CSR Flashcards
What is CSR?
Encompasses the varying ways an orgz can create value, looking beyond traditional profit measures of revenue and expenses.
Evolution of CSR
- CSR includes a broader range of a decision on a broader field of stakeholders
- Attention to CSR has moved from the corporate periphery to center stage
- Integrated into the orgz mission and core business strategies
Triple Bottom Line
A term coined by John Elkington–Applies the 3Ps principle of sustainability (people, planet, profits), arguing that the environmental, social costs and benefits generated by an orgz should be considered as well.
Triple Bottom Line as Sustainability Tool
Economic-Profit
Environmental-Planet
Social-People
The 3P can be viewed as the performance measurement of an orgz pursuing a strategy of CSR, its goal, then, is to achieve a + ROI in each area.
Social Audit Areas of Examination
- Ethics
- Staffing
- Environment
- Human Rights
- Community
- Society
- Compliance
Forces Shaping CSR (Technology)
- Corporate actions are immediatley known worldwide
2. CSR is readily measureable and understandable
Forces Shaping CSR (Environmental Concerns)
- Increased government regulations and requirements
2. Increased economic return on sustainability
Forces Shaping CSR (Economic Pressures)
- Bigger payback potential for sustainability efforts
2. Enahanced value of CSR to EEs
Forces Shaping CSR (Sociopolitical Forces)
- Increased pressures from civil and social rights group
2. Evolving environmental concerns
CSR Maturity Curve
Compliance:a defensive posture
Integration: CSR is integrated in regular functioning of the business
Transformation: orgz have redefined themselves, their brand, to reflect a commitment to CSR
International Certification Programs
- B Corp: measures of social and evironmental performance, accountability, and transparency, an orgz receives the B Corp certificate
- OECD: Sets up framework to ensure you are doing CSR properly.
CSR Responsibility and HR
HR has the opportunity to become a CSR resource for corporate leaders
- Culture change
- Corporate strategy
- Orgz effectiveness
- Human capital development
Compliance
Compliance is being in accordance with all national, federal, regional, or local laws, regulations, and government authority requirements for all the locations in which the org operates.
*Fulfilling technical requirements as set forth by law
Ethics
Behavioral guidelines that an orgz expects all of its directors, managers, and EEs to follow to ensure appropriate moral and ethical business standards.
*Core ethical beliefs and convictions
Ethical Universalism v. Cultural Relativism
Ethical Universalism: fundamental principles that apply across cultures and that global orgz must apply these principles when making decisions in a country w/o regard to local ethical norms
Cultural Relativism: ethical behavior is determined by local culture, laws, and business practices
Ethics in the Supply Chain
Ethical supply chain behavior means better products, more satisfied customers, and more sustainable working communities that support the growth of business
Focus Areas for Supply Chain Ethics
- Workplace Safety
- Child Labor
- Sustainability
Governance
Rules an orgz puts in place to ensure compliance with local and international laws, accouting rules, ethical norms, and environmental and social codes of conduct.
Sustainability
The preservation of the environment–projects undertaken by an orgz were considered sustainable to the extent that they minimized the negative impact on the environment
Three Spheres of Sustainability
Sustainability:
- Environmental
- Economic
- Social
Sustainability Sweet Spot
That place where an action can fulfill expectations in all three categories (economic, environmental, social).
Sustainability can become an engine of innovation and a means of identifying business opportunities–new products, processes, markets *PEPSI
Sustainability Stakeholders
Employees Managers Exec's Internal Departments Consumers, Vendors, General Public, Regulators, Communities, etc
*A sustainable orgz seeks out internal/external stakeholder input in order to understand stakeholders’ expectations and concerns and to benefit from their ideas and suggestions
OECD Guidlines for Multinational Enterprises
Voluntary recommendations from member governments.
*Derived from ILO
GRI Standards Sustainability Reporting Guidelines
The GRI is a reporting standard of sustainability program results.
*Adopting this improves transparency in reporting results to stakeholders and enables meaningful and consistent comparisons of orgz sustainability performance
ISO 26000
A quality standard that provides guidance on social responsibility
SA8000
CSR certification standards focusing on human rights and labor relations
CSR Strategic Process
- Executive Commitment
- Assessment
- Infrastructure Creation
- Plan Implementation
- Measurement Reporting, and Evaluation
- Reassessment and Revision
CSR Strategic Process 1. Executive Commitment
- Growth: Includes sustainability sweet spot product innovations
- Returns on Capital: Include both savings from carbon footprint reduction efforts and improved sales resulting from green marketing efforts
- Risk Mgmt: Includes compliance issues as well as effect on corporate reputation and branding
CSR Strategic Process 2. Assessment
- Purpose:
- Where the orgz is now
- Visualize where to go - Process:
- Review orgz systems and procedures
- Gather input from internal and external stakeholders
CSR Strategic Process 3. Infrastructure Creation
Creating the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy.
CSR Strategic Process 4. Plan Implementation
- Set up the strategy
- Set priorities and objectives–how to intermediate, tactical steps will lead to long term objectives–how results will be measured and who is accountable
- Implement the action plan created
- Create a compliance program to ensure all members understand and adhere to the code
- Have training & education
- Reporting & Investigation
CSR Strategic Process 5. Measurement Reporting, and Evaluation
- Using GRI standard criteria as a basis, ensure that all objectives have corresponding metrics and that a complete reporting and evaluating infrastructure is in place.
- All measurements and evaluations should be keyed to the specific goals and objectives set in the 4th step
- Clear procedures in place for providing access to results to marketing and other orgz functions that can profitably leverage the data
CSR Strategic Process 6. Reassessment and Revision
Based on Evaluation of Results
- Revise tactics and strategic goals
- Where is the orgz along the sustainability curve?
- Provide the entire org with a clear sense of: victories won, progress achieved, next steps needed
Effect on HR Function
Advancing Sustainability lists seven areas that will be affected:
- Employee Contract
- Recruiting
- Brand
- Engagement
- How ppl work
- Accountability and measurement
- Training and leadership development
Triple Bottom Line Considerations
- Reconciling products and markets (better product 4 ppl)
- Redefining productivity in the value chain (reduce waste)
- Enabling local cluster development (localization/community)
Philanthropy
Can take many forms–all of which can be strategically aligned with an orgz’ CSR and business strategy:
Make charitable donations
Form foundations to award grants
Form strategic partnerships w non profits
Create its own entity to provide community service
Volunteerism
Four types:
Individual benefits
Team benefits
Orgz benefits
Business benefits
