Workshop CSR EIPM
2008 March 14th & 15th
Sustainable Development: is Corporate Social responsibility an opportunity or a constraint to purchasing?
Workshop sum-up
Welcome and introduction, Ohanes Missirilian, EIPM
o What Purchasing is doing about CSR?
o How to manage CSR initiatives in Purchasing?
o How companies manage risks on CSR with suppliers?
o How to “value” CSR initiatives?
o What are the skills required to incorporate CSR into Purchasing?
o What are the challenges companies are facing in this area?
… Questions for this 2 days workshop trough exchanges and testimonies
à Link to Ohanes Missirilian presentation (Introduction & survey results summary)
EIPM survey
If you want, you can have a look on whole EIPM survey results on CSR & Purchasing
à Link to EIPM survey detailed results
Paola GHILLANI (Paola GHILLANI & Friends ag)
”Sustainable Development and Competition: does it work together?”
Link to Paola GHILLANI presentation
Some comments issued from group discussion:
o 3 pillars CSR representation is too static! we need to be more in movement, CSR is a dynamic way, not a foundation
o Corporate Responsibility towards Stakeholder is not only social (which is too restrictive) but Global
o Enron example : too much “EGO” system (Bonus) instead of “ECO” system” (Share with Stakeholders)
o “ Put the church in the middle of the village” (more spiritual than material)
o Focus on consumers “LOHAS” (Lifestyle Of Health & Sustainability)
o Level of sustainability is not always linked to countries (ex : Chinese factories are not all in the worst conditions … against European ones)
o Emerging countries are in certain case more sensible to sustainability programs (see CSR reports of Dr Reddy’s Laboratories of India)
o For Paola, a “Sustainable Label” is not the best way, it’s better to focus on brand initiatives
o Everybody (as a consumer, as a manager, as a shareholder, as a politic, …) can act at his level
o Important to communicate clearly with Suppliers: SD program is part of the contract!
o Purchasers have to be trained on CSR
o Important impact of local government regulations
o Difficulties to manage CSR program when you are small buyer in front of big suppliers (Monsanto)
Ariane THOMAS (L’OREAL)
“The Social Dimension: How L’Oreal is managing the Social Dimension of their supplier base since 2004?”
Some comments issued from group discussion :
o Share with suppliers = “Integrated Extended Company”
o Purchasing KPI
· Social Responsibility
· Quality
· Logistics
· Innovation
· Competitiveness
o 75% of suppliers are in the panel for more than 10 years
Petar SOBIC (UNILEVER)
“The challenges of managing Unilever global supplier base”
à Link to Petar SOBIC presentation
Some links evocated during group discussion:
o See SEDEX data exchange Platform à https://www.sedex.org.uk/bc/cm/site.php
o See Maplecroft map à http://maps.maplecroft.com/
Debrief extracts from 3 specific workshops:
o How to cope with independent companies specificities (easier to align externally than internally, so recommendation à start externally, then implement internally)
o Use CSR approach to see business and governance in a different way à innovation on way of working
o Who is the referee in case of ethical conflict?
o Identify key criteria for rapid screening
o Leverage existing audit database (Automotive, Electronics, …) or get a few companies to start à snowball effect
o Different processes for CSR initiatives à not best for all
o Important to prioritize à where to start, where to finish , how far to go in the supply chain, …
o Select appropriate KPI’s to measure performance
o In house skills or third party skills for assessment/implementation
Zeev FLATH (2C Management)
“Integrating CSR in Purchasing: how to lever the strength of short term purchasing and long term SD tools?”
à Link to Zeev FLATH presentation
Some comments issued from group discussion :
o Question: is it better to add new rules on the existing game or to define the rules of the new game?
o Zeev answer à both can be used depending of :
· The anteriority of the relationship
· The size of the business
· The actual level of suppliers on SD programs
o See Eco design example on website http://www.environdec.com/pageId.asp
Fiona GOOCH (Tradecraft & Responsible Purchasing Initiatives)
“Buying matters – what are the characteristics and enablers of responsible purchasing? What are the social impacts of purchasing decisions?”
à Presentation: available upon request
Some comments issued from group discussion :
o TRADE reduce POVERTY when RIGHT CIRCUMSTANCES are in place
o The central question is à where is the power ?
o See this website for initiatives www.responsible-purchasing.org
Douglas B. ELSE-JACK (Schindler)
“Ensuring ethical excellence within the supply Chain”
à Link to Douglas B. JACK-ELSE presentation
Some comments issued from group discussion :
o “Stand up for what you believe, wherever you find yourself, for whomever you work. When you find flaws in your organization, either fix and/or report them, but remember, you are responsible of what you do… and first of all of what you do not do”
Pierre JARNIAT (Salomon)
“Purchasing contribution for CSR, an operational experience”
à Link to Pierre JARNIAT presentation
Some comments issued from group discussion :
o As many companies, Salomon doesn’t start CSR program one day, touched by the “holly spirit”, this is more to improve and consolidate existing programs in a Global Project, in which Purchasing is a key player.
o A Sustainable approach with suppliers is based on Confidence; unfortunately it’s more difficult to evaluate savings coming from confidence but so easy to measure over-costs coming from mistrust!
Conclusion by Ohanes Missirilian, EIPM
à Link to Ohanes MISSIRILIAN presentation
o Purchasing itself can’t do everything, it’s more a global approach
o Nevertheless Purchasing is on of the leaders of CSR initiatives
o CSR have to be managed by a high mature Purchasing Organisation, with capabilities to :
· Influence Design
· Select suppliers
· Reduce TCO (Total Cost of Ownership)
· Manage risks
· Develop suppliers relationship
o One of the most important purchasers competence à understanding the impact of their decision on stakeholders
… But
o There is not “silver bullet” … magic solution
o Each company, industry and situation is different, which requires a specific approach
o Do not wait “corporate initiatives or frameworks to start … JUST DO IT!