Common Environmental Labels
Develop a CSR Strategy A CSR strategy is a road map for moving ahead on CSR issues. p It sets the firm's direction and scope over the long term with regard to CSR, allowing the firm to be successful by using its resources within its unique environment to meet market needs and fulfil stakeholder expectations. p
A good CSR strategy identifies the following: overall direction for where the firm wants to take its CSR work; p the stakeholders and their perspectives and interests; p a basic approach for moving ahead; p specific priority areas; p a time line for action, responsible staff, and immediate next steps; and p a process for reviewing and assuring outcomes. p
How to develop a CSR strategy p p p 1. Build support with the CEO, senior management and employees; 2. Research what others (including competitors) are doing and assess the value of recognized CSR instruments; 3. Prepare a matrix of proposed CSR actions; 4. Develop options for proceeding and the business case for them; and 5. Decide on direction, approach, boundaries and focus areas.
1. Build support with the CEO, senior management and employees p p p The first step in developing a CSR strategy is for the leadership team to report back to senior management (and, where relevant, the board of directors) about the key findings of the assessment and to gauge interest in moving ahead. Quite likely, the assessment will have indicated that several aspects of current operations are vulnerable to external criticism, or that there appear to be real opportunities for synergies or new products in certain areas. The assessment could also have found that current decision making on CSR issues is not well coordinated or that there is considerable interest in specific CSR issues or pressure from certain key stakeholders in these areas.
2. Research what others are doing, and existing CSR instruments Although it is possible for the CSR leadership team, working with other members of the firm, to develop a CSR approach entirely on its own, there is considerable value in drawing on the experience and expertise of others. p Three useful sources of information are other firms, industry associations and CSR -specialist organizations. p
3. Prepare a matrix of proposed CSR actions p With this background it should be possible to create a matrix of proposed CSR actions, possibly set out by environmental, social and economic aspects, although there may be some overlap.
Example of matrix of proposed CSR actions
4. Develop options for proceeding and the business case for them Generating ideas. p Whatever approach is adopted, a useful first step is to come up with ways for the firm to integrate CSR into operations. p Brainstorming sessions could be held with senior managers, employees, key business partners and others.
p p p p What social and environmental activities and initiatives has the firm under-taken already? What strengths, weaknesses, opportunities and threats do these present? What has the firm learned from others that could be helpful? What are the firm’s CSR goals? Where could the firm be in 10 years in terms of CSR activities and outcomes? What are the big social issues and how might the firm help? If the firm is to be a CSR leader, what changes to current practices and products would need to take place? Are there some CSR activities or initiatives the firm could easily undertake now at no or low cost (sometimes referred to as “low hanging fruit”)?
p p p p Are there areas in which CSR changes would have a particularly big impact on the firm and others? What are they and what are the likely impacts? Can the proposed CSR changes be organized into short-, mediumand long-term deliverables? What are the resource implications of these deliverables? Are there any changes to the firm’s structure that would need to occur to implement any of the deliverables? Are there any other obstacles or impediments (e. g. , inadequate training or equipment or inappropriate incentive structures) that might stand in the way of taking a more systematic approach to implementing CSR? If so, what are they? Are there opportunities for cost reductions? What are the potential risks of failing to take into account the broader environmental, social and economic aspects of a business’s activities? and What should be the priorities for action if the firm decides to do more?
Building the business case. p The CSR leadership team can draw on the material generated by the assessment, its research into what others are doing and brainstorming sessions to devise a business case for potential initiatives that show the most promise. p The business case should focus on a number of elements, in light of the firm’s business objectives, methods and core competencies: p
p p possible leverage points (on which particularly large CSR gains can be made); areas in which a firm could potentially gain a competitive advantage; areas in which stakeholders might have particular influence; short- and long-term goals; estimated costs of implementing each option (including that of not doing more on CSR); anticipated benefits; opportunities for cost reductions; broader changes the firm would need to make; any risks or threats each option poses; and implications of each option for new developments.
5. Decide on direction, approach and focus areas Direction. p This is the overall course the firm could pursue or the main area it is aiming to address. For example, an apparel company could decide to emphasize worker health and safety. p A pharmaceutical company could decide to look at developing country health issues. p A forestry company could decide that environmental issues associated with logging are the focus of its activities. p A company moving into new markets might decide that anti-bribery measures are a target area, and so forth.
Approach. p This refers to how a firm plans to move in the direction identified. p For example, a firm might decide to first revise its mission, vision, and values and ethics statements, next put a new code of conduct in place, then communicate with and train employees and, finally, address issues with contractors in the supply chain.
Focus areas. p These should align most clearly with the business objectives of the firm and, hence, are immediate priorities. The focus areas may identify gaps in the firm’s processes, attempt to capitalize on a new opportunity, or address needs of certain key stakeholders. p For example, a financial institution could identify new protections for clients’ personal information or the opportunities for micro-credit, while a food retailer might decide to focus on combating obesity as an immediate objective.
Evaluate and improve p p An evaluation tracks the overall progress of a firm’s CSR approach and forms the basis for improvement and modification. With the information derived from verification and reporting, a firm is in a good position to rethink its current approaches and make adjustments. Evaluation is all about learning. Learning organizations are those whose existence is based on continuous receipt and review of new information and adaptation for sustainable advantage. They do not simply attempt to achieve objectives; they are constantly on the alert to adapt to changing circumstances or to find ways for improving their approaches. An evaluation should involve stakeholder engagement, including comments and suggestions from management, CSR coordinators, managers and committees, employees and outside stakeholders.
Evaluation enables the firm to determine what is working well, why and how to ensure that it continues to do so; p investigate what is not working well and why not, to explore the barriers to success and what can be changed to overcome the barriers; p assess what competitors and others in the sector are doing and have achieved; and p revisit original goals and make new ones as necessary. p
Communication - Why p p By letting people know what you are doing in the area of responsible entrepreneurship, you are providing them with information they want about your company’s values and, about the products or services you bring to the market. In addition, you are setting a positive example for other businesses to follow. Strong arguments have also been made that while big companies are better at communicating about their responsible entrepreneurship, smaller companies actually have more impact, since they are always closer to the communities they serve, and are often more integrally involved in their responsible entrepreneurship activities. If raising awareness about your responsible entrepreneurship efforts has never been a priority, you might want to reconsider. Letting people know what you stand for will not only open the door to potential business benefits for your company; it might even encourage others to get involved.
What can communication do for your business? p p p p For the vast majority of enterprises – big or small – it is clear that regular, effective communications can have a direct and positive impact on the bottom-line, particularly by opening up new business opportunities. Other beneficial results from communicating about your company’s responsible entrepreneurship can include: • higher levels of customer satisfaction and loyalty; • improved company, brand product reputation; • more motivated and productive employees; • better relations with the local community and public authorities; and • increased cost savings.
What is effective communication? p p p Just as there a thousand ways of delivering products and services to customers, there are many ways of delivering business -related messages – the choice of the best route depends on the people you want to reach, your own capabilities and resources and, very often, the subject you want to talk about. Effective communication consists of transmitting information to a target group – such as your customers, consumers or suppliers – that is relevant to both your company’s and the target group’s goals. To give you an idea, a few examples of commonly used CSR communications tools include product labels, packaging, press/media relations, newsletters, issue-related events, reports, posters, flyers, leaflets, brochures, websites, advertisements, information packs, or simply word-of-mouth. In short, effective communication requires whatever it takes to make sure that your target audience really “gets the message”.
4. Who are you talking to? p p A good rule of thumb is that your customers, employees, local community (the wider public) and the local press will be interested to know about initiatives your company takes that show commitment to responsible entrepreneurship. Depending on the initiative you are talking about you should consider informing specific target groups. These will vary, but a bit of common sense (and the list below) will help you decide who exactly to inform. Generally speaking, most companies’ responsible entrepreneurship initiatives fall into four major categories: marketplace, workplace, community or environment.
Marketplace Content p p p Marketplace-related communications should show your business has integrated responsible entrepreneurship into practice. Examples include your company’s efforts to improve: support of local suppliers; and timely payment of bills; customer retention and satisfaction; product safety; quality of product/service; disclosure of information, labelling and packaging; fair pricing; marketing and advertising ethics and consumer rights; after-sales service and consumer education; criteria for selecting business partners; working and living conditions and human rights issues in developing countries where you may source raw materials.
Workplace Content p p p Workplace-related communications should centre on new or innovative actions taken by your company such as the improvement of working conditions, pay, benefits or increased job creation. Examples include actions to improve: job satisfaction; health and safety; and staff training and development; equal opportunity employment and diversity; the work/life balance (flexible hours, balancing family and work, etc. for your employees).
Community Content p p p Community-related communications should concentrate on any company-supported volunteer activities by owners or employees, charitable donations or sponsorships and ways in which the company promotes economic regeneration. Examples can include your company’s efforts to improve: social integration (ethnic tolerance and social cohesion); community healthcare or education; quality of life (sports/culture); the local infrastructure; and security.
Environment Content Environment-related communications should demonstrate ways in which your company takes actions that protect the natural environment. p Examples include your company’s initiatives that: p increase energy or water conservation; reduce air and water pollution; reduce use of hazardous chemicals; maintain biodiversity; and reduce waste generation and hazardous waste. p
Module task strukture! 1. Defenitions of CSR p 2. Standards of CRS p 3. Decribe CSR issues in different fields of activity (mainly employee-related) p
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