Corporate social responsibility (“CSR”) is like any other important management initiative and requires proactive leadership from the top of the organization. In fact, it is clear that the “tone at the top” is an important factor in the success or failure of any CSR initiative and the directors and officers of the corporation are uniquely positioned to act as internal champions of CSR and proactively communicate with everyone in the organization on a daily basis about the impact of new environmental and social products and services. The directors and officers must also commit to investing the time and effort necessary to explain the corporation’s CSR initiatives to customers and other stakeholders and develop and implement metrics for tracking and reporting progress. While social responsibility certainly extends “beyond the law”, directors and officers must be mindful of their fiduciary duties and understand how laws, regulations and standard contract provisions are rapidly evolving to incorporate environmental and social responsibility standards. Among the issues and activities that will need to be considered in establishing and maintaining effective governance and management processes for CSR implementation are the following:
- Understanding the drivers of enhanced board oversight of sustainability including investors’ expectations as to the role and responsibilities of directors and changing societal beliefs regarding the political and social roles of corporations
- Understanding how CSR is changing the traditional fiduciary duties of directors and officers including the ascendance of the stakeholder-focused model and the introduction of alternative legal architectures for sustainability-oriented businesses
- Working with the board of directors to integrate environmental and social responsibility into the governance structure and the traditional roles and responsibilities of directors
- Assisting the board of directors on the design and implementation of an effective framework for board oversight of CSR and corporate sustainability
- Counseling the board of directors and senior management on the development and implementation of CSR commitments and instruments
- Incorporating reports on CSR initiatives into board meetings and understanding how to create effective environmental and social responsibility committees and integrate sustainability into the activities of other board committees
- Developing job responsibilities for the senior social responsibility officer and designing effective internal organizational structures and systems for managing CSR initiatives and programs and supporting CSR commitments and expectations such as preparation and distribution of sustainability reports and stakeholder engagement
- Implementing formal management systems relating to sustainability-related issues and topics based appropriate standards issued by the International Organization for Standardization (e.g., ISO 14001 (environment); ISO 26000 (social responsibility) and ISO 28000 (supply chain security))
- Reviewing and modifying job responsibilities and compensation arrangements of executive team members, particularly the chief executive officer, to incorporate CSR commitments and attainment of CSR-related performance goals
- Providing education and training to directors and executive team members on sustainability issues including the creation and management of stakeholder advisor groups and teams of external experts
- Assisting directors, executive team members and managers and employees within the internal sustainability group with key CSR-related activities such as transparency and disclosure and stakeholder engagement
- Identifying and counseling directors and officers on ethical issues that will arise as they discharge their duties and responsibilities with respect to CSR
PROJECT PUBLICATIONS
Guides
Sustainability Governance and Management
Handbooks
Corporate Social Responsibility: A Handbook for Sustainable Entrepreneurs
MANAGEMENT TOOLS
Training Materials
CSR – ISO 26000 Basic Training Material
ADDITIONAL RESOURCES
Books
Building a Performance Measurement System
CSR Implementation Guide for Businesses
Structuring and Staffing Corporate Responsibility
Sustainable Management Handbook
Chapters or Articles in Books
Business Strategy for Sustainability
Corporate Social Responsibility and Corporate Governance
Articles in Journals
Corporate Governance and CSR Synergies and Interrelationships
Corporate Social Responsibility and Corporate Sustainability
CSR Theories – Mapping the Territory
How to Become a Sustainable Company
Sustainability: “Embracers” Seize the Advantage
Articles in Newspapers and Magazines
CSR – Director Notes – Sustainability in the Mainstream
Papers
Corporate Social Responsibility and Business Success
Governance and Multistakeholder Processes
The Convergence of Corporate Governance and CSR
Government and Other Public Domain Publications
Caux Round Table Principles for Business
IFC Sustainability Performance Standards
Websites
African Institute of Corporate Citizenship
Business and Human Rights Resource Centre
Business Social Compliance Initiative
Business for Social Responsibility
Corporate Responsibility Officers Association
European Academy of Business in Society
Extractive Industries Transparency Initiative
Global Environmental Management Initiative
International Council on Mining and Metals
International Labour Organization
International Finance Corporation
International Organization for Standardization
OECD Guidelines for Multinational Enterprises
Office of the UN High Commissioner for Human Rights
Prince of Wale’s Corporate Leaders Group
Principles for Responsible Investment
Roundtable on Sustainable Palm Oil
Social Accountability International
Sustainable Agriculture Initiative Platform
The Forum for Sustainable and Responsible Investment
Voluntary Principles on Security and Human Rights
World Business Council for Sustainable Development
World Council for Corporate Governance
RELATED TOPICS
Sustainability and Entrepreneurship
Strategic Planning for Sustainability
Sustainability and Corporate Governance
Corporate Social Responsibility
Stakeholders and Stakeholder Engagement
Sustainability Reporting and Auditing
Sustainability for Small Businesses and Startups
