Transcript Lecture 25 CSR.pptx

Corporate Social Responsibility
LECTURE 25:
Corporate Social Responsibility
MGT 610
1
Corporate Social Responsibility
Chapter 6
Framework For Rating
Corporate Social Responsibility
2
Corporate Social Responsibility
LEARNING OBJECTIVES
• Understand the importance of CSR reporting
• Create awareness about the various reporting
criteria followed to report CSR
• Understand how conscientious organizations are
committed to the concept of CSR
• Learn from CSR reporting frameworks of various
agencies and organization
3
Corporate Social Responsibility
• CR Index
Developed in consultation with businesses, the CR Index challenges
and supports large organisations to integrate responsible business
practices.
Our approach
It takes the form of an online survey and companies follow a selfassessment process intended to help them identify both the strengths
in their management and performance and gaps, where future
progress can be made. Business in the Community believes that selfassessment is the starting point for action and improvement, but it
independently validates submissions to ensure reliability and
consistency
The CR Index supports companies to:
Identify gaps for improvement and reinforces good practice
Track progress over time and drive continuous improvement
Benchmark performance against peers and leading practice
Engage board members and raise awareness of CR issues internally
4
Corporate Social Responsibility
Participation
Companies can choose to use the tool on either a public or private
basis.
Public participants are included in the annual CR Index ranking and
demonstrate a commitment to transparently improving their social
and environmental performance
Private participation is designed for companies not ready to disclose
their performance and focuses on providing guidance and feedback
help organisations better integrate and improve their CR
performance.
5
Corporate Social Responsibility
The CR Index follows a systematic approach to managing, measuring
and reporting on business responsible business practices, companies
are assessed using the framework below.
Corporate Strategy looks at the main corporate responsibility risks
and opportunities to the business and how these are being identified
and then addressed through strategy, policies and responsibilities
held at a senior level in the company.
Integration is about how companies organise, manage and embed
corporate responsibility into their operations through KPIs,
performance management, effective stakeholder engagement and
reporting.
Management builds on the Integration section looking at how
companies are managing their risks and opportunities in the areas of
Community, Environment, Marketplace and Workplace.
Performance and Impact asks companies to report performance in a
range of social and environmental impacts areas. Participants
complete three environmental and three social areas based on the
relevance to their business.
6
Corporate Social Responsibility
7
Corporate Social Responsibility
The Index supports companies to integrate responsible business
by helping them:
Gap analysis, helping organisations identify both the strengths in
their management and the gaps where future progress can be
made
Benchmarking performance against sector peers and leading
practice from across the CR Index
Tracking progress, reinforcing good practice and driving continuous
improvement
And the CR Index provides a powerful way to engage board
members and raise awareness of material corporate responsibility
issues
8
Corporate Social Responsibility
• EIRIA or Experts in responsible Investment Solutions
EIRIS is a global leader in the provision of environmental, social,
governance (ESG) research for responsible investors.
An independent, not-for-profit organisation, we work to help our
clients develop the market in ways that benefit investors, asset
managers and the wider world.
Our mission is to empower responsible investors with independent
assessments of companies' ESG performance and advice on
integrating them with investment decisions.
EIRIS provides responsible investment services to more than 100 asset
owners, asset managers, banks, stock brokers and governments
around the world - as well as major index providers.
We bring almost 30 years' experience of promoting responsible
investment and helping global investors, consumers, charities and
financial advisers to invest responsibly.
9
Corporate Social Responsibility
Our research is client-driven and designed to allow investors to
compare company performance. We research a range of
environmental, social and governance (ESG) issues and specific
ethical concerns such as involvement in arms or tobacco.
Investors are increasingly factoring ESG performance analysis into
their investment decisions. As a result of this it has become
increasingly important for companies to engage with these issues
and to report on that engagement. Completing our surveys gives
companies an opportunity to provide the most up-to-date and
accurate information on their ESG performance to more than 100
investment institutions.
10
Corporate Social Responsibility
EIRIS is a global market leader and our research is used by a variety
of asset owners and asset managers (including pension funds),
investment banks and charities throughout the world. Over 60% of
the UK's responsible investment funds are managed by our clients.
A not-for-profit organisation, EIRIS does not assess companies'
financial status but looks at their ESG policies and practices. We do
not give overall company rankings but provide assessments on over
150 individual criteria.
11
Corporate Social Responsibility
• Sustainable Investment Research International (SiRi)
Socially responsible investment (SRI) is one of the fastest
growing investment trends
This process has been driven by increasing concerns over the
environmental and social impacts of companies which have
raised consumer awareness and fuelled high-profile NGO
campaigns. At the same time, there has been a growing
understanding of the potential benefits for investment returns
of companies adopting higher corporate social responsibility
standards as a way of both managing risk and identifying ways
of enhancing future performance.
12
Corporate Social Responsibility
With increasing pressure on both companies and
investors to demonstrate that their activities are
sustainable, many markets now have regulations
requiring disclosure and consideration of social,
ethical or environmental issues by investors.
The growth in SRI represents a recognition that
traditional financial analysis and investment
techniques
do not capture the full range of factors of concern
to investors and which increasingly affect company
performance.
13
Corporate Social Responsibility
The agenda of SRI issues is constantly changing as the market
develops, and as our understanding
of how to achieve sustainability evolves. For example, the concept of
stakeholder accountability and
engagement has quickly become a key theme for socially responsible
investors. Equally, the types of
performance metrics that can be used to report on corporate social
performance are undergoing rapid
development.
The SiRi Group’s unique business model, global reach and wealth of
specialist experience enables us
to track market developments globally and identify SRI investment
issues to create innovative solutions
for our clients.
14
Corporate Social Responsibility
• Sustainable Investment Research International (SiRi)
• The SiRi Group has pioneered the publication of detailed
harmonised profiles of the largest global corporations
• These SiRi Global Profiles are researched according to
consistent criteria and in a standardised format using
a stakeholder-based model
• Each Profile contains over 350 data points and associated
analysis, providing unrivalled detail and breadth
of comment. All major stakeholder issues are covered
including community involvement, environmental
impact, employment relations, customer policies, human
rights issues and corporate governance. For each
issue, SiRi describes and analyses the company’s policies,
management systems, reporting standards and
impacts together with particular strengths and weaknesses
15