IMPLEMENTING A CSR APPROACH
THE IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY
Ing. Pavel Adámek, Ph.D.
CORPORATE SOCIAL RESPONSIBILITY/PEM-NACSR
IMPLEMENTING A CSR APPROACH
OUTLINE OF THE LECTURE
1. The key potential benefits for organisations implementing CSR
2. The basic aspects of CSR implementation
3. CSR implementation framework
IMPLEMENTING A CSR APPROACH
INTRODUCTION
• There is no one-size-fits-all method for pursuing a corporate
social responsibility (CSR) approach.
• Each firm has unique characteristics and circumstances that
will affect how it views its operational context and its defining
social responsibilities.
• Each will vary in its awareness of CSR issues and how much
work it has already done towards implementing a CSR
approach.
• Many firms are already engaged in customer, employee,
community and environmental activities that can be excellent
starting points for firm-wide CSR approaches.
IMPLEMENTING A CSR APPROACH
INTRODUCTION
• CSR can be phased in by focusing carefully on
priorities in accordance with resource or time
constraints. Alternatively, more comprehensive and
systematic approaches can be pursued when
resources and overall priorities permit or require.
• The bottom line is that CSR needs to be
integrated into the firm’s core decision making,
strategy, management processes and activities.
• There are a number of governmental and
partnership developed initiatives that have
emerged to provide guidance on governmental
and societal expectations of business.
– By using these instruments—such as the OECD MNE
Guidelines or the UN Global Compact—business users
can be confident that they are basing their efforts on
internationally-endorsed approaches.
IMPLEMENTING A CSR APPROACH
IMPLEMENTATION PROCESS
Basic guidance for
the implementation
of CSR
IMPLEMENTING A CSR APPROACH
MEANING OF CSR IMPLEMENTATION
• CSR implementation means that the company shall be
accountable to stakeholders, future generations and the
natural environment.
• An enterprise shall be responsible for stakeholders, motivate
the passion of the stakeholders such as employees,
customers, generating companies, suppliers and communities,
give full play to the transmission capacity of the power grid
and optimization of energy allocation, and guarantee safer,
cleaner, more economical and sustainable energy supply.
IMPLEMENTING A CSR APPROACH
Source: SGCC Guidance for the Implementation of CSR (2008)
IMPLEMENTING A CSR APPROACH
Establishing the Organizational Management System
• The CSR organizational management system is viewed as an
organizing framework and operating procedure that is to serve
and promote corporate commitment in compliance with its social
responsibilities in all operational aspects.
• The CSR Steering Committee has been set up for defining
CSR missions and principles and Implementing a unified
management for CSR activities, with SGCC’s President as
director general and other top executives as deputy directors.
• Committee Members are either the chief of SGCC’s Functional
departments, or the head of subsidiaries. CSR Office has been
set up under the Steering Committee, with Administration Office
handling daily affairs.
IMPLEMENTING A CSR APPROACH
Establishing the Organizational Management System
IMPLEMENTING A CSR APPROACH
Establishing the Organizational Management System
Responsibilities of CSR Office
• Implement decisions and plans
• Coordinate establishment and implementation of
• CSR management system
• Make CSR work plans, propose budget and training programs
• Conduct research on CSR key subjects
• Develop CSR management tools
• Draft CSR Report
• Manage CSR website
• Communicate with counterparts at home and abroad
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Establishing the Organizational Management System
Responsibilities of other departments on CSR
• Identify CSR subjects involved
• Promote dialogues and cooperation with stakeholders
• Undertake CSR tasks
• Organize internal trainings on CSR
• Define job responsibilities, the scope of management system
and work procedures
• Collect CSR statistical indexes
• Work out CSR plans
• Assess CSR performance
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Establishing the Organizational Management System
Responsibilities of CSR Manager in departments
• Assist CSR Office in launching CSR trainings
• Gather and Submit CSR subjects
• Coordinate efforts to draft programs for stakeholders’
participation
• Coordinate efforts to implement CSR work plans
• Collect and submit information on CSR implementation
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Establishing the Organizational Management System
IMPLEMENTING A CSR APPROACH
CSR Daily Management System
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1. THE KEY POTENTIAL BENEFITS FOR
ORGANISATIONS IMPLEMENTING CSR
• Better anticipation and management of an ever-expanding
spectrum of risk.
– Effectively managing governance, legal, social, environmental,
economic and other risks in an increasingly complex market
environment, with greater oversight and stakeholder scrutiny of
corporate activities, can improve the security of supply and overall
market stability.
• Improved reputation management. Organizations that perform
well with regard to CSR can build their reputation, while those
that perform poorly can damage brand and company value
when exposed.
– Reputation, or brand equity, is founded on values such as trust,
credibility, reliability, quality and consistency.
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1. THE KEY POTENTIAL BENEFITS FOR
ORGANISATIONS IMPLEMENTING CSR
• Enhanced ability to recruit, develop and retain staff.
– This can be the direct result of pride in the company’s products and
practices, or of introducing improved human resources practices, such
as “family-friendly” policies (improve employee morale and loyalty).
• Improved innovation, competitiveness and market
positioning. CSR is as much about seizing opportunity as
avoiding risk.
– Drawing feedback from diverse stakeholders can be a rich source of
ideas for new products, processes and markets, resulting in competitive
advantages. For example, a firm may become certified to environmental
and social standards so it can become a supplier to particular retailers.
IMPLEMENTING A CSR APPROACH
1. THE KEY POTENTIAL BENEFITS FOR
ORGANISATIONS IMPLEMENTING CSR
• Enhanced operational efficiencies and cost savings. These
flow in particular from improved efficiencies identified through a
systematic approach to management that includes continuous
improvement.
– For example, assessing the environmental and energy aspects of an
operation can reveal opportunities for turning waste streams into
revenue streams (wood chips into particle board, for example) and for
system-wide reductions in energy use, and costs.
• Improved ability to attract and build effective and efficient
supply chain relationships. A firm is vulnerable to the weakest
link in its supply chain.
– Like-minded companies can form profitable long-term business
relationships by improving standards, and thereby reducing risks.
Larger firms can stimulate smaller firms with whom they do business to
implement a CSR approach.
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1. THE KEY POTENTIAL BENEFITS FOR
ORGANISATIONS IMPLEMENTING CSR
• Enhanced ability to address change.
– A company with its “ear to the ground” through regular stakeholder
dialogue is in a better position to anticipate and respond to regulatory,
economic, social and environmental changes that may occur.
Increasingly, firms use CSR as a “radar” to detect evolving trends in the
market.
• More robust “social licence” to operate in the community.
– Improved citizen and stakeholder understanding of the firm and its
objectives and activities translates into improved stakeholder relations.
This, in turn, may evolve into more robust and enduring public, private
and civil society alliances (relate closely to CSR reputation).
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1. THE KEY POTENTIAL BENEFITS FOR
ORGANISATIONS IMPLEMENTING CSR
• Access to capital. Financial institutions are increasingly
incorporating social and environmental criteria into their
assessment of projects.
– When making decisions about where to place their money, investors
are looking for indicators of effective CSR management.
• Improved relations with regulators. In a number of
jurisdictions, governments have expedited approval processes
for firms that have undertaken social and environmental
activities beyond those required by regulation.
– In some countries, governments use (or are considering using) CSR
indicators in deciding on procurement or export assistance contracts.
IMPLEMENTING A CSR APPROACH
1. THE KEY POTENTIAL BENEFITS FOR
ORGANISATIONS IMPLEMENTING CSR
• A catalyst for responsible consumption. Changing
unsustainable patterns of consumption is widely seen as an
important driver to achieving Sustainable development.
– Companies have a key role to play in facilitating sustainable
consumption patterns and lifestyles through the goods and services
they provide and the way they provide them.
• CSR implementation contributes to raising the capability of corporate
strategy management, improving the quality, thinking pattern and work
style of employees and inspiring their dedication, innovation and team spirit.
It thereof strengthens corporate competence in an all-round way.
• In addition, it is devoted to enhancing interaction with stakeholders to win
their understanding and support so as to forge a harmonious relationship
with stakeholders and shape a good corporate image.
IMPLEMENTING A CSR APPROACH
THE CIRCLE OF THE CSR AND COMMON GROWTH
Important aspects
concern with business
activities and
stakeholders interests –
to realize harmonius
interaction and common
growth.
Source: SGCC Guidance for the Implementation of CSR (2008)
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2. THE BASIC ASPECTS OF CSR IMPLMENTATION
• Well-designed CSR implementation framework integrates
economic, social and environmental decision making throughout
a firm → from the board of directors to front-line officials and
supply-chain partners → and is therefore intimately connected
with effective corporate governance.
• One way in which all businesses of all sizes, and from all
industries, should start the journey towards CSR is by using
stakeholder dialogue.
• The benefits derived from identifying and conversing with all the
groups and individuals that are connected to business are
significant as it is these people that can distinguish the weak
points, strong points, failures and successes of its social,
environmental and economic aspects.
IMPLEMENTING A CSR APPROACH
2. THE BASIC ASPECTS OF CSR IMPLMENTATION
IMPLEMENTING A CSR APPROACH
2. THE BASIC ASPECTS OF CSR IMPLMENTATION
• Depending on the size and activities of a company, its
stakeholders could include:
– Business Partners (employees, suppliers, distributors, service
providers, unions);
– Authorisers (government – legislation and guidance, regulatory
agencies, shareholders, investors, professional bodies, board of
directors);
– External influencers (consumers, clients, public, media, special
interest or pressure groups).
• The real value of corporate social responsibility is that the
concept can enable a business to approach existing objectives
with a fresh perspective and encourage others to view the
business from a new, often more favourable angle.
IMPLEMENTING A CSR APPROACH
2. THE BASIC ASPECTS OF CSR IMPLMENTATION
The general measures and starting points in implementation CSR:
• initiate stakeholder dialogue;
• have a long-term outlook;
• identify parts of existing business aims and policies that show social
responsibility and build on these;
• consider writing some short simple statements of values, aims and
targets that you could aim to fulfil in whatever timescales seem
appropriate and realistic;
• engage with the local community and be more transparent;
• consider ways in which you can implement the CSR in your own
business;
• may consider writing a small report on environmental and social issues
that they have addressed;
• consider your reputation with local government, consumers and
media.
IMPLEMENTING A CSR APPROACH
2. THE BASIC ASPECTS OF CSR IMPLMENTATION
IMPLEMENTING A CSR APPROACH
2. THE BASIC ASPECTS OF CSR IMPLMENTATION
The business you should do:
• CSR audit. CSR is all about the interaction a business has with the rest of
society.
– This means not just core stakeholders such as customers, employees, investors
and suppliers, but includes the wider community. Then ask Does the business
interact with these groups in a way that is responsible? Are practices fair,
honest and open, and do they build goodwill?
• Look at employment practices. Does the company follow enlightened policies
on recruitment, training, health, safety and welfare?
• Look at marketing practices.
• Look at environmental practices.
• Look at community involvement.
• Benchmark. Look for the best examples you can find (not only in your
industry).
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2. THE BASIC ASPECTS OF CSR IMPLMENTATION
The business you should do:
• Understand why you need CSR. Your reputation can affect the
perception of customers, investors, employees and potential trade
partners.
• Explain CSR and counter cynicism. Every manager and employee
should understand the importance of CSR to the business and to
themselves. A properly designed CSR programme will have positive
benefits for marketing, HR, production and key business areas. If
people understand this, they will take ownership and responsibility.
• Explain CSR to your external stakeholders.
• Celebrate success as you pass significant CSR milestones.
IMPLEMENTING A CSR APPROACH
2. THE BASIC ASPECTS OF CSR IMPLMENTATION
And the business – you should not do:
• Don’t make token gestures.
• Don’t apply different standards. Given our global village, moving a dirty
process to a less regulated country or applying vastly different
standards in different parts of the business can seriously harm your
reputation.
• Don’t stand still. Issues change with time, look ahead, take the public
pulse, see what legislators are up to and update the CSR programme
to stay ahead of the game.
• Don’t slide and backtrack. Appoint someone or even a team to ensure
policies are implemented.
• CSR and the issues that drive it are usually irreversible. It is better to
stay ahead and on the right side of key issues.
IMPLEMENTING A CSR APPROACH
2. THE BASIC ASPECTS OF CSR IMPLMENTATION
• As we begin to understand more about how firms react to pressures
for greater CSR, we understand more about their learning stages and
how they translate that learning into action.
•
• Simon Zadek (the founder and CEO of AccountAbility) identify the
five stages of learning that organisatoion go through „when it comes
to developing a sense of corporate responsibility“.
The five stages of CSR learning:
1. Defensive (to deny Responsibility)
2. Compliance (to do the minimum required)
3. Managerial (to begin integrating CSR into management practices)
4. Strategic (to embed CSR within the strategy planning proces)
5. Civil (to promote CSR practices industry-wide)
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3. CSR IMPLEMENTATION FRAMEWORK
Strategy implementation’s top 10 checklist:
1. Commitment of top management
2. Involve middle manager’s valuable knowledge
3. Communication is what implementation is all about
4. Integrate point of view
5. Clear assignment of responsibilities
6. Preventive measures against barriers
7. Emphasize teamwork activities
8. Respect the individuals´ different characteristics
9. Take advantage of supportive implementation instruments
10. Calculate buffer time for unexpected incidents
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3. CSR IMPLEMENTATION FRAMEWORK
• The framework is intended to help boards of directors, CEOs,
managers, employees and others assess a firm’s effects on
society and the challenges and opportunities associated with
taking these impacts into account in decision making and
business activities.
• The CSR implementation framework set out in this guide is built
around the “plan, do, check and improve” model.
• Plan is the first part and in this phase it is important to decide
the organizational working process.
– Clearly define instructions, instruments and approach is crucial in the
preparation phase, since this is the starting point and the organization
should ask themselves were they are going and not were they are right
now. This is done by having a clear vision and the right instructions and
instruments to reach there.
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3. CSR IMPLEMENTATION FRAMEWORK
• Do is the next step of the process where a numerous of actions
needs to be taken. Initially, it is important to conduct a CSR
business plan that can either be integrated with the
organizations overall goals and vision or it can be separately
executed.
– The CSR business plan should contain CSR implementation strategy,
commitments and decision making structures. A CSR commitment
draft should also be prepared and it should include the different CSR
commitments the company decides to undertake.
– A CSR working group with members who are enthusiastic about the
project should be out together. As the implementation goes on it is
important to keep the employees up to date and give them
continuously CSR training.
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3. CSR IMPLEMENTATION FRAMEWORK
• Check is the third part of the implementation model and in this
part the to measure the targets and recognize performance that
has been set up earlier. It is important to report progresses in
order to improve the outcome of the CSR implementation
process. The usage of reward systems is important to keep
employees motivated in the CSR implementation process.
• Improve is the final step in model and in this part is the
implementation evaluated - important in order to improve the
CSR implementation process.
• Communication is important in every phase of the
implementation. To really emphasize the importance of
communication it is shown as an arrow in the model through the
entire process.
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3. CSR Implementation framework
Honen and Potts
implementation
guide
In recognition of the fact that firms are
at different levels of sophistication and
development with respect to CSR, it is
understood that firms may choose to
forego a particular aspect or task
when it has already been undertaken.
When?
Conceptual
phase
What?
Task delineation
How?
Checkpoints on the journey
Plan 1. Conduct a CSR
assessment
• Assemble a CSR leadership team;
• Develop a working definition of CSR;
• Identify legal requirements;
• Review corporate documents, processes and
activities, and internal capacity;
• Identify and engage key stakeholders.
2. Develop a CSR
strategy
• Build support with CEO, senior management and
employees;
• Prepare a matrix of proposed CSR actions;
• Develop ideas for proceeding and the business case
for them;
• Decide on direction, approach, boundaries and focus
areas.
Do 3. Develop CSR
commitments
• Do a scan of CSR commitments;
• Hold discussions with major stakeholders;
• Create a working group to develop the commitments;
• Prepare a preliminary draft;
• Consult with affected stakeholders.
4. Implement CSR
commitments
• Develop an integrated CSR decision-making structure;
• Prepare and implement a CSR business plan;
• Set measurable targets and identify performance
measures;
• Engage employees and others to whom CSR
commitments apply;
• Design and conduct CSR training;
• Establish mechanisms for addressing problematic
behaviour;
• Create internal and external communications plans;
• Make commitments public.
Check 5. Assure and
report on
progress
• Measure and assure performance;
• Engage stakeholders;
• Report on performance, internally and externally.
Improve 6. Evaluate and
improve
• Evaluate performance;
• Identify opportunities for improvement
• Engage stakeholders.
Cross-check 7. One cycle
completed
Return to plan and start the next cycle.
IMPLEMENTING A CSR APPROACH
3. CSR Implementation framework
IMPLEMENTING A CSR APPROACH
SUMMARY OF THE LECTURE
• Implementation is all about communication and communication
is important all along the implementation process, not only
initially but also along the way in order to better evaluate the
process and measure the progress of the implementation.
• It is very important that everyone involved in the implementation
process is aware of why they are doing things and that they
understand the purpose and goal with the process and that the
discussion around the CSR implementation is ongoing and
open.
Recomended study:
– Chandler, Werther, Jr. „Strategic Corporate Social Responsibility“, chapter 5.
IMPLEMENTING A CSR APPROACH
THE TOP 100 COMPANIES WITH THE BEST CSR
(CORPORATE SOCIAL RESPONSIBILITY) REPUTATION
https://youmatter.world/en/top-100-companies-best-csr-reputation2019-28108/