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REED ELSEVIER STUDY 2012

29/8/12

13:28

Page 2

S T R AT E G Y

Corporate Responsibility and stakeholders

2. LexisNexis® Risk Solutions – provides data and analytics that

Introduction

allow customers to evaluate and manage risks associated with
Reed Elsevier is a leading provider of professional research
information to organisations around the world. It publishes
journals, books and databases and manages exhibitions and

transactions and to improve performance
3. LexisNexis® Legal & Professional – provides legal, tax,
regulatory news and business information and analysis to legal,

events. Its well-known titles - such as New Scientist and The

corporate, government, accounting and academic markets

Lancet - appear both in print and online. Reed Elsevier has a

4. Reed Exhibitions – organising events, exhibitions, conferences

worldwide customer base working in many fields, including
science, research and the law, as well as in public and academic
libraries and commercial organisations. This includes over

for over 44 industry sectors
5. Reed Business Information – producing trade journals, blogs
and web directories to deliver information to users worldwide.

11 million scientists who access information directly from
Reed Elsevier’s ScienceDirect database – the world’s largest

Reed Elsevier’s values guide the behaviours of its people toward

online library of full-text research papers.

providing the right products and services to enable the company to
grow. Reed Elsevier’s values also affect the strategies it develops for

Reed Elsevier was formed in 1993 when the businesses of the

both internal and external stakeholders. It aims to respond to all

British publisher Reed International and the Dutch publisher

their needs through innovative products and services.

Elsevier NV merged. The Reeds were Methodists and took a
philanthropic approach to the business. This means that they
applied the present-day idea of Corporate Responsibility (CR)
within the company. They promoted health and safety for their

customer focus

valuing our people

workers and better standards of living.
The company now operates in more than 200 locations worldwide

VALUES
passion for winning

boundarylessness

and annual revenues for 2011 were £6 billion. Revenues are
largely from subscriptions to its titles. It employs around 30,000

innovation

people including IT specialists, editorial teams and marketing,
sales and customer service staff. To enable the business to focus
on specific customer needs, the company has five divisions.
Corporate responsibility is an integral part of the business.
1. Elsevier – publishing science and health information to promote

win/win outcome for the business and its stakeholders.

research and discovery

C16th – Elsevier family sets up
booksellers and printers

Matching financial and non-financial performance provides a

1894 – Albert E Reed sets up
newsprint manufacturing in Kent, UK

1880 – Jacobus George Robbers sets
up publishing company in Holland using
Elsevier name

1970 – Reed becomes
Reed International Ltd

1951 – Elsevier Press Inc set up in USA

1982 – Reed
International PLC

1979 – Elsevier Press becomes
Elsevier Scientific Publishing

Curriculum topics covered: • Internal stakeholders
• External stakeholders • Stakeholder conflict • Benefits of stakeholder focus

1993 – Reed Elsevier
established
1991 – Elsevier acquires
Pergamon Press in UK

prize went to Sanergy’s sustainable sanitation system for the slums of Kenya. editorial assistance and funding. In 2011. It builds loyalty best return on investment which is usually made in the form of a and creates the potential for increased business. Second them to make a contribution to the whole of Reed Elsevier.REED ELSEVIER STUDY 2012 29/8/12 13:28 Page 3 Reed Elsevier’s market leadership comes from focusing on the needs Employees at all levels are an important internal stakeholder group. and protecting society. advancing science and new customers and retain existing ones. They have the opportunity to put the final version of their work on their own institution’s website as well as having it published through Elsevier. The winning project. • Flexible or home working across the business supports the work-life balance of employees. experts. 99% Reed Elsevier is committed to using its extensive networks and expertise to facilitate the exchange and dissemination of useful information.uk Educators Reed Elsevier customers Legal profession Industry Students Research . will of internal transfers and promotions to develop. This helps the products and services – are our starting point…we concentrate on business to provide the highest levels of customer service. health. 99% of employees had completed anti-bribery training. In this way. the formulation of proposals. the Reed Elsevier Environmental Challenge was launched to identify innovative projects that provide sustainable access to safe water where it is presently at risk and/or access to improved sanitation. Reed Elsevier has a growing portfolio of products and services that advance environmental knowledge and understanding. Authors who provide the journal articles for Elsevier’s scientific publications are also internal stakeholders. service. To help in had completed the course by the end of 2011. Internal stakeholders These identify the value customers place on its services and Reed Elsevier’s internal stakeholders have a range of interests in products and highlight potential improvements. with access to product. This enables provide iron-amended Biosand Filters to villages in Nepal. • By the end of 2011. As investors. • CR strategies benefit shareholders by making the business attractive to investors and improving its share value.co.thetimes100. It conducts widespread surveys of customer opinion. the different parts of the company and its activities. www. Customers Customers expect good value. from organisation – provides opportunities for staff to take advantage the Centre for Affordable Water and Sanitation Technology. ‘Our unique Reed Elsevier needs to retain its diverse and talented employees contributions as a business – how we benefit society through our who bring professionalism and energy to their roles. They will look for the feel they have an input into the services offered. enhances performance and productivity and reduces employee stress. they take a financial grow. Reed Elsevier steadily increases the dividends paid to its shareholders.’ Reed Elsevier has set up various initiatives internally. Reed Elsevier offered access to its • ‘Boundarylessness’ – the company’s different divisions act as one products to more than 140 applicants. share of the profits. Climate Change and Disaster Impacts in East Asia and the Pacific. Reed Elsevier achieves this through close relationships and consultation with customers. Shareholders customers have a real role in helping the business to develop and are key internal stakeholders. Reed Elsevier focuses on CR performance. it supported the UNICEF report. for example: (CR Report 2011) • All employees are offered training on the Reed Elsevier Code of Ethics and Business Conduct to ensure best practice. high-quality products and great This case study shows how Reed Elsevier’s business benefits from meeting the needs of all of its stakeholders. Children’s Vulnerability to External stakeholders External stakeholders are those individuals or groups outside a business. of all of its stakeholders – internal and external. attract universal sustainable access to information. To encourage this. Healthcare providers Scientists • By reducing costs and therefore improving revenues and efficiency. promoting the rule of law and justice. This results in longer-term relationships where customers stake in the company by purchasing shares. To differentiate the company from other information providers. Now in its second year.

• Over the last seven years. Potential stakeholder conflict printers in China. Suppliers must follow all relevant 2011 the company gained 23% of its power from renewable laws.uk . achieving all eight of the standards. promote best practice and respect environmental sources. text and animation of medical procedures help doctors and students learn.thetimes100. the stakeholders. This enables the charity to engage with a wide range of potential book and financial donors.000 books – including those donated from across Reed Elsevier – to readers in the developing world. Reed Exhibitions has given free space at the London Book Fair to Book Aid International which annually provides 500. such as using sustainable sources for paper or seminars to save on travel costs and reduce its carbon dealing responsibly with waste products. water and paper in its publishing processes and using sustainable programme. • Reed Exhibitions drives forward sustainable practice in the divisions. Video. Society Reed Elsevier’s CR approach impacts on society in several ways: Suppliers Suppliers also hold a stake in the company to which they provide materials and services. The company uses video conferences and web conditions. • RE Cares Champions awarded over $500. • Partners in the supply chain. Community Reed Elsevier’s initiatives make a difference to communities around the world. It has implemented the • Elsevier promotes science.REED ELSEVIER STUDY 2012 29/8/12 13:28 Page 4 Reed Elsevier customers come from the public. a lawyer may prepare for a legal trial using earlier case law. By applying the Supplier Code of Conduct. The RE Cares programme is supported both centrally and in all business divisions. • LexisNexis provides online solutions to help professional users to access a wealth of information quickly to support their jobs on a daily basis. suppliers are asked to sign the Reed Elsevier materials wherever possible. which is reflected in the spread of its business divisions. This sets out the standards which it paper between 2007 and 2011. • Investors may want to see evidence of how a company responds to environmental issues before committing money to the business. • In 2011. This programme encourages • Employees require good working conditions if they are to be retained. academic sectors. Two RBI offices and one ELS office in London and the ELS Oxford UK locations were the highest ranked. emissions. Different stakeholder groups have different priorities. It has seen a 39% reduction in Supplier Code of Conduct. from many professions and geographic More than 30% of employees volunteered through RE Cares regions. The division’s online medical data provides vital information to doctors in hospitals. The Elsevier Foundation promotes the work of libraries and scholars in science.co.000 to more than 80 charities in 2011. such as one of Reed Elsevier’s in nine independently audited and certified exhibitions in the last year. • Reed Elsevier has a formal policy of donating unwanted book stock to institutions to provide more access to information. Initiatives range from reading support to charity fundraising. also benefit from its responsible approach to It is important for a business to balance the interest of its various production. commercial and staff to work together to make a difference in local communities. in 2011: for example: • It supports education for disadvantaged young people. • Reed Elsevier is committed to reducing use of energy. For example. technology and medicine. used 28% less water and in expects its suppliers to meet. 69 office locations gained green status by achieving five environmental standards as part of the Reed Elsevier Standards programme. • In 2011. • Elsevier’s scientific publications provide critical research information to support innovation and development. www. • Shareholders expect the business to make a profit and receive a return on their investment. Reed Elsevier announced the winners of the first RE Cares ‘Recognising Those Who Care’ Awards to highlight the outstanding contributions to RE Cares of eight colleagues and four staff teams. technology and medical information British Standard (BS 8901) for sustainable event management programmes. For example: • As part of the company’s Socially Responsible Supplier • In line with its Code of Ethics. They have enormous social value and may affect lives across the world. printer found that improved conditions led to better quality for example: output. For example: global meetings and events industry. It has a network of Environmental Champions and employee-led Green Teams to promote greater recycling and Partners Reed Elsevier has established partnerships across its different reduced energy use throughout the business. it promotes responsible advertising and a transparent editorial policy for its publications. lower turnover of staff and greater employee loyalty.

reedelsevier. investment in ‘green’ energy (such as from solar or wind farms) may be more expensive but can help the company reduce its environmental footprint. Reed Elsevier | Corporate Responsibility and stakeholders of stakeholders. For example. they also demonstrate publicly Reed Elsevier’s values. Through employee community work. It will also have to assess the the business in balance. 1. strengthens Reed Elsevier’s business.REED ELSEVIER STUDY 2012 29/8/12 13:28 Page 5 www. (8 marks) Exam-style questions external stakeholders in Reed Elsevier.com ‘Valuing People’ is a stakeholder focus which is important to Reed Elsevier. Stakeholder conflict arises when the needs of some stakeholder groups compromise the expectations of others. Attracting and keeping good employees means the business will achieve its objectives and meet the expectations of customers. (6 marks) 4. For example. involved and motivated – which leads to improved efficiency. cross-reference and search for Some activities may not give immediate financial return on investment but support the business’ ethical standards. Customers want good quality products and services that are value for money. it has a sustainable business model leading to growth. Evaluate the benefits to a business of focusing on the needs of all stakeholders. so they understand the longer-term value they provide. which can help keep prices down for customers. Reed Elsevier will have to justify this Conclusion investment against the opportunity cost of using the time and A focus on stakeholders provides a way of keeping all aspects of resources for other purposes. Reed Elsevier listens to its customers and meets their needs with innovative ideas that create cost-effective and convenient solutions to their business challenges. information. customers. However. They affect the lives of people 3. Reed Elsevier’s online services provide customers with the opportunity to cross-link. Corporate include losing good people to other organisations or mistakes Responsibility touches on all aspects of the business and happening through lack of training. the cheapest supplier goods. Reed Elsevier employees are offered development opportunities so that they can reach their potential. (4 marks) in the global community in many ways. This could expectations and needs of all its stakeholders. Use a diagram to illustrate the main internal and The benefits of a stakeholder focus 2. its people not only make a difference to local communities around the world. This has helped to ensure more than 60% of revenues now come from online products and services. opportunities and rewards for all workers are part of Reed Elsevier’s approach to supporting its people. they can benefit the company by attracting investors looking for ethical companies. Improved efficiency reduces costs which increases sales and improves revenues – which contribute to higher profitability. This focus provides benefits in the form of motivated and loyal employees. must not come at the expense of ethical practice by suppliers. greater employee retention and higher quality services which meet the needs of consumers. Supporting employees may also lead to trade-offs. Explain the difference between a stakeholder and a Businesses do not work in isolation. The company believes that by living up to its responsibility to contribute positively to its employees. Reed Elsevier pays close attention to the potential downside of not training its employees. Explain why it is important for Reed Elsevier to engage in consultation with them. Such policies need to be communicated and explained to all stakeholders involved. This results in employees feeling encouraged. Analyse the potential for conflict between different groups shareholder. Challenges. (2 marks) . society and the environment in the carrying out of its Corporate Responsibility Affects all stakeholders Translates into business benefits business. for example. Reed Elsevier believes it must be accountable to communities and give something back. For example. long term. Some decisions may not generate immediate return on investment. Reed Elsevier’s CR activities focus on doing what is relevant for the business and its stakeholders. A business has to make choices which some stakeholders might not like. The company recognises and values its people.