How to Write a Great Corporate Social

Responsibility Report

3p Contributor | Friday July 26th, 2013 | 4 Comments
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By Michael Gutman, Founder of REACH The
Future
Over the last month I have been comparing and contrasting corporate social responsibility
reports from six major San Francisco Bay Area companies across different sectors. Gap, eBay,
Wells Fargo, SunPower, Chevron & Salesforce all make an effort to show their efforts to invest
in environmental and community stewardship. Now is my chance to share the insights and tips
Ive learned through this review process, including what a CSR report should include & exclude.
But first this question must be asked.
Why develop a corporate social responsibility report in the first place?
I offer two main reasons.
To benchmark a companys current operations and impact on society and the
environment in order to know how and where they can improve.
To show stakeholders that a company is investing in community and environmental
stewardship.
With these motives in mind here are 5 things a good CSR report will
do
1. Focus more on future goals, less on past successes: The whole point of a CSR report
should be to understand and showcase how business was conducted in the past so a company
can plot a course to do better in the future. While sharing the success of your CSR strategy is
good, dont make the mistake of dwelling on the past CSR successes and forget to focus on
future goals. A CSR report without clear goals for the next year is like a boat with no compass.
If people are going to jump on board with your company, they will want to see where the ship is
headed.
In addition, be absolutely clear about your future goals and how you plan to achieve them. This
helps you and your stakeholders measure the success of that plan.
Example of some measurable goals:
30 percent reduction in green house gas emissions in the next 10 years by putting solar
on our buildings.
Converting all office paper to 100% recycled paper within the next year by developing an
environmentally preferable purchasing policy.
Set goals that are cautiously optimistic and still obtainable. This way, year after year your
company can report progress and avoid setting goals that are weak.
2. Discuss the elephant in the room: Every business, regardless of how irresponsible they
are now, can move towards operating more sustainability. But how should that company talk
about their efforts when people know that the manufacturing process of their products leads to
environmental devastation? The question will always come up for any business that consumes
more natural resources and produces more waste than it recovers. It is important for a
company to address these issues first.
This can be accomplished with a simple statement like:
We are providing a valuable product or service that helps people with XYZ and while we
acknowledge that the creation and the consumption of our product or service does have
consequences on the environment and communities, we are looking at behaviors and
technologies we can adopt and invest in to reduce our negative impact.
If you dont feel comfortable acknowledging the negative impact of your business, then I would
take another look at your motives for writing a CSR report.
3. Avoid a PR nightmare: Focus on sustainable business practices and responsible workplace
conditions as opposed to philanthropy. Corporate social responsibility is more about how a
company makes a profit than what it does with its profit. Dont get me wrong. Philanthropy is
definitely part of the CSR story and my business, REACH The Future, or organizations
like Universal Giving would not be in business if it werent. However, if a company focuses its
CSR efforts on the donations it made and ignores its toxic chemical pollution and child labor
practices, the media will have a field day.
4. Gain 3rd party credibility: Nothing will help build integrity, credibility and transparency to a
companys CSR efforts like 3rd party reporting or certifications. Many industries have unique
reporting tools designed for a specific industry. Here are some tools that work across
industries.
-Global Reporting Initiative
-Greenhouse Gas Protocol
-Carbon Disclosure Project
5. Share stats and stories: Stories do a great job of showing the types of relationships CSR
efforts have with community and the environment. However, they dont give a company and its
stakeholders baseline metrics to test against and evaluate the success of future CSR efforts. A
CSR report that is heavy on stories and light on stats comes across as more of a PR initiative
than a sincere effort to invest in measurable results. It is good to have both, but go heavier on
the stats than the stories.
Here is a helpful tool from Boston Colleges Center for Corporate Citizenship that will help guide
the creation of a CSR report. How to read a corporate social responsibility report a
users guide
Conclusions: Creating a CSR reports takes the effort of many to get all the data, discuss a
communications strategy and get the sign off from everyone involved. In the end it all comes
back to why. Why is any organization creating this report in the first place? If your intentions
are genuine, then people will be OK with your faults and interested in your efforts and strategy
to do better. This position yields a brand that is honest and has integrity. If your efforts are
motivated by PR, than your CSR report could open up a can of worms that creates negative
press and backfires.
These are just some of my insights and I would love to hear from people who have written CSR
reports and/or have been part of the process. Share a comment or let us know some best
practices or strategies you have used when creating this type of a document.

http://www.triplepundit.com/2013/07/write-great-corporate-social-responsibility-report/


Many business owners and managers see corporate social responsibility (CSR) as something thats nice to
do but not really connected to growing the business and profits. Just the other day I had an experience
that shows how wrong this is.


I took part in a training exercise where half the class pretended to be employers. The other half of the
class pretended to be potential employees. We (the employers) had to find a way to attract the
employees to come and work for us.


Sounds simple? Well I thought so. I was an employer offering flexible working hours, a great salary and
career development. Yet my new recruits were undecided. But then I spoke about our corporate social
responsibility program and they were suddenly a whole lot more enthusiastic. I signed them up.


Okay, so it was only a game. But it is a great example of how corporate social responsibility (CSR) can
make all the difference to your competitive position. Initiatives such as pro bono work, philanthropy,
support for community-building initiatives and environmental awareness can add significant value to
your company, and if the program is well designed the benefits far outweigh the costs.


An easy way for your company to build its brand, reputation and public profile


Being socially responsible creates goodwill and a positive image for your brand. Trust and a good
reputation are some of your companys most valuable assets. In fact, without these, you wouldnt even
have a business. You can nurture these important assets by being socially responsible.


It is however, crucial that you devise the right socially responsible program for your business. When used
properly, it will open up a myriad of new relationships and opportunities. Not only will your success grow,
but so will your companys culture. It will become a culture which you, your staff and the wider
community genuinely believe in.


Corporate Social Responsibility attracts and retains staff

Did you know that socially responsible companies report increased employee commitment, performance
and job satisfaction?

Yes, it is in us all to want to do good (and perhaps be recognised for it). Our lives become meaningful
when we realise our work has made a positive difference in some way. It makes all our striving worth it. In
fact, a 2003 Stanford University study found MBA graduates would sacrifice an average $US13700 cut in
their salary to work for a socially responsible company.

By attracting, retaining and engaging staff, doing good for others reduces your recruitment costs and
improves work productivity. Its just plain good all round!

Customers are attracted to socially responsible companies


Branding your business as socially responsible differentiates you from your competitors. The Body Shop
and Westpac are companies who have used this to their advantage. Developing innovative products that
are environmentally or socially responsible adds value and gives people a good reason to buy from you.


Corporate Social Responsibility attracts investors

Investors and financiers are attracted to companies who are socially responsible. These decision-makers
know this reflects good management and a positive reputation. Dont underestimate this influence; it can
be just as important as your companys financial performance. In fact, it may be the deciding factor in
choosing to support your company.

Corporate Social Responsibility encourages professional (and personal) growth


Your staff can develop their leadership and project management skills through a well-designed corporate
social responsibility program. This may be as simple as team building exercises, encouraging your
employees to form relationships with people they would not normally meet (like disadvantaged groups).

Corporate Social Responsibility helps to cut your business costs

Environmental initiatives such as recycling and conserving energy increase in-house efficiency and cut
costs. Introducing a corporate social responsibility program gives you a good reason to examine and
improve on your spending!


The importance of Corporate Social Responsibility
Posted on November 11, 2013
In this article, we tackle the importance of Corporate Social Responsibility (CSR), Corporate Social Investment (CSI) and the
ethics surrounding both, in a global as well as South African context. We will also look at how sustainable these efforts are.
Corporate Social Responsibility: People, Planet and Profit
It is important to understand the legislative, policy and institutional frameworks that govern contemporary CSR and CSI practices
and programmes, and how concepts like the Triple Bottom Line understood in the context of People, Planet, Profit (Social,
Environmental, Financial measures) can benefit the organisation and the environment in which the company conducts its
business.
Previously, the terms CSR and CSI were used interchangeably. Subsequently, with the change of the corporate and BroadBased
Black Economic Empowerment landscapes, these terms have been defined separately. Corporate Social Investment is a sub-
component of Corporate Social Responsibility.
Lets begin by defining CSR. CSR refers to an organisations total responsibility towards the business environment in which it
operates. CSR encompasses a broader solution to the Triple Bottom Line mentioned above.
The term Corporate Social Responsibility came about in the late 1960s and early 1970s after many multinational corporations
used it to describe organisational activities that impacted their responsibility towards the greater environment. CSR originated in
philanthropy. Currently it supports projects external to the normal business activities of a company that are not directed towards
making a profit. Typically, such projects have a strong developmental approach and utilise company resources to benefit non-
profit organisations and communities. CSR spend must not be confused with marketing spend, which is utilised to promote the
profile of the company brand.
CSR Standards and Practices
ISO 26000 is the recognised international standard body for CSR. The ISO 26000 standards benefit CSR because they provide
clarity on an organisations concepts, terms and definitions related to social responsibility. ISO 26000 intends to assist
organisations in contributing to sustainable development. The standards provide insight into trends and characteristics of social
responsibility. ISO 26000 therefore aims to integrate, implement and promote socially responsible behaviour throughout the
organisation and in its engagement with its stakeholders.
It is important for businesses not only to provide products and services to satisfy the customer, but also to ensure that the business
is not harmful to the environment in which it operates. In order for an organisation to be successful, the business must be built on
ethical practices. Companies are increasingly pressurised to behave ethically. This pressure comes from customers, consumers,
governments, associations and the public at large. ISO 26000 was created with this in mind, to provide guidance on the
international standards on CSR. It is intended for organisations in both public and private sectors, in developed and developing
countries.
These standards motivate businesses to go beyond legal compliance, recognising that compliance with the law is a fundamental
duty of any organisation and an essential part of their social responsibility. Being trustworthy and transparent, however, increases
consumers preference for a company and its product or service.
The King Report on Corporate Governance (South Africa 2009 King III) promotes good social and environmental practices as
part of good corporate governance. It is closely aligned with the standards for international corporate governance. The JSE
(Johannesburg Stock Exchange) Securities Exchange prescribes compliance with King III for listed companies.
CSR focuses on achieving economic success through responsible corporate governance in a companys core area of business.
CSR pushes organisations to do better because their actions affect customers, suppliers, employees, shareholders and the
community at large. Partnerships with the communities, particularly those that have been disadvantaged, can help companies
build productive relationships and stimulate economic growth in disadvantaged areas.
Around the world, companies are motivated to make their business decisions more sustainable by applying the principles of CSR
within their organisations. Examples include the protection of human rights, drawing up and implementing employment and
environmental standards, and minimising corruption.
Choosing the Right CSI Strategy
Corporate Social Investment is a strategically focused investment in bringing about meaningful transformation that is in line with
core business objectives.
There are four CSI strategies, organisations usually fit in one of the following. These include:
Obstructive strategy these are companies that meet economic demands;
Defensive strategy these are companies that meet economic and legal responsibilities;
Accommodative strategy these are companies that meet economic, legal and ethical responsibilities; and
Proactive strategy these are companies that meet economic, legal, ethical and discretionary responsibilities.
It must be the goal of every organisation to use a proactive strategy where they do what is right, meet legal obligations and
contribute to the community, while still making a profit. A well-known example of this strategy is the Tylenol case in 1982.
Johnson & Johnson spent over $100 million dollars recalling Tylenol, its best-selling product, after someone tampered with
bottles of the painkiller. The result was a rise in consumer confidence despite the contamination scare.
Companies that operate with business ethics have a competitive advantage because consumers are more willing to trust ethical
brands and remain loyal to those products, even during difficult periods. However, not all businesses operate in the same way.
Ethical companies that relocate their manufacturing facilities to developing countries must not tolerate certain practices that are
acceptable in some of those countries, such as child labour, poor health and safety, poverty-level wages and coerced employment.
It is important for companies to understand the importance of operating ethically and to measure their success by more than just
profitability. Corporate Social Responsibility is more than just philanthropic activity. There must be measurable and sustainable
action with each programme that is implemented.
In conclusion, by becoming a good corporate citizen, an organisation can improve its competitive edge in respect of attracting
and retaining investors, clients and employees. If carefully aligned to the core business strategy (as well as to company and
industry charters from BroadBased Black Economic Empowerment, Social Responsibility Index and Global Reporting Index),
organisational CSR and CSI strategies can maximise opportunities for South African and international corporates. This will
enable them to go beyond compliance and a tick-box exercise, to good corporate citizenship and sustainability
http://regenesys.co.za/2013/11/importance-corporate-social-responsibility/
Why You Shouldn't Jump on the
CSR Bandwagon
by Nicole Fallon, Business News Daily Assistant Editor | May 27, 2014 09:14am ET
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Corporate social responsibility won't work in the long run if
you're doing it for the wrong reasons.
Credit: CSR image via Shutterstock
View full size image
Corporate social responsibility (CSR) is all the rage among brands today.
"Giving back" and "doing good" have become the mantras of many companies
hoping to appeal to the modern generation of consumers, who are increasingly
concerned about global and social issues. But the motivation behind many
companies' CSR efforts actually provides the very reason that
they shouldn't take on socially responsible initiatives.
A recent report by the Public Relations Society of America found that CSR
efforts are primarily driven by a need to keep up appearances, rather than a
genuine desire to help the community. The top motivators for brands' CSR
included reputation (88 percent), competitive positioning (71 percent) and
profitability (56 percent).
While a brand should consider the consumer appeal of charitable work, that
shouldn't be the only reason to get involved. Ryan McCarty, director of
customer and employee relations at national Verizon Wireless premium
retailer The Cellular Connection, said that a brand's motivation for CSR makes
a big difference in customer perception. [15 Great Examples of Socially
Responsible Businesses]
"Sometimes, CSR becomes a patch sewn on the outside of what the everyday
business is, like when it's a large corporate check written to some
organization" said McCarty, whose job is implementing CSR initiatives for the
"Culture of Good" at The Cellular Connection. "We wanted our give-back to be
more of a thread that weaves through everything we do, from recruiting
people that share our sense of responsibility, to employee training and the
work experience, etc."
McCarty believes that CSR intended to save a failing product or brand won't
work in the long run. Instead, a company needs to have already achieved
success before it begins CSR efforts.
"If it's about reputation laundering or saving your brand, you shouldn't give
back," he told Business News Daily. "You need to resolve what's wrong with
what you're doing first. If your boat is sinking, you can keep patching the
holes, but you really need to dock it and repair it. Then you can leverage your
success through CSR."
Companies that want to achieve that success must make building consumer
trust and brand authenticity the top priorities, McCarty said. He offered the
following tips for creating a genuine brand identity that ties into your CSR
strategy.
Take an honest look at your company. If you're trying too hard to
appear 'authentic,' you won't succeed. Companies need to examine
themselves and discover whether they truly care about doing good, or
just about looking good. If you and your team are only motivated by
boosting your brand reputation, then just focus on that. Don't try to be
something you aren't.

Localize your give-back. Saving the world is a noble ambition, but
logistically, it's difficult to truly gauge your impact when you just write a
check to a charity. At The Cellular Connection, McCarty encourages his
team to engage in local grassroots volunteer activities, so all employees
have the chance to get involved.

Designate a CSR leader. Whether it's you or another person at your
company, make someone the designated point person for your CSR
initiatives. This individual needs to be the one who motivates the team
and focuses on building social responsibility into the company culture.
Otherwise, your company's efforts can get lost in the shuffle and begin
to feel like a chore or just another to-do list item.
The key, McCarty said, is making CSR a movement, not a moment in your
company.
"You need to engage every employee and give them the opportunity to give
back," he said. "When 'we' do things as a company, it should really mean 'we.'
There's a sense of fulfillment in that."
http://www.businessnewsdaily.com/6475-csr-brand-
authenticity.html


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