Yearbook 2011-2012 by Think Plus

EUROCHARITY YEARBOOK 2011/12 LEADERSHIP FOR SUSTAINABILITY

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

The EuroCharity Yearbook 2011/12 - Leadership for Sustainability has been printed locally by PressiousArvanitidis S.A., an FSC¨ Certified Company and EuroCharity corporate member that received its certification in 2010 through Bureau Veritas, a global leader in conformity assessment and certification services. This means that the printing process and paper used for producing this publication comform to FSC¨ standards. FSC¨ develops policy and standards to support responsible forest management world-wide. These include guidelines for certification, accreditation, trademark use and governance, among other activities related to the FSC¨ system. In many forests around the world, logging still contributes to habitat destruction, water pollution, displacement of indigenous peoples and violence against people who work in the forest and the wildlife that dwells there. Many consumers of wood and paper, and many forest products companies believe that the link between logging and these negative impacts can be broken, and that forests can be managed and protected at the same time. FSC¨ certification is one way to improve the practice of forestry. The FSC¨'s international head office is located in Bonn, Germany. To learn more about the FSC¨ Principles and Criteria that describe how the forests have to be managed to meet the social, economic, ecological, cultural and spiritual needs of present and future generations, please visit www.fsc.org.

ISBN 978-960-99967-1-6

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

Publisher: EuroCharity 2, K. Palama Street & 161, Vouliagmenis Avenue GR-172 37 Dafni, Athens, Greece Tel.: +30 210 927 1110-29 Fax: +30 210 927 1119 info@eurocharity.org www.eurocharity.eu Creative design and layout: busybuilding info@busybuilding.com www.busybuilding.com Printing and binding: PressiousArvanitidis S.A. An FSCÂ¨ Certified Company (FSCÂ¨ licence no.: FSC-C101658) info@pressious.com www.pressious.com Carbon footprint and offsetting: Green Evolution S.A. info@green-evolution.eu www.green-evolution.eu Copy editing: Christina V. Deligianni

Publication series: EuroCharity Yearbook Publication title: EuroCharity Yearbook 2011/12 Leadership for Sustainability Copyright notice: All rights reserved. The material in this publication is copyrighted. No part of this publication may be reproduced in any form or by any means (electronic, mechanical, photocopied, or otherwise), or stored in any retrieval system of any nature without prior written permission from the publisher. EuroCharity encourages the dissemination of the content for educational purposes. The content may be quoted and used provided there is proper attribution and written permission from the publisher. Disclaimer: This publication contains general information only and should not be used as a basis for any decision or action that may affect your finances or your business. No guarantee or warranty, either expressed or implied, is given with regards to the accuracy or completeness of the information and data in this publication. The information provided herein does not constitute investment advice. The inclusion of company names and/or examples does not constitute an endorsement of the profiled companies by EuroCharity. EuroCharity shall not assume responsibility for any consequences or damages resulting directly or indirectly from the use of this publication.

ISBN 978-960-99967-1-6 ISSN 1792-9520 Published in June 2012 by EuroCharity.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

TABLE OF CONTENTS

Table of contents

P12 PUBLISHER'S NOTE Michael Spanos and Peter Michel Heilmann EuroCharity Leadership for Sustainability

P26 Mark Drewell CEO Globally Responsible Leadership Initiative Reflections on globally responsible leadership Ð It's time to flatten the building

P14 FOREWORD His All-Holiness, Bartholomew, Archbishop of Constantinople-New Rome and Ecumenical Patriarch

P30 Dr. Cobus de Swardt Managing Director Transparency International People, transparency, public accountability

P18

KEYNOTE ARTICLES P20 Georg Kell Executive Director United Nations Global Compact Blueprint for corporate sustainability leadership

P24 Antonio Tajani Vice-President of the European Commission Commissioner for Industry and Entrepreneurship Sustainable industry Ð Aiming at growth and resource efficiency

P34

INSTITUTES & NETWORKS P36 Neven Marinovic Executive Director Business Leaders Forum Serbia How global sustainability issues reflect on developing countries Ð The example of Serbia

P38 Jonathan Cloud Founder Center for Leadership in Sustainability Leading the change to a sustainable future

P48 Alexander Likhotal President Green Cross International Doing the right things

P64 AON HEWITT 2011 Top Companies for Leaders Committed Ð Comprehensive Ð Connected Ð Culturally Agile

P40 Frances Hesselbein President and CEO The Frances Hesselbein Leadership Institute For the millennial generation, to serve is to live

P50 Dr. Harald Bergsteiner and Dr. Gayle C. Avery Co-Founders Institute for Sustainable Leadership (ISL) Countries' competitive performance Ð Fiction, fact and explanation

P68 Andrew Foran CEO Centre for Sustainability Leadership Time to lead

P44 Juan de la Mota Member of the Board, United Nations Global Compact President, Global Compact Νetwork Spain Sustainable leadership in the workplace P46 Amy Lyman Co-Founder Great Place to Work¨ Institute Trustworthy leadership promotes long-term success and sustainability

P58

EDUCATION & RESEARCH P60 Prof. Gilbert Lenssen, Ph.D., MBA President ABIS - The Academy of Business in Society Leading the sustainable enterprise Ð Executive education in focus

P72 Jean-Christophe Carteron Director of Corporate Social Responsibility Deputy Director of the Corporate Department Euromed Management Principles for sustainable leadership Ð The perspective of a PRME signatory P74 Graham Ward Managing Director LEAD International Leadership learning for the next generation

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

TABLE OF CONTENTS

P76 Dr. Alessia D'Amato Fellow, Department of Management London School of Economics and Political Science Toward an integrated model of leadership for corporate responsibility and sustainable development

P86

P106 ICAP GROUP Three CSR axes for the Group Ð People, Environment, Society

CORPORATE LEADERSHIP P90 AB VASSILOPOULOS (DELHAIZE GROUP) The corporate social responsibility leader in the Greek retail market

P80 Yury E. Blagov Director PwC Center for Corporate Social Responsibility Graduate School of Management, St. Petersburg University Responsible leadership and "shared value" Ð The new Russian experience

P94 APIVITA S.A. 33 years of Greek green business

P82 Dr. Andr Martinuzzi Director Research Institute for Managing Sustainability (RIMAS) at the Vienna University of Economics and Business Responsible competitiveness Ð The business case for sustainable leadership

P100 HALYPS CEMENT (ITALCEMENTI GROUP) Building sustainably

P96 CITI Citi celebrates 200 years of sustainability in banking services

P102 HYGEIA GROUP A leader driven by quality, a healthy work environment and multiple social responsibility activities

P108 INTERAMERICAN S.A. The leadership road to sustainability P110 JT INTERNATIONAL (JTI) Diverse cultures inspire us, knowledge informs us and integrity guides us P112 KPMG IN GREECE How to prepare to expect the unexpected P118 LEADERS FOR ECONOMIC CHANGE PROGRAMME Reality check Ð Take your cue from nature P120 MYTILINEOS GROUP More responsible than ever

P124 NATIONAL BANK OF GREECE Values and vision focusing on sustainable development P128 HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) Corporate Responsibility is a basic growth pillar for OTE P132 COSMOTE MOBILE TELECOMMUNICATIONS S.A. For a better world P134 WIND HELLAS TELECOMMUNICATIONS S.A. Responsibility in Action... for all

P140

VISIONARY LEADERS P142 Kris Amiralis Chairman of the Board and Founding Partner Future Leaders Leaders fit for the future

P144 Prof. Dr. Michael Braungart Founder and Scientific CEO EPEA Internationale Umweltforschung GmbH Cradle to Cradle¨ and materials management

P152 Vassilis Triantopoulos President Young Entrepreneurs Association Hellas Young Leadership: Advancing in the future

P146 Lisa Hall President and CEO Calvert Foundation Leadership in impact investing

P154 Dr. Devi Prasad Shetty Chairman Narayana Hrudayalaya Group of Companies Dissociating healthcare from affluence

P148 Per Meilstrup Climate Director Green Growth Leaders Leading by example

P158 AFTERWORD Leadership for sustainability: An everlasting journey

P150 Dr. Karl-Henrik Rob rt, Ph.D., M.D. Founder The Natural Step A unifying framework on sustainability

P16O About EuroCharity P161 About EuroCharity Yearbooks P162 Acronyms and abbreviations P164 List of tables, graphs, figures, facts and stats

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

Leadership for Sustainability

PUBLISHER'S NOTE

Now in its fifth successful year, the EuroCharity Yearbook aims at highlighting critical issues and helping galvanise public opinion into positive action. We chose this year's theme, Leadership for Sustainability, because leadership, more than ever, is needed to create more just, sustainable socioeconomic systems, and a viable and thriving world. In challenging times such as these, where the world is changing, and changing fast, leadership for sustainability cannot be considered to be a "luxury", but a necessity. Each sector of the global economy and every corporation and organisation, regardless of its size or geographic reach, needs to provide for the current and next generations. In the EuroCharity Yearbook 2011/12 - Leadership for Sustainability, we are profiling corporations and organisations that are leading the way towards a sustainable present and future. In addition, thought leaders, visionaries, CEOs, entrepreneurs, students and young professionals from 16 countries on three continents are sharing their own viewpoints, ideas and proposals on this year's subject. And in line with the EuroCharity Yearbook tradition, this interesting content mix has

been enriched with useful tables, graphs, facts and statistics as well as quotes from classical and modern times.

With a global readership in over 50 countries, the EuroCharity Yearbook 2011/12 - Leadership for Sustainability seeks to timely inform and inspire key stakeholders on this important and complex theme.

We are publishing and globally distributing the EuroCharity Yearbook on the eve of Rio+20, two decades after the 1992 Earth Summit and precisely four decades following the United Nations Conference on the Human Environment in Stockholm. But what have we learned from the past decades? In what direction are we heading? And what sort of future do we envision for our children and planet Earth?

We would like to acknowledge and thank all the authoritative guest authors, the showcased sustainability-driven corporations, our partners, our ambassadors and our publishing team for their invaluable contributions to putting the EuroCharity Yearbook 2011/12 - Leadership for Sustainability together.

"What our era lacks is competent leadership for sustainability," argues one of our distinguished guest authors. We couldn't agree more and strongly believe this lapse in leadership is the biggest threat to humankind and to its survival at the moment.

Sustainability leadership is a force for change and an everlasting journey. We therefore hope this year's multistakeholder album will inspire you, kick-start a global dialogue and be a catalyst for change!

However, such a threat can also be seen as an opportunity to change the way we manage our companies, communities and institutions as well as the way we think, act and lead. Business, political, academic, religious, third sector and the new generation of leaders have a unique opportunity to rise to the challenge by embracing sustainability leadership.

Michael Spanos Managing Partner EuroCharity

Peter Michel Heilmann President EuroCharity

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

FOREWORD

His All-Holiness Ecumenical Patriarch Bartholomew

It is with great joy that we preface the fifth volume in the series of EuroCharity Yearbooks, which is dedicated to the theme of Leadership for Sustainability. There has been no other point in time where the future of our planet has depended so much on decisions and direction provided by world leaders. Never before in history have our actions in relation to the natural environment presented such a threat; yet, at the same time, never before in history have we been granted such an opportunity to change our world for the better. There will come a point, and it may be very soon, when it is simply too late. Our scientists talk of "tipping points" and "abrupt climate change". Our political leaders talk of the challenges that lie ahead. The Bible speaks of God's grace in giving us many, many chances. But it makes it clear that time will come for all of us when we will have to face the consequences of our wrongdoing. According to the Gospel of St. Matthew, the questions asked of us all at the Last Judgment will not be about religious observances. We will be asked if we fed the hungry, gave drink to the thirsty, clothed the naked and comforted the sick and the captives. We must make the sacredness of life our priority.

BARTHOLOMEW Archbishop of Constantinople-New Rome And Ecumenical Patriarch

It is life on Earth, which is threatened, not just a certain way of living. This is the very same Earth which we are commanded not just to "till", but also to "preserve". Our reckless consumption of resources Ă? fuel, water, forests Ă? threatens us with a crisis.

Burning more fuel than we need in a busy city, we may be contributing to a drought or flood in a place thousands of miles away. Scientists estimate that those most hurt by global warming in the years to come, are those who can least afford it. In our understanding, there can be no distinction between concern for human welfare and concern for ecological preservation. To restore the planet, we need a spirituality of humility and respect Ð one that leads us to enquire more deeply and to think of the impact of our actions on all of Creation. We must direct our focus away from what we want to what the planet needs. We must choose to care for Creation; otherwise we do not really care at all. Nature unites us and, while we may differ in our conception of the origins of our world, we all agree on the necessity to protect it. Let us offer the Earth an opportunity to heal and continue to nurture us. We can no longer afford to wait. The indecision and inaction of our leaders are not options. We are all living within the mercy and grace of God. Our faith makes clear that we have a choice. The time to choose is now. With fervent prayers for the successful and fruitful dissemination of the EuroCharity Yearbook,

His All-Holiness Ecumenical Patriarch Bartholomew is the

inter-disciplinary and inter-religious symposia, bringing

spiritual leader to 300 million Orthodox Christians world-

together scientists, environmentalists, policy-makers

wide. Born on the island of Gšk eada, Turkey, he is the

and religious leaders and drawing world attention to the

270th successor to the 2,000-year-old Church founded

degradation of the Aegean Sea, Black Sea, Danube River,

by St. Andrew the Apostle. He serves as the Archbishop

Adriatic Sea, Baltic Sea, Amazon River, Arctic Ocean and

of Constantinople-New Rome and Ecumenical Patriarch

Mississippi River, thereby earning the title "Green Patriarch"

since 1991.

and receiving such environmental awards as the Scenic

A film entitled The Green Patriarch, produced by Becket

Hudson Visionary Award (2000) and the international Sophie

Films LLC and released in 2009 (available on DVD, running

Prize (2002). His environmental addresses and texts may

time: 40 minutes), looks at the ecological consequences of

be found in his book On Earth as in Heaven: Ecological

the historical split between science and religion, how we

Vision and Initiatives of Ecumenical Patriarch Bartholomew

came to see ourselves as separate from nature, and how

(Fordham University Press, 2012).

our consumer-based economy found its moral justification

His efforts to promote religious freedom and human

in a Judeo-Christian view that humans have dominion over

rights, his initiatives to advance religious tolerance among

the planet's resources. At the same time, it also explores

the world's religions, together with his work toward

how his activism is inspired by the Orthodox position

international peace and environmental protection have

that we are part of nature, and that God's intention for

justly placed him at the forefront of global visionaries as an

humans is to be stewards, or caretakers, of all creations.

apostle of love, peace and reconciliation. In 1997, he was

In a world of unprecedented consumption of the Earth's

awarded the Congressional Gold Medal, the highest civilian

natural resources, His All-Holiness shows by example

award bestowed by the U.S. Congress.

how saving the planet is finally a moral issue, not solely a

Having written a special message in the first EuroCharity

technological one. And as this film follows him on his trips

Yearbook entitled The Spirit of the Forest, His All-Holiness

to the most ecologically threatened areas of the planet, it

Ecumenical Patriarch Bartholomew accepted to write

also illustrates why these views are so controversial.

the foreword to the EuroCharity Yearbook 2011/12 -

From 1994-1998, he organised five ecological summer

Leadership for Sustainability.

seminars at Halki on Religious Education (1994), Ethics

At the Ecumenical Patriachate, Pascha 2012

(1995), Communications (1996), Justice (1997) and Poverty

www.patriarchate.org

(1998). From 1995-2009, he convened eight international,

www.halkisummit.org

Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted. ALBERT EINSTEIN Theoretical physicist, Nobel Prize laureate in Physics (1921) and the most famous scientist of the 20th century (1879 - 1955)

A man's worth and character will become apparent when he exercises power. ARISTOTLE Greek philosopher and polymath, a student of Plato and teacher of Alexander the Great (384 - 322 B.C.)

It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership. NELSON MANDELA Former President of the Republic of South Africa, anti-apartheid icon and one of the world's most revered statesmen (1918 - )

You must be the change you wish to see in the world. MOHANDAS KARAMCHAND GHANDI Commonly known as Mahatma Gandhi, leader of the Indian nationalist movement against British rule, widely considered the father of his country (1869 - 1948)

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

KEYNOTE ARTICLES

Blueprint for corporate sustainability leadership

Georg Kell Executive Director United Nations Global Compact

The past decade has witnessed enormous developments in the field of corporate sustainability. Thousands of companies around the world have established commitments and policies to integrate and diffuse universal principles in the areas of human rights, labour, the environment and anticorruption. The growth of the UN Global Compact certainly reflects the ever-increasing adoption of corporate sustainability principles and tenets by companies of all sizes, sectors and geographies. Reinforcing this trend has been the upward movement of corporate sustainability oversight and execution within organisations Ð many more CEOs and boards of directors are leading the agenda. While these are extremely positive developments, they must be tempered with the realisation that corporate sustainability has not penetrated the majority of companies operating in markets around the world. In other words, the global tipping point has not yet been reached. But it is within sight. The UN Global Compact's ten years of experience has revealed two critical lessons: First, that advanced performance by leadership companies offers crucial inspiration for those at the lower rungs of the "sustainability pyramid". Second, a new level of performance is needed in order to address key global challenges in a world of uncertainty and complexity and to deliver on the sustainability promise. In recognition of these factors, the UN Global Compact Office set about to develop a Blueprint for Corporate Sustainability Leadership Ð one rooted in the realities of the coming era and based on the need to achieve higher levels of performance, impact and collective action.

GIVING SHAPE TO THE LEADERSHIP BLUEPRINT The Blueprint for Corporate Sustainability Leadership ("Blueprint") has been developed in close consultations with a wide group of participating companies and stakeholders, UN entities, and other experts. The rationale for developing a Blueprint included two main factors: – to challenge and inspire companies to achieve higher levels of sustainability performance within the UN Global Compact; and – to evolve the UN Global Compact and its engagement opportunities so as to deliver more value to leading participants. Since its inception, the UN Global Compact has asked for two central commitments from business leaders and organisations: – to implement the Ten Principles of the UN Global Compact; and – to undertake actions in support of broader UN goals and issues. For many participating companies, these two pledges have helped frame their overall corporate sustainability philosophy and strategy. With these and other considerations in mind, contributors to the Blueprint pursued a concept and process to incorporate current and emerging leadership practices by companies. The result is a Blueprint that defines distinct, yet complementary dimensions of corporate sustainability leadership.

FACILITATING LEADERSHIP In recent years, the UN Global Compact Office has recognised the need to raise its game with respect to offering initiatives, resources, and other assets that would appeal to the needs and aspirations of leading companies.

The Blueprint is grounded in the two core commitments made by participating companies. It includes aspects of leadership that are considered key to maximising results with respect to these commitments, including active engagement with the UN Global Compact locally and globally.

1. Full coverage and integration across principles 2. Robust management policies and procedures 3. Mainstreaming into corporate functions and business units 4. Value chain implementation

While the Blueprint is directed at corporations, it will only be successful if undertaken in the spirit of the UN Global Compact.

The Blueprint encompasses three distinct, but overlapping and synergistic dimensions. They are: 1. Implementing the Ten Principles into strategies and operations 2. Taking action in support of broader UN goals and issues 3. Engaging with the UN Global Compact

Each of these Components was deemed critical in ensuring that the UN Global Compact's Ten Principles are thoroughly embedded in the organisation and in ensuring that they are effectively implemented.

In this regard, a strategic assessment has begun, and will encompass a range of considerations and options, including expanding human resources; developing new work streams and resources; offering more engagement opportunities at the local and global levels; building scalable platforms for knowledge sharing; and creating special leadership groups of companies and stakeholders to focus on key dimensions and aspects of the Blueprint.

KEY DIMENSIONS AND COMPONENTS OF LEADERSHIP The Blueprint offers UN Global Compact participants a model for achieving higher levels of performance and generating enhanced value through the UN Global Compact. It allows companies and their stakeholder to assess progress with respect to their commitment, strategy and implementation and to communicate effectively as they ascend the learning and performance curve.

Each dimension contains a number of key Components. In addition, several cross-cutting Components of leadership were identified as a crucial overlay to the three dimensions.

DIMENSION 1 Implementing the Ten Principles into strategies and operations This dimension represents the essential bedrock of the UN Global Compact and encompasses the first objective of the initiative: implementing the Ten Principles into business strategies and operations. Consultations with vanguard companies and other experts on what constitutes leadership practice with respect to this dimension of the Blueprint led to agreement on four Components:

DIMENSION 2 Taking action in support of broader UN goals and issues This dimension will give greater meaning to the second objective of the UN Global Compact, that is, to stimulate actions in support of broader UN goals and issues. Whereas the first dimension is primarily about the internalisation of the Ten Principles, the second dimension encourages companies to undertake more outward-oriented actions to increase their positive impacts in society. This dimension of the Blueprint serves as an encouragement for participants to increasingly undertake such activities and projects. In this regard, consultations with companies and other experts on what constitutes leadership practice with respect to this dimension of the Blueprint led to agreement on four Components:

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

KEYNOTE ARTICLES

LEADERSHIP BLUEPRINT The Blueprint offers UN Global Compact participants a model for achieving higher levels of performance and generating enhanced value through the UN Global Compact. It allows companies and their stakeholder to assess progress with respect to their commitment, strategy and implementation and to communicate effectively as they ascend the learning and performance curve. In the context of the Blueprint, corporate sustainability is defined as a company's delivery of long-term value in financial, social, environmental and ethical terms. It thus covers all principles and issue areas of the UN Global Compact. This page contains the visual representation of the Blueprint, encompassing the three key dimensions as well as, at the centre, the cross-cutting Components. Each of the Components within the Blueprint contain associated Action Items.

* "Broader UN goals and issues" refers to an array of global issues Ă? based on the most acute or chronic global challenges Ă? including peace and security; the Millennium Development Goals; human rights; children's rights; gender equality; health; education; humanitarian assistance; migration; food security; sustainable ecosystems and biodiversity; climate change mitigation and adaptation; water security and sanitation; employment and decent working conditions; and anti-corruption. This is an illustrative list of issues covered "broader UN goals and issues" and there are obviously considerable overlaps between individual elements. The order of this list does not indicate any prioritisation of issues. For a list of further global issues that are relevant to the work of the UN as well as business, please refer to http://business.un.org/en/browse/global_issues.

1. 2. 3. 4.

Core business contributions to UN goals and issues Strategic social investments and philanthropy Advocacy and public policy engagement Partnerships and collective action

Each of these Components was deemed critical in providing companies with a leadership pathway to fully realise the second objective of the UN Global Compact.

DIMENSION 3 Engaging with the UN Global Compact Over the years, the UN Global Compact has established numerous Local Networks, and created and launched special working groups, initiatives, and other engagement platforms and mechanisms. However, surveys indicate that there is still great scope and opportunity for companies to become more engaged with the UN Global Compact at both the local and global levels. And indeed, contributors to the Blueprint agree that robust engagement in the UN Global Compact as an initiative should be a crucial aspect of leadership in the future.

3. Issue-based and sector initiatives 4. Promotion and support of the UN Global Compact

Georg Kell is the Executive Director of the United Nations Global Compact. Spanning more than two decades, his career with the United Nations began in 1987 at the UN Conference on Trade and Development (UNCTAD) in Geneva. In 1997, Georg joined the Office of the UN Secretary-General in New

BLUEPRINT OVERLAY The cross-cutting Components The final element of the Blueprint is an overlay, which contains four cross-cutting Components. These crosscutting Components touch on several essential aspects of the UN Global Compact generally, as well as charting new terrain. They expand the notion of leadership both by articulating a more proactive and assertive role by CEOs and their executive management teams, and by expanding the leadership definition to include oversight by the relevant governance body of the company.

York, where he spearheaded the development of new strategies to enhance

The four cross-cutting Components of this overlay are: 1. CEO commitment and leadership 2. Board adoption and oversight 3. Stakeholder engagement 4. Transparency and disclosure

Launched in July 2000 by the then UN Secretary-General Kofi Annan, the

private sector engagement with the work of the United Nations. As one of the Global Compact's key architects, he has led the initiative since its launch in 2000, building the most widely recognised global business platform on human rights, labour, the environment and anti-corruption. Prior to joining the UN System, Georg worked as a researcher at the Fraunhofer Institute, Europe's largest application-oriented research organisation, and as a financial analyst evaluating multinational companies' investment portfolios in Asia and Africa, appraising industrial projects for banks and multilateral institutions. A native of Germany, he holds advanced degrees in economics and engineering from the Technical University of Berlin.

United Nations Global Compact is both a policy platform and a practical framework for companies that are committed to sustainability and responsible business practices. As a multi-stakeholder leadership initiative, it seeks to align business operations and strategies with ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption, and to catalyse actions in support of broader UN goals.

Consultations with companies and other experts on what constitutes leadership practice with respect to this dimension of the Blueprint led to agreement on four Components: 1. Local networks and subsidiary engagement 2. Global and local working groups

With more than 6,800 corporate signatories in over 135 countries, it is the world's largest voluntary corporate responsibility initiative.

www.unglobalcompact.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

KEYNOTE ARTICLES

Sir Winston Churchill once said that "the pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty". I am an optimist. The biggest difficulty facing leaders today is how to meet human needs for jobs and wellbeing within the ecological limits of our planet. Yet, the European Union also sees this as an opportunity to realise a vision for smart, sustainable and inclusive growth that we have set out in our Europe 2020 strategy1. I am charged with crafting policies and actions that create the best conditions for businesses to deliver jobs, growth and solutions to the environmental challenges. Sustainability and competitiveness are intertwined in our approach, because there is no place in the 21st century for industrial policies that are blindly pursued at the expense of the environment. However, sustainability focuses on a lot more than the environment and we need to sustain livelihoods as well as neighbourhoods.

from doubt and uncertainty. It is, therefore, crucial that the EU takes positive, proactive steps to secure the recovery and show that we are open for business. Secondly, the industry needs to plan ahead and needs to have clear, consistent and well-designated policies. This is particularly important in the context of the green economy, where much intensive capital investment is required to seize emerging opportunities. Thirdly, we need joined-up, holistic, coherent policies that avoid setting contradictory objectives in different policy spheres. Our industrial, climate, environmental, energy, innovation, employment and other policies must complement rather than contradict each other.

Sustainable industry Ă? Aiming at growth and resource efficiency

Antonio Tajani Vice-President of the European Commission Commissioner for Industry and Entrepreneurship

What does that imply in practical terms? Well, when I ask enlightened business leaders what they want from politicians and policymakers, they frequently highlight the "3Cs" of Confidence, Certainty and Coherence. I agree with this. It is vital that Europe quickly moves on from the recent crisis and once again develops a more "can do" attitude. Businesses and consumers thrive on confidence and suffer 24

www.ec.europa.eu/europe2020/index_en.htm

The global market for environmental protection also represents a big opportunity for European firms. Currently, the global market for environmental goods and services is estimated to be around EUR 1,000 billion per annum Ă? and this is expected to double or, even, triple by 2020. This calls for a twin-track approach to encouraging sustainable (green) growth across all industry sectors, while taking initiatives to help the environmental goods and services sector. To help bring about a more competitive and more environmentally sound industry, we also need to move beyond consideration of products and traditional services, adopt a value-chain approach and look more into innovative ways of organising production modes, co-operation and partnerships between businesses (e.g. green business models, and industrial symbiosis). We know that many of the most resource-

Antonio Tajani was born in Rome on August 4, 1953. He has lived in Paris, Bologna and Rome. After attending a classical high school in Rome, he earned a degree in Law from the Sapienza University of Rome. He completed his officer training at the Florence Air Warfare School and attended a specialisation course for Air Defence Controllers at the Training Technical Centre at Borgo Piave. He has been a professional journalist, parliamentary journalist, editor of the Il Settimanale Italian weekly, presenter for the Rai 1 radio news programme, and head of the Rome editorial office of Il Giornale newspaper. He was a special envoy to

efficient economies are also the most competitive. However, we are also aware that the transition will not be cost-free and will require significant investment from the industry. Europe produces some world-leading eco-technologies. Our core environmental industries that are active in the fields of pollution management and control, waste collection and treatment, renewable energy and recycling have a combined turnover of up to EUR 300 billion; they provide over 2.5 million jobs, and have impressive global market shares of 20-40%. This sector is growing at annual rates of more than 6%; it is now offering many new and skilled green jobs and exploiting first-mover advantages. And, as European industries have to thrive or strive in the global arena, the external competitiveness implications of our actions are also crucial.

been achieved and is continuing2 to do so. Policies, like Ecodesign3, are driving this change and helping to deliver more sustainable, products, production and consumption. Corporate Social Responsibility is also a flexible and effective way to encourage companies to do the right thing for societies and the planet, think of partnerships instead of polemics, and we have recently mapped out a new strategy to do just that4.

Lebanon, the Soviet Union and Somalia. Together with Silvio Berlusconi, he was one of the signatories of the founding act of the Forza Italia political party. He was elected a member of the European Parliament in 1994, 1999 and 2004 with over 120,000 preference votes and served as the head of the Forza Italia delegation in the European Parliament from June 1999 until May 2008. During his 15 years of parliamentary activity, he took part in many committees of the European Parliament. He is the European Commission Vice-President and Commissioner in charge of Industry and Entrepreneurship from February 2010. He is married with two children.

Therefore, we are working hard in Brussels to overcome difficulties and seize opportunities. But more can and must be done in order to translate insights into effective actions. Or, as Johann Wolfgang von Goethe succinctly puts it, "Knowing is not enough; we must apply. Willing is not enough; we must do."

The Directorate General Enterprise and Industry is working towards five general objectives: to strengthen Europe's industrial base and promote the transition to a low-carbon economy; to promote innovation as a means to generate new sources of growth and meet societal needs; to encourage the creation and growth of SMEs and promote an entrepreneurial culture; to ensure an open internal market for goods; and to support the European presence in space. The Directorate General (DG) has a key role to play in

Nevertheless, neither Europe nor the industry can do this by themselves. In a globalised world, we have to be realistic and reasonable about our industry's potential contribution to world-wide environmental improvements. The EU is working hard to obtain ambitious and effective outcomes in Rio+20 and in climate and other relevant negotiations. Each region's responsibilities and priorities are different, but as we share the planet, we must all be part of the change we want. It is encouraging to see that, in Europe, significant decoupling of economic growth and environmental impact has already

the implementation of Europe 2020. It is responsible for two of the seven flagship initiatives: (a) "An industrial policy for the globalisation era" to improve the business environment, notably for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally, and (b) "Innovation Union" to improve framework conditions and For example, greenhouse gas emissions have decreased by more than 15% since 1990, while the economy grew by more than 40%; there has been a 27% decrease in energy intensity over the period, while the consumption of renewable energy has increased by over 70%. 3 www.ec.europa.eu/enterprise/policies/sustainable-business/ecodesign/ index_en.htm 4 www.ec.europa.eu/enterprise/policies/sustainable-business/corporatesocial-responsibility/index_en.htm 2

access to finance for research and innovation so as to ensure that innovative ideas can be turned into products and services that create growth and jobs. DG Enterprise and Industry employs around 1,000 people in its departments and units and is responsible for a budget of some EUR 1.5 billion. www.ec.europa.eu/enterprise/index_en.htm

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

KEYNOTE ARTICLES

Reflections on globally responsible leadership Ð It's time to flatten the building If the global economic system we have built over the past 200 years was a building, it would be condemned. Our structural engineers would be telling us to knock it down. To start again. They would tell us its foundation was crumbling, its supporting steel rusting through, its roof leaking, its plumbing broken, electrical wiring faulty, its ceilings full of asbestos and that everything was beyond repair. They would advise us to erect barrier tape around it, call in the demolition experts, blow up the building, clear the site, bury the rubble and start again. They would be telling us to build something else.

Mark Drewell CEO Globally Responsible Leadership Initiative

Their report would make nightmare reading and here are some of the highlights. It would say it (the building) is built on a logic of take, make and throw away Ð and that we are running out of spares as operating the building requires us to eat into the store of spare parts (nature) at an annual rate 60% higher than they can be replaced. The report would say that the building's purpose was to provide a place for a now insane activity Ð the perpetual economic growth on a finite earth. It would note that its defining function was to be home for shopping and yet we know that shopping - the endless quest for novelty and more stuff has, of itself, little, if any, long-term societal value, once basic needs are met. It would say the air quality is beyond redemption, because a few people in the building absorb most of the oxygen (wealth) and leave the majority of users breathing the carbon monoxide of inequality and poverty.

If we think of our global economic system as a building, it is interesting to investigate who is managing the building and what are they doing in the face of this imaginary report? The "managers" of the global economy are the leaders of the mainstream institutions of our world. They are nation-state politicians and administrators, world bodies, such as the UN, the WTO and the World Bank, the heads of the world's large financial organisations (both public and private), heads of multinational companies, the large religious bodies and civil society organisations of global scale. If they are the building managers, then they are generally ignoring the structural engineers and their recommendation that we flatten the building. They are working on an improved "business-asusual" approach. In building terminology, it is about a better maintenance plan. Their work is, by and large, focused on replacing the rusting beams where they can be seen, patching up the roof and sealing the leaking pipes. In the global economic system, this make-and-mend approach is called getting back to growth. It won't work. It's time to give the building managers a new brief. It's time to listen to the structural engineers, bring in the architects and build something new. Something fit for purpose. What is that purpose? At the Globally Responsible Leadership Initiative, we believe

the purpose is human progress. It is about a system which enables the soon-to-be nine billion of us to live full and meaning-filled lives within the capacity of nature to sustain us. To do this requires a leadership that re-thinks this proverbial, global economic building from first principles. It is about leadership that seeks to be not the best in the world, but the best for the world. For businesses and business leadership, it means reconfiguring everything we do by re-thinking the fundamental purpose of business. We need businesses and business systems which serve our shared aims in the 21st century. What does this mean practically? It means that incremental corporate responsibility can no longer be enough. The task is to assess everything we do against the yardstick of what society needs rather than what we did last year, or what our competitors do. Here are some examples. We need to clean energy everywhere. We need to move from take, make and throw away to closed loops Ă? in every part of the economy, everywhere. We need to build biodiversity. We need to create lifelong learning for the sake of learning (not to create better units of labour). We need to measure profit as a hygiene factor and see success in the extent to which our products and services advance the human condition.

We need to explore how we contribute to the quality of human personal relationships, to the building of community and to enabling and encouraging people to serve others. We need to create the capacity for people everywhere to connect with nature and to be full, uncompromised parents to the young and full and uncompromised children to our elders. We need to find space for, and nurture spirituality and healing. We need to eradicate income gaps across our entire sphere of influence including in every supply chain in our business. We need forms of ownership in our economies which do not have profit growth as their purpose. We need to reconnect the rights and responsibilities of ownership Ă? perhaps it is time to end the hegemony of the limited liability public joint stock company as it has become, in its current form, a societal liability. Perhaps, the time has come for individual ownership, co-operatives, partnerships and social enterprises to become the dominant approaches once more. And we need to reconfigure finance so that it acts in full service of society. These issues and many others are all the agenda of business in the 21st century, because they are the issues of society, and business is an instrument of society Ă? to be harnessed for our shared purpose. The heart of creating a business system that does this is the development of globally responsible leadership. Globally Responsible Leadership is first and foremost about recognising that the job is to flatten the global economic

building and erect something new in its place, not to improve the maintenance. It is to hold in focus this question: What kind of world do we want to build together with the extraordinary capabilities we master? It is to lead, in service of society and the natural world. Is such leadership possible to achieve at a global systemic scale? We think so. To create it requires a fundamental change in how and what we teach. The new what is increasingly accessible through the joining up of knowledge from across disciplines. Joining economics with the natural sciences and this in turn with the social sciences. The how is a move from a focus on the cognitive intellectualism of seeking knowledge in order to be the best in the world as it is framed today, to develop the will to act for society as an agent of change. By developing the will to act towards the common good alongside the knowledge of what to do, we can create the ingredients of globally responsible leadership. And then, perhaps, we can build a truly beautiful and functional global economic building that is a joy to live in.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

KEYNOTE ARTICLES

OUR MISSION IS TO BE A CATALYST TO DEVELOP A NEXT GENERATION OF GLOBALLY RESPONSIBLE LEADERS THROUGH ADVOCACY

THROUGH CONCEPT DEVELOPMENT

THROUGH EXECUTION OF NEW LEARNING PRACTICES

EXAMPLE: as co-convenors of the Principles for Responsible Management Education (PRME)

EXAMPLE: project on the corporation of the 21st century

EXAMPLE: the globally responsible leadership curriculum, learning material and programmes

Source: GRLI.

Mark Drewell, M.A. (Oxon) has been the CEO of the Globally Responsible

Prize Foundation. He has served as Deputy Chairman of the Advisory

Leadership Initiative (GRLI) since January 2010. He was born and

Board of the University of South Africa's Centre for Corporate Citizenship;

educated in the United Kingdom studying Philosophy, Politics and

Chairman of the Endangered Wildlife Trust (South Africa's largest

Economics at Oxford University. His career commenced with five years in

indigenous environmental NGO); Chairman of the Board of Imhoff

the City of London in mining finance. In 1989, he moved to Johannesburg,

Waldorf School and served twice on the board of the San Francisco-

South Africa and joined the diversified industrial company Barloworld

headquartered International Association of Business Communicators

Limited, rising to spend a decade on the group executive committee as

(IABC), which is the world's 15,000 member professional association for

head of Corporate Affairs, Investor Relations and Group Marketing. His

business communicators. Mark is married to Yolanda and they have four

many achievements in the company included being co-founder of the

children: Francesca, Christopher, Cassandra and Nicholas.

Middelburg Forum, which was the prototype for the South African Peace Committees through which business played a vital role in managing

GRLI is a global multicultural community of action and learning. It

South Africa's first post apartheid elections; launching the renaming

operates with a fully transparent and unique governance model with all

and rebranding the company across eight operating divisions and 32

partners participating. It is legally set up as a foundation of public interest

countries; and leading the company's early adoption of triple bottom line

in Belgium. GRLI identifies and acts on key leverage points for scalable

performance measurement. Under his leadership, in 2004, Barloworld

change through concept development, advocacy and execution of new

became a founding partner in the Globally Responsible Leadership

learning practices and works in partnership as a global community

Initiative. He played a powerful role in the GRLI's development at

of change agents. Today, GRLI has 71 partner organisations and it is

both an intellectual and practical level, serving as the first chair of the

expanding rapidly. It has set a limit of 120 partners for the years to come

GRLI Foundation from 2006-2008. He left Barloworld in 2007, moved

in order to remain a fully-integrated and action-oriented global network,

to Cape Town and co-founded 3 Laws Capital, a deep sustainability

and to fulfill its unique role as a leading global catalyst for key challenges

asset management company with a venture capital focus. He is also a

and future demands regarding how to develop a next generation of

director and founder of The Elgin Distilling Company, which is currently

globally responsible leaders.

launching the world's most exclusive new terroir spirit. He is a senior associate of the University of Cambridge Programme for Sustainability Leadership and the Chairman of the Swedish-based World's Children's

www.grli.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

KEYNOTE ARTICLES

Almost 20 years ago, the eyes of the world were on the 1992 Earth Summit in Rio de Janeiro. The environmental movement arrived at a tipping point, they moved from discussing science to setting policy. They moved from a "who pays?" attitude to a realisation that we sink or swim together. It took a lot of research, and good advocacy to push that research, until people accepted that environmental issues are everyone's problem.

The Arab Spring and the Indian Summer, for example, that followed are a stark reminder that economic growth will not automatically bring an open, free society unless public institutions are accountable, are answerable, to the people they serve.

People, transparency, public accountability

In the last few years, this understanding has dawned in terms of corruption. The anti-corruption movement is at a similar point to where the climate change movement was in the early 1990s. Governments, businesses and citizens see that corruption is like a political hole in the ozone, exposing attempts to improve the economy, ensure justice and fight poverty. The realisation had dawned that there could be no turning a blind eye to the problem. Dr. Cobus de Swardt Managing Director Transparency International

In recent years, as the lack of public accountability has been a key driver of the financial and economic crisis, so demands for greater accountability have become a driver for change in their own right. How many times have we heard people express their feeling of powerlessness to stop abuse of power, or the expression "It doesn't matter who you vote for, nothing will change". How can people make a difference in this landscape?

The movement for accountability in politics and public life has arguably more clearly than ever before emerged as a key discourse around the world.

In the 1980s, truth spoke to power in the language of human rights, a concept that sought to compensate for decades of leaders' failure to hear calls for reform. This language defined and drove the popular demands for change, bringing the Cold War to an end. Now, people speak a language that drives human rights to its next dimension: the language of public accountability, an idea whose time has come.

Over the last year the relations between people and power were uniquely put into the spotlight, as people not only spoke truth to power, but also demanded those in power to speak the truth to them. Around the world, people from all walks of life are demanding, as never before, that their leaders make themselves publicly accountable for their actions.

It is also a most powerful and people-driven disinfectant against the terrible scourge of corruption: the abuse of power at the expense of the many, the exploitation of the vulnerable and the social injustice of economic opportunity denied. Corruption is, indeed, a crime against society: a theft of social resources and a perversion of society's values.

This crime against society must be fought with social solutions. We now see that social movements and all people who want to improve their society can be key drivers of change against the crime. A consensus emerged in the green movement that everyone had to act, and the people had to be involved. The people driving the green movement were no longer just experts and scientists: they were governments, activists, businesses and people in general. Civil society can harness this energy and build the strategic pressure and participatory solutions to fight corruption.

Dr. Cobus de Swardt joined Transparency International in 2004 and was appointed Managing Director in June 2007. His experience spans the fields of globalisation, development policy, international relations and business management. Cobus has taught and worked at universities, multinational corporations, trade unions and research institutes in managerial and research related roles around the world. During the 1980s and early 90s, he was active in the anti-apartheid struggle in South Africa as Chair of the African National Congress in Cape Town. He is a member and former chair of the World Economic Forum (WEF) Global Agenda Council on Corruption. In addition, he serves on the Board of the WEF Partnering Against Corruption Initiative (PACI) and

Civil society already produces the tools that raise social awareness, making it harder for leaders to ignore the cost of corruption. It can make its voice heard across sectors, in the worlds of business, politics and in communities, building multi-stakeholder agreements on potentially gamechanging policies and laws. When we want governments to live by such laws, there can be no force more powerful than the surge of public demand for transparency and accountability.

the Berlin Civil Society Centre. Cobus holds a Ph.D. in Sociology from La Trobe University, Melbourne and an M.Phil. in Political and African Studies from the University of Cape Town. Transparency International (TI) is the global civil society organisation leading the fight against corruption. Through more than 90 Chapters world-wide and an International Secretariat based in Berlin, TI raises awareness of the damaging effects of corruption and works with partners in government, business and civil society to develop and implement effective measures to tackle it. They bring together relevant players from government, civil society, business and the media to promote transparency in elections, in public administration, in procurement and in business. TI's global network of chapters and contacts also use advocacy campaigns to lobby governments to implement anti-corruption reforms. www.transparency.org

The future belongs to those who understand that doing more with less is compassionate, prosperous and enduring, and thus more intelligent, even competitive. PAUL HAWKEN Environmentalist, entrepreneur, journalist and author (1946 - )

Leadership and learning are indispensable to each other. JOHN F. KENNEDY 35th President of the United States of America (1917 - 1963)

Management is doing things right; leadership is doing the right things. PETER F. DRUCKER Management guru, influential writer, revolutionary thinker, management consultant and self-described "social ecologist" (1909 - 2005)

A leader is a dealer in hope. NAPOLEON BONAPARTE One of the greatest military leaders in history and emperor of France (1769 - 1821)

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

How global sustainability issues reflect on developing countries Ð The example of Serbia Taking responsibility for shaping a socially and ecologically sustainable world is now, more than ever, a central challenge for executives of internationally and locally operating corporations and institutions. Although sustainability issues equally affect developed and developing countries, it seems that such challenges are more emphasised in developing nations, such as Serbia. Especially in view of the fact that our country's socio-economic past plays an important role in defining its sustainable development.

Neven Marinovic Executive Director Business Leaders Forum Serbia

The strategic orientation of the country after World War II has accelerated economic growth based on industrialisation and urbanisation. Environmental protection and energy efficiency as important aspects of sustainability were practically ignored. On the other hand, public companies, the only category of firms that were allowed until the mid1980s, did not only have any economic, but also social, say in facilitating the unemployment rate. At the same time, community investment also played an important role in the local companies' operations. With the collapse of socialism and the beginning of transition, the challenges of sustainability were even more stressed. The situation in Serbia once again presents a specific case since, during the transition process, which had already started, there were armed conflicts and years of international isolation. This, among others, led to the collapse of the Serbian economy, losses of the markets and a growing

technological obsolescence. Reforms practically began with the democratic changes in October 2000, as preconditions for creating new solutions that could bring the proper economic and social development. It should be noted that we have made major strides in the last few years. Serbia has shown a strong commitment to establishing a modern market economy. Foreign direct investment strengthened the business sector and influenced technological development. State institutions were reformed, mostly inspired by the intention of joining the EU, while our legal system is still going through a process of adjusting to European and international standards. A whole set of laws in line with the EU legislation has been adopted over a period of a few years. Speaking of sustainability, Serbia put in place a constitutional framework by adopting the Strategy for Sustainable Development and Action Plan in 2008. These efforts and results have been confirmed by the European Council, which decided to grant Serbia full EU candidate status on March 1, 2012. However, the implementation of the documents adopted represents the main challenge in the period ahead of us. Serbia still needs to develop efficient mechanisms to deal with a high unemployment rate, corruption, lack of sustainable infrastructural solutions in the energy sector and to contribute to combating climate change. There is still great potential to improve Serbia's environmental practices through the

development of sustainable solutions in the energy sector and by focusing on renewable energy sources.

Neven Marinovic is the Executive Director of the Business Leaders Forum Serbia, a business network launched by 14 leading companies in Serbia dedicated to the CSR concept, and the Executive Director of Smart Kolektiv, a

The economic crisis has affected the Serbian economy. It slowed down economic activity and influenced some of the important strategic decisions. For example, one of the world's leading corporations that had been present in Serbia for eight years relocated its operations to another country. However, it is important to stress that Serbia achieved a certain degree of macroeconomic stability, despite the global economic crisis.

leading organisation in Serbia in the field of CSR and social communications.

Since different parts of our planet are more than ever interconnected, we should remember that the way to a sustainable future is through building stable inter-sector partnerships and synergies among the large and the small, the developed and the developing nations, the experienced and those who are willing to learn, those with new ideas and those who are willing to listen. More than ever, developing countries, such as Serbia, have to find their way towards creating sustainable solutions. The green economy is not only a precondition of sustainability, but also a great business opportunity.

Business Leaders Forum Serbia is the first coalition of socially

In addition, Neven is a member of the World Entrepreneurship Forum as well as Euclid Network, a European network of civil society leaders. Neven participates in the work of other institutions through different forms of engagement, such as: member of the National Council for Sustainable Development (NCSD), member of the Managing Board of the National Alliance for Local Economic Development (NALED) and member of the Steering Committee of the Global Compact Network in Serbia.

responsible companies in Serbia, established with a mission of stimulating the development of Corporate Social Responsibility and establishing permanent and committed CSR practices in the domestic business sector. Founded in 2008, this unique coalition in Serbia connects business sector leaders with representatives of state institutions, non-profit organisations and other stakeholders, by initiating constructive inter-sector dialogue and encouraging joint contributions to sustainable social development. With the aim of resolving individual social, economic and environmental problems, BLF Forum also launches tangible programmes and projects, through which it works Ð together with other social stakeholders Ð to achieve sustainable and stable community development. BLF Serbia is part of the CSR360 Global Partner Network, convened by Business in the Community (BITC), and a partner of the International Business Leaders Forum (IBLF). www.fpl.rs

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

As perhaps always throughout history, humanity is venturing into uncharted territory; and, however things turn out, we need those who would lead the march into the future to be armed with knowledge, wisdom and vision.

The sustainability movement has given rise both to new leaders and to new kinds of leadership. From Rachel Carson and the earlier pioneers of the environmental movement to Yvon Chouinard and Ray Anderson and today's sustainable business leaders, there has been a common underlying theme, which is that humanity cannot survive an assault on its own habitat. We are inseparable from our environment.

Leading the change to a sustainable future

Yet, despite decades of warnings, we are continuing to expand resource exploitation, carbon emissions and toxic waste production beyond the planet's carrying capacity. Many climate and biological scientists now believe that it is too late to avert significant ecological changes on a very broad scale; we must learn to adapt to them, and seek to lessen their consequences both for humans and for other life forms.

Jonathan Cloud Founder Center for Leadership in Sustainability

We are also inseparable from one another. We cannot survive without our relationships with each other; and, increasingly it seems, we may not be able to survive because of our relationships with each other. What all of us do together affects every one of us, rich or poor, educated or uneducated, social or isolated. Indeed, it is how we are organised, socially and economically, that challenges our sustainability. Behind this lies our understanding of the world and of our place in it. The central question of our time is really whether we can accomplish the transition to a sustainable economy

Jonathan Cloud is the Founder of the Center for Leadership in

within the existing societal framework, or whether we need a fundamental shift in human consciousness in order to heal our relationship with the planet and with each other. There is much practical work to do, from changing the way we live and do business to remediating the environmental harm already done, and putting in place regenerative and renewable systems of all kinds. There is also much action required at the level of thought leadership, so as to shift our economic and social paradigms. At bottom, however, we must ask a much deeper question: are we humans willing and able to change to the extent needed, without fundamentally shifting the way we see things, and the way we feel about them? There are good arguments to be made on both sides, and there is even a case to be made that changing our behaviour will do more to alter attitudes than either education or awareness can do. However, the reality is that we need both: we need to make the practical changes, in the way we handle energy, water, waste, food production and distribution, and in financial incentives; but we need to transform our collective consciousness as well, so that we are living "from" the recognition of our absolute dependence on nature, and living "within" the given of limited resources, the fragile

web of life, and a biosphere that needs our collaboration to maintain itself.

Sustainability. He has been a journalist, consultant, entrepreneur, community organiser and public policy analyst, specialising in the fields of energy, the environment and community development. Jonathan was a

The leadership we need is visionary as much as it is pragmatic. It needs to evoke and awaken the meaning and purpose of human life, and its emergent relationship to the cosmos, while at the same time advancing every element of science, technology and sustainable economic development.

policy adviser to the Canadian government on energy and environmental policy, statistics, research methodology, and consumer and corporate affairs. With expertise acquired over three decades in the U.S. and Canada in alternative and renewable energy, energy aggregation, sustainable economic development, community financing mechanisms and community engagement, he inspires, educates, leads and coaches leaders and

It is inevitable that the world will continue to experience great regional and local convulsions, both anthropogenic and otherwise, that are beyond our ability to prevent; but if we are to survive, then it is also inevitable that we will adapt and change, in socially and ecologically improved ways, and that we will continue to grow in economic knowledge, environmental awareness and human understanding. Sustainability is not only possible Ð in an evolutionary sense, it's the name of the game.

community participants to achieve their objectives. His heroes are John Todd, Amory Lovins, Thomas Berry, Paul Hawken, Paul Farmer, Bill Drayton, Janine Benyus, Ray Anderson, Bill Mollison, Bill McKibben Ð and everyone willing to take a stand for the whole of the biosphere. The Center for Leadership in Sustainability is a N.J.-based non-profit addressing the needs of local leaders and the opportunities for global leadership in sustainable development. The Sustainable Haiti Coalition, co-founded with Douglas Cohen of the Inspired Futures Campaign, is a voice for the long-term sustainable reconstruction of Haiti as a Haitian-

There is a role for everyone, and we need everyone pulling together. But our most pressing challenge is to awaken the hero, the leader, the saviour in everyone Ð to put humanity on a different path, a path that leads to forever instead of to a dead end.

led and internationally collaborative effort. The Sustainable Business Accelerator works with start-ups and existing businesses, colleges and universities, government agencies and other non-profits, to create, launch and grow sustainable social enterprises Ð enterprises that are missiondriven, sustainably implemented and economically successful. www.c4ls.org www.sustainablehaiticoalition.org www.sbanj.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

I spent a third of my time on college and university campuses, here in the U.S.A. and abroad, and this is where I find my hope. This is where I get my inspiration. The future generation is vastly different from earlier generations of leaders. The Millennial, Gen Y, echo boomers Ð whatever you choose to call them Ð have high expectations, are tech savvy, value diversity and inclusion, are open-minded and performance-driven, are globally aware and accept their social responsibility Ð attributes we all admire.

are indispensable partners for their journey to significance and service. Prof. Warren G. Bennis calls this generation "the crucible generation" and recent research tells us that not since the 1930s and 40s has there been such a powerful generation Ð seemingly born to serve. This causes observers to compare today's university students, and cadets at our military academies, with "the greatest generation".

For the millennial generation, to serve is to live

Frances Hesselbein President and CEO The Frances Hesselbein Leadership Institute

A range of economic and social influences have shaped the attitudes, beliefs, and expectations of this emerging generation. A recent USA Today study found that even though jobs are scarce and money is tight, it has not stopped the millennial generation from helping others. Young adults who grew up in the shadow of the 9/11 attacks, saw the wreckage of hurricane Katrina and searched for jobs during a recession, are volunteering at home and abroad in record numbers. The Millennials, the generation that learned in school to serve, as well as to read and write, became the first global Internet explorers as they pioneered social networking for favorite causes at home. Students on campuses, here and abroad, view community service as part of their DNA. I have a belief, "to serve is to live," which is exemplified by the generation that is currently entering the workforce. Much has been written and solid research conducted about today's university students. Leadership and civic engagement

Some of us were part of that period and all of us remember its history. But the characteristics of this generation are not found only in the United States; they are found world-wide. During a recent trip to Beijing, Nanchang, Shanghai and Hong Kong to celebrate Peter F. Drucker's 100th birthday, I met thousands of young members of China's workforce of the future who in many ways were similar to students here in the United States. They all see themselves as part of a global community. They are running on parallel tracks that include the values of respect, inclusion, innovation and hope for the future Ð a global workforce of the future. I am inspired. How can we encourage global collaboration? Since this world-wide "crucible generation" has been students of the history of our society, they can be a powerful force in building and restoring institutions that in the end sustain democracy. In 2009, the University of Pittsburgh launched the Hesselbein Global Academy for Student Leadership and Civic Engagement and in 2010 held a Global Summit

comprised of 25 students from North American universities and 25 students from around the world. Each year the same number will attend the conclave. In 2019, all 500 young global leaders of the future will meet, celebrate and share the ways they are changing our world.

Frances Hesselbein is the President and CEO of the Frances Hesselbein Leadership Institute, formerly the Peter F. Drucker Foundation for Nonprofit Management. She is the recipient of the Presidential Medal of Freedom, the U.S.A.'s highest civilian honour, for her leadership as the CEO of Girl Scouts of the United States of America from 1976-1990, her role as the founding President of the Drucker Foundation and her service

These two personal experiences with students underscore my passionate belief in the quality, the potential and the commitment these young members of the workforce of the future will bring to their work, their service, their engagement.

as "a pioneer for women, volunteerism, diversity and opportunity." She is the co-editor of 27 books in 30 languages. Established in 1990 as the Peter F. Drucker Foundation for Nonprofit Management, the Frances Hesselbein Leadership Institute furthers

These emerging leaders are sending a powerful message of leadership, of building trust, of ethics in action, of the power of diversity and inclusion, of the importance of courage, of celebrating the intellect, of leading from the front into an uncertain future, and of service. In response, my message to them is, "We look to you to take the lead into the future, as an inspiring example of the power of learning, a model of ethical global citizenship. To serve is to live." I am inspired.

its mission to strengthen and inspire the leadership of the social sector and their partners in business and government by connecting the public, private and social sectors with curated resources and relationships to serve, evolve and lead together. By fostering leadership grounded in the passion to serve, the discipline to listen, the courage to question and the spirit to include, the Institute works to create an open, responsive, global social sector. The Frances Hesselbein Leadership Institute shares wisdom cultivated over two decades Ă? from the Institute's groundbreaking work as both the Peter F. Drucker Foundation for Nonprofit Management and Leader to Leader Institute Ă? guided by the vision, commitment and spark of Frances Hesselbein. In 2012, the Frances Hesselbein Leadership Institute honoured its founding and active President by renaming the Institute in her name. Her autobiography, My Life in Leadership: The Journey and

Lessons Learned Along the Way, was published in February 2011. www.hesselbeininstitute.org www.hesselbein.pitt.edu

FACTS & STATS Megatrends that will affect leaders over the coming decades INDIVIDUALISATION

DIGITAL LIFESTYLE

DEMOGRAPHIC CHANGE GLOBALISATION 2.0

TECHNOLOGY CONVERGENCE CHANGING WORKING PATTERNS CORPORATE ENVIRONMENT ORGANISATION PERSONAL AND TEAM LEVEL

Source: "Building the new leader: Leadership challenges of the future revealed", Leadership 2030, Hay Group, 2011.

LEADERSHIP

CLIMATE CHANGE

THE "TOOL BOX" FOR SUSTAINABILITY INTEGRATION

– Constitutional mandates for sustainable development. – Clearly articulated strategic sustainability frameworks with time-bound goals and specific, results-oriented indicators and benchmarks. – Mechanisms for monitoring, assessment, feedback and revision of national sustainability strategies. – Political leadership in order to demonstrate the importance and value of integrating sustainable development into all spheres of decision-making. – Inter-ministerial body to co-ordinate sustainable development policy between all relevant ministries. – Structural incentives to encourage government departments to integrate sustainability considerations into decision-making. These include results-based reporting, budgeting and accountability processes. – Ongoing process of review of laws and regulations to ensure conformity with sustainable development. – Tools to ensure that sustainability priorities are duly reflected in long-term budgeting.

Source: "From Transition to Transformation: Sustainable and Inclusive Development in Europe and Central Asia", co-ordinated by the United Nations Economic Commission for Europe and the United Nations Development Programme, 2012.

– Clear frameworks for assessing performance of government bodies. – Support for stakeholder involvement in sustainability decision-making.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

The Spanish Network is the most active Global Compact Local Network, with the highest number of members compared to any other Local Networks globally. The most important commitment that members must comply with is to communicate to their stakeholders how they implement the Ten Principles. The Communication on Progress (COP) is the yearly report used to achieve this objective.

point of view, but also from a technical one. This leadership is fundamental as it embraces all actions of the company, influencing the decision-making process and promoting a friendly environment for stakeholder relationships.

Sustainable leadership in the workplace

The Spanish members of the Global Compact are the leaders of transparency and communication with their stakeholders. In 2011, the Spanish members published 434 COPs, 40 of which achieved the advanced level, which Global Compact gives to the most complete COPs (24% of all advanced COPs around the world). These figures show how the Spanish members of Global Compact are improving every year as regards the implementation of the Ten Principles and publication of CSR reports. Juan de la Mota Member of the Board, United Nations Global Compact President, Global Compact Network Spain

In 2012, the Spanish Network will keep helping its members to improve the implementation of the Ten Principles in their management strategy. For this reason, the Spanish Network will organise formative activities and discussion forums on Human Rights, Labour, the Environment and Anti-Corruption in order to be, for yet another year, the most active network, with the highest number of members and with the best management model. A leader of a sustainable enterprise knows the importance of a company's ethical management, not only from an ethical

A proper CSR policy includes incentives for the company, for brand spreading and for employees. Employees must be given a special place among stakeholders, especially during the CSR policy implementation. The implementation of policies and launching of actions that positively affect the professional and personal life of workers reflect CSR in the workplace. These HR policies include areas as economic compensation, social benefit, human and professional development, work and family life balance, types of contract and equality and diversity policies. The responsible management of human resources helps to attract the best workers. This attraction of talent translates into a better image of the enterprise among professionals. Furthermore, it enhances worker productivity, minimises workers' turnover and reduces absence from work. This leadership in employee management also brings reputational benefits and increases competitiveness. The reputational incentives result in an improvement of the company's image for society and for unemployed as these enterprises lead the rankings of best companies to work in

Juan de la Mota is the President of the Spanish Global Compact Network and a member of the UN Global Compact Board, which is appointed and chaired by the United Nations Secretary-General. He has served on the Board of several corporations and non-profit organisations and is member of the Institute of Corporate Directors (Instituto de ConsejerosAdministradores). Prior to that, from 1992 to 2008, he was the President and CEO of Standard & Poor's Spain, S.A. and a member of the S&P European Executive Team and of the McGraw-Hill Companies Global Leadership Team. From 1989 to 1992, he served as the President and

and have the best reports on reputation measurement. The increase in competitiveness of these socially-responsible companies versus their competitors is a result of generating greater confidence among their stakeholders. Lastly, the incentives for employees included in a proper CSR policy can be grouped into two main areas: a sense of belonging and salary incentives. The sense of belonging for a worker who identifies him/herself with the values and responsible policies of the enterprise can be achieved through the creation and consolidation of quality and stable employment, the promotion of employee engagement, personal and professional development and corporate culture improvement. Furthermore, connecting employees' salary with CSR goals makes workers and the enterprise join their efforts towards and improving in competitiveness of the company in the marketplace. In short, responsible leadership in the workplace must be linked to some competitive and reputational benefits for the company and to human resource incentives for the workers.

As far as the above-mentioned issues are concerned, companies choose to face them with a pro-active attitude, to seek their own solutions and integrate them into the value and supply chains, or take a reactive position and hope that regulation will decide the way. Governments are already regulating these issues, for example in terms of information, transparency and good governance, and so have the government of Spain, several governments in Europe and the EU itself.

CEO of Compan a Espanola de FinanciaciÞn del Desarrollo, COFIDES S.A., a development financial institution headquartered in Madrid. From 1976 to 1989, Juan held several senior positions within the Ministry of Economy and Finance in Madrid and served as the Economy and Trade Counsellor at the Embassy of Spain in Ottawa, Canada. Juan has been a Professor of Economics and International Trade at the Universidad Complutense de Madrid (UCM), where he graduated with a degree in Business and Economics. He holds a graduate degree in Business Administration from the University of Ottawa, Canada. He has also attended several executive development programmes, including at

CSR involves earning money, but with ethics and values. Companies must reinforce their corporate credibility and trust. Sustainability responds to the expectations that society has in relation to the company and its activities and serves the interests of the company and its stakeholders, both internal and external ones: employees, managers, customers, suppliers, markets, regulators, governments, the third sector and citizens.

Fontainebleau, France and at the University of Virginia Darden School of Business, Charlottesville, U.S.A. The Global Compact in Spain was launched in 2002 at the same time as the then UN Secretary-General Kofi Annan's official visit to Madrid. In 2004, the Global Compact Network Spain was founded. In November 2004, during its third General Assembly, the Network formed the AsociaciÞn Espanola del Pacto Mundial de Naciones Unidas (Spanish Global Compact Association, ASEPAM), becoming only the second network world-wide, after India, to seek legal status as a chartered organisation. Today, it is a public utility entity and member of the Spanish Corporate Social Responsibility Council (CERSE). In Spain, there are currently 1,796 members of the Global Compact.

The first responsibility of a company is fulfilling its purpose and job creation, offering goods and services that are useful to society as well as focusing innovation, wealth and prosperity. CSR has to improve the value in a corporation or probably cease to be sustainable. CSR, if done right, is good business; if not, it is a dispensable expenditure.

82% are companies (287 large companies and 1,190 SMEs), while 12% are other entities (32 public sector companies, 60 educational entities, 66 trade unions and business organisations and 161 third sector organisations). www.pactomundial.org www.unglobalcompact.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

Trustworthy leadership promotes long-term success and sustainability Long-term, sustainable success should be one of the top goals for any leader. Leadership is about moving forward and accomplishing great things. Sustainable leadership adds the overlay of thinking about the future, considering the impact of one's actions on people's lives, the health of the planet and our long-term viability as a species. At this point in reading an essay like this, many people may start to tune out Ð thinking this is the same song they have already heard many times Ð do good because it is the right thing to do. Others may pick up on the word "overlay" and think about how they can create a veneer of sustainability while continuing to focus on taking in the most money for themselves and their colleagues.

Amy Lyman Co-Founder Great Place to Work¨ Institute

Neither of these extremes makes sense from a leadership perspective. Doing good because it's the right thing to do misses the point that doing good is actually quite profitable Ð in all the ways that people can measure profit, including financially. And those people who want to take in the most money for themselves and their colleagues? Well, they'd best study up on the stories of leaders seeking sustainable, long-term success, for they are the ones who are creating the greatest wealth for themselves and others. Yet, it is not just all about the money Ð it's never all about the money. The leaders of the 100 Best Companies to Work For in the United States run successful organisations that do well and do good. They are financially successful organisations in

which creativity and innovation thrive, people look forward to coming to work and inequality is noticeably less than in the non-best companies. The profits that great leaders help to generate include financial ones yet do not stop there. Employees gain from the long-term success of their companies in which 73% of people believe that often or almost always they receive a fair share of the profits made by their organisations. They also gain from the positive reputations of their companies in the community, with 93% of people feeling proud to tell others where they work, and proud of their contributions to the community, 86% of employees at the 100 Best want to work for their organisations for a long time, which benefits the companies as their recruitment costs are significantly lower than those of their competitors. Success that comes from leadership focused on sustainability happens in great workplaces all around the world. The Great Place to Work¨ Institute selects the Best Workplaces in 45 countries and regions, identifying those organisations in which the highest levels of trust can be found between between employees and management. These companies, like those in the United States, tend to be the most successful companies, because their leaders aim for long-term sustainability. In my own research studying Trustworthy Leaders, I have found that the people who lead with a sense of the honour of leadership and promote the inclusion of all people in the life

Amy Lyman is the Co-Founder of Great Place to Work¨ Institute and the author of The Trustworthy Leader: Leveraging the Power of Trust

to Transform Your Organization (Jossey-Bass, 2012). Amy has spent 30 years studying organisations, seeking to understand what helps some to thrive while others fall apart. Her current focus is on the contributions of Trustworthy Leaders to organisation success. Amy advises leaders and organisations interested in enhancing the practice of trustworthy behaviours. She is a featured speaker at workshops and conferences and develops custom presentations. She received her Ph.D. from the University of Pennsylvania and her B.S. from the University of California, Davis. She began her consulting work at the Wharton Center for Applied Research (WCAR) and was a founding board member of the Family Firm Institute, Inc. Great Place to Work¨ Institute is a global research, consulting and training firm with over 40 affiliates operating in 45 countries and regions of the world. Great Place to Work produces the Fortune 100 Best Companies to Work For annual list and the Best Small & Medium Workplaces to Work For in America lists, along with Best Workplaces lists in 18 European countries and the 100 Best Workplaces in Europe annual list. Countries and regions around the world in Latin America, Asia, Africa and the Middle East are also represented in the Institute's work. www.greatplacetowork.com

of the organisation are the most highly regarded leaders. They are able to move through the uncertainties of the marketplace with greater success, and pursue opportunities that others fail to see. They are more successful, because

their trustworthy stance promotes the health and wellbeing of the organisation. They think about the impact of their actions on others and on the planet and they try to do good. They also do very well Ð for everyone.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

Peter F. Drucker famously noted that "management is doing things right; leadership is doing the right things." The choice has always been a haunting challenge for individuals, institutions, businesses and governments. The incremental managerialism of business as usual so comfortable at sunny days turns into an ominous trap at times of thunderstorms, like the one the world is living through now.

sense of the word, education, culture and social cohesion, including the absence of glaring gaps between the rich and the poor.

Doing the right things

The emerging signs of recovery in the world economy should not deceive us. The crisis has shown that the currently dominant model of economic growth is unsustainable. This model engenders crises, social injustice and the danger of an environmental catastrophe. Therefore, to do the "right things" today means to pave the way for an evolutionary, but sufficiently rapid transition to a different model. There are three gaps that need to be bridged if we want to start doing the "right things". Alexander Likhotal President Green Cross International

First, we need to overcome the irreconcilable and unsustainable gap that modern economic system rests upon Ă? we must come to grips with reality: limitless growth on a finite planet is not possible. We need to rethink the goals of economic development. Consumption must not remain the only or the principal driver of growth. Growth should be seen as a tool of societal development. The economy needs to be reoriented to goals that include public goods, such as a sustainable environment, people's health in the broadest

Second, we must close the gap between rhetoric and reality. In celebrating the green successes of corporations and governments, we must ensure that their actions truly represent progress for the sustainability agenda. The greening of the economy is just one part of what must be a multi-layered response. As a starter, it will incorporate a dramatic increase in resource productivity, a reduced reliance on fossil fuels and a switch to alternative and renewable sources of energy. We cannot be fooled into thinking that such "economic greening" will be the silver bullet for sustainable development. Rather, this is just a step on the road towards sustainability, and the global community must invest equal energy in securing peace, eradicating poverty and protecting our natural resources. Third, as ideas are easy, but execution is hard, there is a huge implementation gap that is blocking our progress. So that we prevent execution skidding the civil society, capabilities must be enhanced to allow for greater actionable leadership to advance sustainable development objectives locally, where the real life problems are. Just to illustrate the civil society ability to close this "knowing

Prof. Alexander Likhotal is the President of Green Cross International. He holds doctorates in Political Science from the Moscow State Institute for International Relations (1975) and in History from the Institute of World

Ă? doing" gap, I would like to refer to the last two to three years of the Green Cross experience. More than 40,000 people in Ghana and Bolivia are now receiving safe drinking water thanks to the Smart Water for Green Schools programme. Green Cross advocacy has been instrumental in pushing major powers, including the United States and Russia, towards disposal of chemical weapons.

technology, resources, productive potential, and ability to feed everyone on earth. We also have many successful examples of legislation, initiatives, and best practices at multiple scales on which to build. Thus, the challenge is not about money, but values and priorities.

Economy and International Relations of the U.S.S.R. Academy of Sciences (1987). In addition to an academic career as a Professor of Political Science and International Relations, he served as a European Security analyst for the Soviet Union leadership. In 1991, he was appointed Deputy Spokesman and Adviser to the President of the U.S.S.R., Mikhail S. Gorbachev. After the latter's resignation, Prof. Alexander Likhotal served

Leadership calls for taking the right decisions at the right time. Yesterday, it was too early; tomorrow, it might be too late.

as his adviser and spokesman and worked at The Gorbachev Foundation as its International and Media Director. Having joined Green Cross International in 1996, he is actively involved in furthering the sustainable development agenda. Alexander is a member of the Club of Rome. Born in Moscow in 1950, he is married with one daughter.

Values are changing and children's attitudes are being shaped due to the environmental awareness that is growing in Japan, Australia, South Korea and Sri Lanka through the Green Lane Diary campaign.

Founded by Nobel Peace Prize laureate and former President of the U.S.S.R. Mikhail S. Gorbachev in 1993 in response to the 1992 Rio Earth Summit call to create a "Red Cross for the environment", Green Cross International (GCI) is an independent, non-profit and non-governmental

Thousands of people in South-East Asia, Northern Iraq and areas affected by the Chernobyl nuclear disaster are receiving health care and other support, thanks to Green Cross staff.

organisation working to address the inter-connected global challenges of security, poverty eradication and environmental degradation through a combination of advocacy and local projects. GCI seeks solutions through dialogue, mediation and co-operation to ensure a sustainable and secure

Continuous advocacy is helping promote smart, renewable and alternative energy sources that can help save our planet, stimulate new economies linked with sustainable power, and end the reliance on fossil fuels as well as on nuclear energy.

future. GCI operates five international programmes that use advocacy and on-the-ground projects to fulfill the organisation's mission, those being Water for Life and Peace, Environmental Security and Sustainability, Value Change, Smart Energy, and Social and Medical. Headquartered in Geneva, GCI has a growing network of national organisations in over 30

We have never had greater global capacity, understanding, material abundance, and opportunities to offset the challenges we face. This includes scientific knowledge, communications,

countries on all continents. www.gcint.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

Countries' competitive performance Ă? Fiction, fact and explanation The 2010-2011 Global Competitiveness Report (GCR) ranks three small, resource-poor countries (Switzerland, Sweden and Singapore) respectively in the first, second and third place out of 139 countries (table 1). This is an astounding result given that much larger and resource-rich countries such as the U.S.A., Canada and Australia ranked in the 4th, 10th and 16th place. In reality, the disparity is considerably greater in favour of Switzerland, Sweden and Singapore, because the GCR is heavily biased in favour of Anglo countries, in particular the U.S.A. (Bergsteiner and Avery 2012, "When ethics are compromised by ideology: The Global Competitiveness Report", Journal of Business Ethics). When the necessary corrections are made to eliminate the bias, the rankings of the U.S.A., Canada and Australia will be correspondingly worse and could slip by anywhere between 10 and 30 positions.

Dr. Harald Bergsteiner and Dr. Gayle C. Avery Co-Founders Institute for Sustainable Leadership (ISL)

TABLE 1: GLOBAL COMPETITIVENESS OF NATIONAL ECONOMIES GCI 2010-2011 rank

GCI 2010-2011 score

GCI 2010-2011 rank among 2009 countries

GCI 2009-2010 rank

Switzerland

5.63

Sweden

5.56

Singapore

5.48

U.S.A.

5.43

Germany

5.39

Japan

5.37

Finland

5.37

The Netherlands

5.33

Denmark

5.32

Canada

5.30

Hong Kong SAR

5.30

U.K.

5.25

Taiwan, ROC

5.21

Norway

5.14

France

5.13

Australia

5.11

Country/Economy

Source: The Global Competitiveness Report 2010-2011 (first 16 countries shown only), World Economic Forum.

Given their greater inherent potential, countries, such as Australia, Canada and the U.S.A., ought to be out-competing countries like Switzerland, Sweden and Singapore by a huge margin; but, they are not. Research carried out by the Institute for Sustainable Leadership (ISL) explains why. The explanation for the high ranking of Switzerland, Sweden and Singapore, notwithstanding the significant distortion in favour of Anglo countries, is that higher-performing countries have been quicker to adopt leadership practices and industrial relationship systems Ă? variously known as Rhineland capitalism, stakeholder-centred capitalism or in ISL's terms, Honeybee Leadership Ă? that are suited to modern, complex, global, innovation-driven economies. Anglo countries, for their part, are clinging, though by different degrees, to leadership practices and industrial relationship systems that are reminiscent of a bygone era. The latter approach is variously known as Anglo-U.S. capitalism, neo-liberalism or liberal market economics, and in a more extreme form as the Washington Consensus, the Chicago School or market fundamentalism. ISL's term is Locust Leadership. The substantially better performance of countries that are more accepting of Honeybee Leadership vis-a-vis ` countries that mostly favour Locust Leadership is convincingly demonstrated in trade statistics compiled by the CIA (table 2) for 198 countries. Here, Honeybee countries substantially outrank Locust economies.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

INSTITUTES & NETWORKS

TABLE 2: CURRENT ACCOUNT BALANCE (CAB) OF EIGHT DEVELOPED COUNTRIES Total surplus/deficit (USD billion)

Population (million)

CAB/capita (USD)

CAB Rank (out of 198)

Switzerland

76.7

7.7

9,961

Singapore

42.1

5.4

7,798

Sweden

41.6

9.1

4,571

Germany

149.3

81.3

1,836

U.K.

-66.6

63.0

-1,057

171

Australia

-30.7

22.0

-1,395

179

Canada

-52.6

34.3

-1,533

181

U.S.A.

-599.9

313.8

-1,911

187

Country/Economy

Source for columns 1 and 2: https://www.cia.gov/library/publications/the-world-factbook. Note 1: The first seven countries (not shown on table) derive their wealth largely from oil, gaming or the financial/tax sector. Note 2: The uncompetitiveness of the U.S.A. is recognised by the U.S. legislature. In 2007, President George W. Bush signed into law the "America COMPETES Act" (capitalisation part of original), an Act designed "to improve the competitiveness of the United States".

Honeybee Leadership delivers high performance, because it does not simply equate sustainability with the triplebottom-line, but expands it to include brand and reputation, customer satisfaction and long-term stakeholder value. More importantly, the Honeybee Leadership model is characterised by 23 mutually reinforcing leadership practices, each one of which delivers competitive advantage. In combination, this constitutes a powerful bundle of practices that is difficult to copy and that delivers superior outcomes. Honeybee Leadership is not a zero-sum game, and it does not condone dog-eat-dog practices. The result is enhanced stakeholder engagement, innovation and quality in products and services. As practice and research show, this delivers exceptional performance at the enterprise and national level over the long term. ISL's mission, therefore, is: to assist business, government and the not-for-profit sector to achieve quantum leaps in performance that enrich all stakeholders over the long term.

QUANTUM LEAPS IN ORGANISATIONAL PERFORMANCE THROUGH SUSTAINABLE LEADERSHIP PRINCIPLES The terms "sustainable" and "leadership" imply moving towards a desirable future state. Two diametrically opposed leadership philosophies Ð "locust" and "honeybee" leadership Ð tend to produce vastly different outcomes over the long term. The locust metaphor reflects a tough, ruthless, antisocial and profit-at-any-cost business philosophy that delivers inferior outcomes over the long term. By contrast, the honeybee metaphor alludes to 23 mutually supportive leadership practices that demonstrably deliver superior performance across a broad spectrum of outcomes in a sustainable way. Honeybee organisations enjoy greater longevity (they can weather tough times); have better brand and reputation (they commit to ethical behaviour, and to environmental and social responsibility); have more satisfied customers (they have more engaged staff, and more innovative products and services of higher quality); and they outperform locust organisations on various financial metrics and in creating long-term value for a wide range of stakeholders. 23 practices distinguishing honeybee from locust leadership were identified as a result of a detailed examination of 50 high-performance organisations around the world, and a huge body of research of the management literature. This overwhelmingly showed that all 23 practices individually

confer competitive advantage. Collectively, they constitute an integrated, mutually reinforcing and difficult-to-copy bundle of practices that results in greater resilience, better sustainability and better employer branding, lower share price fluctuation, and higher profitability (dispelling false notions that sustainable enterprises are driven by altruism). To help organisations understand how these practices interact and support each other, and in order to provide a means of prioritising actions when an organisation desires to change from a locust to a honeybee culture, we have developed the Sustainable Leadership Pyramid (SLP). The SLP groups the 23 practices into 14 foundation practices, six higher-level practices and three key performance drivers. The 23 practices interact dynamically in all directions to influence the performance outcomes and ultimately the organisation's sustainability. However, the higher level practices do not evolve in the absence of certain lower-level foundation practices. Trust, for example, is a higher-level practice that depends on certain foundation practices being in place. After all, managers cannot simply inject trust into an organisation the way they can introduce training programmes! Creating and sustaining trust requires the contribution of many foundation practices, for example: – people being continuously trained and developed (can you rely on unskilled colleagues?) – amicable labour relations (can you trust an employer

who antagonises employees?) – retaining staff over the long term (who can feel safe if layoffs occur at any time?) – ethical behaviour (why would one trust an unethical organisation?) – environmental responsibility (can one trust an employer who exploits the environment?) Furthermore, the SLP not only explains what makes sustainable organisations more competitive, it is also a diagnostic tool. It has, for example, been used to identify the reasons for the long-running under-performance of General Motors on the one hand, and the quite extraordinary success of BMW on the other. Through the application of our Sustainable Leadership Questionnaire (SLQ), it is also possible to derive quite detailed information about sustainability gaps in an organisation's culture, behaviours and systems. Given the demonstrable benefits that sustainable leadership principles bring to an organisation, in both financial and non-financial ways, it is surprising that investors are not insisting that managers run their businesses using sustainable practices. It is surely better for brand and reputation to operate on ethical principles. It is essential for a firm's longevity to consider the long-term implications of decisions, not just the short-term benefits to one or two stakeholders.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

THE SUSTAINABLE LEADERSHIP PYRAMID

INSTITUTES & NETWORKS

References Avery, G.C. & Bergsteiner, H. 2011. Sustainable Leadership: Honeybee and Locust Approaches. U.K.: Routledge. Avery, G.C. & Bergsteiner, H. 2011. Diagnosing Leadership in Global Organisations: Theories, Tools & Cases. Melbourne: Tilde University Press. Avery, G.C. & Bergsteiner, H. 2011. Sustainable Leadership: practices for enhancing business resilience and performance, Strategy & Leadership, 39(3), 5-15. Avery, G.C. & Bergsteiner, H. 2011. How BMW successfully practices sustainable leadership principles, Strategy & Leadership, 39(6),11-18.

SUSTAINABILITY

Bergsteiner, H. & Avery, G.C. 2012. When ethics are compromised by ideology: The Global Competitiveness Report, Journal of Business Ethics, DOI: 10.1007/s10551-011-1136-y.

brand & reputation customer satisfaction financial performance long-term shareholder value long-term stakeholder value

PERFORMANCE OUTCOMES strategic, systemic innovation

staff engagement

quality

KEY PERFORMANCE DRIVERS devolved & consensual decision-making

selfmanagement

team orientation

enabling culture

knowledge retention and sharing

trust

HIGHER-LEVEL PRACTICES developing people continuously

amicable labour relations

long-term retention of staff

internal succession planning

valuing people

ceo and top-team leadership

ethical behaviour

long-term perspective

considered organisational change

independence from financial markets

environmental responsibility

social responsibility

stakeholder approach

strong, shared vision

FOUNDATION PRACTICES ÂŠ Dr. Harald Bergsteiner

Dr. Harald Bergsteiner's professional background originally is in

leadership programmes for senior executives and has written

architecture and town planning. Both professions involve co-ordinating

numerous books, journal articles, reports and papers, including co-

and leading multi-disciplinary teams, and require skills in the analysis,

authoring Honeybees & Locusts: The Business Case for Sustainable

planning, implementation and management of complex projects.

Leadership.

Drawing on these skills, Harry has since 1996 made a transition to the field of management/leadership, culminating in 2005 with the award of

The Institute for Sustainable Leadership (ISL) is an independent non-

a Ph.D. in Management. His specialty is the development of descriptive,

profit organisation that promotes the science and practice of sustainable

diagnostic and prescriptive management/leadership models and tools

leadership through research and education. Sustainable leadership

to assist practitioners in dealing with the complexity of management/

refers to those behaviours, practices and systems that create enduring

leadership. Since 2001, his focus has shifted increasingly to the field

value for all stakeholders involved in organisations, including investors,

of sustainable leadership. He is an Honorary Fellow of the Australian

the environment, humans, other species, future generations and the

Catholic University.

community. ISL's mission is to assist business, government and the not-for-profit sector to achieve quantum leaps in performance that

Dr. Gayle C. Avery is an internationally renowned expert in leadership,

enrich all stakeholders over the long term. With a strong practical

particularly in sustainable leadership. As Professor of Management

orientation, ISL's models and frameworks have been developed from

at Macquarie Graduate School of Management in Sydney, she divides

observations of best practice organisations based in different parts of

her time between academe and managing the Institute for Sustainable

the world. However, the principles of sustainable leadership are also

Leadership (ISL). Gayle Avery has extensive entrepreneurial and

well-supported by evidence published by international researchers.

employment experience in both the private and public sectors in Australia, Asia and Europe. She designs and facilitates customised

www.instituteforsustainableleadership.com

I am personally convinced that one person can be a change catalyst, a "transformer" in any situation, any organisation. Such an individual is yeast that can leaven an entire loaf. It requires vision, initiative, patience, respect, persistence, courage, and faith to be a transforming leader. STEPHEN R. COVEY Internationally respected leadership authority, family expert, teacher, author and organisational consultant (1932 - )

Every ceiling, when reached, becomes a floor, upon which one walks as a matter of course and prescriptive right. ALDOUS HUXLEY English writer and one of the most prominent members of the famous Huxley family (1894 - 1963)

I don't go by the rule book... I lead from the heart, not the head.

Our greatest glory is not in never falling, but in rising every time we fall.

DIANA, PRINCESS OF WALES Humanitarian and philanthropist (1961 Ă? 1997)

CONFUCIUS Chinese politician, teacher, editor and social philosopher of the Spring and Autumn Period of the Chinese history (551 - 479 B.C.)

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

Leading the sustainable enterprise Ă? Executive education in focus The sustainable enterprise is highly responsive to the demands and challenges from both markets and societies (erroneously called the "non-market environment" in some strategy literature). It optimises competitiveness as well as legitimacy and mutually beneficial relationships with key stakeholders by constantly adapting and renewing its value propositions through its portfolio of products, services, its brand positioning and communications. It also pays attention to the long-term shifts in the political, social and ecological environment on which it depends for its resources. It is concerned with its reputational capital and the trust (social capital) it needs to keep transaction costs low and to benefit from a favourable license to operate.

Prof. Gilbert Lenssen, Ph.D., MBA President ABIS - The Academy of Business in Society

"Sustainability" and "sustainable development" are often referred to an intergenerational solidarity from a mainly ecological perspective and have become widely used since the report of the Club of Rome on the "limits to growth" in the 1970s. However, the way we approach sustainable enterprise here is based on a broader understanding of what sustainable performance means by broadening the outlook on the business environment to include medium- to longterm scenarios and trends which deeply affect the context within which value creation will take place. Managing sustainability has become increasingly complex. There are several causes for this:

1. GLOBALISATION has heralded new opportunities for companies, but also causes new complexities in global supply chains, global competition, cross cultural complexities and clashes of values and norms, weak governance environments, challenges to the power and the legitimacy of big business, anti-globalisation movements. 2. The ICT REVOLUTION has transformed the way business is done and managed, but it has also made the global critical village possible. Global interconnectedness makes news travel fast and endangers reputational capital by the sound-bite driven media. Social, environmental and political issues can emerge and spread quickly and pose risks as well as opportunities for nimble companies. 3. MACRO TRENDS, such as climate change, resource depletion, environmental depletion, demographic change, geo-political change, talent shortages, increasing rich-poor divides between and within societies, affect business models in the medium to long term and create new winners and losers. This affects all business functions: procurement, marketing, finance, accounting, human resource management, product development, R&D... It will also affect the economics of the business models and the valuation of equities through risk assessment and risk mitigation, and will change the competitive context of entire industries by the best companies are likely to

make to take advantage of the changing circumstances. The challenges to the governance of the firm are thus formidable, not in the least because investors are looking increasingly at the sustainability risks and opportunities underlying the business model and long-term strategy of companies. Firms are well advised to take a strategic approach to these challenges in order to identify threats and opportunities as well as their strengths and weaknesses. Resources need to be allocated, capabilities need to be developed and new knowledge needs to be harnessed. This requires sound judgement beyond normative rhetoric on leadership and corporate responsibility. This normative rhetoric, which is so pervasively used by activists within and outside the business schools, is a serious impediment for mainstreaming the sustainable business agenda in executive education and executive practice, since this does not connect with the life world of executives and, at best, leads to tactical responses to activists' demands. Some CEOs might be posturing and paying lip service to the "urgent needs" of "concerted action, transformational change required", especially around "summits", but fail to lead and manage change internally, not in the least because management development for sustainable development is not adequate and because only a handful top business schools seem capable of supporting this.

ABIS - The Academy of Business in Society has developed a framework for executive education with these leading top schools together with experts in asset management and equity research. This framework leads executives through a systematic approach of strategic analysis and business planning as follows: Each section is supported by full business case studies. 1. ACCOUNTABILITY: SUSTAINABILITY RISKS What is the business model of the company? What are the social and environmental impacts/externalities? Which are the inherent risks (political, regulatory, social, environmental) in this model? Which risks are most critical? Use risk prioritisation and risk mitigation models. 2. RESPONSIBILITY: SUSTAINABILITY ISSUES AND TRENDS Which major issues (latent, emerging, maturing) are affecting the business model? How is the company managing these issues (defensive, compliance, managerial, strategic)? How will the business model be affected in the long-term by major macro trends, like climate change, resource depletion, demographic change, geo-political change, etc? How should the company protect and enhance value in facing these issues and trends?

3. BUSINESS GROWTH STRATEGY Especially in emerging markets taking advantage of enormous growth opportunities. How can growth be sustainable? How can the company contribute to a sustainable development scenario in these markets? Explore the business environment in the particular countries and identify long term issues and trends that impact on a sustainable business development from an ecological, political and social perspective. Consider cultural and governance complexities. 4. STRATEGIC DIFFERENTIATION: CREATING COMPARATIVE ADVANTAGE How can a sustainability related value proposition enhance strategic advantage? How can business models lower disadvantaged exposure to macro trends? Choose responses to high impact (materiality, reputation) factors inside-out and outside-in using the Porter analysis. How can differentiation be achieved? Apply first mover advantage/disadvantage analysis. Define shortcomings in core competencies and capabilities and identify developmental routes and partnerships to overcome these. 5. GOVERNANCE What can the company achieve on its own terms and where are the limits in terms of profitability and competitiveness? Should the company take an industry

EUROCHARITY YEARBOOK 2011/12

leadership or a follower role? What are the external governance challenges: industry sector relations, regulatory issues, government relations, partnerships with NGOs? What are the internal governance challenges: e.g. the engagement and support by the Board? ABIS has developed full business case studies, supported by texts to support proper analysis. These are available to ABIS members. They include a comprehensive Sustainability Assessment model developed with asset management experts and a model to analyse current and future business models with respect to sustainability risks, issues and strategies. The company cases include: Shell, Walmart, Nike, GlaxoSmithKline, Unilever, Norsk Hydro, illycaffÂ?, Novo Nordisk, IBM, Microsoft, BP, McDonald's, Nike, Merck, Umicore, Johnson & Johnson, Intel, TNT, Waste Concern and others. The modules are offered free of charge to ABIS Member Business Schools in emerging markets. Over the last 30 years, international business needed to adapt to several waves of deep, even revolutionary change. The 1980s saw the consumer revolution which followed the quality revolution. The 1990s were the onset of the ICT revolution and a phase of accelerated globalisation of markets which has transformed business. We are now witnessing the emerging sustainability revolution. Adaptation,

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

anticipation, strategic bets, industry leadership, innovation, exploiting disruptive technologies, winning new markets and developing new business models will be the order

of the day, like in any major transformation we have seen in the past. This will create winners and losers in the new emerging global competition.

A business contribution to sustainable globalisation FROM SHAREHOLDER VALUE VERSUS "CSR" TO SUSTAINABLE ENTERPRISE

INTERNAL CAPABILITY OF THE FIRM

EXTERNAL GOVERNANCE ENVIRONMENT

BUSINESS CONTRIBUTION TO SUSTAINABLE GLOBALISATION Source: ABIS - The Academy of Business in Society, 2011.

Prof. Gilbert Lenssen, Ph.D., MBA is the President of ABIS - The Academy

CBS, Cranfield, Ashridge and global corporations such as IBM, Johnson

of Business in Society. He was Professor of International Management at

& Johnson, Microsoft, Shell and Unilever. U.S.-based foundations as

Leiden University, Professor of International Management at the College

well as the European Commission and corporate sponsors fund the

of Europe (Bruges/Warsaw) and Visiting Fellow in Strategic Management

activities. ABIS has been leading in over 100 medium-sized and large

at Templeton College, University of Oxford. He is a member of the Board

research initiatives and educational programmes and published over

of the European Foundation for Management Development (EFMD) and

150 papers and books on corporate responsibility and sustainability.

member of the editiorial board of Corporate Governance: The International

Apart from these, scholars taking part in the numerous ABIS research

Journal of Business in Society, The Journal for Strategy and Management

initiatives have published their work in specialised journals. The Academy

and The Journal for Management Development. He is Visiting Professor

organises three major conferences each year in Europe, the Americas

at Cranfield University, and teaches modules on Managing the Sustainable

and Asia. Furthermore, ABIS supports the development of Ph.D. students

Enterprise at Rotterdam School of Management, Erasmus University

and sponsors Post-Doctorates from emerging countries like China, India

(RSM) and ENPC MBA Paris. He has been a Life Fellow of the Royal

and Brazil. In the Corporate field, ABIS has led major action learning

Society of Arts (London) since 1995 and former Global Vice-President

projects on Valuing Non-Financial Reporting, Equity Assessment in

of BP Solar International (1995-1999). He served as an Executive in

Sustainability, Organisational Change Agency, Leadership development

Marketing, Planning and Human Resource Management, Corporate

for high potentials, Public-Private Partnerships for Governance and

Affairs and Corporate Communications for BP in the U.S.A., Germany,

other projects. ABIS sees its mission as providing the framework and

U.K. and Spain (1975-1995). Amongst his corporate achievements are

facilitation of rigorous and business relevant academic research, by

the diversification of the retail business, a "federal organisation" for

sober analysis and incremental enhancement of business education and

manufacturing in chemicals, the "greening" of BP's corporate and retail

business practice in response to the significant challenges of sustainable

image and strategy. Gilbert has a Doctorate of Social Sciences from the

development.

University of Antwerp, Belgium (1996). ABIS - The Academy of Business in Society is a global network of over 80 business schools and universities world-wide, as well as 40 global companies committed to mainstreaming sustainability in management education and management practice. ABIS has offices in New York, Brussels, Shanghai Ă? and soon in Brazil and Australia. ABIS was founded in 2001-2002 by major schools like INSEAD, ESADE, IESE, IMD, LBS,

www.eabis.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

2011 Top Companies for Leaders Committed Ð Comprehensive Ð Connected Ð Culturally Agile Leadership is the single largest determinant of business success. Organisations that excel at cultivating leaders gain an edge over their competition. With globalisation driving change, the demand for agile leaders will continue to intensify. Most organisations still cannot find or develop leaders fast enough to address the multitude of challenges that their companies are facing. However, they know that having the right leaders in place today, and a strong and sustainable pipeline for tomorrow, is vital for success. Since the Top Companies for Leaders study's inception in 2001, the factors that drive a winning leadership culture have been identified. Like their predecessors, the 2011 Global Top Companies for Leaders are passionate and committed to leadership development. Their leadership programmes are practical, relevant and aligned with business goals. Top Companies have an intense focus on talent, and they are deliberate about hiring, coaching, developing and rewarding success. Finally, leadership development at these organisations is an embedded practice and mindset.

When comparing the Global Top Companies for Leaders to more than 470 companies world-wide, the study identified a strong connection between business strategy and leadership strategy. All of the Global Top Companies have articulated a clear business case for investing in leadership as a strategic imperative. Nearly 85% of Top Companies say their leaders can explain how the investment in leadership

affects financial performance, while only 54% of all other companies in the study can say the same. In fact, 92% of Top Companies say their stakeholders understand how their leadership strategy creates value, compared to just 78% of all other organisations in the study. ABOUT THE RESEARCH Initiated in 2001 by Hewitt Associates (now Aon Hewitt), Top Companies for Leaders is the world's most comprehensive longitudinal study of leadership and leadership practices. The study, recognised for its global scope and research rigor, attracts hundreds of companies around the globe that seek outside-in insights on leader building and how the best develop and sustain their leadership pipeline. This year, Aon Hewitt is excited to be working once again with FORTUNE, the leading global business publication, and The RBL Group, the esteemed HR strategy and leadership consultancy founded by thought leaders, Dave Ulrich and Norm Smallwood. 2011 GLOBAL TOP COMPANIES FOR LEADERS Featured below is the list of the Top 25 Global Top Companies for Leaders: 1. IBM 2. General Mills, Inc. 3. The Procter & Gamble Company 4. Aditya Birla Management Corporation 5. Colgate-Palmolive Company 6. Hindustan Unilever

7. ICICI Bank Limited 8. McDonald's Corporation 9. Whirlpool Corporation 10. PepsiCo, Inc. 11. General Electric Company 12. Banco Bilbao Vizcaya Argentaria (BBVA) 13. Natura Cosmeticos S.A. 14. Deere & Company 15. 3M Company 16. Eli Lilly and Company 17. McKinsey and Company 18. L'OrÂ&#x17D;al 19. Unilever 20. Siemens AG 21. Intel Corporation 22. China Vanke Co., Ltd. 23. Wipro Ltd. 24. Bharti Aritel 25. Novartis AG EUROPEAN RESEARCH HIGHLIGHTS: WHAT DIFFERENTIATES TOP COMPANIES FOR LEADERS IN EUROPE Top Companies understand and execute the fundamentals of good leadership very well. Placing a high priority on these initiatives, implementing them diligently and being persistent in safegarding them is what truly differentiates Top Companies from other organisations.

TOP COMPANIES ARE COMMITTED TO BUILDING LEADERS THROUGHOUT THEIR ORGANISATION Top Companies perceive the critical importance of leadership. With no exception, they have articulated a clear business case for investing in leadership as a strategic imperative (100% of Top Companies vs. 74% of other participants). Their CEOs declare leadership strategy as an undisputed #1 leadership activity (71% vs. 46%). Drilling down further, to a very high extent, Top Companies have specific strategies for leadership practices in place.

STRATEGIES FOR LEADERSHIP PRACTICES

Top Companies

Others

Source: Aon Hewitt; Top Companies for Leaders European Research Highlights 2011.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

Top Companies also link these leadership strategies to the overall business strategy. Furthermore, all Top Companies act in a future-oriented fashion, having succession plans in place.

The "connected factor" is evident in the way leaders coach, mentor, and develop talent. These leaders work to understand who their talents are, what inspires them, and their aspirations. Senior-most leaders in Top Companies are starting to embrace the personal side of leadership. By attending to the emotional aspects of their people, they experience more energised and committed leaders. It's about fostering trust in people, trust in the culture, and having influence. One CEO talks about the need for individuals to "bring their whole self to work."

TOP COMPANIES ARE COMPREHENSIVE IN THEIR PRACTICES AND EXECUTION Top Companies are less restrictive than other companies in their definitions of talent and high potential. When seeking future leaders, Top Companies do not limit themselves to senior management, but also include middle and front-line management. Regarding their investment in leaders, all Top Companies state that their organisation is committed to investing in leaders at all levels of the business (vs. 75% of other organisations) and in all geographies in which they operate (vs. 80% of others).

TOP COMPANIES ARE CONNECTED TO TALENT AND CULTURE There is a palpable connection in these organisations Ð their leaders walk the talk, they are passionate about their role as leaders of their organisation, and most importantly, they are zealous in their efforts to bring others along to share in their excitement. As one CEO stated, "Performance cannot be delivered without purpose and purpose leads to performance." This connectedness impacts an organisation's ability to thrive in the changing business landscape. Top Companies understand this and Ð more importantly Ð they embrace it.

In addition, Top Companies believe in the strength of competencies: 100% utilise a defined leadership competency model or other formal description of high performing leadership (vs. 78% at other organisations). They clearly define fundamental leadership competencies and include them in their competency model. TOP COMPANIES ARE CULTURALLY AGILE AND ENGAGED IN DIVERSITY Cultural agility is paramount to success. Leaders must think globally, but act locally. The Top Companies know this, and they are actively working to develop these capabilities. Difficulty moving talent across functions and geographic mobility limitations are among the dominant top challenges organisations face in developing talent. Top Companies also set up development practices and programmes specifically geared towards removing barriers

LEADERSHIP COMPETENCIES

for the movement of talent, providing a variety of development opportunities and a wide portfolio of experiences. They realise that a diverse workforce beyond the traditional elements of gender and ethnicity, one that embraces diversity of thought and experience, allows their leaders to flourish in an evergrowing, ever-changing workforce. Increasing the diversity of the leadership group is a formal part of the leadership strategy for all Top Companies (100% vs. 70%). TOP COMPANIES ARE DISCIPLINED ABOUT MEASURING Measurement is a discipline consistently deployed throughout the whole leadership process of Top Companies. All Top Companies have specific criteria to measure their overall effectiveness in achieving strategic leadership objectives (vs. 78% of other organisations). Top Companies are most likely to use the following three standards to measure strategic leadership progress: achieving overall financial results (100% vs. 83%), meeting financial goals for growth (86% vs. 78%), and strength of leadership pipeline (86% to 52%). This ranking clearly illustrates that efforts with respect to leadership are not considered in isolation; Top Companies link leadership strongly to business results.

Top Companies

Others

Source: Aon Hewitt; Top Companies for Leaders European Research Highlights 2011.

The Top Companies are attracting, developing and engaging great leaders. Are you? www.aonhewitt.com

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

We know the world needs change, and we know there are plenty of actual and potential solutions out there.

between ecology, economy and society, about improving the quality of human life, while living within the carrying capacity of our planet, about stewardship, and smarter and more equitable resource use.

Time to lead

What's missing most right now is the leadership to breathe life into the ideas we already have, to turn them into action and to get the rest of us involved, and to allow new ideas and thinking to germinate and flourish. At the Centre for Sustainability Leadership, our mission is deceptively simple Ă? to identify, empower and connect emerging (25-to-35-year-old) leaders, ranging from economists, engineers, entrepreneurs and community workers, to lawyers and doctors, artists and architects. Our starting premise is that in order to create change for a sustainable future, instead of getting people in positions of power to care about sustainability, we aim to get people who care into positions of influence. Andrew Foran CEO Centre for Sustainability Leadership

We do this through our annual Fellowship Programmes in Australia, and globally through our on-line platform Leadership Rewired, building their skills, knowledge and networks so they can better lead and influence change. What exactly do we mean by sustainability leadership?

We embrace that the meaning of sustainability is necessarily broad and contested. For CSL, it's about aiming for equilibrium

As for leadership, we look at this not as a characteristic, as something you are, but rather as a process, as something you do. At its simplest, leadership is about seeing a problem and putting your energy into fixing it, about stepping up and doing something that otherwise wouldn't have been done, about organising and working with a group of people to achieve a common goal. Traditionally, people have thought of leaders being those in positions of authority Ă? the boss, the CEO, the captain or the president. Often, those in positions of power and authority are managers rather than leaders. In other words, their job is to protect the status quo, to keep things ticking over, instead of rethinking, reinventing and recreating how we do things. The reality is that plenty of leaders and changemakers have no position of formal authority, but what they all do have is influence. Think of Albert Einstein, Martin Luther King, Jr. and even Oprah. We give these types of leaders an authority, but one that is earned, based on our respect for their work, their views and their practices.

We all have influence, through our choices as a consumer, investor, voter, commuter, employee, parent or offspring. It's when we don't consciously exercise these choices that we default our power to others, to organisations or individuals whose values and vision may not align with ours.

Andrew Foran is the CEO of the Centre for Sustainability Leadership, and was inspired by CSL's approach to creating a sustainable world after a colleague participated in the Fellowship Programme. Previously, Andrew worked in the business sustainability field for several years, with business, government and not-for-profit companies. He was the Founder and General Manager of a successful aquaculture business,

Sustainability leadership, then, is the skill of driving and influencing change towards a sustainable future. It's a practice and journey, not a destination or position. It requires engagement at multiple levels, in workplaces, governments and communities. It's social, dynamic and iterative, not solitary, static and didactic.

holds an MBA and a Graduate Diploma in Environmental Management and Planning, and is the President of the Melbourne branch of the Surfrider Foundation, a global environmental not-for-profit. Our world is in need of leaders and change-makers who have the commitment, courage and skill to drive positive change and realise their aims for a sustainable future. The Centre for Sustainability Leadership

At CSL, we don't teach leadership, rather we provide the optimal environment for leadership to be learnt. We empower emerging leaders to take charge of their own learning and to explore and develop what we see as two fundamental elements of leadership, creativity and courage, and the leadership skills and attributes that derive from them Ă? empathy, vision, communication and collaboration. We help them develop the essential ability to know when and where to step up and lead and when to step back and follow. Ultimately, sustainability leadership is about relationships, about how we work, live, communicate with and influence others towards the common goal of a sustainable future.

(CSL) is an Australian-based not-for-profit company dedicated to expanding the influence of emerging leaders who want to create a sustainable future. CSL runs an annual Fellowship Programme for ambitious sustainability changemakers in both Melbourne and Sydney. This is a unique learning opportunity where selected individuals develop the skills, networks and knowledge needed to be effective in forging a more sustainable future. CSL also operates Leadership Rewired, an innovative and practical e-learning, matching service and networking platform.

www.csl.org.au www.rewired.org.au

FACTS & STATS A call to action for management education Business schools around the world call upon political leaders to agree to an ambitious global climate treaty at COP 15 in Copenhagen, setting a tone of integration and effective co-operation with beneficial effects for the future of our interdependent world. At the PRME/CBS Conference it was agreed that to effectively support an ambitious climate framework, business schools should: INTEGRATE CLIMATE-RELATED TOPICS INTO MANAGEMENT EDUCATION To meet the climate challenges, citizens of the world will have to alter their behavior and the economic, social and political governance systems that support human civilisation. Not only are changes needed in external systems, but also within corporations in their relations with suppliers, customers, competitors, media, civil society and governments. To deal effectively with the changes needed, management education needs to adapt existing knowledge to include issues of climate change and sustainability within core disciplines as

Source: "The Copenhagen Conference Declaration: A Call to Action for Management Education". Presented at the PRME/CBS International Conference on "Responsible Management Education: Sustainable Leadership in the Era of Climate Change", Copenhagen Business School, November 23-24, 2009.

part of the new business imperative. These issues need to be integrated not only into businesses and more technical analyses related to the natural environment, but into the very core of business strategy, and that integration needs to be reflected in business school curricula.

and support professional development, through professional associations, linkages to business initiatives, publication outlets, and ongoing faculty development in these domains, along with encouraging students to incorporate climate change issues into their research.

RESEARCH THE ROLE OF BUSINESS IN A LOW CARBON ECONOMY Companies must base their future decisions on solid research and analyses: a future low carbon and sustainable economy needs to be based on well-researched management practices. Researchers and scholars need to rethink the (often implicit) premises that traditional management models are based upon and create new models of management, economics, and business that are inherently sustainable, have low carbon footprints, encourage disclosure and transparency, and meet true social needs. Business schools should encourage and reward research and other forms of scholarship on issues of management and climate change,

LEAD BY EXAMPLE Business schools must estimate and disclose the carbon impact of research and education activities, take measures to reduce carbon footprint, namely develop energy efficiency saving attitudes, promote renewable energies and sustainable mobility. The aim should be to reduce GHG emissions at least by 40% by 2020, and to reach carbon neutrality by 2030. Climate action and low-carbon innovation is part of the bigger sustainability agenda as advanced by the UN Global Compact, whose values inspired the Principles for Responsible Management Education (PRME).

Sustainable leadership model: Four competencies PERSONAL VISION – Developing strategic objectives: Considers what new strategic activities would take the business forward and works, with others, to develop a vision. – Cultivating key stakeholders: Engages with stakeholders in order to gain their support and influences their behaviour to align with own goals. – Staff development: Equips people with the knowledge, skills and attitude that support a proactive approach. – Managing by exception: Does only those things that are essential in order to make time for the development of strategic objectives.

ENCOURAGING MANAGEMENT – Capability building: Anticipates new demands and prepares people by ensuring the provision of appropriate skills and resources. – Challenge: Provides opportunity for achievement and recognition. – Empowering: Shares power and influence; develops confidence in others through support and challenge within agreed parameters. – Risk tolerant: Retains self-belief and presses ahead when faced with incomplete or conflicting information. Is prepared to act on intuition.

ENQUIRING AND ENTERPRISING EMPLOYEES WHO: – Ownership: Adopt a "self-employed employee" i.e. someone who takes full responsibility for the delivery and development of their work subject to agreed lines of reporting and team working. – Challenging: Constantly question the why, what and how of organisational life. Collaborate with others to widen and expand thought leadership. – Can do: When faced with difficulties, are optimistic and ask "what can be done?" rather than what can't. Persevere. – Entrepreneurial: Are innovative in the use of information, skills and resources to achieve results or deliver new business. Improvise.

ETHICS AND ENVIRONMENT – Personal foundations: Has an underpinning set of beliefs that fortifies them and promotes resilience. – Wellbeing (sustaining self and others): Attends to the physical, psychological and spiritual health of self and others. – Environmental awareness: Has an understanding of, and is attuned to, the environment in order to manage the impact of business and preserve what is precious. – Organisational influence: Demonstrates social responsibility through respect of the environment, honours societal values and makes the community and workplace a positive, pleasant and progressive experience.

Source: Sustainable leadership model, four competencies, Centre for Sustainable Leadership (CSL), http://centreforsustainableleadership.com/node/5.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

Principles for sustainable leadership Ă? The perspective of a PRME signatory Globalisation has had at least one indisputable positive effect: making us aware of the finite qualities of our world. This internationalisation has also made us aware of the damage, sometimes irreversible, that we have done to ourselves and to our environment. This is why higher education institutions, particularly business schools, have huge responsibilities. Decisionmakers must not only create prosperity for their organisations, they must also contribute to the wealth of their ecosystems. Long-term vision, stakeholder integration, collaborative approaches, courage... These are what we need to teach future leaders.

Jean-Christophe Carteron Director of Corporate Social Responsibility Deputy Director of the Corporate Department Euromed Management

The debate over modern education management demands led to the creation of the Principles for Responsible Management Education (PRME). Sponsored by the UN Global Compact, PRME seeks to inspire and champion responsible management education and research. Since its launch, PRME has grown to include over 440 signatories, including management schools and higher education institutions.

If applied correctly, the adoption of the Principles of PRME requires schools to invest significant resources in order to embed this new set of values (Principle 2), experiment with new and more impactful educational frameworks (Principle 3), undertake conceptual and empirical research (Principle 4), engage with and learn from managers (Principle 5), and

establish a constant dialogue with stakeholders (Principle 6), that results in a sustainability-oriented business view that penetrates through to the broader society (Principle 1) (cf. Inspirational Guide for the Implementation of PRME). For some schools, the adoption of these Principles did not bring radical changes to their school's vision and strategy. For these institutions, PRME has been used as tool to upgrade existing values so that they become central drivers of the activities of their school. A number of examples can be found in the PRME Inspirational Guide. Concretely speaking, PRME offers a framework for change through adoption of the six Principles, regular submission of Sharing Information on Progress (SIP) reports, engagement in PRME Working Groups and projects, and participation in regional and global meetings, such as the third PRME Global Forum for Responsible Management Education, an official side event of Rio+20. As a UN Global Compact and PRME signatory, Euromed Management is actively engaged in training of responsible leaders. Like a number of schools across the globe, we believe that our planet and its inhabitants deserve sustainable leadership. PRME has proved to be an effective tool for efforts to foster change at the school level and beyond. A clear example can be found in the evolution of Euromed Management's PRME SIP reports. These reports helped

us develop key performance indicators, and to evaluate and communicate progress on the implementation of the Principles to multiple stakeholders. Although we have based our approach on the French "Green Plan", PRME has played an important role in the definition of the School's CSR strategy. Higher education institutions have every reason to commit their school to the PRME Principles. Not only does the commitment and the reporting demonstrate each school's "responsible" behaviour, it helps create synergies with other

SOCIAL

like-minded institutions. For example, a school can join a working group with other institutions and contribute to their outputs. At Rio +20, the Anti-Corruption, Poverty and Gender Equality Groups will be producing concrete deliveries. As educators, it is our responsibility to prepare future leaders for the increasingly complex world of the 21st century and the PRME Principles are an important starting block for more consolidated international effort to improve management education.

ENVIRONMENTAL

ECONOMIC

and works on leading by example through a more sustainable approach

AS AN ORGANISATION - Waste and pollution - Natural resource preservation - Energy - Climate change - Biodiversity preservation

Christophe Carteron co-ordinates the School's CSR strategy, helps to develop research and pedagogical activities on sustainable development

OUR RESPONSIBILITY

- Personal well-being - Personal development - Health & safety - Human rights - Social & cultural diversity - Employability

Serving as the Director of CSR at Euromed Management, Jean-

of the campus. Jean-Christophe represents higher education in the

- Financial transparency - Short & long-term financial sustainability - Value creation - Community benefit - Development - Anti-corruption - Governance

"Rio+20 Committee", a French government initiative in preparation for the UNCSD, and is a leading actor in three UN Global Compact, PRME and GRLI Working Groups. Founded in 1872, Euromed Management is situated in Marseille, France, in the heart of the Mediterranean. Currently, the School has over 5,000 students in both Bachelor's and Master's programmes. Since 2005, the

AS A SCHOOL

School has embraced the core values and principles of the UN Global

- Socially responsible behaviour of graduates and partners - Personal and professional well-being of graduates

- Inclusion of environmental sustainability issues in the managerial decisions made by graduates and partners

- Long-term vision of graduates and partners - Participation of graduates in the economic and ethical development of society and of companies

Compact and is an active member of the UN Global Compact Academic Working Group and the PRME Sustainable Leadership Working Group. After publishing two sustainable development reports, in 2011 the School

LEVERS OF ACTION

produced its first "integrated" activity and sustainability report.

Source: Euromed Management, 2012.

IN THE ORGANISATION SOCIAL CAPITAL Working and learning conditions, diversity policy, access to knowledge, intellectual development, social dialogue, stakeholder engagement...

ENVIRONMENTAL CAPITAL Transportation policy, building solutions, management of GHG emissions, sustainable purchasing and consumer behaviour...

ECONOMIC CAPITAL International strategy, contribution to local community, investment policy, remuneration policy, green business and functionality economy, quality and efficiency management, risk management, sustainable performance indicators, governance...

IN PROGRAMMES & RESEARCH INTELLECTUAL CAPITAL Pedagogical approach, curriculum content, learning by doing, research themes, transversal research, exemplary behaviour, evolving information source, provident of standards...

www.euromed-management.com

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

If you were going to develop a leadership learning programme for the next generation of sustainability leaders, what would it look like?

options. Professionals find both formal and informal learning opportunities everywhere. The latter includes on-demand learning supported by the Î&#x2122;nternet (for what you need when you need it), social learning which comes through interpersonal relationships and social networks (face-toface and virtual), and the embedded learning that comes from on-the-job or on-the-task learning.

Leadership learning for the next generation

During the past 20 years, LEAD has learned a great deal about leadership in the environment and development fields and, through its model, the leadership skills of over 2,400 leaders globally have been successfully enhanced. In 2012, LEAD will celebrate its 20th anniversary, a perfect moment to reflect on what we have learned and ask the question posed above.

Graham Ward Managing Director LEAD International

Today's learning programmes are developed in a significantly different technological, political and financial context than those developed in the early 1990s. And although the delivery pathways available today are different, LEAD's signature components of sustainability and leadership education, meaningful networking and learning through action have never been more relevant. EDUCATION Today, learners of all ages are much more in control of their learning processes. They have a variety of formal and informal learning options and feel at the centre of their personalised experience. "Push" education/training programmes, which bring people together for an extended period outside of their work contexts and teach a standard curriculum, are less and less sought after as educational

As a result of the opportunities presented by new technologies, the financial implications of face-to-face delivery and the willingness of time-poor learners to embrace a more "blended" learning process, LEAD is in the process of taking the majority of its education offerings into the virtual space. NETWORKING Networking is an essential component of any leadership programme and the face-to-face element of learning should be largely devoted to a relationship-building goal. Peer-learning opportunities, using techniques such as Open Space Technology, allow the community to learn more about who knows/does what, and offer a marketplace of ideas and a co-creation space that set the foundation for future collaborations. This kind of gathering is quicker and less expensive to organise than traditional learning, but takes more process design and facilitation skills to make sure that the event structure does not overwhelm the goals of networking and group development.

The main feedback from LEAD Fellows is that the relationship-building aspect of our programme is one of the most valuable parts of the LEAD experience.

Graham Ward is the Managing Director of LEAD International. Graham is using his 20+ years of business management experience to drive forward LEAD's new on-line learning platform and business model. Prior to joining LEAD, Graham was Operations Director of a management

LEARNING THROUGH ACTION It is a fundamental belief of LEAD that learning must be centred on, and result in action. All LEAD Fellows undertake a learning action project as part of their programme and these elements are often taken forward beyond the completion of the formal course. LEAD Fellow Leonardo Martins Dias, supported by LEAD Brazil, and a number of other LEAD Fellows, has proposed a training programme in Rio's favelas to develop a new generation of community leaders committed to the principles of sustainability. The programme will empower local people by equipping them with vital business and project management skills, giving them the experience to work with investors to cocreate and implement projects that meet the needs of the community. We are hoping that a pilot of this programme will be launched at Rio+20. If people change, the world changes and, for the next 20 years, LEAD will continue to inspire the next generation of changemakers for sustainability through this powerful combination of education, networking and action.

systems certifier and spent over a decade as a global business manager in one of the world's largest environmental consultancies. Originally qualifying professionally as a civil engineer, Graham has a Ph.D. in the design of foundations for offshore platforms. Established by the Rockefeller Foundation in 1992, LEAD is the world's largest international non-profit organisation focused on leadership and sustainable development. LEAD identifies and recruits outstanding leaders from government, business, NGOs and academia and equips them with the skills to make decisions for change. There are currently more than 2,400 LEAD Fellows working to address sustainability challenges at local, regional and global levels. www.lead.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

Towards an integrated model of leadership for corporate responsibility and sustainable development The literature on corporate responsibility (CR) increasingly recognises the importance of leadership in support of organisational change. This is particularly the case when CR provides the basis for the business contribution to sustainable development, which is understood to involve organisational and social innovation leading to change. The connection between CR and sustainable development sets out to explore the character of leadership needed to affect change that is co-created by individuals, teams, businesses, organisations, and the networks within and between organisations, commercial or otherwise.

Dr. Alessia D'Amato Fellow, Department of Management London School of Economics and Political Science

Sustainable development is not simply about change, but it is about change that demonstrates integration of economic, social and environmental goals, draws on economic, social and environmental information and leads to coherent choices. This involves a mix of technological, organisational, institutional and managerial innovation. From the vantage point of the company, the CR practices that contribute to sustainable development involve managers in formulating and enacting new ways of working with others to bring about these innovations. These CR practices not only constitute leadership practices for CR, but they also represent a form of management innovation. From a fashion perspective, the advancement of ideas, such as the triple bottom line or Cradle to CradleÂ¨ or The Natural Step, has the effect of offering fashionable

new ideas that provide a way of thinking for managers who see the need for change around the environmental dimensions of CR. While leaders are recognised for their role in reforming, redesigning and restructuring their organisations for sustainable development, the leadership role to integrate sustainability is still unfamiliar territory, supporting the need for further investigation. Indeed, this echoes the much earlier call for more research and better understanding of the processes by which firms integrate environmental issues into their thinking and practice. Typically, investigations into what is required of leaders for sustainable development focus on the traits and skills of leaders. Leadership styles and how they can either compliment or weaken CR efforts have also been considered (e.g. stakeholder-, performance- or motivationdriven), and the transformational leadership style of CEOs increased the likelihood of companies to engage in strategic CR. Leaders that take into account social and environmental impacts must be able to span boundaries, listen to diverse constituencies, have the courage to make tough decisions, deal with complexity and see the firm in a larger context. Sustainability challenges some deeply held beliefs and traditional processes and behaviors found in organisations and these go beyond the role/function of competencies, which by definition are the underlying

characteristics of an individual that are causally related to the performance. An alternative way of framing leadership and leadership development is by examining the practices that constitute leadership, or the observable shared behaviours that shape and ultimately define the leadership culture. Recent empirical research on organisational leadership for CR has resulted in a holistic model of leadership practices that enact sustainable development. By isolating effective leadership practices, it is then possible to identify contributing competencies and skills. The leadership practices: creating vision, crafting strategy and developing policies for CR and strategy implementation were found to be independent of the cultural context across the companies in the study. This corroborates the ideas of systemic thinking and strong vision. The practices of engaging across boundaries are consistent with cross-cultural understanding, embracing diversity, and stakeholder engagement. This connects with enlightened self-interest as the concern to satisfy stakeholders beyond shareholders. Since leadership for sustainable development develops through interdependencies and interrelationships with others, it is vital to develop appropriate coordinating mechanisms across a multitude of actors or stakeholders. Sustainable development is successfully addressed through good communication and stakeholder relationshipbuilding within a supportive enterprise culture.

Leadership practices that contribute to deep change towards sustainability: 1. Developing vision, strategy and policies. 2. Operationalising corporate responsibility. 3. Top management support. 4. Engaging across boundaries (stakeholder engagement). 5. Empowerment and development. 6. Communication for corporate responsibility. 7. Performance development and accountability. 8. Ethical actions.

Source: D'Amato, A., Eckert, R., Van Velsor, E., Quinn, L. and Ireland, J.J.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

A leadership framework based on direction-alignmentcommitment (DAC) allows specific behaviours and practices for setting direction, creating alignment, and maintaining commitment. The DAC framework emphasises that leadership is about the establishment of shared direction, so that each member knows the aims and goals of the collective, and also knows that the other members know those aims and goals; alignment is the coordination of knowledge and work in the collective; commitment is the willingness of members to expend effort toward the needs of the collective over and above the effort needed to meet their individual needs. Leadership is viewed as emergent through interaction: people, who share work, have (or quickly develop) beliefs about how to produce DAC. These leadership beliefs lead to well-accepted practices for reproducing DAC. The prevalent beliefs in an organisation determine which leadership practices are adequate to produce DAC for specific outcomes Ð in the case of the research that was sustainable development or corporate responsibility.

across cultures, industry sectors and national setting. While the call for sustainable development is global, the response to that call is necessarily local and tailored to local conditions and circumstances.

The model provides a basis to develop a practice of leadership development and education. By extension, it is possible that others involved in leadership development and education might use the model as a point of comparison to their existing practice or as the basis for developing a more advanced practice. A note of warning is that the task of developing CR and sustainable development is complicated by differences

LSE ESTATES DIVISION THE PLAZA CAFE‹ GREEN ROOF In 2011 students and staff at the LSE were invited to apply for an up to GBP 12,000 grant from the Sustainable Projects Fund (SPF). This fund is dedicated to supporting LSE staff and students to develop projects that enhance sustainability within the campus and beyond. It is administered by the Sustainable Futures Group. The inititive places emphasis on carbon management, biodiversity, waste reduction, sustainable agriculture, sustainable water use, social improvement, education and awareness and sustainable development. The first successful SPF project on LSE campus was The Plaza Caf Green Roof, through the successful application from Olivier Scialom, Sidharth Gopalan and Stanislav Bic, all postgraduate Management students. Green roofs enhance the biodiversity, value of urban areas by supporting species to thrive in cities Ð including the LSE campus. Such roofs can reduce flooding by improving drainage and reduce the urban heat island effect. They contribute to the LSE's Environmental Policy and form an integral part of Mayor's Climate Change Adaptation Strategy and the London Biodiversity Action Plan.

Dr. Alessia D'Amato is a Fellow in the Employment Relations and

Please note that this article is based on the conceptual paper: Alessia

Organisational Behaviour Group, Department of Management at the

D'Amato and Nigel Roome (2009), "Toward an integrated model of

London School of Economics and Political Science. Her research

leadership for corporate responsibility and sustainable development:

interests focus on innovation, leadership development and organisational

a process model of corporate responsibility beyond management

development among others. Alessia is a member of a number of

innovation", Corporate Governance, Vol. 9 Iss: 4 pp. 421 - 434.

international academic and professional associations; she has published in academic journals and in book series. Before joining LSE, she was a Research Fellow at Kingston Business School, Kingston University, where she worked on the Knowledge-Intensive Firms in the U.K. and Ireland study, funded by the Economic and Social Research Council (ESRC). She earned a Ph.D. in Industrial and Organisational Psychology from the University of Bologna, Italy; a Bachelor's degree in Organisational Psychology from the University of Padova, Italy and a Master's as well as a Bachelor's degree from the University of Essex, U.K. The London School of Economics and Political Science (LSE) is one of the foremost social science universities in the world. Its research and teaching span the full breadth of the social sciences, from economics, politics and law to sociology, anthropology, accounting and finance. Founded in 1895 by Beatrice and Sidney Webb, the School has an outstanding reputation for academic excellence. LSE has 16 Nobel Prize laureates. Set up to improve society and to "understand the causes of things", LSE has always put engagement with the wider world at the heart of its mission. From its location in the heart of London, the School links communities across the world, from formal academic partnerships to advisory work with governments and international organisations.

www.lse.ac.uk

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

Responsible leadership and "shared value" Ð The new Russian experience

Yury E. Blagov Director PwC Center for Corporate Social Responsibility Graduate School of Management, St. Petersburg University

The development of CSR in Russian business is generally in line with the global trend of matching the long-term interests of both society and business into the "shared value". Nevertheless, even for the national CSR champions, the very idea of sustainability still looks self-contradictory, as it is interpreted by the business community mainly through unconvincing instrumental arguments. Our nationwide research project, carried out in 2008, demonstrates that an overwhelming majority of these companies (83%) view CSR as a means to achieve long-term competitive advantages. At the same time, about 76% of them feel that social investments by business just substitute governmental social expenditures and do not serve as any strategic goals. It is responsible leadership that can be a right way to overcome such a contradiction through raising awareness for CSR related strategies and actions. This kind of leadership that is demonstrated at the Board/CEO level can create and make workable company values, penetrate through the whole managerial structure and develop a truly ethical corporate culture. Furthermore, it can lead to more developed and effective types of corporate

social performance through the sequential implementation of corporate philanthropic programmes, integration of CSR principles into the main business processes, and even CSR-based innovations which directly express the very sense of "shared value"1. Currently, a considerable number of Russian companies can be named that have already demonstrated remarkable practices of responsible leadership: Novard, Sakhalin Energy, Severstal, Sistema, Transaero, Uralsib and others. Novard's showcase looks particularly significant due to the clear logic of responsible leadership development. Starting in 1989 as a students' entrepreneurial activity, Novard has now grown into a large Russian diversified holding active in several sectors: construction, industry and retail. Since the very beginning, this company tried to be guided by ethical norms of famous businessmen and philanthropists from Russia's pre-Soviet past. In spite of the perennial absence of a formal code of conduct, the relationships in the company have always been built upon confidence and mutual respect. However, in 2006 the Novard leaders

"The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and economic progress." (The Big Idea, Creating Shared Value, Prof. Michael E. Porter and Mark R. Kramer, Harvard Business Review, January-February 2011, page 66 Ð http://hbr.org/2011/01/the-big-idea-creating-shared-value.)

understood that the company's future success strongly depends on their ability to specify and clearly articulate the values which could connect the past with the future.

oriented corporate culture that supports the "shared value" creation in every particular national environment as well as in the global arena.

Yury E. Blagov is a Professor and the Director of the PwC Center for Corporate Social Responsibility at St. Petersburg University Graduate School of Management. He has also had visiting positions at the University of California, Berkeley, the St. Mary's College of California

Following bottom-up brainstorming sessions, Novard introduced a set of values which includes constant development and perfection, reliability, team work, the revival of traditional Russian values, and leadership. Moreover, the group's mission and strategy were reinvented in a more holistic way and social credos based on these values were created for all companies of the group, with a purpose of setting the example for responsible stakeholder management in the particular industries. As a result, not only did corporate philanthropy get an additional input, but all the main business processes went through the transformation and brand-new innovative projects started. Among them, the concept of MinipolisÂ¨ as an urban area equipped with comfortable houses and welldeveloped social infrastructure, providing opportunities for spiritual and physical development of its residents. This concept connects an old Russian ideal of communality with progressive town planning and architectural/artistic approaches. MinipolisÂ¨ as a product has been introduced to the market at the end of 2010 and has already turned into the flagship of Novard's new "shared value" approach.

and Aalto University, Finland. Yury participated in many national and international teaching and consulting projects in the field of CSR, including projects with JSC Severstal, EADS and IBM. He is the Editor-inChief of Vestnik of St. Petersburg University, Management Series, and a member of the editorial boards of the Russian Management Journal and

Corporate Governance: The International Journal of Business in Society. The PwC Center for Corporate Social Responsibility at St. Petersburg University Graduate School of Management was created in 2008 and has already earned the leading position in Russian academia with its research, teaching and knowledge sharing activities. The Center's goal is to educate and enhance the national managerial elite, rendering them strongly committed to the idea of implementing the principles of social responsibility and sustainable development. During 2008-2011, the Center conducted nationwide research projects in social investments in Russia, investments in people, and corporate philanthropy in cooperation with the Russian Managers Association and the Russian Donors Forum. Being internationally oriented, the Center participates in different projects with ABIS - The Academy of Business in Society, the European Business Ethics Network and the Caux Round Table. In 2011, the Center joined the GOLDEN for Sustainability international research centers network.

It is worth concluding that responsible leadership is going to be an important way of creating a unique sustainability-

www.gsom.spbu.ru/en/research/csr

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

EDUCATION & RESEARCH

Responsible competitiveness The business case for sustainable leadership Corporate leaders often try to cope with new societal demands by integrating them into well-established business operations. The easiest way is to initiate a project in an area that is perceived as "good" by the public and to make use of project management know-how: businesses make donations to civil society and environmental organisations, sponsor projects in developing countries, build solar power units, spend money on counselling for employees, etc. All projects are commonly perceived as "good" and, thus, are easy to communicate to the general public. However, they are not necessarily in the focus of the companies' activities and are often the first to be cancelled in times of economic crisis. Leaders who understand social responsibility as returning a share of a company's profit to society also have to accept questions about the origins of that profit.

Dr. AndrÂ&#x17D; Martinuzzi Director Research Institute for Managing Sustainability (RIMAS) at the Vienna University of Economics and Business

While some leaders try to "do good", others try to "avoid doing bad" by implementing management systems. As a next step after implementing quality management systems (e.g. by adhering to ISO 9001 procedures), they apply environmental management systems (for example, by following the ISO 14001 standard). The recently developed ISO 26000 guidelines can be perceived as a third step in this sequence, although the focus shifted from management systems standards to guidance standards. The business case of this approach follows from improved company's image, increased brand value and safeguarded licence to operate. On the other hand, management systems are

often seen as annoying obligations, the resulting stimulus for innovation is rather low, while checklists and standards are often difficult to communicate to customers. A more advanced approach is needed. Strategic sustainable leadership is based on innovation and strategic management and takes societal and environmental concerns into account in all four central business decisions: what, where, how and for whom the company is producing. "Rethink your business" is the motto. This holistic penetration enables new business models and leads the company's innovation capacity to the very target of social problems and their solutions. It helps to achieve a generic firm strategy as well as new products and markets based on social and economic inclusion. Yet, the high potential impact of strategic decisions is also the biggest constraint: the successful history of a company, existing structures and processes, and narrow patterns of thought form the most important barriers for innovation. Therefore, dynamic aspects have to be taken into account. Transformational sustainable leadership links responsible competitiveness with organisational learning and change. This approach develops the capabilities of an individual company and allows the parallel transformation of an organisation, its stakeholders and the whole society. Transformational sustainable leadership can be derived based on four theories: the stakeholder theory emphasises

Four approaches of responsible competitiveness

– easy to start and to communicate – no big organisational changes required

– credibility gap – no real change

Quality-oriented sustainable leadership (using management system to avoid doing bad) – systematic – well-established standards

– difficult to communicate – low stimulus for innovation

Strategic sustainable leadership (rethink your business and create shared value) – strong links to competitiveness and societal trust

– innovation barriers and risks

Transformational sustainable leadership (develop the capabilities for dialogue and flexibility) – basis for sustainable competitive advantage – continuous process

Increasing impact on the company and its competitiveness

Increasing impact on the society and the environment

Source: RIMAS, 2012.

Project-oriented sustainable leadership (do good and talk about it)

– difficult to evaluate

Dr. Andr Martinuzzi is the Director of the Research Institute for Managing Sustainability (RIMAS) and Associate Professor at the Vienna University of Economics and Business. During the last decade, he has co-ordinated projects funded by the EU Framework Programmes as well as tendered research projects at an international, European and national level. He currently works on the impact measurement of CSR (IMPACT project, the European Commission's largest-ever research and knowledge development initiative on CSR), co-ordinates a project on sustainable consumption and growth (RESPONDER project) and prepares an EU project on resource efficiency policies. His main areas of research are corporate sustainability, sustainable development policies, resource efficiency and knowledge brokerage. The Research Institute for Managing Sustainability (RIMAS) at the Vienna University of Economics and Business is an independent university institute specialising in research for sustainable development and corporate sustainability. Since its establishment approximately a decade ago, RIMAS has acquired Europe-wide recognition, having conducted projects for several EU Directorates-General as well as for the EU's Committee of the Regions (CoR), the European Statistical Office (Eurostat), UNDP and a variety of national ministries. During the last decade, a variety of top-level research projects were carried out together with partners from all across Europe in the following research areas: governance for sustainable development, evaluation research,

the interaction of companies with internal and external stakeholders. The concept of "organisational transformation" connects changes within the organisation with the overall changes within the system environment. "Organisational learning" broaches the issues of organisational learning processes and their impact on strategy, structure and culture of a company. And, finally, the concept of "lead user innovation" which stems from innovations theory is

extended to "lead stakeholder innovation". Transformational sustainable leadership does not focus on gaining immediate business advantages but on the fostering of abilities that are the basis of these advantages: the ability of an organisation to develop its capabilities and to continue progress. While leadership in the first two stages just aims at "doing good" or "avoiding bad"; sustainable leadership aims at competitive advantage, organisational learning and change.

CSR, sustainability innovation and sustainable consumption. RIMAS is engaged in research (ranging from large-scale research projects to shortterm studies), consulting (for decision-makers in policy, administration and businesses), processes management (moderation, mediation and stakeholder dialogues) and communication (publications, Internet-based projects and education). www.sustainability.eu

If you think you're too small to have an impact, try going to bed with a mosquito. DAME ANITA RODDICK Businesswoman, human rights activist, environmental campaigner and Founder of The Body Shop (1942 - 2007)

One of the greatest discoveries a man makes, one of his great surprises, is to find he can do what he was afraid he couldn't do. HENRY FORD Industrialist, the Founder of Ford Motor Company and sponsor of the development of the assembly line technique of mass production (1863 - 1947)

We've got a shot at really pulling together to turn upside down the way we approach the challenges we are facing in the world and look at them in a brand new entrepreneurial way. Never has there been a more exciting time for all of us to explore this great next frontier where the boundaries between work and purpose are merging into one, where doing good, really is good for business. SIR RICHARD BRANSON Business magnate, Founder and Chairman of the Virgin Group, adventurer and author of Screw Business as Usual (1950 - )

Innovation distinguishes between a leader and a follower. STEVEN PAUL "STEVE" JOBS Business magnate, designer, inventor, computer engineer, programmer and Co-Founder of Apple Computer, now Apple Inc. (1955 - 2011)

FACTS & FIGURES A blueprint for effective leadership Close the say-do gap: The world wants more than just a story. Leading by example, making the tough decisions and showing grace under pressure are all vital attributes for great leaders.

Listen, analyse and adjust: Having adaptable leadership and communication styles are viewed as critical elements for demonstrating true leadership.

Let them look you in the eyes: Personal presence and involvement in communication are key sources of leadership credibility.

Strong, silent types need not apply: Clear, transparent communication Ă? including admitting mistakes Ă? is imperative to effective leadership.

The way to be seen as trustworthy is to be trustworthy: For companies, trustworthiness trumps even attributes such as quality of management, financial strength and innovation as representing the mark of true leadership.

Traditional is traditional for a reason: Personal presence through speech-making, broadcast media and print media prove more effective in establishing credible leadership than advertising, social media and digital channels.

Don't sugar-coat it: People seek leaders who are willing to be honest about the challenges ahead, rather than holding back to avoid sparking fear.

Source: 2012 Leadership Communication Monitor, Ketchum, March 2012.

Most important attributes for a company to be described as a leader Attributes

Rated among top five most important

Trustworthy

46%

Quality products/services

43%

A good place to work

35%

Customer service

35%

Quality of management

34%

Financial strength

33%

Ethical business practices

33%

Innovative

29%

Respect

28%

Corporate social responsibility

28%

Environmental responsibility

28%

Customer-focused

27%

Commitment to communities

18%

Diversity

15%

Philanthropic/Charitable

10%

Source: 2012 Leadership Communication Monitor, Ketchum, March 2012.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

"For AB Vassilopoulos, 'People' is not simply a word or a conceptual pillar on which we base our policies, organise activities or invest. For us, the term carries the utmost significance: it reflects our creed, vision and goals. It reflects ourselves and our path going forward. Through this term, we come a step closer to all that we believe is necessary for us to do, in order to achieve our goals. We behave and treat our people exactly as we would like our customers and the entire community to view and treat us. With trust and respect. That is our secret Ă? the consequences of which we experience every day and share with all of you. The results of these convictions, which we have turned into a reality, have given AB Vassilopoulos a leading position in matters of Corporate Responsibility."

Together, we aspire to enrich the lives of our customers, associates and communities we serve in a sustainable way. We support, respect and inspire. Together, we deliver the best for life!

The corporate social responsibility leader in the Greek retail market

Kostas Macheras Executive Vice President CEO of Southeastern Europe Delhaize Group

AB Vassilopoulos, from its foundation until today, is one of the country's most widely recognised companies. It is the second-largest retailer and fourth-largest employer in Greece. Thousands of consumers visit its stores each day, entrusting their nutrition to a company which for decades has supplied them with a wide variety of safe products of the highest quality. Since 1992, AB Vassilopoulos has been a member of Delhaize Group, whose vision and values the company embraces as its own. AB has become established in the minds of consumers not only as one of the largest companies in Greece, but also as one characterised by strong social convictions and actions. This is why today AB Vassilopoulos is a leader in issues of Corporate Responsibility, with positions, policies and actions recognised not only by official bodies but, more importantly, by all its stakeholders (employees, associates, suppliers, media, etc.). The company's carefully elaborated strategy is defined by three basic pillars: Products - People - Planet. For each of these, clear policies have been formed and corresponding activities developed. In particular, for each of these pillars, the company commits itself to the following:

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

In regards to "PRODUCTS", AB Vassilopoulos commits to supplying its customers with healthy food, as the most basic factor in leading a high-quality life. It also commits to upholding a high quality in the whole range of its products and its supply chain, with proper information to the consuming public and strict rules of food safety. In regards to "PEOPLE", the company provides programmes and activities for its employees geared towards developing their skills and talents. At the same time, it places special emphasis on the local communities in which it is active, undertaking initiatives which aim at covering basic needs. And finally, in regards to the "PLANET", it is committed to protecting the environment through initiatives such as Recycling, Energy Conservation Systems, Centralised Systems of Product Distribution and other specific activities (reforestation, cleaning beaches, etc.), which aim at minimising the environmental impact of the company's activities. In order to fulfill all these commitments, AB relies on its people, who, regardless of their rank or position within the company, adopt and implement these policies, shape them and act as their guardians.

AB Vassilopoulos today employs more than 10,500 associates who are the company's most basic and important asset. For this reason, AB depends on them for its success, for the

implementation of its future plans and for achieving the goals they have set together. By focusing on strengthening its people-centred philosophy, the company has found the road to constant development and improvement. The company's efforts to cultivate and promote human skills, with emphasis on the unique capabilities of each and every associate in order to allow their talents and abilities to develop to their fullest extent, created conditions which have allowed AB to progress and to become an organisation with a real social conscience. Its employees are exposed to methods, programmes and techniques which help them become more socially sensitive and aware. This contributes to the formation of social convictions, which comprise a unique tool of distinction, elevates the company's social work and provides it with qualities of leadership. Some examples of this double dedication consist of activities which the company has implemented with passion and success. The most recent of these is a program of volunteerism organised by AB and put into effect by its associates in order to help local communities and protect the environment. This initiative is the result of AB Vassilopoulos' conviction that companies have the power and responsibility to bring about positive and permanent change Ă? at least in the areas in which they are active. Based on this conviction, and on the occasion of the International Year of Volunteerism, AB organised two volunteer activities in 2011 with the energetic participation of

its associates, in co-operation with the local communities in which it is active and in conjunction with non-governmental organisations. The ultimate goal of these initiatives was to help cover some basic needs and to contribute to social cohesion and solidarity. More specifically, for the first initiative, AB volunteers, by store or by department, could choose between activities concerning "People" or "Environment". Then, for activities involving "People", they proceeded to collect various items (clothes, shoes, toys, books, school supplies and food) and then organised contacts with organisations and institutions where they could donate these goods. Similarly, for initiatives involving the "Environment", volunteers contacted various municipalities seeking permission to clean parks and beaches in areas which they had determined to be most in need of attention. On May 29, 2011, over 120 activities took place all over Greece involving at least 3,000 volunteers! During the second Volunteer initiative, which took place on November 25-26, 2011, customers of AB stores were able to participate as well and could donate food or other essential goods to institutions or NGOs selected by each store. On November 27, 2011, volunteers handed over to the relevant bodies all the goods that had been collected. Over 100 stores participated in this initiative.

www.ab.gr

EUROCHARITY YEARBOOK 2011/12

33 years of Greek green business

Niki Koutsiana Pharmacist President, APIVITA S.A.

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

In 2012, APIVITA marks 33 years of business operations. In the beginning of 1970, we created, together with my husband Nikos, our first natural products in our pharmacy, a black soap with propolis, a shampoo with thyme and a face cream with royal jelly, which were the basis for the birth of APIVITA in 1979. Its name, which sums up the identity and philosophy of the company, comes from the words Apis (bee) και Vita (life), and APIVITA means the life of the bee.

We have already opened a subsidiary company in Spain and one in the U.S.A., a flagship store in Madrid, seven stores in Japan and six in Hong Kong, and are soon preparing our presence in more countries around the world. The company's strategy from now on is focused on the international market, having as a primary goal the opening of new important markets. Our wish is the communication of our brand internationally, not only as a natural cosmetics company, which promotes health, beauty and wellbeing, but also as an ambassador of our country world-wide.

Inspired by the life of the bee, the biodiversity of Greek flora with 5,500 different plant species and also by the philosophy of Hippocrates, the Father of Medicine, APIVITA combines pure bee products, titrated plant extracts deriving mainly from organic cultivations from the rich Greek flora and essential oils to produce natural, clinically proven, effective products. We create natural, effective and holistic products that promote health and beauty for body, spirit and senses to cover the needs of the most demanding and ecologically sensitive consumers.

Moreover, we have established collaborations with selected exclusive luxury hotels and spas around the world Ð such as the Landmark Mandarin Oriental Hotel in Hong Kong and the Six Senses Spa at Porto Elounda De Luxe Resort in Crete, Greece Ð where one can find the innovative APIVITA SPA therapies, which are based on the philosophy of Hippocrates, on essential oils and on the Mediterranean diet, along with our own hotel amenities in the rooms.

Today, we have more than 300 products for the face, body and hair, which can be found in more than 5,000 pharmacies in Greece, and APIVITA holds the first position in terms of market share in the categories of shampoos and second position in the category of face treatment in the Greek pharmacy.

In 2011, we published our first Sustainability Report of APIVITA for the year 2010, according to GRI guidelines, which reflects in every detail the planning and organised activities of the company in the year 2010 towards sustainable development, and the one for the year 2011 is due very soon.

With up to 100% natural composition, our products offer a combination of ingredients, avoiding the use of synthetic ingredients, such as parabens, silicones and propylene glycol. We also care for the environment and use natural, recyclable and biodegradable raw materials, as well as recycled and recyclable packaging. All of our products are produced in certified laboratories with strict clinical controls. At the same time, we use pure, certified organic essential oils, offering products that act beneficially on the body, the spirit and the soul, inspired by the holistic approach of Hippocrates.

In the context of sustainable development and in collaboration with agronomists and local farmers, we created two subsidiaries, APIVITA FARM and APIGAIA. Our aim is the development and exploitation of our own beehives, the research and development of organic herbs plantations in Arcadia, Thessaly, Fthiotida, on Mount Olympus and all around Greece, as well as the support of native plants.

In the international marketplace, APIVITA's passion and vision are embraced in 13 countries around the world: Cyprus, Spain, Belgium, The Netherlands, Luxembourg, Romania, Japan, Hong Kong, Australia, the U.S.A., England, Croatia and Ukraine.

Finally, the creation of the Hippocrates Botanical Garden on the island of Kos includes the planting of 200 from the approximately 250 plants recorded in the bibliography, which Hippocrates used in his medicine, with the co-ordination and care of APIVITA. www.apivita.com

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Citi celebrates 200 years of sustainability in banking services A MILESTONE YEAR FOR CITI, 2012 MARKS THE BANK'S 200TH ANNIVERSARY In June 1812, the First National City Bank of New York was opened for business to serve a group of New York merchants. Since 1812, Citi's mission has been to support economic progress and help customers advance from ambition to achievement by applying its passion for innovation. Citi is here today thanks to its sustainable leadership and ability to adapt to an ever-changing environment. Citi recently redefined its Mission Statement and Principles, which will set the organisation's course for the coming 200 years.

Grant Carson Citi Country Officer, Greece

Having started as a trade finance bank, Citi has since contributed substantially in financing development and innovation and helped to connect the world. Over the decades, we have financed some of the world's most transformative projects, such as the Panama Canal (1904), Onassis' first super-tanker (1948) and, recently, Google Wallet (2011). We were the first major American bank to open branches abroad, and today we maintain a presence in more than 100 countries and jurisdictions and conduct business in some 60 more. Our Greek franchise is one of the oldest; it dates back to 1964. Citi Greece is the largest and oldest greenfield foreign bank in the country where we operate a full service franchise.

The Institutional Clients Group, consisting of Corporate Banking, Markets & Securities and Shipping as well as Global Transaction Services and Private Banking, is a leader in the market. We are an active partner to the Greek State, local Financial Institutions and Corporate names through our Advisory and Debt & Equity Capital Markets offerings. We are an active solicitor of foreign investment for Greece and the largest recipient of institutional investor flows for trades on the Athens Exchange. Our GTS business is the single largest custodian in the Greek market and our Shipping franchise banks the most reputable and established names in the industry. Citi Greece has also an established and highly regarded retail franchise, which is among the largest card issuers and acquirers, the largest co-brand and private label partner products and is a pioneer in investment products. In our long Greek history are a number ofÂ noteworthy innovations which include introducing the ATM to the market (1985), offering 24/7 telephone banking services (1990), the first co-branded credit card in Greece (1997), developing an Open Architecture platform for investments (2001) and providing SMS and E-mail transaction notifications (2008). Equally committed to giving back to the community, Citi Greece through the Citi Foundation invests in Financial Education programmes for the youth that seek to guide young people to productive livelihoods. In conjunction with the Hellenic Children Museum, the specially designed educational programme for

Volunteerism at Citi Global Community Day.

elementary schools, "Economy: Knowledge with Value", has facilitated the participation of 50,000 children over its eight years of operation. Additionally, our active partnership with Junior Achievement supports the offering of entrepreneurial and career orientation programmes to high-school students. Volunteerism is another core pillar of our culture of corporate social responsibility. Citi Greece actively participates in Citi's Global Community Day Ð a long tradition for Citi Ð with at least 200 volunteers and six or more initiatives each year. Citi Greece's Philanthropy work focuses on children in need and we seek to provide our customers with an easy mechanism to contribute to charitable causes through our products. Through two main programmes, namely our Diners Club UNICEFSymvallo (Contribute) and our Citi cards-Niazomai (Care), we have so far enabled the vaccination of over 11 million children; 250 children have benefited from the ELEPAP therapeutic rehabilitation swimming programme and we have contributed to building the first oncology hospital for children in Athens, under the auspices of "ELPIDA", the Association of Friends of Children with Cancer. With regards to Environmental Sustainability, Citi Greece adheres to the global strategy of Citi: – managing the environmental footprint of our global operations, – managing the environmental and social risk associated with

projects we finance, and – developing business opportunities with partners to address critical environmental issues. In 2011, Citi advised on and financed nearly 14,000 MW of wind and solar power projects world-wide, pioneered transactions in energy efficiency finance and, as Chair of the Equator Principles Association, led the industry in updating standards for environmental and social risk management practices. However, sustainability in leadership would not be possible without our staff and our people strategy. Focusing on a diverse and skilled global workforce, we believe that people are at the heart of what makes a great organisation. Citi ensures that its staff are supported and developed so that they may realise their professional and personal growth objectives and develop pride in their work and our organisation. The distinct perspectives of Citibankers bring added value to our clients and customers. 2012 is a year focused on Leadership. Drawing inspiration from our past, we believe that today, it is even more important that we demonstrate leadership not just for our people, but also for our clients, to become their trusted advisors and to help them navigate through these challenging times. CITI MISSION STATEMENT AND KEY PRINCIPLES Citi works tirelessly to serve individuals, communities,

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

institutions and nations. With 200 years of experience meeting the world's toughest challenges and seizing its greatest opportunities, we strive to create the best outcomes for our clients and customers with financial solutions that are simple, creative and responsible. An institution connecting over 1,000 cities, 160 countries and millions of people, we are your global bank; we are Citi.

passion to make things better. That was the character of the dozen people who came together at a small building at 52 Wall Street in the summer of 1812 to found the bank that would become Citi. They pooled their resources to fund each other's ambitions in New York City and beyond.

engineering feats in human history: the Panama Canal. In 1904, 30 million cubic metres of earth were removed to connect the Atlantic and Pacific oceans, saving 15,000 ships a year from having to round the tip of South America. Thanks to the world's biggest shortcut, trade flourished, economies expanded, and new markets and jobs emerged. At the request of U.S. President Theodore Roosevelt, Citi played a central part in financing the construction of the canal.

The four key principles Ð the values that guide us as we perform our mission Ð are: – Common Purpose Ð One team, with one goal: serving our clients and stakeholders. – Responsible Finance Ð Conduct that is transparent, prudent and dependable. – Ingenuity Ð Enhancing our clients' lives through innovation that harnesses the breadth and depth of our information, global network, and world-class products. – Leadership Ð Talented people with the best training who thrive in a diverse meritocracy that demands excellence, initiative and courage.

1866 Ð TRANS-ATLANTIC CABLE Ð CHARTING THE PATH TO INSTANT COMMUNICATION It takes milliseconds for a businessman in London to call his family members in New York to let them know that he has arrived safely. In 1865, it would have taken a ship nearly three weeks to deliver the message. All that changed a year later, with the laying of the trans-Atlantic cable. For USD 10 a word, messages could be transmitted between continents within minutes. What once required an ocean crossing now took a few keystrokes. The cable was the brainchild of Frederick Gisborne and Cyrus Field, who founded the New York, Newfoundland and London Electric Telegraph Company. Citi played a role in its financing, with Citi's president serving as treasurer and director of the company.

FOUNDING STORY Ð ESTABLISHING AN INSTITUTION DEDICATED TO PROGRESS Every day, Citibankers work alongside tens of millions of clients to achieve progress for individuals, families and communities, businesses, institutions and nations. It is the shared purpose of the Citi community that spans over 100 countries: people laying plans, making decisions and taking action with an abiding

200 YEARS CITI: THE LEADERSHIP STORIES

1904 Ð PANAMA CANAL Ð BRINGING THE ATLANTIC AND THE PACIFIC 13,000 KILOMETRES CLOSER Taxi drivers in Shanghai prefer German Volkswagens, teenagers in London love phones made in Taiwan and Parisian restaurateurs like to serve Ecuadorian shrimp. We owe the routine nature of these choices to one of the greatest

1948 Ð ONASSIS' SUPERTANKER Ð MAKING A SCARCE RESOURCE AVAILABLE WORLD-WIDE We depend on oil to heat our homes in winter, power our cars on the way to work and lift passenger jets to destinations everywhere. Nearly half of the oil supply is produced in just five countries, but it's used in every corner of the world. Much of it is transported in supertankers, championed by Aristotle Onassis. These ships created unprecedented links between oil suppliers and purchasers, bringing comfort and simplicity to everyday lives, while changing industries and making new markets. Citi financed the construction of Onassis' first supertanker in 1948. 1956 Ð CARGO CONTAINER Ð CONQUERING DISTANCE AND THE SEASONS Generations forget that fruits and vegetables have natural growing seasons. In the Northern Hemisphere, people give Valentine's Day roses in February without a thought. This was not true, though, before it became possible to efficiently transport large amounts of cargo across land and sea. Malcom McLean,

(left page) Financial Education Programmes.

a trucking entrepreneur, saw a ship as just another piece of highway for transporting goods and envisioned installing racks to anchor truck trailers on cargo ships. Citi teamed up with him to finance the project, which ultimately led to the invention of the cargo container and thus inter-modal transportation. 1977 Ð ATM Ð CREATING ACCESS AT ALL HOURS OF THE DAY Ninety percent of the world's population lives within a 15-minute walk from an ATM, making our 24-hour-a-day lives possible. We can go almost anywhere in the world, at any time of the day or night and get instant access to cash to make a purchase, pay for a service or cover a bill. In 1977, when Citi introduced its first ATM in New York City, there were a miniscule number of such machines anywhere in the world. Four years later, the convenience of ATMs doubled Citi's share of deposits in the market. Today, we have 26,000 ATMs world-wide. 2010 Ð CITI SMART BANKING Ð STRIPPING BARRIERS OUT OF THE BANKING EXPERIENCE At a Citi Smart Banking Branch, a person is greeted by a concierge, accesses full online banking features at a workstation, views instantly updated market information on a wall display and receives customer service through a live video chat. It is a seamless experience and a dramatic departure from traditional branches, which some people equate with long lines, uneven service and excessive paperwork. The design comes from the insight that the most successful bank of the future

will be the one that delivers the greatest customised value to clients in the simplest way. The first Citi Smart Banking branch, built in Tokyo, was heralded as the top retail bank in Japan just one year after opening. 2011 Ð DIGITAL WALLET Ð MAKING THE WALLET CARRY ITS OWN WEIGHT A person walking down the street can use a mobile phone to search for a restaurant and can use a digital wallet on the phone to retrieve coupons from establishments within walking distance and pay for a meal - all with a wave of the hand. The digital wallet is a far cry from the purses and wallets that people have carried since the creation of money. Developers recognised the potential of handheld technology to make people's lives simpler and smarter. Citi collaborated with Google, MasterCard, Sprint and First Data to introduce the first widely deployed near-field, communication-connected digital wallet in the U.S. market. INFO Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. www.citigroup.com/citi

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

CARLO PESENTI CEO ITALCEMENTI GROUP "A decade after its first Sustainable Development Report, the Group is ready to celebrate the progress made by its sustainability strategy and looking for the new objectives and targets for the next decade. In the past ten years, we improved our performance and strategic vision, consolidating sustainability at the roots of our business. To confirm its role towards sustainable development, after the adherence to the UN Global Compact, the Group is committed to reflecting the Ten Principles in the areas of human rights, labour, environment and anti-corruption through the implementation of policies, activities and corporate behaviours."

undertaking of green actions, waste management, pollution prevention, health and safety. We should, therefore, recognise our responsibility vis-Ë&#x2020;-vis society and the environment and respect the values and principles characterising modern civilisation; we must contribute and respond to the social challenges and sensitivities of the present and the future. We have developed in the last years a set of policies for sustainable development which have given us the possibility to promote another profile to the local Community and in the Society in general. We can say that, today, the company's social profile has been made quite known; it is not just a Heavy Industry that produces Building Materials. It is an Industry that respects Humans and the Environment, debates with its stakeholders and, in general, offers the best available technologies. This is also demonstrated through several good practices and "success stories", such as our environment-focused investment projects (i.e. new, latest technology filters, raw material storage silos) and many other socially oriented activities.

Building sustainably Italcementi Group focuses on the continuous search for sustainable production processes

Carlo Pesenti CEO Italcementi Group

100

Serge Schmidt Managing Director Halyps Building Materials S.A.

SERGE SCHMIDT MANAGING DIRECTOR HALYPS BUILDING MATERIALS S.A. "Supreme power is necessarily in the hands of one, few or many. When they all channel their efforts towards the common good, the state is well governed but when one, few or many seek only their own interests, we should be anticipating the worst." Ă? Aristotle We, as Italcementi Group members, are taking the impact of our activities on the environment seriously, attaching special emphasis on concepts such as sustainable development, the

Despite the difficult period we are going through today, our aim remains the sustainability and continuous growth of our activities, since we still believe in growth with a human face and we attach great importance to sharing our overall sustainable leadership. Sustainable development is not a buzz word for Halyps. It is an integral part of the way we conduct our business, sharing our overall social responsibilities to the profit of all our stakeholders.

Italcementi Group is the world's fifth-largest cement producer. The Group companies combine the expertise, know-how and cultures of 21 countries on four continents, boasting an industrial network of 55 cement plants, ten grinding centres, eight terminals, 494 concrete batching units and with an overall workforce of about 20,000 people. In 2011, Italcementi Group sales exceeded EUR 4.7 billion. As a member of WBCSD, Italcementi Group has signed the Cement Sustainability Initiative's Agenda for Action, the first formal commitment that binds a number of world cement industry leaders. It also took over the coChairmanship of the Cement Sustainability Initiative for the period 2006-2007. Moreover, Italcementi has been included in The Sustainability Yearbook 2012, the most comprehensive publication on corporate sustainability released annually by SAM, and has adhered to the UN Global Compact, a strategic initiative promoted by the United Nations to align companies operations and plans with universally accepted principles in the areas of human rights, labour, environment and ethics. Through the activities of its Research and Innovation centres in Italy and in France, the most advanced in Europe, the Group intends to anticipate market trends and requirements, giving priority to environmental issues and the optimisation of resources. www.halyps.gr www.italcementigroup.com

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

A leader driven by quality, a healthy work environment and multiple social responsibility activities "The HYGEIA Group is fully aware of the sensitive nature of the field it serves; an area where healthcare is directly associated with the values of respect and compassion towards our fellow human beings. Despite the unprecedented economic recession, we stay true to our mission, keeping our strategy and the high quality of our services unaltered." Areti Souvatzoglou CEO HYGEIA Group

Achieving excellence in the provision of healthcare services is a challenge that the HYGEIA Group has been meeting successfully for over 35 years. Our vision is to create the largest and most comprehensive healthcare services Group. Our commitment towards continuous improvement in all areas has established us as innovators in our field. The past two years have undoubtedly been the toughest ones for the Greek economy in decades. In spite of this, the HYGEIA Group proved resilient and has adjusted to the new conditions and luck had nothing to do with it. The HYGEIA Group has maintained its steady growth in all sectors, thus proving that excellent company leadership and organisation, employee integrity, a sense of responsibility, as well as respect towards society and the environment constitute a solid foundation that maintains our leading position in the field of healthcare services. In our corporate culture, there is a deeply-rooted sense of social contribution and responsibility towards our Workplace, Society and the Environment in which we operate. The administrative and general staff of the HYGEIA Group perform our duties in line with the three-fold principle of Innovation, Development and Extroversion.

102

A SENSE OF RESPONSIBILITY TOWARDS OUR PEOPLE Through a series of actions, we, the HYGEIA Group's employees, apart from our utter professionalism in the

workplace, strive to be compassionate and supportive towards people in need. We really mean it when we say that our human resources constitute the largest and most valuable asset of the Group. Our operational model follows a distinct meritocratic process with a human-centred approach. This model is particularly supportive of the staff in performing their duties, while providing them with a safe work environment and many benefits, as well as continuous training and personal development.

SENSE OF RESPONSIBILITY TOWARDS SOCIETY Being fully aware of our increased social responsibility in these difficult times, the HYGEIA Group continued to make a contribution to society through a series of interventions and free or discounted healthcare services on the occasion of numerous International Disease Days, aiming at prevention and early diagnosis.

associations, the HYGEIA Group offers daily, complimentary healthcare services to organisations and individuals of limited financial resources. A few examples of free services include: – Continued child support and assistance to "Floga", a Parents' Association of Children with Cancer, with free X-rays, surgical procedures, G-knife treatments and high accuracy diagnostic tests, – A large-scale vaccination programme for all children visiting the Greek branch of "M decins du Monde", in Perama, – Medical consultations and examinations offered to the women and children in the Greek National Centre for Social Solidarity (EKKA), – Pediatric medical examinations offered to the 32 children attending the "Child's Friends" Daycare Centre, and – An extensive aid project for the City of Athens homeless people with the aim of fulfilling their basic needs. This project is still strong to this very day, thanks to the immediate and wholehearted support of other companies within the Marfin Investment Group (MIG), which owns the HYGEIA Group, and the voluntary participation of many of the Group's employees.

At the same time, it maintained the high quality of its healthcare services and the excellence in the provision of these services, while continuing its comprehensive environmental management practices, ultimately safeguarding public health. For this reason, in collaboration with various institutions and

SENSE OF RESPONSIBILITY TOWARDS THE ENVIRONMENT The HYGEIA Group is committed to sustainable development and operates based on environment protection principles and criteria.

As a result of all our HR systems and practices, the HYGEIA Hospital became the first hospital in Greece to be ranked among the top companies in the Best Workplaces 2011 survey (it ranked fourth among companies with over 250 employees).

– A Quality and Safety Management Programme for its patients and staff has been implemented since 2003, on the HYGEIA Hospital premises, – A Medical and Hazardous Waste Management Programme has been implemented on all HYGEIA Group sites, – An ISO 14001 certification (for environmental management) is underway for the HYGEIA Hospital and Y-Logimed, which will result in resource savings and better hospital facilities' management. – An extensive paper recycling project runs in association with the Klimax Plus NGO, and about 85 tonnes of paper were recycled in 2010 and 2011. A European Commission Award was the result of our efforts (see Awards). GLOBAL RECOGNITION The HYGEIA Group is proud of the recognition it receives for its contributions and the awards by various bodies, which have placed it among the leading healthcare groups worldwide. ACCREDITATIONS – The HYGEIA Hospital is the only hospital in Greece and among one of the approximately 40 hospitals in South-East Europe to have been accredited by the Joint Commission International for Quality and Safety in Healthcare Services, thus further improving its level of infrastructure and organisation. – The HYGEIA and MITERA hospitals are the only hospitals

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

in Greece and among the 20 leading healthcare providers internationally, to have been certified by TEMOS, an organisation that certifies medical tourism services world-wide, for their proven ability to address the needs of foreign patients.

104

AWARDS – HYGEIA S.A.: The Best Corporate Governance Award in Greece by the international magazine World Finance for its corporate governance practices. – HYGEIA S.A.: The True Leaders Award 2010 by the ICAP Group. It is the only hospital among the 51 Greek companies/groups that has won this award Ð out of the 27,000 firms that were evaluated in total. – HYGEIA Group: The Innovation Award for its action "Environmental Awareness Against Poverty", in the framework of the European Year of Volunteerism in 2011. The award was given to us because we combined paper recycling and the creation of a job in paper recycling for one protected member of the Klimaka NGO Greece. This organisation supports the homeless, the unemployed, people with disabilities and humans facing social exclusion in general. – HYGEIA S.A.: Country Representative Award in the European Business Awards 2011 competition. Once again, the only hospital among the 10 leading Greek companies that represented the country in this renowned and prestigious event.

Mrs. Areti Souvatzoglou was appointed CEO of the HYGEIA Group in November 2009. Under her leadership and support, various major achievements have been accomplished in those two and a half years: – HYGEIA became the only hospital to have ever received the Best Workplaces 2011 award for its work environment. – A meritocracy and personnel complaints committee was formed following her initiative, with the aim of safeguarding the principle of justice in employment matters and ensuring meritocracy in career advancement opportunities, promotions and rewards. – The Best Employee or Best Department of the Month award was established in 2010, providing an incentive to the employees to excel in their duties. – Her vision for offering high quality healthcare services inspired all the HYGEIA employees, improving the patient satisfaction index by 30% from 2009 to date. Areti Souvatzoglou CEO HYGEIA Group

– Under her guidance, the HYGEIA Group started investing in Medical Tourism, gradually becoming a key player in an extensive network of international partners in this sector. – A working group for Corporate Social Responsibility of the HYGEIA Group was formed after her initiative. – The Group's first Corporate Social Responsibility report, the only such report for a Greek hospital, was published in accordance with GRI guidelines. – Despite the adverse economic conditions, her efforts have led to: - safeguarding all of the Group's employee benefits, while protecting their salaries, - increasing the Group's staff by 14.2%, during 2009-2011, - increasing the revenues of the parent company by 14%, its EBITDA by 31.9% and its EBIT by 64.6%, while the private health services sector in Greece experienced a second in a row decline (2010 vs. 2009, -13.5% year-on-year).

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Three CSR axes for the Group Ð People, Environment, Society ICAP Group, a member of the Hellenic Network for Corporate Social Responsibility, strongly believes that it is its duty to offer to its fellow People, to Society and to the Environment. With this objective in mind, it has developed a comprehensive and structured CSR programme with the key message "We care for Society and for our People", based on the following three areas for action: THE GROUP'S PEOPLE – ICAP Group has created the ICAP Blood Bank in order to deal with the needs that come from its personnel, their husbands or wives and their first-degree relatives. – A support programme, called "Investigate Career Abilities & Prospects", is specifically designed for ICAP's employees' children and aims at offering them guidance in their professional lives.

Nikitas Konstantellos CEO ICAP Group

106

THE ENVIRONMENT – ICAP follows the "Acts Green" project, which is developed by a group of volunteers-employees who exchange ideas and plan environmental actions. However, this team's philosophy also governs the Group's overall operation and communication outlook and is expressed in each and every move. It aims at adopting an active environmental behaviour and is based on employee volunteering through working groups that meet on a weekly basis at the company's offices. – ICAP Group has designed an environmental bookmark

which has been handed out to its employees. It gives small pieces of advice that, if applied daily, can help protect the environment. – Last but not least, ICAP employees recycle all paper waste produced as well as batteries used and, in its new headquarters, it has applied special technologies (and has made a quite important investment) for the building to be environment friendly (e.g. special type of glasses). SOCIAL CONTRIBUTION Ð VOLUNTEERING – ICAP organises two environmental outings (one voluntary with family members on a Sunday and one on a working day) to devote attention and care to an environmentally degraded place. – The Group provides free on-line access to its huge database to embassies, universities and journalists. More specifically, every Friday the Group holds the "Students' Day" when university students are welcome to visit ICAP and obtain sectorial and financial surveys. – Within the framework of Professional Guidance offered to society, ICAP hosts dedicated events in collaboration with universities departments and other graduate schools. – As ICAP considers it is its duty to keep the society informed, all of its top managers very often accept invitations to give lectures at universities, schools and CSR organisations on Professional Orientation and Entrepreneurship. – ICAP also supports SOS Children's Villages, "The Smile

of the Child" as well as other charities through certain activities. Examples include the donation of more than EUR 23,000 which was made during the Dun & Bradstreet Worldwide Network Conference and which will meet the needs of building a playground at the SOS Children's Village in Alexandroupolis. – ICAP promotes CSR through the publication of its Leading Employers in Greece Annual Edition, which showcases companies that are socially responsible.

Nikitas Konstantellos holds a B.Sc. in Business Administration from the Athens University of Economics and Business, and an MBA degree in Management and Human Resource Management (HRM) from Loyola University, U.S.A. After working as a Management Trainee at Gould Inc. in the U.S.A. for a year, he started working in Greece in 1984 as a Purchasing Officer of Papastratos, the leading Greek tobacco industry. He then joined the Investment Bank of Greece as a Supervisor in the Human Resources Department. In 1988, he moved to Hay Group Hellas where he worked as Senior Consultant. Nikitas joined KPMG in 1991 as a Manager in order to build up a Human Capital and Executive Search Unit. He managed, within a few years, to turn it into the largest and most successful in the Greek market by offering a wide range of integrated services. In 1995, he was admitted to the company's partnership, while in 1996 he was elected and remained until 2005 Chairman of a KPMG network that consisted of the Heads of Human Capital and Executive Search & Selection (ESS) units from 32 countries in the EMEA Region. Between 2000-2007, he served as the Managing Partner of KPMG's Business Advisory Practice, which consisted of four Partners, five Directors and 100 advisers. This practice was one of the five largest consultancies in Greece offering a wide range of services in the areas of Strategy, Restructuring and Performance Improvement, Finance, Risk Management, Information Technology and Human Capital. As of July 1, 2007, he is the CEO of ICAP Group and, as from March 2012, he also serves as the Chairman of the Association of Chief Executive Officers (ACEO). ICAP Group Ð with 1,400 employees and EUR 63 million in revenue Ð is the largest Business Services Group in Greece, with offices in five cities. In addition, the Group is expanding dynamically in the South-East Europe Region, having already strong subsidiaries in Bulgaria, Romania, Serbia and Cyprus. As of the beginning of 2007, ICAP Group's strong majority shareholder is the South Eastern Europe Fund (SEEF) of

Global Finance, the largest private equity firm in SouthEast Europe, while Coface, one of the world's largest credit insurance companies and business information providers, is its minority shareholder. ICAP Group is rapidly developing into a multidisciplinary service provider and its Vision is to be the most successful Business Services group in South-Eastern Europe and its clients' top choice, providing innovative solutions and diversification in four major Business Service Lines: Credit Risk Services, Marketing Solutions, People Solutions and Management Consulting. ICAP Group has established strategic alliances with top international companies, namely Dun & Bradstreet, Inc. (the world-wide leader in the provision of Credit Risk Services and Business Information), Bain & Company Inc. (a global management consulting firm), Google Inc. (owner of the world's largest search engine), Huthwaite (the world's leading sales performance improvement organisation), Hogan Assessment Systems (an international authority in personality assessment and consulting), cut-e (the world leader in the design and implementation of online tests and questionnaires for use in recruitment, selection and development of people in the business world) and NorthgateArinso (a leading global human resources software and services provider). ICAP Group is the only company in Greece recognised by the Bank of Greece as an External Credit Assessment Institution (ECAI) and by the European Central Bank as a Rating Tool source. In addition, ICAP Group is approved by the Hellenic Capital Market Commission and European Securities and Markets Authority (ESMA, July 2011) as a "Credit Rating Agency" (CRA). www.icap.gr

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

During the extended Greek crisis, with all its consequences on the country's social and economic conditions, INTERAMERICAN is adopting a creative stance, with a series of proposals and initiatives.

COMMITMENTS Specifically, as a member of the United Nations Environment Programme Finance Initiative (UNEP FI), INTERAMERICAN has committed itself to: – designing and promoting innovative insurance products in the Greek insurance market for environmental damage and renewable energy sources; – monitoring the environmental performance that derives from its operation; – undertaking initiatives to care for and restore the environment; – participating in global insurance sector initiatives in order to establish sustainable insurance at every insurance organisation.

The leadership road to sustainability

In this way, the company aims at meeting the interests and modern needs of its stakeholders in order to ensure and enhance its leading, lasting role in the Greek insurance market. Over the past three years, INTERAMERICAN has made a decisive turn from creating "volume" to creating value at every level of its operations and throughout the spectrum of its business activity.

George Kotsalos CEO INTERAMERICAN Group

108

FROM SUSTAINABLE LEADERSHIP TO SUSTAINABLE INSURANCE As an enterprise that plays a decisive part in shaping developments in the insurance market, INTERAMERICAN connects sustainable leadership with a strategic approach and integration of sustainable insurance. More specifically, the company incorporates systematic verification, analysis, management and monitoring of substantial challenges and prospects into its operations, in order to constantly limit its exposure to environmental, social and financial risks related to its insurance activity. The goal of INTERAMERICAN is to enhance its profitability, business performance and value as an insurance organisation in the long term, whilst contributing to environmental, social and economic sustainability. Thus, INTERAMERICAN's leadership is committed to applying the dictates of Sustainable Insurance.

At the same time, as a member of the United Nations Global Compact, the company is committed to applying and promoting the Global Compact's Ten Principles and, specifically, respecting human rights, ensuring optimal working conditions and labour relations, protecting the environment and combating corruption. CHANGE MANAGEMENT At the administrative level, INTERAMERICAN is following effective Corporate Governance principles, applying a regulatory framework and internal control and communication procedures that safeguard transparency, integrity and inclusiveness through the operation of various Committees. The key to sustainability for the company is active change,

so that its future may be shaped by its people, not by the circumstances. This is why there are clear instructions for human resources Ð vision, mission, values Ð that create responsibility requirements for all employees. INTERAMERICAN has been making radical changes from 2005 to date, moving from the model of centralised leadership to participatory administration and administrative working groups, introducing new ideas and shaping new views and attitudes among the administrative staff. EMPHASIS ON INNOVATION & INCREASED RELIABILITY In the marketplace, the INTERAMERICAN's leadership is driving the company towards innovation and pioneering efforts by creating operating systems, insurance programmes and services that are hard to imitate. The driving force of sustainability is the pursuit of business partnerships, through which the company can maximise results or realise what it cannot achieve alone. Focusing on clients and satisfying their needs is the main axis of orientation for INTERAMERICAN. The company is implementing a three-year plan (2010-2012) whose main priorities support company solvency and enhanced reliability in every aspect. The business plan focuses on the implementation of a repeated profitability programme, with proposals that meet the modern insurance needs of society through standardised and simplified programmes and services. The multi-channel distribution policy increases the number of choices offered to consumers, while significant

investments are made in technological infrastructure. MEASURABLE SOCIAL RESPONSIBILITY In general, INTERAMERICAN's sustainable leadership is expressed through tangible social responsibility actions, which also signifies the responsible entrepreneurship that is characteristic of the company. The concept of social responsibility is diffused throughout the workforce of the company by the leadership through a strong corporate culture, which has resulted in "Volunteers for Life", an employee volunteer group making social contributions. "Acts of Life", the company's structured social responsibility plan, includes thematic actions for priorities related to the business activities of INTERAMERICAN Ð health care, combating hazards related to traffic and natural phenomena Ð in order to utilise the company's know-how and infrastructure to the benefit of society. The plan also prioritises support for vulnerable social groups, the development of education and the enhancement of culture. The company pursues synergies with other enterprises, social organisations and NGOs; the dialogue with its stakeholders is facilitated via the annual social report, which is prepared in accordance with the GRI G3 standards and among the top reports in Greece in terms of performance. THE LEADER AS A REFLECTION OF THE COMPANY Mr. George Kotsalos, CEO of the INTERAMERICAN Group and President of the Hellenic Association of Insurance

The Executive Board.

Companies, won the Hellenic Management Association's "Manager of the Year 2011" Award, which was a top distinction for the management value of Mr. Kotsalos, the company and its people. This marks the first time in the ten-year history of the acclaimed association that this award is presented to a leader from the insurance market. He stood out mainly for his exceptional administrative work at INTERAMERICAN during 2011 and exceptional management skills during the last few years that was exemplary for the Greek insurance market.

www.interamerican.gr

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Diverse cultures inspire us, knowledge informs us and integrity guides us "Inspiring individual achievement is leadership towards a sustainable future. Direction is indicated by having a clear goal, living integrity, openness and courage traits, practicing entrepreneurship and building effective collaborations. In JTI, everyone has a role to play in building both our business and our reputation."

George Bletsas CEO JTI Greece, Cyprus, Malta

110

JTI stands for Japan Tobacco International Ă? the first word reflects the company's heritage, the second its business activity, and the third its multinational base and global outreach. JTI is proud of its Japanese heritage, yet the company has also developed its own global culture. Although a young company founded in 1999, JTI has a heritage that can be traced back, through growth and all the way to 1784. Over the past 13 years, the company managed the growth of a broad portfolio of brands, many of which are market leaders, with strong reputation and global recognition. These brands were built by having a clear strategy, appropriate investment and, finally, a workforce that strives for excellence. Today, JTI is active in 120 countries around the world and is managed by an Executive Committee made up of 17 members of more than 12 nationalities, representing all company operations and business functions. Moreover, its 25,000 employees world-wide constitute a mosaic of nationalities from over 100 countries. Multi-cultural diversity has become an important contributor to the company's success. Its positive role is seen in many areas; in decision making, in the fresh perspectives and, ultimately, in better solutions. JTI also gives its employees international assignment opportunities, where they meet other cultures, broaden their knowledge and develop their experience and career.

Our company leadership culture is inspired by the concept of Kaizen, the philosophy of "continuous improvement" that is handed down from our parent company, Japan Tobacco Inc. Kaizen is a workplace practice that revolutionised Japanese manufacturing in the 1950s, and was made famous by Japanese business consultant Masaaki Imai. It is a philosophy that goes beyond simple productivity improvement to address how the workplace can be humanised and experimentation can be encouraged.

Operating an environmentally sound business constitutes another part of our company culture. In this respect, JTI has an extensive reforestation programme aimed at helping tobacco farmers in its supply chain to look after their environment. The programme has been developed in partnership with Washington State University and Total LandCare, a non-profit organisation seeking to improve the livelihoods of smallholder farmers. Steady progress is being made in Malawi and Tanzania where JTI has long-established relationships with

many tobacco growers. By late 2010, JTI had helped around 20,000 households in Malawi and Tanzania plant over eight million trees, while more recently the programme was extended to communities in the Philippines. Regardless of our role or job title, we are guided by our values that apply to all our activities and align us in the pursuit of our goal: to be the most successful and respected tobacco company in the world. www.jti.com

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Looking back at my forty years of successful presence in KPMG, I am sure that sustainability thinking and actions must have been in place even though never expressly known or considered as such! This is because I strongly believe that successful leadership requires a high level of sensitivity to the environment and a heavy dose of common sense, on top of all other qualifications.

will impact each and every business over the next 20 years. These forces do not act alone in predictable ways. They are interconnected. They interact."

Leaders should always expect the unexpected

Although somewhat unrelated, given the financial and related problems of Greece I have often wondered how different the situation would be if the principles of successful leadership were applied in the political arena. I say this, because I firmly believe that political considerations are not or should not be totally different from business considerations. They both have to do with planning for the future, keeping constituents satisfied in a competing world where resources are getting scarce in every respect and always be prepared for the unexpected. Marios T. Kyriacou Senior Partner KPMG in Greece

We need to sit up and take note that corporate sustainability has moved from a peripheral subject to a core strategy issue, and we in KPMG recognise this. So what does it really mean for our business? KPMG's latest report Expect the unexpected: Building business value in a changing world prominently highlights that we do not know the future, "but it is good business sense to be prepared for the possibilities: to expect the unexpected."

112

The report highlights "ten sustainability megaforces that

Of these ten global sustainability megaforces that KPMG believes will impact every business over the next 20 years, climate change is the greatest, and is one that directly impacts all others discussed in the report. The remaining are: Energy & Fuel, Material Resource Scarcity, Water Scarcity, Population Growth, Wealth, Urbanisation, Food Security, Ecosystem Decline and Deforestation. In a services provision firm, the need for corporate sustainability may be hard to identify at first, but the truth is that sustainable business growth in a resource-constrained world, should be on everybody's agenda, regardless of the nature of the company's profile. As a firm that leads by example, this year we were voted Sustainable Firm of the Year at the inaugural industry awards by the International Accounting Bulletin (IAB). In addition to the Firm's 29% reduction in global carbon emissions since 2007, IAB judges recognised us as the only professional services organisation at a global level to participate in the supply chain programme of the CDP. As active corporate citizens for our firm, our clients and our markets, this year we published our International Survey of

Corporate Responsibility Reporting 2011, where we analysed the reports of more than 3,400 companies globally Ă? including the world's 250 largest. Key findings include: â&#x20AC;&#x201C; In the near future, customers and stakeholders will expect all products to be as environmentally friendly and socially responsible as possible, effectively turning green label products into the norm. Eventually, a product's sustainability benefits will become just one of the many characteristics that differentiate a brand (akin to price, quality and effectiveness). â&#x20AC;&#x201C; A large number of companies are now recognising CR as a business imperative, demonstrating that CR reporting provides financial value and drives innovation, and is now an essential requirement for any company hoping to be seen as a responsible corporate citizen. European companies continue to lead the pack, with 71% of companies reporting on CR, with Americas gaining ground with 69%, as is the Middle East and Africa region, where 61% of companies now report on CR initiatives. However, Asia Pacific continues to trail behind as a region, with just less than half of companies (49%) now disclosing CR data to the markets. John Veihmeyer, Chairman of KPMG's Americas Region, however, points that CR has a long way to go, saying that even though more than 95% of the Global 250 companies now report their sustainability efforts to stakeholders, restatements of

corporate responsibility reporting are four times higher compared to financial reporting.

Exact excerpts from KPMG's report, Expect the Unexpected: Building business value in a changing world 1, follow:

This is true as for any new requirement. CR incorporates more than just acting, measuring and reporting. Behind it, lays a change in the process and underlying ways companies do business.

The KPMG report explores issues such as climate change, energy and fuel volatility, water availability and cost and resource availability, as well as population growth spawning new urban centres. The analysis examines how these global forces may impact business and industry, calculates the environmental costs on business, and calls for business and policymakers to work more closely to mitigate future business risk and act on opportunities.

KPMG can help clients better understand the complex and evolving environment so as to optimise their sustainability strategy. Our Climate Change & Sustainability Services (CC&S) practice, offers assurance services on sustainability/ corporate responsibility reports and data, development of procedures and tools for managing and reporting on sustainability issues, development of environmental management systems according to ISO 14001 and EMAS, development of social accountability management systems according to SA8000, development of CO2 emissions management systems, and development of annual corporate sustainability/responsibility reports. I believe that any company that wants to be a player in the future markets must position itself in the leading "sustainable" group! Any investment that currently takes place and any relationships and trust built with sustainable, astute partners will broaden the playing field. I believe that CR should not be discarded as a "fab" or secondary strategic objective; I believe it should be in the forefront of all leaders and an integral part of all strategies.

The report was released on the opening day (February 14, 2012) of KPMG's global "Business Perspective on Sustainable Growth: Preparing for Rio+20" summit in New York City. The event attracted more than 400 top CEOs and senior business leaders along with key policymakers. KPMG International hosted the event in co-operation with UN Global Compact, WBCSD and UNEP.

The full report, Expect the Unexpected: Building business value in a changing world, can be accessed at: www.kpmg.com/Global/en/ IssuesAndInsights/ArticlesPublications/Documents/building-businessvalue.pdf.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

Main points include: – Businesses and policymakers must take joint strategic decisions and act now. – The costs of environmental impacts of business operations are doubling every 14 years 2. – Companies should expect increases in external environmental costs which today are often not shown on financial statements, because the bearers of such costs can be either particular individuals or society at large.

CORPORATE LEADERSHIP

Global sustainability megaforces - Addressing the risks while realising the opportunities

Moreover, two of 11 key industry sectors jumped 50% from USD 566 to USD 846 billion in eight years (2002-2010), averaging a doubling of these costs every 14 years3. In addition, the report calculated that if companies had to pay for the full environmental costs of their production, they would lose USD 0.41 for every USD in earnings on average. By considering the full system of sustainability megaforces, companies are more likely to avoid "quick fixes" that result in unforeseen problems and greater risks in the long term. In particular, the Survey identified ten megaforces that will significantly affect corporate growth globally over the next two decades. These are: – Climate Change: This may be the one global megaforce that directly impacts all others. Predictions of annual output losses from climate change range between 1% per year, if strong and early action is taken, to as much as 5% a year Ð if policymakers fail to act. – Energy and Fuel: Fossil fuel markets are likely to become more volatile and unpredictable because of higher global energy demand. – Material Resource Scarcity: As developing countries industrialise rapidly, global demand for material resources is predicted to increase dramatically. – Water Scarcity: It is predicted that by 2030, the global demand for fresh water will exceed supply by 40% 4. – Population Growth: The world population is expected to grow to 8.4 billion by 2032 in a moderate growth scenario5. This will place intense pressures on ecosystems and the supply of natural resources such as food, water, energy and materials6.

2 Ibid. 3

Trucost, (2012). United Nations Environment Programme, 2011. Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication. 5 United Nations, Department of Economic and Social Affairs, Population Division, (2011). World Population Prospects: The 2010 Revision. 6 Behrens, A. et al., (2007). The material basis of the global economy: World-wide patterns in natural resource extraction and their implications for sustainable resource use policies. Ecological Economics, 64. 4

Source: KPMG Report 2012, "Expect the Unexpected: Building business value in a changing world".

Imperatives for concerted action on sustainability Business and government must work together to design effective policy to support the transition to a green economy

– Wealth: The global middle class Ð defined by the OECD as individuals with disposable income of between USD 10 and USD 100 per capita per day 7 Ð is predicted to grow 172% between 2010 and 2030 8. – Urbanisation: In 2009, for the first time ever, more people lived in cities than in the countryside9. By 2030 all developing regions, including Asia and Africa, are expected to have the majority of their inhabitants living in urban areas10. – Food Security: In the next two decades, the global food production system will come under increasing pressure from megaforces, including Population Growth, Water Scarcity and Deforestation. Global food prices are predicted to rise between 70-90% by 203011. – Ecosystem Decline: Historically, the main business risk of declining biodiversity and ecosystem services has been to corporate reputations. – Deforestation: Forests are big business Ð wood products contributed USD 100 billion per year to the global economy from 2003 to 2007 and the value of non-wood forest products, mostly food, was estimated at about USD 18.5 billion in 200512. The global sustainability megaforces that will reshape the planet in the next 20 years clearly demonstrate that the current resource-intensive structure of the economy is no longer viable. Current production techniques and the ever-growing quantities they demand are pushing many of the planet's resources to the brink. While the transition to a sustainable economy is technically possible, it requires widespread global support from businesses, governments and civil society. This transition requires solutions that address both how and which goods and services are produced (see figure). Clearly both the public and private sectors have a vital role to play and a co-ordinated approach holds the key to success.

www.kpmg.com/gr

Kharas, Homi, (2010). OECD Development Centre Working Paper No. 285: The Emerging Middle Class in Developing Countries. 8 Ibid. 9 UN-HABITAT, (2009). Global Report on Human Settlements 2009: Planning Sustainable Cities. London, U.K. and Sterling, VA, U.S.A.: United Nations Human Settlements Programme (UN-HABITAT). 10 UN-HABITAT, (2010). State of the World's Cities 2010/2011 - Cities for All: Bridging the Urban Divide. 11 Oxfam International. (2011). Growing a Better Future: Food justice in a resource-constrained world. 12 OECD, (2008). OECD Environmental Outlook to 2030. 7

Source: KPMG Report 2012, "Expect the Unexpected: Building business value in a changing world".

FACTS & FIGURES Top-level sustainability competency model

Strategic Goals & Metrics Portfolio Financial Management

Renewable Energy & Green Power

Facility Resource Efficiency

TECHNOLOGY

PROCESSES

NGO/Shareholder Engagement Govermance & Reporting

Supply Chain Management

Compliance & Risk Management

ORGANISATION

Employee Engagement

116

Product Design & Certification

STRATEGY

Information Management

Source: Don Bray, www.altaterra.net/ blogpost/349771/Enterprise-IT-Strategies-and-Solutions-for-Sustainability Sustainability: Turning Philosophy into Competency, February 2012.

Customer Engagement & Marketing

Take Responsibility

Sustainability leadership relational model Expand Conscious Awareness

Look for Holistic Interconnections

SUSTAINABILITY LEADERS...

Experiment, Learn and Adjust

Understand Social Change Dynamics Source: Mary A. Ferdig, Ph.D., Sustainability Leadership Relational Model, Sustainability Leadership Institute, 2009.

Convene Constructive Conversation

Embrace Creative Tension

Facilitate Emerging Outcomes

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

Reality check Ð Take your cue from nature

118

CORPORATE LEADERSHIP

In 1992, during the first Earth Summit in Rio, we Ð The Leaders for Economic Change Ð were roughly six years old. We have since grown up in a world whose stated imperative has been Ð and continues to be Ð "sustainability". The truth, however, is that "sustainability" is not some end state to be achieved. Rather, sustainability is reality. It is the principles of sustainability Ð and thus, reality Ð that should govern not only what we create and how we act, but also how we lead. Our current economic system is a system built on assumptions, models, and half-truths. Capitalism as an economic theory in its current form leads us to believe that we all make rational decisions in our day-to-day life, based on a perfect flow of information, and that our individual and collective goal, at any given moment, is to maximise utility and to grow limitlessly. For those of us who have grown up at a time when "sustainability" has become a household word, we are only all too aware that the current economy's truisms are anything but. Our Earth's resources are finite, yet are rarely valued as such. We know that not all human needs can either be rational or satiated by consumption. We have already experienced booms and busts Ð i.e. man-made and natural cycles Ð in the agriculture, oil, digital and financial industries; while we know that linear processes in nature are hard to come by, we continue to believe blindly in the concept of limitless growth and we continue to tell the story of human development in such terms. Nature provides us with innumerable examples of sustainability: species population cycles, using "waste" to drive growth, diverse communities of mutualistic, symbiotic flora and fauna. Ecological sustainability is the natural system order of life. With the introduction of the modern economy, we now unwittingly accept a superficial layer of rules, norms and convictions for our society that disrupt natural and healthy negative feedback loops that keep

our population in check and in balance with the rest of the natural world. Therefore, what does it mean to lead in a world in which the principles of mutualism, cyclicity and diversity are not distorted by the current doctrines of consumerism and unending growth? How do we lead the transition from one state to the other? Being a true leader begins with personal action: a commitment to act daily on your beliefs and in a manner consistent with the reality that is sustainability. Leadership in sustainability means adopting the principles of sustainability as your own: (1) Mutualism. Competition encourages rivalry and gains at the expense of others and of the environment, while collaboration stimulates communities of inclusion. Facilitating these communities will be the role of the "new" leader. (2) Cyclicity. Leaders must be flexible and adaptive in their thinking and actions. Human development does not have a beginning, a middle, and an end - at least not yet! We cannot afford to think of our resources, companies, or colleagues in this linear way. (3) Diversity. Leaders in sustainability must embrace differences in culture, ideas, language, background, and beliefs of everyone around them. Simultaneously, we must make a conscious effort to include the excluded and take a hint from nature Ð a diverse community is stronger, more adaptive and more resilient to adversity than a homogenous one. As change leaders, our role is not to compete with each other to be "top dog". Leading for a sustainable world means taking our cue from nature. We must collaborate and innovate together and believe wholeheartedly that the principles of sustainability are the key to a truly prosperous and balanced world. On behalf of the Leaders for Economic Change Programme, participant future leaders Shoshannah Bramlett, Theodoros Galanos, Jorim Tielbeek, and Simone Toxopeus

wrote this contribution to the EuroCharity Yearbook. The programme took the thirty participants (students and young professionals) on a journey through economic change and leadership. From the belief that the current economic model cannot withstand the challenges we face today, the question of how to move towards new ideas and practices and create a shift in paradigm was central in the intensive teachings and trainings during the programme. The Leaders for Economic Change Programme was initiated by Elena Lommers on behalf of Amsterdam Bright City and by Marjon van Opijnen and Annelien van Meer, both working at CREM. Amsterdam Bright City is a knowledge centre and meeting point that has extensive experience with initiating, developing and organising innovative, dynamic and exciting events and programmes that aim at bringing together (young) professionals to learn from each other's experiences. CREM offers 20 years of experience in consultancy, research and training in the field of sustainable development on an international, national and local scale. Its key areas of expertise include CSR and chain management, biodiversity and natural resources, local sustainable development and waste management. The Leaders for Economic Change Programme was developed and managed by Damaris Matthijsen (Economy Transformers) and Marjon van Opijnen (CREM B.V.) with great passion. The publication of this article was made possible by ABN AMRO Bank, ING Bank and KPMG. Neither these organisations nor Amsterdam Bright City or CREM can be held liable for the contents of this publication. The entire programme was made possible by the Dutch Ministry of Foreign Affairs, Amsterdam Bright City, CREM B.V. and many others. www.amsterdambrightcity.nl www.crem.nl

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Making responsible steps towards growth IDENTITY MYTILINEOS Group was established in 1990 and evolved from a family metallurgy business, founded in 1908, to one of the leading industrial business groups in South-East Europe and a symbol of healthy and competitive Greek entrepreneurship. With more than 2,500 employees and a turnover that surpassed EUR 1.5 billion for 2011, the Group today is an eminent European business group in the sectors of energy, metallurgy and construction, listed on the Athens Exchange since 1995. Through a series of strategic decisions and dynamic mergers, MYTILINEOS Group is managing a vibrant and flexible portfolio of business activities in these sectors and moves ahead with vision, boldness and strategic planning, both in the local and foreign markets.

120

ACTIVITIES In regards to the construction sector, METKA S.A. is the spearhead of the Group's activity, constituting Greece's top EPC (Engineering - Procurement - Construction) Contractor, undertaking implementation of turnkey projects and, most importantly, a competitive international player in the construction of large-scale energy projects. With an unprecedented penetration in foreign markets that has reached 92% of the Company's project portfolio, METKA has marked, for the past year, record high figures for sales and profitability and a turnover of EUR 1 billion.

In the metallurgy sector, with ALUMINIUM S.A., the Group operates the largest vertically integrated aluminium and alumina production plant in the EU and a pillar of the Greek heavy industry, which directly and indirectly employs more than 1,500 employees. Along with DELPHI-DISTOMON, the second largest bauxite producer in Europe, also a subsidiary of MYTILINEOS Group, ALUMINIUM continues to be one of the most robustly growing industries in the crisis-stricken Greece. As far as the energy domain is concerned, in the last ten years, MYTILINEOS Group has evolved into the dominant independent energy producer in Greece, with a unique portfolio of energy assets of PROTERGIA S.A., M&M GAS S.A. and KORINTHOS POWER S.A. Through strategic alliances and an investment plan of EUR 1 billion from 2007 to 2011, the Group is leading the developments shaping Greece's energy scene that creates opportunities for the country's economy and business community. STRATEGIC VISION & SUSTAINABLE DEVELOPMENT Maintaining this dynamic course and portfolio, the Company's goal is to pursue business excellence and maintain its position as the leading independent energy producer in Greece and as a strong, competitive European Industrial Group in the sectors of Energy, Metallurgy and Construction, with unwavering the duty to create value for its clients, business partners and shareholders.

At the same time, its non-negotiable principle is to ensure that this business course and growth are guided by the moral principles and values that keep the Group's alliance with society, with its people and with the environment unbroken. Within this context, MYTILINEOS Group is now more responsible than ever before to the challenge of meeting its duty, supporting at the same time Greece's potential and the recovery of its economy, through investments in the country's infrastructure and human capital. Exemplary in 2011, a year full of challenges both for Greece and for the international markets, MYTILINEOS Group generated a "social product" with a value of EUR 287 million comprising of investments, employee benefits, dividend, sponsorships and tax payments. This is a solid proof that, guided by its firm belief in the principles of sustainable development and corporate responsibility, MYTILINEOS Group strives, in each step that it takes, to ensure that entrepreneurship is inextricably linked to its social and environmental footprint. This is also underlined by the fact that MYTILINEOS Group's Sustainability Report 2010 has achieved application level "B" according to the GRI G3 guidelines. In practice, MYTILINEOS is principally focusing on the four core CSR axes Ă? marketplace, workplace, environment and

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

society Ă? according to which specific actions are undertaken.

appropriate education and training to employees of all levels across all companies.

More specifically: MARKETPLACE Ensuring and maintaining a high level of quality and safety in products and services, via strategic investments in products and technologies, has remained inextricably linked to the Group's activity as a responsible business partner. As a verification of this goal's constant achievement, ALUMINIUM S.A. and DELPHI-DISTOMON S.A. gained the distinction "Diamonds Ă? The Most Admired Enterprises 2011" by the information bank for economy and business, STAT BANK. At the same time, both MYTILINEOS Group and METKA received "Best Company" distinctions at the 2011 HRIMA awards. In order to keep this high level, strong is also the Company's commitment to develop and maintain corporate governance to the highest possible level, through the application of internal practices, even over and above those provided by the law, such as the establishment of CSR and Occupational Health & Safety Committees at the Board level. WORKPLACE With safety being the Company's outmost priority, and "Zero Accidents" the non-negotiable target, modern methods are used, with the Group being on constant alert and providing

This corporate concern and responsibility embraces all employees and surpasses national limits. Indicatively, in the past year, METKA held a special one-day conference on Holistic Safety issues for its employees at the worksite of Brazi, Romania. Moreover, in recognition of the effective work already done, ALUMINIUM came first at the "Safety Solutions 2011" competition. At the same time, recognising the value of its human capital, MYTILINEOS is establishing a work environment within which its people enjoy security, equality, stability and high satisfaction, and are committed and loyal to corporate values. ENVIRONMENT As a heavy industry, MYTILINEOS Group's conscious commitment is to strictly monitor and apply systematically specific Environmental Measures and Principles across all Group companies and to implement co-ordinated "green" actions or programmes aimed at protecting the environment. Exemplary, in 2011, faithful to its proclamations, the Group concluded its innovative investment plan of establishing a system of bauxite residues recovery facilities (filter

presses) at the establishments of ALUMINIUM, marking the cessation of the bauxite residues deposition into the marine environment. The full quantity of bauxite residues are now being discharged on the ground/ashore, in a specially formed area within the Company's premises. SOCIETY Focusing on people, MYTILINEOS Group seeks to respond to key social issues and provide assistance in order to alleviate them. It records local needs and helps address them, so that viable conditions for sustainable development of the local

communities involved may be created, especially in the areas where it operates. In line with this philosophy, MYTILINEOS Group has been one of the few Greek businesses to hold annual, open dialogue fora with their stakeholders. These fora are held in the local communities where the Group's activities are based. More specifically, during 2011, open dialogue fora were organised with high attendance levels for the second year running by METKA S.A. and ALUMINIUM S.A., with

PROTERGIA S.A. also joining this initiative for the first time. At the same time, the Group in 2011 proved once more its role as a genuine local partner responding to community needs. Amongst others, it organised a voluntary blood donation and an event to support therapeutic horse riding for children with special needs, sponsored a theatrical play of a local rehabilitation centre and proceeded to the donation of food and clothes to the Immigrants Association. www.mytilineos.gr

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Values and vision focusing on sustainable development "To manage affairs effectively you must anticipate events." Alcibiades Prominent Athenian statesman, orator and general (c. 450 - 404 B.C.)

"For the country to return to sustainable growth and development it has to undergo a process of major and radical reforms. NBG has put its full weight behind the national endeavour to reform and place the Greek economy back on a growth trajectory, undertaking its due share of the risks, supporting the drive to create sustainable jobs, backing business innovation, and spearheading financing for the highly promising green economy." Extract from the speech by NBG's CEO, Mr. Apostolos Tamvakakis, at the AGM, May 21, 2010.

124

The prospects and performance of NBG go hand in hand with the economic, social and business well-being of the country. The structures, policies and corporate culture of NBG all reflect this central fact. It is no coincidence that throughout the Bank's history, the heads of NBG were leading economic and social figures in the life of the country whose example inspired the principles of honest conduct, respect for the customer, contribution to the community, and the safeguarding of the cultural heritage. In a joint message prefacing NBG's CSR Report 2010, the Chairman of the Board, Mr. Vassilios Rapanos, and CEO, Mr. Apostolos Tamvakakis, stated the following: "2011 is a landmark year for us at NBG, as it marks the 170th anniversary since its establishment as the first credit institution in the country. Over the course of this long history, NBG has played a pivotal role in shaping the Greek banking system, while also being active in spheres that go well beyond the financial sector. The Bank stood by every effort to foster economic development in the country; it offered, and continues to offer, much to the progress of the community and to the preservation and safeguarding of the nation's rich cultural heritage. Today, in this extremely stressed period, we are committed to continuing our efforts and taking new initiatives to provide vital assistance in the country's endeavour to resume a course of recovery and return to economic growth."

The official award ceremony of the second i-bank Innovation and Technology Competition prize winners.

The leadership of NBG has defined the key strategic goals by which the NBG Group will be able to pursue sustainable growth within the current harsh environment, i.e.: – To restate the Bank's relationship with the community, its employees and its customers by virtue of a new Contract between the Bank and Society; – To reaffirm and reinforce its commanding presence in Greece in every sector of the market; – To enhance its capital base and fortify its balance sheet; – To maintain healthy liquidity and keep costs firmly under control. In its relations with customers and the community at large, the Bank has launched specific initiatives that serve to confirm yet again its role as a vehicle for stability and growth: – Funding for Renewable Energy Sources (RES), with a particular emphasis on photovoltaic (PV) projects. In 2011, new approvals for RES investment initiatives amounted to EUR 274.51 million, with PV investments accounting for power capacity of 16.3 MW, out of a total of 21.25 MW in RES investments. – Support for Green Energy initiatives through the provision of a host of specialised green financing products, plus a highly successful "Energy-Saving at Home" household carbon footprint reduction programme. NBG has so far disbursed 50% of the total funds under the programme, while the disbursement rate is steadily increasing, thus reaching an ever greater number of people.

EUROCHARITY YEARBOOK 2011/12

126

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

– Support for SMEs and households via EU funding programmes (e.g., JEREMIE and JESSICA), plus a series of products designed to reschedule debts under favourable terms. NBG manages 33% of the JESSICA funds, which amount to a total of EUR 258 million for Greece. – Enhancing customer confidence in the Bank with the effective operation of its own Customer Ombudsman. In 2011, almost 50% of requests submitted to the Ombudsman concerned matters arising from the current economic crisis. 62% of requests were resolved in favour of the customer, while 64% of cases were dealt with within just one week. – Support for innovation and technology after the successful completion of the second i-bank Innovation and Technology Competition and the award of prizes to the winners. Some 467 individuals took part in the second competition, with a total of 307 solo and team entries. – Ongoing enhancement of our banking services, with the introduction of state-of-the-art technologies, including "i-bank store" and "i-bank corner". In 2011, NBG launched two i-bank stores, one at The Mall Athens and another at Aristotelous Square in Thessaloniki, while an i-bank corner is up and running at the Mediterranean Cosmos shopping centre (also in Thessaloniki). NBG is the first bank to launch such stores in Greece. – Launch of a series of measures aiming at enhancing transparency and changing the Bank's pricing policy. The various texts of contracts and agreements signed by the Bank with its clientele are being reviewed by the Bank's Legal and Regulatory Compliance services so as to ensure that customers receive clear and jargon-free information, both before and during the provision of the Bank's services. – Ongoing reduction in the Bank's carbon footprint, mainly through measures designed to save energy and natural resources. For instance, the introduction of a system that initiates central shutdown of all the Bank's computer terminals at the end of the working day is estimated to generate savings of approximately 772,200 kWh per annum. – Active promotion of corporate responsibility principles, by exerting an influence on more and more groups of stakeholders, including suppliers and their associates. – Ongoing support for the valuable educational and cultural work of the NBG Cultural Foundation and the NBG Historical Archive.

As the NBG's CEO, Mr. Apostolos Tamvakakis, points out, "the current global and national environment demand a leadership strategy that will steer us successfully through the economic storm and enable us to play our part in restoring the strength of the economy and providing support to society at large ... Our overriding short-term goals during the present crisis are to maintain strong liquidity and a robust capital base, while also addressing the problems that are afflicting our customers as a result of the recession."

The decisions and initiatives taken by NBG's leadership have been vindicated by developments. At every stage in the Bank's long history, and particularly in times of crisis, the management team and staff at the largest financial institution in the country have consistently made every effort to support the community at large and the growth of the economy, backed by their long-standing adherence to the principles and values of social responsibility. Throughout the decades, the people at NBG, management and staff

alike, have demonstrated their commitment to fostering the country's growth and prosperity. This is amply reflected in the bonds of trust that bind the Bank to its customers, shareholders and the community in which it operates.

www.nbg.gr

"We are fully aware of the highly-significant historical and institutional role played by NBG. For 170 years, NBG has been present at every critical moment in the country's history, through rough and smooth. It has never shied from its responsibilities, it has never admitted defeat, and it has never turned away. It has always stood in the front line. For 170 years, the fortunes of NBG and the Greek State have been inextricably bound together. Thousands of shared efforts and visions have united them on a common path. For 170 years, NBG has accumulated Ă? and safeguards with special respect and care Ă? its most treasured asset: the rich reserves of goodwill and trust that generations of Greeks, businesses and individuals alike, have shown it. This Bank knows how to weather the storm. And this is what it is doing today. It is helping the country in this most arduous endeavour. To make this endeavour succeed, let me assure you that everyone of us here at NBG will do everything in his or her power to preserve its independent course, however severe the storm may be."

Extract from the speech by NBG's CEO, Mr. Apostolos Tamvakakis, at the opening of the exhibition celebrating the 170th anniversary of NBG, held between December 1, 2011 and January 22, 2012.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Corporate Responsibility is a basic growth pillar for OTE

Michael Tsamaz Chairman of the Board of Directors and CEO OTE S.A.

128

"These are very challenging and defining times for Greece, requiring from all of us great resilience, shared purpose and commitment to a sustainable future. As one of the largest organisations in Greece and South-East Europe, OTE Group showing endurance and vision, is setting and meeting high standards for all its operations aiming to return to society a share of its success, along with covering tangible needs. 2011 has been a year of significant achievement and shows that the OTE Group seriously regards business success and social responsibilities as inseparable. In 2012 and the years ahead, we will be challenged and tested yet again. Equal is our certainty that we will not falter in our path towards sustainable growth."

CORPORATE RESPONSIBILITY AND BUSINESS STRATEGY The values of Corporate Responsibility (CR) constitute a strategic component of OTE's business strategy, planning, policies and operations. The principles and values of CR constitute a strategic choice by OTE and are included in the objectives of the Company's three-year (2010-2012) Business Plan. For over half a century, CR has been a key part of OTE's culture, with a particular emphasis on accompanying our market presence with societal awareness and contributions. Through its "Building Ties" CR programme, introduced in 2005, OTE focuses on the marketplace, workplace, society and environment issues that are important to the Company's success and to its stakeholders, in close alignment with European and international CR standards. We aim at demonstrating OTE's presence as a "responsible citizen" every day and creating a sustainable business with increased competitiveness. Once again in 2011, OTE's Corporate Responsibility priorities focused on the four "Building Ties" pillars with the following priorities that are based on the most important issues for our business and stakeholders during very difficult times in Greece: â&#x20AC;&#x201C; Marketplace: Focus on optimising the infrastructures and providing competitive and high-quality services to meet customers' needs within the new framework of market convergence. Contributing to the development

CR Index Awards 2011. Information sessions on the subject of safe Internet use, addressed to students, at the OTE Telecommunications Museum.

of broadband services and systematically investing in bridging the digital gap and Internet safety. – Environment: Development of actions and initiatives, in the framework of regulations and Company policies, using qualitative and measurable quantitative targets, to minimise the ecological footprint of the Company, through the limitation of energy consumption, the recycling of materials and the support of environmental non-governmental organisations. – Employees: Adoption of policies and practices that encourage personal development and recognise good performance; ensuring equality of opportunities in the working environment and promoting co-operation and implementing ward programmes to further enhance working conditions. – Society: Continuation and expansion of actions and initiatives that contribute to the preservation and protection of social cohesion through support of vulnerable social groups, digital inclusion, cultural heritage preservation and promotion of employee volunteerism; with particular focus on the regions. OTE's CR strategy, initiatives and reporting are closely aligned with a number of European and International standards. OTE is included in the list of the Top 1000 Corporate Responsible Companies based on an international survey in the context of GRI Indices and has received the Award of the Best Company on Corporate Governance in 2010.

VISION, MISSION AND CORPORATE GOVERNANCE OTE's vision, mission and business strategy, as well as its relations with stakeholders, are governed by corporate and moral values and are set forth in the Company's Code of Ethics and Business Conduct. The Company aspires to implement optimum corporate governance practices, based on the best practices adopted at the International and European Levels, spanning the entire spectrum of its business operations. CR CERTIFICATION AND INDICES Global Reporting Initiative (GRI): OTE was one of the first Greek companies to apply the GRI's G3 Sustainability Reporting Guidelines. In 2011, we have again applied the G3 Guidelines, including G3.1 Guidelines regarding diversity and human rights for the indicators on which we report.

External Assurance: OTE's 2009 CR Report was also among one of the first Greek companies to be independently externally assured, pursuant to the ΑΑ1000 AccountAbility Principles Standard, thus achieving the GRI "B+" application level. OTE's "Building Ties" CR programme, focuses on issues that are of great importance for both our business and our stakeholders. In 2011, OTE continued to develop its approach with applying the AA1000 principles pertaining to Inclusivity, Materiality and Responsiveness. From stakeholder feedback received during 2011 and in preparing the 2011 CR Report, we are confident that our

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

programmes address our stakeholders' main priorities, while acknowledging the need for further development of the systems to support our efforts to determine and evaluate emerging or changing issues.

telecom groups in South-East Europe. OTΕ's objectives primarily target sustainable development and increased competiveness, by offering high-quality products, services and customer care, by providing "combo packages" as well as by simultaneously tapping into synergies at the intragroup level.

Opening ceremony of the Pan-Hellenic Centre for Immediate Social Intervention for children, by "The Smile of the Child". (Ms. Deppie Tzimea, Head of Corporate Communications OTE Group, Mr. Costas Yannopoulos, Chairman of the Board of the Association "The Smile of the Child").

INTERNATIONAL CR INDICES FTSE4Good: For the last four consecutive years (i.e. since 2008), OTE has been included in the FTSE4Good Index on issues pertaining to CR, guaranteeing transparency and the continuous effort for the implementation of good practices. The FTSE4Good Index measures CR performance and includes top companies from all over the world.

Corporate Responsibility Index (CRI): In 2011, for a fourth consecutive year, OTE participated in the Corporate Responsibility Index (CRI) evaluation procedure, in cooperation with BITC (Business in the Community), and for the second time received the "gold" distinction as well as the award for the "Environment", among many other significant Greek companies and multinational enterprises. The CRI Index is an evaluation tool and is considered as one of the most important international indices in Europe for the measurement of the performance of the companies regarding CR. About OTE OTE is the largest telecommunications provider in Greece, and, together with its subsidiaries, forms one of the leading

OTE's vision is to ensure the growth of the Company and to maintain its leading position in the market, by offering the best possible experience to its customers, both in Greece and within the broader South-East European market. OTE's business strategy includes: – Offering innovative high-speed solutions, on the basis of its comprehensive network infrastructure, in such a manner so as to generate value both for its shareholders and for society. – Expansion of broadband penetration in the Greek market, and fully maintaining and exploiting OTE's competitive advantages. – Enhancing customer service, by providing more substantial and rapid after-sales support. – Expanding and upgrading the OTE network, aiming at the gradual transition to a "new generation" network.

Learn more about OTE's CR by visiting: www.ote.gr

OTE - COSMOTE ΟΤΕ - COSMOTE Scholarships for Greek Regions.

Event organised by OTE and COSMOTE, on the occasion of Safer Internet Day 2012 and in the framework of the awareness campaign "In the Internet fairyland, we want no villains".

EUROCHARITY YEARBOOK 2011/12

For a better world

LEADERSHIP FOR SUSTAINABILITY

COSMOTE acts as a responsible corporate citizen from the beginning of its commercial operation in order to contribute to the world's sustainable growth, to collaborate harmoniously with its stakeholders and to take into consideration economic, environmental and social parameters in its decision-making processes. This responsibility is vested both within the respective Corporate Responsibility Team and within all our people whom COSMOTE informs and educates, so that they play their part both as employees as well as citizens. Through internal analysis and dialogue with COSMOTE's stakeholders, the five Pillars of Corporate Responsibility were determined, as described below: STRATEGY AND MANAGEMENT Corporate Responsibility for COSMOTE is the commitment to contribute to global sustainable development, by taking economic, ecological and social objectives into consideration in its decision-making processes, to take responsibility for the impact of the organisation's activities, by working and communicating with internal and external stakeholders, while at the same time improving the company competitiveness.

Free wireless broadband Internet access at high speeds and installation of technology equipment to schools in isolated regions, through the "Surfing the World" programme.

132

Recognising its operational priorities, COSMOTE is taking into consideration (a) the effect each area has on its stakeholders and (b) the degree of control the company has on each area setting specific strategic priority areas that are briefly described below:

Low Carbon Society: The Information and Communication Technology (ICT) sector can contribute to the reduction of energy consumption (and the respective carbon dioxide emissions), up to 15% until 2020 (corresponding to 7.8 Gtn CO2), according to the SMART 2020 study.

Connect the Unconnected: A mobile telephony company provides consumers with access to information and communication, reducing the digital divide, supporting

CORPORATE LEADERSHIP

disabled people in having a normal life, etc.

Connected Life and Work: Mobile telephony services can contribute to work effectiveness, independent of locations and travelling, social networking and work/life balance.

In the meantime, the company monitors the needs and expectations of its stakeholders, through specific procedures. The company participates and monitors surveys carried out by independent institutions, addressing its stakeholders' perception regarding responsible operation. For example, within the quantitative survey "Social Barometer A.S.B.I. 2011", COSMOTE has been assessed as: "The second most recognisable company for its social contribution within the Greek market (and the first in the telecommunications sector). The second company in terms of pervasiveness of its social contribution within the Greek market (and the first in the telecommunications sector)". ENVIRONMENT COSMOTE's objective is not to have a negative impact on the environment (in cases where this is not feasible, the aim is to minimise the negative impact, which inevitably originates from all human activities) and, at the same time, to raise citizens' awareness as far as acting more responsibly regarding environmental protection is concerned. Within the frame of our Environmental Management System, which is certified according to the ISO 14001 standard, COSMOTE analysed all its business activities, products and services with reference to their impact on the environment trying to improve its environmental performance, by setting goals, determining indicators and taking actions, which are economically feasible, through a multifaceted Environmental Strategy, which is based on three main axes: – The reduction of our own environmental footprint – Briefing and raising stakeholder awareness – Our contribution to the reduction of the environmental footprint of other business sectors

SOCIETY COSMOTE believes that its development model must combine the company's continuous growth with the prosperity of those who are influenced by our operations. Our objective is to combine our business success with prosperity and quality of life, for citizens in the local communities in Greece and other countries we conduct our business in. All the above is realised through several actions, such as the following: – Developing products and services for disabled people as well as utilising mobile telephony technology for the common good – Recognising the need to financially support weaker social teams and organisations which support these teams, COSMOTE focuses on the following areas: Ð Equal opportunity rights for disabled people Ð Equal opportunities in education Ð Taking care and protecting children Ð Protecting minor children during Internet usage – We support the economies of countries we operate in – We protect the company, through a Business Continuity Management System – We encourage volunteerism – We inform young people on modern corporate practices – We support technological development – We utilise technology to reduce the digital divide HUMAN RESOURCES COSMOTE defines policies to respect human rights, provide equal opportunities among employees, avoid discriminations, ensure meritocracy in developing its employees and protect freedom of association. To achieve the above, the company's objective is to create a workplace that is safe, fair and facilitates the professional and personal development of its employees. MARKETPLACE We follow a management approach based on the principles of transparency and ethics, while at the same time we contribute to the responsible operation of the Marketplaces, in which COSMOTE conducts business.

The company's efforts to become more responsible are recognised, and have received a number of distinctions, such as: – At the "THALES - CEO & CSR 2011" Awards, COSMOTE received the top award in the "Best Corporate Social Responsibility Team" category – At the "BRAVO, Sustainable Development Awards 2011", the 2009 Corporate Responsibility Report received the award in the Best Models' Application category – At the "International Business Continuity Awards 2011", COSMOTE won the sixth place in the Business Continuity Initiative of the Year category – At the "HRIMA (MONEY) Business Awards", COSMOTE received the "First Award for Social Responsibility - 2010", according to votes of the wider business community – At the Hellenic Advertisers Association's 5th HAA Corporate Social Responsibility Excellence Awards 2009, COSMOTE won the award for the project "When you have the knowledge, you have the world in your hands": Information initiatives for the Safe Use of Mobile Services, within the Business Environment / Market category – Within the EMDI (Environmental Management and Disclosure Index) Assessment, conducted for the first time in Greece by WWF Hellas, COSMOTE Greece was assessed in Band F, receiving a score of 44.6%. Adopting new technologies, strengthening the competitiveness of the economy, increasing productivity through transparent and reliable means as well as improving quality of life, while minimising its environmental footprint, remain the main objectives of the COSMOTE Group. At a time when wellgrounded optimism and good news need to be fostered, COSMOTE will continue growing in order to be able to return to society a share of its prosperity. This is the added value of its business.

www.cosmote.com

Through "Our world is you" campaign, COSMOTE offered everyone the unique opportunity to see their idea for a better world, turn into reality.

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

CORPORATE LEADERSHIP

Responsibility in Action... for all

"As a socially responsible Company, we aim at making a difference through specific actions in the areas of education, culture and social support. As a result, I believe that we do have good stories to tell and, most of all, that our actions have had a positive impact upon people's lives."

At WIND Hellas, we recognise the important role that both the telecommunications sector and our Company have upon our lives. Based on the significance of our business activity for our customers and the whole Society and considering our impact on the Environment, we incorporate a multifaceted Corporate Responsibility Strategy in our daily practice, which addresses both our people and the Society in broader terms. Adopting Responsible Business Policies and Practices, based on our Corporate Responsibility Strategy, is our permanent priority, which is expressed via our Company's core commitment and through the adoption of the UN Global Compact. Our commitment is reflected in the Internal Governance Structure of our Corporate Responsibility.

Nassos Zarkalis Chairman of the Board and CEO WIND Hellas Telecommunications S.A.

134

Within this framework, we at WIND Hellas have adopted the "In Action" Corporate Responsibility Strategy. The objective of this strategy is to implement our responsibility policy in our Business activity, the Environment, Society and the Marketplace. Thus, we commit ourselves to: â&#x20AC;&#x201C; Supplying responsible products and services with the aim of covering important social needs throughout the Greek territory, such as the human need for communication;

â&#x20AC;&#x201C; Minimising the environmental impact of our business activity focusing on decreasing energy consumption, recycling materials and developing our network infrastructures in an environmentally-friendly way; â&#x20AC;&#x201C; Informing and motivating our people by encouraging them to become volunteers and active citizens; â&#x20AC;&#x201C; Supporting organisations and bodies that, through their work, contribute protecting the Environment and support people in need, especially children. In 2010, for the third consecutive year, WIND Hellas confirmed its commitment to the systematic and objective reporting of its activities within the framework of "In Action" through publishing its annual Sustainability Report. The 2010 Sustainability Report of WIND Hellas achieved application level "B+" according to the GRI G3 guidelines, by reporting more and better quantitative results and indicators. Our objective is to gradually and steadily improve our Corporate Responsibility strategy, ensuring a solid system of corporate governance and a stable method of reporting based on the strict criteria of objectivity and reliability.

www.wind.com.gr

FACTS & FIGURES

Top overseas markets for CEOs

Source: "Delivering results: Growth and value in a volatile world", 15th Annual Global CEO Survey, PwC, 2012.

136

If I have seen farther than others, it is because I was standing on the shoulder of giants.

A genuine leader is not a searcher for consensus but a molder of consensus.

SIR ISAAC NEWTON English physicist and mathematician, and the greatest scientist of his era (1643 - 1727)

MARTIN LUTHER KING, JR. Baptist minister, activist and prominent civil rights leader (1929 - 1968)

I have no doubt that it is possible to give a new direction to technological development, a direction that shall lead it back to the real needs of man, and that also means: to the actual size of man. Man is small, and, therefore, small is beautiful. ERNST FRIEDRICH "FRITZ" SCHUMACHER Internationally influential economic thinker, statistician, economist and author of Small is Beautiful: Economics as if People Mattered (1911 - 1977)

Reason and judgment are the qualities of a leader. PUBLIUS (OR GAIUS) CORNELIUS TACITUS Senator and a historian of the Roman Empire (c. 56 - c. 117 A.D.)

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

VISIONARY LEADERS

Leaders fit for the future

In the recovery process of the current global economic downturn, the most severe in recent decades, all entities involved in social, economic and business activity have realised that previous "wealth creation" models have been rendered obsolete to a large extent. In occasions, our actions seem to be focused on how we provide extra fuel to the engine of the global economy, hoping that the engine is working fine and growth will emerge. However, the engine is not working fine. We have not managed to solve the problems of society and not reaped any real benefits in the business world either.

Kris Amiralis Chairman of the Board and Founding Partner Future Leaders

We need to do some radical rethinking of our socioeconomic model, as what we are doing today is not working. Ever-changing global market trends; rising political and economic instability in many parts of the world; rapid changes in demographics with substantial increases in the world population and aging societies; a global knowledge society through an increasing cross-linking of information through the Internet; and the importance of sharing "global responsibility" are the key topics that leaders are facing today. These trends create a demand for leaders whose core skills are centred on collaboration. Such collaboration across functions, organisations, public and private sectors, cultures and countries is the foundation for long-term economic succession and wealth creation. Collaboration

142

is also key in creating shared value, and this motion has reached the level of urgency in our business environment today. It is vital that this motion of collaboration becomes epidemic in order to achieve sustainable global wealth creation. In the collaboration age, leaders must be able to deliver partnering with others, create positive cultures that support strategy, build structures and processes that sustain performance over time, engage people so they "go the extra mile" and develop an enabling environment that turns motivation to results. Today, leaders need to deal with increasingly diverse teams, be visionaries, allow more autonomy and harness new technology. Leaders in the sustainability era have to rethink how to do business today and create a positive benefit to society, while at the same time generating economic value for their organisations. In order to make it happen and glue these relationships and partnerships, we have to adopt new behaviours as the norm in our leadership model. Behaviours like cross-cultural awareness, trust and openness, listening and bringing in are becoming priorities. We have to shift our thinking from "they give us a good deal" to "they're really one of us". Behaviours are fundamental, but need to be coupled by clarity. Clarity of purpose and accountability facilitate quality of decisionmaking.

Today, it is our priority to develop sustainability leaders fit for the future. Have you ever wondered who our leaders will be in the next ten, twenty years? We do not have the luxury to wait until such natural leaders begin to emerge. It is the responsibility for all societal stakeholders to make it happen. The quality of our future leaders depends upon the experiences we are providing for today's children and youth. We have to take on this challenge and strive to create learning and enabling environments that engage minds and motivate each participant to reach his or her potential. It is based upon the premise that in this century everyone will need to function as leaders in families and communities, if not in business and government.

Kris Amiralis is the Chairman of the Board and Founding Partner of Future Leaders. Since June 2011, he also serves as Chief People Officer at Frigoglass Group, the leading player in the global Ice-Cold Merchandisers (Beverage Coolers) market and the largest glass bottle producer in West Africa and Middle East, meeting the needs of beverage companies. Kris has over 25 years of professional experience working world-wide with leading organisations such as Hay Group, American International Group (AIG), Legal & General and Holiday Inn, with a key focus on strategy clarification, organisational effectiveness, leadership development, and design and implementation of HR strategy to realise business objectives. Kris studied Economics, Mathematics and Computer Science at the University of Salford and holds a sponsored MBA from the University of Brighton. Kris is married to Elena and they have five children: Zane, Alexis, Vickie, Emanuel and Elle. Future Leaders is a non-profit organisation that brings together the business community, NGOs and the "new generation" Ă? graduates and postgraduates of established universities Ă? in a programme that combines leadership development and CSR, and generates sustainable solutions to overcome current community challenges. Today, through the programme, our "new generation" of Future Leaders have provided propositions and solutions that have benefited organisations such as the National Theatre of Greece, the Society for the Protection of Prespa, "The Smile of the Child", Maniatakeion Foundation, Merimna Care, Ermoupolis Industrial Museum and the Goulandris Natural History Museum - Gaia Centre. Founding corporate members of the Future Leaders organisation are AB Vassilopoulos, Athenian Brewery S.A., Minerva Edible Oils S.A., Sprint Communications and TITAN Group. www.futureleaders.eu.com

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

VISIONARY LEADERS

Cradle to Cradle¨ and materials management Our industrial society is based on a cradleto-grave model of material flows. Material is extracted from our environment, made into products, used and then discarded. It might be recycled, travelling round the resource loop a few times, but it ultimately ends up as waste. We strive to be more efficient, to do more with less, reducing our environmental impact, but waste remains and the environment suffers. Cradle to Cradle¨ design offers an alternative. Prof. Dr. Michael Braungart Founder and Scientific CEO EPEA Internationale Umweltforschung GmbH

144

It is a framework for developing industrial systems in which materials are seen as nutrients in a regenerative, cyclical metabolism. Not only does such a system effectively abolish the concept of waste, but it nourishes the economic, environmental and social structures it is a part of. Through this development of intelligent materials pooling, business communities enable the creation of an industrial system of Cradle to Cradle¨ material flows. Modelled on the regenerative abundance of natural systems, the concept of eco-effectiveness presents a vision for developing industrial systems that move beyond eco-efficiency and dematerialisation. In nature, each element depends upon and provides for others. A cherry tree's blossoms bring forth a new generation of cherry trees, while also providing food for flora and fauna alike. Nature does not respond to interdependence by seeking to minimise itself out of existence, but by growing and flourishing. In the same way, the key to generating a productive and sustainable economy is not through strategies of damage control and minimisation, but through the development of industrial metabolisms that support environmental, economic and social structures. An expression of the eco-effective philosophy, Cradle to Cradle¨ design offers a framework for designing products and the material flows of which they are a part in a way that is not about being "less bad", but about being beneficial instead.

Cradle to Cradle¨ design provides an intelligent and graceful way to handle a world where resource scarcity is an evergrowing problem, where the value of rare earth materials is constantly rising, and where government pressure to reduce and minimise impacts is constantly increasing. Cradle to Cradle¨'s material flows, or metabolisms effectively break everything down into two groups. Materials that are not hazardous to living systems, and are biodegradable are called biological nutrients. These can include everything from textiles to car tires. All biodegradable products are referred to as products of consumption, because they are actually used up during their use and are designed to be safely returned to the environment. Conversely, materials that are made of synthetic materials, minerals, or other rare elements are called technical nutrients. The products made from these materials, when designed by the Cradle to Cradle¨ principles, are made to be reused in safe, perpetual, closed cycles. This eliminates the need to use anything but recyclable raw materials. The Cradle to Cradle¨ philosophy sees technical nutrients as products of service. Unlike products of consumption, products of service do not physically degrade during use. They do not have to be discarded after use, and so technical nutrients do not come into direct contact with living systems. Products, such as washing machines, cars, etc., are not bought, but rather leased by the customer. This allows the manufacturer to use higher quality materials and removes the liability of disposal from the consumer.

Cradle to Cradle¨ design provides an innovative approach for industries and leaders to solve some of today's most pressing environmental problems. It challenges the way we think about design, materials, and our interactions with one another as well as with the world we live in. Through biological and technical nutrients, materials pooling, and excellent design, we can create products in such a way as to ensure a better world for the present without compromising the future.

Prof. Dr. Michael Braungart is the Founder and Scientific CEO of EPEA Internationale Umweltforschung GmbH in Hamburg. He is also the Co-Founder and Scientific Head of "McDonough Braungart Design Chemistry" (MBDC) in Charlottesville, Virginia, U.S.A. and the Founder and Scientific Head of the "Hamburger Umweltinstitut" (HUI). Michael studied chemistry and process engineering, amongst others, in Konstanz and Darmstadt. In the 1980s, he dedicated his work to the environmental organisation Greenpeace. From 1982 onwards, he was active in establishing its chemistry department, which he took over in 1985. In the same year, he received his Ph.D. from the University of Hannover's Chemistry Department. Michael founded EPEA in 1987. Today, he holds four academic chairs: at the Rotterdam School of Management, Erasmus University (RSM), Leuphana University Lüneburg, University of Twente in Enschede and Delft University of Technology (TU Delft). Founded by Prof. Dr. Michael Braungart in 1987, the EPEA (Environmental Protection Encouragement Agency) Internationale Umweltforschung GmbH works with clients world-wide to apply the Cradle to Cradle¨ methodology to the design of new processes, products and services. Materials are applied with respect for their intrinsic value and their useful afterlife in recycled or even "upcycled" products, which have value and technological sophistication that may be higher than that of their original use. EPEA is a licencee of the Cradle to Cradle¨ Product Certification System that has been developed by MBDC.

www.epea-hamburg.org www.braungart.com

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

VISIONARY LEADERS

Leadership in impact investing

One often hears that "money is the root of all evil." However, I recently researched the original source of this quote, and the real verse is, "For the love of money is a root of all types of evil." At Calvert Foundation, we think about money differently. We think money and investment capital can be a force for good.

Lisa Hall President and CEO Calvert Foundation

146

Calvert Foundation has been instrumental in providing a new way to invest. We make it possible for people Ð as well as institutions and corporations Ð to invest with the goal of ending poverty. We call this "impact investing" and it is a way to invest for a financial return while delivering a social return to communities lacking access to capital, resources, and opportunity. I am especially excited about a new program we are launching called WIN-WIN Ð the Women Investing in Women Initiative. The goal of WIN-WIN is to raise investment dollars from women Ð and from those who care about women Ð in order to invest money in organisations that empower women by providing small business loans, daycare, education and more. Investing in women is "smart economics", because it has a multiplier effect. Women are more likely to extend the benefits of economic stability or gain to those in their family and community. The evidence is clear. When women have the same amount of land as men, there is a 10% increase in crop yields. When 10% more girls go to school, a country's GDP increases on average by 3%. Plus, we would like to use this initiative to engage a whole new set of investors Ð especially women. Globally, women control USD 20 trillion in spending. Let's get them to move their capital to a cause they are passionate about: empowering other women!

One example of the type of work that WIN-WIN will finance is The Paradigm Project. In rural Kenya, women typically cook every meal over an open fire, which is difficult work that requires hours of collecting wood, subjects them and their children to severe health risks, and can drain a family economically and a community environmentally. Paradigm is helping to deliver efficient cook stoves that require less wood, reducing respiratory illnesses, and increasing women's productivity and safety. While we see women as important to financial and community sustainability, we are also concerned with environmental sustainably, particularly because environmental calamities disproportionately affect disadvantaged communities by damaging areas where poor families work and live.

Impact investment creates a virtuous circle of empowerment, opportunity, and engagement by connecting investors, underprivileged individuals, and communities. Right now, we have nearly 10,000 investors active in the United States, lending to over 200 microfinance, housing, social enterprise, fair trade and other non-profit organisations both in the U.S.A. and dozens of other countries around the world.

Lisa Hall has been the President and CEO of Calvert Foundation since January 2011. When she joined Calvert Foundation in 2005, she took on the management of a USD 76 million loan portfolio as Chief Lending Officer. Over the years, Lisa more than doubled that portfolio to nearly USD 190 million, while keeping losses under 1.2% during one of the most economically challenging periods in recent history. Lisa has been featured in Forbes, The Washington Post and dozens of other publications, and has spoken at conferences. She was recently dubbed

We are one of just a few impact investment options available to investors who are not accredited, yet want to invest in a global portfolio, but also work to raise the profile of this industry because Ă? in the end Ă? we believe every investor should be an impact investor.

an "Innovator in Action" by Take Part/Skoll World Forum. Follow Lisa on Twitter @LisaGreenHall. Imagine trying to get a loan for a home or a business and not being able to? For millions of disadvantaged people around the world, the door to financial opportunity is closed. Since 1995, Calvert Foundation has been working to open that door. Calvert Foundation is a non-profit that has pioneered a new type of investing that delivers a social and financial

Calvert Foundation is uniquely positioned to connect investors with environmental enterprises in a way that has typically been restricted to foundations and institutional investors. We currently have over 13 investments focused on sustainability and, through our "Green Strategies to Fight Poverty" initiative, expect to bring in and deploy millions more. One example of a borrower developing innovative solutions for people and the planet is the Wood Street Urban Farm, Chicago's first urban farm, which grows organic vegetables year-round, employing Chicagoans who have previously been incarcerated or homeless.

return. We have made it possible for people to invest in us, and then we invest in organisations around the world that empower people that live in low-income communities. We believe in giving a hand up and enabling people to lift themselves out of poverty. www.calvertfoundation.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

VISIONARY LEADERS

Today we are seeing the dawn of the sustainable economy. It is emerging in dynamic cities, competitive companies and vibrant economies all over the world. While we have struggled to understand and address the complexity of the global crises, a multitude of encouraging examples of sustainable practices have been successfully implemented around us. On a daily basis, they are demonstrating that economic prosperity, social welfare and environmental responsibility can go hand in hand. That sustainability is about people, society and everyday life.

LEADERS CAN AND SHOULD LEAD BY EXAMPLE The manifesto produced guidelines for leaders and recommended that, in order to unleash the potential, leaders should re-think business models to create value in a sustainable economy. Leaders can accelerate the transition by experiment and encourage the entrepreneurial spirit, by setting up public-private partnerships, by sharing information, by enabling people to make sustainable choices. The following guidelines were developed to present decision makers with a clear strategy/plan for action.

At the conference "Take Lead" organised by Green Growth Leaders, 576 leaders and experts from 21 countries met in Copenhagen, Denmark, and decided to take this leadership forward and together they developed the Copenhagen Manifesto on Sustainable Growth.

– Empower change makers. Governments must enable cities to become platforms for solutions. – Focus on benefits Ð instead of focusing on cost. – Ensure vision, inspiration and motivation for change. – Share best practices. Great solutions have already been developed and implemented in cities and businesses around the world Ð and need to be communicated and shared. – Set up models that tap into institutional investors, who represent a major, relatively untapped financial source. Governments, the private sector and other financial actors need to explore new models for partnerships that involve e.g. pension funds. – Provide transparency, so that it becomes clear to the consumer and society what resources companies use in their entire supply chain. Transparency can motivate change. A best practice example is CREX, the Corporate

Leading by example

Per Meilstrup Climate Director Green Growth Leaders

The manifesto demonstrates the examples that form an image of a sustainable society in the near future. A society that is more efficient, more innovative, healthier, cleaner, safer Ð and at the same time wealthier.

148

–

Renewable Energy Index, where companies report on their energy sources1. Play a frontrunner role in communicating and visualising their vision to a broader audience, including, for example, children. This is a way to create a bottom-up market pull. A best practice example is to "sell the sizzle" Ð i.e. focus not on the product itself (the steak), but the sensation (the sizzle)2. Take action towards providing services rather than products, which is a way of optimising the quality and life cycle aspects of investments, rather than selling the cheapest product. A best practice example is the ESCO model Ð Energy Service Companies that guarantee customers to lower their energy bill and are paid by parts of the savings. Discourage monopolies and support standards and frameworks that foster open source innovation in relation to energy infrastructure like smart grids Ð take inspiration from the way internet and telecommunication encourage the development of applications. Form clusters and partnerships, recognising that no single actor can fix the problem on their own. This includes using collaborative concepts like, for example, smart city 3.

But without inspiring and clear communication we will never have green growth. Transparency, dialogue, information and storytelling are important tools for change, but until now communication efforts have largely failed to motivate consumers and citizens to embrace the green economy. What is needed is not more communication, but better communication.

Per Meilstrup is primarily focused on content development and strategy in relation to Green Growth Leaders. He is a senior Danish figure in the field of environment, climate change and green growth more than 20 years of experience in communications, policy, business and advisory. He has headed a number of climate change and green growth initiatives at Monday Morning since 2007, including the Copenhagen Climate Council, the World Business Summit on Climate Change and the World Climate Solutions. Formerly he was Head of Communications

In a time of economic crisis, these guidelines are a promising way to grow the global economy and increase prosperity for all. However, political leadership and courage is crucial if the potential is to be released. Governments must have the audacity to lead, act as role models and showcase that the change is not only about money, but also a matter of ethics and moral.

at the Danish Environment Protection Agency and an adviser to Connie Hedegaard, currently European Commissioner for Climate Action. Per is a journalist by training and the author of a number of books on climate change. Green Growth Leaders is an international alliance of cities, regions, countries and corporations, sharing a vision of building prosperous, green economies and communities Ð and a better tomorrow for their citizens. Green Growth Leaders is fronted by a Council which includes: Lord Anthony Giddens, Sociologist; Bjarke Ingels, Architect; Dr. Soogil Young, Korean Presidential Committee on Green Growth; and Yvo de Boer, the former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). The alliance was founded by the City of Copenhagen, the philanthropic foundation Realdania, DONG Energy and the Scandinavian think tank Monday Morning. www.greengrowthleaders.org

1 www.vestas.com/transparency 2 www.futerra.co.uk/downloads/Sellthesizzle.pdf 3 http://setis.ec.europa.eu/about-setis/technology-roadmap/european-

initiative-on-smart-cities

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

VISIONARY LEADERS

What our era lacks is competent leadership for sustainability. Our leaders often have a poor grasp of the obvious self-benefits of taking the initiative rather than waiting for others to act. However, even when the benefits of being ahead of the game are understood, there is a lack of competence on how to act strategically, and policies and planning often consist of piecemeal and ad-hoc solutions.

A rapidly-growing group of decision-makers, including hundreds of mayors, CEOs and other high-level managers across the world, are using it to tackle the sustainability challenge. They apply the framework to:

A unifying framework on sustainability

Employing a "holistic" systems perspective to sustainable development is helpful, but not enough; as more and more essential aspects from the system get added into models complexity grows and will eventually become unmanageable. What is needed is an all-encompassing and robust framework for sustainability.

Dr. Karl-Henrik RobÂ?rt, Ph.D., M.D. Founder The Natural Step

150

Fortunately, a unifying sustainability framework, the Framework for Strategic Sustainable Development (FSSD), exists and is constantly being refined and developed further. The FSSD is designed to be unifying. It helps any organisation or planning endeavour (regardless of scale) to be put in context of a robust definition of sustainability for the whole civilisation, it makes it possible to co-operate effectively across sectors and disciplines to comply with the principles, and it increases the utility of various tools for the monitoring and auditing of sustainable development to make transitions systematic and financially successful.

1. Manage system boundaries, i.e. everything in the whole system affecting the individual organisation's chances to arrive at the goal should be taken into account. This way of allowing objectives to inform relevant system boundaries in complex systems is both logical, and doable by means of modern system dynamics and multi-factorial modeling. 2. Negotiate trade-offs, i.e. evaluating alternative investments on the basis of their respective capacities to serve as stepping stones towards the long-term goal, rather than as choices between evils in the short term. 3. Calculate sustainable resource potentials for various technical systems Ă? which cannot even be attempted unless sustainability is defined at the fundamental level. 4. Make interdisciplinary and cross-sector co-operation systematic, i.e. each sector or scientific field detecting challenges and opportunities that follow from the basic sustainability principles, and then comparing notes to identify opportunities for co-operation and joint ventures. 5. Pose relevant questions to scientists in order to inform new economies, indicators and tools for modeling/decision support/monitoring/communication.

A FIVE-LEVEL MODEL FOR PLANNING IN COMPLEX SYSTEMS Systems level

Success level

Overall definition of success within principles for social and ecological sustainability

Strategic level Actions level Source: The Natural Step.

Organisation, within society, within nature (biogeochemical cycles, thermodynamics...)

Tools level

Strategic guidelines for planning and acting towards success Actions planned and carried out in line with the strategic guidelines

Methods and tools used to support and monitor activities

6. Communicating and acting in a sufficiently trustworthy manner to gain democratic support for the sustainable visions.

Dr. Karl-Henrik RobÂ?rt, Ph.D., M.D. is one of Sweden's foremost cancer scientists who, in 1989, initiated an environmental movement called The Natural Step. Karl-Henrik is Professor of Strategic Sustainable Development at the Blekinge Institute of Technology in Sweden and

The most urgent challenge is to arrive at a critical mass of leaders who master the logistics of putting basic principles of sustainability on the table and then asking questions about alternative routes toward that goal. This is opposed to believing that fixing the myriad problems one by one, e.g. climate change, outside the realm of all the other sustainability-related problems, would be a feasible solution.

the Chairman of the Alliance for Strategic Sustainable Development. Karl-Henrik has won several sustainability related prizes, such as the Green Cross Award for International Leadership, the Blue Planet Prize and The Social Responsibility Laureate Medal. Elected in 2009 as one of Sweden's first two Ashoka Fellows, he has written many books, articles and scientific publications on sustainability, which encourage an understanding of the linkage between ecology, economy and technology.

Or to believe that if only enough knowledgeable people meet and share their knowledge, collected from their respective "silos", the big systems perspective will take care of itself. Beyond a robust framework for sustainable decisionmaking, large enough in time (backcasting) and scale (all of civilisation) the big picture of sustainability and sustainable development has not, and will not, take care of itself.

Founded in 1989 in Sweden by Dr. Karl-Henrik RobÂ?rt, Ph.D., M.D., The Natural Step is an international not-for-profit organisation that provides training, coaching and advice on how to advance the practice of sustainable development. Its mission is to connect sustainability leaders with the inspiration and education they need to integrate economic, environmental and social priorities into their planning and decisionmaking. It offers science-based understanding of sustainability and a practical strategic planning framework to help organisations make the choices that will move them towards sustainability.

www.naturalstep.org www.alliance-ssd.org

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

VISIONARY LEADERS

Young people make up more than half of the world's population, while over half of the world's young people Ð some 650 million between the ages of 10 and 24 Ð live in Asia and the Pacific. A growing movement of youngsters is speaking out and taking an active leadership role in society. Young leaders are making a difference in their communities, campaigning in their schools and are key activists. They are representing the concerns and views of their peers in fora, from youth parliaments to international meetings, and engaging in intergenerational dialogues with key decisionmakers and stakeholders.

Today, more than ever before, we must listen to this talented, new generation of young leaders. This generation is characterised by social sensitivity, is driven to change the world and rewrite the rules, and determined to achieve its objectives.

Young leadership: Advancing in the future

Tomorrow's leaders are creative, emotionally intelligent, socially conscious, proactive and connected world citizens, thinkers and doers. They are able to adopt leadership roles in their everyday lives, while taking the sustainability and planetary stewardship into serious consideration. Vassilis Triantopoulos President Young Entrepreneurs Association Hellas

In this fast-paced, modern, competitive world, the proper management of Ð and rapid adaption to Ð various situations is a critical characteristic for any future leader. Since the prospects in business are becoming more complex and varying, tomorrow's leaders must possess the skills to be able to make sound decisions.

152

Management guru, Peter F. Drucker, said: "Leaders in every single institution and in every single sector ... have two responsibilities. They are responsible and accountable for the performance of their institutions, and that requires them and their institutions to be concentrated, focused, limited. They are responsible also, however, for the community as a whole." It has become an imperative need to encourage youth leadership in the notion of youth development in which young people will gain skills and knowledge that are essential to leading civic engagement, education reform and community organising. In addition, the core principles of sustainability need to be fully integrated into youth leadership training and education. Today's young leaders are aware of the issues that the next generations will be facing. For example, according to a February 2011 survey project of the Brookings Institution's Foreign Policy programme1, among 1,057 young U.S.

D.C.'s New Guard: What Does the Next Generation of Americans Leaders Think? A Survey Project conducted by Peter W. Singer, Heather L. Messera and Brendan Orino, Foreign Policy at Brookings, February 2011, www.brookings.edu/~/media/research/files/reports/2011/2/young leaders singer/02_young_leaders_singer.pdf.

Vassilis Triantopoulos is the President of the Young Entrepreneurs Association Hellas as well as the founder and CEO of BIOAXIS Healthcare.

leaders with an average age of 16.4 (45% female, 55% male), terrorism was identified as the number one challenge for the future, followed by climate change, nuclear proliferation and global poverty. Young people are directly affected by the world's problems and the decisions made by leaders today. They have developed their own ways of communication, sharing views and engaging modern tools Ă? such as social media channels and mobile technologies Ă? to disseminate information, take the lead, motivate people, attract followers and make an impact. A notable example of youth leadership in the sustainability space is the famed daughter of Dr. David Suzuki, the awardwinning Canadian geneticist, broadcaster, environmental activist and Co-Founder of the David Suzuki Foundation. Addressing the delegates of the first international Earth Summit in Rio de Janeiro precisely two decades ago, Severn Cullis-Suzuki, speaking for the Canadian E.C.O. The Environmental Children's Organisation, said: "We are a group of 12 and 13-year-olds from Canada trying to make a difference: Vanessa Suttie, Morgan Geisler, Michelle Quigg and me. We raised all the money ourselves to come 6,000 miles to tell you, adults, that you must change your ways. Coming here today, I have no hidden agenda. I am fighting for my future. Losing my future is not like losing an election or

a few points on the stock market. I am here to speak for all generations to come." The numerous YouTube videos with her powerful speech, which received a standing ovation, have since become a viral hit, with millions of viewers from around the world.

He is the main lever and decision-maker of the latter's business strategy across Europe. Vassilis mediates market opportunities and oversees European operations to ensure the best practice outcomes. His foresight in medical trends and new technologies has yielded success and has supported BIOAXIS Healthcare's capacity for expansion. Vassilis started his first business, at the age of 21, in IT security. The company is currently

Today, Severn is a Canadian environmental activist, speaker, television host and author. Often speaking on the necessity of redefining our values, acting with the future in mind, and on listening to children, she is passionate about encouraging young people to speak out for their future. Popularly known as "the girl who silenced the world for five minutes", in 1993 she received the UNEP's Global 500 Roll of Honour. In the same year, Doubleday published Tell the World: A Young Environmentalist Speaks Out, her 31page book with environmental steps for families.

the main representative of VeriSign, Check Point and Netscape, among others, in more than ten countries, where he is still a shareholder. He is also an active member of additional non-profit organisations, including Future Leaders, EUCOPE Ă? the European Confederation of Pharmaceutical Entrepreneurs, JEUNE and others. The Young Entrepreneurs Association Hellas, with the distinctive title "YoungLeaders", is a non-profit organisation founded in 2007 by a group of young, established entrepreneurs. YoungLeaders aims at promoting young entrepreneurship through dynamic and innovative actions. YoungLeaders constitutes the most promising young entrepreneur's association as, for the

Victor Hugo once wrote: "One resists the invasion of armies; one does not resist the invasion of ideas." It is therefore of utmost importance that we listen to the leaders of tomorrow that are making a difference in their communities; provide them with the necessary knowledge, skills, tools, resources, guidance and opportunities; and encourage them to successfully implement their new ideas, hopes, dreams, initiatives and plans by turning them into reality. This, in turn, could help resolve local and global challenges and bring about a brighter, more equitable, sustainable and prosperous future for all.

first time, an organisation effectively concentrates a large and continuously increasing number of entrepreneurs from a variety of industries, including construction, shipping, IT, health, media and advertising, and education. Its members share a common vision of seeking, developing and promoting young entrepreneurship; they are inspired to create a path to promote business activity within and beyond the borders of Greece. YoungLeaders is a member of JEUNE, the organisation representing young craftsmen and young entrepreneurs of SMEs in the EU. www.youngleaders.gr www.yeahconf.gr

EUROCHARITY YEARBOOK 2011/12

LEADERSHIP FOR SUSTAINABILITY

VISIONARY LEADERS

I am a cardiac surgeon with a formal training in cardiac surgery at the Guy's Hospital in London under the National Health Service of the United Kingdom. I am extremely privileged to be born in a country which gave me everything I ever wanted, a great family, immense opportunities and exposure to western education.

Eight years ago, we convinced 1.7 million farmers to contribute Rs. 5 per month and the government of Karnataka agreed to contribute Rs. 2.5. With Rs. 60 per year from the farmer and Rs. 30 per annum from the government, we launched the most successful micro health insurance programme called Yeshasvini, which is the first such scheme to be launched on a large scale.

Dissociating healthcare from affluence

Dr. Devi Prasad Shetty Chairman Narayana Hrudayalaya Group of Hospitals

154

There is a crisis in the delivery of healthcare across the world and India is no exception. There is a big problem in the process of delivery of healthcare, though there are great treatment options available to treat virtually every disease. Unfortunately, a very small fraction of the world's population has access to it. The first heart surgery was done 100 years ago and, a century later, less than 10% of the world's population can afford it. My country requires 2.5 million heart surgeries and all the heart hospitals in the country put together perform less than 100,000 heart surgeries; the rest perish gradually over a period of time. Necessity is the mother of invention. As a heart surgeon, I see over 60-80 heart patients every day and most of them cannot afford treatment. This is the main reason behind all the innovation to make tertiary healthcare affordable. When you are a heart surgeon in a developing country, after having worked for many years, you are naturally getting recognition for the work you are doing. This recognition helps us to work closely with the government and bring about policy changes. Few successful initiatives naturally elevate your status to work closely with the government.

Our desire is to perform a major heart operation for USD 800. We know it is a difficult target, but we are convinced that it can be achieved. Today in India, 25% of the cost of delivering healthcare goes to the government in the form of various taxes. We are in the process of convincing the government that the amount of money they collect as tax is very small and if they waive the taxes, the cost of healthcare can come down significantly. We are also trying to convince the policy makers of our country to use mobile phones as a means to collect micro health insurance subscriptions. We have over 750 million Indians who are spending about Rs. 150 per month just to speak on the mobile phone. If we can collect Rs. 10 from each of these subscribers, we will have the world's largest, most robust micro health insurance programme. We work on several fronts to reduce the cost. For example, a few years ago we developed sophisticated software that can track every financial activity of our Group, which is based on the Oracle ERP platform. Today, we are in a position to get a daily profit and loss account in any of our hospitals across the country. We believe that

Dr. Devi Prasad Shetty serves as the Chairman of the Narayana Hrudayalaya Group of Hospitals, Bangalore, India and is a Professor of Cardiac Surgery. He is on a mission to make quality healthcare affordable to the masses world-wide. After graduating from Kasturba Medical College, Mangalore, Devi trained in cardiac surgery in London, returning to India in 1989 where he started at the B.M. Birla Heart Research Centre in Kolkata, followed by the Manipal Heart Foundation (MHF), Bangalore and the Rabindranath Tagore International Institute of Cardiac Sciences (RTIICS), Kolkata. In 2001, Devi founded Narayana Hrudayalaya, a 750-bedded speciality cardiac hospital on the outskirts of Bangalore City, which was subsequently expanded to add another 1,400 beds to include all other specialities. Devi and his team have performed over 70,000 major heart surgeries, of which more than 20,000 operations were on children, many of them newborn babies. He conceptualised and coined the term "micro health insurance" and with the Government of Karnataka initiated and implemented this for farmers. He has pioneered several operations in the country and has performed the largest number of

such a profit and loss account that is delivered on a daily basis is a diagnostic tool, which can help one address the cost structure. Whereas a profit and loss account that is presented at the end of the month is nothing but a post mortem report without any significance. We are convinced that the cost of healthcare will not decrease unless there is an understanding between major countries to develop a global university to train doctors, nurses and medical technicians. According to the WHO, there is a shortage of about two million healthcare workers. However, we believe that this figure is much higher. Current university structures across the world cannot produce enough professionals to address this massive shortage. So we need to have a different platform to train medical personnel. This can only happen if you create a global university which will train doctors, nurses

and technicians in Asia, Africa, Latin America and the rest of the world. These trained specialists can work in any of these countries. When you look at the problems of healthcare in Africa, everyone believes that it is because of the poverty. Poverty has no relationship to the quality of healthcare that is delivered. Healthcare is not dependent on any of the natural resources. It is only dependent on the skills of the people and skills can be given to anyone with passion.

pulmonary thromboendarterectomies in this part of the world. Devi has received numerous national and international awards. In 2012, he was awarded Padma Bhushan, the third-highest civilian award conferred by the President of India. The Narayana Hrudayalaya Group of Hospitals, or NH for short, was founded in 2001 by Dr. Devi Shetty with a vision of providing affordable healthcare to the masses world-wide. Started in Kolkata and Bangalore as heart hospitals, NH has grown to include all other basic and super specialities,

We have launched a very large-scale scholarship programme to train children from villages in West Bengal to become doctors. These children, when they are 13 years old, should make a commitment to us that they want to become doctors. We then give them a scholarship of Rs. 500 (USD 10) per month and mentor them with the intention to encourage them to become doctors.

has expanded throughout India and is now growing internationally. By creating "health cities" with large number of beds, utilising economies of scale and scope, and by introducing several other innovations such as micro health insurance, NH has been able to reduce the cost of high-quality healthcare, making it affordable to the common man. www.narayanahospitals.com

FACTS & FIGURES Most effective sustainable leaders 48

2012 57 56

Social entrepreneurs 52

NA 40 49 50

NGO leaders

53 19 23 22 24

Leaders of multilateral organisations 17

Corporate leaders

20 21 5

Government leaders

6 8 13

Source: The 2012 Sustainability Leaders: A GlobeScan / SustainAbility Survey, February 2012.

156

2010 2009

43 40 40

Leaders in the scientific community

2011

Sustainability leadership triangle

The "sustainability leadership triangle" reflects how companies can approach and demonstrate commitment to sustainability values

Commitment to sustainability values*

Transparency/communication**

Sustainable products/services

Integration into core business model

Innovation/R&D

Renewable energy / lowering emissions

Supply chain management

Environmental/waste/water management

Executive leadership has strong SD values

Source: The 2012 Sustainability Leaders: A GlobeScan / SustainAbility Survey, February 2012.

Vision / Strategy

* Sustainability values integrated/embedded / Ambitious goals/targets/policies / Long-term commitment / Actions/ results walk the talk. ** Transparency / Education/engagement/dialogue/ stakeholders / Communication/reporting.

Integration / Performance

Engagement / Communication

EUROCHARITY YEARBOOK 2011/12

Leadership for sustainability Ð An everlasting journey

LEADERSHIP FOR SUSTAINABILITY

AFTERWORD

LEADERSHIP

In the end this "marching republic" managed to reach the shores of the Black Sea at Trabzon (Trebizond). On their first distant sight of the coast, from what is now Mount Theches in the Turkish province of Sürmene, the Greeks raised the joyful shout that has become famous: "Τhalatta! Τhalatta!", "Τhe sea! Τhe sea!" It meant that they were at last among Greek cities.

"Xenophon's Cyrus Ð the earliest book on the subject Ð is still the best book on leadership." Peter F. Drucker, Management guru, influential writer, revolutionary thinker, management consultant and self-described "social ecologist" (1909 - 2005)

Χenophon's classic historical work Kyrou Anabasis (Κύρου Ανάβασις Ð Greek for "upward movement") Ð known in English as The Expedition of Cyrus or The March Up Country Ð can be considered the first systematic account of what leadership means. Xenophon was in charge of the "Ten Thousand", a large army of Greek mercenaries called in by the Persian noble Cyrus the Younger in the hope of seizing the throne of Persia from his brother, Artaxerxes II. Though Cyrus' multiethnic army achieved tactical victory at Cunaxa, near Babylon, in 401 B.C., Cyrus himself was killed in the battle. This left the Greek army without a purpose, and stranded deep in enemy territory. Through the treachery of the Persian regional governor Tissaphernes, the entire high command of the Greek army Ð the Spartan general Clearchus and all the other Greek senior officers Ð were now either killed or captured.

Xenophon of Athens (c. 434 - c. 354 B.C.) Greek historian, soldier, leader of mercenaries, philosopher and contemporary admirer and student of Socrates; the true founder of economic science

158

Abandoned in northern Mesopotamia, the Greek rank and file elected three men, of whom Xenophon was one, to lead them in this emergency. He played an instrumental role in persuading his disoriented soldiers, in their predicament, to march northwards for hundreds of kilometres, across hungry deserts and over snowed-up mountain passes, always in the direction of the Black Sea and the comparative safety of the Greek cities along its shore. Lacking supplies other than those that they could obtain by force or by diplomacy, the Ten Thousand were obliged to fight their way north, following the river Tigris upstream, through Corduene (in present-day SouthEast Turkey) and Armenia, taking decisions as necessary, on the spot, about who was to lead them, what their tactics were to be, where they were to get their food from and what their aim was.

The success of the five-month march, one of the most famous in military history, was a triumph of discipline and improvisation in the face of overwhelming odds. Xenophon not only managed to lead his men out of Persia, but succeeded in keeping the army intact as a fighting force. Xenophon was a prolific writer. His writing is a veritable treasure trove of examples of successful leadership. Leadership according to Xenophon was the art of inspiring the spirit and the act of following, regardless of the external circumstances. In more concrete terms, it was the art of turning the disposition, mood and soul towards some purpose. Leadership requires an understanding of human nature. Xenophon did not offer checklists of recipes. Rather, he sought to establish a standard for what leadership ought to be. Xenophon's leadership principles 1. Leaders inspire creative actions. 2. Leaders show the way to positive results. 3. Leaders set clear expectations for performance. 4. Leaders provide a vision of the future. 5. Leaders inspire their followers. 6. Leaders succeed during adversity. 7. Leaders set the example. 8. Leaders are accessible and available. 9. Leaders show initiative. 10. Leaders lead from the front, not from the rear. 11. Leaders provide timely and fair discipline. 12. Leaders collaborate. With special thanks to Prof. Stavros Theofanides at the Panteion University of Social and Political Sciences and Dr. Richard Witt for their academic input.

SUSTAINABILITY

"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." Our Common Future (also known as the Brundtland Report), World Commission on Environment and Development (WCED), Oxford University Press, 1987

Among the many ways that sustainability has been defined, the simplest and most fundamental is: "the ability to sustain" or, put another way, "the capacity to endure". Today, it is by no means certain that our society has the capacity to endure Ð at least in such a way that the nine billion people expected on Earth by 2050 will all be able to achieve a humane quality of life. The planet's ecosystems are deteriorating and the climate is changing. We are consuming so much, and so quickly, that we are already living far beyond the Earth's capacity to support us. And yet, nearly a sixth of our fellow humans go to bed hungry each day: both an unnecessary tragedy and a source of social and political unrest. Meanwhile, our globalised world is more interconnected and volatile than ever, making us all more vulnerable. While sustainability is about the future of our society, for today's industries and businesses, it is also about commercial success. The mandate to transform businesses to respect environmental limits while fulfilling social wants and needs has become an unparalleled platform for innovation on strategy, design, manufacturing and brand, offering massive opportunities to compete and to adapt to a rapidly evolving world. THE CHANGE WE NEED To endure, we, as a society, must transform our socioeconomic systems Ð both how we produce and consume, and the very ways in which we define and measure value and progress.

This is a big challenge, and not just for business and economics. It is a call for a massive social, political, technological, cultural and behavioural transition. We will need governments to set incentives, targets and rules for a level playing field, civil society actors to hold us to account and to experiment with new ways of delivering social impact, and each of us to take actions in our own lives to reward sustainable business models and to eat, work, travel and play more sustainably. BUSINESS IS CRUCIAL Ð BUT WE NEED NEW WAYS OF DOING IT To achieve this transformation, we need the capacity of business to innovate and to execute, meeting market needs swiftly, effectively and on a global scale. To do this in a way that "meets the needs of the present without compromising the ability of future generations to meet their own needs", we will need new ways of doing business. The successful businesses of tomorrow will be those that lead and create value both inside and outside the walls of the company. This will mean managing for the long term as well as the short term, developing strategies that balance competition and co-operation, designing and delivering products and services that meet social and environmental needs, shifting to more resilient business models based on closed-loop, opensource, peer-to-peer or service-based principles (to name a few), incorporating the true costs of environmental and social resources, and seeing transparency and collaboration as sources of competitive advantage. For these businesses, sustainability means not only ecoefficiency and eco-effectiveness, but also corporate responsibility, social justice, social inclusion, values and more. Sustainability is absolutely about marketing and branding Ð when that means identifying market needs based on longterm prosperity and creating tribes of sustainable consumers. Sustainability needs to be about "greening" Ð because businesses and communities depend on healthy, productive ecosystems. Sustainability can also encompass corporate philanthropy Ð when that philanthropy is strategic.

Above all, for tomorrow's enduring businesses, sustainability will be about creating affluence and abundance by meeting real and fundamental human needs. RIO+20 Ð THE FUTURE WE WANT Rio+20 Ð the short name for the United Nations Conference on Sustainable Development Ð is an historic opportunity to define pathways to a safer, more equitable, cleaner, greener and more prosperous world for all. Two decades after the 1992 Earth Summit in Rio de Janeiro, where countries adopted Agenda 21 Ð a blueprint to rethink economic growth, advance social equity and ensure environmental protection Ð the UN is again bringing together governments, international institutions and major groups to agree on a range of smart measures that can reduce poverty, while promoting decent jobs, clean energy and a more sustainable and fair use of resources. Rio+20 is an opportunity for leaders from all walks of life to break their "business-as-usual" patterns and start thinking and acting "business-as-unusually"; to eradicate poverty; to reverse environmental degradation and to build bridges to a sustainable, more humane and brighter future. www.uncsd2012.org www.rio20.gov.br

Sources: SustainAbility Ltd., a think tank and strategy consultancy working to inspire transformative business leadership on the sustainability agenda, and the United Nations.

EUROCHARITY YEARBOOK 2011/12

About EuroCharity

LEADERSHIP FOR SUSTAINABILITY

ABOUT EUROCHARITY

– Established in 2006 with offices in Athens and in Brussels and a rapidly-expanding family of members, clients, partners and ambassadors.

– Has financed 12 charitable projects carried out by EuroCharity's NGO members to date.

– The reference point for sustainability. – Offers innovative on-line and off-line services to 470+ members and clients from the corporate, financial, public, third and academic sectors. – A unique social entrepreneurship model in Europe, a values-based, independent firm and catalyst for change.

– Participates in, presents at and officially supports local, regional and international conferences, events and exhibitions organised by prestigious companies and organisations, including Economist Conferences, Ethical Corporation, FT Business, Social Capital Media - SOCAP/ Europe, Transparency International, TBLI Conference B.V., EBD Group AG, Gens Terra Quaestus Ltd., Institute of Directors (IOD) India and Enterprise Asia.

– Facilitates synergies among members, between the corporate and third sectors as well as key stakeholders.

– Co-organises numerous conferences and events, including the Sustainability Forum, a training, networking and professional development event.

– Effectively communicates CSR and sustainability news, reports, events and information on behalf of members and clients, with a geographic focus on Europe and with a global audience.

– Conducts research on sustainability, CSR, green economy and the third sector for members and clients, and recently launched the EuroCharity in Academia research programme.

– UN Global Compact signatory and founding member of the Global Compact Network Hellas since 2008.

– Appointed Sofia Bekatorou, double Olympic sailing medallist, sports psychologist who has served as a member of the Special Olympics World Summer Games ATHENS 2011 Organising Committee, as EuroCharity's "Best Practices Ambassador" and member of the company's Annual NGO Project Funding Committee member.

– Member and partner of CSRwire, LLC, U.S.A., The Corporate Social Responsibility Newswire. – Collaborates with numerous other leading organisations, including Ethical Performance, U.K.

– Operates as a 100% carbon neutral firm. – Data Partner for the Global Reporting Initiative and GRI Organisational Stakeholder (OS). – Annually funds hard-needed not-for-profit projects making an impact (focusing on children, social care, the elderly, refugees, the protection of endangered species, the natural environment and biodiversity). 160

– Has published five EuroCharity Yearbooks to date. – Twitter (@EuroCharityEU), Facebook (EuroCharity EU), LinkedIn (EuroCharity) and YouTube (EuroCharityGrEu).

www.eurocharity.eu

EUROCHARITY YEARBOOK 2011/12

About EuroCharity Yearbooks – – – – –

5 multi-stakeholder publications with 150+ contributors from 20+ countries and 10,000+ receivers in 50+ countries

www.eurocharity.eu/en/yearbook

LEADERSHIP FOR SUSTAINABILITY

ABOUT EUROCHARITY YEARBOOKS

The Spirit of the Forest EuroCharity Yearbook 2007

The idea of launching the first EuroCharity Yearbook emerged when Greece faced an environmental and social crisis of unprecedented dimensions Ð devastating forest fires. The inaugural EuroCharity Yearbook 2007 - The Spirit of the Forest - The response of the corporate world to the catastrophic fires of 2007 was published in June 2008. (ISBN 978-960-14-1799-8)

Green Development & Sustainability EuroCharity Yearbook 2008

A year later, the EuroCharity Yearbook 2008 - Green Development & Sustainability was released. It focuses on the impact of sustainability on competitiveness, entrepreneurship and innovation, while showcasing green products and services developed by companies as well as policies and incentives that foster investments and initiatives in the green economy. (ISBN 978-960-14-1995-4)

It's a Matter of Culture EuroCharity Yearbook 2009

The third EuroCharity Yearbook 2009 - It's a Matter of Culture was launched in June 2010 and highlights the importance and different aspects of corporate culture as well as the need for companies to integrate values that include corporate responsibility principles into their business strategy and management practice. (ISBN 978-960-14-2237-4)

The Future of Responsible Investing EuroCharity Yearbook 2010

The EuroCharity Yearbook 2010 - The Future of Responsible Investing, which came out in June 2011, informs key stakeholders on the latest trends, research, indices, best practices, case studies, intelligence and viewpoints related to this important theme. This international publication was presented in three European capital cities. (ISBN 978-960-99967-0-9)

Leadership for Sustainability EuroCharity Yearbook 2011/12

The EuroCharity Yearbook 2011/12 - Leadership for Sustainability addresses the need to adopt sustainability in leadership training and development, showcases corporate sustainability leadership best practices and presents authoritative opinions and insightful research findings on the progress and challenges in leadership for sustainability. (ISBN 978-960-99967-1-6)

EUROCHARITY YEARBOOK 2011/12

Abbreviations and acronyms

162

LEADERSHIP FOR SUSTAINABILITY

ABBREVIATIONS AND ACRONYMS

AccountAbility

CRA

Credit Rating Agency

ABIS

The Academy of Business in Society

CREX

Corporate Renewable Energy Index

ACEO

Association of Chief Executive Officers

CRI

Corporate Responsibility Index

A.D.

Anno Domini

CSL

Center for Sustainability Leadership

Aktiengesellschaft

DAC

Direction, alignment, commitment

AGM

Annual General Meeting

Directorate-General

AIG

American International Group

DNA

Deoxyribonucleic Acid

A.S.B.I.

Awareness and Social Behavior Index

Dr.

Doctor

ASEPAM

AsociaciÞn Espanola del Pacto Mundial de Naciones Unidas

EADS

European Aeronautic Defence and Space

ATM

Automated (automatic) teller machine

EBIT

Earnings before interest and taxes

BBVA

Banco Bilbao Vizcaya Argentaria

EBITDA

Earnings before interest, taxes, depreciation and amortisation

B.C.

Before Christ

ECAI

External Credit Assessment Institution

BITC

Business in the Community

ECO

The Environmental Children's Organisation

BLF

Business Leaders Forum

EFMD

European Foundation for Management Development

BMW

Bayerische Motoren Werke

e.g.

exempli gratia

British Petroleum

EMAS

Eco-Management and Audit Scheme

BRIC(S)

Brazil, Russia, India, China (and South Africa)

EMDI

Environmental Μanagement and Disclosure Index

B.Sc. / B.S.

Bachelor of Science

EMEA

Europe, the Middle East and Africa

CAB

Current account balance

ENPC

ƒcole nationale des ponts et chauss es

CBS

Copenhagen Business School

EPC

Engineering, Procurement and Construction

CC&S

Climate Change & Sustainability Services

EPEA

Environmental Protection Encouragement Agency

CDP

Carbon Disclosure Project

ERP

Enterprise resource planning

CEO

Chief Executive Officer

ESADE

Escuela Superior de Administración y Dirección de Empresas

CERSE

Consejo Estatal de Responsabilidad Social de las Empresas

ESCO

Energy service company

cf.

Confer

ESMA

European Securities and Markets Authority

CIA

Central Intelligence Agency

ESRC

Economic Social Research Council

Co.

Company

ESS

Executive Search and Selection

Conference of the Parties

European Union

COFIDES

Compan a Espanola de FinanciaciÞn del Desarrollo

EUCOPE

European Confederation of Pharmaceutical Entrepreneurs

COP

Communication on Progress

EUR

Euro (symbol: œ; ISO code: EUR)

CoR

Committee of the Regions

FSC

Forest Stewardship Council

C(S)R

Corporate (social) responsibility

FSSD

Framework for Strategic Sustainable Development

GBP

Pound sterling (symbol: ’; ISO code: GBP)

MBA

Master of Business Administration

Sustainable development

GCI

Green Cross International / Global Competitiveness Index

MBDC

McDonough Braungart Design Chemistry, LLC

SEEF

South Eastern Europe Fund

GCR

Global Competitiveness Report

M.D.

Doctor of Medicine

SIP

Sharing Information on Progress

GDP

Gross Domestic Product

MIG

Marfin Investment Group

SLP

Sustainable Leadership Pyramid

GHG

Greenhouse gas

MIT

Massachusetts Institute of Technology

SLQ

Sustainable Leadership Questionnaire

GmbH

Gesellschaft mit beschrŠnkter Haftung

M.Phil.

Master of Philosophy

SME(s)

Small and medium-sized enterprise(s)

GRLI

Globally Responsible Leadership Initiative

Mt.

Mount

SMS

Short Message Service

GTS

Global Transaction Services

Megawatt

SPF

Sustainable Projects Fund

HAA

Hellenic Advertisers Association

NALED

National Alliance for Local Economic Development

St.

Saint

Human resources (noun) or human resource (adjective)

NBG

National Bank of Greece

Transparency International

HUI

Hamburger Umweltinstitut e.V.

NCSD

National Council for Sustainable Development

TNT

Thomas Nationwide Transport

IAB

International Accounting Bulletin

NGOs

Non-governmental organisation(s)

U.K.

United Kingdom

IABC

International Association of Business Communicators

Narayana Hrudayalaya

United Nations

IBLF

International Business Leaders Forum

N.J.

New Jersey

UNCED

United Nations Conference on Environment and Development

IBM

International Business Machines

OECD

Organisation for Economic Co-operation and Development

UNCSD

United Nations Conference on Sustainable Development

ICT

Information and communication(s) technology (or technologies)

Organisational Stakeholder

UNCTAD

United Nations Conference on Trade and Development

IESE

Instituto de Estudios Superiores de La Empresa

OTE

Hellenic Telecommunications Organization S.A.

UNDP

United Nations Development Programme

IMD

Institute for Management Development

PACI

Partnering Against Corruption Initiative

UNECE

United Nations Economic Commission for Europe

Inc.

Incorporated

Ph.D.

Doctor of Philosophy

UNEP

United Nations Environment Programme

INSEAD

Institut Europ en d'Administration des Affaires

PRME

Principles for Responsible Management Education

UNEP FI

United Nations Environment Programme Finance Initiative

IOD

Institute of Directors

Prof.

Professor

UNFCCC

United Nations Framework Convention on Climate Change

ISL

Institute for Sustainable Leadership

Photovoltaics (noun) or photovoltaic (adjective)

UNICEF

United Nations Children's Fund

ISO

International Organization for Standardization

PwC

PricewaterhouseCoopers

U.S.A.

United States of America

Information Technology

R&D

Research and Development

USD

United States dollar (symbol: $; ISO code: USD)

JEREMIE

Joint European Resources for Micro to Medium Enterprises

RES

Renewable energy sources

U.S.S.R.

Union of Soviet Socialist Republics

JESSICA

Joint European Support for Sustainable Investment in City Areas

RIMAS

Research Institute for Managing Sustainability

WBCSD

World Business Council for Sustainable Development

JTI

Japan Tobacco International

ROC

Republic of China

WCAR

Wharton Center for Applied Research

KWh

Kilowatt hour

Rs.

Indian rupee (symbol: ; ISO code: INR)

WCED

World Commission on Environment and Development

LBS

London Business School

RSM

Rotterdam School of Management

WEF

World Economic Forum

LLC

Limited Liability Company

S&P

Standard & Poor's

WHO

World Health Organisation

LSE

London School of Economics and Political Science

S.A.

Social Accountability / Soci t Anonyme

WTO

World Trade Organisation

Ltd.

Limited

SAM

Sustainable Asset Management

WWF

World Wide Fund for Nature / World Wildlife Fund

EUROCHARITY YEARBOOK 2011/12

List of tables, graphs, facts and stats

LEADERSHIP FOR SUSTAINABILITY

LIST OF TABLES, GRAPHS, FACTS AND STATS

TITLE

SOURCE(S)

Leadership Blueprint

UN Global Compact

The mission of GRLI

GRLI

Megatrends that will affect leaders over the coming decades

Hay Group

The "Tool Box" for Sustainability Integration

UNECE and UNDP

FORTUNE "100 Best" vs. stock market

Great Place to WorkÂ¨ Institute

Global competitiveness of national economies

World Economic Forum

Current account balance (CAB) of eight developed countries CIA World Factbook

PAGE

The Sustainable Leadership Pyramid

Dr. Harald Bergsteiner

A business contribution to sustainable globalisation

ABIS - The Academy of Business in Society

Strategies for Leadership Practices

Aon Hewitt

Leadership Competencies

Aon Hewitt

Sustainable leadership model: Four competencies

Centre for Sustainable Leadership

Social - Environmental - Economic

Euromed Management

Leadership practices that contribute to deep change towards sustainability

LSE

Four approaches of responsible competitiveness

RIMAS

A blueprint for effective leadership

Ketchum

Most important attributes for a company to be described as a leader

Ketchum

Global sustainability megaforces - Addressing the risks while realising the opportunities

KPMG

114

Imperatives for concerted action on sustainability

KPMG

115

Top-level sustainability competency model

Don Bray

116

Sustainable leadership relational model

Sustainability Leadership Institute

117

Corporate Responsibility

WIND Hellas Telecommunications S.A.

135

Top overseas markets for CEOs

PricewaterhouseCoopers LLP

136

A five-level model for planning in complex systems

The Natural Step

151

Most effective sustainable leaders

GlobeScan / SustainAbility

156

Sustainability leadership triangle

GlobeScan / SustainAbility

157