csr framework_albania_final
TRANSCRIPT
CSR Action Plan CSR Framework for SMEs in Albania
Developed by Arindam Basu
(www.g-h.dk)
Summary: Customers increasingly want to deal with socially and environmentally
conscious businesses. This presents opportunities for small and medium sized enterprise
(SME) owners to develop new areas of competitive advantage. Capitalizing on CSR
opportunities can lead to long term business value, but requires managers to integrate
a CSR Strategy with the business strategy.
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CSR Action Plan CSR Framework for SMEs in Albania
1. What is CSR?
Corporate Social Responsibility (CSR) means that companies integrate social and
environmental concerns in their business operations and in their interaction with business
relevant groups on a voluntary basis. In Europe a variety of other related terms (e.g.
Corporate Responsibility, Corporate Sustainability, Corporate Governance, and Corporate
Citizenship) exist, and often they are equated to CSR.
In general, CSR is characterized by the following aspects:
• Responsible entrepreneurship
• Voluntary initiatives going beyond legislative requirements and contractual
obligations
• Activities to benefit the employees, business relevant groups (including the society
as such) or the environment
• With a positive contribution to the individual target group while minimizing
negative effects on other (incl. environment)
• Regular activities rather than one-time-events (i.e. related to business strategy vs.
ad hoc)
Although CSR is often discussed in the context of larger enterprises, it also is a strategic tool
to enhance the competitiveness of SMEs. While the positive effects of CSR can be difficult
to comprehend initially, with a simple system organizations can ‘Measure, Report and Verify’
the impact of CSR on its business.
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CSR in the Context of Albania:
CSR is an important tool for private sector to actively contribute to the sustainable
development, which is a long-term goal of EU. New EU Member States and candidate
countries face a challenge of integrating sustainability principles on a country and sectoral
level in order to reach coherence with old EU countries. The UNDP has been already
supporting projects with the aim to accelerate the implementation of CSR practices in the
new EU Member States and candidate countries: Bulgaria, Croatia, Hungary, Lithuania,
Macedonia, Poland, Slovak Republic and Turkey.
The European Parliament adopted the Directive 2013/34/EU in April 2014, and this requires
disclosure by companies and groups on “non-financial” (e.g. social, environmental impacts)
and diversity (e.g. women employees, marginalized groups etc.) related information. The EU
Directive takes on the ‘CSR Law’ that exists in Denmark since 2008, and has helped the
country gain significant expertise in helping companies integrate sustainability strategy into
business strategy.
To help companies in Albania prepare for the eventuality, the UNDP has appointed a
consortium led by Denmark based Grue + Hornstrup (G+H) and the local expertise of Delina
Fico and Mirela Arqimandriti to support interested companies take the initial steps in
implementing CSR within their organization and gaining a massive advantage.
Defining SME:
In many ways, small and medium enterprises (SMEs) are the original sustainable businesses.
Close links to customers, employees and suppliers, and the integration of business with family
life mean that SMEs are often better than large firms at understanding communities and the
natural environment. Sustainability and the legacy of the firm are a part of SMEs’ day-to-day
activities – even if they don’t call it CSR.
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Influencing SMEs' competitiveness through CSR
Saving Money: CSR involves reducing waste and unnecessary energy, fuel and other inputs.
All these actions can save companies money.
Managing Business Risks: CSR helps firms get ahead of supply chain pressure and ever-
stricter regulation. Firms adopting sustainable practices early avoid a costly rush to comply.
Maintaining Social Acceptance or “license to operate”: In order to do business, companies
need to be seen positively by its “stakeholders.”
CSR and Stakeholder Relationships:
• Employees: Treating employees well increases their job satisfaction and makes
them more likely to stay with the company. Other CSR initiatives can also increase
employee loyalty.
• Customers: Customers who know about a company’s CSR actions think better of
the company and are more likely to patronize it. Companies that have integrated
CSR into their business systems may also find new market opportunities.
• Community: Community connections can have multiple benefits. For example,
keeping neighbors informed about actions that might affect them, like a building
expansion, will make projects go more smoothly.
• Peers: Peer companies increasingly value sustainability in their partners. Other
companies can also provide CSR advice and collaborate on CSR initiatives.
• Regulators: CSR practices help companies meet legal requirements. As an added
benefit, companies in compliance get new permits more quickly.
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CSR and Triple Bottom Line
In a broad sense, CSR is the relationship between business and the society (including its
stakeholders) in which it operates. It looks beyond financial and regulatory commitments of
organizations and corporations (the ‘C’ of CSR) and drives towards a more inclusive social,
environmental and economic decisions (the expanded ‘S’ of CSR) with a focus on being
ethical, transparent and responsible in its decision making (the ‘R’ of CSR). In order to make
CSR accountable, the concept of Triple Bottom Line (TBL) sought to extend the traditional
business accounting practice of assessing, reporting and verifying the ‘bottom line’ (i.e.
Profits), to include the 3 pillars of TBL, namely ‘People’ ‘Planet and ‘Profit’.
Fig 1: TBL and the Circles of Sustainability
Social Sustainability
People
Economic Sustainability
Environmental Sustainability
PlanetProfit
The 3 pillars of TripleBottom Line pyramid
The 3 circles ofSustainability
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2. Developing a CSR Strategy – Quick Wins
SMEs can take simple, achievable steps to become more sustainable. Even a very small firm
can reinforce its position as a responsible member of the community without becoming a
‘CSR expert’. Actions can be “quick wins” or a comprehensive CSR Strategy.
• Quick wins are easy to accomplish and don’t require a lot of expertise or effort.
• A comprehensive CSR Strategy require that an organization takes stock of its
business and identify opportunities that are a good long-term fit. While more time
consuming, a comprehensive approach may have more significant payoffs and
result in enduring positive social, economic and environmental change.
Types of CSR Activities – Quick Wins
In completing the ‘CSR Self-Assessment Tool’ (See Annexure), SMEs will being to recognize
that their current set of socio-economic and environmental activities can be categorized
under one or more of the 4 categories below:
• Workforce-oriented CSR Activities
• Market-oriented CSR Activities
• Society-oriented CSR Activities
• Environment-oriented CSR Activities
Formalizing ‘Quick Win’ CSR Activities (Preparatory Phase):
The first step for a SME is to formally recognize existing activities as quick-win CSR activities.
Recognition will require documenting and communicating the on-going efforts to SME
stakeholders. While the initial focus can be on educating internal stakeholders (e.g. workers,
managers, owners), it is equally important to raise awareness with external stakeholders
(suppliers, consumers, local community, financers, government) and be recognized.
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In the following sections, the action plan discusses what constitutes different CSR Activities
and few examples of CSR activities undertaken by SMEs in Europe.
Workforce-oriented CSR Activities
A focus on work force / employees includes, for example:
• Improvement of working conditions (e.g. health and safety of work place along
with appropriate training)
• Work/life balance (e.g. fair distribution of working hours/week)
• Equal opportunities and diversity
• Training and staff development (incl. Career planning)
• Better communication with employees and participation in company decisions
• Responsible and fair remuneration or financial support of employees (e.g. Pension
systems, interest-free loans etc.)
Examples:
The medium-sized Polish construction company "MELBUD Sp. Z.o.o." has an internal social
fund to finance cultural, educational or sport activities for employees or Christmas vouchers.
Out-standing members of the staff can also expect to get loans that do not have to be fully
re-paid. The employees have a feeling of professional stability and identify themselves with
the company. This results in a better atmosphere, a higher commitment and engagement.
The Romanian research company "SC Icemenerg SA" assigns 5 % of its turnover to measures
targeting at improving the employees' working conditions, e.g. by investing into
occupational health, training, social events (such as the provision of a recreation center or
a gym hall).
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Market-oriented CSR Activities
Market-oriented CSR activities target, on the one hand, at the customers and, on the other
hand, at business partners and/or suppliers. Respective initiatives include
• Activities to improve the quality or safety of products
• Provision of voluntary services to the clients
• Fair pricing
• Ethical advertising
• Paying suppliers or business partners without delay
• Contracting local partners
• Driving standards through the supply chain
• Supporting the establishment of local/regional business alliances
Examples:
As part of its management policy, the Spanish medium-sized manufacturing company
"Ascensores Jordá" follows an active subcontracting policy with its suppliers, establishing
long-term relations with them and developing a number of collaborating activities in several
fields such as quality control, risk prevention etc. In fact, the enterprise continues maintaining
business relationships with their initial suppliers (since 1953).
The German small kitchen producer "Die Möbelmacher GmbH" arranges cost free cookery
courses for the customers to familiarize them with both, the firms' kitchens and health-
conscious diets. The enterprise initiated and participates in various co-operations. Once a
year, regional producers come together for a "Day of the Region" to exchange experiences
and inform others about their own sustainable business approach. As a result of these
activities, Die Möbelmacher achieved significant increases in turnover during the past years.
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Society-oriented CSR Activities
CSR activities targeted at the society/community may refer to
• Labour market integration at community level (e.g. youth training program)
• Improvement of the local infrastructure (e.g. financing and/or supporting the
construction of a community center)
• Cash or in-kind donations to local community institutions (e.g. Schools, hospitals,
environmental groups, cultural organizations, leisure and sports clubs etc.)
• Support of the society in a wider sense (e.g. working with the local municipality to
set up a waste management or recycling facility)
Examples:
"Stormberg AS", a small Norwegian wholesaler recruits at least 25 % of their employees from
persons who are disadvantaged at the labour market. Presently, almost 30 % of the
employees are former prisoners, school drop outs and people with a drug abuse problem.
The company benefits from very loyal employees, low personnel fluctuation and
absenteeism. Only four people have left the company since it was established in 1998.
Kamza Development - Garden City in Tirana
“Constructing with quality and with a modern road infrastructure, creating spaces of green
area, playgrounds parks for children, facilities for young and elderly people makes our
residential complex "Garden City" unique in its kind in Tirana city. Duties and our responsibility
for our customer do not end with the sale but continues throughout time by creating
facilities and green areas, common area maintenance and keeping clean our living places
to make it more comfortable as possible in order to increase the quality of life for residents
in our complex.”
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Environment-oriented CSR Activities
CSR activities in the field of the protection of the environment focus on
• Designing environmentally friendly products or production processes
• An efficient use of resources
• The reduction of waste and pollution
• Applying an ecologic assessment on the suppliers concerning their environmental
standards
• Informing business partners, customers or the society on environmental issues
Examples:
Denmark based engineering consultancy “Grue+Hornstrup” follows a CSR approach in the
fields of waste management, sorting and recycling, energy-saving by turning down lights at
night as well as using devices to maximize the use of natural light during working hours.
Furthermore, the company is actively engaged in the implementation of the UN Global
Compact (a global CSR eco-label) in the organization which helps improve its brand image.
These activities are not only ecologically valuable, save money by reducing costs but also
generate new business partnerships and opportunities.
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3. Comprehensive CSR Strategy
The comprehensive approach will allow SMEs interested in not pursuing a singular approach
but combine two or more of the above areas. More importantly it deals with finding a
synergy between a company’s “CSR Strategy” and its “Business Strategy”
Fig 2: Comprehensive Approach: Synergy between CSR and Business Strategy
CSR Strategy
The value of looking at CSR as an issue that is strategic, rather than one that is merely
philanthropic or problematic allows SMEs to take a much more meaningful and proactive
approach to CSR. SMEs do not have to respond reactively towards CSR nor do they have to
struggle with understanding the strategic implications of CSR if done right. While not fool-
proof, the following 7-step approach provides a road map to SMEs in developing a CSR
Strategy in a structured manner. The steps can be followed by any organization irrespective
of size and type. While organizations can choose to tackle the steps in far greater level of
detail, SMEs can use a more simplified approach as elaborated in this section.
Committo CSR
Assess
Define
ImplementMeasure
CommunicateBusinessStrategy
CSR Strategy
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CSR Strategy – The 7 step approach:
Phase Key Action Expected Outcome
Step 1:
Preparatory
Phase*
SME to complete the ‘CSR
Assessment Tool’.
‘CSR Self-Assessment Tool’ provides an
overview of existing CSR capabilities and
helps SME define ‘quick-wins’.
Step 2:
Commitment
SME Management to indicate their
willingness to pursue a more well-
defined approach to CSR.
A letter of commitment signed by the
SME owner or CEO.
Step 3:
Assessment
List all CSR activities that can be
undertaken and apply the ‘Decision
Making Matrix’.
A set of shortlisted CSR Activities is
available with a clear purpose/objective
for pursuing each.
Step 4:
Define
The shortlisted CSR activities are
defined through a ‘CSR Road-Map’.
Completing the first half of the roadmap
provides qualitative and quantitative
targets for the CSR activities
Step 5:
Implement Complete the CSR Road Map
Competing the 2nd half of the roadmap
provides an overview of resources and
capacities required to implement CSR
Step 6:
Measure
Create simplified ‘Forms’ and
‘Procedures’ for data collection
and reporting.
The road map with the monitored data
can be used to create a simple CSR
report based on the TOC.
Step 7:
Communicate
Prioritize stakeholders who need to
be informed about CSR activities.
Develop a communication strategy to
convey findings of the CSR report.
Note: The Preparatory Phase has already been discussed in Section 2 of this document.
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Commitment:
The preparatory phase and completing the ‘CSR Self-Assessment Tool’ allows the SME’s
management team/owner to evaluate existing capabilities within its organization thus giving
it a sense of purpose to take a more strategic approach to implementing CSR.
The first step prior to the development of a CSR strategy typically involves a commitment by
the SME management team/owner to pursue CSR. This is an internal process and requires
the organization to answer to itself the question – “What is our understanding of the term
CSR and sustainability? As an organization are we willing to pursue a path that will allow us
to sustain ourselves financially while being a good social and environmental steward?”
SME Action:
Once convinced, the senior management/owner can indicate its commitment to pursue
CSR by issuing a letter with the signature of the owner or CEO.
Converting Quick Wins to Long Term CSR Activity:
At this phase, some thought needs to be given to ‘quick wins’ that has the potential to be
transformed into a more medium/long term action:
Type Quick Win Potential Long Term Action/Benefit
Society-
oriented
Organizing factory visits and
workshops for local students to
build awareness and sense of
ownership within the community.
Identifying skilled students as potential
future employees by offering internships.
This early relationship building can lead to
creating a pool of future workers.
Environment-
oriented
Conduct a simple water/carbon
footprint based on utility bills for
water and energy consumption
Implement water and energy efficiency
measures that can help reduce costs.
Annexure: Example of a simple letter of commitment
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Assessment:
The assessment phase is a 2 step approach. The first step involves making a broad list of CSR
activities that can be pursued by the SME. In keeping with the CSR Self-Assessment Tool, the
activities can be categorized using a simple tabular format:
CSR Activity (Examples) Workforce Market Society Environment
Support the construction of a local
community and sports center
Implement a quality assurance and train
workers to implement quality control
Step 2 helps shortlisting the CSR Activities based on its relevance to the organization. The
SME can choose a simple graded scoring (e.g. using a scale of 1 to 5) or choose to elaborate
further to get a qualitative (e.g. risks vs benefits) and quantitative (e.g. % impact on profits,
timeframe for implementation) overview of the shortlisted CSR activities. Both approaches
will allow the activities to be ranked based using this decision making matrix:
Decision Making Matrix Score
(1-5) Comment
E.g. Support the construction of a local community and sports center
SME: ABC Clothing Company
Profitability: Will the activity eventually benefit the
bottom line? 2
There is no direct impact on
profitability unless the sports center
has a shop that sells our clothing
Purpose: Is the activity aligned to the core
services/products that the SME offers?
Stakeholder: Will the activity improve the SME’s
relationship with stakeholders?
Issues: Does the activity focus on appropriate
issues/risks affecting the SME?
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Efficiency: Does the activity allow the SME to use
its organization efficiently?
Benefits: Does the activity lead to social,
economic and/or environment benefits?
Timeframe: Is the activity quick win/short, medium
or long term in outlook?
The Materiality Matrix
A tool often used by CSR Professionals is to develop a ‘CSR Materiality Matrix’. SMEs can
choose to combine the results from the matrix (i.e. importance to organization) with a
survey (ranking CSR activities) conducted with the SME stakeholders.
Fig 3: Materiality Matrix - CSR activities categorized
based on responsibility and size of impact
For more information, contact Grue+Hornstrup A/S, Denmark
Imp
ort
ance
to
sta
keh
old
er
Importance to organization
Low
Average
High
3
5
2
4
1
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Define:
To further distill the CSR Activities into implementable actions, it is necessary to build linkages
with the SME’s business strategy. A true synergy between the CSR and Business Strategy, as
shown in figure 2, lies in developing a ‘Business Case’. A business case in the context of CSR
calls for assigning monetary value to every aspect of CSR activity. E.g. consider the table
below which quantifies the cost to a company for retraining of new workers:
Business Case: E.g. Workers
leaving the organization
Relationship with
Manager/Boss
Reason: Lack of
Motivation Better opportunities
elsewhere
Unit cost of training a new
worker until he is up-to-speed USD 1,000 USD 1,000 USD 1,000
No. of workers leaving the
organization in year X 20 10 15
Cost for company 20,000 10,000 15,000
% impact on company
profitability in year X 0.5% 0.3% 0.2%
Potential CSR solution
(examples)
Provide training to
managers
Organize team
building activity
Bonus pay vs
performance
Cost for implementing
a CSR solution USD 5,000 USD 7,500 USD 30,000
Return on Investment 3 months 9 months 2 years
SME Action:
While, a business case can be presented directly to Chief Financial Officer and shareholders
thus providing a direct linkage between financial performance and non-financial indicators,
SMEs can pursue a more simplified approach by answering the 4 questions:
• Does the CSR Activity lead to Cost and/or Risk Reduction?
• Does the CSR Activity lead to a Competitive Advantage?
• Does the CSR Activity support in building a Reputation and Brand?
• Does the CSR Activity lead to a Win-Win Situation?
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At this point, the SMEs are expected to have greater level of clarity for each of the CSR
activities. For each of the shortlisted CSR Activities, a ‘CSR Road Map’ document as shown
below can be defined along with KPIs and Targets for the next financial year.
Stakeholder: Workforce
Objective: To provide our employees with opportunities for self-development in a challenging
environment
CSR Action - 1: Train Personnel and Promote Human Rights
Secure and train personnel, diversify and strive to protect employment, respect human rights,
and continuously improve workplaces.
Goals:
(1)Respect human rights by prohibiting discrimination in any form based on factors such as race,
gender, academic background, nationality, religion or physical characteristics. Grant fair
promotion of employees based on ability
(2)Create supportive workplace environments for employees
(3)Actively provide training opportunities for employees
Key Performance
Indicators
Targets for Year 2014
Social Environmental Economic
Women in senior
management
20% of all employees
above the rank of
manager should be
women
No impact Potential impact on
profitability of
women’s wear. No
target specified.
Number of training
programs for staff
4 per year for each
department.
1 training program
should focus on waste
management
Reduced waste will
lead to savings of
USD 2,000/year.
Lower number of
people leaving the
organization will
reduce the cost of
retaining workers
Example of a ‘CSR Road Map’ document
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Implement:
The road map can be further expanded to include additional information as shown below:
… Continued from above ‘CSR Framework Document’
CSR Decision Making Structure:
CSR Team: (State Names of Personnel, Roles and Responsibilities)
Training and Capacity Building: (Provide a description of the additional training required to make
the CSR Team competent to undertake the required activities)
Additional Resources: (State financial and non-financial resources required to successfully
implement the CSR activity)
Measures to address problems / challenges: (State the mechanism set up to secure feedback
during the implementation process and means to address the problem)
Monitoring and Reporting: (State the procedures for data monitoring against the set targets)
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Measure and Report:
“What can be monitored can be measured but what can be measured cannot always be
monitored”! Measuring and reporting is taking an increasingly important role with CSR and
assures stakeholders that a proposed program meets its set objectives and goals. Measuring
and reporting CSR can keep a track of the overall performance under a pre-defined set of
indicators (e.g. social, economic and environmental indicators).
SME Action: Monitoring
Adapting from international best practices, SMEs can develop a simple set of ‘Forms’ and
‘Procedures’ for monitoring and reporting. A ‘Form’ is a tabular data collection sheet as
shown in the example below while a ‘Procedure’ provides instructions on how the data
collection needs to be carried out (e.g. reading of electricity meter on 1st of every month +
reference no.), the persons responsible (e.g. the staff taking the reading, the manager
responsible to cross check the reading), the supporting evidence (e.g. utility bill).
Fig 4: A Monitoring Form for electricity consumption
Project Title:
Month Electricity meter
reading in MWh
Sign of Operator
(Making entry)
Electricity reading as
per Utility bill in MWh
Invoice
No.
Cross-Checked by
(Sign QC)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
TOTAL
Form No: A1.1
Corresponding Procedure No. A1.1 Entity: Period of Data: YYYY
QA Manager Sign:
Other Details:
Validity:
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SME Action: Reporting
Reporting refers to presentation of the monitored data to broader set of stakeholders in an
easy to understand manner. Internationally there are several types of reporting standards
available. As initial step, SMEs are encouraged to follow a simplified reporting format with
the following table of contents:
Statement from SME Owner/CEO indicating commitment to CSR
Brief company profile and period of report
Workforce-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Society-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Market-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Environment-oriented CSR Activities
− List the activities
− List the KPIs and targets
− Performance in current year against the targets
− Plans for next year
Summary Statement
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Key
Performance
Indicators
Targets for Year 2014 Progress in 2014
Social Environmental Economic Results % Success
Women in
senior
management
20% of all
employees
above the
rank of
manager
should be
women
No impact Potential impact
on profitability of
women’s wear.
No target
specified.
7 women
employed
equivalent
to 10% of all
employees
50%
Example of ‘CSR Road Map’ document expanded to form a ‘CSR Report’.
Communicate:
Developing a CSR Communication Strategy is about reaching out to stakeholders,
celebrating achievements and acknowledging shortcomings. A simple matrix (see below)
can help decide the stakeholders and the means of communicating the findings in the CSR
Report. It can take the form of a simple email (e.g. PDF attachment), or form part of an
advertising campaign (e.g. 60% of ABC employees are women) or form part of the annual
financial statement (e.g. printed hard copies)
Fig 5: Stakeholder prioritization matrix
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Annexure:
CSR Action Plan Version 1.0
This CSR Self-Assessment Tool is developed to support companies in Albania to self-evaluate
their current readiness on Corporate Social Responsibility and act as a starting point for
decision making to implement and integrate sustainability strategy as part of the company
business strategy.
For further queries on the tool, contact: Arindam Basu, Grue+Hornstrup A/S, Denmark.
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Instructions:
The CSR Self-Assessment Tool is designed for companies to internally evaluate the current
gap with respect to an “ideal” CSR scenario. The tool consists of 12 Sections each with 5
questions. The first 2 sections are general in nature and the sections 3-12 have a specific
orientation as elaborated in the Annexure to identify the company motivation.
The company is expected to appoint a knowledgeable person to complete the
questionnaire and for each question there are 5 possible answers:
Yes
No
Pa (Partially applicable)
NA (Not applicable)
DK (Don’t know or insufficient information or question not understood)
Instructions:
The company may provide a scoring for each answer as suggested:
Yes: +2 (Plus 2)
No: -2 (Minus 2)
Partial: +1 (Plus 1)
Not Applicable: +1 (Plus 1)
Don’t Know: 0 (Zero)
Multiplier:
The annexure at the end of the12 sections provides a multiplier for the CSR strategy or
direction that the company wants to take based on its motivation for pursuing CSR.
Multiply the score by 2 based on the top ranked ‘Orientation of CSR Activities’ for the
specified sub-sections. For example, if the top ranked motivation is environment oriented,
then the total score for Sections 8 and 9 should be multiplied by 2.
Add up the score for all sections to get the total score out of 120.
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Section 1: General Questions (Total Score: )
S.No. Questions Yes No Pa NA DK
G1.
Does the company operate within appropriate
national and regional legislations and pursue activities
that is not considered illegal?
G2. Does the company senior management understand
the concept of Corporate Social Responsibility (CSR)?
G3. Does the company have a written policy that highlights
the company/ management's commitment to CSR?
G4. Has the company identified a personnel from the senior
management to deal with CSR related issues?
G5. Does the company have a dedicated department or
manager for CSR?
Section 2: Management System (Total Score: )
S.No. Questions Yes No Pa NA DK
M1.
Does the company have a system in place that allows
employees to provide feedback, recommendations,
complaints etc. to the company management?
M2.
Does the company have a system to address the
feedback, recommendations, complaints etc.
received from employees?
M3. Does the company publish audited financial results
annually and make this information publicly available?
M4. Does the company have a system to measure and
report ‘non-financial’ performance?
M5. Does the company make the information related to its
non-financial performance publicly available?
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Section 3: Labour Rights (Total Score: )
S.No. Questions Yes No Pa NA DK
L1.
Does the company provide a written contract to all
new employees that spells out the rights, obligations
and the terms of its employment?
L2.
Does the company recognize the rights of its workers to
form unions and allow employees to discuss work
related issues in a free and fair manner?
L3.
Does the company guarantee the implementation of
the Albanian Labour Code and allow the workers to
receive paid:1) Holidays 2) Sick leave 3) Parental leave
L4.
Does the company limit the work-week of its workers to
40 hours/week and ensure adequate compensation
(financial and rest periods) for additional work hours?
L5.
Does the company provide reasonable wages to its
workers that is above the minimum wage and is
comparable to similar companies in Albania?
Section 4: Human Rights (Total Score: )
S.No. Questions Yes No Pa NA DK
H1.
Does the company have a written ‘Code of Ethics’ on
engaging with all its employees, suppliers and other
business partners?
H2. Does the company ensure that it does not employ or
participate in forced or bonded labour in any form?
H3.
Does the company comply with minimum age
standards for its employees as elaborated in Albania’s
legislations?
H4.
Does the company have a written policy against
gender discrimination and sexual harassment in
workplace?
H5.
Does the company provide equal pay to all its workers
based on responsibility irrespective of their gender,
ethnic background or disability?
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Section 5: Work Place Diversity (Total Score: )
S.No. Questions Yes No Pa NA DK
D1. Does the company employ people from groups that
are considered as ethnic minority*?
D2. Does the company employ people that are
considered as people with a disability?
D3. Does the company have women representation at
management level?
D4. Does the company employ people irrespective of their
religious beliefs?
D5. Does the company employ people irrespective of their
sexual orientation?
Section 6: Anti-Corruption (Total Score: )
S.No. Questions Yes No Pa NA DK
A1. Does the company senior management take a clear
stand against corruption?
A2. Does the company have a written policy on anti-
corruption?
A3. Does the employee educate its workers against the
risks associated with corrupt practices?
A4. Does the company have a written policy or promote
anti-corruption practices with business partners?
A5.
Does the company encourage its workers to directly or
anonymously report corrupt practices either within the
organization or with business partners?
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Section 7: Health and Safety (Total Score: )
S.No. Questions Yes No Pa NA DK
S1.
Does the company have written emergency
procedures, and a system in place to deal with
industrial accidents?
S2. Does the company provide its workers a suitable, safe
and sanitary work environment?
S3. Does the company provide training to its workers to
operate in a safe and risk-free manner?
S4. Does the company provide and require the use of
protective equipment for its operations?
S5. Does the company regularly assess and report the
health, and safety impacts of its operations?
Section 8: Environment (Total Score: )
S.No. Questions Yes No Pa NA DK
E1.
Does the company evaluate the risks associated with
climate change on its business performance (through
its annual reports or other written document)?
E2. Does the company procure part of its energy (heat or
electricity) from renewable energy sources?
E3. Does the company take active measures to reduce
the consumption of energy and water?
E4.
Does the company regularly assess and report the
environmental impacts of its operations such as
emissions from greenhouse gases?
E5. Does the company employ any specific environmental
friendly technology in its operations?
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Section 9: Waste Management (Total Score: )
S.No. Questions Yes No Pa NA DK
W1. Does the company operations result in discharge of
waste that are hazardous in nature?
W2. Does the company promote reuse and recycling in its
operations?
W3. Does the company take active measures to reduce
production of waste?
W4. Does the company take active measures to reduce
discharge of liquid waste or waste water?
W5. Does the company treat any waste before discharging
/ releasing them into local environment?
Section 10: Certifications and International Laws (Total Score: )
S.No. Questions Yes No Pa NA DK
L1.
Does the company actively pursue the Universal
Declaration of Human Rights and recognize the
inherent dignity of the equal rights of all members of all
humans?
L2.
Does the company actively pursue the international
labour standards as prescribed by the International
Labour Organization (ILO)?
L3.
Does the company management recognize the risks
associated with the EU framework regulations on
combating corruption in private sector?
L4.
Does the company pursue any internationally
recognized environmental standards or certifications in
its operations?
L5. Is the company management aware of the UN Global
Compact and its 10 principles?
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Section 11: Community and Society (Total Score: )
S.No. Questions Yes No Pa NA DK
C1. Does the company pursue any activity that are
philanthropic in nature?
C2. Does the company contribute to activities that
promote local community development?
C3. Does the company encourage its workers to actively
participate in community projects?
C4. Does the company raise awareness of its activities with
the local community in which it operates?
C5.
Does the company invite local community participants
to visit its business premises (e.g. annual open house or
a tour of the company for school children etc.)
Section 12: Business Partners (Total Score: )
S.No. Questions Yes No Pa NA DK
P1. Does the company deal with international business
organizations (suppliers, consumer company etc.)?
P2.
Does the international business partner require the
company to comply with a minimum standard of good
practice for doing business (e.g. code of ethics, labour
standards, environmental standards etc)?
P3. Does the international business partner voluntarily
measure and report its non-financial performance?
P4.
Does the company management engage with its
domestic business partners in promoting good business
practices*
P5.
Does the company have a policy to deal with partner
organizations that do not abide with good business
practice (e.g.
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Motivation of the Company
This section is aimed at helping companies identify the type of CSR actions that they wish to pursue.
The CSR actions can be broadly classified as:
S.No. Orientation of CSR Activities Sections* Rank (1-5)
M1. Workforce oriented CSR activities
Section 3: Labour Rights
Section 4: Human Rights
Section 7: Health and Safety
M2. Society oriented CSR Activities Section 5: Work Place Diversity
Section 11: Community & Society
M3. Environment oriented CSR Activities Section 8: Environment
Section 9: Waste Management
M4. Market oriented CSR Activities
Section 6: Anti-Corruption
Section 10: Certification & Laws
Section 12: Business Partners
M5. Comprehensive CSR Activities All of the above
* Note: For column ‘B’ below, use multiplier of 2 for the top ranked (i.e. 1) sections only.
Total Score:
Section Title Score (A) Multiplier (B) Total (AxB)
1. General Questions 1
2. Management Systems 1
3. Labour Rights 1
4. Human Rights 1
5. Work Place Diversity 1
6. Anti-Corruption 1
7. Health and Safety 1
8. Environment 1
9. Waste Management 1
10. Certification & Int. Laws 1
11. Community & Society 1
12. Business Partners 1
TOTAL Score -- --
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Annexure: Additional Forms
CSR Action Plan
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CSR Action Plan
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