Transforming the intent to action

Transforming the intent to action

Plans are only good intentions unless they immediately degenerate into hard work

Peter Drucker

Developing CSR policyProgram formulation/project designOperational structureImplementation strategy Performance managementCommunicating the impact

Source: classroom-aid.com

Factors contributing to vision

Regulatory Environment

Market Condition

Political Environment

Social Condition

Shareholder Expectation

Employee Interest

Customer Expectation

Community Need

Global Norms and Standards

National Norms and Standards

ValuePurpose

Elements of vision

CSR policy framework

CSR policy - components

Section Sub section Content

Company Information

General Information

Geographic informationSize of companyWho owns the company, shareholders

Economic Impact Turnover – salesNumber of employeesMarket shareProfit

Mission statement

Company objectives linked to CSRMD/CEO statement

Values List company values

Stakeholder consultation

List who the main stakeholders are on whom you have impactRelationships with non- governmental organisations

CSR policy - componentsSection Sub section Content

Workplace

Employees Equal opportunities (race, gender, age, disability) – workforce profile

Health and Safety – policies and trainingTraining/personal developmentCommunication with employees (newsletters, intranet, forums)Pay & benefits – remuneration, pensions, other benefitsWorkplace climate – employee handbookIndustrial relationsHR managementChild labour/forced labourOther (specific company issues)

Marketplace

Customers Customer satisfactionCustomer retentionSafety and qualityAfter salesConsumer education

Suppliers/supply chain

Code of conductSelection criteria (linked to CSR)Support local suppliersPayment of bills on timeBribes & corruptionCreating awareness of CSR

CSR policy - componentsSection Sub section Content

Community

•Charities, sponsorship, donations•In-kind support – time, resources, assets•Regeneration – economic impact, number of jobs•Employee involvement•Impact on society

Environment

Waste Recycling, Waste generated (tonnes or kilos), Hazardous waste, Policies

Water Water used (joules), Control Programmes

Energy Energy used (Kw), Control programmes

Materials Types used, Activities, Recycled materials consumed, Materials recycled

Health & Safety ISO, EMAS, Training, Communication to staff

Transport Green transport plans, Fuel reduction policy, Car fleet

First Group Example

Basic policy elements as per the companies act

AAI Example

Common loop holes of CSR policy

Adaptation of Anders & Winst Company lists of common CSR mistakes

Assumptions

Assumptions

Assumptions

Present State

Desired State

Interventions

Results

Log frame analysis

Log frame approach

Source: http://www.slideshare.net/rexcris/logical-framework-and-project-proposal

Problem analysis


Objective formulation

Objective tree


Strategy formulation


Log frame matrix


Indicator setting


Activity planning


Operational structure

Implementation Strategy

Developing CSR policyProgram formulation/project designOperational structureImplementation strategy Performance managementCSR Communication

Performance management cycle

Measuring performance and impact

Source: Central government: Cost-effectiveness and improving annual reports,, Controller and Auditor General, New Zealand

Measuring performance and impact

Elements of M&E

Why communicate?

Communicating the impact

Key considerations while communicating the impactWhom to communicatedWhat to communicateFrequency of communicationMode of communicationLanguage of communication

Keeping them informed - What to communicate and with who

MarketplaceRaise awareness about the way it operates responsibly in the market

WorkplaceMake a statement about improvements in its workplace policies

Community Convey information about its commitment to the local community

EnvironmentCommunicate about its initiatives that help topreserve the environment

employees, customers; consumer associations; suppliers; businesspartners; and investors

employees; trade unions (if any are involved); the local community; and public authorities

employees; relevant localinstitutions (e.g. associations, schools, hospitals); public authorities; and relevant NGOs

employees; business partners;relevant NGOs; consumers; public authorities and the community around it

Social campaigns - ExampleUnilever’s Lifebuoy Hand washing Campaign

Aircel’s Save Our Tigers Initiative

International Accountability Standards

Corporate responsibility has witnessed emergence of numerous initiatives aimed at standardizing firms’ behaviour with regard to social and environmental issuesIAS intend to

Encourage and guide corporate responsibility Provide ways to assess, measure and communicate organizations’ social and environmental Performance

IAS by categoryPrincipal Based

-Broadly defined principles with regard to social and environmental problems- Used as a guideline for action and starting point for dialog

Certification Based

-Involve certification, verification and monitoring against predefined criteria-degree of assurance that stated standards are actually being met

Reporting Standard Based

-A comprehensive and standardized frameworks for economic, social and environmental reporting- Foster transparency and accountability while at the same time enables comparisons

Process Based

-It focus on the question of how corporate accountability can be achieved- IT offers essential managerial guidance on how corporate accountability can be achieved

Soruce: Dirk Ulrich Gilbert, Andreas Rasche and Sandra Waddock

Principle Based

-UN Global Compact-OECD Guidelines-CERES

Certification Based

-SA 8000- ISO 14001

Process Based

-AA 1000-ISO 26000

Reporting Standard Based-GRI-BBA’s Forge Standard-CERES (Facility Reporting Project)-Green House Gas Protocol for Project Accounting

IAS by category

Reporting formats - NationalBusiness responsibility report – SEBI

The Business Responsibility Reports (BRs) has been made mandatory for top 100 listed entities at BSE and NSE as on March 31, 2012

It helps assess fulfillment of the environmental, social and governance responsibilities

Components of the BR areFinancial details (along with spending on csr as % of profit);

Directors responsible for BR; Principle-wise (as per NVGs) BR Policy/policies; Governance related to BR; Principle wise performance

Reporting formats – Companies ActThe annual report on CSR initiatives to be included in

the board reportbrief outline of the company’s CSR policy including the

statement of intent reflecting the ethos of the company

broad areas of CSR interest and an overview of activities proposed to be undertake

weblink to CSR policy (including the full list ofprojects/activities/programmes proposed to be

undertaken by the company)


the board reportComposition of CSR committeeAverage Net Profit of the company for last 3 financial

yearsThreshold Limit-(2% of this amount as in 4 above)Details of CSR activities/projects undertaken during the

year: total amount to be spent for the year; amount carried forward from earlier years; amount spent during the year as below; amount carried forward for the year

Reporting formats – Companies Act

CSR project/activity identified

Sector in which theProject is covered

Projects/Pgms 1.Local area/others2.specify the state /district(Name of the District/s,State/s where project/pgm was undertaken

Amount outlay (budget) project/pgm wise

Amount spent on theproject/ pgm Subheads:1.Direct expenditure onproject2.Overheads

Cumulative spend up to the reporting period

Amount spent:Direct/ through implementing agency*

*Give details of implementing Agency


the board reportIn case 2% is not spent, please provide the reasons for

not spending the amountA Responsibility statement, of the CSR Committee,

that the CSR policy implementation and monitoring thereof is, in letter and spirit, in compliance with CSR objectives

For further clarification / guidance, email [email protected]

Transforming the intent to action

Business

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