GARANTÍA DE ANTICIPO (NO APLICA)
P ÓLIZA DE F IANZA
The rationale for CSR may arise from a variety of influences, some of which are discussed in section 2.3 of the literature review. For the purpose of this conceptual framework these influences or drivers have been grouped into the two sub categories of internal drivers and external drivers. These are presented below in Table 3.1
Internal External Organisational Conditions: Corporate governance Corporate culture Leadership Ethics Strategic incentives: Competitive advantage Reputation management Employee motivation Innovation Risk management Stakeholder expectation/pressure
Legal and regulatory compliance Political influence
NGO pressure Market forces
Table 3.1 CSR Drivers
Whilst businesses can potentially determine which of these factors has the most influence upon their approach to CSR, there will be none that can regard themselves as immune to both. It has been argued that internal drivers are ‘more predictive of sustained progress’ (Mirvis and Googins, 2006) as they allow for a proactive approach to CSR and so businesses can develop appropriate strategies. Those who opt for a more reactive approach allow external drivers to dictate their CSR approach and so may not be privy to the same level of control.
3.3 Development
‘a CSR program must align with the values, norms, and mission of the organization’.
The development stage of the conceptual framework is broad ranging and has been heavily influenced by both stakeholder and enlightened shareholder theories discussed in the literature review. Central components include:
•
alignment of business and CSR goals•
stakeholder identification and weighting•
devising an appropriate CSR strategy•
embedding a culture of CSRAt this stage of the CSR process a business will be looking to manage its impact on stakeholders, the community and the environment (BITC, 2012) and how to develop a correlation between this and the success of the business. The resultant approach will be indicative of the ethics and values by which the business is conducted and these will be reflected in levels of stakeholder engagement, CSR reporting and measurement of impacts. The development stage sets out a clear vision of what CSR means to the business and how if implemented effectively can be for the benefit of all stakeholders (including shareholders). The complete integration of CSR will require it becoming fully integrated into the ‘culture, governance and strategy-development efforts of the company, and into existing management and performance systems’ (McElhaney, 2009, p.33).
The development stage allows businesses to plan their CSR approach against the complexities of their operating environments and so consider the implications of CSR across the full range of business functions and how these impact individually in both a social and environmental context. The growing expectation and changing nature of CSR ensures that the developmental stage is continuously re-visited so as to ensure the integrity of the process.
3.4 Implementation
The implementation stage refers to the ongoing processes and practices undertaken as part of the CSR strategy. The effectiveness of a CSR policy can be largely dependent on value placed on the concept by the leadership of a business and the investment of time and resource which will guide the implementation. It is at this stage that a business demonstrates its commitment to the CSR process and stakeholders can determine whether or not the business is ‘walking the talk’ (Industry Canada, 2012).
The implementation stage of the CSR process can be complicated by the context of the industries and the potential for influence of stakeholder groups and their concerns and objectives. The process can be further complicated by the actions of competitors and the countries and cultures in which they operate (Werther and Chandler, 2010). Whilst each the aforementioned factors can
combine to influence the areas of focus for the implementation stage, the following is a non exhaustive list of common areas of consideration:
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environmental impact•
employee engagement•
health and safety•
supply chain management•
human rights•
operational efficiency•
community involvement•
corporate governance•
transparency and disclosure•
communicationsThe implementation stage takes CSR from planning to reality and so if it is to be successful then the needs and demands of related stakeholders must be met. This process requires a sufficient stakeholder engagement process where clear lines of communication are identified and utilised to ensure the effective monitoring and review of the process
3.5 Review
The review stage of the process allows for the demonstration of the fact that CSR processes and activities are achieving the desired results. The review stage also allows for businesses to manage potential operational and reputational risks whilst also identifying further opportunities that respond to the expectations of stakeholders (Simpson, 2007). As such the review stage of the CSR process facilitates the measurement of areas such as:
• Stakeholder satisfaction and development • Environmental performance
• Brand value and reputation • Potential for innovation • Risk profile
• Performance of the board
• Improvement of organisational systems
• Compliance with legal and regulatory requirements of the organization • Reporting
As well as providing analysis on the effectiveness of process, the review stage provides for comparison with third party guidelines and frameworks such as the Global Reporting Initiative and the ISO 26000 Guidance Standard on Social Responsibility as described in section 2.15 of the literature review.
The review stage, if effectively implemented, ensures the integrity of the CSR process and demonstrates a commitment by the business to respond to the increasing complexities of the contexts in which they operate where stakeholder concerns have the potential to evolve into critical strategic issues.