What is Corporate Social Responsibility and Why is it Important

Presented by: Brandolon Barnett, MA Lond, FrontStream

About FrontStream

FrontStream offers payment processing, fundraising, employee engagement and CRM solutions that enable

clients to increase revenue through mobile, in-person and online acceptance of checks and credit/debit cards.

#FSWebinar

Corporate Social Responsibility:A Primer

Corporate Social Responsibility (CSR)

• A corporation’s overall responsibility to the community and to people, profits, and the planet.

• A relatively new and quickly growing field of thought and endeavor that broadens the scope of a company’s commitment to the world.

• A legacy for corporate immortality!

“To build and sustain brands people love and trust, one must focus on […] growth that is good for our shareholders but also good for our consumers, our employees, our business partners, the communities where we live and work, and the planet we inhabit”

Irene B. Rosenfeld, Current CEO Mondelēz International, Former CEO of Kraft Foods

The Roots of Corporate Social Responsibility

A synthesis of various movements• Let’s help our local community• Jeans Fridays• Energy efficiency or environmental

monitoring activities• Sponsoring workforce training in the community• Good PR!

The Foundation: Your Company’s Values

Your company’s values statement detailing the impact you ideally want your company, in all its activities, to have on your communities and the wider world

– Includes your products, services, and operations– Flows from your industry– Comparable to a corporate “mission statement”

Frameworks for CSR ActionLargely speaking, CSR is increasingly streamlined, comprehensive, and metric-driven. Some popular frameworks driving action include:

– Global Reporting Initiative– ISO 26000– UN Global Compact (largest international

CSR agreement)

UN Global Compact

– Strategic policy initiative for businesses committed to aligning their operations with ten universally accepted principles in the areas of Human Rights, Labor, Environment, and Anti-Corruption.

– Calls to action on various issues– Tools and resources such as “A Guide to

Traceability: A Practical Approach to Advance Sustainability in Global Supply Chains”

The Core Facets of CSR

– Sustainability/Environment

– Legal compliance (Respecting Human Rights, Labor Laws, product regulations, etc.)

– Balanced, fair, and nimble HR processes

– Employee well-being

– Corporate/foundational giving

– Workplace giving and volunteering

Sustainability

– Energy efficiency– Water use– Building and land use practices– Waste– Transport– Mitigating initiatives

Supply Chain Management

– Sourcing of materials/inputs– Treatment of participants within the

supply chain

Legal Compliance

– Corruption – Diversity issues– Financial practices– Labor laws– Security practices

HR

– Employee benefits– Pay levels– Turnover rate

Employee Well-Being

– Employee satisfaction– Career development opportunities

Corporate/Foundational Giving

– Community donations & sponsorships– Partnerships with non-profits domestically

or abroad

Workplace Giving and Volunteering

– Employee volunteer hours– Employee board placements– Employee giving– Matching grant programs

Tieing Concepts Together with Workplace Philanthropy as Example

Workplace philanthropy largely falls under the “Indirect Economic Impacts” category of popular strategic frameworks like the GRI.

Successful programs are not one size fits all. A successful program has multiple interfaces for employee engagement

with the program. Traditional workplace giving Volunteer days/volunteer time Recycling events Peer to peer fundraising Disaster assistance and relief Company product donations

Case Study – Software Solutions Client B

10%

90%

Client C 2013: Global Reach

International Domestic 2010 2011 2012 2013

110 110

143173

Client C 2010 – 2013: Escalating Global Commitment for Em-

ployees

Community Fund12%

Houses of Worship

2%

Public Benefit Foundations &

Centers58%

Health8%

Human Services14%

Other6%

For Software Solutions Client B, 10% of the charities employees supported were international in scope. The company’s global commitment has also escalated year to year.

Client B, as a “UN Global Compact” signatory, has committed to meeting strong anti-corruption and fraud standards. FrontStream vetting and Patriot Act compliance processes helped them to meet and measure their commitment to this goal.

Client C 2013: FrontStream Campaign NPO Breakdown

The Who, the How, and the Why of CSR

The Who

At small and medium sized businesses CSR is more often an informal process driven by employees working in a segmented fashion:

– Owner/CEO decides to sponsor a local run

– Facilities manager conducts an energy audit

– HR director secures new benefits and prepares anti-discrimination policies

– Employee organizes volunteer day at local food bank

– Owner agrees to match funds provided to a cause near and dear to a current employee

At larger corporations a dedicated staff with titles which could include:

– Community Affairs Director– Community Relations Manager– CSR Director/Specialist– Supply Chain Manager– Sustainability Manager– Public Affairs Manager

The How

– A collection of expert vendors

– Set goals, budgets, and expectations

– Prepare and communicating new policies and procedures

– Discover your potential to add value to community efforts

– Measure your impact

The Why

– Efficiency reduces costs

– Ensuring the long-term future of practices, products, and processes

– Attracting talent and investments in a world that values sustainable practices

– Avoiding lawsuits and other costs

– Community goodwill which can be of use in later ventures i.e. procuring land or subsidies

– Socially beneficial and simple to implement

Implementation

Asking the Right Questions1. Is CSR relevant to my company? 2. If so what are our core values?3. Where and how does it make sense for the company to make a

socially responsible investment? 4. What kinds of socially responsible investments is my company best

positioned to make?5. What are CSR best practices and their impact on corporate goals

such as retention, employee satisfaction, and corporate reputation?6. How might FrontStream or other partners help with all of the

above?

Conceive and Initiate

Mobilize Your Triple Bottom Line Conception: People, the Planet, and Sustainable Profits

Adopt a framework as a guide for your initiatives.

Incorporate cause marketing into your program to associate your efforts with your company, products, and brand.

Who Has the First Question?