Each company differs in how it implements corporate social responsibility. The differences depend on such factors as the company’s size, sector, the market in which is operates, its culture and the commitment of its leadership. Some companies focus on a single area such as the environment while others aim to integrate a CSR vision into all aspects of their operations; still others have a specific team responsible for CSR which then works across functional silos to implement socially responsible practices. Below are some key strategies companies can use when implementing CSR policies and practices.
Mission, vision and values statements
If CSR is to be regarded as an integral part of business decision-making, it merits a prominent place in a company’s core mission, vision and values documents. These are simple but important statements that succinctly state a company’s goals and aspirations. They also provide an insight into a company’s values, culture and strategies for achieving its aims. The mission or vision of a socially responsible business should make reference to a purpose beyond 'making a profit' or 'being the best,' and should specify that it will engage in ethical business practices, and seek to create value for a variety of stakeholders. Such stakeholders should include employees, customers, vendors, communities and the natural environment as well as the shareholders and owners of the company.
The publication To Whose Profit? Building a Business Case for Sustainability published by the World Wildlife Fund and Cable & Wireless includes a six-stage process for building a business case for sustainability. To download go to: www.wwf.org.uk
Cultural values
Many companies now understand that corporate social responsibility cannot flourish if there is still confusion about the ‘business case’ for CSR and doubt whether there is a central place for corporate philanthropy in their business. In a similar vein, there must also be a commitment to close the gap between what the company says it stands for and the reality of its actual performance. Goals and aspirations should be ambitious, but care should be exercised so the company says what it means and means what it says.
Corporate governance
Many companies have established ethics and/or social responsibility committees of their boards to review strategic plans, assess progress and offer guidance about emerging issues of importance. Some boards that do not have these committees get the full board involved in considering issues of corporate social responsibility. In addition to committees and boards, some companies have adopted guidelines governing their own policies and practices around such issues as board diversity, terms, and compensation.
Executive management responsibility
Some companies have a senior officer with CSR as a responsibility. The participation of this individual in critical company decisions ensures that CSR considerations are taken into account. In other cases, senior managers collectively consider the interests of key stakeholders before important decisions are made.
Strategic planning
A number of companies are beginning to incorporate CSR into their long-term planning processes, identifying specific goals and measures of progress or requiring CSR impact statements for any major company proposals.
General accountability
In some companies, in addition to the efforts to establish corporate and divisional social responsibility goals, there are similar attempts to address these issues in the job descriptions and performance objectives of as many managers and employees as possible - for example, by incorporating diversity goals in managers’ hiring practices. This is the focus of the UK government’s CSR Academy see www.csracademy.org.uk The purpose is to engage every employee by helping them understand how each person can contribute to the company’s overall efforts to be more socially responsible; it is also about seeking to ensure that the social and environmental implications of everything the company does are taken into account, and therefore that the fullest possible action is taken to maximise positive impact on society. Another reason for seeking to embed CSR throughout the business is that it can often be a spur for innovation and creativity that delivers business benefits that otherwise would not have been realised, for example by helping managers to find more efficient ways of doing things. It builds individuals’ skills and helps embed rigorous and comprehensive risk and benefit assessments into decision-making
Communications, education and training
Many companies now recognise that employees cannot be held accountable for responsible behaviour if they are not aware of its importance and provided with the information and tools they need to act appropriately in carrying out their job requirements. These companies publicise the importance of corporate social responsibility internally, include it as a subject in management training programmes, and provide managers and employees with decision-making processes that help them achieve responsible outcomes. Many companies are using innovative on-line resources to train and educate their workforce and suppliers.
Employee recognition and rewards
Most companies understand that employees tend to engage in behaviour that is recognised and rewarded and avoid behaviour that is penalised. The system of recruiting, hiring, promoting, compensating and publicly honouring employees all can be designed to encourage corporate social responsibility.
Social and environmental auditing and reporting
A growing number of companies have come to understand the value of assessing their social and environmental performance on a regular basis. Be it the informal query 'how are we doing?' or the formal audit process conducted by outside experts, companies are seeking information about how they are viewed and how they are progressing in meeting the expectations of investors, employees, customers, business partners and other interested parties on a range of corporate social responsibility issues.
There are a huge range of process and reporting standards now available. Some of the most influential and successful are AccountAbility 1000 (from the Institute of Social and Ethical Accountability), the Global Reporting Initiative guidelines and SA8000 from Social Accountability International. In different ways, they assist an organisation in the definition of goals and targets, the measurement of progress made against these targets, the auditing and reporting of performance, and feedback mechanisms. For more information go to:
www.accountability.org.uk
www.globalreporting.org
www.cepaa.org/
A significant step forward in the relationship between business, society and the environment has been made with Business in the Community’s Corporate Responsibility Index, the first business-led, voluntary and self-assessed index, publicly benchmarking the responsible business practice of a range of companies in different industry sectors.
The Index is a business tool for companies to evaluate their own performance and to compare it with their peers'. It enables them to assess the extent to which strategy and values are translated into responsible practice throughout their organisation, in four key areas (community, environment, marketplace and workplace), to identify gaps in performance and make improvements.
The results of the fourth annual Corporate Responsibility Index are available in the publication of the Top 100 Companies that Count 2006 in the Sunday Times (7 May 2006).
A total of 131 companies participated in the Index in 2006.
More details, including Top 100 companies, key findings and emerging trends are available in the executive summary. For more information go to www.bitc.org.uk/
Use of influence
Some socially responsible companies recognise that they can play a leadership role in influencing the behaviour of others, from business partners to industry colleagues to neighbouring businesses. They understand that ultimately it is in everyone’s best interests to have as many companies as possible honouring the requirements and expectations of corporate social responsibility.
