Professional Documents
Culture Documents
E-mail: info@wbcsd.ch
Internet: www.wbcsd.ch
Contents
Foreword
Executive summary
Section 1:
The Headlines
Section 2:
Soundings a regional
perspective
Section 4:
ISBN 2-940240-078
Section 5:
Practical steps
and hands-on tools
CSR navigator
The way forward: questions
and queries
14
20
23
Appendices:
Appendix 1: Self-assessment questionnaire
24
26
29
Appendix 4: Resources
30
Acknowledgements
31
Process note
32
32
Foreword
Executive summary
AS CO-CHAIRS OF THE WORKING GROUP which has produced this Report on corporate
the principles and practices by which companies can best live up to their
means and what represents good practice. After an initial Report, Meeting
We have talked and listened to many people, inside and outside business, in every continent, coming from
many different perspectives. We welcome the growing recognition, reflected for instance in the UN
Secretary-Generals proposal for a Global Compact, that business is part of the solution to creating a more
stable, healthy and prosperous world. International business must build on that recognition and examine its
Sustainable development, like building a successful business, requires taking the long-term view. It also
requires the integration of social, environmental and economic considerations to make balanced judgements
for that long-term. Increasingly that is what our WBCSD members, and companies like them, are trying to do
IGOs (inter-governmental organizations), NGOs (nongovernmental organizations) other elements of civil society
they manage any other strategic business issue and there are a
these societal expectations. That is why, in this Report, we have urged companies to declare openly what
their values are and to communicate how well they live up to them.
We live in a world which says Dont tell me, show me, where power must expect to be challenged, and
where transparency is recognised to be best both for markets and society. Business must take full account of
Our basic message is very simple. Business is not divorced from the rest of society. Business and society are
interdependent and we must ensure, through mutual understanding and responsible behavior, that the role
specific initiatives.
of business in building a better future is recognized and encouraged. We hope this Report will be seen as a
contribution towards increasing such understanding and encouraging the behavior which will underpin it.
neighbor and showing that you care on the one hand and being a
successful business on the other, are flip sides of the same coin.
Richard Holme
Phil Watts
Rio Tinto
that our readers are, at least to a degree, already familiar with the
CSR issue and have seen our first Report. However, we have
HEADLINES
these pillars, social responsibility, is firmly on the international policy agenda although a
main sections:
THE WAY
FORWARD
questions and queries
business benefits;
what CSR means, what represents good practice, and tackling the
SOUNDINGS
a regional perspective
an
exploratory
journey
towards
These
early
conclusions
provided
the
CSR
NAVIGATOR
PRACTICAL
STEPS
the
The work was done by WBCSD members: Severn-Trent, CH2M Hill, Arthur D. Little and
ERM in collaboration with the Institute for Social and Ethical Accountability (ISEA),
PricewaterhouseCoopers (PwC) and Riverside Management Consultants (RMC).
SECTION
HEADLINES
who have a stake in, or are affected by, their operations whether
Our activity over the past months has significantly broadened and
Headline #1
others expectations.
Headline #3
human rights can all demonstrate the will to be a good local citizen
securing its continued license to operate; and reducing risk and its
be underestimated;
on local life.
Since that Report, the key conclusions of which are set out in
it in action.
for and that they should speak openly and directly about their
Headline #2
Global principles
local partnership
are integral
SECTION
2
998
ber 1
eptem
S
s
d
erlan
Neth
SOUNDINGS
999
d May 1
Thailan
Bangkok
9
e 199
s J un
ipine
l
l
i
h
eP
a Th
Manil
a regional perspective
WBCSD
stakeholder
dialogues
he
out T
ijkerh
w
d
r
o
No
ay 1999
hana M
Accra G
tember 1999
Rio de Janiero Brazil Sep
Buenos Aires Argentina
September 1999
TAIWAN
CSR is the contribution
USA
THE NETHERLANDS
capital, in addition to
personal transformation,
THAILAND
to the development of
natural and human
THE PHILLIPINES
CSR is about business
giving back to society
based priorities.
Subsequently, we have discussed these issues with business and
BRAZIL
ARGENTINA
GHANA
and generalizations.)
It is significant that people are talking about the role of the private
The above definition was developed in 1998 for our first CSR
There was widespread understanding and support for the concept
notion of:
and remediation).
be self-sufficient
the environment
SECTION
a relatively new tool but many felt that in order to be useful, any
partnerships
and drink clean water. The WBCSD did not attempt to define
the term meant to participants, and ascertain their ideas on the role
Community involvement
of business.
economic development
which shape the perception of what human rights are and what
Thailand
Employee rights
Supplier relations
areas:
thought to be limited.
Brazil
Human rights
Employee rights
Environmental protection
Community involvement
Supplier relations.
Environmental protection
We were told that there were some important issues missing from
Human rights
such compliance is a given, in some areas this is still not the case.
10
11
SECTION
TAIWAN
companies to encourage
agenda and, if so, how was it being dealt with by companies. The
USA
Accountability and
Transparency is critical.
was already important today but was likely to become even more
appropriate auditing
creditable reputation
relevant in the future. Even those who regard CSR as a cost in the
longer term.
THE NETHERLANDS
We need responsible
government before we
can have responsible
Ghana
Real development
translates into
capacity building
ARGENTINA
and BRAZIL
make a profit
partnerships
GHANA
THE PHILLIPINES
The goal of the company is
to make sufficient profit and
It is about business
the importance of looking to the future and the desire for CSR
highly regarded.
THAILAND
created by others
enhance companies
healthy business
business
subject. Many also felt that fear of bad press coverage and of
but it had not yet spread into local SMEs. Why? CSR was still
Corporate social
responsibility is
the backbone of
sustainability in
public image
12
The Phillipines
Argentina
13
SECTION
PRACTICAL
STEPS
Introduce
CSR
select the right tools for the job, you need to assess what stage you
have reached. For example, use the following list of six phases,
which correspond to the flow-chart, right, in order to determine
which tools will be most valuable at any particular phase:
Identify key
features
Monitor
performance
Stakeholder
engagement
Vision,
strategy,
policy
Getting started
Alter course,
modify
Implement
management
action plan
Develop
management
action plan
Engagement
loops
Position the
organisation
Monitoring,
reporting
time the ink, even if virtual, were to dry. Indeed, some might
aware of this, we have tried not to reinvent the wheel but rather to
they manage any other strategic business issue. The flow chart,
Stakeholder Footprints
You will quickly see how key areas like vision, commitment, values,
questionnaire.
Those for whom the answers are yes should be considered key
you hear, your company can devise strategies and plans to avoid
As you progress from one phase to the next, there are many tools
conflicts and gain insights which help preserve and enhance your
now available to assist you. They vary from policy reports and
help you define the stakeholders (the who) and the issues
14
15
SECTION
rs
ne
ow
ny s
a
mp der
Co ehol
ar rs
es
h
S
ye
to
plo
es
v
m
In
E
Stakeholder Footprints:
if the shoe fits...
Stakeholders
rs
me
sto
Cu
s
es
sin
Bu ers
n
rt
pa
rs
lie
pp
Su
s
tor
eti
mp
o
C
nt
me
rn
ve rs
o
o
G lat
u
reg
s
up
Os gro
NG ure
s
ies
rs
es
nit
Pr ence
mu
u
l
m
f
o
In
C
Values and
governance
Regulation
and controls
Business
operations
Accountability
and disclosure
Human rights
Employee rights/
Working conditions
and verifiable.
Business context
Product impact
Social impact/
investment
CSR performance. The vertical axis shows the key CSR issues
while the horizontal axis shows the key stakeholders. Each cell
Impact on
other species
Impact on
environment
Key:
some interest
strong interest
weak interest
protection and promote social equity. Gone are the days of trust
of stakeholders.
audiences.
matrix will be quite different and will depend on such things its
indicators that will suit all companies at all times: what is needed is
over time.
reporting and not all types of reporting activity are suitable for all
enhance
visit the CSR site on the WBCSD website for some of these details.
16
economic
development,
ensure
environmental
17
SECTION
CSR Indicators:
equipping yourself for
better decision-making.
Company owners
Shareholders
Investors
Employees
Customers
Business partners
Suppliers
Competitors
Government
Regulators
NGOs
Pressure groups
Influencers
Communities
Adherence to values,
number of calls to hotline,
employee perception
Formalisation of values in
relationships, occurrence
of values clauses in contracts
Code of conduct,
supplier relations
incidence of code
breaches
Integrity, comments/
actions supplier
satisfaction
Disagreements over
responsibility, complaints,
public comment via press
Ethical imperialism,
stakeholder perception
Use/abuse of perks,
incidence of disciplinary
procedures
Meeting specifications,
incidence of customer
complaints
Open/covert dealings,
partner perception
Presence of bribery,
incidence of disciplinary
procedures
Restrictive practices,
incidence of referrals to
monopolies investigations
bodies, claims and litigation
Compliance/non compliance,
incidence of fines,
regulatory audits
Use/abuse of legal
protection,
stakeholder perception,
public comment via press
Compliance/non-compliance
with planning regulations,
incidence of infringements
Performance appraisal,
% of employees assessed
on corporate social
responsibility criteria
Number of investigations
by advertising standards
bodies, number of ads
withdrawn
Treatment of intellectual
property claims and
litigation
Method of pricing,
supplier satisfaction,
price differentials
Adherence to industry
standards,
receipt of awards,
stakeholder perception
Commercial espionage,
claims and litigation
Appropriate information,
customer satisfaction,
demonstrated reduction in
customer requests/concerns
Openness,
partner satisfaction,
breaches of contract
Use of media,
stakeholder perception
Reporting,
complaint standards,
standard certifications
Appropriateness of
measures/indicators,
stakeholder acceptance
Disclosure of information,
clarity and accessibility of
information (by fact/
surveys awards)
Partnership standard
concerning human rights,
compatibility rating
Equity of opportunity,
profile of suppliers
(by size; gender; ethnic
origin, etc.)
Competitive behavior,
adherence to industry
standards
Investment criteria,
level of adherence to human
rights regulations
Adequacy of disaster
planning/response,
no. of incidents/accidents,
results of third party audit
Employee rights
/ Working
conditions
Relativity of pay-earnings
ratios
Freedom of association,
frequency of works committee
meetings, training and
development
Relative standard
performance of partner
against corporate
benchmarks
Tied contracts,
incidence of complaints
Bonded labor,
certification against standard
that prohibits bonded labor
e.g. SA 8000
Adherence to standards,
incidence of breaches
Business context
Types/quality of alliance
formed, satisfaction of non
executive directors
Contract terms,
customer satisfaction,
customer retention
Use/abuse of power,
partner satisfaction,
longevity of partnerships
Payment terms,
complaints, surveys of
supplier satisfaction
Cartels,incidence of
industry investigations
Use/abuse of monologue,
stakeholder perceptions,
incidence of investigations
Ethical sourcing,
adherence to voluntary code
(e.g. ETI)
Unethical products,
inclusion rate in ethical
funds
Involvement in R&D/
innovation, life cycle analysis
and use of results in design
process
H&S performance,
performance against industry
benchmarks, e.g. responsible
care chemicals process
Product stewardship,
quantity of hazardous NPO
returned to process or
market by reuse/recycling
Safety of products,
incidence of NGO/
regulatory targeting
Harmful substances,
GHG emissions,
releases to land and water
of non-product output
Meeting guarantees,
complaint level
Employee involvement,
% of employees volunteering
for corporate community
investment projects
Disclosure/discussion of issues
e.g. impact of site closure,
partner satisfaction/complaints
Proportion of local
suppliers/contractors
Disclosure discussion,
re. Impact of divestment,
re-employment levels
Joint programs,
stakeholder perception
Adequacy of measures
indicators and monitoring,
stakeholder perception
Impact of investment,
impact assessment
Appropriateness of farm
practices, number of
campaigns boycotts, quantity
of organic products sold
Values shared,
no. of partnerships accepted
sanctioned or rejected,
Conditions of animal
husbandry,
breaches of government/
industry regulations
Transparency about
research findings,
stakeholder perception
Quality of research,
controls, compliance with
governments standards
Quality of conservation
programs, stakeholder
perception, comments of
independent expert
Quality of impact
assessment,
third party review results
Disaster planning/risk
assessment, incidence of
disasters/near misses,
% of employees trained
Resource consumption,
quantity of resource saved
through employee action
Environmental standards,
% of partners with external
certification of EMS recognised
against independent standard
Commercial exploitation,
market share, monopoly
investigations complaints
Meeting standards,
third party ratings
and awards
Effectiveness of use of
expertise, stakeholder
perception, investment in
environmental research
Values and
Governance
Regulations and
Controls
Business
operations
Accountability
and disclosure
Human rights
Product impact
Social impact/
Investment
Impact on other
species
Impact on
environment
18
Stakeholders
19
SECTION
Dete
rmin
orth
"
ne
ss
ca
se
Focu
s on
re
si
su
bu
ea
an
d
c
gi
te
ra
st
direction and demands vision, but does not dictate the speed of
ac
co
un
t
tic n
e
th
-i n
il d
Bu
care
agne
Hand
le wit
h
ur "m
NAVIGATOR
Focus on individuals
e yo
CSR
Be a
indiv
idua
ls
d
goo
st
gue
Repu
y
legac
r
u
o
ey
rmin
e
t
e
D
tation
matte
rs
Demonstrate
top-level
involvement
and
commitment. If you dont, your company will fall behind, and any
attempt to embark on the CSR journey will be longer and harder.
20
ue
ialog
nd d
ate a
Deb
organization.
es
e
oy
l
p
m
e
t
Pu
t
if rs
w yo
ur n
eigh
bor
Pu
r
Kno
message is: start now. Involve your best people throughout your
su
sm
ar
t
pa
rt
ne
rs
hi
ps
21
SECTION
SECTION
THE WAY
FORWARD
questions and queries
against this.
Questions of implementation
set out below some of the questions which need to be asked and
operations?
objectives will sap peoples energy and waste time and money.
win/win situations.
do our business
seen to be doing, the right thing for reasons other than immediate
financial returns. Transparency and credibility will build a strong
Questions of principle
the ground?
of operations?
Kofi Annan
Davos, 1999
company look?
and environmental
standards directly, by
employer/employee relations?
Take a positive and proactive attitude to measuring and reporting
progress. Whatever method your company selects, the important
22
23
APPENDIX
Self-assessment questionnaire
Answer this questionnaire to gauge now well your company is
VALUES IMPLEMENTATION
engaging CSR.
VISION
STAKEHOLDER ISSUES
Those matters which stakeholders believe a
company influences
COMMITMENT
A formal expression of a companys intentions
in the area of CSR
Yes
The policy was formulated in consultation with
stakeholder groups
Name:..................................................................................
Title:.....................................................................................
PROGRAMMES/TARGETS
The CSR program is the plan for implementing CSR policy,
and will where applicable, include targets to achieve
performance improvement
CSR policy
VALUES
The fundamental principles to which a company
declares adherence
24
Products/Services
past
present
planned
Business operations
past
present
planned
FORMULATE POLICY
CSR policy is the set of principles which inform and guide the
implementation of a corporate social responsibility strategy in
a company
The company has formulated a CSR policy?
REASSESSMENT
The process by which a company continuously reviews and
updates CSR strategy and actions taking account of
stakeholders changing expectations
MONITOR/MEASURE PERFORMANCE
process
against targets
impacts of its:
stakeholder groups
IMPACT ASSESSMENT
INDEPENDENT VERIFICATION
Employees
The public
Other stakeholder groups
SUPPORT SYSTEMS
The part of the overall management system which includes
the organisational structure and processes for supporting the
management, measurement and auditing of CSR performance
There is a system for:
Board/Committee
25
Monitor
WBCSD tools
Meeting Changing
Expectations
WBCSD CSR
working group
Stakeholder Engagement
Matrix
WBCSD CSR
Working Group
WBCSD CSR
Working Group
CSR Management
System Model
WBCSD CSR
Working Group
CSR Indicators
Guidance
WBCSD CSR
Working Group
WBCSD CSR
Working Group
Generic tools
Stakeholder dialogue
Various
Social audit
Various
Management guidelines
Strategic alliances
Social investment
programmes
Various
Various
Various
Various
Proprietary tools
Sustainable Development
Masterclass
Arthur D. Little
CSR pyramid
David Logan
Reputation Assurance
(RA5) framework
PricewaterhouseCoopers
Stakeholder Dialogue
Guidelines
ERM Social
Strategies
Stakeholder Perception
Assessment Methodology
ERM Social
Strategies
Stakeholder Value
Analysis Toolkit
Arthur D. Little
Reputation Assessment
Arthur D. Little
Inside Track
Equal Opportunities
Quality Framework
Equality Foundation
Summary
Monitor
ERM Social
Strategies
Implement
Develop
Function
Position
Source
Summary
Implement
Develop
Position
Function
Identify
Source
Introduce
Tool
Tool
Identify
CSR tools
Introduce
APPENDIX
ERM Social
Strategies
Arthur D. Little
University of Surrey
Behaviour Check
Riverside Management
Ellipse Analysis
Dragon International
Sta-dia Model
Dragon International
SD Diagnostic
Arthur D. Little
FOSTER
Corerelation Consulting
Oikos performance
presentation/ decision
making through social
sculpture
Oikos
26
27
APPENDIX
APPENDIX
Intellectual Capital
Services
Corporate Community
Investment
London Benchmarking
Group/Business in the
Community
New Economics
Foundation
Summary
Monitor
Implement
CDO, University of
Ghent
Develop
Chain Analysis
Position
Function
Identify
Source
Introduce
Tool
Anderson Consulting
Anderson Consulting
Internal Stakeholder
Dialogue
Arthur D. Little
Corporate Economic
Social Environmental
Reporter (CESER)
Corporate Citizenship
Company
Community Investment
Guidelines
Key characteristics of
social reports
Please note that this is only an example of what is currently
4. Communities
Criteria
Partners
1. Organization Profile
number of employees
number of locations
5. Compliance
ERM Social
Strategies
what objectives?
7. Stakeholder Involvement
accountability
training/awareness raising
Balanced Scorecard
Various
SA8000 certification
CMS Ltd
PricewaterhouseCoopers
diversity/equal opportunities
training
hours of work
job security
contract labour
Report verification
PricewaterhouseCoopers
Supply Chain
Management
PricewaterhouseCoopers
3. Employees
PricewaterhouseCoopers
addressing these
CSR reporting
Results
Stakeholder enagament
Arthur D. Little
6. Business Relationships
2. CSR Approach
28
29
APPENDIX
Resources
Acknowledgements
Business organizations:
Conference Institutions
www.bsr.org/
www.riia.org
www.ebnsc.org
www.conference-board.org
could only have succeeded with the wisdom and support provided by the many
Student Organizations
member companies and individual contributions over the past two years.
www.iccwbo.org
I WOULD LIKE to extend my appreciation to the all the members of the WBCSD
Working Group on Corporate Social Responsibility. This was an ambitious project and
Economiques et Commerciales
The Prince of Wales Business Leaders Forum
www.aiesec.org
www.pwblf.org
This team effort was lead by our co-chairs Richard Holme, (Lord
Intergovernmental Organizations
Labour Organizations
www.unhchr.ch
www.icftu.org
Environmental and Social NGOs
www.undp.org
Amnesty International
www.amnesty.org
the International Foundation for Education and Self Help for their
www.unctad.org
Transparency International
www.transparency.de
Handford who, along with Marcel Engel ran our dialogues with
www.ilo.org
and writing. Warmest thanks to: Jim Lamb (Severn Trent), Judith
www.the-environment-council.org.uk/
Bjorn Stigson
President, WBCSD
30
31
Process note
Peter Sutherland
partner organizations.
people can exchange ideas and best practice in this field. The
Ordering information:
WBCSD, c/o E&Y Direct
PO BOX 6012, Fairfax House
Southfield Lane, Tockwith
North Yorkshire YO26 7YU
United Kingdom
Tel: +44 1423 846 336
Fax: +44 1423 846 030
E-mail: wbcsd@e-ydirect.com
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