Best Practices from the 2010 Corporate Social Responsibility Awards

Best Practices from the 2010 Corporate Social Responsibility Awards

Table of Contents Introduction... 2 CSR Awards Best Practices Summary... 3 CSR Awards Best Practices Strategy, Structure and Commitment... 4 Corporate Governance... 5 Environmental Issues... 6 Social Issues... 7 Workplace Practices... 8 CSR Partnership Award Best Practices... 9

Introduction The AmCham Shanghai Corporate Social Responsibility (CSR) Awards honor and showcase organizations that have made notable contributions to further corporate citizenship in Shanghai and in China. The awards and annual CSR conference aim to serve as a platform for corporations to celebrate and share their CSR best practices including philanthropy, community outreach, volunteer programs, employee safety initiatives, clean supply chain, environmental educational efforts and corporate governance. AmCham Shanghai announced the 2010 CSR Award winners at its Sixth Annual Corporate Social Responsibility (CSR) Conference and Awards Ceremony at the Renaissance Shanghai Zhongshan Park Hotel on November 18. The 2010 winners were selected from a strong field of more than 50 nominees that offered best practices across the range of CSR focus areas. The award winners this year were judged according to rigorous criteria developed with assistance from RepuTex, a Social Responsibility Index rating company. This year awards were presented in three categories: 1. CSR Award - presented to an AmCham Shanghai member company in China to recognize its overall CSR achievements. 2. CSR Partnership Award - presented to a company and an NGO which have exemplified success in working together to address an important social issue. The award recognizes a nominated business organization and its nonprofit partner. 3. CSR Practitioner Award - presented to an individual who most effectively advances social responsibility in the workplace and builds ties between an enterprise, either large or small, and the community that it serves. This report includes best practices from programs carried out in China between 2009 and 2010 as reported by awards applicants. Highlighted portions were selected by the awards jury during the judging process. Individual company examples below are grouped under the headings Strategy, Structure and Commitment, Corporate Governance, Environmental Issues, Social Issues and Workplace Practices. About AmCham Shanghai and our CSR Program The American Chamber of Commerce in Shanghai is the largest and fastest growing American Chamber in the Asia Pacific region. As a non-profit, non-partisan business organization, AmCham Shanghai is committed to the principles of free trade, open markets, private enterprise and the unrestricted flow of information. The mission of the AmCham Shanghai CSR program is to inspire, encourage, and facilitate corporate social responsibility awareness and practices among AmCham Shanghai members. The CSR committee focuses on corporations activities in community outreach, environmental stewardship, employee health and safety, corporate governance, public healthcare, clean supply chain and public private partnerships. 2

CSR Awards Best Practices Summary The 2010 AmCham Shanghai CSR Award finalists and winners are at the forefront of CSR development in mainland China. Several trends appeared among the highest-scoring applications: The use of full-time CSR practitioners or a multi-level CSR committee to handle the development, oversight and implementation of CSR programming Community education programs directly related to the company s mission and purpose Inclusion of a CSR-focused module or presentation in new employee orientations Detailed tracking of employee volunteer hours and program satisfaction Strategic partnering with NGOs to build program capacity 3

CSR Awards - Strategy, Structure and Commitment Award applicants were evaluated on the following criteria: Methodology and development of CSR programs in China Establishment of systems to carry out CSR strategies through concrete actions Establishment of leadership arrangements to support CSR programs 1. Honeywell China Three-pronged CSR initiative: o Science and Math Education o Family Safety and Security o Humanitarian Relief 2. The Walt Disney Company (Shanghai) Limited CSR efforts focused on 6 programs: Disney University, Green Program, Healthy Pursuits Program, Outreach Program, Employee Volunteering Program, and International Labor Standards Program Implemented a two-tiered approach to CSR management, mobilizing and coordinating CSR efforts across all business units 3. KPMG China Dedicated full-time CSR team based in Hong Kong, Shanghai, and Beijing CSR team works closely with Social and Environmental Action Teams (SEATs) who drive employee participation in CSR initiatives Includes CSR awareness in employee orientation Maintains an internal CSR webpage for employees 4. Citi China Designated Head of Citizenship at Citi China oversees CSR programs Independent CSR consultant conducted a series of stakeholder engagement initiatives to ascertain company performance 5. Johnson & Johnson China Established CSR Committee develops an annual CSR plan including mission, strategic objectives, focus areas, and program/ngo selection criteria Established concrete process and structure for program monitoring and result assessment Launched internal JNJ CSR platform 4

CSR Awards - Corporate Governance Award applicants were evaluated on the following criteria: Presence and promotion of code of ethics setting out company standards Ethical presence in the community Public charters and policies setting out respective roles and powers of company officers Management, compliance and reporting systems Disclosure of compliance with corporate laws and regulations 1. The Walt Disney Company (Shanghai) Limited Compiled Standards of Business Conduct which clearly explains standards of conduct including ethical standards, standards of integrity, honesty, trust, respect, fair play and teamwork Adopted internationally standardized audit and compliance system and set up an independent hotline for employees to confidentially report problems 2. KPMG China Provides staff with data privacy and ethics training; over 7000 staff members completed mandatory online and classroom training Set up KPMG International Hotline for staff to anonymously report unethical work practices 3. Johnson & Johnson China Set up Health Care Compliance Guidelines to safeguard medical decision making from both the appearance and the fact of improper financial influence J&J Health Care Compliance Committee established to oversee and approve corporate and sector-specific compliance policies, procedures and programs, and periodically report to Executive Committee, which is aimed at ensuring ethical behavior 5

CSR Awards - Environmental Issues Award applicants were evaluated on the following criteria: Commitment to ecologically sustainable development Compliance with environmental legislation and regulations Processes which include extended operations and supply chain operators Established engagement and performance reporting mechanisms Evidence of training programs related to environmental efforts 1. Honeywell China Energy-saving project with an investment of RMB 5 million Honeywell Building Solutions designed a set of heat recovery system that is expected to reduce company s power consumption by 48%, cut annual greenhouse gas emissions by 1147 tons, and save as much as RMB 9 million per decade 2. The Walt Disney Company (Shanghai) Limited Launched Green Working Environment Program to reduce environmental impact and to inspire environmental stewardship among employees Embedded environmentally conscious content in movies and TV programs Decreased the increasing rate of electricity consumption per head at China headquarters by 36% Decreased paper usage per head at China headquarters by 16% Decreased the increasing rate of stationary usage per head by 2.8% 3. KPMG China Announced Global Green Initiative sustainable business practice that attempts to preserve environment by reducing all member firms combined carbon emissions by 25% by the year of 2010 Series of other green initiatives and campaigns to reduce environmental impact Green Monday, Carbon emission reduction guideline, Green is Easy video competition, printing reduction champions Sponsoring the production of a business engagement case study booklet which includes summarized analysis on low-carbon emission-related information on the economy, stakeholders and enterprises 4. Citi China Provides financial support to environmentally friendly small and medium enterprises via trade financing, foreign exchange hedging and trade loans Two initiatives to reduce the use of paper monthly e-statements to replace traditional, paper bank statements and an online platform reducing Manually Initiated Fund Transfers by facilitating a wide range of Chinese Yuan and foreign currency payment solutions 6

CSR Awards - Social Issues Award applicants were evaluated on the following criteria: Presence of community service programs that promote improve corporate-community relations Contribution to the social and economic development of the community Project sustainability and employee involvement Percentage of pre-tax profits donated to charity Compliance with product safety standards Consumer complaint resolution and compensation 1. The Walt Disney Company (Shanghai) Limited Built Disney Fun House where Disney VoluntEARs dedicated 2,163 hours of volunteer service for Chinese children Partnered with AmCham Shanghai, China Youth Development Foundation, and Shanghai Expo Volunteer Committee and similar groups in a China Outreach Program which co-organized 14 VoluntEAR events in Shanghai, Beijing and Guangzhou 2. KPMG China Raised RMB 8 million for the Sichuan Earthquake relief and gave 7,000 hours of volunteer service Worked with the China Children and Teenagers Fund to build a green community center in Cifeng township 110 volunteers worked as translators, coordinators and counselors for Operation Smile missions reconstructive surgeries on cleft lips/cleft palates for children in poor areas Served as the capacity-building strategic partner for the second World Bank China Development Marketplace, which aims to empower local NGOs in creating, delivering and sustainable innovative, early-stage development projects; Donated 100 laptops and provided training on non-profit accounting to 100 NGOs 3. Citi China Contribution to three different areas: 1. Financial Education by supporting the China Foundation for the Development of Financial Education s Rural Financial Education Program 2. Microfinance by organizing the annual micro-entrepreneurship awards program, which recognizes the efforts of micro-entrepreneurs and raises awareness of the role of microfinance 3. Small and Medium-sized enterprises by focusing on building the capacity of SMEs through the New Ventures Forum, an annual event that supports SMEs which incorporate social and environmental benefits into their business models 4. Johnson & Johnson China Conducted a nationwide Neonatal Resuscitation Program, which helped midwifery institutions in over 20 provinces, trained 100,000 healthcare professionals, and assisted with 90,000 births at hospitals Launched the Safe Kids Campaign, which directly connects with 400,000 parents and children every year through various media channels Donated RMB 4.3 million in cash to Yushu earthquake disaster relief efforts 7

CSR Awards - Workplace Practices Award applicants were evaluated on the following criteria: Presence and effectiveness of programs to ensure fair working wage (minimum wage), working conditions and hours Employee development and training programs which develop the skills of all workers Training for managers and supervisors to improve worker communication capacities Leadership and achievement in protecting the health and safety of employees Employee involvement in the health and safety management of the organization Voluntary or self-applied standards which go beyond minimum regulations 1. The Walt Disney Company (Shanghai) Limited Offers classroom-based courses, online training, and tools to build personal effectiveness, functional, and management skills through Disney University Financially supports a Health Pursuits Program to maintain a healthy, active and productive workforce Uses established international labor standards to educate licensees and vendors, and to monitor factories to assess working conditions 2. KPMG China Global mobility program offers opportunities for workers to work for other KPMG member firms, helping to develop a talent pool that is comfortable working in different cultures Women at work and people with disabilities are two key focuses of diversity program 3. Citi China Launched Employee Assistance Program which provides confidential consultancy services to all employees Established a Women s Council to nurture women s leadership development and to provide an avenue for both male and female employees to become involved in diversity events Center for Advanced Learning assigns local employees to international rotations and training programs Voice of the Employee Survey annual survey form dedicated to strengthen culture and talent development 4. Johnson & Johnson China Building strategic partnership with China Top Universities through J&J Tomorrow Leader School Global Campus Recruitment and Development Program recruited over 80 MBA graduates from the US and Europe and grew them to senior management positions All J&J China companies joined smoke-free worksite initiative Employee Assistance Program provides annual health check, employee federations and health club sponsorship to employees and encourage the work-life balance policies 8

CSR Partnership Awards Key factors examined include the immediate results and long-term outcomes of the program for the project s beneficiaries, the corporation, and the NGO. 1. Cargill Investments & Habitat for Humanity: Cargill Building Hope Aimed to help provide decent, safe, healthy homes to impoverished families, while building lasting community bonds through engagement of volunteers to assist in construction work and related local community activities While Cargill offered local resources and network, and insight into local operating conditions, HFH was able to introduce and adapt its poverty housing alleviation and volunteer engagement practices to Cargill 113 volunteers participated in volunteer building activities, contributing 705 volunteer hours Three families, one primary school and one kindergarten served 2. Dow Chemical & Junior Achievement China: Dow Chemical-JA China Our City Three year, USD $600,000 partnership designed to integrate sustainable development into business and economic education in China Program has reached 18,461 students and involved 1,017 volunteers, including 724 Dow volunteers as of August, 2010 Provided students with a highly integrated course that introduces them to critical sustainable development concepts 3. General Electric & Junior Achievement China GE volunteers participated in no less than 12 different programs, totaling 127 classes and reaching 5,172 students across Beijing, Shanghai, Guangzhou, Nanjing, Xi an, Suzhou and Hangzhou Provided students across China with practical courses that range in topic from sustainable development and international economics to entrepreneurship and professional skills training The programs received an overall satisfaction rate of 81% among students JA staff also benefit from free trainings provided by GE s Leadership Learning center on different topics 4. General Motors & National Care Series Committee: GM Road Safety Education Program Program was implemented in Beijing, Tianjin, Qingdao, Guangzhou, Shanghai, Dalian, Hefei and Chengdu Reached 790,000 families and more than 2,000,000 people Safety messages delivered via pamphlets to children and parents GM leveraged its global resources, brings advanced road safety concepts and global best practices to partners in China 5. Mary Kay Cosmetics & China Women s Development Foundation Assisted a total of 30,000 women in 20 provinces to shake off poverty and increase income Company determines the screening criteria of the target person receiving the sponsorship, reviews projects proposed by the Women s Federation and holds inspections at an early stage, middle stage, and ending stage of the project 9

Offered funds to construct 10 Mary Kay Spring Bud primary schools across China, funded 60 Spring Bud classes and helped 3,000 impoverished children to return to school 3 sources of financial funding: o Company donations o Mobilize and guide the employees and the Sales Force make contributions o Mary Kay-sponsored donation matching for donations provided by employees 6. Kraft Foods & China Youth Development Foundation Kraft Foods donated RMB 5.5 million to build 100 Kraft Hope Kitchens in 100 Project Hope primary schools in 5 provines: Jilin, Hebei, Anhui, Hunan and Yunnan 100 Kraft Hope Kitchens were completed and passed the quality assurance test of the CYDF by June 2010 6,000 hours of employee voluntary service have been provided to the first 100 Kraft Hope Kitchens Program funding came from Kraft Foods China s donations of RMB 5.5 million; the company donated more than RMB 3 million of products to the students Kraft Foods China also encourages its business partners to participate in the projects Business partners of Kraft Foods China contributed RMB 1 million cash to the program 10