We understand Corporate Social Responsibility (CSR) and its "E" as Business or State or Non-Profit Entities. The application of Social Responsibility / Sustainability (RS hereinafter) and everything we do has a consequence. This is what we call the principle of causality. A company that enforces a series of regulations and enforces them will obtain specific benefits from those actions.
We see examples of companies that support technological development and technical assistance and obtain as a result the transfer of technological knowledge; If these companies fight against corruption, they create internal stability in the company, show transparency and strengthen the institution.
If an organization improved its production systems to focus on non-pollutants, it would improve the health of the population and protect the environment. All the cases mentioned above illustrate some examples of good practices of socially responsible companies, but taking into account the advantages for the company itself, the scale and the nature of the benefits that the application of SR can provide depending on the nature of the same..
We will analyze the reasons that lead an organization to think SR policies, regardless of its size. In our opinion, it is easy to talk about SR but how difficult it is to implement it in its different stages, from diagnosis to information, in all of them our profession is concerned. For example, regarding communication we mention:
Accounting for CSR
It is assumed that the information is addressed to all interest groups (GI from now on) and not only to shareholders and financial analysts, therefore, the accounting information of a socially responsible company must be presented according to the interests and characteristics of each one of the GI to which it is directed.
This implies that the presentation of the traditional accounting statements is no longer enough, but they must be supplemented with all the quantitative and qualitative data, referring to the social practices of the company to which they refer. Likewise, it must be taken into account that both qualitative and quantitative information, referring to SR, is totally voluntary and must be as objective as possible, and not hide information that may alter the perspective that a third party may have. of the company, for example, hiding social and environmental liabilities.
For these reasons, the so-called "Social Balance" appears as a means to measure the value that the company contributes to society, quantifies the data on the activity and situation of the company in matters of public domain; Therefore, it can be classified as a measurement system that registers and communicates to society, in a systematic way, about what has been done in social matters, the results and what is intended to be done a posteriori.
Now it is not easy to stay the course when the crisis threatens budgets and programs. This is where the strength of convictions is tested.
Moments of crisis are undoubtedly "the moment of truth" for SR, it puts our convictions to the test, our convictions, in short, that motivates us to have a thought focused on this reality, which can lead us to:
- Not getting it to be inserted into the culture of the organization, then the crisis is a good excuse to discontinue it. If it is really part of the DNA of the organization, then ingenuity will sharpen, the initiative to optimize resources. In some issues there will be delays, as we say "the foot will be lifted off the gas" but in no case will it be abandoned.
This is a time of sowing, otherwise there will be no harvest. Sometimes it seems that it is useless because the fruits are not seen, but the time of harvest will come, perseverance and patience are required.
It seems very important to us that SR is considered as an instrument, an active, key tool, that everyone knows it in such a way that it cuts across the Organization and each one acts taking into account where they are going as a great team, so large that it includes everyone with whom the company, employees, customers, suppliers, community, etc. is linked.
We see SR as a smart way of doing business. Being realistic, we say that SR needs to be adapted to the circumstances, it is necessary to clarify in the organization and before its GI what is its place in the list of priorities of the company. Identifying the cause of a possible lack of legitimacy is key to coming up with an action plan to legitimize it.
We must measure to improve, therefore, accounting information, whether mandatory or voluntary with respect to its role in SR, involves the application of new interdisciplinary professional techniques where economics professionals have specific concerns. It is thus necessary to deepen the particularities of this new contribution of the accounting system, not only to inform but to contribute to the decision-making of companies. Measuring impacts is the basis of the processes that allow proper risk management and is the essential axis that allows taking advantage of opportunities and setting out new challenges. There is no possible improvement that is not tied to a comprehensive measurement process.
SR goes beyond laws, regulations or the good intentions or wishes of those who create or run companies. It is a way of doing business, transforming enunciations of values and principles into concrete behaviors. The SR renews the conception of the company, giving it a broad and inclusive dimension, which goes beyond the mere economic question, in which the triple facet of sustainability is perfectly incorporated: economic, social and environmental. The application of SR policies by companies should not be thought of as an expense, but as an investment that in the medium and long term will report a series of benefits if applied correctly.
In order to achieve these benefits and, therefore, an improvement in business results, it will be necessary for companies to establish and maintain relationships of trust with the different IGs. SR is, finally, the way for companies and other organizations to relate to the IGs that, in one way or another, are affected by their activity. So we can mention some tangible and intangible benefits when implementing and maintaining good SR practices:
- Competitive advantages: quality, service, reliability that exceed competitive products. Productivity: improves operational efficiency. Image and reputation improvement. Improves relationships with the different IGs. Improves risk management: by reviewing their economic impacts., social and environmental risks detect the risks in advance. Improvement in the social license to operate: easier acceptance by communities, governments, organizations, etc. Benefits referred to our personnel or Internal Public: Premise: "The Generation of Economic Value it is a prior consequence of generating human and environmental value and not the other way around. "
- Maintain employee motivation, commitment, and productivity. The family of employees is a very important stakeholder, family-work balance, we should see the family of the worker as an ally.Benefits for Companies: Reduction of absenteeism, reinforces communication and credibility, better indexes of work environment, etc..} Benefits for employees: higher levels of satisfaction, higher self-esteem.
We recall a thought by Albert Einsten that applies to this topic: "Not everything that counts can be quantified and not everything that can be quantified counts."
In closing, we must bear in mind that the benefits or advantages mentioned by the application of socially responsible practices can not only be perceived in large organizations, with clear programs and directives, but also in smaller ones. In some cases, without even knowing it, good SR practices are already doing it; they consider it simply as the way in which one should work, what according to Professor Alberto Willi he calls “Hidden RS”.
Now, if we want to obtain the aforementioned benefits from SR, plans and programs of socially responsible practices must be carried out, sustainable in time and must have the support of all members of the organization and above all with the commitment of the high management.
Regarding the Social Balance, it is a business policy tool that allows the quantitative and qualitative assessment of compliance with the company's SR in terms of social assets and liabilities in its internal and external areas, during a specific period and against performance goals. previously defined and accepted.
We definitely believe that the true challenge of the RS is to have answers in times of crisis and not only in times of bonanza. Circumstances are likely to dictate adjustments. But the essential thing is to stay the course.
Surely we will not prevent new and unexpected dangers from arising, but we do know that it is up to us and our daily behavior to transform them into a crisis-threat or a crisis-opportunity.
