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A new tool for CSR governance
By Sylvia Kinnicutt, Research Associate, Boston College Center
Our friends to the north, Canadian Business for Social Responsibility, in partnership with Strandberg Consulting, have recently released a very practical set of guidelines for corporate social responsibility governance. Recognizing the important role that boards of directors play in institutionalizing CSR in a company, CBSR worked with local board members to create the CSR Governance Guidelines. It includes a checklist assessment tool based on current best practice in CSR governance.
Corporate citizenship practitioners and board members can use these resources to assess their current board practices, and follow a step-by-step action plan for enhancing board engagement. In many ways, the assessment tool resembles the Boston College Center’s own Corporate Citizenship Management Framework, although it goes far deeper into the role and activities of the governing board specifically.
In the guidelines you will find suggested actions for corporate boards to improve CSR governance such as:
- Confirming the desired CSR approach and integrating into the company’s mission and values
- Mandating a board committee with CSR responsibility
- Educating the board on CSR risks and opportunities
- Incorporating CSR factors into director and CEO recruitment
- Rewarding executives for CSR performance
If your company is considering creating a CSR committee at the board level, you will also find useful the terms of reference included in the guide. According to CBSR, board CSR committees should be engaged in reviewing and recommending CSR policies and strategies, monitoring trends and emerging issues that may affect the company, overseeing CSR risk and opportunity management plans, providing input on the CSR report, and making recommendations on CSR impacts of major business decisions.
For additional guidance, the report also contains suggested questions that directors can ask senior management to understand the degree to which CSR is being integrated into the firm’s management, operations and decisions. Examples of best practice, such as the innovative governance practices of Canadian firms Cameco Corporation, Gildan, Loblaw and Potash Corporation, provide evidence that these practices are taking hold and worth following.
This is just one more valuable tool to help corporate citizenship leaders work within the business to move the needle on CSR adoption and performance. To learn more about corporate citizenship governance, see the Center’s Corporate Citizenship Brief on Leadership and Governance of Corporate Citizenship.
July 8th, 2010 at 3:40 PM
We thought this was a great tool, also, thanks. How do you think CSR governance should be concerned with, if at all, the recent efforts by states to create “benefit corporations?” Maryland and Vermont have passed such statutes and now NY is trying to do so also, http://org2.democracyinaction.org/o/6269/p/dia/action/public/?action_KEY=3371 . . .
July 9th, 2010 at 5:22 AM
CSR is such a useful incentive to help business grow and also for help staff perform better in the workplace. A great CSR program can has also been shown to increase profits and create happier workers. It’s great to see so many businesses now days adopt CSR programmes and to actually be reaping the benefit from them as opposed to just using them as a PR stunt.
You should read this article http://www.leapcr.com/blog/200-3-phases-to-more-profit-through-employee-volunteering on how employee volunteering can help businesses grow.
Gemma.
July 9th, 2010 at 8:35 AM
Thanks for your comment Perry. The new statutes passed in MD and VT are a great step forward. However companies can and should address CSR issues through thier governance structures whether or not their state has passed such a statute. I think the corporate boards that have taken this on would tell you that it is just good business!