SHRM-SCP: Corporate & Social Responsibility

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Global Reporting Initiative (GRI)

Sustainability reporting framework developed among stakeholders. G4 framework provides accepted guidelines for sustainability reporting.

Step 6 Reassessment and Revision

Based on the evaluation of results, tactics and strategic goals should then be revised. It is also useful to continue to think in terms of the sustainability maturity curve. Critical is to have process in place to provide the org w/ a clear sense of progress achieve and victories won

Code of Conduct

Based on values, the CoC is key to the development of good governance. The CoC develops organizational standards for behavior, communicating principles and standards throughout the organization, and training managers and employees in how to apply these standards to common work-related situations. *The CoC can be used as the basis for detailed policies and procedures specific to the organization's regulatory requirements and risks.

Executive Commitment

Buy in at the highest level, showing the CSR value by making a business case is key. CSR strategic benefits include: -ability to attract/retain top talent -innovation and product dev by pursuing sustainability sweet spots -cutting cost on operations/transportation/energy use -increasing brand image value -reducing sanctions w/ increased compliance measures

CSR Maturity Curve: Integration

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. They approach CSR as enlightened self-interest.

Social Audit

CSR reporting is outward facing, but the social audit is primarily a tool for self-evaluation. It is a is a formal review of an organization's social and environmental policies and procedures. Typical audit areas are: Ethics, Staffing, Environment, Human Rights, Community, Society, and Compliance

Factors contributing the reason CSR/Sustainability performance measurement and reporting has become standard in multinational corps

Change in attitudes toward CSR Growing sophistication of data mining and analytics making meaningful collection and analysis possible Standardization of reporting measures through the Global Reporting Initiative (GRI) *CSR is a powerful tool for corporate branding and product differentiation

Compliance vs Ethics

Compliance is being in accordance with all national, federal, regional, or local laws, regulations, and government authority requirements for all the locations in which the organization operates. This often means fulfilling technical requirements as set forth by law. Breeches lead to legal trouble. Ethics is a set of behavioral guidelines that an organization expects all of its directors, managers, and employees to follow to ensure appropriate moral and ethical business standards. Ethical behavior focuses on acting according to "core ethical beliefs and convictions" about "honesty, respect, fairness, and responsibility." Breaches damage public perception and hurt brand image

Consequences of bad governance

Consumer Boycotts Shareholder resolutions - where shareholders form groups and pressure companies to be more sustainable or ethical ect Employee recruitment and retention issues

Evolution of CSR

Corporate social responsibility (CSR) encompasses the varying ways an organization can create value, looking beyond traditional profit measures of revenue and expenses to instead impact nonmonetary assets, such as brand reputation or employee morale. CSR has moved from the periphery to center stage as companies use it to compete for top talent, increase employer brand and expand global reach

Opportunities for HR within CSR

Culture Change Corporate Strategy Org Effectiveness Human Capital Effectiveness

HR Areas impacted by advancing sustainability or CSR

Employee Contract Recruiting Brand Engagement How people work Accountability and Measurement Training and leadership development Pursuing a CSR strategy can enhance the Orgs EVP

Philanthropy and Volunteerism in CSR

Ethical behavior may begin with the directive to "do no harm." But being ethical also involves striving to do positive good. In traditional CSR, that ethical component had a tendency to remain far-removed from core corporate strategies. However, philanthropic efforts and employee volunteerism can become a fully embedded component of a comprehensive CSR strategy—and a key HR initiative

Role of Governance in CSR

Governance is the system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct (GOV. IS TO ENSURE COMPANY IS FOLLOWING IT'S OWN CSR STRATEGY) Good governance emanates from the TOP DOWN. It is the outcome of a thoughtful assessment of an enterprise's legal, ethical, and civic obligations to the communities it serves and the development of systems that support fulfillment of these obligations.

Area's of CSR Value Creation

Growth. Includes "sustainability sweet spot" product innovations, reaching new customers and markets. Returns on capital. Include both savings from carbon footprint reduction efforts and improved sales resulting from "green" marketing efforts, sustainable value chains and operations Risk management. Includes compliance issues as well as effect on corporate reputation and branding. (operational RM, reputation RM, Regulatory RM)

Ethics in the Supply Chain

Here are some specific areas in which organizations find themselves being held accountable for the behaviors of their suppliers: Workplace Safety Child Labor Sustainability *know where each component of each product comes from When all in a supply chain have the same code of ethics, the result is better products and services. This supports the growth of all businesses involved

ISO 26000

ISO 26000 is a quality standard that provides guidance on key themes of social responsibility. It contains principles of social and environmental responsibility as well as guidance for action and expectations for implementation. The standard provides definitions as well as principles and practices that can be used to develop CSR strategies.

Benefits of Volunteerism

Individual benefits, which include the recognition employees receive and the skills they gain Team benefits, which include teamwork skills and the sense of camaraderie employees gain Organizational benefits, which include strengthening of the corporate culture Business benefits, which include an enhanced corporate reputation and strengthening of the brand

B Corporation

International certification program. By meeting the nonprofit B Lab's detailed measures of social and environmental performance, accountability, and transparency, an organization receives certification as a Benefit Corporation. A B Corp is a business that explicitly seeks to blend its social objectives with its financial goals

Corporate Shared Value vs Corporate Social Responsibility

Porter and Kramer contrast (CSV) with (CSR) as traditionally defined. They argue that traditional CSR efforts are too often focused on reputation and only tangentially related to the core business, making their costs too hard to justify and maintain in the long run. CSV efforts, on the other hand, are more supportable because they are "integral to a company's profitability and competitive position."

OECD Guidelines for Multinational Enterprises

Recommendations from OECD member governments, consistent with their laws, to multinationals. Adherence is voluntary and not enforceable by the governments. Covers the following: Disclosure/Human Rights/Employment and Industrial relations/ Environment/combating bribery and extortion/consumer interests/science and tech/competition/taxation

3 ways orgs create shared value

Reconceiving products and markets - is our product good for customers? Redefining productivity in the value chain - By examining each player and process in the value chain—reducing waste, minimizing use of resources, and ensuring the health and safety of workers—organizations can both cut costs and benefit society. Enabling local cluster development - Company sucess is dependent on a cluster of other organizations(suppliers, schools, infrastructure ect) Shared value results when organizations build and enhance the local cluster and improve the conditions of those operating in it, benefiting the organization and its community.

How Sustainable Orgs seek to understand Internal/External Stakeholders

SO's are more likely to form alliances and partnerships with outside stakeholder groups, including nongovernmental organizations (NGOs), community organizations, government agencies, and other companies. They also look to form alliances w/ non profits and gov agencies to gain understanding.

Step 4 Plan Implementation

Set the strategy Set priorities/objectives (These should incorporate a clear sense of how intermediate, tactical steps will lead to long-term objectives. They should also clearly define how results will be measured and who is accountable.) Implement plan SHRM recommends creating a scorecard of HR responsibilities, objectives, priorities, and metrics, together with a clear statement of the business value of meeting each objective.

CSR Maturity curve

Several sources describe an organization's evolving approaches to CSR as moving upward along a maturity curve: from a purely tactical, reactive approach, to a more strategically integrated position, to, finally, redefining core corporate values and goals based upon CSR (ethics and sustainability) principles.

Redefining Sustainability Stakeholders

Sustainability requires that the organization's value be defined by a broader definition of stakeholders. Stakeholders are all those affected by the organization's social, environmental, and economic impact—shareholders, employees, customers, suppliers, regulators, and local communities.

Forces Shaping CSR

Technology - Corporate actions are immediately knowable. Orgs must be on their toes and careful. Advanced data mining and collection has made CSR more understandable. Data privacy is a challenge. CSR has increased individual rights to privacy Environmental Concerns - Climate change has increased gov regulations and reporting requirements. Requireing sustainability efforts Economic pressures - energy efficiency regulations cost $, difficulty finding and retaining skilled workers. This makes CSR more attractive since it can be leveraged to improve corporate brand. Econ pressures can also make corps less willing to finance CSR efforts Sociopolitical forces - civil and social rights movements have changed public opinion and gov poliicies. This has made corps offer family leave/benefits for same sex couples ect

Step 3 Infrastructure Creation

This refers to the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy. HR should be involved to help ensure the org CSR policies will translate to action and to help HR engage at a more strategic level in the org. They can: create ethical management and staff through hiring/education/SUPPLY CHAIN Management Serve as a connection to org communities Progressive dicipline to assist when transgressions occur and impact CSR policy help educate and communicate w/in org

Creating a CSR Strategy

The best starting point for developing and implementing a CSR strategy is gaining a clear perspective of work already done internationally on defining CSR issues and responses. A number of international organizations (found in the following cards) have provided frameworks, templates, and guidance for creating a CSR strategy. Also look at annual CSR/Sustainability reports of other orgs.

Implementing a compliance program: key components

The compliance program, in turn, proactively ensures that all members of the organization understand and adhere to the code and are able to apply it to new situations and issues as they arise To be proactive the program must: Be supported by a corporate culture have comprehensive education providing decision making guidence have ongoing monitoring/auditing and evaluation (ie. compliance audits for supply chain partners)

Triple Bottom Line

The concept of a triple bottom line applies the 3Ps principle of sustainability (people, planet, profits), arguing that the environmental and social costs and benefits generated by an organization should be considered as well as traditional Profit and Loss. TBL has become the foundation for measurement and public reporting of CSR or sustainability performance by multinational corporations. It allows fair and consistent comparisons and evaluations of corporate sustainability performance. TBL can be viewed as the performance measurement of an organization pursuing a strategy of CSR or sustainability (the terms are sometimes used interchangeably); its goal, then, is to achieve a positive ROI (return on investment) in each of the three areas. It can also serve as an organizing principle for a scorecard or checklist of measures for evaluating whether and/or how to pursue a given project so as to meet sustainability goals.

CSR Maturity Curve: Transformation

These organizations have redefined themselves, their brand, to reflect a commitment to CSR. This becomes part of a strategy to differentiate the organization from its competitors. For example, numerous food producers promote their products by focusing on sustainable practices regarding local sourcing (to lower carbon use in transportation), the use of recycled and/or recyclable packaging, the donation of a portion of profits to community projects, and their B Corp Certification

6 Steps in developing/implementing a CSR Strategic Process

This process customizes the basic strategic development process to focus on some unique CSR strategic considerations, but its foundation is the same. The steps may not always be consecutive; some may occur at the same time as others.

Ethical Universalism vs. Cultural Relativism

What is considered unethical and/or illegal in one country may be perfectly acceptable in other parts of the world. In these cases, choosing the right ethical path is especially complex because of differences in cultures, values, business practices, and levels of economic development in countries EU - standardization, there are fundamental ethical principles that apply across all cultures; in other words, they are universally relevant (However, Orgs may find that fundamental principles may be expressed in different ways on a local level, and cultures can prioritize values differently CR - Localization (using this approach an organization may find itself directly violating its core values and thus weakening its ethical character)

United Nations Global Compact

a set of 10 principles that promote human rights, sustainability, and the eradication of corruption

Step 2 Assessment

aims to provide a detailed picture of where the organization is at present and—by "framing" that picture within the context of existing CSR guidances, templates, and initiatives already reviewed—also visualize the direction in which the organization can go 2 components: Review to determine current state/Gathering input from internal and external stakeholders

Sustainability

an organizations social (people), environmental (planet), an economic (profits) goals being aligned

CSR Maturity Curve: Compliance

defensive stance, Social responsibility is seen as a cost of doing business—a tactical response to regulatory requirements or negative publicity. Efforts may be a means of demonstrating good corporate citizenship, but they rarely align—and often directly conflict—with core corporate strategy.

Craux Principles

developed by network of business leaders from Europe, Japan, and United States. based on the concepts of living and working together for common good

Redefining the Bottom Line for Sustainability

in the past CSR/Sustainability seemed like it conflicted w/ corporate finacial goals. Creating shared value helps resolve this. Shared value instead suggests a win/win approach, "creating economic value in a way that also creates value for society by addressing its needs and challenges."

Defining Sustainability (**Note: CSR includes Sustainability...ethics/governance/corporate philanthropy, volunteerism and sustainability)

originally referred to an ecological goal, the preservation of the environment...meaning earth. The definition of environment eventually expanded. Sustainability is a way of mediating competing interests. Orgs sustainability practices are analyzed in terms of Social(people)- involve impacts on health, safety and well being Environmental(planet)- include issues such as the use of resources and release of contaminants Economic(profits) effects recognize that businesses need to be profitable to fulfill ethical obligations to investors The goal is to hit the "SUSTAINABILITY SWEET SPOT" and take action as an organization that fulfills expectations in all 3 categories.

Step 5 Measurement/Reporting/Evaluation

program evaluation must look at: Process evaluation - Its purpose is to monitor which program activities are actually performed and what their outputs are. Outcomes Evaluation - aims to determine the actual results achieved by the program. All measurement and evaluation should be keyed to the specific goals and objectives set in the fourth step. To maintain the business case for the CSR strategy, there should also be clear procedures in place for providing access to results to marketing and other organization functions that can profitably leverage the data

SA8000

social accountability international aiming to help workplaces by developing socially responsible standards in human rights and labor relations in extended supply chains.

GRI (Global Reporting Initiative Sustainability Reporting Standards)

universally accepted standard for reporting the results of an organization's sustainability programs. GRI Standards for each topic recommend how to measure and improve performance. GRI covers Economic/Environmental/Social Standards...each with sub topics


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