Improving corporate values with CSR as risk management

Today's topic would be:

Improving Corporate Values with accountable CSR Program

It start with how? How do we as corporate increase our corporate values in public with CSR?
then one of the answer could be.. "an accountable CSR program"..

continue with why, "why do we as corporate need one?"
There are many answer but one of them are, as risk management. A working paper wrote by Beth Kytle and John Gerard Ruggie on March 2005 called "Corporate Social Responsibility as Risk Management", introduction page, paragraf 5 (I think):
from a company prespective, social risk, like any other risk, arises when its own behaviour or the action of others in its operating environment creates vulberabilities. In the case of social risk, stakeholder may identify those vulnerability and apply pressure on social issues becomes a competitive necessity, managing social risk will need to become more fully embedded in corporate strategy.

last paragraf:
CSR program are a necessary element of risk management for global companies because they provide the framework and principles for stakeholder engagement, can supply a wealth of intelligence on emerging and current social issues/groups to support the corporate risk agenda, and ultimately serve as a countermeasure for social risk.

As my bos use to said almost at all meeting with other department in our company, CSR is a tool for company to earn social license to operate, which in case of plantation, mining and oil-gas business are ought to have, particularly from local community in your first (direct) ring stakeholder.

If the management and the corporate thinks that CSR as a risk management tool, then budget will be consider as social investment and not expenses which will surely create a big different in how to manage it.

If management consider CSR budget as expenses, then they would not sincerely committed to empower and engage with stakeholder especially local community, nor empowering them to be self-reliant. Why, because all cost born from each of empowerment project will be consider as burden to company, as a waste of money spend just to get nothing in return.

Although many of managers and senior management are now realize the benefit of CSR and accepted the concept of sustainability and even consider CSR as risk management, they sometime confuse on capitalizing the benefit of their CSR programs achievement.

If we measure base on community or stakeholder satisfaction that although it would be ideal, but it would be very hard because limit of satisfaction of each people and each community are very different. But yes it still can be standardize.

So how to measure it?

again my bos said, no news is good news, which means no grievances coming to your door requesting your attention to solve it in very limited time (sometime) with chance to create negative impact that sometime could cost your operation to be shut down.

The GRI only provide a guidelines on how we do it, similar like ISO and other, but how measure it, it all depend on how your company want and what indicator you set for your own project.

Sustainability Report under GRI and ISO 26000 standards

Today's topic would be:

Sustainability Report under GRI and ISO 26000 standards

What is GRI?

Global Reporting Initiative (GRI) is a network-based organization that has pioneered the development of the world’s most widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide.

In order to ensure the highest degree of technical quality, credibility, and relevance, the reporting framework is developed through a consensus-seeking process with participants drawn globally from business, civil society, labor, and professional institutions.

Reporting Framework

This framework sets out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance.

The cornerstone of the framework is the Sustainability Reporting Guidelines. The third version of the Guidelines – known as the G3 Guidelines - was published in 2006, and is a free public good.

Other components of the framework include Sector Supplements (unique indicators for industry sectors) and National Annexes (unique country-level information). Click here for an overview of the Reporting Framework.

http://www.globalreporting.org/ReportingFramework/

Report Benefit
Sustainability reports based on the GRI framework can be used to benchmark organizational performance with respect to laws, norms, codes, performance standards and voluntary initiatives; demonstrate organizational commitment to sustainable development; and compare organizational performance over time.

GRI promotes and develops this standardized approach to reporting to stimulate demand for sustainability information – which will benefit reporting organizations and those who use report information alike.

ISO 26000 – Guidance on Social Responsibility
ISO 26000 provides recommendations on Social Responsibility. The standard provides organizations with best practices and helps them adapt the guidelines in their operations and across their supplier network. All types of organizations can apply ISO 26000.

According to the principles of Social Responsibility, as defined by the ISO 26000 standard, organization is responsible for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that:

• Contributes to sustainable development, including health and the welfare of society
• Takes into account the needs and expectations of stakeholders
• Is compliant with applicable laws and consistent with international norms
• Is integrated and implemented throughout the organization

What does ISO 26000 cover?

The ISO 26000 guidance standard consists of seven clauses:

1. Scope
2. Terms, definitions and abbreviated terms
3. Understanding social responsibility
4. Principles of social responsibility
5. Recognizing social responsibility and engaging with stakeholders
6. Guidance on social responsibility core subjects
7. Guidance on integrating social responsibility throughout an organization

Annex on voluntary initiatives and tools related to social responsibility

The ISO 26000 standard is currently a Final Draft International Standard (FDIS) and will likely be launched as the final version during the fall of 2010.

anyone interested with the draft could contact me via email.

Benefits of implementing ISO 26000

Optimize your processes and align them with your management systems and your activities within social responsibility;

Be able to better contribute to sustainable development;
Improve your relationship with stakeholders and manage the related risks;
Increase staff morale and the ability to attract and keep qualified professionals.
Enhance the appeal of your organization in the financial community.

Stakeholder Engagement

Today's topic would be:

Stakeholder Mapping, analysis and planning

What is stakeholder? Who are they? what do we going to do with them, how do we engage them? Do we need to? why?

All these question are main question that we all asking when we need to develop strategy for our stakeholder engagement strategy which very useful tool to use as basic information developing our Sustainability strategy for let say five years ahead.. or even ten years forward.

I think, it was very smart thinking, that Indonesian Center for Sustainable Development or known as ICSD create three days training regarding an Effective Stakeholder Engagement for Sustainable Development, as tools to develop CSR strategy towards sustainable operation.

And lesson learn approach that the speaker and trainer used, provides a wide range of divers experiences from coal mining company, oil and gas company to plantation based company.

Not many company actually understand that approaches and stages.. although most big company has done it, by their consultant.. only few who hired their staff with this kind of knowledge., fortunately our company did.
Actually there are many template which could be use and easily found in google, such as below:
matrix of stakeholder identification

which then need to be analyze and map it as below;

The one thing that summarize the stages of stakeholder mapping are: Identify your SH, analyze them, plan type of approach you will use to deal with them, then Engage.. with the strategy design earlier as your mapping guide you to.

During your identification, you will also need to identify level or ring of your SH, from one who is directly affected to one who influence your operation in international level..

The more accurate and complete information you have about your SH, then more guideline you have to develop your strategy based on your SH profile.

Always maintain all your SH, don't create a room for their jealousy among them which led into discrimination accusation.

for more complete template you may find it at below link

www.stakeholdermap.com 

www.stakeholdermapping.com

Teman-teman CSR

Untuk memudahkan pekerjaan kita dalam merencanakan program dan metode pendekatan yang akan kita laksanakan untuk setiap SH kita, maka sebaiknya kita melakukan stakeholder identification terlebih dahulu, membuat pemetaannya, menganalisa hingga kemudian merencanakan apa yang akan kita lakukan.
Sementara khusus untuk SH masyarakat, kita membutuhkan baseline information yang kemudian akan kita analisa potensi dan needs nya digabungkan dengan SH mapping kita untuk menentukan prioritas SH kita.

Yang perlu kita hindari adalah memberikan sesuatu yang tidak mereka perlukan, dan hindari pemberian atau perencanaan program yang tidak memandirikan masyarakat dampingan kita. Selalu pikirkan exit plan untuk setiap bantuan kita.

Ingat apa yang dilakukan oleh setiap individu dalam sebuah organisasi akan berdampak pada organisasi tersebut dengan besaran yang mungkin tidak sama.. namun semua nya dan setiapnya berdampak..
maka analisa semua dampak tersebut untuk menghindari kemungkinan buruk dikemudian hari.

sebuah contoh kurangnya analisa dampak adalah kasus kecelakaan kereta api beberapa waktu lalu, saat kereta Agro menabrak kereta ekonomi senja utama.. PT KAI selaku induk perusahaan kedua kereta tersebut seharusnya melakukan analisa menyeluruh sebelum memberikan pernyataan pada media.
Kenyataan bahwa masinis kereta mengantuk perlu ditelusuri guna mencegah secara permanen kelalaian seperti ini terjadi dimasa datang. Mengapa masinis sampai mengantuk? Apa karena terlalu banyak lembur? apa dia kurang cukup istirahat, jika ya .. mengapa? apakah cuti masinis ini tidak cukup, atau tidak ada cuti, atau apa? mana saja yang menjadi pemicu kesalahan individu dan mana yang dipicu oleh kebijakan perusahaan?.. apakah ada tindakan perusahaan dalam mencegah kejadian ini terjadi, adakah semacam screening prosedur untuk menghindari masinis yang mengantuk beroperasi? Di Indonesia, rasanya sangat lebih mudah untuk melimpahkan kesalahan pada human error, tapi reason atau pemicu dari error itu tidak pernah dicari atau dicari tapi tidak diakui bahwa ternyata ke-error-an yang terjadi dipicu dan dimulai oleh kebijakan perusahaan atau institusi lainnya yang kurang bijak.. jadi grass root problem nya tidak selesai.. sehingga tinggal menunggu rumput liar lain yang tumbuh menjadi terlalu liar hingga akhirnya merusak tatanan taman yang indah..

personal opinion, October 2010