Foreword

Business performance

Corporate governance & compliance

Improving customer experience

Providing customers with a responsible solution

Engaging employees

Influencing sustainability outcomes

Minimising our environmental impact

Appendices

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Embedding sustainability

Corporate Social Responsibility (CSR) working group

In 09/10 we have begun to work more closely at a regional level with our parent company and the APO, which supports the nine operating companies across the Asia Pacific. A Corporate Social Responsibility (CSR) working group has been established with a view to ensuring our customers sustainability drivers are fully understood and responded to.

At the same time the CSR Committee, led by the President of Fuji Xerox, has been re-established. One of the first priorities of the CSR working group is to provide appropriate development for Fuji Xerox senior managers so that they can begin to address sustainability issues in their own planning and review cycles.

Because we scope sustainability broadly, the board member with ultimate responsibility for our sustainability performance is our managing director. There is clear leadership recognition that we are accountable to stakeholders for not only business results but also our social and environmental performance.

Furthermore, our senior leadership team recognises that the company's financial success is dependent upon engaged staff, loyal customers and how well we respond to their concerns across the social, environmental and economic aspects of sustainability.

Inclusivity
We are still developing the formal mechanisms that will ensure we have heard all relevant views across all our areas of accountability. Internal perspectives lead the organisation's identification of sustainability issues. We still have work to do if we are to identify and address our sustainability issues in collaboration with all relevant stakeholders. This is illustrated in our stakeholder engagement framework, which has identified some gaps, although we do have well-developed staff and customer engagement tools.

Materiality
We also have strengthened our materiality process that allows different stakeholder perspectives to affect the prioritisation of those sustainability issues. But without strong engagement mechanisms to capture and make visible external stakeholder perspectives we will continue to be internally led in our identification of sustainability issues. In 10/11 we will work with divisions so that the stakeholder engagement framework can create value for their initiatives. In particular we will focus on building new stakeholder engagement mechanisms with our suppliers.

There is also an opportunity to bring stakeholder perspectives and prioritised issues more formally into our risk management, business planning and review processes. A customer, community, parent and employee stakeholder panel was convened during our first management community meeting in 09/10.

The response from those gathered to the different viewpoints was overwhelmingly open and positive. We plan to formalise opportunities for such feedback to influence our direction moving forward. In the past these efforts have been frustrated by weaknesses in our risk management and busines planning processes.

Work is already underway to improve the business planning process. In 09/10 resources were assigned to work with each general manager on the development of consistent divisional strategies, aligned to strategic corporate objectives. This has simplified and made more visible the strategic initiatives of every division, encouraging greater cross-divisional communication and collaboration.

This work will continue in 10/11 with divisions beginning to adopt a consistent set of strategic planning and reporting tools. We will use the 10/11 planning cycle to identify sustainability priorities and resource programs across divisions with assigned accountabilities. In 10/11 we will also identify an appropriate risk management framework and work to align the corporate risk and materiality registers.

Responsiveness
As regards embedding sustainability reporting, divisional reviews mainly address core business key performance indicators (KPIs). At a state and site level, a general manager who also acts as 'godparent' for that state, chairs monthly meetings that provide a forum for reviewing customer, environmental and safety KPIs.

In addition to embedding sustainability in management and reporting approaches, it is important that we engage staff at all levels of our business on our sustainability journey. Our people understand our commitment to sustainability and the sustainability team works very effectively across divisions to ensure their sustainability issues are responded to. However we still have work to do in making all divisions accountable for managing the issues that are most relevant to them.

Embedding sustainability

Embedding sustainability involves bringing material stakeholder concerns across our environmental, social and economic performance into the strategic planning and review processes.

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