Question

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As a CSR senior director at a Canadian manufacturing firm, what would you implement in the medium to long term to institutionalize your firm's CSR policies? Why would you do this?

Answer 1

Making Corporate Social Responsibility (CSR) part of a company's core business is not easy. The topic has evolved and today it has to do with how the company is impacting its communities and the environment. Today, practically all the major corporations known worldwide have included CSR as a key element in defining their growth and product development strategies. Many have already successfully applied CSR policy for years. The institutionalization of CSR policy in a company is not declared. Requires short and long term planning.

Short term:

* Review of the Mission, Vision and Values statements. Every company that seriously wants to focus on CSR as an added value of its processes, should initiate a review of its mission statement, vision and corporate values. All of them must be aligned with elements that identify the new orientation of the company to consider sustainability and social responsibility as part of its reason for being. McDonalds, for example, includes within its values: "We contribute to the development of the communities in which we operate" and "We operate the business in an ethical and responsible framework." It has clearly included CSR as part of its policy. PepsiCo's vision sates: "To deliver world-class long-term financial performance by integrating sustainability into our business strategy, leaving a positive footprint on society and the environment." Starting the company with a CSR policy requires a review and adaptation of its Mission, Vision Postulates and Values oriented towards a sustainability approach.

* Change management: the orientation towards a CSR policy requires that all work teams are oriented towards this end. This requires empowering and motivating all employees at all levels to commit to achieving it. In this, management has a great responsibility to make this new approach actively assumed by everyone. Commitment comes from top down.

* Information and training: the desire to implement a CSR policy is not enough, it is necessary to be informed and trained every employee on the subject. Everyone needs to understand what it is about. This may require training programs. Issues such as reducing carbon emissions and how the company can contribute can be complex to understand and digest. Employees must understand what their particular contribution may be within the company's production process.

* Identify what the company is doing today: Many companies probably carry out social work or community projects for the conservation of the environment, such as planting trees, cleaning parks, etc. This may be the beginning to facilitate a CSR policy. From there, more ambitious long-term projects can be designed.

* Participation of all staff: it is not enough to link efforts, it is recommended to have a committee, linked with people from different areas so that everyone can make their contributions. Committees are alternatives that can be quickly implemented and show results. Each area is important and will have to contribute to CSR, the programs that each area can implement are equally valuable.

* Set goals and targets:

It is important to establish where the company wants to go, as well as establishing achievable and measurable objectives and developing activities to implement in a certain period. It can start with a measurable and achievable pilot plan and then go on to more ambitious goals and objectives that involve long-term planning.

In the long term, more careful planning is required. Reaching this stage indicates that the company is determined to take CSR as part of its policy:

* Sustainability with innovation: Many companies have introduced changes in their processes to adapt them to sustainability approaches. This could take years. Since 2008 StarBucks has been working on its project to reduce water consumption in its establishments. Since 2004 it has been involved in initiatives to save energy. Likewise, the use of recyclable material for food and drink containers has been one of its objectives for years and is already an integral part of its processes. But, it has been a long way, with a long-term vision.

* Identify Partnerships: Many companies have common CSR goals and objectives. Partnering with other companies and institutions in the supply and value chain requires a long-term vision and commitment.

* Budget: Implementing a CSR policy may require investment. Many companies spend large amounts of money on these plans, making it a factor to consider both in the short and long term.

Why would you do this?

* For ethical reasons: that is, the personal commitment to a better world, from the point of view of the environment and the deplorable conditions of many communities around the world.

  * Improve corporate image and reputation. In the markets, intangibles -brand and reputation- have become fundamental variables to differentiate companies.

  * Improves the work environment and productivity. A good CSR strategy has positive effects on employee satisfaction and commitment.

  * Increased customer loyalty. Consumers admire those companies that value their employees, develop social projects. Therefore, social responsibility is an essential factor to guarantee consumer loyalty.