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The ISO environmental management standard The United Nations Global Compact requires companies to communicate on their progress  or to produce a Communication on Progress, COPand to describe the company's implementation of the Compact's ten universal principles.
Many companies produce externally audited annual reports that cover Sustainable Development and CSR issues "Triple Bottom Line Reports"but the reports vary widely in format, style, and evaluation methodology even within the same industry. Critics dismiss these reports as lip service, citing examples such as Enron 's yearly "Corporate Responsibility Annual Report" and tobacco companies' social reports.
In South Africa, as of Juneall companies listed on the Johannesburg Stock Exchange JSE were required to produce an integrated report in place of an annual financial report and sustainability report. This requirement was implemented in the absence of formal or legal standards.
One of the reputable institutions that capital markets turn to for credible sustainability reports is the Carbon Disclosure Projector CDP.
Due to an increased awareness of the need for CSR, many industries have their own verification resources. The United Nations also provides frameworks not only for verification, but for reporting of human rights violations in corporate supply chains.
Ethics training[ edit ] The rise of ethics training inside corporations, some of it required by government regulation, has helped CSR to spread.
The aim of such training is to help employees make ethical decisions when the answers are unclear. Organizations see increased employee loyalty and pride in the organization.
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This can include raising money for local charities, providing volunteers, sponsoring local events, employing local workers, supporting local economic growth, engaging in fair trade practices, etc. Companies that ethically market to consumers are placing a higher value on their customers and respecting them as people who are ends in themselves.
They do not try to manipulate or falsely advertise to potential consumers. This is important for companies that want to be viewed as ethical. Social license to operate[ edit ] Social License to Operate can be determined as a contractual grounds for the legitimacy of activities and projects company is involved in.
Unless a company earns and maintains that license social license holders may intend to block project developments; employees may leave the company for a company that is a better corporate citizen: Based on the Requisite Organization research of Dr.
Elliott Jaques to achieve this goal a company needs to: Identify the business strategy and business objectives Identify the social license holders employees of a company, labour unions, local and national governments, communities, activist groups, etc.
Develop the Social License Development Strategy to remove the negative factors and ensure positive intention of all the social license holders to support all the business objectives of the company.
Perform ongoing monitoring and quantitative measurement of changes in the Social License to Operate of the company Potential business benefits[ edit ] A large body of literature exhorts business to adopt non-financial measures of success e.
The business case for CSR  within a company employs one or more of these arguments: Triple bottom line[ edit ] "People, planet and profit", also known as the triple bottom line, form one way to evaluate CSR.
Profit is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital unlike accounting definitions of profit. Another criticism is about the absence of a standard auditing procedure. Potential recruits often consider a firm's CSR policy.
CSR can also help improve the perception of a company among its staff, particularly when staff can become involved through payroll givingfundraising activities or community volunteering. CSR has been credited with encouraging customer orientation among customer-facing employees.Are you about starting a corporate training business?
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