Creating a Culture of CSR

It has been six years since the decision to formalise CSR in Computershare and there remains a mixed opinion amongst the interviewees as to how successful the approach has been during this time. LN, who is responsible for the overseeing of CSR activity at group level claimed to be happy with the general level of progress but is currently planning to re-evaluate the groups approach. Both JD and GB were in agreement that in general terms the company’s approach to CSR was adequate however JD expressed his concern over a lack of detail in some CSR communications whilst GB highlighted employee engagement with CSR programmes as an area he would like to see developed further.

LN admitted that in the context of a global group culture CSR is far stronger in areas such as the UK, Australia and America as opposed to areas Russia and Hong Kong where CSR is almost non- existent in their regional operations. LN explained that in areas such as Russia and Hong Kong there has historically been little cultural expectation for CSR in their business and so has found internal stakeholders to be unreceptive to its development. LN further explained that she anticipates a change in attitude over the long term in these areas as Computershare hope to develop a group-wide minimum standard for CSR.

GB claimed that through his role as a member of the Global CSR Committee he encounters a variety of attitudes towards CSR and states these are not necessarily associated with different regions. He gave the example of UK employees as being particularly diverse in that whilst the majority were in favour of CSR in theory there was a widespread ‘reticence to becoming engaged

in CSR activity’. GB attributes much of this to employees not associating the investment industry with the need for any type of CSR and stated that ‘it is often even a struggle to get employees to use the correct recycling bins’. JD is adamant that CSR should be seen as integral to the long term sustainability of the business and while the company is currently impressive by industry standards there ‘is more to do’.

CSR at Computershare is led from the top and there is currently little expectation from both internal and external stakeholders for a comprehensive CSR effort on the company’s behalf. However this may not remain the case as LN claimed that they are starting to receive occasional requests for a demonstration of commitment to CSR from potential clients. It is for this reason that Computershare intend on building on their current CSR successes and develop a robust CSR structure that both engages stakeholders and addresses their concerns.

8.8.1 Findings of the Survey of Operational Employees in Relation to their Familiarity with CSR

The findings of section one of the Survey of Operational Employees indicate that Computershare will need to increase their efforts in familiarising their operational staff with their CSR efforts as 44% of respondents claim to have no familiarity with CSR activity and just 4% claiming to be very familiar. Familiarity with CSR (%) 0 10 20 30 40 50 60 70 80 90 100 Unfamiliar Slightly familiar Somewhat familiar Moderately familiar Extremely familiar

Figure 8.1 Operational Employees in relation to their familiarity with CSR

It is apparent from the interviews that Computershare embedding CSR into the culture of the company is proving difficult and from the surveys that this remains the case. The central reason for this is the perception of CSR being almost irrelevant to the company’s operations. LN claims that future CSR activities will be more closely aligned with the business of Computershare in the

hope of raising awareness amongst employees as to the benefits of CSR to the company. She claims that a combination of recent product developments such as the Carbon Neutral AGM and the rebranding of the company’s approach to CSR as ‘addressing the demands and concerns of our various stakeholders’ (Computershare, 2012a) will do much to achieve this.

8.9 Creating Value through CSR

‘Computershare is committed to conducting business in ways that produce social, environmental and economic benefits for communities around the world’.

- Computershare Annual Report (2012, p.15)

Computershare integrate CSR with value creation to varying degrees of success. Analysis of their corporate literature, most notably in the area of products and services reveals a clear focus on minimising the environmental impact of their offerings. It is stated on p.17 of the 2012 Annual Report that the company offers ‘sustainable communication solutions, delivered across a wide range of our businesses, help clients identify and implement lower cost and more environmentally friendly communication strategies for their key stakeholder groups such as security holders, customers, employees and members’. LN explained that investor services has traditionally been a paper based business and it was through technologies that have been developed and supported by Computershare that the company has been able to significantly lower its environmental impact whilst also reducing running costs. The integration of environmental concerns into the development of their products represents a significant opportunity for Computershare to create value through CSR and represents the company’s most successful foray into value creation through CSR to date.

The increase in stakeholder focus has also helped the company create value through CSR in other areas, LN explained that the array of community initiatives and the provision of opportunity for employee involvement in these benefits the company through promoting teamwork and increasing morale. LN also cites community engagement by the company as creating reputational value. Reputational value is an area which all three interviewees cited as being a primary benefactor of the employment of CSR. GB claimed that while it is important that the company engage in CSR there are limits to the internal value it can create as they face ‘a continuous battle with engaging staff’. JD referred to the long term value that CSR will create in that it will contribute to the sustainability of the business and noted that this is reflected in the environmental considerations in the design of new products and services.

8.10 CSR Leadership and Management

Computershare employs a two tier governance structure to direct their CSR approach. This structure consists of two committees, the Executive CSR Committee and the Global CSR Committee. The Executive CSR Committee is a director level committee which focuses on high level CSR strategy and meets on a monthly basis. The Committee is headed by Penny Maclagan, a non-executive member of the main board and also the ‘Senior CSR Champion’ (LN) of Computershare’s CSR programmes. The Global CSR Committee consists of regional representatives that range from operational to director level, this committee meets on a quarterly basis to discuss regional initiatives and highlight successes and concerns. LN in her capacity of overseeing CSR strategy and activity sits on both committees.

LN confirmed that the current governance structure appears to be working well and the regularity of the meetings ensure that CSR remains firmly on the company’s agenda. GB stated that the current structure demonstrates high level commitment to CSR, a commitment that JD cites as being necessary to further developing current approaches. LN stated that it was the general agreement amongst the board that the company were ‘doing a robust job’ in their CSR efforts.

8.10.1 Findings of the Survey of Operational Employees in Relation to CSR Leadership

The findings of section two of the Survey of Operational Employees indicate a general appreciation that the responsibility for CSR lies with everybody with 66% of respondents believing this to be the case. Whereas this does contravene earlier assertions from GB and LN in relation employee engagement and creating a CSR culture it does demonstrate that employees understand that they have a role to play in future CSR efforts.

Responsibility for CSR (%) 0 10 20 30 40 50 60 70 80 90 100 Board Senior Management

Team Leaders Everybody

8.11 The Influence of Section 172 CA 2006

As Computershare is headquartered in Melbourne, Australia the parent company is not subject to S.172. However, Computershare does have a large operation in the UK, all of which comes under Computershare Investor Services plc which is a UK registered company and so subject to the Companies Act requirements on Directors Duties. JD stated that ‘directors were fastidious in their compliance with statutory requirements on Directors Duties and this compliance is implicit throughout the minutes of Computershare companies’. JD did admit that the neither he nor the directors had yet considered the implications of section 172 in relation to CSR however he stated that given the company’s ongoing investment in CSR ‘the company would be unlikely to fall foul of S.172’. LN also admitted that S.172 had not been considered on her part in the development of CSR strategy although she did state that as her involvement was from a group level and not solely UK related she would be ‘more likely to be bound by equivalent laws in Australia’.

8.12 Motivation for CSR

Computershare’s CSR strategies have been until recently developed almost entirely as a result of board direction. LN specified two particular members of the board as being primarily responsible for ensuring CSR is part of group strategy. These are the CEO, Stuart Crosby who champions both community engagement and diversity in the workplace and Penny Maclagan who champions the environment. Each of the respondents believe CSR to be necessary to protecting the company’s reputation

LN explained that aside from recent requests from potential client for information on group CSR policy there has been very little in the way of stakeholder demand for CSR and it has been driven by senior level people from within the group who believe that a company with a global presence such as Computershare should be seen as a ‘responsible corporate citizen’. LN confirmed that managing the reputation of the company was of primary importance to her (being the Director of Communications) and that an effective CSR policy is critical to her success in this respect.

When posed with the question whether Computershare agreed with the assertion that motivation for CSR could include factors such as attracting and retaining staff, increased public relations opportunities and the possibility of cost savings through green initiatives, the interviewees were in general agreement that this was the case. However, LN stated that she did not believe that CSR played any role in the attraction and retention of staff and claimed that in her participation in over 500 interviews for the company she had yet to be asked about the company’s CSR policy.

8.12.1 Findings of the Survey of Operational Employees in Relation to the Motivation for CSR

Analysis of section three of the Survey of Operational Employees shows Community Relations and Customer Loyalty as being perceived equally as the primary motivators of CSR in Computershare. Further analysis reveals a relatively even spread of opinion across the categories in terms of agreement with Employee Motivation receiving the lowest level of agreement.

Motivational Factors (%) 0 10 20 30 40 50 60 70 80 90 100 Economic Community relations Environmental impact Customer loyalty Employee motivation 3rd party relations Reputation Ethical concerns Strongly disagree Disagree Neutral Agree Strongly agree

Figure 8.3 Operational Employees in Relation to the Motivation for CSR