CSR and The Triple Bottom Line

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

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INDICATORS

Galileo counseled "measure what can be measured and make measurable what cannot be measured." Today, a mantra often heard is "you can't manage what you can't measure." Taken one step further, the act of measuring can demonstrate to stakeholders that one cares.

Indicators are used to measure performance. They are instrumental to bridging the gap between a code of conduct and CSR practices. An indicator enables one to access if goals are met . They also inform decisions as to strategies to take to achieve

GRI' s g3 Indicators

Principles for Global

Corporate Responsibly: Benchmarks

Social Venture Network Indicators

International Finance Corporations EMP

Because the GRI's is the most widely used of frameworks, the g3 indicators are positioned to be the most used for CSR practices and reports. They are divided into five categories of CSR. The GRI also provides indicators for specific sectors, such as mining and transportation.

"The Benchmarks" were created by a Christian coalition. They point to the IMF, militarism and technology as some of the root causes of social injustice and environmental degradation. Despite the strong position from which the Benchmarks come, they are the most broad ranging and comprehensive of indicators. They include topics not covered by other indicators such as holistic health treatment for employees, binding compensation between highest and lowest paid employees and world peace. The Benchmarks also extensively covers issues specific to one or two industries such as genetically modified organisms in the food chain.

Social Venture Network Indicators cover a wide range of triple bottom line activities. Many are qualitative. Social Venture Network is a membership organization that supports CSR through a number of means, including the indicators. Other membership organizations include Business for Social Responsibility (BSR) and CSR Europe.

The World Bank group supplies these suggested Environmental Management Program (EMP) Indicators. There is a plethora of EMPs, the ISO 14001 family being one of them. For the most part, developing indicators is part of an EMP. Most indicators are like those in the link provided above: quantitative measurements for levels of chemicals or a resource use. Check the box indicators can also be a part of an EMP.

Domini Social Investments	ILO Standards	Environmental Sustainability Index (ESI)	World Bank's Indicators
Socially Responsible Investment (SRI) represent a growing section of the financial market in American and Europe. The Indicators specific indicators are not usually available to the public. Other SRI indicators include rating organization such as the Calvert Fund and Dow Jones Sustainability Index.	The ILO standard focus on labor issues. They are more like codes of conduct than indicators but can be used in conjunction with goals to measure performance.	ESI is for measuring the status of countries. It is a joint project by Yale, Columbia University, the European Commission and the World Economic Forum. The set of indicators allows one to access the environmental status of a country and includes measurement of governments amenability to participation in collaborative efforts. It can be used to inform decisions the importance of indicators when doing business in different countries.	The World Development Indicators are a publication of the World Bank. They provide economic, social and environmental data for countries. Indicators include the CO₂ emissions, poverty rate, internet use, birth rates per woman, and the time it takes to start a business

In order for an indicator for the triple bottom line to be effective, it must tie the financial impacts to a business' net income of CSR practices. This is because a business cannot stay in business if it is not profitable in the long term.

Indicators that tie the amount of a resource reused, recycled or reduced to the cost savings are effective because they enable a manager to measure how environmentally responsible activities are also economically responsible.

Criteria	GRI's g3	Benchmarks	Social Venture	EMP	ILO
Adaptable to Current Practices	Can be used incrementally, and fit to use of EMPs, but may not fit with all Stakeholder programs.	Large number of indicators can be overwhelming. Some inapplicable to all industries.	Large number, but most are yes/no or quantifiable.	Usually create indicators as part of EMP.	More so with the use of AA1000, SA8000 or other stakeholder group.
Continual Improvement	Can use indicators to set specific and measurable goals	Specifically included	Includes indicators for activities that would add-value to business practices.	Determined with Implementation of EMP.	Not included
Comprehensive Coverage of Triple Bottom Line	Yes, includes five aspects.	Yes, includes many aspects.	Yes, includes many aspects.	No: only one aspect of environmental usually covered.	No: only labor usually covered.
Detailed with sufficient specificity	Detailed, includes sector supplements	Detailed in coverage but includes overly broad indicators	Detailed	Determined with Implementation of EMP.	Mixture of broad and very detailed and specific conventions
Integrates Financial Impacts of Social and Environmental Practices	Not directly	Not directly	Not directly	Could integrate if cost data is available	Not directly
Positioning for Competitive Advantage	Yes: Could become international treaty, Used by many, PR tool	Does not consider.	Yes, by creating markets and economies of scale.	Could, if goal is beyond compliance with regulations.	Could by creating partnerships with potential adversaries
Quantitative and enables meaningful comparisons	More qualitative than quantitative. Can be used in conjunction with explanations to demonstrate best practices	Emphasis on qualitative or yes/no measurements.	Quantitative, but yes/no emphasis may not be meaningful.	Determined with Implementation of EMP.	No: must be used with other program or indicators fashioned

Conclusion: The GRI's g3 best fits the criteria for an effective indicator. It is also can be used in conjunction with initiatives such as an EMP or the SA8000 and stakeholder interactions. A manager would do to enrich the GRI's g3 indicators data about costs and revenue or profits.