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Chapter42.pptxImplementing CSR
Chapter 04
What is CSR ?
Corporate Social Responsibility (CSR) is integration of SOCIAL, ECONOMIC and
ENVIRONMENTAL concerns into Daily Business Operations.
How do we implement CSR ?
Commit
to CSR
Assess
Define
Implement
Measure
Communicate
Business
Strategy
CSR Strategy
CSR Strategy is NOT a stand-alone activity. It consists of several steps, but these
should be integrated with the Business Strategy.
Step 0 – Preparatory Phase
Short Term Actions
Step 0a – Identify ‘Quick Wins’
• All organizations – knowingly or unknowingly – pursue CSR.
• ‘Quick wins’ are socio-economic and/or environmental activities that are easy to
accomplish and don’t require a lot of expertise or effort.
• Examples:
•
Training programs for staff,
•
Having an employee canteen,
•
Recycling waste or applying small energy efficiency measures
Step 0b – List and Classify ‘Quick Wins’
• Quick-win activities can be classified under one or more categories:
• Work-force oriented CSR activity
• Society oriented CSR activity
• Environment oriented CSR activity
• Market (or Customer) oriented CSR activity
• Make a list of all activities that the organization currently undertakes and list
them under one or more of the above categories
Step 0b – List and Classify Table
CSR Activity (Examples)
Workforce
Market
Society
Environment
Support the construction of a local
community and sports center
Implement a quality assurance and train
workers to implement quality control
7
Step 0c – Identify Medium/Long Term CSR
Discuss internally and secure feedback from employees on potential short/medium
and long term actions that can be expanded from current quick wins.
Type
Quick Win
Actions that can be
implemented in 1-3 years
Actions that can
be
implemented in 3-5 years
Society-
oriented
Organizing factory visits and
workshops for local students to
build awareness and sense of
ownership within the community.
Identifying skilled students as potential
future employees by offering internships.
This early relationship building can lead
to creating a pool of future workers.
Describe here…
Environment-
oriented
Conduct a simple water/carbon
footprint based on utility bills for
water and energy consumption
Implement water and energy efficiency
measures that can help reduce costs.
Apply for international carbon footprint
certification
Step 1 – Commitment
Step 1 – Commitment from CEO/Owner
• CSR activity needs support of the senior management.
• Issue a letter signed by the owner or CEO of the organization, indicating their
eagerness and support for pursuing CSR.
• Communicate the decision to all employees.
• Ensure that the Owner/CEO is personally present to make the annoucement.
• This will indicate the seriousness to the employees.
Step 1 – Sample Text
Dear Stakeholders,
I am pleased to inform all of you and confirm the commitment of XYZ to pursue CSR and support issues related
to our stakeholders including labour rights, human rights, environment and anti-corruption. With this
commitment, we intend to pursue a set of activities that will make a clear statement of our commitment to
stakeholders and general public.
We also pledge to annually report our progress and make the information available for public scrutiny. Based on
the feedback, we shall strive to improve ourselves and uphold ourselves as a responsible business.
Signed CEO/Owner
Step 2 – Assessment
Step 2 – Assess and Prioritize
• At this point, companies have several ideas that they can pursue.
• The Assessment phase will involve asking and answering specific questions to
enable improved decision making.
This will ensure that CSR is not merely philanthrophic or problemtaic but integral
to the company’s strategy.
Step 2 – Questions to Ask…
Decision Making Matrix
Score
(1-5)
Comment
Support the construction of a local community and sports center
Profitability:
Will the activity eventually benefit the bottom line?
Purpose:
Is the activity aligned to the core services/products that the SME offers?
Stakeholder:
Will the activity improve the SME’s relationship with stakeholders?
Issues:
Does the activity focus on appropriate issues/risks affecting the SME?
Efficiency:
Does the activity allow the SME to use its organization efficiently?
Benefits:
Does the activity lead to social, economic and/or environment benefits?
Timeframe:
Is the activity quick win/short, medium or long term in outlook?
Step 3 – Define
Step 3 – Define and Elaborate
• The qualitative and quantitative analysis provides greater clarity to the CSR
activities that needs to be initiated within the company.
• Defining starts with stating objectives of the specific activity
• Identifying existing status and future targets over a timeframe.
• These can stated in a ‘CSR Road Map’ document.
• Targets (e.g. 2 training programs/year) can then be integrated into the
Key Performance Indicators (KPIs) of employees.
Stakeholder:
Objective:
CSR Action - 1:
Goals:
Key Performance Indicators
Targets for Year 2019
Environmental
Social
Economic
.
.
Fill out the CSR ‘Road Map’ – Part 1
Step 4 – Implement
Step 4 – Allocate Resources and Implement
• Once targets are defined, the company needs to identify the resources required to
successfully meet the targets.
• Resources can be financial, human, and other non-financial resources.
• Teams need to be put in place along with a management system.
• Necessary information needs to be communicated and support provided through
training and capacity building.
CSR Decision Making Structure:
CSR Team: (State Names of Personnel, Roles and Responsibilities)
Training and Capacity Building: (Provide a description of the additional training required to make the CSR Team
competent to undertake the required activities)
Additional Resources: (State financial and non-financial resources required to successfully implement the CSR
activity)
Measures to address problems / challenges: (State the mechanism set up to secure feedback during the
implementation process and means to address the problem)
Monitoring and Reporting: (State the procedures for data monitoring against the set targets)
Fill out the CSR Road Map – Part 2
Step 5 – Measure
Step 5 – Monitoring and Reporting Data
• As the CSR activities are implemented, a system to collect periodic feedback and
data needs to be initiated.
• Data collection can be daily/weekly/monthly/quaterly or annually.
• Data should ideally be quantitative as it is objective and easier to understand. But
where not possible qualitative data should be encouraged.
• The data should be reported by comparing against set targets in Step 3.
Statement from SME Owner/CEO indicating commitment to CSR
Brief company profile and period of report
Workforce-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Society-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Market-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Environment-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Summary Statement
Table of Contents for a simple CSR Report
Key
Performance
Indicators
Targets for Year 2014
Progress
in 2014
Social
Environmental
Economic
Results
% Success
Women in
senior
management
20% of all
employees
above the
rank of
manager
should be
women
No impact
Potential impact
on profitability of
women’s wear.
No target
specified.
7 women
employed
equivalent
to 10% of all
employees
50%
Already there in the CSR Road Map
Monitored Data
Step 6 – Communicate
Step 6 – Inform Stakeholders
• Communication is about sharing success and failures.
• Communication is about making stakeholders aware of activities.
• Communication is about building brand and raising awareness.
• Communication is about learning, improving and showing progress.
Prioritizing and Engaging
•
Communicate the CSR Report through electronic media
and/or hard copies.
•
Highlight achievments in company meetings, social
groups, communities and peer groups.
• Show continuing commitment to improve…
