CSR
What does CSR stand for?
CSR stands for Corporate Social Responsibility, which is a self-regulating business practice that measures the impact of an organization’s activities on society and the environment.
This is achieved through transparent and ethical behavior that:
- Contributes to sustainable development, including the health and welfare of society
- Acknowledges the expectations of stakeholders and customers
- Complies with applicable laws and is consistent with international norms
- Applies to the entire organization and is reflected in relationships with external stakeholders
Who is responsible for Corporate Social Responsibility implementation?
Procurement titles, suppliers, management, employees, and stakeholders all contribute to implementing CSR standards within a company. Successful CSR implementation takes place at all levels within a company, and every job title has its own duties regarding Corporate Social Responsibility.
Why is CSR important for companies?
CSR goes hand in hand with sustainable sourcing and helps:
- Support and respect the protection of human rights, ensure your business is not complicit with any abuses throughout its operations and seek to eliminate all forms of forced labor;
- Promote equality and eliminate discrimination in employment;
- Determine responsibility for the environmental impacts of your business;
- Implement strict ethical business practices, including anti-corruption measures, responsible marketing, and whistle-blower mechanisms;
- Embrace transparency and report on your company’s CSR progress;
- Extend this responsibility to your supply chain and ensure these principles are upheld by your suppliers, partners, distributors, and other third parties.
What should companies expect from CSR implementation?
The Six Core Subjects Identified by ISO 2600:
- Human rights
- Labor practices
- The environment
- Consumer issues
- Fair operating practices
- Community Involvementand development
Thourough CSR implementation will address these topics, but, most importantly, conduct regular audits and evaluation, in order to continue to grow sustainably and responsibly.
CSR practices for mid-sized to corporate companies
- First, establish a CSR management system by creating the necessary policies, operational action plans and reporting mechanisms for activities that span all CSR themes. It is important that these policies are defined, have adequate resources for implementation, and have relevant KPIs to enable the tracking of progress and reporting of results.
- Next, gain the support of executive-level management to ensure the policies are communicated throughout the company.
- After that, task a CSR expert at the decision-making level with managing policy development and implementation.
- Then, spend time developing relationships with all stakeholders (shareholders, employees, non-governmental organizations, partners, customers, etc.).
- Lastly, integrate these policies into regular reporting cycles and channels.
Key takeaways
- CSR started in the 1970s in the United States, but companies have gradually shifted their approach from “doing less harm” to actively trying to benefit the environment and the communities in which they operate.
- Investors, stakeholders, employees, and customers are increasingly recognizing the importance of CSR, and companies that demonstrate these principles will continue to thrive as we move toward a more usstainable future.
CLICK HERE to learn more about the EcoVadis CSR Rating Methodology