Above all, a CSR policy needs to be built on a firm economic foundation so the organisation can sustain its CSR activities without detriment to its own financial health. In fact, a well designed CSR strategy will improve the organisation’s financial performance!
While CSR is currently the most commonly used term for the way that organisations integrate their social, environmental and economic concerns into their operations, there are also a number of other terms in relatively common usage. These include corporate responsibility, corporate accountability, corporate ethics, corporate citizenship, sustainability, stewardship, triple bottom line and responsible business.
Whatever the preferred terminology, though, it is vital to understand that CSR is continually evolving in line with the changes in the world around the organisation – as well as changes within the organisation. Thus a CSR strategy can never be allowed to stagnate; it needs to be continually re-evaluated and re-defined with time.
Very often such evolution will be determined by an organisation’s priorities and what is sensibly achievable at any given time. Consequently, many organisations decide to set themselves sensible goals at the outset of their CSR journey and add to them as the early targets are achieved.
Typical benefits from implementing a CSR strategy include:
- Improved anticipation and management of social,environmental, legal, economic and other risks.
- Increased efficiencies in performance of staff and built assets, leading to cost reductions.
- Improved reputation/credibility with staff, customers, regulators and other stakeholders – but only when improvements are tangible and demonstrable.
- Addressing demands of customers that require their suppliers to mirror their own CSR commitments.
- Enhanced ability to recruit and retain staff, particularly in areas of skills shortages where candidates have considerable choice.
- Wider opportunities for building strong, profitable supply chain relationships with like-minded suppliers.