1st Citizenship Award

EDP and Banco Alimentar de Lisboa were the big winners in the 1st Citizenship Award for Companies and Organisations, organised by AESE and PricewaterhouseCoopers, in partnership with the magazine Exame.

 

”Thinking about citizenship” is, for José Ramalho Fontes, Dean of AESE, to place the emphasis on people. A manager who is concerned with sustainability is a "good citizen”. Companies reflect the good choices of their leaders. Therefore, this is an innovative initiative, as it recognises the best practice of all of the partners concerned.


The selection of the winning institutions took place through verification of the practices described in the reports submitted by the participating entities. António Correia, Senior Manager of PwC, believes that the Citizenship Award lends credibility to and sustains the role of the companies, the NGOs and their respective leaders.


For this award, corporate and organisational citizenship is understood as the exercise of a broad range of rights and duties that aim to enable full development for the various stakeholders by achieving an equal social and economic dignity while respecting the environment.


The ultimate goal of this initiative is to recognise companies at the economic level (Governance), the environmental level (policies implemented, management of impacts, accounting and performance) and the social level (measures applied, management of internal aspects and the relationship with the community and results).


In order to evaluate and select the 20 NGOs and 55 companies competing, three specialists worked together in each of these areas: Jorge Moreira da Silva, Luís Costa Leal and Carlos Borrego for the Environment; José Maia, Vítor Soromenho Marques and Manuela Eanes for Society; and António Sousa, Manuela Ferreira Leite and Isabel Canha for the Economy. The jury was chaired by Jorge Jardim Gonçalves.


After Rui Loureiro, Partner of PwC, explained the evaluation process, Edoard Gai, Equity Analyst for SAM – Sustainable Asset Management, discussed the sustainability indices that are valued. For Edoard Gai, sustainability is a model for management that includes environmental, social and economic components, carrying an added value for the company or organisation. “The leaders in sustainability minimise their risks and recognise opportunities”, avoiding imbalances with very high costs.


Sanjit Bunker Roy, Founder and Director of Barefoot College and President of the Global Rain Water Harvesting Collective presented some examples of sustainability from his experience in India. The “learning by doing” training of illiterate people has led to the proliferation of technologies for the recovery of resources such as water and solar energy, among others.

 


And the winners are...

 

EDP was the big winner of the Citizenship Award for Companies, selected by the jury as the most successful organisation in the application of its policies for social responsibility at the economic, social and environmental levels. António Mexia, President of the Executive Board, received a second distinction in the category of Environmental Citizenship, for Best Practice and performance in reducing energy consumption.


In the economic category, the Award was presented to Zeinal Bava, Vice President of PT. In the social category, Filipe Pinhal accepted the Award on behalf of Millenniumbcp.


Banco Alimentar contra a Fome de Lisboa was the NGO recognised by the jury as an example of the application of existing resources. Banco Alimentar de Lisboa distributes 30 tonnes of food to approximately 56,000 people in the Lisbon metropolitan area every day.


In addition to the top Awards, other awards were given to Portugal Telecom, for its policies and performance in the area of Economic Citizenship, and to Millenniumbcp for its strategy for intervention in the domains of Social Citizenship and Cultural Patronage.

The Jury awarded Honourable Mention to Santa Casa da Misericórdia de Campo Maior, Associação Sócio-cultural dos Deficientes de Trás-os-Montes, Associação Criança e Vida and Fundação CEBI for the performance of these non-governmental organisations. 

 

 

Some data on the study

 

The analysis of the companies participating in the 1st Citizenship Award for Companies and Organisations allows some conclusions to be drawn on the state of the nation in terms of the social responsibility of companies. The 55 competing companies are mostly large in size, located in the areas of Greater Lisbon and Porto, with 70% employing more than 500 people and 90% occupying the private sector. The sectors of activity of these companies are diverse: telecommunications, transport, energy, waste management, manufacture of machinery and equipment, construction, beverages, banking and insurance, trade and services. 

 

 

The Social Dimension: social practices, policies and performance (internal and external)

 

Internal Vision


. In the majority of participating companies, the management positions are mainly held by men. This indicator varies a great deal among the different areas of business, with the percentage of women in some companies hovering around 70%.

 

. The average age of the employees of the competing companies is 37.

 

Relationship with the community


. Patronage Practices: 80% of the companies engage in patronage, although the average percentage (2002, 2003 and 2004) of turnover invested in patronage is less than 1%. 

 

Relationship with stakeholders: Most of the companies (95%) are aware of the social impact of their products; provide all information about the product to the consumer (85%); make donations to social and community programmes (95%) and support projects in the community that aim to improve the supply of qualified professionals belonging to groups that are commonly discriminated against in the job market (65%).

 

 

Social practices and policies

 

. Social Policies: 85% have a policy based on a code of ethics that is generally accessible to all concerned parties and communicated to all of the employees.


. Certification: 45% have certification in the social sector and in health and safety. Of these, 40% are certified in accordance with the SA 8000 standard and 60% with the OHSAS 18001 standard.

 

. HR Policies: Only 5% of the companies do not have an established policy, and 10% only comply with the provisions of law, paying in accordance with the defined pay scales. Generally speaking, the companies value their employees, having policies for performance evaluation, individual training plans, compensation and other benefits.

 

. Human Rights: Most of the companies consider the human rights impacts of their investments and purchasing decisions, including the selection of suppliers or contractors, in accordance with their Code of Ethics and Purchasing Model (80%).

 

. Of the participating companies, 35% state that they have a policy for the hiring of people with disabilities. However, only 20% of the companies have agreements with other entities such as the Institute of Employment and Vocational Training, Voluntary Organisations, etc.

 

. All of the companies have a system for performance evaluation; 80% have an incentive plan and periodically monitor and assess employee turnover and have a policy for minimising and improving this indicator; 75% offer health insurance to employees; 70% offer assistance for the education of children; 65% have a career plan for each worker; 60% have procedures for attracting and retaining talent; and 55% have a policy for the distribution of results.

 


The Environmental Dimension: environmental practices, policies and performance


Green responsibility

 

. 70% of the companies have identified all of the applicable legal requirements pertaining to the environment, meet all of the criteria provided by law with regard to the monitoring of environmental parameters and are in full compliance with all legal requirements. Most of the companies included in that 70% have objectives that are more restrictive than those defined by law, thus taking a proactive role in the management of their impacts on the environment.

 

. 80% have specific environmental programmes and have established an emergency procedure or plan for responding to potential environmental accidents or emergency situations. 90% of the companies have outlined programmes for the reduction of environmental impacts for water and waste, 80% for energy, 70% for effluents and 55% for atmospheric emissions. Overall, only 50% of the companies have established programmes for all of these environmental aspects.

 

. Acquisition of new services/products: 85% of the companies assess environmental requirements in accordance with their own code of ethics for procurement, supplier inquiries, etc., and 75% have specific procedures for minimising the environmental impacts of the services of suppliers, such as, for example, performing audits to verify compliance with legal and environmental requirements.

 

. Environmental accounting is still in the process of being implemented in Portugal. 20% of the companies do not acknowledge accounting guideline 29. Very few companies have already implemented or are in the process of implementing this guideline.

 

 

Environmental practices and policies

 

. Management practices and policies: 20% of the companies have not established a policy, and 45% of the companies have a policy for an environmental management system, documented and signed by the top management, which is accessible to all interested parties and which was communicated to all employees and gave rise to specific environmental programmes, to contribute to continuous improvement. It should be noted that, of the companies that have implemented an Environmental Management System (65%), only 69% are certified, which corresponds to 45% of all of the participating companies. In 90% of the companies, the top management named a representative from the company leadership responsible for environmental management.

 

. Of the competing companies, 65% invest in research and development.

 

Performance in the environmental sector

 

. Consumption of Resources (2002 to 2004): the average percentage of reduction in the consumption of energy improved (1.51% - 3.97% - 5.66%); the average total consumption of water increased (646,805 m3 – 1,102,775 m3 – 1,126,126 m3); and the percentage of waste generated by attributed entities increased (57% - 59% - 74%), with 50% of the companies in 2004 having all of their waste generated by attributed entities.


. Separation of Waste: All of the companies have practices for the separation of some waste: 100% separate paper and plastic; 95% batteries and light bulbs; 85% metals and 55% tyres. Overall, 80% of the companies have practices for the separation of all of these types of waste.

 

 

The Economic Dimension: Corporate Governance

 

The Chair of the Board of Directors is independent and/or non-executive (30%).

 

. Policy/Strategy for Sustainability: 25% of the companies provide evidence of a formal sustainability policy. These companies have, integrated into their strategy, guidelines for sustainable development in the three sectors—environmental, social and economic transparent for all stakeholders. 40% of the companies have produced a sustainability report, but only 25% of these have been verified by an external entity.

 

. 30% of the companies have developed a sustainability report in accordance with the guidelines of GRI – Global Reporting Initiative, and 10% implemented SA8000 – Social Accountability International.

 

. In 95% of the companies, there is a dialogue with the stakeholders, through meetings, market and public opinion studies, dissemination of results, workshops, Internet sites, e-mails, etc.

 

. Code of ethics/conduct: 70% of the companies have a code of ethics/conduct that, in most cases, addresses the following issues: crime, corruption and fraud; discrimination; confidentiality of information; security of employees, associates and clients; environment, health and safety and the alert system.

 

. 75% have a department with policies for risk management in the company, and 65% have a department/committee for internal auditing.


. Turnover (2003 and 2004): 4.8% growth of the average obtained, for the companies as a whole, each year.