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Contents
Contents..............................................................................................................1 INTRODUCTION....................................................................................................1 HOW THE CSR BALANCED SCORECARD WORKS...................................................1 HOW TO ASSESS THE IMPORTANCE OF EACH CRITERIA........................................2 AREA: ECONOMIC.................................................................................................2 CRITERIA: CODES OF CONDUCT, COMPLIANCE, AND CORRUPTION....................2 CRITERIA: CORPORATE GOVERNANCE...............................................................4 CRITERIA: RISK AND CRISIS MANAGEMENT.......................................................4 AREA: ENVIRONMENT ..........................................................................................5 CRITERIA: ENVIRONMENTAL PERFORMANCE.....................................................5 CLIMATE CHANGE RISK AND FINANCIAL IMPLICATIONS.....................................6 AREA: SOCIAL .....................................................................................................6 CRITERIA: CORPORATE CITIZENSHIP AND PHILANTROPHY.................................6 CRITERIA: LABOR PRACTICES INDICATORS........................................................7 CRITERIA: HUMAN CAPITAL DEVELOPMENT.......................................................7 CRITERIA: SOCIAL REPORTING..........................................................................7 CRITERIA: TALENT ATTRACTION AND RETENTION.............................................9
INTRODUCTION
The Balanced Scorecard is a recognized and established management tool, well positioned to support a knowledge-building effort to help organizations make their values and visions a reality. The Balanced Scorecard enables individuals to make decisions based upon values and metrics that can be designed to support these long-term cognizant benefits. The Balanced Scorecard can be used to effectively align consumer and employee values with corporate strategy to generate long-term benefits, as well as a better understanding of precisely with whom, what, when, where, how and why an enterprise makes a profit or surplus. The term balanced does not mean equivalence among the measures but rather an acknowledgement of other key performance metrics that are not financial such as social and environmental.
Answers can range from 1 to 5: o never = 1 to always = 5 o very low = 1 to very high = 5 o poor = 1 to excellent = 5 o do nothing = 1 to do more than required = 5 Answers YES or NO: when you find besides a question, please do not use the 1 to 5 criteria but simply input in the cell Y or N. If questions are not applicable, leave the cell empty.
AREA: ECONOMIC
The aim of this section is to illustrate the organizations impacts on the economic conditions of its stakeholders and on the economic systems at local, national, and global levels.
Bribery: is the solicitation or acceptance, directly or indirectly, by a government official or a person who performs public functions, of any article of monetary value, or other benefit, such as a gift, favor, promise or advantage for himself or for another person or entity, in exchange for any act or omission in the performance of his functions. The offering or granting, directly or indirectly, to a government official or a person who performs public functions, of any article of monetary value, or other benefit, such as a gift, favor, promise or advantage for himself or for another person or entity, in exchange for any act or omission in the performance of his functions; Extortion: is defined as the crime of obtaining money or some other thing of value by the abuse of one's office or authority. Fraud: is defined as deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage. Collusion: is defined as a secret understanding between two or more persons to gain something illegally, to defraud another of his or her rights, or to appear as adversaries though in agreement. Conflict of interests: is a situation in which a public official's decisions are influenced by the official's personal interests Money laundry: is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source.
Questions about corruption 1. Are there any sort of formal statutes, regulations or manuals to support the procedures and actions against corruption? 2. Are there any procedures to punish acts of corruption? 3. Are codes of procedures in place it acts of corruption take place? 4. Is there any risk analysis done over the effectiveness of the procedure codes? Is any sort of evaluation performed? 5. Is the company training its labor force against corruption actions? 6. Is the company providing training regarding corruption issues as employees are coming into the company? Are all entry levels receiving this training and preparation? 7. Once the employees are a permanent part of the company, do they continue their training? Are there recurring (semiannual or annual) training sessions? 8. Is there an emphasis on awareness against corruptions practices? 9. Does the company have a Code of Ethics? The Code of Ethics includes the generally acceptable behavior and actions targeted at acts against corruption. 10.Is Corporate Governance included in the code of ethics? In the CSR practices? 11.Are good practices included? (e.g. good practices refer to actions delineated in the Code of Ethics) 12.Does the company recognize corruption incidents? Do they deal with those incidents? 13.Are the Codes of Ethics generated by a CSR organism within the company, or is it provided by an external actor (international organizations, government, civil groups)? 14.Was this code provided by the government?
AREA: ENVIRONMENT
The major purpose of environmental performance measurement and reporting is to look into how the company is impacting the environment directly by usage of a few main indicators, applicable across all sectors and measure steps taken in mitigation of environmental damage caused by the company itself and /or by other businesses and society at large.
AREA: SOCIAL
This section aims to measure the impacts organizations have on the communities in which they operate, and how the organizations interactions with other social institutions are managed and mediated.
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electricity and other forms of energy. The emissions from burning fossil fuels contribute significantly to global warming, poor air quality, water pollution, water sources and habitats effected etc. Health and Diseases: voluntary health programs for employees well being, safety and productivity. Impact on health of communities in which the company operates and programs to combat the diseases, awareness in the community, prevention programs etc Preserving local culture: heritage conservation including tangible and intangible such as art, dance, music etc and ancient structures, buildings etc, festivals, competitions and other aspects of religion and local culture. Economic Displacement: displacement (relocation or loss of shelter) and economic displacement (loss of assets or access to assets that leads to loss of income sources or means of livelihood) as a result of project- related land acquisition. Livelihood restoration: provide resources(raw material, tools, working capital), skills and training, market access and shelter and guidance for people who lost the livelihood due to natural disasters, wars, developmental projects etc. Non discrimination/Diversity: discrimination based on sexual orientation, gender etc. Equal Remuneration Male/Female: equal pay for both Male and Female based on work of equal value. Freedom of Association: to describe the concept of absolute freedom to live in a community or be part of an organization whose values or culture are closely related to one's preferences; or, on a more basic level, to associate with any individual one chooses.
Questions about public policy Public policy positions and participation in public policy development and lobbying. Activities through trade associations, round tables, task forces and other forms of lobbying with public policy makers. 1) Public policy development: involvement with government in a plan of action or research to guide decisions and achieve rational outcome(s). Also, involving in the process of making important organizational decisions, including the identification of different alternatives such as programs or spending priorities, and choosing among them on the basis of the impact they will have. Policies can be understood as political, management, financial, and administrative mechanisms arranged to reach explicit goals. Organized or coordinated activities to effect government policy formulation. 2) Lobbying: it refers to efforts to persuade or influence persons holding political office, or candidates for such office, to sponsor policies, and/or to influence the development of legislation or political decisions. Also refers to lobbying governments at any level or international institutions. Questions about anti-competitive behavior Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Consumer choice, pricing and other factors that affect market.
1) Creating barriers to entry: creating obstacles on the way of potential new entrant to enter the market and compete with the incumbents. 2) Unfair business practices: encompass fraud, misrepresentation, and oppressive or unconscionable acts or practices by business against consumers 3) Abuse of market position: causing damage to a direct competitor or competitor to a subsidiary by refusing supply of products or using predatory pricing. 4) Cartels: a cartel is a formal (explicit) agreement among firms. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. 5) Price fixing: agreement between competitors to sell a product or service at a certain price to capture all the profits between themselves. Question about compliance Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Conformance of operations to performance parameters. Compliance to international declarations/conventions treaties, and national, sub national, regional, and local regulations. Total monetary value of significant fines, number of non monetary sanctions and cases brought through dispute resolution mechanisms. 1) Comply with international treaties and organizations: compliance with international treaties such as UN Universal declaration of Human Rights, ILO Declarations, OECD guidelines for Multinational Enterprises and other international charters related to labor practices/basic rights issues.
1. Is there a predefined and standardized performance appraisal process? In assessing this measure, please take into account the following examples: a. Management by objectives: systematic use of agreed measurable targets by line superior b. Multidimensional performance appraisal (e.g. 360 degree feedback) c. Formal comparative ranking of employees within one employee category 2. Is the individual performance of each employee regularly communicated to the team members by the line superior? 3. Is the individual performance of each employee regularly communicated to the next upper management level? 4. Does the Company run employee satisfaction surveys? Questions about compensation 1. Does the Company apply a variable compensation as a percentage of total compensation (excluding pension plans and fringe benefits)? 2. How much in percentage is the variable compensation? (1 = low; 5 = very high) 3. How does the Company determines the variable compensation? In assessing this measure, please take into account the following pre-defined indicators: a. Internal financial metrics (e.g. cash flow, EBIT, Revenues) b. External financial metrics (e.g. Share price, Tobins Q) c. Environmental metrics (e.g. corporate Emission reduction) d. Social figures (e.g. corporate Health & Safety figure) e. No indicators f. Is there a variable compensation based on corporate and/or individual performance? 4. How frequently the employees learn the interim corporate results relevant for the variable compensation from their line superiors? (e.g. quarterly, semiannually, annually, never) Questions about benefits Does the Company provide employees with benefits in addition to government schemes? a. Pension plans b. Health and/or accident insurance for employees c. Medical care for employee families d. Disability insurance/programs e. Maternity and/or paternity leave f. Child care g. Flexible work schemes h. Employee assistance program i. Other