ASCM-ENTERPRISE · 2019-06-14 · • “Our board has been pushing for a more formalized plan to ensure our ... • “I feel as though we don’t develop any innovative solutions

ASCM-ENTERPRISE

2 © 2019 ASCM. All rights reserved.

Why Introduce This Designation? - Voice-of-Customer Feedback

• “We know what we want to do, but are unsure on how to get it done . . . ”

• “A specific designation that incorporates all elements of CSR throughout the enterprise does not exist . . .”

• “This would add to the set of benefits we have come to expect from APICS . .

.”

• “Our board has been pushing for a more formalized plan to ensure our

suppliers conform . . .”

• “We as corporate leaders are accountable . . .”

• “Our policies are in line with such an initiative but pushing that agenda is difficult

as we can’t seem to monetize the tradeoffs . . .”

• “How can we monetize the opportunity to build a compelling message for

investment decision?”

Source: VOC Interviews: 12 Corporations, 8 current APICS Corporate Members


Why Introduce This Designation? - Voice-of-Customer Feedback

• “As our globalization extends, we feel more at risk of violating our ethical policies . . .”

• “A designation is nice, but figuring out a way to get these key elements in play is our primary concern . . .”

• “We are never sure where we stack up against our competition, benchmarking

our efforts seems an impossible task . . .”

• “Our current team of talent does not know how to put sustainable,

responsible supply chain practices in place . . .”

• “I feel as though we don’t develop any innovative solutions to our known

sustainability challenges . . .”

• “There are no standards in this space . . .”

• “We want to lead in this space, but how do we know that we actually are?

Source: VOC Interviews: 12 Corporations, 8 current APICS Corporate Members


Designation Overview

• APICS

• AT&T

• Avon

• Bill & Melinda Gates Foundation

• Boeing

• Boston Beer Works (Sam Adams)

• Ceva Logistics

• CHAINovation LLC

• Ericsson

• Intel

• Petrobras

• UI Labs

Core Team Participant List “A globally recognized designation for organizations who demonstrate the

strategy, processes, governance and results of operating a ‘responsible’

supply chain that delivers the ‘ethical, ecological and economic’ elements

throughout their ecosystem.”

• Project participant solicitation (March 2018) ✔

• Core Design Team established (April 2018)✔

• Maturity Matrix Development & Survey Results (May/June 2018)✔

• Framework Design Live Meeting (July 2018)✔

• Designation Design (July 2018)

• Core Team & Organizational Validation Sessions (Aug 2018)

• 3rd Party Assessment Engagement Model (Aug 2018)

• ASCM-E Framework Design incl: Assessment Criteria, Metrics &

Corresponding Benchmark (Sept 2018)

• Pilot Design (Sept 2018)

• Pilot Launched (Oct 2018)

Milestone Achievement Plan

3 Levels of Maturity

•Developing

•Improving

•Leading

3 Dimensions

• Ethical

• Ecological

• Economic

Target was 50

company

participants -

ACHIEVED!

Model / Corporate

Sustainability StandardGeneral Concept Objectives Business Benefits Disadvantages Relevance Processes & Information Gathering Costs to Companies Documentation / Validation

Ethical

SCORE

Economic

SCORE

Ecological

SCORE

Financial benefit

SCORE

Supply Chain

Applicability SCORE

Dow Jones

Sustainability

Index

DJSI is a standard for corporate sustainability and is the first global index to track the leading

sustainability-driven companies based on RobecoSAM’s analysis of financially material Environmental,

Social, and Governance (ESG) factors and S&P DJI’s index methodology.

Annual assessment on the world’s largest companies via Corporate Sustainability Assessment (CSA)

survey, which uses a consistent, rules-based methodology to convert an average of 600 data points

per company into one overall score.

DJSI provides a benchmark consisting of a balanced allocation of sustainable companies derived from

market benchmarks, closely tracking their respective benchmark in terms of risk-return profile while

also ensuring high sustainability standards. The DJSI targets investors who want to gain exposure to

sustainability leaders, but have certain risk control guidelines that they cannot breach.

S&P ESG Index family is the first global family of smart beta indices based purely on ESG research.

The index methodology uses the same components as the underlying benchmark index but weights the

components purely according to their ESG profile instead of using free-float market-cap weights. The

goal is to achieve better risk-adjusted returns than the underlying benchmark in the long run

The DJSI is an Assessment of companies ACTIONS in driving sustainability initiatives

· Generate long-term shareholder value

· Attention to financial indicators that are relevant in terms of

sustainability

· Focus on sustainability issues that are directly linked to

companies' business success

· Allows Investors to invest in 'sustainable' companies but doesn’t increase risk

higher than normal

· Determines most sustainable companies in each sector and provides very clear

benchmarking for best practise

· Clarifies areas of improvement for companies that can adapt to such

challenges through innovation, quality and productivity to enhance their ability

to generate long-term shareholder value

· Company Marketing as "sustainable" and good investment

· Focus is on impact of sustainability factors on company financial performance -

meaning revenue and value is not compromised (in fact it is increased) through

adoption of standards set out in DJSI.

· Little flexibility on implementation approach

·Must be a large company above certain size to

participate

· Yearly update of questionnaire (CSA) to cover new issues /

sustainability areas

· Changes to yearly questionnaire limited to 10 - 20% of CSA to

ensure comparability between years

· Robust consultation process with industry and independent bodies

to ensure CSA is peer-reviewed and relevant

· Statistically adjusted / sense checked results to remove biasing in

company comparison process - Enabling fair ranking system

Output is based on information provided by the companies directly through RobecoSAM’s

proprietary online assessment tool and various other communication methods

· The world’s largest 2,500 publicly traded companies are invited to participate in the survey,

covering all industries

· Companies are evaluated based on a range of financially relevant sustainability criteria

covering the economic, environmental and social dimensions

· Companies receive a Total Sustainability Score between 0 – 100 and are ranked against other

companies in their industry

· The top 10% of companies within each industry are selected for inclusion in the DJSI World1

· The DJSI identify sustainability leaders across all industries, enabling investors to track their

performance and integrate sustainability considerations into their portfolios

· MSA - Media and Stakeholder Analysis provides overlay of media stories related to how

company handles events relating to ESG issues.

Comparisons in CSA cover ESG - Environmental / Social / Governance aspects

· Cost to take advantage of output reports

and information gathered by RobecoSAM

dependent on requirement

· Statements regarding sustainability policies must be supported by official documents that the

company provides to DJSI

· Most statements regarding actual performance (as opposed to policies) for which publicly

available sources exist are verified against these sources. For standardized data and

reporting

· RobecoSAM looks for third-party verification or assurance in addition to the performance

figures.

· The Media and Stakeholder Analysis (MSA), which is based on data provided by specialized

media monitoring company RepRisk, serves as a cross-check between a company’s stated

policies and its actual involvement in and response to violations, law suits and controversies.

· Deloitte provides annual assurance on the application of the CSA and Corporate

Sustainability Monitoring methodology as described in the DJSI Guidebooks

High

Very High -

Focus of

model is on

long term

financial

performance

through

sustainable

actions

High High High

United Nations

Global Compact

UNGC is a call for companies to voluntarily align their operations with ten universally accepted

principles in the areas of human rights, labour, environment and anti-corruption, and to take action in

support of United Nations goals and issues. It provides guidance on how to apply the UN Global

Compact Ten Principles throughout supply chains and to integrate sustainability into business strategies

10 Principles focussed on:

· Human Rights

1: Businesses should support and respect the protection of internationally proclaimed human rights

2: make sure that they are not complicit in human rights abuses

· Labour

3: Businesses should uphold the freedom of association and the effective recognition of the right to

collective bargaining

4: Elimination of all forms of forced and compulsory labour

5: Abolition of child labour

6: Elimination of discrimination in respect of employment and occupation.

· Environment

7: Businesses should support a precautionary approach to environmental challenges

8: undertake initiatives to promote greater environmental responsibility

9: encourage the development and diffusion of environmentally friendly technologies

· Anti-Corruption

10: Businesses should work against corruption in all its forms, including extortion and bribery

· What matters in the Global Compact is not how a company

complies with the principles at the moment, but rather that the

company is fully committed to continuous improvement.

· The Global Compact is universal in principle, but flexible and

open to individual adaptation in practice – you decide on the

scope and speed of implementation yourself.

· Prioritising is crucial – not everything is equally important in

the beginning. Make a risk assessment.

· Consider the business effect of each initiative – the Global

Compact is much more than philanthropy, and business motives

often go hand in hand with social engagement.

· Both company and society should benefit

· Competitive advantages of employing the Global Compact as a framework -

Through marketing related benefits

· Making visible the company’s initiatives and tackling new demands and

expectations

· Ensuring a common understanding across cultures

· Opportunity to learn from others and share the company’s own experiences

through extensive network of company members (Key focus is on continuous

improvement)

· Working with the Global Compact in the company’s own way (Flexibility in

approach)

· Allowance for different interpretation and

implementation

· Standards are more general in nature -

Comparison to other companies quantitatively

can therefore be challenging

· Financial overlay of standards not a priority

·Not a good method for evaluating company

performance

7 Practical steps laid out to achieve supply chain sustainability:

1. Commit / 2. Assess

Vision

3. Define

Supplier code of conduct

Supply Chain Scope - Mapping and Prioritising

Sustainability Risks Assessment

Engage with suppliers

4. Implement

Roles and Responsibilities

Internal responsibility

Industry Collaboration

5. Measure / 6. Communicate

Supplier data collection and communication

7. Commit

· To become a member of UNGC annual fee

of USD 1,250 - USD 20,000 depending on

size of company and signatory or participant

status

· No auditable or reporting requirement

Very High -

Human

rights,

Labour

practises and

anti-

corruption

form focus of

guiding

principles

Mid High Mid

Very High - Major

focus on supplier

processes and supply

chain sustainability

Global Reporting

Initiative (GRI)

The GRI Sustainability Reporting Guidelines offer Reporting Principles, Standard Disclosures and an

Implementation Manual for the preparation of sustainability reports by organizations, regardless of

their size, sector or location.

The Guidelines also offer an international reference for all those interested in the disclosure of

governance approach and of the environmental, social and economic performance and impacts of

organizations. The Guidelines are useful in the preparation of any type of document which requires

such disclosure.

2 focus areas of the GRI:

� � · Lays out Reporting Principles and Standard Disclosures

� � · Implementation of reporting standards

· Provide sustainability reporting standards and methodology -

Mostly to be used as a reporting tool for companies

· The Guidelines are useful in the preparation of any type of document which

requires sustainability disclosure.

· Can be used by organizations, regardless of their size, sector or

location.

· Internally focussed - Benefit when company needs starting point for

sustainability reporting

· Highly flexible metrics and standards usage. Companies can tailor the

standards to the reporting and business requirements

· Inexpensive but relevant

· Improves reporting standards

· Mainly a reporting tool - Does not define

processes for improvements in sustainability

actions

· No benchmarking of metrics against industry

· High data / complexity potential due to high

number of metrics and reporting areas

· Internally focussed - Disadvantage as company

could miss valuable interactions with stakeholders

and understanding of broader industry norms

· The GRI Sustainability Reporting Guidelines are periodically

reviewed to provide the best and most up-to-date guidance for

effective sustainability reporting.

· Strong focus on aligning with other methodologies including

OECD and United Nations Global Compact and plans to

strengthen links to IS026000, amongst others

· Concentration on materiality - Ensuring most relevant focus areas

reported on.

· Guidelines are developed through a global multi-stakeholder process involving representatives

from business, labour, civil society, and financial markets, as well as auditors and experts in various

fields; and in close dialogue with regulators and governmental agencies in several countries.

Areas covered:

1. GENERAL STANDARD DISCLOSURES

� � · Strategy and Analysis

� � · Organizational Profile

· � � Identified Material Aspects and Boundaries

· � � Stakeholder Engagement

� � · Report Profile

� � · Governance

� � · Ethics and Integrity

2 SPECIFIC STANDARD DISCLOSURES

� � · Disclosures on Management Approach

� � · Indicators and Aspect-specific Disclosures on Management Approach

· Disclosures on Management Approach

• Category: Economic

• Category: Environmental

• Category: Social

· GRI is a non-profit organisation. Cost

incurred by companies would be those to

align to standards or to put together reports

· No audit requirement

High High High Mid Mid

Guiding principles

of OECD

The OECD Guidelines for Multinational Enterprises (the Guidelines) are recommendations addressed by

governments to multinational enterprises.

The Guidelines aim to ensure that the operations of these enterprises are in harmony with government

policies, to strengthen the basis of mutual confidence between enterprises and the societies in which

they operate, to help improve the foreign investment climate and to enhance the contribution to

sustainable development made by multinational enterprises.

· Create responsible business conduct, backed by governments

that have signed agreement and have committed to promote

· Good guidance for business on minimum requirements for CSR areas · Not legally binding

· Not a certification

· Highly relevant to multinational companies particularly with

operations in developing countries

· Sector specific implementation guidelines set. · Only cost is to implement action set out by

OECD

· The guidelines are available free of charge

· Enterprises should apply high quality standards for accounting, and financial as well as non-

financial disclosure, including environmental and social reporting where they exist.

· No legal / auditable governance exists yet - However future may bring more control High Mid High Mid High

ISO 26000

ISO 26000 includes definitions, background, principles and seven core subjects on social responsibility.

The seven core subjects are; organizational governance, human rights, labour practices,

the environment, fair operating practices, consumer issues and community involvement and

development.

Areas Covered:

Organizational governance

Human rights

Labour practices

Environment

Fair operating practices

Consumer issues

Community involvement and development

· Goal is to contribute to global sustainable development, by

encouraging business and other organizations to practice social

responsibility to improve their impacts on their workers, their

natural environments and their communities

· Assist organizations in contributing to sustainable development.

It is intended to encourage them to go beyond legal

compliance, recognizing that compliance with law is a

fundamental duty of any organization and an essential part of

their social responsibility.

· Promote common understanding in the field of social

responsibility, and to complement other instruments and

initiatives for social responsibility, not to replace them

· All enterprises and organizations, irrespective of industry and geographical

location

· Effective checklist to ensure internal processes cover CSR related areas

· Improved company reputation

· Greater competitive advantage

· Improved transparency through improved reports

· Lack of any certification - You cannot be ISO

26000 certified.

· ISO standards continuously updated with latest industry relevant

thinking

Implementation of ISO 26000:

1. Communication/stakeholder plan, sphere of influence and reporting

2. SR (Social responsibility) issues and actions: determine Relevance, Significance and Priority

3. SR in vision, policy and strategy

4. Increase SR awareness, develop SR competences

5. Integrate SR into existing systems and processes

6. Select and apply proper SR initiatives and instruments

7. Verify SR performance

· Standards can be purchased for small fee · No audit requirement

Very High -

Key focus of

standards on

Social

responsibilit

y

Low Mid Low Mid

ISO 14001

ISO 14001 is the international standard that specifies requirements for an effective environmental

management system (EMS). It provides a framework that an organization can follow, rather than

establishing environmental performance requirements.

Part of the ISO 14000 family of standards on environmental management, ISO 14001 is a voluntary

standard that organizations can certify to. Integrating it with other management systems standards,

most commonly ISO 9001, can further assist in accomplishing organizational goals.

ISO 14001 has the following objectives:

· establish, implement, maintain and improve an environmental

management system

· assure itself of conformity with its stated environmental policy

· demonstrate conformity with this International Standard

1) making a self-determination and self-declaration

2) seeking confirmation of its conformance by parties having an

interest in the organization, such as

customers

3) seeking confirmation of its self-declaration by a party

external to the organization

4) seeking certification/registration of its environmental

management system by an external organization.

· Powerful management tool to improve their environmental performance

· Certification can be obtained

· Reduction of negative impact of activities, processes, products and services on

the environment by using a systematic approach that seeks continual

improvement.

· Any size company can implement principles in ISO 14001

· Provides a planned approach to compliance with regulations and the

consequential reduced risk of prosecutions and fines.

· High cost of certification and mainence - Can

be difficult for small business to afford

· Criticism of ISO 14001- when not accompanied

by significant improvements in environmental

performance. Companies only gain the

certification - But no further improvements made.


thinking

1) Obtain management support

2) Identify legal requirements

3) Define EMS scope

4) Define EMS procedures and processes

5) Implement EMS procedures and processes

6) Perform training and awareness

7) Choose a certification body

8) Operate the EMS; measure and keep records

9) Perform internal audits

10) Perform management review

11) Implement corrective actions

12-1) Certification audit – Stage 1 – Here the certification body will review documentation to

verify that, on paper, that you have addressed all the necessary requirements of the ISO 14001

standard.

12-2) Certification audit – Stage 2 – During this main audit the certification body auditors will

perform the on-site audit where they will review the records you have accumulated by operating

your EMS processes, including your records of internal audits, management review, and corrective

actions.

Average cost of certification is $10,000-

$128,000 and maintenance cost is between

$5,000-$10,000 per year

· Certification provided

Low Mid

Very High -

Key focus of

standards on

Environment

Mid Mid

Balrige Excellence

Framework

The Baldrige Award is a formal recognition of the performance excellence of both public and private

U.S. organizations given by the President of the United States.

The Baldrige Excellence Framework (a framework developed to improve US business performance,

has three parts: (1) the criteria for performance excellence, (2) core values and concepts, and (3)

scoring guidelines.

Focus areas:

Values / Processes / Results / Linkages

For Sustainability - Balrige covers areas related to company future financial sustainability, Ethical

dealings and environmental (societiel) concerns.

The framework serves two main purposes:

· Help organizations assess their improvement efforts, diagnose

their overall performance management system, and identify

their strengths and opportunities for improvement

· Identify Baldrige Award recipients that will serve as role

models for other organizations.

FOR ETHICAL / GREEN areas:

· Identify process gaps and find ways to improve value in these

areas

· Identifying gaps and The coordination of key processes, and feedback

between processes and results, will lead to cycles of improvement.

· Approach adaptability - Framework encourages choosing different tools (ISO

standards, Balanced scorecard, six Sigma etc…) that are most applicable to

the area being worked on.

· Recognition for Balrige Quality Prize

· Framework is much broader than just "Triple

Bottom Line". Focus is more on results and

processes than how to develop a "GREEN" or

"ETHICAL" business. Additional models /

frameworks would also need to be used to fully

cover these areas

· Comparison to other companies not a big focus

areas. More internally focussed

The criteria for performance excellence outlined in the Balrige

framework cover mayn areas - Hjowever there is specific criteria

related to Ethics / Economic and Ecological. These include:

· Valuing people

· Societal responsibility

· Ethics and transparency

· Delivering value and results

Balrige framework assesses criteria for performance excellence within seven critical aspects of

managing and performing, but before these assessing the profile of the organisation to identify

gaps / opportunities

1. Leadership

2. Strategy

3. Customers

4. Measurement, analysis, and knowledge management

5. Workforce

6. Operations

7. Results

SCORING (on the metrics) and PROCESSES strength are assessed to determine success. OUt of

the results of this there are recommended approaches to take to improve.

Baldrige Award Process Fees:

Inition Fee: USD400

Application: USD10,000 - USD20,000

Site Inspection: USD14,000 - USD60,000


High

Very High -

Key focus on

adding

financial

value to

company

Mid

Very High - Key

focus on adding

financial value to

company

High

22 Comparative

Frameworks reviewed

– full comparison

done on TOP 9


Designation Framework Comparatives – No Other Framework was SC Specific and Enterprise-wide across the 3 dimensions

• Dow Jones Sustainability Index

• United Nations Global Compact

• Global Reporting Initiative(GRI)

• Guiding Principles of OECD

• ISO 26001, 14001, 9001 & 31000

• Baldrige Excellence Framework

Model / Corporate

Sustainability StandardGeneral Concept Objectives Business Benefits Disadvantages Relevance Processes & Information Gathering Costs to Companies Documentation / Validation

Ethical

SCORE

Economic

SCORE

Ecological

SCORE

Financial benefit

SCORE

Supply Chain

Applicability SCORE

Dow Jones

Sustainability

Index

DJSI is a standard for corporate sustainability and is the first global index to track the leading

sustainability-driven companies based on RobecoSAM’s analysis of financially material Environmental,

Social, and Governance (ESG) factors and S&P DJI’s index methodology.

Annual assessment on the world’s largest companies via Corporate Sustainability Assessment (CSA)

survey, which uses a consistent, rules-based methodology to convert an average of 600 data points

per company into one overall score.

DJSI provides a benchmark consisting of a balanced allocation of sustainable companies derived from

market benchmarks, closely tracking their respective benchmark in terms of risk-return profile while

also ensuring high sustainability standards. The DJSI targets investors who want to gain exposure to

sustainability leaders, but have certain risk control guidelines that they cannot breach.

S&P ESG Index family is the first global family of smart beta indices based purely on ESG research.

The index methodology uses the same components as the underlying benchmark index but weights the

components purely according to their ESG profile instead of using free-float market-cap weights. The

goal is to achieve better risk-adjusted returns than the underlying benchmark in the long run

The DJSI is an Assessment of companies ACTIONS in driving sustainability initiatives

· Generate long-term shareholder value

· Attention to financial indicators that are relevant in terms of

sustainability

· Focus on sustainability issues that are directly linked to

companies' business success

· Allows Investors to invest in 'sustainable' companies but doesn’t increase risk

higher than normal

· Determines most sustainable companies in each sector and provides very clear

benchmarking for best practise

· Clarifies areas of improvement for companies that can adapt to such

challenges through innovation, quality and productivity to enhance their ability

to generate long-term shareholder value

· Company Marketing as "sustainable" and good investment

· Focus is on impact of sustainability factors on company financial performance -

meaning revenue and value is not compromised (in fact it is increased) through

adoption of standards set out in DJSI.

· Little flexibility on implementation approach

·Must be a large company above certain size to

participate

· Yearly update of questionnaire (CSA) to cover new issues /

sustainability areas

· Changes to yearly questionnaire limited to 10 - 20% of CSA to

ensure comparability between years

· Robust consultation process with industry and independent bodies

to ensure CSA is peer-reviewed and relevant

· Statistically adjusted / sense checked results to remove biasing in

company comparison process - Enabling fair ranking system

Output is based on information provided by the companies directly through RobecoSAM’s

proprietary online assessment tool and various other communication methods

· The world’s largest 2,500 publicly traded companies are invited to participate in the survey,

covering all industries

· Companies are evaluated based on a range of financially relevant sustainability criteria

covering the economic, environmental and social dimensions

· Companies receive a Total Sustainability Score between 0 – 100 and are ranked against other

companies in their industry

· The top 10% of companies within each industry are selected for inclusion in the DJSI World1

· The DJSI identify sustainability leaders across all industries, enabling investors to track their

performance and integrate sustainability considerations into their portfolios

· MSA - Media and Stakeholder Analysis provides overlay of media stories related to how

company handles events relating to ESG issues.

Comparisons in CSA cover ESG - Environmental / Social / Governance aspects

· Cost to take advantage of output reports

and information gathered by RobecoSAM

dependent on requirement

· Statements regarding sustainability policies must be supported by official documents that the

company provides to DJSI

· Most statements regarding actual performance (as opposed to policies) for which publicly

available sources exist are verified against these sources. For standardized data and

reporting

· RobecoSAM looks for third-party verification or assurance in addition to the performance

figures.

· The Media and Stakeholder Analysis (MSA), which is based on data provided by specialized

media monitoring company RepRisk, serves as a cross-check between a company’s stated

policies and its actual involvement in and response to violations, law suits and controversies.

· Deloitte provides annual assurance on the application of the CSA and Corporate

Sustainability Monitoring methodology as described in the DJSI Guidebooks

High

Very High -

Focus of

model is on

long term

financial

performance

through

sustainable

actions

High High High

United Nations

Global Compact

UNGC is a call for companies to voluntarily align their operations with ten universally accepted

principles in the areas of human rights, labour, environment and anti-corruption, and to take action in

support of United Nations goals and issues. It provides guidance on how to apply the UN Global

Compact Ten Principles throughout supply chains and to integrate sustainability into business strategies

10 Principles focussed on:

· Human Rights

1: Businesses should support and respect the protection of internationally proclaimed human rights

2: make sure that they are not complicit in human rights abuses

· Labour

3: Businesses should uphold the freedom of association and the effective recognition of the right to

collective bargaining

4: Elimination of all forms of forced and compulsory labour

5: Abolition of child labour

6: Elimination of discrimination in respect of employment and occupation.

· Environment

7: Businesses should support a precautionary approach to environmental challenges

8: undertake initiatives to promote greater environmental responsibility

9: encourage the development and diffusion of environmentally friendly technologies

· Anti-Corruption

10: Businesses should work against corruption in all its forms, including extortion and bribery

· What matters in the Global Compact is not how a company

complies with the principles at the moment, but rather that the

company is fully committed to continuous improvement.

· The Global Compact is universal in principle, but flexible and

open to individual adaptation in practice – you decide on the

scope and speed of implementation yourself.

· Prioritising is crucial – not everything is equally important in

the beginning. Make a risk assessment.

· Consider the business effect of each initiative – the Global

Compact is much more than philanthropy, and business motives

often go hand in hand with social engagement.

· Both company and society should benefit

· Competitive advantages of employing the Global Compact as a framework -

Through marketing related benefits

· Making visible the company’s initiatives and tackling new demands and

expectations

· Ensuring a common understanding across cultures

· Opportunity to learn from others and share the company’s own experiences

through extensive network of company members (Key focus is on continuous

improvement)

· Working with the Global Compact in the company’s own way (Flexibility in

approach)

· Allowance for different interpretation and

implementation

· Standards are more general in nature -

Comparison to other companies quantitatively

can therefore be challenging

· Financial overlay of standards not a priority

·Not a good method for evaluating company

performance

7 Practical steps laid out to achieve supply chain sustainability:

1. Commit / 2. Assess

Vision

3. Define

Supplier code of conduct

Supply Chain Scope - Mapping and Prioritising

Sustainability Risks Assessment

Engage with suppliers

4. Implement

Roles and Responsibilities

Internal responsibility

Industry Collaboration

5. Measure / 6. Communicate

Supplier data collection and communication

7. Commit

· To become a member of UNGC annual fee

of USD 1,250 - USD 20,000 depending on

size of company and signatory or participant

status

· No auditable or reporting requirement

Very High -

Human

rights,

Labour

practises and

anti-

corruption

form focus of

guiding

principles

Mid High Mid

Very High - Major

focus on supplier

processes and supply

chain sustainability

Global Reporting

Initiative (GRI)

The GRI Sustainability Reporting Guidelines offer Reporting Principles, Standard Disclosures and an

Implementation Manual for the preparation of sustainability reports by organizations, regardless of

their size, sector or location.

The Guidelines also offer an international reference for all those interested in the disclosure of

governance approach and of the environmental, social and economic performance and impacts of

organizations. The Guidelines are useful in the preparation of any type of document which requires

such disclosure.

2 focus areas of the GRI:

� � · Lays out Reporting Principles and Standard Disclosures

� � · Implementation of reporting standards

· Provide sustainability reporting standards and methodology -

Mostly to be used as a reporting tool for companies

· The Guidelines are useful in the preparation of any type of document which

requires sustainability disclosure.

· Can be used by organizations, regardless of their size, sector or

location.

· Internally focussed - Benefit when company needs starting point for

sustainability reporting

· Highly flexible metrics and standards usage. Companies can tailor the

standards to the reporting and business requirements

· Inexpensive but relevant

· Improves reporting standards

· Mainly a reporting tool - Does not define

processes for improvements in sustainability

actions

· No benchmarking of metrics against industry

· High data / complexity potential due to high

number of metrics and reporting areas

· Internally focussed - Disadvantage as company

could miss valuable interactions with stakeholders

and understanding of broader industry norms

· The GRI Sustainability Reporting Guidelines are periodically

reviewed to provide the best and most up-to-date guidance for

effective sustainability reporting.

· Strong focus on aligning with other methodologies including

OECD and United Nations Global Compact and plans to

strengthen links to IS026000, amongst others

· Concentration on materiality - Ensuring most relevant focus areas

reported on.

· Guidelines are developed through a global multi-stakeholder process involving representatives

from business, labour, civil society, and financial markets, as well as auditors and experts in various

fields; and in close dialogue with regulators and governmental agencies in several countries.

Areas covered:

1. GENERAL STANDARD DISCLOSURES

� � · Strategy and Analysis

� � · Organizational Profile

· � � Identified Material Aspects and Boundaries

· � � Stakeholder Engagement

� � · Report Profile

� � · Governance

� � · Ethics and Integrity

2 SPECIFIC STANDARD DISCLOSURES

� � · Disclosures on Management Approach

� � · Indicators and Aspect-specific Disclosures on Management Approach

· Disclosures on Management Approach

• Category: Economic

• Category: Environmental

• Category: Social

· GRI is a non-profit organisation. Cost

incurred by companies would be those to

align to standards or to put together reports


High High High Mid Mid

Guiding principles

of OECD

The OECD Guidelines for Multinational Enterprises (the Guidelines) are recommendations addressed by

governments to multinational enterprises.

The Guidelines aim to ensure that the operations of these enterprises are in harmony with government

policies, to strengthen the basis of mutual confidence between enterprises and the societies in which

they operate, to help improve the foreign investment climate and to enhance the contribution to

sustainable development made by multinational enterprises.

· Create responsible business conduct, backed by governments

that have signed agreement and have committed to promote

· Good guidance for business on minimum requirements for CSR areas · Not legally binding

· Not a certification

· Highly relevant to multinational companies particularly with

operations in developing countries

· Sector specific implementation guidelines set. · Only cost is to implement action set out by

OECD

· The guidelines are available free of charge

· Enterprises should apply high quality standards for accounting, and financial as well as non-

financial disclosure, including environmental and social reporting where they exist.

· No legal / auditable governance exists yet - However future may bring more control High Mid High Mid High

ISO 26000

ISO 26000 includes definitions, background, principles and seven core subjects on social responsibility.

The seven core subjects are; organizational governance, human rights, labour practices,

the environment, fair operating practices, consumer issues and community involvement and

development.

Areas Covered:

Organizational governance

Human rights

Labour practices

Environment

Fair operating practices

Consumer issues

Community involvement and development

· Goal is to contribute to global sustainable development, by

encouraging business and other organizations to practice social

responsibility to improve their impacts on their workers, their

natural environments and their communities

· Assist organizations in contributing to sustainable development.

It is intended to encourage them to go beyond legal

compliance, recognizing that compliance with law is a

fundamental duty of any organization and an essential part of

their social responsibility.

· Promote common understanding in the field of social

responsibility, and to complement other instruments and

initiatives for social responsibility, not to replace them

· All enterprises and organizations, irrespective of industry and geographical

location

· Effective checklist to ensure internal processes cover CSR related areas

· Improved company reputation

· Greater competitive advantage

· Improved transparency through improved reports

· Lack of any certification - You cannot be ISO

26000 certified.


thinking

Implementation of ISO 26000:

1. Communication/stakeholder plan, sphere of influence and reporting

2. SR (Social responsibility) issues and actions: determine Relevance, Significance and Priority

3. SR in vision, policy and strategy

4. Increase SR awareness, develop SR competences

5. Integrate SR into existing systems and processes

6. Select and apply proper SR initiatives and instruments

7. Verify SR performance

· Standards can be purchased for small fee · No audit requirement

Very High -

Key focus of

standards on

Social

responsibilit

y

Low Mid Low Mid

ISO 14001

ISO 14001 is the international standard that specifies requirements for an effective environmental

management system (EMS). It provides a framework that an organization can follow, rather than

establishing environmental performance requirements.

Part of the ISO 14000 family of standards on environmental management, ISO 14001 is a voluntary

standard that organizations can certify to. Integrating it with other management systems standards,

most commonly ISO 9001, can further assist in accomplishing organizational goals.

ISO 14001 has the following objectives:

· establish, implement, maintain and improve an environmental

management system

· assure itself of conformity with its stated environmental policy

· demonstrate conformity with this International Standard

1) making a self-determination and self-declaration

2) seeking confirmation of its conformance by parties having an

interest in the organization, such as

customers

3) seeking confirmation of its self-declaration by a party

external to the organization

4) seeking certification/registration of its environmental

management system by an external organization.

· Powerful management tool to improve their environmental performance

· Certification can be obtained

· Reduction of negative impact of activities, processes, products and services on

the environment by using a systematic approach that seeks continual

improvement.

· Any size company can implement principles in ISO 14001

· Provides a planned approach to compliance with regulations and the

consequential reduced risk of prosecutions and fines.

· High cost of certification and mainence - Can

be difficult for small business to afford

· Criticism of ISO 14001- when not accompanied

by significant improvements in environmental

performance. Companies only gain the

certification - But no further improvements made.


thinking

1) Obtain management support

2) Identify legal requirements

3) Define EMS scope

4) Define EMS procedures and processes

5) Implement EMS procedures and processes

6) Perform training and awareness

7) Choose a certification body

8) Operate the EMS; measure and keep records

9) Perform internal audits

10) Perform management review

11) Implement corrective actions

12-1) Certification audit – Stage 1 – Here the certification body will review documentation to

verify that, on paper, that you have addressed all the necessary requirements of the ISO 14001

standard.

12-2) Certification audit – Stage 2 – During this main audit the certification body auditors will

perform the on-site audit where they will review the records you have accumulated by operating

your EMS processes, including your records of internal audits, management review, and corrective

actions.

Average cost of certification is $10,000-

$128,000 and maintenance cost is between

$5,000-$10,000 per year

· Certification provided

Low Mid

Very High -

Key focus of

standards on

Environment

Mid Mid

Balrige Excellence

Framework

The Baldrige Award is a formal recognition of the performance excellence of both public and private

U.S. organizations given by the President of the United States.

The Baldrige Excellence Framework (a framework developed to improve US business performance,

has three parts: (1) the criteria for performance excellence, (2) core values and concepts, and (3)

scoring guidelines.

Focus areas:

Values / Processes / Results / Linkages

For Sustainability - Balrige covers areas related to company future financial sustainability, Ethical

dealings and environmental (societiel) concerns.

The framework serves two main purposes:

· Help organizations assess their improvement efforts, diagnose

their overall performance management system, and identify

their strengths and opportunities for improvement

· Identify Baldrige Award recipients that will serve as role

models for other organizations.

FOR ETHICAL / GREEN areas:

· Identify process gaps and find ways to improve value in these

areas

· Identifying gaps and The coordination of key processes, and feedback

between processes and results, will lead to cycles of improvement.

· Approach adaptability - Framework encourages choosing different tools (ISO

standards, Balanced scorecard, six Sigma etc…) that are most applicable to

the area being worked on.

· Recognition for Balrige Quality Prize

· Framework is much broader than just "Triple

Bottom Line". Focus is more on results and

processes than how to develop a "GREEN" or

"ETHICAL" business. Additional models /

frameworks would also need to be used to fully

cover these areas

· Comparison to other companies not a big focus

areas. More internally focussed

The criteria for performance excellence outlined in the Balrige

framework cover mayn areas - Hjowever there is specific criteria

related to Ethics / Economic and Ecological. These include:

· Valuing people

· Societal responsibility

· Ethics and transparency

· Delivering value and results

Balrige framework assesses criteria for performance excellence within seven critical aspects of

managing and performing, but before these assessing the profile of the organisation to identify

gaps / opportunities

1. Leadership

2. Strategy

3. Customers

4. Measurement, analysis, and knowledge management

5. Workforce

6. Operations

7. Results

SCORING (on the metrics) and PROCESSES strength are assessed to determine success. OUt of

the results of this there are recommended approaches to take to improve.

Baldrige Award Process Fees:

Inition Fee: USD400

Application: USD10,000 - USD20,000

Site Inspection: USD14,000 - USD60,000


High

Very High -

Key focus on

adding

financial

value to

company

Mid

Very High - Key

focus on adding

financial value to

company

High

▪ General Concept

▪ Objectives

▪ Business Benefits / Disadvantages

▪ Relevance

▪ Process & Information Gathering

▪ Costs

▪ Documentation / Validation

Comparative Elements Reviewed


APICS Body of Knowledge was fully leveraged in creating content

Leveraging body of knowledge from APICS and the community

▪ Incorporates body of knowledge from both SCOR and APICS learning systems

▪ Unique content with Similar structure to ISO, Baldrige, Dow Jones Sustainability Index, etc.

▪ Aims to empower an organization to reach it’s goals, improve results, and be more competitive in today’s global business world – through supply chain excellence

SUPPLY CHAIN MANAGEMENT

Plan Source Make Deliver Return Enable

Leadership OnDemand CredentialingPrinciples OnDemand

Supply Chain Learning Center

Co

mp

reh

en

siv

eTa

rge

ted

Emerging Trends

SUPPLY CHAIN

OPERATIONS REFERENCE

SCOR-Professional ASCM-Enterprise


Structure of this document

Section A – ASCM Enterprise

Criteria, Questions &

Standards

Section B - Enablers

Section C – Stakeholder

Engagement

Section D - Scoring

1.Process Excellence

2. Ethical Excellence

3. Ecological Excellence

4. Economic Excellence

P

S

M

D

R Criteria

4. Key Questions

3. Metrics

1. Standards

E

1. Governance

2. Strategy

3. Technology

4. Workforce

Criteria

3. Key Questions

1. Customer

2. Supplier

3. Community

4. Government

Criteria

2. Stakeholders & Enablement

1. Key Processes

Pilot Validation

session & Planning

Credentials process,

pricing & training

opportunities

1. Standards

2. Evidence

2. Evidence

3. Key Questions

1. Standards

2. Evidence


ASCM-Enterprise (ASCM-E) Designation

Comprehensive evaluation of a supply chain results

achieved across three dimensions:

Ethical

Criteria focuses on these areas of an organization’s supply chain:anti-corruption and anti-trust, codes of conduct, confidentiality ofinformation, human rights and labor practices, intellectualproperty and patents, and responsible marketing and salesengagement.

Economic

Criteria focuses on business integrity and company reputation,board and corporate leadership, enterprise risk and crisismanagement, materiality index, responsible tax, supply chainstrategy and differentiated operating models.

Ecological

Criteria focuses on these areas of an organization’s supply chain:circular economy, climate strategy, energy, water and waste,material usage, and, product life-cycle stewardship.


Process Excellence – Criteria List

1.1. Facility Master Planning

1.2. Lean Planning

1.3 Supply Network Planning

1.4 Modal Optimization

1.5 Extend Inventory Planning using Collaboration (Key Suppliers and Customers)

1.6 Supply Chain & Network Optimization

1.7 Improve S&OP process

1.8 Optimize Sourcing Decisions to Local Source Point

1.9 Supplier Research

1.10 Responsible Sourcing

1.11 Sustainable Sourcing

1.12 Total Cost to Serve

1.13 Supplier Diversity

1.14 Lean Manufacturing

1.15 Carcass Disassembly (Industry Specific)

1.16 Manufacturing Quality Improvements for Return Reduction

1.17 Waste Management & Disposal

1.18 Transportation Optimization

1.19 Process Invoice quote, receive, enter and validate

1.20 Perfect Pick Putaway

1.21 Efficient Pack Product

1.22 Load Vehicle Optimization and Digital Generation of shipping documents

1.23 Electronic Returns Tracking and Returns Management

1.24 Continuous Improvement


Process Excellence - SOURCE1.10 Responsible Sourcing

1.10.1 Standards

a. Minimum ethical standards to be demonstrated by suppliers include the following key areas*

▪ Compliance to laws and regulations of the ‘host’ country or overarching corporate Policy

▪ Recognise and respect the right of their workforce to freedom of association

▪ Prohibit the use of child labour

▪ Do not tolerate inhumane treatment of their workforce, including any form of abuse or intimidation

▪ Protect the safety and health of their workforce. This includes the maintenance of a healthy work environment which has a high emergency preparedness with reduced potential for occupational related diseases and injuries.

▪ Make a contribution to the economic, social and educational well-being of the communities where they operate

▪ Recognise the cultural heritage and traditions of indigenous communities

▪ Be committed to transparency and accountability in their business dealings, supported by confidential “whistleblowing” channels.

▪ Adherence to anti-corruption Policy

▪ Adherence to anti-discrimination Policy

▪ Adherence to anti-harassment Policy

*To be included within the assessment done for new suppliers and periodically for existing suppliers


Process Excellence - SOURCE1.10 Responsible Sourcing

1.10.2 Evidence

• Fair trade code of conduct

• Supplier Score card / Audit results

• Supplier selection process overview and assessment criteria document

• Contracts / SOPs with suppliers where clear assessment of ecological and ethical standards is in place / Raw Materials Sourcing Criteria

• Copy of applicable environmental / social responsibility certifications for the enterprise – E.G. ISO accreditations or proof ofimplementation (Quality, Environment, Risk, Social Responsibility)


Ethical Excellence – Criteria List

2.1 Anti-Corruption and Anti-Trust

2.2 Codes of Conduct

2.3 Confidentiality of Information

2.4 Intellectual Property and Patents

2.5 Human Rights and Labor Practices

2.6 Responsible Marketing and Trading Partner Engagement

Ecological Excellence – Criteria List

3.1 Energy, Water and Waste

3.2 Material Usage and Restriction

3.3 Climate Strategy

3.4 Product Lifecycle Stewardship

3.5 Circular Economy

Economic Excellence – Criteria List

4.1 Business Integrity and Company Reputation

4.2 Board and Corporate Leadership

4.3 Enterprise Risk and Crisis Management

4.4 Materiality Index

4.5 Responsible Tax

4.6 Supply Chain Strategy and Differentiated Operating Models


Strategy – Criteria List

1.1 Research and Innovation

1.2 Supply Chain Strategy and Execution

1.3 Vision and Core Values

Governance – Criteria List

2.1 Leadership

2.2 Process Governance

2.3 Health, Safety and Environmental Management

2.4 Risk Management and Transparency

2.5 Regulatory and compliance

2.6 Contracts & agreements

2.7 Adherence`

Workforce – Criteria List

3.1 Diversity and inclusion

3.2 Engagement

3.3 Empowerment

3.4 Skills and competencies

3.5 Learning and development

3.6 Health and Safety

3.7 Workforce feedback and grievance

Technology and Knowledge Management– Criteria List

4.1 Knowledge Management

4.2 Technology Management

4.3 Information Management


ASCM-Enterprise (ASCM-E) Designation

Comprehensive evaluation of a supply chain results

achieved across three dimensions:

Ethical

Criteria focuses on these areas of an organization’s supply chain: anti-corruption and anti-trust, codes of conduct, confidentiality of information, human rights and labor practices, intellectual property and patents, and responsible marketing and sales engagement.

Economic

Criteria focuses on business integrity and company reputation, board and corporate leadership, enterprise risk and crisis management, materiality index, responsible tax, supply chain strategy and differentiated operating models.

Ecological

Criteria focuses on these areas of an organization’s supply chain: circular economy, climate strategy, energy, water and waste, material usage, and, product life-cycle stewardship.


Designation Scoring


ASCM-E Registration Process (Pilot)

Client

uploads key

documents

Company

Registration

Form

Client

makes

Payment

Pre-Desktop

Check

Desktop

Review

Project

Scoping

Client

Confirmation

➔ Confirm document:

*Completeness

*Format

*Clarity

➔ Review document content

➔ Request additional

information

➔3 Year Plan

Y1 – Evaluation

Y2 +Y3 – Maintenance

➔Pricing structure (Develop and

confirm with Evaluator)

➔ Proposed schedule and

locations

➔ Evaluator team

➔ Instructions for evaluation

Evaluator

Scoping

confirmation

On-site Examination

process begins


ASCM-E Evaluation Process

Establish

evaluation

priorities

Confirm

evaluation plan

with client

On site Standards Review against

evidence points

Receive and review

additional information

from client

Request additional

information

(Evidence Points)

Key Clarification Meetings Held

Set up

evaluation

sessions

Communicate

initial evaluation

results

Receive new information &

Review results in question

Communicate final

evaluation results

Consolidate data

and calculate

evaluation results

All

results

OK?

No Yes

OF

F-S

ITE

: P

re-e

valu

ati

on

mo

biliz

ati

on

Prepare initial results

report including

recommendations and

corrective actions

OF

F-S

ITE

: R

esu

lts a

nd

acti

on

s

ON

-SIT

E:

Revie

w w

ith

Clie

nt

Committee considers

recommendation and

finalizes results


IF interested in a copy of the standards –

Leave your business card with me or my

colleague, Grant

Thank you!

Documents

ASCM-ENTERPRISE · 2019-06-14 · • “Our board has been pushing for a more formalized plan to ensure our ... • “I feel as though we don’t develop any innovative solutions