The study consisted of content research and it was therefore necessary to operationalize the various criteria and develop a method of scoring. Details of this can be found in Appendix 11.1.
From the total number of CSR standardization initiatives (Appendix 11.2) ten were selected for detailed study. The main criteria for selection were their explicit reference as a CSR standard and its assumed familiarity in the busi- ness world. Both known ones and less familiar ones were chosen.
Appendix 11.3 provides a short description of each of these.
Table 11.1 shows the quantitative results of the analysis. These relate to the extent to which each of the CSR standardization initiatives complies with the criteria listed in the previous section 3. Ideally Table 11.1 should be read in conjunction with Appendix 11.1, which also explains the scoring. In essence a standard can be deemed good it covers all the CSR aspects pre- sented above. However, much depends on the specific purpose of using the standard so there will be variations among companies. The same goes for the way in which a standard is used to regulate the various CSR aspects.
Some companies prefer it to be strict or practical, while others prefer general guidelines with considerable room for discretion.
AccountAbility 1000:1999 Framework (AA1000:1999)
AA1000:1999 is the only initiative that meets all the criteria. Most of the standards are more than general guidelines, provide more than just a frame- work and are elaborated in terms of processes for CSR. The identification of stakeholders and the implementation of CSR require practical methods and techniques, but CSR can be adjusted to the context in question.
Table 11.1 The quantitative results of the study
AA1000: AA1000: ECS UN Global
Aspect of CSR 1999 2002 2000 ECSF GRI OECD Q-RES SA8000 SIGMA Compact
Assessment of CSR risks 4 1 1 – 3 1 3 – 4/5/6 1
Identificational of and
dialogue with stakeholders 3/4/6 1/3 1 1 3 1 3 2 4/5/6 1
Determination of (relevant)
CSR activities 3/4 – 2 2 3 – 3 – 4/5/6 –
Establishment of support
for and awareness for CSR 2 – 3 1 – 1 3 3 4/5/6 1
Implementation of CSR 4/6 – 5 6 6 3 4 5/7 4/5/6 –
Accountability mechanisms 3/4 3 1/3 1/6 5 1/3 3/4 2/3 4/5/6 1
External comparison/
benchmarking of CSR
performance 3/4 1 – – 1 – – – – –
Continuous improvement
of CSR performance 3/4 – 2 – 1 2 3 2 4/5/6 –
Information on the
meaning of CSR 2 2 – 3 3 1 3 2 3 3
Context-specificity 3 2 2 1 2 1 2 2 3 1
Notes: The scores in table refer to the following:
1: the CSR aspect is mentioned but a standard is not prescribed.
2: the CSR aspect is mentioned and a limited standard is prescribed in (descriptive or explanatory).
3: guidelines with room for discretion are provided for the CSR aspect.
4. guidelines/requirements are provided for CSR processes.
5: guidelines/requirements are provided for a management system for the CSR aspect.
6: practical tools and techniques are provided for the CSR aspect.
7: prescriptive requirements are set for the CSR aspect.
8: performance requirements are set for the CSR aspect.
AccountAbility 1000:2002 Assurance Standard (AA1000:2002)
AA1000:2002 is the successor to AA1000:1999 but it meets fewer criteria and cannot be viewed as an improvement. No attention is paid to the processes of establishing and implementing a CSR strategy. The standards take the form of general guidelines and for some of the criteria these lack detail: assessment of CSR risks, is identification of stakeholders and (external) comparison of CSR performance. Moreover, it pays limited attention to context-specificity.
Ethics Compliance Standard 2000 (ECS2000)
ECS2000 covers most of the CRS aspects and the implementation of CSR is covered in detail. The identification of stakeholders is not mentioned but dialogue with stakeholders is. This is odd as the latter implies the former.
One of the objectives of ECS2000 is continuous improvement, but this is not covered in detail. The same applies to context-specificity.
European Corporate Sustainability Framework (ECSF)
Three of the CRS aspects are not mentioned in the ECSF of those which are, not all are covered in detail. A positive point is the ECSF’s attention to the identification of CSR activities and their implementation. The measurement and monitoring of CSR performance (accountability mechanism) also receive a lot of attention. However, stakeholder engagement and reporting, are almost ignored and there is only slight attention to organizations being of different size or from different sectors.
Global Reporting Initiative (GRI)
The name Global Reporting Initiative implies that only reporting and accounting are covered, but many other aspects are included, such as the design and implementation of CSR. It provides a general outline of CSR and its underlying trends and drivers, although attention is paid to continuous improvement by only mentioning the term and to the creation of awareness of CSR. Most of the CRS aspects are covered in detail. Interesting by GRI explicitly refers to the following:
The guidelines do not:
● provide instructions for designing an organisation’s internal data management and reporting systems; or
● offer instruction on methodologies for preparing reports, or on perfor- mance monitoring and verification practices.
Therefore the GRI, does not give instructions for the monitoring and veri- fication of reporting applications but instead concentrates on concrete reporting systems.
OECD Guidelines
At first glance the OECD Guidelines look good, but closer examination shows that most of the CRS aspects are sparsely covered. Exceptions are the implementation and reporting of CSR, but even these are not subject to strict standards. There is no elaboration of aspects such as stakeholder involvement, CSR risks and awareness of CSR. Because there are no explicit guidelines for organizing and implementing CSR, the OECD Guidelines can best be used to evaluate the importance given to CSR key organizations.
Quality of the Social and Ethical Responsibility of Corporations (Q-RES)
Q-RES is one of the most comprehensive initiatives. Eight of the CRS aspects are covered by requirements or guidelines in respect of CSR processes and sys- tems, as well as related tools and techniques Most of the aspects are distinctly defined and there are standards for function, content, development method- ology, auditing evidence and excellence criteria. The external benchmarking of CSR performance, however, receives no attention. Central to Q-RES is continuous improvement, for which general guidelines are provided but no practical tools or techniques.
Social Accountability 8000 (SA8000)
SA8000 is a limited initiative in terms of size and content. Many of the CRS aspects are mentioned but only briefly discussed. The only aspect that is covered in detail is the implementation of CSR, for which requirements and guidelines for a management system are provided.
Sustainability Integrated Guidelines for Management (SIGMA)
SIGMA seems to be top of the bill, although two of the CRS aspects are not addressed: external benchmarking of CSR performance and accountability mechanisms. All the other aspects are covered in detail. The instruments pro- vided with sigma the so-called ‘SIGMA toolkit’, add value to the guidelines and requirements by and offering practical tools and techniques.
UN Global Compact
It is difficult to assess the objective of the UN Global Compact. It is really only useful to those who wish to gain an insight into the nature of CSR because detailed information is provided on the meaning of CSR. The other aspects are barely mentioned. Various sector-specific documents with spe- cific guidance on CSR implementation have been added to the Global Compact, but these were not available at the time of this assessment.
Conclusions
CSR initiatives come in many shapes and sizes and vary in purpose, target groups and issues. Most of the documents that are referred to as CSR standards,
such as the Global Sullivan Principles and the Caux Round Table Principles, cannot be regarded as offering regulatory frameworks as they merely tell organizations that it is important to deal with CSR or aspects of it.
Of the CSR standardization initiatives that were researched for this chapter only four meet the criteria for CSR standards: AA1000:1999, ECS2000, Q-RES and SIGMA. These can be called true CSR standards as they contain clear methodological principles and subsequent translation of these principles into practical elements. They also pay attention to the design and organization of CSR and the need for interaction with stakeholders, both of which are important elements of today’s conception of CSR. There are differences between the initiatives however. For example, AA1000 mainly focuses on processes that are important when organizing and implementing CSR, while SIGMA provides practical tools and techniques for CSR.
Overall, it can be concluded that the familiar names in the world of CSR stan- dards are failing to meet the requirements and expectation of organizations.
Appendix 11.1 Operationalization of criteria for CSR standards Criteria for CSR standardization Operationalization on the basis of
initiatives synonyms/search terms
Assessment of CSR risks Risk assessment Risk analysis Risk management Identification of and dialogue with Recognize
stakeholders Track
Identify Understand
Inclusivity, inclusiveness
Stakeholder(s), interested party(ies) Respond to the aspirations and needs of
stakeholders
Respond to stakeholder concerns Stakeholder engagement Stakeholder commitment Stakeholder involvement Stakeholder consultation Dialogue
Communication Participation Inform Respond to
Stakeholder dialogue Views of stakeholders Determination of (relevant) CSR targets
CSR activities CSR strategy
CSR vision CSR process CSR approach
Continued
Establishment of support for Creating trust
and awareness of CSR Creating understanding Awareness
Training
Implementation of CSR Use
Apply Implement Activities Enforce Accountability mechanisms Evaluation
Auditing Monitoring Indicators Parameters Criteria Parameters Targets Indicators
Conformity assessment CSR performance Reporting Inform
External communication Records
External reporting To account for Accountability Demonstrate Evidence
External verification External comparison/benchmarking Quantification
of CSR performance Benchmarking
Comparability (against)
Comparability (over time/against) Continuous improvement of Continuous improvement
CSR performance performance Internal auditing Evaluation Monitoring Information on the meaning of CSR Definition of CSR
Scope of the standard
Background and origins of CSR
The ‘business case’ behind CSR (motives and drivers, both positive and negative) Context-specificity Context-specific (country, social
background, geography, culture, issue etc.) Appendix 11.1 Continued
Criteria for CSR standardization Operationalization on the basis of
initiatives synonyms/search terms
Continued
Sector-specific (chemical, toys, clothing etc.) Organization-specific
Organization size Organizational life cycle Depending on: level of,
if relevant, if any Notes: The scores awarded for the first nine criteria are as follows:
1: the CSR aspect is mentioned but a standard is not prescribed.
2: the CSR aspect is mentioned and a limited standard prescribed (by definition, description or explanation).
3: general guidelines with room for discretion are provided for the CSR aspect.
4: guidelines/requirements are provided for CSR processes.
5: guidelines/requirements are provided for a CSR management system (PDCA cycle).
6: practical tools and techniques (or references to these) are provided for the CSR aspect.
7: prescriptive requirements are set for the CSR aspect.
8: performance requirements (output requirements in general or output requirements with a minimum level) are set for the CSR aspect.
The scores of the final criterion are as follows:
1: the CSR aspect is implicitly dealt with.
2: the CSR aspect is dealt with but only a limited standard is prescribed.
3: the CSR aspect is dealt with and a clear standard is prescribed.
Appendix 11.1 Continued
Criteria for CSR standardization Operationalization on the basis of
initiatives synonyms/search terms
Continued Appendix 11.2 CSR standardization initiatives
AA1000 EFQM Model
AENOR, Draft Standards, EOA ISO Business Conduct
Management System Management Systems
BNQ’s CSR-Human Resources, FTSE4, Good UK Corporate Donations, Sponsorship- Responsibility Investment
Certification Protocol Index Series
BR, Table Principles of Global Reporting Initiative (GRI)
Corporate Governance Global Sullivan Principles
Caux Principles Greenhouse Gas Protocol
CERES Principles Guidelines for Environmental
Corporate Environmental Reporting Records Management CSR Europe, Communicating CSR ICC, Business Charter for Draft Australian Standard 03025 Sustainable Development Draft Australian Standard 03026 ICC, Rules of Conduct to Draft Australian Standard 03027 Combat Extortion and Bribery Draft Australian Standard 03028 ICCR, Principles for Global Draft Australian Standard 03029 Corporate Responsibility Dutch Quality Award Model ICCR, Global Codes of Conduct ECS 2000, Ethical Compliance Management ICFTU, Basic Code of Labour Ecumenical Council, Standard for Practice
Corporate Responsibility IFPMM, Ethical Code
Appendix 11.3 Description of selected CSR standardization initiatives
AccountAbility1000:1999 and AccountAbility1000:2002 (AA1000)
The London-based Institute of Social and Ethical Accountability (Account- Ability) developed AA1000, a set of principles for processing social and ethical accountability. It also provides guidelines for accountability processes such as planning, stakeholder engagement, auditing and report- ing, and a guide to performing an audit on the use of child labour, corruption, charity and the testing of new products.
Ethics Compliance Standard 2000 (ECS2000)
The objective of ECS2000 is to enable organizations to identify illegal and unfair practices in their operations without the help of external systems or third parties. The ECS2000 is aimed at the establishing and documenting a system for legal compliance (also referred to as mechanisms of compli- ance). This system is used to identify and evaluate the legal requirements to which an organization must comply, and to establish an internal system for gathering the opinions and ideas of stakeholders in order to formulate internal norms and values and facilitate continuous improvement (also referred to as the mechanisms of enhancement).
ILO, Conventions on Principles for Global
Core Labour Standards Corporate Responsibility
INEM, Sustainability Q-Res Codes of Ethics
Reporting Guidelines Responsible Business Initiative
Investors in People SA8000
ISO 9001:2000 SI 10000
ISO 9004:2000 SIGMA Project –
ISO 14001 Social Venture Network
ISO 14063 Standards on CSR
ISO 19011 – Guidelines Stakeholder Alliance
OECD, Principles for Sunshine Standards
Corporate Governance Sustainable Development
OHSAS 18001:1999 – Reporting, (New Zealand)
Occupational Health TR Q0005
and Safety UNCTAD Principles for the
OHSAS 18001 Control of Business Practices
Principles for Global UN Global Compact
Corporate World Bank, Group Corporate
Responsibility, Benchmarks Governance Principles Appendix 11.2 Continued