To turn this problem into an opportunity Risk Reward Ltd and Euro Business Management Ltd have created a partnership to deliver a customized programme of well-coordinated change management. Its key objective is to subsume the piecemeal approach to implementing risk management, corporate governance and CSR initiatives within a longer-term transition towards a more sustainable business growth and at the same time reduce the overall implementation cost.
The consolidation of risk management and corporate governance initiatives would be a rational step in any case. However, a company implementing these projects would do much better if it uses this change as its first step towards a more sustainable development. After all, the current changes in corporate governance and risk management aim implicitly at that direction. If a company has already begun implementing some CSR principles, then the case for consolidation and making a more explicit connection with sustainable growth is even stronger. But there are also other reasons directly linked to business performance.
There is ample evidence showing that truly sustainable CSR companies can increase their performance as well as market value by up to 30% p.a. above the average. About 85% of FTSE companies, including all banks, are now quoted in a new FTSE4good index, specially created in 2001 for companies that meet basic CSR criteria. However, for a majority of these companies, CSR is an additional cost rather than a means to increase profits.
The reason for a rather marginal economic success of CSR companies lies in lack of proper know-how or a half-hearted and inconsistent implementation of CSR criteria. Many companies just try to improve their image, with little change in the way they manage their business.
The proposed consolidation programme will lead to significant cost reduction and will simultaneously create a foundation for a more sustainable growth. Instead of being an additional cost for your company, these initiatives would deliver extra benefits. When combined with Risk Rewardâs far-reaching and comprehensive risk management solutions and EBMâs unique, specially designed and integrated sustainability services, such a change programme would help organizations achieve higher than average long-term sustainable performance with lower than average risk.
Depending upon specific situation, we would customize our approach to fit the actual clientâs requirements.