

This program is based on international standards concerning indigenous peoples, 

for example the “free, prior and informed consent” principle provided in the UN 

Declaration on the Rights of Indigenous Peoples and in the Performance Standards 

of the International Finance Corporation. 

Active participation of indigenous representatives in the Plan management as well 

as in its development and implementation is a critical component of the approach of 

the three partners. Such participation requires sensitivity toward indigenous people’s 

culture during engagement; recognition of the need for achieving consensus in the 

context of both traditional and innovative structures, values, and practices; and also 

the planning and use of a multi-aspect approach that considers ethnic, geographic, agerelated, 

social, organizational, and gender characteristics. What is more, the partners 

put special emphasis on the transparency of actions, timely exchange of information, 

and shared responsibility. All that has resulted in the implementation of more than 

400 projects in the areas of traditional economic activities, education and health, 

capacity-building, and the preservation of traditional culture and indigenous 

languages. In so doing, the decision to support projects is made directly by the 

indigenous representatives. 

SIMDP has been successfully implemented for more than seven years, during 

which time we have gained tremendous knowledge and learned how to become 

much more flexible. The Plan is not an authoritative doctrine, it is a living 

mechanism that addresses the changing demands of society and develops 

itself accordingly. 


STAKEHOLDER MANAGEMENT – 

An Introduction 

By Klaus Lintemeier, Prof. Dr. Lars Rademacher, and Dr. Ansgar Thiessen 

The landscape of business and enterprise policy is subject 

to almost unparalleled change. An ever-increasing majority 

of corporate and institutional management boards find 

themselves operating in a networked world of interests and 

opportunities for influence. In addition to primary stakeholders 

such as shareholders, customers, suppliers, and employees, 

secondary and tertiary stakeholder groups are increasingly 

making regulatory, social, political, and ethical demands on 

businesses. 

Public and social stakeholder groups are increasingly seeking 

to bring their influence to bear on corporate decision 

making and investment. Politicians have discovered social 

risk-management and are increasing their regulatory requirements 

on businesses and commercial sectors through 

their legislative powers; NGOs draw attention to abuses and 

irregularities by means of effective and high-quality media 

campaigns. At the same time, the market place of public 

opinion is going through fundamental and rapid changes: The 

established media are beginning to lose their capacity to lead; 

opinions are formed in ways that are more direct, digital, and 

decentralized; and transparency and dialogue are the order 

of the day for almost all businesses. Communications with 

external as well as internal stakeholders rely increasingly on 

substantive content, and close and resilient relationships with 

stakeholders are an important factor for success in business. 

12 


Agenda 


In the future, the currently still dominant focus on shareholders 

and target groups will no longer be able to cope with the rapid 

pace of change in the business environment. Shareholders 

are an important stakeholder group for sustainable business 

success, but not the only such group. Nowadays, the task of a 

future-proof and sustainable strategy is rather that of weighing 

up the requirements of politics, society, business, and science 

and aligning them with corporate goals. The so-called license 

to trade depends not only on dialogue with all relevant interest 

groups and opinion leaders: Stakeholders and target groups do 

not simply expect information about activities and decisions 

from businesses, they want instead to be actively involved 

and integrated in discussions and decision-making processes. 

Businesses and institutions are therefore confronted with a 

dual task: (1) What are the (new) procedures that we need to 

establish for the involvement and participation of external 

and internal stakeholders? (2) What kinds of interactive and 

communicative innovations might take us beyond information 

exchange and simple dialogue with stakeholders and 

create added value? 

It is these challenges that are investigated in a new report, 

for which we interviewed around 100 stakeholder managers 

from Germany, Austria, and Switzerland. The study is titled 

“Stakeholder Integration: the contribution made by corporate 

communications and sustainability management to value creation.” 

It is a project being carried out through a cooperation 

between Lintemeier Stakeholder Relations, Knobel Corporate 

Communications, and the MHMK (Macromedia University for 

Media and Communication) and serves as a descriptive analysis 

of the current situation. It provides unique insights into the 

structure of stakeholder management; identifies its substantive 

and methodological foci; describes its fields of activity 

and how its operative managers understand their roles; and 

identifies different models of integration of internal as well as 

external stakeholders. The companies surveyed were divided 

into four roughly equal groups according to sales volume: up to 

€ 100 million, up to € 500 million, up to € 5 billion, and over 

€ 5 billion. Here we describe the most important findings from 

the results of the study. 

Paradigm shift: From shareholder value to stakeholder 

value? 

The philosophy of corporate leadership is undergoing a paradigm 

shift. In the future, a strong orientation toward shareholders 

among managers will be complemented by a greater 

emphasis on a stakeholder approach, one which recognizes 

that the providers of capital represent a group with legitimate, 

but not exclusive, claims on companies. The rapid pace of 

change in the business environment and the need for speed 

and flexibility in strategic decision making mean that early 

involvement in the strategic process of groups with legitimate 

interests – recognizing those interests, dealing with them, 

and managing them – is essential. The interests of (often 

critical) social groups, in particular, are frequently articulated 

to businesses and pursued in public – sometimes with great 

professionalism. This calls for corporate management that 

works through – and not against – such interests in order 

to enable sustainably effective corporate decision making. 

Over the long term, actions that conflict with perceived social 

values will jeopardize an organization. Conversely, potential 

gains can only be realized if stakeholders’ interests are consistently 

integrated into corporate strategy. As R. Edward Freeman 

argues, stakeholders’ interests increasingly converge over 

time. This suggests a developmental process: If stakeholders’ 

interests align ever more closely with each other, then the 

stakeholders in question will gradually – and naturally – 

come together, forming alliances in the worst-case scenario. 

If the social momentum achieved by these cooperating actors 

grows proportionately, these actors may then be able to assert 

their interests successfully, for example through legislation. 

In most cases, this is the least desirable outcome, because it 

restricts the company’s room for maneuver. It follows that 

companies need to address stakeholders’ interests and integrate 

them into their business processes. If companies are not 

proactive in this way, they may find themselves compelled 

to act due to new state regulations. Over the medium term, 

management of stakeholders becomes management for stakeholders. 

This would probably represent the most radical shift 

imaginable for today’s managers. 

Stakeholder management in companies has been implemented 

mainly in a descriptive manner until now; interest 

groups are, at best, informed about corporate plans. However, 

the potential to involve them in strategic discussion 

and decision-making processes goes much further. In the 

future, a more normative perspective and the associated 

concept of shareholder value will gravitate to the center of 

corporate activity – with the recognition that stakeholders 

are a constitutive element of business success. Their strategic 

and systematic integration will become one of the decisive 

factors in any such success. 

The digitalization of communications is strengthening 

networks among stakeholders 

The reasons for this lie in a coming of age and an increase in 

autonomy in those stakeholder groups that, until now, had 

been unable to properly articulate or assert their interests vis 

à vis companies and institutions. 

New channels of communication have given rise to greater 

powers of interest assertion, which can hamper – or even 

prevent – the implementation of strategic decisions such 

as investments in infrastructural measures or bringing new 


products onto the market. Legitimate interests are no longer 

being articulated solely by opinion-leading stakeholders such 

as “the politicians,” “the media,” “the banks,” or “the NGOs,” 

but by local communities, parents, civic leaders, investors, associations, 

teachers, doctors, and ratings agencies. Alongside 

the so-called primary stakeholders, there are an increasing 

numbers of secondary and tertiary stakeholders who are putting 

forward clear positions and convincing cases. 

Moreover, responsible, sustainable, and ethical corporate leadership 

is no longer generally regarded just as a social ideal but as 

a commercial necessity. Sustainability and improved efficiency, 

previously believed to be in conflict, are now recognized as 

joint prerequisites for competitive advantage. 

Future importance of stakeholder management 

The reason for the high importance attached to stakeholder 

management by small and medium-sized enterprises lies in 

the increasing pressure that stakeholder groups are now exerting 

on such firms. Whereas it was mostly big players who 

were under attack around the time of the millennium, today 

it is increasingly the so-called hidden champions – classic 

business-to-business companies – that are being closely 

monitored by critical stakeholder groups. The objects of this 

media attention are no longer only companies from the 

food production, financial, energy, and automobile sectors, 

but also include components suppliers, food retailers and 

delivery companies, raw materials suppliers, and mechanical 

engineering companies. 

This trend is going to continue. Critical stakeholder groups 

are expanding their horizons beyond consumer and environmental 

concerns to take in the entire business supply chain. 

Whereas in the past, questionable product or contractual issues 

dominated the debate, today all the links in the corporate 

value-creation chain are scrutinized under ecological, ethical, 

and sustainability criteria with the aim of comprehensive riskand 

sustainability management. It is in this spirit, too, that 

NGOs now publicly proclaim that they will no longer restrict 

their attacks to major companies but will deliberately include 

small companies and suppliers. 

14 


Agenda 


Group One : Stakeholder management organized as 

autonomous division 

Stakeholder management within 

companies is organized according 

to three different categories: 

“stand alone,” “dialogue-based,” 

and “strategic” 

In the coming years, therefore, companies will have to work 

out for themselves the answer to the question of whether the 

organization of stakeholder management should be central 

or decentralized and how it should therefore relate to already 

established corporate divisions. The results enable a fundamental 

division into three possible categories. 

Organizational forms of 

stakeholder management 

48 % 

7 % 

32 % 

This group is relatively small, comprising only 7 percent. 

The companies surveyed enable no conclusions to be drawn 

on whether the establishment of an autonomous division is 

dependent on the number of employees (e.g., predominantly 

in large companies), on the sector (e.g., predominantly in 

pharmaceutical companies), on turnover (e.g., predominantly 

in companies with a large turnover), or on the organizational 

location of stakeholder management (e.g., predominantly as 

a C-level function). 

The reason for this lies in the fact that the professionalization 

of stakeholder management is only now slowly beginning. 

American companies with European headquarters in Germany, 

Austria, or Switzerland, for example, demonstrate a more 

frequent propensity to locate stakeholder management in an 

autonomous division. In international comparison, the management 

of stakeholder interests in the companies surveyed here 

is predominantly the responsibility of the communications 

division. American experience demonstrates that a targeted 

integration of process controls within a dedicated corporate 

division is crucial to the success of stakeholder management. 

Group Two: Stakeholder management located in dialogue-based 

corporate functions. 

In approximately one-third of companies, stakeholder management 

is organized in dialogue-based corporate functions 

such as corporate communications or public affairs/corporate 

affairs. The reasons for this are mainly “historical.” Both corporate 

communications and public affairs/corporate affairs 

are responsible for communications tasks conducted by way 

of dialogue. However, the stakeholder approach is interpreted 

in the first instance only as an extension of acknowledged 

legitimate interest groups beyond the media, customers, 

employees, and capital markets. We demonstrate below that 

dialogue is understood as a channel for information and not 

as a form of consultation. 

stand-alone 

dialogue-based 

strategic 

multiple divisions 

13 % 

Group Three: Stakeholder management located in more 

strategic organizational units. 

In this group, stakeholder management is accorded a greater 

priority within corporate leadership and thus acquires the status 

of a management function. It is explicitly not detached from 

other corporate divisions (“stand alone”), nor is it restricted 

to its purely communications elements (“dialogue-based”). 

Firms that organize their stakeholder management in this way 

incorporate a stakeholder perspective in their discussions and 

decision-making processes. Here, stakeholder management is 

integrated on the management level, and it is precisely there 

that its contribution is made. 


10 theses on the stakeholder management of 

the future 

In conclusion, we would like to put forward – as the quintessence of the findings of our 

study – the following 10 theses on the future development of stakeholder management. 

1. The stakeholder approach goes well-beyond simple 

reputation management. 

2. The early integration of stakeholders optimizes 

corporate processes. 

3. Stakeholder management will become more closely 

aligned with the supply chain. 

4. The organization of stakeholder management will be 

professionalized, and interface problems will become 

more complex. 

5. Firms will provide more explanations and 

justifications for their decisions and plans. 

6. Firms will adapt the content of their mission 

statements to the stakeholder approach. 

7. Stakeholder management will move away from its 

focus on critical interest groups. 

8. Corporate communications will free itself from its 

obsession with the media. 

9. Internal stakeholder communications will step out 

of the shadow of external communications. 

10. There will be a convergence between normative and 

strategic issues in corporate governance. 

Stakeholder management has a resource problem 

One indicator of the significance of a corporate function is 

its financing, or the number of full-time staff posts assigned 

to it. Roughly 40 percent of the firms surveyed have created 

a full-time post for stakeholder management. A further 40 

percent allocate between two and five posts to stakeholder 

management. 

Firms with higher annual turnover tend to allocate greater 

resources to stakeholder management. The highest staffing 

numbers are to be found in affiliate companies (33 %), strategic 

management holding companies (29 %), and in autonomous 

corporate divisions (14 %). The number of full-time posts allocated 

to stakeholder management in financial and intermediate 

holding companies is just as small as that in sales and distribution 

companies. The latter figure is particularly striking for 

Switzerland, where multinational companies with local sales 

and distribution subsidiaries are particularly well represented. 

Systematic stakeholder management is not carried out in the 

subsidiaries. The responsibility for this function usually remains 

with the group holding company located abroad. 

Around 10 percent of those firms with only one full-time post 

have a turnover in excess of € 5 billion (4.16 million Swiss 

Francs) and employ more than 10,000 workers. In these firms, 

stakeholder management is either part of a broader corporate 

function or is conceived as a temporary project. 

All together, the number of full-time posts allocated to stakeholder 

management, at between one and five, is small in 

comparison with the number allocated to communications 

and public affairs divisions. The increasing importance of 

stakeholder management has not yet had a substantial impact 

on staffing structures. 

The management of stakeholder interests has only 

limited positive impact on the implementation of 

corporate plans 

In 67 percent of the firms surveyed, stakeholder management 

is understood as relationship management, as a strategic tool 

providing a safeguard against corporate risks. In 64 percent 

of the firms surveyed, it is employed in the building and 

development of corporate reputations. 

16 


Agenda 


Stakeholder management therefore has its greatest significance 

as an essentially defensive risk-management measure (67 %). 

Its claims of being a tool for corporate reputation-building are 

based, above all, on the understanding of stakeholder relations 

primarily operating through the media: Media and communications 

divisions often explain their roles in the firm with 

reference to their contributions to reputation management. 

However, stakeholder management has its greatest impact as 

a strategic instrument for defending a corporation’s ability 

to maneuver freely. This is especially the case when all of 

the relevant stakeholders and opinion leaders are brought 

into a process at an early stage. Among those charged with 

this responsibility in companies, 36 percent see stakeholder 

management as playing a role in conflict management in 

cases where there is resistance from critical stakeholder 

groups. A failure to involve critics would lead to ignorance 

of relevant viewpoints and a misperception of influencing 

and campaigning capacities. This effectively also means that 

stakeholder management must, in the future, become an obligatory 

element of decision-making and planning processes 

(currently 37 %). 

Significant variations in views of the role between sectors 

The perceived role of stakeholder management varies, sometimes 

greatly, between sectors. In the retail (92 %), life science 

(71 %), banking and insurance (72 %), and energy (68 %) sectors, 

it is above all relationship management which plays the biggest 

role. In life science (57 %) and in the technology sector 

(56 %) by contrast, stakeholder management is principally 

an obligatory element in the decision-making and planning 

process. This shows that there are indeed differences between 

sectors in terms of the significance and application of stakeholder 

management. 

The reason for these differences in (the case of) pharmaceutical 

companies is that they are dependent on systematic stakeholder 

management in the licensing process for drugs. And 

the retail sector too has great experience, going back over a 

long period, in the management of complex stakeholder relations, 

on account of its business model. This relies heavily on 

stable relationships and efficient processes between producers, 

suppliers and consumers. 

In contrast, the energy policy debate in all three countries 

surveyed reflects the role of stakeholder management in conflict 

management and lobbying. In the energy sector (59 %), 

stakeholder management means principally dealing with critics 

and involving critical interest groups. This also applies to the 

technology sector (50 %). Here, stakeholder management is 

known almost only in the context of project management. So 

when large investments need to be made in IT infrastructure, 

internal stakeholders often have to be integrated throughout, 

and from an early stage, in conception and implementation 

by means of an appropriate project structure. 

Klaus Lintemeier is CEO, Partner, 

and Founder of the communications 

consultancy Lintemeier Stakeholder 

Relations, Munich / Vienna. 

He advises on strategic issues, 

stakeholder communications, and 

change management. 

Dr. Lars Rademacher is Professor 

of Corporate Communications and 

Course Leader for media management 

at the MHMK in Munich. 

His research areas are CSR; compliance 

and reputation; strategic and leadership 

communications. 

Dr. Ansgar Thiessen is Managing 

Director of Knobel Corporate Communications 

AG, Steinhausen, Switzerland. 

He advises family firms, medium-sized 

enterprises, and international holding 

companies in situations critical to their 

success and on strategic processes. 


Managing Corporate 

Legitimacy and the 


In this article, we explain why managing legitimacy is vital for corporations and how business 

firms can employ strategies to maintain their legitimacy. We then discuss the organizational 

capacities that each legitimacy strategy implies and point out their inherent tensions. Based 

on the results of an empirical study, we show how two large corporations have handled these 

tensions and successfully introduced organizational prerequisites for managing legitimacy. In 

the final part of this article we elaborate on how participants of the UN Global Compact can 

use the initiative to strengthen their legitimacy. 

By Dr. Dorothée Baumann-Pauly and Prof. Dr. Andreas Georg Scherer 

Corporations can no longer easily control their public image 

by means of public relations and marketing. Clearly defined 

corporate reporting requirements, rigorous third-party monitoring 

processes, and multiple media resources of watchdog 

organizations help to shed light on actual business practices. 

The increased transparency with regard to corporate conduct 

has also enabled a larger and more diverse group of corporate 

stakeholders to voice opinions and formulate demands. In 

particular, large brand name companies in sensitive consumer 

goods industries (like food or textiles) are now constantly 

under public scrutiny. For corporations, this situation creates 

new management challenges. To ensure the social acceptance 

of their business (corporate legitimacy), heterogeneous and 

often contradictory stakeholder demands need to be managed. 

Corporate legitimacy as a vital resource for corporations 

Discussing “legitimacy” with corporate practitioners is tricky 

because the term itself is not widely used by business people 

and typically provokes a spontaneous defensive reaction. 

However, in the business context, legitimacy refers to the 

corporate “license to operate” – this license is potentially 

threatened by many critical topics (i.e., corruption, social 

issues, environmental depredation) to which practitioners 

have to respond. 

The management literature uses the legitimacy terminology to 

describe the social acceptance of an organization. Legitimacy 

is considered an essential resource for the survival of the 

organization. Thus, the legitimacy of a corporation is challenged 

when their operations are perceived as inappropriate 

and undesirable within their respective social context. Our 

interviews with corporate practitioners showed that today 

the majority of legitimacy challenges have their roots in the 

sustainability context. So, while some corporations refer to 

their “corporate responsibility / sustainability program,” and 

their “reputation management,” they are in fact more broadly 

managing corporate legitimacy. 

According to Mark Suchman, corporations can respond to 

legitimacy challenges in three ways: They can (1) provide 

benefits to their constituencies, or at least give the impression 

of being beneficial by way of manipulating the perceptions of 

the audiences with impression management and PR (pragmatic 

18 


Agenda 


legitimacy); they can (2) adapt to the social context, that is, 

meet the expectations of their most important stakeholders 

(cognitive legitimacy); and (3) they can engage in dialogue with 

the corporate critics and search for a consensus-based solution 

to the issues that cause the legitimacy challenges (moral legitimacy). 

All three strategies are employed to maintain corporate 

legitimacy or to restore it after a crisis. Research suggests that 

to manage legitimacy successfully, corporations must be able 

to activate multiple legitimacy strategies simultaneously. 

Greater flexibility in the application of different legitimacy 

strategies allows the corporation to develop better responses 

to the constantly changing, multi-layered, socially complex 

corporate environments of large multinational corporations 

that operate in various jurisdictions and cultural settings, as 

well as helping them to face the demands of a multitude of 

different stakeholders. 

However, each legitimacy strategy is associated with a specific 

set of organizational capacities (e.g., organizational structures, 

procedures, and competences), and combining different strategies 

may require seemingly incompatible organizational 

capacities. For example, a manipulative PR strategy requires 

concerted efforts of all corporate functions. Particularly the 

corporate communications function must be closely aligned 

with all other activities in order to effectively shape public 

perceptions. To simultaneously engage in a dialogue with critics 

(moral legitimacy) or to silently adapt to social demands 

(cognitive legitimacy) might undermine the effectiveness of 

manipulation because these activities dilute the strategy’s 

uncompromising focus. By contrast, companies that highlight 

their stakeholder dialogue-orientation risk undermining the 

dialogue’s credibility should their manipulation strategies 

become public. Media reports have recently exposed the 

extensive lobbying activities of companies that have built 

their public image around a dialogue-oriented corporate CSR 

program. The contradicting objectives of the lobbying strategy 

called the sincerity of their corporate promises in the context 

of CSR into question and resulted in a severe (legitimacy) crisis. 

Given the obvious difficulties of creating organizational 

capacities for different legitimacy strategies simultaneously, 

we asked how organizations that are highly exposed to public 

scrutiny design organizational structures and procedures to 

manage these tensions. We therefore selected two large brands 


that produce consumer goods in sensitive industries and analyzed 

how they manage heterogeneous stakeholder demands. 

Company A (a German sportswear company) and Company 

B (a Swiss coffee company) operate in highly competitive 

business environments and they are both in the spotlight of 

critical watchdog organizations. Interviews were conducted 

with the department heads of both companies to learn how 

their functional subunits respond to the specific stakeholder 

expectations of their department, and how they coordinate 

their responses with other departments. Furthermore, we 

were interested to learn how corporate representatives assess 

the adequacy of their responses (e.g., What kind of organizational 

platforms exist to monitor and discuss changing social 

expectations?) and how the assessment results are taken into 

consideration in internal decision-making (e.g., What kind 

of inter-departmental platforms exist to coordinate response 

strategies?). 

Organizational capacities for managing legitimacy 

At both companies under review, we observed a high level of 

activities that organizational literature has termed “boundary 

spanning.” Boundary spanning means expanding the corporate 

perspective by reaching out to organizations or individuals 

outside of the corporation (“external boundary-spanning”) in 

order to absorb and process new challenges, solutions, views, 

or ideas. Boundary spanning can also take place inside the 

organization by increasing inter-departmental coordination 

(“internal boundary-spanning”). Both dimensions of boundary 

spanning (internal and external) are critical for managing 

legitimacy. External boundary-spanning enables the corporation 

to monitor shifting societal trends in various regions and 

audiences. Internal boundary-spanning ensures that societal 

expectations are discussed with members from other departments, 

the adequacy of various response options are assessed 

jointly, and actions are coordinated. 

Boundary spanning is a concept that was developed in the context 

of innovation management and the diffusion of knowledge. 

This theory suggests that organizations vary in their intensity 

and direction of boundary-spanning activities. We apply the 

theory to the study of the influence of boundary-spanning 

activities on legitimacy strategies and their organizational 

design requirements. We suggest that the supportive organizational 

capacities for boundary spanning also help corporations 

to flexibly respond and adjust to legitimacy challenges 

in the most appropriate way and to cope with heterogeneous 

environmental demands. 

The literature differentiates between two types of boundary 

spanning. Some boundary spanning activities serve to “buffer” 

from the external environment; other activities serve to “bridge.” 

This means that some corporations monitor societal expectations 

to better shield the organization from societal expectations 

20 


Agenda 


(buffering), whereas others do so to truly engage with these 

stakeholders (bridge). In the context of managing legitimacy, we 

expect that with respect to both internal and external boundary 

spanning, bridging is preferred to buffering because it enables 

the organization to switch legitimacy strategies seamlessly when 

appropriate, without appearing inconsistent. 

The analysis of both empirical cases shows increased boundaryspanning 

activities, yet major differences exist with regard to 

the type of boundary spanning on the internal and external 

dimension. Company A uses boundary spanning to bridge 

between external organizations and to buffer from internal 

critique; Company B focuses on external buffering, that is, the 

company tends to avoid interactions with external stakeholders, 

while emphasizing internal bridging. We explain these 

differences with the different leadership styles and different 

corporate histories. Company A’s leadership continuously 

pushes the company to adopt a collaborative approach in 

order to advance the company’s sustainability strategy. This 

includes regular exchanges with critical external stakeholders. 

The CEO of Company A argued: “Well, first of all, I think that 

you need to have dialogue in order to understand what the 

critical issues are. If you don’t engage with your critics, you 

will never find out what their point of view is.” 

Managing corporate legitimacy with the Global Compact 

Companies that are exposed to public scrutiny are typically 

aware of the risks associated with losing their corporate legitimacy. 

They develop antennas sensitive to societal expectations 

and engage in boundary-spanning activities to better assess 

the adequateness of their actions. 

Participating in the Global Compact provides ample opportunities 

for boundary spanning. However, to avoid a backlash 

for corporate legitimacy, corporations need to respond to the 

Global Compact’s critics who argue that the initiative allows 

for “blue / green washing.” To benefit from participation in 

the Global Compact, corporations must show full engagement 

with the initiative’s learning platform, contribute to its further 

development, and engage with its stakeholders (bridging). 

Public trust in business is at a low point, and engaging in 

isolated CSR projects or polished PR campaigns as a quick 

fix to appease stakeholders will not suffice to restore it. Establishing 

the organizational prerequisites for managing 

corporate legitimacy, however, provides a basis for juggling 

conflicting stakeholder demands in highly complex business 

environments. 

The CEO’s vision also drives the sustainability agenda. Internally, 

organizational structures and procedures were set up 

to ensure the proper implementation of the leader’s vision. 

These implementation structures, however, are centralized 

and designed to support the top-down strategy. They leave 

little room for critical reflection or decision making by subordinate 

organizational members. The leadership’s vision 

is fully supported, however, because past experiences with 

legitimacy crises have proven that the engagement with 

external stakeholders is most effective for repairing and 

maintaining legitimacy. 

Company B, in contrast, only reluctantly opens up their 

decision-making processes to critical external stakeholders. 

Their sustainability strategy was defined internally by key 

managers and presented to a friendly audience of consultants 

and experts for feedback. The CEO endorses the process but 

does not publicly appear as a leader on sustainability topics. 

When asked why their sustainability strategy does not feature 

more prominently in corporate communications, corporate 

representatives refer to their “humble Swiss business culture.” 

They also point to corporate scandals from the past that still 

haunt the organization. Internally, however, multiple platforms 

provide forums for interdepartmental exchange on how best 

to respond to heterogeneous stakeholder requests. 

In our academic work, we further discuss the theoretical and 

practical implications of these research findings. 

Dr. Dorothée Baumann- 

Pauly earned her doctoral 

degree at the University 

of Zurich and is currently 

working as a consultant 

and project manager for 

AccountAbility. 

Prof. Dr. Andreas Georg 

Scherer is Professor of 

Business Administration 

and Director of the Institute 

of Organization and 

Administrative Science (IOU) 

at the University of Zurich. 


The Strength of Loose 

Couplings – The Global 

Compact as a Multistakeholder 

Initiative 

By Prof. Dr. Andreas Rasche 

Multistakeholder initiatives such as the UN Global Compact 

organize their participants in specific ways. Most importantly, 

they have to bridge global (universal) principles and local 

(contextualized) implementation practices. Some initiatives 

have responded to this need by creating a nested network 

structure – that is, local networks that are embedded into a 

wider global “network of networks.” The UN Global Compact, 

for instance, has more than 100 local networks, which are 

connected through regional hubs, the Annual Local Network 

Forum, and interactions with the Global Compact Office. 

Stakeholder dialogue and collective action are emerging both 

within and among such networks. 

Addressing complex global development problems (e.g., access 

to water) requires systemic change. Such change can only occur 

if initiatives like the UN Global Compact organize their 

participants in ways that sufficient scale can be achieved. Scale 

depends not only on the willingness of individual participants 

to implement sustainable business practices, but also on a 

sound organizational framework enabling collective action 

and connecting participants within and among local networks. 

Such a framework needs to reconcile two competing demands: 

(1) the ability to locally adapt universal principles within local 

networks (i.e., flexibility) and (2) the ability to constantly 

coordinate activities across local networks (i.e., stability). 

Tight and loose couplings in multistakeholder initiatives 

To analyze how multistakeholder initiatives reconcile flexibility 

and stability, we have to look at the strength of couplings 

between participating organizations. In principle, participants 

can be coupled tightly or loosely. Research shows that four 

factors influence whether couplings between participants 

are tight or loose. 

• Loose couplings exist if there is a low frequency of interaction 

between participants. If participants interact on an irregular 

basis, and hence affect each other occasionally rather than 

constantly, a loose coupling is likely to be found. 

• Loose couplings can also be caused by indirect relationships 

between participants. For instance, if two organizations do 

not communicate directly, but only via a third party, their 

relationship becomes loosely, rather than tightly, coupled. 

• Loose couplings occur when a high degree of causal indeterminacy 

exists. High causal indeterminacy means that 

participants disagree about how their environment functions 

or should function. As a consequence, the coordination of 

activities becomes difficult, which, in turn, causes looser 

couplings. 

• Loose couplings are also caused by the existence of nonimmediate 

effects. Non-immediate effects create a lag between 

a stimulus by one participant (e.g., an attempt to 

communicate) and the response by another participant. 

Many would see the existence of loose couplings as a problem, 

mostly because it makes multistakeholder initiatives harder 

to govern (at least when viewed from a distance). Research, 

however, has shown that looser couplings strengthen the 

ability of initiatives such as the UN Global Compact to create 

systemic change. In fact, it is the coexistence of loose and 

22 


Agenda 


tight couplings between participants that balances the need 

to adapt universal principles to local contexts and the need 

to coordinate activities across local contexts. 

This raises a critical question: How can tight and loose couplings 

coexist within multistakeholder initiatives? While it is 

plausible that either tight or loose couplings exist in a given 

system, their coexistence requires further explanation. The 

nested network structure of multistakeholder initiatives (see 

above) plays an important role in this context. This nested 

network structure allows for the interplay of tight and loose 

couplings. While tighter couplings prevail between participants 

within local networks, looser couplings exist among 

participants from different local networks. 

We can illustrate this by discussing how the four factors that 

influence the strength of couplings impact the organization of 

participants in multistakeholder initiatives. As local networks 

engage participants in collective action and partnerships, the 

frequency of interaction among participants is relatively high 

(causing tighter couplings). Local networks also allow different 

stakeholder groups to interact directly (causing tighter 

couplings), while interactions among different local networks 

usually depend on advocates (causing looser couplings). Participants 

from a single local network are also more likely to agree 

on how their environment functions (e.g., because they share 

a common set of values). This enables a better coordination 

of actions and, hence, tighter couplings. Finally, interactions 

within local networks often produce more immediate results 

(causing tighter couplings) because participating organizations 

work on both design and implementation of the underlying 

activities. 

Reconciling flexibility and stability 

The coexistence of tight couplings (within local networks) 

and loose couplings (among local networks) creates three 

important effects for initiatives like the UN Global Compact. 

First, since local networks are only loosely coupled to other 

networks, it is possible to seal off problems in single networks 

without creating negative spillover effects to other parts of 

the overall initiative. In other words, the coexistence of tight 

and loose couplings safeguards the stability of multistakeholder 

initiatives. The resulting stability is a precondition 

for balancing the quantity of participants and the quality of 

their engagement – a key priority of the UN Global Compact. 

Participant growth requires an organizational environment 

that allows for local participant clusters to expand and connect 

their activities while, at the same time, retaining a high 

degree of autonomy. 


Second, the interplay of tight and loose couplings allows for a 

more effective management of the link between global principles 

and local practices. Looser couplings among networks 

provide participants on the ground with implementation authority 

and enable them to adapt universal principles to local 

needs. Such localized adaptations help to stimulate systemic 

change, as global problems are translated into local solutions, 

and solutions themselves can be connected across countries 

and regions. This creates participant ownership and allows 

for managing a global portfolio of issues in a localized way. 

Finally, the coexistence of loose and tight couplings also impacts 

the way multistakeholder initiatives legitimize themselves in 

local environments. Legitimacy is achieved when such initiatives 

are framed as appropriate and desirable within a given 

system of norms and values. Loose couplings provide local 

networks with the necessary autonomy to have decentralized 

stakeholder dialogues that help to explore what norms and 

values are relevant in “their” local context. Once local networks 

have understood what counts as appropriate behavior in their 

respective environment, they can develop activities that are 

perceived as necessary and legitimate by relevant stakeholders 

(e.g., producing guidance on water sustainability in regions 

where this is a particular concern). 

The coexistence of looser and tighter couplings in initiatives 

like the UN Global Compact is important for initiating collective 

action in times of rising environmental complexity. On 

the one hand, loose couplings preserve diversity in responding 

to environmental stimuli (as more options can be potentially 

activated). On the other hand, tight couplings ensure that this 

diversity results in impactful collective action on the ground. 

Despite conventional wisdom that tighter couplings create 

better and more durable governance arrangements (because 

outcomes are supposedly easier to control), the arguments 

presented here show that it is necessary to appreciate “the 

strength of loose couplings.” 

Dr. Andreas Rasche is Professor of 

Business in Society at Copenhagen 

Business School and serves on the 

GC LEAD Steering Committee. 

The ideas expressed in this text are 

adopted from: A. Rasche, (2012): 

Global Policies and Local Practice: 

Loose and Tight Couplings in Multi- 

Stakeholder Initiatives. - Business Ethics 

Quarterly 22(4): 679-708. 

24 


Agenda 


Responsible Lobbying 

Lobbyists paying elected representatives to place questions in the UK parliament. 

Arms manufacturers giving South African officials BMWs in exchange for armaments 

contracts. Smoke-filled back rooms featuring stuffed brown envelopes. No wonder 

lobbying has a bad name. But these are not images of lobbying: They depict corruption, 

albeit in a policymaking setting. These actions are morally suspect and usually illegal. 

They also contravene the UN Global Compact: Principle 10 requires the combating of 

corruption. In fact, lobbying is far more often about committee meetings, reports, and 

other unspectacular activities. Lobbying can be understood as the focused provision 

of relevant information, with the intention of influencing public policy or process. 

Corporate lobbying is not just important for companies; it helps create better public 

policies, and can therefore have real societal value, despite its bad press. 

By Dr. Stephanos Anastasiadis and Dr. Sigrun M. Wagner 

Even so, there is much scope for criticizing corporate lobbying. 

In our research, we have found that the lobbied (usually 

civil servants and elected representatives) often perceive 

companies to exaggerate, bully, and even lie outright. In their 

2005 report, Towards Responsible Lobbying, the UNGC and 

AccountAbility argue that lobbying needs to be reformed, and 

set out proposals for responsible lobbying practices. Simon 

Zadek, then AccountAbility CEO, rightly said: “Lobbying [was] 

one of the few business practices to have escaped close scrutiny 

in recent years.” David Vogel later wrote about responsible 

lobbying (in the HBR List 2008), arguing that companies 

should lobby for more sustainable policies. The 2005 report 

acknowledged that demands for complete transparency are 

both unrealistic and may in fact be counterproductive. It 

acknowledged that more rules – such as compulsory registration 

– do not prevent unethical lobbying. And it also 

called for UNGC participants – more than 2,200 companies 

and NGOs at the time – to bring lobbying practices in line 

with the Ten Principles of the UNGC. 

Nearly a decade later, not much has changed. The world has 

moved on in other ways, though. Recent scandals and crises 

have shone a light on corporate actions. At the time of writing, 

the horsemeat scandal in Europe and a factory collapse 

in Bangladesh were leading to a greater focus on supply 

chains. Corporate tax has become a hot topic. We have heard 

repeated calls for government intervention. Before the crisis, 

governments had been in retreat. As Colin Crouch argued 

in 2011, this is a long-term trend. In the short-term, though, 

the significance of governmental policies and regulations has 

become clearer. This has thrown lobbying into sharper relief: 

Societal skepticism of lobbying has become more pronounced, 

as “dodgy” lobbying practices are seldom out of the news. At 

least one socially responsible investment label has recently 

started taking lobbying into account in their company ratings. 

Interestingly, the UNGC implicitly promotes responsible lobbying. 

Principle 6, for example, is about promoting elimination 

of workplace discrimination. A company that takes its 


UNGC commitment seriously arguably has an obligation to 

promote public policies to this effect, particularly where it is 

present in or entering a country with weak institutions and 

rule of law. It is also in companies’ interests to do so. Consider 

the following caricature, based on Principle 4 (eliminating 

all forms of forced and compulsory labor): If you are going 

beyond local regulations and paying your own staff decently, 

but your competitor is using slave labor, then you are at a 

disadvantage, mutatis mutandis. If you accept the “fallacy of 

restricted alternatives” and race for the well-publicized bottom 

by employing your own slave labor, then your company 

will suffer reputational damage when (not if) your behavior 

is reported in your home market. Instead, you can promote 

stricter standards and monitoring – policies that create a 

level playing field at an acceptable level. If raising your rivals’ 

costs gives you a competitive advantage in the process, then 

so much the better. 

If it is this simple, then why does it not happen all the time? 

Indeed, why does lobbying have such a bad reputation at all? 

And why are we not seeing improvements over time, in line 

with CSR developments in other areas? 

There is emerging evidence that the problem is at least partly 

one of perception. In her recent study of corporate environmental 

lobbying in Europe, Sigrun Wagner found that while 

companies see environmental protection as important, specific 

regulations present costs and/or opportunities: The emphasis 

has been on regulations’ cost-effectiveness. Where companies 

see environmental regulations only in terms of costs (which is 

often), they tend to lobby defensively, that is, to block policy 

proposals. In a similar study, Stephanos Anastasiadis found 

that the way companies understand the nature of the political 

process – and their role within it – is critical for the nature 

of their engagement. Most companies took an instrumental 

approach to lobbying – analogous to seeing policies only in 

cost terms. A minority took a cooperative approach. These 

are very different perspectives. For example, companies 

taking an instrumental approach tend to understand their 

own engagement in terms of acting to prevent government 

interference, which they see as unnecessary and intrusive. The 

more cooperative companies, by contrast, tend to value the 

legislative process as generating freedom to innovate within 

limits that apply to all. Both studies point to a sense that the 

“simple facts” are less important for responsible lobbying than 

the manner in which companies make sense of what is going 

on. This suggests that problems in lobbying will continue 

until companies address the underlying phenomenon. This 

really matters, because in a world of social media, ubiquitous 

internet access, and whistle-blowers, companies have more 

to lose than ever. In 2005, the UNGC noted a significant gap 

between “everyday CSR” policies and activities on the one hand, 

26 


Agenda 


“ ” 

Lobbying needs to become a critical 

component of a CSR strategy. 

and lobbying practices on the other. The only thing that 

seems to have changed in this respect is that the lobbying of 

individual companies is now more visible. The flow of media 

reports on lobbying suggests that many companies have not 

internalized the danger. 

In a seminal paper, Mark Suchman wrote about gaining, 

maintaining, and repairing legitimacy. There are three kinds, 

he argued. Pragmatic legitimacy is based on the audience’s 

(stakeholder’s) self-interest. Cognitive legitimacy rests on 

comprehensibility and taken-for grantedness. Finally, moral 

legitimacy is based on normative approval. All legitimacy 

management depends heavily on communication between 

the organization and its stakeholders. In essence, then, if a 

business wants to be sustainable, in the narrow sense of continuing 

to survive, then it needs to remain legitimate, thus 

maintaining its social license to operate. This is at the heart 

of stakeholder management. More recently, Guido Palazzo 

and Andreas Scherer have argued that moral legitimacy is 

increasingly important as other bases for legitimacy decline. 

Their argument explains the ever-greater societal and media 

pressure on companies to act responsibly. Indeed, the success 

of the Global Compact itself is hard to explain without 

a rise in the significance of moral legitimacy. It is therefore 

remarkable that corporate lobbying seldom appears to enjoy 

normative approval. 

This is not an engineering problem, and it cannot be solved 

simply by introducing codes of conduct or implementing 

greater transparency. The stories we tell ourselves to make 

sense of our environment have real-world consequences: They 

directly affect not only what we see and feel, but also how we 

act. In short, if we want to have responsible lobbying, then 

we need to change the story. Engaging with stakeholders and 

sharing good-practice examples is a positive way to start, as is 

ensuring that company lobbyists are fully integrated into the 

rest of the company. Real change will take time and require 

intensive engagement. This is hard, but the rewards for both 

business and society could be substantial. 

David Vogel wrote: “Lobbying needs to become a critical 

component of a CSR strategy. It is not enough for companies 

to engage in sophisticated private initiatives, however strategic. 

They must also be willing to support public policies that 

make it easier for them and other firms to do the right thing.” 

John Elkington has recently made a very similar argument. 

We agree that this is needed. But it will not be enough for 

companies to simply decide to change. Mistrust of politics and 

politicians is deeply rooted in the culture of many companies. 

The practices resulting from that mistrust mean that policymakers 

have come to expect companies to lobby unethically, 

adjusting their expectations accordingly. So in addition to 

changing themselves, firms will need to work to change the 

expectations of their policymaking partners. If the root of the 

problem is cultural, then the treatment must also be cultural. 

Dr. Stephanos Anastasiadis 

is a Lecturer in Sustainability 

at Royal Holloway University 

of London, where 

he teaches business ethics 

and sustainability. He is 

an independent advisor 

to Forum Ethibel, which 

maintains socially responsible 

investment labels, and 

has previously worked as a 

lobbyist. 

Dr. Sigrun M. Wagner is a 

Lecturer in International 

Business and Sustainability 

in the School of Management 

at Royal Holloway, 

University of London, 

having gained her PhD at 

Loughborough University 

Business School on lobbying 

of multinational enterprises 

in the automotive 

industry. 


Which Form of Dialogue Is 

Suitable for Which Purpose? 

A broad distinction can be made between stakeholder dialogues that are geared toward 

consultation and those that focus more strongly on cooperation during implementation. 

In consultative stakeholder dialogues, actors contribute their expertise, viewpoints, and 

experience. Initiators of the stakeholder dialogue are usually responsible for the further use 

of recommendations and lessons learned. Consultative and cooperative forms of stakeholder 

dialogues subsume the following variants: 

Stakeholder dialogues as consultations 

One-off stakeholder consultation for 

the purpose of exchange 

Systematic, repeated stakeholder consultation 

to integrate recommendations 

Substantive function: 

• Political input 

• To obtain feedback 

• Research / planning input 

• Exchange of experiences 

holder groups to plan a 

project, perform research 

for a study, etc.; 

• the interests and awareness 

of different actors 

are to be raised for a 

specific theme; 


• Strategy development / 

assessment 

• Assessment of planning 

• Obtaining regular 

feedback 

various stakeholder 

groups within an 

established period with 

regard to the planning of 

a project or research; 

• stakeholder input is to be 

integrated into planning, 

etc.; 

Recommended when: 

• Input or feedback is to be 

obtained just once from 

a specific stakeholder 

group or various stake- 

• no further, in-depth 

cooperation is envisaged 

at present beyond this 

consultation. 


• contributions or feedback 

are to be repeatedly 

obtained from a specific 

stakeholder group or 

• stakeholders are to be 

given an opportunity 

through repeated 

consultation to assess 

planning progress and 

give new feedback. 

Institutionalized stakeholder consultation 


• Institutionalized strategy / planning assessment 

• Involvement of people concerned to judge consequences, 

for instance 

• Representation of stakeholders according to established 

regulations 


• political projects, etc., are to be (further) developed and the 

inputs of various stakeholders are to be regularly obtained 

for this purpose within a firmly organized framework; 

• the implementation of plans for public-sector projects 

(possibly also for private projects) has consequences for 

public goods. 

28 


Agenda 


Multistakeholder platform (exchange) 


• Visibility of platform to outside world 

• Stakeholders represent larger organizations 

• Frequently driven by political or economic 

developments 


• the possibility of permanent exchange with other 

stakeholders is sought on a specific theme; 

• in this context, recommendations and comments on 

current developments are to be made; 

• joint implementation of projects is not aimed at for the 

time being. 

Stakeholder dialogues as cooperation arrangements 

Multistakeholder initiative 


• Joint responsibility for: 

- implementation steering - change 

- monitoring and evaluation - results 

- decision making 

• Usually has an agreed steering structure (steering 

committee, executive committee) 


• a new approach, standard, or policy is to be jointly 

developed and implemented; 

• for this purpose, action is to be taken for a temporary 

period by a specially established stakeholder group; 

• the required personnel and organizational structures can 

and should be established; 

• responsibility for implementation is to be shared. 

Multistakeholder platform (implementation management) 


• Coordination and joint 

implementation of tasks in the 

public interest 


• specific tasks related to improved 

service delivery, for instance, are 

to be tackled together in the long 

term, beyond the joint making 

of recommendations; 

• cooperation is to be established in 

the long term between different 

stakeholders. 

Stakeholder Partnership 


• Joint 

- implementation planning 

- performance of activities 

- monitoring of results 

- responsibility for success 

- decision making 

• management structures are grouped in one location 


• jointly determined project-related goals are to be 

achieved with shared responsibility; 

• a temporary cooperation arrangement between the 

stakeholders involved in conducting a project with 

established responsibilities is to be formalized; 

• the personnel and organizational structures required to 

achieve this purpose are to be set up; 

• joint monitoring and evaluation of results is envisaged. 

Source: Stakeholder Dialogues Manual, published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) 2012 


Climate Change 

Climate change is the biggest threat mankind has ever faced. 

It is caused by the build-up of greenhouse gases from burning 

fossil fuels and the destruction of carbon storage areas such 

as the rainforests, which in turn leads to global warming. 

Limiting global warming to 2 degrees Celsius, as called for by 

the UN Framework Convention on Climate Change, is crucial. 

A low-carbon economy is the key to significantly reduce the 

output of greenhouse gases. This chapter explains the steps 

necessary to move toward a decarbonized economy. 

30 


Agenda 




Innovating 

for a Better 

Future 

Our globalized world and its interconnected challenges require 

businesses to think and act in new dimensions. We 

must ask ourselves: Is our economic success enabling social 

progress? Are we considering the environmental impact of 

our operations? Are we making decisions in the long-term interests 

of our stakeholders? 

Dr. Frank Appel, CEO, 


At Deutsche Post DHL, these considerations have shaped Strategy 

2015 – our corporate roadmap to becoming an employer, provider, 

and investment of choice. We recognize that we will only reach these 

aims by embracing the multifaceted role we play in society as one 

of the world’s largest employers and the global leader in postal and 

logistics services. 

Connecting people and markets across the globe is a business that, 

in its current form, has an environmental impact. This is primarily 

32 


Agenda 



due to the logistics sector’s dependency on fossil fuels, which generate 

CO 2 

emissions when combusted. In 2012, Deutsche Post DHL’s 

operations were responsible for 28 million tons of CO 2 

, of which 

80 percent were so-called Scope 3 emissions from subcontracted 

transportation. Working closely with our subcontractors to tackle 

global warming and climate change is therefore at the forefront of 

our efforts to bring about an environmentally responsible future. 

Our industry-leading GoGreen environmental protection program 

focuses on innovative responses to minimizing CO 2 

emissions from 

the hundreds of transportation subcontractors around the world that 

we work with, as well as improving the carbon efficiency of our own 

operations. Five years ago, we became the first logistics company in 

the world to set a measureable climate protection target. By 2020, 

the Group aims to improve the CO 2 

efficiency of its own operations, 

together with those of its transportation subcontractors, by 30 percent 

compared with the 2007 baseline. We are already halfway to 

meeting this target. 

Tackling the causes of global warming requires a global, multistakeholder 

effort if we are to achieve lasting positive change. Individual 

companies can – and do – make a big contribution. But when 

business, governments, NGOs, and academia work together, we can 

find innovative solutions much more quickly. This is how Bonn, for 

example, became the first city in Germany with a carbon-free vehicle 

concept for mail and parcel delivery. 

Deutsche Post DHL, with its customers, suppliers, and employees, 

is committed to forging new pathways to a carbonefficient 

economy. As we innovate for a better future, both 

our business and society benefit. 


The Case for a 

Clean Revolution 

By Mark Kenber 

By 2050, our planet will be home to 9 billion people. The 

world’s middle class will reach 4 billion; by 2020, 50 percent 

of China’s population will be middle class. The world has 

also become increasingly urban: In 1800, only 2 percent of 

the world’s population was urban. Today, half of the world’s 

people are living in towns and cities, with 180,000 people 

added to the urban population each day. 

34 


Agenda 


Pressure on infrastructure and natural resources is already 

immense, and growing: Demand for water will increase by 

40 percent from 2010 to 2030. Demand for energy will increase 

by 22.5 percent from 2010 to 2025. Demand for food 

will increase by 50 percent between 2010 and 2030. At the 

same time, if we are to preserve our natural resources and 

standards of living, greenhouse gas emissions must be reduced 

by 80 percent by mid-century. This presents a challenge for 

our government and business leaders; they must meet these 

social and environmental challenges while ensuring economic 

stability as well as expanding prosperity. 

The Clean Revolution is not just a vision of an ideal future. 

It is happening now, in cities, regions, states, and countries 

around the world as well in companies of all sizes. The Clean 

Revolution is already creating millions of new jobs: In the 

United States, a report by the Bureau of Labor Statistics found 

that there were about 3.4 million green energy jobs in 2011: an 

increase of 4.9 percent from the previous year. When compared 

with the data for alternative areas of the economy, this figure 

is impressive; all other jobs increased by only 1.2 percent. This 

is supported by 2012 data from The Solar Foundation, which 

reported that California has more solar workers than actors; 

Cities are key contributors to climate change, as activities there 

are the main source of greenhouse gas emissions. If efforts to 

address climate change are to be successful, they must integrate 

urban requirements and environmental management capacities. 

This is not an insurmountable task but it will take a new, 

bold, daring vision for how we do business, heat our homes, 

build infrastructure, and structure our economies. This is the 

vision of a low-carbon, high-opportunity Clean Revolution: 

a swift, massive scale-up of clean energy and infrastructure, 

and of smart technologies and design. This will improve the 

efficiency and use of our natural resources while creating jobs 

and boosting economic growth. 

more Texans work in solar than ranching; and the US solar 

industry has more workers than the coal mining industry. 

The outlook for the renewable energy sector looks bright – 

investment in clean-energy capacity is expected to triple between 

now and 2030, according to analysts from Bloomberg 

New Energy Finance. Research by Google in 2011 found that 

breakthroughs in clean-tech innovation could generate an 

extra $ 155 - 244 billion in GDP per year in the United States 

from 2030 if the right investments are made now. 

It is not only the United States that is reaping the benefits of 

the Clean Revolution – the Indian Prime Minister, Manmohan 

Singh, has announced plans to double India’s renewable-energy 

capacity by 2017 and introduce clean-energy subsidies. South 

Korea’s business community invested $ 12.7 billion between 

2008 and 2010 as part of the nation’s green-growth program, 


establishing Korean companies as major exporters of clean 

technology. Meanwhile, Scotland is building its economy 

on the back of its extraordinary renewable-energy resources 

base, producing 35 percent of its electricity from wind and 

water resources already, and planning for 100 percent of its 

electricity generation to come from renewable sources by 2020. 

In the United Kingdom, the Office for Budget Responsibility 

has predicted that the overall economy will grow by just 0.6 

percent in 2013, whereas the green economy is growing at a 

much higher rate of 5 percent a year. 

It is not just policymakers and businessmen and women who 

have noticed the potential of the low-carbon economy. The 

demand for skilled clean-energy workers is increasing, and as 

a result, these specialized workers are being rewarded with 

higher-than-average salaries. In its 2011 US survey, The Brookings 

Institute found the median wage in the clean economy to 

be 13 percent higher than in the national economy as a whole. 

As a result, the younger generation is realizing the employment 

potential that the Clean Revolution offers them. In the United 

Kingdom, a recent survey of young people (age 19 - 25) found 

that 59 percent are interested in working in the green economy. 

A global Clean Revolution depends on bold leadership from 

businesses, governments, and innovators. Leadership is crucial 

because, within most systems, approximately 80 percent of the 

effects can be attributed to 20 percent of the causes. We believe 

this principle holds equally for sources of global emissions 

and emission-reduction solutions: 80 percent of emissions are 

caused by 20 percent of the global population. But 20 percent 

of global leaders can deliver 80 percent of the solution. 

The Climate Group acts as a catalyst for creating this global 

coalition of low-carbon leaders: At Climate Week NYC 2012, 

an eclectic and surprising mix of global leaders and innovators 

joined our call for an American Clean Revolution. Former UK 

Prime Minster Rt. Hon. Tony Blair said: “Combating climate 

change is massively in our best interest if we want higher 

energy supply security, lower costs, and a better life. As global 

citizens we are going to continue to be agitating for a solution 

to this problem which is absolutely critical to the future of 

human progress.” Also speaking at Climate Week NYC, Evan 

Williams, co-founder of Twitter, acknowledged the crucial 

role that innovative technologies will play in the low-carbon 

economy: “America’s long history of prosperity was built by 

entrepreneurial innovators in science and technology. These 

visionaries imagined and then created a new and better way 

of doing things, which was the catalyst for a century of prosperity. 

We need powerful new thinking in that same vein in 

order to challenge and transcend the limits of our high-carbon 

economy with clean energy innovation.” 

There are leaders around the world who have envisioned a 

Clean Revolution future and are acting decisively to make their 

vision a reality. Low-carbon technologies are being scaled-up 

in factories and cities to reduce emissions, improve living 

standards, and unlock economic potential. This leadership 

is evident in the scale-up of electric vehicles (EVs), which are 

at the tipping point of becoming mainstream in both commercial 

and consumer markets. A 2012 market analysis from 

the global management consultancy McKinsey & Company 

reasoned that EVs would become cost-competitive with conventional 

vehicles as the price of a lithium-ion battery pack 

falls from its current level of $ 500 - $ 600 per kilowatt hour 

(kWh) to $ 200 per kWh. McKinsey & Company believes that 

the decline in battery prices could occur as early as 2020 as 

a result of manufacturing at scale, lower component prices, 

and advances in battery technology. 

Early adopters of commercial EVs are investing now in order 

to reap the benefits of the technology. In November 2010, GE 

committed to purchasing 25,000 electric vehicles to jumpstart 

the electric vehicle market in the United States while the 

Department of Defense (DOD) announced that it is planning 

to invest $20 million to incorporate up to 500 vehicles-to-gridcapable 

electric trucks, buses, and related infrastructure into its 

non-tactical fleet in 2013. The DOD estimates that the money 

saved through such a system will cover the upfront investment 

in 10 years, while providing valuable insights into the value 

of the vehicles’ energy-storage potential. If the project goes as 

planned, the next step will be to expand to as many as 1,500 

vehicles at 30 installations nationwide. 

Increasing numbers of consumers are turning to EVs for assistance 

with household savings. In 2011, the US gas price in 

California reached a record high $ 4.67 per gallon, catalyzing 

36 


Agenda 


lease the panels or buy the produced power at a fixed rate. 

SunRun alone has been installing $ 1 million worth in solar 

panels every day since January 2011. 

an increase in sales of the Toyota Prius hybrids. It became the 

bestselling passenger vehicle in the state, selling 60,688 in 

2012: a remarkable 78 percent increase over 2011 sales. There 

is a similar pattern with models from other EV manufacturers 

– there was a phenomenal 286 percent increase in sales 

of Nissan’s Leaf EV car in the United States in March 2012 

when compared to the same period the year prior. 

In many countries, the global $100 billion solar-photovoltaic 

(PV) sector has reached a tipping point and, as a result of 

government subsidies and corporate investment, PVs are 

becoming competitive with fossil fuels. Many countries, 

including Germany, Denmark, Italy, Spain, and parts of 

Australia, which have higher electricity prices, have already 

reached grid parity – Japan, France, Brazil, and Turkey are 

expected to reach parity by 2015, and the MENA region is 

close to grid parity. In the United States, solar PV technology 

is expected to reach grid parity for some PV projects in 

2014. Most regions will reach grid parity by 2017 and China 

could reach solar power grid parity in most of its regions as 

early as 2015 - 2016. 

In just six years, installed solar-PV capacity across the globe 

has increased 1,200 percent, from 5.4 gigawatts (GW) in 2005 

to more than 65 GW in 2011. In Australia alone, there are 

1 million households with solar PV systems now installed – in 

2008 there were just 20,000. With current growth rates, solar 

energy could be providing 10 percent of the total global power 

generation by the end of the decade. In the United States, 

SolarCity, SunRun, and Sungevity have made solar panels affordable 

for California’s residents with their unique business 

model – they let customers install solar facilities and either 

LED (light-emitting diodes) street lighting is another example 

of a low-carbon technology that can help state and municipal 

governments to reduce carbon emissions, improve public infrastructure, 

and lower economic expenditures. At the Rio+20 UN 

Global Compact Corporate Sustainability Forum in June 2012, 

The Climate Group published Lighting the Clean Revolution: 

The Rise of LED Street Lighting and What It Means for Cities, 

which presents the findings of an independent, two-and-ahalf-year 

global pilot of LED lamps in 15 separate trials across 

12 cities, including New York, London, Kolkata, and Sydney. 

The conclusion of the trials found that LED street lighting can 

generate energy savings as high as 85 percent – a valuable 

savings for public administrations in the current economic 

environment. As a consequence of these high energy savings, 

670 million tons of greenhouse gas emissions are saved every 

year. As well as the economic and environmental benefits, 

the report also analyzed the social benefits attributed to LED 

street lighting. Surveys in Kolkata, London, Sydney, and Toronto 

indicated that citizens preferred LED lighting, with 68 

percent to 90 percent of respondents endorsing the city-wide 

rollout of the technology. As a result of the pilot’s findings, 

The Climate Group and Philips, the report’s co-author, are 

calling for a new international low-carbon lighting standard 

that will see all new public lighting – both street lighting 

and public building lighting – use LED as of 2015, with the 

aim of all public lighting being LED by 2020. 

It is clear that we are making progress with the scale-up of 

established clean technologies and emerging clean-tech innovations. 

But the scale-up of these technologies must be 

accelerated and it must happen now. The Clean Revolution 

offers us the opportunity to change the economic and social 

future of our societies. We cannot, and must not, allow ourselves 

to miss this crucial tipping point in our development. 

The Clean Revolution is a positive, inspiring, and achievable 

vision of tomorrow that answers the economic and political 

imperatives of today. It is indeed the only feasible path to a 

smarter, better, more prosperous future. For all. 

Mark Kenber is CEO of 

The Climate Group. 


THE CARBON ATLAS 

Canada 

514 

Netherlands 

170 

Germany 

734 

Poland 

299 

United States 

5,300 

United 

Kingdom 

475 

Spain 

288 

Belgium 

104 

France 

363 

Italy 

401 

Czech 

Republic 

108 

North America 

5,814 bn 

tonnes of CO 2 

Mexico 

446 

Middle East & 

North Africa 

2,196 bn 


Venezuela 

185 

Algeria 

121 

Egypt 

216 

Latin America 

& Caribbean 

1,624 bn 


Brazil 

367 

Argentina 

175 

Sub-Saharan 

Africa 

729 bn 


South Africa 

499 

38 


Agenda 


World 

32,042 bn 


Turkey 

278 

Iraq 

109 

Ukraine 

272 

Europe & 

Central Asia 

6,428 bn 


Iran 

602 

Russia 

1,574 

Kazakhstan 

226 

Uzbekistan 

117 

China 

7,687 

Japan 

1,101 

South Korea 

509 

Saudi Arabia 

433 

United Arab 

Emirates 

157 

Pakistan 

161 

India 

1,979 

South Asia 

2,215 bn 


Thailand 

272 

Vietnam 

142 

Malaysia 

198 

Indonesia 

452 

East Asia 

& Pacific 

11,304 bn 


Australia 

400 

Source: Worldbank, Data status 2009 


Positions 

The world 

is awaiting 

innovation 

Anthropogenic greenhouse gas emissions are breaking new records every year. At present, 

we are on a track that will lead us to global warming of 4 degrees Celsius by the end of the 

century. The consequences are fatal, and it is mainly the poor of this world who will have 

to pay for it. Professor Dr. Hans Joachim Schellnhuber, member of the IPCC and Director 

of the Potsdam Institute for Climate Impact Research (PIK), warns: “If the world is to avoid 

dangerous climate change, the discussion in Rio needs to go beyond the very broad topic of 

sustainability and the very narrow concept of ‘green growth.’ ” The following is an exposition 

of his standpoint. 

By Prof. Dr. Hans Joachim Schellnhuber 

The Great Transformation toward a post-fossil fuel economy is 

certainly a business opportunity – but it is much more than 

that: It is a matter of ethics. 

This does not contradict at all the fact that cutting our greenhouse 

gas emissions would be a downright rational choice that 

is based on sound science, as it is clear that unabated climate 

40 


Agenda 


change potentially could incur great costs. Crop yields would 

be put at risk by changing precipitation patterns and sea levels 

would rise slowly but inevitably. In combination with increasing 

extreme weather events, this threatens global hubs over 

the long term such as New York, Shanghai, and Mumbai, to 

name just three examples. 

Yet there is also that other consideration, one that neither 

I as a scientist nor any business leader can neglect, because 

we are citizens of this one world after all. We feel we have a 

responsibility to act for those who lack the means to do this – 

namely, our distant neighbors living in developing countries 

and our children’s children who have yet to be born. 

It is a tragedy of historic dimensions that climate change impacts 

are likely to be most severe in those countries – and for those 

populations – that contributed least to global greenhouse 

gas emissions. Most developing countries are situated in the 

regions where, for example, the monsoon regime might show 

a significantly increased variability, where storm surges might 

intensify, and where rising sea levels – which are not distributed 

equally across the globe – will be the greatest. Moreover, 

it is in these countries that many farmers cannot afford even 

for just one season of crops to fail, as they have no reserves to 

fall back on. And many governments in these countries do not 

have the resources for adaptation measures such as building 

dams. It is this combination of factors that, as the World Bank’s 

President, Jim Yong Kim, put it, “should shock us into action.” 

Now climate change poses a triple problem of distance. First, 

of temporal distance: Most impacts of global warming will start 

to really be felt in the second half of this century, not now. But 

it is right now that one has to act if those future effects are to 

be avoided. The second problem of distance is geographical. 

Pakistan, which is vulnerable to climate change for many 

reasons, is a distant place to care about. But as globalization 

makes our world smaller, climate change impacts that disturb 

the economic and political stability of Pakistan – which is a 

neighbor of Afghanistan and India – quite obviously could 

affect our livelihoods as well. 

The third problem of distance could be called a cognitive one. 

Though the basic facts – such as that CO 2 

emissions lead 

to global warming – are clear, admittedly the findings of 

cutting-edge climate science often are difficult for non-experts 

to access and comprehend. The analyses deal with nonlinear 

processes in complex systems. They are often based on intricate 

computer simulations and come with uncertainties about, for 

example, the exact magnitude of climate impacts and their 

distribution in space and time. But this can be boiled down 

to a risk-management approach. Risk is defined as probability 

multiplied by the potential damage. So even if the probability 

is small, the potentially huge damage that climate change 

implies makes it a very significant risk. 

Confronted with risk, and the need to fundamentally change 

the way we do business, denial is a popular reaction. However, 

to be a corporate citizen also implies the necessity to contribute 

to the public debate on climate change. That debate 

knows four stages of denial: (1) There is no climate change; 

(2) it exists, but it is not man-made; (3) it might be caused by 

our greenhouse gas emissions, but the impacts are not dangerous; 

(4) the impacts might be dangerous, but we cannot 

do anything about them because it is too late, too difficult, 

or because states and companies will not act. On a different 

level, procrastinating and pretending that the matter is not 

really urgent can be a form of denial as well. It is that fourth 

stage of denial that is the most perfidious. 

Unfortunately, the same could be said about attempts to 

hide the issue of climate change behind a cloud of further 

considerations regarding the sustainability issue. Broadening 

an issue can be a way of avoiding the challenge of actually 

tackling it. Climate change is a crucial factor, in many cases 

triggering other elements of a sustainability vision. Cutting 

CO 2 

is a prerequisite for achieving progress with other sustainability 

issues. Therefore, corporate responsibility in the age 

of climate change is not about putting recycled paper in the 

printer, or sponsoring some game reserve in Kenya. These 

might be good things to do, but what companies really need 

to do is to consider transforming their core business, as this 

has the biggest impact on their greenhouse gas emissions. 

For those who dare to do this, promising paths lie ahead. The 

world is awaiting innovation that will change our industrial 

metabolism. In order to develop smart power grids and new 

technologies for energy storage, remove CO 2 

from the atmosphere 

through intelligent use of biomass, use urban mining to 

recycle materials, find more efficient ways to achieve seawater 

desalination, and design new ways of urban planning and building, 

nothing less than a third industrial revolution is needed. 

Again, this is certainly about green growth, but it is also about 

responsibility toward society as a whole. The choice about 

whether to be a laggard or a pioneer in this approaching industrial 

revolution might be the most important part of that 

thing we call corporate responsibility. 

Prof. Dr. Dr. h.c. Hans Joachim 

Schellnhuber has been Director of the 

Potsdam Institute for Climate Impact 

Research (PIK) since he founded the 

institute in 1992. Furthermore, he is 

Chair of the German Advisory Council 

on Global Change (WBGU). 


Positions 

What Business 

Has to Gain from 

Engaging in 

International 

Climate Policy 

42 


Agenda 


By Julie-Anne Richards 

Society, including business, works best when we jointly accept a challenge. One only needs 

to think of the huge strides that governments and businesses – supported by the public – 

made once nations had set themselves the task of landing a man on the moon. At the 

beginning of the “space race,” it was not even clear that this technological challenge could 

be met. Preventing catastrophic climate change will require a similar approach. Only when 

every facet of society – including government and business – sets the collective goal of 

ensuring our children inherit a safe planet will there be nothing to stop us. 

What could trigger such a drive? Climate impacts are already 

affecting just about every country on the planet, and the costs 

of dealing with the havoc they create are rising. For example, 

the United States spent $ 136 billion in two years on natural 

disaster relief – a spike resulting from weather impacted by 

climate change – yet action continues to fall far behind what 

is needed. To deliver a safe climate, we need to keep warming 

below 1.5 degrees Celsius and global emissions must peak by 

2015 and decline every year after that until they fall 80 percent 

below that level by 2050. While pockets of extremely enthusiastic 

climate activists are pushing for society to embrace this 

goal and youth are struggling to have their concerns about their 

future on this planet heard, business leaders – whose voices 

are influential – remain largely silent. Businesses signing up 

to such a goal – individually and collectively through the UN 

Global Compact – and that are encouraging governments to 

do the same will make a huge difference in the momentum 

toward a safe climate. 

Establishing strong domestic emission-reduction targets and 

putting in place policies to meet global goals are the best 

ways to drive the innovation we require to achieve this goal. 

The countries that have driven action with targets that are 

supported by strong climate policies are the ones that have 

already benefitted from the new green economy. Since 2004, 

investments in Germany’s clean energy sector have grown 

by 122 percent, creating an industry that supports more 

than 380,000 jobs. By driving down the price of electricity, 

wind and solar have made Germany an attractive location 

for energy-intensive industries – cementing their position 

as a manufacturing powerhouse. Through policies to support 

the solar industry, China has created the world’s largest solar 

industry in less than a decade. A recent adjustment of these 

policies to support feed-in tariffs will see China’s solar industry 

consolidate and continue to grow. European states that are 

otherwise in the midst of an economic crisis, like Spain and 

Italy, have built solid renewable industries that are employing 

people. These new, green industries are likely to be the 

best route out of the Mediterranean’s economic malaise. By 

championing the implementation of the policies required to 

make these changes happen, businesses play a key role, such 

as supporting strong emissions-reduction and renewableenergy 

targets as well as mechanisms that price carbon fairly. 

Businesses thrive on certainty, and an international agreement 

can help provide this certainty. An international agreement 


“ 

Progressive corporations 

must speak loudly and call for 

climate action. 

” 

on aviation emissions through the International Civil Aviation 

Organization (ICAO) is within reach this year, but it will require 

progressive businesses to support it. Without an adequate ICAO 

agreement, the EU’s Emissions Trading Scheme (ETS) will be 

weakened – and woe to the businesses that continue their 

negative campaigns against aviation in the EU ETS. Studies have 

shown Europe’s frequent flyers are educated and concerned 

about climate change. It would not take much for this group 

to switch allegiances from a dinosaur airline acting against 

effective regulation to reduce emissions to an airline that is 

helping to build a green, low-carbon future. 

Other ways to provide certainty to businesses are through 

market standards. The United Nations Framework Convention 

on Climate Change (UNFCCC) could roll out environmentally 

rigorous standards for market mechanisms across the world. 

The UNFCCC could monitor, manage, and approve which 

instruments could be used in a compliance market in order 

to ensure the system maintains environmental integrity. 

Businesses should encourage governments to be proactive 

here. After all, corporate social responsibility is much easier 

with effective standard-setting by governments in place. No 

one wants to be caught with meaningless credits, especially 

when factoring in the damage that can be done to corporate 

reputations from such a situation. 

No one knows better than businesses that money makes the 

world go around. International climate negotiations are no 

different. It is clear that developing countries will need to 

undertake much more adaptation and mitigation than they 

can afford – much, much more. For example, the World 

Bank estimates that over the next 20 years, reducing emissions 

in developing countries could cost $ 240 - $ 600 billion 

a year, while adapting to climate impacts could cost $ 10 - $ 90 

billion a year. Furthermore, the International Energy Agency 

calculates that an additional $ 430 billion – or 0.5 percent of 

global GDP – will need to be spent on energy infrastructure 

annually by 2020. Clearly, there are opportunities for businesses 

in these markets. But first, governments need to deliver the 

$100 billion in public money they promised in Copenhagen. 

Once the public funds are delivered, the amounts of private 

finance that will be necessary in developing countries can be 

leveraged. To unlock these opportunities, businesses should 

advocate – at the UNFCCC, the G20, and at home – for governments 

to deliver on this promise. Furthermore, businesses 

should work collaboratively with NGOs and governments to 

ensure that both public and private funds are deployed effectively 

– for the climate and for poor people. 

Another area in which positive action could open new markets 

in developing countries is the international negotiations 

surrounding intellectual property rights (IPR). Even though 

least-developed countries are not expected to have to conform 

with the World Trade Organization’s regime on IPR 

(Agreement on Trade Related Aspects of Intellectual Property 

Rights – TRIPS), many developing countries with slightly 

higher income levels could be priced out of the climate 

technology market, especially for adaptation technologies. To 

44 


Agenda 


meet this need, businesses can participate in internationally 

coordinated research and development on climate technologies. 

They can support regulation to back up technological 

solutions, such as feed-in tariffs for renewable-energy power 

projects. Encouraging the sharing of technologies, which 

can put developing countries on a low-carbon development 

pathway, is an effective, relatively low-cost means toward our 

long-term climate goal. 

A report released last year by the International Energy Agency 

warned that we need to keep two-thirds of our remaining fossil 

fuel reserves in ground if we are to keep climate change 

within acceptable levels. But the Unburnable Carbon report 

from Carbon Tracker found that many businesses are wasting 

capital by continuing to search for and exploit fossil fuels that 

will never be able to be used – generating what many have 

described as a carbon bubble that will soon burst. To avoid 

this and to retain social license, businesses can wise up to the 

fact that the future will necessarily be fossil fuel-free. They 

can stop new fossil fuel exploration, and call for regulation 

to keep fossil fuels in the ground (ensuring a level playing 

field). Banks, financial institutions, and others with large 

stock holdings can divest from companies that persist with 

inflating the carbon bubble. 

Perhaps most important is standing up to – and going public 

against – the businesses that are actively working against 

effective action on climate change. Progressive corporations 

that see the opportunities that climate action affords and 

that recognize the shared responsibility we all have must 

speak loudly and call for climate action – internationally, 

nationally, and locally. 

Climate change is a challenge that far exceeds any sector’s 

ability to deal with it on its own. UN agencies, governments, 

businesses, and civil society all have a role to play in ensuring 

a low-carbon, sustainable, equitable future. We all have 

a responsibility to help our leaders make the right choices to 

deliver this future. This is much more important than putting 

someone on the moon – this is delivering an inhabitable 

planet for our children. 

Julie-Anne Richards is 

International Policy Coordinator 

at the Climate Action Network 

International. 


Positions 

Join Our Clean Generation 

Movement ! 

International conferences on the climate depress me. Heads of state all come to say exactly 

the same thing: “Climate change is a huge problem. It is going to be very expensive to resolve 

and we can’t find the money.” How is it possible to motivate people when speaking only of 

problems and costs? 

By Dr. Bertrand Piccard 

As a doctor, I always learned that a problem is called a symptom, 

that a symptom has a cause, and that the cause has a 

treatment. When we speak of climate change, when we speak 

of CO 2 

, we are not looking at the source of the problem: We 

are only looking at a symptom that has a very clear cause. 

This cause is our dependence on fossil energy. It is a fact that 

we use far too much non-renewable energy, which is expensive 

and pollutes our world. Yet there is a treatment called 

CleanTech. This allows us to decrease our consumption of 

energy and produce renewable energy, all the while creating 

jobs, making profit, and sustaining growth. 

What we are doing with the Solar Impulse program is giving 

a concrete demonstration of the efficiency of these technologies. 

Everything we are using in our plane in order to fly day 

and night without any fuel, you can also use. This is not the 

secret technology of tomorrow but the technology of yesterday, 

the same solar panels, batteries, electrical motors, insulation 

foam, LED lighting system, construction techniques, and 

software. You can use them yourself. When governments 

state that they still cannot reduce the consumption of fossil 

fuels before investing in more research and innovation, it is 

completely false. The technologies already exist. 

If all of the existing technology – all the CleanTech – was 

used in our society, we would already be able to halve our 

total energy consumption and produce half of the rest from 

renewable sources. It would leave 25 percent of the supply 

coming from fossil energy, which would be acceptable for 

the environment. 

46 


Agenda 


So why are we not doing it? In my view, there are two 

main reasons: 

1. Too many people confuse the notions of price and cost. 

We are told that renewable energy is more expensive than 

fossil energy. This is a misunderstanding ripe with consequence. 

All of the costs of renewable energy are included in 

the price. The price of petrol, gas, or coal does not include 

the entire cost: You do not pay for the 200 million years that 

are necessary to replenish stocks, you do not pay for the oil 

slicks, you do not pay for the wars that have already begun 

and that will be extended in order to procure oil, and you 

are not yet paying for the environmental cost of the CO 2 

produced by fossil fuels. 

The problem is that each entrepreneur expects their competitors 

to take the first step because there is a certain risk in being 

the first to pioneer and invest in renewable energy. Critical 

mass has not yet been attained and we do not know exactly 

which technologies are going to be the most immediately 

profitable or the breakthroughs of tomorrow. And so, they 

wait. On the other side, the governments say that it is up to 

the private entrepreneurs to take the first step. And so nothing 

– or very little – happens. 

Today, people are forbidden from throwing garbage into the 

forest, but it is still permitted to waste energy and to spew 

CO 2 

into the atmosphere. We are lacking the political will and 

the legal framework that would oblige our society, industries, 

We are comparing things that cannot be compared. Evidently, 

the price of petrol is always less expensive than that of solar 

energy, but the cost of petrol is much more expensive than 

the equivalent cost of renewable energy. 

2. The second reason is that the sacrosanct laws of the market 

no longer work in a speculative and globalized world. In the 

past, you would have been able to expect from the market a 

progressive equalization of the prices of energy derived from 

different sources, and thus obtain a spontaneous transition. 

Today this is no longer possible – our world does not work 

like that anymore. Our world functions on acceleration, on 

crisis, on speculation. The subprime mortgage crisis is a typical 

example of a market law that spiraled out of control. 

The grand paradox is that we cannot simply take a political 

position from the left or right and apply it. In each doctrine 

there are elements absolutely necessary to arrive at an efficacious 

result. To resolve the current challenges, we need both 

entrepreneurs and governments. 

and consumers to use technologies that would allow us to 

decrease our consumption of fossil fuels. Government action 

is what we have to encourage from now on if we want 

to energize industry, create jobs, and improve our purchase 

power and trade balance – while at the same time protecting 

our environment. 

Dr. Bertrand Piccard, along with 

Brian Jones, was the first to complete 

a non-stop balloon flight around the 

globe. His new futuristic enterprise is to 

fly round the world in a solar-powered 

airplane named Solar Impulse. 


Portrait: 

Caring For Climate 

As part of his five-year action agenda, UN Secretary-General 

Ban Ki-moon has prioritized sustainable development – 

with climate change as one of the key impulses. The United 

Nations has long been intensively engaged in various 

dialogues and targeted climate initiatives, and Caring for 

Climate is one such platform. 

Americas 

54.15 % 

Europe 

188.53 % 

Africa 

17.5 % 

Middle East 

8.2 % 

Figure 1 : Regional Breakdown by Number and 

Percentage of Caring for Climate Signatories. 

Asia 

84.24 % 

Oceania 

2.1 % 

Source: UN Global Compact website 

Launched by the Secretary-General in 2007, Caring for Climate 

aims to advance the role of business in addressing climate 

change. Led by the UN Global Compact, the UN Environment 

Programme (UNEP) and the UN Framework Convention on 

Climate Change (UNFCCC), Caring for Climate provides a 

framework for business leaders to advance practical solutions 

and help shape public policy as well as public attitudes. 

Chief executive officers who support the leadership statement 

are prepared to set goals, develop and expand strategies 

and practices, and to publicly disclose emissions. Caring for 

Climate is endorsed by nearly 350 companies from 60 countries. 

Number of Signatories 

80 

70 

60 

50 

40 

30 

20 

10 

0 

Technology 

Industrials 

Consumer / retail 

Energy / Infrastructure 

Financial Services 

Media 

Food and Beverage 

Transportation 

Health Care 

Figure 2 : Sector Breakdown of Caring for Climate 

Signatories. 

Source: UN Global Compact website 

Number of Signatories 

40 

35 

30 

25 

20 

15 

10 

5 

One 

Two 0 

Three 

Four 

Five 

Greater 

than 10 % 

decrease 

Between 

6 and 10 % 

decrease 

Between 

1 and 5 % 

decrease 

No Change 

between 

years 

Between 

1 and 5 % 

increase 

Between 

6 and 10 % 

increase 

Figure 3 : Absolute Emission Changes for Signatory 

Sample between 2009 and 2010. 

Greater 

than 10 % 

increase 

Sources: UN Global Compact website, CDP data, and other publicly available information 

48 


Agenda 


Upcoming 

In an effort to encourage greater climate action, Caring for 

Climate has convened large companies and small and mediumsized 

enterprises (SMEs) to uphold five key commitments, the 

essence of which are as follows: 

1| Reduce emissions, set targets, and report annual performance. 

2| Devise a business strategy to approach climate risks and 

opportunities. 

3| Engage with policymakers to encourage scaled-up climate 

action. 

4| Work collaboratively with other enterprises to tackle climate 

change. 

5| Become a climate-friendly business champion with stakeholders. 

To determine whether these commitments have been met, 

Caring for Climate conducted research and analysis of activity 

by signatories using publicly available climate change related 

information reported by signatories through the Carbon 

Disclosure Project (CDP) and in their Communications on 

Progress for Climate (COP-Climate). These are some findings, 

as presented in the Caring for Climate Progress Report 2012: 

Regional and Sectoral Participation 

Signatories of Caring for Climate are primarily located in 

Europe and Asia although there is a notable presence in the 

Americas as well. As seen in Figure 1, European signatories 

made up 53 percent of total membership in 2011. 

Multiple industries are well represented amongst Caring for 

Climate signatories. However, the technology and industrial 

sectors are the most frequent signatories with 18 percent and 

20 percent of total membership, respectively, as indicated in 

Figure 2. 

Emissions Analysis 

In defining a sample population of signatories for an emissions 

trend analysis, Caring for Climate took into account large 

companies that reported both high quality carbon and revenue 

data for the reporting years 2009 and 2010. After reviewing 

corporate disclosures to CDP and COP-Climate submissions 

as well as other publicly available sustainability reports and 

other relevant material, a sample population of 153 large 

companies was selected to assess the emissions performance 

of the initiative as a whole. During the reporting year 2010, 

the sampled signatories released approximately 2,017 million 

metric tonnes carbon dioxide equivalent (MtCO 2 

e) of scope 

Caring for Climate Business 

Forum at COP 19 / CMP 9 in Warsaw 

For the first time this year, the UN Global Compact, UNEP and 

UNFCCC are organizing the Caring for Climate Business Forum: 

Innovation, Ambition, Collaboration during COP 19 / CMP 9 on 

19 - 20 November in Warsaw, Poland. At the Forum, business 

and investors will have the opportunity to directly interface with 

government negotiators, the UN and civil society. With a view to 

facilitating dialogue, action and collaboration, the Forum seeks 

to serve as a flagship channel for business to make genuine 

contributions to climate change negotiations annually. 

In particular, signatories are welcome to contribute to the following 

new opportunities and workstreams: 

• National Adaptation Dialogues: Global Compact Local 

Network-led dialogues for companies and local policymakers 

to enhance adaptation efforts on-the-ground, including 

throughout the supply chain and communities. 

• Responsible Corporate Engagement on Climate Policy: 

Guidance on the nature and implications of corporate 

interaction within climate policy, including an engagement 

framework to help business play a positive and reinforcing 

role in achieving robust climate change policy. 

• Climate and Energy Action Hub: A web-based portal that 

enables various stakeholders to collectively accelerate 

progress on climate and energy. 

1 and 2 emissions into the atmosphere. Total scope 1 and 2 

emissions of the Large Companies included in the sample 

rose by 3.8 percent between 2009 and 2010 likely due in 

part to the global economic recovery. Despite the increase in 

emissions for the entire Caring for Climate sample, approximately 

42 percent of sampled signatories reported absolute 

reductions over the reporting period as detailed in Figure 3. 

The top 25 performers from the sample reportedly achieved 

approximately 16.8 MtCO 2 

e in GHG reductions during the 

2010 reporting year. It should be noted that five companies 

within this “best in class” group achieved roughly 93 percent 

of the calculated reductions. Within the top 25 signatories, 

this population achieved between 2 percent and upwards of 

18 percent declines in emissions year over year due to specific 

emission reduction initiatives. 

Source: Caring for Climate Progress Report 2012, C4C Update Letter 

May 2013, compilation: Dr. Elmer Lenzen 


Inside ... 

AFRICA 

corporate 

social 

responsibility 

in AfriCa 

50 


Agenda 

CSR in Africa 


Inside ... 

aFrica 

Africa’s Natural Assets: 

The Struggle for 

Sustainability 

By Fred Nelson 

During the past decade, African countries have experienced 

a widespread economic boom, six of the world’s ten fastestgrowing 

countries have been African, and in eight of the past 

ten years, Africa has grown faster than East Asia. The rate of 

foreign investment has soared to almost tenfold in this period. 

This growth has been driven by a range of factors, including 

a reduction in regional conflicts, greater political stability 

and democratization, and new technologies such as mobile 

communications, which have transformative implications 

for rural African societies. Perhaps the most important driver, 

52 


Agenda 

CSR in Africa 

though, has been Africa’s natural wealth, including both nonrenewable 

resources such as oil, gas, and minerals, as well 

as renewable ones, which include agricultural land, forests, 

wildlife, water, and fisheries. 

The way that natural resources are managed and governed will 

have enormous implications for the future of African societies. 

For extractive resources such as fossil fuels and minerals, the 

challenge is to establish transparent and equitable governance 

systems to avoid the “resource curse,” whereby these industries 

fuel corruption and thereby undermine governance and 

development. An additional challenge is to balance extractive 

industries with rigorous environmental and social standards 

and safeguards, in order to avoid the large-scale negative 

externalities seen in areas such as the Niger Delta. 

For renewable resources, the foremost need is for establishing 

institutional frameworks that promote sustainability in use and 

exploitation, for example by clearly allocating and enforcing 

property rights over land, forests, wildlife, and other valuable 

resources. These issues of natural resource governance lie at 

the center of the struggle for sustainable development in Africa 

today; future investments may either contribute to balanced 

and more equitable growth, or they may alternatively lead to 

disenfranchisement and resentment, and eventually to the 

all-too-familiar path of resource-linked violence. As global 

markets and the demand for African resources continue to 

expand, the decisions made today about policy reform and 

development models will have an enormous impact in shaping 

these future outcomes in fundamental ways. 

Africa and the global land and resource rush 

The past decade has witnessed a new global rush for land and 

natural resources due to a range of economic and social factors. 

Global food prices have more than doubled since 2000, leading 

to a major shift in demand for agricultural land, as both 

sovereign nations and major commercial producers seek to 

acquire large areas of fertile or irrigable land. New industries 

such as biofuels are further contributing to a surge in land 

acquisition. Tourism, forestry, and carbon markets generate 

further demand for rural lands and resources across much of 

the developing world. In 2009, the World Bank estimated that 

more than 50 million hectares of agricultural land was being 

sought that year for acquisition and investment around the 

world, compared to an average annual acquisition of around 

4 million hectares prior to 2008. 

Africa tend to be heavily centralized, with the state usually 

claiming ownership over lands that are not directly farmed or 

settled, which includes most forests and rangelands. The result 

of this situation is that the majority of people living in rural 

areas – perhaps up to 500 million Africans in total – have 

insecure or inadequate recognition of their customary rights 

over their land and territories. This particularly impacts forestdependent 

communities and pastoralists – groups of people 

who are heavily reliant on collectively held and managed 

pastureland and forests, which tend to cover extensive areas. 

For example, in Africa less than 1 percent of all forests are 

formally owned or controlled by local communities, compared 

to about 25 percent of forests in Latin America. 

These legally unrecognized community lands – which some 

estimates place at roughly 1.6 billion hectares in total across 

sub-Saharan Africa, or around 70 percent of the total land 

area – also contain much of the region’s natural wealth, 

in terms of forests, watersheds, rangelands, and wildlife. In 

Kenya, for example, about 70 percent of all large mammals 

are found outside of state lands such as national parks, mostly 

on communally managed rangelands where wildlife lives 

alongside resident pastoralist communities. These wildlife 

resources support a tourism industry that accounts for more 

than $1 billion in annual revenue and roughly 13 percent of 

GDP in direct and indirect contributions. The reality is similar 

in Namibia, Tanzania, Botswana, Zambia, and many other 

countries where wildlife is a major source of tourism investment 

and one of the most valuable resources in rural areas. 

The widespread failure of African governments to legally 

recognize rural citizens’ customary lands and resources is 

highly problematic – and dangerous – on a number of 

fundamental levels. Secure rights over the land that one lives 

on and depends on for one’s livelihood is an essential human 

Africa has been the focal area for this land and resource rush 

for several basic reasons. First, African nations such as Sudan, 

Mozambique, and Ethiopia have large areas of land that are 

not actively cultivated, and thus appear to be “unused” and 

available for external allocation and conversion. Secondly, 

formal legal rights over land, water, and natural resources in 


ight, and the basis for a stable and growing economy. Insecure 

property rights undermine livelihoods, investment, and foster 

conflict and violence. The roots of this failure to recognize local 

land rights and to maintain overly centralized tenure over 

forests, wildlife, and other natural resources is an artifact of 

colonial and post-colonial history. The colonial state claimed 

ownership over land and resources as a central element of 

imposing political and economic control over African societies. 

Post-independence African states maintained this order in the 

interest of centralized, often socialist nation-building creeds, 

or in many instances to simply ease governing elites’ access 

and control over the most valuable resources in a country. 

State control over land and natural resources has been a core 

aspect of modern Africa’s political economy, whereby governance 

has largely revolved around the competition between 

various elite factions for exploitation and capture of public 

assets. Often land has been among the most valuable of those 

assets, with state-linked elites often privately amassing land 

or, more recently, natural resource concessions. 

These political-economic dynamics and constellations of interests 

have strongly worked against the interests of rural development, 

natural resource conservation, and democratization 

in Africa for the past 30 years. Rural citizens have long been 

deprived rights over the natural resources that their livelihoods 

depend on. This excludes them from opportunities to partner 

with external investors and to benefit from the development 

of new value chains and enterprise opportunities. By depriving 

rural communities of property rights and control over 

the economic value of natural resources, incentives for local 

communities to conserve those resources are eroded. This is 

a major factor underlying high rates of rural deforestation in 

many African countries, as well as the uncontrolled illegal 

hunting that has greatly depleted wildlife in many areas. 

Risks and challenges 

The current global land rush thus brings into stark relief a 

number of fundamental contradictions and sources of conflict 

that characterize natural resource governance in Africa today. 

Even as Africa’s natural assets increase in value and generate 

higher levels of interest and investment, both domestically 

and globally, these market trends may create further incentives 

for national elites to resist granting local groups more 

control over these resources, or to recognize local customary 

property rights. At the same time, though, if greater rights to 

land and resources are not granted to local people, the stage 

will be set for increased conflicts over these resources in the 

future. When governments grant land to investors that in fact 

– if not in law – is used by and belongs to local communities, 

conflict is inevitable. 

Sometimes these conflicts around land and resources play 

a major role in the fate of entire nations; the long series 

of conflicts in Sudan and ultimate independence of South 

Sudan largely revolved around control over land and natural 

resources. More recently, the 2009 uprising and coup that led 

to regime change in Madagascar was at least influenced by 

the previous government’s decision to grant up to half of the 

country’s remaining arable land to a South Korean company. 

Even where such large-scale violence and political instability 

is avoided, struggles over land rights are increasingly taking 

center stage in African politics. In Kenya, for example, land 

was one of the central issues in the constitutional reform 

process that arose in order to address the violence that took 

place across the country following the disputed 2007 general 

election. When the country passed its new constitution in 

August 2010, land reforms were among the most prominent 

features, in particular the provisions that reclassify “trust 

lands” – which had been held by local governments and 

widely mismanaged – as “community lands” to be held more 

directly by local-level groups of people. These lands comprise 

about 70 percent of the total land area of the country. 

For private investors in agriculture, forestry, tourism, and 

other renewable resource industries, these dynamics create 

substantial risks. Many private investments in these land-based 

activities in Africa today are taking place in a context of contested 

property rights and weak governance. This creates risks, 

both financial and reputational, for companies undertaking 

projects on the ground, as well as for their financial investors 

and stakeholders. The underlying source of risk is that many 

More than 75 % of all the world’s rhino today are found in South 

Africa. World Wildlife Fund (WWF) urges all South Africans to be 

proud of the natural heritage. 

54 


Agenda 

CSR in Africa 

investments are situated on lands that are being allocated by 

government authorities without the free, prior, and informed 

consent or authorization of the local communities, who hold 

customary rights (rights that are in many instances recognized 

under international, but not national, law) over those lands. 

Governments are in essence granting lands to investors that 

they do not in fact hold free and unencumbered property rights 

to. The result is that, in many cases, investors encounter major 

conflicts when they acquire such lands. As recent findings 

published by the Rights and Resources Initiative demonstrate, 

such conflicts are often costly, and often incur large losses on 

the part of the investor, particularly if projects must eventually 

be abandoned due to local legal action or resistance. 

Reforms for sustainable growth 

African societies face both major risks and growing opportunities 

as global markets generate more demand for African resources 

– ranging from wildlife and wilderness for recreational 

tourism, to minerals and fossil fuels for industrial consumption. 

In order to minimize negative fallout such as growing social 

strife, economic inequality, and political instability, and to 

maximize positive opportunities for growth and investment, 

two major priorities require more attention and action. 

The first is to design and implement far-reaching land tenure 

reforms that grant clear recognition to citizens’ customary 

lands, including both individual and group landholdings, as 

well as the natural resources associated with those lands. It is 

due to a historic anomaly, a deleterious legacy of colonialism, 

and the political priorities of post-independence governments 

that community land rights remain unrecognized – with so 

much land held by central governments in so many African 

states today. Property rights are a basic foundation of economic 

growth, prosperity, and human rights, making land reform a 

central development priority across Africa. Some countries have 

recently taken action or are planning reforms – for example, 

Kenya’s 2010 constitution represents a notable positive example 

of far-reaching land tenure reform, and land is similarly high 

on the agenda of Tanzania’s current constitutional reform 

process. Even the vast and complex Democratic Republic of 

Congo, where nearly all land and forests are formally owned 

by the state, has embarked on a land policy development 

process that has the potential to bring about crucial reforms. 

by the state, to where private enterprises and local communities 

or smallholders directly enter into partnerships or joint 

ventures. Such models are, in fact, common. There is a long 

history of contract farming in the agricultural sector across 

much of Africa. There has also been a great deal of innovation 

in the tourism sector, with joint ventures between lodges and 

rural communities, which provide land and access to wildlife 

and other natural attractions. These models generate greater 

local equity, control, and benefits. As a result, they mitigate 

the risk of local conflicts that have been impacting many of 

the investments pushed through during the recent global 

land rush. Such win-win arrangements that create new economic 

opportunities and market access for rural communities 

through partnerships with external expertise and capital will 

be critical to the future of African economies. These business 

models can also play a crucial role in helping to sustain Africa’s 

natural assets through the right combination of incentives 

and devolved governance. 

The second priority is to promote greater awareness of the 

challenges to national development aims and private investments 

in land-based enterprises that the current land tenure 

realities create – this includes the current mispricing of 

tenure risks in financial models of investments – and to 

promote alternative investment models that mitigate these 

risks. The most essential element of such alternative models 

is to shift from the prevalent current pattern, where investors 

in African countries are often allocated landholdings directly 

Fred Nelson is the Executive Director 

of Maliasili Initiatives, an organization 

that promotes sustainable natural 

resource management and conservation 

in Africa by focusing on building 

the capacity of leading local civil 

society organizations and facilitating 

collaborative approaches. 


Inside ... 

aFrica 

Good Practices 

Cotton Made in Africa 

Cotton made in Africa works on the principles of a social 

business. That means the initiative operates in accordance 

with sound business methods, except that it does not aim to 

maximize the profits of individuals, but rather to improve the 

conditions of life of a large number of African cotton farmers. 

In order to do that, it is building an alliance of international 

retail companies that has targeted demand in the global market 

for sustainably produced cotton and that uses this material in 

its products. Cotton made in Africa acts in accordance with the 

rules of the market, avoiding subsidies or interventions in the 

system of world market prices, which are dependent on supply 

and demand, as are the prices of practically all raw materials. 

In return for the right to produce garments labeled “Cotton 

made in Africa,” the members of the Demand Alliance pay 

license fees. The surplus from this is passed on in accordance 

with the principles of a social business to the partners who 

have made the label possible by means of their work, namely 

the smallholder farmers in Africa. This holistic approach provides 

a win-win situation for everyone involved. The partners 

of the Demand Alliance receive cotton produced in accordance 

with a social and ecological standard, without paying 

a significantly higher price for it. The African smallholder 

farmers and their families receive several advantages – they 

learn more-efficient growing methods, meaning that they 

can improve their incomes through better yields, and they 

benefit from social projects such as improvements to schools. 

One of the special features of Cotton made in Africa is the verification 

system. It works through the cotton companies, and 

thus involves lower verification costs than certification systems 

that work through the individual farmers or groups of farmers. 

That means a large proportion of the license fees received will, 

in the future, benefit the farmers and their families directly. 

cotton-made-in-africa.com 

56 


Agenda 

CSR in Africa 

World Cocoa Foundation 

Approximately 70 percent of the world’s cocoa currently 

comes from West and Central Africa. The vast majority of 

this cocoa is grown on nearly two million small, independent 

family farms that are less than 2 hectares (5 acres) in size. 

The World Cocoa Foundation (WCF) promotes a sustainable 

cocoa economy through economic and social development and 

environmental stewardship in cocoa-growing communities. 

African cocoa farmers and their families face a number of challenges: 

low yields; pests and diseases that attack their cocoa 

trees; difficulty obtaining farming supplies; and limited access 

to credit. As with other rural communities in sub-Saharan 

Africa, cocoa-growing communities often have low levels of 

adult literacy, face health risks such as malaria and HIV/AIDS, 

and have difficulty with access to quality education for their 

children. WCF is empowering communities by training farmers, 

enhancing education, investing in families, and improving 

community health and welfare. 

WCF works to address these issues in West and Central Africa 

through three flagship programs: WCF Cocoa Livelihoods 

Program, WCF ECHOES, and the WCF African Cocoa Initiative. 

WCF supports active programming in the following countries: 

Cameroon, Côte d’Ivoire, Ghana, Nigeria, and Liberia. 

worldcocoafoundation.org 

Sustainable Energy Africa 

Sustainable Energy Africa (SEA) promotes the development 

of a low-carbon, clean-energy economy throughout southern 

Africa. Through their work, SEA promotes the more efficient 

use of conventional energy, the transition to more sustainable 

energies such as solar and wind power, and a holistic view of 

sustainable living more generally. 

South Africa is in an enviable position with regard to natural 

energy sources, and SEA sees itself at the forefront of debate 

on not only sustainable and cost-efficient energy supply, 

but also climate change and environmental issues. A large 

component of the work has been in supporting government 

– particularly local government, and more recently provincial 

government – in understanding sustainable energy issues; 

developing strategies, policies, and planning that facilitate a 

move toward sustainable development; and very importantly, 

assisting and supporting their implementation. 

The theme of sustainable energy underpins all of their work. As 

a dynamic, people-centered, and driven NGO, they act essentially 

as a consultative agency providing research, capacity-building, 

and assistance with project implementation as well as skills 

that cover engineering, environmental science, education, 

and urban and regional planning. 

sustainable.org.za 


Inside ... 

aFrica 

The 


in Africa 

Formal Network 

Established Network 

Emerging Network 

Source: UN Global Compact website/Local Networks, Status: 07/12/13 

58 


Agenda 

CSR in Africa 

Selected Activities in 2012 

Nigeria 

The Global Compact Network Nigeria held a session covering 

efforts made by companies and partners in Nigeria to increase 

access to clean and renewable energy resources in rural settings. 

Kenya 

The Global Compact Network Kenya organized a half-day 

roundtable event to discuss emerging issues on human rights. 

The event was hosted by a participant of the Local Network 

and provided a space for companies to engage, discuss, and 

increase their knowledge on the intersection of human rights 

and business within the Kenyan context. The event successfully 

brought together participants and introduced them to the 

Global Compact Human Rights Self Assessment Tool as well 

as international trends on managing human rights risks. A 

presentation on the implications of the Kenyan Constitution’s 

Bill of Rights on companies was also introduced. The host 

company also shared its experiences regarding these themes, 

including a best practice case study that other companies 

could learn from and apply to their own systems and processes. 

Nigeria 

As part of its contribution to the Siemens Integrity Initiative, 

the Nigeria Network hosted a collective action workshop with 

a focus on “Openness and Transparency: A Stakeholder Commitment 

against Corruption.” A wide range of participants attended 

the two-day meeting, including top business executives, 

government agencies, civil society, and media. The workshop 

was an opportunity to promote dialogue among the various 

stakeholders using breakout sessions and small group discussions 

along thematic areas of interest. Nearly 130 people were in 

attendance, signaling a strong commitment to anti-corruption 

measures and an interest in sharing and following the strong 

examples of good corporate business practice. 

Uganda 

The Turkey and Uganda Local Networks partnered with European 

government representatives and donor agencies to 

host a session on biodiversity and ecosystem services. The 

session was an example of South-South cooperation, whereby 

participants engaged in discussions on how businesses are 

mitigating and offsetting their biodiversity impacts. Models 

of innovative public-private partnerships were shared as well 

as ways in which these can contribute to conservation efforts 

and thrive in competitive markets. 

Uganda 

A Women’s Executive Conference was hosted by the Uganda 

Network, and coincided with the graduation of nine women 

enrolled in the Federation of Uganda Employers Female Future 

Programme – a nine-month executive training programme to 

elevate women into executive roles in Ugandan corporations. 

Ghana 

The Global Compact Network Ghana teamed up with the 

Ghana Chamber of Mines to organize a two-day residential 

training seminar under the theme of “Environmental and 

Social Responsibility: Key to Sustainable Mining.” The seminar 

covered corporate sustainability guidelines for mining 

companies in regards to the utilization of mineral royalties 

and water quality management, as well as proper procedures 

for mine closures and new regulations that are set to impact 

companies in this sector. The event successfully created a 

space for mining companies to discuss issues and ideas with 

one another and move forward on the environmental agenda. 

South Africa 

The South Africa Network partnered with the National Business 

Initiative to host a roundtable discussion on anti-corruption 

collective action measures in the construction sector. Over the 

course of the discussion, companies learned about current 

initiatives, explored additional collective measures to address 

corruption in their sector, and shared best practices from other 

countries and sectors that could be applied to the construction 

industry in South Africa. Presentations provided guidance to 

companies in determining what measures were most suitable 

for their context, and provided updates on government initiatives 

and regulations. Participating companies agreed that 

corruption has become a major issue in South Africa and that 

business should set positive examples in order to influence 

change. Participants agreed to several next steps, including 

pursuing partnerships with existing initiatives, expanding 

representation of companies in the sector, and continuing 

conversations and meetings on the issue moving forward. 

South Africa 

The Global Compact Network South Africa provided an overview 

of programmes throughout Southern Africa aimed at 

establishing a green economy. Presentations explored synergies 

and areas for regional cooperation, and the potential opportunities 

created by these initiatives in areas such as enterprise 

development to job creation, and the renewal of commercial 

and residential environments. 


Inside ... 

aFrica 

“Renewed Energy for 

Women’s Empowerment” 

Interview with head of UN Women in southern Africa 

Nomcebo Manzini is a busy woman. As the regional director for southern Africa and the 

Indian Ocean islands of the UN’s recently created Entity for Gender Equality and the 

Empowerment of Women – officially known as UN Women – she is constantly on the 

road from one country to another, addressing public gatherings, attending conferences, and 

strategizing with government officials and women activists alike. Africa Renewal’s managing 

editor, Ernest Harsch, was fortunate to catch Ms. Manzini at her home in Johannesburg, 

South Africa, in late March 2011, during a brief stopover in her travels. 

Harsch: In South Africa and Mozambique, women have reached the 

benchmark of 30 percent women’s representation in parliament. What’s 

the picture across southern Africa? 

Ms. Manzini: As a sub-region we certainly have a long way to 

go. A few countries have been doing well, but there are others 

that have regressed. In terms of women in political leadership 

positions, the average is only 18 percent. It is way below the 

30 percent level we have been calling for, and far below the 

50 cent level that the heads of state and government agreed 

to in signing the Gender and Development Protocol [of the 

Southern African Development Community – SADC]. We 

are seeing a lot of change at the local level. Most countries 

seem to be doing much better in terms of representation in 

local governments. This might be because women work in the 

community and are better known at that level. 

Women’s political representation is absolutely important 

because participation is a basic human right. Women bring 

their experiences, knowledge, and capacities, which are different 

from those that men bring. 

Beyond getting into office, how can women better engage with broader 

governance issues, including political conflicts? 

One of the things that UN Women is doing is building capacities 

for women to participate in leadership, but transformative 

leadership, so that they can engage from a perspective of basic 

human rights and understand broader governance issues and 

democracy in general. Some countries are in deep conflict. Our 

position is to support women to participate in negotiations, in 

mediation, but also in prevention. In Comoros, for instance, 

we are working within the context of the UN country team 

on a peacebuilding project. Our contribution is to build the 

skills of women to understand the issues of gender relations 

in peace, in peacebuilding, even in conflicts and how conflicts 

happen. Even if they understand that, they need to build allies 

within the traditional leaderships, among men, with their 

partners, etc. We try to engage a more holistic approach to 

dealing with such issues. 

UN Women coordinates the Africa Unite campaign, which targets 

violence against women and girls. What is the main challenge? 

60 


Agenda 

CSR in Africa 

The problem is the resources. We are not getting enough funds 

from national budgets or from the donor community. African 

heads of state launched the campaign in Africa in January 

2010. We are now doing advocacy with the different heads of 

state to ensure that their ministries of planning and finance 

allocate funds for implementing the national action plans. 

We have safer cities programs that we will be rolling out 

in several countries in cooperation with UNICEF. Research 

shows that rape of young girls is normally of school children 

in the early morning when they are going to school, and in 

the evening when they are going back home, often through 

thick bushes and other unsafe pathways. But when we talk 

to governments about this, they hardly have the resources to 

provide sanitation and water to communities. They do not 

see it as a priority. 

And the judicial and security systems? 

We are working with the police, military, and other entities in 

the security sector to make sure they understand the gender 

dimensions of policing and security, also gender-based violence. 

We had a conference to talk about how we can support the 

SADC gender unit to mainstream gender in the SADC Organ 

on Politics, Defence, and Security. We talked about ensuring 

that the officers who go on peacekeeping missions have some 

gender training. 

We are also looking at the informal justice sector. In southern 

Africa, research clearly shows that when women experience 

abuse or violence in the home, they do not go to the police 

as a first port of call. They go either to their families or to 

traditional leadership. 

There has been real progress in narrowing the gap between boys and 

girls entering primary school. But do the girls stay in school? 

That is a fundamental point. Looking at many countries, we 

find that there is parity in terms of entry. In some countries, 

girls are even surpassing boys in entering basic education. 

But as you move further into the school years and you get 

into grades seven and eight, there are fewer girls continuing 


It is because of the advocacy that has been coming from the 

women’s movements and from the ministries responsible for 

women and gender issues. 

At UN Women we are working with five governments in the 

sub-region in a pilot program to see exactly what women are 

doing to get out of poverty. Most of these women are in what 

is called the informal sector, and their work is not recognized. 

The women who kept the Zimbabwe economy going at the 

lowest point in its history are not recognized even today. Yet, 

they ensured the survival of their families and the economy. 

It is absolutely essential to deal with the economic empowerment 

of women, because we know that when women have 

that economic independence, they are more likely to be able 

to make decisions about their dignity, their security, and 

their welfare. 

Does UN Women work with rural women? 

in school. Parents are more likely to withdraw the girls from 

school if they are cash-strapped – or if the girls are going to 

get married. The other problem is that pregnancy in schools 

is very high and girls will drop out to have the babies. Girls 

also tend to have more work to do in the home, so they have 

less time to study and therefore tend to have a lower passing 

rate than the boys. 

Southern Africa has the highest HIV prevalence rates in the world. 

How are women affected? 

So much money has come through for programs against HIV 

and AIDS. But the work has not taken into account the clear 

connection between gender inequality and the spread of HIV/ 

AIDS. In some southern African countries, there are 5 percent of 

men with HIV, but you find 20 to 22 percent of young women 

of the same age group with HIV. When you do the research, it 

is very much: “I didn’t want to sleep with him, but he forced 

me.” And then there is the whole issue of “survival sex” in 

southern Africa, where young girls will sleep with older men 

so that they are able to go to school. 

And women are also more likely than men to be in poverty … 

It seems as though even our governments have now acknowledged 

that development is not going to happen without the 

full involvement and participation of women in the economy. 

But they have not just all of a sudden become benevolent. 

We are currently looking to raise $ 33 million in funds for a 

project to do exactly that, to work with rural women, particularly 

rural women farmers. It is a major challenge. At least 

70 percent of the labor in agriculture is provided by women. 

When we seek $ 33 million, that is a drop in the ocean really 

– it is nothing in terms of the need. And what happens 

when the $ 33 million is gone? We need to be able to define 

programs that governments include in their own national 

development plans. And governments must be able to desist 

from corruption. It is not that the national resources are not 

there, but they are misused. 

UN Women has just been created, merging four different UN entities 

that dealt with women. For women here in southern Africa, what difference 

can UN Women make? 

What I see already is just an amazing amount of renewed 

energy for women’s empowerment in the various areas of 

work since the creation of UN Women – renewed hope indeed 

that UN Women will do things better and faster in promoting 

women’s rights globally. It is a very tough call for us 

in UN Women to deliver on that. 

This interview was originally published 

in Africa Renewal, Special Edition 

on Women 2012, produced by the 

Africa Section of the United Nations 

Department of Public Information. 

www.un.org/africarenewal/magazine/ 

special-edition-women-2012/‘renewedenergy-women’s-empowerment’ 

62 


Inside ... 

Agenda 

CSR in Africa 

aFrica 

CSR in South Africa 

Professor Ralph Hamann is Research Director for the Graduate School of Business at the 

University of Cape Town. His areas of expertise include Corporate Citizenship and Corporate 

Social Responsibility. In 2006 he was involved as a researcher at the UN Global Compact 

Learning Forum, which took place in Ghana. For the UN Global Compact International 

Yearbook, Hamann highlights the “paradox for CSR in South Africa” and beyond. 

National Concept of CSR 

In light of South Africa’s history, is there a specific South African view 

on corporate social responsibility (CSR)? 

Prof. Hamann: The historical context has provided a paradox 

regarding CSR in South Africa. On the one hand, corporations 

are implicated in the design of the apartheid economy 

and migrant labor system, specifically, as well as associated 

human rights abuses. As argued by the Truth and Reconciliation 

Commission, “grand apartheid was not an Afrikaner 

state invention, but was created by the mines” (paraphrased). 

This historical legacy still lingers in the pervasive distrust 

between big (white) business and the post-1994 government. 

For those distrustful of business, CSR will remain a fig leaf. 

On the other hand, large companies recognized – at least 

in the 1970s – that the increasingly severe policies of the 

apartheid government were leading to social unrest that would 

have negative consequences for business. As a prominent 

example, Anglo American and others established in 1978 

(after the Soweto riots) the Urban Foundation, which played 

an important role in building schools and houses in Soweto 

and elsewhere, and also in advocating policy changes (less 

strict pass laws). The Urban Foundation is a precursor to the 

National Business Initiative. 

The apartheid legacy obviously creates particular social challenges, 

which have become priorities for companies’ corporate 

social investment (CSI) programs. These investments focus on 

education, health, and small enterprise development. Unfortunately, 

many companies still think that CSR is primarily about 

CSI. My criticism is that companies focus on giving away a 

small proportion of their profits without really understanding 

and responding to the social implications of their core business 

practices. I hardly use the term CSR anymore, partly due to 

this confusion. We rather emphasize the need to understand 

the broader social-ecological context in companies’ strategy 

design and implementation. 


With the fall of Apartheid in 1994, did South African companies implement 

CSR programs voluntarily or did they rather feel the pressure 

of democratization and the need to comply with international labor 

standards? 

After 1994, many companies were keen to build their legitimacy 

and create a good impression with the new government. 

Much of this was done through CSI, as mentioned above. 

Many companies built schools, for instance. In parallel, the 

new government embarked on an ambitious policy and 

law review, based on the 1996 Constitution. These included 

progressive labor relations, occupational health and safety, 

anti-discrimination, environmental and natural resource 

laws (most of which were published in the latter half of the 

1990s). These have had an important impact on the regulatory 

pressures on business, though the state’s enforcement 

capacity has been limited. I have argued that there is thus 

a quasi-voluntary character to legal compliance, especially 

if companies attempt to comply with the spirit of this new 

legislation, rather than merely the letter. 

Then, of course, there was the black economic empowerment 

policy, which was also promulgated as an act, as well as subject 

of numerous sector-specific “charters.” This sought to address 

the racially skewed ownership and management structures in 

the economy. One of the most prominent charters was the one 

in the mining industry (2002), and a bit later in the finance 

sector. Many of these charters were the result of corporatist 

(business-government-stakeholder) negotiations, and they 

identified sector-specific targets for ensuring: ownership of 

companies would be transferred to black people; management 

positions would be held by black people; and employment 

equity / affirmative action. There were also sector-specific targets 

– for example, conversion of hostels in the mining sector, 

increased access to banking in the finance sector. Generally, 

there was an expectation that about 1 percent of profit would 

go toward socio-economic development, that is, CSI. 

What are the drivers of CSR in South Africa? Is it merely voluntary? 

Or is it the government, for example by regulating the Johannesburg 

Stock Exchange (JSE) or labor laws? 

There is a confluence of drivers, and their influence also varies, 

depending on the sector and size of the company, as well 

as the specific social or environmental issue that is at stake. 

I think state regulations have been very important, especially 

in areas such as labor relations and environmental protection. 

The state’s enforcement capacity has been a problem, especially 

in small, dispersed operations. Public regulations have also 

been important. This includes the JSE’s listing requirements, 

which rely on the King codes of corporate governance. The latter 

has been very influential in driving sustainability reporting 

and, more recently, integrated reporting. There have also been 

international pressures, including regulations of the London 

and New York stock exchanges, which have influenced some 

of the big South African companies that have listed there, 

and which have provided some “best practice” leadership in 

South Africa. 

Human Rights 

In a report, you said that UN attempts to formally apply international 

human rights laws in the private sector in 1990 and 2003 were unsuccessful. 

What does the link look like in sub-Saharan Africa today? 

Well, those earlier attempts subsequently led to the appointment 

of John Ruggie as UN Special Representative on business 

and human rights. His “three pillars” framework has been 

very helpful and influential, in that it clarifies and codifies 

what is expected of business. The second – and final – report 

by Ruggie was published in 2011, and since then there 

have been numerous initiatives to provide companies with 

more detailed guidance. There is more scope, however, for 

companies to recognize human rights as the overarching 

framework that guides their CSR activities. At the same time, 

the human rights framing emphasizes “do no harm,” and it 

leaves out the opportunities for business to make positive 

contributions through processes, products, business models, 

or systems innovations. 

In conflict zones, such as in parts of the Democratic Republic of Congo 

(DRC) and Rwanda, we experience the problem of “limited statehood” 

and hence a lack of human rights and responsibility toward communities. 

Can and should companies’ CSR fill this gap? 

64 


Agenda 

CSR in Africa 

This is a significant challenge. On the one hand, some companies 

are beginning to fill this gap because they recognize that 

some minimum provision of public goods and rule enforcement 

is necessary for their business, and also desired by local 

stakeholders. On the other hand, this is problematic because 

it may create a dependency on companies. This is not just a 

phenomenon in places such as the DRC; it is also happening 

in South Africa, where some municipalities are just unable 

to provide public services. I think the big challenge is for 

companies to contribute to developing state capacity, without 

co-opting the state to suit their interests. 

Environment and Green Business 

Woolworths’ managers in South Africa set out to develop a program 

of direct engagement with the farmers in their supply chain to enhance 

their productivity, focusing in part on irrigation techniques. Is this a rare 

example of “green economy,” or is this sector on the rise in South Africa? 

What is its status today when compared to industrialized countries? 

I think the Woolworths “Farming for the Future” (FfF) program 

is quite unusual. You have a company with significant public 

sustainability commitments made by the CEO, and you also 

have a sophisticated middle management that was capable of 

sensing the problems encountered by farmers. Also pertinent 

is this company’s emphasis on high-quality, fresh produce 

and emphasis on long-term relationships with key farmers … 

these factors provided the motives and the capabilities for the 

FfF program. Though I have said that initiatives such as FfF 

are unusual, I think more companies are recognizing their 

reliance on a sustainable value chain, and they are thinking 

about more systemic approaches to addressing these problems. 

Another prominent example is SAB’s work on water. 

In the run-up to Rio+20, you said there will be much discussion on the 

transfer of environmental technologies to developing countries. Has the 

2012 conference resulted in any real progress for African companies’ CSR? 

social impacts, mines, of course, also have far-reaching environmental 

impacts, which, in turn, have social implications. 

Has the “Marikana incident” led to a rethinking among mining companies 

about the way in which they tackle social wrongs around mining 

sites? (In August 2012 more than 40 people died in a wildcat strike at 

Lonmin’s Marikana mine.) 

There has been much debate and some important suggestions 

have been made, for example changing the migrant labor 

arrangements so that migrants return home more often. But 

I have not heard of any actual changes being implemented. 

There is a discussion about the “de facto government” of mining companies 

in the informal settlements around mining sites, in addition to 

some social investments that are territorial. Is there a real risk of mining 

communities being at the sole mercy of those “mining governments,” 

instead of a local government? 

Yes, some communities are becoming very dependent on mining 

companies. This is a problem because the companies are 

not formally accountable to the communities. Of course the 

problem is amplified when the mine scales-down or closes. 


Corruption is a significant problem in South African society. 

Local Global Compact Network advised the sectors of healthcare 

and construction, and the awarding of mining licenses should 

be more closely scrutinized. What are your recommendations? 

UN Global Compact companies should collectively emphasize 

the transparency movement, including a call for all party 

funding to be made public. The fact that this is being resisted 

by the African National Congress and opposition parties is 

deeply problematic. It would be great for companies to make a 

committed stand on this. It would have far-reaching effects. 

None that I am aware of. 

Labor Standards 

For which reasons do mining companies take a special role in the South 

African and sub-Saharan African private sector when it comes to CSR? 

Mining is the foundation for the development of the southern 

African economy, as well as the development of the state and 

colonial and apartheid economic systems. The migrant labor 

system had significant implications for the development of 

towns, as well as the (under) development of rural areas. Mining 

still has significant economic significance and employs large 

numbers of unionized workers. In areas such as Rustenburg, 

mining accounts for an overwhelming proportion of employment 

and economic development. Over and above significant 

Ralph Hamann is research director 

and associate professor at the 

Graduate School of Business, 

University of Cape Town (UCT). 


Inside ... 

aFrica 

CSR and Development 

in Africa 

Redefining the Roles and Responsibilities of 

Public and Private Actors in the Mining Sector 

66 


Agenda 

CSR in Africa 

By Prof. Bonnie Campbell 

The issue of corporate social responsibility (CSR), as it relates 

to the mining sector, has emerged in a particular historical 

context. Several decades of reform that liberalized regulatory 

frameworks and mining codes in mineral-rich countries of 

Africa in order to encourage investment has contributed to 

redefining the role and functions of mineral-rich states, as well 

as contributed to the shift of what were formerly considered 

state functions to private actors – often large transnational 

mining companies. In the context of the weakened institutional 

and political capacities of states – and consequently of their 

weakened capacity to pursue developmental objectives, to 

enforce regulations in areas of key importance to communities, 

and to meet national economic objectives, along with the 

trend of transferring public responsibilities to private actors – 

issues of legitimacy have emerged about the operations of 

mining companies themselves. Such a redefinition of spheres 

of authority and responsibility in situations of declining public 

resources – compounded by the fact that mineral-rich states 

have become less able to ensure the needed monitoring, followup, 

and, if necessary, bring in remedial measures –has called 

into question the regulatory role of states, hence creating a 

legitimacy gap, which inevitably impacts on the activities of 

mining enterprises. 

While past and current trends may have allowed governments 

to shift the locus of responsibility for what were previously 

considered state functions – including public service delivery 

(clinics, roads, infrastructure, security, etc.) as well as rulesetting 

and implementation and mediation – to the private 

operators of large-scale mining projects and NGOs (which 

helps explain the pressures on companies to introduce CSR 

projects in order to gain a social license to operate), such 

transfers are problematic for several reasons. With regard 

to the origins of CSR projects, they are most often the result 

of externally-driven initiatives rather than ideas emanating 

from a domestic policy process and as integral parts of locallyowned 

public policies. Moreover, not only do they silence the 

legitimate, and indeed necessary, right of governments to offer 

services to their populations – a precondition to their being 

held publicly accountable – they also contribute to obscuring 

the issue of government responsibility itself. The current 

sidestepping of the state – by suggesting companies can 

gain better legitimacy for their operations by offering social 

services – runs the risk of undermining a precondition for 

building responsible governments and the basis of democratic 

practice: the need to hold governments publicly accountable. 

The blurring of lines of responsibility of public, as opposed 


to private, actors is a key element in explaining why – in 

situations when differences of opinion among stakeholders 

arise over land rights or compensation, for example – there 

are increasing risks of a degeneration into violent conflicts. 

There have been different responses to these issues of legitimacy 

emanating from different arenas, including the multilateral 

level – as, for example, though the production of international 

norms to which companies are invited to adhere, such as in 

the area of environmental impact assessments or involuntary 

displacements. However, such “transnational legal frameworks” 

leave unresolved the key issue of enforcement, as they do not 

address the problem of the capacity of states to ensure their 

implementation and to bring in corrective measures if necessary. 

There have also been proposals from bilateral agencies, 

such as the production of tool kits to better manage situations 

of risk and potential conflict. These initiatives similarly fail to 

address the origins of such conflicts, which often concern the 

perceived legitimacy of the positions held by different stakeholders 

(communities as opposed to companies), about whether to 

proceed with a particular project, the conditions under which 

it is undertaken, or the distribution of the revenues it produces. 

Finally and a third type of response are CSR projects put 

forward by private actors with a view of obtaining a social 

license to operate. While one can understand the motivation 

behind such initiatives, by their very nature and origin 

they are most likely to be attempts to respond to community 

grievances – that is, symptoms or manifestations of 

the problems at hand – rather than an addressing of their 

causes, namely, issues such as the control over resources 

and access to land rights, the distribution of influence and 

authority among actors, and the choice of the development 

agenda being implemented. Beyond the fact that such CSR 

strategies are usually externally driven and raise issues of 

local appropriation and sustainability beyond the life of a 

particular project, they not only fail to address the issue of 

the regulatory authority of states, but by sidestepping the 

state, they may even contribute to postponing the conditions 

necessary for resolving the problems of legitimacy that they 

are intended to address. 

The issue of legitimacy that companies increasingly face can 

be seen as a consequence of evolving structural relations that 

have resulted, at least in part, from the manner in which the 

mining sector has been reformed. These structural relations 

have significantly modified – and sometimes obscured – the 

demarcation of spheres of responsibilities, whether public or 

private, and have frequently also blurred distinctions between 

the political and the technical domains. Such a perspective 

underlines the importance of taking into account the reforms 

at the origin of the reshaping of institutional arrangements, 

the structural relations of influence and authority that characterize 

these reforms, and the roles and responsibilities of 

the various actors involved. 

Moreover, strategies of CSR often appear premised on the faulty 

hypothesis that it is investments initiated by private companies 

that are going to drive development. In fact, there is no 

historical example anywhere on the earth whereby sustainable 

growth, social and economic development, and poverty reduction 

took place through private investment in the absence of 

68 


Agenda 

CSR in Africa 

appropriate public policies and state interventions needed in 

order to plan strategically, regulate, and monitor investment 

as well as to ensure that the presence of the private sector be 

harnessed to meet the development objectives determined by 

the countries and the governments concerned. 

A useful example of recognition of the above is a 2011 report 

of the United Nations Economic Commission for Africa 

(UNECA), which sets out recommendations for the mining 

sector in Africa in order to encourage it to become a catalyst 

for sustainable, intergenerational, and equitable development. 

With regard to CSR, the report is clear: “From a policy perspective, 

CSR initiatives should not be considered a substitute for 

government responsibility toward its citizens in providing 

basic infrastructure and other public goods. Indeed, CSR initiatives 

should complement government efforts through local 

government institutions and local authorities.” 

Significantly, CSR projects could reduce the motivation of 

governments to fulfill their responsibilities to citizens, and 

the latter could come to see the company as the provider of 

those services for which they should be looking to the state. 

Better coordination between the planning and investment 

of the state and corporate outlays under CSR could improve 

the value of both streams of expenditure. For example, the 

sustainable use of a school or clinic built as part of a CSR 

strategy is more likely if the project is coordinated with the 

state to ensure that it fits into a larger plan and that the state 

can support health staff or teachers should the mine halt its 

support. Finally, the norms according to which CSR initiatives 

are undertaken should be part of a national policy debate on 

the mining industry’s obligations regarding social development 

objectives. Indicators needed to assess the impact of good CSR 

projects must be built into a nationally derived framework 

and applied by a range of stakeholders, including civil society. 

The framework must focus on stakeholder consultation 

and allow for a review of obligations and commitments. This 

review must be based on reporting requirements that should 

be part of the CSR framework. 

In the end, companies have the following responsibilities: 

1) Signing contracts in a transparent manner and making 

these public; 2) paying fair royalties and taxes in a transparent 

manner; 3) respecting the laws of the country in which they 

operate, international obligations, and human rights obligations. 

Should companies wish to contribute in other ways to 

the sustainable development of the countries in which they 

operate, the guidelines set out by UNECA leave little doubt 

as to how best to proceed. 

Bonnie Campbell is Professor at the 

University of Quebec in Montreal, 

Faculty of Political Science and Law. 


GOOD 

Practice 

Solely responsible for the editorial contributions 

under the heading "Good Practice" are the companies 

and their authors themselves. 

Human Rights 

74 


BASF 


HOCHTIEF 

MAN 

Ricoh 

Volkswagen 

136 



Bayer 


Development 

152 


Medcom 

Novo Nordisk 


SK 

Teck 

The TMS Group 


Adecco Group 

98 

Environment 

Audi 

Camfil 



EDF Group 

Grundfos 



110 

Camposol 

Copeinca 

Coop 

ITOCHU 

Nestlé 

Prosegur 

Sanofi 


168 


Bosch 

ManpowerGroup 

Saga Furs 

Weidmüller 


130 


Bradesco 



Thales 

70 Global Compact International Yearbook 2013

98 

74 

168 

110 

76 

136 

80 

100 

170 

130 

112 

152 

140 

82 

154 

153 

114 

118 

120 

84 

122 

142 

156 

144 

102 

86 

126 

158 

88 

160 

148 

172 

104 

90 

128 

162 

92 

94 

132 

96 

166 

150 

106 

Adecco Group 



Audi 


BASF 

Bayer 

Bosch 

Bradesco 


Camfil 

Camposol 



Coop 

Copeinca 



EDF Group 


Grundfos 

Hochtief 

Itochu 

MAN 

ManpowerGroup 

Medcom 


Nestlé 

Novo Nordisk 

Prosegur 

Ricoh 


Saga Furs 



Sanofi 

SK 

Teck 

Thales 

The TMS Group 


Volkswagen 

Weidmüller 

Global Compact International Yearbook 2013 

71

Good Practice 

Human Rights 

Labour STANDARDS 

Principle 1: Businesses should support and respect the 

protection of internationally proclaimed human rights; and 

Principle 2: make sure that they are not complicit in 

human rights abuses. 

Principle 3: Businesses should uphold the freedom of association 

and the effective recognition of the right to collective bargaining; 

Principle 4: the elimination of all forms of forced and compulsory 

labour; 

72 


Human Rights 

74 

76 

80 

82 

84 

86 

88 

90 

92 

94 

96 



Bayer 



Medcom 

Novo Nordisk 


SK 

Teck 

The TMS Group 


98 

100 

102 

104 

106 

Adecco Group 

Bosch 

ManpowerGroup 

Saga Furs 

Weidmüller 

Principle 5: the effective abolition of child 

labour; and 

Principle 6: the elimination of discrimination in 

respect of employment and occupation. 


73

AIR FRANCE KLM 

Children: A Universal 

Cause 

By Corinne Bélière, Air France KLM 

Air France KLM’s mission is to connect people around the world. Some 72 million people 

of all ages, languages, and cultures travel each year on board our aircraft. The attentive 

service provided to each and every one of our passengers has led the Group toward a better 

understanding of its customers and their expectations over the years. This approach, which 

encompasses much more than simple flight services, extends to the destinations and regions 

where the Group is present and to the people who live there. 

Through its international presence, the 

Group contributes to the economic and 

social development of the countries it 

serves by using local resources, promoting 

skills development, and rallying local 

players and staff around projects for the 

local populations. Air France and KLM 

each offer their own social and environmental 

programs, but there is one cause 

that they are both principally committed 

to: helping children and young people. 

Through the work of the Air France 

Corporate Foundation and KLM AirCares 

program – combined with local actions 

and the support of (or at the initiative 

of) company staff – this commitment 

takes the form of concrete actions and 

long-term investments. 


Good Practice 

Human Rights 

The Air France Foundation 

In 2012, the Air France Foundation celebrated 

20 years of supporting children 

in need. With the support of NGOs, the 

Foundation contributes to projects in favor 

of sick, disabled, and underprivileged 

children by facilitating access to education, 

training, and cultural activities. 

The Foundation has made helping street 

children one of its priorities, providing 

funding for the highest number of projects 

worldwide. In the face of extreme 

poverty, the associations work relentlessly 

to bring these children back into 

mainstream society and give them opportunities 

to pursue their educations. 

When, in 2010, Haiti was devastated 

by an earthquake that left the country 

completely desolate, the Foundation immediately 

rallied to provide support and 

assistance. Two days after the earthquake, 

the Foundation launched a fundraising 

campaign with Air France and KLM 

staff, with a view to rebuilding a school 

that was ready to welcome 2,500 children 

between the ages of 6 and 16 a few 

months later. 

Beyond the material and financial aspects, 

the Foundation wishes to develop 

its actions. For instance, by creating 

the Corporate Foundation Club, which 

groups together some 30 major French 

companies, its aim is to pool different 

experiences in order to increase the impacts 

of its actions and conduct more 

long-term projects. Furthermore, the 

Foundation is looking into ways for associations 

to offer psychological support 

to street children. 

Since 1992, there have been 856 programs 

funded in 80 countries. The Foundation 

has a network of 2,200 volunteers 

and has been sponsored by numerous 

celebrities (Mstislav Rostropovitch, Javiez 

Perez de Cuellar, Boris Cyrulnik, Miguel 

Angel Estrella, Olga Havlova, and Daniel 

Alagille, among others). Each year, 

charities are honored for their efforts to 

improve the living conditions of young 

people and give them a better future. 

Air France has also been supporting humanitarian 

programs through long-time 

partnerships with different associations: 

• Acting for Life, which is committed, 

among other actions, to protecting 

children in distress; 

• ECPAT International, which informs 

passengers about the damage caused 

by child sex tourism; 

• Aviation without Borders (created by 

pilots), which transports medical supplies 

and also ill children who cannot 

be treated where they are; 

• NGOs that offer medical assistance 

and transport medical supplies and 

children suffering from rare diseases 

to specialized medical centers, and 

help transport doctors and surgeons 

to poverty-stricken areas. 

KLM AirCares 

The KLM AirCares program supports a 

number of NGOs that contribute through 

their projects to medical, educational, 

and/or sanitation needs for communities 

in developing countries, with a focus on 

children and giving them good foundations 

for their futures. 

The program was set up in 1999 and consisted 

of supporting four NGOs per year 

via a new project every quarter. Since 

then more than 40 charitable organizations 

have had their projects supported 

through financial sponsorship and free 

freight capacity. 

In recent years a shift has taken place. 

KLM has chosen to focus on specific partners 

to support their social projects over 

the long term. In this way, organizations 

benefit from the long-term sponsorship 

of KLM. Currently, KLM is working with 

seven NGOs that were selected on the 

criteria that they contribute to basic 

education, health, and sanitation needs. 

They also needed to be active in those 

destinations that KLM flies to. KLM offers 

these partners freight support, logistics 

expertise, exposure, hands-on help, and 

active promotion. 

KLM is currently working with the following 

partners: 

• Wings of Support – the KLM and Martinair 

foundation staff with more than 

3,000 volunteers managing more than 

300 projects worldwide; 

• Doctor2Doctor – a cooperation between 

Amsterdam University Medical 

Center, KLM Health Services, and Kenya 

Airways; 

• Aviation Without Borders – supporting 

regional and international medical 

transports in and from/to Africa; 

• Medical Knowledge Institute – handling 

health and sanitation in the townships 

in South Africa by deploying 

health workers; 

• Aflatoun – offering educational programs 

worldwide; 

• Get It Done – a social media fundraising 

network with many appealing projects 

set up by passionate youngsters; 

• Close the Gap – a Belgian nonprofit 

organization working to shorten the 

distance between developed and developing 

nations in terms of computer 

hardware and know-how. They support 

76 projects in 16 African countries. 

The computers are used mainly for 

education, but information and communication 

technologies are used for 

education and awareness programs 

and for HIV/AIDS prevention. With 

the opening of an e-waste facility in 

Nairobi, Close the Gap computers are 

sustainable and certified to be dismantled 

for reuse of metals and materials, 

thereby providing jobs for the local 

community. 

Flying Blue members are invited to 

donate their frequent flyer miles to 

NGOs selected by Air France and KLM 

AirCares. In 2012 there were 64 million 

miles donated to all social partners 

combined. 

For more information, please visit 

the following websites: 

www.airfrance.com 

www.klmtakescare.com 


75


Ayeyarwady Bank’s 

Commitment to the 

Community 

By May Myat Thu, Ayeyarwady Bank 

AYA Bank 

Ayeyarwady Bank commits to making the United Nations Global Compact’s Ten Principles 

part of its strategies and practices, focusing on fulfilling corporate social responsibility 

toward the communities it serves. 

In a rapidly-changing world with high 

population growth, it is apparent that 

the impact of our activities and actions 

are being felt in more ways than it was 

before. The implications of this change 

for the business arena are indeed overwhelming, 

as there are needs and expectations 

of society that businesses 

may have to consider and respond to. 

Attitudes of businesses and their relationship 

with society are therefore shaped 

by society’s diverse needs. 


Good Practice 

Human Rights 

Ever since its inception in August 2010, 

Ayeyarwady Bank has recognized that 

the mere existence of the organization 

and the operations it engages in impact 

on the communities at large. With its 

mission to be a leading bank in the 

country in the long run, the Bank also 

realizes that the communities plays an 

important role for the Bank in achieving 

its sustainable growth. Hence, one 

of the priorities for Ayeyarwady Bank is 

its commitment to be a positive force in 

the communities in which it operates 

by contributing to the people and their 

communities as a whole. As the Bank’s 

slogan “Your Trusted Partner” states, the 

Bank endeavors to be a trusted partner to 

the people and the communities for their 

banking and financial needs as well as 

to be a partner that those communities 

can reach out to. 

Ayeyarwady Bank invests a significant 

amount of time and funds into various 

social initiatives that the Bank’s 

workforce actively participates in. In a 

country such as Myanmar, which has 

spent many years in isolation, there 

are still numerous areas left underdeveloped. 

Therefore, the focus of Ayeyarwady 

Bank for the past two years has 

been on developing and improving the 

healthcare sector in the country. As the 

saying goes, “health is wealth,” and only 

the healthy will be able to work hard 

and contribute to society and help the 

economy to grow. 

Ayeyarwady Foundation to 

represent Ayeyarwady Bank 

Keeping the need to contribute to society 

in mind, Ayeyarwady Bank has created a 

foundation that aims to improve the social 

and living standards in the country – 

Ayeyarwady Foundation will represent 

all of its CSR activities. Every year since 

its inception in 2010, Ayeyarwady Bank 

has contributed to society through the 

Foundation, which aims to support the 

development of the country in the education, 

healthcare, social, sport, as well 

as religious sectors, with a specific focus 

on the healthcare sector. 

Ayeyarwady Bank and the 

United Nations Global Compact 

After just two years in operation, in August 

2012 Ayeyarwady Bank became a 

participant of the United Nations Global 

Compact (UNGC) initiative. This was a 

corporate milestone for Ayeyarwady 

Bank, which is the first bank in Myanmar 

to commit to making the Ten Principles 

of the Global Compact part of its business 

operations and strategies. Incorporating 

the Ten Principles into the Bank’s business 

strategies and operations required 

redesigning corporate policies as well 

as restructuring. 

Yankin Children’s Hospital – 

Our very first contribution 

Ayeyarwady Bank’s first and foremost 

activity for helping to develop the 

healthcare sector started with the donation 

of a 550-bed children’s hospital 

in Yankin Township, Yangon, Myanmar. 

Ayeyarwady Bank, along with its parent 

company Max Myanmar Group of 

Companies, contributed to the donation 

of the Yankin Children’s Hospital. 

Complete restoration work was done on 

a former government building, which 

was converted into a hospital with modern 

facilities and all the required medical 

equipment. The completed hospital 

was then handed over to the relevant 

authorities in March 2011. 

Ayeyarwady Bank’s contribution to the 

Yankin Children’s Hospital was not just 

a monetary gesture. The Bank’s involvement 

will continue through its role in 

handling the regular maintenance and 

upkeep of the hospital: The Bank’s workforce 

has been actively engaged in weekly 

voluntary services at the hospital to help 

with the maintenance and upkeep of the 

hospital compound. 

In addition, the Chairman, the Board of 

Directors, and the Bank’s management 

team have also paid occasional visits to 

the hospital and its residents to ensure 

that equipment is in working order and 

to provide any necessary assistance. Plans 

are also under way with a number of 

CSR activities to celebrate the second 

anniversary of the Yankin Children’s 

Hospital in March 2013. 


77


Ayeyarwady Bank donates 

ambulances 

The country’s healthcare sector needs 

much help in terms of premises, facilities, 

equipment, etc. To play a part in 

contributing to the sector, Ayeyarwady 

Bank donated a total of six ambulances 

on different occasions – two to the 

Yankin Children’s Hospital and four to 

the Ayeyarwady region. These activities 

were all sponsored by the Ayeyarwady 

Foundation. 

Our blood donation drives 

“Give life, give blood” – everyone at 

Ayeyarwady Bank strongly believes and 

practices this. 

Many times, lives are lost because there 

is not enough blood, or because the 

required blood type is not available. Ayeyarwady 

Bank employees help those 

in need and spare no expense, even 

if it means giving their own blood as 

proud donors. 

In March 2011, when Ayeyarwady Bank 

and the Max Myanmar Group of Companies 

jointly donated the Yankin Children’s 

Hospital through the Ayeyarwady 

Foundation, the Bank initiated its very 

first blood donation drive. The overwhelming 

response proved further the 

spirit of employees at Ayeyarwady Bank – 

we are ready to help. 

In cooperation with the National Blood 

Bank, the Ayeyarwady Bank organized 

its second blood donation drive in early 

2013 at the very hospital they had donated. 

It was also on this special occasion 

that there was an urgent need for A-type 

blood for an emergency operation for a 

child in one of the wards. As the A-type 

blood donor at the event recalled: “It 

was indeed a really memorable moment 

for me, to know that my blood is giving 

life to a teeny weeny little girl who 

was fighting for her life.” The event has 

proved to be even more successful as the 

size of the workforce has grown, as has 

the number of caring and giving hearts. 

This successful event has spurred Ayeyarwady 

Bank to continue to focus on 

more such CSR activities to give to those 

in need. Ayeyarwady Bank has since 

planned to carry out regular blood donation 

drives on a biannual basis to help 

fulfill its corporate social responsibilities. 

Ayeyarwady Bank goes beyond the 

healthcare sector 

After its contribution in the healthcare 

sector, Ayeyarwady Bank began working 

toward contributing to society in times 

of need. Having witnessed the aftermath 

of Cyclone Nargis, which hit the country 

in 2008, Ayeyarwady Bank began placing 

great emphasis on extending help 

to those in need – the people affected 

by the aftermath of natural disasters. 

Floods across Myanmar 

Ranked first as the “most at risk” in Asia 

Pacific, according to the UN Risk Model, 

Myanmar is exposed to various natural 

disasters such as floods, cyclones, etc. In 

October 2011, heavy floods hit central 

Myanmar, in Magwe Division, destroying 

more than 3,500 homes and 5,400 acres 

of crops. More than 30,000 people were 

affected. In response to this unfortunate 

event, Ayeyarwady Bank stepped in to 

provide for the victims of the flood – one 

of the Bank’s CSR activities in looking 

after the social welfare of people. Ayeyarwady 

Bank offered cash donations to the 

victims of the flood while they were in 

their temporary shelters. 


Good Practice 

Human Rights 

In August 2012, Myanmar was hit yet 

again by floods across different states. 

The floods displaced more than 80,000 

people, affecting a total of more than 

287,000 people. Ayeyarwady region was 

the worst hit, affecting and displacing 

about 48,000 people and destroying 

more than 136,000 acres of farmland, 

houses, roads, and bridges. Representing 

the Bank, Ayeyarwady Foundation 

generously offered donations in cash and 

in-kind for the affected victims. 

Extending reach to victims of 

internal conflicts 

Ayeyarwady Bank is aware that there 

are many people across the country in 

need of help – some of which include 

the victims of internal conflicts within 

the country, thus extending our CSR 

further. It is apparent that Myanmar, a 

country made up of many ethnic groups, 

is still experiencing internal conflicts, 

such as those in the states of Kachin and 

Rakhine. Reaching out to the victims of 

such conflicts naturally became one of 

our priorities. 

The conflict in Rakhine State 

The Rakhine conflicts and riots – caused 

by clashes between ethnic Rakhine and 

the Rohingya – has displaced more than 

100,000 people since it started in June 

2012. Buildings were set ablaze during 

the riots, burning down more than 4,000 

houses. Once again representing the 

Bank, Ayeyarwady Foundation stepped in 

to help the affected victims. Management 

personnel from Ayeyarwady Bank and 

the volunteers from Ayeyarwady Foundation 

went to the temporary displacement 

camps to offer victims donations in cash 

and in-kind, such as medical supplies 

and dried food stuffs. 

The Kachin conflict 

Many civilians in the Kachin region are 

also affected by the conflicts among the 

ethnic groups. The fighting and shootings 

have forced these civilians to flee from 

their homes and take up accommodations 

in the temporary displacement 

shelters set up by many humanitarian 

groups across the state. In an attempt 

BANK INFO 

(As of April 2013) 

• Obtained license to operate 

banking services in July 2010 

from the Central Bank of 

Myanmar. 

• Commenced operations with 

the opening of its first Head 

Office in Naypyitaw, Myanmar’s 

new capital, in August 2010. 

• Current number of branches 

is 34, with a staff of more than 

1,500 across the country. 

• Number of ATMs across the 

country: 50. 

• A member of the Association 

of Banks in Myanmar, SWIFT, 

and an active participant in the 

United Nations Global Compact. 

to reach out, Ayeyarwady Foundation, 

once again representing the Bank for 

its CSR activities, went to a number of 

these shelters in December 2012 to offer 

much needed food supplies at the camps. 

The glimpses of hope in people’s eyes at 

the sight of the donors showed just how 

much support they needed. 

Ayeyarwady Bank and its workforce 

By helping to improve the lives of those 

in society does not mean that Ayeyarwady 

Bank neglects those in its workforce. 

Ayeyarwady Bank also reaches 

out to its current workforce of more 

than 1,500 employees across the country 

by having welfare funds allocated, by 

providing transport arrangements to 

ease their travels to and from work, as 

well as by providing for lunch during 

their workdays. These little acts have 

been well-appreciated by the employees 

and, hence, the employees are happy to 

be actively engaged in all of the Bank’s 

corporate social initiatives. 


79

Bayer 

Combating Child Labor in 

the Supply Chain in India 

Child labor cannot simply be eliminated by decree. To this day it remains deeply rooted in 

many societies. In particular, subsistence farmers still frequently resort to child labor to 

manage their fields. Implementing the effective abolition of child labor may be laborious 

and time-consuming for businesses if child labor is the norm. Yet pursuing this approach 

is worthwhile in every way, as shown by an example from India. 

By Steffen Kurzawa, Bayer 

In India child labor can still be found in 

many parts of everyday life. Some years 

ago, the International Labour Organization 

(ILO) found that the subcontinent 

has the highest number of working children 

worldwide, with an estimated 5.6 

million working in agriculture alone. 

In the face of this enormous social challenge, 

can companies make a meaningful 

contribution at all? 

Bayer in India has now been focusing 

on this question for more than 

10 years. In 2002, the company’s agricultural 

business unit, Bayer Crop- 

Science, acquired an Indian company 

that was active in seeds. In areas such 

as the states of Andhra Pradesh and 

Karnataka – where child labor is particularly 

widespread – contract farmers 

were growing cotton seeds on behalf of 

the newly acquired company. Bayer – 

one of the first companies to become a 

participant of the UN Global Compact – 

had long attached great importance to 

respecting ethical principles, including 

in the supply chain. In line with one of 

the Ten Principles of Global Compact, 

namely that businesses should uphold 

the effective abolition of child labor, it 

became clear very soon after the takeover 

that child labor among the contract 

farmers was a significant issue. 

A steep learning curve 

Apart from all the other arguments 

against child labor, it robs children of 

almost all educational opportunities and 

thus a range of possibilities to determine 

their own lives. Yet implementing the 

ban was easier said than done. What 

evolved out of a steep learning curve 

was probably one of the most comprehensive 

sustainability projects in Bayer’s 

150-year history: the Bayer CropScience 

Child Care Program. 

But let us start at the beginning: Soon 

after the local Indian seed company 

Proagro had been taken over by Bayer as 

part of the larger international acquisition 

of Aventis CropScience, a potential 

child labor issue at Proagro was raised 

by nongovernmental organizations. And 

our Indian seeds unit was subject to 

critical scrutiny. Later, key institutional 

investors called for more information 

on how Bayer intended to combat child 

labor among contract farmers in India. 

Initially, Bayer started working together 

with industry partners that were facing 

similar problems. That resulted in the 

foundation of the Child Labor Elimination 

Group (CLEG) under the Association 

of Seed Industry, which in particular 

used communication strategies in an 

effort to persuade farmers to dispense 

with child labor in the future. Bayer 

also developed initial strategies to create 

economic incentives, with farmers receiving 

bonuses for complying with the ban. 

Yet because no significant progress was 

made with the CLEG program, Bayer 

decided to proceed alone in taking action 

against child labor. It became increasingly 

clear that more comprehensive 

approaches with a longer-term impact 

were necessary to bring about a real 

change in mentality in village communities. 

Thus the Bayer CropScience Child 

Care Program was launched in 2007. The 

program extends far beyond abolishing 

child labor. Besides a contractual ban 

of child labor, it includes monitoring 


Good Practice 

Human Rights 

and control as well as an incentive and 

sanction scheme. Moreover, it focuses 

on: engaging local people and combining 

initiatives to improve education in 

local governmental schools; increasing 

awareness about working the fields profitably 

without resorting to the use of 

children; knowledge transfer concerning 

sustainable crop production; vocational 

training opportunities for children; as 

well as communication strategies to raise 

awareness of the problem among parents. 

Child labor virtually eliminated 

A dedicated team within Bayer was 

formed to put this comprehensive program 

into practice, which has since 

proven a great success. The latest figures 

from December 2012 show how 

many people the program has reached 

to date: In 2006, an average of around 

0.6 children per acre were still being 

employed on the fields of suppliers – a 

figure that was, however, already well 

below usual practice among Indian cotton 

seed companies. In the 2012/2013 

main season, only 21 isolated cases were 

noted on the 3,898 acres in total managed 

by suppliers. Sanctions were applied 

against these immediately. The number 

of children as a proportion of the total 

workforce thus went down dramatically 

to 0.03 percent. 

Ultimately, the Bayer CropScience Child 

Care Program can be described as a genuine 

win-win situation for all involved. 

Children now receive education instead 

of having to work in the fields, giving 

them a better start in life. Farmers acquire 

a substantial volume of know-how 

to improve their cultivation methods, 

which has resulted in a better quality 

of the seeds produced, among other 

benefits. Last but not least, research has 

shown that farmers’ earnings tend to be 

higher because they can harvest more. 

Bayer itself draws positive results from 

the closer and more efficient collaboration 

with the farmers. However, the 

highest benefit lies in the fact that the 

company helps combat child labor and 

is thus living up to its own values and 

the expectations of society and investors 

– in India and worldwide. 

With this program, Bayer is the first 

company to have achieved a lasting impact 

in tackling child labor in India – a 

commitment that was highlighted for 

instance in the 9 th Human Rights Report 

of the German Federal Government. Seeing 

the Child Care Program succeed was 

a priority for Bayer CropScience, and the 

Executive Committee has actively supported 

it as a core sustainability program. 

We are convinced that, with such an 

initiative, we can make a key contribution 

to eliminating child labor and at 

the same time help improve the lives of 

Indian cotton farmers and their children. 

That is why we have extended the Bayer 

CropScience Child Care Program to other 

crop cultivation areas in India. 

A package of 

measures against 

child labor 

What are the details of the Bayer 

CropScience Child Care Program? 

The following measures have been 

implemented so far: 

1. Contractual ban on child labor 

2. Regular visits to areas under 

cultivation to check ages 

3. “Learning for Life” education 

opportunities 

4. Raising awareness of the 

problem 

5. Incentives for farmers 


81


60 Years of Contributing 

to the Communities 

By Tony Awad, Consolidated Contractors Company 

Sixty years of continuous giving that is rooted in the beliefs and values of the founders is 

what distinguishes CCC and makes it unique among other companies. Even before the term 

“corporate social responsibility” became quite popular in recent years, the CCC founders 

put giving and care for the communities, employees, and their families as some of their 

core values, which they have been practicing throughout the history of the company. Their 

continuous giving to their communities, employees, and their families has left its mark on 

the thousands of people who have felt their support throughout the years. Their compassion 

and philanthropic deeds may have grown out of the hardships they experienced in their 

early years; however, becoming one of the most affluent companies in the world had just 

multiplied these humanitarian acts. 

CSR is an integral part of the 

CCC corporate vision 

CCC’s corporate social responsibility 

initiative undertakes the role of “corporate 

citizenship” to ensure that business 

values and behavior are aligned. They 

should be balanced between improving 

and developing the company’s business 

as well as improving the quality of life of 

its workforce, their families, local communities, 

and societies at large. 

CCC’s CSR initiative 

CCC’s corporate social responsibility 

philosophy originated from the founders’ 

strong belief that the company has an 

obligation toward its shareholders, employees, 

clients, partners, subcontractors, 

and society. CCC does not exist merely 

to make a profit, but rather to improve 

the livelihoods of the more than 120,000 

families of its employees, as well as to 

serve the societies and the countries in 

which CCC has an operational presence. 

CCC’s CSR policy is guided by the company’s 

strong and ethical family values 

and traditions. They are an integral part 

of its Corporate Vision, which ensures 

that its business values and behavior 

are aligned with its Mission Statement; 

Company Core Values, Guiding Principles, 

and Code of Practice; Health, Safety, 

and Environment Procedures; and Human 

Resources Procedures. 

CCC’s CSR contributions to the 

communities 

Over the years, CCC has participated and 

contributed generously to the countries 

and communities in which CCC has 

operated and passed through. CCC has 

engraved its humanitarian and philanthropic 

footprints in support of social 

development, health, and education 

through contributions that have come in 

the form of monetary donations and inkind 

participation. A few examples are: 


Good Practice 

Human Rights 

CCC Kazakhstan visits needy communities 

to provide food packages and clothing. 

Clothing Donation Campaign 

in Greece 

In Greece: 

In Egypt: 

In Jordan: 

It was 36 years ago that CCC moved the 

managing offices of the Group to Athens, 

Greece. Over the years, the management 

and employees have become closely connected 

to the local communities. In continuation 

of the CSR initiatives, the CSR 

Committee in Athens has continued to 

extend a supporting arm to communities 

that have been badly affected by the 

prevailing financial crisis in Greece. The 

NGOs, charities, and institutions that 

have benefitted from these campaigns 

included Medecins Du Monde / Doctors 

of the World; SOS Children’s Village; various 

municipalities; retirement homes; 

orphanages; kitchens offering meals 

for homeless persons; facilities offering 

shelter for refugees and homeless 

individuals and families; schools; clinics; 

and various other needy causes. 

The contributions and sponsorships have 

consisted of providing specific necessities, 

including – but not limited to – food 

stuffs; medicines and medical equipment; 

clothing and blankets; kitchen equipment; 

blood donation campaigns; PCs 

and various materials. Generous contributions 

have also been made to the Greek 

Association of Women with Breast Cancer. 

CCC Egypt has provided continuous help 

to the local communities in Egypt by 

donating food packages containing basic 

necessities such as rice, sugar, oil, flour, 

salt, and dried vegetables to affected 

communities – mainly daily laborers 

and their families. These food drives are 

periodically repeated to cater to the needs 

of various NGOs, charities, and institutions 

that fall below the poverty level. 

Blood donation campaigns are regularly 

organized to support local hospitals. 

In Kazakhstan: 

CCC Kazakhstan has set up a program 

whereby visits are made to different orphanages, 

retirement homes, and needy 

communities to provide food packages, 

clothing, and entertainment for the elderly 

and orphans on a monthly basis and 

during national and religious holidays. 

In Turkmenistan: 

CCC Turkmenistan periodically contributes 

food packages and clothing to 

retirement homes, orphanages, and institutions 

to help support the needs of 

the local communities. 

CCC Jordan provides regular financial 

and in-kind contributions and donations 

to various charities and NGOs, organizes 

blood donation campaigns, and is a main 

supporter of the King Hussein Cancer 

Foundation. 

Above: CCC Turkmenistan periodically 

contributes food packages and clothing to 

support the local communities. 

Left side: Blood donation campaigns 

are regularly organized to support local 

hospitals in Egypt. 


83


Building Awareness and 

Going the Extra Mile: 

Human Rights in Focus 

By Green Delta Insurance 

Marches With Time 

As the foremost non-life insurance brand of Bangladesh, 

Green Delta Insurance has many responsibilities to fulfill 

when it comes to CSR. Participating in activities for the 

betterment of our environment, Human Rights, culture, 

sports, and society in general has been a prominently visible 

trait of the company. The history concerning CSR at Green 

Delta Insurance goes back years – to a time before CSR 

became the catch-all concept it is today. 

The Ten Principles set by UN Global Compact 

have always been given importance. 

In previous years, Green Delta Insurance 

Company (GDIC) has emphasized 

environmental issues, labor rights, and 

safety issues through its communication 

tools. Many issues regarding Human 

Rights have also been dealt with. For 

2013, GDIC took the initiative to focus 

primarily on Human Rights, with an 

eye on the rising concerns surrounding 

this sector – although it is not the first 

time that GDIC has contributed toward 

the improvement of Human Rights in 

Bangladesh. Some of the initiatives led 

by GDIC in the previous years have been 

the rehabilitation of the freedom fighters 

and women oppressed during the independence 

war; wheelchair distribution 

for the war-wounded freedom fighters; 

support for the family of a slain police 

constable; and sponsorship of a children’s 

day program to nurture hidden 

talents among the little ones. 

The management as well as the Corporate 

Affairs and Communications department 

sensed the need for showcasing elements 

of Human Rights through innovative 

means to create awareness among the 

people. The idea was to do something 

creative that would trigger people’s inner 

conscience. The biggest challenge was 

to deliver the messages clearly without 

showing violent images, but to also show 

appropriate visuals as well. The GDIC team, 

with the help of its creative agency, came 

up with the idea to use “shadow puppetry” 

to portray elements of Human Rights in 

a metaphoric manner. This idea was set 

to debut in 2013. Shadow puppetry, or 

“shadow play,” is an old form of storytelling 

used usually for entertainment purposes. 

It creates the impression of moving objects 

or three-dimensional human figures. We 

wanted to tell a story about the shadowy 

parts of our society, where values and 

rights are neglected and often violated. 

Out of the many articles on Human 

Rights set by the UN, 12 were chosen for 

12 months of the year. They were: 


Good Practice 

Human Rights 

1. All are equal before the law and are 

entitled – without any discrimination 

– to equal protection of the law. 

2. Everyone is entitled to all the rights 

and freedoms set forth in this declaration, 

without distinction of any kind, 

such as race, color, sex, language, 

religion, political, or other opinions; 

national or social origins; property; 

birth; or other status. 

3. Everyone has the right to freely and 

peacefully assemble and associate. 

4. No one shall be held in slavery or 

servitude; and the slave trade shall 

be prohibited in all its forms. 

5. No one shall be subjected to torture 

or to cruel, inhuman, or degrading 

treatment or punishment. 

6. Everyone has the right to life, liberty, 

and security. 

7. Everyone has the right to a nationality. 

8. Men and women of full age, without 

any limitations due to race, nationality, 

or religion, have the right to marry 

and to found a family of their own. 

9. Everyone has the right to own personal 

property as well as in association 

with others. 

10. Everyone has the right to freedom of 

thought, conscience, and religion. 

11. Everyone has the right to freedom 

of opinion and expression. 

12. All human beings are born free and 

equal in dignity and rights. They are 

endowed with reason and conscience 

and should act toward one another 

in a spirit of brotherhood. 

Keeping all 12 articles in mind, a photo 

shoot was organized. The creative agency 

arranged sets for all 12 visuals for 12 pages 

of the calendar. It was undoubtedly a 

difficult but fascinating task to come up 

with “state of the art” outputs, since the 

concept of shadow puppetry is still new 

in Bangladesh and using this in a calendar 

was something no one in Bangladesh had 

done before. When the final version appeared, 

we were happy with the results. 

People from all walks of life responded 

positively. Especially the clients, large 

corporate entities, NGOs, and humanitarian 

organizations fully appreciated 

the concept and initiative and expressed 

their whole-hearted gratitude. After the 

success of this project, GDIC decided to 

run CSR-based campaigns regarding Human 

Rights in 2013. The calendar was 

an awareness-building project, whereas 

future projects are aimed at bringing 

direct and positive changes to the lives 

of the victims. Some activation plans are 

already in the pipeline. These projects will 

emphasize women’s rights and women’s 

empowerment as well as other related issues. 

Green Delta has already offered its 

sponsorship to the Bangladesh Women 

Chamber of Commerce and Industries for 

some of their upcoming projects. 

The current state of Human Rights in 

Bangladesh is a much talked about topic 

these days, from both national and international 

points of view. Bangladeshi 

security forces are constantly being criticized 

by Amnesty International and Human 

Rights Watch. The abuse of children 

and women is alarmingly high and on 

the rise, as are attacks on minority communities. 

With support from a number 

of political parties, terrorists are committing 

heinous acts in the name of religion. 

Negative elements always seem to be 

on an upward trend and prominently 

highlighted, whereas positive actions 

largely go unnoticed. Green Delta Insurance 

plans to stick with positive actions 

while making people aware of Human 

Rights through their communication 

tools. The awareness-building programs 

and CSR of Green Delta go beyond the 

idea of doing better business in the future 

– rather, they highlight the need 

to build a better society for our future 

generations. 


85

Medcom 

Mundial del Barrio 

By Lilinés Urriola Herrera, Medcom 

In 1997, after his social reinstatement, community leader 

Hector Brands decided to start a summer soccer league in the 

small town of San Felipe. The league comprised four teams 

with 70 kids from that area. The purpose of the league was to 

try to occupy the participants’ spare time during the summer 

and to keep them from violence and the use of drugs present 

in that area of the city. It was through soccer that the children 

and young adults started learning about peaceful coexistence, 

tolerance, and the benefits of living without violence. 

Because of this league, there was a movement 

started that became well respected 

by civil society. Today, Movimiento Nueva 

Generación – MNG (New Generation 

Movement) is a nongovernmental organization 

that handles the project called 

Neighborhood World Cup in its entirety. 

The main objective of this project is to 

develop activities under an overall scope 

of prevention that are geared toward 

children and adolescents living in socially 

vulnerable and violent environments. It 

also highlights moral and ethical values, 

including the International Children’s 

Rights Law, and contributes to society 

with the education of future community 

leaders for a peaceful culture. 

In 2013, there were 49,060 crimes and 

misdemeanors of all types that were 

reported in Panama for the year 2012, 

according to the National Integrated 

System of Criminal Statistics, which 

belongs to the Office of Public Security. 

Furthermore, other studies presented by 

this office have shown a direct correlation 

between delinquency and population 

density, which means there is more 

crime in urban areas such as San Felipe, 

which is a small municipality adjacent to 

the metropolis that Panama City has now 

become. There are many communities 

similar to San Felipe in which kids are 

more likely to follow a violent pattern 

of living due to population densities and 

poverty levels. 

For more than 10 years, the soccer league, 

previously called Summer Cup, kept 

expanding in San Felipe as an interneighborhood 

league. It was installed 

two years after its creation in the popular 


Good Practice 

Human Rights 

neighborhood of El Chorrillo, which became 

famous after being almost wiped 

out by the tragic bombings of the United 

States during Operation Just Cause in 

1989 before being reconstructed by 

subsequent administrations after the 

Manuel Noriega dictatorship. In 2007 

Hector Brands presented the project to 

the UNICEF Panama director at that time, 

who agreed to be a sponsor for three consecutive 

years, calling it then “UNICEF 

Cup.” That same year, more neighborhoods 

were included, such as Santa Ana 

and Curundu, which are still socially 

vulnerable places. In 2009 the “UNICEF 

Cup” had around 3,000 participants. In 

2010 Medcom engaged with UNICEF 

to create a bigger inter-neighborhood 

league, expanding it to other provinces, 

changing its name to what it is now, 

Neighborhood World Cup, and bringing 

it to the national level, with participation 

by 4,500 kids in its first season. 

As Medcom became the main organizer 

along with MNG, the project has 

been featured on national television 

by station RPCTV, which broadcasts 

news and sports. Medcom is a multimedia 

corporation composed of five 

television networks (two broadcasted 

nationally and three broadcasted by 

cable), two radio stations as well as the 

most important internet platform in 

Panama: telemetro.com. The alliance of 

both entities allowed for the inclusion 

of new sponsors, which made possible 

to transmit the games nationally. This 

served as an important motivator for 

the kids to stay in the league, which 

has strict rules, specifically regarding 

discipline and attendance. 

The Neighborhood World Cup is the 

only league in the country that is free 

for all the participants. In 2011 there 

were 5,070 boys and girls participating, 

from which 3,000 were granted 

scholarships by the Institute for the 

Education and Use of Human Resources, 

a government agency. 

Aligned with Medcom’s corporate social 

responsibility strategy, this project adheres 

to the principles included in the 

Declaration of the Rights of the Child 

regarding the areas of health, the use 

of spare time, and protection – it is 

all linked to the sporting activities, instruction 

of values, and the prevention 

of drugs and violence. Currently, and 

ever since UNICEF assumed the project, 

the Neighborhood World Cup has 

linked football with the teaching and 

practice of values. It trains team directors 

and the children on topics such 

as leadership, self-esteem, children’s 

rights, family values, drugs and violence, 

communication, and teamwork. 

In 2011 there were a total of 576 hours 

of formal training, with 15-minute 

preparatory lessons before each game. 

For the last two years, the project has 

had record-breaking participation all 

across the country: 5,834 beneficiaries 

in 2012 and 6,900 in 2013. 

As in many other countries, soccer is 

the most popular sport in Panama and 

attracts a great number of fans. Because 

of its influence on the people, Panama’s 

national team and professional soccer 

club players have become role models 

for the children, primarily in low-income 

communities. In the 16 years since the 

project’s inception, some of the program’s 

graduates have become players 

on the national teams in the professional 

leagues. This project has become the largest 

soccer school in the country – not 

only because of the teaching of soccer, 

but also because of the education as a 

whole, and the hope is that it will be 

sustained for many more years. 

The soccer school’s primary objective 

has always been to prevent violence and 

to provide its participants with a better 

future, both personally and socially. Each 

game that is broadcast also features an 

individual case that takes into consideration 

the outstanding participation of one 

player. The case is chosen by evaluating 

all the team players, not only their social 

backgrounds and outstanding sporting 

skills, but also their personal development 

regarding values and economic 

needs. In recognition of the efforts of 

the chosen player, a sponsor is selected 

and offers a financial contribution for 

the player and his or her family. 


87

Novo Nordisk 

Changing the lives of 

10,000 children 

By Scott Dille and Camilla Crone Jensen, Novo Nordisk 

Living with type 1 diabetes is challenging – even more so for children in developing countries, 

where having diabetes puts their lives at even greater risk. 

Persons with type 1 diabetes must adhere 

to daily injections of insulin to replace 

the insulin that their pancreas is unable 

to produce. Self-discipline – including 

sticking to a balanced diet and monitoring 

blood glucose levels – is essential 

to preventing dangerously high or low 

blood sugar levels. On top of all this, 

persons with type 1 diabetes need to 

make sure they get regular exercise. 

For a child with type 1 diabetes, parents 

and healthcare professionals are essential 

to support their health and well-being. 

But in many parts of the developing 

world, this support is hard to come by. 

As the world leader in diabetes care, Novo 

Nordisk saw a need to leverage its competences 

and responsibility to take action. 

In 2009, the company launched the 

Changing Diabetes® in Children program 

to improve the lives of children with type 

1 diabetes in developing countries. In 

March 2013, the program surpassed its 

2015 goal of enrolling 10,000 children. 

Today, thousands of children are receiving 

the support and treatment they need 

to live normal, healthy lives. 

Diabetes in children 

Type 1 diabetes is a lifelong disease that 

often occurs at a young age, and its prevalence 

is rapidly increasing in children 

and adolescents in many countries. The 

International Diabetes Federation estimates 

that there are 490,000 children 

under the age of 15 years with type 1 

diabetes in the world. Around half of 

them live in developing countries. 

In the developing world, there is a high 

mortality rate for those with childhood 

diabetes. In sub-Saharan Africa, the life 

expectancy for a child with newly diagnosed 

type 1 diabetes is typically less 

than one year. 

Barriers to proper care for children 

in developing countries 

Diagnosing type 1 diabetes is the first 

crucial step. But in the developing world, 

healthcare professionals are lacking 

awareness about the symptoms that can 

lead to neglected cases or misdiagnosis. 

In many cases, the symptoms of type 1 

diabetes in children resemble symptoms 

of common acute medical conditions encountered 

in many developing countries, 

such as cerebral malaria. 

For the family, having a child diagnosed 

with diabetes can bring an overwhelming 

financial and emotional burden. The cost 

of necessary treatment and care often 

exceeds a family’s annual income. In 

some cases children are abandoned by 

the family as they are forced to make the 

difficult choice between feeding their 

other children and using the income 

on treatment. 

Unfortunately, lack of awareness and 

the cost of treatment are not the only 

barriers. Great distances and insufficient 

travel options in rural areas make it difficult 

for families to seek medical care. 

Medical facilities, when reached, are 

short of medical equipment, supplies, 

and cold-chain storage for insulin. 

To bring down the barriers, healthcare 

professionals require better knowledge 

about diagnosing and treating diabetes 

in children, care facilities must be accessible 

and well supplied, and insulin and 


Good Practice 

Human Rights 

The Changing Diabetes® in Children 

program has six components: 

6. Insights and outcome gained through the 

program will be shared to the benefit 

of the development of healthcare systems 

in developing countries. 

1. Improvement of existing infrastructure 

and supply of equipment to 

establish clinics for the 

treatment of children 

with type 1 diabetes. 

and the training to use it. Data produced 

in this way is an invaluable source of 

information about the state of diabetes 

in these countries and how it is being 

controlled. It will contribute to an improved 

understanding of the practical 

extent of the problem and ensure that 

individual children are given access to 

desperately-needed treatment throughout 

the course of their illness. 

5. Creation of diabetes 

patient registry 

and collection of 

data for patient 

follow-up. 

4. Development of 

diabetes education 

material for children and families, 

adapted to local settings. 

education materials must be made available 

to the children and their families. 

The Changing Diabetes in Children® 

program 

For the Changing Diabetes® in Children 

program, Novo Nordisk works with national 

and international partners to 

provide immediate relief for children 

with type 1 diabetes and their families. 

Looking beyond immediate relief, the 

program builds lasting and long-term 

support through the establishment of 

clinics and training of healthcare professionals. 

Since 2009, diabetes clinics have been 

established in nine countries: Bangladesh, 

Cameroon, Democratic Republic 

of Congo, Ethiopia, Guinea, India, Kenya, 

Tanzania, and Uganda. Within each 

2. Training 

of healthcare 

professionals 

and diabetes 

educators in 

diagnosing and 

treating children 

with type 1 diabetes. 

3. Provision of free insulin 

and blood glucose monitoring 

equipment and supplies for children 

enrolled in the program. 

country, a number of satellite access 

points have been set up to offer diabetes 

monitoring and treatment. The whole 

hub-and-spoke system is coordinated at 

a central point in each country. 

Children in the program receive free 

insulin, glucometers, and strips – a 

service that continues for the duration 

of the program. 

The program gives major support to 

both the diabetes clinics and the satellite 

access points. Both are provided 

with medical equipment – including 

glucometers and strips – as well as 

storage facilities for medical supplies, 

with the support to set them up correctly. 

The clinics are given appropriate 

registry systems – developed by Novo 

Nordisk for recording blood glucose 

(HbA1c) and other monitoring data – 

An important milestone reached 

The goal set for the Changing Diabetes® 

in Children program was to enroll 

10,000 children by the end of 2014. As 

of March 2013, reports from the nine 

countries revealed that the total number 

of children receiving treatment and care 

had passed 10,000 – a little more than 

a year ahead of time. 

Today 10,119 children have been enrolled 

and a total of 77 clinics have been 

established to treat and care for children 

with type 1 diabetes. Education efforts 

have resulted in 2,700 trained healthcare 

professionals who are better equipped to 

diagnose and treat children with type 1 

diabetes and to provide education and 

support to their families. 

The Changing Diabetes® in Children 

program supports the rights of children 

with type 1 diabetes and their families 

to access the facilities and medical care 

that provides health and well-being. 

Through the program, Novo Nordisk 

aims to strengthen efforts to achieve 

Millennium Development Goal 4 by 

doing its part to reduce child mortality. 

Ensuring the long-term 

sustainability of the program 

The current Changing Diabetes® in Children 

program is expected to proceed 

until the end of 2014. Novo Nordisk is 

currently working on a sustainability 

plan for the program, in consultation 

with all involved partners, to identify 

ways to ensure the continuation of the 

provision of diabetes care for children 

on a country-by-country basis. 


89


Road Safety – 

Fundamental Right 

and Everybody’s 

Responsibility 

By Natalia Gonchar, Sakhalin Energy 

We drive and bike, walk, and even run trying to catch the 

rhythm of modern life. For most of us, traffic has become 

an integral part of our everyday routines. We take it for 

granted and do not consider the road to be a source of 

constant danger – until suddenly a car accident happens 

and we are forced to reconsider … and think. Each year 

nearly 1.24 million people die as a result of road traffic 

accidents. It means that more than 3,300 are killed on the 

road every day. 

The world community acknowledges 

danger and its complexity. At the recent 

Rio+20 UN Conference on Sustainable 

Development, a clear link was made 

between road safety and sustainable 

development. It is of critical importance 

that all stakeholders accept responsibility 

for road safety – state responsibility to 

protect its citizens, individual responsibility 

of all road traffic participants, and 

corporate responsibility of business to 

protect its employees and to contribute 

to sustainable development of society 

where it operates in. Cross-sector cooperation 

and, in a best-case scenario, 

partnership are essential. 

The participants of the Sakhalin Road 

Safety Council believe partnership helps 

to maximize existing resources and transfers 

joint efforts into long-term, efficient 

programs. The basis of such optimism is 

the fact that the partners have been working 

together for more than eight years and 

their initiatives have yielded good results. 

The Sakhalin Road Safety Council unites 

representatives of the Sakhalin Oblast 

government, the local Ministry of Internal 

Affairs and Road Traffic Safety Inspection, 

the public, and – representing the business 

sector – Sakhalin Energy. 

Safety is one of the key priorities for the 

company. During all the years of its activities, 

Sakhalin Energy has been implementing 

programs targeted at road safety. 


Good Practice 

Human Rights 

In 2004 a program was launched within 

the company aimed at raising awareness 

about the driving culture while creating 

safe conditions for the transportation of 

people and cargo. The program includes 

daily road-safety monitoring, vehicle compliance 

control, close engagement with 

contractors and subcontractors, Defensive 

Driving Training, use of the In-Vehicle 

Monitoring System, among other things. 

However, road traffic is a “multi-player 

game.” The success of a program that 

is only focused on an isolated group of 

participants – for example employees – 

will always be limited. An important objective 

of the Sakhalin Energy road safety 

program is to spread high standards for 

corporate road safety beyond the company 

and its contractors. This is implemented 

via the Sakhalin Road Safety Partnership, 

initiated by the company back in 2005. 

The first step toward the creation of a 

partnership program aimed at improving 

the situation on the roads of Sakhalin 

was the workshop arranged by Sakhalin 

Energy in March 2005. It was supported 

by the Sakhalin Oblast Government and 

the Global Road Safety Partnership, with 

the participation of more than 60 representatives 

from 25 government organizations 

and businesses. 

In June 2005, the Sakhalin government, 

the Ministry of Internal Affairs, as well 

as businesses and the public joined together 

to sign the Agreement on Sakhalin 

Road Safety Partnership. This officially 

confirmed their intention to work together 

toward the improvement of road 

safety in the Sakhalin Oblast. In 2011 

the partnership was transformed into 

the Sakhalin Road Safety Council, the 

primary function of which is to build 

a platform for cooperation among the 

stakeholders and thereby create a favorable 

environment for the development 

and implementation of social projects. 

The projects should help to decrease the 

number of injuries and deaths from car 

accidents as well as the overall number 

of accidents, and encourage a culture of 

safe road behavior for all road traffic participants. 

Since 2005, the partners have 

implemented several major projects. The 

key to their success in these efforts has 

been the comprehensive support given 

by all the participants of the partnership. 

• The goal of the long-term and largescale 

seatbelt promotional campaign 

called “Choose Life – Buckle Up!” is to 

enhance the awareness of drivers and 

passengers in regards to the benefits 

of seatbelts. In different years and at 

different stages, it has included different 

components and has thus been 

continuously expanded. Since 2012 this 

project has become part of a complex 

educational and informational area of 

activities. The project is an open contest 

for the development and implementation 

of the best promotional campaign 

for the use of restraints (seatbelts and 

children booster chairs). Symbolically, 

Sakhalin Energy employees and their 

family members participate in promotion 

campaigns as volunteers. 

• The project “A Safe Road to School” 

started in 2006 due to problems concerning 

school students’ safety on Sakhalin 

roads. The goals of the project were 

to reduce the injury rate of children 

involved in car accidents; to unite the efforts 

of the road police officers, teachers, 

and parents; and to increase road-safety 

awareness in the area. Under this project, 

the schools of the Sakhalin Oblast received 

visual aids and “safe school route” 

maps indicating dangerous sections of 

the streets and roads. All the materials 

were developed after having taken local 

habits into consideration. This gave the 

students an opportunity to study traffic 

regulations using practical examples, 

and to provide insights on their actual 

daily routes. 

• The international experience shows 

that first aid provided right on the spot 

plays the main role in rescuing human 

life and preserving health. This is the 

reason why training programs should 

work to improve the awareness and 

first-aid skills of road police officers and 

nurses. First aid is a priority method, 

as it helps to reduce the occurrence of 

death and injury. The Council supported 

first-aid training seminars to help in the 

response to injuries and heart attacks. 

Each year more than 70 medics take part 

in these training seminars. Moreover, 

135 first-aid kits were granted to the 

Road Traffic Safety Inspection office 

for placement in police cars. 

• On a contest basis six Sakhalin schools 

received modern equipment for tutorial 

road safety classes. Significantly, under 

the terms of the contest, the schools 

will implement special road safety programs 

for children and parents as part 

of their normal educational activities, 

as well as organize road safety events 

for other schools. 

• “Be Bright! Be seen!” is a promotional 

project encouraging Sakhalin young 

people to wear light-reflecting stickers 

on their clothing. The main characters 

of all the promotion materials and 

events are break dancers of the group 

very popular among the Sakhalin teenagers 

and youth. 

• Over the years different events were 

arranged under The World Day of Remembrance 

for Road Traffic Victims. 

The main accomplishment of the partnership 

has been a decrease in car accidents 

and injuries. These figures are dropping 

slowly but steadily. According to the 

Road Traffic Safety Inspection office of 

the Sakhalin Oblast, when compared to 

the figures for 2011, the number of car 

accidents in the region in 2012 declined 

by 3.3 percent; the number of deaths 

decreased by 2.4 percent; and the number 

of people injured in car accidents 

dropped by 0.1 percent. 

The UN General Assembly proclaimed 

the period 2011 - 2020 as the Decade of 

Action for Road Safety. The Secretary- 

General called on States, civil society, 

business and communities to ensure that 

it will lead to real improvements. The 

Universal Declaration of Human Rights 

guarantees everyone the fundamental 

right to life, liberty and security of person. 

Should road safety be recognized as a 

part of it? To answer this is unalienable 

right and responsibility of all members 

of the human family. 


91

SK 

The Global 

Social Enterprise 

Action Hub 

By the Social Enterprise Team, SK SUPEX Council 

As social and environmental issues change and become more complex, a new approach is 

required beyond the existing efforts of governments, NGOs, and corporations to tackle global 

challenges. In this regard, social enterprises are becoming significant players in bolstering 

global sustainability and addressing social challenges in innovative and sustainable ways. 

With the objectives of creating both economic and social value, social enterprises adopt 

managerial efficiency and market mechanisms in their social operations to offer more 

customized and efficient solutions that deliver larger and more sustainable impacts. 

For social enterprises to grow, support 

from – and cooperation among – different 

players is necessary. Large corporations 

can play an especially important 

role in supporting social enterprises 

through their state-of-the-art technologies, 

financial firepower, and global networks. 

Recognizing social enterprises 

can be a vehicle to effectively deal with 

fundamental problems. 

SK’s effort to build an ecosystem for 

social enterprises 

SK has been focusing on creating a vibrant 

and robust ecosystem that supports 

social enterprises. SK has tested various 

ideas by establishing new social enterprises 

and supporting existing ones in 

Korea. SK is endeavoring to leverage its 

core competencies in supporting social 

enterprises to maximize their impacts. 

SK established Happy ICT, a social enterprise 

that offers IT training and field 

IT experiences to the underprivileged to 

help support their employment opportunities. 

Happy ICT is working to narrow 

the information gap between different 

socioeconomic classes and to build a 

social safety net in the telecommunication 

sector. SK has also transformed one 

of its subsidiaries, Happy Narae – a 

maintenance, repair, and operations 

company – into a social enterprise. As a 

social enterprise that supports other social 

enterprises, Happy Narae purchases 

products of other social enterprises, thus 

providing a healthier and broader sales 

channel. To find and nurture prospective 

social entrepreneurs, SK also launched 

a website called “Sesang,” a collaboration 

network that brings together the 

expertise of diverse sectors such as social 

enterprises, governments, and NGOs. 

Through the website, SK is consolidating 

the foundation to support social 

enterprises through information services, 

communication, and research. 

Reflecting the increasing interest of the 

UN in enhancing its partnerships with 

the private sector, the UN Global Compact 

and SK came together to launch 

an online platform to connect social 

enterprises with corporations and other 

stakeholders such as impact investors. 

At the Rio+20 Corporate Sustainability 

Forum in June 2012, which was hosted 

by the Global Compact, SK announced 

a collaborative project with the Global 

Compact called The Global Social Enterprise 

Action Hub (SE Hub), an online platform 

for social enterprises and impact 

investors. The SE Hub collaboration was 

also reiterated at the World Economic 

Forum in January 2013, and it is being 

pushed ahead as one of the Global Compact 

LEAD priority projects. The Global 

Compact and SK plan to unveil the beta 

version of the Hub at the 2013 Global 

Compact Leaders Summit and to launch 

the final version by the end of 2014. As 


Good Practice 

Human Rights 

their businesses. To provide effective 

and substantive support for these social 

entrepreneurs, the SE Hub takes an 

action-oriented approach by encouraging 

collaboration and inviting participants 

to post current sustainable development 

projects. The SE Hub seeks to support a 

range of functions such as progress monitoring. 

The platform is intended to be 

robust and will evolve to include a reporting 

element that will allow participants 

to assess the progress and performance 

of projects posted on the SE Hub. 

The SE Hub will also create an online 

community of social entrepreneurs and 

investors by providing networking and 

information-sharing channels in addition 

to matchmaking services. Through 

information and communication technology, 

all experiments in supporting 

and managing social enterprise will 

continuously evolve in order to build a 

more robust platform. 

members of the steering committee, key 

organizations including Abraaj Capital, 

Intel, World Resources Institute, UN 

Principles of Responsible Investment (UN- 

PRI), and New Ventures-Brazil will also 

play an active role in deciding policies 

and developing strategies of the SE Hub. 

An online platform to connect social 

enterprises with stakeholders 

The SE Hub is an online platform to connect 

social entrepreneurs, corporations, 

impact investors, NGOs, policymakers, 

and other stakeholders. The SE Hub aims 

to catalyze partnerships among these 

groups to co-create and scale the most 

promising solutions to global development 

challenges and to advance the UN 

Post-2015 Development Agenda. 

The SE Hub will facilitate various collaborations 

between social enterprises and 

other participants in the areas of strategic 

investment, joint venture, product development, 

incubation, and procurement opportunities. 

This participation is expected 

to help further drive the development of 

social enterprises, impact investing fields, 

and boost public interest in social enterprises 

and inclusive economies. 

To address a range of UN priorities in 

relation to the Millennium Development 

Goals and the Post-2015 Development 

Agenda, the SE Hub aims to balance 

its activities across emerging markets, 

underdeveloped countries, and OECD 

member countries. 

Action-oriented approach through 

on- and offline assistance to social 

enterprises 

In spite of innovative ideas and commitments 

to solve social problems, many 

social entrepreneurs confront difficulties 

in successfully launching and managing 

Inspiring other business 

contributions to the UN 

Development Agenda 

The growing complexity and scale of 

social problems requires the solutions to 

be collaborative rather than independent. 

Reflecting this trend, the Global Compact 

is developing the UN Global Compact 

Partnership Portal to encourage cooperation 

among UN entities, corporations, 

and other organizations in support of 

the UN Development Agenda. The SE 

Hub will be integrated into the portal. 

As one of the components of the UN 

Global Compact Partnership Portal, the 

SE Hub will contribute toward fulfilling 

the Millennium Development Goals 

through facilitating an action-oriented 

approach. The Hub is expected to provide 

new strategies and ideas in effectively 

implementing the Global Compact’s Ten 

Principles and will spur more business 

participations in other Global Compact 

issue platforms, including Caring for 

Climate, CEO Water Mandate, Women’s 

Empowerment Principles, and Children’s 

Rights and Business Principles. 


93

Teck 

Saving Lives Around the 

World with Zinc 

By Kathleen Reid, Teck 

The Zinc Alliance for Child Health (ZACH) brings together 

Canadian organizations committed to accelerating the use of 

zinc and ORS around the world to treat diarrhea, one of the 

leading killers of children. More infants die from diarrhearelated 

illnesses associated with zinc deficiency than from 

HIV/AIDS, malaria, and measles combined. 

ZACH aims to make the management of 

childhood diarrhea a key part of reducing 

child mortality. ZACH works with all 

levels of government to help ensure the 

availability of supplies and treatment 

that is affordable for families, communities, 

and the wider health system. 

Zinc Alliance for Child Health 

reaches communities in Africa 

The first partnership under ZACH was 

formed between Canadian partners the 

Micronutrient Initiative, the Government 

of Canada, and Teck in 2011. 

ZACH’s first project was launched in 

Senegal in May 2012 in support of that 

country’s Ministry of Health plan to 

dramatically scale-up zinc treatments for 

children aged six months to five years. 

The project aims to treat more than 

2 million cases of diarrhea in Senegalese 

children under the age of five over the 

next three years. Zinc and ORS treatment 

is being delivered by healthcare workers 

at 4,000 health facilities across Senegal. 

A young girl in the village of N’Gomene Keur Atou in the Thies region of Senegal waves 

a Canadian flag. The Thies region was the first in the country to scale-up zinc and oral 

rehydration salts (ORS) to treat diarrhea. 

To date, the project has supplied 39,000 

zinc treatments to health facilities and 

treated more than 8,000 cases of diarrhea 

with zinc and ORS. As a result of 

ongoing advocacy and consultation by 

ZACH, zinc and ORS are now provided 

free of charge in public health facilities 

by the Ministry of Health in Senegal. 

This is significantly improving access 

to treatment for the country’s poorest 

populations. In February 2013, ZACH 

launched two major projects in Burkina 

Faso and Ethiopia that will save more 

young lives. 


Good Practice 

Human Rights 

Zinc is fundamental for human health 

It is crucial for growth and brain development and helps fight dangerous infections, 

especially in children. Sadly, zinc deficiency affects 2 billion people worldwide 

and contributes to the death of nearly 450,000 children under five each 

year. It costs less than $ 0.50 for a 10 - 14 day course of zinc treatment and oral 

rehydration salts to treat acute diarrhea, and ultimately save a child’s life. Zinc 

treatment has been recognized as a cost-effective solution for treating acute diarrhea 

by the international community, including the World Health Organization and 

Copenhagen Consensus. 

As Canada’s largest diversified resource company and one of the world’s largest 

producers of zinc, Teck recognizes the role we can play in finding solutions to the 

global issue of zinc deficiency. We believe in strategic community investments 

that make a difference and are related to our core business. Our Zinc & Health 

programs are active in communities where zinc deficiency is a major issue. In 

2011, Teck launched the Zinc & Health program to raise awareness and contribute 

to short- and long-term solutions to zinc deficiency worldwide. Our involvement 

with the UN Global Compact has fostered the partnerships needed with multilateral 

organizations, businesses, NGOs, and governments to advance Zinc & Health. 

Through our Zinc & Health program, we are proud to be working toward the 

health-related UN Millennium Development Goals. 

The numbers cannot be ignored. Each 

year, more than 1 million children under 

the age of five die from complications 

associated with diarrhea. 

Burkina Faso: Aim to treat 7 million 

cases of diarrhea by 2015 

Sadly, nearly one in five children born in 

Burkina Faso does not see his or her fifth 

birthday. The project in Burkina Faso will 

scale-up the use of zinc supplementation 

and oral rehydration salts to treat 

childhood diarrhea across the country. 

The project will aim to treat more than 

7 million cases of diarrhea in children 

under the age of five over the next three 

years and train healthcare workers and 

caregivers on the proper treatment of 

diarrhea with zinc and ORS. 

Project components include increasing 

knowledge and awareness so that 

more caregivers, health practitioners, 

and community members recognize the 

importance of treating diarrhea with zinc 

and ORS. ZACH will work with all levels 

of government to help ensure the availability 

of supplies and treatment that 

is affordable for families, communities, 

and the wider health system. 

Ethiopia: Aim to treat 6.5 million 

cases of diarrhea by 2015 

The project in Ethiopia is focused on 

increasing awareness of diarrhea as a 

serious childhood illness, as well as increasing 

awareness that zinc and ORS 

are the treatment of choice. 

Currently, just over a third of children 

with diarrhea who are taken for treatment 

at a health post or clinic in that 

country receive oral rehydration salts, 

and zinc treatment is close to zero. Yet, 

providing both forms of treatment not 

only helps children recover from diarrhea 

faster, but can help save their lives. 

The ZACH Ethiopia project is expected to 

treat 6.5 million episodes of diarrhea in 

children under the age of five by 2015. 

Diarrhea is one of the diseases targeted 

in Ethiopia’s National Child Survival 

Strategy, which the ZACH project will 

support. The project aims to make the 

management of childhood diarrhea a 

key part of Ethiopia’s efforts to reduce 

child mortality. 

ZACH expands with a new 

partnership in India 

In April 2013, Teck announced a new 

partnership with UNICEF Canada to help 

save the lives of children in India. Nearly 

one-quarter of all worldwide deaths of 

children under the age of five occur in 

India. Many of these children die from a 

preventable cause – diarrhea. Currently, 

less than 2 percent of children with diarrhea 

are treated with zinc and ORS – a 

proven and effective form of treatment. 

Teck and UNICEF Canada’s partnership 

will improve child health in these states 

of India – Uttar Pradesh, Odisha, and 

Madhya Pradesh – by improving access 

to and use of zinc and ORS as therapeutic 

treatments for diarrhea. The partnership 

aims to save the lives of approximately 

150,000 children from 2013 - 2017, and 

50,000 lives annually by improving coverage 

of effective diarrhea treatment 

and strengthening healthcare systems 

in three regions in India. 

A simple solution to a global 

problem 

Since being launched in 2011, Teck’s Zinc 

& Health program has made significant 

progress in improving distribution channels, 

raising awareness, and educating 

others about the devastating effects of 

zinc deficiency. The program focuses on 

short- and long-term solutions organized 

around five pillars: Therapeutic 

Zinc, Zinc Supplementation, Advocacy 

and Awareness, Food Fortification, and 

Crop Nutrition. 

To learn more about Teck’s Zinc & Health 

program, visit www.zincsaveslives.com 

or follow @ZincSavesLives on Twitter. 


95

the TMS Group 

Philanthropy As an 

Integral Part of CSR 

By Jeffrey Revels, The TMS Group 

Corporate social responsibility (CSR) encompasses many different components across a 

myriad of industries in both the public and private sectors. One of the most demonstrative 

aspects of CSR involves philanthropy, which not only includes a commitment of monetary 

support, but a personal involvement in volunteerism, too. These much-cherished values 

represent the cornerstone of our year in 2012 and future CSR endeavors. 

The key concerning CSR – for business 

and community partners – is to take the 

initiative to consistently identify and seize 

opportunities to elevate the well-being 

of humanity. It further implies that our 

policies and practices must be ethical and 

transparent at all levels of operations. As 

an enterprise, we must be accountable in 

our daily work as well as to our customers, 

employees, and the communities we 

operate within. Hence, the obligation to 

pass on these philosophies and actions 

to our supply base is a fundamental and 

ethical business requirement. 

The TMS Group strategy for social compliance 

and CSR is a holistic approach that 

utilizes the combined framework and 

participation within the United Nations 

Global Compact and the Business Social 

Compliance Initiative to create partnerships 

aligned with clear and measurable 

global standards that are addressed in a 

proactive way with suppliers. This progressive 

strategy toward implementing 

ethical corporate business processes is 

part of an overall CSR philosophy that 

embodies philanthropy as a key element. 

Philanthropy and CSR are indeed mutually 

inclusive. Philanthropy for the TMS 

Group embodies the following three 

key traits: 

(A) Protection: First and foremost upholding 

human rights and the respect of 

dignity for all. 

(B) Community Service: Strengthen and 

build the community ties and social 

involvement of our suppliers. 

(C) Inspiring: Develop new and existing 

methods to advance underprivileged 

people’s socioeconomic status with 

an emphasis on access to education 

and healthcare. 

Solely addressing operational CSR issues 

within the confines of global supply 

chains does not complete a true CSR 

profile. A significant degree of social responsibility 

and compliance is inherently 

manifested within the concept of 

corporate philanthropy. “Giving back” to 

the communities in which our global operations 

reside – and to those in need – 

also represents the “true heart and commitment” 

of the corporate citizen. 

Consistent with the core values of corporate 

citizenship, the TMS Group conceives, 

promotes, and sponsors internationally-based 

philanthropic endeavors: 

Haiti: “I am Haiti” project 

The Franca Art and Fashion charity 

was founded by TMS Group CEO, Frank 

Fleischer, and his wife, Caroline. This 

charitable organization has a mission 

to promote the global-wide education, 

health, and welfare of disadvantaged 

children. 

In 2012, the charity was a key contributor 

and sponsor of the “I am Haiti” project. 

This project utilizes art created by children, 

who are victims of long-standing 

poverty and were devastated by the 7.0 

magnitude earthquake that struck Haiti 

in 2010. The children’s artwork, which 

was exhibited in several charitable art 

shows, was then transformed into an 


Good Practice 

Human Rights 

artistic fashion line of cashmere scarves. 

This process not only generated awareness 

about the plight of the Haitian 

people, it ultimately gave the children 

a voice and a creative outlet for their 

messages of survival, hope, and determination 

for a better future. 

The TMS Group collaborated closely with 

the charity regarding the production, 

sales, and distribution processes. One 

hundred percent of the net proceeds 

generated by Franca Art and Fashion 

go to building a sustainable community 

and a brighter future for the children of 

the Maranatha School and Orphanage, 

which is located in the capital city of 

Port Au Prince. 

Through dedication and tireless commitment, 

the school’s staff cares for 160 

children in a region whereby poverty 

remains pervasive. In the United Nations 

Human Development Index, Haiti 

as a nation ranks 145 th of 169 countries, 

which is the lowest ranking in the Western 

hemisphere. 

India: School rebuilding and 

sponsorship 

The TMS Group has been a long-term 

sponsor and primary contributor to the 

rebuilding of the Sacred Heart Primary 

and High School located in the Paramankeni 

Kanchipuram coastal district 

of the Chennai region of India. The 

sponsorship dates back to the devastating 

tsunami that struck throughout 

Southeast Asia nearly a decade ago. The 

Sacred Heart School and surrounding 

community were decimated. 

Through collaborative efforts with the 

TMS Group for fundraising and volunteerism, 

the school was rebuilt and has 

grown into a thriving institution. 

The school is divided into primary and 

secondary levels. Nearly 40 percent of 

the enrollment is at the primary level, 

with student ages ranging from 6 to 11 

years old. Sixty percent are enrolled in 

the combined secondary / high school 

levels for students aged 12 - 17 years old. 

An intermediate level / wing is being 

planned for ages 12 - 14 in 2014. 

Annually, the school’s student registration 

continues to grow through word of 

mouth within the adjacent communities. 

At the end of calendar year 2012, the 

student population was 424. Based on 

the current growth rate, the school is expected 

to double within the next three to 

five years. Families continue to relocate 

to the coastal fishing region in order for 

their children to enroll in the school’s 

well-structured curriculum. 

The basic education provisions throughout 

India are free. However, critical requirements 

must be provided by families 

such as: school uniforms, course materials, 

notebooks, and meals. The costs for 

these essentials oftentimes will limit a 

family’s ability to educate one or all 

of their children. Direct financial support, 

school uniforms, and computer 

equipment are all part of the continual 

provisions provided by the TMS Group 

for the Sacred Heart School. 

The positive outcomes here translate 

into increasing numbers of children in 

this community who now have access 

to free education. Upon completion of 

high school, greater opportunities are 

opening for matriculation to universities 

or trade and vocational training schools. 

Furthermore, those children who take 

advantage of the newly created pathway 

out of poverty are becoming positive 

family and community role models. 

Year 2012 synopsis 

The TMS Group has a long history of 

philanthropy and it will continue to be a 

significant hallmark of the TMS Group’s 

corporate citizenship and CSR philosophies. 

This includes not only offering 

financial support coupled with compassion, 

but emphasizing the creation of 

opportunities for socioeconomic mobility 

through individual and corporate deeds. 

All of these efforts are done with the 

expressed understanding that education 

– combined with social development – 

offers the best hope. It is the key to 

breaking the vicious cycle of poverty 

that pervades developing nations and 

disadvantaged families. 


97

Adecco Group 

The Future of Work: 

Superhumans Included 

The British broadcaster of the 2012 Paralympic Games invited viewers to “meet the superhumans.” 

More than an advertising phrase to highlight Paralympians’ sporting ability, 

it also opened minds to the unique talents and potentials of people with disabilities – 

or rather, with different abilities. As the world’s leading provider of HR services, we are 

passion ate about this ethos. Adecco helped recruit the people to work at the most inclusive 

Olympic and Paralympic Games ever. 

By Lilian Furrer, Adecco Group 

With around 32,000 employees assisting 

700,000 associates on a daily basis, we 

embrace our responsibility to uphold 

the UN Global Compact Principle 6: “The 

elimination of discrimination in respect 

of employment and occupation.” In 2012, 

our activities in this field intensified as 

we helped recruit the people to work at 

the Olympic and Paralympic Games. Our 

approach is about doing a wide range of 

ordinary things for extraordinary people, 

for the good of the economy and society. 

“Better work, better life” applies to 

everyone and the future of work means 

“superhumans included.” 

London 2012 – The most inclusive 

Games 

As the official recruitment services 

provider to the London Olympic and 

Paralympic Games, Adecco UK & Ireland 

helped the London Organising Committee 

of the Olympic Games (LOCOG) 

realize their vision to create the most 

inclusive Games ever. Lord Sebastian 

Coe, Chair of LOCOG, says, “Inclusion is 

about removing barriers to making people 

participate at every level.” Embracing 

this philosophy, we partnered with 

LOCOG to manage 218,000 applications 

and hire 8,300 people to work directly 

for LOGOC, being the people behind the 

Games. Thanks to our Diversity Tracking 

Software, we knew that 10 percent of the 

registered workforce had some kind of 

disability, which was way beyond our 6 

percent target from LOGOC. 

A Guaranteed Interview Scheme 

and the Disability Talent Pool were vital 

for this achievement. The Guaranteed 

Interview Scheme meant that if a 

disabled candidate’s curriculum vitae 

demonstrated that he or she had the 

required skills and experience for the 

role applied for, Adecco guaranteed them 

an interview and the opportunity to 

display their skills. The Disabled Talent 

Pool was created by Adecco and used by 

LOCOG’s Diversity and Inclusion Team. 

It gave disabled people who initially 

missed out on a position the possibility 

to be considered for other opportunities. 

Adrian Cross, COO Hyphen, Adecco 

Group UK & Ireland says, “Our diversity 

deliverables demonstrate what can be 

achieved when the right stakeholder 

cooperation – supported by robust systems 

and processes – are implemented. 

The fact that Adecco and LOCOG jointly 

worked to deliver and overachieve on 

the key elements of the government’s 

diversity targets is widely recognized as 

ground-breaking.” 

The IPC Academy Inclusion Summit 

To support one of the goals of the Paralympic 

Games, which is to promote inclusion 

in our wider society, Adecco joined 

forces with the International Paralympic 

Committee (IPC) to organize the IPC 

Academy Inclusion Summit, which took 

place between September 6 and 8, 2012, 

in London. Speakers included Organising 

Committee of the Olympic and Paralympic 

Games (OCOG) representatives, 

companies such as Adecco and British 

Airways, as well as Paralympic athletes 

sharing their view on what the benefits 

of inclusive and accessible societies are by 

exemplifying the Paralympic Games as 

a catalyst for societal change. Attendees 

included more than 100 people from 

around the world representing governments, 

disabled people’s organizations, 

businesses, and the International Labour 

Organization. In his opening speech, IPC 

President, Sir Philip Craven, set the stage 

with a clear message: “London 2012 is 

98 


Good Practice 


a continuous legacy. We must drop the 

word disabled and make ability and accessibility 

the main topics.” 

Adecco Group CEO, Patrick De Maeseneire, 

highlighted both the economic 

and social case for a diverse workforce, 

stating that the inclusion of people with 

different backgrounds and abilities into 

the working world is high on Adecco’s 

agenda: “Inclusion because we need it; 

inclusion because we want it.” He drew 

attention to a growing scarcity of workers 

and skills that makes inclusiveness 

essential and highlighted a study by the 

Centre for Strategy & Evaluation Services, 

which showed that more than 60 percent 

of companies with diversity policies 

reported that it strengthened cultural values, 

enhanced corporate reputations, and 

helped them attract and retain highly 

talented people. More than 50 percent of 

companies stated that diversity contributed 

toward improved innovation and 

creativity among employees, enhanced 

service levels and customer satisfaction, 

and helped overcome labor shortages. De 

Maeseneire concluded: “As the leader in 

inclusive workforce, it is our responsibility 

to create opportunities and offer 

solutions for individual development. It 

not only enhances social harmony but 

has tangible economic value at a time 

when the skills shortage is growing.” 

Adecco Group CEO Patrick De Maeseneire 

during his presentation at the 

IPC Academy Inclusion Summit in London. 

Multifaceted action for inclusion 

As a Steering Committee Member of 

the ILO Global Business and Disability 

Network, our activities aimed at the 

inclusion of disabled people are multifaceted. 

Through working with disability 

organizations and government employment 

services, we helped more than 

50,000 disabled people integrate into 

the labor market between 2007 and 2012. 

In 2012 the IPC and Adecco extended 

their relationship to deliver the 

IPC Athlete Career Programme for the 

next eight years. The cooperation began 

in 2007 by helping Paralympians with 

career guidance and employment to 

sustain an income while competing for a 

successful transition into the workforce. 

So far, the Programme has been adopted 

by 15 National Paralympic Committees, 

with another 5 to 10 countries joining 

in 2013. Dervis Konwalp, a British 

Paralympian swimmer and multiple 

medalist, states: “The Programme allows 

us to see our own skills and realize the 

traceability from our sporting careers 

to our working careers.” 

At Adecco we strongly believe in 

the power of sport to engage and unite 

people behind a common cause. Each 

year, our Win4Youth program galvanizes 

thousands of Adecco Group colleagues, 

clients, and now also associates, to take 

part in joint sporting activities to collect 

kilometers and raise funds for organizations 

that have a clear focus on giving 

young people a future in work and life. 

In 2012 and 2013, we asked elite athletes 

to champion the Win4Youth project. The 

Godfather of the 2012 program was Belgian 

disabled triathlete and role model, 

Marc Herremans. In 2013, supporting 

our Win4Youth efforts is medal-winning 

Paralympian, Wheelchair Tennis player, 

and “One of Us,” Florence Gravellier. 

Since 2010 she has been leading the Disability 

and Skills Programme for Adecco 

France. As a role model for the power and 

potential of inclusion, Gravellier says: 

“People do not define me as a former 

athlete or Paralympian anymore. I have 

become part of the mainstream workforce. 

This is what inclusion is all about, 

being accepted and playing a part.” 

Win4Youth Godmother 2013 Florence 

Gravellier during the Beijing Olympic 

Games in 2008. 


Bosch 

Occupational Safety 

Management – A Systematic 

Approach to Achieving 

Success 

By Bernhard Schwager, Bosch 

Occupational health and safety management for associates is one of a company’s key processes. 

This applies primarily for humanitarian reasons but is also true from an economic perspective. 

Occupational accidents, illnesses, and diseases are costly for companies and society. Today, 

technical safety aspects combine with the requirements of ergonomics, user-friendly organization 

of work, and health protection to form a system-oriented approach to occupational safety. 

Efficiently organized occupational safety 

is becoming an increasingly important 

competitive factor. Productivity and 

quality depend crucially on the health 

and motivation of the workforce. Operating 

processes can only run smoothly 

if practical consideration is given to 

health and safety protection. Effective 

occupational safety management systems 

promise the greatest benefit in 

this respect. In the Bosch Group, we 

have therefore integrated occupational 

health and safety management into our 

management processes and introduced 

an occupational safety management 

system that complies with internationally 

recognized standards. We conduct 

systematic risk-analyses, detect potential 

accident and health risks very early, 

and thus prevent occupational illnesses 

and diseases. If the hazard sources are 

known, appropriate preventive measures 

can be introduced and associates 

can be given targeted protection. As 

incidents such as accidents and loss of 

work are documented, the documentation 

can be used to compare figures and 

measure success. It is also possible to 

agree upon new targets and monitor 

these. 

The Bosch Group occupational 

safety target 

We have enshrined the prevention of 

occupational accidents, illnesses, and 

diseases in our principles for work safety 

and environmental protection throughout 

the world. The Bosch Group has set longterm 

targets for reducing the number of 

Safety engineer Carsten Pipper at robot 

acceptance inspection: “We scrutinize 

every machine and workplace, analyze 

risks across the board, and define protective 

measures.” 

accidents. It is looking to achieve a rate 

of three reportable accidents per million 

hours worked by 2020. Managers, 

safety specialists, and occupational health 

100 


Good Practice 


Bosch principle 

on occupational 

health and safety 

management 

occupational health and safety 

Occupational accidents 

2007 2008 2009 2010 2011 2012 

3,000 

2,000 

3,012 

2,687 

2,128 

1,000 

1,818 

1,913 2,012 

- 33.2 % * 

0 

Days lost 

Safety in the workplace and the 

physical well-being of our associates 

has top priority. National 

standards for a safe and hygienic 

work environment are complied 

with strictly, thus ensuring health 

and safety in the workplace and 

a healthy work environment. 

30,000 

20,000 

10,000 

0 

Headcount 

300,000 

200,000 

100,000 

0 

39,311 

36,250 

24,672 

28,037 

27,082 26,016 

271,265 281,717 270,687 283,507 

302,519 305,877 

* Percentage relates 2012 to the base year 2007 

- 33.8 % * 

+ 12.8 % * 

practitioners at all of the approximately 

300 manufacturing and development 

locations around the world are working 

to achieve this goal and are committed 

to reaching the targets at all regional and 

local levels. Quarterly reports on goal 

achievement are sent from these locations 

to the respective divisions and to 

corporate headquarters, which provides 

support for any measures and campaigns 

required at the locations. Our international 

EHS Steering Committee (Environment, 

Health, and Safety) comprises 15 regional 

coordinators and manages the worldwide 

implementation of our strategic goals and 

standards. This includes the optimization 

of production processes. 

Internal requirements and standards 

Binding standards exist for the Bosch 

Group that lay down minimum requirements 

for occupational health and safety 

management. Systematic risk assessments 

are used at the locations to identify 

risks for workplaces and activities before 

necessary protective measures are derived 

from these for plant and machinery 

and for handling hazardous substances, 

for example. Bosch provides managers 

with training on their duties and responsibilities 

in occupational health and 

safety management such as carrying out 

regular safety instruction for associates 

on safety-conscious practices. Up-to-date 

information, guidelines, checklists, and 

instruction materials for occupational 

safety and health promotion are supplied 

for these purposes. Operating instructions 

are also an important prevention 

tool. All this ensures that our associates 

worldwide are informed about risks and 

protective measures in the workplace. 

Positive assessment 

Since 2007, Bosch has been implementing 

an occupational safety management system 

at all its manufacturing and development 

locations, thus making it one of the 

forerunners worldwide in implementing 

the Occupational Health and Safety Advisory 

Services 18001 standard. The results 

have been positive, as this has created a 

global uniform structure for occupational 

health and safety and has therefore simplified 

it. Total numbers for accidents and 

lost days have decreased significantly, confirming 

that the safety measures taken are 

having a positive effect. The accident rate 

fell by approximately 40 percent – from 

6.9 in 2007 to 4.2 in 2012; the number 

of occupational accidents decreased accordingly 

– from 3,012 in 2007 to 2,012 

in 2012. At the same time, the number 

of associates increased by approximately 

13 percent between 2007 and 2012 and is 

now about 300,000. Lost days have also 

declined. In 2007, these amounted to 

39,311 days, whereas the figure for 2012 

was only 26,016, representing a decrease 

of around 34 percent. 

Continuous improvement process 

Continuous efforts are needed to maintain 

these types of reductions on a sustainable 

basis. Bosch works with specialists 

in internal and external working 

groups and committees to develop and 

improve standards and implements improvement 

initiatives systematically. We 

actively involve associate representatives 

and communicate good practice 

solutions to all locations to achieve a 

continuous improvement process. One 

of the main functions here is to detect 

potential accident and health risks for 

associates in order to take appropriate 

preventive measures in good time. The 

safety specialists offer the locations comprehensive 

advice on all issues relating 

to plant, process, and operational safety, 

whether it involves handling individual 

safety issues, practical solutions for process 

engineering systems, or support 

for systematic safety assessments. The 

specialists also provide support on implementing 

legal obligations. 


Manpower Group 

WHEN WOMEN DO BETTER, 

ECONOMIES TO DO BETTER 

Few companies have helped empower women like ManpowerGroup – both inside and outside 

our organization. As the world leader in innovative workforce solutions for 65 years, 

ManpowerGroup was one of the first employers to bring women into the workforce decades 

ago and remains a pioneer for women today. We not only provide experience and employment 

opportunities to women that they previously may not have had access to, but equally 

important, we nurture a culture that respects how diversity of thought inspires the productivity, 

innovation, and collaboration companies need in the Human Age – an era of certain 

uncertainty requiring flexibility and new approaches to work. 

By Mara Swan, ManpowerGroup 

Every March, the world celebrates International 

Women’s Day to honor the 

economic, political, and social achievements 

of women. While much progress 

has been made – for example, I am 

writing this piece the day after the passing 

of Margaret Thatcher, a woman who 

certainly made her mark on the world 

as the first female prime minister of the 

United Kingdom – many barriers still 

exist. Women are still grossly underrepresented 

both in the workforce as a whole 

and, particularly, in leadership positions. 

According to the International Labor 

Organization, nearly half of working 

age women are not currently active in 

the formal global economy. Grant Thornton’s 

2012 International Business Report 

revealed that barely one in five senior 

management positions globally are held 

by women. Among Fortune 500 companies, 

only 15.7 percent of board seats are 

held by women. The issue of women in 

the workforce is not about fairness or 

merely achieving gender parity, it is a 

critical economic issue. 

Women account for 70 percent of global 

consumer spending, which means that 

when we do better, economies do better. 

Women also make up half of the global 

talent pool, yet they are being underleveraged 

at a time when businesses across the 

globe cannot find the talent they need to 

drive future growth – ManpowerGroup’s 

2013 survey shows 35 percent of employers 

report talent shortages. This situation 

is not sustainable. 

Accelerating demographic shifts in many 

countries, particularly developed markets, 

are shrinking traditional talent pools. 

As world economic growth continues to 

shift south and east, emerging markets 

have plenty of people, but not necessarily 

the required qualified talent. In a world 

where uncertainty is the one certainty, 

diversity of thought is required to remain 

agile and adaptable in the face of an 

unpredictable business environment. 

The modern issue of women in work is 

not necessarily one of deliberate exclusion; 

companies on the whole desire an 

inclusive workforce because they recognize 

there is no substitute for diversity of 

thought and perspective. The issue now is 

this – what companies are offering is not 

what women want. The barriers placed 

in front of working women are social, 

cultural, and structural, and there needs 

to be a shift toward contemporary work 

models that better provide them with the 

flexibility they seek so that the percentage 

of women in the workforce does not drop 

off with every sorting of talent. 

There also needs to be greater focus on 

strategic ways to reintegrate women who 

temporarily leave the workforce to raise 

a family. Skills lifecycles are now so short 

that being out of the workforce for a period 

of time makes it extremely difficult 

to return because skills have atrophied 

in the interim. This requires flexible 

work models and people practices so 

that women are not forced to choose 

between a career and children. Evolving 

technology makes flexible working 

feasible, where it was simply not possible 

in the past – now we can work from 

102 


Good Practice 


Seven female electricians with a 

ManpowerGroup France employee. 

ManpowerGroup helped source, train, 

and recruit the women to tackle an 

energy company’s talent shortages. 

anywhere, meaning that women who are 

the sole caretakers of their children and 

cannot be in an office or workplace at 

certain times of the day have the option 

of flexible hours and telecommuting. 

Across the world, ManpowerGroup is 

committed to providing training, experience, 

and employment opportunities 

to help women unleash their potential 

anywhere at any time. 

• Manpower in Australia has launched 

several recent initiatives to increase the 

proportion of women in the Australian 

Defense Force, resulting in more women 

applying for a diverse number of roles in 

the military. Manpower Defense Force 

Recruiting centers around the country 

have been developing Women in Army 

information sessions, including guest 

speakers. One recruit, who is also a 

single parent, provided excellent insight 

to those in attendance on how the army 

has supported her and her family. 

• In France, an energy company was faced 

with a serious lack of skilled electricians. 

To fill these positions, Manpower 

France developed a custom solution to 

help source, train, and recruit women 

for the roles, which have traditionally 

been filled by men. The program is now 

being introduced nationwide. 

• In Hong Kong, a nationwide staffing 

initiative recruits unemployed or underskilled 

women found through NGOs 

and nonprofits to fill a large number of 

support positions working in hard-to-fill 

roles at more than 60 public libraries. 

• Our operations in Mexico and Central 

America have taken steps to help 

women with disabilities find work, including 

sponsoring those with visual 

impairment so they can train as massage 

therapists, as well as providing 

scholarships to assist 129 women in 

completing high school. 

Inside our own organization, women 

account for more than 70 percent of 

ManpowerGroup’s managers globally. 

For the fifth consecutive year in 2013, 

ManpowerGroup was named one of 

America’s Top Corporations by the 

Women’s Business Enterprise National 

Council in recognition of the company 

instituting programs offering equal access 

to women-owned businesses and 

world-class supplier diversity. 

ManpowerGroup was also named a 2020 

Women on Boards Winning Company 

for its commitment to board diversity – 

30 percent of ManpowerGroup’s board 

of directors are female. I am proud to 

work for an organization that values 

diversity of thought, experience, and 

perspectives regardless of gender. 

Today’s era of certain uncertainty demands 

new ways of working, sharing, 

and collaborating that makes old models 

unsustainable. This means companies 

should address their leadership models, 

people-practices, and talent sources, and 

revise their internal systems, culture, 

engagement, and training practices to 

create new, flexible work models so that 

high-performing women can contribute 

and unleash their full potential. 

At a time of acute talent shortages, making 

a workplace more flexible and attractive 

to women can give companies a 

significant advantage over competitors. 

I am proud to recognize International 

Women’s Day but look forward to a time 

when the world no longer needs such a 

day because our societies have achieved 

equality in the workforce and have unleashed 

the potential of all people. 

Mara Swan is ManpowerGroup Executive Vice 

President, Global Strategy and Talent. 


saga furs 

Providing Quality 

and Transparency 

for consumers 

By Charles Ferro, Saga Furs 

Transparency may not be the first thing that comes to mind when a fashionista gasps in awe 

at a stunning fur creation on a Paris, New York, London, or Milan runway, but transparency 

is a central value in consumer consciousness. As a fur auction house, Saga Furs promotes innovative 

transparency: upstream at farms where the company sources only quality Europeanproduced 

pelts, and downstream among partners in creative phases resulting in fashion. 

“Even before sustainability and transparency 

became household terms, 

Saga Furs had become the fur industry 

pioneer in providing openness along 

production chains,” says Director of 

Communications / CSR Päivi Mononen- 

Mikkilä. “This applies to cooperation 

with partners within Saga Furs’ 

sphere of influence as well as processes 

over which the company has direct 

control. That we were the first in the 

trade to create CSR policy and to join 

the UN Global Compact is also noteworthy.” 

A garment bearing the Saga Furs® label 

on fashion runways carries the values 

of transparency demanded by consumers. 

The Saga Traceability System allows 

every pelt sold at auction to be traced 

back to the farm of origin. All Saga Furs 

pelts come from European farms and 

are barcoded at the source to allow identification 

along the production chain. 

In phases between an auction – dressing, 

logistics, manufacture – Saga 

Furs helps partners find services from 

companies that share our concerns for 

transparency. The traceability of the 

entire production chain, the fact that 

important stakeholders can assess it as 

objectively as possible, and the gradual 

inclusion of fur farm certification in 

the Saga Furs quality criteria are the 

company’s most important tools for 

increasing its own control over the 

products it sells. Quality criteria begin 

on a fur farm. 

Farm Certification System goes 

beyond what is required 

Saga Furs has supported – and played an 

active role in – the Finnish Fur Breeders’ 

Association’s (ProFur) Farm Certification 

System, launched in 2005. The program 

raises fur-farming standards above those 

recommended by the EU and has proven 

to be a major success. 

104 


Good Practice 


Above: Saga Furs label not only for the 

beauty of the fur, but also the promise 

of transparency contained in the brand. 

Left: Saga Furs Design Centre offers 

a prime example of how the company 

promotes responsible use of fur 

without compromising creativity. 

In the 2012 - 2013 auction season, all 

Finnraccoon pelts sold by Saga Furs came 

from certified farms. The company aims 

for the same objective for fox pelts in 

the following season. Efforts to extend 

Farm Certification have progressed to the 

point where well over 90 percent of fox 

production in Finland and 60 percent of 

mink breeding takes place on certified 

farms. In addition, the system has been 

exported to other European countries 

where the company sources pelts. 

Saga Furs, via ProFur, also works closely 

with Finnish and international agencies 

to reduce the impact of fur farming on 

the environment. Studies show the carbon 

footprint of a mink or fox pelt used for 

clothing is rather small when compared 

to the carbon footprint of other habitual 

consumption items. The company intends 

to reduce the footprint even further, with 

one means being the introduction of 

sustainable energy sources to farms. 

As a member of the Baltic Sea Action 

Group, Saga Furs helps reduce acidification 

and nutrient emissions that cause 

eutrophication in bodies of water – two 

factors that may be caused by the seepage 

of animal waste. The use of underutilized 

sea species for making feed is one 

factor that helps balance the ecology. 

The fishing of feed species reconditions 

water systems by significantly reducing 

volumes of phosphorus and nitrogen 

in the Baltic to deter eutrophication. 

Another practical measure is the use of 

newly developed technology that allows 

precise feeding of individual animals, 

thereby reducing their waste. 

Openness and action from farm to 

fashion 

As an auction house, Saga Furs holds a 

pivotal position between the sources of 

its product and the fashion industry. In 

its essence, fur is a natural, sustainable 

product, but the company takes extra 

steps to guide auction buyers and their 

manufacturing customers toward sustainable, 

transparent processes. Saga Furs Design 

Centre offers a prime example of how 

the company promotes responsible use 

of fur without compromising creativity. 

“The Design Centre is a steward of European 

craftsmanship and innovation in 

the realm of fur. In addition to being the 

world’s think-tank for developing new 

applications for the material, it is also 

a training ground for a new generation 

of furriers, designers, and consumers,” 

says Head of Product Development Per 

Reinkilde. 

The majority of designers are there to find 

inspiration while learning the basics of the 

craft and refining their skills. Reinkilde 

notes that visitors are also briefed on 

sustainable processes that should be employed 

when creating fur designs. Consumers 

who visit learn about the four 

sustainability principles of fur: use, store 

properly, renew, and recycle. Since doors 

to the Design Centre opened in 1988, more 

than 30,000 persons have visited. 

The company may also act as matchmaker, 

as many clothing companies and 

designers who visit the Design Centre 

do not have the equipment needed to 

make fur garments for their collections. 

When these situations arise, Saga Furs 

is in a position to recommend trusted 

dressing companies and manufacturers 

whose transparent policies toward 

employees, the environment, and social 

responsibility match those of Saga Furs. 

Day-to-day routines often lead to ideas 

linked to sustainability. The Design Centre 

is working with a dressing company 

that has achieved preliminary success 

in developing alternative, “green” techniques 

for dressing furs. The dresser 

and Saga Furs have engaged several researchers 

in a project aimed at finding 

eco-friendly, plant-based alternatives to 

replace chemicals in dressing processes. 

As it looks toward tomorrow, Saga Furs 

is in the process of expanding the values 

of transparency, both internally and 

through its sphere of influence among 

partners. Years ago, the company had 

freely chosen to do so in a global community 

that now leaves us with no other 

responsible choice. 

SAGA FURS IN BRIEF 

Saga Furs is the world’s only 

publicly-listed fur auction house. 

The company sells Saga Furs® 

Mink, Fox, and Finnraccoon at 

four annual auctions to buyers 

from around the world. It was 

the first company of its kind to 

have a CSR policy and to join 

the UN Global Compact. 

Saga Furs Design Centre is the 

R&D department, where new 

applications for fur are innovated. 

To help designers – and ultimately 

auction customers – the Design 

Centre hosts seminars, where 

visitors learn furrier techniques 

and find the expertise needed to 

realize their creative ambitions. 


Weidmüller 

Young and Old: 

The Best Connection 

By Dominique Alhäuser, Weidmüller 

Actively encouraging junior staff as well as the more experienced is sustainability in action 

for the family-owned company Weidmüller, and it is also a way to counteract the effects of 

demographic change. 

According to UN estimates, by 2050 the 

world population will total more than 9 billion, 

of which 22 percent will be over the age 

of 60. This shift in our age structure needs 

to be compensated for within the corporate 

environment. The ability and desire of older 

employees to work must be maintained, and 

the full potential of the coming generations 

will have to be nurtured and maximized. 

The SME family company Weidmüller, therefore, 

demonstrates its commitment using a 

structured and consistent approach, with its 

very own academy for the managerial staff 

of tomorrow. At the same time, it offers a 

special work-life balance program for its 

older employees. 

Young or old? For Weidmüller, a familyowned 

company, that is not an either-or 

question. “We have to support our older 

staff in helping them to stay healthy 

and in retaining their enjoyment at the 

workplace and assisting the young ones 

to find their way in life and realize their 

full potential,” explains the Chief Ex- 

106 


Good Practice 


ecutive Officer, Dr. Peter Köhler. In his 

opinion, it is not only immoral to count 

colleagues over the age of 50 as past 

their prime, but faced with demographic 

change, it is also unwise from a corporate 

perspective. Older colleagues have a huge 

wealth of experience that they bring to 

the daily work processes. Combined with 

the newest qualifications of the younger 

staff, this experience creates the perfect 

mix for a company that is dedicated to 

innovation and precision. 

Based in Detmold, the company has 

maintained an academy of its own since 

2003. “We have united international 

activities for qualifying and building 

knowledge in our company and transferring 

that knowledge to and from external 

institutions, universities, and partners 

under the umbrella of the Weidmüller 

Academy,” states Köhler. The academy 

has had an offshoot in Shanghai since 

2011. It is dedicated to ensuring, for example, 

that the successful “dual course 

of studies” model takes off in Asia. Additionally, 

the academy cooperates with 

well-known universities in Germany, 

Asia, and across the world – for instance 

with the Centrum Industrial IT 

in Germany and the Shanghai Jiaotong 

University – to promote research. 

Weidmüller places particular emphasis 

on being involved at an early stage by 

providing support for solid education and 

making the right choices – not simply 

when youngsters are starting their professional 

lives. Every year, more than 3,000 

pupils all over the world experience their 

first taste of a “corporate atmosphere” 

at Weidmüller. In 2011, the company 

was awarded the Hermann-Schmidt 

prize for its professional orientation 

program, which accompanies pupils 

on an ongoing basis starting in the 7th 

grade. “We harness the natural curiosity 

and enthusiasm of teenagers to steer 

them toward topics such as mathematics, 

natural sciences, and technology in 

a playful way,” explains the Managing 

Director Human Resources, Dr. Jürgen 

Ober. “According to the Association of 

German Engineers (Verein Deutscher 

Ingenieure), there are currently 98,000 

vacant jobs for engineers in Germany, 

and the need for engineers in the future 

will be even greater. Investing in education 

is, for Weidmüller, sustainability in 

action,” summarizes Köhler. 

With its diverse range of opportunities, 

Weidmüller also makes every effort to 

offer the right path for each candidate as 

they begin their work life. The company 

has trained apprentices for more than 

60 years, and every year it accompanies 

more than 200 apprentices and trainees 

worldwide as they begin their professional 

lives. Alongside the classic apprenticeship 

for a total of 10 professions 

in the technical and commercial spheres, 

the dual course of studies and trainee 

program provide further attractive possibilities 

for an ideal start in the chosen 

profession. Three-month periods abroad 

in one of Weidmüller’s global branches 

are an integral part of the training plan 

of the 18-month trainee program. Furthermore, 

there are integrated “mentoring 

programs”: Junior staff have direct 

access to managers who also help them 

with career planning. A direct exchange 

of ideas promotes a culture of dialogue 

within the company. 

“For today’s employees – whether starting 

work or already experienced – alongside 

salary, the whole package has to be 

just right: A motivating company culture 

Dr. Peter Köhler, spokesperson of the board, 

believes in the encouragement of employees 

as a crucial factor of success. 

is part of this, as is a productive work atmosphere,” 

states Ober. This is influenced 

positively by an appreciative management 

culture and pleasant colleagues, 

but also by additional fringe benefits 

such as individual training measures 

and joint sporting and leisure activities. 

Measures aimed at catering to the needs 

of older staff are currently being developed. 

Opportunities tailored to older 

staff should help maintain performance, 

the ability to work, and –last but not 

least – the motivation of staff aged 57 

and older, particularly in the years right 

before reaching the statutory retirement 

age. For example, older staff can reduce 

their work hours and enter into a parttime 

arrangement, with which they can 

alternate between five-day and four-day 

work weeks. From the age of 57, staff 

members are also granted two extra 

days of “extraordinary holiday.” With 

increasing age, the number of additional 

holiday days rises as well and allows for 

up to 36 days of extra holiday. Longer 

periods of exemption are also possible: 

For example, staff on part-time contracts 

could work full-time for three months 

and then take three months off. 

Additional measures are also offered 

for the health of older staff. General 

examinations by doctors as well as annual 

eye and hearing tests and subsidies 

for hearing aids are part of the package. 

Spouses and partners can be involved in 

the individual planning of special fitness 

programs: for instance, through a grant 

for a holiday in a convalescence clinic or 

a joint cookery course for healthy eating. 

The innovative activities are not only 

well-received by staff, they also help to 

counteract the impression that age is an 

obstacle that needs to be overcome. In 

fact, our program expresses our particular 

appreciation for older staff and their 

qualifications, which are hugely important 

for the company. Köhler emphasizes: 

“The difference between a good and an 

outstanding company are the staff: the 

young and the experienced – together – 

in one team.” 


Good Practice 

Environment 

Principle 7: Businesses should support a precautionary 

approach to environmental challenges; 

Principle 9: encourage the development and diffusion of 

environmentally friendly technologies. 

Principle 8: undertake initiatives to promote greater 

environmental responsibility; and 

108 


Environment 

110 

112 

114 

118 

120 

122 

126 

128 

Audi 

Camfil 



EDF Group 

Grundfos 




130 

132 


Thales 


Principle 10: Businesses should work against corruption 

in all its forms, including extortion and bribery. 


109

Audi 

Audi Future Energies – 

Balancing Business and 

Environmental Concerns 

Sustainability is a guiding principle at AUDI AG. 

Sustainability helps us retain our competitive edge and 

economic efficiency as well as protect the environment 

and ensure a decent future for generations to come. 

By Dr. Peter F. Tropschuh and Elise Pham, Audi 

A primary objective concerns comprehensive 

CO 2 

-neutral mobility. To this end, 

Audi is looking far beyond emissions 

from vehicle exhaust systems. Besides 

the actual usage phase, the company is 

also examining vehicle manufacturing 

and recycling processes as well as the 

upstream fuel supply chain that is increasingly 

gaining in importance. 

Audi is the world’s first carmaker 

to become directly involved in the development 

and production of renewable 

fuels that do not rely on biomass. Audi 

is focusing on an entire range of drive 

technologies. Its fuels of tomorrow are 

Audi e-gas, Audi e-ethanol, Audi e-diesel, 

and Audi e-hydrogen. 

Audi e-gas 

energy. The accelerating expansion of 

renewable energies means that energy 

sources subject to fluctuations play an 

increasingly larger role. In short, there 

is sometimes a surplus of electricity and 

at other times a shortage. With a rated 

input of around 6,000 kW, the plant 

will primarily use electricity from wind 

power whenever there is oversupply. That, 

Power Grid 

The wind energy is to fed 

into the public power grid. 

in turn, will help solve a considerable 

problem associated with the sea change 

in energy: the storage of energy. 

At the plant, renewable electricity 

will be used to split water via electrolysis 

into oxygen and hydrogen (Audi e-hydrogen), 

which will power the fuel-cell vehicles 

of tomorrow. A widespread hydrogen 

infrastructure does not yet exist, however. 

Gas network 

The e-gas is stored in the public 

gas network and can therefore also 

supply households and industry 

with energy from renewable 

sources. 

The first step is the Audi e-gas project: 

Audi is creating an entire chain of sustainable 

fuels. As a joint project of Audi and 

plant builder SolarFuel, the Audi e-gas 

plant in the northern German town of 

Werlte began operations in June 2013. It 

is the world’s first industrial facility to use 

CO 2 

and renewable electricity to generate 

a synthetic substitute for methane. The 

plant will run on renewable electricity 

generated via, for instance, wind or solar 

Wind Energy 

The starting point for the 

Audi e-gas project is renewably 

generated electricity. 

Elektrolysis 

The electrolysis plant. which is 

operated by wind power, splits 

water into oxygen and hydrogen. 

CO 2 

Methanation 

The hydrogen reacts with carbon 

dioxide in a methanation plant. 

The result: e-gas (syntetic natural gas) 

CNG filling station 

The increasing proportion of 

e-gas promotes climate-friendly long-distance mobility. 


Good Practice 

Environment 

Audi uses another innovative process 

to solve this problem. The hydrogen is 

combined with CO 2 

in the methanation 

facility downstream of the electrolysis 

plant to produce synthetic renewable 

methane – Audi e-gas. From there, it 

can then be fed into the natural gas 

network and stored there. It can later 

be tapped – anywhere, anytime. 

The CO 2 

comes from waste gas emitted 

by a nearby biomethane plant operated 

by EWE, an energy provider. This 

biomethane plant runs on organic waste. 

The Audi e-gas facility uses the CO 2 

as 

a raw material for new fuel. Audi e-gas 

is thus a climate-neutral fuel – when 

combusted in the engine, exactly the 

same amount of CO 2 

is released as was 

previously bound at the e-gas plant. 

Depending on the supply of electricity, 

the plant in Werlte is expected 

to produce some 1,000 metric tons of 

e-gas annually while chemically binding 

approximately 2,800 metric tons 

of CO 2 

. These same 1,000 metric tons 

of Audi e-gas could power 1,500 Audi 

A3 Sportback g-tron vehicles for 15,000 

kilometers (9,320.57 miles) per year in 

CO 2 

-neutral driving. 

CO 2 

tailpipe emissions for the Audi 

A3 g-tron are consequently less than 95 

grams per km (152.89 g / mile). When the 

Audi A3 g-tron is powered by Audi e-gas, 

no more CO 2 

is released than was chemically 

bound in its production beforehand, 

creating a closed loop. Even when one 

includes in a comprehensive analysis the 

energy required to build the e-gas facility 

and wind turbines, CO 2 

emissions are 

still only 20 grams per km (32.18 g / mile). 

The German energy industry could also 

benefit in the medium term from the 

concept of the Audi e-gas project, as 

it provides an answer to the unsolved 

question of how to store green power 

efficiently and independently of location. 

The potential of electricity-gas cogeneration 

to store large amounts of wind or 

even solar energy can provide powerful 

stimuli for the expansion of renewable 

energies. 

Audi e-ethanol and Audi e-diesel 

These projects address an old problem 

in search of a solution. Whenever conventional 

petroleum-based fuels are combusted, 

they release CO 2 

and pollute the 

atmosphere. Ethanol and diesel from 

renewable raw materials such as corn 

and rapeseed generally achieve a better 

environmental balance. 

But these fuel sources compete 

with arable land for growing food. As 

such, they cannot constitute a long-term 

solution for our planet’s skyrocketing 

population. 

The CO 2 

-neutral mobility of tomorrow 

necessitates radically different 

fuels. Audi is therefore collaborating 

on just such a solution with the 

American company Joule. In a patented 

process, Joule manufactures fuels 

with the aid of special microorganisms 

in a highly scalable modular system 

(SolarConverter®): Audi e-diesel and Audi 

e-ethanol. 

This process requires either wastewater 

or salt water; CO 2 

; solar energy; 

and special single-celled microorganisms 

that are just thousandths of a 

millimeter in diameter. Just as plants 

do, these organisms carry out oxygenic 

photosynthesis. The experts at Joule 

have modified these microorganisms 

such that they produce ethanol or longchain 

alkanes – important components 

of diesel fuel – directly from the CO 2 

and sunlight. The fuels are removed 

from the microorganisms, separated 

from the water, and cleaned. This technology 

is the basis for Audi e-diesel and 

Audi e-ethanol. 

In short, e-ethanol is a product with 

the same chemical properties as bioethanol. 

But e-ethanol is far better, as no 

biomass is used in its production. This 

e-ethanol can be admixed with fossil fuel 

gasoline (e. g., E 10) or, alternatively, can 

be used as the basis for E 85 fuel (85 % 

ethanol, 15 % gasoline). 

In addition to developing Audi 

e-ethanol, Audi is partnering with Joule 

to manufacture synthetic diesel fuel: 

Audi e-diesel. A considerable strength of 

Audi e-diesel will lie in its purity. 

In contrast to petroleum-based 

diesel – a mixture of a great many hydrocarbon 

compounds – e-diesel is free 

of sulfur and aromatics. This fuel of tomorrow 

will also offer excellent ignition 

performance thanks to its high cetane 

number. And its chemical composition 

will permit unlimited blending with 

fossil fuel diesel. 

Audi and Joule jointly built a 

demonstration facility in Hobbs, New 

Mexico – a barren region with lots of 

sunshine. This facility opened in September 

2012. Audi e-ethanol was produced 

for the first time in transparent 

plastic tubes in early 2013 and manufacture 

of Audi e-diesel is expected to 

follow in the next few years. Efforts at 

the demonstration facility alone illustrate 

the clear superiority over conventional 

bioethanol. In line with forecasts, 

the yield of Audi e-ethanol is some 

20 times greater! In addition, regions 

that are unsuitable for agriculture such 

as deserts could be utilized for energy 

production. Commercial production of 

the new fuels could begin within the 

next five years. 


111

Camfil 

Buildings Need Effective 

Air Filters 

By Myriam Tryjefaczka, Camfil 

Air is free and necessary for life. The quality of air also has a direct impact on quality of life: 

The cleaner the air we breathe, the healthier we are, and the better we feel and perform. 

Unfortunately, healthy air is becoming a scarce commodity, especially in the larger and more 

densely populated cities of the world. The most common air pollutants, such as airborne 

particulate matter (PM), ozone, and nitrogen oxides, are known to cause respiratory problems, 

heart diseases, and other illnesses. A recent study by the World Health Organization (WHO) 

suggests that long-term exposure to this air pollution can also affect brain development, 

reproductive health, circulation, and diabetes. 

ventilation systems operating without 

effective filters, where it mixes with a 

cocktail of other indoor pollutants that 

may be present, such as radon, tobacco 

smoke, volatile organic compounds, and 

biological pollutants. This is why our 

indoor air can actually be more seriously 

polluted – up to 50 times more than 

outdoor pollution, involving greater 

health risks for the young, elderly, and 

chronically ill, especially in urban environments 

and in areas with heavy vehicle 

traffic. With people spending up to 90 

percent of their lives indoors, we need 

to think just as much as about indoor 

air quality (IAQ) as ambient air quality. 

Europe is an example, where one-third 

of the people living in cities are exposed 

to excessive PM concentrations, and one 

out of six Europeans is said to suffer from 

a respiratory problem. Air pollution in 

Europe is estimated to cause more than 

400,000 premature deaths annually. On 

a worldwide basis, the figures are just as 

grim: Two million people die too early 

because of exposure to air pollution, 

according to WHO. Fortunately, governments 

are responding by reviewing and 

strengthening air quality strategies based 

on the latest knowledge and research. 

But air pollution has a darker side: Polluted 

outdoor air penetrates the indoor 

environment through open windows and 

Balancing ventilation and energy 

demands 

At the same time as we need cleaner air, 

governments are focusing on the energy 

aspects of ventilation as a means to cut 

the energy consumption of buildings and 

reduce greenhouse gas emissions. Cleaning 

air from air pollution in heating, 

ventilation, and air conditioning (HVAC) 

systems requires substantial energy and 


Good Practice 

Environment 

therefore contributes to CO 2 

emissions 

related to power production. But ventilation 

should not be reduced just to save 

energy, which may compromise IAQ. 

In Europe, it is estimated that HVAC 

systems consume up to 30 - 40 percent of 

all energy needed to operate a building. 

Air filters that consume less energy, are 

eco-efficient in design, and comply with 

industry guidelines and standards will 

cut this consumption directly. A simple 

measure such as installing quality filters 

with the lowest average air resistance, 

and the highest filtration efficiency, can 

reduce the considerable power appetite 

of HVAC systems. Quality filters last 

longer, clean better, save more energy, 

and do not have to be changed as often. 

This adds up to a lower total cost of 

ownership. Good filters provide clean 

air with economic benefits. Clean air 

is good for the bottom line of business 

and society at large. 

Sustainable side of air filtration 

use the best available air-cleaning solutions. 

By aligning our business approach 

and practices to ensure the delivery of 

eco-efficient solutions, Camfil can help 

building owners meet emerging energyperformance 

requirements and comply 

with building-certification schemes. 

Lifecycle costing of air filters 

From a long-term perspective, energy 

consumption is the major overall cost 

component in an air filter’s overall lifecycle 

cost. Compared with most standard 

filters on the market, Camfil’s products – 

thanks to their design and filter media – 

can reduce the operating cost of a ventilation 

system by more than 20 percent, 

since the system can operate more efficiently 

with our filters, which keep their 

pressure drop low over a longer time 

and have higher filtration efficiencies 

to remove more contaminants. Simply 

described, air-handling units need less 

power to drive air through Camfil filters. 

Calculations with lifecycle cost software 

document this. Lifecycle thinking for 

clean-air solutions helps customers 

lower their operating costs, increase 

their energy efficiency, and select the 

right product for the best air quality 

and lowest total cost of ownership. The 

software considers filter efficiency, filter 

life, filter change, labor, filter cost, disposal 

costs, and allows for varied inputs 

for all of these factors, plus the largest 

filter expense: energy usage. 

Economic impact of IAQ 

In the debate to trim the energy consumption 

of HVAC systems, Camfil argues 

that IAQ is a factor that cannot 

be ignored because it may determine a 

building’s functionality and economics. 

Without proper filtration and ventilation, 

substantial IAQ problems can be quite 

costly in terms of lost work time, lost 

use of buildings, expensive repairs, legal 

costs, and bad publicity for the owner. 

Camfil offers a full portfolio of air filtration 

products to protect people, manufacturing 

processes, and the environment. 

Over the years, we have focused 

on driving the air filtration industry 

toward better standards for product 

performance and energy efficiency by 

helping to develop the EN 779:2012 air 

filter standard, ratified in 2012, and 

contributing to the Eurovent product 

certification program for energy labeling 

of air filters, formally launched in 

2012 (but introduced by Camfil for its 

products already in 2009). These developments 

are positively impacting the air 

filter industry and highlight the need for 

better ventilation systems that consume 

less power and make buildings greener. 

Reducing the power consumption of 

HVAC systems with energy-efficient filters 

that also improve IAQ is a practical 

way to reach two important goals: mitigating 

climate change and combating 

the health threats of indoor air pollution. 

The savings are true and tangible if 

customers make the right decisions and 

Sustainable air filtration 

By reducing the energy needs of ventilation systems, Camfil’s eco-designed 

products can make more of a difference for conserving energy and supporting 

global efforts to fight against climate change. 

Camfil Group joined the UN Global Compact initiative in 2009 and reports 

annually in accordance with the Global Reporting Initiative. We offer sustainable 

clean-air solutions in the air filtration market and have won numerous 

awards for our low-energy filters in Europe and the United States. Designing 

environmental aspects into air filters has been a priority for years. Our 

products have the lowest energy consumption in all filter classes for air 

conditioning and ventilation systems. 

Converted into carbon dioxide emission data, air filtration becomes one of 

the easiest, cheapest and most available clean technologies to reduce the 

energy consumption of building ventilation systems while improving IAQ. 

Fans in air-handling units need an average of 31.5 TWh of energy to move air 

through filters. If the air filter maintenance market in Europe would convert 

to energy-efficient air filters, energy needs would be reduced by a minimum 

of 10 percent, which is equal to a minimum reduction of 190,000 metric tons 

of carbon dioxide, the amount emitted by some 610,000 vehicles. 

www.camfil.com 


113


Delivering a Better 

Tomorrow 

By Katharina Tomoff and Dr. Jan Dietrich Müller, Deutsche Post DHL 

As one of the world’s largest logistics companies, Deutsche Post DHL has a special responsibility 

to society and the environment, which is why sustainability is so important to our business. 

In particular, we are taking concrete measures through our innovative environmental protection 

program, GoGreen. This is just one of the ways in which we are translating this commitment 

into action, as part of our efforts to be part of the solution for a better tomorrow. 

Because of its potentially devastating 

impact on the environment, the economy, 

and humanity, climate change is widely 

recognized as a critical problem requiring 

urgent action. All parts of society – and 

not least, business – are becoming more 

aware of the urgency and the need to 

act. In a global survey of 3,600 business 

customers and consumers worldwide 

commissioned by Deutsche Post DHL, 

alongside its Towards Sustainable Logistics 

study in 2010, climate change was 

identified as the most pressing challenge 

facing the world today. 

As the first logistics provider to offer 

carbon-neutral shipping services for our 

customers, and the first to publicly commit 

to a quantifiable carbon-efficiency 

goal, sustainability is part and parcel of 

how Deutsche Post DHL does business. 

It is this commitment to be a positive 

force in the societies in which we operate 

that motivates our partnership with the 

United Nations and our steadfast adherence 

to the UN Global Compact and its 

Caring for Climate initiative. 

Greener solutions 

As a global logistics provider, Deutsche 

Post DHL moves goods and information 

around the world for all types of businesses 

in every sector of the economy, 

making it an important force in promoting 

economic prosperity. At the same 

DHL employee delivering GoGreen 

items 


Good Practice 

Environment 

time, we acknowledge the responsibility 

of the logistics industry in mitigating 

the environmental impact of transport. 

Moreover, with their unique position 

and expertise along the entire supply 

chain, logistics providers can help other 

industry sectors make progress toward 

a low-carbon economy. 

Through its GoGreen program, Deutsche 

Post DHL is improving its own CO 2 

efficiency, 

thereby making it a key driver 

for greener logistics solutions for its 

customers, many of whom have already 

introduced specific goals to reduce their 

CO 2 

emissions. By combining innovative 

technologies with more environmentallyfriendly 

products and services, we are 

able to open up new markets and business 

opportunities for our customers, 

while helping them achieve their own 

environmental goals. 

Sustainability matters 

By 2020, we intend to improve the carbon 

efficiency of our own transport services 

and those of our subcontractors by 30 

percent compared with the base year 

2007 – improvements that, in turn, 

benefit our business customers’ environmental 

efforts. In fact, we are well 

ahead of our interim target, having already 

achieved our 2012 mid-term goal 

of improving our own carbon efficiency 

by 10 percent two years in advance, in 

2010. Optimized transport routes, modern 

aircraft, alternative drive vehicles, 

and energy-efficient warehouses are just 

some of the ways in which we are reducing 

climate-damaging CO 2 

emissions. 

To measure our progress, we have integrated 

carbon accounting into our 

financial accounting system. The CO 2 

emissions calculations are based on our 

fuel and electricity consumption data, 

which is combined with operations data 

from the various divisions. This highly 

accurate method of calculation earned 

Deutsche Post DHL the “Green Controlling 

Award” in November 2011, which 

was conferred for the first time by the 

Péter Horváth Foundation. 

We have taken this approach because 

we see environmentally friendly and 

efficient logistics as an opportunity to 

create value – for the environment, for 

the company, for our customers, and for 

our shareholders. At Deutsche Post DHL, 

we believe that environmental protection 

and business success are not just compatible 

– they are closely interlinked. Sustainability 

is becoming more and more of 

a competitive advantage, as consumers 

increasingly consider environmental 

Going electric 

Air fleet modernization 

In 2011, DHL Express successfully switched to an 

all-electric fleet of 30 vehicles to handle its deliveries 

in downtown Manhattan, New York. This was part of 

Deutsche Post DHL’s global electric-vehicle testing 

program of 131 electric vehicles in the United States 

and Germany, to assess their usability in everyday 

operations. The company is also employing or testing 

hybrid, propane, and other alternative fuel vehicles, 

with some 1,500 vehicles in the Deutsche Post DHL 

fleet powered by alternative methods. 

The most significant share of Deutsche Post DHL’s 

direct CO 2 

emissions is generated by its air network. To 

help shrink this footprint, the company is continually 

investing in newer, more efficient aircraft that not only 

burn less fuel, but also generate less noise. 


115


aspects in their purchasing decisions. The 

same applies to investors who consult 

sustainability rankings when looking 

for viable investment options. 

Preparing a sustainable future 

Using fuels and other natural resources 

in a more sustainable way is critical, both 

for ensuring a better future and enabling 

the long-term success of Deutsche Post 

DHL. This focus on the long-term and 

concern for a sustainable future is also 

the driving force behind our groundbreaking 

series of publications called 

Delivering Tomorrow. With this series, 

the company is fostering a dialogue on 

key issues that will shape the world over 

the coming decades. 

Counting carbon 

DHL Express in the United States 

has launched two new carbonreporting 

services for customers 

looking to monitor and reduce 

their climate change impact. 

By expanding its GoGreen Carbon 

Estimate and GoGreen Carbon 

Footprint carbon-reporting 

services to the United States, 

DHL Express is responding to the 

growing priority many businesses 

are putting on being environmentally 

responsible. 

The Delivering Tomorrow series was 

launched in 2009 with an examination of 

customer expectations in 2020. This Delphi 

study shed light on pertinent trends 

in the economy, technology, and society 

up to the year 2020 and beyond. A year 

later, we delved into another important 

development of the future – the shift to 

more sustainable logistics. The findings 

showed that the pursuit of sustainability 

will transform the logistics industry, 

both in terms of its business model as 

well as the range of advanced solutions 

and technologies that will be used by 

logistics service providers going forward. 

We then rounded out the series in 2012 

with the logistics 2050 scenario study. 

This in-depth look into imaginative future 

scenarios reveals how, while we may 

not be able to make precise predictions 

in our interconnected world, thinking 

about the future can help us anticipate 

and prepare for change. 

Visionary thinking 

What types of trends and developments 

should we prepare for in the future? 

Could “green” growth help avoid the climate 

crash? Will mass consumption prevail 

everywhere? Will nations cooperate 

more closely, or will the world become 

more fragmented and protectionist? Will 

the drive toward ever-bigger economic 

efficiency be forsaken for more resilient 

supply structures? And, what new technologies 

will deliver the everyday goods 

of tomorrow? 

These are just some of the questions 

explored in “Logistics 2050 – A Scenario 

Study.” Based on astute observations 

from a large, multidisciplinary 

range of prominent experts, the study 

outlines how the world and logistics 

could change in the next four decades. 

In presenting alternative visions of the 

Future imperfect – 

Five scenarios for 

the world in 2050 

Delivering tomorrow 

To learn more about future 

trends in logistics and to access 

the studies in the Delivering 

Tomorrow series, go to: 

www.dp-dhl.com/en/logistics_around_us.html 

Scenario 1 shows a world that revolves around 

growth, unchecked materialism, and mass consumption. 

This unsustainable way of life is fed 

by the relentless exploitation of resources, which 

stokes climate change and spurs escalating 

natural disasters, thus leading to supply chain 

disruptions. 

In Scenario 2, sustainable megacities emerge 

as the world’s power centers amidst a paradigm 

shift to “green” growth, where institutions and 

companies collaborate to cater for urbanites 

and create efficient logistics solutions – from 

underground cargo transport to a sophisticated 

high-tech infrastructure. 


Good Practice 

Environment 

world in 2050, it takes a far-reaching 

look into the future of trade, business, 

and society. 

More than 40 well-known experts, including 

Klaus Töpfer – the former German 

environment minister and former director 

of the UN Environment Programme – 

helped develop the futuristic scenarios. 

The study describes five far-reaching, 

occasionally radical, versions of life in 

2050, and it is complemented by a series 

of multifaceted essays contemplating 

various aspects of the future (see the box 

for more on these). 

Taking responsibility for tomorrow 

In the words of Deutsche Post DHL CEO 

Frank Appel, “All of us must realize that 

it is our responsibility today to set the 

direction for tomorrow and the day after 

tomorrow.” 

Logistics have always moved the world 

and are doing so today in a much more 

resource-efficient and sustainable manner. 

Logistics companies are taking responsibility 

for their actions, while also 

helping their business customers operate 

in a more environmentally responsible 

manner. By taking a proactive role in 

seeking better alternatives and sparking a 

dialogue on more environmentally sound 

business practices, Deutsche Post DHL is 

upholding the spirit and Principles of 

the UN Global Compact to help deliver 

a better world for tomorrow. 

Delivering responsibility 

Deutsche Post DHL is committed to making a 

positive contribution to society and the environment. 

More about its corporate responsibility 

program: www.dp-dhl.com/en/responsibility.html 

Of course, in reality, the future will not 

conform to any one scenario, but may 

contain elements from all these hypotheses. 

In this regard, the most important 

common themes to emerge from 

among the scenarios are the broadly 

transformed role of logistics, along with 

a more prominent role of urban areas 

and the importance of sustainability 

topics. In particular, the threat posed by 

climate change stands out, calling for a 

responsible approach to the environment 

as a crucial consideration for shaping 

the future. 

About Deutsche Post DHL 

Deutsche Post DHL is the world’s leading mail and logistics services group. 

Some 475,000 employees in more than 220 countries and territories form 

a global network focused on service, quality, and sustainability. In 2012, 

Deutsche Post DHL revenues exceeded € 55 billion. The Group operates a 

fleet of more than 80,000 vehicles – some 1,500 of which are powered by 

alternative methods – and around 250 dedicated aircraft. 

Scenario 3 describes a world where individualization 

and personalized consumption are 

pervasive, driven by 3-D printing, leading to a 

rise in regional trade streams, with only raw 

materials and data still flowing globally. 

Scenario 4 describes a less rosy world beset by 

economic hardship, excessive nationalism, and 

protectionism, leading to international conflicts 

over resource deposits. 

And, in Scenario 5, accelerated climate change 

results in repeated supply failures and the 

need to create resilient, regionalized supply 

structures. The resilient world in 2050 relies on 

a logistics sector that ensures supply-security 

as a top priority, with backup infrastructure to 

guarantee reliable transport in unstable times. 


117


Piloting the Future: 

Environmentally-friendly 

Technologies 

Innovations are the key to ensuring the future of our society. Whether smart grids, networked 

transportation, and mobility solutions or virtualization of products – information and communication 

technologies (ICT) offer a wide range of solutions. But in order for a new invention 

to make it, it has to go through stringent practical testing. In T-City Friedrichshafen, the 

world’s largest living lab, Deutsche Telekom has been testing new environmentally-friendly 

technologies for the last six years. 

By Katja Brösse and Rainer Knirsch, Deutsche Telekom 

For Deutsche Telekom, developing and 

propagating environmentally-friendly 

technologies is not just an obligation 

under the Global Compact and a moral 

imperative, it is also a business opportunity. 

According to the study Smart2020 

Germany Addendum, around 207 megatons 

of CO 2 

equivalent can be saved 

by 2020 with the help of intelligent 

ICT solutions. Since 2007, the city of 

Friedrichshafen has been Deutsche 

Telekom’s future lab and partner under 

the motto “T-City Friedrichshafen. Living 

the future.” Taking a medium-sized city 

in Germany as an example, the project 

has realized examples of the Group’s 

vision of connected life and work. The 

findings from numerous projects are 

currently being used across Germany, 

for example in public administration, 

as well as by energy providers, private 

enterprise, and citizens. 

From test to reality 

Take, for example, De-Mail, the first form 

of binding and secure electronic communication. 

Before this secure mail service 

was launched across Germany on August 

31, 2012, De-Mail had already been 

piloted for six months in T-City Friedrichshafen 

with 40 participants from 

companies and administration and more 

than 1,000 retail customers. The service 

not only helps to save time and money, it 

is also environmentally-friendly. The Institute 

for Applied Ecology (Öko-Institut) 

in Freiburg drew up the product carbon 

footprint for De-Mail in accordance with 

ISO standard 14040 / 14044 and calculates 

that De-Mail can save 77 percent of the 

carbon emissions produced in the sending 

of conventional letters. Based on 

2013, this corresponds to 25,801 metric 

tons of CO 2 

or the annual energy requirement 

of around 10,500 four-person 

households. Even if some De-Mail users 

also print out the relevant documents, 

there is still a savings potential of 64 

percent. For 2015, Deutsche Telekom 

assumes even higher CO 2 

savings. 

In the energy segment, T-City 

worked with Technische Werke Friedrichshafen 

and other partners to extensively 

test the requirements for a 

smart grid. In the future, smart meters 

and smart grids will offer consumers 

greater transparency and thereby help 

to manage their electricity consumption 

in a more targeted way and save energy. 

But real-time information will also be 

required to make the grid fit for a future 

in which electricity will increasingly be 

generated locally by a large number of 

different producers through the inclusion 

of renewable energies. 

The initial test phase in 2008 focused 

on smart meters. Some 300 interested 

users tested the equipment in 

their homes and gave feedback on the 


Good Practice 

Environment 

functions. In 2009, two complete districts 

of Friedrichshafen with 1,600 households 

were networked, thereby taking the first 

step toward a smart grid. The pilot also 

allowed the project planners to test the 

basic functions and use the smart meters 

in different building / residential and 

installation situations. Billing options 

that enable new rate plans, thereby encouraging 

customers to save electricity, 

were also introduced. The findings from 

this project are being applied in the 

further development of the completely 

connected home. Smart-metering solutions 

have now been installed for a number 

of customers throughout Germany. 

According to SMARTer2020*, the smart 

grid sector could potentially result in a 

reduction of about 2 Gt CO 2 

equivalent 

overall by 2020. 

T-City has also piloted models for future 

mobility, which customers throughout 

Germany are now able to use: The 

“real-time ridesharing” service offered by 

flinc, a company from Darmstadt, mediates 

ridesharing options quickly and on 

the move, even for short journeys. The 

service enables drivers and passengers to 

find each other automatically. All users 

need is a smartphone. Real-time ridesharing 

connects the driver’s internet-capable 

navigation software with the smartphones 

of potential passengers. Using a real-time 

analysis of traffic movements, the system 

can tell the passenger in just a few seconds 

about rides available in cars on their requested 

route. The driver says how much 

he wants to charge in cents per kilometer. 

The smartphone app uses this figure to 

calculate the ride price and enables the 

passenger to make a price comparison of 

the various rides available, as well as to 

pay without cash using a one-click payment 

system. To use the service, users 

must first register on an online platform 

and enroll for cashless payment. 

Building on successes 

Overall, more than 40 projects from all 

areas of life have been implemented 

in five years. Based on positive experiences 

from the T-City project, the 

City of Friedrichshafen and Deutsche 

Telekom agreed in December 2011 to 

continue to work together for another 

three years. This further collaboration 

is to concentrate rigorously on major 

social challenges. The projects focus 

on the issues of energy, transportation, 

and healthcare, with partners building 

on previous successes. In the area of 

energy, the aim is to improve security 

of supply and save energy costs. In the 

area of transportation, the plan is to push 

ahead with the networking of different 

forms of transport, to reduce traffic, and 

– through progressive mobility systems – 

to protect the environment directly and 

indirectly. And finally, healthcare will be 

made safer and more affordable through 

technological developments. 

By carefully piloting the technologies 

and through direct customer feedback, 

future products and services will 

be optimized at an early stage. At the 

same time, potential partners and customers 

have the opportunity to check 

out solutions locally for themselves. In 

this way, Deutsche Telekom directly 

helps to research, improve, and propagate 

forward-looking, environmentallyfriendly 

technologies. 

* Global eSustainability Initiative (2012): 

SMARTer2020 – The Role of ICT in Driving 

a Sustainable Future. 


119

EDF Group 

Water management 

in action 

By EDF Group 

Water is used in energy production and supply, and, in turn, energy is used for pumping, 

moving, and treating water. As a result, in a context of climate change, the linkages between 

both energy and water systems have grown more complex and interdependent. 

For many years, the EDF Group has been 

developing specific skills in the fields 

of water resources management, meteorological 

forecast, and environment 

preservation in order to better optimize 

its power generation and water resources 

while protecting ecosystems. EDF operates 

nearly 500 hydropower plants and 

has been recognized for its worldwide 

experience in the design and operation 

of multi-purpose hydro schemes that 

deal with agriculture, drinking water, 

tourism, industry, and energy issues 

that involve a sustainable development 

perspective. 

In the field of thermal power plants (including 

nuclear), water is needed for cooling 

systems, either once-through cooling 

systems or re-circulating cooling systems 

(tower). Water intake, utilization, and 

thermal discharge are important parameters 

in terms of water resources. They 

are factored into optimization studies for 

the design, operation, and maintenance 

of power plant cooling circuits. While 

these circuits currently rate among the 

“best available techniques” for industrial 

cooling systems, efforts are continuously 

being made to improve their design and 

operation in order to limit their impact 

on water resources. Therefore, water 

is naturally at the heart of EDF’s core 

business and skills. 

Being aware of the current stakes related 

to the nexus between water, energy, and 

food, the EDF Group was deeply involved 

in preparations for the 6 th World Water 

Forum in Marseille in March 2012 – 

particularly in the key priority topics 

“Harmonize water and energy” and “Water, 

energy, food nexus” – and signed a 

dedicated partnership agreement with 

the International Committee of the 

Forum and the World Water Council. 

Following are the visible and strong 

commitments made by EDF, in particular 

regarding the assessment and management 

of the Group’s water footprint (or 

impacts) from its electricity generation. 

To deepen its knowledge of the synergies 

between water and electricity, the 

EDF Group – in conjunction with the 

scientific community – decides to invest 

the necessary means in the development 

of the methods and tools to estimate the 

water footprint of its activities of electricity 

production within the territories that 

welcome its facilities. 

The EDF Group makes a commitment 

to manage the water footprint of its 

activities of electricity production. In 

particular: 

• to carry on the improvements in performance 

in terms of water withdrawal 

and consumption of existing and future 

power plants; 

• to look for the best possible efficiency 

of the use of water on the scale of territories 

and catchment basins. 

In accordance with its CSR commitments, 

when it develops a project for electricity 

production in a territory, the EDF 

Group makes a commitment to create 

some value locally and to minimize its 

water footprint by integrating elements 

from the design phase. In particular, the 

EDF Group will use the Hydropower 

Sustainability Assessment Protocol of the 

International Hydropower Association 

for its hydro projects. 


Good Practice 

Environment 

Furthermore, the EDF Group will pursue 

the work started with the preparation 

of the 6th World Water Forum on the 

linkages between water, energy, and 

food, in particular with the Consortium 

of International Agricultural Research 

Centers and International Wetlands, who 

decided to join this last commitment 

by pursuing the works on the nexus 

between water, energy, and food. 

Corporate Responsibility – 

EDF Group is engaged in preserving water 

resources in all its activities 

(publication, starting in 2015, of the water footprint at Group level) 

Water valuation to optimize water use in the Durance Valley, France 

EDF used water valuation to help the decision-making process for optimal water 

management in the watershed along the 250 km Durance River, in southeast 

France, with respect to competing multi-purpose uses of water. These include 

agriculture, tourism (fishing, swimming, sailing, etc.), hydropower, drinking water, 

and flood control. The overall aim was to optimize water allocation between energy 

generation and irrigation and to develop appropriate incentives for water savings in 

order to restore financial margins, and to answer future water demand from other 

users. The value used for water was the energy cost (€ / kWh), based on current 

and future prices in France, linked to energy productivity (m 3 / kWh) and the volume 

of water used (m 3 ) by the hydropower plant. The main business argument for the 

valuation study was to clearly demonstrate the benefits of optimizing water uses 

for each party and to define the level of remuneration for this savings. The approach 

adopted was to implement a Water Saving Convention, signed by EDF and 

the two main irrigators, for a six-year period with the possibility to adjust it if it 

achieved better results than expected. To balance these efforts, EDF has made a 

commitment to remunerate the partners for their savings. The deal was so effective 

that a first additional agreement was signed in 2003 and a second one in 2006 

to increase the savings target from 44 to 65 and then to 90 million cubic meters – 

showing a decrease in agricultural consumption from 310 million cubic meters 

in 1997 to 201 million cubic meters in 2005. The results showed that, in addition 

to the volume of water saved, a key benefit was the timing of the water savings 

because the saved water could be used to generate more electricity during peak 

periods of electricity demand when electricity prices are higher. Both parties come 

out ahead, with a third winner being ecosystems, as around 84 percent of the water 

savings are used for ecological purposes. 

UTE Norte Fluminense: Keeping the planet blue 

In Brazil, UTE Norte Fluminense (EDF 90 %) has put in place a full program to 

reduce the use of water in its Macaé CCGT power station, in Rio State. The project 

started three years ago with the identification and reduction of all leaks and the 

reduction of purges. This first stage also involved ensuring employees were aware 

and involved. The results were impressive: a 30 percent reduction in water use. 

In 2011 the station management went further and launched the construction of a 

rainwater capture system, which allowed them to reduce by a further 5 percent 

the water extracted from the Macaé River (100,000 - 150,000 m 3 of rainwater is 

collected per year). Raising the bar further, 2012 saw the launch of a program to 

collect all processed water in order to re-inject it into the plant’s water circuits. 

The aim is to reduce water consumption by a further 15 percent. These large 

investments (€ 3.8 million), with a payback over 18 years, would not have seen 

the light of day without the support of the Board of Directors. But there were also 

indirect benefits: employees who are even more proud of their power station, subcontractors 

who are more involved, and local groups and NGOs who are on board 

with a thermal power plant whose operation is focused on respecting the environment. 

At the same time, UTE is collaborating with a university in Rio on research 

into reducing water evaporation from cooling towers, which represents 80 percent 

of water extractions from the river. 


121

Grundfos 

Making a sustainable 

business of sustainability 

By Hanne Joergensen, Grundfos 

Pump manufacturer Grundfos has faced up to its role in industrial energy overconsumption 

and the resulting CO 2 

emissions. The company’s response has been to rehabilitate its 

products from being energy offenders to becoming a genuine part of the solution. In the 

spirit of the Global Compact, Grundfos has also taken an active role in advocating the 

role of business in promoting greater environmental responsibility and developing 

environmentally-friendly technologies 


Good Practice 

Environment 

“A cap starting at the 2008 levels will 

allow us, in the long run, to head 

toward our ultimate goal of becoming 

emissions-neutral.” 

Karen Touborg, Manager, Group Environment, Health & Safety 

From humble beginnings in rural Denmark, 

the Grundfos Group has grown to 

become the world’s largest pump technology 

manufacturer with a presence 

in 55 countries. More than 16 million 

pump units roll off its production lines 

each year. In fact, it is fair to say that 

wherever you are in the world, you are 

never too far from a Grundfos pump or 

related product. 

Uniquely placed to make a 

difference 

Grundfos has always been progressive 

in terms of corporate sustainability and 

responsibility. It has an established set of 

business principles, a clearly communicated 

set of policies and strategies, and 

an organization dedicated to executing 

these strategies globally. 

When it comes to the practical application 

of these strategies, Grundfos naturally 

focuses on its key product: pumps. 

With good reason: Pumps actually represent 

one of the best opportunities to 

immediately curb global energy expenditures 

and carbon emissions. 

This is because pumps are working behind 

the scenes everywhere in our daily 

lives: from supplying water to domestic 

shower and kitchen facilities to moving 

any kinds of liquids in industrial complexes 

and processes. But even many 

Grundfos employees were surprised by 

the findings of a series of recent studies. 

These weighed up exactly how much 

of an impact pumps have on global energy 

resources and, implicitly, carbon 

emissions. And this is what they found: 

Pumps account for 10 percent of the 

world’s electricity consumption. At the 

same time, 20 percent of current global 

CO 2 

emissions come from the value 

chains in which Grundfos does business. 

Pumps account for 10 percent of 

the world’s electricity consumption. 

However, if every pump operator 

switched to high-efficiency 

pump systems, the world could 

immediately cut 4 percent of its 

electricity consumption – 

an amount equal to the residential 

electricity consumption of 

1 billion people. 

For Grundfos this information in the 

wider context of global warming has accelerated 

rather than prompted its many 

sustainability-focused initiatives. Long 

before carbon emissions or green legislation 

entered the general consciousness, 

Grundfos was exploring more energyefficient 

products. 

Pumps: already proven and present 

The result of Grundfos’ early interest in 

energy efficiency is that unlike many 

more high-profile sustainable-energy 

technologies, energy-efficient pumps 

are a proven reality. And, according to 

one estimate, if every pump operator 

switched to high-efficiency pump systems, 

the world could immediately cut 4 percent 

of its electricity consumption – an 

amount equal to the residential electricity 

consumption of 1 billion people. 

Grundfos Director of Sustainability, 

Pernille Blach Hansen, sums up her company’s 

view of the responsibility of industrial 

companies like itself: “Our energy 

usage continues to increase at an astonishing 

rate. Listening to most scientists 

and forecasts, we need to act now in order 

to reduce CO 2 

and create sustainable living 

patterns. We have the technologies 

needed – we just need to start using them, 

especially within the larger industrial 

sectors. They have a huge responsibility 

and societal obligation to lead the way.” 

Over the last decade, Grundfos has accepted 

its responsibility as a contributor 

to the world’s runaway energy consumption 

and the carbon emissions resulting 

from it. It now actively pursues a future 

in which its products and policies exemplify 

corporate sustainability at work. 

Getting its own house in order first 

Complying with corporate social responsibility 

calls for a change in habits within 

organizations of all sizes. In Grundfos’ 

case, the company has applied its aspirations 

to its own operations. 

That has included a cap on carbon emissions, 

with the company pledging to 

never exceed its 2008 CO 2 

output. Karen 

Touborg, Manager, Group Environment, 

Health & Safety, adds that “a cap starting 

at the 2008 levels will allow us, in the 

long run, to head toward our ultimate 

goal of becoming emissions-neutral.” 

Since 2009, ongoing efforts have ensured 

that all pump installations have been 

audited and, if necessary, replaced with 

high-efficiency pumps. More than 1,000 

pumps have been replaced in Grundfos’ 

Bjerringbro headquarters’ factories alone, 

with the resulting energy reductions 

ranging from 27 to 82 percent. 


123

Grundfos 

Grundfos has also committed itself to 

ensuring that all new buildings are energy-efficient, 

as befits a signatory to the 

World Business Council for Sustainable 

Development’s manifesto on Energy 

Efficiency in Buildings. Today, all new 

Grundfos buildings must be LEED Gold 

certified, while all renovations must 

meet LEED certification. 

A vivid example of this policy at work 

is the company’s recently refurbished 

British headquarters. This features energy-efficient 

pumps along with solar 

roof panels that supply hot water and 

supplement electricity usage. Similarly, 

Grundfos’ new Indian complex is packed 

with sustainability initiatives that have 

seen it become the country’s first goldrated 

green building. 

Putting aspiration into action 

Of the Ten Principles of the Global Compact, 

there are two that are especially 

close to Grundfos’ heart. These are Global 

Compact Principle 8: “Businesses should 

undertake initiatives to promote greater 

environmental responsibility” and 

Global Compact Principle 9: “Businesses 

should encourage the development and 

diffusion of environmentally friendly 

technologies.” Grundfos has actively 

delivered on both principles, bringing 

the full weight of its global reach and 

technological leadership. 

Fostering awareness of the 

challenge… 

Over the past few years Grundfos has 

put a great deal of focus on creating 

awareness of the role of pumps in industrial 

energy overconsumption, along 

with their potential as an immediate 

solution. This has centered on the Meet 

the Energy Challenge NOW campaign. 

Disseminated through multiple media 

channels, including social media, this 

campaign has targeted a broad array 

of relevant people, from company purchasers 

to CSR managers to politicians. 

Its goal is as crucial as it is simple – to 

make people understand just how real 

and present the issue is, while informing 

them how the ever-present pumps they 

take for granted could make an immediate 

and radical difference. 

As there are many who remain unconvinced 

of the reality or urgency of global 

warming, the campaign has also emphasized 

that reduced energy consumption 

translates to lower power bills and that 

energy-efficient installation or retrofitting 

may cost a little more to start with, 

but in the long run saves a lot of money. 

… and introducing a practical 

solution 

Meet the Energy Challenge NOW has 

been run in conjunction with the release 

of next-generation high-efficiency pump 

technology. Pumps are an often overlooked 

opportunity for energy savings. 

This is because most run at full speed at 

all times when, in fact, they rarely need to. 

A typical example of this is hotels, where 

very few guests will take showers during 

the late hours. This makes maintaining 


Good Practice 

Environment 

Water2life – safe and clean drinking 

water in the third world 

There are currently 1 billion people in the world who lack access to safe, clean 

water. Three million people, half of them under age five, die each year as a 

consequence. This has spurred Grundfos to develop an employee program in 

which its staff can donate money to the Water2Life scheme. 

This is a collaborative effort in which Grundfos and its external partners provide 

sustainable water solutions for some of the world’s poorest communities. 

These are based on Grundfos' own products and adapted to local conditions: 

from Vietnam, where water is plentiful but undrinkable, to arid Kenya, where 

Water2Life systems already make millions of liters of water available to 

16,000 people. This initiative enables Grundfos employees to help poor people 

gain access to one of the fundamentals of life – clean water. 

Act NOW – a forum 

for positive change 

Grundfos is a founding member of ACT NOW, a partnership platform made up of 

individuals from private, public, and nongovernmental organizations. It acts as 

a corporate forum and network for the exchange of energy-efficiency ideas and 

best practice examples. It also aims to generate awareness among commercial 

decision-makers by making the most of its unique position as a business-driven 

voice in the world of energy and climate initiatives. 

Pernille Blach Hansen believes more and 

more companies are joining Grundfos 

and realizing the long-term financial 

benefits offered by sustainable initiatives. 

She says: “Earlier, sustainability 

work was regarded as a marketing spend 

by most companies – something you 

ought to do. But today, more and more 

realize that it is an area that offers the 

benefit of both savings and a return on 

investment.” 

Eventually companies may no longer have 

a choice. Environmentally-focused legislation 

continues to tighten in response 

to greater awareness and acceptance of 

climate change. This means sustainable 

initiatives are very much an investment 

in the future. 

For Grundfos, a company with a unique 

capacity to make a real difference, sustainability 

has become a company ethos. 

It is an ethos that has enhanced rather 

than hindered profitability, providing a 

heartening example for companies that 

still regard corporate social responsibility 

as a forced expense rather than a viable 

business model. 

“Our course is set,” concludes Pernille 

Blach Hansen . “Our future as a company 

is closely bound with the Principles of 

the Global Compact and sustainable 

practice. It is not only the responsible 

thing to do, we believe this is the only 

way to sustain successful business into 

the future.” 

pumps at their maximum capacity at all 

times both unnecessary and wasteful. 

Grundfos’ intelligent pump solutions 

regulate themselves to avoid this. 

These energy-optimised pump solutions 

exemplify Grundfos’ contribution toward 

reductions in the use of industrial energy, 

in that they are a proven technology, accessible 

to everyone, and available now. 

Furthermore, most of these perform at a 

level that surpasses current and upcoming 

legislative requirements. 

Ultimately, it’s just good business 

Pernille Blach Hansen regards the success 

of Grundfos and the welfare of the environment 

and our society to be “mutually 

reinforcing.” She says: “Fundamentally, 

we believe that Grundfos and the societies 

in which we operate are interdependent. 

Successful companies need healthy societies, 

and healthy societies need successful 

companies. Therefore, our business 

decisions follow the principle of shared 

value – value that benefit both sides.” 

About Grundfos 

Established: 1945 

Headquarters: Bjerringbro, 

Denmark, represented in 

50 + countries 

Employees: 18,000 


125


MTU Aero Engines: Award- 

Winning Technology 

By Martina Vollmuth, MTU Aero Engines 

In view of increasingly scarce resources, rising fuel prices, and the growth in air traffic – which 

continues unabated at an average rate of 5 percent per year – passengers, people living in the 

vicinity of airports, authorities, organizations, and other players in the aviation industry are 

calling for more fuel-thrifty and cleaner aircraft and engines. MTU Aero Engines has been working 

on innovative technologies for decades to further improve the environmental compatibility 

of future engines. 

The target: Each new engine is to burn 

less fuel and be cleaner and quieter than 

its predecessor model. The key to success: 

With the PurePower® PW1000G Geared 

Turbofan (GTF), MTU and its US partner 

Pratt & Whitney have developed a solution 

for meeting the exacting requirements 

of the future. They are building 

a highly advanced engine that burns 15 

percent less fuel, emits 15 percent less 

CO 2 

, and cuts the perceived noise level 

in half. It marks the debut of a new family 

of environmentally friendly engines. 

An indispensable, key component of the 

GTF is MTU’s high-speed, low-pressure 

turbine. Germany’s leading engine 

builder has been specializing in lowpressure 

turbines (LPT) for aircraft engines 

for decades and has become the 

world’s technology leader in this field. 

The company’s masterpiece is the highspeed 

turbine for the GTF, which beats 

conventional models by a wide margin. 

MTU is the leading manufacturer of this 

engine component worldwide. In March 

and April 2013, the company won two 

German Industry Innovation Awards for 

the novel technology. 


Good Practice 

Environment 

The geared turbofan is based on an entirely 

new engine architecture: What sets 

this innovative propulsion system apart 

is that it features a reduction gearbox 

between the fan – that is, the large 

rotor at the engine inlet – and the lowpressure 

turbine, which drives the fan. 

With today’s engines, the two are seated 

on a common shaft. Uncoupling the 

two components allows the fan with its 

large diameter to rotate more slowly and 

the turbine to rotate much faster. This 

lets the individual components achieve 

their respective optimum speeds, greatly 

boosting the geared turbofan’s efficiency. 

The result is a significant reduction in 

fuel consumption, emissions of CO 2 

, and 

noise; moreover, the propulsion system 

is much lighter than a conventional engine, 

as it has fewer stages, and hence a 

lower parts count. 

Apart from the high-speed, low-pressure 

turbine, MTU also contributes the forward 

four stages of the high-pressure 

compressor to the GTF. This new transonic 

compressor is characterized by a markedly 

increased efficiency, which gives it a 

clear edge over most existing commercial 

models. It comes as an all-blisk design – 

blisks (blade-integrated disks) are hightech 

rotors in which the disk and blades 

are produced as a single piece, eliminating 

the need for blade roots and disk 

slots. This increases strength and lowers 

weight. The GTF is a textbook example of 

successful technology development funding: 

Two of its key components – the 

high-speed, low-pressure turbine and the 

high-pressure compressor – are based on 

technologies developed under national 

and European research programs. With 

both components, MTU is setting new 

standards worldwide. 

The GTF concept is catching on: The 

engine has meanwhile developed into 

a bestseller. Some 3,500 orders have 

been received to date. First applications 

include the Bombardier CSeries and 

Mitsubishi MRJ regional jets, the Airbus 

A320neo short- and medium-haul 

aircraft, and the Irkut MS-21. Last but 

not least, Embraer, too, has selected the 

clean engine as the powerplant for its 

second-generation E-Jets. 

The geared turbofan offers even more 

savings potential, and work on its optimization 

has already commenced. Jointly 

with Bauhaus Luftfahrt, MTU has defined 

an ambitious program to further reduce 

the CO 2 

emissions of aircraft engines: 

With its Clean Air Engine (Claire) technology 

initiative, the company aims to 

reduce its CO 2 

emissions by 30 percent 

by the year 2035 in staged goals. The 

GTF engine alone already provides a 

reduction in CO 2 

emissions of around 

15 percent. The second stage is aimed 

at reducing emissions by at least 20 

percent by the year 2025. This can be 

achieved by making thrust generation 

even more efficient, for instance through 

the further development of individual 

components or through the use of a 

shrouded, counter-rotating propfan. The 

necessary technologies were developed 

by MTU already back in the 1980s. The 

company expects to achieve the 30 percent 

target in 2035. In the third and last 

stage, the efficiency of the core engine 

will be further enhanced, for example 

through the use of a heat exchanger. 

MTU – An established global player 

With more than 75 years in the aircraft engine business, MTU Aero Engines 

and its predecessor companies have acquired unique expertise and experience 

that makes it an established player and must-have partner in the engine community. 

The company is a technological leader in high-pressure compressors, 

low-pressure turbines, manufacturing processes, and repair techniques. 

MTU has a workforce of 8,500 employees worldwide and operates affiliates 

in all important regions and markets. The site in the north of Munich is home 

to its corporate headquarters and the MTU Group’s biggest location. In fiscal 

2012, the company posted consolidated sales of around € 3.4 billion. MTU 

Maintenance is the world’s largest independent provider of maintenance 

services for commercial engines. In the military arena, MTU Aero Engines is 

Germany’s leading industrial company for practically all engines flown by the 

country’s military. 

MTU is fully committed to operating in a green and sustainable manner. The 

company makes it a point to ensure that its products as well as its manufacturing 

and maintenance processes meet the most stringent environmental 

standards. MTU makes conscious use of resources, materials, and energy, 

and it keeps noise and pollutant emissions in its production and maintenance 

shops as low as possible. The German engine manufacturer takes its responsibility 

for the environment very seriously: The protection of the environment 

is one of MTU’s corporate objectives and a responsibility shared by everyone in 

the organization. 


127


Implementation of the 

Biodiversity Action Plan 

on Sakhalin Island 

By Andrey Samatov, Valentina Andreeva, Alexey Vladimirov, and Elena Arkhipova, Sakhalin Energy 

As the first company in Russia to start shelf hydrocarbons production from offshore iceresistant 

platforms and liquefied natural gas production, Sakhalin Energy can be justifiably 

proud of its achievements in the field of environmental protection. The environmental 

control, local monitoring, and conservation of biodiversity programs implemented by 

Sakhalin Energy are among best practices and are aimed at minimizing the impacts on the 

unique ecosystems of Sakhalin Island. 

When carrying out any work, one of our 

foremost priorities is to comply with 

Russian and international requirements. 

The Company undertakes a large number 

of long-term programs and reviews the 

environmental conditions in the vicinity 

of the project facilities while monitoring 

flora and vegetation, avifauna, mammals, 

soil, ground waters, river ecosystems, 

and the marine environment. These 

priorities are reflected in Sakhalin Energy’s 

Sustainable Development Policy, 

Commitments and Policy on HSE and 

Social Performance, Biodiversity Standard, 

among other things. 

In 2008 the Company developed an integrated 

Biodiversity Action Plan (BAP). In 

a way, this plan became the end result 

of the Company’s multi-year efforts for 

environmental preservation. The plan 

systematizes the Company’s experience 

and simultaneously defines further actions 

to be taken under environmental 

monitoring and adverse impact mitigation. 

It describes the framework and rationale 

to support monitoring programs 

that Sakhalin Energy, its stakeholders, 

government authorities, and project 

lenders believe are important – not 

only because it provides environmental 

protection, but also because it makes 

good business sense. 

The Biodiversity Action Plan includes 

programs to preserve the most important 

rare and threatened species (gray whales, 

the Steller’s Sea Eagle, Hucho perryi) as 

well as programs for the conservation 

of particularly vulnerable ecosystems 

(e. g., wetlands, area of protected bird 

colonies adjacent to the Chayvo lagoon, 

and the coastal zone of Aniva Bay around 

the Prigorodnoye production complex). 

Sakhalin Energy’s BAP was approved by 

the Biodiversity Expert Working Group 

of the Sakhalin Oblast Environmental 

Council and was highly praised by independent 

international experts and 

Sakhalin-2 project lenders. Thus, the 

BAP implementation is supported by all 

stakeholders at both the national and 

international levels. Below are short 

descriptions of some of those programs. 

• Gray whales 

Every summer a small gray whale group 

feeds off the northeast coast of Sakhalin, 

near the Piltun-Astokhskoye oil-gas 

field. This proximity obliges Sakhalin 

Energy to take enhanced environmental 

protection measures in its offshore 

activities. Recognizing the potential 

impact, Sakhalin Energy – together 

with Exxon Neftegaz Ltd., the operator 

of Sakhalin-1 – has been financing 

programs to study and monitor the 

gray whales since 1996. 

In association with the IUCN 

Western Gray Whale Advisory Panel, 

initiated by Sakhalin Energy in 2004, 

the Company has used the data from 

these studies to draw up and implement 

a plan for monitoring and mitigat- 


Good Practice 

Environment 

ing effects on the gray whale population. 

Following up on the experts’ 

recommendations, Sakhalin Energy 

has adjusted their production plans. 

So, despite the considerable financial 

costs, the construction of a pipeline for 

a year was postponed, the route was 

changed, a seismic survey was postponed, 

etc. Within the framework of 

the research on gray whales, there was 

during the multi-year construction, the 

eagle’s fertility rate remained at the 

average for the population. 

To assess the condition of the whole 

population, the Company’s studies covered 

not only the potentially impacted 

area, but also a vast territory in the 

northeastern part of Sakhalin. Once 

Sakhalin-2 entered the operational phase, 

the Company updated the monitoring 

• Ballast water discharge 

The migration of alien organisms from 

one region to another within ships’ ballast 

water poses a global problem, often 

leading to major environmental and 

economic disasters. Sakhalin Energy 

decided to use international practices 

based on the IMO Convention for the 

Control and Management of Ships’ Ballast 

Water and Sediments requirements. 

also an international satellite tagging 

program, which has already yielded 

some very interesting results about 

the migration patterns of animals in 

the North Pacific Ocean. 

The program’s details are presented 

on the IUCN website www.iucn. 

org/wgwap/ and at “Gray Whales. The 

Sakhalin Story” at www.sakhalinenergy. 

ru/ru/documents/wgw_book_web.pdf. 

• Steller’s Sea Eagles 

A program was launched in 2004 to study 

and preserve the Steller’s Sea Eagle in 

the northeastern part of Sakhalin. In the 

course of construction work, Sakhalin 

Energy paid a great deal of attention to 

impact mitigation. For example, each of 

the occupied nests impacted by construction 

was assigned as a protective zone; 

eagle couples were constantly monitored 

in certain nesting areas where the potential 

impact was high, etc. These efforts 

minimized the construction’s impact: 

All nesting areas were preserved, and 

program. For details, see “The Steller’s 

Sea Eagle” at www.sakhalinenergy.ru/en/ 

documents/Steller_Sea_Eagle.pdf. 

• Wetlands 

Sakhalin wetlands have a unique value 

to Sakhalin’s natural environment. The 

wetlands absorb precipitation and feed 

water to streams and rivers, maintaining 

the surface water balance, and are 

therefore very important for migrating 

and spawning salmon. It is necessary 

for Sakhalin Energy to make sure pipeline 

construction does not affect these 

fragile ecosystems. Mitigation measures 

included temporary restrictions on 

work; requirements for equipment; 

arrangement of plank roads (temporary 

roads); earthworks only for the trench 

line; and reclamation of right-of-way. 

The Company monitored the reinstatement 

of wetlands after construction 

as well as any potential long-term 

impacts caused by the construction or 

presence of pipelines. 

Although Russia ratified the Convention 

in April 2012, it will not take effect 

until it is signed by 30 maritime nations 

holding 35 percent of the world’s 

merchant tonnage. 

As early as 2009, Sakhalin Energy 

developed and implemented an 

integrated Ballast Water Management 

Policy. For the purpose of compliance 

with this policy, each vessel is inspected 

for a number of parameters, and discharge 

is allowed only after confirmation 

of ballast water replacement 

in the open sea. Efficiency of these 

control measures is checked through 

biological analysis of ballast waters of 

the tankers. 

Every year since 2007, the Company 

has been monitoring Aniva Bay 

near Prigorodnoye production complex 

by sampling and analyzing plankton, 

benthos, and epibioses. Monitored results 

have led to the firm conclusion 

that the Company’s controls are highly 

effective. 


129


Comprehensive Ways of 

Communication on 

Anti-Corruption Measures 

and Compliance 

By Jenice Hartmann, Business Keeper 

Nowadays, there is agreement within companies and the 

public that neither corruption nor other contraventions 

of national and international regulations are acceptable. 

Corruption causes an estimated economic harm of up to 

US $ 4 trillion per year; the number of unreported cases and 

not quantifiable social harm through the erosion of trust 

and the economic systems is much higher. As is publicly 

known, companies such as Wal-Mart, Monsanto, and 

General Electric were strongly sanctioned by government 

and society for their corrupt business activities. In times 

of financial crisis, a sustainable business model is more 

important than ever to ensure the necessary social 

acceptance and “license to operate.” 

Hypo Alpe-Adria’s communication 

with respect to the implementation 

of the BKMS® System as one result 

of its efforts to introduce an effective 

Compliance Organization 

This is one of the reasons why multinational 

companies as well as an increasing 

number of small and medium-sized 

companies – and not only members of 

the Global Compact that comply with 

Principle 10 – have established compliance 

units in order to guide and control 

the legal behavior of all actors in the 

company. 

There are many stakeholders who should 

be informed about companies’ targets, 

measures, and projects regarding the prevention 

of corruption. Besides customers, 

suppliers, the government, and society, 

the employees are a very important target 

group. They should know very well the 

documents that compliance departments 

usually elaborate upon – that is to say 

codes of conduct and guidelines on different 

topics, for example anti-corruption 

guidelines. Unfortunately, these documents 

often remain unnoticed in the 

everyday work process and are therefore 

not sufficiently effective. 

The challenges that compliance units 

face are providing a convincing introduction 

and to continuously communicate 

the principles of responsible conduct 

and accompanying measures. The admittedly 

rather dry nature of juridical 

facts, rules, and laws may create even 

greater difficulties. Therefore, it is one 

thing to establish guidelines and codes, 

but bringing them to life, getting the 


Good Practice 


message across, and teaching employees 

how to act responsibly, to respect the fine 

line between prohibited and allowed 

behavior, and to recognize this grey area 

is another thing completely. 

Merck’s distinctive Compliance Communication 

Campaign when introducing 

a new Whistleblowing System 

“To establish compliance processes, structures, 

codes of conduct, and to integrate 

an effective whistleblowing system normally 

outweighs the effort to set up 

adequate communication measures. We 

need to develop a certain awareness regarding 

the communication toward the 

desired target group. Communication is 

crucial for the success, acceptance, and 

efficiency of the compliance program,” 

says Kenan Tur, founder and Executive 

Board Member of Business Keeper AG. 

Hence, communication on compliance 

must be practically-oriented, innovative, 

and convincing. Only through the 

continuous sensitization of employees 

regarding the important topic of anticorruption 

and compliance can lasting 

changes be achieved and an overall 

consciousness of value-based economic 

practices be developed and maintained. 

Thus, it is advisable to tackle the corporate 

culture, which in turn may necessitate 

a change management. Following the 

theory of Kurt Lewin, the first step is to 

catch freezing. This can be reached, for 

example, by offering the clear positioning 

of the CEO on the topic of anti-corruption. 

Announced in different communication 

channels, it emphasizes the relevance of 

compliance with the support of the top 

management and shows that the written 

values are actively pursued. During the 

second phase, the moving, new solutions 

are generated, new behaviors are tried, 

and a change movement is carried out. 

At this point, the employees must be addressed 

with adequate communication 

instruments and be sensitized to these. 

The ideal case would entail integrated 

thinking, which means that integrity and 

compliance are automatically included 

as elements of every decision within the 

company. Within the context of the last 

phase, the refreezing, communication 

channels that should be used are defined 

in case misconduct is observed. The manifold 

possibilities include the line manager, 

the compliance team, and a functioning 

whistleblowing system that guarantees 

confidentiality or even anonymity. 

In this context, it is advisable that the 

compliance units make use of the specific 

competences of the communication 

departments. A campaign using joint 

forces may be much more effective than 

the mere dissemination of compliance 

content. 

For too long, compliance departments 

have disregarded the fact that communication 

toward the target group not only 

needs to be informative but also convincing 

in order to increase consciousness 

and encourage acceptance for compliance 

issues and whistleblowing systems. 

Internal communication on compliance 

topics must nowadays be practical and 

true-to-life. Therefore, compliance and 

corporate communication departments 

have to align their communication efforts 

to close this gap. For globally engaged 

enterprises it is advisable to consider 

cultural differences – for example, based 

on historical incidents in the country – 

when launching a whistleblowing system. 

In general, a decentralized and culturally 

adapted communication is likely to 

generate higher acceptance throughout 

the stakeholders. 

It needs to be considered that compliance 

without adequate communication can 

lead to the same risks as the nonexistence 

of compliance – or even worse. With respect 

to recent scandals in the corporate 

world, one can ask why contraventions 

still occur even if extensive compliance 

structures have been built. One of the 

reasons might be that the potential of 

a genuine compliance communication 

has not yet been exploited. 

Business Keeper AG 

Business Keeper AG is located 

in Berlin, Germany, and provides 

the BKMS® System as a unique 

solution to establish a 24 / 7 

whistleblowing system in order 

to discover contravention and 

misconduct at an early stage. 

Today, the BKMS® System is used 

in more than 196 countries and 

regions worldwide and is available 

in 52 languages. 

Customers of Business Keeper AG 

appreciate the certified security 

of the application as well as the 

fact that only authorized examiners 

have access to the data. The 

postbox functionality, which the 

whistleblower can use while 

remaining anonymous, bridges the 

gap between anonymity and the 

dialogue between the examiner 

and the whistleblower. Possessing 

more than 10 years of experience, 

Business Keeper AG is a reliable 

and competent compliance partner 

for companies and organizations. 


131

Thales 

Integrity, As a Core 

Strategic Imperative! 

The technological expertise that the company has been cultivating for more than a century 

is crucial to the security of people, goods, and information. Thales is therefore in a unique 

position and has a particular responsibility to its stakeholders and to society at large. 

By Dominique Lamoureux, Thales 

From compliance … 

A corporate responsibility policy is a 

basic necessity for any company that 

has made a commitment to sustainable 

growth and recognizes the true role of 

its stakeholders. For Thales, the primary 

objective of a corporate responsibility 

(CR) policy is to ensure compliance not 

only with a vast array of legal and regulatory 

requirements, but also with a growing 

number of standards, best practice 

guidelines, and recommendations issued 

by international organizations and civil 

society. It is important to meet expectations 

of the public at large on a range 

of environmental and social issues and 

those of the society. By embracing these 

new responsibilities, companies such 

as Thales clearly benefit in terms of image 

and reputation. By incorporating 

practical prevention policies into their 

risk-management processes, fraudulent 

practices are also less likely to occur and 

legal sanctions can be avoided. Companies 

with strict CR policies therefore 

deliver better overall performance. 

… to a corporate global responsibility 

focused on performance 

As an international company, Thales 

conducts its business in a strategic space 

of global dimensions and growing complexity. 

Thus, the Group has put in place 

a proactive integrity policy and attaches 

the utmost importance to ethical business 

practices with respect to customers, 

suppliers, employees, shareholders, 

financial markets, the environment, and 

society at large. 

Thales considers CR to be a strategic imperative 

for the Group, in that it opens 

up opportunities for innovation, creates 

competitive advantages, and contributes 

directly to the future success of the 

company. This approach is supported 

by a Group-wide Code of Ethics and 

a dedicated organization in charge of 

ensuring compliance with the principles 

it sets forth. 

A comprehensive training and awareness 

policy is in place across the Group 

to promote participation by all Thales 

employees and foster a shared sense 

of belonging that is anchored in the 

concepts of ethics and responsibility. 

Focusing on excellence and long-term 

sustainability, this approach builds collective 

intelligence on the basis of mutual 

trust and respect. It forms a common vision 

of the issues Thales faces by sharing 

meaningful information with others in 

order to understand the risks involved 

and to find innovative, proactive responses 

that stakeholders expect. 

Driven by a common vision of the 

Group’s business and its role in society 

– and empowered by irreproachable 

ethical conduct – each employee 

contributes actively and collectively to 

the long-term sustainability and performance 

of Thales. 


Good Practice 


A GLOBAL LEADER IN THE QUEST FOR SECURITY 

With operations in 56 countries and 66,000 employees – of whom 22,500 are 

high-level researchers and engineers – Thales is a world leader in critical information 

systems for the defense, security, aerospace, and transportation markets. 

Building on its expertise in the most sophisticated technologies and large-scale 

software systems, Thales is stepping up to the security challenges of its customers 

in an increasingly complex world. The Group has earned particular recognition 

for its ability to develop and deploy dual civil and military technologies. 

Leveraging its international operations and spanning the entire value chain – from 

equipment to systems and services – Thales plays a pivotal role in making the 

world a safer place. 

http://sustainability.thalesgroup.com 

Zero tolerance 

Corruption represents a major risk for 

multinational corporations, particularly 

for those that bid on public contracts. 

The practices of solicitation, extortion, 

and passive corruption are still very frequent 

in countries with weak governance. 

This type of practice can expose a company 

and its officers to civil and criminal 

penalties and, in addition, be extremely 

damaging in terms of reputation. 

At the end of the 1990s, in order to mitigate 

these risks, Thales established a 

policy to prevent corruption that has 

since been incorporated into a process 

for continuous improvement. 

The Group’s compliance and integrity 

program is regularly evaluated and adjusted 

on the basis of changes in internal 

and external risks and the Group’s commercial 

strategy. 

This global compliance and integrity 

program is based on: 

• international organization and dedicated 

resources that are responsible 

for ensuring the implementation of 

systems and procedures to prevent 

corruption; 

• the integration of procedures to prevent 

the risk of corruption within the company’s 

operational processes, particularly 

during commercial transactions 

involving third parties; 

• internal alert channels available to the 

employees; 

• a robust internal control and audit 

process; 

• programs to increase awareness and to 

inform and train Group employees – 

programs that are primarily intended 

for those with the greatest potential 

exposure (marketing, sales, projects, 

and purchasing). 

The policy of “zero tolerance” for any 

act of corruption is fully supported by 

the Group corporate management and 

Board of Directors. 

The participation of the Group within 

professional, intergovernmental, and 

nongovernmental organizations is also 

one of the key factors of its policy to 

prevent corruption and to share and 

disseminate best practices. Thales has 

contributed to the establishment of directives 

and common standards for all business 

sectors, such as the “Best Practice 

Guidance on Internal Controls, Ethics, 

and Compliance” of the OECD and – 

more specifically for the aerospace and 

defense sector – the Common Industry 

Standards in Europe, and the Global 

Principles of Business Ethics, published 

by the International Forum on Business 

Ethical Conduct (www.ifbec.info), which 

is a joint structure of the AeroSpace and 

Defence Industries Association of Europe 

and the Aerospace Industries Association 

of America and of which Thales is 

a founding member. 

In 2012, Thales was ranked as one of the 

top 10 companies in the defense sector 

by Transparency International, an NGO 

working to fight corruption worldwide. 

Transparency International’s Defence 

Companies Anti-Corruption Index 2012 

report (http://companies.defenceindex. 

org/report) presents an analysis of the 

corruption prevention programs of the 

world’s 129 biggest companies in the 

defense sector. 

GC aDVANCED LEVEL 

Since 2003, Thales has been a 

proud participant in and supporter 

of the United Nations Global 

Compact and has adopted its 

Ten Principles. 

Reflecting the relevance of its 

actions in CR, Thales saw its 

UN Global Compact performance 

rating be raised from “active” to 

“advanced” in 2012. Among the 

7,300 companies that are participants 

of the Global Compact, to 

date only 386 have been awarded 

“Global Compact Advanced” status, 

18 of them being French and 

only one being in the aerospace 

and defense sector. 


133

Good Practice 

Overall, the Global Compact pursues two 

complementary objectives: 

1| Mainstream the Ten Principles in business activities around the world 

2| Catalyze actions in support of broader UN goals, including the Millennium 

Development Goals (MDGs) 

134 



136 

140 

142 

144 

148 

150 

BASF 


HOCHTIEF 

MAN 

Ricoh 

Volkswagen 

Development 

152 

153 

154 

156 

158 

160 

162 

166 

Camposol 

Copeinca 

Coop 

ITOCHU 

Nestlé 

Prosegur 

Sanofi 



168 

170 

172 


Bradesco 



135

BASF 

Applied Sustainability for 

the Foodstuffs Industry 

By Christine Haupt, BASF 

Around nine billion people will live on planet earth in the year 2050. This outlook poses 

enormous global challenges to us. Innovative strategies turn challenges into opportunities, 

especially in the chemical industry: BASF’s products and solutions will contribute to 

conserving resources, ensuring healthy food and nutrition, and improving quality of life. 

Sustainability and innovation will be significant driving forces. Three selected case studies 

show how BASF collaborates in the field of nutrition and health with its customers to 

produce consumer goods more sustainably. 

A continuous improvement for creating more sustainable beef is good news for future generations. 


Good Practice 


Rewarded for their long-term sustainability 

strategy: Dr. Helfried Giesen, 

Spokesman of the Westfleisch 

Executive Board (left), and Jörg Bartel, 

head of the company’s Central Quality 

Management unit. 

Innovative product developments and 

strategic sustainability tools are tangible 

measures with which BASF emphasizes 

its corporate mission: “We create chemistry 

for a sustainable future.” One example 

is SET – applied sustainability, 

which is a customer-oriented sustainability 

strategy that helps improving sustainability 

along the entire value chain. 

BASF’s division Nutrition & Health develops, 

produces, and markets a comprehensive 

range of products and services 

for human and animal nutrition, as well 

as the pharmaceutical, flavor, and fragrance 

industries. The division strives 

to contribute to a better quality of life 

by improving the nutrition, health, and 

well-being of people across the world. A 

balance between economic, ecological, 

and social needs is a prerequisite to successfully 

finding the best solutions for a 

sustainable future. The SET team works 

together with and for BASF customers and 

other stakeholders to achieve this balance. 

Understanding and activating 

value chains 

Consumers and retailers are increasingly 

looking for products that contribute to 

a more sustainable lifestyle. SET – applied 

sustainability helps foodstuffs 

producers measure the sustainability 

of their products and identifies specific 

potential for improvements along the 

entire value chain: from the use of raw 

materials through to production and 

all the way to consumption by the endconsumer 

and finally disposal. 

As “The Chemical Company,” BASF possesses 

an extraordinarily wide range of 

expertise in different industries. Thus, 

customers in the foodstuffs industry 

benefit from close collaboration among 

BASF’s agricultural experts, feed and food 

ingredient specialists, packaging experts, 

as well as from BASF’s comprehensive 

view on sustainability challenges along 

the entire value chain. Well-integrated in 

its different stages, BASF can activate the 

value chain for sustainable development. 

This widespread network also lets BASF 

maintain a clear understanding of what 

moves the market. BASF is a founding 

member and board member of The Sustainability 

Consortium (TSC), an independent 

network that also includes leading and 

globally active wholesale corporations and 

consumer goods manufacturers. “We’re 

active in the TSC in order to understand 

consumer expectations from the point 

of view of retailers and of our customers. 

This lets us anticipate market demands 

and find innovative solutions,” explains 

Kristina Gräper, head of SET – applied 

sustainability, BASF Nutrition & Health. 

SET – applied sustainability is distinguished 

from many sustainability initiatives 

by its direct relationship to the 

product. SET – applied sustainability 

applies comprehensive sustainability 

analyses and strategies to actual customer 

products, making sustainability tangible 

and measurable. Whether it is orange 

juice, headache pills, fragrances, or beef – 

every product can be continuously made 

more sustainably, regardless of whether it 

is produced in a conventional manner or 

under the provisions of an organic “Bio” 

standard. SET – applied sustainability 

takes products “on a journey” to higher 

sustainability. “The proof of improved 

sustainability creates additional value 

for the consumer, the producer, and his 

brand,” explains Gräper. 

Award-winning sustainability 

strategy 

A specific example of applied sustainability 

is the CO 2 

balance calculated together 

with meat product marketer Westfleisch 

for the complete pork, beef, and veal 

production chains. Headquartered in 

Germany, Westfleisch is one of Europe’s 

largest marketers of meat products. 

The SET team, led at the European level 

by Dr. Christoph Günther, investigated 

the amount of greenhouse gas (CO 2 

e) 

generated along the entire value creation 

chain. Knowing how much greenhouse 


137

BASF 

More sustainably-produced foodstuffs 

match the consumer’s taste. 

rape, and wheat was replaced by barley, 

since barley requires less fertilizer. New 

technologies in the stall also cut down on 

energy consumption. Also, animal feed 

conversion was improved. These measures 

were visibly successful: A review of 

the values for pork carried out three years 

later showed a reduction of 3 percent in 

the annual amount of greenhouse gas 

emitted to the earth’s atmosphere. 

“Thanks to SET, as a leading company 

in the meat production sector, we were 

able to calculate a detailed CO 2 

footprint 

for our products. This lets us distinguish 

ourselves from market competition and 

actively accommodate our trade partners 

while meeting consumer expectations at 

the same time,” says Dr. Helfried Giesen, 

CEO Westfleisch. On May 3, 2013, Westfleisch 

received the “Meat Vision Award 

2013” from the Industry Press of the 

Deutsche Fachverlag for its long-term 

and rigorously implemented sustainability 

strategy. 

Value chain profits from optimized 

fish feed 

gas emissions are generated – and where 

exactly along the value chain – is the 

crucial prerequisite for continuously 

reducing emissions and effectively communicating 

this success to the market. 

Christoph Günther explains: “There are 

a variety of levers for fine-tuning the 

improvement of sustainability. With 

our comprehensive approach we find 

potential for optimization and help our 

customers exploit this potential.” In 2010 

the first CO 2 

balance for pork clearly 

showed how strongly the production of 

animal feed affects the CO 2 

balance: More 

than 50 percent of the CO 2 

footprint for 

pork production was based on this factor. 

This included CO 2 

-relevant fertilizers 

and measures for plant breeding and 

plant protection upstream in the value 

creation chain. 

Westfleisch took some effective steps, 

together with its mixed-feed partners: 

The soya in feed imported from overseas 

was replaced in part by domestic oil-seed 

Another example of applied sustainability 

is the optimization of fish feed for the 

Norwegian fish feed producer BioMar. 

Since 2007 the SET team and the BASF 

Sustainability Strategy unit have been 

working together with the customer 

on a long-term sustainability strategy. 

The goal: Producing salmon feed more 

environmentally friendly and ensuring 

a nutritionally ideal diet for the fish. 

Here the BASF team investigated the 

lifecycle of BioMar products and measured 

their sustainability along the entire 

value chain. The analyses clearly showed 

that an increase in the amount of added 

plant proteins and a more balanced 

use of fish meals and fish oils would 


Good Practice 


Jan Sverre Røsstad, Vice President, 

BioMar North Sea, works closely with 

BASF on its sustainability strategy. 

make the feed more sustainable: The 

feed consumed less in terms of marine 

resources. 

At the same time the diet was matched to 

the needs of the salmon. With the help 

of the Eco-Efficiency Analysis that was 

developed by BASF and has been successfully 

applied for over 15 years to more 

than 500 products and processes, BioMar 

was able to determine fish diets that 

were optimal for both the salmon and 

for BioMar. Here BioMar regularly uses 

the BASF Eco-Efficiency Manager, which 

is an online tool that accesses the jointly 

collected data in real time and simulates 

the environmental and economic effects 

of alternative feed recipes at any time. 

Salmon fed with optimized fish feeds are 

among the highest-quality types and are 

a favored choice for salmon-branding 

purposes. Jan Sverre Røsstad, Vice President, 

BioMar North Sea, emphasizes the 

benefits for all involved: “This strategic 

approach and the innovative tools 

from BASF are helpful to all players in 

the value chain: BioMar, fish farmers, 

processors, retailers, and other stakeholders 

as well. Making sustainability 

tangible and applying it at the product 

level with SET is very beneficial for us 

and our products.” The comprehensive 

sustainability strategy of BioMar has 

been certified under the ProSustain 

standard of the foundation Det Norske 

Veritas. The foundation has used an independent 

evaluation system to define 

standards for continuous improvements 

in product sustainability. 

More sustainable beef – A tangible 

vision? 

A juicy, nutritious beef steak has been 

an integral part of the human diet for 

thousands of years. At the same time, 

concern is growing about the social, 

ecological, and economic impacts of 

worldwide beef consumption. The US 

National Cattlemen’s Beef Association 

(a contractor to the Beef Checkoff) commissioned 

the SET team with the performance 

of a comprehensive sustainability 

analysis. The overall goal of the entire 

project is to take the beef industry on 

a journey for continuous improvement 

for creating more sustainable beef. In 

the first phase, scientists, consumers, 

merchants, nongovernmental organizations, 

producers, and other stakeholders 

were surveyed as to which sustainability 

topics are the most relevant, from their 

points of view, along the entire value 

chain for beef in North America and 

where improvements are necessary. For 

this purpose, the respondents denominated 

the most urgent environmental, 

social, and economic topics related to 

beef production and consumption. This 

“outside-in-view” is crucial to gain additional 

market understanding. 

In a second step, the SET team investigates 

exactly how sustainably the US 

beef industry actually produces beef 

and how various measures can impact 

ecological, social, and economic factors. 

The experts analyze the manufacturing 

processes of the US beef industry – from 

feed production to animal husbandry 

all the way to beef consumption over 

time. This quantitative analysis creates 

a scientific basis for sound decision making 

when it comes to enhancing the 

sustainability of manufactured goods 

and designing an end-to-end strategy 

that fosters greater sustainability. The 

baseline data from the analyses will be 

used to analyze opportunities for improvement 

and establish a direction for 

improving the sustainability attributes of 

the beef industry. When the project as a 

whole is completed, the beef producers 

will receive a tool that will help them 

continuously optimize their operations 

in ecological and economic terms. 

All three examples above show that there 

are no standard paths on the journey toward 

more sustainability. Each company 

and industry sector has highly varied 

opportunities for approaching the topic 

for itself and its customers. Established 

evaluation methods and independent 

certification help to make the topic tangible 

and to convincingly communicate 

progress made. All those involved profit 

greatly by using multistakeholder networks 

such as the UN Global Compact 

to exchange information on positive 

examples as well as on difficulties encountered, 

making it possible to learn 

from one another while working toward 

a more sustainable future. 


139


Combining Sustainability 

with Happiness 

Coca-Cola has been operating in Germany for more than 80 years and was named the world’s 

most valuable brand yet again in 2012 by Interbrand. Consumers increasingly expect the manufacturers 

of their favorite brands to operate in an ecologically, socially, and economically responsible 

manner in order to protect the natural resources of society – today and in the future. 

In 2011 Coca-Cola Germany was presented with the Silver Award for Sustainable Manufacturer 

by Die Verbraucher Initiative e.V. (consumer initiative association). 

By Uwe Kleinert, Coca-Cola Deutschland 

The strategy of Coca-Cola Germany is 

not geared toward individual sustainable 

products but toward the entire production 

and distribution process for all 

products. In this connection, goals have 

been defined in seven fields of sustainability. 

With a view toward a balanced 

diet, the company offers more than 70 

products in all segments of non-alcoholic 

beverages – from soft drinks such as 

sports drinks, iced teas, juices, and juice 

spritzers to several types of water. For all 

soft drinks, iced teas, and sports drinks, 

there is always a sugar-free and caloriefree 

alternative. Transparent product 

information on the label ensures that 

consumers can obtain comprehensive 

information to make the right purchasing 

choice. 

At the same time, Coca-Cola has committed 

itself to responsible marketing and 

sales and has this audited externally: We 

respect the role of parents and the school 

in the education of children. Therefore, 

we do not target any advertising to children 

below the age of 12 and consider 

schools to be advertising-free zones. In 

concrete terms, this means that: no advertising 

is inserted in media that targets 

more than 35 percent of children below 

the age of 12; no beverages are sold in 

primary schools; in secondary schools, 

products from at least three beverage 

categories are offered, including one that 

is calorie-free; and vending machines 

are designed in a brand-neutral manner. 

Coca-Cola Germany also promotes active 

lifestyles on a day-to-day basis through 

“Mission Olympic – Wanted: Germany’s 

most active city,” which is an initiative 

for urban citizens to make private 

commitments to engage in more physical 

activity. Coca-Cola has set itself the 

goal of producing in a water-neutral 

manner by 2020. With the Water Saver 

Program, developed together with WWF, 

water consumption in the production 

process is being continuously reduced. 

Processed water is treated and fed back 

into the water circuit in such a way that 

it corresponds to natural conditions to 

protect the fish. 


Good Practice 


Finally, the water required for the beverages 

themselves is to be replaced by 2020 

through water recovery projects (e. g. 

rain recovery, building of wells). Already 

today, around 400 of these projects are 

up and running around the world. In the 

field of climate protection, the company 

is working on the supply chain in areas 

in which the highest savings can be 

reached, for example through the use 

of self-developed energy-saving modules, 

which lower energy consumption for 

about 85,000 cooling facilities by up 

to 30 percent. 

The Energy Saver Program – developed 

in conjunction with WWF – saves energy 

during production; electricity for production 

has been procured exclusively from 

renewable energy sources since 2011. 

In the field of packaging, new technologies 

are continuously saving material. 

Coca-Cola has developed the PlantBottle 

and launched the first plastic bottle that 

consists partly of renewable resources. 

The long-term goal is to produce the 

plastic bottles from 2020 onwards from 

PlantBottle bottles only, and hence save 

on raw materials. With a recycled share 

of more than 60 percent, Coca-Cola boasts 

a share that is almost three 

times higher than the 

market average for 

non-alcoholic beverages 

(22.4 %). 

As an employer, 

Coca-Cola 

promotes 

above all 

the diversity 

of its 

associates 

and women 

in management 

positions. 

The 

community 

commitment of 

the company and 

its associates at the 

more than 60 locations 

in Germany are part of the 

basic understanding of corporate 

social responsibility. The company 

organizes every year a sustainability 

activation month, during which more 

than 500 associates are involved in 40 to 

50 regional ecological or social projects. 

In 2012 Coca-Cola Germany published 

its second Sustainability Report, now 

at the highest level (A+) of the Global 

Reporting Initiative (GRI), and it also issued 

its declaration of conformity under 

the German Sustainability Code. At the 

point of sale, the most important topics 

can be retrieved using the barcoo app, 

which permits access to independent information 

on products via a smartphone, 

and through which the complete report 

can be obtained. 

Sustainability messages are also increasingly 

included in brand communication. 

Dialog with stakeholders has shown that 

these groups expect Coca-Cola to use the 

strength of its brands to draw attention 

to social challenges, contribute to their 

solution, and hence motivate consumers 

to engage in a more sustainable lifestyle. 

A survey conducted together with Die Verbraucher 

Initiative e.V. showed, moreover, 

that people associate sustainability today 

more strongly with joy of living than with 

renunciation. Sustainability matches the 

core values of many Coca-Cola brands. 

Already in the past, the Xmas truck tour 

was used to support social initiatives 

financially and in terms of communication 

(Nordoff Robbins Foundation, SOS 

children villages, A Heart for Children). 

Today, Mission Olympic places happiness 

and physical activity center stage and 

Coca-Cola leverages the awareness of its 

own brands in order to promote socially 

relevant topics. With Coca-Cola light, 

the company wishes to raise awareness 

about the heart health of women. In 

December 2011, it started the initiative 

“Listen to Your Heart” with the German 

Society for Gender Medicine as a partner. 

This was followed in 2012 by the Fanta 

Playground Initiative for safer and free 

playing, together with the German Child 

and Youth Welfare Organization and TÜV 

Rheinland. The company envisages an 

increasing integration of these aspects 

into its communication about future 

brands that represent a positive attitude 

toward life. 

Coca-Cola has been represented 

in Germany since 1929. Today 

more than 10,000 associates 

work at more than 60 locations 

in Germany – 24 of which are 

production facilities. Coca-Cola 

offers more than 70 products in all 

segments of non-alcoholic beverages. 

A socio-economic impact 

study by the consultants Steward 

Redqueen showed that through the 

entire value chain of Coca-Cola in 

Germany, a total economic output 

of € 6.1 billion is generated directly 

and indirectly, € 2.9 billion is paid 

in taxes, and 119,000 jobs are 

protected. 


141

HOCHTIEF 

Community Involvement 

and Construction 

Expertise 

By Ann-Kristin Brönnecke, HOCHTIEF 

For HOCHTIEF, bridge-building is a many-sided subject. It is both a core business and part 

of our corporate vision – and it plays an important role in the international construction 

group’s community involvement. Together with the organization Bridges to Prosperity and 

its own employees, the company is building footbridges in developing countries – with 

tangible success. 

Bridge-building is one of HOCHTIEF’s core 

competences. During the 140 years of its 

corporate history, the construction group 

has built many bridges all over the world. 

Bridges connect people, span bodies of 

water and gorges, and even cross national 

borders and continents. Some of them – 

such as the Öresund Bridge, or the bridge 

over the Bosporus – are world-famous. 

Moreover, our Corporate Vision states: 

“We link people and organizations and 

create new ways to think and act.” 

Since 2009 HOCHTIEF has been putting 

this part of its vision into very real practice 

in the area of corporate responsibility. 

At the time, HOCHTIEF’s US subsidiary, 

Flatiron, and the nongovernmental organization 

Bridges to Prosperity (B2P) 


Good Practice 


signed a long-term cooperation agreement 

with the aim of jointly building 

footbridges in structurally weak regions 

of Central and South America. These 

bridges are an important part of the 

public infrastructure, as they provide 

the local people with access to education, 

medical care, and markets. They 

thus permanently create better living 

conditions and open up opportunities. 

Group-wide commitment 

In the meantime, the entire HOCHTIEF 

Group is involved with B2P. Apart from 

Flatiron, HOCHTIEF’s other American 

subsidiaries also work with the NGO, 

and HOCHTIEF Europe’s collaboration 

began in 2012. While the US subsidiaries 

are focusing their efforts on projects in 

Latin America, HOCHTIEF is also active 

in Africa. To date, the collaboration has 

resulted in seven bridges in Latin America 

and one in Rwanda. Further projects are 

already being planned for the coming 

years. Two bridges in Rwanda and three 

in Nicaragua are to be built in 2013 alone. 

The initiator, Flatiron, still has the greatest 

level of involvement: In strategic 

partnership with B2P, the constructions 

experts developed the prototype of a 

suspension bridge that can be built anywhere 

in the world in a similar form and 

with few means. 

up of employees with practical and construction 

site experience: Anybody from 

engineers to financial experts can apply 

for a place on the team. It is only the key 

positions – involving construction or logistics 

management, for example – that 

require specialists. Ultimately, employees 

from entirely disparate corporate units 

and professions end up working hand 

in hand. 

In-house identification with the B2P 

projects is high. At Flatiron alone, since 

this collaboration started the number of 

employees who agree with the statement 

“My employer’s community involvement 

is good,” rose from 64 to 91 percent. 

For each project – including the first 

HOCHTIEF project in 2012 – around 10 

times as many volunteers applied than 

were required, despite the prospect of 

camping in the most basic conditions 

and the physically challenging work. 

The comments from those chosen to take 

part are positive, with team spirit, the 

chance of doing some good, and getting 

to know different cultures making up for 

some of the physical pressures. Those 

employees who primarily work at a desk 

are particularly enthusiastic about the 

Tangible development aid 

opportunity of “physically producing 

something themselves.” And it is not only 

the local volunteers who are motivated 

by seeing the bridge grow little by little 

every day: For HOCHTIEF, too, as the 

sponsor, it is of great advantage to see 

directly where and how funding is being 

used and to know that it is going straight 

to where it is needed, with no detours. 

Benefits for all involved 

The collaboration between HOCHTIEF 

and Bridges to Prosperity has positive effects 

for all sides: The local communities 

benefit directly in the shape of an improved 

infrastructure and, thanks to the 

bridges, are strengthened for the future. 

B2P can call on the construction group’s 

expertise and carry out its mission with 

the funding that is made available. Finally, 

with this collaboration HOCHTIEF 

has found the ideal way of realizing its 

social responsibility: The company can 

bring in its core competences, the internal 

networking and motivation effect is 

enormous, and every bridge built delivers 

clearly measurable results. HOCHTIEF 

and B2P – all in all, a true communityinvolvement 

success story! 

Teamwork is central 

HOCHTIEF’s involvement with B2P is 

not restricted to the financing of bridge 

projects and the provisioning of knowhow 

to the NGO. A crucial advantage of 

this sponsorship is that the company’s 

employees can get involved directly as 

well. For each project HOCHTIEF seconds 

a 10-member team to build the bridge on 

site, together with the local villagers and 

B2P representatives. There, everybody 

has to work hard: It often takes pure 

muscle to deliver stones, cement, wood, 

and sand to the construction site, where 

they are then processed rapidly, using 

simple means. It is worth noting that 

the group of volunteers is not only made 

Bridges to Prosperity was founded in 2001 with the aim of providing people in 

remote and structurally weak regions with access to education, medical care, 

and markets through the construction of footbridges. While functioning infrastructure 

is routine in industrial countries, in developing countries simply crossing 

a river to the neighboring community can often be a dangerous undertaking, 

or involve detours of many kilometers. 

B2P uses the example of a project in Nepal to show just how great the impact 

of such a bridge can be for the local people. Data prior to and after the bridge 

construction were compared: The number of pupils attending classes rose by 

12 percent; medical facilities recorded a 25 percent increase in patients; and 

per capita income rose by 20 percent. 

In the 11 years since it was founded, B2P has built more than 100 bridges in 

Africa, Central and South America, and Southeast Asia, eight of which were 

built together with HOCHTIEF Group companies. 


143

MAN 

Customer Dialog Drives 

Sustainable Product 

Innovations 

By Yvonne Benkert, MAN 

Stakeholders present companies with very different challenges. The MAN Group responds 

by inviting stakeholders to communicate their expectations and opinions. To this end, 

MAN conducts systemized surveys every year and discusses specific issues with selected 

stakeholders. As customers represent a very important stakeholder group for MAN and 

also have a major influence on whether efficient products are used, they are central to 

our corporate responsibility activities. In 2012 we further intensified our dialog with 

customers at the two leading trade fairs for our industry, IAA Commercial Vehicles and the 

SMM maritime trade fair. 

As a global player in the field of transport-related 

engineering, MAN faces a 

variety of very different expectations 

from its stakeholders. Taking these into 

account builds trust and acceptance. 

The Company is therefore guided by 

the expectations and opinions of those 

stakeholders with whom it maintains a 

close relationship: customers and employees; 

suppliers and other business 

partners; analysts and investors; science 

and government; municipalities; 

and NGOs. They give MAN important 

input for its corporate responsibility (CR) 

strategy, helping identify opportunities 

and risks, align products with customer 

needs, and harmonize business processes 

with the interests of society. 

MAN conducts an intensive dialog with 

its stakeholders to exchange information 

and ideas and proactively learn about 

their requirements and expectations. 

Here the Company uses a variety of channels 

– from stakeholder and customer 

surveys to a presence at international 

trade fairs and joint research projects 

with universities. 

2012 Stakeholder Survey 

Since 2010 MAN has conducted and 

continuously expanded an annual international 

web-based stakeholder survey 

which delivers detailed insights into 

stakeholder expectations. Responses in 

2012 showed that the more successful 

MAN’s CR activities are, the higher 

stakeholder expectations become. Of the 

approximately 600 stakeholders selected, 

around 40 percent took part in the survey. 

One-third of the participants were from 

Germany, followed by China (19 percent) 

and India (9 percent). 

Top five challeN - 

ges for MAN 

1. Resource conservation 

(74 percent) 

2. Climate change 

(67 percent) 

3. Diversity and equal opportunity 

(42 percent) 

4. Globalization 

(40 percent) 

5. Urbanization and megacities 

(36 percent) 

Source: MAN 2012 Stakeholder Survey. 

The arrows indicate how the issue was 

rated in comparison to the previous year. 


Good Practice 


The MAN Group 

The MAN Group, headquartered 

in Munich, Germany, is one of 

Europe’s top commercial vehicle, 

engine, and mechanical engineering 

companies. As a producer 

of trucks, buses, diesel engines, 

turbomachinery, and special gear 

units, in all our divisions we hold 

leading market positions. MAN’s 

core business activities shape pioneering 

transportation and energy 

solutions that are both ecological 

and economical and meet the 

needs of customers and society. 

Particularly quiet and with zero-emissions, the MAN Metropolis truck handles heavy-duty 

urban roles such as trash collection. 

The MAN Group employs some 

54,300 employees in more than 

150 countries and includes the 

companies MAN Truck & Bus, 

MAN Latin America, MAN Diesel 

& Turbo, and Renk. In 2012 the 

Company reported revenue of approximately 

€ 15.8 billion. 

In 2012 stakeholders again indicated 

that resource conservation and climate 

change are the two greatest challenges 

facing MAN. They rated climate change 

six percent higher than in the previous 

year (see graphic). Stakeholders’ awareness 

of diversity and equal opportunity 

issues has shown a strong increase – 

they are therefore considered the thirdlargest 

challenge for MAN. The issue of 

globalization was rated about the same 

as in the previous year. According to the 

stakeholders, the subject of urbanization 

and megacities is also relevant to 

MAN, because in its role as a supplier of 

transportation solutions, the Company 

can make a major contribution here. 

The vast majority of the stakeholders 

rated MAN’s overall CR performance 

between adequate and above average. 

The Company received especially good 

marks for the fields of product responsibility, 

environmental protection, and 

corporate governance. Participants said 

they would like the Company to show 

more initiative in terms of social responsibility 

and corporate citizenship as 

well as human rights and responsibility 

toward its employees. However, more 

than three-quarters of the stakeholders 

found that MAN’s approach to sustainable 

business practices is credible. “The 

ratings given by our stakeholders are a 

valuable instrument that allow us to 

regularly adapt our CR activities to shifting 

challenges,” says Jochen Schumm, 

Chief Human Resources Officer of MAN 

SE and MAN Truck & Bus. The results 

of the annual surveys feed into MAN’s 

existing materiality analysis, from which 

the CR Roadmap takes its lead. The 

Roadmap not only includes concrete 

targets extending to 2015, but also shows 

what MAN has achieved in the past year 

and what the Company is working on 

at present. 

Customer dialog at international 

trade fairs 

Customers form a large and important 

stakeholder group for MAN. They decide 

which trucks make up vehicle fleets, 

which turbines are used to generate 

power, and which engines propel ships. 

At trade fairs, the Company informs 

customers about the products and solutions 

it is offering in these fields – and 

explains which ones are particularly efficient 

and environmentally compatible. 

The employees who represent MAN at 

these events learn through face-to-face 

conversations and from written questionnaires 

what requirements and challenges 

their customers are facing. 


145

MAN 

World premieres at IAA Commercial 

Vehicles fair 

Held every two years in Hanover, Germany, 

the IAA Commercial Vehicles fair is 

the most important innovation and trend 

forum for commercial vehicle manufacturers. 

In 2012 MAN presented a total of 

twelve innovations from the truck, bus, 

engine, and service sectors. The crowdpuller 

and most-photographed vehicle 

at this key fair was the Concept S prototype 

truck. The streamlined semitrailer 

combination – featuring an especially 

aerodynamic semitrailer manufactured 

by Krone – has the same load volume 

as a conventional truck but an extremely 

low drag coefficient at the level of a passenger 

car. This leads to a drop in fuel 

consumption of up to 25 percent and 

thus to a corresponding reduction in 

CO 2 

emissions. Zero local emissions and 

particularly quiet operation in all-electric 

mode are characteristics of the MAN 

Metropolis truck. Its lithium-ion battery 

is simply plugged into an electric socket 

for recharging. A car diesel engine serves 

as a range extender, providing security 

for longer distances. 

MAN also premiered its new, Euro VIcompliant 

TG family of trucks as well 

as its NEOPLAN Jetliner buses and MAN 

Lion’s Coach EfficientLine at the trade fair. 

These vehicles also drew tens of thousands 

of visitors to the Company’s stand who 

were interested in solutions that promise 

significant improvements in efficiency. 

Growing demand for low-emission 

marine engines 

In 2012 MAN Diesel & Turbo presented 

its products at SMM (shipbuilding, 

machinery, and marine technology), 

the world’s largest maritime trade fair, 

which was held in Hamburg, Germany. 

At this event, too, customer interest was 

focused on boosting efficiency – not 

least because starting in 2013, all newly 

built ships must meet the criteria of the 

International Maritime Organization’s 

(IMO) Energy Efficiency Design Index 

(EEDI). This states how many grams of 

CO 2 

a ship may emit per ton of cargo and 

nautical mile. MAN’s emission-reducing 

innovations already meet these requirements 

today. These include the G-type 

two-stroke engines, which by decreasing 

the speed of a vessel – an approach 

known as “slow streaming” – cut the 

ship’s fuel consumption. 

A dual-fuel large-bore diesel engine was 

the highlight on the MAN stand at the 

SMM fair, where it was displayed as part 

of a 14-meter-long drivetrain consisting 

of engine, clutch, transmission, and 

propeller. The engine can be run on oil 

or natural gas. In gas mode it already 

meets the IMO’s Tier III emission standards, 

which will become mandatory for 

international maritime shipping in 2016. 

In certain coastal areas, the standards 

require an 80 percent reduction in emissions 

of oxides of nitrogen compared to 

Customer survey at 2012 IAA Commercial 

Vehicles 

More than 70 percent of our customers call for environmentally compatible and 

resource-efficient solutions. They are also willing to pay more for such products. 

This was shown in a survey of 276 truck customers and 79 bus customers 

conducted at the IAA Commercial Vehicles fair in September 2012. In addition, 

97 percent of participants believed that MAN is responding to climate change 

responsibly and developing appropriate solutions. 


Good Practice 


2000 levels. MAN Diesel & Turbo has 

developed an integrated gas strategy for 

its customers called “Bluefire,” bringing 

together gas technologies that represent 

efficient alternatives for energy production: 

gas engines for power plants, dualfuel 

engines which can run on either 

gas or diesel in stationary and maritime 

applications, and industrial gas turbines. 

Stricter emission standards and climbing 

fuel prices are leading customers to 

demand solutions that are more environmentally 

compatible and at the same 

time more economical. “Our dual-fuel 

and gas engines are optimally designed 

to meet these requirements,” emphasizes 

Dr. René Umlauft, Chief Executive Officer 

of MAN Diesel & Turbo and member of 

the MAN SE Executive Board. “We must, 

however, keep listening to our customers 

so we can understand what their needs 

will be in the future – this is the only 

way we can stay ahead of the game.” 

Studying the future of urban 

mobility 

Aiming to better understand future urban 

mobility requirements, Technische 

Universität München (TUM – Technical 

University of Munich) is currently working 

on a study commissioned by MAN called 

“What Cities Want”. The study is examining 

15 cities on five continents – from 

Shanghai to London to Los Angeles – and 

analyzing global trends in urban traffic. 

Researchers are first defining the status 

quo of mobility, then studying how it will 

look in the future and what role the different 

modes of transportation will play. The 

goal is also to find out how the issues of 

climate change and noise emissions will 

impact on cities’ future mobility planning. 

The study is being conducted against the 

backdrop of the megatrend urbanization, 

which is characterized by sharp population 

growth in cities. This is leading 

to new requirement profiles. Growing 

numbers of people are traveling within 

and between cities. Inhabitants must 

be supplied with food and consumer 

goods; the waste they generate must be 

removed. As MAN helps design infrastructure 

solutions in line with these 

trends, the Company will build on the 

key foundation provided by the joint 

study with TUM. “Only if we have an 

in-depth knowledge of future trends can 

we develop products today that will meet 

society’s needs tomorrow,” explains Dr. 

Kirsten Broecheler, who is heading up 

the project for MAN. The results of the 

study are expected in 2013. 

Dialog with customers – for today 

and tomorrow 

MAN’s stakeholder dialog on products 

has two objectives. The Company is aiming 

to make existing environmentally 

Pictures from left to right: 

The streamlined MAN Concept S truck 

with the AeroLiner semitrailer from 

trailer manufacturer Krone. 

The MAN Truck & Bus stand at the IAA 

Commercial Vehicles fair in Hanover. 

Traffic in São Paulo, Brazil, one of the 

cities whose transportation system 

is being analyzed in the “What Cities 

Want” study. 

compatible technologies the preferred 

products of its customers. And MAN 

also wants to get to know its customers’ 

future environmental and efficiency 

requirements, so as to work with them 

to develop the right solutions. Ongoing 

dialog with customers lays the foundation 

for the Company’s success – today 

and tomorrow. In keeping with this priority, 

which is firmly anchored in MAN’s 

corporate culture, the Company became 

a participant of the UN Global Compact 

in December 2010. MAN thereby made a 

comprehensive commitment to supporting 

and implementing all Ten Principles 

of the Global Compact. 


147

Ricoh 

Managing CSR Across 

Boundaries 

By Andrew Lofts, Ricoh 

From the very beginning, Ricoh has been energized by combining innovative products and 

services with a sustainable approach to business. The company’s founder, Kiyoshi Ichimura, 

nurtured a unique pool of thinkers who envisioned a world where business, society, and the 

planet are interconnected. As a group, we have a regional framework whereby we connect 

to the collective imagination and creativity of all our people, which ensures alignment 

across all regions. To support Ricoh’s goals and meet social expectations, accurately and 

promptly, the Ricoh Group actively introduces internationally-established CSR frameworks 

throughout its supply chain. 

To facilitate this commitment and 

growth, we are working to make social 

and environmental contributions 

toward the sustainable development of 

society. With globalization expanding 

and deepening in recent years, issues 

facing society are becoming increasingly 

complicated and diversified. In tandem 

with this social change come increasing 

changes in the business environment. In 

this situation, corporations are expected 

to make meaningful contributions toward 

overcoming multiple social issues 

while also creating economic value. 

Ricoh was one of the first companies to 

become a participant to the UN Global 

Compact in 2002 and the first corporation 

in Japan to establish a dedicated 

Corporate Social Responsibility division 

in 2003, within Ricoh Europe, the CSR 

Office was formed in 2006. The division 

produced the Ricoh CSR Charter and 

Ricoh Code of Conduct, which was 

based on the principles defined in the 

UN Global Compact. It also incorporated 

the principles and philosophies 

of Ricoh’s founder. Currently Ricoh is 

reviewing the use of ISO 26000 and 

its operating companies in Europe are 

now evaluating how best to use this 

framework to deliver more value to 

all stakeholders. 

Ricoh has a wide stakeholder group that 

is involved on a global basis. It reviews 

the CSR activities of its partner companies 

and key members of its global 

supply chain against international CSR 

frameworks and makes continuous improvements 

through a self-assessment 

process. As it pursues business growth 

while simultaneously helping to support 

the development of society, Ricoh 

recognizes the need to do more than just 

respond to constantly changing environments 

and to the needs of society. Ricoh 

believes it is necessary to work as a member 

of society to create new value that 

will facilitate sustainable social growth 

and to address various challenges facing 

society. With this understanding, it is 

proactively cooperating with a variety of 

stakeholders globally in implementing 

social initiatives and activities. It proactively 

involves its individual employees 

in these activities through corporate 

programs and regional employee-volunteering 

schemes. It expects that each of 

these activities will increase awareness 

of social issues and help employees to 

understand how they can contribute 

to solving such issues by encouraging 

them to take action. In 2012 a Global 

Social Policy was launched, which covers 

three themes: 

• Global Environment Conservation 

• Community Development 

• Raising the Next Generation 

Putting good intention into 

practice: social issues 

In its value-creating CSR activities that 

revolve around local communities, the 

Ricoh Group provides its products, services, 

and human resources for the 

purpose of contributing to the resolution 

of social problems in developing 

countries. In 2011, Ricoh launched 


Good Practice 


Concept of a sustainable society: The Comet Circle 

Product 

manufacturer 

Parts 

manufacturer 

Materials 

manufacturer 

Fossil and mineral resources etc. 

Materials 

supplier 

Sales 

company 

Reuse of parts 

User 

Long use 

Reuse of products 

Maintenance 

company 

Product 

recovery 

center 

Parts 

recovery 

center 

Closed loop 

materials 

recycling 

Materials 

recovery 

company 

User of 

recycling 

materials 

Open loop 

materials 

recycling 

Oil 

recovery 

company, 

smelting 

company 

Generation of raw materials 

• Chemical recycling 

• Metals recycling 

Metals 

Collection 

center 

Recycling 

center 

Sorting and disassembly 

Shredder 

company 

Shredder dust 

Dissambly oil 

Thermal 

energy 

collection 

company 

Energy recovery 

(Energy, CO 2 

) 

Final 

disposal 

company 

Crushing of products 

Landfill 

© 1994 RICOH 

the Education Support Program in the 

Medak District in Andhra Pradesh State, 

situated in the south of India, and has 

been working together with Save the 

Children to help improve local education 

conditions. Ricoh employees visited 

the area, where they conducted a field 

survey and interviewed school faculty, 

educational bureau staff, parents, and 

children, through which various issues 

were identified. Among the several issues 

listed, the study pointed out that 

most schools did not have any printing 

machines or duplicators, which meant 

that teachers did not have any means 

to print tests and teaching materials 

and that communities could not share 

information effectively. 

To address this issue, Ricoh implemented 

a program to donate digital duplicators 

to local schools and educational 

institutions. Training is provided to 

children, teachers, and officials of local 

governments on how to use the 

machines for the purposes of improving 

the quality of classes and helping 

community residents to share information 

effectively. At the same time, with 

the aim of improving the educational 

environment in the target area, Ricoh 

is conducting educational activities, 

for instance, hosting seminars for the 

school management committee and 

organizing “children's groups.” 

Putting good intention into 

practice: environmental issues 

For the Ricoh Group to become the type 

of organization it envisions, not only 

does the Group need to realize change 

toward the creation of a sustainable 

society, but society as a whole also needs 

to realize such change. In 1994, Ricoh 

established the Comet Circle as the basis 

to encourage such change. The Comet 

Circle expresses the greater picture of its 

environmental-impact-reduction scheme, 

which includes not only the scope of the 

Ricoh Group as a manufacturer and sales 

company, but also the entire lifecycle of 

its products, including upstream and 

downstream of its business activities. 

For the seventh year, Ricoh has supported 

the annual United Nations World 

Environment Day to raise awareness of 

its commitment to reducing its environmental 

impacts and to encourage positive 

change among employees, suppliers, 

and customers. 

By linking its environmental commitment 

to forward-thinking business 

strategies, Ricoh promotes development 

that is profitable and sustainable at customer 

sites as well as its own operations. 

Ricoh's services include supporting 

the migration from paper to electronic 

invoicing, realizing savings of up to 

90 percent and through the Sustainability 

Optimisation program, which 

typically reduces CO 2 

by 33 percent. 

Ricoh continually reviews sustainability 

requirements on a people, plant, and 

profits basis. Ricoh takes the lead in its 

industry to ensure that all stakeholders 

are fully informed and have the opportunity 

to work in a collaborative way to 

achieve the needs of all. 


149

Volkswagen 

Increased Road Safety – 

All over the World 

Volkswagen produces vehicles of the highest quality and reliability, resulting in the highest 

level of safety for customers. But closing a sale is not the end of our responsibilities. On the 

contrary, whether our customers are in Mumbai, Beijing, or Wolfsburg, we provide them with 

targeted training to help them feel safe while driving. The worrying figures in international 

accident statistics, especially from emerging economies, have led us to respond in this manner. 

The Volkswagen Group is actively engaging with various traffic-training programs tailored 

to the individual markets – our motto is: “Every traffic-related death is one too many.” The 

Group includes the German market in these efforts, of course. The Autostadt in Wolfsburg – 

which offers a world of experience in these matters as well as a communication platform for 

all things to do with mobility – has a “Learn Park” for children 5 to 11 years old and offers 

them the chance to obtain a “child driver’s license.” Meanwhile, in the “safety training track,” 

parents experience first-hand that a cautious driving style not only increases safety but is also 

good for the environment. 

By Julia Glogowski, Volkswagen 

It is the youngest on the road who warrant 

our attention – A common image 

is of a child running after a ball onto the 

road, and maybe even in front of a car. 

Working together with schools, clubs, 

and public services, the various Group 

brands are providing different measures 

all over the world to help protect people. 

Approximately 100,000 children at the 

Cordoba and Pacheco sites have been 

trained in the ABCs of how to behave in 

traffic using the role-playing as well as 

the successful traffic education project 

“Juegoteca Volkswagen de Seguridad Vial,” 

developed by Volkswagen Argentina 

together with local schools. 

Some sites are also campaign for more 

safety on roads leading to schools, which 

are particularly problematic, as well as 

investing in play areas and the improvement 

of pedestrian crossings. But what 

use are the ABCs to children if adults 

have not learned the basics? Three out 


Good Practice 


of four children in the United States 

are not buckled in correctly: a statistic 

that can prove fatal in the event of an 

accident. Volkswagen of America is using 

the “SitSafe” program to train their 

customers in the correct use of child 

safety seats and seatbelts. 

Traffic education as a publicity magnet – 

Volkswagen commitment in China 

At Volkswagen, traffic safety is not limited 

to passenger cars. The Group is also 

involved with safety in the area of commercial 

vehicles and offers specific traffic 

and loading safety training. This is what 

Scania has based its worldwide competition 

“Young European Truck Driver” on 

and receives support from the European 

Commission and the International Road 

Transport Union for its efforts. Participants 

not only learn something about 

traffic safety but also train to make their 

driving style more fuel-efficient and 

environmentally friendly. 

Even beyond our production sites, our 

importers are busy working on increased 

traffic safety, for example the Turkish 

Volkswagen importer Dogus-Otomotiv, 

whose program “Traffic Is Life” raises 

awareness among Turkish drivers about 

safety in traffic. This includes an advertisement 

campaign that receives a lot of 

attention as well as exhibitions, concerts, 

and even rap festivals. The importer is 

even working closely with the Turkish 

government to improve traffic safety. 

As the examples in Turkey and Argentina 

show, the Volkswagen Group is looking 

to contribute toward traffic safety 

by keeping their customers aware – 

not only about the safety equipment 

fitted into their vehicles, but also on 

how their own behavior can increase 

traffic safety. 

Each year there are 90,000 deaths on 

the roads in China – that is 7.5 percent 

of all road deaths around the world: the 

darker side of China’s automotive boom. 

As it is the most successful automotive 

producer in China, Volkswagen has acknowledged 

its responsibility and has 

revived a classic solution from German 

road safety. The traffic education series 

“The Seventh Sense” once served to raise 

awareness among Germans about road 

safety issues. It is now experiencing a 

successful comeback in China with the 

title “Drive Safely, Drive the Volkswagen 

Way” – 40 episodes of this series have 

been shown to date and they are enormously 

popular in China. 

Why the seatbelt is so important; what to 

do when an accident has occurred; and 

why you should pay special attention to 

more vulnerable road users are among 

the key issues presented to the audience. 

Particularly noteworthy is that the episodes 

are not only very entertaining but 

also very educational. The series came 

into being by working closely with traffic 

experts from the Tongji and Jilin universities. 

Interviews with psychologists, use 

of case studies, and also appearances by 

prominent local television stars have ensured 

that Chinese road safety education 

is enjoyable to watch and has a lasting 

effect. The series started in 2008 and is 

broadcast primarily by television stations 

in the east of China and in the large cities 

of Beijing, Shanghai, Guangzhou, and 

Dalian, where there are large populations 

and a high number of passenger vehicles. 

The employees of Volkswagen Group 

China have often been invited behind 

the scenes of the series with the aim of 

raising awareness about traffic safety. The 

extravagant television castings have also 

become a true television spectacle. Child 

actors have been selected from among the 

sons and daughters of employees. 

Volkswagen is continuously offering its 

Chinese employees regular training programs 

on traffic safety using alternative 

media. The “Family Day for Traffic Safety 

Among Children” is just one example. In 

addition, Volkswagen dealers in China 

offer their customers practical safety training 

using professional driving instructors. 

“By engaging so extensively, Volkswagen 

AG is taking responsibility for society 

and is contributing toward sustainable 

development in China,” says Dr. Zhang 

Suixin, Vice President of the Volkswagen 

Group China. 


151

Camposol | Copeinca 

Personal and Professional 

Development of Women in 

Agribusiness 

By Francesca Carnesella, Camposol 

According to figures from the Food and 

Agriculture Organization of the United 

Nations, of the economically active population 

in Peru, 24 percent of all workers 

are in the agriculture sector – one-third 

of whom are women. Agri-business has 

an extensive labor reserve that employs 

thousands of men and women in decent 

work conditions and good pay guaranteed 

by law, which allows for improvement 

in their quality of life. CAMPOSOL 

generates more than 13,000 jobs, of 

which approximately 40 percent are held 

by women, thus creating an opportunity 

to improve their quality of life. 

Therefore, one of the main themes of 

our sustainability strategy is to focus on 

women and pay special attention to them 

in order to provide the best working conditions. 

We do this through the program 

“Women in Agriculture,” which includes 

the implementation of a set of programs 

aimed at their welfare and development. 

This program is promoted by CAMPOSOL 

in order to provide better working conditions 

and opportunities for all employees 

and more professional development for 

their partners and for women from the 

community, thereby contributing to the 

socioeconomic development of women 

in agriculture and society. We have developed 

strategic alliances with public 

and private institutions to ensure that 

this program has a greater impact as it 

focuses on the regions of La Libertad and 

Piura, located in northern Peru where 

CAMPOSOL operates. The program covers 

topics such as obstetric psychoprophylaxis 

and prenatal stimulation to pregnant 

women; training and career growth opportunities; 

the Wawa Wasi (nursery) Rayito 

de Sol; the program “Useful Vacations” 

for employees’ children; healthcare and 

entrepreneurship programs in CAMPOSOL 

communities, among others. 

Margarita Gabriel Sanchez has been a beneficiary of the nursery Rayito de Sol. “My child, 

Jefferson, has attended the Wawa Wasi since he was 10 months old. I know that he is well-cared 

for and he has gained weight because he is now eating healthy food. I feel relief and happy to 

leave my son there while I am at work, because he is well-attended to and in good hands.” 

Casilda Calsina Yunganina began her 

career in CAMPOSOL as a worker at 

the piquillo pepper plant. She currently 

holds the position of Head of Piquillo 

Pepper Production in CAMPOSOL and 

is studying industrial engineering at 

the Universidad Privada del Norte 

from Trujillo. “I feel comfortable and 

happy working in CAMPOSOL because 

it has helped me progress as a working 

professional, and now they support and 

encourage me with my studies.” 


Good Practice 

Development 

Sustainable Project in 

“27 de Octubre” Community 

of Chimbote 

By Francesca Carnesella, Copeinca 

By mid-2011, COPEINCA made contact 

with the Stromme Foundation and the 

NGO Tierra de Niños with the aim of 

evaluating sustainability projects with 

surrounding communities. The company 

wanted to contribute toward the 

development of the surrounding families 

near the Chimbote industrial plant. 

They began working together in order 

to define a meaningful strategy for the 

future of the “27 de Octubre” residents. 

In order to establish appropriate lines of 

action, they proposed the development of 

a Participatory Social Diagnosis in order 

to promote dialogue with key community 

groups to identify and analyze their 

problems, needs, practices, knowledge, 

feelings, attitudes, and perceptions regarding 

development issues. With these 

diagnosis outcomes, we shared the information 

with the community to set the 

path for the prioritization of activities. 

To ensure that development plans were 

articulated with the community, we 

decided to support them in developing 

their Local Development Plan, linking 

it with the District Development Plan 

and Regional so they could align national 

policies and budgets and the “27 

de Octubre” community could be included 

formally in local priorities. We 

also designed a training plan to develop 

sustainable social management skills and 

leadership in the leaders and people of 

the community – in 2012 more than 10 

working sessions were held in order to 

strengthen the bond with them. Within 

this plan, needs and interests were considered 

and prioritized. After establishing 

benchmarks and indicators to measure 

each project, they voted, validated, and 

chose to work in the following: 

Workshop for the community held in COPEINCA’s auditorium 

Project Status Comments 

Technical support for 

obtaining legal titles 

Legal technical support to 

implement drainage projects 

Building a recreational 

family park 

Implementing a security gate 

Healthy Homes Project 

In progress 

Done 

Done 

Starting 

2013 

Starting 

2013 

The progress of these projects is the just 

the beginning of many successful future 

activities for this prosperous community – 

and COPEINCA is proud to be able to 

support them. 

Two attorneys are working 

to identify and obtain sanitary 

approval of the properties 

Was submitted to the community 

Recreational space that allows 

healthy recreation. Inaugurated 

on October 27, 2012 

Allow access control, trailers 

and evil perpetrators to avoid 

accidents and thefts 

Training and implementation 

of improvements in practices 

and customs of the community 


153

COOP 

Top-flight Compensation 

Projects: The Climate, 

People, and Animals All 

Benefit 

By Thomas Compagno, Coop 

Offsetting CO 2 

emissions is a good thing – but there is still a hint of a “sale of indulgences.” 

Coop has found a solution: The Swiss retailer only invests in development projects that are 

either developed by the WWF according to the Gold Standard or which are supported by 

the WWF. They stand for maximum quality. 

Khasti Devi, a farmer from the village 

of Mankanthpur in northern India, is 

happy. She has a new kitchen. But she 

is not pleased because she has conveniences 

such as a dishwasher, refrigerator, 

and steamer. Khasti has a new oven that 

runs on biogas instead of wood. The family 

uses a new biogas plant to produce 

the biogas from the manure of its two 

cows. This was not cheap: The family 

contributed 40 percent of the total cost 

of around 400 Swiss francs. They had to 

spend 17 francs on a compost site. The 

rest of the money – amounting to just 

over 200 francs – comes from carbonoffsetting 

compensation from Coop. 

The retailer uses biogas plants such as 

this to offset part of the emissions caused 

by flying-in fresh produce. Coop and the 

WWF intend to build several thousand 

biogas plants in India. The WWF has 

already successfully implemented similar 

projects for Coop in Nepal. This helps 

families and the climate, as a family uses 

around 25 kg of wood for fuel each day. 

The forest – as a valuable CO 2 

storage 

facility – is also protected. The Devi family 

alone has reduced its CO 2 

emissions 

by around four tons per year, thanks to 

the biogas plant. This corresponds to the 

average annual output of a car, that is, 

around 15,000 km traveled. 

The small village of Mankanthpur, where 

Khasti lives, is in northern India, half an 

hour to the east of the Corbett National 

Park in the Terai region. The fertile 800 

km-long valley stretches along the south 


Good Practice 

Development 

Coop: Offsetting Projects Are Better 

Than Their Image 

of the Himalayas in India, Nepal, and 

Bhutan. In this region, many people 

still rely on wood as their main fuel. The 

pressure on the forests is therefore huge. 

But the Terai region also has the world’s 

highest density of tigers. It is estimated 

that there are around 16 animals per 100 

sq km. But because their habitat is being 

reduced as a result of deforestation for 

agriculture, settlements, and fuel, conflicts 

are inevitable. At least for Khasti, 

these are now a thing of the past. 

Thanks to the biogas plant, the family’s 

safety and health has improved. 

“The kitchen and all the pans used to be 

black with soot, the air in the house was 

permanently smoky,” she says. Everyone 

used to suffer from tears in their eyes and 

chronic coughs. Smoke in living quarters 

is one of the most frequent causes of 

death in many developing countries – 

almost half the world’s population still 

cooks on an open fire or with primitive 

stoves. According to the organization 

Global Alliance for Clean Cookstoves, a 

person dies from the consequences of 

this toxicity every 16 seconds. Today, the 

walls in Khasti’s house are bright, and 

the air is clean. “And cooking is much 

easier,” she says while pouring tea for 

her guests. It takes just a few minutes 

to heat the water on the new gas stove. 

Devi says that it is easy to use the biogas 

plant. She places 25 kg of manure and 

about the same quantity of water into 

the fermenter. Fermentation produces 

methane gas in the tank, which can be 

used for cooking. The residue is ejected 

by pressure in the tank. This is a valuable, 

non-odorous fertilizer. Producing 

plants like this so that people no longer 

There are two main points that have to be fulfilled for Coop in order to reach 

the maximum level with its CO 2 

offsetting projects: Firstly, the projects have 

to be recognized development projects and, if possible, related to the supply 

chain for Coop’s products – and they should help those people most affected 

by climate change. This often means the small-scale farmers who do not have 

the resources to deal with the consequences. Specifically, the projects are 

developed by the WWF and correspond to the global Gold Standard. In a statement, 

the WWF explains that this standard imposes strict conditions in terms 

of sustainability and sets the highest ethical requirements. Overall, Coop offset 

more than 80,000 tons of CO 2 

equivalent in accordance with the strictest 

standards in 2012. Examples follow: 

• In Madagascar, open fires are being replaced with solar-powered stoves. 

This helps to counter deforestation of rainforests and other forests. There are 

13,000 solar-powered and low-energy stoves per year that are replacing 7,800 

tons of wood. Each stove saves 2 - 3 tons of CO 2 

per year. 

• In Kenya’s Lake Naivasha region, open fires are being replaced with more 

efficient stoves. This also works to counter deforestation and also relieves 

people of the need to gather wood, which requires them to walk for long 

distances. In addition, it reduces the effects of smoke inside their houses. 

• In southern China, new and highly efficient stoves are replacing conventional 

cookers. The new stoves result in about half the quantity of wood being saved, 

with 1,600 stoves eliminating 16,000 tons of CO 2 

. The quality of air in the 

houses also improves. 

• In the Terai region of Nepal, people are relying on biogas plants. The technology 

is simple and reliable. Fermentation of manure produces heat for cooking 

and valuable fertilizer. 

• Biogas facilities are also being built in the Terai region of India. They reduce 

pressure on forests, as people no longer need to gather wood for fuel. There 

are thus fewer conflicts between people and tigers. The negative effects of 

smoke in houses can be virtually eliminated. 

have to deal with dangerous conditions 

is one of the goals of the WWF in the 

Terai region of India. But it is far from 

the only one. “If conflicts between people 

and animals can be avoided, nature also 

benefits,” says K. D. Kandpal, a representative 

of the WWF in India. One of 

the WWF’s goals is to double the tiger 

population worldwide in the next 10 

years: 100 years ago, the world’s tiger 

population was put at around 100,000; 

they now number around 4,000, of which 

1,700 live in India. But tigers need space. 

Depending on the availability of prey, a 

tiger’s territory can stretch over 30 - 50 

sq km. “If fewer people enter the forest, 

that’s better for the tiger,” says Kandpal. 

For Khasti Devi and her family, the facility 

is certainly a blessing. Now that she 

no longer needs to enter the forest she 

has time for other things. “Now I have 

more time to work our land, and look 

after the children and the house.” Her 

smiling face shows that her life really 

has improved. 


155

Itochu 

Pre Organic Cotton 

program: a Shift to 

Organic Farming 

In September 2012, more than 150 delegates from corporations, international organizations, 

governments, and NGOs around the world gathered at Business, The MDGs and Beyond – 

a forum run as a side event to the UN General Assembly in New York. ITOCHU Corporation 

represented the Japanese corporations that are members of the UNDP-led Business Call to 

Action (BCtA) and spearheaded a panel at the first session, “Innovative Business Models for 

Sustainable Development.” At the forum, ITOCHU presented the Pre Organic Cotton Program, 

an initiative of its Textile Company, which contributes to overall development in the cotton 

farming communities in India through poverty reduction and improvements in farmers’ 

health and the farming environment. 

In 2007, managers at the Textile Company 

visited India, the world’s largest producer 

of organic cotton, to learn about local 

farming of organic cotton. By visiting 

local farmers, they came to understand 

the needs and issues associated with the 

production of organic cotton, which was 

then developed into an innovative business 

model not only for ITOCHU Corporation, 

but also for the textile industry. 

Issues confronting cotton farmers 

in India 

Since the green revolution in the 1960s, 

genetically modified seed, agrochemicals, 

and pesticides have been used in 

large quantities in India. It is said that 

45 percent of all agrochemicals consumed 

in India are used for cotton farming, 

yet cotton fields account for a mere 

5 percent of all farmland in India. The 

purchasing of chemicals and pesticides 

poses an economically heavy burden on 

impoverished cotton farmers. 

Moreover, since many of them are not 

equipped with appropriate protective 

gear for handling chemicals on their 

farms, skin and respiratory diseases 

are common. The safety of drinking 

water is also a concern, since farmers 

depend on wells near cotton fields where 

agrochemicals are used. For decades, 

despite these negative impacts, it was 

commonly used as the most efficient 

way of farming. 


Good Practice 

Development 

India accounts for nearly 70 percent of 

total world production of organic cotton, 

yet organically grown cotton accounts for 

only 1 percent of all cotton cultivated in 

India. The issues confronting farmers 

provide the context for the low numbers 

of farmers shifting to organic farming. 

Most cotton farmers could not wait the 

three years required for their farmland 

to be certified as organic and to receive 

financial and health benefits. During this 

period, farmers usually experience a 20 

to 30 percent decrease in crop yields. In 

addition, they are unable to sell the organically 

produced crops at higher prices 

due to the lack of certification. In addition 

to lost revenue, the certification process 

requires additional fees that are prohibitive 

for many farmers. Thus, switching 

to organic cotton cultivation is no easy 

matter for those farmers who have been 

farming conventionally for years. 

From identifying issues to creating 

initiatives 

Conventional cotton and organic cotton 

are well known to the world; however, 

the transitional period to organic and 

the producers’ living situations during 

that period is rarely recognized. In the 

first few years of organic farming, cotton 

production will usually be unstable, 

because of the rapid change in farming 

methods. Also, transitional cotton will be 

sold as conventional cotton, even when 

it is produced using the organic method. 

Recognizing this situation, ITOCHU realized 

that drawing attention to this littleknown 

reality has the potential to greatly 

change awareness in the textile industry. 

As a solution for improving the living 

conditions of cotton farmers, ITOCHU 

Corporation conceived a system called 

the Pre Organic Cotton Program with 

kurkku, a company that promotes sustainable 

lifestyles by selling eco-friendly 

products. Initiated in 2008, this program 

puts value on the cotton that is grown 

without the use of agrochemicals or 

chemical pesticides during the transition 

period. The main supports for 

“Companies such as ITOCHU and kurkku demonstrate the potential of innovative 

business partnerships to generate value for companies as well as communities. 

This new commitment to the BCtA, the first in recent 

years by a company from Japan, supports environmentally 

sustainable agriculture while at the same 

time increasing income for farmers in India.” 

the program include (1) undertaking 

purchase guarantees in volume before 

seeding, (2) providing organic farming 

education to farmers, and (3) helping 

farmers to get their land certified. This 

scheme reduces the economic burden 

on farmers, since they no longer need to 

purchase agrochemicals and pesticides. 

At present, more than 40 apparel brands 

that are eco-friendly and conscious about 

product origin use Pre Organic Cotton 

as the key material for cotton products 

such as clothing, towels, and bedding. 

Commitment to the Business Call 

to Action 

Today, the private sector is expected to 

have a substantial impact on the development 

agenda of the UN through business. 

For example, it is possible to achieve sustainable 

development through “inclusive 

business” by fairly engaging people in 

developing countries as producers and 

business partners in the value chain. 

In August 2012, the Pre Organic Cotton 

Program was approved by the BCtA, 

which is led by the UNDP. The BCtA is a 

global initiative to encourage the private 

sector to develop innovative business 

models that achieve both commercial 

success and sustainable development. 

It is organized by several international 

organizations, including the UNDP. As a 

part of its commitment to BCtA, ITOCHU 

pledged to improve the economic conditions, 

health, and farming environment of 

low-income farmers in India by increasing 

the number of participating farmers and 

fields in the Pre Organic Cotton Program. 

Contributing by connecting people 

with the world 

So why is ITOCHU Corporation involved 

with the Pre Organic Cotton Program? 

Because it believes the program has the 

power to connect people, and because the 

program brings happiness and positive 

sustainable changes for those involved – 

from service providers to consumers 

around the world. 

Through this program, ITOCHU hopes 

that people become more aware of the 

issues surrounding the poorest segments 

of the population. It believes that consumers 

of Pre Organic Cotton products 

will pay greater attention to the social 

issues surrounding the farmers in developing 

countries. By increasing both 

production and consumption of Pre Organic 

Cotton, ITOCHU hopes that more 

cotton farmers will switch to organic 

farming to improve living conditions and 

the natural environment. This is why it 

continues to support the expansion of 

the Pre Organic Cotton Program. 

Unique to Japan, a general trading company 

such as ITOCHU – with its multifaceted 

corporate activities in regions 

around the world and its extensive areas 

of operations – has both the potential 

and the responsibility to contribute to 

countries and society by connecting people 

and building bridges among different 

segments. 

By POC Program Team, 

ITOCHU Corporation 

Sahba Sobhani, 

BCtA Acting Program Manager 


157

Nestlé 

Addressing Nutritional 

Challenges Through 

Micronutrient 

Fortification 

A number of global trends – including a growing world population, urbanization, rising 

incomes, and an increase in the number of people living beyond 60 years – have an impact on 

nutritional habits and health. In many developing countries, people bear a “double burden” of 

malnutrition, with undernutrition (comprising protein-energy malnutrition and micronutrient 

malnutrition) and overnutrition (overweight and obesity) occurring simultaneously. In general, 

people in lower-income groups around the world are at higher risk of suffering malnutrition 

in any form. 

By Susan Steinhagen, Nestlé 

With 2,000+ global and local brands 

and more than one billion products sold 

around the world every day, Nestlé has 

the ability and reach to make a positive 

impact on the health and nutrition of 

consumers on a large scale – by offer ing 

the right kinds of products and helping 

consumers make the right nutritional 

choices. 

How do we aim to do that? We 

have a fundamental conviction that for 

a company like ours to prosper, we must 

take a long-term view. Everything we do 

should create shareholder value, and at 

the same time, our work must create 

value for society at large, because that is 

what ensures the long-term sustainability 

of a company. We call this “creating 

shared value.” 

Creating shared value 

We employ more than 339,000 people 

and have operations in almost every 

country in the world. We recognize that 

our global and local reach, which we 

take pride in, brings both opportunities 

and responsibilities. Therefore, beyond 

complying with national laws, international 

standards, and our own Nestlé 

Corporate Business Principles (which are 

based on the UN Global Compact’s Ten 

Principles), we are operating in ways that 

help protect the environment for future 

generations. Thus, our commitments 

to sustainability and compliance form 

the foundations upon which we build 

our actions to create shared value in 

our focus areas of nutrition, water, and 

rural development. 

Focus on nutrition 

We aim to create shared value in the 

area of nutrition by providing nutritious 

products that deliver real health benefits 

to our consumers and by making our 

products more affordable and accessible 

through innovation and partnerships. 

We have more than 140 years of experience 

in enhancing the nutritional 

profiles of food products. Today, many 

of our products are fortified primarily 

with the “big four” micronutrients – 

iron, iodine, vitamin A, and zinc. We 

use information from local governments 

and international health authorities to 

identify the different nutritional gaps in 

diets. We then “renovate” our portfolio 

by adding the relevant nutrients, focusing 

on popular foods. 

Boosting nutritional content of 

affordable food 

It is important that our fortified products 

reach the people who need them most, so 

they must be enjoyable, nutritious, and 

affordable. We market a growing number 

of “popularly positioned products” 

– high-quality food products, ranging 

from culinary products to dairy, that 

provide nutritional value at prices to 

suit those on lower incomes. We prioritize 

the needs of young children and 


Good Practice 

Development 

Above: Selling iron-fortified Maggi cubes 

in Nigeria. 

Left: Teaching good culinary habits at 

scale in Côte d'Ivoire. 

women of child-bearing age in countries 

where micronutrient deficiencies are 

most prevalent, and fortify the products 

preferred by these vulnerable groups to 

address specific local needs. 

Dehydrated milk powders make 

very good carriers of micronutrients and 

provide a way to get them to people on 

a lower income without changing their 

existing eating habits. By the end of 2012, 

our affordable milk ranges were available 

in more than 80 countries, where they 

are largely consumed by preschool children. 

Our recent milk product launches 

include Nido Dayem, an affordable, ironenriched 

milk launched in the Maghreb 

region of northern Africa. We have a 

range of powdered and ready-to-drink 

milks in the Philippines that are fortified 

with essential micronutrients and 

have also developed a range of affordable 

fortified infant cereals to help bridge 

the nutrition gap during the weaning 

period and beyond. 

Crops that help bridge the nutrient 

gap 

We have launched a new research program 

that seeks to use conventionally 

bred crops that are naturally rich in 

micronutrients. This is done by crossbreeding 

varieties that are rich in micronutrients 

with high-yield varieties to 

produce high-yielding, nutritious crops. 

For instance, cassava, which is rich in vitamin 

A, is being bred in Nigeria and Côte 

d’Ivoire, whereas rice rich in iron and 

zinc is being developed for Madagascar. 

These will be integrated into future product 

lines as an alternative to fortification. 

By sourcing conventionally bred staple 

food crops that are bio-fortified, we hope 

to increase the quality of raw materials 

used in production while promoting the 

planting and consumption of plant foods 

rich in vitamins and minerals by rural 

populations in developing countries. 

Addressing micronutrient 

deficiencies in Nigeria 

To address iron and vitamin A deficiencies 

in Nigeria, we have fortified our 

affordably priced Golden Morn family 

cereals with both these ingredients. More 

than 210 million servings of Golden 

Morn are consumed in Nigeria every 

year, so fortification gives families across 

the country the opportunity to increase 

their nutritional intake every day at 

breakfast. We are also training farmers 

in Ghana and Nigeria who grow the corn 

used to make Golden Morn to follow 

simple practices that reduce the risk 

of damage from naturally occurring 

mycotoxins and increase yields, quality, 

and consequently price. About 30,000 

farmers have benefited from the project 

since its launch in 2009. 

Nutrition education through 

“cooking caravans” 

We have supported the launch of all our 

fortified Maggi products with advertising 

and information campaigns that 

promote their health benefits, their 

affordability, and the benefits of combining 

them with fresh, locally sourced 

products. 

We have gone on the road in Central 

and West Africa to provide nutrition 

expertise and healthy eating tips to consumers. 

Maggi brand “cooking caravans” 

are traveling through Cameroon, Côte 

d’Ivoire, and Nigeria, educating people 

about balanced diets, micronutrient 

deficiency, and the importance of culinary 

hygiene. The program also aims 

to encourage cooking at home. 

Our long-term vision 

This year, we made a commitment to 

improve the nutritional profiles of our 

products to help reduce the risks of 

undernutrition through micronutrient 

fortification. We aim to lead industry 

efforts to help ensure that consumers 

everywhere have the right choices and 

availability of products to be optimally 

nourished and, consequently, enjoy good 

health and personal wellness. We have 

the capacity and, even more importantly, 

the determination to do so. 


159

Prosegur 

Piecitos Colorados – 

Educating to Develop 

Latin America 

By Prosegur 

Piecitos Colorados is a Prosegur development cooperation project that seeks to improve the 

comprehensive education and the quality of life of children living in disadvantaged areas of 

Latin America where the Company is present. With an emphasis on a long-term sustainable 

approach, the program prioritizes the teachers, students, and their families being actively 

committed to transforming the schools and to turning them into the driving forces of their 

communities. 

By improving education and awarenessraising 

among the families and the communities, 

as well as refurbishing the 

schools, overhauling the basic servicies 

and applying nutritional programs, the 

project seeks to reduce the school dropout 

rate and to foster the development of 

the communities where it is established. 

Piecitos Colorados is managed by Fundación 

Prosegur and is currently set up 

in seven countries (Argentina, Brazil, 

Colombia, Chile, Paraguay, Peru, and 

Uruguay), where it benefits more than 

4,000 students from 30 schools in different 

intervention phases. 

The origins of the project date back to 

2006, when a group of Prosegur employees 

in Argentina discovered the difficult 

situation of some rural schools in 

the north of the country, with serious 

shortcomings in their infrastructures 

and basic services. They were located in 

isolated zones and the students had to 

walk for miles to attend class, resulting in 

their feet being stained by the red earth 

of the path – they were affectionately 

referred to by their teachers as “piecitos 

colorados” (little red feet). 

The Company – at a local level – decided 

to support them by means of a 

school sponsorship process to rebuild 

their facilities. One year later, this spontaneous 

and initial aid played a fundamental 

role in Fundación Prosegur’s 

decision to take over the project, put it 

on a professional footing, and extend 

it to other countries of Latin America, 

with the conviction that education is 

the best future guarantee for these 

“piecitos.” 

For a comprehensive education 

Piecitos Colorados, as a development 

cooperation program, wants to be an 

agent for change. Its comprehensive 

approach means that it avoids one-off 

interventions to emphasize education 

and cooperation. By developing human 

capacities and improving the use of the 

local resources, the aspiration is that 

the schools achieve higher levels of selfmanagement 

and autonomy in the long 

run by increasing their development 

opportunities. 

In order to work in such different contexts 

and countries without losing the 

essence of the project, Prosegur produced 

an Internal Manual. It is followed by all 

teams involved in Piecitos Colorados, 

and, among other things, sets out the 

main criteria for selecting a school that 

may qualify for the program. Furthermore, 

the initiative has its own Business 

Plan, subject to a quarterly reporting 

procedure, in order to administer the 

resources transparently and exercise 

their effective control. 

Piecitos Colorados believes in establishing 

a strong link with each beneficiary 

educational center. Therefore, once the 

school is selected, an Affiliation Agreement 

is entered into to guarantee a transparent 

intervention and to break down 


Good Practice 

Development 

In this sense, the initiative stresses ongoing 

training. Therefore, the students that 

show the greatest skills are monitored 

and then supported through a Prosegur 

Talent Scholarship, so that they can 

continue to study and, thus, complete 

the program’s circle of aid: training 

professionals who will work for their 

communities in the future. 

A project involving everyone 

the duties and rights for both parties. 

Once the cooperation has been formalized, 

the intervention phase kicks off in 

four progressive levels. 

Phase 1 – Infrastructures: Depending 

on the state of each school, the emphasis 

is on improving its facilities to provide 

a better environment for educational 

development and appropriate health 

conditions. 

Phase 2 – Nutritional Training: The 

goal is to foster healthy eating habits 

and encourage better use of local resources. 

In order to tackle this stage, a 

strategic alliance has been set up with a 

nongovernmental development organization 

(NGDO) specializing in this area – 

Nutrición Sin Fronteras – based on efficiency 

and innovation criteria, with a 

long-term sustainable approach. In that 

way, employees, parents, and teachers 

work together as a team to obtain the 

nutritional data of the students through 

an information transmission human 

chain. This means that experts do not 

need to be sent over from Spain, thus 

obtaining a good cost-efficiency ratio 

for the action. 

Phase 3 – Educational Quality: Without 

interfering in the official education 

set up by each local government, this 

phase focuses on the overhauling of the 

teaching tools and materials. It is also the 

period in which the students are encouraged 

to respect the environment and to 

access the new information technologies. 

Phase 4 – Sports: This last phase tries 

to hearten the students to do sports and 

foster their physical development, along 

with highlighting the values of team 

work, effort, and healthy competition. 

The combination of all these measures 

has enabled significant advances to be 

detected, such as the reduction of school 

absenteeism and greater teacher motivation 

as well as progress in the selfmanagement 

of the centers (vegetable 

gardens, greenhouses, and corrals) and 

in the entrepreneurship spirit of the 

families (sewing and literacy workshops). 

In short, great impetus has been given 

to developing the communities through 

the schools. 

Piecitos Colorados would not have been 

able to evolve without the voluntary work 

of the whole Prosegur team. The link between 

the workforce and Piecitos Colorados 

is established right from the start. The 

employees themselves are the ones who 

can propose candidate schools; are part 

of the Selection Committees; cooperate 

with the work teams; take part in the volunteer 

activities (painting walls, planting, 

and weeding vegetable gardens, building 

greenhouses, etc.); and suggest aspects to 

improve the program through the website, 

Intranet, or the specific Piecitos Colorados 

inboxes. The President of Prosegur and 

its Fundación, Helena Revoredo, pointed 

out: “We have been ambitious with the 

challenge and decided when defining an 

intervention model, but we knew that 

we had the best instrument to drive it: 

the people that are part of our Company.” 

A responsible Company 

Prosegur is aware of its responsibility 

toward its customers, employees, and 

shareholders and of its role in the development 

of the societies where it is present. 

The Company, a UN Global Compact 

participant since 2002, is a partner and 

a member of the Spanish Network Steering 

Committee, which promotes the Ten 

Principles that make up this initiative. 

The social action of the Company is managed 

through Fundación Prosegur, which 

in 2012 expanded and consolidated its 

projects, focused on the fields of education, 

social and occupational integration 

of disabled people, and corporate 

volunteering, which benefit more than 

40,000 people on three continents. 


161

sanofi 

WHO and Sanofi: 

A Public-Private 

Partnership to Save Lives 

For Sanofi, as a global healthcare partner, improving access to healthcare for the most disadvantaged 

patients is pivotal to its corporate social responsibility approach. At the core of 

this commitment is the long-term partnership with the World Health Organization (WHO) to 

control a group of debilitating infectious diseases, called “neglected tropical diseases,” which 

affect mostly poor people in developing countries. Since the partnership began, in 2001, 

more than 20 million people in sub-Saharan Africa have been screened for sleeping sickness, 

and more than 170,000 patients have received free treatment for what is a fatal disease, if 

left untreated. This partnership has put the elimination of sleeping sickness within reach – 

a prospect that was unthinkable a decade ago. 

By Benedict Blayney and Pierre-Guillaume Harscouët, Sanofi 

Dr. Pere Simarro, WHO, examining 

slides under the microscope 

for sleeping sickness parasites 


Good Practice 

Development 

Finger prick to collect blood for screening test 

Queuing for sleeping sickness screening test 

Sleeping sickness: A neglected tropical 

disease threatening millions of people 

in Africa 

More than one billion people worldwide 

are at risk from – or are affected by – a 

group of infectious tropical diseases that 

the international community considers 

to be “neglected diseases.” They are called 

“neglected” because the people who are 

most affected by these diseases are often 

the poorest populations, living in remote, 

rural areas, urban slums, and conflict 

zones with poor living and hygiene 

conditions. Neglected tropical diseases 

persist under conditions of poverty and 

are concentrated almost exclusively in 

the most disadvantaged populations in 

developing countries. 

Without a strong political voice to address 

the issue, these tropical diseases will 

continue to have a low profile and a low 

status in public health priorities, even 

though they are endemic in 149 countries 

and territories. Their consequences range 

– depending on the disease – from blindness, 

disfiguring scars and ulcers, severe 

pain, limb deformities, impaired mental 

and physical development, to death. 

Sleeping sickness (also known as human 

African trypanosomiasis) is a parasitic disease 

transmitted by the bite of an infected 

Glossina insect, commonly known as the 

tsetse fly. If left untreated, the parasites 

invade the central nervous system and 

cause severe symptoms such as changes 

in behavior, confusion, poor coordination, 

and disturbance of the sleep cycle (which 

gives the disease its name). Without treatment, 

sleeping sickness is generally fatal. 

Sleeping sickness threatens millions of 

people in 36 countries in sub-Saharan 

Africa. Many of the affected populations 

live in remote areas with limited access 

to adequate health services, making 

“Above all, this partnership shows 

what is possible when a pharmaceutical 

company wants to see its 

products make a difference in the 

lives of impoverished people living 

in remote places. In collaboration 

with WHO and national control 

programs, multiple challenges – 

beyond the donation of drugs – have 

been progressively tackled in ways 

that build sustainable capacity. 

The results speak for themselves.” 

Dr. Margaret Chan, Director-General of 

the World Health Organization 

surveillance, diagnosis, and treatment 

of the disease very challenging. In certain 

areas, displacement of populations 

due to conflict is an additional factor 

favoring transmission of the disease, in 

regions where health systems are weak 

or non-existent. 

A 1995 WHO Expert Committee estimated 

that 60 million people were at 

risk, with an estimated 300,000 new 

cases per year in Africa, of which fewer 

than 30,000 cases were diagnosed and 

treated. During epidemics, prevalence 

reached 50 percent in several villages in 

the Democratic Republic of the Congo, 

Angola, and Southern Sudan. Sleeping 

sickness was the first or second greatest 

cause of mortality in those communities, 

ahead of even HIV / AIDS. 

A partnership born from a 

desperate situation 

Despite the efforts of WHO, the situation 

for sleeping sickness was becoming desperate 

in 1999 when drugs to treat the 

disease were likely to be discontinued, 

and manufacturing to come to an end. 

However in 2000, discussions were initiated 

between WHO and Aventis, one of 

the parent companies of Sanofi, which 

manufactured three of the five drugs 

used to treat the disease (pentamidine, 


163

sanofi 

Mr. Christopher A. Viehbacher, CEO, Sanofi and 

Dr. Robert Sebbag, Vice President, Access to Medicines, 

Sanofi at Bodo sleeping sickness treatment center, Chad 

“The key to success in fighting these diseases is the need 

to address the multidimensional factors. What is the point 

in a pharmaceutical company providing treatments, if 

there are insufficient resources on the ground to provide 

the healthcare that is needed, or if people are not aware 

of the symptoms, and cannot be correctly diagnosed and 

treated? 

Since the beginning of our partnership, we have worked 

closely with WHO to identify the real needs of people. We 

have ensured that our commitment not only includes, but 

also goes beyond, donations of medicines. As a result of 

the resources we have committed, and the tremendous 

passion and dedication of the teams, WHO can ensure that 

trained staff, efficient screening and diagnosis, treatment, 

disease surveillance, and health education are available 

and made accessible to all patients. 

Thanks to WHO’s leadership and the combined efforts of 

national control programs, academia, nongovernmental 

organizations, and pharmaceutical companies, we can look 

forward to the day when the word ‘neglected’ no longer 

applies to tropical diseases. I would like to congratulate 

and commend all those involved in this endeavor.” 

Mr. Christopher A. Viehbacher, CEO, Sanofi 

melarsoprol, and eflornithine) to find a 

solution to the problem of access to drugs. 

On May 3, 2001, a landmark agreement 

was signed between WHO and Aventis, 

initially for a five-year period. The objectives 

of this agreement were to restore 

control activities; to ensure systematic 

screening of sleeping sickness and availability 

of medicines; and to train staff in 

endemic countries. This agreement was 

renewed by Sanofi in 2006 and 2011, 

each time for another five years. From 

2006 onwards, the partnership with 

WHO was extended to include other 

neglected tropical diseases such as leishmaniasis, 

Chagas disease, Buruli ulcer, 

and yaws. 

Beyond drug donations, Sanofi provides 

WHO with funding to support training, 

logistics, and infrastructure. From 2001 

to 2012, Sanofi has provided $ 60 million 

in financial support and sleeping sickness 

drug supplies to WHO. 

At the London declaration meeting on 

Neg lected Tropical Diseases, held in 

January 2012, in the presence of Dr. 

Margaret Chan, Director General of WHO, 

Sanofi pledged to provide sleeping sickness 

medication until the disease was 

eliminated. 

On the path to elimination 

The results speak for themselves. To 

date more than 20 million people in 

endemic areas have been screened for 

sleeping sickness, and more than 170,000 

patients have received treatment for 

what is a fatal disease, if left untreated. 

Through public awareness, control, and 

surveillance programs implemented 

in endemic countries, the number of 

new cases reported has also dropped 

by some 72 percent – from more than 

25,000 in 2001 to less than 7,000 in 2011 

(the estimated number of total cases is 

currently 30,000). These results have 

been achieved despite the complexity 

of the screening process required to 

detect the parasite in remote areas of 

sub-Saharan Africa with little medical 

infrastructure (this process involves an 

antigen-antibody blood test followed, if 

positive, by a lymph gland puncture, or 

blood film, to be reviewed by a skilled 

technician under the microscope, and 

finally a lumbar puncture and analysis 

of the cerebral spinal fluid, should evidence 

of the parasite have been found 

in the prior tests). 


Good Practice 

Development 

Mobile team laboratory 

technician performing 

screening blood test 

Addressing inequalities in access to healthcare 

A majority of the global population does not have access to adequate healthcare today. This is a complex issue, and responsibility 

for tackling it lies with many different stakeholders: governments, the World Health Organization (WHO) and other 

international organizations, NGOs, academia, pharmaceutical companies, and funders. As developers and manufacturers of 

life-saving products, pharmaceutical companies have a crucial role to play. Enabling individuals to assert their right to health 

means facilitating access to quality medicines and vaccines for as many patients as possible, whether they live in developing, 

emerging, or developed countries. 

For Sanofi, access to healthcare is not only a matter of the patient having access to affordable medicines and vaccines, but 

also of having the opportunity to benefit from disease prevention and to receive comprehensive care – from diagnosis through 

to treatment. Sanofi is committed to supporting governments’ and other stakeholders’ efforts to reducing the barriers to help 

all people access healthcare. For this reason, it has designed initiatives to address major public health priorities while supporting 

an economically viable business model that places patients and their needs at the center of its concerns. 

Treatment for late stage disease is complex 

and poorly tolerated with several 

intravenous infusions per day. This is why 

Sanofi is also collaborating with the Drugs 

for Neglected Diseases initiative (DNDi, 

a collaborative, patients’ needs-driven, 

nonprofit drug research and development 

organization) to develop a promising new 

oral treatment for sleeping sickness. This 

could potentially replace the current treatments, 

which are complex and difficult 

to administer. If this new drug is safe and 

effective, it will make treatment much 

easier for patients. Sanofi and DNDi also 

started in 2011 a three-year collaboration 

agreement for research on new treatments 

for eight other neglected tropical diseases 

listed by the WHO. 


165


Creating Homes – 

Affordable Housing in 

India 

By Katharina Riese and Svenja Wittkämper, TÜV Rheinland 

In recent years there has been a large migration wave from India’s rural regions to the cities. 

Soon, 40 percent of the Indian population will be living in the country’s urban centers. 

Due to this fast growth and the large influx of people, cities are having trouble providing 

adequate living spaces, utilities, and facilities. More than 130 million people – equivalent to 

40 to 60 percent of the urban population – are expected to be living in substandard housing. 

These low-income groups face a broken housing market that hinders them from living in an 

affordable and quality home. 

Ashoka Innovators for the Public, an 

association of the world’s leading social 

entrepreneurs, and TÜV Rheinland, a 

global inspection, certification, training, 

and consulting company, are using 

their joint competencies to facilitate the 

exchange between real estate developers 

and the low-income population. The 

mission of the joint project “Creating 

Homes – Affordable Housing in India” 

is “[to] create a rating system for affordable 

housing that certifies sustainable, 

safe, and quality housing for BoP [bottom 

of the pyramid, referring to the poorest 

socioeconomic group] customers.” 

The large influx of immigrants has left 

the cities in dire need of innovative city 

planning measures and approaches to 

find appropriate housing. Due to the 

large differences in monthly incomes – 

which range from 3,300 INR (approx. 

$ 65) for the most vulnerable to 25,000 

INR (approx. $ 500) for informal sector 

workers and micro-entrepreneurs – 

there is no all-encompassing solution. 

The focus of this project is on the lowincome 

urban population earning between 

$200 and $500 a month. From a 

financial point of view, these urbanites 

would be able to afford a new home at 

market price in a well-functioning real 

estate and financial market. Yet, the 

reality is just the opposite. Low-income 

families are facing multiple barriers 

such as a faulty property rights system; 

bureaucracy combined with corruption; 

low-quality, expensive building materials; 

restricted distribution channels; and 

lack of financial and technical support. 

Factors such as irregular incomes and no 

provable financing or tax receipts deter 

the banking and housing industries from 

including informal sector workers and 

micro-entrepreneurs into the market. 

Alleviating these market inefficiencies – 

and thus improving the housing situation 

for the mentioned income group – 

is the mission of Ashoka’s initiative 

Housing For All. The civil sector, TÜV 

Rheinland, as well as additional actors 

from the private sector have combined 

their complementary expertise to set 

up a framework for a market-based 

solution. Whereas developers are in 

possession of a wide knowledge base 

about land acquisition, construction, 

design, financing, as well as legal and 

fiscal regulations, citizen sector organizations 

can provide valuable insights into 

the needs and demands of the target 

group. By introducing new entrants to 

the market, examples can be made, positive 

impacts demonstrated, the mindset 

of the market changed, and the supply 

of affordable housing increased. In the 

end the synergy is beneficial for the 

businesses, communities, and customers 

involved. 

Besides the mere increase in housing 

supply, the initiative focuses on ameliorating 

quality by developing a best practice 

standard. The project partners TÜV 

Rheinland and Ashoka are combining 

their expertise to create a certification 

that sets a benchmark for quality housing. 

With the help of this benchmark, 

real estate developers and low-income 

families will receive guidance on appro- 


Good Practice 

Development 

priate and attainable housing with the 

best quality-to-cost ratio. The standard 

provides consumers with a high level 

of transparency, which allows them 

to make an informed decision. Besides 

empowering the low-income families, 

the certification positively influences 

their living conditions, as safety, sustainability, 

and accessibility to utilities 

are part of the eligibility criteria. For 

developers, the rating system serves 

as a guideline to help create homes 

that fit the needs of the target group. 

Furthermore, the certification requirements 

lead to optimized processes and 

reduced transaction costs. 

To create appropriate quality housing, 

the rating focuses on four areas: finance, 

construction, energy and environment, 

and community. The aim is to facilitate 

the access to financing options; to ensure 

safe, qualitative, and legal construction; 

to consider resource-efficiency and the 

carbon footprint of the new development; 

and to meet the customers’ needs. 

From different angles this view provides 

a holistic evaluation of the lifecycle of a 

building as well as the demands of its 

occupants. A set of criteria for each of 

the focus fields is formulated with the 

help of subject experts. TÜV Rheinland 

is relying on its 140 years of experience 

in developing and conducting certifications, 

to establish, for example, the pillar 

concerning energy and environment. 

As project manager, TÜV Rheinland coordinates 

the realization of the rating 

process, trains certifiers, and is in charge 

of awarding certifications to exemplary 

residential buildings. The result of these 

concerted efforts is a rating system that 

covers the length of the housing development 

project – from the first planning 

ideas to the time when the house 

becomes a home. 

The cooperation between TÜV Rheinland 

and Ashoka is scheduled for a four-year 

period, after which a profitable, affordable 

housing market will have been 

created. According to market studies, 

the affordable housing market is worth 

$500 billion, as India faces a shortage of 

an estimated 25 million homes. Besides 

setting up a lucrative market for developers, 

interaction between developers and 

the urban poor has been fostered and 

has resulted in added value for all participants. 

For low-income families, the 

project will lead to increased dignity and 

quality of life as well as to an improved 

economic status. 

In addition, the environment profits 

from installed energy-efficient technology 

and resource-saving measures 

considered in the realization of the project. 

Ameliorating the lives of excluded 

members of society as well as applying 

innovative environmental solutions go 

hand in hand with the UN Global Compact 

Principles. By ensuring the initiative 

is profitable, the sustainability of the 

project can be guaranteed over many 

years. Furthermore, the developed certification 

is easily transferable to other 

cities within India as well as worldwide, 

for example to Colombia, Brazil, and 

Egypt, where comparable projects are 

being implemented. 


167


Corporate Governance: 

The Way to Sustainable 

Finance 

By Perihan Abdelghaly and Maha Hasebou, Arab African International Bank 

Arab African International Bank (AAIB) firmly believes that the road to impactful corporate 

governance entails values that achieve sustainable businesses as an end goal – AAIB seeks 

to maintain the balance between economic growth, profitability, and environmental, social, 

and governance (ESG) concerns. 

AAIB corporate governance goes beyond 

having effective controls in place. It is 

about the voluntary adoption of governance 

practices, individual behavior, and 

corporate culture. 

• Corporate governance is a living and 

dynamic framework: At AAIB the role 

of internal control functions goes beyond 

monitoring and control to guidance 

and consulting on risk awareness. 

• Linking risk-management practices to 

organizational performance: ensuring 

that consistent risk-management and 

compliance practices are in place without 

losing focus of long-term growth 

and profitability. 

• Being an early adopter of what the Bank 

considers to be best practice internationally: 

where appropriate, by applying 

before a legislation or regulatory 

directive is published. 

• Empowering staff members to come 

forward and report any serious issues: 

AAIB’s whistle-blowing policy is managed 

by the Compliance “Department,” 

whereby findings – if any – are reported 

to the Board’s Audit committee. 

AAIB has in place an effective control 

framework that properly monitors compliance 

and the transparent reporting 

of financial results, as well as assesses 

potential risks and proposes the appropriate 

management thereof. The applied 

control framework consists of the 

following: 

Board of Directors and Board 

Committees 

The Board is assisted by its Audit, Risk, 

Corporate Governance, and Remuneration 

committees in performing its 

oversight role on bank operations and 

management. 

Senior Management 

Within the powers delegated to them, 

senior management is responsible for ensuring 

the implementation of an effective 

control framework and for setting the 

tone for the AAIB’s risk culture, which 

reflects the Bank’s attitude toward risktaking 

and risk management, as well as 

integrates risk awareness into the Bank’s 

daily operations. 

Internal Committees 

In addition to the primary role assumed 

by the Bank’s control functions, risk 

and control issues are also discussed by 

the Bank’s internal committees, such 

as the ALCO & Market Risk Management, 

Operational Risk Management, 

Retail Credit Risk, Risk and Control, to 

name a few. Internal committees are 

responsible, among other things, for 

ensuring that AAIB has appropriate 

and current risk policies in place that 

address the major risks faced by the Bank. 

The committees’ recommendations are 

presented to senior management and 

Board-level committees for review and 

appropriateness. 

Consolidated Risk Management 

Function 

AAIB has a consolidated independent 

risk-management function with access 

to the Board through its Risk Committee. 

The Consolidated Risk Management 

Group is mainly concerned with the 

identification, assessment, monitoring 

and control, and reporting of the main 


Good Practice 


risk categories to which AAIB is exposed. 

This is addressed mainly through the following 

functions under its supervision: 

Credit Risk, Market Risk, Operational 

Risk, and Policies and Procedures Unit. 

Internal Audit 

AAIB has a centralized, independent 

Internal Audit function, which reports 

directly to the Board’s Audit Committee. 

The Division’s primary focus is on the 

following activities: 

• assessing the effectiveness and adequacy 

of internal policies and procedures; 

• reviewing the Bank’s financial reporting; 

• conducting risk-based audits on the 

Bank’s branches and functions (including 

other control functions) to evaluate / 

validate the effectiveness of internal 

control systems within the Bank, as 

well as to review the compliance of 

branches and functions with internal 

and regulatory policies and guidelines; 

• following up on the implementation 

of corrective actions related to audit 

findings. 

Internal Control 

The Internal Control Division is responsible 

for ensuring that the established 

controls are complied with. In essence, 

the Division is responsible for reviewing 

the daily transactions on the Bank’s 

ledgers to ensure their proper execution, 

documentation, and compliance with 

regulatory and internal regulations, policies, 

and guidelines. Its role expands to 

the regular review of various functions 

at the branch level. 

Compliance Function 

The main role of AAIB’s Compliance 

Function is to safeguard the Bank 

against “compliance risk,” which is 

defined as the risk of legal or regulatory 

sanctions, material financial loss, 

or loss to reputation a bank may suffer 

as a result of its failure to comply with 

compliance laws, rules, and standards 

applicable to its banking activities. 

AAIB’s Compliance Function has access 

to the Board Audit Committee, which 

ensures the department’s neutrality 

and independence. 

Furthermore, AAIB has created the position 

of Corporate Governance Advisor 

to provide support to management 

and the Board’s Corporate Governance 

Committee on the implementation of 

best practices and the assessment of the 

overall governance framework. 

Facing Changes and Challenges 

Egypt’s revolution created instability 

that threatened the security and flow 

of operations in the country’s financial 

sector. As a corporation with effective 

management mechanism, AAIB’s Board 

of Directors claimed the expansion of 

Corporate Governance Committees in 

Egypt to include Risk and Information 

Technology Committees. All of AAIB’s 

Corporate Governance Committees are 

working according to the terms of reference 

issued by the Board of Directors 

in 2011. The committees abide by the 

minimum requirements of the terms of 

reference and reassess the terms every 

year. The committees are not limited to 

senior officials and decision-makers but 

include all stakeholders. This inserts new 

blood into AAIB’s corporate culture and 

encourages the independence of various 

functions such as Compliance, Audit, 

Control, and Risk. 

Juniors are observers: AAIB uses different 

approaches to surpass the traditional 

corporate governance goals, whereby the 

Corporate Governance Committees are 

not limited to standard scenarios. This 

means that the Corporate Governance 

Committees are not limited to senior 

management in the Bank but include 

juniors from all functions to integrate 

corporate governance from the whole 

bank. 

Comply or justify: AAIB follows a strict 

policy to govern and control the institution. 

All processes comply with the following 

guidelines for the Central Bank 

of Egypt, the Center for International 

Private Enterprise, and the Bank for 

International Settlement. “If you cannot 

comply, then you have to justify.” 

Sustainable 

Finance in Egypt 

For development to be sustainable, 

it must not only seek profitability 

but must address social justice; 

equality; reduce – and eventually 

eliminate – poverty; preserve 

natural resources; and remain 

within the limits imposed by the 

ecosystem. AAIB has partnered 

with the United Nations Development 

Programme to enhance the 

competitiveness of the financial 

sector in Egypt and to embrace the 

ESG agenda to establish sustainable 

growth. Sustainable finance 

must contribute to the economic 

growth of the countries. 

The objectives of the partnership 

are: 

• promoting awareness of 

sustainable finance in Egypt; 

• developing a national model for 

inclusive banking, which in turn 

enables the financial sector a 

strategy for offering financial 

assistance to low-income 

families and individuals; 

• reducing and mitigating the 

financial risks of big markets by 

distributing wealth and risks on 

different market segmentations; 

• developing banking practices 

that aim to have a positive 

impact on people, profits, 

and the environment and 

encouraging ethical business 

practices. 


169

Bradesco 

For a Financial Education 

Culture 

Bradesco is committed to its stakeholders’ financial 

education and believes in social transformation through 

knowledge and awareness fostered by several actions. 

By Tita Berton, Bradesco 

Bradesco knows the importance of education 

and all its aspects. Accordingly, 

with the mission of being recognized 

as the best and most efficient financial 

institution in Brazil – and for promoting 

banking inclusion and sustainable 

development – it invests in the development 

of educational tools and spreading 

the content it produces by targeting each 

of its stakeholders. 

In 2008, the Bank began to conduct 

“Credit Municipal Meetings” in small 

Brazilian towns. The lectures provided 

the people – most of whom had never 

had contact with a financial institution 

before – with basic information. These 

meetings, which are still being provided 

by the Bank, have reinforced even more 

the concepts of responsible credit and 

personal finance. 

In 2011, a work group was created to 

focus on financial education and intensify 

the Bank’s investments in training. That 

same year, the number of people served 

by courses in personal finance, financial 

mathematics, and Microsoft Office totaled 

600,000 – double the 2010 figure. Since 

the Bank began providing courses on its 

home page in 2010, the course materials 

have been accessed over 900,000 times. 

Financial education activities for Bradesco’s stakeholders 

Employees 

Lecture on Financial Education and Responsible Credit – Prime and Retail: 

• 2012: 678 people 

• 2013: 20,000 people (estimate) 

Lecture on Personal Finance – Departments and Affiliates: 

• 2012: 1,567 people 

Community, customers, universities, fairs 

Booklet – Take care of your money: 

• 6,305 copies delivered 

Lecture on Personal Finance: 

• 2010 to 2012: 10,184 people 

Treinet – Personal Finance: 

• 2012: 5,593 people 

Treinet – Responsible Credit 

• 2012: 2,590 people 

Videos on Financial Education (to be launched in 2013) 

• Unit I – Responsible Credit and Credit Card 

• Unit II – Opening of Accounts, Consortium, Social Security, Insurance, 

Investments and Capitalization Bonds 


Good Practice 


Important advances in 2012 were made 

with the creation of a financial education 

strategy for the organization. This strategy 

took into consideration the priority 

stakeholders and their characteristics 

(employees, customers, and community) 

and the decision to utilize one language. 

The strategy went beyond communication 

and was applied to Bradesco’s 

sustainable inclusion and financial education 

strategies and models, so that all 

stakeholders could be aligned regarding 

social security, insurance, consumption 

and credit, investments, and citizenship. 

Another highlight was the launch of the 

Responsible Credit hotsite – open to 

customers and non-customers – and the 

inclusion of financial education content 

in network manager courses, with a view 

to emphasizing the responsibilities of 

each employee in guiding customers 

regarding their use of credit. 

In 2013, the Portal de Educação Financeira 

(Financial Education Portal) was 

launched, which contains all of Bradesco’s 

related actions. 

Inside out 

In conjunction with guidance on the 

responsible use of credit as well as products 

and services offered to customers, 

Bradesco’s financial education measures 

include internal training. Personal finance 

courses and the newly launched 

Responsible Credit courses are provided 

through the intranet’s training system, 

named TreiNet, in addition to lecturers 

on financial education, onsite courses, 

and training for managers. 

Through trained staff, the financial 

knowledge is spread to other stakeholders: 

namely, the customers and community. 

Customers can download software, 

such as Net Finanças, to support personal 

or corporate financial management decisions. 

Net Finanças Pessoais and Net 

Finanças Prime versions allow for the 

importing of internet bank account data; 

accessing graphs and reports on financial 

situations; controlling investments and 

credit card expenses; and for understanding 

Bradesco Corretora’s operations and 

tax calculations. For customers with a 

University Account, the Bank offers online 

courses on financial education and 

other interesting themes. Another tool is 

the Responsible Credit hotsite that, in addition 

to offering services and guidelines, 

allows users to control their household 

budgets and better utilize their funds. 

Certain stakeholders need special attention 

regarding financial education, such 

as those in low-income communities. In 

the cities of São Paulo and Rio de Janeiro, 

the Bank conducted a number of lectures 

for nearly a thousand people in 2011 and 

created a specific booklet on personal 

finance. The topics of financial education, 

sustainability, and responsible credit 

were included in the Credit Municipal 

Meetings’ scope and objectives. 

In the first quarter of 2013, a video training 

on financial education is scheduled to 

be available for the entire Bank network. 

Network’s strength 

Bradesco invests significantly in the 

organization and availability of online 

content, videos, and web tools on financial 

education for individuals and 

companies. The purpose is to offer didactic, 

accessible content on financing 

and related subjects in order to prepare 

customers to make decision on how 

to use and manage their money. Thus, 

much content is included on websites 

and distributed as follows: 

• Websites for individuals: Classic, exclusive, 

prime 

• Websites for companies: Retail 

Content structure on websites for individuals 

and companies: Financial Situation, 

My Revenues, My Expenses, My 

Projects, Financial Products, Responsible 

Credit, Useful Tools, Further Information, 

Keeping Up to Date with the Economy. 

• Click Conta (financial education for 

children and teenagers) 

Click Conta has produced a web series 

called Antenados, in which children play 

in the role of two brothers who discuss 

subjects that are based on certain situations 

and give tips on financial education. 

• Bradesco University Account (financial 

education for youngsters) 

The Bradesco University Account has 

developed the web series Pra toda vida, 

which helps university students to use 

money wisely. This is done through content 

and interactive videos that offer 

facts and situations of students and their 

personal finances. 


171


RBS Inspiring Enterprise 

The RBS Group has been a signatory of the UN Global Compact since 2003. We support 

the Compact, as we believe that the resources available to businesses can be leveraged to 

create sustainable development and more sustainable economies across the globe. As part of 

building a sustainable RBS, we recognize the responsibility we have to be a positive force in 

the communities in which we operate. One of the ways in which we do this is by encouraging 

a more entrepreneurial culture. From the classroom to the boardroom, we are inspiring and 

enabling enterprise at every stage of the journey. 

By Royal Bank of Scotland Group 

We know that starting and running 

a business can be both exciting and 

challenging. We understand that entrepreneurs 

and businesses need the 

right combination of support, advice, 

and funding to succeed. That is why we 

provide a wide range of products and 

services for businesses of all shapes and 

sizes, in every sector of the economy. 

We also know that people need help to 

explore the idea of enterprise, unlock 

their potential, and gain the right skills, 

knowledge, and networks before they 

can achieve their ambitions. This is what 

Inspiring Enterprise is all about. 

Inspiring Enterprise draws together the 

work that we do – including our work 

with partners and charities – to help 

people explore and develop their enterprise 

potential. While we will always 

support entrepreneurs and businesses 

of all shapes and sizes, we are focusing 

additional efforts on three groups 

that could play a stronger role in the 

entrepreneurial economy, if given more 

support. 


Good Practice 


We have committed, by the end of 2015, 

to: 

• help 100,000 young people to explore 

enterprise, develop their skills, and 

start up in business, whatever their 

background; 

• inspire and enable 20,000 women to 

explore and unlock their enterprise 

potential; 

• support 2,500 social enterprises, working 

in partnership with the sector to 

improve access to expertise, markets, 

and finance. 

In summary, Inspiring Enterprise is how 

we encourage more people in more communities 

to explore enterprise, build 

their skills, and, ultimately, to start up 

and succeed in business. 

Enterprise leadership 

When it comes to entrepreneurship, the 

RBS Group is leading in both thought and 

action. Working with partners – including 

The Prince’s Trust, Social Enterprise 

Other RBS Enterprise Initiatives 

UK, Find Invest Grow, and the RSA – we 

are delivering targeted research and programs 

to help drive the entrepreneurial 

agenda in the United Kingdom. 

Every year, we commission research 

into a range of topics, including current 

trends, the needs of entrepreneurs in our 

target groups, and the changing nature of 

enterprise support. We use this research 

to inform our own approach and to help 

us direct our funding and support to 

where it will be most effective. 

Through Inspiring Youth Enterprise, we 

have extended our partnership with The 

Prince’s Trust – one of the United Kingdom’s 

most successful supporters of youth 

enterprise – to help young people from 

disadvantaged backgrounds get the support 

they need to start up in business. We 

have also launched our student enterprise 

programs in partnership with Find Invest 

Grow – RBS ESSA and RBS EnterprisingU 

– to encourage, reward, and recognize 

undergraduates’ enterprising activities 

across the United Kingdom. 

• Mobile Business School (MBS). The MBS visits universities, London 

boroughs, and trade exhibitions and partners with enterprise agencies, 

charities, councils, and libraries to provide enterprise education to a large 

number of people, support entrepreneurship, and encourage ambition. 

• Start-up Surgeries. The Start-up Surgeries offer guidance to potential new 

business owners and those who have just started trading. This guidance 

is delivered locally and covers a wide range of topics such as marketing, 

taxes, and legal information. 

• Business academies. The academies aim to provide additional support to 

businesses through enterprise education and providing them with the tools 

they need to be successful. 

• Trade clinics. These clinics form a key part of a program of events focused 

on educating SMEs on doing overseas business. These are typically run 

in local offices or local venues for 10 to 20 clients, and they are usually 

managed with input from UK Trade & Investment, local chambers, or other 

third parties. 

Enterprise resources 

Inspiring Enterprise provides a range 

of resources and support for organizations 

that work with young entrepreneurs, 

women entrepreneurs, and 

social entrepreneurs. This includes access 

to networks, advice, inspiration, and 

practical facts and figures about how 

these groups can best be supported on 

their entrepreneurial journeys. The RBS 

Group and our partners also provide a 

wide range of events and services for 

potential and existing entrepreneurs 

to help them realize their potential and 

achieve their ambitions. 

Funding 

We are making £ 3 million available 

between 2012 and 2015 to provide grant 

funding to nonprofit organizations that 

run programs to offer support and encourage 

more young people and women 

into enterprise. This may include enterprise 

training, business mentoring, 

skills development, workspace support, 

or something completely new and different 

that will aid young people and 

women to explore the idea of enterprise 

and build their skills. Organizations can 

apply for funding for their programs 

through a competitive process, which 

is open several times a year. In addition, 

we provide loan funding to social enterprises 

through the RBS Group Microfinance 

Fund (RBS MFF). The RBS MFF 

is an independent arms-length charity 

set up 10 years ago to work with the 

community finance and social enterprise 

sector. The RBS MFF breaks down 

traditional barriers experienced by social 

enterprises, as it offers an alternative 

route to finance. It is our aim to support 

this sector as it continues to grow and 

develop and eventually reach a stage 

where these organizations find it easier 

to obtain finance from mainstream 

financial institutions. 

For more information about the funding 

that is available, please visit our website 

www.rbs.com/inspiringenterprise 


173

INTEGRATED REPORTING 

Growing expectations of stakeholders and legislators as well as the steady 

growth of global trade flows have added significantly to the complexity 

of businesses. This comes along with the call for a more holistic reporting 

of companies’ financial and nonfinancial performance. This is the core 

idea behind integrated reporting: It wants to provided in a coherent way 

a clear link between economic drivers, financial information, and social 

and environmental impacts. While the concept is clear, the roadmap is still 

vague. The International Integrated Reporting Council (IIRC) shall help to 

overcome this. 

174 


Agenda 




Mr. Bock, in April 2012 you were appointed by the UN Secretary- 

General Ban Ki-moon as a new member of the UN Global Compact 

Board. What are the main reasons for BASF’s engagement in the UN 

Global Compact? 

Kurt Bock: As a founding member of the UN Global Compact in 

2000, we strongly support the role of the UN Global Compact as a 

peer-learning and dialogue platform. By combining high-level commitment 

with hands-on learning at the local level, the UN Global 

Compact has gathered experience with concrete best practices in the 

area of sustainability, and it has a unique competence in the field 

of facilitating multistakeholder dialogue and projects. 

BASF is also participating in the LEAD platform of the UN Global Compact. 

What is your experience with the initiative so far, and what are your current 

priorities as a LEAD company? 

Dr. Kurt Bock, 

Chairman of the Board of Executive Directors 

of BASF SE 

We welcomed the opportunity of becoming more active in sharing 

our experiences with other Global Compact members, when the 

UN Global Compact launched its LEAD platform in 2011. After a 

two-year pilot phase, LEAD is now focusing on a few workstreams 

more intensively. BASF is currently engaged in two workstreams: 

One deals with the post-2015 development process of the UN. Here, 

the UN Global Compact is asked to bundle and bring in the perspectives 

of participating companies. The other workstream deals with 

integrated reporting. 

The term “integrated reporting” seems to be on everyone’s lips at the moment. 

Your company has been publishing an integrated report since 2007. Why did 

BASF decide to do this? 

We aim to demonstrate how sustainability contributes to the longterm 

success of our company. As the first large German company, 

we have documented our economic, environmental, and social 

performance and provide specific examples to demonstrate the interdependencies 

between financial and non-financial information. 

We have made progress toward a fully integrated report, but there 

is still potential to further integrate our reporting. 

176 


Agenda 



How would you define the target group of your report? And how do you think integrated 

reporting might change the behavior of your target group? 

Our report targets expert readers from both the financial and the sustainability 

communities. It aims to serve as a basis for assessing BASF’s current and future 

risks as well as opportunities, and therefore it enables investors and other stakeholders 

to evaluate our performance and strategy. Our report also strives to give 

a full picture of our company’s performance to enable investors and analysts to 

judge whether BASF is a suitable investment. Furthermore, integrated reporting 

helps us to further strengthen our reputation as a reliable and responsible business 

partner. In the long run, we ensure our license to operate by providing neighbors, 

NGOs, politicians, and others with transparent information. 

Currently there is no internationally recognized standard for integrated reporting. Could the 

work of the International Integrated Reporting Council help to move integrated reporting 

into the mainstream? 

The International Integrated Reporting Council (IIRC) is in the process of defining a 

framework for integrated reporting. The discussions and exchange of information 

among different companies in the IIRC pilot program enable us to better meet the 

expectations of our stakeholders, and especially those of our investors. 

What are BASF’s main challenges regarding integrated reporting? 

An integrated report has to reflect an integrated corporate strategy: It is an excellent 

way of demonstrating that sustainability is an integral part of our strategy and 

operations. All information is provided in a single publication that is externally 

audited. One challenge we face in the context of integrated reporting is the inclusion 

of non-financial data within an ambitious reporting time schedule. 

What do you think will be the main challenges in the next years? 

The main challenge of an integrated report is to provide a view of the material 

aspects of a company in a comprehensive way to its stakeholders. It is important 

for us as well as the readers of integrated reports that the various initiatives 

concerning integrated reporting such as IIRC are compatible with existing 

reporting standards such as the Global Reporting Initiative and the UN 

Global Compact. 


Integrated Reporting: 

Old Wine in New Bottles? 

The EnBW Path to a Contemporary Realignment 

of Corporate Reporting 

178 


Agenda 

Integrated ISO 26000 Reporting 

This contribution strives to answer the following questions: 

Why do we need to realign corporate reporting? Is it old 

wine in new bottles or does it contain revolutionary ideas 

about corporate reporting? What is the additional value 

of integrated reporting and what does EnBW’s path toward 

integrated reporting look like? 

By Dr. Lothar Rieth and Christoph Dolderer 

In times of globalization and economic and financial crises, 

organizations are faced with a myriad of challenges. They 

have to reinvent their business models and implement new, 

innovative structures. Like many other organizations, EnBW 

has been affected as well, in addition to issues relating to the 

government-prescribed energy system transformation (Energiewende) 

in Germany. EnBW is one of the largest energy 

companies in Germany and Europe. In 2012 EnBW employed 

a workforce of about 20,000. These employees generate, trade, 

transport, and sell energy. Decentralized energy solutions, 

renewable energies, and low-carbon production are what the 

business focuses on. In these turbulent times in the global 

economy – and in the utility sector in particular – EnBW 

has decided to implement the idea of integrated reporting. 

A changing landscape of reporting 

In the last decade, the global economy has suffered under 

the worst financial crisis since the 1930s – a crisis that was 

in part driven by individuals and organizations focusing on 

short-term profits and rewards, irrespective of their long-term 

sustainability. The crisis has underlined the need for capital 

market decision-making that reflects long-term considerations 

and implications. Furthermore, it has questioned the extent 

to which corporate reporting disclosures – as they exist today 

– reveal systematic risks to business, and whether this 

is sufficient and transparent. For years, corporate reporting 

became more voluminous and complex. Business reports are 

therefore equally exposed to fundamental criticism and used 

less as a primary source of information. At the same time, the 

number of stakeholders as well as their expectations over the 

years have grown considerably. Therefore, some companies 

produce “Sustainability” or “Environmental, Social and Governance” 

reports that consider these factors. Sustainability 

reports do not sufficiently address the risks and opportunities 

associated with the business strategy and model, nor are they 

well-known and relevant within companies. More reports and 

more information do not imply better reporting. 

As a result, discussions have been carried out for several years 

as to whether the published corporate information should be 

realigned and in parts condensed, made more transparent, and 

formulated in a more understandable way. New concepts for 

reporting are necessary and go beyond the existing traditions 

and legal requirements. The idea of integrated reporting is 

considered a viable alternative. 

The International Integrated Reporting Council 

All observers are aware that, as with all good ideas, a common 

and consistent understanding of integrated reporting is highly 

necessary to gain acceptance in markets, politics, and across 

society. Nevertheless, until recently, no standards or principles 

for integrated reporting had been set. The International 

Integrated Reporting Council (IIRC) was founded with the support 

of HRH Prince Charles with the Prince’s Accounting for 

Sustainability project in August 2010. It was intended to fill 

this gap by developing an internationally binding framework 

that supports companies in preparing an integrated report. 

With a number of draft papers, the IIRC proposed a framework 


for combing financial core elements with environmental and 

social information, as well as aspects of corporate governance, 

in a distinct, precise, consistent, and comparable format. 

The Council is composed of representatives from the most 

relevant organizations that have shaped financial reporting 

in the past and who come from the sciences, for example: 

companies such as EnBW, auditing firms, and organization 

such as IASB, IOSCO, and the World Bank, as well as leading 

organizations in the field of sustainability, such as the Global 

Reporting Initiative. As one of the leading actors in developing 

corporate reporting, the European Union is also being closely 

followed with great interest concerning current developments 

in integrated reporting. 

What is integrated reporting? 

The IIRC Consultation Draft, presented in April 2013, is a 

principle-based and not a rule-regulated approach. From a continental 

European point of view, this constitutes a less precise 

approach while containing fewer mandatory requirements. 

At the heart of the Consultation Draft is the value concept as 

well as the concept of materiality, which has a great effect 

on the process of integrated thinking within the company 

and the assessment and the comprehensibility of connecting 

financial and non-financial KPIs. The Consultation Framework 

defines integrated reporting as a process that results in 

communication by an organization, most visibly a periodic 

integrated report about value creation over time. The most 

visible result of integrated reporting is the integrated report, 

which, according to the suggested framework, is described as: 

“a concise communication about how an organization’s strategy, 

governance, performance and prospects, in the context of its 

external environment, lead to the creation of value over the 

short, medium and long term.” 

Four main elements of integrated reporting can be highlighted: 

1| The concept of integrated reporting, with its guiding principles 

and content elements, represents not only an evolution 

but also a revolution in corporate reporting that increase 

the quality and the information value of corporate reporting 

according to the motto “Less is more.” 

2| The concepts of integrated thinking and integrated reporting 

are supposed to reflect the management capability to 

monitor and to manage the complexity of the corporate 

value creation process. Following this logic, the actual 

integrated report is at the end of the process chain. 

3| Integrated reporting is a holistic approach that connects 

classical financial reporting with non-financial information 

(such as sustainability issues, risk management, and corporate 

governance aspects). It merges all material information 

about strategy, corporate governance, and performances, and 

thereby mirrors economic, ecological, and social contexts 

within which a company is operating. 

4| The concept of integrated reporting is not only a communication 

instrument in terms of report optimization, but 

also a steering tool that is used to measure financial and 

non-financial objectives through a corporate performance 

system with KPIs and target values. 

It is the declared objective to communicate the internal management 

view externally, thereby enabling external observers to 

have a better and more comprehensive picture of the company. 

To test the practicality of the concept, the IIRC started a pilot 

program for companies and investors in 2011. Since then, 

about 100 international companies have been engaged in 

this pilot program, which has the goal to further develop 

the framework by adding practical advice from companies 

and investors – one of the main goals of the IIRC. In April 

2013 the IIRC Draft Consultation Framework was launched. 

Pilot participants as well as all interested parties have the 

possibility until July 15, 2013, to comment on the framework 

and thereby simultaneously participate in the realignment of 

corporate reporting. In December 2013 the first version of the 

IIRC framework will be released. 

EnBW’s path to integrated reporting 

In 2011 EnBW embarked on a journey to integrated reporting. 

The direction of this journey is already known, but the path it 

takes, together with its internal and external stakeholders, has 

yet to be determined. In order to do justice to future markets as 

well as political and social demands, EnBW has put a clear focus 

on its strategic targets. Long-term and responsible thinking and 

action, including economic, ecological, and social aspects, are 

180 


Agenda 


thereby necessary prerequisites. EnBW’s path is signposted by 

a continual convergence process that includes many internal 

stakeholders in different working groups. EnBW’s integrated 

report is adapted on a homoeopathic dosage level so as not 

to overburden the reader with this new form of reporting. 

As an interim result, EnBW has published a combined report 

for fiscal year 2012. EnBW consciously uses the term “combined 

report” – in other words, a combination of the sustainability 

and business reports – because not all central concepts of 

integrated reporting have been implemented yet. This report 

was created based upon an optimized sustainability strategy 

and it already combines key aspects of the business and sustainability 

reports to a major degree. In addition, first steps 

were made to reduce the amount of facts provided to limit 

the report to the most crucial information. 

EnBW’s project organization 

EnBW’s path encompasses at its heart a company-wide project 

that was set up by the EnBW Board of Directors to implement 

the idea of integrated reporting across business units. The project 

is under the leadership of one employee from the finance 

branch and one employee from the sustainability branch (both 

authors). This step is an important signal for a change from 

internal “silo thinking” – irrespective of what degree this 

situation is present in a company – to an integrated approach. 

For achieving the project goals, a close mesh of all relevant 

business units is crucial, therefore they are all integrated into 

the project team. This means that various representatives 

from the fields of strategy, communications, investor relations, 

corporate accounting, legal affairs, controlling, environmental 

protection, human resources, and sustainability are involved 

throughout the process of the project. 

Open questions 

Although significant progress has been made in a number 

of fields with regard to content elements and guiding principles, 

some questions remain unresolved. It still needs to be 

clarified whether integrated reporting is a renunciation of the 

traditional shareholder value reporting. In the Consultation 

Draft, investors are described as the main addressees, but at 

the same time the concept fosters the idea of a stakeholder 

orientation, which is advocated by many companies. There are 

different opinions out there as to whether integrated reporting 

is more than pure report optimization – in terms of reducing 

and trimming business reports. Corporate experience will 

highlight whether an integrated governance concept has to 

be at the heart of a process that addresses corporate steering 

components for assessing the main corporate objectives as well 

as presenting the company strategy and performance results 

in a new address-orientated format. In addition, a number of 

national particularities will have to be resolved. In Germany, 

there are discussions as to whether the German management 

report (Lagebericht) already fulfills the recommendations of the 

Consultation Framework on integrated reporting. The initial 

view that there are no major changes in comparison to the 

requirements of the German management report (s. DRS 20, 

German Accounting Standard, a regulatory standard for the 

group management report in Germany) has to be taken into 

consideration. But upon closer examination, significant changes 

can be identified when compared to the current legal requirements. 

These affect the accuracy of the report, the expectations 

of the linked representations, stakeholder-oriented reporting, 

and future orientation. 

These and other questions are being discussed on a regular 

basis together with other German pilot program companies 

(SAP, Munich Airport, BASF, and Deutsche Bank) at the German 

IIRC Round Table. It is the objective of the Round Table to 

have regular exchanges of experiences concerning the central 

question of implementing IIRC recommendations. 

Integrated reporting can definitely not be classified as “old 

wine in new bottles.” It constitutes a new approach for company 

reporting as well as for corporate governance. This new 

approach has led – and will lead – companies in the near 

future to alter their approaches to collecting, linking, and 

preparing financial and non-financial information and to 

external reporting. In comparison to compliance with rulebased 

approaches, it has the potential. The discussion entails 

the promise that, in the future, corporations can gain more 

trust and confidence in the reporting of its stakeholders 

through more clarity, conciseness, and transparency in their 

main communication tool. 

By introducing integrated reporting, companies can achieve 

reputational advantages with key stakeholders by using a 

precise, transparent, and representative form of reporting. 

Both authors supervise EnBW’s project on Integrated 

Reporting. Dr. Lothar Rieth is project manager in the 

Sustainability Department, Christoph Dolderer is Chief 

Group Accounting Officer at Energie Baden-Württemberg 

(EnBW AG). 


What Are the Benefits of 

Integrated Reporting? 

By Nicolette Behncke 

Integrated reporting moves beyond a silo approach of information 

gathering and reporting toward a more comprehensive 

assessment and presentation of a company’s value 

and performance. This offers various benefits, such as giving 

organizations a more holistic view of information relevant to 

their strategies, business models, and abilities to create and 

sustain value in the short, medium, and long term. 

More specifically, potential benefits are: 

• greater access to and transparency of information from a 

wide range of both internal and external information sources, 

through integrated processes and the standardization of 

information; 

• streamlined and better-connected reporting through more 

reuse of reporting elements, transparency, and collaboration 

on reporting; 

• more relevant and understandable information available 

for management and stakeholders to enable better decision 

making; 

• better allocation of capital and other resources; 

• better access to capital markets and business partners; 

• competitive advantage through cost savings, operational 

efficiencies, and differentiation. 

However, the roadmap to realizing such benefits is not necessarily 

a simple one. It requires a comprehensive approach: 

understanding the company’s strategy drivers, identifying key 

stakeholders and their specific expectations, and implementing 

processes to obtain the information necessary for an integrated 

approach to managing the business. 

The integrated model set out below highlights the scope of 

the information that needs to be considered when assessing 

the information demands of an organization, including the 

connectivity between the various areas – external, strategic, 

business, and performance. Regarding external drivers, companies 

might ask: What is the market and regulatory landscape 

like today, and how is it changing? What are the megatrends 

that are changing society now, and how will they impact 

markets in the future? With a view to the business model, 

relevant questions include: Are the business model and supply 

chain designed to withstand the impacts of climate change, 

technology failures, and natural disasters? What assumptions 

have been made regarding the availability of resources? 

Answering these questions within an integrated approach 

will give companies a much clearer picture of their industry, 

markets, and broader environment as well as how to change 

products and services, business models, and positioning to 

remain successful. 

Q: Is integrated reporting an external reporting phenomenon or does 

it have wider ramifications? 

Even though the International Integrated Reporting Council 

(IIRC) discussion paper, which has triggered the current 

discussion about integrated reporting, initially provides a 

framework for external reporting, its aim is much higher. 

The idea of integrated reporting is focused on making some 

real changes to the existing corporate reporting model, both 

to external reporting as well as to internal decision making. 

An integrated report is merely intended to be one output of 

integrated reporting, which should reflect – and will depend 

upon – integrated thinking within an organization. It is about 

understanding the relevance of various factors – financial as 

well as non-financial – and its connectivity to the company’s 

business model, as well as about considering the insights 

182 


Agenda 


formed with such a comprehensive approach in strategic and 

operational decisions. Ultimately, it is a topic with implications 

for the management, steering, governance, and culture 

of an organization. 

Q: A status quo analysis based on the outcome of such questions may 

be the first step on the road to implementing an integrated reporting 

approach. Which standards have to be applied? 

Despite increasing attention on and application of integrated 

reporting, there is still no common mandatory reporting 

standard. The only exception so far is South Africa, where 

companies listed on the Johannesburg stock exchange have 

to provide an annual integrated report – or explain why they 

have not – according to the King III Code of Governance Principles. 

The IIRC consultation draft, published in April 2013, 

offers fundamental principles for a new corporate reporting 

framework, including content elements and guiding principles 

as well as the “six capitals” approach in order to describe 

value creation. Furthermore, the IIRC issued three background 

papers on materiality, business model, and capitals, providing 

preparers with a clear idea of how a good integrated report 

should look. Maybe the final standard to be published in December 

2013 will become mandatory one day. Nevertheless, 

we think that the principles of good reporting included in the 

IIRC framework can be applied regardless of specific regulation. 

In addition, we already see various reporting examples that 

reflect the ideas of integrated reporting very well and thus 

offer organizations that are aiming to move toward integrated 

reporting a foundation to build upon. 

Q: Is an integrated report a “one size fits all” solution? 

In essence, an integrated report should tell the story of the 

company. This includes historical financial information as 

well as information that is forward-looking, explains the 

company’s strategic direction, and discusses targets, risks, and 

opportunities to be addressed. The structure and length of the 

report thus depend on the complexity of the company’s business. 

However, the report should focus only on the matters 

that the organization considers most material for its value 

creation. This again leaves room for a different understanding 

of the scope of reporting and will lead to diversity in 

integrated reporting practices. Therefore, the development 

of supplementary guidelines for a consistent application of 

the IIRC framework will be crucial to assure comparability 

among preparers. 

Due to the numerous existing regulatory reporting requirements, 

it is currently not realistic to call for replacing existing 

regulated information with an integrated report in the short 

term. Therefore, the IIRC rather refers to adding this information. 

However, as one of the goals of integrated reporting 

is the reduction of current reporting, preparers, users, and 

standard-setters should find alternative reporting solutions, 

such as including information required by the IIRC framework 

into existing reporting, and additionally making use of the 

online environment, thereby reducing clutter in the so-called 

primary report. 

Q: When is my company ready for an integrated report? 

In theory, every company can get ready at any time. However, 

depending on the size and complexity of an organization as 

well as the maturity of its reporting, a move toward integrated 

reporting may need longer preparation. Fortunately, many 

companies will not need to start the process from scratch, 

because they already publish a transparent, investor-oriented 

annual report, sustainability information, KPIs, and other 

information required for integrated reporting. However, such 

information is often not linked to their strategy and business 

model. Therefore, moving toward integrated reporting will 

mean restructuring the underlying reporting and internal 

processes. In some organizations, the structures may be so 

complex and fragmented that companies may even consider 

establishing a new structure with processes designed specifically 

for integrated reporting. 

Given the developments and the potential benefits of integrated 

reporting, organizations should consider moving toward integrated 

reporting in anticipation of regulatory requirements. It 

may help them to make a difference as first movers and thus 

give them a valuable competitive advantage. 

For those who do not yet report on non-financials, integrated 

reporting can be an opportunity to move to a more comprehensive 

and meaningful reporting that meets future requirements 

from the outset. 

Q: Is an integrated report an additional document that organizations 

need to produce? 

According to the IIRC framework, the main output of integrated 

reporting seems to be a single report that the IIRC 

anticipates will become an organization’s primary report. 

Nicolette Behncke is expert for 

Integrated Reporting at the Audit and 

Assurance Company PwC. 


When does it pay? 

Linking Carbon and Financial Performance 

Why do firms have a management orientation toward sustainability? 

How should society reconcile the dilemma of maximizing satisfaction 

today without placing an undue burden upon ourselves in the future? 

In the strategy literature, a related question remains fiercely debated: 

Does it pay to address ecological and social issues? 

184 


Agenda 


By Prof. Dr. Timo Busch 

Starting from very fundamental investigations, John Spicer 

was one of the first authors to conduct an econometric study 

that investigates the economic consequences of ecological and 

social efforts. Ever since then, a substantial body of more recent 

management research has sought to address this question and 

investigate the relationship between corporate sustainability 

performance (CSP) and corporate financial performance (CFP) 

from different angles. However, there continues to be much 

confusion within this debate. At the 2010 Academy of Management 

conference in Montreal, papers presented in a session 

entitled “Examining the corporate social performance–corporate 

financial performance relationship” offered various results: 

no relationship, a positive relationship, or even a curvilinear 

relationship. These results are reflected by scholars’ attempts 

to detect an outperformance of mutual funds or specialized 

indexes that invest in firms with enhanced CSP: Empirical 

studies suggest that sustainable investments may either outperform 

the market, underperform the market, or make no 

difference in terms of their risk-adjusted financial returns. 

As a result of these mixed findings, some scholars suggest 

that the situation has remained the same: There is no clear 

relationship between CSP and CFP. Other scholars conducted 

meta-analyses and indicate – albeit highlighting epistemological 

and methodological concerns – that CSP practices are 

likely to pay off. At least there seems to be no clear indication 

of a negative relationship between CSP and CFP. 

One common notion that has recently emerged in the literature 

emphasizes that there is no unequivocal, final answer to the 

CSP–CFP debate. As a consequence, focusing further on the 

“Does it pay?” question defeats its purpose, as it “reinforces, 

rather than relieves, the tension surrounding corporate responses 

to social misery.” As a call for extending this debate, 

scholars have suggested that instead of seeking to answer the 

“Does it pay?” question, future research should address the more 

important one of “When does it pay?” This line of thought is 

consistent with Rivoli and Waddock’s argument that there is 

a clear business case for sustainability, but it shifts over time. 

What is – and what is not – responsible corporate practice 

is time- and context dependent; the same holds for the profitability 

of CSP practices. In sum, Berchicci and King conclude 

that CSP practices “may pay only for some firms, or in certain 

cases, or in certain time frames.” 


Extending the business case debate 

One reason for the inconclusiveness of the business case debate 

can be ascribed to the lack of long-term considerations. 

To illustrate this in more detail, it is important to distinguish 

between three generic positions within this business case debate. 

First, there is the “only profits matter” argument: Rooted in 

neo-classical economic theory, this argument considers firms 

to be efficiency-driven anyway, and thus no special emphasis 

on managing ecological or social issues is needed. The managerial 

advice would be to incorporate sustainability only to 

the extent as it is covered by business as usual processes. Any 

further efforts to increase CSP unnecessarily constrain the 

firms’ actions through increased costs. Following this line of 

thought, management should only focus on maximizing profits 

and creating shareholder value. It is obvious that, under these 

assumptions, there is not much room for more sustainable business 

practices, especially to the extent that is urgently needed. 

Second, there is the short-term payoff argument: This argument 

is rooted in the assumption that, because of information asymmetries, 

companies may not always follow efficiency-driven 

goals and make optimal decisions. Based on this assumption, 

environmental-strategy research suggests green management 

The CSR-CFP Link – Some Useful National Studies 

Malaysia: 

Mustaruddin Saleh, Norhayah Zulkifli and Rusnah Muhamad: An Empirical Examination of the Relationship between 

Corporate Social Responsibility Disclosure and Financial Performance in an Emerging Market 

Link: http://www.pbfeam2008.bus.qut.edu.au/papers/documents/MustaruddinSaleh_Final.pdf 

South Korea: 

Fu-Ju Yang, Ching-Wen Lin and Yung-Ning Chang: The linkage between corporate social performance and corporate 

financial performance 

Link: http://www.academicjournals.org/ajbm/pdf/pdf2010/apr/yang%20et%20al.pdf 

Indonesia: 

Hasan Fauzi and Kamil M. Idris: The Relationship of CSR and Financial Performance: New Evidence From Indonesian 

Companies 

Link: http://ssrn.com/abstract=1694284 

Bangladesh: 

Kazi Zahirul Islam: Corporate Social Responsibility (CSR) and Issue to Corporate Financial Performance (CFP): 

An Empirical Evidence on Dhaka Stock Exchange (DSE) Listed Banking Companies in Bangladesh 

Link: http://www.iiste.org/Journals/index.php/EJBM/article/view/2456 

South Africa: 

Hopolang Leeto Ntoi: Impact of Corporate Social Responsibility on the Financial Performance of Companies listed on the 

Johannesburg Securities Exchange 

Link: http://upetd.up.ac.za/thesis/available/etd-06182011-184232/unrestricted/dissertation.pdf 

Pakistan: 

Nadeem Iqbal, Naveed Ahmad, Nauman Ahmad Basheer and Muhammad Nadeem: 

Impact of Corporate Social Responsibility on Financial Performance of Corporations: Evidence from Pakistan 

Link: http://www.macrothink.org/journal/index.php/ijld/article/download/2717/2286 

Sri Lanka: 

Wijesinghe K. N. and Senaratne S.: Impact of Disclosure of Corporate Social Responsibility on Corporate Financial 

Performance in Bank, Finance and Insurance Sector in Sri Lanka 

Link: http://www.kln.ac.lk/uokr/ICBI2011/A&F%20141.pdf 

186 


Agenda 


efforts can detect previously overlooked efficiency potentials. 

Increasing operational efficiencies then, in turn, contributes to 

the firms’ profitability and competiveness. Hillman and Keim 

present similar arguments in the stakeholder context: If CSP 

practices are directly related to primary stakeholder concerns, 

they may not only serve to improve stakeholder relations, but 

also improve shareholder value. Following this line of thought, 

it has been argued that there is no linear relationship between 

CSP and CFP. The managerial advice would be to make use of 

cost-benefit analyses to determine when the optimal amount 

of investments for enhancing CSP is reached. 

Third, there is the long-term value-creation argument: This 

school of thought proposes that management should care about 

environmental degradation, as this is expected by society. According 

to this line of thought, in the short run it is possible 

that firms will face a negative effect of CSP practices on CFP, as 

such activities do not necessarily result in immediate returns. 

However, in the long-term they benefit from such a strategy, 

as their stakeholders value more socially acceptable business 

practices, which in turn contributes to long-term business 

success. The managerial advice would be to investigate when 

and how global sustainability trends and challenges are going 

to change the business environment, and to implement 

corporate strategies that respond to these changes. 

Most of the empirical research on the business case considers 

rather short-term effects, for example, the return developments 

in the following year or the evaluations in financial markets 

within a short time frame after an event. However, in practical 

terms, it may often be difficult to precisely determine the 

optimal amount of CSP investments, especially when purely 

looking at the short-term financial benefits. Some investments 

may immediately be profitable, others not. Thus, limiting 

CSP–CFP evaluations only to short-term considerations can 

be seen as an important reason for the inconclusiveness of 

the business case debate. 

Moreover, in most of the cases, the fundamental negative 

consequences of unsustainable business practices are likely 

to become visible in the long run. This, in turn, implies 

that efforts to become more sustainable may also require 

some time to become tangible – or, in business language, to 

materialize. First empirical evidence suggests that, in fact, a 

long-term orientation has a positive effect on CFP. Wang and 

Bansal find exactly that for firms with a high level of longterm 

orientation – their relationship between corporate 

social responsibility and CFP is stronger compared to firms 

with a low level of long-term orientation. Busch, Stinchfield, 

and Wood find a positive effect of CSP on CFP in the long run, 

whereas there is no support for this effect in the short run. 

As such, it may be important to actually answer the “When 

does it pay?” question by considering the long-term effects 

and implications of CSP. 

Managerial implications 

The way ahead is that the short-term efficiency-driven objectives 

need to be aligned with a long-term value-creating strategy. 

In a first step, for example, Unilever has moved its reporting 

practices in this direction. As from 2011 the firm has been 

releasing a quarterly trading statement every second quarter 

instead of publishing full financial results. The purpose behind 

this change is to enhance communication about corporate 

performance by moving from a short- to a longer-term focus, 

which better reflects the way the firm manages its business. 

This is a good starting point. 

The next important step is to understand a firm’s ecological 

embeddedness, as it is a key determinant for the long-term 

success of an organization. Based on this understanding, new 

questions need to be asked when entering markets, developing 

products, and evaluating investment opportunities: How 

resource-dependent are the production processes? To which 

extent do we explore low-carbon opportunities? Are there 

any potentially controversial business practices, notably in 

the supply chain? Essentially, as part of its long-term-oriented 

strategy, a company does not use the prevailing uncertainties 

within the business environment as reasons for inaction. 

Instead, the principle of responsible leadership can serve as 

the foundation for a proactive business strategy. 

As a precondition for firms implementing such a strategy, the 

organization’s self-image is important. It has to shift its taken-forgranted 

stance toward an attitude of being a responsible leader 

that acknowledges the relevance and necessity of taking new, 

uncommon, and sometimes even inconvenient pathways that 

reflect the firm’s ecological embeddedness. As Amory Lovins 

puts it, such leaders who want to get it done need “guts, creativity, 

and perseverance.” Responsible leaders can fundamentally 

change corporate strategy and influence “others to understand 

and agree about what needs to be done and how to do it, and 

the process of facilitating individual and collective efforts to 

accomplish shared objectives.” Thus, business leaders can become 

important drivers of (structural) changes. From this point 

of view, the primarily instrumental motivation of a long-term 

value-creating strategy finally merges with the normative form 

of addressing corporate sustainability. 

Dr. Timo Busch is Professor at the 

School of Business, Economics and Social 

Science, University of Hamburg. 


Unpacking the 

CSR-CFP Link 

188 


Agenda 


The continuing financial crisis calls for different managerial paradigms and a broader 

definition of business success. The narrow and exclusive focus on short-term monetary 

results has led to counter-productive and negative consequences for business and society. 

All over the world, different approaches are emerging. Thanks to innovative corporate 

social responsibility (CSR) practices, a great number of firms have been working with 

stakeholders in order to support broad and shared value-creation processes that are able to 

benefit the different constituencies, including not only shareholders but also employees, 

customers, suppliers, the community in which the company operates, and others. 

By Francesco Perrini, Angeloantonio Russo, Antonio Tencati, and Clodia Vurro 

The real impact of CSR efforts on corporate performance is 

still questionable. In fact, for four decades, research on the 

role and responsibilities of business has centered on the 

business case for CSR. As a result, an increasing number of 

studies have appeared on the ties between corporate social 

performance (CSP) and corporate financial performance (CFP). 

Yet, the business case for social responsibility and the related 

link between CSP and CFP remain the most controversial areas 

in studies on business-in-society. 

As a consequence – and in order to keep research aligned 

with business practice and growing practitioner interest in 

CSR – the shift away from a simplistic assumption over the 

link between CSP and CFP has become increasingly stringent, 

along with a growing request to reorient empirical investigation 

toward a deeper understanding of what it means to succeed 

in CSR, disentangling its specific dimensions. 

Based on an extensive review of the literature on the CSP-CFP 

link, our work aims at providing a comprehensive organizing 

framework for systematizing the performance effects of specific 

CSR-related efforts. In particular, adopting a stakeholder-based 

view of a firm’s engagement in CSR, we delve into the various 

dimensions underlying the relationship between stakeholderrelated 

CSR policies and specific performance outcomes. In 

so doing, we point out the drivers of the relationship, thus 

advancing the existing debate over the need for a contingency 

approach to the business case for CSR. 

In more detail, our contribution provides a guide that is 

useful for understanding better the mechanisms by which 

certain activities may translate into improvements in a firm’s 

performance, leveraging on specific drivers of market and 

operational results. Thus, it moves beyond a straightforward 

view of the CSP-CFP link, underlining the limits of paying 

disproportionate attention to “black box” approaches to both 

CSR and the performance of firms. 

Deconstructing the CSP-CFP relationship: 

A stakeholder approach 

Rooted in the stakeholder theory of the firms, recent research 

has been appreciating the impact of CSR, both at different 

levels of analysis and in specific management domains and 

stakeholder interactions. In this context, research has started 

to focus on organizational, market, consumer-based, and/or 

environmental outcomes of specific areas of responsibility. 

Moreover, emerging theoretical and empirical accounts have 

started to investigate the impact of specific tools and practices 

of CSR management in a stakeholder setting, based on a conception 

of CSR as a new governance model rooted in the value 

of stakeholder relationships and in the capacity of a firm to 

meet stakeholder needs beyond mere legal compliance. Thus, a 

clear understanding of CSR performance consequences should 

disentangle different management areas and investigate how 

specific activities translate into organizational, managerial, or 

market gains according to a multiple-bottom-line perspective. 


An extensive and in-depth review of 250 empirical and theoretical 

contributions allowed us to map the major mechanisms 

by which CSR efforts may turn into performance outcomes, 

leveraging on stakeholder-related performance drivers. Accordingly, 

Figure 1 provides a summary picture of how integrating 

CSR in specific management domains (e.g., supply chain, 

internal organization) can lead to both revenue-related and 

cost-related outcomes through its impact on performance 

drivers such as, for example, perceived trustworthiness and 

company reputation, organizational commitment, consumercompany 

identification, and a firm’s innovativeness. 

Figure 1 

The CSP-CFP multilevel framework: efforts, drivers, and outcomes 

CSR EFFORTS DRIVERS OF PERFORMANCE PERFORMANCE OUTCOMES 

Internal organization 

Work content, climate, and environment 

Job design 

Knowledge management 

Safety and stability 

Customers 

Transparency and reliability 

Open dialogue 

Mutual understanding 

Quality and innovation 

Supply chain 

Involvement and dialogue 

Integration of CSR criteria into vendor 

selection, managing, and evaluation 

procedures 

Commitment 

Satisfaction 

Motivation 

Trust 

Reputation 

Identification 

Satisfaction 

Innovation 

Trust 

Quality 

Revenue-related outcomes 

Growth opportunities 

Competitive positioning 

Brand equity 

Society 

Engagement and dialogue 

Cross-sector partnerships 

Community development 

Natural Environment 

Impact prevention, control, 

and assessment 

Managerial tools and strategies 

License to operate 

Social capital 

Innovation 

Organizational change 

Innovation 

Compliance 

Reliability 

Reputation 

Cost-related outcomes 

Cost of labor 

Operational efficiency 

Cost of capital 

Risk management 

Corporate governance 

Voluntary disclosure 

Governance and engagement 

Transparency 

Accountability 

Reliability 

Fairness 

Source: Perrini et al. (2011) 

190 


Agenda 


By unpacking the CSP-CFP link, our framework provides an 

important further step for both research and managerial 

understanding of the need for setting clear boundaries and 

specifying levels of analysis while addressing the business 

case for CSR. 

Implications for business 

Firms are searching for legitimacy. Due to the financial crisis 

and the related corporate scandals, society is asking firms to 

generate more than money for the benefit of limited groups 

of interest such as top managers and main shareholders. However, 

several companies “…continue to view value creation 

narrowly, optimizing short-term financial performance in a 

bubble while missing the most important customer needs and 

ignoring the broader influences that determine their long-term 

success” (Porter and Kramer). 

If many firms overlook these crucial opportunities, it is 

because the business case for CSR is still elusive. The lack of 

once-and-for-all supportive evidence has often undermined 

efforts to fully integrate the CSR perspective into managerial 

decision making. In parallel, this issue also has a great 

impact on the corporations’ relationships with investors. In 

fact, if there is no clear linkage between CSR and, for example, 

net income, earnings per share, and market value, why 

should CSR be a worthwhile consideration in investment 

decisions? Financial markets and the “mainstream” investment 

community do not appropriately value the CSR efforts 

carried out by innovative firms and this behavior penalizes 

business and society. 

From a strategic standpoint, rejection of CSR dramatically 

limits companies’ understandings of their surrounding environments. 

For the investment community, ignoring the 

possible consequences – if not benefits – of CSR means losing 

opportunities for more reliable and robust investments. 

Despite some attempts to integrate these points into mainstream 

management and performance assessments, financial 

considerations are still the prevailing criteria for accepting or 

rejecting corporate initiatives or investments. Therefore, more 

comprehensive and reliable tools and methodologies, such as 

integrated reporting, to support the evaluations of corporate 

performance and business projects are needed. 

Our analysis proposes a framework that could help companies 

and the investment community to better understand how CSR 

– and therefore more inclusive stakeholder-oriented governance 

systems – could positively affect corporate performance. Firms 

can refer to that to better assess, reframe, and improve their 

CSR policies – in terms of their efficiency and effectiveness 

– by considering the mechanisms that could lead to enhanced 

performance. The investment community can draw on this 

framework to increase its understanding of corporate initiatives 

and efforts in order to better evaluate the real quality 

of management and the sustainability of the value-creation 

processes developed by the companies they work with. 

Furthermore, our framework could also assist a more balanced 

interaction between firms and the investment community. At 

the moment, this field suffers from a knowledge gap. 

To address the sustainability challenge, several firms are developing 

more participative governance systems and deploying 

broad value-creation processes by targeting, involving, and 

engaging stakeholders, but these efforts are not fully appreciated 

by the financial markets. The perspective provided by the 

CSP-CFP multilevel framework outlined in this study offers a 

positive contribution to address this crucial issue and direct 

the behavioral patterns of firms and investors toward more 

aware, consistent, and informed approaches. 

The article draws upon Perrini, F., Russo, A., Tencati, A., and Vurro, C.: 2011, 

“Deconstructing the Relationship between Corporate Social and Financial 

Performance,” Journal of Business Ethics 102 (Supplement 1), 59 - 76. 

Francesco Perrini (Università Bocconi), Angeloantonio Russo 

(LUM University), Antonio Tencati (Università degli Studi di 

Brescia), and Clodia Vurro (Università Bocconi) work at the 

CReSV – Center for Research on Sustainability and Value, 

Università Bocconi, Milan, Italy. The authors contributed 

equally to the work. 


Publishing house: 

macondo Media Group 

Greeting: 

H.E. Ban Ki-moon, 

United Nations Secretary-General 

Publisher: 

Dr. Elmer Lenzen 

Editorial staff: 

Marion Lenzen (Senior Editor), Dennis Lohmann (Editor), 

Sonja Scheferling (Editor) 

Photo Director: 

Marion Lenzen 

Art Director: 

Magnus A. Sundermann 

Text Editor: 

Robert Furlong 

Translations: 

Casey Butterfield 

Application and Approval Process to Participate: 

Starting on 25 February, 2011, all business participants that 

have submitted a Communication on Progress (COP) will 

be classified in one of two categories, based on the Global 

Compact Differentiation Programme. The Differentiation 

Programme reinforces the Global Compact’s objective of 

changing business practices through transparency, dialogue 

and stakeholder vetting. So all companies classified as 

“GC Active level” or “GC Advanced level” are supposed to have 

created a meaningful vetting process of the accuracy of their 

disclosure and performance. In this process companies also 

pass application and approval process to participate in the 

Global Compact International Yearbook. 

Authors of this edition (in alphabetical order): 

Perihan Abdelghaly, Africa Renewal/Nomcebo Manzini, 

Dominique Alhäuser, Dr. Stephanos Anastasiadis, Valentina 

Andreeva, Dr. Frank Appel, Elena Arkhipova, Tony Awad, 

Dr. Dorothée Baumann-Pauly, Nicolette Behncke, Corinne 

Bélière, Yvonne Benkert, Tita Berton, Benedict Blayney, 

Dr. Kurt Bock, Ann-Kristin Brönnecke, Katja Brösse, 

Prof. Dr. Timo Busch, Prof. Bonnie Campbell, Francesca 

Carnesella, Thomas Compagno, Camilla Crone Jensen, 

Roman Dashkov, Scott Dille, Christoph Dolderer, EDF Group, 

Charles Ferro, Lilian Furrer, Julia Glogowski, Natalia Gonchar, 

Green Delta Insurance, Prof. Ralph Hamann, Pierre-Guillaume 

Harscouët, Jenice Hartmann, Maha Hasebou, Christine 

Haupt, ITOCHU Corporation, Hanne Joergensen, Georg Kell, 

Mark Kenber, Uwe Kleinert, Rainer Knirsch, Steffen Kurzawa, 

Dominique Lamoureux, Dr. Elmer Lenzen, Klaus Lintemeier, 

Andrew Lofts, Dr. Jan Dietrich Müller, Fred Nelson, Francesco 

Perrini, Elise Pham, Dr. Bertrand Piccard, Prosegur, Prof. Dr. 

Lars Rademacher, Prof. Dr. Andreas Rasche, RBS Group, 

Kathleen Reid, Jeffrey Revels, Julie-Anne Richards, Katharina 

Riese, Dr. Lothar Rieth, Angeloantonio Russo, Andrey Samatov, 

Prof. Dr. Hans Joachim Schellnhuber, Prof. Dr. Andreas Georg 

Scherer, Bernhard Schwager, SK SUPEX Council, Susan 

Steinhagen, Mara Swan, Antonio Tencati, Dr. Ansgar Thiessen, 

May Myat Thu, Katharina Tomoff, Dr. Peter F. Tropschuh, 

Myriam Tryjefaczka, Lilinés Urriola Herrera, Christopher 

A. Viehbacher, Alexey Vladimirov, Martina Vollmuth, Clodia 

Vurro, Dr. Sigrun M. Wagner, Svenja Wittkämper 

Solely responsible for the editorial contributions under the 

heading “Good Practice” are the companies themselves. 

Named articles do not reflect the opinions of the publisher. 

Photo Credits: 

UN Photo/Eskinder Debebe (P. 3), UN Photo/Mark Garten 

(P.4), GlobalStock/istockphoto.com (P. 6 above, 8/9), 

WLDavies/istockphoto.com (P. 7 above, 50/51), 2008 Getty 

Images/EdStock/istockphoto.com (P. 7 below, 174/175), 

Sakhalin Energy (P. 10, 90, 129), Dean Mitchell/istockphoto. 

com (P. 12), Sergey Nivens/Fotolia.com (P. 14), Klaus 

Lintemeier/Prof. Dr. Lars Rademacher/Dr. Ansgar Thiessen 

(P. 17), goldenKB/istockphoto.com (P. 19), nyul/istockphoto. 

com (P. 20, 26), Dr. Dorotheé Baumann-Pauly/Prof. Dr. 

Andreas Georg Scherer (P. 21), UN Global Compact/Michael 

Dames (P. 23), Prof. Andreas Rasche (P. 24 left), pressmaster/ 

Fotolia.com (P. 24 right), Dr. Stephanos Anastasiadis 

(P. 27 left), Copland-Cale Photography/Dr. Sigrun M. Wagner 

(P. 27 right), Taras Vyshnya 2012/Fotolia.com (P. 30/31), 

Andreas Kühlken/Deutsche Post DHL (P. 32), timy/Fotolia. 

com (P. 34), eloleo/ Fotolia.com (P. 35), viappy/Fotolia.com 

(P. 36), aerogondo/Fotolia.com (P. 37 above), Mark Kenber/ 

The Climate Group (P. 37 below), Marcin Chodorowski/Fotolia 

(P. 40), Prof. Dr. Hans Joachim Schellnhuber (P. 41), itestro/ 

Fotolia.com (P. 44), sborisov/Fotolia.com (P. 45 above), Julie- 

Anne Richards (P. 45 below), UN Photo/Rick Bajornas 

(P. 46), Solar Impulse (P. 47 above), Jean Revillard/Rezo/Solar 

Impulse (P. 47 below), UN Photo/Fred Noy (P. 52), UN Photo 

(P. 53), Martin Harvey/WWF-Canon (P. 54), UN Photo/Evan 

Schneider (P. 55 above), Fred Nelson (P. 55 below), Hahn/ 

Cotton Made in Afrika (P. 56), Renate W./Fotolia.com 

(P. 57 above), UN Photo/Christopher Herwig (P. 61, 62 

above), Africa Renewal/Nomcebo Manzini (P. 62 below), 

dalchemist27/Fotolia.com (P. 63), UN Photo/B. Wolff (P. 

64), Prof. Ralph Hamann (P. 65), UN Photo/P. Mugabane 

(P. 66), sfmthd/Fotolia.com (P. 68), africa/Fotolia.com (P. 

69 above), Prof. Bonnie Campbell (P. 69 below), UN Photo/ 

192 


GC International Yearbook 

Imprint 

Albert Gonzalez Farran (P. 72/73), Laurent Masson/Air France 

KLM (P. 74), Ayeyarwady Bank (P. 76-79), Bayer (P. 81), 

Consolidated Contractors Company (P. 82/83), Green Delta 

Insurance (P. 84/85), Rodrigo Herrera/Medcom (P. 86/87), 

SK (P. 93), sweetlove yasmine/Teck (P. 94), The TMS Group 

(P. 96/97), Adecco Group (P. 99), Alexander Schmitt/Bosch 

(P. 100), ManpowerGroup (P. 103), Saga Furs (P. 104/105), 

Weidmüller (P. 106/107), AUDI (P. 111), Camfil (P. 112), 

Deutsche Post DHL (P. 114-117), Deutsche Telekom 

(P. 118/119), EDF/Philippe ERANIAN (P. 120), www. 

nicolastobias.dk/Grundfos (P. 122, 124), MTU (P. 126/127), 

Business Keeper (P. 130/131), Thales (P. 132), Simon Kraus/ 

Fotolia.com (P. 134/135), BASF (P. 136, 137, 139, 176), Ariel 

Skelley/Getty Images/BASF (P. 138), Angelika Stehle/Coca- 

Cola Deutschland (P. 140), HOCHTIEF (P. 142), MAN Truck 

& Bus (P. 145, 146 right, 147), EUROMEDIAHOUSE/MAN 

(P. 146 left), Dron/Fotolia.com (P. 150), Volkswagen (P. 151), 

Camposol (P. 152 left), a.bryce (P. 152 right), Copeinca (P. 153), 

Bella Roscher/WWF (P. 154), Jiang Zeyin20/WWF (P. 155), 

ITOCHU (P. 156), Nestlé (P. 159), Prosegur (P. 161), Sanofi 

(P. 162-165), John-Michael Maas/TÜV Rheinland (P. 167), 

Bradesco/Leandro Marcondes de Melo (P. 171), Royal 

Bank of Scotland (P. 172), Cornerstone/pixelio.de (P. 178), 

Lahoti/BoerseStuttgart (P. 180), Dr. Lothar Rieth/Christoph 

Dolderer (P. 181), Nicolette Behncke (P. 183), Raul Rodriguez 

Photography/Fotolia.com (P. 184), Prof. Dr. Timo Busch 

(P. 187), Henning Hraban Ramm/pixelio.de (P. 188), Vladimir 

Popovic/Fotolia.com (P. 191), and Marion Lenzen (P. 42, 

57 below, 108/109) 

Useful Addresses: 

Publishing House: 

macondo Media Group 

Dahlweg 87 

48153 Münster, Germany 

Tel.: +49 (0) 251 – 200 78 20 

Fax: +49 (0) 251 – 200 78 222 

Mail: info@macondo.de 

URL: www.macondo-group.com 

Tax ID number: DE214683825 

United Nations Global Compact Office: 

DC2-618 

New York, NY 10017, USA 

Tel.: +1 (212) 963 - 1490 

Fax: +1 (212) 963 - 1207 

Mail: globalcompact@un.org 

URL: www.unglobalcompact.org 

United Nations Publications: 

Department of Public Information 

300 East 42nd Street, IN-919 C 

New York, NY 10017 

Sales no. E.12.II.A.1 

ISBN-13: 978-3-9813540-3-4 

Price USD: $ 30.00 

Cover: 

UN Photo / Eskinder Debebe 

Sales price: 

USD 30,00 | EUR 25,00 | GBP 20,00 

Copyright © macondo Media Group 

ISBN-13: 978-3-9813540-5-8 

Printed in Germany © 2013 

Copyrights: 

All rights reserved. You may not modify, copy, reproduce, 

republish, upload, post, transmit or distribute in any way 

any material, including photos, without the express written 

consent of the macondo Media Group. 


The ten Principles 

of the United Nations 

Global Compact 

At the core of the Global 

Compact initiative are 10 

principles for human rights, 

labour standards, the 

environment and eliminating 

corruption. 

The Global Compact 

calls upon globally active 

companies to recognise these 

principles and to take steps to 

put them into effect. 

1 

2 

Human Rights 

Principle 1: Businesses 

should support and 

respect the protection of 

internationally proclaimed 

human rights; and 

Principle 2: make sure that 

they are not complicit 

in human rights abuses. 

7 

8 

Environment 


should support a 

precautionary approach to 

environmental challenges; 

Principle 8: undertake 

initiatives to promote 

greater environmental 

responsibility; and 

3 

4 



should uphold the freedom 

of association and the 

effective recognition of 

the right to collective 

bargaining; 

Principle 4: the elemination 

of all forms of forced 

and compulsory labour; 

9 

10 

Principle 9: encourage the 

development and diffusion 

of environmentally friendly 

technologies. 

Anti-corruption 


should work against 

corruption in all it forms, 

including extortion and 

bribery. 

5 

Principle 5: the effective 

abolition of 

child labour; and 

6 

Principle 6: the elemination 

of discrimination in 

respect of employment 

and occupation. 

194 


Previous Editions: 

This publication is intended strictly for learning purposes. The 

inclusion of company names and / or examples does not constitute an 

endorsement of the individual companies by the UN Global Compact.

“ 

A growing number of 

businesses in all regions recognize 

the importance of reflecting 

environmental, social and economic 

considerations in their operations 

and strategies. 

” 

Ban Ki-moon, UN Secretary-General 

USD 30 

ISBN 978-3-9813540-5-8 

Published by 

Global Logistics Partner 

In cooperation with United Nations Publications 

Printed in Germany, July 2013 – 10,000

Global Compact International Yearbook Ausgabe 2013

Create successful ePaper yourself

Delete template?

Save as template?