CSR Guidelines for the Financial Sector - page 61

CSRGUIDELINES FOR THE FINANCIAL SECTOR
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Settingmeasurable environmental, economical and social targets are no different from other business tools and
strategies. Awidely used and recognized approach tomeasuring success is to identify the objectives of each
component of theCSR Strategy i.e. its overall mission, direction and focus area. This can be done through
developing key performance indicators, identifying the information required and themeans to collect such
information and thenmeasuring that against themilestones.
Regardless of the specific or particular approach taken, it should follow the SMART guidelines.
S
Simple
M
Measurable
A
Achievable
R
Reliable
T
Time-bound
For example, based on an organization’s CSR Strategy, it has envisioned to take the following direction, focus area
and initiatives:
CSR Aspect:
Marketplace
Direction:
Supply Chain
Focus Area:
Responsible Supply Chain
Initiative:
Holdworkshops and provide resources to suppliers to increase their responsibility in turnmaking the
organization’s supply chainmore responsible.
Objective:
Over the next 12months to increase suppliers with responsible
practice commitments by 5%
Milestones would be:
- To hold 5 roundtable discussions with suppliers in the next 6months
- To engagewith 50 suppliers in the next 12months
- To hold 20workshops over the next 12months
It would be possible to regularlymonitor performance every quarter based on themilestones set i.e. has there been
roundtable discussions, engagement with suppliers or workshops? Based on such data, it is possible to ascertain
whether the objectivewas achievedwithin the time frame set.
The underlying objective to ensure a responsible supply chain includes an objective to increase suppliers with
responsible practice commitments by 5%. The key performance Indicator would be the number of roundtable
discussions with suppliers, number of suppliers engagedwith and number of workshops held.
When surveying the financial institutions, we inquired if they have KPI’s tomeasure the impact of their CSR activities.
We got a balanced variety following responses as follows:
Nowe don’t measure impact
of CSR activities
42%
Yes there are clear and
identifiable KPI's
There are noKPI's but we try tomeasure
the impact of our CSR activities informally
27%
31%
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