============= Page 1 of 10 ============= 4 V~- v t t Enron North America E0004392454 =XH 005-02628 ============= Page 2 of 10 ============= Corporate Responsibility E0004392455 t ~. }.7 =XH005-02629 ============= Page 3 of 10 ============= What is Corporate Responsibility? • Corporate responsibility integrates social and environmental considerations into business strategy, market development and decision-making • Sustainable Development - "Meeting the needs of the present, without compromising the ability of future generations to meet their own needs... " (World Commission on Environment and Development, 1987) 0 2000 LG-2110298 E0004392456 0 XH005-02630 ============= Page 4 of 10 ============= Emerging Trends t The emergence of business standards - I critical developments in corporate governance and standards for i_g obal operations • C21st Social a 90's .. • Concerns E Corruption 0 80's •Supply Chain Community impact, a 70'x1 labor standards, Environment human rights, *00 • Quality & stakeholder ~ 60's.-", '•.• , Consumers relations, etc. °~ d w Labor, Codes & Compliance: c Health & Voluntary standards - o Safety voluntary codes /regulation - .n : internal business principles - c C20th Financial audit - compliance - public •~ Management reporting ......... Emerging Pressures for Standards & Transparency ®2000 LG-2110298 Source: Prince of Wales y Business Leaders Forum ~a E0004392457 (H005-02631 ============= Page 5 of 10 ============= Emerging Trends and Practices • Shareholder, market, customer and employee interest in non-financial performance and services: Salomon Smith Barney V - Polaroid, Starwood - University of Chicago - Friends of the Earth~~ • Market-based solutions: - Demand for environmentally/socially superior products - Provision of goods and services to address sustainability concerns 0 2000 LG-2110298 E0004392458 ro