Frankly CSR

In my last post, I promised to share some thoughts on how IT can help organizations manage their CSR programs. Over the past year, I’ve been leading a project at Lawson focused on how business software, more specifically ERP solutions, can help organizations manage their growing array of CSR programs. Rather than try to cover this topic all at once, I plan to spread it over a few posts. 

 Lawson  has developed a CSR Solution Framework  to help companies add additional structure and thus derive value from their CSR programs.  While some may call it too ERP-centric, based on our assessment of what problems organizations are trying to solve around CSR, it is an objective, comprehensive approach. This post will focus on the foundation layer: ERP applications. A 2007 global CSR study by AMR Research found organizations are getting limited value from their ERP systems in helping them manage their CSR programs; however, the same study indicated many of those same organizations are looking to their ERP vendor(s) for solutions for their CSR initiatives.   I think it is safe to say that today most organizations probably manage CSR activities through a collection of disconnected spreadsheets, applications and databases.  Because ERP systems are often integrated and enterprise-wide, they are a logical foundation for managing CSR programs.  ERP systems manage the transactions that flow through the enterprise and strive to establish “one version of the truth.” In addition to eliminating the disparate spreadsheets, databases and other information silos, using an existing ERP system to manage CSR programs also enables organizations to generate a clear picture of which programs are generating the greatest return on their investment. In addition, Lawson  conducted a mapping exercise between the Global Reporting Initiative Sustainability Reporting Guidelines, a commonly recognized and accepted reporting standard, and the data tracked in our ERP applications.  We found a very strong correlation.  For example, GRI’s social reporting category focuses on areas such as age, gender, minority group membership, wage rates, rates of injuries, etc. In the Lawson  system, all of this data is maintained in a central repository and can be cross-referenced by factors such as department, geographic location, level in the organization, salary, etc.  Next time I’ll discuss the internal control system. 

Best, Jeff