The Convergence of Corporate Social Responsibility and Information Technology

The Convergence of Corporate Social Responsibility and Information Technology By Jeff Frank, Vice President, Lawson The Convergence of Corporate Social Responsibility and Information Technology Table of Contents Introduction......................................................................................................................................... 3 CSR.Overview.................................................................................................................................. 3 . Economic.......................................................................................................................................................4 . Environmental.............................................................................................................................................4 Social................................................................................................................................................................4 . Key.Trends.—.How.Organizations.are.Approaching.CSR...................................... 4 Businesses.are.increasingly.formalizing.and.expanding.their.CSR.programs.........4 . Compliance.is.the.top.driver.of.environmental.CSR.programs...................................5 . Organizations.are.looking.to.IT.to.help.manage.their.CSR.programs.....................7 Establishing.CSR.Programs.—.Where.Should.You.Start?............................................ 8 Leveraging.IT.to.Manage.CSR.Programs.—.The.Lawson.Approach..................... 9 ERP.Applications........................................................................................................................................9 Internal.Control.System.....................................................................................................................10 Enterprise.Performance.Management.......................................................................................10 . The.Lawson.Approach.in.Action.—.Workforce.Diversity............................................10 The.Lawson.Approach.in.Action.—.Food.Safety..............................................................11 . Conclusion..........................................................................................................................................11 About.the.Author.........................................................................................................................12 .  The Convergence of Corporate Social Responsibility and Information Technology Introduction Corporate.social.responsibility.(CSR).is.a.concept.that.has.been.around.for.decades;. however,. a. heightened. interest. in. the. role. of. business. in. society. has. resulted. in. organizations.in.all.industries.and.regions.of.the.world.re-evaluating.how.they.impact. their.stakeholders.. This.white.paper.will.provide.an.overview.of.CSR,. explore.what.organizations.are. doing.in.this.area,.and.outline.a.process.for.you.to.establish.your.own.CSR.programs.. It.will.also.provide.an.overview.of.the.Lawson.approach.to.leveraging.information. technology.(IT).to.help.organizations.manage.their.CSR.programs. CSR Overview CSR,. also. known. as. sustainable. development. or. corporate. citizenship,. has. many. definitions.. For. the. purposes. of. this. white. paper. we’ll. highlight. two. of. the. more. recognized.and.accepted.definitions. The. World. Business. Council. for. Sustainable. Development,. a. CEO-led. global. association.of.some.200.companies.dealing.exclusively.with.business.and.sustainable. development,.defines.CSR.as.follows1:. Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. This.approach.creates.a.mandate.for.corporations.to.act.as.“good.citizens.of.the. world”.and.not.only.maintain,.but.improve.the.quality.of.life.of.their.stakeholders.—. investors,.customers,.employees,.business.partners,.local.and.broader.communities. A.much.simpler.definition.is.the.commonly.used.slogan.“Doing.well.by.doing.good.”. While. very. informal,. it. does. capture. the. essential. link. between. profitability. and. operating.in.a.responsible.manner. CSR.is.a.broad.concept.that.encompasses.myriad.issues.and.activities..The.Global. Reporting.Initiative,.a.global,.multi-stakeholder.network.of.thousands.of.experts. promoting.transparency,.accountability.and.reporting.in.the.area.of.sustainable. development,.has.condensed.these.issues.and.activities.into.three.dimensions2. (See.Figure.1).. Figure 1. Dimensions of CSR Economic Responsibility Social Environmental Responsibility Responsibility 1.Corporate.Social.Responsibility:. Meeting.Changing.Expectations,. 1999. 2.Global.Reporting.Initiative,. Sustainability.Reporting.Guidelines,.Version.3.0  The Convergence of Corporate Social Responsibility and Information Technology Economic The. economic. dimension. concerns. an. organization’s. impact. on. the. economic. conditions.of.its.stakeholders..Some.specific.examples.include: •. Economic.performance:.Direct.value.generated.and.distributed,.including.revenues,. employee.compensation,.donation.or.other.community.investment.and.significant. financial.assistance.received.from.government. •. Market. presence:.Wages. paid. compared. to. local. minimum. wages,. use. of. locally-based.suppliers.and.procedures.for.hiring.locally. Environmental The.environmental.dimension.concerns.an.organization’s.impact.on.natural.systems. and. falls. under. the. popular. heading. of.“green.”.This. dimension. includes. materials,. energy,.water,.emissions,.effluents,.waste.and.biodiversity. Social The.social.dimension.is.the.broadest.of.the.three.areas.and.concerns.an.organization’s. impact.on.social.systems..Some.specific.examples.include: •. Labor.practices:.Hiring.practices,.diversity,.wages,.rates.of.injury,.training.and. labor.relations. •. Human.rights:. Discrimination,. child.labor,. forced.or.compulsory.labor,. indigenous. rights.and.security.practices. •. Society:. Community. programs,. corruption,. public. policy. involvement,. anti-competitive.behavior.and.compliance. •. Product. responsibility:. Customer. health. and. safety,. labeling,. marketing. communications,.customer.privacy.and.compliance.