Corporate responsibility (CR) - why is it important?

What is Corporate Responsibility?

Corporate Responsibility (CR) is the result of the increasing accountability of businesses. It is the voluntary commitment by businesses to consider the wider impacts resulting from their business activities. It looks beyond the financial report for the next year, by identifying and examining the issues which may impact on the success of the business in the short to long term future. Often these issues are qualitative rather than quantitative, making them seem less tangible; however, this does not make them any less vital to the success of a business. CR can be split into four areas: Community, Workplace, Marketplace and Environment.

Legislation

The Enhanced Directors Report (EDR) means that large and medium UK companies must report on the position and prospects of the business, including details of major risks and uncertainties. This, therefore, includes environmental and social risks. Although not created under the label of CR, legislation that acts to protect the environment, human rights, employee's working conditions etc. are all part of CR. Therefore, not only does good CR ensure compliance, it also provides the company with a head start on any new legislation in the future.

What is CR reporting?

Due to its very nature, the only way of undertaking good CR reporting is by making it honest, genuine and with the best of intentions. Transparency is key. A good CR report tells of the good and the not so good. But acknowledgement of poor performance and a commitment to its improvement is the purpose of a CR report.

Do we need a review?

A CR review will help you to identify the potential impacts of your business on society and the environment. It will enable you to rank these impacts in order of pertinence and risk. It will establish where you currently stand as far as managing these impacts. It will instigate a commitment to change and improvement which every business must have in order to succeed in the future.

How do we get started?

Most organisations are already doing something positive under the Corporate Responsibility heading, but have not recognised it as such. Examples include giving to charity, good workplace health and safety and recycling initiatives.

By having a management review from an external consultant, you can pull all these efforts together and create a plan for sustainable improvement within your business.

This guide is of a general nature; specific advice can be obtained from Assurity Consulting. Assurity Consulting is the UK's leading independent compliance consultancy specialising in workplace health, safety and environmental solutions. We have over 30 years' experience of helping customers of all sizes, from across all sectors, manage their compliance responsibilities, making sure that their organisation is compliant, their employees are safe, their processes are cost effective and their management team is in control.

This guide is of a general nature; specific advice can be obtained from Assurity Consulting by calling tel. 01403 269375 or by email info@assurityconsulting.co.uk

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