CSR-Mining-Indaba - Economics Association of Zambia

Corporate Social Responsibility- do
we need a Statutory Instrument?
Presented to the Zambia Alternative Mining Indaba conference- July 17, 2013
Sombo Chunda, MBA, ACCA, AZICA
What is Corporate Governance?
• The OECD Principles of Corporate Governance states:
"Corporate governance involves a set of relationships
between a company’s management, its board, its
shareholders and other stakeholders. Corporate governance
also provides the structure through which the objectives of
the company are set, and the means of attaining those
objectives and monitoring performance are determined."
What is CSR?
“Corporate Social Responsibility is a concept whereby
companies integrate social and environmental
concerns in their business operations and in their
interactions with their stakeholders on a voluntary
Source: European Commission
“Corporate Social Responsibility is the continuing
commitment by business to behave ethically and
contribute to economic development while improving
the quality of life of the workforce and their families as
well as of the local community and society at large”
Source: World Business Council for Sustainable
“Social responsibility (is the) responsibility of an
organisation for the impacts of its decisions
and activities on society and the environment
through transparent and ethical behaviour that
is consistent with sustainable development
and the welfare of society; takes into account
the expectations of stakeholders; is in
compliance with applicable law and consistent
with international norms of behaviour; and is
integrated throughout the organisation.”
Source: ISO 26000 Working Group on Social Responsibility
CSR is about building Trust
• Trust in the brand
• Trust in performance of the product
• Trust in the company to “do the right thing”
• Trust in you as an employer
Source: Carrie Johnson, Corporate Social
Corporate Responsibilities
Ethical Responsibilities
Social Responsibilities
Legal Responsibilities
Economic Responsibilities
Where are we as a country?
. Presently there is no clear legislative framework
governing CSR in Zambia.
. In the first quarter of this year the Government gazeted
ISO26000 as a voluntary standard through the ZABS.
ISO 26000 – Guidance to
Social Responsibility
Overview of the content
of ISO 26000
7 Core Subjects
 Organizational governance
 Human rights
 Labour practices
 The environment
 Fair operating practices
 Consumer issues
 Community involvement and development
Benefits of SR for organization
Encouraging understanding of expectations to society
Improving risk management practices
Enhancing reputation
Supporting licence to operate
Generating innovation
Improving competitiveness
Improving relationships with stakeholders
Enhancing employee loyalty
Improving safety and health of female/male workers
Achieving savings, resource effiency, decreased waste
Improving fairness of transactions
 What makes CSR structured?
 Do we need a legal framework?
CSR Implementation Framework
What? (Task Delineation) How? (Checkpoints on the journey)
1. Conduct a CSR assessment
2. Develop a CSR strategy
3. Develop CSR commitments
4. Implement CSR commitments
5. Assure and report on progress
6. Evaluate and improve
Assemble a CSR team
Develop a working definition of CSR
Identify legal requirements
Review corporate documents, processes and activities, and internal capacity
Identify and engage key stakeholders
Build support with CEO, senior management and employees
Research what others are doing, and assess the value of recognized CSR instruments
Prepare a matrix of proposed CSR actions
Develop ideas for proceeding and the business case for them
Decide on direction, approach, boundaries and focus areas
Do a scan of CSR commitments
Hold discussions with major stakeholders
Create a working group to develop the commitments
Prepare a preliminary draft
Consult with affected stakeholders
Develop an integrated CSR decision-making structure
Prepare and implement a CSR business plan
Set measurable targets and identify performance measures
Design and conduct CSR training
Establish mechanisms for addressing problematic behaviour
Create internal and external communication plans
Make commitments public
Measure and assure performance
Engage stakeholders
Report on performance, internally and externally
Evaluate performance
Identify opportunities for improvement
Engage stakeholders
Source: Paul Hohnen, Corporate Social Responsibility, An Implementation Guide

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