Conducting a CSR Assessment

While frameworks and suggestions for implementation of corporate social responsibility (“CSR”) do vary, there is almost no controversy that in order to make informed decisions about the content of a new CSR initiative, or changes to an existing program, the board of directors and members of the senior management team must engage in a rigorous assessment process in order to obtain an accurate picture of the current state of the company’s efforts and activities with respect to economic, environmental and social responsibility.  The assessment process will rely on a variety of tools and actions including internal surveys, stakeholder engagement and reviews of publicly available data for peer organizations (e.g., corporate websites, annual reports and CSR reports).  Assessments can be done using internal resources or organizations can turn to outside consultants for assistance.  In either case, reference can be made to one or more of the formal procedures that have been developed to assess the level of an organization’s responsibility such as SA8000, AA 1000 and ISO 26000.  There is no universal template for conducting a CSR assessment, and how information is collected depends on organization-specific factors such as available resources, products and services and the legal and other external environment, however, key elements of an effective assessment include: assembling a skilled and experienced working group, developing a working definition of CSR; identifying legal requirements; reviewing corporate documents, processes and activities; and identify and engaging key stakeholders through interviews, surveys and observation.  Assessment should be seen as a continuous process, which means information and results should be carefully inventoried in order to provide a foundation for new inquiries in subsequent planning periods.

Wondering how to get started? Consider using the following basic questions suggested in a publication financed by the European Union and United Nations Development Programme.

Governance

1.             Does the company identify its main economic, social and environmental impacts?

2.             Does the company have a CSR strategy that defines its commitments to CSR?

3.             Does the company have designated senior personnel with a clear responsibility for CSR?

4.             Does the company link corporate responsibility issues to people’s performance reviews and appraisals across the company?

5.             Does the company define key CSR priorities and communicate them throughout the organization?

Environment

1.             Does the company have action plans and programs to lower its environmental impacts?

2.             Does the company maintain a monitoring system, measuring the main environmental impacts, especially resource usage and carbon emissions?

3.             Does the company have a training program in place to help employees implement its environmental policy and action plan?

4.             Can the company show a quantifiable reduction in carbon emissions from the previous years?

5.             Does the company have a recycling program?

Labor Relations

1.             Does the company have an action plan regarding labor/human resources and evaluate it on a regular basis?

2.             Do the employees have official representation in the company?

3.             Does the company have processes to prevent recurring problems regarding health and safety issues?

4.             Does the company have plans in place to mitigate the adverse impacts of job reductions?

5.             Does the company have an effective grievance procedure?

Community Relations

1.             Does the company have a community engagement action plan?

2.             Does the company engage in regular dialogue with its stakeholders?

3.             Does the company actively participate in CSR associations and forums and/or engage with any local NGOs?

4.             Does the company offer volunteering time, invest in or support any local community initiatives?

5.             Does the company offer apprenticeship schemes to facilitate skills development within the local community?

Business Environment

1.             Does the company assess significant suppliers and contractors on human rights, health and safety, anti-corruption and environmental practices?

2.             Does the company engage in green procurement practices?

3.             Does the company have rules and procedures to analyze and counter bribery and corruption practices?

4.             Does the company have a policy and procedure for making its lobbying efforts transparent?

5.             Does the company train its staff on ethical supply chain measures and anti-bribery and anti-corruption measures?

This is an excerpt from the author’s forthcoming book on Strategic Planning for Sustainability to be published by Business Experts Press in Fall 2020. For further information see the website of the Sustainable Entrepreneurship Project.

Source: CSR Self-Assessment Handbook for Companies (Vilnius, Lithuania: UAB “Baltijos kopija” (Financed by the European Union and United Nations Development Programme), 2010)