CSR Guidelines for the Financial Sector - page 75

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“ACSR audit aims at identifying environmental, social or governance risks faced by the organization and evaluating
managerial performance in respect of those.”
In order to ascertain an organizations effectiveCSR policy, practices and culture, the notion of auditingCSR in
organizations is becoming key. However, this requires a substantial shift in the audit profession to include beyond the
traditional lines of finance and information technology towider operational practices that respond to client and
professional pressures brought about by a growth in the practice of riskmanagement.
Audits and the process of auditing as we commonly know is focused on the organizations achievement of its stated
and communicated objective; its compliancewith rules, regulations and legislation; the reliability of its records and
information accessible to the public or communicated to the public; the safeguard of its assets.
This does not address CSR or CSR related risks.
The risks of not paying adequate attention toCSR is clear – reputation damage, lawsuits, and government scrutiny.
Internal audit should focus on these risks and assist management to identify appropriate actions.
This calls for a different approach to audit and in particular an audit that takes into consideration health, safety,
environmental, reputational and business probity not tomentionCSR governance.
TheCSR audit, is a tool for decision-making and for strategicmanagement.
The question is how canwe integrate the needs of aCSR reviewwith the classical scope of audit?What are the
standards against which auditing professionals can benchmark an organizations performance or behavior?
Just like a financial audit, there are various CSR standards against which aCSR Audit can take place such as:
- Global Compact
- Global Reporting Initiative (“GRI”)
- Good Business Framework
These standards although vary in style and depth cover the basics of CSR and enable organizations to be audited
against them. However, for the purpose of being generic, wewill address organizations different approaches toCSR
and how aCSR audit can facilitate a better understanding of an organization’s:
- CSR goals and objectives;
- CSR practices, policies and culture; and
- Approach toCSR related issues with respect to its internal decisionmaking process;
In order to audit CSR performance, it is valuable consider what are the variables of successful CSR.We asked
through theCSR Survey how financial institutions assess the success of their CSR activities and the responses were as
follows:
Other
Impact of the activates
Publicity /media coverage
5%
100%
32%
1...,65,66,67,68,69,70,71,72,73,74 76,77,78,79,80,81,82,83,84,85,...87
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