The complete guide to crafting an effective CSR policy
What is a CSR Policy?
A CSR policy, meaning a Corporate Responsibility Policy, is a policy that aims to keep businesses in check around social and sustainability issues. It is, essentially, the rules that keep an organisation committed to doing good by its people and the communities surrounding it.
CSR policies can take many shapes; there’s no such thing as a CSR (full form: corporate social responsibility) policy that’s suitable for every business, so it’s crucial that you shape your policy for your specific needs. In this piece, we’ll be discussing:
The importance of a CSR policy
How to create a CSR policy
Examples of CSR policies in action
Measuring and reporting on CSR efforts
Best practices for CSR policy success
Your next steps
The Importance of CSR in Business
The importance of a CSR policy can’t be overstated. It coexists with the importance of CSR in business, but you shouldn’t just consider your corporate social responsibility actions in the context of your business. When you’re focused only on your bottom line, you can overlook the tangible and real impact you can have on local communities, who often benefit the most from CSR schemes.
Likewise, CSR and sustainability often go hand in hand. Sustainability can make up your CSR policy, but you also have to consider the wider picture of your responsibility to social groups and communities. A CSR policy is crucial to doing good by people and planet, and we’ve broken down the most important points for you into a list of CSR advantages and disadvantages.
CSR advantages
Gives you a clear idea of your company’s goals and identity
Boosts brand reputation
Increases investment opportunities
CSR disadvantages
Can feel overwhelming and become inconsistent
Financial cost can be high
Difficulty measuring discourages implementation
Overall, the CSR advantages far outweigh the disadvantages. We’ll guide you through how we approach these disadvantages and prevent them becoming an issue for your CSR policy implementation.
How to Create a CSR Policy
As mentioned earlier, every organisation’s CSR policy will appear differently. A corporate social responsibility policy isn’t one-size-fits-all, which can make it daunting to even think about creating one. However, we’ve prepared a CSR policy template for you to look at and make work for your organisation.
To create your corporate and social responsibility policy, you first need to consider the causes you care most about. A well-rounded CSR policy may be laid out like this (and you’re welcome to use this template as you wish):
1. Who you are and what your intent is with your CSR policy
Keeping your goals at the top of your mind – and the top of your policy outline – will ensure your CSR policy doesn’t stray too far from your initial priorities.
2. How you look after your employees
Depending on your goals, your priorities may look different. However, CSR policies often exist to attract and retain top talent, so set out how you’re going to keep your employees engaged, productive, and happy.
3. How you look after your customers or stakeholders
For many businesses, customers or stakeholders are key to your reputation and longevity. How are you going to prioritise consumers and maintain your organisation to their standards?
4. How you look after your investors or decision makers
Your investors and decision makers are key in your business. While it’s important to take a holistic approach to your CSR policy, make sure you’re also including commitments to your investors that ensure you keep their trust.
5. How you look after the environment
Your sustainability ethos is a huge part of your CSR policy. With environmental impact on the forefront of many employees’ and consumers’ minds, examine how you can either cut your organisation’s emissions or return positive eco impact into the community.
6. How you look after the community
The local community surrounding your organisation can take many shapes, depending on the causes you choose to champion. However, community-forward thinking could involve partnering with charities, incorporating volunteering in your workplace, or hosting mentoring schemes within your business.
7. How you’re going to measure your impact
There’s no use making your commitments if you don’t know how you’re going to measure the effect of your CSR changes. Decide which tools you’re going to use to keep track of your success. After all, this will be the easiest way to see what’s working and what isn’t.
8. How you’re going to hold yourself accountable
It’s easy for a CSR policy to fall to the wayside; after all, we’re all busy with work obligations. However, lay out the rules that will ensure you remain accountable and will continue to stick by your CSR policy. Does this look like monthly meetings touching on your goals? Does it involve bringing in external investors or customers to examine your efforts? However it looks, make sure your actions don’t go unnoticed.
Examples of CSR Policies in Action
Looking at CSR policy examples can be a huge step in understanding your own CSR policy. Have a look at these 4 major corporations and some of the actions they take to improve their impact on the world.
Apple Corporate Social Responsibility Policy
For Apple, corporate social responsibility has been a point of interest for decades. Some of Apple’s significant CSR actions include:
Incorporating solar projects in locations in the Philippines and Thailand
Providing training courses to over 4 million people since 2008
Enforced Supplier Code of Conduct taught to over 20 million people
1:1 pay equity for gender, race, and ethnicity
100% renewable energy in all facilities worldwide
Nike Corporate Social Responsibility Policy
With the presence of the Nike corporate social responsibility committee, CSR policy certainly doesn’t fly under the radar. Nike’s commitments look like:
Providing oversight of management’s efforts to ensure that Nike’s dedication to sustainability is reflected in its business operations
Monitoring the company’s progress towards its diversity and inclusion objectives
Reviewing and evaluating social, political and environmental impact, trends and issues in connection with the company’s business activities
Overseeing protection of Nike’s corporate reputation and other matters of importance to its stakeholders
Amazon Corporate Social Responsibility Policy
With their aim to be “the world’s most customer centric company”, there’s much riding on the Amazon corporate social responsibility policy. Amazon outlines their 4 core principles to prioritise in their mission, which are:
Customer obsession rather than competitor focus
Nurturing a passion for invention
A focus on long-term thinking
A commitment to operational excellence
Coca-Cola Corporate Social Responsibility Policy
For Coca-Cola, corporate social responsibility is inextricably linked with sustainability. Their CSR initiatives focus on 4 key areas: World Without Waste, Sustainable Packaging, Water Stewardship, and Women's Empowerment.
Some of their key goals within their CSR policy include:
Accelerating progress on World Without Waste goals
Developing circular economy solutions for packaging
Enhancing water conservation and stewardship efforts
Empowering women through economic opportunities and leadership development
Integrating sustainability into business operations and partnerships
CSR Reporting and Measurement
CSR reporting takes many shapes, and you need the right tools to make sure you’re doing your CSR efforts justice. Your CSR audit should examine what you’ve done well and what you can improve on. After all, no CSR program is perfect from the get-go.
Your CSR report should first outline your goals and who you are – much like your initial CSR policy. You should then return to your initial statements and provide hard evidence to report on these.
Here are some ways you can provide evidence within a CSR report:
Conduct case studies
Collate opinions through surveys
Examine profit and loss
Report on employee retention, productivity, and wellbeing
Collate other finances
It’s worth taking a look at the Global Reporting Initiative, one of the most prominent CSR reporting frameworks out there.
Conclusion: Best Practices for CSR Policy Success
Due to the variable nature of CSR, issues can often arise in the process of creating your CSR policy. However, using reporting tools, encouraging feedback, and ensuring that you have frequent check-ins on your CSR actions is the best course of action.
As for your next steps?
Gather a dedicated team to overlook your CSR actions
Outline your CSR statement
Figure out how to report on your CSR actions
Implement your CSR policy
Regroup and report on your findings
Make changes based on the results
Keep at it!
Remember, having a solid CSR policy has a huge impact on your bottom line, attracting and retaining talent, and brand reputation.
Think volunteering could be a core part of your CSR policy? Speak to OnHand today.
