This presentation explores what Corporate Social Responsibility (CSR) has to do with IT and how IT Service Management best practice can assist organisations in support of a strategic CSR policy.

1. What’s CSR Got To Do With IT?
Karen Ferris
Director
Macanta Consulting

2. What’s CSR Got To Do With IT?

3. Outline
✶ What is CSR?
✶ Who does it concern?
✶ Why is it high on the CEO agenda?
✶ The benefits of CSR
✶ Management of sustainability today
✶ Pressure on the CIO
✶ What’s ITSM got to do with it?
✶ Conclusion and questions

4. What is CSR?
CSR is about how businesses align their values and behaviour with the
expectations and needs of stakeholders – not just customers and
investors, but also employees, suppliers, communities, regulators,
special interest groups and society as a whole. CSR describes a
company's commitment to be accountable to its stakeholders.
www.csrnetwork.com

5. Who Does It Concern?
Socioeconomic
Improve energy
well-being of the
I.T.
Reputation for efficiency, reduce
regions in which
CSR is becoming carbon footprint,
they operate and
an important tool manage
the people they
in attracting and recyclables and
employ
retaining talent waste in the supply
chain

6. Why is it High on the CEO Agenda?
93% of CEOs believe that sustainability issues will
be critical to the future success of their business.
72% of CEOs cite “brand, trust and reputation” as
one of the top three factors driving them to take
action on sustainability issues. Revenue growth and
cost reduction is second with 44%.
Accenture 2010

7. TOP TEN DRIVERS FOR CSR
1. Company culture / values
2. Reputation
3. Brand image
4. Attracting and retaining employees
5. Profitability
Green Capital and CSR Sydney
What’s CSR Got To Do With IT?

8. TOP TEN DRIVERS FOR CSR
6. Securing long term viability in the
market place
7. Competitive advantage
8. Improving energy efficiency
9. Risk management
10. Customer demand
Green Capital and CSR Sydney
What’s CSR Got To Do With IT?

9. Benefits of CSR
1. Improved brand image
2. Risk reduction
3. Attracting good staff
4. Long term viability in the market place
5. Product / market innovation
6. Higher staff retention
7. Improved bottom line
8. Cost savings
9. Increased productivity
10. Reduced cost of supply chain management
11. Share price increase
Green Capital and CSR Sydney

10. Companies where sustainability is a top ten item
in their CEO’s agendas are twice as likely as
others to integrate sustainability into their
companies’ business practices.
This suggests that senior executives who want to
reap the benefits of incorporating sustainability
into their companies overall strategies must take
an active role in the effort.
McKinsey & Company 2010

11. They (CIO and IT) will be called upon to gather, analyse
and communicate massive amounts of data – some of
which is not currently being collected – and ensure their
accuracy, reliability and relevance.
Companies need to collect and share information across
a wide array of channels and with multiple constituents to
ensure that customer – and partner – needs are met, not
to mention the needs of the NGOs, governments and
community organisations
IBM 2008

12. The Pressure Is On!
CUSTOMERS EMPLOYEES
INVESTORS
SUPPLIERS
PARTNERS CIO

13. The Pressure Is On!
CUSTOMERS EMPLOYEES
Environmental and social policies
International trade practices
Product health and safety records
Procurement and sourcing policies
INVESTORS
Product composition and lifecycle
management
SUPPLIERS Community activities
Treatment of employees
CIO
PARTNERS

14. The Pressure Is On!
CUSTOMERS EMPLOYEES
Organisation in-line with personal values
Meeting CSR obligations
INVESTORS
SUPPLIERS
CIO
PARTNERS

15. The Pressure Is On!
CUSTOMERS EMPLOYEES
Values in line
CO2 emissions INVESTORS
SUPPLIERS Product impact
CIO
PARTNERS

16. The Pressure Is On!
CUSTOMERS EMPLOYEES
CSR factors driving
investment decisions
INVESTORS
SUPPLIERS
CIO
PARTNERS

17. The CIO Agenda

18. Integration and Alignment
• Take inventory to align IT practices with that of the
company’s CSR mission statement Macavinta 2010
• The higher the level of integration, the increased ability
of the organisation to realise the benefits
• Organisations with a higher level of integration of CSR
said they experienced financial benefits such as high
profitability, cost savings and share price increase
• Level of negative impacts or risk reduced when level of
integration increased Green Capital & CSR Sydney 2008

19. CSR Value Curve Growth
platform
Values-
based self Efficiency Access to
regulation new markets,
Strategic new
philanthropy Measureable partnerships
Incorporates cost savings or product/
Legal and the company’s through service
compliance value system efficient or win- innovations
Alignment of and/or code of win scenarios that generate
charitable conduct to revenue
activities with guide
social issues behaviour
Adherence to that support
law in the business
countries of objectives
production,
operation and
distribution
Source: IBM Institute for Business Value (2008)

20. Transparency

21. Information Explosion
Source: IBM Institute for Business Value 2008

22. CIO
Carbon Information Officer
• Accuracy, reliability and relevance
• Communicating compliance with regulations will require
quantifying, analysing and reporting including:
• Carbon and environmental impacts
• The conduct of a vast number of suppliers
• Sourcing and content of each product and
component

23. Green Wash

24. Employees
CIOs will be instrumental in creating an
environment for company wide engagement and
collaboration. IBM
Millenials expect to be convinced that employers
genuinely care about a greater good beyond
financial profit – and to do that from inside the
business. Jordon Walker

25. Green IT
In Australia ICT contributes 2.7% of CO2 emissions (ACS 2010)
Comatose equipment can account for as much as
15-30% of the total IT equipment in many data
centres (Brill & Stanley, 2009)
Server utilisation can be as low as 2-4%
(Kadam, 2010)

26. What’s ITSM Got To Do With It?
Alignment & Integration
Transparency
Employees
Green IT

27. Alignment and Integration
CSR

28. Alignment and Integration
Mission imperatives
Service Strategy Compliance
Trends
Intangible benefits
• Inventories Strategic or business fit
Define • Business Case
Social responsibilities
Innovation
• Value Proposition
Analyse • Prioritisation
Outcomes for existing
services:
• Service Portfolio
Approve • Authorisation Retain
Replace
Rationalise
Refactor
• Communication
Charter • Resource allocation
Renew
Retire
No Greenwash!

29. Transparency
"Consumers are asking
who is behind the brand,
so we have to make it
visible."
Paul Bulcke, Nestlé S.A. 2010

30. Employees
"Environmental, social and
governance issues are
crucial to our employee
value proposition."
Luiz Ernesto Gemignani, Promon S.A. 2010

31. Green IT

32. Sun Microsystems
• 4 locations – 3 months
• 6199 comatosed devices
• 430 pallets
• 4100+ servers
• 64% powered on and running 24x7

33. Conclusion
✶ Use Service Management (and ITIL) to:
• Align IT CSR with that of the business
• Embed CSR into the fabric of IT
• Provide transparency of information
• Drive employee engagement
• Reduce the impact on the environment
✶ The results:
• Improved reputation and brand image
• Reduced risk
• Increased productivity & profitability
• Attraction and retention of good staff
• Long term viability in the market place

34. What’s CSR Got To Do With IT?