Turning theory into practice

As the second largest energy company in Europe and the third largest globally, the Royal Dutch/Shell Group has had plenty of practice in this regard! And for us, CSR is so bound up with sustainable development, the two are now synonymous.

Sustainable development in action

Our approach, then, is to try to look at every business decision through a sustainable development (or SD) lens; and that means:

a) understanding the social, economic and environmental impacts, and managing them as part of normal operations;

b) balancing short-term priorities with longer-term needs; and

c) seeking out the views of others before taking decisions.

Ultimately, of course, one is looking for a cultural change, where it becomes second nature for people to look at business in this way. In the meantime, a consistent, structured approach is required. And that means hardwiring SD principles into everything from policies and standards, to systems and processes; strategy and portfolio evolution, to reporting and assurance.

Winning hearts and minds

But it is one thing to lay down the rules, another to make people follow them. You must also touch the hearts and minds of people, so that they see that it is not only the right way to do business, but the most beneficial for all concerned.

There will, of course, always be people who happily embrace the SD concept, because it resonates strongly with their own personal values. Not everyone, however, is so easily convinced. And resistance should not be underestimated. With pressure already on time, costs and human resources, there will be little appetite for new initiatives that do not have clear links to value creation.

That's why it's essential to translate sustainable development into something that is tangible and relevant to people's daily lives; for which a structured approach is also required. In 2003, Shell therefore set up SD Learning with a specific objective: to achieve a step change in the awareness, understanding and capacity of Shell people to apply SD thinking in their everyday decisions.

A broad programme of tailored learning

But while our aims were ambitious, our approach was subtle. Our strategy was to operate beneath the radar so as not to give the impression of introducing a new and costly initiative. The result was a broad programme of tailored learning, encompassing everything from newsletters and presentations, to workshops and e-learning.

Note the word, 'tailored'. Although all levels of an organisation have a role to play in contributing to sustainable development, it will clearly mean different things to different people. While some will only require a basic awareness and understanding, others will need a working knowledge in order to make the link with their particular area of expertise.

For example, Shell's experience in supporting initiatives to protect the marine environment of Iran against the threat of oil spills showed us that we make a more effective contribution to local capacity when we engage in projects that correspond with our particular line of work.

Finally, there will always be some who are called upon to become SD experts and trainers themselves. Senior management will also play a key role in encouraging good practice. Indeed, there needs to be visible leadership in creating a culture of change and innovation, diversity and inclusiveness. Not only does this motivate staff, it also reassures stakeholders that your words are not empty and that when it comes to sustainable development, you mean business.

The power of partnership

And it highlights another crucial point: that sustainable development is not an issue to be viewed by companies in isolation - the best ideas come from partnership. As well as looking inwards at our own behaviour, we also need to look outwards to learn and share our knowledge and expertise.

Big business has the power to effect much greater changes, as demonstrated in Enterprise Solutions to Poverty, a new report published by the Shell Foundation.

Using a series of case studies in Africa and India, it explains how multinationals operating in developing countries can apply non-financial assets - such as their convening power, networks and inherent business savvy - to the problems of poverty. It argues that the core competencies of multinationals are untapped resources in the fight against poverty and therefore calls for public-private partnerships to be recast along business lines.

There is certainly much food for thought here. But every journey starts with one step and the first step is to put your own house in order. This is no simple task and embedding sustainable development in your organisation will always be an experiment in trial and error. It will probably take another generation before it becomes an accepted and intrinsic part of the business culture.

Nevertheless, we have come a long way and events such as this offer a great deal of hope for the future and for our businesses, our stakeholders and the societies we serve.

Excerpt from an adress by Mike Grieve, Regional Support Director, Shell Exploration and Production, Middle East, Russia & CIS at the 2nd Middle East Corporate Social Responsibility Summit