Implementing CSR Strategies‐Steps
Current Scenario Assessment
Form CSR Core Gro p / decision making str ct reForm CSR Core Group / decision making structure
Design & implement CSR business plan
S t bl t t & l (SMART)Set measurable targets & goals (SMART)
Engage internal & external stakeholders to whom CSR commitments applycommitments apply
Develop and conduct CSR training
Monitor, Measure & Evaluate CSR initiatives/projectsMonitor, Measure & Evaluate CSR initiatives/projects
Report & Communicate (internal & external)
InstitutionalizeInstitutionalize
Planning & Strategizing
Developing a CSR strategy and policy
Operationalising the institutional mechanism
CSR PROCESSES
strategy and policy institutional mechanism
Due diligence of the implementation
Project Development1 implementationpartner
Project Approval Finalising the i h h
1
2 j pparrangement with the implementing agency
Project Implementation3
Project Implementation
Progress monitoring and reporting4
Impact measurementReport consolidation and
communication5
Critical Implementation Points
Critical Areas:Understand the relevance of CSR in organisational values and missionUnderstand the relevance of CSR in organisational values and mission, vision.Identify key stakeholders and target issues.Engage effectively with stakeholders to undertake dialogue, dataEngage effectively with stakeholders to undertake dialogue, data collection and analysis.Develop a meaningful implementation plan – timelines , KPI.Identify and prioritise key risks and opportunitiesy p y ppSecure the required internal resources and external advice to design and implement strategyDevelop supportive policies, procedures and KPI’s Monitor and evaluate performance.Communicate internally and externally. Go for Certification/external auditsBalance global standards & local cultural differences
Monitoring & Measuring ‐Introduction
Responsible & accountable to stakeholders / improves accountabilityy
CSR Initiative to be assessed & analyzed against corporate strategy – link social performance with financial performance
Measurement of CSR impact for weeding out ineffective initiatives & pursue those leading to stakeholder value maximization – social contract / license to operate/riskmaximization social contract / license to operate/risk management
Complex task with quantitative & qualitative dimensions
Intangibles like employee loyalty, zero day , increased employee performance & productivity, customer /employee/supplier/ investor retention etcinvestor retention etc
Measurement – How & What
Focus on:l k h ld ff
Purpose:For internal complianceInternal stakeholder effects
External stakeholder effects
For internal complianceFor external reportingFor accreditations/
External institutional effects
Measure what matters
certifications & verificationsSelection of measurement tools
Measure fewer things better
Communicate fewer metrics in multiple ways – value dimensions like monetary financial quantitative qualitativelike monetary, financial, quantitative, qualitative
Role of codes, principles, standards & certifications
Need for Monitoring & Measuring CSR Initiatives.
Monitoring is the regular observation & recording of the ongoing activities of a program or project.g g f p g p j
What gets measured gets done.Importance/Benefits:pFor Internal Performance Management & External Reporting
Assess present scenario
Set clear goals
Assess impact
Check for gapsg p
Formulate future plans
Self development process
B t l & S t i ti tiBoost morale & Sustain motivation
Means to inform stakeholders
Reporting Formats
•What, Whom & How
Internal Reporting
Team briefings
External Reporting
Annual reports
Procedural notes
Training sessions
Internal maga ines
Websites
Stand alone reportsInternal magazines
Internal compliance or audit reports
External magazines
AGMs
M di tl tIntranet
Notice boards
Site locations
Media outlets
Corporate videos
Speaking platforms for seniorSite locations
Specific reports
Speaking platforms for senior managers
Some International & National Codes, Standards, Guidelines & CertificationsStandards, Guidelines & Certifications
ILO and its conventions
OECD Guidelines for multinational Enterprises 1970OECD Guidelines for multinational Enterprises 1970
UN Millennium Development Goals
New Companies BillNew Companies Bill
MCA’s National Voluntary Guidelines
DPE guidelines for PSU’s
UN Global Compact‐ 1999
Equator Principles, ISO 26000
Global Reporting Initiative (Triple Bottom Line Reporting)
Certifications: SA 8000, AA1000, ISO 14000 , ISO 9000, LEED
Rating Indices: Dow Jones Sustainability Index, FTSE4 Good Index
Integrated Reporting (IIRC)
Some examples of Mandatory CSR reportingp g
ISO 26000 – (2010) – accepted by 130 countriesISO 6000 ( 0 0) accepted by 30 countries
Financial statement Act 2008, Denmark
L Li it d Li biliti f C i A t 2007Law on Limited Liabilities of Companies Act 2007‐Indonesia
C i A t 2006 UKCompanies Act 2006 – UK
New Economic Regulations Act 2001‐ France
SA‐ JoBerg Stock Exchange ‐ Integrated Reporting
Role of Codes & Standards
Voluntary initiativesVoluntary initiatives
Establish public/stakeholder trust
Mi i f tMinimum performance guarantee
Uniformity of process , procedures & measurement
Universal comparability
Incremental growth in complexityg p y
Sector Benchmarks, Awards
Some Sectoral Initiatives
Forest Stewardship Council : NGO founded in 1993, which promotes responsible management of the world’s forests through forest certification and product labelling
Marine Stewardship Council : Non‐profit organisation set up inMarine Stewardship Council : Non profit organisation set up in 1997 to promote sustainable fisheries and responsible fishing practices
Responsible Care : First developed in Canada in 1995 to addressResponsible Care : First developed in Canada in 1995 to address public concerns about the manufacture, distribution and use of chemicals
J i t UNEP / I d t S t I iti tiJoint UNEP / Industry Sector Initiatives
Ecolabelling
Th kThank youit h h @ [email protected]