Resources - Frequently Asked Questions

How do I measure the bottom line benefits of implementing a CSR policy?

Measuring the direct profitability of Corporate Social Responsibility remains a problematic issue.  Many organisations who have invested in CSR have recognised the added value and noted the benefits, but have found it difficult to make an exact match between expenditure and profit. 

Despite this complication, there are some measurements which can reveal the effectiveness of CSR and provide some indication of its bottom line benefits:

  • Employee turnover.  A reduction in employee turnover will reduce your recruitment costs (administration, interviewing resources and time, training, inductions, any costs incurred by temporary staff).
  • Productivity.  Improved staff morale and better teamworking skills have been linked to CSR policies.  Monitor outputs and consider whether any CSR initiatives may have had a bearing on these.
  • Sickness or absence. As with staff turnover and increased productivity, an improvement in this area has been linked to CSR initiatives.  Review your sickness and absence records and see whether there has been an improvement in these levels following the introduction of CSR measures.  This could save your organisation money in terms of sickness pay, cover pay and lost productivity.
  • Market access.  Working with VSOs or improving your profile through promoted CSR activities can lead to new consummers / clients and better engagement with the community. Ask for customer feedback and try and determine where new customers have been directed from. Cross check any increases in consummers or new consummer bases with your CSR activity.
  • Talent pool. Has the calibre of applicants improved following your introduction of CSR policies? Are you receiving more applications for positions? Many new graduates have identifed CSR as a key factor in their search for employment.  

What is the relationship between legislation and Corporate Social Responsibility?

Corporate Social Responsibility is often linked with best practice, with the concept of going beyond the minimum and working towards added value.

There is currenty legislation relating to CSR (Health and Safety legislation, for example) and initiatives promoting CSR (Gift Aid, for example), but the balance between government intervention and organisation's initiative and capacity, needs to be reached.

The following legislation has an influence on organisation's CSR behaviour:

Pensions Act Amendment 2001

What is the best approach to Corporate Social Responsibility?

There is no definitive model for Corporate Social Responsibility. Whilst the case studies and tips provided on this website offer some suggestions, one of the benefits of Corporate Social Responsibility is that it can  - and should - be specifically tailored towards your organisation and your organisation's capacity and objectives.

Regardless of size, capacity, field or business objectives, CSR initiatives can be developed by all organisations and can assume a number of forms.  The following suggestions will enable success in whichever model is most appropriate for you:

  • Communication - throughout the organisation and with partners to ensure consistency and shared objectives.
  • Support - from all levels, including management.
  • Preparation - to ensure efficient and beneficial practices.
  • Organisation - to enact the practices and sustain any CSR initiatives through embedding them in the organisation's policies and procedures.

What is Socially Responsible Investing (SRI)?

Socially Responsible Investing is, as the title suggests, investment with ethical or socially responsible considerations.  It refers to the stocks and companies that share holders are prepared to put money into and the priority that they give to social responsibility in their selection processes.

The relevance of SRI is twofold, referring to:

  1. Organisations that want to increase support from agencies looking to make socially responsible investments;
  2. Organisations or individuals considering investment.    

FTSE4Good is a series of benchmark and tradable indices facilitating investment in companies that meet globally recognised corporate responsibility standards whilst the Good Money website provides further information on SRI.

How do I identify CSR benchmarks?

Award Schemes

Annual award schemes can support your public profile and provide a clear indication of your successes in relation to CSR.  The most well known initiatives are: 

  • The BiTC award for excellence
  • The ACCA Awards for Sustainability Reporting

Thsees awards concentrate on your report and, using a stingent set of criteria, ensure that this is of a high standard; however, they can somewhat neglect the implementation, systems and procedures which accompany the documentation.  The feedback offered on the report can provide some useful insights and guidance. 

Indicies

In line with Socialy Responsible Investing initiatives, indicies such as the Dow Jones Sustainability Index and the FTSE4Good Index reflect organisation's Corporate Social Responsibility standing and provide an indication of the level of environmental or social risk. It is worth noting that these indicies are developed from questionnaires completed by the companies rather than scientific studies; however, this does not prevent companies benefitting from a high rating or using their rating or raise their public profile. 

Ratings

Using external agencies or set criteria to rate your organisation's CSR success can provide a good benchmarking tool. The main systems are:

  • Global Reporters. This aims to identify the year's 50 best non-financial reports worldwide, also taking into account existing rankings from other sources.
  • The Accountability Rating. This measures the extent to which companies have embedded socially responsible practices and is run by csrnetwork, in partnership with AccountAbility. 

Internal benchmarking

The above methods consider your Corporate Social Responsibility practices in relation to other organsiations and set criteria, but for many organisations, internal benchmarking may be the first, crucial step on the way to CSR best practice.

Gathering and then review information to monitor progress through:

  • Interviews. With managers, employees, stake holders, partners, suppliers and consummers.
  • Organisation. CSR frameworks: encompassing all the areas addressed on this site, with clear structured steps and indicators in each section.
  • CSR self assessments.
  • Consummer and employee satisfaction questionnaires.
  • Sickness and absenteeism records.
  • Recruitment and retention records.

Should I report on my CSR procedures?

Reporting on your organisation's CSR procedures ensures that you reap any benefits that your actions engender. As this site has illustrated, many companies already undertake CSR related activities (for example, through recycling paper or using fair trade coffee), and these activities should be captured for maximum benefit and to ensure that they are sustained.

CSR reports also reinforce the honesty and transparency of your organisation, adding a further dimension and credibility to any CSR claims.  With an emphasis on clear and consistent communication, CSR or sustainability reports can provide a solid foundation for your business' development.

Audience

  • What do your stake holders want or need to know about your CSR practices?
  • How is CSR relevant to the employees experience of your organisation?
  • How will the customer be affected by any CSR initiatives?

Purpose

  • How does CSR feature in your organisation's development strategy?
  • How does CSR relate to your organisation's objectives and values?
  • What are the benefits (financial and non-financial) of your CSR initiatives?

Accuracy

  • Identify areas for development as well as areas of strength
  • Ensure that all claims can be substantiated and proven
  • Be realistic about your improvements in terms of timescales, costs and resouces

Measurements

  • Establish systems or measures to monitor different areas of CSR
  • Present facts and quantifiable measures, where possible
  • Spend time developing these systems to ensure that they are fit for purpose and effective

Relevance

  • Tailor your report to the capacity, objectives and resources of your organisation
  • Set targets to reflect your base line and your objectives
  • Ensure that the external contexts are considered, for example, does your local community require specific forms of support? Are there groups of marginalised individuals that you would like to reach? Is supporting a supplier your priority?

Accessibility

  • Reports should be clear and easy to understand
  • Use plain English and avoid using specific or specialist terminology
  • Consider a range of formats

Credibility

  • Include external agencies or measures to substantiate your claims
  • Involve stake holders to adopt an inclusive approach
  • Work with and learn from peers and other

How can I use CSR to promote my business?

CSR is primarily about "doing the right thing" - but it is also about making business sense: promoting your business and raising your public profile.

The following suggestions will support you in communicating your business' CSR initiatives, and ensuring consistency, clarity and effectiveness in your communications.

  • Practice what you preach! If your business promotes environmentally friendly practices, make sure that your packaging is recyclable - at all stages of your product's life. If you promote personal development, what programmes do you offer to support this?
  • Embedding CSR: Ensure that all your CSR activities are documented and that strategies, policies or reports are accessible and available to your stake holders.  Add a section on CSR activity to your business' newsletter or even add a reference to responsible businesses to your profile or company emails.
  • Publicity opportunities: Ensure that any events or schemes which you are sponsoring or involved in are well publicised through, for example, inviting the local press or local radio stations.  Use posters, fliers and leaflets to further promote these activities.
  • Partnership working: Engage with other businesses currently exploring CSR initiatives and voluntary sector organisations.  Extend the reach and awareness of your work through partnerships and networks providing mutual support.

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