Corporate responsibility excellence Kiev, January 28, 2009 © Hosted by AccountAbility Implementing the Global Compact through the GLN

Trends in CSR Management Many programs Organized compliance Strategic and aligned with the business Where most companies are When companies align corporate responsibility priorities and strategic business priorities… …to (ultimately) create sustained competitive advantage. What is excellence?

Open markets Quality, stable supply Stable markets, premium pricing Reputational benefits Cooperation Renewal, expansion Retention, productivity Operating License Reduced cost Long-term investors Company Community Employees Government NGOs Media Clients Shareholders Export market Regulators Financiers Suppliers Increased cost Disruptions, transfer of risk Contract loss, competition Negative publicity Campaigns Shutdown, delay Strike, talent scarcity Loss of operating license Market loss Disinvestment Loss of operating license Allocate resources efficiently Use stakeholder learning to refine products & services Strengthen competitive position Improve management quality & staff performance The business side of CSR

The Global Leadership Network (GLN) © Hosted by AccountAbility 4 A network of leading global companies engaged and involved in advancing excellence in the area of Sustainability and CSR Part 1 - Multi-faceted conglomerate Major US Chemical & Agricultural corporation International Corporation with major operations in Brazil Conglomerate with plantations operation across Latin America Local ad on the ground Expertise in Brazil’s Market Integrated construction services with growing operations in Latin America Four major, global companies looking at the role of ICT, supporting global - sustainable growth across all sectors Major Multilateral

Areas of work © Hosted by AccountAbility 5 GLN works with its global members in… Leading Engagement Engagement with Leading Companies Washington, May 08 - CSR Metrics New York, Nov 08 - Performance Excellence Customized Advisory Work (Strategic advisory service to GE, Alcoa, Dow etc.) Global/ Regional Reach ++ + GLN guides signatories in how to implement - UN Global Compact Leaders Summit in Geneva on July 07 “Transforming the Change Rhetoric into Shared Responsibility” Shaping LeadershipGroundbreaking R&D Attributes of leading CSR performers GLN OpenAccess Tool ESG Performance excellence system (self- assessment, live benchmarking, guidance on implementation) Global Networks including China, Brazil Jun 08, India UN Global Compact Progress & Value workshop IFC emerging markets engagement Nov 2008 Beijing CFCSR - Hall of the People Part 1 -

Business Strategy Engaged Learning Operational Excellence Leadership GLN framework for excellence Key issues help drive business strategy Stakeholders become an asset for innovation and strategy Performance systems build responsible management into quality systems Lead when and where going alone cannot produce desired results How do you achieve excellence?

Determine where you areIdentify key areas to invest inAdvance to create value Common areas of value creation Develop metrics to measure value and facilitate progress On the way Start-up Understand development pathways Highlight ROI and value- added HR management reflects CC goals Advance CC performance through R&D Apply public policy to solve toughest challenges Manage environmental footprint in operations Use marketing and sales to achieve CC priorities Build solutions with supply chains Mature Take practical steps to improve performance Communicate the right information to key audiences Attributes of excellence

Using the GLN framework and tools to IMPLEMENT the Global Compact To realize the strategic value of the UN Global Compact Principles, for business and society, companies need to integrate the Principles into their core business model 1.Identify how the Principles and other key societal issues function as a driver of business success and societal value 2.Integrate the UNGC Principles and corporate citizenship into business strategy 3.Support performance and Communications on Progress The GLN UNGC model

Measure and report on progress Reflect on the process and the reports and share the results with colleagues to implement your strategy Determine the issues Work with colleagues to map business vis-à-vis CSR priorities and decide which ESG issues to address Plan for action Take the most material issues through strategic planning process and identify what actions must be taken, who must be involved in the implementation and what targets must be set Test the materiality Look at business and stakeholder risks and opportunities to understand how significant these issues are to the company Evaluate performance Reflect on how the company is taking action to manage and integrate this issue into the daily business Continuous progress- today’s exercise

Determine the core issues Looking Ahead A Journey for Advancing Sustainable Business Attributes Benchmarking to determine how the company compares to other global players, and establish a risk/ opportunity map to set the stage for strategic planning. © Hosted by AccountAbility 10 Assess performance in key areas of the organization Realize business solutions and create societal value GLN tool to understand core business risks and opportunities relating to environmental, social and governance (ESG) issues. Value Chain Analysis to identify areas for innovation and collaboration, and integrate identified key strategic investments into the company’s core business processes Part 2 -

Thank you! Aris Vrettos Senior Advisor

Additional slides

Real-time benchmarking

Evaluating potential

Support with COP

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