CSR Guidelines for the Financial Sector - page 76

DevelopingaCSRAudit Program
An internal audit that is intended to cover CSR should start by creating an understanding of the social responsibility
issues that affect the organization and its industry. Following that, the audit should review howmanagement
reconciles these sometimes-contrary needs.
ACSR audit program can cover all or any of the following risks:
- Effectiveness of the operating framework for CSR implementation
- Effectiveness of implementation of specific, largeCSR projects
- Adequacy of internal control and reviewmechanisms
- Reliability of measures of performance
-Management of risks associatedwith external factors like regulatory compliance, management of potential adverse
NGO attention, etc.
What are the CSR issues that aCSRAudit should cover?
It is difficult to audit something that is not planned and based on our observation a lot of CSR activities are ad hoc,
therefore, it was of value to ask the financial institutions howmuch planning normally goes intomanaging their CSR
activities and capturing impact if any.We received the following responses:
Fundamental Human Rights, Freedom of association
andCollective bargaining, Non-discrimination, Forced
labor, Child labor
Labor relations,Working conditions, health and safety,
career development and training, Remuneration system
Incorporation of environmental considerations into the
manufacturing and distribution of products, and into
their use and disposal
Business Behavior:
Relations with clients, suppliers and sub-contractors,
Prevention of corruption and anti-competitive practices
Board of Directors, Audit and internal controls,
Treatment of shareholders,
Executive remuneration
Community Involvement:
Impacts on local communities, contribution to social and
economic development, General interest causes.
Not much planning
Some planning
A lot of planning
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