Business Performance Improvement Resource

BPIR Best Practice ReportBusiness Excellence Series

Volume 1, Issue 6

Leadership: Corporate Social Responsibility

Why spend time re-inventing the wheel when you can learn from the experience of others?

@BPIRcom

Business Performance Improvement Resourcesupporting your quest for excellence

The TRADE Best Practice Benchmarking Methodology(the latest version is available at BPIR.com)

www.coer.org.nz/apply/trade-best-practice-benchmarking

The International Best Practice Competition and Organisation-Wide Innovation Award(hundreds of best practice award videos and case studies are available at BPIR.com)

www.bestpracticecompetition.com

The Global Benchmarking Award(dozens of benchmarking award videos and case studies are available at BPIR.com)

www.globalbenchmarkingaward.com

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Welcome to BPIR.com’s Business Excellence series The BPIR.com Business Excellence Series has been designed as a premium collection of more than 30 best practice reports. The reports are professionally crafted with all the criteria of Business Excellence Models and Frameworks in mind, in particular the Baldrige Criteria for Performance Excellence and the EFQM Excellence Model. Business Excellence Models are internationally recognised, holistic models that enable organisations to assess and improve their journey towards world-class performance. The series will assist organisations to find and implement best practices across all six major categories (and sub-criteria/items) of Business Excellence Models:

leadership•strategy•customers•information and knowledge management•human resources, and•operations.•

The Centre for Organisational Excellence Research (COER) is a leader in research into Business Excellence and, as founders of BPIR.com, brings its expertise to this new series. COER is currently working on a number of exciting projects relating to Business Excellence, including the largest ever study on the design, deployment, and impact of national, regional, and sectoral Business Excellence programs. This research, called Excellence Without Borders, is supported by the Global Excellence Model Council and involves more than 35 of the 70+ countries that actively promote Business Excellence.

This new series builds on BPIR.com’s internationally acclaimed Best Practice Report series, which has been at the cutting-edge of business performance improvement research since 2002. Over the years, we’ve produced more than 100 Best Practice Reports, examining wide-ranging and diverse topics including Six Sigma, social media, manufacturing outsourcing, Lean techniques, flexible work arrangements, and product life cycle management. Each report provides a succinct review of the topic, expert opinion, best practice case studies, latest research, benchmarks, and self-assessment resources. Various materials—such as e-books, reports, and infographics—are provided as downloadable links. You will find a full list of these reports, all of which are available to members, on the back cover of this issue.

Become a member of BPIR.com There are many benefits to becoming a member of BPIR.com – not least of which is receiving future issues of our best practice reports in your inbox and exclusive access to our best practice database of reports, videos, articles, and expert analysis. This treasure trove of information, hands-on experience, and learning will take your business to the next level.

If you are a non-member, you will find some of the links in this report do not work. To join BPIR.com simply click here or to find out more about membership, email membership@bpir.com or visit www.bpir.com – and be sure to follow us on Twitter at @BPIRcom.

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Leadership: Corporate Social Responsibility (CSR)

The Definition

Corporate social responsibility (CSR) is when an organisation takes responsibility for the impact of its decisions and operations on society and the environment. It is when an organisation achieves a balance between economic, environmental and social imperatives, and the expectations of stakeholders for the long term.

The Stage

When implementing activities relating to its CSR, an organisation has three fundamental responsibilities: environmental, societal and economic. The organisation should also be aiming to make decisions that are sustainable, i.e. that meet present needs without compromising long-term economic success or having a negative impact on the environment.

Research shows that approaches to CSR tend to adopt many multi-faceted approaches rather than a single approach. Some organisations pursue philanthropy or aim to protect the environment; others choose to share common values, and integrate business goals with a societal need. And there are organisations that develop a stand-alone CSR programme rather than integrating CSR into their core business goals and values.

Many organisations have excellent CSR initiatives – and some have found a way for CSR to boost bottom-line figures as a result of the community and stakeholder support they receive or an associated streamlining of resources. However, research also shows that many organisations could do better with their CSR initiatives – particularly through improved alignment with day-to-day operations and higher levels of active engagement from leaders.

Environmental sustainability has long been a concern and is now a monumental challenge. Climate change, global warming, deforestation, natural resource depletion, waste management and transportation challenges are key areas in which organisations can make a difference. Yes, more should be done by all orders of government; however, business leaders can do much to help shape a global response by integrating CSR standards such as ISO 26000 on social responsibility and ISO 14001 on environmental management.

As CSR becomes an accepted and expected practice, organisations have to find ways to balance and align their short-term needs with long-term sustainability.

In This Report…

1. What is corporate social responsibility? 2. Which organisations have received recognition for corporate social responsibility?3. How have organisations reached high levels of corporate social responsibility? 4. What research has been undertaken in corporate social responsibility? 5. What tools and methods are used to achieve high levels of success in corporate social responsibility?6. How can corporate social responsibility be measured?7. What do business leaders say about corporate social responsibility? 8. Conclusion.

Author: Dr Alan Samuel, BPIR.com Limited Editor: Dr Robin Mann, Centre for Organisational Excellence Research Editor: Michael Adams, Thingwall Communications (Canada).

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1. What is corporate social responsibility?1.1 Creating Sustainable ValueSource: EFQM, Belgium (date of information: 2020)Link: The EFQM Model Application/Key learning points: EFQM has developed a globally recognised management framework which allows organisations to achieve success by measuring where they are on the path towards transformation. In the EFQM model, creating sustainable value or a sustainable future refers to the extent to which organisations have a positive impact on the world around them. They do this by enhancing performance while simultaneously advancing the economic, environmental and social conditions of the communities in which they operate.

1.2 Societal Contributions Source: National Institute of Standards and Technology, United States (date of information: 2020)Link: Baldrige Performance Excellence ProgramApplication/Key learning points: The Baldrige Program seeks to raise awareness about the importance of performance excellence in driving national and global economies. Baldrige stresses that leaders should be role models in the protection of public health, safety and the environment. Protection applies to the impact of an organisation’s operations and to the life cycles of its products. Resource conservation, recycling and waste reduction should be part of an organisation’s planning process – and organisations should aim to go beyond minimal compliance with government regulations. An essential component of being a role model is to partner with the community.

1.3 History and Purpose of CSRSource: Alstom, France (date of information: 2014)Link (video): Strategic Management: What is CSR?Application/Key learning points: In a little over five minutes, this video explains the history, development and purpose of CSR. Since the 1970s, when the concept of sustainable development was first put forward, CSR has grown and expanded. Today, governments, businesses and communities increasingly work together to build a sustainable future. Four minutes into the video, you can learn about some of Alstom’s CSR initiatives in Africa.

1.4 How Can CSR Be Achieved and Practiced?Source: Institute for Business Ethics, University of St. Gallen, Switzerland (date of information: 2017)Link (video): CSR: Practical Perspectives Application/Key learning points: This six-minute video explains how CSR goes beyond ethics, compliance and risk management, and asks the question on everyone’s lips: how can organisations contribute to developing a healthy society through their good business practices? Learn the four basic steps organisations can use to achieve their corporate goals while contributing to more sustainable communities and a healthier environment.

1.5 Importance of Corporate Responsibility, Sustainability & Inclusion Source: Thomson Reuters, Canada (date of information: 2017)Link (video): What Is the Importance of Corporate Responsibility, Sustainability and Inclusion to an Organisation? Application/Key learning points: This is an important three-minute video of an interview with Patsy Doerr, who is global head of corporate responsibility and inclusion at Thomson Reuters. Doerr explains the importance of corporate responsibility, sustainability, inclusion and diversity within the organisation. The business case for having all of these in place is particularly pressing, since it leads to higher productivity and a better bottom line.

1.6 CSR from a Technological Perspective Source: Cisco Systems, United States (date of information: 2016)Link (video): Cisco’s Corporate Social Responsibility Application/Key learning points: This five-minute video explains how Cisco empowers people to be global problem solvers in today’s rapidly changing social environment. There are a few examples of how Cisco uses its expertise in IT and infrastructure to facilitate connectivity during crises, to help businesses grow, or to improve educational prowess.

1.7 Corporate Responsibility at a Global CompanySource: Allianz, Germany (date of information: 2017)Link (video): Corporate Responsibility at a Global Company Application/Key learning points: The Allianz Group is a global financial services provider with services mainly in the insurance and asset management sectors. It has 92 million retail and corporate clients in more than 70 countries. This video shows how Allianz has changed its corporate responsibility strategy to be more responsive to social inequality, climate change, customer safety and digitisation. The strategy is based on the three pillars of environment, social and governance business integration; low-carbon economy; and, social inclusion.

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2. Which organisations have received recognition for corporate social responsibility?2.1 Examples of Corporate Social Responsibility Awards Sources & Links:

The SERAS CSR Award• s, Africa Arabic CSR Award• s, Arab Region European CSR Award• s, BelgiumNational CSR Forum (Awards• ), Germany The Sustainability Award• s, GermanyFICCI Corporate Social Responsibility Award• s, IndiaIndia CSR Award• s, India The Chambers Ireland Corporate Social Responsibility Award• s, IrelandNZI Sustainable Business Network Award• s, New Zealand The Global CSR Summit & Award• s, Singapore Gulf Sustainability Award• s, United Arab EmiratesInternational CSR Excellence Award• s, United Kingdom Global Good Award• s, United KingdomGlobal Sustainability Development Goals Award• s, United Nations PR News CSR Award• s, United States

Application/Key learning points: These are examples of corporate social responsibility awards (or corporate sustainability and responsibility awards) from around the globe. You will be able to find out about some of the world’s best organisations and, read about what makes them exceptional. Award winners are usually excellent organisations to contact and from which to learn.

2.2 Lundquist CSR Online AwardsSource: Lundquist, Italy (date of information: 2017) Download (PDF): Lundquist CSR Online AwardsApplication/Key learning points: The Lundquist CSR Online Awards publication is the foremost authority on CSR communication and engagement in Europe. Based on inputs from more than 1,850 international experts and professionals, this 36-page white paper is packed with data-rich research on sustainability in Europe, leading digital approaches, and cutting-edge communication in sustainability. The edition presented here provides a special focus on the latest trends and the best-performing companies in Germany and Switzerland.

2.3 International CSR Awards and Green AwardsSource: Boost Awards, United States (date of information: 2018) Link: List of International CSR Awards & International Green AwardsApplication/Key learning points: Boost Awards is the world’s first and largest awards entry consultancy, and specialises in helping organisations identify and enter business awards. The list presented here includes all the most credible international sustainability awards and green awards. Each of the awards is categorised by industry, region, deadline for entry and date of the awards ceremony.

2.4 How a Major City Achieves Top Rankings in Global Sustainability Index Source: City of Vienna, Austria (date of information: 2020) Link: Top Ranking in Global Sustainability Index 2018Application/Key learning points: The Sustainable Cities Index was first published in 2015. It ranks the world’s major cities on the basis of various indicators, such as affordability, income inequality, education, health and work-life balance, as well as environmental protection and economic activity. These three dimensions combined provide a comprehensive impression of the leading cities worldwide in terms of vitality and sustainability. Vienna, capital of Austria, ranks fifth on this index. You can find out how Vienna achieved its excellent position – and exactly how the rankings were decided – in the Sustainable Cities Index 2018.

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3. How have organisations achieved high levels of corporate social responsibility?3.1 The Global CSR Awards (Asia): Sunway Group, Malaysia Source: Pinnacle Group, Singapore (date of information: 2020) Link: Sunway Bags Top CSR AwardApplication/Key learning points: The Global CSR Awards (Asia) recognise organisations in Asia for their outstanding, world-class CSR programmes. At the CSR Malaysia Awards 2019 held in Kuala Lumpur, Sunway Group was honoured as CSR Company of the Year in the conglomerate category. The company was recognised for its role as a change agent in the socio-economic transformation of Malaysia. Over the years, Sunway Group has organised many CSR initiatives to support communities, including its signature “Back to School” programme and the “Rise Against Hunger” campaign. Sunway’s philosophy is based on the United Nations’ 17 Sustainable Development Goals.

3.2 Germany’s National CSR Awards Winner: ZalandoSource: National CSR Forum (Awards), Germany (date of information: 2017) Link: Zalando Is Delighted to Win the CSR AwardApplication/Key learning points: Germany’s National CSR Forum (Awards) recognises organisations that have a significant CSR interest and have demonstrated strong CSR practices. Zalando, a Berlin-based online fashion platform, won the 2017 CSR Award in the “successful refugee integration measures” category. Zalando was recognised for its commitment to pursuing an innovative, multi-sector approach to help refugees. The previous year, Zalando had invited several internationally successful social entrepreneurs to Berlin to learn from their best practices. Their refugee integration programme has so far reached some 100,000 refugees and continues to grow.

3.3 Global Good Awards Winner: VMwareSource: Global Good Awards, United Kingdom (date of information: 2018) Link: VMware Wins Overall Excellence in Corporate Responsibility AwardApplication/Key learning points: The United Kingdom’s National CSR Awards recognise organisations that demonstrate corporate responsibility at the highest levels in a broad range of disciplines. VMware won the Overall Excellence in Corporate Responsibility Award for its global impact and valuable return on investment. Its 2020 vision on sustainability includes transformative products and practices to create value for customers and partners; a thriving planet initiative to promote an environmentally friendly world; and, a people empowerment plan to enrich people so they are encouraged to become givers.

3.4 PR News CSR Awards (Internal Communications): Christiana Care Health SystemSource: PR News CSR Awards, United States (date of information: 2020) Link: Campaign Leads to 94% of Health Network Staff Getting VaccinatedApplication/Key learning points: The PR News Internal Communications Campaign is only awarded to organisations with an exceptional programme that achieves significant results. Christiana Care Health System, serving Delaware and areas in three contiguous states, wanted to increase the take-up rate of free vaccinations being made available to more than 11,000 employees. It developed a campaign using employees as models in a photo-shoot and invited media to cover a Facebook Live event. It was able to engage leading television stations and the local daily newspaper to cover the event. The results were impressive and led to 7,868 employees, volunteers and other staff members being vaccinated within a 17-hour period.

3.5 The Global CSR Summit & Awards Winner: Samsung Electronics IndonesiaSource: The Global CSR Summit & Awards, Singapore (date of information: 2018) Link: Samsung Electronics Indonesia Honoured at Global CSR Awards 2017Application/Key learning points: The Global CSR Awards is Asia’s most prestigious recognition awards programme for CSR. It recognises and honours companies for outstanding, innovative and world-class products, services, projects and programmes implemented in the past or present. Samsung Electronics, Indonesia, won the silver award for its initiative in students’ vocational education via the Samsung Tech Institute. The institute seeks to educate aspiring individuals with in-demand vocational skills so they can secure jobs. Some 600 graduates have secured jobs so far, and Samsung’s efforts have been recognised by the Indonesian government for their contribution to reducing poverty and unemployment.

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3.6 India CSR Awards Winner: Benetton IndiaSource: India CSR Awards, India (date of information: 2017) Link: India CSR Awards - Benetton IndiaApplication/Key learning points: The India CSR Awards recognise outstanding and innovative CSR, sustainability and social enterprise projects, and leadership in CSR. Benetton India won the top award for project AAROHI: Wings of Empowerment, which supports menstrual healthcare for women. The programme aims to provide girls and women with access to affordable menstrual and reproductive healthcare options. Benetton was also commended for its umbrella Women Empowerment programme.

3.7 International CSR Excellence Awards Winner: Megaworld Foundation Source: International CSR Excellence Awards, United Kingdom (date of information: 2018) Link: Megaworld Foundation Application/Key learning points: The International CSR Excellence Awards recognise companies that go beyond their normal business practices to help others. In 2017, the Megaworld Foundation from the Philippines beat numerous international competitors to win the prestigious Champion of Champions Award. The foundation won the award for its philanthropic deeds in education, charitable donations and volunteerism in community and green projects. What is particularly special about Megaworld Foundation is that its goals emphasise giving without expecting a return.

3.8 International Best Practice Competition Qualifier: MAA Medicare Charitable Foundation, MalaysiaSource: BPIR.com, New Zealand (date of information: 2017) Download (PDF): MAA Medicare Charitable Foundation, Malaysia Award Application Application/Key learning points: The MAA Medicare Charitable Foundation in Malaysia seeks to provide charitable medical care to all underprivileged Malaysians. It aims to ensure that innovative fundraising projects and programmes are organised and implemented to benefit both the foundation and the general public or individual involved. Each project is designed to suit the donor; this ensures that while funds are raised for Medicare to support its patients, the donor is able to obtain maximum publicity and goodwill for its actions. This is a key factor in ensuring donors return to lend continuous support and become part of a foundation that saves lives and makes a difference in the community. MAA Medicare has won many international awards for its work (see “Best Practice Evidence” on p. 4 of the award application).

3.9 International Best Practice Competition Winner: Al Jazeera International Catering (JIC), United Arab EmiratesSource: BPIR.com, New Zealand (date of information: 2015) Download (PDF): Al Jazeera International Catering (JIC) Award Application Application/Key learning points: Al Jazeera International Catering (JIC) won the international best practice competition for its “Our Planet – Our Responsibility” initiative. The project deals with the reduction of food waste and the positive impact this can have on the environment. In 2014, JIC’s strategy achieved a 39 per cent overall reduction in food waste compared to the previous year, which was the result of operations and service modifications. The CSR engagement process is an internally developed system to create awareness among stakeholders of social responsibility and sustainability. Various stakeholder groups were involved in gathering inputs through meetings, surveys and feedback sessions. This system had an impact on some 8,000 JIC customers, 350 employees and 50 suppliers.

3.10 International Best Practice Competition Qualifier: City of Fort Collins, United States Source: BPIR.com, New Zealand (date of information: 2018) Download (PDF): City of Fort Collins, United States, Award Application Application/Key learning points: The City of Fort Collins, Colorado, and its community have developed a track record of climate leadership, setting their first goals in 1999. The city has one of the most ambitious Climate Action Plans in the United States with goals to reduce greenhouse gas emissions by 20 per cent below 2005 levels by 2020, and 80 per cent by 2030. The goal is to be carbon neutral by 2050. The city council unanimously adopted the goals in 2015 and created the framework, budget, staff capacity and metrics to implement the plan. The application shows how the city is on track to meet its target through the development of extensive organisational infrastructure, as well as how it dealt with the effects of a major forest fire in 2012 and a serious flood in 2013. The city’s adopted best practices have also led to outstanding economic, environmental, social and health benefits.

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3.11 International Best Practice Competition Qualifier: Sierra Readymix, Sri LankaSource: BPIR.com, New Zealand (date of information: 2017) Download (PDF): Waste Water and Grout Management and ReutilisationApplication/Key learning points: Sierra Readymix is a concrete manufacturer in Sri Lanka and has plants across the island. The company has a vision to produce the highest quality concrete in the industry while, at the same time, protecting the environment. As an environmentally conscious firm, Sierra does not accept current industry practices and has developed a mechanism to eliminate grout dumping at the site and minimise its accumulation at the batching plant. This it does by harvesting and reusing wastewater and rainwater.

4. What research has been undertaken into corporate social responsibility?4.1 UN Global Sustainable Development Report 2019Source: United Nations’ Division for Sustainable Development Goals, United Nations (date of information: 2020)Download (PDF): Global Sustainable Development Report 2019 Application/Key learning points: Prepared by an independent group of 15 scientists, The Future is Now: Science for Achieving Sustainable Development serves as the United Nations’ Global Sustainable Development Report 2019 and aims to support the organisation’s 2030 goal of sustainable development. An evidence-based approach is used to chart progress for six identified goals (see p. xvi). In her prologue, Gro Harlem Brundtland, former director-general of the World Health Organization, highlights the need for strong political will to deal with natural, technological, consumption and population patterns that are leading us to environmental and social chaos in future decades. This comprehensive 252-page report provides an over-arching strategic view of global patterns, the science for sustainable development, and a practical guide on implementable actions needed for sustainable transformation to take place.

4.2 Disney’s CSR UpdateSource: The Walt Disney Company, United States (date of information: 2017)Download (PDF): Disney Corporate Social Responsibility Update 2017 Application/Key learning points: Disney is famous for having one of the best corporate citizenship and most effective social responsibility initiatives in the world. Since 2008, Disney has consolidated its efforts toward being socially and environmentally responsible. In addition to annual charitable giving of some USD $350 million, Disney is committed to improving environmental stewardship; contributing to international labour standards; creating healthier generations; improving workplace practices; bringing comfort to those in need; and, youth development. The data table on p. 19 shows how Disney fared from 2015 to 2017 in all these areas. In the future, Disney aims to continue in its efforts to bring great value to stakeholders while being a model corporate citizen.

4.3 Sustainable Development and CSR in Sub-Saharan Africa Source: MDPI, Switzerland (date of information: 2016)Download (PDF): Sustainable Development and Corporate Social Responsibility in Sub-Saharan AfricaApplication/Key learning points: Through a sample of 288 businesses in Cameroon, this study examines how industries practise CSR to promote sustainable development. Results show that most large businesses implement two dimensions of sustainable development: environmental (safe buffer) and social (philanthropy). Smaller businesses do not appear to be very involved in CSR. In general, stronger policies and national laws need to be put in place to encourage businesses to disengage from unsustainable practices. The paper explains why businesses in Cameroon do not seem to see the value of investing in CSR.

“Creating a strong business and building a better world are not conflicting goals – they are both essential ingredients

for long-term success” —William Clay Ford Jr., Executive Chairman, Ford Motor Company

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4.4 CSR: National Public Policies in the European UnionSource: The European Commission, pan-European (date of information: 2014)Download (PDF): Corporate Social Responsibility European Union 2014Application/Key learning points: Every few years the European Commission releases a compendium on CSR. Although this active document dates back to 2014, it notes how CSR is becoming increasingly important to national development and transnational policies. The shift from volunteerism to “required investment” in CSR stems from a humanitarian and environmental imperative to make conscious efforts to save the planet. The compendium is divided into thematic sections which investigate CSR policies in certain key countries and set out CSR principles that can be applicable to all member states. There are also sections dedicated to human rights, CSR in small and medium-sized enterprises, campaigning, education and training, and CSR reporting.

4.5 Does Corporate Governance Affect Sustainability Disclosure?Source: MDPI, Switzerland (date of information: 2018)Download (PDF): Does Corporate Governance Affect Sustainability DisclosureApplication/Key learning points: This paper seeks to understand the impact of corporate governance on economic, social and environmental sustainability disclosures in developing countries. Data was collected from the top 100 companies listed on the Pakistan Stock Exchange. The results show that, on the whole, corporate governance enhances sustainability disclosures. Elements of corporate governance include board size, board independence, the number of women on the board, and the presence of a CSR committee. The existence of a CSR committee has a positive impact on all three sustainability dimensions. Having a greater proportion of women on the board also seems to have a strong positive impact on sustainability disclosures.

4.6 Sustainable Consumption: Research Challenges from SwedenSource: Mistra (Swedish Foundation for Strategic Environmental Research), Sweden (date of information: 2016)Download (PDF): Sustainable Consumption: Research ChallengesApplication/Key learning points: The aim of the paper is to shed light on future research into sustainable consumption from a Swedish perspective. It analyses state-of-the-art approaches to sustainable consumption, describes the current challenges facing Sweden and the EU, and seeks to plug research gaps from an international perspective. Current research already focuses on areas such as food, energy, housing, transport and finance. Future research will seek to develop these areas further and discover new research focuses and themes. These are revealed in Part 4 of the report.

4.7 Managing Mining for Sustainable DevelopmentSource: United Nations Development Programme (UNDP), Thailand (date of information: 2018)Download (PDF): Managing Mining for Sustainable DevelopmentApplication/Key learning points: UNDP is represented in more than 170 countries to help empower lives and build resilient nations. This 116-page document addresses the challenges and risks the process and industry of mining create and suggests ways to manage their various stages for sustainable development. Though many countries have adopted rules and standards to measure the impact of their mining projects, implementation has been slow. By synthesising knowledge of the mining industry with the governmental concerns and economic progress, the document helps to fill the gap for responsible mining and ensure mines are properly closed down once work has finished.

“If we do not change course by 2020, we risk missing the point where we can avoid runaway

climate change, with disastrous consequences for people and all the natural systems that sustain us.”

—António Guterres, Secretary-General of the UN

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5. What tools and methods are used to achieve high levels of corporate social responsibility?5.1 CSR Business Model Innovation ToolkitSource: CSR Europe, Belgium (date of information: 2020)Download (PDF): Circular Business Model Innovation Toolkit Application/Key learning points: This toolkit deals with circular visions and circular economic models and helps explain what they are and why they are important. It was developed by the European Union Horizon 2020 Project to enable companies to think in such a way that their design focuses on reusing, recycling and reducing waste in all processes; in essence, “circular” is all about minimising environmental and social costs. The 46-page toolkit is an excellent, step-by-step guide to build or move to a circular business model, regardless of your company’s industry type or size. You will also find a short CSR self-assessment (Fig. 14) and transition assessment (Fig. 29).

5.2 CSR: An Implementation Guide for Canadian BusinessSource: Innovation, Science and Economic Development Canada, Canada (date of information: 2014)Download (PDF): CSR: An Implementation Guide for Canadian Business Application/Key learning points: Innovation, Science and Economic Development Canada works with Canadians in all areas of the economy to improve conditions for investment, enhance innovation performance, and build a fair, efficient and competitive marketplace. This three-part, 75-page guide offers sound practical advice on CSR to Canadian companies. Part 1 deals with the fundamentals of CSR and the business case for adopting it. Part 2 sets out the implementation framework and, Part 3 deals with building and executing a CSR strategy. There are numerous case examples and summaries of companies that have successfully engaged CSR and integrated it into their business.

5.3 How Corporate Social Responsibility Affects a Ghanaian Community Source: Kwame Nkrumah University of Science and Technology, Ghana (date of information: 2015)Download (PDF): Effect of Corporate Social Responsibility on Community Development - A Case Study Application/Key learning points: This case study shows how a mining company in Ghana has demonstrated its CSR to produce positive effects on a community. The effects of mining on communities are typically seen as negative – with significant impacts in biodiversity, air and water quality, pollution and land degradation. However, Anglogold Ashanti carried out CSR initiatives in the Obuasi community that had a positive impact on community development: these include providing malaria control programmes, facilitating access to safe drinking water and employment, and tackling environmental issues. Implementation challenges came in the form of financial constraints, political interference and a lack of community support. The recommendations made to improve the challenges can be applied to similar communities around the region.

5.4 Sustainable Business Management in a Rapidly Changing WorldSource: BSR, United States (date of information: 2018)Download (PDF): Redefining Sustainable Business: Management for a Rapidly Changing World Application/Key learning points: BSR is a non-profit organisation that develops sustainable business strategies and solutions. It has a global network of more than 250 member companies. This 56-page report details the views of 50 sustainability leaders on what companies should be doing now to support a sustainable world. It advocates the need for companies to design resilient business strategies with sustainability at their heart. The days of stand-alone sustainability strategies, with subsequent integration are over. Based on the “act, enable, influence” approach, companies can now develop a blueprint for building a sustainable business.

5.5 2018 Corporate Responsibility SummitSource: Automotive Industry Action Group (AIAG), United States (date of information: 2018)Download (PDF): 2018 Corporate Responsibility SummitApplication/Key learning points: In 2018, AIAG’s annual Corporate Responsibility Summit brought together stakeholders in the automotive industry to focus on the theme of social and environmental responsibility in the supply chain. Manufacturing experts and CSR practitioners were present as speakers and facilitators in the conference to specifically discuss optimisation for success and risk mitigation issues.

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5.6 An Inclusive Business Approach Source: World Business Council for Sustainable Development (WBCSD), Geneva (date of information: 2016) Download (PDF): Delivering on the Sustainable Development Goals: The Inclusive Business ApproachApplication/Key learning points: WBCSD is a global, CEO-led organisation of more than 200 leading businesses working together to accelerate the transition to a sustainable world. It has a massive ambition of developing a universal framework with 17 sustainable development goals to eradicate poverty, promote peace and equality, fuel inclusive growth, and protect the environment. This document has a focus on inclusive business, i.e. providing opportunities for employment and entrepreneurship to people at the foot of the economic pyramid. It is a good primer on the value and challenges of embarking on a journey of inclusivity.

5.7 European Peer Learning Platform to Help Implement the 2030 AgendaSource: European Sustainable Development Network (ESDN), Austria (date of information: 2018)Download (PDF): ESDN Peer Learning Platform, Implementing the 2030 Agenda in Countries and Regions Application/Key learning points: In 2018, the ESDN Peer Learning Platform brought together policy makers from all over Europe for a two-day discussion on their experiences in implementing the 2030 sustainable development agenda. This document provides a summary of country discussions relating to Italy, Germany and Belgium, which took place in three separate “spaces for learning” on the first day of the meeting. These learning spaces focused on listening, conversations and mutual exchanges on various subjects. The second day focused on Italy’s experience and challenges towards 2030. The document is also a good source for discovering the techniques used to develop deeper thinking and conversations on national sustainable development strategies.

5.8 Developing CSR Metrics Based on the Theory of StakeholdersSource: Czestochowa University of Technology, Poland (date of information: 2016)Download (PDF): Development of Corporate Social Responsibility Metrics Based on the Theory of Stakeholders Application/Key learning points: This fascinating—if somewhat philosophical—11-page article provides an overview of approaches to fixing the achievements of companies in the field of CSR, based on international standards. It lays out the way to improving current standards and principles of informing the public about the results of social action and evaluating its effectiveness. In addition to analysing the characteristics of the most common international CSR standards (see p. 6), the research also details the reporting practices of Ukrainian organisations.

5.9 Comparison of Four International Guidelines for CSRSource: Danish Business Authority, Denmark (date of information: 2015)Download (PDF): A Comparison of Four International Guidelines for CSRApplication/Key learning points: The Danish Business Authority endeavours to create the best conditions for growth and to make it easy and attractive to run a business in Denmark. This 17-page document lays out the key differences between four existing international guidelines on CSR. These guidelines are the OECD Guidelines for Multinational Enterprises; ISO 26000 Guidance on Social Responsibility; the UN Global Compact; and, the UN Guiding Principles on Business and Human Rights. A comparison is made of key content, including human rights; labour; the environment; economic and business issues; consumer issues; and, community development. A brief overview of the four guidelines can be found on p. 14.

“People are going to want, and be able, to find out about the citizenship of a brand, whether it is doing

the right things socially, economically and environmentally.”

—Mike Clasper, President of Business Development, Proctor and Gamble (Europe)

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6. How can success in corporate social responsibility be measured?6.1 Reporting Guidelines for Environmental Key Performance Indicators (KPIs)Source: Department for Environment Food & Rural Affairs (DEFRA), United Kingdom (date of information: 2016)Download (PDF): Environmental Key Performance Indicators (KPIs): Reporting Guidelines for UK BusinessApplication/Key learning points: DEFRA has detailed 22 environmental KPIs for organisations to use to help organisations report environmental impacts in a cost-effective manner, enabling them to manage and communicate environmental performance internally and to stakeholders. Around 80 per cent of British organisations use five or fewer of these KPIs. To improve reporting, these guidelines explain how a more complete set of KPIs can help organisations better manage and communicate links between environmental and financial performance to their stakeholders.

6.2 CSR Self-Assessment for Automotive Sector SuppliersSource: CSR Europe, Belgium (date of information: 2020)Download (PDF): CSR Self-Assessment for Automotive Sector Suppliers Application/Key learning points: CSR is a process for companies to integrate social, governance, environmental and supply chain sustainability into operations and corporate strategy. The European Automotive Working Group has designed this self-assessment questionnaire to be a first check of supplier performance on CSR and sustainability, enabling companies to incorporate social, governance and supply chain sustainability into corporate and plant level strategy and tactics.

6.3 The Gold Standard for Sustainability Reporting: GRI StandardsSource: GRI, Poland (date of information: 2018)Download (PDF): GRI StandardsApplication/Key learning points: GRI is an independent global entity that has pioneered sustainability reporting since 1997. The GRI standards are the most widely used standards used for sustainability reporting. These standards are a modular, interrelated structure that represent best practice for reporting economic, environmental and social impacts. It should be noted that, as of July 1, 2018, the GRI standards have superseded the G4 guidelines.

6.4 Eco-Design Health Check Source: BPIR.com, New Zealand (date of information: 2015) Download (PDF): Eco-Design Health Check Application/Key learning points: This quick self-assessment will help you to assess easily and quickly how well the concept of environmental design is integrated within the product lifecycle from design to disposal. A score of less than 20 implies remedial action should be taken immediately. Areas of weakness should also be addressed.

6.5 Environmental Report/Statement Evaluation ChecklistSource: BPIR.com, New Zealand (date of information: 2014) Download (PDF): Environmental Report/Statement Evaluation Checklist Application/Key learning points: This checklist was developed by the International Network for Environmental Management. It will help you assess whether your environmental report meets the reporting requirements of Eco-Management and Audit Scheme (EMAS) or ISO 14001. You can check the completeness and effectiveness of your environmental report statement.

6.6 Calculate the ROI of CSR in the Services IndustrySource: Digital Commons Cornell University, United States (date of information: 2016) Download (PDF): Calculate the ROI of Corporate Social Responsibility in the Services Industry Application/Key learning points: Research indicates that CSR has the ability to improve relationships with customers and employee satisfaction. This Cornell University study looks at three different metrics and frameworks to assess which provides the most accurate cost-benefit analysis of CSR activities. Though all three models measure different aspects of an organisation, the study points to the Corporate Identity Model as being the most accurate measure for the ROI on CSR activities. Appendix 1b is a survey questionnaire based on the Kanji-Chopra CSR Model, which measures an organisation’s strategic planning system effect on CSR components.

6.7 AT&T Annual Sustainability Update: KPIsSource: AT&T, United States (date of information: 2017) Download (PDF): AT&T Annual Sustainability Update: Key Performance Indicators Application/Key learning points: AT&T has established an excellent set of KPIs in its annual sustainability reporting. These have proven useful to stakeholders and provide an holistic view of its business in terms of corporate responsibility and sustainability. The three categories used in their reporting are People, Planet and Possibilities. The Possibilities section refers to philanthropy and volunteerism.

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7. What do business leaders say about corporate social responsibility?“Creating a strong business and building a better world are not conflicting goals – they are both essential ingredients for long-term success” —William Clay Ford Jr., Executive Chairman, Ford Motor Company

“If we do not change course by 2020, we risk missing the point where we can avoid runaway climate change, with disastrous consequences for people and all the natural systems that sustain us.”—António Guterres, Secretary-General of the UN

“All company bosses want a policy on corporate social responsibility. The positive effect is hard to quantify, but the negative consequences of a disaster are enormous.” —Noreena Hertz, English academic, economist

“By polluting the oceans, not mitigating CO2 emissions and destroying our biodiversity, we are killing our planet. Let us face it, there is no planet B.” —Emmanuel Macron, President of France

“To build and sustain brands people love and trust, one must focus – not only on today but also on tomorrow. It’s not easy...but balancing the short and long term is key to delivering sustainable, profitable growth - growth that is 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 Rosenfeld, Former chair and CEO of Mondelēz International

“The concept of corporate social responsibility (CSR) has long been used as an effective lens through which to examine the actions business can take toward ensuring mutual long-term well-being and sustainability.” —Klaus Schwab, German economist

“We are running the most dangerous experiment in history right now, which is to see how much carbon dioxide the atmosphere can handle before there is an environmental catastrophe.” —Elon Musk, CEO of Tesla

“Companies that are breaking the mould are moving beyond corporate social responsibility to social innovation. These companies are the vanguard of the new paradigm. They view community needs as opportunities to develop ideas and demonstrate business technologies, to find and serve new markets, and to solve longstanding business problems.” —Rosabeth Moss Kanter, Chair of University Advanced Leadership Initiative, United States

“Not long ago the concerns of ecologists were as irrelevant to business planners as those of ethicists are today. ‘Green’ has gone from being a disparagement to becoming a badge that no smart company would risk being without. Ethics are similarly en route to becoming a strategic imperative.” —John Dalla Costa, Founding director of Ethical Orientation, Canada

“People are going to want, and be able, to find out about the citizenship of a brand, whether it is doing the right things socially, economically and environmentally.” —Mike Clasper, President of Business Development, Proctor and Gamble (Europe)

“Transparency, accountability and sustainability have become the slogans of the market leaders. Companies carry out environmental and social audits to court the consumer, and even the bluest chips woo organisations such as Greenpeace and Amnesty.” —Noreena Hertz, English academic, economist

“Often, sustainability is discussed only in the context of energy. Energy sustainability is essential – but the word has a much broader meaning. It means long-term thinking about how we manage our businesses, invest in social spending, and plan for the future. This requires vision and leadership, and it requires citizen engagement.” —Joe Kaeser, CEO of Siemens AG & German businessman

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8.0 ConclusionThe world appears to be at a crossroads. Climate change and pollution; increased levels of poverty and disease; reduced access to potable water, education and affordable housing are front of mind for every order of government. People are demanding action; they are expecting efforts to be made and solutions to be found. It is not just governments that are under pressure to produce results. Businesses are now expected to do their part, and customers are looking more carefully at the products they buy and the companies from which they buy them. It is little wonder, therefore, that organisations are having to ramp up their corporate social responsibility (CSR) efforts.

The Baldrige Program stresses that resource conservation, recycling and waste reduction should be part of an organisation’s planning process – and organisations should aim to go beyond minimal compliance with government regulations. They should be role models in the protection of public health, safety and the environment, and partnering with the community and like-minded organisations is an excellent way of going about it [see Section 1.2]. The French company Alstom has produced an excellent video explaining the history and purpose of CSR [1.3], and there is a telling interview with Patsy Doerr, Thomson Reuters global head of corporate responsibility and inclusion, in which she outlines the business case for CSR [1.5]. The video of how Allianz changed its corporate responsibility strategy to be more responsive to social inequality, climate change, customer safety and digitisation is also particularly interesting [1.7].

Understanding how organisations have introduced successful CSR practices is a good step towards developing your own. Malaysia’s Sunway Group bases its CSR philosophy on the United Nations’ 17 Sustainable Development Goals, and has implemented many CSR initiatives to support communities, including an incredible “Back to School” programme, which gives underprivileged students the right tools to attend school [3.1]. Zalando, a German online fashion platform, has focused on refugee integration [3.2], while Al Jazeera International Catering from the UAE won the international best practice competition for its “Our Planet – Our Responsibility” initiative, which focused on reducing food waste [3.9].

A lot of research has been undertaken into CSR and we have selected some of the most interesting articles for you in Section 4. The Walt Disney Company has long been known for its excellent social responsibility initiatives, including environmental stewardship and contributing to international labour standards [4.2]. The European Commission has provided a comprehensive compendium on CSR in Europe [4.4], and UNDP’s superb publication on responsible and sustainable development in the mining industry provides a fascinating insight into a much-maligned industry [4.7].

Section 5 provides a synthesis of some of the tools and methods in use to promote excellence in CSR, including a circular business model innovation toolkit from Belgium [5.1], a Canadian government overview of CSR for businesses [5.2], and an excellent primer on inclusivity from the World Business Council for Sustainable Development [5.6].

The importance of measuring the effectiveness of your CSR initiatives is key, and you will find a series of self-assessments in Section 6. You may find the eco-design health check of particular interest, as it will help you assess how well the concept of environmental design is integrated within a product lifecycle [6.4], while the environmental report checklist will help assess if you meet reporting requirements or not [6.5]. Don’t forget that, as valued members of BPIR.com, you have access to an unparalleled resource – and we are here to help you at every step of your CSR journey.

Disclaimer: Recent information has been included in this report to ensure our readers are kept up to date with the latest research; where possible, permanent links have been provided. At the time of publishing, all links are live. We apologise in advance for any broken links that might occur after publication due to matters beyond our control.

BPIR.com has published more than 100 best practice reports. The BPIR.com Business Excellence Series has been designed as a premium collection of more than 30 best practice reports. Click on the links below to read the reports that have been published so far:

LeadershipLeadership: Vision, Mission, and ValuesLeadership: Legal and Ethical Behaviour

Leadership: Building a Successful OrganisationLeadership: Engagement and Communication with Stakeholders

Leadership: Governance

StrategyStrategy: Strategic Planning Process (coming soon)

Strategy: Customers (coming soon)Strategy: Information and Knowledge Management (coming soon)

Strategy: Human Resources (coming soon)Strategy: Operations (coming soon)

Stategic: Planning Process (coming soon)