How to Prove CSR Legitimacy
The scene is set... Consumers and investors are demanding your business serves a social purpose. In response, you declare a Corporate Social Responsibility (CSR) initiative and implement the program company-wide. You decide to use cause marketing campaigns to promote your company's newly defined social purpose and commitment to change. Consumers and investors acknowledge your intentions, but fear you're all talk. The public wants to know there is substance and action behind your CSR efforts.
Now you're left asking, "How do I prove my CSR is the real deal?"
Despite the recent spike in popularity, profiting with a purpose is not a new concept. Luckily, the many years of CSR's quiet development now stands to benefit those arriving late to the party. Today, businesses and investors have access to a variety of tools specifically designed to assess the social performance of a company. Better yet, many of these tools can help businesses align their CSR efforts with targeted financial goals in mind.
Here are three examples of social assessment tools helpful in disclosing CSR efforts:
- Global Reporting Initiative (GRI): An independent international organization that helps businesses and governments understand and communicate their sustainability efforts. Founded in 1997, GRI is a longstanding resource for sustainability reporting. GRI states, "The practice of disclosing sustainability information inspires accountability, helps identify and manage risks, and enables organizations to seize new opportunities. Reporting with the GRI Standards supports companies, public and private, large and small, protect the environment and improve society, while at the same time thriving economically by improving governance and stakeholder relations, enhancing reputations and building trust."
- Sustainability Accounting Standards Board (SASB): This organization develops and maintains sustainability accounting standards for independent, private-sectors. As described on their site, "[SASB] helps public corporations disclose financially material [sustainability] information to investors in a cost-effective and decision-useful format. The SASB’s transparent, inclusive, and rigorous standards-setting process is materiality focused, evidence-based and market informed.
- B Lab: A nonprofit organization that grants "B Corp" certifications to businesses meeting strict CSR standards. B Lab verifies a company's social and environmental performance, public transparency, and legal accountability. B Corps aspire to use the power of markets to solve social and environmental problems. B Lab is working to build a global community of Certified B Corporations(TM). The organization also promotes mission alignment to help high-impact businesses prosper and measure what matters with impact assessment and analytics.
It is likely the resources to track, measure and report social responsibility will continue to grow with the advancement of technology. However, there is no need to wait for those platforms to develop. Use readily available resources like GRI, SASB and B Lab to prove your CSR efforts are more than just words!
Article Published: February 27, 2018