- Establish a stable management and Board.
The Board shall define, oversee, and review the CSR/CG system of the company. The Board also has the responsibility to communicate with the stakeholders and present them the company’s CSR report.
- Identify the concerns of stakeholders.
The management must develop means to communicate with the stakeholders in order to identify the pressing issues that the companies must address. Then the management shall evaluate the company’s environmental, social, and economic impacts and match it with the stakeholders’ concerns.
It is important to know who your company’s stakeholders are. It is not enough to ensure maximum profit alone. The company must also take into consideration the people and areas that their operations affect. They can classify the stakeholders into primary and secondary. Primary stakeholders are those who are directly engaged in the business operations and policies. These are the shareholders, investors, employees, customers, and suppliers. The secondary stakeholders, on the other hand, are those who are indirectly affected by the company operations and policies. These are the general public, local communities, national and local government, and the media.
Once the managers have secured a stable and constant engagement with the stakeholders, they can now proceed to the following steps.
- Formulate objectives and targets.
After evaluating the issues raised by the stakeholders, the management must develop objectives and targets that the company operations must adhere to in order to promote environmental sustainability. These objectives and targets must also address the reasonable concerns raised by the stakeholders.
- Translate the objectives into concrete processes and systems.
The management must develop operational systems and processes that will carry out their objectives and targets. Included in this stage are the distribution of resources, management of systems, and setting up of needed infrastructure and equipment.
- Monitor and analyze the CSR system.
Monitor the effectiveness of the system and measure the progress of company’s CSR programs in terms of:
- stakeholder satisfaction and development;
- financial health;
- access to capital;
- operational efficiency;
- environmental performance;
- intellectual capital;
- brand value and reputation;
- potential for innovation;
- risk profile;
- performance of the Board;
- improvement of organizational systems;
- compliance with legal and regulatory requirements of the organization.
- Modify your CSR system for further improvement.
To achieve optimal results, redefine your CSR system/programs based on the results you gathered from the monitoring and evaluation stage. Modify policies, systems, and processes that need improvement. Alongside this is the publication of reports that the general public can access in order for them to monitor the progress of the CSR projects of the company.[this article is inspired by a blog on internet]