What is your organisation’s direct and indirect impact on its stakeholders? How can you measure it effectively?
An organisation has a direct impact on its stakeholders namely suppliers, customers, work colleagues, and consumers of its goods and services. It also has a range of indirect impacts on non-governmental organisations and an indirect, but often significant impact on the local community within which it operates, and on the national or indeed global community. It is therefore important for an organisation to recognise its responsibilities to its suppliers, customers, and staff and address the way it impacts on its social and physical environment.
Organisations need to review their current performance, determine
if their current level of performance meets predetermined ethical aims and
objectives and if necessary identify how the organisation could improve and
communicate this to their stakeholders. The management team need to define
these aims and objectives so that they can drive internal improvements,
potentially decrease the cost of production and also build the confidence of
customers and potential customers in the organisation. To be a preferred
supplier they must inspire trust and confidence by consistently meeting the
quality standards of their customers, ensuring reliability in meeting product
and service requirements, and seeking to continuously measure and improve
performance. They must also be able to demonstrate their understanding of the
ways that their activities affect the local community.
· manage and where possible reduce costs,
· manage, mitigate or minimise risk,
· and identify new organisational opportunities.
Therefore a CSR strategy describes an organisation’s vision - its key aims, objectives and measurable indicators of success. It also defines an organisation’s governance structure and the management systems that are in place. Many organisations produce an annual report to inform their stakeholders of their CSR performance and report is increasingly being utilised as a marketing tool as well as an organisational driver. So, how do you define your organisation’s key environmental, social and economic priorities? How do you measure business success?