Presentation given on November 17 to Canadian Business for Responsibility Members in Webinar. Focusing on highlights of 2011 and what to consider in 2012 in the field of corporate responsibility.

1. Corporateresponsibility: 2011 reflections and 2012
predictions
Toby Webb, Founder/Chairman, Ethical
Corporation,CEO/Co-Founder, Stakeholder
Intelligence Ltd
17 November 2011. Canadian Business for Social
ResponsibilityWebinar

2. Background
• Founded Ethical Corporation 2001
• Directed/Chaired 80+ CR management conferences world-wide
• Published 8000 articles & 12 reports
• Interview 800+ executives per year: Reports, articles, conferences
• 3000 Corp customers globally, expert analysts around globe
• Lecturer, Corporate Responsibility, Birkbeck College (London)
• Co-chaired independent working group on CSR for UK Government
2006-8 for David Cameron
• Co-Founder of Stakeholder Intelligence: Bespoke company training,
intelligence & research. 30 experts round the world: China, SA,
Brazil, US etc

3. Sustainability 2011/12 issues
 Durban: Low expectations but a hope that Kyoto expiration
may provide some impetus for a deal before 2015-20
 Eurozone crisis: Current severe economic/political
troubles an important context considering EU’s traditional
role as global environmental standard-setter and proposed
shift to a low carbon economy. May hinge on German
election.
 UK Government step back: Policy confusion on business
and carbon. E.G. FiTs, green tariffs, green deal, CRC,
Renewable Heat Incentive, all faltered
 Business/Government steps forward: Davos 2011
provided CEOs with space to discuss SD and helps create
interface between government and business

4. Sustainability: Macro issues: 2011 events and 2012 significance
 7th billion person arriving on earth: UN shift from 9 to 10
billion max estimate
 Rio Earth Summit + 20: Unlikely major Govt action, but v
significant for business announcements and commitments
 China’s Five Year Plan: Shift towards res. Efficiency:
game changer?
 China’s middle class: People vs. Govt more than People
vs. Biz AND What can 400mn ‘soccer mom’ types mean?
 Fukushima: Nail in the coffin of nuclear as a transition
technology? Given German ‘political’ decision it’s a distinct
possibility.

5. Sustainability: Macro issues: 2011 events and 2012 significance
 What the Frack?Gasland and association publicity around
shale gas – good and bad – firmly on the CR agenda. Is it
climate realpolitik or stopgap solution? Companies may
need to take a position
 Occupy Wall Street: Not what it was, but what it
represented…sense that the current system of liberal
democracy and capitalism isn’t working, and the public
sympathy for that
 2012 question: Clearly change in context for business in
society. Could it lead to a change in definition of the social
contract, or a passing fad not even on the scale of anti-
globalisation protests of late 1990s?

6. Sustainability: Macro issues: 2011 events and 2012 significance
 Occupy debate given new fillip to discussions about
solutions: Notably the ‘Tobin tax’ idea which continues to
gather political support but appears no closer to reality
 India’s corruption debate: Lone campaigner, Anna
Hazare’s work and mobile licenses scandal = official
corruption on mainstream political agenda. Govt& business
now under much greater spotlight & pressure
 Closure of News of the World: Comeuppance for
Murdoch. Ongoing, ever-growing journalism and corporate
ethics scandal in UK, slowly spreading to North America
(shareholder action)

7. Business and sustainability/corporate responsibility/ethics
 Coca-Cola Enterprises Sustainability Plan, Sainsbury’s
20/20 plan: September 2011: Impressive milestones. May
help other large companies see beyond Unilever, Marks &
Spencer as ‘out on their own’
 High-tech brands and web businesses: Apple, Google,
Facebook, Amazon under scrutiny on both operations AND
consumer influence
 China’s reporting push: 600+ companies now reporting
in China. What will Five Year Plan implementation mean for
sustainability disclosure 2012 and beyond?
 Porter’s Shared Vale proposition: Despite obvious
bandwagon-jumping and latenessm, re-badging a version
of CR unrecognized in Europe as a proprietary concept

8. Business and sustainability
 Porter is a ‘name’ in business that counts. Despite lack of
focus on minimizing negative impacts ‘Shared Value’ gives
other celebrity academics confidence
 Reports indicate Shared Value apopular concept in US
as many uncomfortable with word ‘responsibility’ for legal
and cultural reasons
 Integrated reporting pilot: Despite commercial
conflicts/rush by accountancy companies to cash in, major
step forward in organizational change process – perhaps.
May give CR movement some ‘much needed’ momentum
 Final Ruggie report: Serious, solutions-oriented step
towards a framework for business and human rights.
Companies will need to respond positively and in a lot more
detail on the topic in 2012

9. Business and sustainability
 ISO 26,000& understanding: National body certification may
create both markets and confusion
 Globally-relevant human rights-related rules: Frank-Dodd
elements + California’s slave labour disclosure rules help continue
to create momentum for business and human rights debate in
2012
 Carbon Disclosure Project’s Carbon Action and Water
Disclosure initiatives: Will they signal a real change in responsible
investment? 2012 may tell us
 Barclay’s Bob Diamond admitting banks have serious reputation
problem alongside financial, but lack solutions or path
 BP’s problems: Ongoing fallout from Macondo, and their
admissions around business practices in Russia

10. Business case and sector improvements
 Bigger companies twice as likely to report as those with
revenues under $1 billion
 48% of Top 100 companies claim cost savings through CR
initiatives
 47% say increased revenues and/or their position in the
current market through CR measures
 Best performing sectors for CR reporting: Forestry, pulp
and paper (84%), mining (84% and automotive (78%)
 Greatest improvement since '08: Construction (65% in
2011 from 32% '08) and Pharmaceuticals (64% from 25%
in '08)

11. Issues coming up the agenda
 Water and Carbon high on reporting agenda: CDP to
report corporate survey results on water December 2011
 Ethical Corporation research shows large companies
pushing transparency and data requirements into Tier One
suppliers: Energy, Carbon, Water top areas of interest
 Microsoft (‘11) and Wal-Mart (‘09) notable cases. SEDEX
and the Fair Factories Clearinghouse seeing rise in data
flowing in from both suppliers and brands
 2011: World Resources Institute and World Business
Council on Sustainable Development released biz
standards to measure, report & manage carbon emissions
in supply chains and throughout product life cycles through
Greenhouse Gas Protocol

12. Issues coming up the agenda
 Integrated reporting on the rise. Some say it's investor
driven
 International Integrated Reporting Committee
framework for integrated reporting: Aims to unite standards
for financial reporting (IFRS and US GAAP) with SD
frameworks
 40 company pilot scheme for 12 months to apply draft
principles: Coca-Cola Co, Microsoft Corp, Volvo, Deloitte &
HSBC (IIRC Discussion Paper draft framework pub. 2011)
 Is there a danger that integrated reporting will water
down sustainability reporting?...
Sources: KPMG surveys, BNA Daily Environment Report, Ethical Corporation

13. Further reading and contact
 Tobywebb.blogspot.com
 www.slideshare.net/tobiaswebb
 www.ethicalcorp.com
 www.stakeholderintel.com (forthcoming)
 Toby.webb@stakeholderintel.com
 Toby.webb@ethicalcorp.com