Monday, October 24, 2016

GRI Standards - the fun starts now

A while back I published an overview of the GRI Sustainability Reporting Standards Exposure Draft. Well, now, the Standards are no longer in draft form. They are in real-live-downloadable-usable-bloggable format. Get your free copy here on the GRI website. Not an awful lot has changed since the Exposure Draft. The main thing is GRIs optimism that this makes GRI a more welcome player at the high-stakes tables where governments, regulators and policy-makers play. As a guideline-maker, GRIs legitimacy was apparently not grounded enough to have equal voice. As a standard-setter, GRI has come of age and has the vote. For corporations who  transition to GRI Standards, though, the changes probably represent:
  • an administrative headache - all the basic templates and formats developed for G4 will now have to change
  • a change of language yet again - we all just got used to Aspects with a capital A - now it's back to topics
  • a fear of greater scrutiny at some point in the future, possibly certification, that means a more robust approach to reporting will be required, rather than the sloppy use of G4 that we see by many reporters who declare use of the G4 but do not actually make the grade
  • a fear that a price-tag will soon be placed on use of the Standards - GRI has to fund the GSSB somehow, right? 
  • an opportunity to influence the Standards development - changes may now be quicker and easier with the modular Standard format, as only one piece needs to change or be added instead of the entire framework. The change from G3 to G3.1, for example, was confusing - the whole framework changed because a couple of new indicators were added. 
Billed with just a smattering of hype as the First Global Sustainability Reporting Standards Set to Transform Business, the Standards offer some advantages over G4, but it will take more than this to transform business. The move to Standards is not, and was not designed to be, an overhaul of G4 to deliver a new wow version. No bells and whistles. The move to Standards does not incorporate significant elements which will improve the quality or robustness of reporting, the comparability of reporting, the way companies define and prioritize material issues Aspects topics and how they determine what and what not to report, the use and credibility of assurance practices etc. While there has been some tidying up of the silly bits in G4, and some clarification of the ill-worded bits, nothing substantive beyond the wordsmithing and number sequencing has changed.

Look beyond the numbers
However, you cannot simply change the numbers and that's it. You have to check in with each Standard. For example, one of the disclosures that few reporters actually report fully: GRI 403, formerly Aspect Occupational Health and Safety, including former G4-LA4, G4-LA6, G4-LA7 and G4-LA8:

Disclosure 403-2 is the former G4-LA6.  See the difference in the wording:

The former relates to (1) total workforce and (2) independent contractors. The latter, 403-2, relates to (1) employees and (2) everybody else. This is much clearer in the new Standard but may require a change in the way some companies report. 

Beyond these incremental improvemental differences, GRI Standards come with one critical change and one new demand:

One critical change
G4's 46 Material Aspects have now been converted into 33 topic-specific Standards. That's two fewer than in the Exposure Draft. The material topics table would now look like this (except the new Standards do not include such a table):

That's a total of three universal standards and 33 topic-specific standards - one for each topic.

All the Standards are in BMW-style series with no subsets: 200 series for Economic, 300 series for Environment and 400 series for Social. All former Aspects relating to grievance mechanisms are moved to the Management Approach Standard, and are not identified as material topics in their own right.

For reporters, this means that if you retain the same material topics, you still might need to revise the indicators you report. For example, if Marketing Communications were a material topic, Core reporters would have selected one of two disclosures - G4-PR6 or G4-PR7. Now, the new Marketing and Labeling topic includes both Product and Service Labeling, which was associated with three indicators - G4-PR3, G4-PR4 and G4-PR5. The new Marketing and Labeling disclosure has been trimmed down to exclude some disclosures that are now General Disclosures, leaving three possible options in GRI Standard 417, only one of which was formerly Marketing Communications (417-3).

Therefore,  as a Core reporter, you now have three options where you had one previously, but as a Comprehensive reporter, you have three mandatory disclosures where previously you had five. This might sound a little confusing, and it is. But for most of the disclosures, all you need to do is switch the numbers. In some cases, companies might have to realign their material topics to the GRI Standards and revise the selection of topic-specific disclosures. 

Another point to make here is that the GRI Standards now make it quite explicit that it's just fine to use a different indicator than the ones included in the 33 topic-specific Standards. Standard 101-2.5.3 includes the possibility to report "other appropriate disclosures" if there is no appropriate GRI Standard.

For example, you are a Food and Beverage Manufacturer and have selected Community Investment and Philanthropy as a material topic. Interestingly, philanthropy has never been identified as possibly ever "material" by GRI - this is rather odd, as strategic philanthropy can be a critical part of a corporation's impact on society - and most companies just LOVE to report on this. 

Funnily enough, this is exactly one of the material topics selected by PepsiCo in its very recently published 2015 Performance with Purpose Report, which I was just reading. PepsiCo deals with this in an interesting way. Instead of including an indicator in the GRI Content Index, PepsiCo explains: "At this time there are no relevant GRI indicators that directly correspond with PepsiCo’s material aspect of Global Citizenship. PepsiCo monitors and reports on this aspect through the KPIs discussed in the Global Citizenship section." 

Now, with GRI Standards, PepsiCo can define its own disclosure of measurement of progress against this material topic, provided these disclosures are subject to the "same technical rigor" as the GRI Standards. In fact, this was also an option under G4, but it was a sort of secret option that no-one knew about unless they asked. Now it's more explicit, and enables companies to select more meaningful performance indicators to reflect progress being made in different areas. 

One of the most perplexing aspects of G4 always was the limited flexibility to reflect the diversity of material topics. If your material topic was, for example, Alcohol Related Harm, as it is in the Diageo 2015 GRI Report,  you wouldn't find a related Aspect among the GRI pre-paid lists. What to do? One catch-all option in G4 was to use G4-EC8 - "examples of the significant identified positive and negative indirect economic impacts" for anything that was not covered by another indicator. I have pretty much used G4-EC8 to death over the years. Another option is to use a combo  of existing Aspects. This is what Diageo does:

However, this is not entirely satisfactory, as none of the Performance Indicators that Diageo reports under any of these aspects relate to alcohol in society - they all relate to safety of products manufactured, quality control and labeling requirements. None of these indicators actually address the material issue. Therefore, the only real option for Diageo under these circumstances is to do what we discussed above  - disclose the Management Approach and use a proprietary non-GRI topic and indicator. As it happens, Diageo does have a perfectly fabulous disclosure on this: 

It's a clear strategy statement and targets. This can be used with  G4 to disclose against this material issue. With GRI Standards, the fact that this is now explicit (Standard 101-2.5.3) might make the use of the Standards easier and more relevant for many reporters who suffered from Aspect perplexy.

One new demand

In the GRI Standards,the GSSB has snuck in something else:

Standard 101 - 3.4. If you refer to the GRI Standards in any way in your report (and there are a set of prescribed statements in the Standards that define how to say you did the GRI thing), then you are obliged to notify GRI - either by sending GRI a copy of the report or by registering the report with GRI on the Standards page. Except that at present, there is no link or form to use to notify on that page. I wonder what GRI will do will all these thousands of notifications ... let's assume 8,000 reports reference the GRI Standards in any given year, that's 30 notifications every working day. And who will know if reporters do not notify GRI? I can understand that GRI wants to keep tabs on use of the Standards, but this is likely to happen only when GRI charge money for certification or use of the Standards logo... forgive me for being skeptical that this is on the cards at some point. 

18 months to get ready and steady
In the meantime, GRI Standards will be free and effective for sustainability reports published on or after 1 July 2018. So you have plenty of time to get your disclosures in order. Early adopters gain the advantage of being early adopters. That is, you get first rations of paracetamol. Overall, the language is clearer, the repetition is less and the direction is more logical. You can download all the Standards in one consolidated set at the GRI Standards download center. Whew, that's a relief. And only 443 pages as well.

I am sure that we will see many GRI Standards-based reports published in 2017, ahead of the 2018 cut-off date. The fun is about to start.....

Ahem.. needless to say, I will be very happy to offer the expertise and incredible service of me and my company, Beyond Business,  to help YOUR company transition to GRI Standards and become an early adopter. Paracetamol included free with this service. Contact elaine NOW before stocks run out.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Need help writing your first / next Sustainability Report? Contact elaine: 

Wednesday, October 19, 2016

First Report Trust Factor: Arby's

This is one for the First Report Trust Factor Series. It's all about sandwiches in the U.S. For an overview of the ten Trust Factors, see this post. 

Food and Beverage - U.S. - Not GRI- 44 pages

Arby’s is a nationally franchised sandwich restaurant brand, with more than 3,300 restaurants, founded in 1964. Headquartered in Atlanta, GA, Arby's has company-owned and franchise restaurants across the United States. Arby's employs 60,000+ people. 

The CEO Statement: 
Sometimes, in a first report, you just have to understand that any progress is progress and that companies have a right to be proud of any achievement. Arby's CEO confirms he is proud of what Arby's has achieved, one of the blurby statements I love to hate, but that's not what affects the Trust Factor most in this opener. What I am missing is a little depth. The CEO talks about employee giving, community projects and a water-saving irrigation program. These are good. But I'd like to have seen some reference to the impact of Arby's core business - how the business is changing peoples lives, not just through charity and eco-efficiency.  TF= 

Material focus: 
Arby's has identified four material (though not called material) areas of focus under a branded proprietary CSR program called PurposeFULL®. This includes: YouthFULL® - empowering youth,  SkillFULL® -  a winning culture, ResourceFULL® - good stewards of the environment and FlavorFULL® - adopting the highest standards in the food industry. This is evidence of thought about the approach to CSR at Arby's and these headlines frame the report. It's not quite a list of material impacts but it comes close.  TF+

Adherence to GRI: 
Nope. Not GRI. No indicators, no numbers, no Index. TF-

Transparency maturity: 
This report could be so much more impactful (and credible) if it contained some data. About the only place in this report where there are a few numbers is in the environmental section and these are mostly expressed in relative improvements rather than absolute performance data and impacts. In future reports, Arby's should find a way to disclose key performance metrics across the range of material topics in Arby's CSR program. TF-

Barely a hint of challenges or obstacles to overcome in this report. The only reference to any sort of challenge that I found was the fact that customers are confused about which elements of packaging to recycle at franchised outlets. TF-

Examples of practice: 
Arby's doesn't present "case studies" in a structured sense, but the report describes examples of activities in the reporting year. While there is evidence of a range of positive actions, the report lacks solid data that tells us these initiatives are making a difference. For  example, in 2015, Arby’s joined forces with Bellevue University in Nebraska to develop a custom learning program exclusively for Arby’s team members. Participants can earn a certificate of completion that is worth 36 college credits. But we are not told how many employees joined the program nor how they progressed. On the other hand, in another example relating to the environment, Arby's shares results of an irrigation project: "In 2015, through a six month pilot that spanned 85 restaurants, we saved 7.4 million gallons of water." TF+

Stakeholder voices: 
The report contains quotations from several senior Arby's execs and franchisees. The quotes add credibility, especially those from franchisees that give a flavor of how Arby's is helping them achieve economic growth and business development. The report also includes a perspective from the U.S. Department of Energy in relation to Arby's participation in its Better Buildings Challenge in 2015 - Arby's surpassed the BBC goal by improving energy performance 24% from a 2011 baseline. TF+

Contact person: 
No contact person and no generic email dump box. TF- 

Clarity of presentation:  
This is an easy read. Too easy. It's all narrative and photos, no numbers or charts or diagrams. TF= 

Design friendliness:  
It's a plain PDF, no hyperlinks, no fancy graphics. Well-laid out narrative and imagery. This images are real - not stock anonymous.  TF+

Trust Factor conclusion: 4xTF+   4xTF-  2xTF=
Overall, this report is a positive start and reflects a consciousness at Arby's of different aspects of contribution to society and communities. The basics are there: supporting employees, supporting communities, maintaining high standards of food preparation, stewarding the environment. The environmental section is a little more detailed and contains results of a range of eco-efficiency and resource improvement projects.

The word "proud" appears 12 times in this short report. For a first disclosure, there are some elements of this report that this company can be proud of - twelve times over. However, the  report disappoints in its lack of depth and lack of transparency.  Arby's is proud of its accomplishments and that's a good thing. On the other hand, such a large organization, employing more than 60,000 people, with an important impact on our relationship to food and on the food supply chain, we would hope that, in the future, this pride would translate into greater transparency with a focus on outcomes not actions. Otherwise, it looks like the main purpose of this PurposeFULL® report is PR-FULL®. If Arby's is serious about CSR, there needs to be another couple of FULLS: TransparentFULL® and AccountableFULL® in future reports. Perhaps even a little DataFULL®.

Arby's seems to have this in hand: "Throughout 2016 and into next year, we will develop a roadmap that will more robustly steer our PurposeFULL path forward including a strategy for each of our pillars, short and long-term goals as well as opportunities for deeper collaboration and impact."

This is a positive statement and hopeFULLy, we will see the fruits of these efforts reflected in the next report.  

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Need help writing your first / next Sustainability Report? Contact elaine:  

Sunday, September 18, 2016

Is philanthropy dead?

Apologies for that rather provocative title. Sort of. But it's a real question that I posed in one of the panels I chaired at the 7th  International Conference on Corporate Sustainability and Responsibility at Humboldt University in Berlin last week. It was a fabulous conference with some truly fascinating speakers from whom I learned a great deal. See Prof. Carol Adams's post with some of the key messages from the conference here.

You can also listen to all the Day 2 plenary sessions via the live-stream recording that can be found here  (if you have 9 hours or so to spare).

The session I'll share in this post is the panel I chaired on Innovative Philanthropy and Impact Investing, which starts at 5:25:19 (hrs:mins:secs) of the live-stream with an introduction by Professor Dr. Joachim Schwalbach, the formidable conference organizer and spirit behind the event. The experts who joined me on the panel were: 

Lisa Hehenberger  - Assistant Professor, Department of Strategy and General Management, ESADE Business School   
Kärim Chatti  - Market Director at ResponsAbility Investments
Johanna Mair - Hertie School of Governance in Berlin and Editor of the Standford Social Innovation Review
Thimo V. Schmitt-Lord  - Head of Foundations & Donations, Bayer Foundations 
Johannes Weber - Managing Director, Ananda Ventures - Social Venture Fund 

Lisa kicked off with an enlightening keynote, explaining the spectrum of philanthropy through to impact investing and the convergence towards a form of "blended social and financial value" creation. There are many hybrid ways of funding to create social value, Lisa explained. It doesn't need to follow the traditional separation of philanthropy for social value and investment for financial return. "It's possible for a foundation to be providing a grant in a more strategic way to a social enterprise that is generating revenues and it's also possible for an investor to start seeing some social and environmental returns with their investments."

Venture philanthropy is, then, very close to impact investing. Venture philanthropy is a long-term investment in an organization, providing both funding and also management support - often with an eye to measuring the impact of the organization and its activities. Impact investing is more or less the same thing, with the expectation of a financial return as well. Lisa highlighted the need for improved policy frameworks and greater transparency in impact measurement as the next stages in the evolution of this approach.

This being said, with the growth of impact investing and new types of corporations such as B Corps and Social Enterprises, the first question that I posed to the panel is: Is philanthropy dead? If both philanthropy and impact investing are designed to generate a social return, why does philanthropy still exist? What's the justification for philanthropy in this new context? 

The consensus view of the panel was that philanthropy is very necessary. In times of emergency, support is needed and there's no time to stop and calculate the social or financial return. You just need to help people. Also, in early stages of social enterprise development, seed funding is critical to support growth through to the stage where new enterprises are mature enough to be attractive to impact investors. At the same time, in early stages, enterprises do not have access to capital via loans as they have not yet developed their business infrastructure, and charities in most legal structures cannot take on debt in any case. Without philanthropy, these charities and social enterprises may not have the capacity to move out from first base. Thimo Schmitt-Lloyd actually prefers the term "non-profit investment", rather than philanthropy, as he feels that reflects the expectation of a form of return - not necessarily financial - which has meaning to the investor.

LISA: "You could almost see philanthropy as the research and development budget for social innovation. So if you don't have that, you don't get social innovation started. The impact investors would then have no deal flow and nothing to invest in." 

JOHANNA: "Philanthropy is absolutely not dead. Quite the opposite. There are two questions: Can the idea that you can invest and gain a social AND financial return be extended to all problems we have on the planet? No, of course it cannot. The second question is: What is new in philanthropy and how does that to social innovation? There is a lot of innovation in philanthropy - look at examples around the world in Germany or in Silicone Valley - entrepreneurs that turn into philanthropists - there is a competitiveness in terms of what kind of philanthropic endeavor you establish. Mark Zuckerberg, for example, doesn't use the 501(c)(3) (typical charity) vehicle. He uses an L3C  corporation structure as a vehicle for his philanthropic ventures. The drive to be innovative in this space is fueling new ways of philanthropic activity."  

THIMO: "If the risk profile of an investment is low, then the innovation potential is also low. The higher the risk, the higher the potential for failure. That's why you need very early investment in social innovation, because it provides the space to experiment, and sometimes fail, without the pressure of needing to generate a return."

So there you have it. Philanthropy is alive, kicking and innovating.. and setting the scene for responsible investment in its different forms. I then asked the next question on everybody's lips. Is impacting investing a compromise? Are investors compromising on the level of financial return they can achieve (versus mainstream investing) in order to achieve some form of social return?

KÄRIM: "In all discussions with investors and portfolio managers, return is key. We live in an environment where there are no interest rates ... so you have to look at your portfolio. Pension funds, family offices and corporate funds want returns. They want to see a nice return track record and return outlook. We deliver nice returns and nice risk profiles. On top of that we have an impact measurement system and we show all the social good that an investment supports, but that is on top. As soon as returns are tanking, large corporate investors pull out their money. In the Press Release, the CEO and the CSR Manager will emphasize the impact and the CSR benefits ... but in reality, decisions are made based on the risk-return profile. We invest in established businesses, possibly businesses planning an IPO or geographic expansion - this is different from the early stage investing that may need to be supported by philanthropy. Our investors know that."

JOHANNES: "In our social venture fund, it's different. Our funds work very well on a financial level but that's not why investors invest in us. They are not looking at the risk-return profile. Their focus is what sort of a difference their money will make."  

THIMO: Today, you also have to deliver a mission. Of course you have to deliver financially, but there must be a fit with the mission. Today, people ask, what's the impact? 

Our discussion also touched on different aspects of policy development, aligning employees and digitization in these areas of philanthropy and impact investment.

LISA: "One of the outcomes of the G8 Task Force was policy innovation. One example was in France - the Solidarity Savings Funds. If you are an employee in a French company, you can invest in a pension scheme where 90% is regular investment with a strict risk and return profile and 10% is invested in social enterprise. This has significantly increased investment levels in social enterprises in France, as it was designed to do."

KÄRIM: "We see huge differences across geographies in how pension funds are invested. I suggest you go back to your pension fund and ask how it invests your money. Some funds apply certain filters and positive or negative screening, but we also see more automatic alignment with responsible investment practice in certain countries such as Norway, Holland and Canada.. In some cases, employees are consulted about where the money should be invested."  

JOHANNES: "If you are a venture investor, you will probably be very interested in digital business models which may be highly innovative and are usually easier to scale. Of the businesses we invest in, around 40% have a digital aspect. Increasingly, IT-driven people want to work in this space. Digital natives are more interested in using their skills for social advancement even if they are not as well paid as they might be working on mainstream commercial initiatives." 

Some questions from the audience were rather incisive. For example, our panelists were asked: To what degree do impact investing and philanthropy divert attention and resources from driving real structural and social change? Is philanthropy about soothing our conscience and impact investing mainly about developing a new source of revenue? 

THIMO: "It depends how you define "return" for you as an investor. When return is progressing the ecosystems in which you operate so that you can operate better as a business, that's also a big return and not a diversion."

LISA: "Traditionally investors perhaps have this notion of two pockets. In one pocket is the money used generate to a financial return and in the other pocket is the money that's given away to make us feel good. That's changing. Now, both pockets are starting play a role in generating some form of return. There's a convergence at the individual level and also at the institutional level."

JOHANNA: "The old charitable model we all know has been replaced. It's not one single model of charity. It has become more strategic." 

And, to close, a couple of stories from Thimo that demonstrate the validity of different channels of investment through non-profit or venture philanthropy  showing that blended value that can be achieved through a strategic, holistic approach.

First, a story of two engineers who have developed a portable sterilizer for Africa that runs with solar energy and dirty water - and can therefore be used anywhere. It's cost is EUR 10,000 - modest enough, but still not affordable in most parts of Africa. As a rule, medical clinics in Africa do not have sterilization equipment and its a fact that, in Africa, 30% of deaths are due to unsafe medical practices. The Bayer Foundation is funding pilot devices to be provided free to social entrepreneurs who will take the sterilizers from clinic to clinic and sell not a machine, but the use of a sterilizer by the hour. In this way, a business model is formed that creates employment, upskilling for local distributors and a practical and affordable solution for clinics. Philanthropy funds the early stage and investment will kick in when the model us up and running.

Another example refers to early detection breast cancer tactile examinations. An entrepreneur found that using trained blind women as examiners (instead of physicians) can advance the detection of tumors by an average of nine months! This became relevant to the Bayer Foundation as law requires corporations in India to provide funding for CSR initiatives. Bayer discovered there are 60 million blind women in India while at the same time, breast cancer rates are among the highest in the world. Using "CSR" money to establish a training center for blind women to become examiners, Bayer starts with a philanthropic venture that can develop into an investment-worthy business as it scales, as women will pay a small fee for testing and the initiative will ultimately generate its own revenue.

The overriding conclusion, I think, it that philanthropy is not dead and we shouldn't attempt to kill it off. It serves a very important purpose in fueling early stage social development initiatives and also, in supporting communities when they need support with no strings attached. On the other hand, the emergence of different models, such as impact investing in its nascent forms and responsible investment in its larger scale frameworks provide additional blended value opportunities to get rich(er) and save the world all at the same time. Often, as in the Thimo's examples, this forms a sort of continuum starting with giving, moving into seed funding and developing into larger scale investing. 

So, when you are next reading the "community giving" sections of Sustainability Reports ... often seen as the "nice-to-have" rather than material elements of corporate impact ... you might have a slightly different perspective. 

Thanks to Joachim Schwalbach and all the expert speakers on this panel for a fascinating discussion.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Need help writing your first / next Sustainability Report? Contact elaine: 

Thursday, September 1, 2016

Connecting for #Citizenship at Caesars

The publication of Caesars Entertainment's seventh annual 2015-2016 Citizenship Report is a testimony to the value of connecting all year round, and not just during reporting season. Caesars Entertainment is one of the best companies I know that connects on several social media platforms across a range of topics with regularity, creativity and consistency. That's why, in this Citizenship Report, the theme of connecting is highlighted and illustrated with Tweets and hand-held Message Boards. 

Caesars Entertainment Corporation is the world’s most diversified casino-entertainment provider and the most geographically diverse U.S. casino-entertainment company. A regular feature of the report is the Footprint, updated each year, showing the size and scale of the company.

Connecting is something Caesars does well. Perhaps this is what you might expect of a hospitality company. However, it's not to be taken for granted. Connecting at many levels with stakeholders is a cornerstone of sustainability and citizenship practice, and becomes a regular feed of interactions, sharing, learning and supporting that builds familiarity and trust. And add a little fun into the mix. The new Citizenship Report reflects this, from the senior management team right through the organization. 

Jan Jones Blackhurst - Executive Vice President of Government Relations and Corporate Responsibility

Alex Dixon, Assistant General Manager, Horseshoe Baltimore

Brooks Robinson, Regional Senior Vice President & General Manager, Harrah’s Cherokee

Jessica Rosman, VP, Procurement
Tweets in the report are dispersed throughout, supporting the narrative. This of course was only possible because Caesars maintains strong Twitter streams throughout the year from a variety of Twitter handles. The main one is the Citizenship stream (@CitizenCaesars). Then there is  Caesars diversity and supplier-diversity stream (@CZRDiversity) and Caesars charitable Foundation (@CaesarsFdn) and the corporate stream that includes many citizenship-related updates (@CaesarsEnt) and the Caesars "We Mean Business" Responsible Meetings stream (@CaesarsMeetings). And that's just to start with. Most of the 50+ properties at Caesars have their own Twitter streams where they amplify many of the citizenship messages to followers. There are few companies around that maintain such a pace on social media. It's a testimony to Caesars' respect for its stakeholders and openness to engage. 

For example, on a page where Caesars talks about advancing diverse suppliers, two Tweets are integrated into the story.

On a page where Caesars talks about creating memorable experiences for guests, with the new Jennifer Lopez sell-out residency, Tweets illustrate guests' excitement with the show of shows.

For every story in the report, and there are lots of stories, there's a Tweet, or several Tweets. As a channel of communication and engagement, Caesars gets the message real-time to where its followers are and listens to what they say back. It's modern, it's fun, it's transparent, it's citizenship. Of course, the publication of the report had to be followed up with a Twitter Chat. You can read the summary of the chat, hosted by Triple Pundit, here

But Caesars' report is more than Tweets and Message Boards. It's 110 pages of GRI G4 compliant reporting of advances in citizenship performance during the past year. It's also a first alignment with 8 of the 17 the Sustainable Development Goals, integrated with Caesars citizenship and sustainability strategy.

Overall, Caesars makes a strong contribution to economic development, with $9 billion in economic value created for stakeholders in 2015, bringing the total close to $40 billion in the past five years. Relatively speaking, Caesars contributes to communities more than three times the equivalent average value contributed by U.S. corporations.

This is not just about money. It's about the many different ways of being part of local communities, engaging and collaborating to support economic development and improvement in the quality of life. For example, 55% of Caesars employees are involved and invested in voluntary community activities in some way. Caesars' leadership in the development of responsible meetings defines specific sustainability standards for the thousands of meetings, conventions and conferences that Caesars hosts at its properties each year. The standards that Caesars requires of its suppliers through its Responsible Suppler Statement and the advancement of supplier diversity, engaging with diverse supplier communities and offering mentoring programs, are part of the social and economic value that Caesars creates. Also, Caesars takes a public stand against social inequalities and in favor of human rights, for example, as a founding partner of the Businesses Ending Slavery and Trafficking (BEST) Employers Alliance formed in September 2015. BEST is the first public-private partnership in the U.S. to work across industries to prevent sex trafficking and sex buying. 

Caesars reports strong progress (again) in environmental efficiencies through Caesars' CodeGreen strategy, both in 2015 and since the start of the initiative in 2007.

And guess what, as they get older, Caesars employees are getting healthier. With an award-winning Employee Wellness Program that demonstrates incredible levels of participation and outcomes, employees can enjoy a healthier and happier... and hopefully longer life.

It would be remiss of me not to mention Responsible Gaming when talking about Caesars. But there's no news here. Caesars was the industry leader in Responsible Gaming programs as the first commercial company to address the issue of problem gambling in 1989, and Caesars remains the industry leader today.  Caesars continues to invest in training, communications and providing practical tools, such as self-exclusion, to ensure that people who come to gamble do so because they want to have fun. With 796 trained Responsible Gaming Ambassadors throughout properties in the U.S, and tens of thousands of employees trained each year, this for Caesars is par for the course. No news, but good news.

Caesars 2015-2016 Citizenship Report covers all of this, and more, in a clearly structured GRI G4 (core) report that is supported by a year of Tweets from multiple Twitter streams. This makes the report fun to read (maybe one of YOUR Tweets got into the report?) and also validates the content by demonstrating that citizenship, at Caesars, is day-by-day and not report-by-report.

As always, take a look. Give feedback!

Disclosure: You probably guessed that I worked on this report (as well as on Caesars prior three reports).  It's always a pleasure and honor to work with Caesars. Maybe one day, I might even get to meet Jennifer Lopez. If I do, I'll Tweet about it.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Need help writing your first / next Sustainability Report? Contact elaine: 

Tuesday, August 30, 2016

10 ways to have CSR fun in Berlin in September

Planning go to Berlin on 14-16 September 2016? Could possibly get there on 14-16 September 2016? There anyway? Let me help you decide how to have some fun on those days.

1. Go to one of the best Ice Cream Shops in Berlin and try out at least 5 flavors.

2. Attend the opening session of the 7th International Conference on Corporate Sustainability and Responsibility at Humboldt University. The conference theme is "CSR in an age of digitization".

At 08:45 precisely on Wednesday 14th September, Joachim Schwalbach will take the stage to open  up three days of spectacular debate, as he has done for the International CSR Conference Series since its inception in 2004. Joachim is Professor emeritus of International Management at Berlin's Humboldt University, and a prominent expert in CSR and related topics with a distinguished academic career to date. 

I asked Joachim about his hopes for the upcoming conference.
Joachim Shwalbach: "Based on the take-out of the conference in 2014, my hope is that we find ways for technological innovations to empower individuals and organizations to contribute to society's well-being. The last conference concentrated on the connection between innovation and sustainability. There were many insights resulting from that conference, but I will mention only three: First, given the challenge to global sustainability, incremental improvements are not enough. Instead, sustainability driven innovations increase the likelihood to improve value creation by companies and in society. Second, the conference brought two camps, innovation and sustainability, together. These disciplines do not normally pay attention to each other in companies as well as in academia. Third, digitization may help to speed up the process so that innovation and sustainability will be present in all elements of the value chain in companies. The 2016 conference will be a natural extension of our thinking in 2014."  

Well, there you are, and we are only at number two thing to do. If you are not convinced, read on for 8 more fun things to do. 

3. Attend the first plenary at 0900 on Wednesday 14th September at the 7th International Conference on Corporate Sustainability and Responsibility at Humboldt University. Join Timotheus Höttges, CEO of Deutsche Telekom, Georg Kell, Vice Chairman of Arabesque Partners, an asset management firm for sustainable investing and the founding Executive Director of the United Nations Global Compact until recently and David Kiron, executive editor of MIT Sloan Management Review's Big Ideas initiatives. They'll present their thoughts on CSR and Digitization. Surely that's fun enough to convince you to participate in this session. But if not, read on..

4. Come and have a drink with me at the Hotel de Rome. At the heart of everything that happens in Berlin, the Hotel de Rome is a great startpoint for your Berlin sightseeing. Unfortunately, I won't be doing much of that.. see points 5., 7., and 8.

5. Join me for a plenary panel that I will chair  with a formidable group of experts at 14:00 on Wednesday 14th September on the subject of Digital Accountability. How is the digital world affecting communications with stakeholders? What is digitization doing to reporting and do we like it? Come and ask the tough questions!

6. Enjoy fresh the Berlin air in the Campus Mitte around Humboldt University's main building, at the boulevard "Unter den Linden", between Brandenburg Gate and the Dome of Berlin. While you are there, pop in to one of the rich, informative and educational sessions at the 7th International Conference on Corporate Sustainability and Responsibility.

7. Join me for another plenary panel that I will chair with another formidable group of experts at 09:00 on Thursday 15th September on the subject of Innovations in Sustainable Development with a focus on Human Rights. What are the practical steps being taken by companies to protect human rights? What outcomes can be identified? What innovations are we seeing? What are the minimum disclosure standards we should expect from corporations relating to human rights? How are we seeing the evolution of such disclosures today? What are the gaps? More on this .. but only if you show up. It's ok - you can bring ice cream.

8. Join me for yet another plenary panel that I will chair with yet another formidable group of experts at 14:00 on Thursday 15th September on the subject of Innovative Philanthropy and Impact Investing. What are the similarities and differences, and how can you tell? What contributes most to sustainable development? What's driving what? Don't worry, there won't be a call for financial contributions.

9. Join me for a massage at the Spa in the Hotel de Rome. After chairing all these plenary panels, even ice cream may not be enough to keep me cool and collected. The spa is located in what was once a vault for gold and jewellery. (The Hotel was built to house the headquarters of the Dresdner Bank in 1887). Maybe they didn't clean it out properly and we might find a few diamond tiaras and a ruby or two.

10. Go to one of the best Ice Cream Shops in Berlin and try out all the flavors you didn't already try. Joachim Schwalbach's favorite flavor is Cookies and Cream, so don't gorge yourself on that, so there is some left for him.

I could have continued with at least another 45 fun things to do in Berlin on 14-16 September (most of them associated with the CSR Conference). However, these are the Top Ten. If you allocate your time well, and screen your calls, you can probably manage to do all of them. Wow, that's a whole lot of fun in Berlin in three days. See you there?

I'll leave you with another thought from Joachim Schwalbach: "CSR or sustainability departments in companies have reached a cross-roads: Either they improve their competence as a valuable partner for the companies' top management to show that CSR aspects are key success factors, or they do business as usual and remain in their niche, not recognized as one of the most important drivers of business success." Yes, that's something else we'll be talking about in Berlin. Now you HAVE to come.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting AND Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen) or via my business website (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm). Need help writing your first / next Sustainability Report? Contact elaine:

Monday, August 29, 2016

First Reports -Ten Trust Factors

It's almost Q4 and you know what that means. It's almost the start of the reporting season.


In the final quarter of the year, many companies are starting to plan their next report, or even their first report. There is a certain seasonality to reporting, by and large: Q4 planning, Q1 preparing, Q2 publishing, Q3 recovering. Of course, not every company is on that cycle.. but about now is usually the calm before the storm.

As we anticipate the next reporting season, we can expect a flurry of fabulous new first-time Sustainability Reports that will be published in 2017. It's not that I am especially optimistic about the impact of the EU Directive that will require 6,000 companies who do not currently report to start thinking about what they will write in their Sustainability Reports for 2017. Each year brings a flurry of new reports, with or without the Directive. And that means that each year, more companies have thought just a little more about the impact they have on our lives and are taking the first steps to be held to account.

Let's face it. Reporting is a little bit of a risky business. Take for instance, Dollar Tree Inc., a Fortune 500 American chain of discount variety stores that sells items for $1 or less in 13,600 stores around the country. Dollar Tree just published its 2016 Sustainability Report . Full marks for effort but this 14-pager 7-minute read is a list of environmental and social practices with barely any meaningful performance data. Not surprising then, perhaps, that there has been some backlash.

In a press release published in PR Newswire,  angry activists representing the Campaign for Healthier Solutions  berate the company for not addressing their concerns relating to chemical toxicity in the company's products after laboratory testing has found "potentially dangerous levels of lead, phthalates, and other toxic chemicals" in Dollar Tree's products. Comparing the current report to prior reports, these stakeholders find that there is almost no difference. So, although the folks at Dollar Tree have taken some steps along the transparency journey, they still have to find the path of accountability. Reporting is risky. Arguably, the fact that Dollar Tree has made efforts to publish a Sustainability Report has added fuel to the frustration of stakeholders. But, in fact, the Campaign for Healthier Solutions is doing Dollar Tree a favor. It's creating pressure that will ultimately lead to a safer planet, a safer society and a stronger business. If Dollar Tree embraces its critics, and takes responsible action, next year's headline may well be: "Dollar Tree's Sustainability Report reflects significant progress."  Reporting, whatever your motivation, even if it's just to tick a box, sooner or later becomes part of a greater whole relating to a company's role in society. Sooner or later, Dollar Tree will change. And it will benefit from that change.

So, even with some risk, reporting adds value and first-time reports hold a special significance for reporters, report users and me. I love first-timers. There is something about the special efforts necessary to deliver a first-time report and starting to flex those transparency muscles. I believe this starts to transform the internal conversation in any company, and eventually transforms the external dialogue too (as it has done at Dollar Tree Inc.). So many first-time decisions challenge any company that's reporting for the first time that it's a bit like navigating a minefield. And almost as risky.

As you all know by now, I generally tend to be a little critical when looking at reports so here's my upfront disclaimer. Every first report is a commendable venture into accountability and transparency and the start of what is hopefully a meaningful reporting journey for any company and its stakeholders. As a reporting consultant for hundreds of years now working with many companies, I can testify to the fact that no report is easy and every first report double-proves it. Before we go any further, I say: CONGRATS to ALL first-time reporters ever - you all deserve a triple scoop. Good luck to all those first-timers planning to break through the transparency barrier in 2017. (Remember, help is at hand - you don't need to go it alone :-)).

In looking at any report, including first-timers, it's important to consider that the overarching purpose of any Sustainability Report is to build trust. If it doesn't do that, heck, you're wasting your time. I've been taking a look at first-timers - it's always fun - to see how this is working. There are probably a thousand ways in which reports build trust, but, in order to help me apply a consistent approach when looking at first-timers from around the world, I  selected ten basic aspects of a first-time Sustainability Report that, for me, help build trust. These aspects do not carry equal weighting and they are far from scientific. These elements contribute to building any report's TF (Trust Factor) in my personal and subjective view. In sharing my thoughts, as always, my goal is to encourage reporting, in the hope that first timers will become second and third timers. My intention is not to be overly critical, but in some cases, forgive me if I can't help myself!

Here are the ten TF (Trust Factor) elements I  consider in my series of first-timer report reviews:
  • The CEO Statement: Must be meaningful, relevant and authentic, not just some generic any-company rhetoric about "how proud we are of what we have achieved but there is more to be done". 
  • Material focus: Must state the most important sustainability impacts and provide relevant disclosures. Oh, and that doesn't mean a list of material topics somewhere at the beginning of  the report, and no further reference to materiality. It means using materiality to frame the content of the report.
  • Adherence to GRI: Yes, a GRI compliant report gains a point in my book. While there are many fantastic and genuinely impressive non-GRI reports, using GRI implies for me a predisposition to align with the most widely-used global reporting framework that relies on general stakeholder expectations of rigor in reporting content and quality. 
  • Transparency maturity: This means  providing a critical mass of relevant sustainability performance data, not just declarations of approach and positions. No numbers, no good.
  • Challenges: No company has no challenges. Authentic reports discuss challenges. 
  • Examples of practice: Yes, I believe case studies build trust. They also help make the report more interesting and reduce yawn-time. 
  • Stakeholder voices: I think reports that contain direct opinions from stakeholders tend to show that the reporting company has good relationships, a collaborative culture and appreciates stakeholder involvement. Including stakeholder voices - and faces - bring a report to life. 
  • Contact person: I like reports that provide a person to contact, not an anonymous email dump-box. If you are proud of your report, put your name on it.
  • Clarity of presentation: We have to be able to understand data and charts quickly and read the narrative with ease. Too much technobabble drives me crazy. If I have to pore over a chart for more than 35 seconds to understand what it's telling me, it's a bad chart, no matter how creative the designers have been. 
  • Design and format friendliness: While design is not necessarily a trust-builder, good, clean, compatible design makes reading easier and shows the reporting company considers not only how to get the message across but how to get it through. Easy navigability is a plus. (I don't read eBook reports, so first-timer non-downloadable eBooks don't get my time.)  I don't like online-only which ties me to the speed and reliability of my internet connection wherever I am in order to navigate. I love PDFs. When I download a PDF, I can read it quickly wherever and whenever I want, search, highlight and make notes. Online formats undoubtedly offer interactivity advantages, but for me, they slow me down.
In upcoming posts over the next few weeks, in the run-up to Q4, I will review first reports that were published over the past couple of years against my TF (Trust Factor) framework. Watch out for posts with a First -Time Trust Factor title.

Let me know if you have recently published a first report.
Or even better - let me know if you'd like some help in preparing your first report. I would totally love that.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Need help writing your first / next Sustainability Report? Contact elaine:  
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