When your organisation has a social purpose as its reason for being, is that the extent of its social responsibilities?
No, the concept of corporate social responsibility (CSR) is just as valid for the NFP sector – and it’s time it was taken it to heart.
With its sheer diversity, the NFP sector in Australia cannot have a one-size-fits-all template for organisations to address their social responsibilities. But given that for-profit organisations and governments are rapidly getting on board with CSR programs and strategies, and that community expectations of all organisations has never been higher, the time is ripe for NFPs to better understand and articulate the responsibilities they have for their impacts on the economy, the environment and society.
There are a number of definitions of social responsibility, some expressed as sustainability or sustainable development. One that resonates well with the NFP sector comes from the International Organisation for Standardisation in its guidance on social responsibility, known as ISO 26000. It defines social responsibility as the responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that:
So social responsibilities are about impacts across different dimensions of an organisation’s activities.
Impacts on society include those on communities and economies, but are equally related to your workforce, suppliers and clients. Including the notion of transparent and ethical behaviour in the definition ensures that CSR extends to cover an organisation’s governance and how it is accountable for its behaviour.
Why is this important for NFPs?
How can NFP organisations develop a CSR strategy or program?
A good start is to look at some of the international frameworks for CSR, such as the Global Reporting Initiative (GRI) G4 reporting framework, the UN Global Compact, ISO 26000 and the newly agreed UN Sustainable Development Goals. They all provide guidance about the sorts of issues that need to be considered. In particular, the GRI is useful for the sorts of details stakeholders want to see about your organisation.
Then think about your organisation’s impacts from its activities and potential future activities. It can be helpful to talk to some of your key stakeholders to find out their perspective on CSR issues for your organisation.
Your strategy should address your organisation’s key CSR issues and impacts. Ideally, your strategy should include measuring your performance and reporting to your stakeholders about what you are doing and what you have achieved.
Organisations in the NFP sector have a competitive advantage in this space – their mission or purpose generally aligns positively with social benefit. In my experience advising NFP organisations on their social responsibilities, the hardest part is bringing together what they already do into a cohesive and structured framework that enables them to better articulate their CSR approach to inform donors, governments, employees, partners and communities.
Jackie Allender is a Senior Consultant at the Australian Centre for Corporate Social Responsibility.
This article originally appeared in Third Sector’s June print magazine- click here for more information about subscribing.