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Do the right thing book cover

Do the right thing – the practical, jargon-free guide to corporate social responsibility

by Stephen Asbury and Richard Ball
£15 softback 144 pages
ISBN 978 0 901357 42 7

The scope of CSR

If an organisation is to harness these benefits, it needs to consider a wide range of factors. These include community, environment, ethics, human rights, responsibility in the market and its workforce.* Each of these factors is summarised below, before we analyse them more deeply afterwards.

Community

An organisation should consider its impacts on the local and wider community. Investment into the community may take the form of jobs and salaries, charitable donations, staff time and skills, and donations in kind. Transport is an important factor – for example, employees commuting to and from work will affect the local roads.

Environment

An organisation should identify the impact its goods and services have on the environment. As part of its planning, it should seek to minimise negative impacts, for example by investing in habitat creation schemes.

Ethics

An organisation will inevitably be judged on how it makes its decisions, and how these decisions are implemented. For example, would it be ethical to explore for fossil fuels in Antarctica, even if it were allowed?

Ethical principles reflect the values of the organisation, which are seen in the context of the values of its stakeholders and the society in which it operates.

Human rights

A civilised society recognises the right of every individual to liberty, freedom of association, free speech and personal safety. These form the basis for codes of human rights found at the core of national and international laws, such as the UN Declaration of Human Rights.

Responsibility in the market

Organisations can have a real impact on society through their marketing activities. For example, should cigarettes or sugary drinks be advertised during screenings of films for children? Responsibility in the marketplace can strengthen organisations' competitive edge – or damage it.

The key issues include ethical advertising, relationships with suppliers, relationships with customers, distribution, packaging and the process of creating the product or service itself.

Workforce

Recognising organisations' impact in the workplace means understanding the business benefits and the wider social impact of good employment policies. This not only covers the traditional areas of recruitment, remuneration, training and health and safety, but also the growing concerns – and opportunities – of issues such as diversity and equal opportunities.

We will now consider each of these elements in greater detail.

Community

No organisation operates in a social vacuum. They employ people, use suppliers and have relationships with customers. Organisations' decisions on their location affect the local community, as do the employment and procurement decisions they make.

In Chapter 2 we considered the potential impacts of the location of a supermarket, but communities can be equally affected by establishing a new major manufacturing plant or closing down a mine, using local suppliers or investing in deprived areas.

By aligning the organisation's goals with the community's needs, both can benefit. A technique that's gaining increasing interest, particularly in connection with new projects, is the ESIA, or environmental and social impact assessment.

The main steps in an ESIA are:

  • baseline study
  • impact assessment
  • management planning
  • monitoring
  • community consultation.

Baseline study

Field studies are carried out to assess the local demographics (including social groups), flora, fauna, water, soil and pollution levels.

Impact assessment

All the social and environmental impacts associated with a project are identified and evaluated.

Management planning

The measures aimed at avoiding, minimising and correcting the negative impacts are detailed in a management plan. There is a typical mitigation hierarchy included in management plans:

  • prevent
  • minimise
  • restore
  • compensate or offset.

Consultation and local development actions should take place throughout the process.

Monitoring

A programme of monitoring is developed and implemented to make sure that all management measures are being correctly and effectively applied.

Community consultation

Throughout all steps in this process, contact is maintained with interested parties. The most popular community initiatives tend to be links with education and charities, but joint projects are also becoming more common with local regeneration and arts organisations. By investing in local education, for example in projects such as work experience, organisations can help to develop a future workforce that meets their needs. Organisations can also consider the impact on the community of the decisions they make. They can improve 'social capital' through donations to charities or supporting voluntary organisations. In this way, organisations are perceived to be profiting with the community rather than from it.

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