Corporate Social Responsibility - Functional Area 14

Corporate Social Responsibility

represents the org's commitment to operate in an ethical and SUSTAINABLE manner, by engaging in activities that promote and support philanthropy, transparency, sustainability, and ethically sound governance practices
EVOLUTION OF CSR:
- CSR includes a BRO

Triple Bottom Line

A business strategy that includes SOCIAL, ECONOMIC, and ENVIRONMENTAL criteria. Applies the 3Ps principle of sustainability (people, planet, profit) arguing that the environmental and social costs and benefits generated by an org should be considered as w

Economic (typical measures in Trip Bottom Line)

typical area of triple bottom line that measures:
- sales, profits, ROI
- taxes paid,
- monetary flows
- jobs created
- supplier relations

Environmental (typical measures in Trip Bottom Line)

typical area of triple bottom line that measures:
- pollutants emitted
- carbon footprint
- recycling and reuse
- water and energy use
- product impacts

Social (typical measures in Trip Bottom Line)

typical area of triple bottom line that measures:
- health and safety record
- community impacts
- human rights; privacy
- product responsibility
- employee relations

Social Audit

formal review of an org's social and environmental policies and procedures. "A technique to understand. measure, verify, report on and to improve the social performance of the organization
Social Audit Areas include:
- ethics
- staffing
- environment
- hu

Forces shaping CSR

Forces shaping today's CSR are:
- technology: corporate actions are more knowable, and CSR impacts are more measurable
- environmental concerns: increased sustainability regulations, requirements, AND opportunities
- economic pressures: bigger payback pot

CSR Maturity Curve

compliance (tactical response), integration (integrated into regular functioning of business) and transformation (orgs have redefined themselves, their brand to reflect a commitment to CSR

Compliance (CSR Maturity Curve)

the phase of the CSR maturity curve that is a defensive posture. Only doing it because you have to do it, org's heart is not in it. ALMOST HALF THE ORGS ARE IN THIS

Integration (CSR Maturity Curve)

the phase of the CSR maturity curve where CSR is integrated into the regular functioning of the business. These organizations have redesigned their products or services and their processes and procedures to be more responsible and sustainable. LITLLE LESS

Transformation (CSR Maturity Curve)

the phase of CSR maturity curve where these organizations have redefined themselves and their brand, to reflect a commitment to CSR. "Sustainability leaders embed real, measurable, ongoing commitments to sustainability practices as a strategic differentia

HR role in CSR

HR has the opportunity to become a CSR resource for corporate leaders. Key opportunity areas include:
- CULTURE CHANGE
- CORPORATE STRATEGY
- ORG EFFECTIVENESS (interventions)
- HUMAN CAPITAL DEVELOPMENT

Compliance

being in accordance with all national, federal, regional or local laws, regulations, and government authority requirements for all the nations in which an org operates.
- FOCUSES ON FULFILLING THE TECHNICAL REQUIREMENTS OF REGULATIONS

Ethics

a set of behavioral guidelines that an org expects all of its directors, managers, and employees to follow to ensure appropriate moral and ethical business standards.
- FOCUSES ON ACTING ACCORDING TO "CORE ETHICAL BELIEFS AND CONVICTIONS"
Corporate ethica

Ethical Universalism

Concept that argues that there are fundamental ethical principles that apply across cultures, without regard to local ethical norms. STANDARDIZATION

Cultural Relativism

ethical behavior is determined by local culture, laws, and business practices. This states that because cultures vary so greatly, there are no absolutes. Everything varies based on the situation. LOCALIZATION

Ethical Supply Chain Behavior

equals better products, more satisfied customers, more sustainable working communities that support the growth of business
AREAS OF CONCERN:
- workplace safety,
- child labor
- supply chain sustainability

Governance

System of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and its own codes of conduct.
- A THOUGHTFUL ASSESSMENT OF AN ENTERPRISE'S LEGAL, ETHICAL, AND CIVIC O

Sustainability

In a corporate perspective, SUSTAINABILITY takes a long view, aiming at creating a business model, policies, and practices that meet the needs of the present without compromising the ability of future generations to meet their needs.
THREE SPHERES OF SUST

Sustainability Sweet Spot

where sustainability becomes an engine of innovation and a way to identify business opportunities...generating new products, processes, markets and bus models. BUSINESS INTERESTS OVERLAP WITH PUBLIC INTERESTS
EX: Pepsico acquiring Tropicana and Quaker Oat

Sustainability Stakeholders

sustainability has expanded how an organization interacts with stakeholders. SEEKS OUT INTERNAL AND EXTERNAL STAKEHOLDER INPUT THROUGH ENGAGEMENT OPPORTUNITIES AND STRATEGIC SOCIAL PARTNERSHIPS

OECD Guidelines for Multinational Enterprises

Guidelines that promote principles and standards of behavior in the following areas: human rights, information disclosure, anticorruption, taxation, labor relations, environment, competition, and consumer protection

GRI Standards Sustainability Reporting Guidelines

universally accepted standards for reporting results of sustainability programs.
- Adoption improves transparency in reporting results to stakeholders and enables meaningful and consistent comparisons of org's sustainability performance.
- Cover economic,

CSR Strategic Process

1. Executive Commitment
2. Assessment
3. Infrastructure Creation
4. Plan Implementation
5. Measurement, Reporting, and Evaluation
6. Reassessment and Revision

Executive Commitment (CSR Strategy)

step in CSR Strategy process:
- making the business case for CSR. Providing such benefits such as:
- Growth: composition of business portfolio, innovation and new products, reaching new customers and markets. ATTRACTING AND RETAINING TOP TALENT
- Returns

Assessment (CSR Strategy)

step in CSR Strategy process:
Purpose is to:
- provide a detailed picture of where the org is now
- Visualize the direction in which the org can go.
Process is to:
- review org's systems and procedures
- gather input from INTERNAL and EXTERNAL stakeholder

Infrastructure Creation (CSR Strategy)

step in CSR Strategy process:
- involves creating the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy.
QUESTIONS TO ANSWER:
- will there be a single head of CSR?
- will there be a

Implementation (CSR Strategy)

step in CSR Strategy process:
Key tasks here are:
- Set the strategy
- set priorities and objectives
- Implement the action plan created

Measurement, Reporting, and Evaluation (CSR Strategy)

step in CSR Strategy process:
- using GRI standards criteria
- ensure that all objectives have corresponding metrics
- ensure that measurement and evaluation are keyed to specific goals and objectives
- systems must be in place for: Reporting and evaluati

Reassessment and Revision (CSR Strategy)

step in CSR Strategy process:
BASED ON EVALUATION OF RESULTS:
- Revise tactics and strategic goals
- Determine where the org is along the sustainability maturity curve
- Provide the entire org with a clear sense of:
-- PROGRESS ACHIEVED, VICTORIES WON, NE

Implementing a Compliance Program

Compliance programs ensure that codes of conduct are understood and applied to issues as they arise.
Key components are:
- Org leadership and culture
- Training and education
- Disciplinary and preventive measures
- Reporting and investigation
- Monitorin

Corporate Philanthropy

the dimension of social responsibility that includes charitable donations, creating foundations that offer grants and scholarships, strategic partnerships with nonprofits, custom (owned) entities

Employee Volunteerism

private, supported employee, employer sponsored, employer-planned and business integrated (benefits: individual, team, org and business). TYPES OF BENEFITS INCLUDE:
- Individual: recognition employees receive and the skills they gain
- Team: teamwork skil

Values based CSR strategy

The values established create the foundation for ethical decisions. The values-based CSR strategy is the key to all decisions

Shared Value

suggests a win/win approach, creating economic value in a way that also creates value for society by addressing its needs and challenges. Shared value results when organizations build and enhance the local cluster and improve the conditions of those opera

Corporate Shared Value

is a new generation business thinking which enhances the competitive position of the company while at the same time advances the society in which it operates. MORE GEARED TOWARDS SOCIETY. CREATING VALUE WITHIN SOCIETY, ARE INTEGRAL TO A COMPANY'S PROFITAB