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Corporate Social Responsibility: An Implementation Guide for Business
1. Develop an integrated CSR decision making structure Although every firm is different, each has a decision making structure in place to ensure that it can meet its commitments and customer needs. The key question to ask here is, “given the firm’s existing mission, size, sector, culture, way of organizing its affairs, operations and risk areas—and given its CSR strategy and commitments—what is the most effective and efficient CSR decision making structure to put in place?” It is essential that the firm align and integrate its CSR goals and decision making with its overall goals and strategies, so that taking CSR considerations into account in corporate decision making becomes as natural as taking customer perspectives into account. Some firms will prefer a centralized CSR decision making structure, others a de-centralized one, while still others will want a hybrid, depending on their operating features and management style. There is no single way of organizing a firm’s CSR decision making. This guide emphasizes the importance of senior management buy-in from preliminary CSR assessment to strategy and commitment development. It is not likely, therefore, difficult to identify people or committees at the top levels of the firm who will assume key CSR decision making responsibilities. Given that CSR is fundamentally concerned with transparency, accountability and performance, it is important for the CSR decision making structure to be an integral component of the firm’s governance activities and to be visible. It should also be accountable throughout the organization, from the board, CEO and senior levels, supported by coordinated cross-functional decision making and specialized staff expertise. It is important to develop the CSR decision making structure with a view to the appropriate level of internal and external verification that will be needed. Assigning CSR responsibilities to board members ensures that CSR issues will receive the attention they deserve, and as a result, form a strong basis for an effective chain of CSR accountability within the organization—all of which supports the board’s corporate governance function. There are several options for board participation: a sitting board member could be tasked with the broad responsibility for overseeing CSR activities; a new member who has specific CSR expertise could be appointed; CSR responsibilities could be added to the work of existing board committees; a new CSR board committee could be formed; or the entire board could be involved in CSR decisions. A senior official or committee responsible for overall CSR implementation within the firm should be identified and given the resources to do the job. Particular departments having CSR responsibilities (e.g., environmental, health and safety protection, worker relations, supplier relations, community relations, and customer relations) will likely report to the senior official or committee. CSR responsibilities—and incentives—should be built into employees’ job descriptions and performance evaluations.
2. Prepare and implement a CSR business plan The decision making structure identifies who is responsible for CSR decision making and action within the firm. These people play key roles in developing and implementing the CSR business plan, which should flow from the CSR strategy and commitments. The CSR business plan may be separately described or included as part of the firm’s existing overall business plan. With the strategy, commitments and decision making structures in place, the CSR business plan helps ensure that the words are transformed into effective action. An excellent way of doing this is to determine what human, financial and other resources and activities will be required to carry out the CSR strategy and commitments.