Frankly CSR

This is the final post in the series on using business software to help manage CSR programs.  Represented at the top of the diagram, enterprise performance management (EPM) software is the essential piece of the overall CSR Solution Framework because it’s where CSR activities really get managed.

EPM, which includes some very cool technology,  is my favorite part of the framework. It represents the access point or portal that delivers key information to executives and CSR knowledge workers. Business intelligence, as it’s often referred to, is typically delivered via dashboards, scorecards, reports, automated workflows and alerts. The goal is to help organizations more effectively analyze situations and then take action.

So, let me tie the whole framework together using the topic of workforce diversity. While EPM can be used to measure multiple factors within the environmental, social, and economic pillars of your CSR program, workforce diversity is a good example because it’s an element of CSR that impacts all organizations and encompasses both regulatory compliance and self-established standards.

• ERP Applications - Creates a central repository of transactional data such as age, gender, ethnicity and other indicators of protected class status. The applications, such as human resources, financial, and activity management, also maintain key comparative data such as salary, department, geographic location, and position.

• Internal Control System - Maintains all regulatory (e.g., EEO, Affirmative Action) and organizational (e.g., diversity standards and policies) documentation. It assigns resources to processes and controls, monitors testing, exception analysis, and remediation activity. The system also produces a risk management assessment.

• Enterprise Performance Management – Generates dashboards that provide a snapshot of key diversity information and a single point of access to detailed reports. Custom alerts notify HR managers of key events and potential issues, while automated workflows guide hiring managers through recruiting and talent management processes highlighting relevant diversity information.

From labor practices to green initiatives to community programs, my experience is the framework holds up well.  I hope this series of posts gives you some food for thought as you look at how you might manage your own CSR programs. 

Jeff

As I talk to analysts, editors and Lawson customers about CSR, I’m regularly asked, “Why is it so important for organizations to effectively manage their CSR programs?” My typical response goes back to the basics of business. In the end, after you strip away all the different motivational drivers, CSR is a business investment. And like any other business investment, organizations have a responsibility to their customers, employees, investors and board members to effectively manage their CSR programs.

Now, if the investment – time, money, people, etc. – was insignificant, skilled management probably wouldn’t be critical; however, for many organizations CSR activities represent a sizable investment. A 2007 global CSR study by AMR Research found:

• Approximately 70 percent of all organizations have CSR programs and a dedicated CSR budget.
• In 2006, 50 percent of organizations spent 1 – 5 percent of their IT budget to manage CSR programs.
• CSR spending is growing in all areas – social, environmental or green, responsible sourcing and philanthropy.

Organizations are increasingly establishing and publicizing more formal measurement programs around their CSR activities. Here are just three examples:

• Citigroup to spend $232M on Green Data Center - Estimates facility will save 11,000 tons of carbon dioxide emissions, and cut site energy use 75 percent
• Kaiser Opts to Report, Certify Emissions - Lowered emissions by more than 2 million pounds in 2007
• Coca-Cola Unveils 100% Recycling Goal, New Plant Plans Aims to recycle or reuse all of its plastic bottles in the U.S.

Professional management of CSR programs is becoming critical. Heck, we even have corporate responsibility officers now in some organizations. Of course, managers need tools, so over the next month or so I’m planning to share some thoughts on how my IT can help organizations manage their CSR programs.

I’ll be interested in getting your feedback.

Jeff

I’m at The Green CIO conference, presented by CIO Magazine Australia, in Sydney this week. This is an innovative conference that Lawson became involved with as soon as we heard about it. The conference places a sustainability focus on a broad range of information technology topics, including IT strategy, hardware, software, data centers, and change management. I’ll be speaking on the role that business software can play in helping companies manage their CSR programs.

I’m not surprised this type of conference is taking place in Australia. From what I can tell based on a survey of Lawson’s Australian customers and by reading business publications from the region, Australian businesses seem to be ahead of the curve when it comes to CSR. For example, telecommunications and IT provider, Telstra has issued an Annual CSR Report since 2003 that rivals those produced by an investor relations team. It details the company’s social activity in relation to its customers, employees, communities, and marketplace. It’s a bit long, but worth the read.

I’m excited about the opportunity to interact with a group IT professionals who are thinking about sustainability. I’m sure it will be a great learning experience. I’ll report back on the conference next week.

Jeff