CSR and The Triple Bottom Line

CSR and The Triple Bottom Line
Tools for issuing a successful CSR report

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CSR REPORTS

Below are links to exemplary CSR reports, the reasons that they are noteworthy and suggestions for ensuring a report is of value. Following the links and explanations to CSR reports is an set of criteria for evaluating a CSR report. For access to many CSR reports issued click here.

Report:	Ben and Jerry's Ice Cream	Body Shop	Nike	Shell Oil
Importance:	Leader is CSR reports in USA. In accordance with GRI. Demonstrates the competitive advantage in CSR.	Integrates CSR and the triple bottom line in every business activity. Demonstrates the competitive advantage in CSR.	Endured Nike v. Kasky and used experience to gain advantages. Solving world problems with business.	First issued in reaction to killing of of Ken Saro-Wiwa in Nigeria. Addresses criminal conduct with CSR issues.
Tips:	Be aware of a tendency to be overly technical. Solution: have a web based simplified version.	Take cause related marketing to new level.	Use CSR inspired strategies to open new markets, expand current market, maintain competitive advantage in volatile sport/fashion market.	Keep reportage on technological aspects of a report approachable. Openly reports on tough ethical issues.

Report:	Starbucks	Coca-cola Co. & Enterprises	Gap	Ariva
Importance:	Robust stakeholder relationships. Addresses world problems.	Early in CSR reporting and practices stages. Business sense approach to CSR.	Vanguard honesty in supply chain. management labor practice issues.	Includes social and environmental reporting in financial report.
Tips:	Integrate CSR into all communication avenues: Web based news letters, Pamphlets in retail locations, Paper bound CSR report, website and rumor response site.	Get buy-in from business partners by showing relevance to profit, setting clear targets and interdependency of system.	Call attention to stakeholders for collaborative efforts to accomplish stretch targets	Integrate social and environmental accounting with the financial report thereby linking profit to CSR and make business case, gain confidence of shareholders and stakeholders.

Proposed criteria for an effective CSR report:

Criteria	Analysis
Audited so as to ensure monitoring and verification.	KPMG's survey revealed that majority of CSR reports that are audited by a third party are audited by one of the financial auditing firms. However, third party auditing of CSR reports is not yet the norm. It is one aspect of CSR reports that proponents for which both voluntary and regulated CSR reporting advocate. The consensus is that neutral third party auditing will ensure businesses do not greenwash (practice hypocrisy). Starbucks' cost and benefit analysis lead them to use in-house auditing. The Gap uses third party auditors. Factors to consider when deciding how to monitor and verify are the focus or likelihood of focus, the public will have on operations. If there are a lot of non-governmental organizations around and issue, such as labor standards, it might be better to use a third party to audit. The AA1000 and SA8000 frameworks are based on monitoring and verifying.
Consistent and Comparable: information that can be compared across time and with other businesses	The GRI sets out a format for each aspect of CSR performance and provides indicators for them. One of the criticisms of CSR frameworks is that there are not enough quantitative indicators. As the field progresses, it is hoped better indicators will emerge. A business manager is better off formulating quantitative indicators when there are no measurement or only qualitative ones exist. This way the manager will better communicate with employees, shareholders and the board of directors.
Importance: Potential impact on stakeholders.	A large business will have a large about of stakeholders.
Inclusive: Covers topics important to stakeholders	In industries where risk is a big factor, addressing environmental and social concerns can build confidence with customers, governmental agencies and other stakeholders. Ariva is an example of a business using environmental and social reporting to strengthen its position in the market place and to re-enforce the stewardship working at the company means for employees. Ben and Jerry's is one of the most inclusive reports, but the report risks not being understood by some stakeholders. McDonald's Switzerland offers a solution by issuing three levels of reports: a poster, book-let and in depth report.
Relevant, Reliable, Timely, and Clear: present information of value to the reader in a way the reader understand	Starbucks does a good job of balancing the concerns of Wall street, scientists and green roots advocacy group.
Stakeholder interaction: supports relationships between the stakeholders and management	Stakeholder interactions can be used as part of a verification and monitoring process, to partner for solutions to business and world problems and to stave adversarial attacks. The selection process is important, and should be built into a report.
Sustainability: incremental improvements towards sustainability.	Integration into the finance, operations, marketing and strategic management of a company is one way to demonstrate incremental improvements towards sustainability. Goal setting is another. Goals set in a CSR report and reported on in subsequent years allows a stakeholder to see a company progress towards sustainability.
Transparent about businesses practices and programs for implementing CSR activities	Collaboration with stakeholders is one way to practice transparency with some constituents. Another way is to report violations of labor standards or environmental laws. Coca-cola Enterprises practices the latter, Gap reported labor violations in its report.