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Conference	
  “CSR:	
  s.ll	
  a	
  challenge	
  for	
  HR?”	
  
22	
  October	
  2013	
  in	
  Brussels	
  

Stefan	
  Crets,	
  Execu.ve	
  Director,	
  CSR	
  Europe	
  
1	
  
What	
  is	
  CSR?	
  
	
  “The	
  responsibility	
  of	
  enterprises	
  for	
  their	
  impacts	
  on	
  society”	
  
IT	
  IS	
  ABOUT	
  MANAGEMENT	
  PROCESSES	
  
	
  
Respect	
  for	
  applicable	
  legisla.on,	
  and	
  for	
  collec8ve	
  agreements	
  
between	
  social	
  partners,	
  is	
  a	
  prerequisite	
  
	
  
•  CSR	
  =	
  a	
  process	
  for	
  companies	
  to	
  integrate	
  social,	
  environmental,	
  
ethical	
  and	
  human	
  rights	
  concerns	
  into	
  their	
  opera8ons	
  and	
  core	
  
strategy,	
  	
  in	
  close	
  collabora.on	
  with	
  their	
  stakeholders	
  
	
  
•  Maximising	
  the	
  crea8on	
  of	
  shared	
  value	
  through	
  a	
  long-­‐term	
  strategic	
  
approach	
  to	
  CSR,	
  the	
  development	
  of	
  innova8ve	
  products,	
  services	
  
and	
  business	
  models…	
  
	
  

FOCUS	
  ON	
  MID	
  AND	
  LONG	
  TERM	
  SUSTAINABLE	
  GROWTH	
  
Corporate	
  strategies	
  for	
  building	
  shareholder	
  
and	
  societal	
  value-­‐added	
  	
  
Role	
  of	
  CSR	
  with	
  regards	
  to	
  	
  
HR	
  stakeholder	
  requirements	
  
Improve	
  
HR	
  admin	
  
services	
  

HR	
  stakeholder	
  
requirements	
  

Provide	
  
worklife	
  
balance	
  
programs	
  

Clarify	
  and	
  
leverage	
  
social	
  
mission	
  

Develop	
  
Green	
  
Teams	
  

Provide	
  
dental	
  
insurance	
  

Strategic	
  
business	
  
partnership	
  

Gender	
  
equality	
  
prog	
  

Win	
  the	
  
talent	
  war	
  

Increase	
  
employee	
  
engagement	
  

Reduce	
  HR	
  
costs	
  
Improve	
  
internal	
  
comms	
  

Employee	
  
sa.sfac.on	
  
survey	
  

Low	
  carbon	
  
skills	
  
recruitment	
  

Embed	
  human	
  
rights	
  policy	
  

Assess	
  HR	
  
Employee	
   Sustainability	
  
Volunteering	
  
risks	
  
Program	
  

HR	
  func.onal	
  success	
  and	
  contribu.on	
  to	
  a	
  sustainable	
  business	
  
Source:	
  CSR	
  for	
  HR:	
  
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Enterprise	
  2020:	
  	
  
It	
  is	
  about	
  business	
  not	
  mere	
  compliance	
  

	
  
	
  

Social	
  innova*on	
  	
  
=	
  new	
  ideas,	
  business	
  models,	
  products	
  &	
  services	
  that	
  resolve	
  exis*ng	
  sustainability	
  challenges	
  

5	
  
Enterprise	
  2020	
  Ini.a.ve	
  
The	
  way	
  ahead	
  
2013-­‐2015	
  
	
  
	
  

Sustainable	
  
Living	
  in	
  
Ci.es	
  

Skills	
  for	
  Jobs	
  
Nine	
  campaign	
  projects	
  
Areas	
  

Project	
  

Leaders/Partners	
  

Rethinking	
  Careers	
  
Workplace	
  	
  
Innova.on	
  

Health	
  and	
  Wellbeing	
  
Supplier	
  Diversity	
  (‘14)	
  
Changing	
  Lives	
  

Entrepre-­‐
neurship	
  

Intrapreneurship	
  
Programme	
  
Entrepreneurship	
  Boost	
  
Deploy	
  Your	
  Talents	
  
(STEM)	
  

Skills	
  for	
  
Employability	
   Quality	
  Internships	
  &	
  

Appren.ceships	
  

Inclusion	
  	
  

Fostering	
  Inclusion	
  

	
  	
  
Rethinking	
  careers:	
  integra.ng	
  longer	
  working	
  
lives	
  into	
  all	
  HR	
  opera.ons	
  
CSR	
  Europe’s	
  project	
  on	
  Rethinking	
  Careers	
  	
  
	
  

Purpose	
  

Deliverables	
  

Iden8fied	
  Issue/Gap	
  
•  New	
  legisla8ons	
  for	
  prolonged	
  re8rement	
  age	
  
•  Beyond	
  focusing	
  on	
  senior	
  wokers,	
  companies	
  
need	
  to	
  take	
  a	
  holis8c	
  approach	
  à	
  rethink	
  
careers	
  
	
  
Proposed	
  solu8on	
  
•  Understand	
  the	
  levers	
  and	
  obstacles	
  of	
  lifelong	
  
HR	
  Management	
  
•  Share	
  knowledge	
  	
  
•  Support	
  in	
  shaping	
  the	
  necessary	
  policy	
  
framework	
  

•  Assessment	
  of	
  lifelong	
  
employability	
  
à  Assessment	
  Report	
  +	
  
Benchmark	
  
	
  
•  Knowledge	
  sharing	
  	
  
à  Publica8on,	
  incl.	
  lessons	
  
learned	
  +	
  best	
  prac8ces	
  
	
  
•  Policy	
  dialogue	
  	
  
à	
  Policy	
  recommenda8ons	
  

•  Rethinking	
  careers	
  publica.on	
  
•  Lifelong	
   Employability	
   Assessment	
  
(LEA-­‐Tool):	
   	
  CSR	
  Europe	
  is	
  offering	
  a	
  
Rethinking	
   Careers	
   Assessment	
   to	
  
measure	
   a	
   company’s	
   ability	
   to	
  
i n t e g r a t e	
   a g e -­‐ m a n a g e m e n t	
  
processes	
   into	
   HR	
   opera8ons	
   across	
  
life-­‐stages	
  
•  12-­‐13	
   November	
   2013	
   in	
   Brussels:	
  
European	
  Employment	
  Forum	
  

For	
  more	
  informa+on	
  on	
  
the	
  publica+on	
  and	
  how	
  
to	
  par+cipate	
  in	
  the	
  
assessment,	
  please	
  
contact	
  Sarah	
  Dekkiche	
  
(sd@csreurope.org)	
  	
  
	
  
The	
  Business	
  case	
  of	
  Health	
  Literacy	
  
Health	
  literacy	
  ac8vi8es	
  in	
  the	
  business	
  context	
  create	
  
value	
  not	
  only	
  for	
  employees,	
  but	
  also	
  for	
  businesses	
  
Improved	
  
brand	
  
Reduced	
  
sickness	
  

Fewer	
  
accidents	
  

Improved	
  
reten.on	
  

Business	
  
benefits	
  of	
  
a	
  healthy	
  
workforce	
  

Higher	
  
produc.vity	
  

Higher	
  
commitment	
  

Improved	
  
resilience	
  
• To	
  evaluate	
  the	
  22	
  process	
  requirements	
  on	
  their	
  level	
  of	
  maturity	
  and	
  assign	
  a	
  score	
  to	
  
company’s	
  practice	
  
• Draw	
   Individual	
   benchmark	
   graphics	
   to	
   provide	
   company	
   with	
   their	
   position	
   against	
  
and	
  allows	
  to	
  identify	
  gaps	
  
• Compile	
  a	
  set	
  of	
  good	
  practices	
  for	
  each	
  of	
  the	
  effectiveness	
  criteria.	
  

each	
  
peers	
  

Business	
  and	
  Human	
  Rights	
  
What	
  is	
  available	
  for	
  companies	
  now:	
  	
  	
  

• 22	
  indicators	
  to	
  support	
  HuRis	
  practitioners	
  in	
  decision	
  making	
  process	
  à	
  the	
  8	
  effective	
  criteria	
  were	
  broken	
  down	
  to	
  
identify	
  key	
  elements	
  of	
  a	
  grievance	
  mechanism	
  operating	
  principles	
  	
  

Two	
  work	
  streams	
  

• Matrix:	
  ”beginners	
  “–	
  “advanced”	
  –	
  “effective”	
  maturity	
  level	
  à	
  3	
  levels	
  of	
  maturity	
  of	
  grievance	
  mechanism	
  were	
  
identified;	
  explanation	
  of	
  each	
  of	
  them	
  and	
  practical	
  examples	
  are	
  available	
  (Please	
  note	
  that	
  the	
  “effective”	
  level	
  is	
  limited	
  to	
  
the	
  group	
  of	
  companies	
  we	
  have	
  been	
  interviewed)	
  

(2)	
  Management	
  of	
  Complaints	
  	
  

	
  
	
  

Matrix	
  -­‐	
  Assessment	
  sheet	
  with	
  practical	
  
examples	
  for	
  each	
  of	
  the	
  levels	
  of	
  maturity	
  
	
  

Why	
  par.cipate:	
  
•  Assess	
  the	
  effec8veness	
  of	
  current	
  company	
  
processes	
  for	
  addressing	
  complaints	
  from	
  
employees	
  and/or	
  communi8es.	
  
•  Learn	
  from	
  a	
  set	
  of	
  best	
  prac8ces	
  and	
  tools	
  

Score	
  on	
  the	
  8	
  UN	
  criteria	
  

Total	
  score	
  benchmark	
  
against	
  other	
  companies	
  

Available	
  tools	
  
•  MOC-­‐A:	
  Management	
  of	
  Complaints	
  
Assessment	
  tool	
  	
  
•  Publica8on	
  on	
  company	
  mechanisms	
  for	
  
Addressing	
  Human	
  Rights	
  Complaints	
  

	
  
Individual	
  benchmark	
  graphics	
  provide	
  company	
  with	
  
their	
  position	
  against	
  peers	
  and	
  allows	
  to	
  identify	
  gaps	
  
	
  

	
  
	
  

	
  
	
  	
  8	
  Criteria	
  
benchmark	
  

21	
  processes	
  
requirements	
  

Gaps	
  in	
  specific	
  processes	
  
requirements	
  

	
  

more	
  informa8on	
  

	
  

	
  

within	
  one	
  network	
  on	
  business	
  and	
  human	
  rights	
  
11	
  
Business	
  and	
  Human	
  Rights	
  
Two	
  work	
  streams	
  
(1)	
  Embedding	
  Human	
  Rights	
  
Why	
  par.cipate:	
  
•  Understand	
  the	
  relevance	
  of	
  
human	
  rights	
  across	
  departments	
  
–	
  HR,	
  procurement	
  and	
  legal/	
  risk	
  
management	
  
•  Translate	
  human	
  rights	
  into	
  
func8on-­‐specific	
  processes	
  
Upcoming	
  tools:	
  
•  Department-­‐specific	
  tools	
  e.g.	
  
training,	
  guidance	
  materials	
  	
  

Link	
  to	
  Human	
  Rights	
  

Day-­‐to-­‐Day	
  Ac.vi.es	
  

• Human	
  rights	
  risks	
  throughout	
  
the	
  supply	
  chain	
  (eg.	
  child/
forced	
  labor,	
  working	
  hours,	
  
freedom	
  of	
  associa8on,	
  
con8ngent	
  labor)	
  	
  
• Linkage	
  situa8ons:	
  human	
  
rights	
  risks	
  further	
  down	
  the	
  
supply	
  chain	
  (eg.	
  conflict	
  
minerals)	
  

• Outsourcing	
  of	
  produc8on	
  to	
  low	
  
cost	
  countries	
  	
  
• Sourcing	
  of	
  raw	
  materials,	
  
agricultural	
  products,	
  chemicals,	
  	
  
• Procurement	
  decisions	
  (eg.	
  lead	
  
8mes,	
  contract	
  terms,	
  margins)	
  
• Monitoring	
  and	
  improvements	
  

Risks	
  
• Sole	
  focus	
  on	
  labor	
  rights	
  
• Biggest	
  suppliers	
  vs.	
  highest	
  risks	
  
• Parallel	
  vs.	
  integrated	
  processes	
  
• Sole	
  approach	
  is	
  compliance	
  
and/or	
  cut	
  and	
  run	
  

Opportuni.es	
  
• Respect	
  for	
  human	
  rights	
  
correlates	
  with	
  high	
  
performance	
  in	
  other	
  areas	
  
• Risk-­‐based	
  approach	
  
• Working	
  with	
  others	
  (eg.	
  
Bangladesh	
  Accord)	
  

within	
  one	
  network	
  on	
  business	
  and	
  human	
  rights	
  
12	
  
EU	
  legisla.ve	
  proposal	
  on	
  Non-­‐financial	
  Informa.on	
  
Scope	
  and	
  
Requirements	
  I	
  	
  
•  COMPANIES	
  CONCERNED	
  
•  Large	
  companies:	
  
•  	
  Average	
  number	
  of	
  
• 
• 

• 

employees	
  exceeds	
  500	
  
AND	
  
	
  The	
  balance	
  sheet	
  total	
  
exceeds	
  €20million	
  OR	
  the	
  
net	
  turnover	
  exceeds	
  
€40million	
  

These	
  companies	
  must	
  
include	
  in	
  their	
  annual	
  report	
  
OR	
  in	
  the	
  review	
  within	
  a	
  
consolidated	
  annual	
  report,	
  a	
  
non-­‐financial	
  statement	
  	
  	
  →	
  

CONTENTS	
  of	
  non-­‐financial	
  statement	
  
Informa8on	
  must	
  
relate	
  to	
  the	
  
company’s	
  
policies,	
  results	
  
and	
  risk-­‐related	
  
aspects	
  on	
  at	
  
least...	
  

May	
  rely	
  on	
  
Include	
  statutory	
  
na.onal,	
  EU-­‐based	
   audits...	
  
or	
  interna.onal	
  
frameworks,	
  such	
  
as	
  

• 	
  Environmental	
  
aspects;	
  
• 	
  Social	
  &	
  
employee-­‐related	
  
maders;	
  
• 	
  Respect	
  of	
  
human	
  rights;	
  
• 	
  An8-­‐corrup8on	
  
and	
  bribery	
  
aspects	
  

• 	
  UNGC	
  
• 	
  ISO	
  26000	
  
• 	
  ILO	
  Declara+on	
  
• 	
  GRI	
  
• EMAS	
  
• German	
  
Sustainability	
  Code	
  
(DNK)	
  
• .....	
  

Should	
  contain	
  an	
  
opinion	
  concerning	
  
the	
  consistency	
  or	
  
otherwise	
  of	
  the	
  
annual	
  report,	
  
including	
  non-­‐
financial	
  informa8on,	
  
with	
  the	
  annual	
  
accounts	
  for	
  the	
  same	
  
financial	
  year	
  

COMPLY	
  or	
  EXPLAIN	
  
Where	
  a	
  company	
  does	
  not	
  apply	
  policies	
  in	
  one	
  or	
  more	
  	
  
of	
  these	
  areas,	
  the	
  company	
  shall	
  provide	
  a	
  reasoned	
  explana8on	
  
for	
  not	
  doing	
  so.	
  
EU	
  legisla.ve	
  proposal	
  on	
  Non-­‐financial	
  Informa.on	
  
Scope	
  and	
  Requirements	
  II	
  

These	
  companies	
  should	
  disclose	
  as	
  part	
  
of	
  their	
  corporate	
  governance	
  statement	
  	
  
Informa.on	
  on	
  the	
  objec.ves,	
  the	
  implementa.on	
  and	
  
results	
  obtained	
  from	
  their	
  diversity	
  policies	
  for	
  their	
  
administra.ve,	
  management	
  and	
  supervisory	
  bodies...	
  
	
  

Large	
  listed	
  companies:	
  
	
  

• 	
  Large	
  companies	
  are	
  taken	
  to	
  
mean	
  companies	
  which	
  exceed	
  
the	
  given	
  threshold	
  values	
  for	
  any	
  
two	
  of	
  three	
  variables:	
  balance	
  
sheet	
  total,	
  annual	
  turnover	
  and	
  
average	
  number	
  of	
  employees.	
  
	
  
• 	
  Listed	
  companies	
  are	
  taken	
  to	
  
mean	
  companies	
  which	
  are	
  listed	
  
on	
  the	
  Main	
  Stock	
  Exchanges	
  in	
  
European	
  Economic	
  Area	
  (EEA)	
  
Member	
  Countries.	
  

With	
  regards,	
  in	
  par.cular,	
  to	
  aspects	
  such	
  as:	
  
	
  
-­‐ 	
  Age	
  
-­‐ 	
  Gender	
  
-­‐ 	
  Na.onality	
  
-­‐ 	
  Educa.onal	
  and	
  professional	
  background	
  
-­‐ 	
  Other	
  aspects	
  companies	
  may	
  consider	
  relevant	
  
	
  
COMPLY	
  OR	
  EXPLAIN	
  
Companies	
  not	
  having	
  a	
  diversity	
  policy	
  should	
  not	
  be	
  obliged	
  
to	
  put	
  one	
  in	
  place	
  but	
  they	
  should	
  clearly	
  explain	
  why	
  this	
  is	
  
the	
  case	
  
Thank	
  you	
  very	
  much	
  	
  
for	
  your	
  aden.on!	
  

For	
  more	
  informa8on	
  contact	
  Stefan	
  Crets	
  (sc@csreurope.org)	
  	
  
	
  
Connect	
  

Share	
  

Innovate	
  

www.csreurope.org	
  

15	
  

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CSR & HR - Presentation Stefan Crets

  • 1. Conference  “CSR:  s.ll  a  challenge  for  HR?”   22  October  2013  in  Brussels   Stefan  Crets,  Execu.ve  Director,  CSR  Europe   1  
  • 2. What  is  CSR?    “The  responsibility  of  enterprises  for  their  impacts  on  society”   IT  IS  ABOUT  MANAGEMENT  PROCESSES     Respect  for  applicable  legisla.on,  and  for  collec8ve  agreements   between  social  partners,  is  a  prerequisite     •  CSR  =  a  process  for  companies  to  integrate  social,  environmental,   ethical  and  human  rights  concerns  into  their  opera8ons  and  core   strategy,    in  close  collabora.on  with  their  stakeholders     •  Maximising  the  crea8on  of  shared  value  through  a  long-­‐term  strategic   approach  to  CSR,  the  development  of  innova8ve  products,  services   and  business  models…     FOCUS  ON  MID  AND  LONG  TERM  SUSTAINABLE  GROWTH  
  • 3. Corporate  strategies  for  building  shareholder   and  societal  value-­‐added    
  • 4. Role  of  CSR  with  regards  to     HR  stakeholder  requirements   Improve   HR  admin   services   HR  stakeholder   requirements   Provide   worklife   balance   programs   Clarify  and   leverage   social   mission   Develop   Green   Teams   Provide   dental   insurance   Strategic   business   partnership   Gender   equality   prog   Win  the   talent  war   Increase   employee   engagement   Reduce  HR   costs   Improve   internal   comms   Employee   sa.sfac.on   survey   Low  carbon   skills   recruitment   Embed  human   rights  policy   Assess  HR   Employee   Sustainability   Volunteering   risks   Program   HR  func.onal  success  and  contribu.on  to  a  sustainable  business   Source:  CSR  for  HR:   hGp://www.google.de/imgres?um=1&sa=N&biw=1366&bih=667&hl=nl&tbm=isch&tbnid=hNhwnJ5M8y6YJM:&imgrefurl=hGp://www.csrforhr.com/2011/06/cshr-­‐going-­‐ global.html&docid=anLxIOdYG3pmcM&imgurl=hGp://4.bp.blogspot.com/-­‐G5vJVZwiRu8/TgT-­‐t61b-­‐xI/AAAAAAAAAbo/MAyTuf2fFgw/s400/CSR%252Bfor%252BHR %252BMateriality.JPG&w=400&h=327&ei=uJ5DUt3jOYeFhQevn4HoBg&zoom=1&iact=hc&vpx=649&vpy=146&dur=4309&hovh=203&hovw=248&tx=150&ty=105&page=1&tbnh=131&tbnw=160&start=
  • 5. Enterprise  2020:     It  is  about  business  not  mere  compliance       Social  innova*on     =  new  ideas,  business  models,  products  &  services  that  resolve  exis*ng  sustainability  challenges   5  
  • 6. Enterprise  2020  Ini.a.ve   The  way  ahead   2013-­‐2015       Sustainable   Living  in   Ci.es   Skills  for  Jobs  
  • 7. Nine  campaign  projects   Areas   Project   Leaders/Partners   Rethinking  Careers   Workplace     Innova.on   Health  and  Wellbeing   Supplier  Diversity  (‘14)   Changing  Lives   Entrepre-­‐ neurship   Intrapreneurship   Programme   Entrepreneurship  Boost   Deploy  Your  Talents   (STEM)   Skills  for   Employability   Quality  Internships  &   Appren.ceships   Inclusion     Fostering  Inclusion      
  • 8. Rethinking  careers:  integra.ng  longer  working   lives  into  all  HR  opera.ons  
  • 9. CSR  Europe’s  project  on  Rethinking  Careers       Purpose   Deliverables   Iden8fied  Issue/Gap   •  New  legisla8ons  for  prolonged  re8rement  age   •  Beyond  focusing  on  senior  wokers,  companies   need  to  take  a  holis8c  approach  à  rethink   careers     Proposed  solu8on   •  Understand  the  levers  and  obstacles  of  lifelong   HR  Management   •  Share  knowledge     •  Support  in  shaping  the  necessary  policy   framework   •  Assessment  of  lifelong   employability   à  Assessment  Report  +   Benchmark     •  Knowledge  sharing     à  Publica8on,  incl.  lessons   learned  +  best  prac8ces     •  Policy  dialogue     à  Policy  recommenda8ons   •  Rethinking  careers  publica.on   •  Lifelong   Employability   Assessment   (LEA-­‐Tool):    CSR  Europe  is  offering  a   Rethinking   Careers   Assessment   to   measure   a   company’s   ability   to   i n t e g r a t e   a g e -­‐ m a n a g e m e n t   processes   into   HR   opera8ons   across   life-­‐stages   •  12-­‐13   November   2013   in   Brussels:   European  Employment  Forum   For  more  informa+on  on   the  publica+on  and  how   to  par+cipate  in  the   assessment,  please   contact  Sarah  Dekkiche   (sd@csreurope.org)      
  • 10. The  Business  case  of  Health  Literacy   Health  literacy  ac8vi8es  in  the  business  context  create   value  not  only  for  employees,  but  also  for  businesses   Improved   brand   Reduced   sickness   Fewer   accidents   Improved   reten.on   Business   benefits  of   a  healthy   workforce   Higher   produc.vity   Higher   commitment   Improved   resilience  
  • 11. • To  evaluate  the  22  process  requirements  on  their  level  of  maturity  and  assign  a  score  to   company’s  practice   • Draw   Individual   benchmark   graphics   to   provide   company   with   their   position   against   and  allows  to  identify  gaps   • Compile  a  set  of  good  practices  for  each  of  the  effectiveness  criteria.   each   peers   Business  and  Human  Rights   What  is  available  for  companies  now:       • 22  indicators  to  support  HuRis  practitioners  in  decision  making  process  à  the  8  effective  criteria  were  broken  down  to   identify  key  elements  of  a  grievance  mechanism  operating  principles     Two  work  streams   • Matrix:  ”beginners  “–  “advanced”  –  “effective”  maturity  level  à  3  levels  of  maturity  of  grievance  mechanism  were   identified;  explanation  of  each  of  them  and  practical  examples  are  available  (Please  note  that  the  “effective”  level  is  limited  to   the  group  of  companies  we  have  been  interviewed)   (2)  Management  of  Complaints         Matrix  -­‐  Assessment  sheet  with  practical   examples  for  each  of  the  levels  of  maturity     Why  par.cipate:   •  Assess  the  effec8veness  of  current  company   processes  for  addressing  complaints  from   employees  and/or  communi8es.   •  Learn  from  a  set  of  best  prac8ces  and  tools   Score  on  the  8  UN  criteria   Total  score  benchmark   against  other  companies   Available  tools   •  MOC-­‐A:  Management  of  Complaints   Assessment  tool     •  Publica8on  on  company  mechanisms  for   Addressing  Human  Rights  Complaints     Individual  benchmark  graphics  provide  company  with   their  position  against  peers  and  allows  to  identify  gaps              8  Criteria   benchmark   21  processes   requirements   Gaps  in  specific  processes   requirements     more  informa8on       within  one  network  on  business  and  human  rights   11  
  • 12. Business  and  Human  Rights   Two  work  streams   (1)  Embedding  Human  Rights   Why  par.cipate:   •  Understand  the  relevance  of   human  rights  across  departments   –  HR,  procurement  and  legal/  risk   management   •  Translate  human  rights  into   func8on-­‐specific  processes   Upcoming  tools:   •  Department-­‐specific  tools  e.g.   training,  guidance  materials     Link  to  Human  Rights   Day-­‐to-­‐Day  Ac.vi.es   • Human  rights  risks  throughout   the  supply  chain  (eg.  child/ forced  labor,  working  hours,   freedom  of  associa8on,   con8ngent  labor)     • Linkage  situa8ons:  human   rights  risks  further  down  the   supply  chain  (eg.  conflict   minerals)   • Outsourcing  of  produc8on  to  low   cost  countries     • Sourcing  of  raw  materials,   agricultural  products,  chemicals,     • Procurement  decisions  (eg.  lead   8mes,  contract  terms,  margins)   • Monitoring  and  improvements   Risks   • Sole  focus  on  labor  rights   • Biggest  suppliers  vs.  highest  risks   • Parallel  vs.  integrated  processes   • Sole  approach  is  compliance   and/or  cut  and  run   Opportuni.es   • Respect  for  human  rights   correlates  with  high   performance  in  other  areas   • Risk-­‐based  approach   • Working  with  others  (eg.   Bangladesh  Accord)   within  one  network  on  business  and  human  rights   12  
  • 13. EU  legisla.ve  proposal  on  Non-­‐financial  Informa.on   Scope  and   Requirements  I     •  COMPANIES  CONCERNED   •  Large  companies:   •   Average  number  of   •  •  •  employees  exceeds  500   AND    The  balance  sheet  total   exceeds  €20million  OR  the   net  turnover  exceeds   €40million   These  companies  must   include  in  their  annual  report   OR  in  the  review  within  a   consolidated  annual  report,  a   non-­‐financial  statement      →   CONTENTS  of  non-­‐financial  statement   Informa8on  must   relate  to  the   company’s   policies,  results   and  risk-­‐related   aspects  on  at   least...   May  rely  on   Include  statutory   na.onal,  EU-­‐based   audits...   or  interna.onal   frameworks,  such   as   •   Environmental   aspects;   •   Social  &   employee-­‐related   maders;   •   Respect  of   human  rights;   •   An8-­‐corrup8on   and  bribery   aspects   •   UNGC   •   ISO  26000   •   ILO  Declara+on   •   GRI   • EMAS   • German   Sustainability  Code   (DNK)   • .....   Should  contain  an   opinion  concerning   the  consistency  or   otherwise  of  the   annual  report,   including  non-­‐ financial  informa8on,   with  the  annual   accounts  for  the  same   financial  year   COMPLY  or  EXPLAIN   Where  a  company  does  not  apply  policies  in  one  or  more     of  these  areas,  the  company  shall  provide  a  reasoned  explana8on   for  not  doing  so.  
  • 14. EU  legisla.ve  proposal  on  Non-­‐financial  Informa.on   Scope  and  Requirements  II   These  companies  should  disclose  as  part   of  their  corporate  governance  statement     Informa.on  on  the  objec.ves,  the  implementa.on  and   results  obtained  from  their  diversity  policies  for  their   administra.ve,  management  and  supervisory  bodies...     Large  listed  companies:     •   Large  companies  are  taken  to   mean  companies  which  exceed   the  given  threshold  values  for  any   two  of  three  variables:  balance   sheet  total,  annual  turnover  and   average  number  of  employees.     •   Listed  companies  are  taken  to   mean  companies  which  are  listed   on  the  Main  Stock  Exchanges  in   European  Economic  Area  (EEA)   Member  Countries.   With  regards,  in  par.cular,  to  aspects  such  as:     -­‐   Age   -­‐   Gender   -­‐   Na.onality   -­‐   Educa.onal  and  professional  background   -­‐   Other  aspects  companies  may  consider  relevant     COMPLY  OR  EXPLAIN   Companies  not  having  a  diversity  policy  should  not  be  obliged   to  put  one  in  place  but  they  should  clearly  explain  why  this  is   the  case  
  • 15. Thank  you  very  much     for  your  aden.on!   For  more  informa8on  contact  Stefan  Crets  (sc@csreurope.org)       Connect   Share   Innovate   www.csreurope.org   15