Corporate Social Responsibility Management System: Framework - Arpel

Corporate Social Responsibility Management System: Frameworkbeen identified as reflecting the evolution of this corporate culture and philosophy. At any giventime, a company may be operating at several different stages along the spectrum, depending onwhether it is being analyzed according to a particular CSR topic (i.e. human rights, stakeholderengagement, environmental impact, or other), in a particular group (corporate or business unit), or aparticular initiative relative to its policy, practice and cultural evolution. The process is not alwayslinear, and a company may choose to advance to a specified point along the 5 stages. The CSRManagement System and supporting documents provide both conceptual and practical guidance.Manuals in CSR topics are structured according to three components: policy, practice and culture.These allow a company to bring alignment, integration and coherence to its internal and externaloperations.1.1.2System Supporting DocumentsThe ARPEL CSR Management System is supported by a family of interrelated documents –framework, manuals and toolkits– that facilitate the introduction, application and trainingrequirements for the management system. The word “family” is used deliberately here, todemonstrate that the documents can be used collectively, or, that any one document, such as thisManual can be used independently to provide guidance on aspects of the system.The titles of all materials making up the CSR Management System are listed below. Each documentcarries a unique document number.Document No.Title of Document1Corporate Social Responsibility Management System Framework2Corporate Social Responsibility Policy and Commitments; Supporting Document3Evaluation Protocol: Supporting Document4Risk Assessment Tool: Supporting Document5Ethics and Corporate Values Manual: Supporting Document6Corporate Governance Manual: Supporting Document7Human Rights Manual: Supporting Document8Labour Practices Manual: Supporting Document9Stakeholder Engagement Manual: Supporting Document10Value Chain Manual: Supporting Document11Communications and Reporting Manual: Supporting Document12Volunteering Toolkit: Supporting Document13Training Toolkit: Supporting DocumentSet out below is a brief introduction to each of the documents listed above in the CSR family.1. Corporate Social Responsibility Management System: FrameworkThis Framework is the foundation document of system and companies should be constantly referringto this for guidance in advancing their CSR approach. The document consists of two main parts: Conceptual Framework: highlights relevant concepts for progressively integrating CSR intocompanies, describing the corporate aspects that will serve as a platform for implementing,1-2

Corporate Social Responsibility Management System: Frameworkmanaging and monitoring CSR results; the Framework describes how companies can advancetheir CSR implementation CSR Management System Framework: provides a guide to implement the system effectively,with specific steps that companies can follow to incorporate CSR into their operations.Implementation of the CSR Management System is structured according to the main elements ofcompanies’ operational systems and follows the Plan-Do-Check-Act (PDCA) cycle commonlyapplied for purposes of continuous improvement. The Framework is aligned with the ISOprinciples of PDCA and may be readily integrated with quality, health/safety and environmentalmanagement systems.2. Corporate Social Responsibility Policy and Commitments Supporting DocumentPolicy and Commitments provides guidance for companies to: Define or validate their CSR policy and their commitments in regard to all CSR Topics and withtheir key stakeholders, and Implement policy and commitments in each CSR Topic, considering policy, practice andculture.3. Evaluation Protocol: Supporting DocumentThe Evaluation Protocol is directed at assisting companies to identify CSR performance gaps andhighlight key matters that should be addressed in the selected CSR topics. The CSR topics andassessment criteria used for evaluation are derived from a number of internationally recognized andadopted CSR management principles, guidelines and standards (e.g. ISO 26000, EITI, GRI). Theprotocol provides a set of criteria for companies to develop a self-assessment of their CSR approach.Assessment criteria (questions) provide for evaluation of performance related to management,action, accountability and perception of CSR performance (in policy, practice and culture) for eachmatter. Based on responses to assessment criteria the company can determine its priorities in eachCSR topic.While companies may be able to identify a score that provides a broad indication of theiradvancement in each component (policy, practice and culture) in a particular CSR topic, the protocolis most important for identifying areas of attention, trends, and gaps that separate a company fromwhere it is in a topic and where it wants to be. The priorities identified serve as inputs to the riskanalysis process.4. Risk Assessment Tool; Supporting DocumentThe Risk Assessment Tool assists companies in identifying and managing their CSR risks andopportunities in main areas (the tool include a word document and an excel spreadsheet). The riskassessment methodology engages proven procedures for corporate risk assessment, which identify,assess and prioritize risks faced by companies. The process is used to effectively manage resources tominimize, monitor and control the probability and/or potential negative or positive impacts. Theobjective is that CSR and corporate processes are applied consistently to integrate effectively.1-3

Corporate Social Responsibility Management System: Framework5 through 11. The ManualsA manual is available for each of the seven selected topics determined by ARPEL to be relevant to theCSR Management System. Each manual contains guidance and real life examples to assist companiesin advancing in their CSR approach by developing effective policies and practices that become part ofthe corporate culture, achieving their objectives in Key CSR Topics. The relevant objectives for eachmanual will have been determined by each company according to their CSR Policy andCommitments, and the gaps, issues and priorities.The Manuals are structured according to key matters in the CSR Topic. Each issue consists of 3components: Policy, Practice and Culture. Each component provides specific guidance and examplesto assist companies in meeting the criteria in each component and advance their CSR approach (e.g.filling gaps, addressing issues and priorities). The 3 components are not linear in the sense that acompany does not have to complete component 1 to develop 2 or 2 to develop 3. However, whilelinear advancement is not necessary, it is often the case that companies do advance and solidify theirCSR practice by developing policies at corporate and business unit levels, then practices (includingverification methods), which then help make CSR become part of the corporate culture.The manuals enable companies to progress towards stated goals for continuous improvement and toadvance their CSR alignment, integration and coherence according to the Topic addressed in eachmanual, as follows: CSR Policy and Commitments: allows companies to define or validate their policies andcommitments according to their priorities Ethics and Corporate Values: reflect CSR Policy and Commitments in each company’s values andprinciples, code of ethics and overall policies, practices and culture Corporate Governance and Transparency: develop good governance practices and effecttransparency in all day-to-day activities Human Rights: value and respect human rights, internally and externally, ensuring appropriatebehaviours by all employees, contractors and sub-contractors Labour Practices: lead CSR by example with employees; set the bar high regarding companyrelations with employees, the manner of their employment, health and safety, and opportunitiesfor professional and personal development Stakeholder Engagement: identify and engage stakeholders early in project planning and designand likewise continue through all stages of the life cycle: inform stakeholders; listen to theirinterests, expectations and concerns; understand them, and involve them in decision making andinitiatives, as strategic allies when possible Value Chain: identify CSR in all aspects of operations, both internal and external to thecompany’s operations. Communications and Reporting: communicate effectively about CSR internally and externally,using existing and new channels to distribute information through the organization’s ownresources, those available through the value chain and in the public arena at large.12 and 13. The ToolkitsTwo toolkits provide guidance on how ways to advance CSR among company employees throughvolunteering and training.1-4

Corporate Social Responsibility Management System: Framework Volunteer Toolkit: assists in identification of programs in which employees can volunteer for withhigh impact to orient activities, efforts of employees, and companies’ contribution.Training Toolkit: assists companies in comprehending the content and use of the CSRManagement System and Supporting Documents and in training employees in its diffusionthroughout the organization.1.1.3CSR System Implementation and Continuous ImprovementFigures 1 and 2 (below) illustrate the CSR Management System and the relationship among thevarious documents and existing corporate management systems.As shown in Figure 1, documents 1 through 4 constitute the foundation of the CSR ManagementSystem. Although the order in which the Manuals (5 through 11) are used may vary depending oncompanies’ priorities, goals, and current stage in their CSR approach, the System ImplementationFramework (Section 4.4 of Document No. 1) provides overall guidance on steps that companies cantake to decide how they should use the Manuals to implement the System, and advance theintegration of CSR in companies’ activities.Figure 2, below, illustrates the relationship between the CSR system and existing corporatemanagement systems. For example, as described below, companies need to complete an internaland external baseline, a CSR Evaluation, and a CSR risk analysis. Companies will use this input todefine their CSR goals and commitments. These CSR goals and priorities will then need to beintegrated into Policy and Business Plans. Planned CSR goals should be implemented, evaluated andmonitored using the PDCA cycle, in coordination with existing corporate management systems.Based on existing corporate management systems, and in coordination with them, theImplementation Framework of the System suggests using the following steps:1. Develop Baseline:Internal:Review all corporate policies and practices to determine the current CSR approach (mission,vision, values, principles, policies, strategies, practices, initiatives, reports). Also review theorganizational structure to identify the people in charge of CSR related responsibilities,objectives, supporting processes, resources allocated, and accountability mechanisms. Thisinformation will form the basis of a CSR Platform and help determine what the current CSRpriorities are at corporate and business unit levels (review goals in strategic plans and CSRattributes or criteria in decision-making processes). For guidance see Document No.’s 1, 2, 5 and6.External:Identify regulatory frameworks, contextual conditions (historic, social, economic, environmental,and cultural) and stakeholders -their perceptions of the company, interest, expectations (i.e.,stakeholder mapping). Identify the stakeholder needs (i.e., needs assessment), their perceptions(i.e., reputational assessment) and plan the most appropriate ways of communication with each(i.e., communication and engagement plan). Document No. 9 offers guidance for companies toidentify or validate their stakeholders and the best ways to engage them.1-5

Corporate Social Responsibility Management System: Framework2. CSR Assessment:Understand the company’s definition of CSR and develop a self-assessment of current CSRperformance by topic -relative to the company’s level of accomplishment (Document No. 3 CSREvaluation Protocol). This will assist the user identifying gaps and priorities in the company’s CSRPerformance and relating them to specific sections in the CSR Manuals (CSR SupportingManuals– Documents No.’s 5 to 11).3. CSR Risk Analysis:According to priorities identified in evaluation, analyze the internal and external risks andopportunities that the company has. From the “WE” perspective, the risks posted directly orindirectly by the company’s activities are also considered risks for the company. Theopportunities include benefits to all internal and external stakeholders. This should include risksfrom the company’s operations and from its direct and indirect impacts (Document No. 4 RiskAnalysis Tool).4. Define Priorities and Goals in Key CSR Topics (planning begins):The information in the 3 steps above –internal and external baseline, CSR Assessment, and riskanalysis will assist leadership in identifying CSR priorities and goals. Based on the priorities(relevant topics/material issues), leadership defines or validates the goals, that must be alignedwith company’s policies and commitments (Document 2. CSR Policy and Commitments).The goals are then defined by Key Performance Indicators, which will become part of thecompany’s planning processes. The top CSR goals are to be included in the company’s businessplans. They are to be planned, achieved, monitored and evaluated throughout the year inpolicies, practices and in the corporate culture.5. Apply the PDCA Cycle to achieve approved CSR goals:The process to achieve the identified CSR goals applies the Plan, Do, Check, Act (PDCA) Cycle.Although the cycle suggested by the CSR Management System is yearly, starting the planningprocess of the year in the last quarter (Q 3/4) of the previous year, companies can accommodatetimes to fit with the rest of their corporate proc

To accommodate the CSR process, ARPEL's CSR Management System supports corporate CSR evolution according to a multi-stage process. In all, five stages of progression are laid out: (1) . 2 Corporate Social Responsibility Policy and Commitments; Supporting Document 3 Evaluation Protocol: Supporting Document 4 Risk Assessment Tool: Supporting .