15 April 2008
Get up to speed with CSR reporting developments
Chinese guidelines and Timberland’s stakeholder engagement.
Corporate social responsibility (CSR) guidelines were released in China earlier this month by 11 national industrial federations and associations, including steel, oil, chemicals, textiles, building materials, electric power and mining.
The guidelines urge Chinese organizations to accept social responsibility for creating sustainable development and to release CSR reports regularly.
Establish executive bodies to promote, coordinate and supervise companies in fulfilling social responsibilities.
They also advise federations and associations to establish executive bodies to promote, coordinate and supervise companies in fulfilling their social responsibilities.
China’s development
Xu Kuangdi, chairman, China Federation of Industrial Economics, says many companies have already made a contribution to China's economic and social development – but accepts that “the industrial sector is a key consumer of natural resources and greatly influences the environmental balance."
Xu believes integrating CSR with business strategy and corporate culture benefits the company in terms of innovation, management systems and creating a positive public image.
"It will also pave the way for Chinese industrial enterprises to build their brands in the international market and go abroad for further expansion," he says.
Basic CSR requirements
Chinese industrial companies have 3 basic requirements for CSR implementation:
Timberland has asked stakeholder groups for feedback in several areas to improve the company’s CSR documents.
- Strictly abide by laws and social ethics.
- Design CSR strategies in accordance with Chinese conditions and their own business characteristics while being mindful that China is still a developing nation.
- Insist on principles of reliability and openness in CSR operations.
The guidelines suggest CSR reports should cover the following aspects of business performance:
- development model;
- environmental protection;
- energy savings;
- production safety;
- care of employees;
- stakeholders' interest; and
- social community involvement.
Timberland engages stakeholders in CSR
In the US, Alex Hausman, CSR reporting manager, The Timberland Company, describes the company’s early experiences of CSR reporting. He says some data suggested good progress on social and environmental fronts, but other areas indicated improvement was needed.
“What if the stakeholders were overly critical of our work? Would I destroy the brand’s good name in the spirit of transparency? What if I couldn’t answer their questions?” Hausman asks.
He says shareholders asked tough questions, but also made positive comments about progress. On reflection he says, “I learned that I didn’t have to have all the answers. We were getting invaluable feedback about our progress as a socially responsible company.”
The industrial sector is a key consumer of natural resources and greatly influences the environmental balance.
Feedback for CSR improvements
Hausman says critiques may be difficult to hear, but are the most valuable things to come from these meetings. Although every company wants to be congratulated, “it would fail to provide us with the needed guidance on difficult issues like global human rights in the supply chain, environmental product development, climate change and community engagement.”
Timberland has asked stakeholder groups for feedback in several areas to improve the company’s CSR documents:
- product-related label, the Green Index
- Timberland’s 4 CSR agenda “pillars” and long-term strategy
- quarterly CSR stakeholder conference calls to discuss the industry’s social and environmental issues.
Using direct stakeholder communication
Hausman says, “I can't imagine working in a CSR capacity without having a direct channel of communication with our stakeholder community.
“Stakeholder engagement provides a necessary communication channel that allows us to tackle tough issues in a more efficient manner. The flow of information profoundly impacts the way we do business.”
Have your say
How does your organization report on CSR – and are stakeholders actively engaged in this process? Does internal communication play a role in engaging the internal stakeholders in CSR in your organization?
How well does internal communication link with those producing CSR reports – and are you able to have an input from the employee perspective?
Discuss these issues with other comms practitioners by joining the Internal Comms Hub members' group on the Communicators' Network.
Other recommendations:
What communicators can do to create a CSR buzz
How Rio Tinto communicates CSR messages to 36,000 employees worldwide
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