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Corporate Social Responsibility

On July 5th, 2012, Posted by Author No Comments

What is Corporate Social Responsibility?

corporate social responsibility Corporate Social Responsibility is the accountability of corporations and business organisation to the society and the environment in which they are situated and to the stakeholders who depend on them. Corporate Social Responsibility is an essential component of the legitimacy and transparency of the activities of the organisation and has a positive effect in improving the competitive edge of the business in the market.

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 What are the different international standards of Corporate Social Responsibility performance of companies?

There are different standards of Corporate Social Responsibility (CSR) such as the AA1000, KLD, SA-8000, DR 03028 that are in use worldwide as guidelines for the CSR performance of companies. Some of these standards also measure report and rate the CSR performance of the organisations. For instance, ISO 26000 and AA1000 are only guidelines while SA 8000 offers certification for the company based on the compliance of its guidelines and GRI is a reporting standard and KLD is a rating standard.

How does the KLD Select Social Index work as a Corporate Social Responsibility performance standard?

The KLD Select Social Index or the Kinder, Lydenberg, Domini Research and Analytics was released in 2004 and makes an assessment of the social environment of business organizations by evaluating its community relations, diversity, employee relations, human rights, product quality and safety, environment and corporate governance. The data collected under these heads are made into an index with ratings grounded on detailed benchmarks within each category. The sum of these rating scores is taken as the company’s score.

How does the ISO 26000 work as a Corporate Social Responsibility performance standard?

ISO 26000 is a guideline prepared by the International Organization for Standardization and is purely voluntary. It does not involve management system standard and not used for certification. However, it included a corporate reporting/responsibility exchange tool and can hence be useful for the company’s compliance of all major rating systems.

How does the AA 1000 work as a Corporate Social Responsibility performance standard?

The AA 1000 is also not a certification but is a collection of principles and processes that can be utilised by the company managing and reporting its social and ethical performance. The stakeholders have a major part to play right from the planning stage and have a vital role in the performance of the organization. The AA 1000 uses the five stages of planning, accounting, auditing, reporting and stakeholder engagement.

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