DCC plc Company Profile
Two of DCC's main corporate social responsibility (CSR) initiatives involve supporting Social Entrepreneurs Ireland (SEI) and LauraLynn, Ireland's Children's Hospice. Organizations that DCC has worked with regarding its sustainability efforts include Friends of the Sea, the Marine Stewardship Council, and the Roundtable for Sustainable Palm Oil. DCC's corporate purpose is to generate strong financial results for its shareholders.
Corporate Social Responsibility
- Throughout DCC, the company, its subsidiaries, and employees support communities, organizations and charities by fundraising, participating in educational programs, financial contributions, and providing various types of training.
- Specific areas of DCC's CSR efforts are provided below by category.
1. Business Conduct
- A core element of DCC's CSR efforts involve its integrity-based business conduct, which is one of its "four core values" "as a responsible business."
- DCC is a four-time recipient of Ethisphere's annual World's Most Ethical Companies awards, which DCC most-recently received in 2018.
- The award showcases DCC's "commitment to high standards of business conduct and how that commitment is translated into practice through our compliance policies and procedures."
- DCC is strongly committed to the principles of fairness, openness, respect, accountability, and honesty.
2. Diversity & Inclusion
- Diversity and inclusion is an integral component of DCC's CSR framework.
- The company believes that a diverse workforce is of great value to the organization and values the uniqueness of its employees.
- Furthermore, DCC states that "[a]ll recruitment, selection and promotion decisions are made on individual merit, in line with our commitment to create an inclusive workplace."
- The Employers Network for Equality and Inclusion is an organization that DCC is a member of. The organization helps DCC's businesses in the UK in ensuring that they are using best practices with regard to human rights and equality at work.
- The 30% Club is a campaign working "to develop a diverse pool of talent for all businesses through the efforts of its Chair and CEO members who are committed to better gender balance at all levels of their organi[z]ations." DCC is a member of this campaign.
- One way that DCC supports its female talent with high potential in their professional development is through the company's "partnerships with organizations like The Mentoring Foundation to ensure our female leaders are supported at significant career stages." This link is to The Mentoring Foundation's website.
- DCC stated in its 2019 Annual Report that it has improved in promoting gender diversity across the company over the last several years, including at its Board level.
3. Social Entrepreneurs Ireland
- For the past nine years, DCC has been a strong supporter of an organization called Social Entrepreneurs Ireland (SEI). In fact, DCC's partnership with SEI is a very big part of the company's CSR efforts.
- SEI is a nonprofit organization in Ireland "that supports people with new solutions to Ireland’s biggest social problems. SEI helps these individuals to increase their impact by providing significant funding alongside in-depth technical and practical support."
- This link is to SEI's website.
- DCC states that it "is the flagship sponsor of the annual selection process" for SEI Awardees, which are announced each October.
- This link is to the approximately five-minute speech delivered by DCC's CEO, Donal Murphy, at the Social Entrepreneurs Ireland Awards Celebration 2019.
- SEI's 2018 Annual Report recognized DCC's contributions to the organization in stating the following: "DCC has generously given both strategic financial investment and provided the skills and expertise of their dedicated and energetic team through our selection process and support of social entrepreneurs. This support has had far reaching benefits for the social entrepreneurs and the impact they continue to have in tackling social problems in new and innovative ways. "
- The partnership between DCC and SEI involves three focus areas, which are financial support, providing support to social entrepreneurs, and selecting the annual Awardees.
- With regard to the first focus area, financial support, DCC provides SEI with significant financial contributions each year. With regard to the second focus area, providing support to social entrepreneurs, DCC "provides [them with] ongoing professional, financial and community support to develop their entrepreneurial solutions." With regard to the third focus area, selecting the Awardees, DCC employees actively participate in selecting the social entrepreneurs who will be the Awardees each year.
- DCC's CEO, Donal Murphy, provided the following statement about the company's support of SEI: "We take great pride in our role as flagship sponsor of the annual SEI Awards Celebration. DCC has backed commercially focused entrepreneurship for more than 40 years and we equally believe in the creativity and passion of Irish social entrepreneurs to make a significant contribution to solving our greatest challenges as a society."
4. LauraLynn, Ireland's Children's Hospice
- DCC has a charity partnership with LauraLynn, Ireland's Children's Hospital.
- DCC describes LauraLynn, Ireland's Children's Hospice as its "charity neighbor" since the organizations are in proximity to one another.
- LauraLynn is the only children's hospice in Ireland. LauraLynn "provide[s] care and support for children with life-limiting conditions and their families, both in the hospice, in hospital and in the comfort of the family home."
- DCC provides an array of support to LauraLynn. First, DCC provides financial support to LauraLynn every year. Second, LauraLynn's annual event called the Heroes Ball is sponsored by DCC, which DCC employees attend.
- Additionally, DCC's employees volunteer for LauraLynn, donate equipment/products, raise funds for the organization, and provide "professional skill-based support" to the organization. Furthermore, DCC stated in its 2019 Annual report that it "encourages raising awareness of LauraLynn's work in the wider community as we understand the vital need for their services."
- DCC is "a devolved organization"with a global presence that spans an array of industries. As such, DCC's "individual business units are responsible for the implementation of appropriate policies and procedures to identify, assess, control and monitor the environmental impacts that are material to their activities."
- A key business principle of DCC is "[e]nsuring that . . . [its] businesses maintain rigorous . . . environmental standards."
- The minimum environmental standard that DCC requires for all its individual businesses is that they have to "comply with applicable environmental legislation, regulations, permits and licenses."
- Every one of DCC's individual business units, on the local level, "seek to optimi[z]e their use of nature resources" such as raw materials, water, and energy, and also seek to minimize the waste they generate (both hazardous waste and nonhazardous waste), their air emissions, water effluents, "and releases to soil and groundwater where these are material aspects of their operations."
- DCC's individual businesses record their energy data, including electricity, heating fuels, and transport fuels.
- Those businesses then use software that's CDP-accredited to convert their recorded energy data "into greenhouse gas . . . emissions" which are reported in CO2 tonnage.
3. DCC Healthcare
- In its 2019 Annual Report, it was stated that "DCC Healthcare is focused on improving the environmental sustainability of its businesses and range of products and services."
- Many DCC Healthcare customers, and customers of DCC Health & Beauty Solutions in particular, track the company's sustainability efforts "and are keen to see their businesses and brands share in the successes we [DCC] have delivered, particularly in the area of carbon footprint reduction, use of products that are sourced from sustainable sources and reduced waste to landfill."
- Initiatives focused on managing/saving energy have recently been implemented by DCC Healthcare at its "contract manufacturing sites."
- Some of those energy-saving initiatives that have been installed include LED lighting, solar power, wind turbines, and technology for voltage optimi[z]ation. Additional, water temperatures for cleaning have been optimized.
- In its 2019 Annual Report, DCC reported that the energy-saving initiatives it has implemented have reduced carbon emissions by over 10% in some instances and DCC believes those initiatives will reduce energy usage and carbon emissions even more in time.
4. DCC's Facility for Manufacturing Soft Gel
- DCC has a facility for manufacturing soft gel, which it says is among "the most environmentally friendly soft gel producers" worldwide.
- To achieve that status, DCC has made investments in recent years to create onsite generation of electricity and lower its carbon emissions.
5. Sustainable Materials
- DCC's UK "contract manufacturing business" has been continually improving its sustainable-ingredient-procurement capability.
- In 2019, DCC ensured that "sustainable raw materials" are being used in its manufacturing processes by working with Friends of the Sea, the Marine Stewardship Council, and the Roundtable for Sustainable Palm Oil.
- DCC has worked to ensure that the raw materials used by its cardboard suppliers are made from recycled material whenever feasible and come from sources that are sustainable.
- The Soil Association "granted organic certification" to a UK-based DCC facility in 2019 for its new organic products.
6. Climate Questionnaire
- CDP Global, a nonprofit organization, distributes an annual climate questionnaire, which DCC has completed each year dating back to 2010.
7. Liquefied Petroleum Gas
- DCC LPG (liquefied petroleum gas) helps its customer lower their impacts on the environment by offering them fuels that are more efficient and cleaner.
- LPG is more-environmentally friendly than diesel because its CO2 impact is 20% lower and its Nitrous oxides are more than 96% lower.
- TEGA, a DCC business, "work[s] with key refrigerant suppliers to deliver lower Global Warming Potential (GWP) refrigerants in line with the EU Flourinated Gas (F-Gas) directive."
- In Sweden, Qstar, a DCC company, has a fleet of tanker vehicles which are powered by Hydrotreated Vegetable Oil. That oil is made "from vegetable fats and oils."
- The drivers of those eco-friendly vehicles also receive training for how to drive in a fuel-efficient manner.
- Qstar has seen its CO2 emissions significantly decline after making the switch to vehicles powered by Hydrotreated Vegetable Oil.
- DCC's corporate purpose is to generate strong financial results for its shareholders.
- In support of that corporate purpose, DCC states the following: "By focusing on delivering a very strong cash flow performance, we will maintain our financial strength which is important for our partners, enables us to be acquisitive and supports dividend growth for our shareholders. We believe our focus on cash flow and financial strength, with return on capital employed as our key metric, will deliver superior returns for shareholders over the longer term."
- In support thereof, DCC states that turning its "operating profits into cash flow has always been a critical focus for" the company.
2. Strategic Objective
- The company states that its "strategic objective is to continue to build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital." That has been the company's same strategic objective since 1994 when it went public. DCC adheres to "five strategic priorities" in order to achieve that objective, which are listed in the next research finding.
- Those "five strategic priorities" are (1) creating value for shareholders via dividend growth and share-price growth, (2) improving customer service, (3) strengthening supplier relationships, (4) providing more development and employment opportunities for DCC employees, and (5) "positive[ly] impact[ing] . . . the wider communities in which" DCC does business.
- To that end, DCC believes that its strategic objective helps ensure that it "keep[s] a clear focus on what creates value for our shareholders."
- DCC pursues that corporate purpose across the four sectors it operates in, as it works to be both "an integral and established part of the value chain" within such.
- The company's goal is to be among the top "two operator[s] in each of its chosen markets." To achieve that goal, DCC "focus[es] on increasing market share organically and via value enhancing acquisitions."
- Furthermore, the company also has the goal of being the business that's most efficient within those sectors that it's engaged in.
3. Core Values
- DCC has four core values, which are essential to fulfilling its corporate purpose. Those core values are safety, integrity, partnership, and excellence.
- DCC states that safety is its top priority with respect to its employees, customers, contractors, and others affected by its operations. In fact, the company states that "[n]othing we do is so important that it cannot be done safely, every time." Specifically, DCC states that safety is foundational to its "sustainable business success" which is why the company continually strives to improve in the area of safety.
- Safety is paramount for DCC, considering that millions of companies and people use its services and products, whether in an indirect or direct manner, on a daily basis.
- Each of DCC's businesses have a management system for safety and health in effect that "reflect[s] the specific risks from their operations and at the same time [is] aligned with the high level expectations set out in the DCC Group Health & Safety Policy."
- Integrity is a pillar that DCC was built upon. As such, the company is committed to being accountable, honest, fair, respectful, and open.
- Partnerships are an extremely important part of DCC fulfilling its corporate purpose. DCC says that its "business is all about creating sustainable partnerships." The company believes that partnerships better equip all parties involved to succeed, which is why partnerships have been essential to DCC's past success and will continue to be such moving forward.
- DCC has an overall commitment to excellence, which is also essential to the company fulfilling its corporate purpose. The company believes that excellence results from being really determined, striving for success, being detail oriented, acting with urgency, and being prepared. DCC believes that stakeholder value will grow over the long haul as a result of the company's daily commitment to excellence.
Recent Articles That Mention DCC's Corporate Social Responsibility
- We conducted substantial research in looking for articles from within the past year that mention DCC's corporate social responsibility. We were able to find 10 such articles, but we wanted to explain that most are about the company's support of Social Entrepreneurs Ireland because (1) that's its main CSR initiative, (2) all but one article about its support of LauraLynn (the other main organization it supports) was from over a year ago, and (3) these were all the articles we could find that weren't paywalled.
1. Articles 1-5
- This link is to an article titled "SEI has €0.5m available to fund social projects" that was published by Raidió Teilifís Éireann on February 12, 2019. The article discusses the level of funding that SEI has available for social entrepreneurship projects, which is provided by DCC.
- This link is to an article titled "Recognition for the founder of Hugh's House charity" that was published by the Fingal Independent on July 2, 2019. The article announces who the finalists are for the 2019 SEI Awards.
- This link is to an article titled "Fourth Annual LauraLynn Heroes Ball A Success" that was published by LauraLynn, Ireland's Children's Hospice on May 2, 2019. The article provides a summary of the 2019 event and mentions that DCC is a corporate sponsor of it.
- This link is to an article titled "Kinvara-native social entrepreneur finalist in SEI awards" that was published by the Galway Advertiser on June 20, 2019. The article discusses the Awardee finalists for the 2019 SEI Awards.
- This link is to an article titled "Introducing the Responsibility100 Index" that was published by Tortoise Intelligence on September 23, 2019. The article discusses Tortoise Intelligence's inaugural "ranking of FTSE 100 companies measured by their commitment to key social, environmental and ethical objectives such as carbon reduction, gender equality and good business practices." DCC was ranked 95th on the list.
2. Articles 6-10
- This link is to a Google Doc with screenshots of a report/article titled "The Female FTSE Board Report 2019" that was published by Cranfield University on June 5, 2019. We had to include screenshots of the pertinent parts of the report because it was only available in PDF format. The report discusses women who are on boards of FTSE companies and DCC received a mention for having such.
- This link is to an article titled "Killaloe man wins 2019 Social Entrepreneurs Ireland award" published by The Clare Herald on November 9, 2019. The article discusses the man's work in helping people lower their anxiety, shows a picture of DCC's CEO handing him the award, and mentions that DCC sponsors the event.
- This link is to an article titled "Social Entrepreneurs Ireland calls on people with ideas to tackle social issues" that was published by Business World on February 12, 2019. The article announced that applications were being accepted for participation in SEI's Academy and for its annual Awards, plus that DCC is a sponsor of the organization.
- This link is to an article titled "Six Irish social entrepreneurs awarded €240,000 to support their projects" that was published by Silicon Republic on October 9, 2019. The article highlights all the 2019 SEI Awardees and describes their projects.
- This link is to an article titled "SEI Launches Supports For Social Entrepreneurs" that was published by BizPlus on February 12, 2019. The article describes how SEI supports social entrepreneurs, states the application deadline, lists previous award winners, and mentions DCC's support of SEI, including a quote from the company's CEO.
The first part of our research involved finding information about DCC's corporate social responsibility efforts. We found that information through the company's most-recent annual report (2019) and on the company's website where such initiatives are discussed. Those two sources provided ample information about the company's CSR efforts. The second part of our research involved finding information about DCC's sustainability efforts. We found that information through the company's 2019 Annual Report and on the company's website where such efforts are stated. The third part of our research involved finding 10 articles published within the past year that mentioned DCC's CSR efforts. As was previously mentioned, we conducted substantial research in looking for articles from within the past year that mention DCC's corporate social responsibility. We were able to find 10 such articles, but we wanted to explain that most are about the company's support of SEI because (1) that's its main CSR initiative, (2) all but one article about its support of LauraLynn was from over a year ago, and (3) these were all the articles we could find that weren't paywalled. We tried our very best to look for articles about a variety of CSR topics, but the articles were mainly about SEI.