1. Patrick Mallon Creating change through Collaboration & Partnership 22 May 2007

2. We are Unique movement of 750+ member companies Our purpose INSPIRE, CHALLENGE & SUPPORT, business to continually improving its positive IMPACT on society Together our members employ 14.7 million people across 200 countries. In UK members employ over 1 in 5 in the private sector workforce

3. 25 Year’s – In Partnership Partnership is at the heart of BITC Partnership underpins Membership 3 Membership Commitments = Inspire, innovate & lead by sharing learning & experience = Impact on key social issues through collaborative action in areas of greatest need = Integrate, manage & measure responsible business

4. BITC’s brand of Partnership All our major campaign areas driven by Leadership Teams. All initiatives developed in partnership with Business Product development done in partnership - - Examples include the Environment Index and CR Index and Leadership Matrix tool

5. BITC Impact - 2006 250 companies involved in BITC Leadership Teams 877 Business Leaders involved in “Seeing is Believing” 8,000 participants in events 829 companies took part in BITC Benchmarking

6. BITC Impact - 2006 29,343 people volunteered in schools & communities 1,665 volunteers partnered young people on our “Number Partner Programme” 800+ professional firms completed 1,600 pro bona projects & provided £2.3m worth of advice to 1,300 local community groups 324 companies helped to save 14,000 tonnes of CO2 & cut costs by nearly £1.8m

7. Critical Success factors – Partnership on the Ground Leadership & ownership by the private sector Numbers of businesses involved Senior leadership Shared objectives/mutual benefit Dedicated brokerage/project management Strong local management structures Task focused projects Clear evaluation processes in place Flexibility and ability to change

8. TOOLS - CR Index contributing to change Greater emphasis of CR as a source of competitive advantage - Leaders moving from Risk to Opportunity. Board-level ownership more prevalent & visible. Further progress in systems & programmes to incentivise, train & communicate with employees. More companies involving stakeholders in identifying risks, opportunities and performance indicators.

9. TOOLS - CR Index contributing to change More evidence of social & environmental issues influencing decision making – on new investments; development of new products & services (But often isolated examples) Trend of public disclosure continuing

10. Tools - Areas for improvement Limited forward-looking commitments – outlooks rarely extend beyond the year ahead. Supply-chain management a key area for improvement Demonstrating continuous improvement in social and environmental impact proving an enduring challenge. Only 2 in 5 companies have company wide assurance processes Climate Change - companies still focusing their efforts on incremental yearly improvements.

11. Tools – Going Beyond the CR Index - Leadership Matrix (KPIs) Attained CR Index practice Current leadership practiceFuture leadership practice Strategy: Leadership & advocacy Risk management process Stakeholder engagement Input to business planning KPIs based on Materiality, Risk & Strategy Assessment of CR risks based on “likelihood of risk happening vs financial impact to business over 3 year period” CR issues aligned with stakeholder engagement CR Strategy & Business strategy operates as one. CR risks appear on overall business risk registrar. CR risks/opportunities central to the long-term (strategic) planning of the business (longevity/sustainability). Integration: (Strategic) decision making Performance mangt & remuneration Training & development Senior management have non- financial KPIs in personal scorecard & remunerated accordingly. Governance of KPIs operates within a framework which ties day-to-day issue owners to senior managers. Robust materiality process in place Strategic business decisions delivering market transformation through addressing route cause – e.g a company’s contribution to “low carbon economy”

12. Attained CR Index practice Current leadership practiceFuture leadership practice Management: Performance targets Measurement Performance reporting (internal/external ) Small number of indicators. Performance improvement targets linked to stakeholder groups – Customers, Employees, suppliers, communities etc. Report only on issues significant to company & to stakeholders & society.  Targets focusing more on opportunity than risk. Measurement & reporting of transformational change in business model & performance. Step change rather than incremental. Forward looking rather than historical.  KPIs bolster business KPis. Impact: Performance improvement Effecting wider change (‘influencing the future’) Year-on-year performance improvement. Numerical & time-bound targets. Performance improvement that delivers measurable value to business and society. A company’s contribution to “low carbon economy” and its contribution to business’s sustainable economic growth. The bar is set for others to follow. Tools – Going Beyond the CR Index - Leadership Matrix (KPIs)

13. Most Recent Partnership HRH The Prince of Wales - May Day Climate Change Summit Partnership between BITC, Carbon Trust, Envirowise, Regional Development Agencies & Business Pledges to Action by Business

14. www.bitc.org.uk