CAMPAIGNING, PRESSURE GROUPS AND BUSINESS SHELL APPROACH TO REPUTATION MANAGEMENT

Transcription

1 CAMPAIGNING, PRESSURE GROUPS AND BUSINESS SHELL APPROACH TO REPUTATION MANAGEMENT Andrew Vickers VP NGO & Stakeholder Relations 1

2 ANDREW VICKERS, VP NGO & STAKEHOLDER RELATIONS Role Part of the Shell External Communications leadership team VP for NGO and stakeholder relations Subject matter lead for human rights and business principles Board member of the Public Affairs Council Diverse career background Andrew started his career as a territory manager on the forecourts of south London and has since held senior positions in Latin America, Europe and the Middle East. Prior to his current role he was responsible for stakeholder relations and sustainable development in Shell s global Upstream (exploration) business development unit.. 2

3 TODAY S AGENDA External landscape and what it means for Business How Shell scans and interprets external developments The Shell approach to Reputation and Stakeholder Management How social media has influenced the environment and Shell approach How Shell seeks to prevent issue escalation and how Shell approaches crisis management. 3

4 Type of Delay Reported THE BUSINESS CASE FOR GOOD STAKEHOLDER MANAGEMENT Non-Technical (e.g. political or stakeholder-related) 73% of sample GS Top 190 Goldman Sachs investment study on causes of delay Commercial (e.g. cost or contract-related) Technical 21% of sample GS Top % of sample GS Top 190 A sample of 19 projects out of a total of 190 were examined 3 in North America, 2 Latin America, 2 Europe, 5 Africa, 2 Asia-Pacific, 5 Asia- Middle East The chart represents instances of delays cited by type for the sample based on press searches Of the 190 projects, an average of 12 months delay for non-producing fields was reported Reporting Frequency by Type of Delay (%) 4

5 2012 GLOBALLY COORDINATED NGO CAMPAIGNING 5

6 SGBP CORNERSTONE OF OUR APPROACH TO CSR Helping meet the world s growing need for energy in economically, socially and environmentally responsible ways based on our principles Long-term profitability is essential reduce the environmental impact of our operations, products and services balancing short and long term interests be be good good neighbours manage the manage social the impacts social of impacts our activities of our activities enhance enhance benefits benefits to local to local communities integrating economic, environmental and social considerations into business decision-making regular dialogue and engagement with our stakeholders is essential 6

7 BOWTIE MODEL Issues Book Policy Forum Policy Radar Resourced CX Team Audits Prevention Leadership Control Framework Code of Conduct SGBP Worst case scenario Issue-led Crisis Major Incidents Emergency Response Crisis Management Continuity planning Intervention 7

8 ISSUE BOOK AN EXAMPLE: IFA CONTEXT An IFA is an agreement between a company and one or several Global Union Federation(s) on employment-related matters applying worldwide. They cover working and employment conditions and/or relations between employers and workers and their representatives, aspects of corporate social responsibility and generally apply throughout the company and may have implications for suppliers. The unions might call the IFA something different, e.g. charter, framework, code of conduct, joint declaration or transnational company agreement. IFAs have originated as part of a range of international trade union strategies, in the context of the erosion of trade union influence and membership losses. Many companies who have signed IFAs will come under pressure to develop and widen these agreements. The pressure from global unions is increasing to conclude IFAs, especially in Asia and Africa. The union tactic is fourfold: Put pressure on senior executives of the company directly (mostly in informal settings like a coffee break during an international conference). Put pressure through politicians, stock rating agencies and media campaigns. Align with national unions to start discussions on IFA at local level and then expand to global. Unionise the European Works Councils and expand from information or consultation body to negotiation body. KEY MESSAGES: SUPPORTING FACTS BRIDGING Questions you might receive about Shell s willingness to sign an IFA: 8

9 6 Steps to Stakeholder Relationship Management EVALUATE Listen Identify Analyse Plan Engage Measure EVALUATE What is being said about Shell Who is talking? What does it mean? How should Shell respond? Create positive dialogue/ Join the conversation Conduct continuous evaluation of the stakeholder relationship management process to ensure achievement of objectives. Measure the effectiveness of the engagement / Recognise trends Collect intelligence via external and internal information sources Ascertain overview of concerned stakeholders Understand and interpret the conversations/ attitudes toward Shell Scenarios and SWOT on responses Shell outreach Apply KPIs Social Media Traditional Media Digital Media Staff knowledge Interviews Surveys Specialised sources (IHS, Maplecroft) Identify stakeholders (past, current and future) Develop a stakeholder list List needs and /or interests List issues and /or concerns Prioritize stakeholders Map stakeholders Align stakeholder needs with Shell action Create SMART goals Develop engagement strategy Implement strategy Measure impact of the process Measure goal achievements. 9

10 IS THE MEDIUM BECOMING MORE IMPORTANT THAN THE MESSAGE? 10

11 SOCIAL MEDIA Connecting with our customers 2 million Facebook supporters and 77,000 twitter followers 11

12 CHALLENGES FOR SHELL Misinformation: o NGOs and the spread of misinformation to the public. o How much myth-busting is appropriate? Bridging the gap: o Bridging the gaps in trust and dialogue between Government - NGOs - Business o Advocacy with the middle ground Lack of support o Limited public and local figure head endorsement for fear of political backlash o Scientific community is also cautious. How can we reach out? 12

13 FOUR PHASES OF CRISIS MANAGEMENT PREPARE Form a Core Team Create & Maintain a manual Train Core Team & CX Exercise & Validate Full CMT LEARN Collate Evaluate Rectify Promulgate/Inform ACTIVATE Initiate: alert &mobilise Assess situation Notify Group Recommend CM team (Group) Assign mandate (Group) RESOLVE Analyse situation Decide strategy & communication Implement decisions Engage stakeholders Monitor

14 REFRESHED CRISIS TEAM STRUCTURE Core Team Members Full Team Members Support Teams 14

15 CONCLUSIONS Prevention is better than cure (left side of bow tie) Finger on the pulse approach including timely escalation Intelligence on who is lobbying for what is key Formalised stakeholder process & competencies helps deliver consistency Embrace social media Structured radar approach Local focus with global glue 15

16 AND ALWAYS BE PREPARED FOR THE WORST 16

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