Rob Challis created the original sustainability plan for MAN group. Research-driven it was ground-breaking in its scope. Here he looks at: - the correlation between CSR disciplines and sustainability -the relevance of stakeholder engagement in developing a credible sustainability proposition -the role that identifying non-financial risk has to play in reputation management -how these factors facilitate an understanding of the constituents of trust which underpin reputation.

2. Areas I will chat about this afternoon

7. BUT…before we begin…

17. So how does one put a quantifiable value on reputation risk?

21. Risk Capital allocated to Reputation Risk in these two scenarios…

26. Perhaps A Different Approach?

35. To understand the relationship of CSR to Reputation, let’s consider the Social Responsibility of business?

40. The “game” has changed

44. Key risk is not understanding the concerns of stakeholders who “own” your reputation And one way to measure the impact……

45. Identification / Quantification of Key Non-Financial Risks The main non financial risk of any company is its REPUTATION “ Corporate responsibility is the discipline by which we evidence and quantify responsible behaviour to our stakeholders. In doing so, we build and sustain their trust in and commitment to our Group and confidence in our brand”. Market Cap Net asset value REPUTATION

48. Key words as strategic context for effective reputation management…

51. So what is a Stakeholder?

59. Non-financial Risk and Sustainability….

63. Areas of non-financial risk embedded in stakeholder groups

78. So what are Corporate Values? Why are they important?

79. Value

85. To be effective, Values must therefore be central to value and…

99. The “Value” Approach To be effective and sustainable, a value proposition should..

105. Re-cap….

110. Share price performance

113. FTSE4GOOD vs FTSE

114. DJSI EURO STOXX [white line] VS. DJ EURO STOXX (2001-2006)

115. So, how do you make your reality triumph over bulls**t?

129. What CR activites are significant to external stakeholders? - People – Internal views High Low Employees performance appraisals Employee satisfaction surveys Effective 'top down' communication Improvements in our health and safety management Graduates Senior management Directors

132. Based on current business needs and risks, what are priorities for new initiatives? - 1 – internal views High Low Strategic reputation management Evidencing sustainability / survivability Using CR to develop added value sales and market differentiated propositions Suppliers Health and safety Employee attraction, retention and development Graduates Senior management Directors

133. Based on current business needs and risks, what are priorities for new initiatives? - 2 – Internal views High Low Employee communications and consultations Environmental – carbon management Environmental - general Community investment Employee volunteering Graduates Senior management Directors

134. What does this illustrate?

140. What was the outcome of this for this Group at a time of severe cuts to cost base and a 15% global headcount reduction?

151. Integrated Corporate Responsibility– How it hangs together Goodwill Market Value Key Value Drivers (Adding Value) ‏ How We Behave Community Our Environment Our People Market Place Brand SUSTAINABILITY Positive Reputation Trust Core Values Responsible Business Behaviour