Corporate social responsibility (CSR) has grown in importance in recent times and, while some organisations stand accused of being more concerned with appearing to be socially responsible than with actually being so, it remains an important consideration for all leaders.
CSR involves an organization striving to be a good corporate citizen by carrying out its functions in a way that has a positive, rather than a negative, impact on stakeholders be they customers, employees, suppliers, the wider community at large or regulators and government bodies. CSR is of relevance to organisations of all sizes.
Given that organisations are involved in many activities, CSR’s many dimensions include:
- Overall governance and ethics.
- Diversity and equality issues.
- Fair and accountable consumer-related practices.
- Effective environmental management.
- Equitable dealings with suppliers.
- Health and safety considerations.
- Open and transparent financial reporting.
- Positive working environment and conditions.
Rather than seeing CSR as something that must be done, you should embrace CSR as a way to run a better, and more profitable, organisation that meets the needs of all stakeholders. The best organisations go far beyond the basic expectations imposed on them under law and see a tremendous return for doing so.
For example, by applying CSR principles in terms of human resources, the return for the business will be greater retention of employees and reduced recruitment costs; through more open and honest dealing with consumers, the spin-off will be increased satisfaction and loyalty;
by putting in place effective environmental programmes, the organization not only will contribute positively to the local environment but will see a reduction in its energy and waste management costs. However, to see such positive outcomes, you must ensure that the principles of CSR filter down throughout the organisation into practical measures:
A starting point for any organisation in seeking to adopt CSR principles and practices, of course, is to integrate its general commitments into its vision, mission and values. Next, you should ensure that a full CSR audit is carried out to help define minimum obligations and then to determine which best practices may be applied.
As part of this, key stakeholders should be consulted to determine their expectations.
Based on the findings of the audit, a CSR policy should be prepared, or CSR principles integrated into existing policies that chart the organisation’s commitments. To implement these policies, a CSR strategy is required, or CSR goals should be integrated into the organisation’s overall strategy, which includes defining specific targets related to CSR.
And, as with any aspect of strategy, clear plans and programmes must be put in place to achieve the goals. This may include actions such as redesigning some employee-related processes, developing and enhancing environmental management procedures, reviewing supplier relationships or updating health and safety systems within the organisation.
Finally, as with any key process, there should be continuous monitoring and measurement not only to determine the impact on stakeholders but also to demonstrate the positive returns generated by CSR for the organisation.
