Frankly CSR

In my last post, I outlined how ERP systems can and should form the foundation for CSR program management. Moving up a level in the CSR Solution Framework, in this post, I will focus on the use of an internal control system. 

In my experience, almost all CSR programs contain elements of governance, risk management and compliance. Let’s face it, the fear of risk and regulatory penalties provides great motivation for organizations to undertake CSR programs. While these are definitely not the most altruistic reasons on which to base a CSR program, organizational stakeholders still benefit from the activities. 

Today, there is a category of software labeled Governance, Risk, and Compliance (GRC). Lawson offers a solution in this category called Compliance Control Manager. Most GRC products can be more broadly described as an internal control system.  An internal control system allows organizations to more effectively and efficiently manage GRC requirements – whether government-mandated or established by the organization.  It can centralize the information organizations need to manage CSR activities within any functional area (e.g. finance, HR, supply chain management manufacturing) and across the enterprise. This is the main reason why, in the CSR Solution Framework, the internal control system sits on top of the ERP applications. Internal control systems typically focus on four key areas: 

• Documentation. A central repository of all governance, risk management and compliance-related documents that is accessible to auditors and managers, and allows documents to be updated. 
•  Testing. Tracking testing activities, including what was tested, when, by whom, the results and any remedial actions when testing failed. 
• User interface. Communicating all key information to the appropriate audiences through a user portal. 
• Monitoring. Enabling organizations to manage key events/transactions within their ERP and other business applications and present any significant or material events to the appropriate audience.

While these products were designed to address regulations such as Sarbanes-Oxley and Basel II, organizations are now finding them effective in managing a variety of CSR programs, including: