Corporate Social Responsibility (CSR) sounds pretty self-explanatory, doesn’t it? However, it’s one of the most difficult terminologies for any business to harness.
CSR can be defined as an organisation’s ability to develop a mutually beneficial relationship with the societies in which it operates. Either way, there are a number of areas which – potentially, at least – fall under the CSR umbrella. These include environmental efficiency, Human Rights, diversity, citizenship, shareholder interests, investment, reporting, corruption, supply chain control and sustainable development.
Having environmentally sound protocols within a CSR policy can make a difference to your bottom line. By conserving resources and being environmentally efficient, you can diminish the costs associated with using those resources. Improving your environmental practices might also serve to reduce profit drain and save the company money.
Indeed, a strong CSR policy will actively drive competitive advantage and demonstrate that an organisation has the interests of both society and the environment at the heart of its decision-making.
The benefits of CSR are substantial. They include not only improved financial performance and reduced operational costs but also enhanced brand value and reputation, long-term sustainability, long-term returns on investments and better risk and crisis management. There are the benefits that flow from good relations with the local Government and community, and increased productivity.
Management system standards
Organisations are under growing pressure to maintain the confidence of customers, employees, shareholders and a burgeoning array of other Stakeholders. By establishing a meaningful framework and embedding responsible decision-making into all of its business activities, an organisation has the perfect opportunity to demonstrate Best Practice and ethical trading.
This is where the role of management system standards comes in to play, assessing as they do whether or not minimum standards – in terms of environmental and social practices – are upheld in the workplace.
“Such standards encourage innovation by identifying opportunities for improvement,” suggests Nikki Samme, head of product marketing at BSI Management Systems (UK).
Samme continues: “CSR should be seen by the security industry as an opportunity and not a hindrance, and considered as an integral element of management practice as opposed to being a bolt-on. Management system standards can and do play a vital role in influencing organisations to engage in CSR and embed that concept in the company’s central management processes.” CSR requires that companies approach their business with foresight. They have to consider the consequences and impact of their actions on the local community, their supply chains and their resources. As organisations gradually buy-in to developing sustainable practices for the present, they’re actually securing their smooth transition into the future.
Looking at the environment
“With the environment and social responsibility policies beginning to impact on all stages of the business, from tendering through to recruitment and staff retention, it’s high time to engage with the benefits of certification to environmental management system standards,” explains Vicki Gomersall, product manager for the sustainability portfolio at BSI Management Systems (UK).
ISO 14001 is the internationally-recognised standard for the environmental management of businesses. It prescribes controls for those activities that have an effect on the environment. “These include the use of natural resources, handling and treatment of waste and energy consumption,” adds Gomersall. “ISO 14001 focuses an organisation to be proactive in identifying environmental aspects and impacts, and on driving down risks. In doing so, the company is able to develop more sustainably and benefit from improved operational effectiveness leading to reduced costs and improved profits.”
Gomersall continues: “Certification to an environmental management standard such as ISO 14001 affords the organisation an opportunity to communicate the value of its business, raise understanding and achieve buy-in. The key is to structure any organisational policy around the operational and commercial requirements of the company while at the same time introducing innovative working. Some organisations just embarking on the CSR plan don’t recognise the full potential of standards. They recognise the importance of CSR, but this is often restricted to pockets of their organisation.”
Benefits of ISO 14001
Environmental awareness is just one part of any CSR strategy. However, taking this area as an example, there are some key benefits associated with achieving environmental standard ISO 14001. Competitive advantage, improved supply chain requirement, better response to shareholders, investors and analysts, financial benefits and savings (in relation to insurance and audits, etc), reduced costs of tendering, consistency of operation across sites, assurances that staff are compliant with procedures and easier access to permits required under the new Environmental Permitting Regulations among them.
Furthermore, in a recent survey of all its 14001-certified clients, BSI Management Systems (UK) found that the majority had seen a reduction in costs relating to energy consumption levels. Almost half had witnessed a drop in the cost of waste disposal, and one third a reduction in the costs associated with incidents and accidents.
All have experienced additional credibility in relation to environmental reporting, an improved understanding of – and a better likelihood of compliance with – legislation and a lighter regulatory touch from the Environment Association under OPRA scoring.
“Establishing the carbon footprint of an organisation can often represent the first step in a programme to reduce the greenhouse gas emissions for which it’s responsible,” adds Gomersall. “Carbon footprints are rarely comparable between businesses. However, verification to internationally-recognised standards such as ISO 14064-1 allows organisations to develop a reliable framework for understanding, measuring and then reducing their carbon footprint.”
Greenhouse gas emissions
All sizes of company stand to gain a great deal from quantifying and reducing their greenhouse gas emissions and having the ability to declare an assured, accurate emissions inventory for their business through voluntary carbon footprint verification.
“In many cases, CSR isn’t recognised as a commercial imperative,” chips in Nikki Samme. “However, it’s an increasingly important factor in long-term strategy planning. At the British Standards Institution, our aim is to encourage organisations to embed standards in their management processes and use those standards as a framework for change and continual improvement.”
It’s Samme’s firm belief that certification to a management standard such as ISO 14001 reassures clients that the company has invested time, effort and money in processes and procedures to ensure that what’s delivered is what’s expected. It’s about good business practice, apparently, not just ethics.
Managing carbon dioxide emissions will also prepare companies for impending legislation under the Carbon Reduction Commitment Porgramme (wherein carbon dioxide will be given a monetary value).
Sustainability and the community
The social aspect of CSR covers all of a given company’s Stakeholders. These groups include Governments, NGOs and other organisations, consumers and their families, employees and their families, investors, business partners and local communities.
All of these Stakeholders expect a business to behave responsibly both internally and externally. If these expectations are not met, or at the very least acknowledged, Stakeholders may take action that can damage the long-term success of the business in question.
All-too-often, CSR is regarded as being a supply chain-related matter. A more structured management framework affords an opportunity to consider ethics in line with other areas of the business – such as quality issues, Health and Safety and environmental concerns.
“We believe that investment in the issues of corporate and social responsibility and the environment is not only important for ensuring a better future generally,” opines Samme, “but also in terms of guaranteeing a brighter future for all businesses. In today’s economic climate, it’s not about setting aside specific budgets for CSR. This activity should be part-and-parcel of the day-to-day work individuals carry out across the organisation.”
A message that must hit home.
