Corporate Training Magazine

Roadmap to CSR Implentation
Vol 2 Issue 6- Nov 2006

By Jenna Avennet

While each company is unique in its characteristics, circumstances and views on social responsibility, the process of implementing CSR is most effective when approached systematically.

"There is considerable value in proceeding with CSR implementation in a systematic way--in harmony with the firm's mission, and sensitive to its business culture, environment and risk profile, and operating conditions," stated Dr. Kernaghan Webb of Industry Canada.

In firms that are already engaged in customer, employee, community and environmental activities, CSR can be phased in by focusing on priorities in accordance with resource or time constraints. Alternatively, more comprehensive and systematic approaches can be pursued when resource and overall priorities permit or require.

"Either way, the bottom line is that CSR needs to be integrated into the firm's core decision-making, strategy, management processes and activities, be it incrementally or comprehensively," said Webb.

A well-defined CSR implementation framework integrates economic, social and environmental decision-making throughout a firm--from the board of directors to front-line officials and contractual supply-chain partners--and is therefore connected with effective corporate governance. A properly governed firm can reap optimal benefits for itself and its shareholders, and in turn for those who are affected by the firm's actions. Adequate direction and control of activities and assets--at all levels of the firm--is crucial to its success and overall ability to operate.

This has led to the call by industry associations, investors, governments and others for enhanced transparency and disclosure, and more rigorous corporate governance standards. There are also calls for boards of directors and senior managers to consider the societal impacts of their firm's activities, given that those affected have the potential to significantly impair or enhance a firm's ability to create wealth.

In this way, the notion of corporate governance is expanding to include some of the broader elements of CSR. In particular, there is a need for corporate decision-makers to consider the effect of firm-society interactions on performance, to develop appropriate responses that minimize harmful social and environmental impacts and optimize opportunities, and to measure and disclose progress in this area. This implementation framework has five stages.

Plan
This first stage has two main components:

Conducting CSR assessments
Before you can move forward with any action, you first have to identify where you are now and what you want to achieve. The initial task is to assemble a CSR leadership team and develop a working definition of CSR for your organization. From here, review company documentation, processes and activities to determine what the company is already doing and how well in line this definition is with current practices. It's also important at this early stage to identify and engage key stakeholders.
Developing a CSR strategy
Both management and employee support is needed at the strategy development phase, as is researching the marketplace to see what other companies are doing. With this data in hand, it's time to identify possible options, develop their respective business cases and ultimately decide on a direction for your CSR initiative.

Do
In terms of developing and implementing CSR commitments for your organization, it's best to begin by reviewing current commitments and consulting major stakeholders. From this, a draft plan can be prepared and reviewed again with stakeholders to create a finalized list. This will allow you to prepare a CSR business plan that sets measurable targets and identifies performance measures. At this point, CSR training for management and employees can be developed and conducted. Communications plans should also be established, both internally and externally.

Check
Once programs are running, performance should be measured against the targets established in the planning and implementation stages to ensure that goals are being met. These results can then be reported to stakeholders.

Improve
Once performance evaluations have been conducted, you can identify areas where there is room for improvement. This process can also uncover new and expanded opportunities.

Cross-check
Like any business element, corporate social responsibility is a continually evolving process, and it's important to return to the planning stage to start the next cycle in your CSR development..