Chapter 10+11. CSR+ Reporting on NF issues Flashcards
Describe Corporate Social Responsibility
The commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
List 5 approaches to CSR
- Environmental – The impact of the business on the environment, including its carbon footprint and energy efficiency
- Community – Developing relationships with, and supporting, local community groups.
- Employees – Considering its approach to employee well-being and employee protection, and its approach to diversity and inclusivity.
- Ethics – Considering whether it should adopt a code of ethics and whether it has the right ethical approach to business practices.
- Suppliers –Ensuring that they are aligned with the company’s own ethics and that they do not engage in bad business practices.
Provide 5 factors that a company may consider when seeking to measure CSR Initiatives
- Beneficiaries of the initiatives and/or helped create a better planet
- Measuring the outcome using both quantitative and qualitative measurements
- Listen to stakeholders
- Do not undervalue stories. Stories can be incredibly powerful, for instance how an individual’s life has been changed by the organisation’s initiative
- Learn from others
- Identify and measure the risks
- Measure, refine, modify, measure again
Provide 2 benchmarking tools for CSR
- Dow Jones Sustainability Indexes (DJSI)
- FTSE4Good Indexes
- Business in the Community (BITC) Responsible Business Tracker
What are the six capital resources that should be taken into account with Integrated Thinking? FHMINS
- Financial capital – money, equity, bonds, monetary value of assets, etc. that an organisation needs to operate.
- Human capital – the collective skills and experience of the people that work for the organisation.
- Manufactured capital – physical means and infrastructure needed for an organisation to provide its products and services, e.g. fixed assets.
- Intellectual capital – patents, copyright, designs, goodwill, brand value and knowledge accumulated, i.e. intangible assets.
- Natural capital – natural resources and energy that the organisation depends on to produce its products/services.
- Social capital – value added to an organisation of the social relationships with individuals and institutions that an organisation has developed through its stakeholder engagement
List the 3 ways a company can engage with stakeholders
Reactively - Engages defensively, when forced to in response to a crisis
Proactively – Tries to understand its stakeholders’ concerns and issues and engages with them
Interactively - Has ongoing relationships of mutual respect, openness, and trust
List the roles of the Company Secretary in stakeholder engagement D (DAMC)
DEVELOPING
1. Identifying stakeholders, their expectations and interests
- Mapping the power and interest of stakeholders or stakeholder groups, so that they can develop a strategy for engaging with them.
- Determining the board’s financial and nonfinancial needs for creating value and long-term sustainability.
- Discussing and approving key performance indicators for social, environmental and financial performance.
- Approving a policy for external, financial, nonfinancial (sustainability) or integrated reporting.
- Looking to integrate stakeholder issues into annual shareholder meetings. This can be done through resolutions, presentations at meetings, and/or displays at the entrance or in the meeting room.
- Discussing the risks and impacts (positive and negative) of projects and operations and providing transparent disclosure information to stakeholders (including shareholders).
- Convening stakeholder forums and inviting key stakeholder representatives to address board meetings, so members of boards hear from stakeholders directly about their concerns and issues.
- Documenting the concerns and issues of stakeholders and lessons learned and feeding this into the risk management, strategic planning and business continuity processes
List the roles of the Company Secretary in stakeholder engagement A (DAMC)
ADVISING
10. Advising the board on reporting –
- Alerting the board and management to risks associated with stakeholder engagements
- Advising the board on the setting up of a committee responsible for stakeholder engagement
- Advising the rem co to link management’s rewards, remuneration and other benefits, to the achievement of CSR targets.
List the roles of the Company Secretary in stakeholder engagement M (DAMC)
MONITORING
14. Carry out an analysis where there are gaps between the organisation’s current position and its strategic plan
- Receiving regular reports back to the board which should be included on agendas so that progress against targets can be monitored
List the roles of the Company Secretary in stakeholder engagement C (DAMC)
COMMUNICATING
16. Informing key stakeholders about the CSR initiatives and targets and keeping them up to date on progress
List 4 items to be included in the Strategic Report
- Describe the company’s strategy, objectives and business model;
- Provide an explanation of the main trends and factors affecting the company;
- Describe the company’s principal risks and uncertainties;
- Include an ((analysis of the development and performance(( of the business, including key performance indicators (KPIs);
- Include information about the environment, social, community, human rights, anti-corruption and anti-bribery matters when material; and
- Include information on gender diversity.
List 4 benefits to an organisation of integrated reporting
- Greater clarity about relationships and commitments.
- Better decisions
- Deeper engagement with all stakeholders
- Helps eliminate the artificial distinction between shareholders and stakeholders
- Companies become aware of the interests of their different stakeholders and how those interests are in alignment or conflict with each other
- Reduces reputational risk
List 5 ways in which a company secretary can support the company in CSR D
(DMAC)
Developing
1. Ensuring that KPIs for non-financial matters are developed and approved by the board.
- Working with the board to agree:
– the reporting framework to be adopted, for example the GRI standards or the UN Global Compact.
– how the non-financial information is to be presented
– how the reporting will meet the differing needs of the different audiences for the reporting
List 5 ways in which a company secretary can support the company in CSR M
(DMAC)
Monitoring
3. Ensuring that a review of the annual process is conducted and presented to the board highlighting areas for improvement
- Ensuring that the principle risks associated with CSR activities are known and are being managed
- Liaising with internal audit to ensure that the management information systems has the appropriate assurances
- What other companies are doing, the KPIs they are using, the type of future-orientated information they are including in their reports and how they are responding to stakeholder issues.
List 5 ways in which a company secretary can support the company in CSR A
(DMAC)
Advising
7. Ensuring directors understand their duties
