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CSR Analysis — What You Need To Know?

Corporate Social Responsibility (CSR) is a self-regulatory business model. Its purpose is to hold companies accountable to itself, its constituents, its shareholders, stakeholders, and society. It’s an essential tool to keep companies accountable.

In this article we will give a brief rundown of CSR before delving into CSR Analysis, what it is, and why it is increasingly becoming more relevant at present.

After reading this article you will know enough about CSR to understand what CSR analysis is and why it is significant for organizations to have. You will also have the knowledge needed to understand the requirements of a CSR analysis, its important features, and its foundations.

Furthermore, I have created a free-to-download editable Sustainable Procurement Strategy template. It’s a PowerPoint file that can help you with your sustainability initiatives. I even created a video where I’ll explain how you can use this template.

What is Corporate Social Responsibility Analysis?

Corporate Social Responsibility Analysis or CSR Analysis for short is an assessment that organizations take to understand how they fare about their competitors.

With this information, an organization can see how well they perform compared to their peers or, if they find out they perform poorly, they will be given the information to know what it is exactly that they can improve upon so that they can find ways of being more efficient in those areas.

Usually, all relevant data about a company’s products, services, activities, processes, values, etc. are examined and analyzed to find out if any CSR issues need to be addressed. But of course, before we can delve into CSR Analysis it is crucial to grasp what CSR is.

A Brief Rundown of Corporate Social Responsibility

Before talking of CSR Analysis it is essential to grasp what CSR is. Hence, this section will provide an ample information as to what CSR is.

CSR, also known as corporate citizenship, is a good way for companies to commit to ethically accepted behavior. The goal of CSR is to make sure an organization is part of developing the economy all while contributing to improving the quality of life overall and environmental preservation. In summary, Corporate Social Responsibility calls for organizations to be socially aware and sustainable.

There are three pillars of Corporate Social Responsibility:

1. Profit Pillar

No business can be sustainable if it isn’t profitable. However, it must also be highlighted that even though it is important to earn profit, it should not trump the other two pillars, but rather work together to achieve perfect harmony with each other.

This pillar is further divided into three categories which are:

• • • • Sales – A steady flow of demand to sustain the business
      • Service – Customer satisfaction
      • Strategy – Getting Sales, Service, and everything in between to work together for the benefit of the organization

2. People Pillar

This pillar focuses on having the approval of its employees, stakeholders, and society in general. As it is concerned with the people aspect of a corporation it means treating people fairly and being responsible when it comes to the organization’s impact on society.

This pillar is also further divided into three:

• • • • Company – A strong and efficient team that’s fit for the job
      • Character – Utilizing individual employees to give their best to the organization
      • Community – A positive impact on the community is needed to sustain the organization

3. Planet Pillar

This is the pillar that focuses on things like the reduction of carbon footprints, packaging waste, water usage, and other things that concern the environment and how the organization impacts it.

The planet pillar can be broken down into three divisions:

• • • • Reduce – Reduction of resource waste is desirable
      • Reuse – Reuse products if possible
      • Recycle – If a product can no longer serve its original purpose then it should be repurposed into something new

Types of Corporate Social Responsibility

What are the Benefits of CSR Analysis?

Here are some of the benefits of a CSR Analysis:

1. Transparency

Companies that go through CSR analysis show stakeholders, customers, and the community what exactly is going on with the company about social and environmental responsibility.

This benefits the public because it shows the extent of an organization’s care when it comes to its social responsibilities. This also either exposes a company’s negative effects on society or highlights the good that they do for it.

2. Finding Strengths and Weaknesses

Companies that go through CSR analysis have the benefit of knowing what they should change or improve on and what they’re doing that already upholds their CSR standards. This makes it easier for organizations to strategize and make informative decisions for themselves concerning CSR.

3. Branding

Having a CSR analysis, especially if it is consistently done, makes companies more desirable to customers and keeps customers loyal. Going through a CSR analysis means that companies are showing that they uphold and care about upholding CSR which consumers tend to look for in organizations that they support.

4. Avoiding crucial risks

Companies that uphold CSR and evaluate themselves with a CSR analysis are less likely to get into legal trouble or marketing trouble. A CSR analysis upholds their reputation of being socially and environmentally responsible, steering them away from legal risks and social scrutiny while contributing positively to society and helping to preserve the environment.

5. Sustainability 

Considering the state of the Earth sustainability has become a top priority and aside from legal and ethical concerns it benefits companies to be sustainable because the preservation of the planet is important for the continuation of human existence. A CSR analysis makes sure that a company is on the right path to environmental preservation.

Now that we’ve tackled the benefits let’s talk about some of the challenges that CSR analysis faces.

What are the Challenges of CSR Analysis?

1. Greenwashing 

Why should CSR Analysis be Conducted?

How is CSR Analysis Conducted?

CSR Analysis, when conducted right, will provide beneficial information on the CSR stand of an organization. These are the general steps in conducting a CSR Analysis:

1. A CSR leadership team is assembled

The first step is to form a dedicated CSR leadership team within the organization. This team should consist of individuals from various departments who can provide insights and expertise in CSR-related matters. The team should include representatives from management, legal, communications, sustainability, and other relevant areas.

2. A working definition of CSR is determined

It’s essential to establish a clear and comprehensive understanding of what CSR means for your organization. This definition should be aligned with your company’s values and mission. It should encompass the social, environmental, and ethical dimensions of CSR and serve as a guiding framework for the assessment.

3. Legal requirements are identified

Every jurisdiction has different regulations and legal requirements when it comes to CSR. The assembled CSR team should identify and understand the applicable laws and regulations that pertain to the organization’s operations. This may include labor laws, environmental regulations, and specific reporting requirements.

4. Corporate documents, processes, and activities are reviewed

This step involves a thorough examination of the company’s existing practices, policies, and procedures. The CSR team should review documents such as annual reports, sustainability reports, policies, and codes of conduct, and see as much of the process as they can to verify these reports.

They should also assess ongoing activities to identify areas where the organization is already engaging in CSR practices and where there may be room for improvement.

5. Key stakeholders are identified and engaged

CSR is not solely an internal matter; it involves interactions with external stakeholders as well. The CSR team should identify and engage with key stakeholders, including employees, customers, suppliers, local communities, non-governmental organizations, and investors. This engagement is essential for gathering feedback, understanding expectations, and building collaborative relationships. Furthermore these stakeholders may be able to point out to the CSR team certain observations that aren’t necessarily as obvious internally.

The term general steps was used above because there are various ways to go about conducting a CSR Analysis but there are general steps followed to achieve success in the assessment. However, the CSR Analysis is conducted it should be based on these principles:

• Bases conclusions on evidence
• Considerate of industry sector, country, and size
• Varied resources
• Emphasis on technology
• Employs international CSR experts for assessments
• Gives importance to traceability and transparency
• Strives for continuous improvement

Real-Life Examples of CSR Analysis

Conclusion