How to design and implement an effective CSR policy

Corporate Social Responsibility 9 Comments

This is the final article in a series of posts about Corporate Social Responsibility (CSR).

In this article, I would like to focus on the more practical aspects of designing and implementing effective CSR policies and programs.

I have provided some of my own ideas below. However, as I do not have specific personal experience in this area, I feel that the most interesting and valuable part of this discussion would be the professional experience of readers.

Accordingly, I cordially invite you to share any personal experience which you feel may be of particular interest or relevance to other readers.

 
Key principles in designing and implementing CSR policies

Listed below, in no particular order, are seven key principles relating to the effective management of Corporate Social Responsibility:

 
• Apply similar principles to managing CSR as with other aspects of the business.

In order to implement CSR in an effective manner, it must be managed like any other aspect of business. Amongst over things, this involves the setting of key objectives, priorities and performance indicators, the creation of action plans and subsequent performance evaluation.

The principles of effective management apply to all aspects of a company’s operations, including CSR.
 

• Keep it simple.

The entire approach of organizations towards CSR should be kept as straightforward as possible.

A more straightforward approach offers several benefits. First, under a simpler approach, it becomes easier for management and staff to maintain focus on the bigger picture of what the firm is trying to achieve. In addition, a simpler approach also increases the likelihood of staff understanding CSR policy and becoming engaged in CSR effort. Finally, under a simpler approach, CSR is likely to be managed more effectively – fewer complications, fewer opportunities for mistakes.

Simply put, simple is better.

 
• Focus on core principles, not policies and procedures.

Whilst specific policies may be necessary to provide clarity to employees in some circumstances, the focus should be upon core principles rather than detailed policies or procedures.

An organizational focus based primarily around core principles allows employees the flexibility to apply a common sense approach when dealing with situations which may arise, whilst still ensuring actions and practices which are consistent with the key values of the organization as well as the principal objectives of CSR policy.

 
• Set measurable outcomes, goals and objectives.

As with any other area of business, the process of setting goals, objectives and measurable outcomes is essential for the effective management of Corporate Social Responsibility.

These provide focus and direction for CSR effort as well as a mechanism to measure and evaluate organizational performance.

 
• Focus upon specific industry concerns.

All firms should aspire to good corporate citizenship in common areas such as the environment, labor relations and corporate governance.

In addition, all firms should aspire to conduct their business in a manner of honesty and integrity.

Beyond this, however, organizational effort relating to CSR should focus predominately upon areas of specific concern to the industry in which the organization operates.

Manufacturers of alcoholic beverages for example, should focus CSR efforts upon programs to prevent under-age drinking, drink-driving or other forms of alcohol abuse. Timber firms could focus upon forest regeneration. Fast food companies could focus upon health related programs, as well as the minimization of harmful ingredients in their food. And finally, financial institutions could refrain from lending to certain clientele. (such as weapons manufacturers)

By focusing CSR efforts upon areas of specific relevance to their industry, organizations maximize the impact of their CSR effort both from a public relations viewpoint and from the viewpoint of the broader community benefit.

 
• Communicate, involve and engage.

No man is an island in himself, nor does any business operate in isolation.

Companies should seek input from key stakeholder groups throughout the CSR process, particularly during the process of setting goals, objectives and key priorities.

Not only will stakeholder input help the organization to identify and focus upon areas of greatest importance, the process of engagement will also help to strengthen key stakeholder relationships.

In addition, companies should also seek the engagement of employees. As the group which puts company policy into action, employees have considerable influence over the outcome of CSR effort. Where possible, staff should be given to opportunity to provide input into decisions relating to CSR policies and programs. In addition, companies should clearly communicate the reasons behind CSR effort, including the anticipated benefits from the perspective of the community, the organization and, where applicable, employees themselves.

In cases where staff have a clear understanding of the reasons behind CSR policies and programs, and are provided the opportunity to provide input into decision making, they are more likely to apply CSR policy in a diligent manner. They are also more likely to participate actively in specific CSR programs.

 
• Don’t leave it to the PR or legal department.

Many organizations view CSR as primarily a form of public relations, or risk mitigation. Accordingly, organizations may view CSR management primarily as a function for the public relations or legal departments.

Whilst these departments may be well positioned to provide valuable input into CSR management, there are drawbacks in viewing CSR in this manner.

Where CSR is left predominately to the public relations department, the resultant communication may come across as ‘spin doctoring,’ As a result key stakeholders, as well as the general public, may distrust the sincerity of the organization’s efforts, thereby limiting any positive impact upon corporate reputation.

Moreover, delegating CSR to one department misses the point. CSR is more than simply a public relations exercise. It is not simply a task to be delegated to one department and ignored by the rest of the organization.

CSR is fundamentally a way of doing business, and should be a factor in guiding organizational behavior across the entire spectrum of operations.

It should not be left to one department.

 
Over to you

I would like invite all readers to share any thoughts, opinions or specific experiences relating to the above topic which you feel may be of interest or value to other readers.

Please feel free to add your comments by clicking on the ‘comments’ section below.

9 Responses to “How to design and implement an effective CSR policy”

  1. Brad Shorr Says:
    July 25th, 2008 at 9:41 pm

    Andrew, your recommendations are well thought out and eminently sensible. I hope they find their way to readers who are in a position to implement CSR programs, because this post will certainly help them. Many of these points apply to other types of corporate planning and are frequently overlooked.

  2. drew Says:
    July 26th, 2008 at 1:51 pm

    Thanks Brad.

    Cheers.

  3. Saad Khan Says:
    July 28th, 2008 at 2:46 pm

    Hi Andrew,

    I am really impressed by your CSR series. The final write-up nicely sums it all with very valid points about CSR strategy. I would like to cross-post at http://socialbridges.org/ if you permit.

    Thanks,

    Saad
    Saad

  4. drew Says:
    July 28th, 2008 at 3:36 pm

    No problem, Saad.

    You have my full permission.

    I’m glad to hear that you enjoyed my series, and I hope that you also enjoy the next series, which will be about Socially Responsible Investing.

    Cheers

    Andrew

  5. Saad Khan Says:
    July 29th, 2008 at 1:46 pm

    Andrew,

    Thanks a lot for this permission. Now am waiting anxiously for your series on SRI.

    Cheers

    Saad

  6. namrata medhi bathri Says:
    January 27th, 2009 at 9:22 pm

    Hi Andrew,
    It is a very practical piece and will definitely help me in building up effective CSR policies .
    Thank you very much.

    Namrata

  7. Andrew Says:
    January 29th, 2009 at 3:16 pm

    Hi Namrata,

    Thanks for your comment and welcome to my blog.

    Andrews last blog post..Sign off time – Returning January 29-30

  8. Yogesh Dwivedi Says:
    May 6th, 2010 at 1:30 pm

    This will really helpfull to CSR Professionals to design the CSR Policy

    Thanks

  9. Andrew Heaton Says:
    May 7th, 2010 at 2:13 pm

    Yogesh,

    No problem – glad to be of assistance.

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