Your customers want to know that they are supporting an ethical business. They also want to see how you are going above and beyond for the betterment of society and environmental health. Although it can be hard to blow your own trumpet, people will only know about the positive things your company is doing if you tell them.
In addition to this, Corporate Social Responsibility (CSR) reporting is on the rise, and there are plans to make it as important as your financial reporting in years to come. So, apart from helping you to build a positive reputation, CSR compliance seems set to become a set of activities all businesses will be required to commit to in future.
See some inspirational Corporate Social Responsibility (CSR) examples here.
What is CSR Reporting?
CSR reporting is a form of transparency. It’s an area in which you show how your company takes responsibility for its own impacts on society and the environment and strives to support the best standards of ethics possible. For example, you may be committed to fair employment practices in your business and supply chain or try to minimise and offset any negative impacts your business and its suppliers have on the environment.
Your customers will want to know that your business has high ethical standards. In your CSR reporting, you will state the principles you uphold clearly and explain how you are implementing them in practice.
Once you have placed your own internal policies and practices under the microscope, you can talk about the positive things your business does outside of its day-to-day business activities. For example, your business supports specific community initiatives or donates part of its profits to worthy charities. Clearly state specific causes you contribute to, how you do it, and what your positive impacts may be.
Then, it’s a matter of tracking your results, looking for areas for further improvement, and making this information available to customers, stakeholders and, when required, to the government.
Why is CSR Reporting Important?
By reporting your business’s CSR profile, you are showing that you accept accountability for your business’s role in society. Not only that, you are working to have a positive impact while minimising any unavoidable negative impacts.
By doing this, you build trust and engagement, not only with the public but with internal stakeholders. Employees, investors, and customers will feel that they are putting their time, energy, and resources into a business that is worthy of their respect and loyalty.
More pragmatically, you are managing long-term risks. For example, by being as economical as possible with resources, you are building a business that has a greater chance of being sustainable in the long term. In addition, you may have an advantage over competitors who do not work as responsibly as you do. As a result, you may win market share from them.
Reporting Frameworks That Support CSR
Corporate social responsibility is not a once-off action. It is a constant striving toward a set of goals that benefit everyone. Reporting frameworks that support this include:
- The Global Reporting Initiative (GRI) standards provide a framework for reporting both positive and negative impacts your organisation may have. This helps you to track progress and keep working towards your sustainability goals.
- International Organisation for Standardisation (ISO) standards include ISO 14001, which focuses on your environmental management system and provides a framework for continuous environmental improvement.
- Principles for Responsible Investments (PRI) is supported by the United Nations. It encourages its signatories to invest responsibly with the aim of developing a more sustainable global financial system.
- The United Nations Global Compact supports businesses that are working to contribute to sustainable development goals (SDGs). These goals include social and environmental goals while recognising the need for continued profitability.
Corporate Social Responsibility Reporting Laws
The EU’s Corporate Sustainability Reporting Directive came into effect in 2024. Its initial rollout only requires large companies to submit formal CSR reports. However, the EU says that it has plans to extend this regulation to smaller enterprises in the future.
The EU intends this form of reporting to accelerate the pace of change as businesses integrate CSR principles into their strategic priorities, recognising sustainability as a strategic opportunity. Reporting responsibilities are extensive and include the submission of data spanning 1,000 indicators.
Environmental and Ethical Reporting in the UK
The UK government aims to develop a framework for environmental reporting and is still in a consultative process to prepare for a rollout at the time of writing. It aims to align itself with the International Sustainability Standards Board’s sustainability reporting baseline as part of the International Financial Reporting Standards Foundation.
On the ethics front, a growing body of law ensures that society is protected from abuses, and these laws are refined on an ongoing basis. Here, we can consider areas like employment law and financial ethics that exclude abuses like bribery and money laundering.
What Are CSR Audits?
CSR audits are not yet a legal requirement. However, they help companies to identify and address CSR-related risks and develop strategies to counter them. Principles include looking beyond your business to its supply chain and seeking ways to improve the lot of at-risk people and communities.
At present, CSR audits are still a voluntary exercise that aims to help you make a difference where it matters most. They also help you identify sources of reputational harm for your company. For example, if child labour is used in your supply chain, your business may ultimately be held accountable for supporting this practice.
Sustainability Reporting For Small and Medium Enterprises
The UN notes that sustainability reporting in its most extensive form presents a challenge for smaller organisations and has expressed concern that the cost of formal reporting can be too high for them to contemplate. However, the UN says that global standards are converging, making it somewhat easier for smaller businesses to understand which standards they should help uphold.
The organisation calls for governments to seek ways to make full sustainability reporting more accessible to smaller businesses. Meanwhile, Global Reporting Initiative standards and reference to the UN’s sustainable development goals can provide a starting point for businesses that would like to begin implementing CSR reporting.
How RSVP is Reaching Out to Benefit Society, and How You Can Help
At RSVP, we have always prided ourselves on our track record of fair and ethical conduct toward our employees and customers. Now, we are taking it to the next level. We are donating our time and resources to the training of HMP inmates at Five Wells who are serving the last two years of their sentences and have demonstrated their commitment to rehabilitation.
Apart from certified training, they will receive real-life work experience and earn money they can save toward their reentry into society. As skilled customer service representatives, they stand a far better chance of finding work after their release. In fact, we will even seek opportunities for our alumni.
While RSVP will continue to offer its premium service, we are also encouraging new customers to support our Restart initiative. They will receive access to RSVP’s services at a lower cost while supporting a worthy cause. Clients can rest assured that our trainees will be properly equipped to represent their businesses and will be highly motivated to succeed.
Contact us today to find out how you can benefit society through our Restart program while receiving a valuable service for less.