12
Race to the Top
F I G U R E 8 . Board-Approved Policies on CSR Issues: Location Analysis
F I G U R E 9 . CSR Policy Implementation Mechanisms
Environmental management
Direct staff reports to board on CSR
Labor rights
Dedicated board member/committee
Corruption
Annual CSR report
Human rights
Internal CSR audit
Community health
External CSR audit
Land rights
CSR performance review for managers
0
20
40
60
80
100
Percentage of sector with board-approved policy Western Europe, Japan, and Australia
United States and Canada
Management incentives for CSR
Developing countries
0
10
A sectoral or regional breakdown does not show widely differing levels of implementation; however, the data do show that the larger the company, the more likely it is to have procedures in place to support its CSR policies. Each of the factors identified in the size analysis apply here as well (see para. 2.1). In addition, such procedures are more common among larger firms because in these firms systems are most necessary to translate board policy into action throughout the organization (see Figure 9). 3.1.2 Change in CSR’s importance over time On average, CSR policies have been in place among respondents for a decade or less. Not surprisingly, land-intensive agribusiness has had the longest history of policies on land rights— 17.8 years on average among the respondents. More recently, advocates for indigenous peoples and land tenure have gained more traction with decisionmakers in the extractive sector. As a
30
40
50
60
70
80
90
Percentage of respondents Under $2.5 billion annual revenue
Policies are important to the extent they are implemented. Another measure of the importance of CSR to MNEs are therefore the resources and incentives they put in place to ensure implementation.
20
$2.5–$14.9 billion
Over $15 billion
result, many firms in the extractive sector have developed board-approved policies on land rights over the last decade (see Figure 10). F I G U R E 1 0 . Duration of CSR Policies
Environmental management
Labor rights
Corruption
Human rights Community health
Land rights 0
2 4 6 8 10 12 14 16 18 Mean years board-approved policy has been in place Agribusiness
Extractive
Manufacturing