Integrating CR/Sustainability into business strategy

People: The Social Side
NICK ASTER
Founder & Publisher
TriplePundit.com
MARY CAPOZZI
Sr.Dir, Corporate Responsibility
Best Buy
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Social Responsibilty
• Definitions
• Societal benefit, ethics, passive, proactive...
• What does this have to do with
Sustainability?
• It is sustainability...
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People are Stakeholders
• Beyond Shareholders - Customers
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People are Stakeholders
• Beyond Shareholders - Employees
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People are Stakeholders
• Beyond Shareholders - Supply Chain
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People are Stakeholders
• Beyond Shareholders - Investors
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People are Stakeholders
• Beyond Shareholders - Community
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People are Stakeholders
• Beyond Shareholders
• Government, activists, fans, local groups,
competition, partners, future generations...
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People are Stakeholders
• Engagement & Reporting - Why?
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Compliance
Goodwill/PR
Reporting - GRI etc...
The Bottom Line
“A significant number of studies have shown no negative influence on shareholder results from CSR but rather, a
slightly positive correlation with improved shareholder returns”. (Carpenter, Bauer, & Erdogan, 2010)
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CSR 2.0
• Communicating Success,
Dealing with Crisis
• Conversation 2.0 - Losing control of your brand and loving it
• Retailers Who Get it
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CSR 2.0
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Best Buy
YOUTUBE VIDEO
http://www.youtube.com/watch?v=87pYpefHlJE
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Best Buy: A Glance
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Where we’ve been…
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1966: Founded by Dick Schulze as Sound of Music, Inc., an audio components systems retailer
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1980s: The company rapidly expands its product offerings, changes its name to Best Buy and goes public on the
NYSE: BBY
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2001: Best Buy begins global expansion and acquires Future Shop, Canada's largest, consumer electronics
retailer
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And where we are TODAY.
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Best Buy and its joint venture partners operate stores in the U.S., Canada, Mexico, China, U.K., Spain, France,
Germany, Netherlands, Portugal, Sweden, Belgium , and Ireland.
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Factory operations in China, U.S., Mexico, South Korea, India and Malaysia.
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Best Buy’s 180,000 employees work create a leading multi-channel global retailer and developer of technology
products and services.
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Best Buy: CSR
Integrating CR/Sustainability into business strategy - Seeking New Opportunities
for Best Buy
§ New Businesses
§ New Markets
§ New Customer Demands
§ New Competitive Challenges
§ Enhancing Reputation / Brand
Being a leader in Sustainability/CR engenders trust more than any other
corporate effort.
(Reputation Institute; reputation tracker data, 2008)
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Understand
Current State
Importance to Stakeholders
Best Buy: Strategic Dev
High
Prioritize
Low
Develop Strategy, Goals
& Metrics
Influence on Business Strategy
• 40+ Internal Interviews
• 20+ External Stakeholder
Interviews
• Key Global Trends
• Competitor Benchmarking
• Identified business-relevant
sustainability issues
• Applied scoring system to map
in 4 box
• Define Strategy
• Develop goals
• Create high-level action plans
• Build communication plan
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Best Buy: Strategic Dev
Internal Interviews
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Executive management
Sustainability practitioners
International Management
All Advisory Team Members
External Interviews
• Vendors
• Member organizations
• International Human Rights
Activists
• Environmental Organizations
• Social Responsible Investors
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Best Buy: Leadership
Focus Area
Objective
Product Stewardship
Best Buy will drive growth, brand value and customer loyalty by leading the CE
industry as product steward across the value chain, from product design to end of
life solutions and services.
Sustainability Solutions
Best Buy will create customers value propositions that help them live more
sustainable lives, driving growth and profitability for the company.
Access through connection
Best Buy will build business models that enables people who don’t have it today
to access all the benefits of the connected world.
Workplace: Opportunities
and Inspiration
Best Buy will be a preferred place of employment because of our sustainability
efforts, enabling us to attract, retain and develop a talented workforce that can
deliver against business and sustainability ambitions.
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Best Buy: Governance
CEO and Board
Ultimate oversight of BBY
CR/sustainability performance
Ethics and Compliance
Access Focus Team
Drive initiatives and
programs, improve
performance, establish policy,
goals and metrics
Field Employee and
Business Networks,
Consumer Insight,
CR/Sustainability Executive Team
Responsible for setting sustainability
policy, regularly reviewing sustainability
performance, performance outcomes
Sustainability Advisory Team
Formulating strategy, policy, goals,
metrics, stakeholder engagement,
setting management standards for
CR/Sustainability
Product Stewardship Focus
Team
Drive initiatives and programs,
improve performance, establish
policy, goals and metrics
Sustainability Solutions
Focus Team
Drive initiatives and programs,
improve performance, establish
policy, goals and metrics
Integrate sustainability goals
throughout the business,
innovate ideas and
approaches, reach the
consumer, develop ideas
based on consumer insight
External Stakeholders
Inspiring workplace
Focus Team
Drive initiatives and
programs, improve
performance, establish policy,
goals and metrics
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